REPORT TO COUNCIL
SUBJECT
Title
Action on Northern California Power Agency (NCPA) Shared Use and Occupancy Agreement
Report
COUNCIL PILLAR
Deliver and Enhance High Quality Efficient Services and Infrastructure
BACKGROUND
The Northern California Power Agency (NCPA) is a public Joint Powers Agency formed in 1968 under California’s Joint Exercise of Powers Act (Cal Gov. Code §§ 6500 et. seq.), whose members include the cities of Alameda, Biggs, Gridley, Healdsburg, Lodi, Lompoc, Palo Alto, Redding, Roseville, Santa Clara-Silicon Valley Power, Shasta Lake and Ukiah, as well as the Bay Area Rapid Transit District, Port of Oakland, the Truckee Donner Public Utility District, and the Plumas-Sierra Rural Electric Cooperative.
Most critically for its 16 members, NCPA over the past four decades has constructed and today operates and maintains a fleet of power plants that is among the cleanest in the nation, and that provides reliable and affordable electricity to more than 700,000 Californians. NCPA made a major investment in renewable energy in the early 1980s when it developed two geothermal power plants and financed and built a 250 MW hydroelectric facility. Thirty years later, these resources continue to generate reliable, emission-free electricity for its member communities.
NCPA’s 778 MW portfolio of power plants are approximately 57% greenhouse gas emission-free. NCPA’s mix of geothermal, hydroelectric, and natural gas resources is well positioned to help its members achieve California’s policy of a 60% Renewable Portfolio Standard (RPS) by 2030.
When managing a diverse portfolio of resources and ensuring that power is scheduled and flowing every second of every day, it is prudent to have adequate contingency plans for various emergency situations that may occur. NCPA created a separate Disaster Recovery Center (DRC) in case of emergencies if something happens to the primary NCPA location in Roseville. In this center there is underutilized and unoccupied office space.
NCPA recognizes that member utilities may benefit from employees being able to use a satellite-hoteling office space in the Sacramento area. NCPA has created a Shared Use and Occupancy Agreement to make available this unoccupied office space to member utilities to help attract and retain employees. NCPA has current temporary DRC space available located in Citrus Heights, California and in construction is the permanent DRC site, which is anticipated to open in 2025, located in Fair Oaks, California.
The Sacramento area has multiple agencies where Silicon Valley Power (SVP) can attract talent. These include City of Roseville, Sacramento Municipal Utility District, PG&E, Regulatory Agencies (the California Energy Commission and California Air Resource Board), and even NCPA.
DISCUSSION
SVP is having difficulty filling and retaining certain employee classifications. The current vacancy rate is 22%. Having a flexible approach to where employees work may help SVP attract and retain employees and, potentially, due to the lower cost of living, new hires may have a lower starting salary point saving the utility money. Therefore, it is proposed that the temporary and permanent site serve as a Satellite SVP Office for SVP employees to work.
As examples potential classifications that could use this location as their office include but are but not limited to: Sr. Resource Analyst, Power Trader/ Scheduler, Program Manager, certain Engineering Classifications, and Sr. Division Manager. The option to use the satellite office will be determined on a case-by-case basis by SVP management based on need, after consultation with the City’s Human Resources Department and upon approval by the City Manager. Employees will still be required to report to the Santa Clara office at a preset cadence as determined by their manager every pay period. Annually, SVP will review the success of the satellite office and closely monitor employee productivity. The employees are subject to the same policies and procedures established by the City of Santa Clara.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to section 15378(b)(5) of Title 14 of the California Code of Regulations in that it is an administrative activity that will not result in direct or indirect physical changes in the environment.
FISCAL IMPACT
Since SVP is a 48%-member share of NCPA and already pays for approximately 48% for the expenses of the shared use facilities. SVP would be assessed an Occupancy Charge for any additional increases in utility-related expenses and increased frequency of janitorial serves for the use of the property, anticipated not to exceed $1,000 per month.
Sufficient funding for this agreement is available in the SVP operating budget for Fiscal Year 2024/2025. Funding for future years will be requested through the regular budget process.
COORDINATION
This Report has been coordinated with the Finance Department
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
1. Authorize the City Manager or designee to execute the (a) Northern California Power Agency Shared Use and Occupancy Agreement Signatory Member Execution Page; and (b) Northern California Power Agency Shared Use and Occupancy Agreement Signatory Member Request to Use and Occupy Available Office Space in the forms presented; and
2. Authorize the City Manager or designee to (a) take any actions as necessary to implement and administer the Northern California Power Agency Shared Use and Occupancy Agreement, and (b) amend the agreement with no material cost increase, subject to budget appropriations and review and approval as to form by City Attorney.
Staff
Reviewed by: Manuel Pineda, Chief Electric Utility Officer
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. NCPA Shared use and Occupancy Agreement