RECOMMENDATION TO COUNCIL
Roseville Electric Utility (REU) staff recommends the City Council adopt a resolution approving Exhibit B, Revision 4, to Contract No. 04-SNR-00850 with the Western Area Power Administration – Sierra Nevada Region (Western) and authorizing the City Manager to execute it.
| BACKGROUND
In December 2004, the City Council adopted Resolution Number 04-554 authorizing the City Manager to execute the Contract for Interconnections with Western, Contract No. 04-SNR-00850. The agreement is effective through March 24, 2037. Exhibit B in the contract establishes five years of estimated costs associated with operation and maintenance (O&M) services provided by Western on the City owned electrical equipment that are part of the 230kV portion of the Fiddyment Substation.
The attached Exhibit B, Revision 4, refreshes the five-year forecast of estimated O&M costs for calendar years 2019-2023 and revises the cost estimate from Revision 3. There are no other substantive changes to Exhibit B. There are no changes to the body of the contract.
Funds invoiced and paid under the authority of this contract are deposited in a trust fund administered by Western. Funds are withdrawn from the trust account as work is performed and expenses are incurred. Actual funding requirements may differ from the estimated annual figures listed in the attached exhibit. Roseville has received supplemental invoices in the past to replenish the trust account. Conversely, there have also been periods where Roseville was not invoiced since the trust was sufficiently funded from carry over funds from previous years.
Staff members from REU and Western meet regularly to discuss O&M activities, status of funding levels, and review O&M activities performed by Western that are funded by Roseville under this agreement.
| FISCAL IMPACT
The annual breakdown of estimated costs for O&M are separately identified in the attached Exhibit B, Revision 4. If Western’s final charges are exactly as estimated, the total five-year funding requirement is $287,562.07.
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ECONOMIC DEVELOPMENT / JOBS CREATED
There are no jobs or economic development impacts from enacting the revision to Exhibit B, Revision 4, to Contract 04-SNR-00850, Contract for Interconnections between the Western Area Power Administration (Western) and the City of Roseville.
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ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical changes in the environment (CEQA Guidelines §15061(B)(3)). The Exhibit B, Revision 4, to Contract No. 04-SNR-00850 does not include the potential for a significant environmental effect, and therefore is not subject to CEQA.
| Respectfully Submitted,
Jason Grace, Electric Operations Manager
Michelle Bertolino, Electric Utility Director | | | 
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Dominick Casey, City Manager
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