HomeMy WebLinkAboutRESO 9993
13460 CAB91021
Resolution No. 9993
Resolution of the Council of the City of Palo Alto Authorizing the
Commitment of Electric Special Project (ESP) Reserve funds for
Advanced Meter Infrastructure Implementation-Related Expenditures
via a Transfer of up to $8.4 million from the Electric Special Project (ESP)
Reserve to the Smart Grid Technology Installation Project (EL-11014),
and the Loan of up to $10.5 Million from the ESP Reserve to the Smart
Grid Technology Installation Project (EL-11014)
A. In 2011 (Resolution 9206) Council established the Electric Special Projects (ESP) Reserve to
fund projects that benefit electric ratepayers. The fund reserve was established in 1983 to
defray costs associated with the Calaveras Hydroelectric Project, with contributions from a
ratepayer surcharge assessed between 1997 and 1999 to cover the potential for electric
assets exceeding their value under deregulation.
B. In 2015 (Resolution 9510), Council modified the guidelines for managing the ESP Reserve as
follows:
1. The purpose of the ESP Reserve is to fund projects that benefit electric ratepayers;
2. ESP Reserve funds are to be used for projects of significant impact;
3. Projects proposed for funding must demonstrate a need and/or value to electric
ratepayers. The projects must have verifiable value and not be speculative, or risky in
nature;
4. Projects proposed for funding must be substantial in size, requiring funding of at least
$1 million;
5. Set a goal to commit funds by end of FY 2017; and
6. Any uncommitted funds remaining at the end of FY 2022 will be transferred to the
Electric Supply Operation Reserve and the ESP Reserve will be closed.
C. Staff anticipates seeking Council approval to modify and update the ESP Reserve guidelines in
2022 and approval to extend the life of the ESP Reserve through 2030.
D. As of June 30, 2021, the ESP Reserve balance is approximately $46.7 million, not including the
interfund transfer and loan requested via this Resolution.
E. There are sufficient ESP Reserve funds available to fund the Advanced Metering
Infrastructure (AMI) project (the Project)’s electric-related expenditures for the benefit of
electric ratepayers, and to loan funds to the Project to cover the water- and gas-related
expenditures which also will benefit water and natural gas ratepayers.
F. At the July 7, 2021 Utility Advisory Commission (UAC) meeting, UAC voted 5-1 (with
Commissioner Metz voting against and Vice Chair Segal absent) to recommend using funds
DocuSign Envelope ID: 1C499892-1DE1-4412-A82B-E3115A1FFF3F
13460 CAB91021
from the ESP Reserve fund the AMI Project, through a commitment of ESP Reserve funds to
cover the electric-related AMI expenses, and a loan of ESP Reserve funds to cover the water-
and gas-related AMI expenditures.
The Council of the City of Palo Alto does hereby RESOLVE as follows:
SECTION 1. Transfer up to $18.9 million from the Electric Special Projects Reserve to the
Smart Grid Technology Installation Project (EL-11014) for Advanced Meter Infrastructure
implementation-related expenditures, as follows:
1. Transfer up to $8.4 million from the Electric Special Project (ESP) Reserve to the Smart
Grid Technology Installation Project (EL-11014) for Electric AMI and smart grid-related
expenditures;
2. Transfer up to $6.5 million from the ESP Reserve to the Smart Grid Technology
Installation Project (EL-11014) for Water AMI and smart grid-related expenditures,
structured as an inter-fund loan with a repayment term of 5 years with appropriate
interest, with repayment to begin upon completion of the Project; and
3. Transfer up to $4.0 million from the ESP Reserve to the Smart Grid Technology
Installation Project (EL-11014) for Gas AMI and smart grid-related expenditures as an
inter-fund loan with a repayment term of 5 years with appropriate interest, with
repayment to begin upon completion of the Project.
4. Individual fiscal year transfer amounts up to the totals listed in subsections 1-3 above
will be determined based on annual CIP budgets, and are currently estimated to be $7
million in FY 2022, $7 million in FY 2023, and $4.9 million in FY 2024.
SECTION 2. The Council finds that the fund transfers described in Section 1 above meet
Council’s guidelines for managing the Electric Special Project Reserve, described in Recital B above.
Council approves the commitment of ESP funds to support the electric AMI Project expenses, and
the loan of ESP funds to support the water and gas AMI Project expenses.
//
//
//
//
//
//
//
DocuSign Envelope ID: 1C499892-1DE1-4412-A82B-E3115A1FFF3F
13460 CAB91021
//
SECTION 3. The Council finds that the adoption of this resolution to transfer and loan funds
from the ESP to fund the Smart Grid Technology Installation Project (EL-11014) for Advanced
Metering Infrastructure (AMI) and smart grid-related expenditures is categorically exempt under
California Environmental Quality Act (CEQA) Guidelines section 15301(b) as a Project involving
minor alteration of existing public utilities facilities and equipment, with negligible or no expansion
of existing or former use; therefore, CEQA review is not required.
INTRODUCED AND PASSED: October 18, 2021
AYES: BURT, CORMACK, DUBOIS, FILSETH, KOU, STONE
NOES: TANAKA
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
________________________________ ________________________________
City Clerk Mayor
________________________________ ________________________________
Deputy City Attorney City Manager
_______________________________
Director of Utilities
DocuSign Envelope ID: 1C499892-1DE1-4412-A82B-E3115A1FFF3F
Certificate Of Completion
Envelope Id: 1C4998921DE14412A82BE3115A1FFF3F Status: Completed
Subject: Please DocuSign: RESO 9993 ESP Reserve Transfer to Fund AMI Projects.docx
Source Envelope:
Document Pages: 3 Signatures: 5 Envelope Originator:
Certificate Pages: 2 Initials: 0 Danielle Kang
AutoNav: Enabled
EnvelopeId Stamping: Enabled
Time Zone: (UTC-08:00) Pacific Time (US & Canada)
250 Hamilton Ave
Palo Alto , CA 94301
Danielle.Kang@cityofpaloalto.org
IP Address: 199.33.32.254
Record Tracking
Status: Original
10/19/2021 5:08:25 PM
Holder: Danielle Kang
Danielle.Kang@cityofpaloalto.org
Location: DocuSign
Security Appliance Status: Connected Pool: StateLocal
Storage Appliance Status: Connected Pool: City of Palo Alto Location: DocuSign
Signer Events Signature Timestamp
Aylin Bilir
Aylin.Bilir@CityofPaloAlto.org
Deputy City Attorney
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 71.202.3.196
Sent: 10/19/2021 5:10:43 PM
Viewed: 10/19/2021 5:54:03 PM
Signed: 10/19/2021 5:54:54 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Dean Batchelor
Dean.Batchelor@CityofPaloAlto.org
Director of Utilities
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 10/19/2021 5:54:56 PM
Viewed: 10/20/2021 9:29:00 AM
Signed: 10/20/2021 9:29:11 AM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Ed Shikada
Ed.Shikada@CityofPaloAlto.org
Ed Shikada, City Manager
City of Palo Alto
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 10/20/2021 9:29:13 AM
Viewed: 10/20/2021 12:00:07 PM
Signed: 10/20/2021 12:00:13 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Tom DuBois
tomforcouncil@gmail.com
Security Level: Email, Account Authentication
(None)
Signature Adoption: Pre-selected Style
Using IP Address: 24.5.55.204
Sent: 10/20/2021 12:00:14 PM
Viewed: 10/20/2021 3:04:24 PM
Signed: 10/20/2021 3:04:34 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
Signer Events Signature Timestamp
Lesley Milton
Lesley.Milton@CityofPaloAlto.org
City Clerk
Security Level: Email, Account Authentication
(None)Signature Adoption: Pre-selected Style
Using IP Address: 199.33.32.254
Sent: 10/20/2021 3:04:36 PM
Viewed: 10/20/2021 3:17:32 PM
Signed: 10/20/2021 3:17:40 PM
Electronic Record and Signature Disclosure:
Not Offered via DocuSign
In Person Signer Events Signature Timestamp
Editor Delivery Events Status Timestamp
Agent Delivery Events Status Timestamp
Intermediary Delivery Events Status Timestamp
Certified Delivery Events Status Timestamp
Carbon Copy Events Status Timestamp
Witness Events Signature Timestamp
Notary Events Signature Timestamp
Envelope Summary Events Status Timestamps
Envelope Sent Hashed/Encrypted 10/19/2021 5:10:43 PM
Certified Delivered Security Checked 10/20/2021 3:17:32 PM
Signing Complete Security Checked 10/20/2021 3:17:40 PM
Completed Security Checked 10/20/2021 3:17:40 PM
Payment Events Status Timestamps