HomeMy WebLinkAbout2010-11-01 City Council Agenda PacketThis Agenda/Notice is Posted in
Accordance with Government Code
Section 549.2(A) or Section 54956
11/01/10
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on
the Thursday preceding the meeting.
Special Meeting
November 1, 2010
6:00 PM
ROLL CALL
STUDY SESSION
1. Joint Meeting With Parks and Recreation Commission Regarding Parks
and Recreation Issues
ATTACHMENT
COUNCIL CHAMBERS
7:00 PM or as near as possible thereafter
SPECIAL ORDERS OF THE DAY
2. Presentation by the Housing Trust of Santa Clara County
CITY MANAGER COMMENTS
ORAL COMMUNICATIONS
Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the
right to limit the duration or Oral Communications period to 30 minutes.
CONSENT CALENDAR
Items will be voted on in one motion unless removed from the calendar by two Council Members.
3. Adoption of a Resolution Authorizing the City Manager to Sign Up To
Four Successive One-Year Term Extensions of the Letter of Agreement
07-SNR-01080 to Facilitate the Provision of Hydroelectric Consulting
Services by Palo Alto Utilities Staff Members to the Western Area
Power Administration and the United States Bureau of Reclamation
CMR 401:10 AND ATTACHMENT
2 11/01/10
MATERIALS RELATED TO AN ITEM ON THIS AGENDA SUBMITTED TO THE CITY COUNCIL AFTER
DISTRIBUTION OF THE AGENDA PACKET ARE AVAILABLE FOR PUBLIC INSPECTION IN THE CITY
CLERK’S OFFICE AT PALO ALTO CITY HALL, 250 HAMILTON AVE. DURING NORMAL BUSINESS HOURS.
4. 2nd Reading: Recommendation From the Council Ad-Hoc Committee to
Adopt of an Ordinance Amending Section 2.23.050 of Chapter
2.23 of Title 2 of the Palo Alto Municipal Code to Add the
Subjects of Wastewater Collection and Fiber Optics to the
Purposes and Duties of the Utilities Advisory Commission
(First reading October 18, 2010 – Passed 7-2, Holman, Schmid no)
CMR 398:10 AND ATTACHMENT
5. Approval of Extension of Library Advisory Commissioner Mark Hoose’s
Term to January 31, 2014 and Waiver of Appointment Process Set
Forth in Palo Alto Municipal Code Section 2.24.030
ATTACHMENT
6. Approval of Amended Bylaws to the Santa Clara County Cities
Association
ATTACHMENT
AGENDA CHANGES, ADDITIONS, AND DELETIONS
HEARINGS REQUIRED BY LAW: Applications and/or appellants may have up to ten minutes at the outset of the
public discussion to make their remarks and put up to three minutes for concluding remarks after other members
of the public have spoken.
ACTION ITEMS
Include: Public Hearings, Reports of Committees/Commissions, Ordinances and Resolutions, Reports of Officials, Unfinished Business and Council Matters
7. Authorize the City Manager to Decline a New Power Purchase
Agreement Offer From Ameresco Butte County LLC That Could
Otherwise Partially Replace the Recently Terminated Ameresco Butte
County LLC Power Purchase Agreement
CMR 394:10 AND ATTACHMENT
8. High Speed Rail Update
CMR 404:10 AND ATTACHMENT
COUNCIL MEMBER QUESTIONS, COMMENTS, AND ANNOUNCEMENTS
Members of the public may not speak to the item(s).
ADJOURNMENT
Persons with disabilities who require auxiliary aids or services in using City facilities, services, or programs or who
would like information on the City’s compliance with the Americans with Disabilities Act (ADA) of 1990, may contact
650-329-2550 (Voice) 24 hours in advance.
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: NOVEMBER 1, 2010 CMR: 401:10
REPORT TYPE: CONSENT
SUBJECT: Adoption of a Resolution Authorizing the City Manager to Sign up to
Four One-Year Term Extensions to the Letter of Agreement with the
U.S. Western Area Power Administration and the U.S. Bureau of
Reclamation
RECOMMENDATION
. Staff requests that the Council:
1) Adopt a Resolution authorizing the City Manager to sign up to four one-year
extensions and enter into all necessary contracts, agreements, and amendments on the
City's behalf to implement and carry out the consulting agreement(s) with the U.S.
Western Area Power Administration and the U.S. Bureau of Reclamation for a period
not to exceed four years;
EXECUTIVE SUMMARY
In November 2007 the City of Palo Alto and Western Area Power Administration (Western)
entered into a one-year Letter of Agreement (LOA) 07-SNR-01080 for Palo Alto staff to provide
various analysis and consulting services to optimize the federal hydropower resource available to
all Central Valley Project (CVP) Base Resource customers including Palo Alto. This one-year
agreement was executed by the City Manager and has been amended twice to extend it for a total
of three-year signature authorization through November 30, 2010. Western, the U.S. Bureau of
Reclamation (Reclamation) and staff would like to amend the LOA to extend it again for an
additional one-year term, but not to exceed four additional one-year terms. Council
authorization is required, and is hereby requested, to make that amendment as it would extend
beyond the City Manager's three year authorization. If approved by Council, the City of Palo
Alto Utilities Department (CP AU) would continue to provide specialized consulting services to
the federal agencies under the LOA as long as it was amended to be extended by the City
Manager. It is anticipated that future revenues from the LOA would be approximately $40,000
per year.
BACKGROUND
Western provides the City's largest electric resource, so the City has focused analytical attention
on the hydropower resource and its optimization for more than 20 years. During this time staff
has developed considerable experience, specialized knowledge, skills, working relationships and
Page 1 of3
analytical tools that are effective in analyzing and advising on opportunities and risks related to
the federal hydropower resource. Both Western and Reclamation have come to depend on staffs
ability to illuminate complex situations and suggest beneficial paths of action. Along with Palo
Alto, Western's dozens of other customers benefit from the optimization of the resource. In
order to support the time and effort Palo Alto staff contribute to the benefit of both federal
agencies and all customers, the LOA was developed to allow Western and Reclamation to
subscribe to consulting services and pay the Utilities Department's fully burdened labor cost rate
for the service, ($161/ hour as of 7/1/2010).
Palo Alto's Municipal code section 2.30.21O(i) gives the City Manager authority to sign
contracts for the City to provide municipal services to other public entities where the term of the
agreement does not exceed three years. The subject LOA has been extended twice by one-year
term amendments and is now approaching the end of its third year. For ease of extending the
LOA one year ata time for up to four years, staff is requesting Council authorize the City
Manager to execute up to four additional one year extensions as needed and desirable ..
RESOURCE IMPACT
If approved, one to two hours per day of one staff member's time will continue to be spent on
Western and Reclamation LOA tasks to produce value for all customers including Palo Alto.
The amendment of the contract will enable Palo Alto to be compensated while performing work
that is in Palo Alto's as well as other customers' interest. Minor clerical staff time will continue
to be spent on billing Western monthly for the consulting work.
From January 2008 through August 2010, the LOA has produced cumulative revenues for the
City of $116,812. It is anticipated that future revenues from the LOA would be approximately
$40,000 per year.
POLICY IMPLICATIONS
Continuing the consulting work of assisting the federal agencies in maximizing the value
provided by the federal power resource generally conforms to City policies related to fiscal
responsibility.
ENVIRONMENTAL REVIEW
Amending the consulting LOA is not a "project", because it is not an activity that may cause
either a direct physical change in the environment or reasonably foreseeable indirect physical
change in the environment. The federal agencies would be the lead agencies for any projects
they may undertake under the National Environmental Policy Act (NEPA).
Page 2 3
ATTACHMENTS
A. Resolution
B.. Letter of Agreement 07-SNR-01080;
C. Amendment 3 to Letter of Agreement 07-SNR-OI080
:~:::~::~om Wesrem ilianking pm::: ::;c~
Senior Resource ~inator
REVIEWED BY: .~~.
Acting Assistant Director, Utilities Resource
Management
DEPARTMENT APPROVAL:
VALE .E NG
CITY MANAGER APPROVAL: C(jJ~MES KEENE
\ '/' City Manager
Page
ATTACHMENT A
Not Yet Approved
Resolution No
Resolution of the Council of the City of Palo Alto Authorizing
the City Manager to Sign Up To Four Successive One-Year
Term Extensions of the Letter of Agreement 07-SNR-OI080 to
Facilitate the Provision of Hydroelectric Consulting Services by
Palo Alto Utilities Staff Members to the Western Area Power
Administration and the United States Bureau of Reclamation
. '~ '.
WHEREAS, the City of Palo Alto (the "City"), a municipal utility and a chartered
city, is a customer of the Western Area Power Administration ("Western") for hydroelectric
output marketed from the federal Central Valley Project (the "CVP") that is operated by the U.S.
Bureau of Reclamation ("Reclamation"); and
WHEREAS, the City's staff have developed considerable experience, specialized
knowledge, resource modeling tools and techniques that are helpful to Western and Reclamation
in modeling, forecasting, and optimizing the operation of the CVP for the benefit of power
customers, including the City; and
WHEREAS, in 2007, Western (on behalf of itself and Reclamation) and the City
executed a one-year agreement, entitled Letter of Agreement 07-SNR-OI080 (the "LOA"), to .
facilitate the provision of various hydroelectric consulting services by Palo Alto Utilities staff
members to Western and Reclamation; and
WHEREAS, Palo Alto Municipal Code section 2.30.210(i) grants the City Manager
authority to sign contracts for the City to provide municipal services to other public entities for a
term or terms not exceeding three years; and
i
WHEREAS, in 2007, the City Manager signed the LOA for a term of one year, and
the term has been extended for two successive one-year terms, consistent with his authority
under the Palo Alto Municipal Code; and
WHEREAS, Western, Reclamation and the City desire to extend the term of the
LOA for up to four additional one-year terms;
NOW, THEREFORE, the Council of the City of Palo Alto does hereby RESOLVE
as follows:
SECTION 1. The Council hereby authorizes the City Manager or his designee to
sign up to four one-year term extensions to the Letter of Agreement 07 -SNR -0 I 080, which terms
will commence in 2010,2011,2012 and 20B,respectively.
II
II
II
101025 jb 0073449
Not Yet Approved
SECTION 2. The Council finds that the adoption of this resolution does not meet
the definition of a project under Section 21065 of the California Environmental Quality Act and,
therefore, no environmental assessment is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM:
City Manager
Senior Assistant City Attorney
Director of Utilities
Director of Administrative Services
2
101025 jb 0073449
... ~!:
Department of E;nergy
Western Area Power Administration
Sierra Nevada Customer Service Region
, 114 Parkshore Drive
Folsom, California 95630-4710
NOV - 7 2007
·ATTACHMENT B
AUTHENTICATED COpy
Leiter or Agreement 07-SNR-01 080
Mr. Frank Senest
City Manager
City of Palo Alto
,250 Hamilton Avenuel 3rd Floor
Palo Alto, CA 94301-2593
Dear Mr. Benest:
This Letter of Agreement 07-SNR-01 080 (LOA) is between the City of Palo Alto (Palo
Alto) and the Sierra Nevada Regional Office of the Western Area power Administration.
(\JYestern). Palo Alto is a preference customer of Western and receives an allocation of
the Base R,esource under Western's 2004 Power Marketing Plan. '
Western and Palo Alto, along with the Mid-Pacific Region of the Burec;tu of RecIam'ation .
(Reclamation) have had discussions regarding exploring ways to continuously maximize
the value of the Base Resource within the 'context of Reclamation's regulatory water .
release constraints. Th!9 maximization of the value of the Base Resource,will benefit all
of its preference customers; incliJding Palo AI~b. Western understands Palo Alto has
unique internal expertise in this area. It is In the best interests of both Western and its
preference customers for Western to obtain assistahce 'from Palo Alto in this area. All
preference cl,Istomers Will benefitt6the' eXteht of their'Base Resou"rce percentages in
any efforts that Western does to m~ximize the value of the Central Valley' Project (CVP)
generation.' '
. . . ..
Western' and Palo Alto are also parties to Contract 03-SNR-005831 Central Valley
'Project Corporation Funding Contract (Contract). The Contract provides a mechanism
for e$tablishing a funding arrangement to allow for a more, predictable flow of funds
related to Westefn's power rates and/or direct charges. The Contract also provides for
an energy exchange program between Western and its preference customers which
provides firm power for project use and first preference customers during certain times.
Both of these programs were instituted at the request of Western's customers as a
,means of trying to stabilize the unpredictability of Western's costs and Base Resource
deliveries. If Western, Reclamation, and Palo Alto are able to institute any
Page 1 of?
""': .
AUTHENTICATED COpy
AUTHENTICATED 'COpy
Letter of Agreement 07-SNR-01080
. .
improvements as outlined in .this LOA to maximize the value of the Base Resource to
Western's preference customers, it could result in a reduction of the efforts needed'
under the Contracrto provide a cost stabilization fund. and t~e need to require
. ; preference customers to provide energy to Western to meet project use and first
preference customer loads. '
1. yvestem and Palo Alto agree to the following terms and conditions:
1.1 Palo Alto will provide a technical resource to provide analytical services to.
. maximize the value of the Base Resource from the CVP (Le., hydropqwer
resource value maximization).
1.2 'Within 15 days of the execution of this LOA, Palo Alto shall notifY both
Western and Reclamation of the analyst designated by' Palo Alto, at its 'sole
discretion, to perform the services designated in this LOA. .
. .
1.3 The analyst from Palo Alto will use technical hydropower-generation data
and schedul~s that are provided by Reciamation to Western and its preference
customers to provide alternative recommendations related to water operations.
which still allow Reclamation to comply with its statutory and contractual'
downstream at:ld in-stream water delivery requirements while still allowi.ng the
value of the hydropower generation to be maximized to the extent practicable: .
1.4 . The analyst will review the operation of the tvp on a daiiy basis and' . .
periodically, as the need ~rises and. as agreep to by Western's point of contact.
the analyst will provide review and recommendation$ to both Western and .
Reclamation resource.personnel related to CVP daily, weekly, monthly, or
seasonal water/power fOJecasts.. Such analysis will be focused towards
maximizing the value of the Base Resource within water operational constraints
gnd 'corltnjl area limitations. ' : . .., ,
'. . 1.5 On approximately a monthly basis the analyst will also provide 2~ month. .'
generation forecasts based on the 12 month 50% exceedence inflow water
models published by Reclamation including estimates of thE? daily costs of
hypothetical water bypasses at each major CVP powerplant and estimates of the
daily lost value of hypothetical single and doubleunitor lineoutages'at each
. poWerplant for Western and Reclamation personnel to use in their estimates of
the lost generation costs of outages and bypas~es.
1.6 Occas.ionally' as requested by Western re~ource personnel the analyst
may be asked to commit additional time (to the extennt does not int~rfere with
, Palo Alto duties) to revi.ew and make recommenqations on, plant and/or line .
maintenance pl~ns, altern.atives, outages and rapid return to service values,' etc. "
PE}ge 2 of 6
AUTHENTICATED COpy
I . r i J
AUTHENTICATED GOPY .
Letter of Agreement 07-SNR~01080
As with all products, these are only recommendations, af.ld ultimately,
managerial personnel at both Western and Reclamation need to concur and
approve any such recommendations before any changes are implemented.
, '
1.7 The analyst may provide other services under this. LOA if requested by'the
Western point of contact and agreed to by the,Palo Alto point of contact. These
services may involve maximizing the value of the Base Resource through '
" evaluating pu'rchase power options to meet Western's contractual and statutory
obligations. The Reclamation point of contact will coordinate all requests for
yvork to be performed by P~lo Alt9 on behalf of Reclamation through the Western
. point of contact. "
The contact information for both Western and Reclamation resources personnel
.. are as follows: '
Western:
'Mr:Tom Patton
Power Resource's
114 Parkshore Drive
Folsom, CA 95630
(916) 353~4511
Reclamation:
Mr. Paul Landry ,
3310 EI Camino AvenueJ Suite 300 '
Sacramenfo, CA 95821
(916) ,979~0255
" , '·l.B The analyst will 'be 'a'iiowed to"work'from a'-remote 'site' to' cOmplete··tDe
analysis identifiea in this LOA. It is estimated that the analyst could spend, on
average, approximately 10-12 hours per week performing servIces under this "
LOA related to items 1.3, 1.4 and 1.5 above with a total number of h'ours on all
tasks under this LOA not to exceed BOO hours per ye,ar. :
1.9 The estimated .. cost for the analyst to perform services under thi.s LOA will
be'based on Palo Alto's fu'lly purdened labor cost which is estimated to be
, ~. .
$,104.00 per hour. , ~ ~ III /'f. c/ '?-1/-: 110
, . ~ .Il,1-c1l.$' 7ft 7(7 .~I '
1.10 Jt is not antiCipated that a:ny travel or other miscellaneous expenses will be
required under thi1:!LOA that will require reimbursement by eitner Western or' .. ,
Reclamation. If any travel or other misceJ.laneous expenses are requir€ld by
either Western or Reclamation under this LOA, Palo Alto will be reimbursed for.
the travel time and miscellaneous expense:,
Page 3 of6
'AUTHENTICATED COpy
AUTHENTICATED COpy
Letter of -Agreement 07 -SNR~01 080
. 1.11 Throughout the oourse of. each yearl Palo Alto representatives part.icip·ate
in 6ther CVP power related activities (such as the Customer Coordination
· Committee, Technical Committee associated with the Customer Funding
Program, Western's periodic customer meetingsl or rate processes, etc). It is
· not anticipated that the costs of the analyst1s participation in any of these types
m~etjngs will be reimbursed under. this LOA. .
/
· 1.12 Western and Reclamation shall provide Palo Alto Representative with
general guidelines, potential scenarios and/or desired outcomes for maximizing
the benefits of the CVP generationl as well as the appropriate data n~eded for
the analyses. Such data could include, butis not'limit~d to: monthly, weekly,
daily and/or hou'rly historical and forecasted data for purchases and sales of
power .. CVP generation, forecast~d and actual loads, ISO scheduling protocolsi
etc.
1.13 Western and ReClamation will evaluate and give feedback on the
information provided by the Palo Alto Representative as·it relates to maximizing
the value of the CVP generation. Nothing in·thls LOA is intended to commit
Western or Reclamation to a course of action. Analyses and supporting data will
not be released to entities other than the Federal agencies unless both agencies
agree to the diss'emination of such information. .
2. Compensation: .
2.1 Palo Alto will bili Western for services rendered Ulider this 'LOA at the end
of each month. Please reference LOA 07-SNR-01080 on the bill. 1he bill will be
sent to the following address:
Accounts Payable
ATTN: NaOOO \ '. .
Western Area Power Administration
. 114 Park$ho"re Drive
Folsom,' CA 95630
2.2 Western and Reclamation have agreed that each agency will pay one half
of the estimated cost as set forth in Sectiqn··1 above. Western will pay the full
invoice issued by.Palo Alto in accQrdance .with the due date on the. bill for
collection. Western will initially pay the'full amount as set forth above to Palo
Alto, and Will then coHect Reclamation's share of the costs via a Local
Agreement under the Consolidated Operation and Maintenance Agreement
(referenced as Western Agreem~nt 03-SNR-00560; and Reclamation Agreement
2~0720-00448) .. Western and Reclamation will execute such Local Agreement .
a~ a separate document and will reference this LOA.
Page4 of 6
AUTHENTICATED COpy
I,
AUTHENTICATED COpy
tetter of Agreement 07 ~SNR-01 080
3. Contingent Upon Appropriations and Authorization:
4.
3.1 . Where activities provided for iri the contract extend beyond the current
fIscal year, continued expenditures by Western are contingent upon Congress
making the necessary appropriations required for the continued performance of
Western's obligations under this LOA. In case such appropriation is not made,
Palo Alto hereby releases Western from its contractual obligations and from all
liability due to the failure of Congress to m,ake such ,appropriation. ,. ,
3.2 . Palo Alto policy requires full cost recovery forwork performed. Western
and or Reclamation shall not request nor require of Palo Alto any work wIthout
.' either appropriati~:>ns or a final continuing resolution, Palo Alto shall have the
right to refuse work'without appropriations or a continuing rE}solution.
Covenant Against-Contingent Fe'es:
Palo Alto warrants that no person or selling agency has been employed or
retained to solicit or secure this LOA upon an agreement or understanding for a
commisSion, percentage) brokerage, or contingent fee, excepting bona fide ,
er:nployees or bona fide established commercial or selling agencies l11aintained
by Palo Alto forthe'purpose of securing business. For breach or violation of this
warranty; West~rn shall have the right to annul this LOA without liability or in its
discretion to deduct from the LOA price or ,consideration the full amount of such '
commission, percentage, brokerage, or con~ingent fee.
5. Contract Work Hours and Safety Standards: .
This ~OA, to the extent ,that it is of a character specified In Section 103 of the
Contract Work Hours and Safety Standards Act (Act), 40 U:S,C. § 370,1, as
amended or supplemented, is subject to the provisions of the Act, 40 U.S.C. §§
3701-370'8, as-amended or supplemented, and to'TegulationspromtJlgated by-
the Secretary of Labor pursuant to the Act. '
6. Equal Opportunity Employment Practices:
Section 202 of Executive Order No. 11246, 30 Fed. Reg. 12319 (1965), as
amended by Executive Order No. 12086,43 Fed. Reg. 46501 (197!32.!_as .-
amended or supplemented, which provides, among other things, that Palo Alto
will not discriminate against any employee or applicant for employment because
. of race, color, religion, sex) or national origin, is incorporated herein by reference
the saine as if the specific language had been written into the contract, except
that Indian Tribes and tribal orga'nizations may apply Indian preference to the
extent permitted by Federal law. ' ,
Page 5 of6
AUTHENTICATED COpy
"
AUTHENTlCATED COpy" '"
letter of Agreement 07-SNR-01080 '-
7, Use of Convict Labor: .
Palo Alto agrees. not to employ any person undergoing sentence 6f imprisonment
in performing trie contract except as provided by 18 U.S.C. § 3622(c), as '
amended.or supplemented, ~nd Executive Order No; 11755,39 ·Fed. Reg .. 779
(1973), as amended or supplemented.
8. Term: This LOA shaWbecome effective 'Upon execution by Palo Alto and
Western, and shall remain in effect for a period of one year; Provided, That the
parties may mutually agree to extend the term of this LOA for successive one .
year terms by executing an amendment to this LOA
, If you are in agreement with the terms and conditions of this 'LOA, please have the
. appropriate official sign, date, and attest if appropriate ,both ori.ginals, and return' one to
Ms. Ruth Nys" Mail Code N6205, at this office. . .
. Sincerely;
;Jerra(l~
Sonja A. Anderson .
. Power Marketing Manager
In Duplicate
. . ,. '" ...... .•. CilyOfP~ . ... , .......... = ...... ~".
" By:" . . . . '
Title: . City Manager
.Addtess:. __ ~ ______ _
Oate: ___ NO_V_1_3 _20_07_._' __ _
... -
Page 6'of6
AUTHENTICATED COpy
· Department ·of Energy
Western Area Power Administration
Sierra Nevada Customer Service Region
114 Parkshore Drive
'Folsom, California 95630-4710
OCT 14 2009
Amendment 2 to
Letter of Agreement 07-SNR-01 080
Mr. James Keene
City Manager
City of Palo Alto
250 Hamilton Avenue. 3rd Floor
Palo Alto. CA 94301-2593
Dear Mr. Keene:
The Sierra Nevada Regional Office of the Western Area Power Administration
(Western) and the City of Palo Alto (Palo Alto) are parties to Letter of Agreement
07-SNR-01080 (LOA) under which Palo Alto has ,been providing a technical resource to
provide analytical services to' maximize the value of the Base. Resource from the CVP
(Le., hydropower resource value maximization).
Section '8 of the LOA provides that the parties may mutua.lly agree to extend the LOA
for successive one year terms by executing an amendment to the LOA: Both Palo Alto
and Western staff have agreed that there would be a mutual benefit in extending the
LOA for another year. Therefore. by executing this Amendment 2 to the LOA, the
Parties agree to an extension of the LOA through November 30.2010.
If you are in agreement with the terms and conditions of this Amendment 2, please
have the appropriate official sign and date both originals, have the signatures attested,
and return one original to Ms. Ruth Nye, mail code N6205. at Western's Sierra Nevada
Region Office.
If you have any questions. please contact Ms. Jeanne Haas at (916) 353-4438.
Sincerely.
;& '!2~ sonj~erson .
Power Marketing Manager
\
In Du plicate
Page 2
Amendment 2 to
Letter of Agreement 07 -SNR-01 080
CITY OF PALO ALTO
it ,.;I r-
By: r ';z j{ u= '};--~'. Title: < City Manager .
Address: 2 So J'4Cl(h" (fen A· VF·
Pedo . A 1'+0 J CA CJ43dj
Dated: I o"~ 2 J -(')9
Mr. James Keene
City Manager
City of Palo Alto
250 Hamilton Avenue, 3rd Floor
Palo Alto, CA 94301-2593
Dear Mr. Keene: .
ATTACHMENT C
Amendment 3 to
Letter of Agreement 07 -SNR-01 080
'The Sierra Nevada Regional Office of the Western Area Power Administration
(Western) and the City of Palo Alto (Palo Alto) are parties to Letter of Agreement
07 -SNR-01 080 (LOA) under which Palo Alto has been providing a technical resource to
provide analytical services to maximize the value of the Base Resource from the CVP
(Le., hydropower resource value maximization).
Section 8 of the LOA provides that the parties may mutually agree to extend the LOA
for successive one year terms by executing an amendment to the LOA. Both Palo Alto
and Western staff have agreed that there would be a mutual benefit in extending the
LOA for another year. Therefore, by executing this Amendment 3 to the LOA, the
Parties agree to an extension of the LOA through November 30, 2011.
If you are in agreement with the terms and conditions of this Amendment 2, please
have the appropriate official sign and date both originals, have the signatures attested,
and return one original to Ms. Ruth Nye, mail code N6205, at Western's Sierra Nevada
Region Office.
If you have any questions, please contact Ms. Jeanne Haas at (916) 353-4438.
Sincerely,
Sonja A. Anderson
Power Marketing Manager
Ms. Valerie Fang
Utilities Director
City of Palo Alto ,
250 Hamilton .Avenue
Palo Alto, CA 94301·
Department of Energy.
Western Area Power Administration
Sierra Nevada Customer Service Region
.114 Parkshore Drive
Folsom, California 95630-4710
SEP 1 9 2008
l,/!3.t. .. '
Dear Ms. ,f..0ng;' /; .
ATTACHMENTD
SEP 2 62008
The Western Area Power Administration (Western) wishes to thank yo.u for making /'
. Mr. Tom Kabat available to provide analytical support to the Bureau of Reclamation's
(Reclamation) and Westem's hydropower generation and transmission programs. Tom
is an innovative and out-of-the box analyst and is, highly respected by his peers in the
industry. His insights and suggestions have improved the efficiency of th'e Federal
hydropower generation function. Western appreciates the collaborative approach our
customers take to share resources for the benefit of the entire preference power
community. Tom's contributions have assisted Reclamation and Western to create the
most value from Federal hydropower generation. Western strongly supports the
continuation of the current arrangements.
Thank you again forallowing Tom to perform this work forthe benefit of the entire
C~ntral Valley Project.
TO: HQNORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: CITY MANAGER'S OFFICE
DATE: NOVEMBER 1,2010 CMR: 398:10
REPORT TYPE: CONSENT
SUBJECT: Second Reading: Recommendation of the Council Ad-Hoc Committee
to Adopt an Ordinance Amending Section 2.23.050 of Chapter 2.23 of
Title 2 of the Palo Alto Munidpal Code to Add the Subjects of
Wastewater Collection and Fiber Optics to the Duties of the Utilities
Advisory Commission
RECOMMENDATION
The Council Ad Hoc Committee to review the purpose and duties of the Utilities Advisory
Commission (UAC) recommends that the City Council adopt an ordinance amending Section
2.23.050 of the Palo Alto Municipal Code to reflect certain changes in the UAC's purpose and
duties.
BACKGOUND
On Octobyr 18, 2010, the Council adopted the recommendation of the Council Ad Hoc
Committee to adopt the Ordinance Amending Section 2.23.050 of Chapter 2.23 of Title 2 of the
Palo Alto Municipal Code, with certain changes to paragraph (c) under Section 1. The CMR and
attachments for the October 18, 2010 meeting are provided in Attachment B and the excerpted
draft action minutes from the meeting in Attachment C.
DISCUSSION
At the October 18, 2010 Council Meeting, the Council members discussed the Ad Hoc
Committee's proposed amendments to Section 2.23.050 of Chapter 2.23 of Title 2 of the Palo
Alto Municipal Code. The discussion focused on a proposed new paragraph (paragraph (c ) under
Section 1), that would add to the UAC's purpose and duties the ability to foster and facilitate
engagement with the general pUblic. The Council voted seven to two to adopt the Ad Hoc
Committee's proposal with the following language for paragraph c:
(c) The utilities advisory commission may, subject to its city council-approved
bylaws and at the. discretion of the city council, foster and facilitate engagement with the general
public, not excluding representatives of commerce and industry, in regard to the· utility matters
referred to in subsections (b)(1)( A) through (E)
CMR: 398:10 Page 1 of2
Council also directed that the UAC bylaws address the circumstances that commerce and
industry groups with policy issues may corne forward to address the UAC.
RESOURCE IMPACT
Any resource impacts to implement these changes to the UAC's roles and responsibilities are
expected to be an incremental increase in staff time to bring wastewater collection and fiber
optics fund matters to the UAC and additional staff time as might be needed to facilitate
engagement with the general public. .
POLICY IMPLICATIONS
The proposed modifications to the Municipal Code expand the UAC's purpose to advise the City
Council on present and prospective long-range planning and policy and major program and
project matters relating to the Wastewater Collection and the Fiber Optics Funds.
The proposed modifications would also expand the UAC's role, subject to its city council-
approved bylaws and at the discretion of the City Council, to foster and facilitate engagement
with the general public, not excluding representatives of commerce and industry, in regard to the
utility matters.
ENVIRONMENTAL REVIEW
Adoption of this Ordinance does not meet the California Environmental Quality Act's definition
of a project pursuant to Public Resources Code Section 21065, and therefore, no environmental
review is required.
ATTACHMENTS
A: Ordinance of the Council of the City of Palo Alto Amending Section 2.23.050 of Chapter
2.23 of Title 2 of the Palo Alto Municipal Code
B: CMR 380:10 with Attachments
C: Excerpted Draft Action Minutes from the Council October 18,2010 meeting
PREPARED BY:
DEPARTMENT APPROVAL:
DEBRA LLOYD \)L
Acting Assistant Director,
Utilities Resource Management
VALERI O. NG
CITY MANAGER APPROVAL: ~ t;/[JAMES KEENE .~ ~ City Manager
CMR: 398:10 Page 2of2
follows:
Not Yet Approved
Ordinance No. ----Ordinance of the Council the City of Palo Alto
Amending Section 2.23.050 of Chapter 2.23 of Title 2
of the Palo Alto Municipal Code to Add the Subjects
of Wastewater Collection and Fiber Optics to the
Purposes and Duties of the Utilities Advisory
Commission
ATTACHMENT A
NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as
SECTION 1. Section 2.23.050 of Chapter 2.23 of Title 2 of the Palo Alto
Municipal Code is hereby amended to read, as follows:
2.23.050 Purposes and duties.
(a) The purpose of the utilities advisory commission shall be to advise the city
council on present and prospective long-range planning and policy and major program
and project matters relating to the electric utility, gas utility, water utility, wastewater
collection utility, aa4--fiber optics utility and the subject of recycled water matters,
excluding daily operations.
(b) The utilities advisory commission shall have the following duties:
(1) Advise the city council on long-range planning and policy matters
pertaining to:
(A) Acquisition and dDevelopment of the electric utility, gas
utility, water utility, wastewater collection utility, fiber optics utility. and the recycled
water resources;~
(B) Joint action projects with other public or private entities
which involve ... affect or impact the electric utility, gas utility, water utility, wastewater
collection utility. fiber optics utility. and the recycled water resources;~
(C) Environmental implieationsaspects and attributes of the
electric utility, gas utility, water utility, wastewater collection utility. fiber optics utility,
and the recycled water projectsresource,~
(D) Water and energy Gyonservation, energy efficiency, and
demand side management,~ and
100923 jb 0073411
Not Yet Approved
(E) Recycled water matters not otherwise addressed in the
preceding subparagraphs (A) through (D)-:-;
(2) Review and make recommendations to the city council on the
consistency with adopted and approved plans" a:ad-policies .. and programs of any major
electric utility, gas utility, water utility, wastewater collection utility, fiber optics utility,
or the recycled water projectresource;
(3) Formulate and review legislative proposals regarding the electric
utiHty, gas utility, water utility, wastewater collection utility, fiber optics utility and
tm:y!he recycled water operatioftresource, to which the city is a party .. er-in which the city
has an interest, or by which the city may be affected;
(4) Review the electric utility, gas utility, a:ad-water utility. wastewater
collection utility. and fiber optics utility capital improvement programs, operating
budgets and related reserves; and rates, and the recycled water program, budget, and rate,
and thereafter forward any comments and recommendations to the finance committee or
its successor;
(5) Provide advice upon such other matters as the city council may
from time to time assign.
The utilities advisory commission shall not have the power or authority to cause
the expenditure of city funds or to bind the city to any written, oral or implied contract.
(c) The utilities advisory commission may, subject to its city council-
approved bylaws and at the discretion of the city council, foster and facilitate engagement
with the general public, not excluding representatives of commerce and industry, in
regard to the utility matters referred to in subsections (b)(l)(A) through (E)
SECTION 2. The Council finds that the addition of duties and purposes of
the Utilities Advisory Commission to Chapter 2.23 of the Palo Alto Municipal Code does
not meet the definition of a project under the California Environmental Quality Act
pursuant to California Public Resources Code Section 21065, and therefore no
environment impact assessment is necessary.
1/
1/
1/
1/
1/
100923 jb 0073411
Not Yet Approved
SECTION 3. This ordinance shall become effective upon the commencement
of the thirty-first day after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST: APPROVED:
City Clerk Mayor
APPROVED AS TO FORM: City Manager
Senior Asst. City Attorney Director of Utilities
Director of Administrative Services
100923 jb 0073411
ATTACHMENTB
... , r
'", " . ,
, ;
, "
J • I
\
TO: HONORABLE CITY COl.iNCIL
FROM: CITY MANAGER DEPARTMENT: CITY .MANAGER'S OFFICE.
DATE: OCTOBER 18, 2010 CMR: 380:10
REPORT TYPE: ACTION
SUBJECT: Recommendation of the Couneil Ad-Hoc Committee to Adopt an
Ordinance Amending Section 2.23.050 of Chapter 2.23 of Title 2 the
Palo Alto Municipal Code to Add the Subjects of Wastewater
Collection and Fiber Optics to the Duties of the Utilities Advisory
Commission
RECOMMENDATION
The COWlcil Ad Hoc Conunittee to review the purpose and duties of the Utilities Advisory
Conunission (UAC) recommends that the City Council adopt an ordinance amending Section
2.23.050 of the Palo Alto Municipal Code to reflect certain changes in the UAC's purpose and
duties.
BACKGOUND
On July 6, 2009, the COWlcil moved "for the Mayor [then Mayor Drekroeier] to appoint a
Council subcommittee to review the role of the UAC and return with a report before the second
reading of the Ordinance." The mayor appointed the then Chair of the Policies and Services
Committee (Vice Mayor Espinosa), the then Chair of the Finance Committee (Mayor Burt) and
the Council liaison to the UAC (Council Member Yeh) to the Ad Hoc Subcommittee.
The Ad Hoc Committee met four times from August 11, 2009 to September 8, 2010. The
committee schedu1e and agendas are provided in Attachment B, In the process, the committee
conducted research to assist in its discussions. Staff prepared and 'the committee reviewed the
responses to a survey of the organizational structure of other utility boards and commissions in
the state, provided in Attachment C. In November 2009, the committee also conducted a survey
of previous UAC commissioners to get their insights into what worked or didn't work in terms of
the UAC's interactions with staff and the Council and what changes would be recommended in
the purpose and duties of the UAC, .
DISCUSSION
One of the major topics of discussion by the committee was whether to add the Wastewater
Collection and Fiber Optics Funds to be wlder the purview of the UAC. While there was debate
about whether this should be expanded even further to include all services shown on customers'
CMR: 380:10 Page 1 of3
utility bills, the Ad Hoc Committee decided to move forward with the recommendation on
adding the Wastewater Collection and Fiber Optics Funds and defer discussion on other utilities
services provided by the Public Works Department to a later timet after further meetings and
discussion with the City Manager.
Two other issues extensively discussed were the UAC's ability to raise issues with the Council
and suggest revisions to existing policies~ and allowing the UAC to facilitate engagement with
the general public. The Ad Hoc Committee members stated that they wanted it to be clear that
the UAC was empowered to raise issues with the Council and suggest new policies direction or
amendment.., to existing policy. Some modifications to the Municipal Code were agreed upon to
make this role/ability clearer. The Ad Hoc Committee members also stated that they would like
the UAC to have the ability to foster and facilitate engagement with the general public, including
representatives of commerce and industry, in regard to the Utilities Department's matters.
However. the language w~ crafted so that this was an abi~ity~ not a mandate, and 'would be at the
discretion of the City Council.
Finally, the Ad Hoc Committee members stated their expectation that the UAC would develop
its own bylaws.
Additional meetings of the Ad Hoc Committee and the City Manager would be required for any
potential further expansion of the' UAC's purview of certain serVices provided by the Public
Works Department.
AD-HOC COl\llMITTEE REVIEW AND RECOMMENDATIONS
1. Expand the UAC's purpose and duties to advise the City Council on present and
prospective long-range planning and policy and major program and project matters
relating to the Wastewater Collection and the Fiber Optics Funds.
2. Expand the UAC's role~ subject to the discretion of the City Council, to foster and
facilitate engagement with the general public, including representatives of commerce and
industry, in regard to utility matters.
3. Clarify the UAC's ability to raise issues with the City Council and suggest revisions to
existing policies.
RESOURCE IMPACT
Any resource impacts to implement these changes to the UAC's roles and responsibilities are
1 expected to be an incremental increase in staff time to bring wastewater collection and fiber
optics fund matters to the UAC and additional staff time as might be needed to facilitate
engagement with the general public.
POLICY IMPLICATIONS .
The proposed modifications to the Municipal Code expan.d the UAC'spurpose to advise the City
Council on present and prospective longwrange planning and. policy and major program and
project matters relating to the Wastewater Collection and the Fiber Optics Funds.
CMR: 380:10 Page 2 of3
The proposed modifications would also expand the UAC's role, subject to the discretion of the
City Council, to foster and facilitate engagement with the general public~ including
representatives of commerce and industry, in regard to the utility matters.
ENVIRONMENTAL REYIEW
Adoption ofthls Ordinance does not meet the California Environmental Quality Act's definition
of a project pursuant to Public Resources Code Section 21065, and therefore, no environmental
review is required.
ATTACHMENTS ,
Attachment A: Ordinance of the Council of the City of Palo Altn Amending Section 2.23.050 of
Chapter 2.23 of Titie 2 of the Palo Alto Municipal Code
Attachment B: City Council UAC Ad Hoc Committee Meeting Schedule and Agendas
Attachment C: Survey of the Organi:r..ational Structure of Other Utility Boards and Commissions
in the State
PREPARED BY:
CITY MANAGER APPROVAL:
CMR: 380:10
DEBRA LLOYD "1') L-
Acting Assistant Director, Utilities Resource
Management
'j'-~ SKEENE .
Manager .r)
Page 3 of3
· .
follows:
~ot]{etJ\ppvoved
Ordinance No. ----Ordinance of the Council of the City of Palo Alto
Amending Section 2.23.050 of Chapter 2.23 of Title 2
of the Palo Alto Municipal Code to Add the Subjects
of Wastewater Co~lection and Fiber Optics to the
Purposes and Duties of the Utilities Advisory
Commission
ATTACHMENT A
,. l' .' J • ~r ',. :~\ ',,"
NOW, THEREFORE, the Council of the City of Palo Alto does ORDAIN as
SECTION 1. Section 2.23.050 of Chapter 2.23 of Title 2 of the Palo Alto
Municipal Code is hereby amended to read, as follows:
2.23.050 Purposes and duties.
(8) The purpose of the utilities advisory commission shall be to advise the city
council on present and prospective long~range planning and policy and rna; or prOgram.
and project matters relating to the electric utility, gas utility, water utility, ~a,stewater
collection utility, cm4-fiber optics utility and the subject ··-ef-recycled water....1n~tters,
excluding daily operations.
(b) The utilities advisory commission shall have the following duties:
(1) Advise the city council on long~range planning and policy matters
pertaining to:
(A) AeEtuisitien and dDevelopment of the electric utility, gas
utility~ water utility, wastewater collection lJ.!ility. fiber optics utility. and the recycled
water resources,,;, .
(B) Joint action projects with other public or private entities
which involve~ affect or impact the electric utility, gas utility, water utility, wastewater
collection utility, fiber ... optics utility. and the recycled water resources;;
(C) Environmental implioati-etlSasnects and attributes of the
electric utility, gas utility, water utility, wastevv.ill~r collection Q1;Uity, fiber optics utility,
and the recycled water Flf6.ieotsreso~n~.~,~
(D) Water and energy GQonservation. ener,.gy efficiency. and
demand side management;; and
,
JOI008jb 0073411
(E) Recycled water matters not otherwise addressed in the
preceding subparagraphs (A) through (D)~i
(2) Review and make recommendations to. the city council on the
consistency with adopted and approved plans", atitl-policiesj and programs of any major
electric utility, gas utilityJ water utility, wastewater collection utility, fiber optics utility.
or the recycled water fH'oje&t!'esource;
(3) Fonnulate and review legislative proposals regarding the electric
utility, gas utility, water utility, wastewater collecti211 utility,. fiber optics utility and
9:l.fYthe recycled water epemtiO:nresource, to which the city is a party", Orin which the city
has an interest. or by whigll. the city may be affected;
(4) Review the electric utility, gas utility, arui-water utility. wastewater
collection utility. and fiber optics utility capital improvement programs) operating
budgets and related reserves, and rates, and the recycled water program. budget, and rate,
and thereafter forward any comments and recommendations to· the finance committee or
its successor;
(5) Provide advice upon such other matters as the city council may
from time to time assign.
The utilities advisory commission shall not have the power or authority to cause
the expenditure of city funds or to bind the city to any written. oral or implied contract.
_ (c) The .J.ltilities adyi~.Q;ry commission may, subj ect to the disc~tion of the citX
QQuncil.. foster and facilitate engagement with the general puP.1ic. including
representatives of commerce and industry. in regard to !h~ utility matters referred to in
subsecti.olls (b)(1 )(A) through (E)
. SECTION 2. The Council finds that the addition of duties and purposes of
the Utilities Advisory Commission to Chapter 2.23 of the Palo Alto Municipal Code does
not meet the definition of a project under the Californ1A Environmental Quality Act
pursuant to California Public Resources Code Section 21065, and therefore no
environment impact assessment is necessary.
II
II
II
II
1/
IOlOOSjb OO?J411
SECTION 3. This ordinance shall become effective upon the commencement
of the thirty-first day after the date of its adoption.
INTRODUCED:
PASSED:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
ATTEST:
City Clerk
,
" APPROVED AS TO FORM:
Senior Asst. City Attorney
lOl008jb 0073411
APPROVED:
Mayor
City Manager
Director of Utilities
Director of Administrative Services
City Council "UAC Ad Hoc Committee
Meeting Schedule
ATTACHMENT B
an
acMsory boatdlCommission[olher than
your legis/ative body] which provides
advice to your legislative body on planning
and po/icy and any other substentive
matters?
boardlcomm;ssi<>ntiaw. the authority to
direct Staff activities, and are the staff
activities to support.theboardlconimission
separatelY funded andbudgeled? If so,
what is the scope of such:'authority?
EXCERPTED DRAFT ACTION MINUTES OF COUNCIL
Meeting of October 18,2010
ACTION ITEMS
ATTACHMENT C
14. Recommendation of the Council Ad-Hoc Committee to Adopt an Ordinance Amending Section
2.23.050 of Chapter 2.23 of Title 2 the Palo Alto Municipal Code to Add the Subjects of
Wastewater Collection and Fiber Optics to the Purposes and Duties of the Utilities Advisory
Commission.
MOTION: Council Member Scharff moved, seconded by Council Member Holman to approve the
recommendation of the Council Ad Hoc Committee to adopt the Ordinance Amending Section 2.23.,050 of
Chapter 2.23 of Title 2 of the Palo Alto Municipal Code, excluding Section 2.23.050 Section 1, paragraph
(c)-The Utilities Advisory Commission may, subject to the discretion of the City Council, foster and facilitate
engagement with the general public, including representatives of commerce and industry, in regard to the
utility matters referred to in subsections (b)(1 )(A) through (E).
SUBSTITUTE MOTION: Council Member Yeh moved, seconded by Vice Mayor Espinosa that the City
Council adopt the recommendation of the Council Ad Hoc Committee: 1) to adopt the Ordinance Amending
Section 2.23.050 of Chapter 2.23 of Title 2 of the Palo Alto Municipal Code, 2) subject to its bylaws and the
discretion of the City Council shall foster and facilitate, and 3) to include the following verbiage in
paragraph (c) under Section 1: include the wording -not to exclude representatives of commerce and
industry.
INCORPORATED INTO THE SUBSTITUTE MOTION WITH THE CONSENT OF THE MAKER AND
SECONDER to include that the Utilities Advisory Commission, subject to the Council approved bylaws, will
address the circumstances that commerce and industry groups with policy issues may bring them forward.
SUBSTITUTE MOTION RESTATED: 1) The City Council adopt the recommendation of the Council Ad Hoc
Committee: 1) to adopt the Ordinance Amending Section 2.23.050 of Chapter 2.23 of Title 2 of the Palo
Alto Municipal Code, 2) subject to its bylaws and the discretion of the City Council, and 3 to include the
following verbiage in paragraph (c) under Section 1: not to exclude representatives of commerce and
industry, and 4) to include that the Utilities Advisory Commission, subject to the Council approved bylaws,
address the circumstances that commerce and industry groups with policy issues may come forward to
address the Commission.
SUBSTITUTE MOTION AS AMENDED PASSED: 7-2 Holman, Schmid no
THE HONORABLE CITY COUNCIL
October 26,2010
Page 2
RE: Approval of Extension of Library Advisory Commissioner Mark Hoose's Term to
January 31, 2014 and Waiver of Appointment Process Set Forth in Palo Alto
Municipal Code Section 2.24.030
Commission appointments are staggered, and new three-year !erms for four of the seven
LAC positions, including the position now filled by Mr. Hoose, are scheduled to begin in 2011.
When Mr. Hoose was appointed at the October 18,2010 meeting, Council Members noted that
the Library Advisory Commission vacancy which Mr. Hoose was selected to fill expires in just
three months, on January 31, 2011. The Council ex:pressed a desire to avoid redundancy in
interviewing Mr. Hoose again for the same position in such a short time period,and asked staff
to return with an agenda item to extend his term.
Therefore, staff recommends that the Council approve a waiver of the commissioner
appointment process set forth in PAMC section 2.24.020 and extend Mr. Hoose's LAC
commissioner term to January 31, 2014 so .that it runs concurrent with the other LAC terms
scheduled to begin in 20 11 ..
Respectfully submitted,
~" ;:J'-.-~-~
GaBAUM
City Attorney
GMB:sh
cc: James Keene, City Manager
Pamela W. Antil, Assistant City Manager
Steve Emslie, Deputy City Manager
Donna Grider, City Clerk
101026 s&0111554
L/ll1di.nbJurnr
MELISSA C. TRONQUET
Sr. Deputy City Attorney
-,
CITIES ASSOCIATION
TO: MEMBER JURISDICTIONS
FROM: RAANIA MOHSEN, EXECUTIVE DIRECTOR
SUBJECT: CITIES ASSOCIATION BYLAWS AMENDMENTS FOR APPROVAL
DATE: 10/22/2010
CC: BYLAWS REVIEW COMMITTEE CAL PINHEIRO, DAVID CASAS, DON PERRY, STEVE TATE)
JOLIE HOUSTON, ATTORNEY, BERLINER
The Bylaws Review Committee has made amendments/suggested revisions to the Cities Association
Bylaws. These recommendations are based on initial recommendations presented at the June Board
Meeting and feedback received thereafter from Board Members since that presentation. The
revisions have been thoroughly reviewed by Jolie Houston, Attorney and retained counsel by the
Cities Association, to ensure compliance with state and federal laws. On October 14, 2010, the
Board approved the Bylaws as amended and agreed to forward the revisions to member jurisdictions
for approval. Thus, on behalf of the Board, I am requesting review and approval of the Bylaws as
amended from all Member Jurisdictions.
To summarize, the suggested amendments include:
a) language revisions;
b) correction of facts;
c) name change of the "Santa Clara County Cities Association" to the "Cities Association of
Santa Clara County;"
d) updates to reflect current adopted policies and government code, e.g. The Brown Act; and
e) addition of an ex-officio member to the Board of Directors from the SCC Board of
Supervisors.
For a better understanding of the recommended changes and context, please refer to the "red-lined"
bylaws attached to this memo and the amendments/revised items listed below.
1. Delete Preamble.
2. Article I, Section 1. Change name of the organization from "Santa Clara County Cities
Association" to the "Cities Association of Santa Clara County." This name change has been
suggested to resolve common confusion of the Cities Association being a "county"
organization.
3. Article I, Section 1. Removal of all language associating the Cities Association as a "Section"
of the League of California Cities Peninsula Division. According to the LCC and its bylaws,
the Cities Association is not a section of the League. If it were true, then the Cities
16. Article VI, Section 2, (a). Update.of the Santa Clara C.ounty/City Managers' Associati.on
correct name.
17. Article VI, Section 3, (b). Revise Other Committees fonned by the President with approval
of the Board to include .only elected individuals of any member City.
18. Article VI, Secti.on 4. Add Secti.on 4. Amend secti.on t.o include qu.orum requirements f.or
the City Selecti.on C.ommittee. [Note fr.om Att.orney: 1) Government Code 50272 states
that it is a maj.ority .of the number of cities within a c.ounty entided t.o representation on the
CSC. There are 15 cities in SCC, thus a maj.ority would be 8.]
19. Article VII, Section 2. Update.of Dues p.olicies to current practices and policies voted on by
the Board.
20. Article VII, Secti.on 3. Update.of Funds p.olicies t.o reflect current practices and adopted
policies v.oted on by the B.oard.
21. Article VII, Section 4. Update of Acc.ounting p.olicies to reflect current practices and
adopted p.olicies v.oted .on by the Board.
22. Delete n.otes to the bylaws fr.om f.onner member Barbara Nesbet.
The B.oard of Directors request that Member Jurisdictions review the Bylaws revisi.ons for appr.oval
by December 2010. Thus, it would be appreciated if y.ou can place this as an item on y.our agenda at
a future Council Meeting in N.ovember. If y.ou w.ould like.me .or members .of the Bylaws Review
Subc.ommittee to attend this meeting, please let me kn.ow in advance.
If y.ou have any questions, please feel free to contact me at any time.
Thank you for your support,
Raania Mohsen
Executive Direct.or
Santa Clara County Cities Ass.ociati.on
505 West Olive Avenue, Suite 749
Sunnyvale, CA 94086
(408) 730-7770
(408) 398-3025 cdl
raania.m.ohsen@sccca.gPY ..
3
a. To review, study, develop consensus positions, and recommend on issues of interest
to Santa Clara County cities;
b. To develop a common agenda for Santa Clara County cities;
c. To serve as a unified voice for Santa Clara County cities in relationship to other
agencies, organizations, and levels of government, including the Peninsula Division
of the League of California Cities;
d. To serve as the City Selection Committee pursuant to Government Code section
50270 et seq. and make appointments to regional and local bodies as provided by
law;
e. To assist in development of state-wide legislative policy through the structure of the
League of California Cities;
f. To serve as a source of education, information and networking for officials from all
cities in Santa Clara County;
g. To provide a forum for non-city individuals, groups and organizations and the
private sector to address items of interest to Santa Clara County cities.
Section 4. Powers. The AssociationSection may exercise any lawful power in the
furtherance of its purposes as determined by the Board of Directors except that it may not incur
any liability binding upon its members nor levy any assessment against its members other than
the normal dues established under Article VII of these Bylaws.
ARTICLE II
MEMBERSHIP
Section 1. Membership. Each City in Santa Clara County which is a member of the
League of California Cities and which has paid in full the Section dues required under Article vn
of these Bylaws shall be a member of the AssociationSeetion.
/
Section 2. Suspension. Any City which is delinquent in payment of its dues shall
automatically be deemed suspended from membership sixty (60) days after the date on which
payment is due if the full payment has not been received, and it shall be the duty of the
SecretarylTreasurer to promptly notify the City of its delinquency. A suspended member City
shall not be permitted to participate in any AssociationSeetion proceedings-,-exeept the City
8eleetion Committee representation. A suspended member City shall be restored to full
membership upon its payment of the total dues assessment then due and payable in accordance
with Article VII, Section 2.
2
ARTICLE III
BOARD OF DIRECTORS
Section 1. Selection and Tenure. The Board of Directors of this Association&etiol1
shall be composed of a representative from each member city, selected, by and from the
legislative body thereof. Each Board member shall hold office at the pleasure of his or her City's
legislative body, and selection shall be made in such manner as the respective legislative bodies
of member Cities may themselves determine.
Section 2. Alternates. The legislative body of a member City may, in its discretion,
select from among its members an alternate to represent that City on the Board of Directors and
vote in the absence of the member from that City.
Section 3. Notice of Appointment. The legislative body of each member City shall,
immediately upon the selection of one of its members as a member of Board of Directors, or as
alternate, advise the AssociationSeetion Secretary/Treasurer of such appointment.
Section 4. Ex Officio Members. The (;ity Mafiagers' CommitteeSanta Clara County!
Cities Managers' Association. an advisory committee *to the AssociationSectioo according to
the provisions of Article VI. Section led), and the Santa Clara County Board of Supervisors may
each appoint one of its members to serve as an ex officio member of the Board of Directors. The
ex officio member may participate in deliberations but shall not participate in voting or in any of
the privileges of membership, and shall not be counted for the purpose of determining whether a
quorum of the Board is present.
Section 5. Compensation. No member of the Board of Directors, including officers,
shall receive any compensation from the AssociationSeetion for his or her services as a member
of the Board. No member of the Board, including officers, shall be entitled to reimbursement
from the AssociationSeetion for expenses incurred on AssociationSeetion business unless such
reimbursement shall be authorized in advance by the Board of Directors, or unless such
reimbursement is authorized and distributed by the member's respective city.
Section 6. Duties. It is the responsibility of the members of the Board to report to and
solicit comments from their fellow City Council members on major issues and to keep their City
Councils informed on the business of the Section.
ARTICLE IV
OFFICERS
I Section 1. Officers Designated. The following officers of this AssociatiollSeetioo shall
,be elected by the Board of Directors: President, First Vice President, Second Vice President and
Secretary/Treasurer. Officers shall be selected from Council Members and Mayors of Member .
Cities.
3
Section 2. Term of Office.
a. The regular term of office for all officers shall commence upon election and shall
be for a period of one (1) year. No person shall hold the same office for more than
two (2) consecutive full terms.
b. Election of officers shall take place at the first meeting of the Board of Directors
and annually thereafter at the regular meeting of the Board of Directors in
November.
c. In the event a vacancy occurs during any officer's term of office, the Board of
Directors shall determine whether to flll the unexpired portion of the term at a regu-
lar or a special meeting. If such a determination is made, the then presiding officer
shall appoint a nominating committee consisting of three (3) Board members which
shall present its recommendations for filling the vacancy to the Board of Directors
at the earliest practicable time and in accordance with the notice provisions set forth
in Article V,Section 2. A person who is appointed to flll the unexpired portion of
the term is not rendered ineligible to hold the same office in accordance with the
provisions of Article IV, Section 2(a).
Section 3. Duties.
a President. It shall be the duty of the President to preside at the meetings of the
Board of Directors and to perform such other duties as ordinarily pertains to the
office of President of like types of organizations.
b. Vice Presidents. It shall be the duty of the First and Second Vice Presidents, in that
order, to act in the place and stead of the President during the President's absence or
inability to act.
c. Secretary/Treasurer. The Secretary/Treasurer shall review all financial accounts
and records to determine that they are in accordance with these Bylaws and the
directions of the Board of Directors. The Secretary/Treasurer shall see that minutes
of all Board and Committee meetings are recorded, notice of meetings of the Board
are posted, and that all receipts and disbursal of funds by the AssociationSootien are
done in accordance with these Bylaws and the direction of the Board of Directors.
The day-to-day operation of the office of Secretary/Treasurer may be delegated to
an Executive Director for the Association8eetioH, which position shall be
nonvoting.
Section 4. Executive Director. The Board of Directors may appein-t-hire an Executive
Director who shall hold office until he or she resigns or is removed by the Board of Directors.
The Executive Director shall have such duties as may be determined by the Board of Directors.
Section 5. Nominating Committee. A nominating committee consisting of three (3)
Board members shall be appointed by the President no later than two (2) meetings before the
meeting at which officers for the following year will be elected. At the meeting immediately
preceding the meeting for the election of officers, this committee shall present its nominations
4
for officers for the following year. Additional nominations may be made from the floor at the
meeting where the election is to be conducted, providing the consent of the nominee has been
secured.
ARTICLE V
MEETINGS
Section 1. Schedule and Locations. Regular meetings of the Board of Directors shall be
held, at a minimum, every other month at a time and location determined by the Board ofDirec-
tors. The Board of Directors shall schedule periodic meetings of the general membership, to
include all members of legislative bodies of member Cities.
Section 2. Notice and Meetings. The Association is a legislative body for purposes of
the Brown Act (Govt. Code 54950 et seq). Notice of the time and place of all regular meetings
shall be given in writing by the Secretary/Treasurer or a designee to all members of the Board at
least -fWe...three (3) days prior to the meeting. Such notices shall-may be sent by United States
mail, postage prepaid, or by electronic mail, or by the Internet, which shall be determined to be
personally delivered. Notice of special meetings shall be given by the Secretary/Treasurer or a
designee to all Board members at least one (1) day in advance and in the manner required by
Government Code section 54956. The Secretary/Treasurer or designee shall be responsible for
preparing and posting agendas of Board meetings three (3) days prior to the meeting and in
compliance with Government Code section 54954.2.
Section 3. Quorum. A majority ofthe members ofthe Board of Directors shall
constitute a quorum to do business at any such regular or special meeting. ~ purposes o:f..a-
quorum and all matters r-equiring a vote of the Board of Directors, t~~e
as-his or her City's representative-of-desigl~ his or her City!s-attending altemate to serve as t~
GitJ,c!s-representative.
Section 4. Voting. The affirmative vote of a majority of the members of the Board of
Directors present shall be necessary for the Board of Directors to take action. pac!! member of
the Association shall have one vote.
Section 5. Rules of Order. Subject to the provisions of these By-Laws, the meetings of
the Board of Directors shall be governed by Robert's Rules of Order, Newly Revised.
ARTICLE VI
COMMITTEES
Section 1. Standing Committees.
-a. Executive Board. The Executive Board shall act to accomplish, administer and-
facilitate the goals and the purposes of the AssociationSec-tioo at the direction of the
5
committee to the AssociationSeeaaB:. Th~ City Managers' Co~Santa Clara
County/City Managers' Association may choose an ex officio representative to the Board
of Directors.
Section 32. Other Committees Authorized.
a. A nominating committee will be appointed as required and in accordance with the
provisions of Article IV.
b. The President, with the consent and approval of the Board of Directors, may
appoint such committees as may be necessary from time to time, and designate the
chair and the purpose of each such committee. Any officer or employeeelected
individual of any member City shall be eligible to serve upon any such committee.
Section 4;. Quorum. The quorum for each committee except the City Selection
Committee shall be determined by the Board at such time as the committee is created. A quorum
for the City Selection Committee shall be eight (8) members. The majority vote for the City
Selection Committee (8) is required to appoint representatives to boards, commissions, or
agencies. Whenever a quorum is not present, the meeting shall be adiourned or postponed to a
subsequent time and place as determined by the Chair.
ARTICLE VII
FINANCES
Section 1. Budget. On or before April 15 of each calendar year, the Board of Directors
shall approve a preliminary budget for the AssociationSootiaB for the fiscal year commencing
with July 1 of the same calendar year. The Board of Directors shall adopt a final budget no later
than June 15 of each year. A copy of the preliminary budget when approved and a copy of the
fInal budget when adopted shall be transmitted to each member City.
Section 2. Dues. Each member City shall pay to this Association8ection annual dues
in accordance with a dues schedule adopted by the Board of Directors on or before June I of each
year. Dues shall be for the fiscal year commencing July 1 and shall be an ~amount for each
member City based upon the approved budget. The full amount shall be due and payable before
July 1 of each year. Any City becoming a member of this Association8ection during a fiscal year
shall pay the full dues for that year prior to exercising any rights of membership. The dues
schedule shall be revised every three (3) to four (4) years.
Section 3. Funds. All funds received by the AssociationSeea-on from the membership
or any other source shall be deposited in a financial institution or institutions determined by the
SecretarylTreasurer and disbursed only by check signed by any ~~-persons
designated by the Board of Directors as signers on the account including the Executive Director,
the SecretarylTreasurer and the President. There shall be a Reserve of funds to cover six (6) to
nine (9) months of operating expenses to ensure financial stability of the Association. The dues
schedule shall be revised as such.
Section 4. Accounting. Every two (2) to three (3) years. an audit of the Association's
7
finances shall be completed and copies thereof shall be filed with the Board of Directors.
Annually, a complete written account of all receipts and disbursements during the previous year,
showing the opening and closing balances shall be prepared by the Secretary/Treasurer or a
designee. Copies thereof shall be filed with the Board of Directors7 Monthly, bank and
reconciliation statements shall be reviewed by the SecretalyiTreasurer and initialized as such.
Monthly reQorts of accounting and investments shall be prepared and filed with the Board o(
Directors by the Secreta.ry/Treasurer or a designee.
ARTICLE VIII
ADOPTION AND AMENDMENTS
Section 1. Adoption. These Bylaws shall become effective upon the affirmative vote of
the legislative bodies of two-thirds of the cities in Santa Clara County.
Section 2. Amendments. These Bylaws may be amended only in the following manner:
Proposed amendments shall be submitted in writing to the Board of Directors for approval, and if
approved, shall thereafter be submitted in writing to each member City of the Association8ee-i:ie:a
at least thirty (30) days before action thereon is required by the membership. An affirmative vote
of two-thirds of the legislative bodies of the member Cities shall be required for approvaL
8
Barbara Nesbet, 1.vlID 'voiced the initial concern about identifying a staff member to serve on the
Legislati-:e Task Foree, suggested the follovling wording.
The membership of the Legislative Task Foree Committee shall consist of one representative
from each City in the County. The representatP;e shall be a City C01:H.'leil Member or the Mayor.
Eaeh City shall also appoint an alternate to serve on the Committee in the absence of the
representative. The alternate may be a City Council J\4ember or the mayor or 'an appointed staff
person. Each City, represented by either the representatPv"8or the alternate, shall have one "{dOO.
9
TO: HONORABLE CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT: UTILITIES
DATE: NOVEMBER 1, 2010 CMR: 394:10
REPORT TYPE: ACTION
SUBJECT: Authorize the City Manager to Decline a New Power Purchase
Agreement Offer from Ameresco Butte County LLC that Could
Otherwise Partially Replace the Recently Terminated Ameresco Butte
County LLC Power Purchase Agreement
RECOMMENDATION
Staff requests that the Council authorize the City Manager to decline Ameresco Butte County
LLC’s October 5, 2010 offer to draft and execute a power purchase agreement (PPA) similar to
the terms Ameresco negotiated with Alameda Municipal Power.
EXECUTIVE SUMMARY
On September 15, 2010, Ameresco Butte County LLC (Ameresco) sent the City written notice of
termination of the power purchase agreement (PPA) between Ameresco, as seller, and the City of
Palo Alto, as buyer. Citing lower than expected landfill gas availability, resulting in a 50%
reduction in project capacity, and increased interconnection costs with Pacific Gas and Electric
Company, Ameresco terminated the PPA in accordance with a clause in the PPA, which permits
Ameresco to terminate the PPA if Ameresco does not obtain the necessary permitting and
interconnection agreements on a basis reasonably satisfactory to Ameresco. For a five-year
period after the termination date, the City continues to enjoy the right of first refusal to acquire
output from projects to be built at the site if the City exercises that right within 60 days of a
written offer of terms negotiated with third parties.
A new offer, provided by Ameresco on October 5, 2010, for a one-half share of the Butte County
facility output under new terms and conditions is not adequately attractive for staff to
recommend going against Council’s direction to complete certain long term planning work
before recommending new PPAs for approval. Staff recommends Ameresco’s current offer be
declined in order to facilitate completion of contracting efforts between Ameresco and Alameda,
its other contracting partner. Palo Alto’s five-year right of first refusal continues to survive this
recommended action.
BACKGROUND
Palo Alto has seven power purchase agreements with Ameresco for landfill gas (LFG) renewable
power supply. Three are with Palo Alto alone and are in early permitting stages. Four others
CMR: 394:10 Page 1 of 7
have Palo Alto alongside Alameda each receiving half of the output. Three of those four projects
are already constructed, operating and delivering. However, the fourth one at Butte County’s
Paradise landfill is in permitting stages and experiencing a shortage of LFG.
Butte County PPA Approval
On November 10, 2008, the Council approved Resolution No. 8885 (CMR:437:08) and approved
entering into a PPA with Ameresco for delivery of renewable energy from a landfill-gas-to-
energy (LFGTE) project. Resolution No. 8885 delegated to the City Manager, or his designee,
authority to enter into a PPA with a term of twenty years for a 50 percent or higher share of the
energy generated from a four megawatt (MW) plant for a total cost not to exceed $71 million
over the life of the PPA.
On November 13, 2008, the City executed a PPA with Ameresco for 1.88 MW, or roughly 1.6%
of the City’s load, from the output of a new LFGTE plant that would be built by Ameresco at the
Butte County Landfill in Paradise, California. The City of Alameda executed a similar PPA with
Ameresco so that, under the PPAs, the Cities of Palo Alto and Alameda would have each
received one-half of the output from the project. The first-year price was $87 per megawatt hour
(MWh) with subsequent 1.5% increases per year for the 20-year term of the PPA. The expected
commercial operation date (COD) was scheduled to be September 2011. At the contract price
and quantity, the total expenditure for Palo Alto under the full size PPA would have been
approximately $33.2 million.
Ameresco Discovers Less Than Expected Amount of Gas Available
Butte County overestimated the amount of Landfill Gas (LFG) being generated at its Paradise
landfill when it issued a request for proposals for a developer to design and install both an LFG
collection system and an LFG-fired power plant. Ameresco was awarded a contract by Butte
County to design and install a LFG collection system and to build and operate a LFG power
plant. Ameresco has successfully installed and operated the collection system that safely
collects, measures and flares the LFG in compliance with California regulations. In the process,
Ameresco has determined the LFG production volume is not enough for a two-engine plant as
originally planned, but is only enough for a single engine plant. The low gas flow and loss of
economies of scale have put the project under considerable financial stress.
Ameresco Proposes Modifications to the PPA
On August 4, 2010, Ameresco officially notified the Cities of Palo Alto and Alameda that, due to
events beyond Ameresco’s control, the Butte County landfill gas project was uneconomic and
could not move forward without certain modifications to the PPA. The issues that Ameresco
cited in this notification included lower than expected landfill gas availability resulting in a 50%
reduction in project capacity; increased interconnection costs with Pacific Gas and Electric
Company (PG&E); and increased operating cost due to project delays. The primary issue is that
the amount of landfill gas being generated at the site is expected to be sufficient for only one
generator, rather than the two generators that Ameresco anticipated when originally proposing
the project.
By early September Ameresco ultimately requested to modify the PPA to:
1. Reduce supply quantity by 50% to 0.94 MW (approximately 8,200 MWh per year); and
CMR: 394:10 Page 2 of 7
2. Collect a one-time payment from Palo Alto of $537,500 invoiced only after the plant is
commercially operating to partially reimburse Ameresco for the higher cost for
interconnection with PG&E.
Ameresco Issues Notice of Termination
On September 15, 2010, Ameresco gave the City notice, terminating the PPA in accordance with
section 4.3(j) of the PPA. Under that section, Ameresco has the right to terminate the PPA if it
has not received permitting and interconnection cost estimates on a basis reasonably satisfactory
to Ameresco.
Even after the termination, the City’s right of first refusal to acquire the plant output subject to
whatever contract is negotiated by Ameresco and another buyer (such as Alameda) survives the
termination of the PPA. On October 5, 2010 Ameresco provided a written offer to the City for
its one-half share of the Butte facility output under new terms and conditions negotiated with
Alameda, who is willing to take both halves of the output if Palo Alto declines the offer or does
not act before the December 5, 2010 end of the 60 day right of first refusal period. The terms of
the offer are as follows:
Project size cut in half to between 1.75 MW and 2.75 MW.
Term shortened to 15 years with the City having a right to extend for an additional 5
years followed by the City having a second right to extend for a second five-year (out to a
total of 25 years) with the final five years being dependent on Ameresco determining in
its sole opinion that it has secured a satisfactory landfill gas supply contract for years 21-
25.
Price of Output to start as $87/MWh and to escalate at 1.5% per year.
Buyer to pay Ameresco a one-time payment of $537,500 for each half of the project
output with the payment invoiced soon after the plant achieves commercial operation.
During the sixty-day period, the City would be expected to enter into good faith negotiations in
regard to a new PPA, which substantially incorporates the terms of the offer.
Over the 20-year energy delivery term under the new PPA the cost would be $16.9 million. The
one-time cost reimbursement increases the levelized $/MWh cost of the project by about 4.8% to
a levelized cost of about $103/MWh.
DISCUSSION
Renewable Portfolio Standard
Palo Alto’s current Renewable Portfolio Standard (RPS) goal, which was adopted by Council in
March 2007 as part of the Long-term Electric Acquisition Plan (LEAP) Guidelines (CMR:
158:07), is to provide 33% of the City’s electric load from renewable energy resources by 2015.
For calendar year 2010, the City is expected to achieve an RPS of about 19% from five PPAs
with wind and LFGTE projects. The City has also executed four additional PPAs with Ameresco
LFGTE projects that have not yet begun operations. The PPA with Ameresco Butte County LLC
is one of those projects. The resources for all nine existing PPAs are shown in Table 1 below,
including the Butte County project with the modified (lower) estimated annual energy output.
CMR: 394:10 Page 3 of 7
Table 1 – Existing Renewable Energy Contracts
Technology
Date Contract
Executed
Actual or
Estimated
Online Date
Annual
Energy
(GWh)
High Winds Wind Nov. 2004 Dec. 2004 51.8
Shiloh Wind Oct. 2005 June 2006 74.4
Santa Cruz Landfill Gas Nov. 2004 Feb. 2006 11.2
Half Moon Bay Landfill Gas Jan. 2005 Apr. 2009 40.8
Keller Canyon Landfill Gas Aug. 2005 Aug. 2009 11.8
Subtotal – Operating 190.0
Butte County Landfill Gas Nov. 2008 Sep. 2011 8.1
Johnson Canyon Landfill Gas Aug. 2009 Dec. 2011 11.2
San Joaquin Landfill Gas May 2010 2013 32.0
Crazy Horse Landfill Gas May 2010 2013 32.0
Subtotal – Under Construction (including Butte) 83.3
Subtotal – Under Construction and Still Active (less Butte) 75.2
Total – All Executed and Still Active Contracts (less Butte) 265.2
Figure 1 below illustrates the existing renewable energy resources in the portfolio (including the
terminated Butte County PPA at the reduced project size). Actual resources are shown for 2005
through 2009. Projected resources are shown for the period after 2009.
Figure 1 – Palo Alto’s Renewable Resources
0
50
100
150
200
250
300
350
40020032005200720092011201320152017201920212023202520272029203120332035Calendar Year
GW
h
/
y
r
Butte CountyLFG
Crazy HorseLFG
San Joaquin
LFG
Short-term
Renewables
Johnson
Canyon LFG
Keller Canyon
LFG
Half Moon BayLFG
Santa CruzLFG
Shiloh Wind
High Winds
RPS Goal:
33% (2015)
RPS Goal:
30% (2012)
RPS Goal:
20% (2008)
CMR: 394:10 Page 4 of 7
If all of the projects in permitting stages are built to the expected sizes and the size of the Butte
County project is reduced by one-half, the City’s RPS would be about 27.1% by 2015. The
termination of the PPA leaves the RPS commitments at about 26.3% in 2015.
The price of the new PPA levelized over 20 years would be about $103/MWh, which is slightly
below the $104-$108 and $104-$118 levelized cost ranges of the two most recent PPAs that were
narrowly approved by Council last spring, at Crazy Horse Canyon and San Joaquin landfills
respectively.
Table 2 below shows the amount of the green premium that has been used up with the existing
nine PPAs. As shown, the contracts that were executed in 2004 and 2005 were priced very near
the brown energy market price. The last four contracts, including the Butte County PPA, were
priced significantly higher than the brown energy market price.
Because the price of brown power has decreased substantially since the Butte County PPA was
executed in 2008, the green premium for the project would be recalculated if the new PPA were
accepted. The updated brown power price and green premium are shown in Table 2 below for
the modified PPA terms.
Table 2 – Green Premium for Existing Renewable Energy Contracts
Date
Contract
Executed
Annual
Energy
(GWh)
Levelized
Project Cost
($/MWh)
Adjusted *
Brown Market
Cost ($/MWh)
Green
Premium
($/MWh)
Green
Premium
($1000/yr)
High Winds Nov. 2004 51.8 57.60 55.0 2.56 132
Shiloh Wind Oct. 2005 74.4 62.95 69.5 (6.50) (484)
Santa Cruz LFG Nov. 2004 11.2 62.32 59.3 2.97 33
Half Moon Bay LFG Jan. 2005 40.8 58.97 67.5 (8.55) (349)
Keller Canyon LFG Aug. 2005 11.8 70.88 83.9 (13.00) (154)
Terminated
Butte County LFG Nov. 2008 16.5 98.66 76.6 22.11 365
Johnson Canyon LFG Aug. 2009 11.2 123.6 67.3 56.35 633
San Joaquin LFG May 2010 32.0 118.10 76.0 42.1 1348
Crazy Horse LFG May 2010 32.0 107.60 69.7 37.9 1213
Total - All Committed Contracts 281.7 2,737
WITH MODIFIED TERMS
Butte County LFG 8.1 103.36 55.5 47.9 388
Total - All Committed Contracts 273.3 2,760
WITH BUTTE TERMINATED
Total - All Committed Contracts 265.2 2,372
* Brown Market Costs are levelized across the project’s contract period, and adjusted for the comparison
project’s delivery shape, local and system capacity value, transmission costs and losses.
Note that the brown market cost does not include any future cost for emissions allowances.
These costs could be imposed starting in 2012, but the cost for these allowances is highly
uncertain at this point. As part of the Climate Protection Plan (CPP) approved by the Council in
December 2007, a greenhouse gas (GHG) adder of $20 per metric ton, beginning in 2008 and
escalating by 5% per year, is to be incorporated in utility purchasing decisions. The $20/ton
CMR: 394:10 Page 5 of 7
GHG adder would add about $10/MWh onto the levelized brown energy market prices shown in
the Table 2. Adding this cost to brown power would reduce the green premium by about
$10/MWh.
UTILITIES ADVISORY COMMISSION DISCUSSION
The matter at hand was brought to the Utilities Advisory Commission (UAC) at its October 6,
2010 meeting as a discussion item agendized before the arrival of Ameresco’s offer of terms for
a new PPA. Staff described the situation as presented in this report. Council Member Scharff
recommended staff once more have the City Attorney’s office review the City’s rights under the
terminated PPA to clarify what period of time was available to the City for making its decision to
accept or decline the offer of newly negotiated terms. The finding upon additional review is that
the City has 60 days after each written offer of terms provided by Ameresco to accept the terms
and initiate good faith negotiations on a commensurate PPA. For any output from additional
landfill gas projects offered by Ameresco from the Butte County site during the first 5 years after
the termination of the PPA, Ameresco must make written offers of terms available to Palo Alto
to act upon within 60 days of offer. The UAC discussed the matter and three members suggested
that given the small amount of power remaining and its non-compelling pricing, it seemed
reasonable to let it go. No other commissioners provided an opinion to pursue the new PPA
offer.
RESOURCE IMPACT
The PPA has been terminated by Ameresco and Palo Alto is released from the commitment to
pay for the energy generated by the project. That commitment was expected to cost about $33.2
million over the 20-year term of the PPA. If Palo Alto exercises its right to accept the new PPA
terms, including a reduced project size, then it would cost about $12.3 Million over 15 years or
$16.8 million over the 20-years or 21.7 million over a 25-year term of the PPA. If Palo Alto
declines to act on the new PPA offer, Palo Alto could replace it with resources that could cost
more or less than the declined offer depending on available replacement resources in the
marketplace.
POLICY IMPACT
Declining the new PPA complies with Council direction to complete a thorough review of long
term electric resource planning and RPS targets before bringing any new PPAs for Council
approval.
CMR: 394:10 Page 6 of 7
ATTACHMENTS
A. Resolution No. 8885 Resolution of the Council of the City of Palo Alto Approving the
Ameresco Butte County Landfill Gas Renewable Energy Power Purchase Agreement for the
Acquisition of Up to Four Average Megawatts of Energy Over Twenty Years at an Estimated
Cost Not to Exceed $71 Million
B. Ameresco Butte County LLC Notice of Termination of Power Purchase Agreement
C. Ameresco Butte County LLC Notice of offer of new PPA Terms and Conditions
D. Excerpted UAC Minutes of Discussion item at October 6, 2010 UAC meeting
PREPARED BY: TOM KABAT ~
Senior Resource ~inator
APPROVED BY: _·-·~IJCSI __ ~~~~/~. ________ __ 'DEBRAL~D
DEPARTMENT APPROVAL:
VALE O. NG
Di~r ofUtIl es
CITY MANAGER APPROVAL: '---f---'~ ~-t:e:D
t:oVAMES KEENE 17 City Manager
CMR: 394:10 Page 7 of7
ATTACHMENT A
RESOLUTION NO. 8885
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
APPROVING THE AMERESCO BUTTE COUNTY RENEWABLE ENERGY
POWER PURCHASE AGREEMENT FOR THE ACQUISITION OF UP TO
FOUR AVERAGE MEGAWATTS OF ENERGY OVER TWENTY YEARS
AT AN ESTIMATED COST NOT TO EXCEED $71 MILLION
WHEREAS, the City of Palo Alto("City"), a municipal utility and a chartered city is a
member of the Northern California Power Agency (''NCPA'');
WHEREAS, on March 5,.2007, the City approved eight electric portfolio planning and
management guidelines to guide the development and management of the City's long-tenn electricity
acquisition plan; one of the guidelines is to pursue and target levels of new renewable resource energy
purchases equal to thirty percent and thirty three percent of the City's expected energy load by 2012
and 2015, respectively; .
WHEREAS, the City is interested in purchasing power generated by renewable resources for
the benefit of its electric customers;
WHEREAS, by purchasing these sources of renewable energy, the City will ,help reduce the
production of greenhouse gases and assist in reducing volatile organic compound emissions;
WHEREAS, Ameresco Butte County L.L.C. proposal best responds to the City'S and NCPA's
recent requests for proposals;
WHEREAS, executing an agreement with Ameresco Butte County L.L.C. will not fully
satisfy the City's need to acquire renewable energy, which the City could expect to acquire from other
suppliers;
WHEREAS, the City will be initially allocated 50% of the power from the Ameresco project,
amounting to 2.15 megawatts;
WHEREAS, the City's allocation of the Ameresco project may be allowed to increase to
100% under some circumstances;
WHEREAS, Butte County will be the lead agency for the purposes of California
Environmental Quality Act ("CEQA") review of the Ameresco project.
NOW, THEREFORE, the Council of the City of Palo Alto hereby RESOLVE as follows:
SECTION 1. The Council hereby approves the City's execution of the Long Tenn Power
Purchase Agreement (Landfill Gas Power) made between Ameresco Butte County L.L.C., as Seller,
and the City of Palo Alto, as Purchaser. The Term of the contract is twenty (20) years, commencing
on the Commercial Operation Date of the proposed generation facility. Quantity is a fifty percent or
higher share of the four average megawatt plant net output. Spending authority under the contract is
approved up to seventy one million dollars ($71,000,000). The City Manager or his designee is hereby
authorized on behalf of the City to sign the contract with Ameresco Butte County L.L.C.
080924 jb 0013010
I
SECTION 2. With respect to the Council's award of the Long Term Power Purchase
Agreement referred to in Section 1 above, the Council hereby waives the choice of venue and credit
rating terms and conditions requirements of Palo Alto Municipal Code section 2.30.340(c).
SECTION 3. The Council finds that the adoption of this resolution does not constitute a
project under the California Environmental Quality Act and no environmental assessment is required.
INTRODUCED AND PASSED: NOVEMBER 10,2008
AYES: BARTON, BURT, DREKMEIER, ESPINOSA, KISHIMOTO, KLEIN, MORTON, SCHMID,
YEH
NOES:
ABSENTIONS:
ABSENT:
APPROy£D ~ FORM: ~b
City Attorney ==
080924 jb 0073070
Director of A ministrative
Services
D~lities
~2~
ATTACHMENT B
111 Specn Srrect, S'llitc 410
FmminshQm, MA 0'1701
P; 508 661 3200
¥: 508661 7.201
VIA }'ACSIMJLE «650) 319M1646) AND
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
September ·15, 2010
rhe City of Palo Alto
250 Hamilton Avenue, Seventh Floor
. Palo A'to, CA 94301
Attention: City Clerk
Telecopier: (650) 329·2646
ReI Amerellco Butte County LLC -'ferm'natJon olPower pur~ha!ile Agreement
Dear City Clerk:
Reference is mad~ to the Power Purchase Agreement, enwred into November J 0, 2008, by and between The
City of Palo Alto and Amel'esco Butte County LLC (the Power Purohase Agreement. inoluding all
appendices (and as amended to the extent there are any amendments), shaU be refen-ed to herein as the
"Power Purchase Agreement") .. Capitalized tenns lIsed but. not otherwise defined herein have the meanings
given to them in the Powor Purohase Agreement. Pm'suant to Section 4.30) of tbo Power Purohase
Agreement, Seller bereby terminates tbe Power PUl'Cbase Agreement (without liability of eithor Party to the
other),
Sincerely,
By:~~~~~~~~b"
Mic e1 T. aakas
cc:
Senior Vice President
. The City of Palo Alto, 250 Hamilton Avenue, Eighth Floor, Palo AllOt CA 94301. Attention: Senior
Assistant City Attomey / UtiJilil;lS, Telecoplel': (uSO) 329·2646 (via facsimile and via certified man, .
return receipt requested) .
Tho City of Palo A1to, 250 Hamilton Avenue, Third Floor, Palo Alto, CA 94301, Attentiol1! Director
of Utilities, Tolecopier: (650) 321 N 0651 (via facsimile and via-certified mail. return j'eooipt
requested)
Northern California Power Agenoy, 651 Commerce Drive, Roseville, CA 95678, Attention: Powel'
Contraots Administratot~ Teleoopier: (916) 181·4255 (via facsimile and via certified mail, return
receipt requeste~) .
/
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09/15/2010 WED 11:22 [TX/RX NO 8925] 1al002
111 Spcen Street, Suite 410
Framingham, MA 0'1701
P: 508661 2200
F: 508 661 2201
amercsco.com
VIA FACSIMILE «650) 329-2646) AND
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
October 5, 2010
The City of Palo Alto
250 Hamilton A venue~ Seventh Floor
Palo Alto, CA 94301
Attention: City Clerk
. Telecopier: (650) 329-2646
Dear City Clerk:
Re: Ameresco Butte County LLC
! .-••
ATTACHMENT C
OCT 1'2 2010
Reference is m~de to the previous Power Purchase Agreement; entered into 'November to, 2008, by and
between The City of Palo Alto and Ameresco Butte County LLC, which was terminated (the terminated Power
Purchase Agreement, including all appendices (and as ari:'lended to the extent there were any amendments),
shall be referred to herein as the "Power Purchase Agreement"). Capitalized terms used but not otherwise
defined herein have the meanings given to them in the Power Purchase Agreement. Seller provided Buyer
with written notice, dated September 15, 2010, terniinating the Power Purchase Agreement. Buyer has
declined to adjust equitably the price that was payable under the Power Purchase Agreement and has also not
provided Ameresco with written notice that Buyer is agreeing to pay any amount or adjust any price or
payment in connection with the Power Purchase Agreement. Pursuant to Section 2.5 and the last three
sentences in Section 4.30) of the Power Purchase Agreement, Seller hereby offers to sell to Buyer the
percentage Share of the Output from the Plant pursuant to a new power purchase agreement under similar
terms and conditions as contained in the Power Purchase Agreement with the following general principal
. changes to the terms and conditionS of the Power Purchase Agreement.
1. Initial Capacity (which is defined in Article I of the Power Purchase Agreement) shan mean the
installed gross capacity of the Plant on the Commercial Operation Date, such capacity to be not less .
than 2.0,MW and not more than 3.0 MW (gross nameplate); 'and ~ot less than 1.75 MWand not more
than 2.75 MW (net at the Point ofInterconnection).
2. SeCtion 2.1 of the Power Purchase Agr~ment would be changed (in the potential ~ew power purchase
:agreement) substantially as, follows in this' item numb~r 2. The term of the potential newpower
purchase agreement shall be effective upon execution by authorized representatives of both Parties and,
unless earlier terminated pursuant to an express lrovision ofth~ potential new pow~ purchase . .
. agreeI11ent, 'shall continue. Until the fifteenth (15 ) anniversary' of the CommerCial Operation Date.
Buyer shall have the option (subject to the terms and conditions of the potential new power purchase
agreement) to extend the original Term for two additional periods of five (5) years each (the first such
. 0
I 11rlntcd em le.;\ tkd m.lIl'ft.tl
The City of Palo Alto
October 5,2010
Page 2
five (5) year extension would commence on the fifteenth (15th) anniversary of the 'Commercial
Operation Date and the second such five (5) year extension would commence on the twentieth (20th)
anniversary ofthe Commercial Operation Date) unles~ the potential new power purchase agreement is
earlier terminated (during the original Term or during any extension of the original Term) pursuant to
an express provision of the new power purchase a~ement; provided, however, (i) such option to
extend the original Term for the first additional period of five (5) years (commencing on the fifteenth
(15th) anniversary of the Commercial Operation Date) shall be subject to Buyer receivillgJlpproval of
the City Council of The City of Palo Alto (and any other required governing body of Buyer); and (ii)
'such option to extend the Term for the second additional period of five (5) years (commencing on the'
. twentieth (20th) anniversary of the Commercial Operation Date) 'shall be subject to (a) Buyer previously
appropriately exercising its option to extend the original Term for the frrst additional period of five (5)
years (commencing on the fifteenth (l5th) anniversary of the Commercial Operation Date), (b) Seller
entering into an agreement with the Landfill owner that allows Seller to (among other things) use the
Landfill Gas for the Plant (and maintain the Plant on the site).on terms and conditions satisfactory to .
Seller in Seller's sole discretion; and (c) Buyer receiving approval ofthe City Council of The City of
Palo Alto (and any other required governing body of Buyer). In order for Buyer to exercise its option
to extend the original Term for the f)fst additi9nal period of five (5) years (commencing on the fifteenth
(15th) anniversary of the Commercial Operation Date), Buyer,shall provide Seller with written notice at
least one (1) year prior to the fifteenth (15th).anniversary of the Commercial Operation Date that Buyer
is electing to extend the original Term for such additional period of five (5) years 'and that Buyer has
. received appropriate approval for such extension from the City Council of the City Of Palo Alto (and
any other required governing body of Buyer). In order for Buyer to exercise its option to extend the
Term for the second additional period of five (5) years (commencing on the twentieth (20th) anniversary
of the Commercial Operation Date), Buyer shall provide Seller with written notice at least .one (1) year
prior to the twentieth (20th) anniversary of the Commercial Operation Date (but not prior to the .
commencement of the first five (5) year extension)that Buyer is electing to extend the Tetm for such
additional period of five (5) yeili's and that Buyer has received appropriate approval for such extension
from the City Council of the City of Palo Alto (and any other required governing body of Buyer).
Notwithstanding anything to the contrary, (i) if Buyer does not exercise its option to extend the original
Term for the first additional five (5) year period by written notice to Seller at least one (l)year prior to
the fifteenth (15th) anniversary of the Commercial Operati<;m Date and as otherwise set forth above;
then any and all options or rights of Buyer to extend the original Term shall expire and be terminated,
and (ii) if Buyer does appropriately exercise its option to extend the original Term for the first
additional five (5) year period, but (a) Buyer does not exercise its option to extend the Term for the
second additional five (5) year period by written notice to Seller at least one (1) year prior to the
twentieth (20th) anniversary of the Commercial Operation Date (but not prior to the commencement of
the first five (5) year extension), or (b) Seller provides Buyer written notice (at any time) that Seller is
not able to enter into an· agreement with the Landfill owner that allows Seller to (among other things)
use the Landfill Gas for the Plant (and maintain the Plant on the site) on terms and conditions
satisfactory to Seller in Seller's sole discretion, then such option of Buyer to elect to extend the Term
for such, second additional five (5) year period shall expire and be terminated.
The City of Palo Alto
October 5, 2010
PageS
3. Seller shall apply for pre-certification from the California Energy Commission ("CEC") that the Plant
meets the requirements of anEligible Renewable Energy Resource ("ERR") for purposes of RPS
Legislation (where RPS Legislation is defined as the State of California Renewable Portfolio Standard
Program, as codified at California Public Utilities Code Section399.11 et seq. or any successor to this
legislation) and use commercially reasonable efforts to ensure that: (i) the Plant is certified by the CEC
to meet the requirements of an ERR for purposes ofRPS Legislation, and (ii) all electrical output
delivered to Buyer from the Plant and paid for is certified by.the CEC as an ERR for purposes of the
RPS Legislation. "Commercially reasonable efforts" as used in this item number 3 shall exclude (i).
making any changes to the Plant or any Expansion Plant or the method of operation thereof and (ii)
expenditure of any funds other than nominal filing fees .
4. . Seller shall use Western Renewable Energy Generation Information System ("WREGIS") to evidence
the transfer of "WREGIS Certificates" (as defined in WREGIS Operating Rules, which are the rules
describing the operations ofWREGIS, as pUblished by WREGIS and as may be amended from time to
time) from Seller to Buyer in accordance with WREGIS reporting protocols and the terms of the
potential new power purchase agreement. Seller shall register the Plant with WREGIS. After the Plant
is registered with WREGIS, Seller agrees to transfer WREGIS Certificates to Buyer using the Forward
Certificate Transfer method or an equivalent process, as described in WREGIS Operating Rules and as
designated by Buyer. Buyer shall be responsible for providing required fnformation and taking any
action that may be necessary for the registration of the Plant and for transfer ofWREGIS Certificates to
Buyer's WREGIS account. Except as the Parties may otherwise agree in writing, in the event that
WREGIS is not in operation, or WREGIS does not track Seller's transfer ofWREGIS Certificates to .
Buyer, or its designees, on or before the 30th day of each calendar month, Seller shall document the
production and transfer of Environmental Attributes under the potential new power purchase agreement
by delivering to Buyer an attestation for the Environmental Attributes produced by the Plant, in whole
MWh, in the preceding calendar quarter. The form of attestation shall be substantially in the fortn as
set forth in Appendix B to the Power Purchase Agreement. Seller shall be responsible for the WREGIS
expenses associated with registering the Plant, maintaining its account, WREGIS Certificate issuance
fees, and transferring WREGIS Certificates to Buyer. Buyer shall be responsible for the WREGIS
expenses associated with maintaining its account and subsequent transferring or retiring ofWREGIS
Certificates. Seller shall, as instructed by Buyer and at Buyer's cost, dispute data with WREGIS.
Notwithstanding anything to the contrary, if Seller's cost associated with WREGIS in connection with
the potential new power purchase agreement or with compliance with the WREGIS provisions in the
potential new power purchase agreement exceeds $5,000 (eScalating at 1.5% annually) in any calendar
year, Buyer shall reimburse Seller for the excess amount; provided, however, Buyer may designate an
alternate accounting system(s), at no cost to Seller, to evidence that transfer ofRECs if Seller's
WREGIS costs exceed $5,000 (escalating at 1.5% annually) in any calendar year. Buyer shall defend,
indemnify and hold Seller and its officers, directors, employees and agents harmless from and against
all claims, demands, losses, liabilities and expenses (including'reasonable attorneys fees) arising out of
or connected with the interaction with third parties in connection with WREGIS or any alternate
accounting system(s) designated by Buyer. .
The City o/Palo Alto
October 5, 2010
Page 4
5. Section 2.2( d) of the Power Purchase Agreement and the definition of "EA Agency" in Article I of the'
Power Purchase Agreement shall be deleted.
6. The last sentence of SectiQn 3.3 of the Power Purchase Agreement shall be changed such that both
Parties shall maintain all payment records relating to the other Party or the new potential power
purchase agreement for a minimum of four (4) years~ and shall permit the other Party, upon reasonable
.,; notice, to inspect and,audit such records as the requesting Party deems reasonably necessary to protect
, its rights.
7. Buyer shall pay Seller $0.087 per kWh of Energy delivered or tendered to Buyer at the Point of
Interconnection~'which price shall be escalated at a rate of 1.5% (of the then-current price) annually on
the anniversary of(i)ihe first day ofthe first full month following the Commercial Operation Date or
(ii) if the Commercial Operation Date falls on the first day of the month, the Commercial Operation
Date.
8. Notwithstanding anything to· the contrary~ in addition to the Price Buyer shall pay Seller per kWh of
Energy delivered or tendered to Buyer at the Point of Interconnection (and in addition to any other
payments Buyer is (or becomes) obligated to make to Seller), Buyer shall pay Seller a one-time
payment of Five Hundred Thirty-Seven Thousand Five Hundred dollars ($537,500.0'0) within thirty
(30) days after the Commercial Operation Date if Alameda Municipal Power (formerly known as
Alameda Power & Telecom) also agrees to pay Seller a separate one-time payment of Five Hundred
Thirty-Seven Thousand Five Hundred dollars ($537,500.00) within thirty (30) days after the
Commercial Operation Date. if Alameda Municipal Power does not agree to pay such one-time
payment of Five Hundred Thirty-Seven Thousand Five Hundred dollars ($537,500.00), then Buyer
shall pay Seller a one-time payment of One Million Seventy-Five Thousand dollars ($1,075,000.00).
Any such one-time payment from Buyer to Seller (as set forth in this item number 8) is not for emission
offsets.
9. Article IX of the Power Purchase Agreement would be changed to be principally similar to the
following language in this item number 9; The Parties intend that the standard of review for changes to
any rate, charge, classification~ term or condition of the agreement (the potential new power purchase
agreement) at FERC shall be the most stringent standard permissible under applicable law. As to the
Parties, it is understood that the standard is the "Mobile-Sierra public interest" standard of review, as
stated by the United States Supreme Court in Morgan Stanley Capital Group Inc. v. Public Utility
District No.1 o/Snohomish County, Nos. 06-1457, 128 S.Ct. 2733 (2008), and consistent with the
. order of the Supreme Court in NRG Power Marketing, LLC. et al., v. Maine Public Utilities
Commission et al., No. 08-674, 130 S.Ct. 693 (2010) ("NRG Ordef'). As to all other persons it is
intended that the same standard~ to the maximum degree as may be made applicable to other than the
Parties, apply, to the maximum degree permitted under the NRG Order.
In accordance with Section 2.5 and the last three sentences in Section 4.3(j) of the Power Purchase Agreement,
Buyer has sixty (60) days after its receipt of this offer (letter) to accept Seller's offer stated in this letter. If
The City of Palo Alto
October 5, 2010
PageS
Buyer does not accept this offer witQin sixty(60) days after Buyer's receipt of this offer (letter), then this offer
set forth in this letter shall terminate.' . .
Sincerely,
BY:~tA~~~~ __ ~~ __
I ael T. Bakas
cc:
Senior Vice President
The City of Palo Alto, 250 Hamilton Avenue, Eighth Floor, Palo Alto, CA 94301, Attention: Senior
Assistant City Attorney / Utilities, Telecopier: (650) 329M2646 (via facsimile and via certified mail,
return receipt requested)
. .
The City of Palo Alto,250'Hamilton Avenue, Third Floor, Palo Alto, CA 94301, Attention: Director
of Utilities, Telecopier: (650) 321-0651 (via facsimile and via certified mail, return receipt requested)
Northern California Power Agency, 651 Commerce Drive, Roseville, CA 95678, Attention: Power
Contracts Admil)istrator, Telecopier: (916) 7814255 (via facsimile and via certified mail, return
.receipt requested)
I
ATTACHMENT D
EXCERPTED DRAFT MINUTES OF UTILITIES ADVISORY COMMISSION
Meeting of October 6,2010
ITEM 6: DISCUSSION: Ailleresco Butte County Landfill Gas to Energy Contract
Senior Resource Originator, Tom Kabat stated that Ameresco terminated the Ameresco Butte County LLC
(Ameresco) Power Purchase Agreement (PPA) on September 15, 2010 on the basis of not having an
interconnection agreement with PG&E at satisfactory terms under contract section 4.30). That section of
the PPA survives the termination of the PPA by 5 years giving Palo Alto a right of first refusal (ROFR) to
any PPA terms and conditions negotiated with additional parties, such as Alameda Municipal Power
(Alameda). On October 5 (the day before this UAC meeting), Palo Alto received written notice from
Ameresco of the terms and conditions for a PPA it negotiated with Alameda, which started a 60-day ROFR
period during which Palo Alto can accept the terms and conditions for a new PPA. The essential terms and
conditions of the new PPA are:
• Initial Plant Capacity is reduced in half to be between 1.75 MW and 2.75 MW.
• The term is 15 years (instead of the original PPA's term of 20 years) with an option for Palo Alto to
extend the term for an additional 5 years. Ameresco would have a second option to extend the term for
an additional 5 years for a total term of 25 years if Ameresco has a satisfactory gas contract with Butte
County.
• Price is $87/MWh escalating at 1.5% per year (same as the original PPA).
• A one time payment of $537,500 is required shortly after the pant begins commercial operation
(expected in late 2011).
Council Member Scharff asked if the 60-day ROFR period begins with the delivery of energy (around
commercial operation date of late 2011) or with the delivery of the written notice on October 5, 2010. Staff
interprets the 60~day ROFR period to start October 5, 2010. Council Member Scharff requested staff
confer with the City Attorney's office again to determine the extent of Palo Alto's rights under the terminated
PPA.
Commissioner Eglash acknowledged that the project size has decreased to where it would be Palo Alto's
smallest PPA and asked the reasoning behind staff's willingness to let it go. Kabat indIcated that it is under
Council direction to not bring any new PPAs for renewable energy for approval until certain other extensive
planning efforts are completed in the coming months. He also explained that the cost of the new proposed
PPA is not especially attractive with a levelized cost between the levelized costs of the last two Ameresco
PPAs (Crazy Horse and San Joaquin). Director Fong reiterated that the original PPA had been terminated
and this was a new PPA that we would have to take to the Council. Commissioner Melton indicated he
supports staff's recommendation and stated that the deal is not so compelling as to get Council to consider
a new PPA for the project. Commissioners Foster and Cook agreed that the opportunity for a new PPA
should be let go.
Corridor updates
• BART Warm Springs Station tours. Tours were held Tuesday, October 26th and
Thursday, October 28th• The tours offered participants a chance to see at-grade and
trench rail configurations.
• The CHSRA provided a handout on Sound and High Speed Trains at the October TWG
meeting (attached). This document is intended to clarify expectations and considerations
that the CHSRA is using as it addresses issues related to sound.
• Fifteen percent (15%) design engineering. The 15% engineering design package will be
completed with the Project EIRIEIS.
• HSR Station workshops. Redwood City had one preliminary workshop in mid-October
with staff and they are going to have another workshop on November 3rd• Also, there
was a station workshop meeting in Millbrae on October .28. Attached is a letter sent from
Caltrain to Parsons Brinkerhoff regarding ~SR station area development policies.
• Project EIRIEIS. The current schedule is for the Project EIRIEIS to be published at the
end of December 2010. It is then anticipated that the CHSRA will certify the document
at their Board meeting in early January 2011 and give agencies 45 days to respond.
However, PRP staff indicated this schedule may change including having the EIRIEIS
published a month or more later. The public agencies at the TWG meeting uniformly
expressed their opinion that a 45 day comment period is too short and all the agencies
present asked for a minimum of 90 days to respond.
• Supplemental Alternative Analysis Report (SAAR) Addendum. The CHSRA is working
on an addendum to the SAAR released in August 2010 which updates and provides
corrections to the original SAAR document. CHSRA staff expect this addendum to be
published in the next thirty days.
• Visual simulations. The CHSRA is still considering the requests of cities to get visual
simulations of the HSR track options. The City of Palo Alto has requested a visualization
at the Churchill Avenue location.
Additional Items
• Property ValuelEconomic Analysis. The City selected Economic & Planning Systems
(EPS) to complete this work. A contract is expected to be executed in early November
and the work completed in approximately-6g-te-9Uay~s.~--
CMR: 404:10 Page 2 of3
1
Technical Working Group Meeting
Peninsula Rail Program
October 21, 2010
2
TWG Agenda
•Review of TWG and PWG summaries
•Presentation –Draft EIR/EIS Impact Methodology
for Noise and Visual Analyses
•Statewide update
•Corridor update
•Other Business
3
Draft Environmental Impact Report/
Environmental Impact Statement
Methodology for
Noise and Visual Analyses
Rod Jeung, PBS&J
4
Noise
• Follows guidelines of the Federal Railroad
Administration (2005 FRA Guidance Manual)
• Identify affected land uses / receptors
• Measure existing noise conditions
• Estimate impact based on relative increase in noise
exposure
• Classify impact based on relative increase in noise:
•Severe
• Moderate
• No impact
5
Noise Methodology
6
“Typical” Noise Levels with Current
Caltrain Operations (Ldn at 100 feet)*
• Caltrain (no horns): 65 dBA
• Caltrain (no horns) and near aircraft
operations: <76 dBA
• Caltrain (with train horns): 77 dBA
* Ldn is a noise descriptor for a 24-hour noise exposure, taking into account fluctuations throughout the day and
more heavily weighting events between 10pm and 7am to account for greater nighttime sensitivity to noise. This
descriptor is used by FRA to classify impacts to residential uses , hotels, and motels and other land uses that
have nighttime or sleep activities; reflects changes in duration, frequency, and schedule of transit events;
correlates well with the results of attitudinal surveys of residential noise impact; and is commonly used by local
General Plans to define noise/land use compatibility.
7
Increase in Noise Levels (in dBA)
that Result in Different Impacts
8
Numerous Factors affect Noise Impact
• Noise sources/technology
• Operations
• Number of HST, Caltrain, and freight
trains
• Number of trains
during day versus night
• Track profile and train speeds
• Relationship between
noise source and receptor
• Distance between noise source and
receptor
• Intervening structures
• Ground surface
What the EIR/EIS will contain
•Impacts from train operations
•Impacts from stations, maintenance
facility, ancillary facilities, related traffic,
and construction
•Impacts by city with and without
mitigations
•Maps delineating where severe impacts
would occur and mitigation is needed
•Effectiveness of sound walls at reducing
severe impacts
10
11
Aesthetics / Visual Quality
12
Aesthetics & Visual Quality Methodology
•Use of local General Plans to identify visual
resources, scenic corridors, and views
•Use of Federal Highway Administration Visual
Impact Assessment
•Use of computer-generated visual simulations from
key vantage points
• Follows guidelines of the Federal Highway
Administration
13
Methodology continued
14
Visual Setting, Resources, and Character
•Visual surveys, worksheets, and photo-
documentation to rate existing visual resources
and viewers
•Visual typologies identified to establish existing
character
•125 key viewpoints identified to define potential
effects to views
Six Visual Typologies
15
What the EIR/EIS will contain
• Impacts from elements that substantially
degrade or obstruct important scenic views from
public areas
• View blockage from a scenic road or interference
with views of important scenic resources
17
18
What the EIR/EIS will contain
• Impacts from new structures that are more massive
than existing development
• Loss of visual resources, e.g., rows of trees, historic
resources, open space/parks, landmarks
• Impacts from new light and glare sources and
shadows
19
Statewide/Caltrain Update
•ARRA funding
•State budget summary
• Belgian presentation to State Assembly’s Select
Committee on High Speed Rail
20
Corridor Update
•Cities/Counties/Agencies
•Caltrain Update
•Supplemental AA addendum
•Visual simulations
•HST station workshops
•Office Hours recap and next round
•PWG meeting format
•BART tour
21
Other Business
BART Tour: To reserve a spot, please contact:
Morgan Galli at mgalli@hntb.com
Next Meeting:
Thursday, November 18
3:00 –5:00 PM
San Mateo Library, 55 W. Third Ave.
Flexible thinking, reliable results
Assembly Hearing
Assembly Select Committee on High
Speed Rail for California October 6, 2010
High Speed Railway
Lines
Integration
Noise & Vibration
Development
"Information published by TUC RAIL in the present document is general in nature and non-contractual. All rights reserved.”Joseph M. Borremans
210/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Innovative design of viaducts
reducing construction depth
Height visible screen
Railway viaduct
Classic design
Railway viaduct
TUC RAIL design
310/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Noise reduction through innovative
design of the viaduct structure
Reduction of the construction depth + noise barrier
410/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Cut-and-cover tunnels
Advantages of the “Cut-and-Cover” techniques:
-reduce landscape impact by restoring the landscape
above the tunnel construction
-reduce noise
-less expensive solution than a complete bored tunnel
510/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Noise reduction panels
610/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Noise reduction panels of natural material
(e.g. wood)
710/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Special damping elastic pads are widely used in very sensitive to vibrations areas (for instance
in tunnels, under city, etc.).
Vibration reduction
These devices can be
placed between the rail and
the sleepers:
Or under the sleepers
on the platform:
Elastic baseplate pad
rubber sleeper pad
810/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
•
•Mass-spring systems can also be used under slab tracks:
•
Vibration reduction
Under the balast : Sub-Ballast mats
In tunnel or on
bridge/viaduct
In open track
1010/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Development around Brussels South
1110/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Development of intermodal transport systems
1310/06/10 HS lines & the Environment
"Information published by TUC RAIL in the present document is
general in nature and non-contractual. All rights reserved.”
Transformation in Liège
Some Good News
• High-speed trains are generally quieter than conventional trains.
Because high-speed trains are electrically powered, there's no noisy diesel engine, so a high-
speed train has to travel about 150 mph before it makes as much sound as a commuter train at
79 mph. And because California's high-speed trains will be grade-separated (they'll go over or
under streets and roads) there's no need for noisy bells or horns required at existing level
crossings.
• Fast trains make for shorter sounds.
A train moving at 220 miles per hour -the top speed of California's high-speed trains -will only
be heard for about four seconds. Sy comparison, a 50-car freight train traveling at 30 miles an
hour can be heard for 60 seconds.
• High-speed trains won't keep you up at night.
Unlike freight rail trains, which often run late at night, high-speed train serVice generally will not be
running between midnight and 5 a.m., minimizing nighttime disruptions for homeowners nearby.
Keep in Mind
• Newer train designs are getting quieter.
While the federal guidelines are based on trains in use in 1995, newer trains often make
substantially less noise. While the Authority is using the federal guidelines for planning purposes,
the trains ultimately put in service will likely be much quieter.
• Engineering, design and mitigation make a big difference.
Sound engineers and train builders have more than 40 years of experience measuring, evaluating
and addressing the noise impacts from high-speed trains -and good mitigation measures are in
place and working around the world:
o For a train traveling less than 160 mph, a six to 12-foot sound barrier reduces noise by 5
to 9 decibels (the ear perceives a 10-decibel reduction as cutting the sound in half).
o The sound from a high-speed train operating on an aerial structure could be one or two
decibels higher than at ground level.
o The sound from a high-speed train operating in an open trench could be five to seven
decibels lower than at ground level.
• Counteracting sound will be part of the plan.
As part of its planning process, the Authority is conducting a detailed environmental review of
alternatives for building each part of the project. Once formal draft environmental impact reports
are issued, the Authority will work with the public and local, state and federal agencies to consider
feasible mitigation measures to reduce sound impacts.
• Get informed and be heard.
The California High-Speed Rail Authority has issued a detailed fact sheet and posted it on our
website so that people concerned about these issues can understand them and participate in the
process. Your feedback will help make sure California's high-speed train project becomes a good
neighbor to the communities it serves.