Title
Adoption of Resolution Approving the Support Services Program Agreement with the Northern California Power Agency and Alameda Municipal Power (AMP). (AMP)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Adoption of Resolution Approving the Support Services Program Agreement with the Northern California Power Agency and Alameda Municipal Power
BACKGROUND
Alameda Municipal Power (“AMP”), a Department of the City of Alameda, is a member of the Northern California Power Agency (“NCPA”), which was formed by various Northern California municipal utilities on July 19, 1968 through the Joint Powers Agreement (“JPA”) to provide for the purchasing, using, or selling of revenue-producing facilities, including electric generating and transmitting facilities, as well as other supporting programs such as scheduling and dispatch services and legislative advocacy services. Under the JPA, individual member public agencies more efficiently use their common powers to acquire, purchase, generate, transmit, distribute, sell, interchange and pool electric capacity and energy. AMP currently receives benefits from various projects and programs offered at NCPA. NCPA is expanding offerings to its members under the attached Support Services Program Agreement (SSPA) to improve membership services and provide additional economies of scale and savings through joint contracting amongst members.
DISCUSSION
The City of Alameda’s Public Utilities Board (“Board”) considered the provisions of the SSPA at its May 16, 2016 regular meeting and 1) recommended approval of the SSPA between NCPA and AMP; 2) recommended appointing AMP’s General Manager and the Board’s General Counsel as the Designated Representatives under the SSPA, 3) upon City Council approval of the SSPA, recommended authorizing the Designated Representatives to execute the SSPA, and 4) recommended authorizing the Designated Representatives to jointly execute any given individual Confirmation for Support Services on AMP’s behalf, which does not exceed $75,000.
Approval of the SSPA will allow AMP to become a signatory to the agreement and, thereby, have the benefit of utilizing various support services available and offered by NCPA. Examples of such support services include, but are not limited to, joint purchasing of utility equipment or services, various consulting services, engineering services, transmission and distribution planning, power marketing and analysis, employee training, employment and human relations assistance, customer services and billing, metering and data management, power plant operations, and other forms of assistance and professional services relating to the operation of a publicly owned electric utility, as related to either the generation, transmission, or distribution of electricity or the wholesale or retail operation of such a utility, all within the scope of the NCPA Joint Powers Agreement.
Services under the SSPA are voluntary, and each member is able to select and pay for such support services as needed for their particular organization. Under the SSPA, Designated Representatives are responsible for jointly committing to individual service offerings on behalf of the member organization. Designated Representatives are jointly delegated authority by their governing board or City Council to bind the City/member to contractually receive and pay for such elected services.
Under Alameda City Charter Section 12-2(A) the Public Utilities Board has the authority to enter into agreements to contract for the sale, lease or purchase of public utility services or commodities for a period not to exceed fifteen (15) years. This agreement does not have a term limit or expiration date, which is why it must go to City Council for approval. To terminate the agreement, a two years advance written notice is required.
FINANCIAL IMPACT
Costs related to this agreement will be based on Alameda Municipal Power’s level of participation and use of the various services offered in each specific procurement activity or service provided by NCPA.
Each individual service confirmation is limited and shall not exceed the AMP General Manager’s spending authority of $75,000 per transaction. Any service confirmation that would exceed the AMP General Manager’s spending authority must be authorized by the Board, through a resolution, prior to joint execution of the service confirmation.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
City of Alameda Charter, Article XII, Section 12-2(A).
ENVIRONMENTAL REVIEW
This action is exempt from the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15061(b)(3).
RECOMMENDATION
Adopt a resolution approving the Support Services Program Agreement between the Northern California Power Agency and AMP along the agreement’s initiating documents.
Respectfully submitted,
Glenn O. Steiger, General Manager
Alameda Municipal Power
By,
Barry Leska, AMP Assistant General Manager
Energy Resources Planning
Financial Impact section reviewed,
Elena Adair, Finance Director
cc: Public Utilities Board
Exhibits:
1. Public Utilities Board Resolution Approving the Support Services Program Agreement and Recommending City Council Approval of the Support Services Program Agreement
2. Support Services Program Agreement