REPORT TO COUNCIL
SUBJECT
Title
Action on Amendment No. 5 to Western Area Power Administration and Bureau of Reclamation Contract No. 96-SNR-00110 Agreement for the Funding of Operation and Maintenance for Central Valley Project Power Facilities [Council Pillar: Deliver and Enhance High Quality Efficient Services and Infrastructure]
Report
BACKGROUND
The City of Santa Clara’s Electric Department, doing business as Silicon Valley Power (“SVP”), entered into Agreement 96-SNR-00110 (“Agreement”) on November 12, 1997 with the United States of America (i) acting by and through Western Area Power Administration, Department of Energy (“Western”) and (ii) acting by and through Bureau of Reclamation, Department of Interior (“Reclamation”); and the Central Valley Project (“CVP”) preference power customers (“Customers”). The Agreement establishes an Operation and Maintenance (O&M) Program for the CVP power facilities that will provide an adequate and reliable source of funds for the O&M activities and a Governance Board to plan and monitor the O&M Program. The Parties to the Agreement developed the proposed Amendment 5 to Agreement 96-SNR-00110 to clarify the process for filling vacancies on the Governance Board and to ensure full membership on the Governance Board. SVP Staff recommends the City Council authorize the City Manager to execute Amendment 5 to Agreement 96-SNR-00110.
DISCUSSION
The Governance Board is made up of the following:
a) 6 Customers from Municipal/Public Utility Districts/Rural Electric Cooperatives
b) 2 Customers from Federal/State/Other
c) 1 Customer from Water and/or Irrigation Districts
d) 1 Customer from First Preference Customer
e) 1 Representative from Reclamation
f) 1 Representative from Western
The proposed amendment will clarify that when a vacancy occurs in a Customer group (Groups a-d), Western will provide notice to that Customer group and the Customer group will have 45-days to elect a new Governance Board member. If a Customer Group fails to elect a Governance Board member, the Governance Board may fill the vacancy by appointing a Customer that is not already on the Governance Board. The Governance Board will attempt to appoint a Customer from the Customer Group with the vacancy, however, in the event no Customer is identified, the Governance Board may appoint a Customer outside of the Customer Group with the vacancy.
The Governance Board plays a key role in planning and monitoring Western’s O&M activities and therefore, every seat on the Governance Board should be filled and be fairly representative of the Customer groups. The proposed amendments would ensure that any Governance Board vacancy would be filled in a timely manner.
Staff recommends the City Council authorize the City Manager to execute Amendment 5 to Agreement 96-SNR-00110.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
FISCAL IMPACT
There is no fiscal impact as a result of amending the existing Agreement.
COORDINATION
This report has been coordinated with the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Authorize the City Manager to execute Amendment No. 5 to Western Area Power Administration and Bureau of Reclamation Contract No. 96-SNR-00110 Agreement for the Funding of Operation and Maintenance for Central Valley Project Power Facilities.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Amendment No. 5
2. Original Agreement