HomeMy WebLinkAboutRESO 9510DocuSign Envelope ID: 45B015CC-8630-4D1 D-95E4-018FD843DAB9
Resolution No. 9510
Resolution of the Council of the City of Palo Alto Modifying the
Electric Special Project Reserve Guidelines
A. In 1983 the City of Palo Alto ("City") first established the Calaveras Reserve to help
defray cost associated with the Calaveras Hydroelectric Project.
B. In 1997 Council authorized the collection of a competitive transition surcharge
from the City's electric customers to cover stranded costs in the event customers elected to
receive electric supply services from other providers.
C. In 1999 Council stopped the collection of the competitive transition surcharge
as the Calaveras Reserve was fully funded at $71 million, and established the Calaveras
Reserve Target and Guidelines with a schedule to draw down funds.
D. In 2009 Council approved new Calaveras Reserve ·guidelines which required the
annual calculation of short-term stranded costs to determine the minimum transfer to the
electric utility's operating budget based on the annual calculation of the electric utility's long-term
stranded costs, and the identification of funds available for special projects to the benefit of
electric ratepayers.
E. In 2011 (Resolution 9206) Council changed the name of the Calaveras Reserve to
the Electric Special Project (ESP) Reserve and the purpose from partially funding above market
electric costs and partially funding projects that benefit electric ratepayers, to entirely funding
projects that benefit electric ratepayers. New ESP Reserve Guidelines were also approved,
including a provision to commit the funds for preferred projects by end of FY 2015.
F. At the end of FY 2015, the ESP Reserve balance is expected to be approximately
$51.8 million, with no commitments yet identified for the use of funds.
G. The ESP Reserve Guidelines set a goal to commit the funds by the end of FY 2015
and to return any uncommitted funds to the Electric Operating Reserve and close the ESP
Reserve by the end of FY 2020.
H. Staff has determined that several projects, including smart grid deployment
efforts and transmission related reliability upgrades are good candidates for future funding from
the ESP Reserve, but the projects have not been sufficiently evaluated to recommend
committing the funds to those projects at this time.
I. At the April1, 2015 Utilities Advisory Commission (UAC) meeting, the UAC voted
unanimously (6-0 with Commissioner Chang absent) to recommend that the Council not
150420sdi6053281A 1
DocuSign Envelope ID: 45B015CC-8630-4D1 D-95E4-018FD843DAB9
designate the funds for specific projects now and that the ESP Reserve Guidelines be changed to
defer the date by which the funds must be committed to the end of FY 2017, instead of by the
end of FY 2015, and to defer the date for which uncommitted funds are returned to the Electric
Supply Operating Reserve and the ESP Reserve is closed to FY 2022, instead of FY 2020.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Council hereby amends the Electric Special Project Reserve
Guidelines, codified in Subpart 3 of Section 1 of Resolution 9206, adopted by Council on
November 1, 2011, to extend the deadlines to commit funds and close the ESP Reserve, as
follows:
A. The purpose of the ESP Reserve is to fund projects that benefit electric
ratepayers;
B. ESP Reserve funds are to be used for projects of significant impact;
C. Projects proposed for funding must demonstrate a need and/or value to
electric ratepayers. The projects must have verifiable value and not be
speculative, or risky in nature;
D. Projects proposed for funding must be substantial in size, requiring
funding of at least $1 million;
E. Set a goal to commit funds by end of FY 2017; and
F. Any uncommitted funds remaining at the end of FY 2022 will be
transferred to the Electric Supply Operation Reserve and the ESP Reserve
will be closed.
SECTION 2·: While Council has, via its adoption of this resolution, modified the
ESP Reserve Guidelines, Staff will seek Council approval for specific projects only after staff's
complete assessment and recommendation on the costs, benefits and requirements for any
project. Any expenditure of ESP Reserves shall require Council approval as part of the annual
operating budget approval process.
II
II
II
II
II
II
150420sdi6053281A 2
DocuSign Envelope ID: 45B015CC-8630-4D1 D-95E4-018FD843DAB9
SECTION 3: The Council finds that the adoption of this resolution modifying the
ESP Reserve Guidelines does not meet the California Environmental Quality Act's definition of a
"project" under Public Resources Code Section 21065, thus no environmental review is required.
INTRODUCED AND PASSED: May 18, 2015
AYES: BERMAN, BURT, DUBOIS, FILSETH, HOLMAN, KNISS, SCHARFF, SCHMID, WOLBACH
NOES:
ABSENT:
ABSTENTIONS:
ATIEST:
City Clerk Mayor
APPROVED AS TO FORM: APPROVED:
I, DocuSigned by: L63~. QDocuSigned by:
(j"!t!tf:,
39E7298F82064DB ...
Senior Deputy City Attorney City Manager
(\'DocuSigned by:
~=!~~
Director Utilities
150420sdi6053281A 3
Docu~ ...
Certificate of Completion
Envelope Number: 458015CC86304D1 D95E4018FD843DAB9 Status: Completed
Subject: Please DocuSign this document: RESO 9510 final Electric Special Projects Reserve Identifying Funding
Source Envelope:
Document Pages: 3
Certificate Pages: 5
AutoNav: Enabled
Envelopeld Stamping: Enabled
Record Tracking
Status: Original
6/10/2015 2:11:44 PM PT
Signer Events
Amy Bartell
Amy.Barteii@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 6/11/2015 6:16:04 AM PT
ID: 4a323d8c-9539-45eb-b99c-7c217d77453a
Valerie Fong
Valerie. Fong@CityofPaloAito.org
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 6/11/2015 6:21:30 AM PT
I D: e5364c5f-3d 1 a-4533-8ddc-37f4 7f97a4c2
James Keene
james.keene@cityofpaloalto.org
City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Electronic Record and Signature Disclosure:
Accepted: 4/14/2015 5:40:07 PM PT
ID: 44fe333a-6a81-4cb7 -b7d4-9254 73ac82e3
In Person Signer Events·
Editor Delivery Events
Agent Delivery Events
Intermediary Delivery Events
Signatures: 3
Initials: 0
Holder: Kim Lunt
kimberly.lunt@cityofpaloalto.org
Signature
I,DocuSigned by: L~~
Using IP Address: 24.97.94.164
Signed using mobile
~~~f~~
10583588F83E412 ...
Using IP Address: 199.33.32.254
GDoeuSigned by: l2:2:t!
Using IP Address: 199.33.32.254
Signature
Status
Status
Status
Envelope Originator:
Kim Lunt
250 Hamilton Ave
Palo Alto , CA 94301
kimberly.lunt@cityofpaloalto.org
IP Address: 199.33.32.254
Location: DocuSign
Timestamp
Sent: 6/10/2015 2:14:08 PM PT
Viewed: 6/11/2015 6:16:04 AM PT
Signed: 6/11/2015 6:17:02 AM PT
Sent: 6/11/2015 6:17:03 AM PT
Viewed: 6/11/2015 6:21:30 AM PT
Signed: 6/11/2015 6:22:42 AM PT
Sent: 6/11/2015 6:22:43 AM PT
Viewed: 6/17/2015 5:10:11 PM PT
Signed: 6/17/2015 5:10:28 PM PT
Timestamp
Timestamp
Timestamp
Timestamp
• $1Ulii~!J