RECOMMENDATION TO COUNCIL
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Site Use and Installation Agreement (Site Use Agreement) between the City of Roseville (City) and the California Department of Water Resources (CDWR) for the installation of temporary electric generation facilities at the Roseville Energy Park (REP).
| BACKGROUND
California is suffering an extended drought which has reduced the availability of hydropower and generating capacity in California. The CDWR operates the California State Water Project (SWP) and is both a large producer of hydropower and a large consumer of electricity in operating the SWP. To offset the large decline in generating capability from drought, CDWR is seeking sites that can rapidly add generating capability to the California grid, with a goal of new natural gas peaking units available to provide grid support by mid-September 2021.
When the Roseville Energy Park (REP) was designed and constructed, the site was planned as a hub for various generating technologies. Accordingly, the site has the ability to accommodate additional generating capacity. CDWR has identified the REP site as one of a very few in California capable of rapidly developing generation capacity.
On August 16, 2021, the City Council adopted a resolution authorizing the City Manager to execute a Right of Entry and authorizing staff to negotiate at least three separate agreements between Roseville and CDWR related to this transaction: Site Use and Installation Agreement; Operation and Maintenance Agreement; and an Energy Services Agreement. This item relates to the Site Use Agreement; the remaining two agreements will be presented to City Council for consideration at a later date.
| FISCAL IMPACT
CDWR will pay Roseville $8 million for service provided under the Site Use Agreement over the term of the contract, which expires on December 31, 2023. All costs for construction, operations and maintenance will be borne or reimbursed by CDWR. In addition, Roseville will have the option to procure the generating units at the end of the contract term for an agreed upon purchase price.
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ENVIRONMENTAL REVIEW
The proposed project involves the construction of a limited number of small facilities. This activity is categorically exempt from CEQA as a Class 3 Exemption (State CEQA Guidelines Section 15303). The Exemption has been filed and no further CEQA action is required.
Additionally, the proposed project involves minor alteration in the condition of the land, water, and or vegetation which will not remove healthy, mature scenic trees. This activity is categorically exempt from CEQA as a Class 4 Exemption (State CEQA Guidelines Section 15304). The Exemption has been filed and no further CEQA action is required.
Lastly, Governor Newsom issued a "Proclamation of a State of Emergency" on July 30, 2021, and pursuant to section 10 of that Proclamation of a State of Emergency, the California Environmental Quality Act in Public Resources Code, Division 13 (commencing with section 21000) and regulations adopted pursuant to that Division, are suspended for this project.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal A - Remain fiscally responsible in a changing world
Goal F - Invest in well-planned infrastructure and growth
| Respectfully Submitted,
William Forsythe, Power Supply and Portfolio Administrator
Michelle Bertolino, Electric Utility Director | | | 
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Dominick Casey, City Manager
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