Agenda packet, first session — Glendale City Council, February 8, 2022

A G E N D A

GLENDALE CITY COUNCIL
(STAFF ACCESS ONLY) COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor
Glendale, CA 91206
Meetings are broadcast live on Glendale TV, viewable on Spectrum Cable, channel 6, and AT&T U- verse, channel 99. Meetings are also streamed live in high definition (HD) on the city's webpage, glendaleca.gov/live , on YouTube.com/myglendale , and on Apple TV, Roku, and Amazon Fire devices using a free app called Screenweave and choosing “Glendale TV” from the menu. Meetings are also archived on the City Website for viewing anytime at glendaleca.gov/agendas . Call (818) 548-4013 for program schedules. DVDs of the proceedings are available for purchase in the City Clerk's Office.

If you have any question about matters on the agenda, or requests for assistance, please contact the City Clerk at (818) 548-2090 during regular business hours.

PLEASE TURN OFF CELLULAR PHONES WHILE INSIDE THE MEETING LOCATION In compliance with the Americans with Disabilities Act (ADA) of 1990, auxiliary hearing aids, sign language translation, and Braille transcripts are available upon request. Assisted listening devices are available same-day upon request. At least 48 hours (or two business days) notice is required for requests regarding sign language translation and Braille transcription services. All documents related to open session items on this agenda that are received less than 72 hours prior to this meeting, and are public records, will be available for review in the Office of the City Clerk, 613 E. Broadway, RM 110, Glendale, CA 91206.

Translation services are provided for meetings through the use of bilingual staff for speakers who wish to utilize the service as available. Speakers should state their request by contacting the City Clerk’s office at (818) 548-2090, at least 24 hours prior to the scheduled meeting. Please specify the language for which you require translation. The exclusive use of City provided interpreters is not required and persons are welcome to use their own interpreter or speak in their native language.

FEBRUARY 8, 2022 AT 6:00 PM
To help slow the transmission of COVID-19, and protect the health and safety of the community, City Council, as well as Board & Commission meetings, will continue to be closed to the public for in-person attendance.

The public is encouraged to watch and participate from the safety of their homes to practice social distancing. Meetings are broadcast live on Glendale TV, viewable on Spectrum Cable, channel 6, and AT&T U-verse, channel 99. Meetings are also streamed live in high definition (HD) on the city's webpage, glendaleca.gov/live , on YouTube.com/myglendale , and on Apple TV, Roku, and Amazon Fire devices using a free app called Screenweave and choosing “Glendale TV” from the menu.

For public comments and questions during the meeting, call (818) 937-8100. Public comments on a specific agenda item will be taken when that agenda item is discussed. 1 TYPED 2/3/2022 5:11:21 PM
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REVISED
- Items 3b and 8c were added

ROLL CALL

1. CLOSED SESSION – 1:00 PM (To Commence at 3:00 PM )
a. Conference with Legal Counsel – Pending Litigation: Bagdassar v. City of Glendale, L.A.S.C. Case No. 20STCV01045
b. Conference with Legal Counsel – Pending Litigation: StateFarm11 v. City of Glendale, L.A.S.C. Case No. 21GDCV00229
c. Conference with real property negotiators: Property location – Real property generally located at the terminus of New York Avenue near Park Vista Drive, commonly referred to as “Mountain Oaks.” Negotiating parties: F.E. & M. Inc.

Employee’s Defined Contribution Plan Trust dated July 10, 1984. Agency negotiators attending the closed session are: Roubik Golanian, Michael J. Garcia, Gillian van Muyden, Philip Lanzafame, Silvio Lanzas, Jason Bradford and Onnig Bulanikian. Instructions to the negotiator(s) will concern the price and terms for the acquisition of property
d. Conference with Legal Counsel - Pending Litigation: F.E. & M. Inc. Employee’s Defined Contribution Plan Trust dated July 10, 1984 v. City of Glendale et al., L.A.S.C. Case No. BS16989

2. REGULAR BUSINESS AGENDA – 6:00 PM
Roll Call
a. Flag Salute: Mayor Devine
b. Invocation: Aram Adjemian, City Clerk
c. Report of City Clerk, re: Posting of Agenda. The Agenda for the February 8, 2022 Regular Meeting of the Glendale City Council was Posted on February 1, 2022 on the Bulletin Board Outside City Hall.

3. PRESENTATIONS AND APPOINTMENTS
a. Agenda Preview for the Meetings of Tuesday, February 15, 2022 b. Black History Month Proclamation

4. CONSENT ITEMS (Including Minutes)
The following are Routine and May be Acted Upon by One Motion. Any Member of Council or the Audience Requesting Separate Consideration May do so by Making Such Request Before Motion is Proposed.
a. City Clerk, re: Minutes of the Regular City Council meeting of January 25, 2022 and the Joint City Council and Housing Authority meeting of January 25, 2022 b. Public Works, re: Consulting Services to Provide Sanitary Sewer Closed-Circuit Television (CCTV) and Condition Assessment and Recommendations

1. Motion authorizing the City Manager or a designee to execute a Professional Services Agreement (PSA) with Downstream Services, Inc. to provide Sanitary Sewer CCTV and Condition Assessment and Recommendations Services for $1,157,246 plus a 15% contingency for $173,587, subject to the approval of the City Attorney c. City Attorney, re: Consideration of a Resolution to allow the City Council and all City legislative bodies to continue to meet remotely pursuant to the Brown Act as amended by AB 361
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1. Resolution authorizing the continuance of remote teleconference meetings of the City’s legislative bodies for a period of an additional 30 days in accordance with A.B. 361

5. CITY COUNCIL/STAFF COMMENTS

6. COMMUNITY EVENT ANNOUNCEMENTS (3-Minutes)

7. ADOPTION OF ORDINANCES

8. ACTION ITEMS
a. Glendale Water and Power, re: Agreements for Residential Virtual Power Plant Program with Sunrun, Inc.

1. Motion providing direction regarding Virtual Power Plant Program with Sunrun, Inc. b. Glendale Water and Power, re: 2022 Electric Cost of Service Analysis (COSA)

1. Motion providing direction to staff regarding the 2022 Electric Cost of Service Analysis c. City Clerk, re: Appropriating funds for the General Municipal Election to be held on Tuesday, June 7, 2022

1. A Resolution of Appropriation in the amount of $502,533 for the June 7, 2022 General Municipal Election

9. HEARINGS

10. REPORTS - INFORMATION

11. WRITTEN COMMUNICATIONS

12. ORAL COMMUNICATIONS
Discussion is Limited to Items NOT a Part of this Agenda. Council May Question or Respond to The Speaker But There Will be no Debate or Decision. The City Manager May Refer the Matter to the Appropriate Department for Investigation and Report.

13. NEW BUSINESS

14. ADJOURNMENT
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M I N U T E S

GLENDALE CITY COUNCIL
(STAFF ACCESS ONLY) COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor Glendale, CA 91206
JANUARY 25, 2022 AT 6:00 PM

ROLL CALL

1. CLOSED SESSION

2. REGULAR BUSINESS AGENDA – 6:03 PM
Roll Call – All Present
a. Flag Salute: Aram Adjemian, City Clerk
b. Invocation: Aram Adjemian, City Clerk
c. Report of City Clerk, re: Posting of Agenda. The Agenda for the January 25, 2022 Regular Meeting of the Glendale City Council was Posted on January 18, 2022 on the Bulletin Board Outside City Hall

3. PRESENTATIONS AND APPOINTMENTS
a. Agenda Preview for the Meetings of Tuesday, February 1, 2022 Deputy City Manager John Takhtalian provided the preview.

Items 4c and 4f pulled for separate consideration.
a. City Clerk, re: Minutes of the Special City Council meeting of January 11, 2022 and the Regular City Council meeting of January 11, 2022 Moved: Kassakhian Seconded: Najarian
Vote as Follows
b. Public Works, re: Traffic Signal Modifications on Honolulu Avenue and Pennsylvania Avenue at Montrose Avenue project

1. Motion awarding a construction contract to Elecnor Belco Electric, Inc., in the amount of $3,774,348, approving a 15 percent contingency in the amount of $566,152, rejecting all other bids, and authorizing the City Manager or his designee to execute the contract
Moved: Kassakhian Seconded: Najarian
Vote as Follows
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
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2. Motion authorizing an amendment to professional services agreement 8000099 with KOA Corporation, for construction inspection, increasing the agreement amount by $193,792, extending the agreement term for one additional year to March 7, 2023, and authorizing the City Manager or his designee to execute the professional services agreement amendment
Moved: Kassakhian Seconded: Najarian
Vote as Follows

3. Resolution 22-09 of appropriation to appropriate Measure R Sub-Regional and State Gas Tax funds in the amount of $1,327,046 for the Traffic Signal Modifications on Honolulu Avenue and Pennsylvania Avenue at Montrose Avenue project
Moved: Kassakhian Seconded: Najarian
Vote as Follows
c. Public Works, re: Glendale Beeline Battery – Electric Bus Grant Agreement

1. Resolution 22-10 authorizing the City Manager, or his designee, to execute the Project Grant Agreement and Project Readiness Certification with Los Angeles County Metropolitan Transportation Authority (Metro) to receive federal Congestion Management Air Quality (CMAQ) Program funding, and Measure M Multi-Year Subregional funds to purchase five battery-electric replacement buses Moved: Najarian Seconded: Kassakhian
Vote as Follows

2. Resolution of 22-11 Appropriation in the amount of $2,186,396 federal grant funding for the purchase of five Beeline electric buses Moved: Najarian Seconded: Kassakhian
Vote as Follows
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
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d. Community Services and Parks, re: Update of the Authorized Signatory for the California Emergency Solution and Housing 2018 Program grant with the California Department of Housing and Community Development

1. City Council Resolution 22-13 authorizing the City Manager or a designee to execute all agreements, certifications, and documents necessary to accept and implement CESH programs funding
Moved: Kassakhian Seconded: Najarian
Vote as Follows
e. Community Services and Parks, re: Resolution to update the Authorized Signatory for the California Emergency Solution and Housing (CESH 2019) Program grant with the California Department of Housing and Community Development (HCD)

1. City Council Resolution 22-14 authorizing the City Manager or a designee to execute all agreements, certifications, and documents necessary to accept and implement CESH 2019 programs funding
Moved: Kassakhian Seconded: Najarian
Vote as Follows
Item taken off calendar and will be brought back in next week’s meeting. f. Glendale Water and Power, re: Award of a Design-Build Contract for the Pipeline Management Program FY2021-22 Phase I Project
Staff Comment:

Mike Garcia, City Attorney

1. Motion authorizing the City Manager, or his designee, to enter into and execute a design-build contract with J. De Sigio Construction, Inc. of Baldwin Park, CA, for the Pipeline Management Program FY 2021-22, Phase I Project (RFP No. 3894) in the amount of $5,750,000 plus a ten percent (10%) contingency of $575,000

2. Resolution of Appropriation in the amount of $3,825,000 for the Pipeline Management Program FY 2021-22 Phase I Project
g. Glendale Water and Power, re: Phase III of Mandatory Water Conservation with the Applicable, Corrected Drought Charge

1. Resolution 22-12 implementing Phase III of Mandatory Water Conservation with the applicable Drought Charge and correcting a technical error in the originally adopted resolution
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
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Moved: Kassakhian Seconded: Najarian
Vote as Follows

5. CITY COUNCIL/STAFF COMMENTS
Council Member Kassakhian asked to adjourn in memory of Patrick Campbell.

Council Member Brotman asked staff to provide a report to support that Glendale is a “Reproductive Freedom” city. Kassakhian seconded. Mr. Brotman received emails concerning bulky items and illegal dumping on the streets. Director of PW Yazdan Emrani provided his comments.

Mayor Devine congratulated Community Services and Parks in the grand opening of the T- Ball Field in Brand Park.

6. COMMUNITY EVENT ANNOUNCEMENTS (3-Minutes)

7. ADOPTION OF ORDINANCES
a. City Attorney, re: AN ORDINANCE 5984 OF THE CITY COUNCIL OF THE CITY OF GLENDALE AUTHORIZING THE PARTIAL REPEAL OF ORDINANCE NO. 5974 THAT AUTHORIZED EXECUTION OF A DEVELOPMENT AGREEMENT BY

AND BETWEEN THE CITY OF GLENDALE AND VISTA INVESTMENTS, LLC (Agajanian, 1/18/2022)
Moved: Agajanian Seconded: Brotman
Vote as Follows
b. Community Development, re: AN URGENCY ORDINANCE 5985 OF THE COUNCIL

OF THE CITY OF GLENDALE, CALIFORNIA EXTENDING ORDINANCE NUMBER 5981, ESTABLISHING INTERIM STANDARDS AND MINISTERIAL PROCESSES FOR REVIEWING AND APPROVING ELIGIBLE SB 9 PROJECTS AND SETTING MINIMUM SB 478 FLOOR AREA RATIO STANDARDS FOR CERTAIN MULTI-

FAMILY HOUSING DEVELOPMENT PROJECTS, FOR A PERIOD OF TEN MONTHS AND FIFTEEN DAYS (Agajanian, 1/18/2022)
Moved: Agajanian Seconded: Brotman
Vote as Follows

8. ACTION ITEMS
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
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9. HEARINGS
a. Community Development, re: Adoption of 2021-2029 Glendale Housing Element Hearing opened at 6:35 p.m.

Staff Comments:

Roubik Golanian, City Manager
Mike Garcia, City Attorney
Erik Krause, Deputy Director of Community Development
Presenting:

Phil Lanzafame, Director of Community Development
Amanda Tropiano, De Novo Planning Group
Public Comments:

Karen Kwak
Herbert Molano
Motion to continue the hearing in next week’s meeting without further public notice.

Moved: Kassakhian Seconded: Brotman
Vote as Follows

10. REPORTS - INFORMATION

11. WRITTEN COMMUNICATIONS

Edwin
Vahe Saradjian
Herbert Molano

13. NEW BUSINESS

14. ADJOURNMENT – 7:56 p.m., in memory of Patrick Campbell Moved: Kassakhian Seconded: Brotman
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Mayor of the City of Glendale
City Clerk of the City of Glendale
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M I N U T E S
JOINT MEETING: GLENDALE CITY COUNCIL AND GLENDALE HOUSING AUTHORITY (STAFF ACCESS ONLY) COUNCIL CHAMBERS
613 E. Broadway, 2nd Floor
Glendale, CA 91206
JANUARY 25, 2022 AT 3:00 PM
The Joint Meeting of the Glendale City Council and Glendale Housing Authority convened in the City Hal Council Chambers, in said City, at 3:01 p.m. on the above date, pursuant to a call for such meeting signed by the City Clerk of the City Council, and on file with the City Clerk, a copy of which is as follows:

January 18, 2022
Date
A JOINT PUBLIC MEETING of the City Council and Housing Authority is hereby called to meet at 3:00 PM on Tuesday, January 25, 2022, in the Council Chamber, 613 E. Broadway, 2nd Floor, Glendale, CA 91206 to Consider the Following Item(s) of Business, to wit;

1. Community Services and Parks, re: Report regarding FY 2019-2020 Annual Action Plan Substantial Amendment for Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Act (HOME) to reprogram returned CDBG-CV1 CARES Act funding for Senior Nutrition/Services Program
a. City Council Motion approving the reprogramming of $257,500 in U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant– Coronavirus Round 1 (CDBG-CV1) funds received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, returned from the Small Business Grant Program, to the Senior Nutrition/Services Program, as recommended by the Director of Community Services and Parks; authorizing submission of the FY 2019-2020 Annual Action Plan Substantial Amendment to HUD; and authorizing City Manager or a designee to execute all agreements, amendments, certifications, and documents necessary to carry out the reprogramming of the funds and to accept and implement the funding of the Senior Nutrition/Services Program
b. City Council Resolution of Appropriation to transfer $257,500 from CDBG-CV1 Small Business Grant Program (CSP00297AG) to CDBG-CV1 Senior Nutrition/Services Program (CSP00298AG) to be expended through June 30, 2026 c. City Council Motion authorizing the City Manager or a designee to execute Amendment Eight with Bateman Community Living, LLC dba Trio Community Meals, to increase the price per meal by 10% and add an additional $45,628, to provide additional meals to seniors through the Elderly Nutrition Program, for a total contract price, including past and future increases, not to exceed $2,095,484 d. Housing Authority Motion approving the reprogramming of $257,500 in U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant– Coronavirus Round 1 (CDBG-CV1) funds received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, returned from the Small Business Grant Program, to the Senior Nutrition/Services Program, as recommended by the Director of Community Services and Parks; and authorizing submission of the FY 2019-2020 Annual Action Plan Substantial Amendment to HUD
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Written Notice of said meeting was given, which Notice consisted of a copy of the foregoing Call, and was served on each Member of the Council not joining in the Call, and upon the in said City not less than 24 hours before the time fixed in said Call for said meeting, as follows:

Upon Robert Adjinian at 5:00 p.m. January 18, 2022 Glendale, CA Upon Vrej Agajanian at 5:00 p.m. January 18, 2022 Glendale, CA Upon Dan Brotman at 5:00 p.m. January 18, 2022 Glendale, CA Upon Ardy Kassakhian at 5:00 p.m. January 18, 2022 Glendale, CA Upon Ara Najarian at 5:00 p.m. January 18, 2022 Glendale, CA Upon Laura Parazian at 5:00 p.m. January 18, 2022 Glendale, CA Upon Paula Devine at 5:00 p.m. January 18, 2022 Glendale, CA Mayor Devine called the meeting to order at 3:01 p.m.

Onnig Bulanikian, Director of Community Services and Parks Staff Comment:

Phil Lanzafame, Director of Community Development
a. City Council Motion approving the reprogramming of $257,500 in U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant– Coronavirus Round 1 (CDBG-CV1) funds received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, returned from the Small Business Grant Program, to the Senior Nutrition/Services Program, as recommended by the Director of Community Services and Parks; authorizing submission of the FY 2019-2020 Annual Action Plan Substantial Amendment to HUD; and authorizing City Manager or a designee to execute all agreements, amendments, certifications, and documents necessary to carry out the reprogramming of the funds and to accept and implement the funding of the Senior Nutrition/Services Program
Moved: Agajanian Seconded: Brotman
Vote as Follows
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
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b. City Council Resolution 22-08 of Appropriation to transfer $257,500 from CDBG-CV1 Small Business Grant Program (CSP00297AG) to CDBG-CV1 Senior Nutrition/Services Program (CSP00298AG) to be expended through June 30, 2026 Moved: Agajanian Seconded: Brotman
Vote as Follows
c. City Council Motion authorizing the City Manager or a designee to execute Amendment Eight with Bateman Community Living, LLC dba Trio Community Meals, to increase the price per meal by 10% and add an additional $45,628, to provide additional meals to seniors through the Elderly Nutrition Program, for a total contract price, including past and future increases, not to exceed $2,095,484 Moved: Agajanian Seconded: Brotman
Vote as Follows
d. Housing Authority Motion approving the reprogramming of $257,500 in U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant– Coronavirus Round 1 (CDBG-CV1) funds received under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, returned from the Small Business Grant Program, to the Senior Nutrition/Services Program, as recommended by the Director of Community Services and Parks; and authorizing submission of the FY 2019-2020 Annual Action Plan Substantial Amendment to HUD
Moved: Brotman Seconded: Agajanian
Vote as Follows
ADJOURNMENT – 3:29 p.m.
- City Council
Moved: Agajanian Seconded: Brotman
- Housing Authority
Moved: Agajanian Seconded: Parazian
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Agajanian, Brotman, Kassakhian, Najarian, Devine
None
None
None
Ayes:

Noes:

Absent:

Abstain:

Adjinian, Agajanian, Brotman, Devine, Najarian, Parazian, Kassakhian None
None
None
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Mayor of the City of Glendale
City Clerk of the City of Glendale
Chair of the Glendale Housing Authority
Clerk of the Glendale Housing Authority
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Consulting Services to Provide Sanitary Sewer Closed-Circuit Television (CCTV) and Condition Assessment and Recommendations

COUNCIL ACTION
Item Type: Consent Calendar
Approved for February 8, 2022 calendar

EXECUTIVE SUMMARY
State law requires agencies which own and operate more than one mile of sanitary sewers to do so in accordance with best practices and with an eye on protecting public health and the waters of the United States from the hazards created by sanitary sewer overflows (SSOs). These rules and regulations are stipulated in the Waste Discharge Regulations (WDR) permit, which governs the operations and maintenance of Glendale’s sanitary sewer system. A widely recognized best practice for every municipality is to conduct a full assessment of system conditions using CCTV technology. Such a comprehensive assessment in a relatively short timeframe is beyond the capacity of in- house resources. Staff released a Request for Proposals (RFP) for sanitary sewer CCTV and condition assessment and recommendations services. Four consultants submitted proposals, which were reviewed by a city selection committee who found Downstream Services Inc. to be the most suitable option. The recommended PSA to provide sanitary sewer CCTV and condition assessment and recommendations services for $1,157,246 plus a 15% contingency for $173,587.
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COUNCIL PRIORITIES

1. Exceptional Customer Service: The outcome of this assessment will enable staff to continue to identify and prioritize necessary corrective maintenance improving the reliability of the city’s sanitary sewer system.

2. Safe & Healthy Community: Targeted corrective maintenance minimizes SSOs which can adversely impact local waterways and ecosystems.

3. Infrastructure & Mobility: This assessment and recommendations service will help protect the city’s considerable investment in critical sanitary sewer infrastructure from age related degradation.

4. Sustainability: This assessment demonstrates the city’s commitment to responsible stewardship of the water environment.

RECOMMENDATION
The Public Works Department respectfully requests that the City Council authorize the City Manager or a designee to execute a PSA with Downstream Services, Inc. to provide Sanitary Sewer CCTV and Condition Assessment and Recommendations Services for $1,157,246 plus a 15% contingency for $173,587 subject to approval by the City Attorney.

BACKGROUND
The City of Glendale provides sanitary sewage collection services to a population of approximately 200,000. The city’s sanitary sewer system consists of approximately 360 miles of gravity sewer mains ranging in diameter from 6 inches to 48 inches (covering a

30.6 square mile area). The overall system drains from La Crescenta in the Verdugo Mountains in the north, to seven outfalls along the city’s southwestern border with the City of Los Angeles. Six of the seven discharge to the Los Angeles / Glendale Water Reclamation Plant, and one discharges to the North Outfall Sewer which flows to the Hyperion Treatment Plant on the coast, in the City of Los Angeles. The City’s sanitary sewer system has been divided into 12 maintenance districts by the Public Works Department. Staff operates a CCTV platform in support of routine preventive maintenance and the Public Works Department Capital Improvement Program; however, a more comprehensive and systematic assessment of the City’s entire sanitary sewer system is needed.

Therefore, the Public Works Department released a RFP for sanitary sewer CCTV and condition assessment and recommendations services on August 26, 2021, with an initial due date of September 15, 2021. The proposal due date was subsequently extended to October 29, 2021. A total of four proposals were received, which were reviewed and rated by a city selection committee. The selection committee evaluated the proposals based on the following criteria: proposed implementation and workflow; experience; measureable and trackable results; and cost and budget control. Downstream Services Inc. submitted a comprehensive proposal with a thorough understanding of the desired project scope and capacity.
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ANALYSIS
Staff intends to assess the vast majority of the sanitary sewer collection system over the next 3-4 years. This proposed PSA will cover approximately 33% of the city’s sanitary sewer system. Staff selected four of the twelve maintenance districts for this initial assessment based on the following criteria:
a. Number of SSOs occurring within the district over the last five years; and, b. Difficulty in accessing the system in the district due to a significant portion of the assets existing off-street, in utility easements.
.

These criteria resulted in the selection of the following districts for initial assessment in the southern and eastern portions of the city, also shown on the map provided as Exhibit No.1:

District 2
District 4
District 5
District 7
Upon review of the proposals, staff determined Downstream Services, Inc. to be the highest ranked proposer in the RFP process. Vendors for future assessments will also be selected via an RFP. A 15% reserve for contingencies of $173,587 is recommended for unforeseen conditions, re-inspections and as-needed additional inspections recommended by the City.

Project Description: First phase of a systematic, district by district condition assessment of the City’s sanitary
sewer system estimated to take 3-4 years to
complete.

RFP Approved: N/A
Advertisement Method: Website and outreach to vendors
RFP Issued: August 30, 2021
RFP Due Date: September 22, 2021 (Extended to October 29, 2021)
Company Name(s): Downstream Services, Inc.

Premier Pipe, Inc.

National Plant Services, Inc.

Red Zone Robotics, Inc.

Selection Criteria (If SS, list
applicable provision):

1. Proposed Implementation and Work Flow

2. Experience

3. Measureable and Trackable Results

4. Cost and Budget Control
Recommended Consultant(s): Downstream Services, Inc.

New / Existing Consultant(s): New
Procurement Method (RFP / SS): RFP
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Agreement Term: Approximately Five Months
Project Begins: April 2022
Project Ends: August 2022

STAKEHOLDERS/OUTREACH
Adopting these recommendations will benefit the community by improving the safety and reliability of the City’s sanitary sewer system, a key component of the city’s public health and safety infrastructure.

FISCAL IMPACT
The Sanitary Sewer CCTV and Condition Assessment and Recommendations Services will cost $1,330,833 inclusive of contingency, which was approved as a part of the FY 2021-22 budget. No new appropriation is being requested at this time. The City Council approved funding is outlined below:

Existing Appropriation
Amount Account String Funding Source
$1,330,833 GL: 43110-5250-PWD-0020-P0000-
PL: PWD00579AN
Sewer Fund

ENVIRONMENTAL REVIEW
This item is considered a ministerial activity in accordance with California Waste Discharge Requirements (WDR) for Sanitary Sewer Systems (State Water Resources Control Board Order No. 2006-003) and the City’s Sewer System Management Plan (SSMP) Recertified May 2019.

CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are listed below, in accordance with the City Campaign Finance Ordinance No. 5744.

Officers of Downstream Services, Inc.:

Full Name Title Business Address City State Zip
Wilma Roberts Chairperson 2855 Progress Place Escondido CA 92029 Wilma Roberts Chief Executive
Officer/ President 2855 Progress Place Escondido CA 92029 Victor Roberts Chief Operating
Officer 2855 Progress Place Escondido CA 92029
Wilma Roberts Chief Financial Officer 2855 Progress Place Escondido CA 92029 Ownership Interest in more than 10% in West Coast:

Full Name Title Business Address City State Zip
N/A Board of Directors N/A N/A N/A N/A
N/A More than 10%
Interest Owner N/A N/A N/A N/A
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ALTERNATIVES
Alternative 1: Authorize the City Manager, or his designee to enter into a PSA to provide Sanitary Sewer CCTV and Condition Assessment and Recommendations Services with Downstream Services, Inc., plus contingency, as recommended herein and subject to the approval of the City Attorney. This would ensure city compliance with State regulations by promoting reliability of the City’s sanitary sewer system.

Alternative 2: Take no action. The City will not be in compliance with State regulations and requirements, including its WDR permit and may be subject to fines and penalties. This option is not recommended, as it could violate the City’s Waste Discharge Regulations (WDR) permit.

Alternative 3: Consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Prepared by:

John N. Hicks, Wastewater Maintenance Superintendent
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS / ATTACHMENTS
Exhibit 1: Map of City Maintenance Districts highlighted to show areas of initial focus 17 of 57
MOTION
Moved by Council Member , seconded
by Council Member , that the Council of the City of
Glendale hereby:

1. Authorizes the City Manager, or his designee, to execute a professional services agreement – subject to approval by the City Attorney – with Downstream Services, Inc. for the Sanitary Sewer CCTV and Condition Assessment and Recommendations Services, for the amount of $1,157,246.

2. Authorizes a 15 percent reserve for contingency, equal to $173,587.

3. Rejects all other proposals.

Votes as follows:

Ayes:

Noes:

Absent:

Abstain:
___________________________
City Clerk
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ALLEN AV

W KENNET H RD

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GLENDALE AV

BOSTON AV

N BRAND BLVD

P ACIFIC AV

WESTERN AV

GRANDVIEW AV E MOUNTAIN ST

S ADAMS ST

GLENDALE AV

HIGHLAND AV

WI LSO N AV

W MOUNTAIN ST

PENNSYLVANIA AV

LEXINGTON DR

NEW YORK AV

COUNTRY CLUB DR

P ACIFIC AV

STOCKER ST

SANTA CARLOTTA ST

CUMBERLAND RD

N CENTRAL AV

MO UNTAIN ST

S CENTRAL AV

W DO RAN ST

GLENOAKS BLVD

S ADAMS ST

RIVERSIDE DR

FOO THILL BLVD

SAN FERNANDO RD

W GLENOAKS BLVD

CANADA BLVD

BROADWAY

HONOLULU A V

LA CRESCENT A AV

N VERDUGO RD

BROADWAY

VERDUGO RD

OCEAN VIEW BLVD

COLORADO ST

CHEVY CHASE DR

SAN FERNANDO RD

VERDUGO RD

E CHEVY CHASE DR

VENTURA FRWY

GLENDALE FRWY

GOLDEN ST ATE FRWY

VENTURA FRWY

FOOTHILL FRWY
¹
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MAINTENANCE DISTRICTS
City of Glendale
District Nos. 2, 4, 5 & 7
Legend
Exhibit 1
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4c

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Consideration of a Resolution to allow the City Council and all City legislative bodies to continue to meet remotely pursuant to the Brown Act as amended by AB 361.

1. Resolution authorizing the continuance of remote teleconference meetings of the City’s legislative bodies for a period of an additional 30 days in accordance with A.B. 361.

COUNCIL ACTION
Item Type: Consent Item
Approved for February 8, 2022 calendar

EXECUTIVE SUMMARY
The Governor signed A.B. 361 which permits continued remote teleconference meetings during a declared state of emergency, provided the local agency makes specified findings and adheres to the procedural safeguards specified in the law. The Council has adopted resolution to allow continued remote meetings under AB 361 for a period of 30 days. A resolution is presented for Council consideration to authorize continued remote teleconference meetings for an additional 30 days.

COUNCIL PRIORITIES
Informed and Engaged Community – Allowing continued remote teleconference meetings of the City’s legislative bodies, including live public participation, during the current state of emergency helps to ensure an informed and engaged community.
Safe & Health Community – Allowing continued remote teleconference meetings of the City’s legislative bodies promotes social distancing recommended by local health authorities during the pandemic.

RECOMMENDATION
That the Council adopt a resolution allowing continued remote teleconference meetings of the City’s legislative bodies, including live public participation, in accordance with AB 361.
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BACKGROUND
Since March of 2020, because of the COVID-19 pandemic, the Council and all boards and commissions have been meeting remotely pursuant to the Governor's Executive Order N-29-20, which suspended certain teleconference meeting requirements of the Brown Act. On June 11, 2021, the Governor issued Executive Order N-08-21, which rescinds these suspensions effective September 30, 2021. In recognition of the fact that the pandemic is ongoing, on September 16, 2021, the Governor signed AB 361, which amends the Brown Act and authorizes teleconferenced public meetings at remote locations under a state of emergency declared by the Governor under the Emergency Services Act. The Council adopted resolutions on October 19, 2021, November 16 2021, December 14, 2021, and January 11, 2022 allowing continued remote teleconference meetings under AB 361 for a period of 30 days.

ANALYSIS
AB 361 allows local agencies to continue having remote teleconference meetings when the Governor has declared and a state of emergency, if the local agency can make certain findings and complies with several procedural safeguards to protect public participation during a remote meeting. The public must have the ability to address the legislative body directly, and must be given information on how to address the body. The public must be provided either a call-in or internet-based service option. The body must stop the meeting if the call-in or internet-based option fails. The legislative body cannot require that public comments be submitted in advance (although this can be provided as an option).

Speakers cannot be required to pre-register (except as required by an independent call- in or internet platform). Members of the public must be given a reasonable time to register to provide public comment.

Accordingly, the Council adopted resolutions on October 19, 2021, November 16, 2021 December 14, 2021, and January 11, 2022 to authorize the Council and all boards, commissions, and committees, including ad hoc committees subject to the Brown Act, to continue to be able to meet remotely during the current declared state of emergency for a period of 30 days. In adopting the resolutions, the Council found that state or local health measures continue to promote social distancing by state or local officials. With the recent surge caused by the Omicron variant, there is a need to continue remote teleconference meetings under AB 361. To continue remote teleconference meetings, the Council must confirm the circumstances of the state of emergency and make the required findings every 30 days. A proposed resolution is presented for Council consideration.

STAKEHOLDERS/OUTREACH
Not applicable.

FISCAL IMPACT
There is no fiscal impact associated with this item.

ENVIRONMENTAL REVIEW
This item is exempt from CEQA. It is not a project and there is no reasonable likelihood 21 of 57
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that compliance with AB 361 will result in any significant impacts to the environment.

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.

ALTERNATIVES

1. Adopt the Resolution so that the Council and the City’s boards and commissions can continue to hold remote teleconference meetings, consistent with AB 361.

2.Do not adopt the Resolution but the Council and City boards and commissions would have to return to in-person meetings commencing on February 10, 2022.

3.Select an alternative not identified by staff.

ADMINISTRATIVE ACTION
Prepared by:

Michael J. Garcia, City Attorney
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS / ATTACHMENTS
None.
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1 C:\inetpub\wwwroot\Glendale\temp\CC_02082022_Resolution_4c1.pdf RESOLUTION NO. ___________

A RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE,

CALIFORNIA AUTHORIZING CONTINUED REMOTE TELECONFERENCE

MEETINGS OF ALL CITY OF GLENDALE LEGISLATIVE BODIES
FOR AN ADDITIONAL THIRTY DAYS IN ACCORDANCE WITH AB 361 WHEREAS, the Council of the City of Glendale is committed to preserving and fostering public access and participation in meetings of the Council, and all City of Glendale “legislative bodies” as required by the Ralph M. Brown Act (Cal. Gov. Code §§ 54950 – 54963), so that any member of the public may attend and participate as the bodies conduct the public’s business; and
WHEREAS, the Brown Act, as amended by Assembly Bill No. 361 (“AB 361”), makes special provisions for remote teleconferencing participation in meetings when the Governor has declared a state of emergency pursuant to Government Code section 8625, and either state or local officials have imposed or recommended measures to promote social distancing, or the state of emergency directly impacts the ability of legislative body members to meet safely in person; and
WHEREAS, such conditions now exist in the City of Glendale. Specifically, on March 4, 2020, Governor Gavin Newsom issued a Proclamation of a State of Emergency with regard to the COVID-19 pandemic (“State of Emergency”). Los Angeles County Health Officer has issued numerous Health Orders regarding safety protocols during the COVID-19 pandemic, most recently dated September 28, 2021.

Pasadena’s Health Officer has also issued numerous Health Orders regarding safety protocols during the COVID-19 pandemic, including a June 14, 2021 Order To Comply With California Department Of Public Health Guidance For The Use Of Face Coverings 23 of 57
2 C:\inetpub\wwwroot\Glendale\temp\CC_02082022_Resolution_4c1.pdf And Select Sector Guidances And Public Health Protocols (which, among other orders, requires physical distancing of at least 6 feet), a July 21, 2021 Order For Wearing Of Face Masks In Public Settings (requiring face masks be worn, regardless of vaccination status, in all indoor public settings) and the Responding Together at Work and In the Community Order dated January 10, 2022. These latest orders were made necessary by the rise in the more contagious and easily spread Delta and Omicron variants of the COVID-19 virus throughout the nation, and specifically in the Los Angeles County region. State and local health orders also continue to promote social distancing and outdoor activity to the extent feasible; and
WHEREAS, the Council finds that the current situation with regard to COVID-19, and particularly the Delta and Omicron variants, is causing, and will continue to cause, risks to the safety of persons within the City of Glendale and finds that the Council and all City of Glendale legislative bodies, including the Council, Successor Agency, Housing Authority, all boards, commissions and committees, and all legislative bodies established by the Council shall conduct their meetings with remote participation in the manner authorized by Government Code § 54953(e), and such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in Government Code § 54953(e)(2);
WHEREAS, the Council adopted resolutions on October 19, 2021, November 16, 2021, December 14, 2021 and January 11, 2022, making the findings set forth above and authorizing remote teleconference meetings for the Council and the City’s boards, commissions and committees in accordance with AB 361 for a period of 30 days. 24 of 57
3 C:\inetpub\wwwroot\Glendale\temp\CC_02082022_Resolution_4c1.pdf NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Glendale, California as follows:

Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated herein by reference.

Section 2. Findings. The Council finds:

A. It has reconsidered the circumstance of the State of Emergency, which is still in effect;
B. The State of Emergency continues to directly impact the ability of the City’s legislative bodies (and the members of the public who would wish to attend) to meet safely in person; and
C. State and local officials continue to recommend measures to promote social distancing.

Section 2. Remote Teleconference Meetings. The Council and all City of Glendale legislative bodies, including the Council, Successor Agency, Housing Authority, all boards, commissions and committees, and all legislative bodies established by the Council, shall conduct their meetings with remote participation in the manner authorized by Government Code § 54953(e), and such legislative bodies shall comply with the requirements to provide the public with access to the meetings as prescribed in Government Code § 54953(e)(2).

Section 3. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of March 10, 2022, or such time as the Council adopts a subsequent resolution in accordance with 25 of 57
4 C:\inetpub\wwwroot\Glendale\temp\CC_02082022_Resolution_4c1.pdf Government Code § 54953(e)(3) to extend the time during which meetings may continue to be held remotely by teleconference in compliance with that section.

Adopted this ______ day of ____________________, 2022.
___________________________________
Mayor
ATTEST:
_________________________
City Clerk

STATE OF CALIFORNIA )
) SS

COUNTY OF LOS ANGELES)
I, Aram Adjemian, City Clerk of the City of Glendale, certify that the foregoing Resolution No. ___________ was adopted by the Council of the City of Glendale, California, at a regular meeting held on the _____day of __________, 2022, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_________________________
City Clerk
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8a

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Agreements for Residential Virtual Power Plant Program with Sunrun, Inc.

1. Motion providing direction regarding Virtual Power Plant Program with Sunrun, Inc.

COUNCIL ACTION
Item Type: Action Item
Approved for February 8, 2022 calendar

EXECUTIVE SUMMARY
Glendale Water & Power (GWP) presents, for the City Council's consideration, an overview of the proposed long-term residential Virtual Power Plant Program (VPP) with Sunrun, Inc., including the agreements to implement the program and the fiscal impact of the VPP.

The proposed VPP with Sunrun, Inc. would provide the City with up to 25.25 Megawatt (MW) 2Hr./50.50 MWh of battery storage capacity and up to 37 MW of renewable solar capacity to help serve the energy needs of the City of Glendale, and to help reduce the size of the proposed Grayson Repowering Project. The term of the VPP program would be 26 years (25 years of energy and capacity purchases, which is expected to start at the end of first year of development). The total cost of the VPP is estimated at $219,374,542 over the contract term, including energy, capacity, and environmental attribute purchases, customer bill credits, internal GWP labor, Information Technology (IT), marketing, and permit costs. The final proposed cost estimate is slightly less than the $228 million, presented to City Council on March 2, 2021. The lower total cost is attributable to reduction of MWh delivered. The cost reduction does not affect the Electric Cost of Service Analysis (COSA) that is currently being finalized because the savings are realized outside the 5-year COSA period, beyond 2027.

COUNCIL PRIORITIES
Infrastructure and Mobility: The proposed VPP would provide a local source of clean energy and capacity for the City of Glendale, help with reliability, and help reduce the size of the City's power plant and its reliance on electrical generation imported into the City via transmission lines.
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Sustainability: The proposed VPP would provide Glendale with local, renewable, solar energy paired with battery energy storage capacity charged exclusively from the solar panels.

RECOMMENDATION
Consider this update and provide direction regarding the proposed VPP program agreement with Sunrun, Inc.

BACKGROUND
At the City Council’s direction, in 2018, GWP issued a Request for Proposals (RFP) for Local and Regional Renewable, Low-Carbon, and Zero Carbon Resource Options to Serve the City of Glendale (“Clean Energy RFP”). Through the Clean Energy RFP process, GWP reviewed and evaluated a proposal by Sunrun, Inc. to develop a residential virtual power plant program for the City. Sunrun’s VPP proposal was modeled for the 2019 Integrated Resource Plan (2019 IRP) and was included in the recommended energy portfolio in the 2019 IRP.

On July 23, 2019, the City Council approved the 2019 IRP, short-listed Sunrun’s proposal, and authorized GWP to negotiate contracts with Sunrun for a proposed 13 MW VPP. On September 24, 2020, GWP presented the proposed Clean Energy Programs, including the Sunrun VPP, to the GWP Commission. The GWP Commission recommended that the City Council direct GWP to proceed expeditiously with all three of the proposed Clean Energy Programs -- specifically, the Sunrun VPP, the Franklin Energy smart thermostat and demand response program, and the Lime Energy1 commercial direct install energy efficiency program -- on a full-scale basis and undertake an electric COSA to study the rate impacts of the programs. The GWP Commission further recommended that GWP negotiate a termination provision and or modification structure based upon the COSA and initial program results, and to report back to the GWP Commission and City Council twelve months after program initiation.

On October 13, 2020, GWP provided an update to City Council regarding the status of the negotiation of the VPP agreements and reported that GWP was able to negotiate a cost reduction in the program, along with an increase in the amount of capacity of the proposed VPP to 25.25 MW. The City Council adopted a motion authorizing the City Manager, or his designee, to negotiate contracts with Sunrun, Inc. or its affiliate for a residential VPP for a term of up to 25 years, requiring that the terms and conditions of such contracts be presented to the City Council for its consideration prior to execution.

On March 2, 2021, GWP provided the City Council with a “Progress Report on Glendale’s Clean Energy Future,” which included an update on the proposed Sunrun VPP program. GWP reported that, following further negotiations with Sunrun, the revised VPP proposal would result in 6.9% reduction in the total program cost, bringing the total program cost from $245 million to $228 million over 25 years. Furthermore, GWP reported that the updated program would provide 13.4% increase in the maximum 1 Lime Energy is now known as Willdan Group, Inc.
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annual solar MWh produced, an 8.8% reduction in the solar PPA price, an 8.3% reduction in the VPP capacity price, and 5.9% reduction in expected customer bill credits.

From March 3, 2021 to the present, GWP has continued negotiations with Sunrun to finalize and complete the contracts and agreements. This report summarizes the key terms of those agreements for consideration by City Council.

ANALYSIS
The proposed VPP will provide Glendale with 25.25 MW 2Hr / 50.50MWh of battery storage capacity with up to 37 MW2 of renewable solar capacity to help meet the City’s energy demand, help with reliability, and help offset the size of the proposed Grayson Repowering Project. With the Sunrun VPP project added to GWP’s resource mix, GWP’s renewable energy and zero carbon portfolio content would increase by approximately 3%. The battery storage would provide the ability to reduce Glendale’s peak demand by up to 25 MW for 2 hours.

The total cost of the VPP is estimated at $219,374,542 over the contract term. This includes energy, capacity, and environmental attribute purchases under the contracts with Sunrun ($200,572,383), customer bill credits ($12,700,000), and internal GWP costs ($6,102,159) to cover costs including but not limited to distribution system studies, interconnection activities, marketing, IT integrations, and GWP and other City permits.

The final proposed cost estimate is slightly less than the $228 million cost presented to City Council on March 2, 2021. The lower total cost is attributable to reduction of MWh delivered from the optimized PV solar and battery configuration. The cost reduction does not affect COSA because the savings are realized outside the 5-year COSA period, FY 2023 to FY 2027.

The following table illustrates the evolution of the VPP program offer from October 2020 to the present:
2 The solar energy will be used to charge the battery. If the battery is fully charged, the excess solar energy will flow to the grid and will be purchased by the City, subject to contractual caps on GWP’s purchase obligation and the hourly maximum amount that can flow onto the grid. 29 of 57
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Original Proposed
Configuration
(October 23, 2020)
Modified
Configuration
After Negotiations
(March 2, 2021)
Final Proposed
Configuration
VPP capacity - Maximum 25.25 MW 25.25 MW 25.25 MW
Solar production / yr
Maximum 39,800 MWh 45,128 MWh 40,115 MWh
Solar PPA price $0.1425 $0.1300 $0.1300
SREC price ($ / kWh)* $0.0100 $0.0085 $0.0085
Annual escalator 0% 0% 0%
VPP capacity price - $150/kW-yr $137.50/kW-yr $137.50/kW-yr Contract term 25 yr 25 yr 25 yr
Aggregate customer
program participation $13.5M $12.7M $12.7M
Aggregate nominal cost to
GWP $245M $228M $219M
All in Cost Per Peak MW-
year 388,119$ 361,188.12$ 347,524.03$ Compared to the Modified Configuration After Negotiations (March 2, 2021), the final proposed configuration would result in 3.9% reduction in the total program cost, bringing the total program cost from $228 million to $219 million over 25 years due to the 11.1% reduction in the estimated solar production.

VPP development will take place over four years. Based on Sunrun’s financing structure, the program has been divided into four separate annual blocks, each covering a separate “Tranche” of solar and storage assets. Each annual Tranche is covered by a separate Power Purchase Agreement (PPA) and separate Master Interconnection Agreement. The VPP will provide power to GWP for a term of 25 years from the end of the Tranche I development year (the Delivery Term), as follows:
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Tranche Guaranteed Tranche Capacity Development Period End of Performance Period I 1.775 MW
2022 25 years from end of Tranche I Development Period
II Additional 7.85 MW
2023 25 years from end of Tranche I Development Period
III Additional 9.85 MW
2024 25 years from end of Tranche I Development Period
IV Additional 5.775 MW
2025 25 years from end of Tranche I Development Period
Program Total 25.25 MW 4 years 25 years
Virtual Power Plant Program Agreements
The proposed VPP would be implemented through several agreements. The City and Sunrun, Inc. will enter into four PPAs (one for each of the four Tranches); four Master Interconnection Agreements (one for each PPA), and a Strategic Co-Marketing Agreement. Participating customers will enter into an agreement with Sunrun (described below, forms will be attached to the Master Interconnection Agreement).

Additionally, the City will enter into one or more Professional Services Agreements with a plan check vendor to implement the program. A summary of some of the key terms of the Agreements follows.

1. Power Purchase Agreements (PPA)
There will be four PPAs. All four PPAs will be signed at the same time, but the PPAs will be implemented sequentially (i.e., Sunrun does not move on to the second PPA until it completes its obligations under the first). Under each PPA, Sunrun will be required to install photovoltaic (PV) solar and battery storage systems at single-family and multi-family residential properties in GWP’s service territory. The systems will be placed in front of the meter such that all of the energy from the solar panels will charge the batteries or flow onto the GWP grid, and GWP will receive renewable energy credits for the solar energy for Renewable Portoflio Standard (RPS) compliance. The systems will be owned and maintained by Sunrun. The battery capacity will be aggregated via software controlled by Sunrun or its subcontractor. GWP will receive periodic data from the systems and will have the ability to schedule the discharging of energy from the batteries with 15-minute notice to help meet GWP’s power needs, based upon the parameters set forth in the PPA. GWP will purchase the PV energy and battery storage capacity, together with all environmental attributes from the VPP from Sunrun, for the term of the PPA. The following are certain key terms of the PPAs:
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Price:
oEnergy Price: The price for the solar energy delivered to GWP is $130 per MWh.
oREC Price: Each renewable energy credit (REC), associated with 1 MWh of energy, is priced at $8.50 per MWh.
oCapacity Price: The price for the capacity is $137.50 per kW-year. The capacity is measured based upon an annual capacity test. oAnnual Energy Expenditure: Assuming an annual purchase of 37,000 MWh of solar energy plus RECs, the estimated annual expenditure for the purchase of energy and RECs (over the PPA term) is $5.12 million. oAnnual Capacity Expenditure: The estimated annual expenditure for the purchase of the 25.25 MW of capacity (over the PPA term) is $3.47 million.

All prices are fixed for the 25-year delivery term.
Schedule Guarantee: Each PPA requires Sunrun to complete installation of the guaranteed solar and storage capacity of the Tranche covered by the PPA by a guaranteed commercial operation date (COD), or “Guaranteed Tranche COD.” If the Guaranteed Tranche COD is not met, Sunrun will owe Daily Delay Damages for the delay, capped at 180 days of payments. There is an “Outside COD” for each PPA that is 180 days following Guaranteed Tranche COD. If Tranche COD is not achieved by the Outside COD, the City may exercise its right to terminate the PPA with respect to the affected systems. However, systems that have already achieved commercial operation would remain in place notwithstanding the termination, and GWP would purchase the energy and capacity from such systems for the remainder of the contract term.
Battery Energy Storage System Capacity: Each PPA specifies the amount of capacity that Sunrun must deliver for the Delivery Term. The overall battery energy storage capacity for the VPP program is 25.25 MW. This capacity is subject to Sunrun’s right to “buy down” up to 20% of the capacity obligation for each Tranche by paying the City $100,000 per MW shortfall. If the installed capacity is less than 80% of the benchmark capacity for a Tranche, and cannot be brought back up to at least 80% within 180 days, then the City may terminate for default.
CEC Certification: Sunrun certifies that the systems are eligible renewable energy facilities qualifying under “Portfolio Content Category I” of the RPS law. For any energy deliveries that are not CEC-certified, the City is not required to pay the REC price, and the energy price is reduced by $8.50 per MWh.
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Changes in Law: If there is a change in law such that the systems or VPP no longer qualify for Portfolio Content Category I (PCC1) eligibility under the RPS requirements, Sunrun is obligated to spend up to $100,000 per MW of BESS Contract Capacity, in the aggregate over the life of the agreement, to bring the systems or VPP into compliance. If Sunrun’s expenditure is insufficient to bring the systems or VPP into compliance, Glendale has the right, but not the obligation, to spend its own funds to bring the systems into compliance with the change in law. If the systems or program cannot be brought into compliance, the City must continue to purchase the energy and capacity for the remainder of the contract term, with an energy price reduction of $8.50 per MWh, but the City is not required to pay the REC price. Termination for Convenience: The City has a limited right to terminate the first PPA for convenience upon six months’ prior notice with respect to any systems that have not achieved commercial operation. If the City exercises its termination for convenience right under the first PPA, it must pay Sunrun a termination fee of $9,000,000. The termination for convenience, if exercised, would terminate the Tranche I PPA with respect to systems that have not achieved commercial operation and would terminate the Tranche II, III, and IV PPAs in their entirety. However, there is no additional “termination for convenience” right under the Tranche II, III, and IV PPAs. For any system(s) that have been installed under the Tranche I PPA as of the effective date of the termination (i.e., six months after notice), the City will continue to purchase the power, capacity, and environmental attributes from Sunrun, and pay customer bill credits, for the remaining term of the contract.

Termination for Cause; Damages: Either party has the right to terminate a PPA for cause. Grounds for termination include material breach or inaccuracy of a counterparty’s representations, warranties or covenants; bankruptcy of a counterparty; failure to accept delivery or pay for the energy or capacity (by Glendale); failure to meet Outside COD; failure to deliver at least 50% of the annual energy contract quantity for two consecutive years (by Sunrun); Sunrun’s failure to maintain credit security and insurance; and failure to mitigate cybersecurity deficiencies. If Sunrun terminates for cause (i.e., due to the City’s breach) or if the City terminates for cause after Tranche COD (i.e., due to Sunrun breach), the breaching party would owe cover damages (i.e., the calculation of the non-breaching party’s costs and losses netted against gains) for the remainder of the contract term; provided the City’s aggregate damages for a Sunrun breach in this scenario will be no less than the security amount (i.e., $9,216,250). If the City terminates a PPA for cause prior to Tranche COD, Sunrun will owe the City an aggregate amount equal to (1) the product of the security amount (i.e. $9,216,250) multiplied by the ratio of the benchmark capacity of the applicable Tranche to 25.25 MW, minus (2) $500 for each MW of capacity of the systems surviving termination multiplied by 730 days (two years). Except for terminations for cause due to failure to meet Outside COD, there is no cross-default; meaning that termination of one PPA 33 of 57
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for default does not terminate the others.
Purchase Option: The City has a right to purchase the systems at the end of the Delivery Term, or upon earlier termination of the PPA for any reason other than default by the City. The purchase price will be determined based upon a third-party appraisal of the fair market value at the time of the exercise of the purchase option, subject to a contractual floor on the purchase price. The City has no obligation to exercise the purchase option, and in that case, Sunrun will remove the system.
Option to Extend Contract Term: At the end of the contract term, the City has the option to extend the PPAs for one or more five-year periods. Assignment and Financing Structure: Sunrun will initially sign each PPA.

Upon installation of the first solar and storage system of each Tranche and prior to interconnection of that system, Sunrun will assign the applicable PPA to a special purpose entity created by Sunrun. Sunrun will continue to develop new systems and transfer each system to that special purpose entity prior to interconnection of the applicable system. That special purpose entity may hold the Glendale VPP assets together with other solar and storage facilities developed by Sunrun outside of Glendale and/or not part of the Glendale VPP program. Each PPA will have its own separate special purpose entity assignee. After the tax equity investor receives its return with respect to a Tranche, the applicable PPA will be assigned again to another Sunrun- created special purpose entity (a different entity for each Tranche). Thus, each of the four PPAs will be assigned at least twice.
Security: Sunrun will provide the City with a letter of credit in the amount of $9,216,250 (one letter of credit for all four PPAs). The City may draw on the letter of credit for payment of daily delay damages, replacement energy liquidated damages, or other amounts owed by Sunrun to Glendale, including any unpaid termination payments, under each PPA in a total amount up to the product of the total security amount ($9,216,250) multiplied by the ratio of the benchmark capacity under the applicable PPA to 25.25 MW. If the Security is drawn down, the Security must be replenished by Sunrun to the full amount within five business days.

2.Master Interconnection Agreements
There will be four Master Interconnection Agreements (one for each PPA). The Master Interconnection Agreement sets forth the procedure for reviewing and approving applications for interconnection of each system (including specific deadlines to be met by the City); outlines the equipment that may be required to physically interconnect each system; and the rules, regulations, and requirements that govern installation, operation, and maintenance, and ultimately the disconnection, of those systems.
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Attached to the Master Interconnection Agreement is a form of certification to be made by Sunrun with respect to CEQA, which will be reviewed by the plan check vendor as part of the project application process.

3.Customer Acknowledgement Agreement
Attached to the Master Interconnection Agreement are forms of the Customer Acknowledgment Agreements (single family residence form and multi family residence form) between Sunrun and the participating customer that outlines the program and describes the customers’ participation in the VPP and both Sunrun’s obligations to the customer and customer’s responsibilities to Sunrun. The program is open to any single-family or multi-family property with an active GWP customer account.

4.Strategic Co-Marketing Agreement
There will be one Strategic Co-Marketing Agreement between Sunrun and Glendale governing the entire VPP (all four Tranches). The Strategic Co-Marketing Agreement outlines the plan for marketing the program, as well as intellectual property rights, data security, and data ownership.

GWP will incur certain internal costs associated with its marketing activities for the program. The amount to be budgeted for GWP’s marketing activities is within the City’s discretion; the estimated cost is included in the total estimated program cost. The agreement3 also covers GWP’s payment of electric utility bill credits to program participants, which is capped at $12.7 million for the duration of the program.

5.Professional Services Agreement - Plan Check Vendor
Sunrun anticipates installing approximately 2,273 solar and battery storage systems in Glendale over a four-year development term. The City’s ability to timely review and process plans and permits for the systems will be critical to the success of the program and essential for GWP to meet its obligations under the agreements. The City of Glendale Building & Safety Division currently does not have sufficient staff to manage such a large increase in permit volume over the VPP’s Development Term. Accordingly, the City would enter into a Professional Services Agreement with one or more plan check vendors to process the plans and permits. The estimated cost of this service is $1,587,980. This amount is included in the total estimated program cost. 3 The customer bill credit mechanism may be moved to the PPAs; under discussion by the parties. 35 of 57
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Regulatory Action
If the City Council elects to proceed with the Sunrun VPP program, the City Attorney’s Office will draft legislation for the Council’s consideration to exclude the Sunrun program from the City’s Feed-in-Tariff program and to allow for the credits on customer utility bills.

STAKEHOLDERS/OUTREACH
During the 2019 Integrated Resource Planning (IRP) process, GWP reached out to the community and stakeholders for input on community preferences for GWP’s power supply planning. The community feedback informed the 2019 IRP that was adopted by the City Council on July 23, 2019. The proposed VPP is one of the assets that was modeled and included in the 2019 IRP’s preferred portfolio. The VPP was also modeled and included as an available resource in the 100% Clean by 2030 Study that was presented to Council on March 30, 2021. An update on the proposed VPP was also presented to the City Council for public input on October 13, 2021.

FISCAL IMPACT
The total anticipated cost of the VPP program over 26 years is $219,374,542, broken down as follows: $200,572,383 for the VPP PPA contracts, $12,700,000 for customer bill credits, and $6,102,159 in internal GWP costs to cover distribution system upgrades/interconnections, marketing, IT integrations, and GWP and City permitting.

The staff will return with motion to award contract and the funding sources.

The estimated costs of the VPP from FY 2022 to FY 2027 are as follows:

FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 TotalContract 644,482$ 3,483,137$ 7,553,877$ 9,027,757$ 8,985,681$ 8,943,604$ 38,638,537$ Incentives 37,649$ 225,893$ 564,733$ 752,978$ 752,978$ 752,978$ 3,087,209$ GWP Internal Costs 150,000$ 885,404$ $991,510 $991,510 $991,510 $126,586 4,136,518$ Total 832,130$ 4,594,434$ 9,110,120$ 10,772,245$ 10,730,168$ 9,823,167$ 45,862,265$ Per the City Council’s direction, GWP retained a consultant to perform a new Electric COSA. That COSA, which is the subject of a separate City Council report for February 8, 2022, evaluated, among other things, the rate impact of the proposed VPP. Based the new COSA, a 7.7% system average4 rate increase would be needed over five years, starting in FY 2023 and ending in FY 2027, to cover the VPP cost and ensure GWP financial health going forward. Estimated system average annual rate increases for each of FYs 2023 through 2027 are as follows:
2023 2024 2025 2026 2027 Total 5-Year AvgEst. Rate Increases 0.8% 2.4% 1.3% 1.5% 1.6% 7.7% 1.5% 4 The system average rate increase is the rate increase averaged across all customer classes. The rate impacts for specific classes of customers (i.e. residential, commercial, industrial) would differ based upon the cost of service for each customer class.
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No additional rate impacts from the VPP are expected beyond FY 2027.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
On October 13, 2020, the City Council adopted a motion finding that its action, directing staff to negotiate contracts for a proposed VPP for City Council consideration, was exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 21080.33 of the California Public Resources Code and Sections 15061(b)(3), 15301 and 15302 of Title 14 of the California Code of Regulations. As stated in the October 13, 2020 Report to City Council: “the proposed VPP is statutorily exempt from CEQA pursuant to California Public Resources Code section 21080.33, which exempts the installation of solar energy systems on the roof of an existing building or parking lot from CEQA where the associated equipment is adjacent or onsite and occupies no more than 500 square feet, and where the project does not involve a federal Clean Water Act permit, streambed alteration permit, or removal of specific required or native trees.

All of the proposed Clean Energy Projects are categorically exempt from CEQA as a Class 1 exemption (operation, repair, permitting, leasing, licensing, or minor alteration of existing topographical features involving negligible or no expansion of use); and Class 2 (replacement or reconstruction of existing structure and facilities where the new structure will be located on the same site as the structure replaced and will have substantially the same purpose and capacity as the structure replaced). Moreover, the Clean Energy Projects are exempt under Section 15061(b)(3) of the State CEQA Guidelines which exempt projects `where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” If the VPP agreements are approved, then for each proposed installation, Sunrun will be required to submit a certification in the form attached to the Master Interconnection Agreement providing information that will allow the City to make an determination under CEQA as to each specific interconnected system.

CAMPAIGN DISCLOSURE
The names and business addresses of the members of the board of directors, the chairperson, CEO, COO, CFO, Subcontractors and any person or entity with more than 10% interest in the company proposed for contract in this Agenda Item Report are attached in Exhibit A, in accordance with the City Campaign Finance Ordinance No. 5744.

ALTERNATIVES
Alternative 1: Provide direction to staff regarding the proposed VPP Program and agreements. This direction may include, but is not limited to:
to present the final agreements to Council for consideration; to seek to negotiate modifications to certain terms or parameters of the agreements (to the extent Sunrun is willing to do so);
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to provide further information or conduct further evaluation regarding one or more aspects of the proposed VPP Program or the fiscal impacts thereof.

Alternative 2: Consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Submitted by:

Mark Young, General Manager – Glendale Water and Power
Prepared by:

Chie Valdez, Integrated Resource Planning Administrator Reviewed by:

Jason Bradford, Director of Finance
Michael J. Garcia, City Attorney
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
Exhibit A: City of Glendale Campaign Disclosure Form from Sunrun, Inc. 38 of 57

M O T I O N
Moved by Council Member ____________________________, seconded by Council Member ___________________________, that, having considered the February 8, 2022 staff report to City Council regarding the proposed Sunrun, Inc. residential virtual power plant program, the City Council provides the following direction:

Vote as follows:

Ayes:

Noes:

Absent:

Abstain
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DISCLOSURE – CITY OF GLENDALE CAMPAIGN FINANCE ORDINANCE

CONTRACTORS AND SUBCONTRACTORS
C
ontractor(s)*:

Name:___Sunrun Inc.______________________________________________________________________________ Address:___225 Bush Street, Suite 1400, San Francisco, CA 94104 __ Full Name Title Business Address City State Zip
Chairperson Ed Fenster
Lynn Jurich
Co-Chairperson
Co-Chairperson
225 Bush Street, Suite
1400
225 Bush Street, Suite
1400
San Francisco
San Francisco
CA
CA
94104
94104
Chief Executive
Officer / President
Mary Powell CEO 225 Bush Street, Suite
1400
San Francisco CA 94104
Chief Operating
Officer
Christopher Dawson COO 225 Bush Street, Suite
1400
San Francisco CA 94104
Chief Financial
Officer
Thomas
vonReichbauer
CTO 225 Bush Street, Suite
1400
San Francisco CA 94104
Board of
Directors
Edward Fenster
Ly
nn Jurich
M
ary Powell
Katherine August-
deWilde
Leslie Dach
Alan Ferber
Gerald Risk
Sonita Lontoh
Co-Executive
Chair
Co-Executive
Chair
Director
Director
D
irector
Director
Director
Director
225 Bush Street, Ste 1400
225 B
ush Street, Ste 1400
225 B
ush Street, Ste 1400
225 Bush Street, Ste 1400
225 B
ush Street, Ste 1400
225 Bush Street, Ste 1400
225 Bush Street, Ste 1400
225 Bush Street, Ste 1400
San Francisco
S
an Francisco
S
an Francisco
San Francisco
S
an Francisco
San Francisco
San Francisco
San Francisco
CA
C
A
C
A
CA
C
A
CA
CA
CA
94104
94104

94104

94104
94104

94104
94104
94104
More than 10%
interest owner
N/A
* “Contractor” is the person, entity, or organization that is the party, or prospective party, to the contract with the City, GSA, or HA. In addition to the name of the person, or entity, the Contractor must also disclose the name(s) of that person’s, entity’s, or organization’s Board of Directors, its Chairperson, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, any person with an ownership interest of more than ten percent (10%) in that person, entity, or organization, and any campaign committee that is owned or controlled by that person, entity, or organization. Please disclose these persons’ name and business address.

S
ubcontractor(s)**:

Name:_________________________________________________________________________________ Address:_______________________________________________________________________________ Full Name Title Business
Address
City State Zip
Chairperson
Chief Executive
Officer / President
Chief Operating
Officer
Chief Financial
Officer
Board of Directors
More than 10%
interest owner
** “Subcontractor” is the person, entity, or organization that has entered into a contract for the performance of all or a portion of the work undertaken under an agreement with an architect, design professional, engineer, or general or prime contract, usually by a general or prime contractor. You must also disclose the names of the Subcontractor’s Board of Directors, its Chairperson, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, any person with an ownership interest of more than ten percent (10%) in that person, entity, or organization, and any campaign committee that is owned or controlled by that person, entity, or organization. Above please disclose these persons’ name and business address.

EXHIBIT A
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Campaign Committee owned or controlled by:___________________________________________________

CERTIFICATION

On behalf of the above-named _X___ Contractor ___ Subcontractor:

• I acknowledge that I have a continuing obligation to update this disclosure form if I substitute― or if I select additional― architects, design professionals, contractors, or subcontractors within ten (10) days of the selection or change; and

• I hereby certify that:
 I have identified all persons for which the Ordinance requires disclosure;  The information in this disclosure form (and any attachment to this form) is true, accurate, correct, and complete; and
 I have been legally authorized to submit this disclosure form.

In total, this disclosure form (including attachments) is ___Two (2)______ pages.

Executed on:_November ______________, 2021, at: ____________________________, ________.

Signature: ____________________________________

Print Full Name: __Jeanna Steele__________________________________

Address: ___225 Bush Street, Suite 1400 ________________

San Francisco, CA 94104_____________________

E-mail Address: [email protected]________________

Phone Number: __415-580-6900_________________________

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8b

CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: 2022 Electric Cost of Service Analysis (COSA)

1. Motion providing direction to staff regarding the 2022 Electric Cost of Service Analysis.

COUNCIL ACTION
Item Type: Action
Approved for February 8, 2022 calendar

EXECUTIVE SUMMARY
The last electric rate plan was approved by the City Council in June 2018, which established a 5-year electric rate plan for GWP customers covering FY 2019 through FY 2023.

A number of key assumptions that informed the 2018 COSA and rate plan have changed significantly, and new investments have occurred, necessitating a new Electric Cost of Service Analysis and 5-year rate plan to keep the utility financially stable over the next five years for the period FY 2023 through FY 2027. Preliminary results from the new COSA show that at minimum GWP will need incremental total base rate increases of 9.3% over the five-year period. The incremental total base rate increases over the same period go to 17.0% if GWP is directed to enter into the currently- proposed contract for the Virtual Power Plant. These increases assume that the previously approved rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented, and the current cost adjustment charges are rolled into base rates. This report presents the results of the Electric COSA and seeks City Council direction regarding the plan.

COUNCIL PRIORITIES
Fiscal Responsibility: As financial stewards of the City of Glendale, all employees throughout the organization are tasked with operating their programs, projects and departments in a fiscally responsible manner.
Informed & Engaged Community: Earning and maintaining the public’s trust is by far one of the greatest priorities for the City. As such, City officials consistently strive to conduct the business of government in the best interests of the public with integrity, openness, and full inclusion of the community. 42 of 57
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Sustainability: In an effort to protect the quality of air, water, land and other natural resources located within the City’s boundaries, Glendale integrates sustainability principles into all elements of the City’s General Plan.

RECOMMENDATION
That the City Council provide guidance regarding the COSA and 5-year rate plan, including rate development and regarding community outreach so that GWP can finalize and present the new rate plan to the City Council in time for implementation at the start of the next fiscal year on July 1, 2022.

BACKGROUND
Glendale Water & Power (GWP) is committed to providing its customers with reliable and sustainable water and power services that are cost effective and innovative.

The last electric rate plan was approved by the City Council in June 2018. That plan established a 5-year electric rate schedule for GWP Customers with system average rate increases of 0.0%, 0.5%, 1.0%, 1.0% and 1.0% in Fiscal Years 2019, 2020, 2021, 2022 and 2023, respectively. In response to the COVID pandemic, City Council delayed the 2021, 2022, and 2023 rate increases by one year.

A number of assumptions that informed the 2018 COSA and rate plan have changed significantly such that a new COSA and 5-year rate plan are necessary to keep the utility financially stable over the next five years. These changes include:
Due in large part to the COVID pandemic, GWP’s load forecast is significantly lower than 2018 - lower loads put upward pressure on rates to recover fixed costs FY 2022 FY 2023 FY 2024 FY 2025 FY 20262018 COSA Load Forecast (MWh) 1,124,441 1,129,371 1,132,329 1,137,259 1,139,2312021 Load Forecast - Base Case (MWh) 992,167 999,835 1,005,999 1,009,981 1,010,827Difference -11.8% -11.5% -11.2% -11.2% -11.3% Higher Natural Gas and Power Purchase costs and lower than projected revenues have increased the cost adjustment charges
Grayson Repowering project has changed in terms of size, timing of construction, generation technology, and debt structure, lowering total project cost Projected cost of Scholl Canyon project increased from $35M to $50M ($26M paid from GWP restricted cash reserves)
Recent City Council directed Clean Energy Policies have required the purchase of new but higher cost clean energy resources:
oEland I Solar and Storage Project and Star Peak and Whitegrass Geothermal Project - new renewable energy power purchase contracts. oFranklin Demand Response and Lime Energy Efficiency Programs oThe proposed new Virtual Power Plant power purchase contract 43 of 57
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These changes have necessitated the development of a new COSA and 5-year rate plan to keep the utility financially stable over the next five years, FY 2023 to FY 2027. GWP has been working with NewGen Strategies and Solutions, LLC (NewGen) to develop the new COSA. The goal of the new COSA is to develop a new financial forecast including revenue requirements, recommended debt issuances, and design competitive rates consistent with Proposition 26 that would maintain GWP’s financial stability. The timeframe of the new COSA is FY 2023 to FY 2027. The initial analysis has been completed and results are as described below.

ANALYSIS
Glendale Water & Power Electric Rate Structure
The GWP Electric Rate Structure consists of two components: base rates and cost adjustment charges. The base rates reflect the majority, or the base costs of delivering electricity to customers. With exception of delaying the 2021, 2022, and 2023 base rate increases for one year, the base rates have not changed since the adoption of the last COSA in 2018.

The cost adjustment charges are used to manage the difference between projected costs in the most recent COSA and actual costs for specific GWP accounts, market conditions, and/or regulatory impacts. The GWP Electric Rates have three cost adjustment charges:
Regulatory Adjustment Charge (RAC) - adjusts for variance from projected regulatory compliance costs
Energy Cost Adjustment Charge (ECAC) - adjusts for variation from the projected costs of fuel and purchased power
Revenue Decoupling Charge (RDC) - adjusts for the differences between actual and projected sales volumes
The cost adjustment charges are adjusted administratively every six months based upon a City Council adopted formula that is fixed in the Electric Rate Ordinance.

The cost adjustment charges were zeroed out in the last COSA but have increased over the last three years. These increases were necessary to account for the significantly lower electric sales and higher natural gas and power purchase costs than were projected in the 2018 COSA. Though the RAC has remained at $0/kWh, the ECAC and RDC are currently set at $0.005/kWh and $0.0134/kWh, respectively. The current ECAC, RAC, and RDC cost adjustment charges are equal to a 10.2% base rate increase. If these cost adjustment charges were placed in base rates, the base rates would increase by 10.2%, but the ECAC, RAC, and RDC would be eliminated, thus a customer’s overall bill would remain unchanged as these charges are already included in customer bills. 44 of 57
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Forecast Scenarios
In the 2022 COSA, GWP has analyzed three scenarios for developing a new 5-year rate plan that would start in July of 2022. All scenarios assume that previously-approved rate increases are implemented as scheduled, and current cost adjustment charges are folded into base rates. The three scenarios evaluated in the 2022 COSA are:
The “Base Case” was developed to analyze whether additional base rate increases would be necessary to cover the cost of the proposed Grayson Repowering Project given the changes since the 2018 COSA. It assumes Alternative 7 of the EIR is implemented (93 MW of Wartsila Reciprocating Internal Combustion Engines, 50 MW of Battery Energy Storage (with 25 MW to be installed at a later time, not covered by this COSA)); and a later start date for the construction than was assumed in the 2018 COSA. Additionally, the Base Case factors in an increase in the estimated cost of the Scholl Canyon Biogas project from $35M to $50M, primarily due to inflation, supply chain constraints, and COVID pandemic related issues. Scenario 1 was developed to analyze what if any incremental total base rate increases above the Base Case would be necessary to cover the cost of previously-approved renewable energy power purchase contracts - Eland, Starpeak, and Whitegrass - in response to the City Council Clean Energy Policy directive. Scenario 2 was developed to analyze what if any incremental total base rate increases above Scenario 1 would be necessary to cover the cost of the previously approved Franklin Energy and Lime Energy programs, as well as the potential new Virtual Power Plant power purchase contract.

Assumptions - All Scenarios
Previously approved rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented
Current cost adjustment charges are rolled into base rates in FY 2023 (10.2% base rate increase, but 0.0% bill increase)
Grayson Repowering would be funded by a $389M Bond, with a 25-year term Scholl Canyon Biogas Project will be cash funded at a cost of $50M ($24M unrestricted cash, $26M restricted cash).
Meeting the preferred financial targets is necessary to preserve the financial health of the utility, an important factor evaluated by bond rating agencies.

Maintaining a minimum debt service ratio is also required by GWP’s existing bond covenants. To evaluate rate changes, each scenario targeted similar cash reserve and debt service coverage levels as were achieved in the 2018 COSA. The following preferred financial targets were assumed:
oDays’ Cash on Hand (DCOH) at or above 300
oDebt Service Coverage Ratio (DSCR) at or above 2.0
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Base Case Results
Table 1 below details the COSA results for the “Base Case” (EIR Alternative 7) which includes 93MW of Wartsila Engines and a 50MW Battery plus the 12.5MW Scholl Canyon Biogas Project. The primary purpose of running the Base Case scenario was to ascertain whether incremental base rate increases would be necessary to complete the Grayson Repowering and Scholl Canyon Biogas Projects given delay in construction, change in generation technology, and updated debt structure since the 2018 COSA was developed.

As Table 1 shows, at the end of FY 2027, GWP is projected to have 311 Days’ Cash on Hand, and a Debt Service Coverage Ratio of 1.96. Thus no additional rate increases would be necessary to meet GWP’s financial health through FY 2027. That said, it is important to note that GWP will most likely need another 4.0% rate increase in FY 2028 to maintain financial stability.

TABLE 1
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027Revenues $222,202,880 $227,102,331 $229,175,237 $230,557,627 $231,817,562Revenue Requirement $206,689,968 $238,487,012 $278,611,466 $238,055,000 $242,733,710Over (under) Collection $15,512,912 ($11,384,681) ($49,436,229) ($7,497,373) ($10,916,148)DCOH (Maintain current ECA/RAC/RDC) 513 483 352 336 311DSCR (Maintain current ECA/RAC/RDC) 2.21 2.37 2.04 2.06 1.96 Incremental Base Rate Increase Needed1,2 0.0% 0.0% 0.0% 0.0% 0.0%DCOH After Rate Increase 513 483 352 336 311DSCR After Rate Increase 2.21 2.37 2.04 2.06 1.961Assumes previously approved base rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented.2Current cost adjustment charges are rolled into base rates in FY 2023. (10.2% base rate increase, but 0.0% total bill increase).

Scenario 1 Results
Table 2 below details the COSA results for Scenario 1 which includes the Base Case (EIR Alternative 7) plus the new Eland, Starpeak, and Whitegrass renewable energy contracts. Scenario 1 was developed to ascertain the incremental rate impacts from the new renewable energy contracts that have been entered into since the 2018 COSA was developed. It should be noted that costs associated with the new renewable energy contracts are considered sunk costs as these contacts have already been approved and are being implemented.

As Table 2 shows, a one-time additional increase of 5.0% will be needed in FY 2023 to cover the sunk costs associated with the new renewable energy contracts to meet our financial targets. With the 5.0% increase, GWP’s financial health is maintained. At the end of FY 2027, GWP should have 297 Days’ Cash on Hand, and a Debt Service Coverage Ratio of 2.44. Without the 5.0% incremental base rate increase in FY 2023, GWP’s Days Cash on Hand will drop well below 300 to 223, and its Debt Service Coverage Ratio will drop to 1.64, well below the 2.0 financial target.
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TABLE 2
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027Revenues $222,202,880 $227,102,331 $229,175,237 $230,557,627 $231,817,562 Revenue Requirement $211,355,949 $245,638,965 $285,988,611 $245,922,128 $251,656,040 Over (under) Collection $10,846,931 ($18,536,634) ($56,813,374) ($15,364,500) ($19,838,478)DCOH (Maintain current ECA/RAC/RDC) 479 421 290 261 223DSCR (Maintain current ECA/RAC/RDC) 2.05 2.11 1.78 1.78 1.64 Incremental Base Rate Increase Needed1,2 5.0% 0.0% 0.0% 0.0% 0.0%DCOH After Rate Increase 457 406 298 300 297DSCR After Rate Increase 2.21 2.43 2.2 2.42 2.441Assumes previously approved base rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented.2Current cost adjustment charges are rolled into base rates in FY 2023. (10.2% base rate increase, but 0.0% total bill increase).

Scenario 2 Results - Full CEP
Table 3 below details the COSA results for Scenario 2 which includes Base Case (Grayson EIR Alternative 7), Scenario 1 (the new renewable energy contracts) and the full Clean Energy Program (Franklin, Lime, and the Virtual Power Plant).

As Table 3 shows, incremental base rate increases totally 17.0% will be necessary to maintain GWP’s financial health, 7.0% in FY 2023, 4.0% in FY 2024, and 2.0% in FY 2025, FY 2026, and FY 2027. With these increases, GWP is projected to have 281 Days’ Cash on Hand, and a Debt Service Coverage Ratio of 2.36 at the end of FY 2027. Without the incremental base rate increases, GWP’s Days’ Cash on Hand will drop to a perilously low 82 days, and its Debt Service Coverage Ratio will drop to 1.02, which is below the minimum required by GWP’s bond covenants.

TABLE 3
FY 2023 FY 2024 FY 2025 FY 2026 FY 2027Revenues $220,692,692 $224,379,701 $225,256,339 $225,442,473 $225,382,363 Revenue Requirement $218,809,021 $256,988,425 $298,508,834 $256,769,943 $262,199,789 Over (under) Collection $1,883,671 ($32,608,723) ($73,252,495) ($31,327,470) ($36,817,426)DCOH (Maintain current ECA/RAC/RDC) 433 345 197 145 82DSCR (Maintain current ECA/RAC/RDC) 1.73 1.61 1.18 1.2 1.02 Incremental Base Rate Increase Needed1,2 7.0% 4.0% 2.0% 2.0% 2.0%DCOH After Rate Increase 454 400 289 287 281DSCR After Rate Increase 2.14 2.36 2.12 2.34 2.361Assumes previously approved base rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented.2Current cost adjustment charges are rolled into base rates in FY 2023. (10.2% base rate increase, but 0.0% total bill increase). 47 of 57
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Summary of Forecast Scenarios and Impacts
This section summarizes the minimum and maximum projected incremental base rate increases that will be necessary to maintain GWP’s financial stability over the next five years based on the above scenarios.

Table 4 below details the minimum incremental total base rate increases needed if City Council decides not to go forward with the proposed Virtual Power Plant.

As Table 4 shows, a 5% incremental increase will be needed in FY 2023 to cover the sunk cost of the previously approved renewable energy contracts, plus an additional

1.2% in FY 2023, 1.6% in FY 2024, 0.7% in 2025, 0.5% in 2026, and 0.4% in 2027 for a total incremental base rate increase of 9.3% over the next five years.

TABLE 4
Grayson, Battery, Scholl
New Renewable Energy Contracts (Approved)
Franklin DR and Lime EE Programs (Approved)
Total Base Rate Increases1,2
FY 2022-2023 0.0% 5.0% 1.2% 6.2%FY 2023-2024 0.0% 0.0% 1.6% 1.6%FY 2024-2025 0.0% 0.0% 0.7% 0.7%FY 2025-2026 0.0% 0.0% 0.5% 0.5%FY 2026-2027 0.0% 0.0% 0.4% 0.4%Total 0.0% 5.0% 4.3% 9.3%1Assumes previously approved base rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented.2Current cost adjustment charges are rolled into base rates in FY 2023. (10.2% base rate increase, but 0.0% total bill increase).

Table 5 below details the maximum total incremental base rate increases needed assuming City Council decides to go forward with the proposed Virtual Power Plant contract. In addition to the annual increases described in Table 4 above, GWP will need additional incremental base rate increases of 0.8% in FY 2023, 2.4% in FY 2024, 1.3% in 2025, 1.5% in 2026, and 1.6% FY 2027 for a total projected incremental base rate increase of 17.0% over the next five years. It should be noted that no additional incremental base rate increases will be needed beyond FY 2027 to cover the costs of the Virtual Power Plant.
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TABLE 5
Grayson, Battery, Scholl
New Renewable Energy Contracts (Approved)
Franklin DR and Lime EE Programs (Approved)
Virtual Power Plant (Proposed)
Total Base Rate Increases1,2
FY 2022-2023 0.0% 5.0% 1.2% 0.8% 7.0%FY 2023-2024 0.0% 0.0% 1.6% 2.4% 4.0%FY 2024-2025 0.0% 0.0% 0.7% 1.3% 2.0%FY 2025-2026 0.0% 0.0% 0.5% 1.5% 2.0%FY 2026-2027 0.0% 0.0% 0.4% 1.6% 2.0%Total 0.0% 5.0% 4.3% 7.7% 17.0%1Assumes previously approved base rate increases of 1.0% in FY 2023 and 1.0% in FY 2024 are implemented.2Current cost adjustment charges are rolled into base rates in FY 2023. (10.2% base rate increase, but 0.0% total bill increase).

Additional Considerations that Could Impact COSA Results Delaying rate increases later in the planning period than shown will further increase the base rates
Any further decline in load/kWh sales from what is estimated in the COSA will put further upward pressure on rates and the current rate recommendations Should load/kWh sales increase from what is estimated in the COSA, the RDC will be used to lessen the projected rate impacts
These results summarize system average base rate increases, customer class rate increases will vary
Next Steps
Finalize COSA based on City Council Direction
Develop new base rates
Develop new special rates, such as:
oFeed in Tariff - Standard price offered to pay producers of renewable power for the power that the producer feeds into the grid oTime of Use - Rates based on the time of day and the season oCustomer Cogeneration - Rate for the interconnection and operation of customer owned, on-site extended parallel distributed generation system oNet Energy Metering (NEM) “Successor” - As proposed by the CPUC, NEM successor tariff would include an export compensation rate that is based on the avoided cost values provided by behind-the-meter resources, and import rates that will encourage electrification and solar- plus-storage
oGreen Tariff Rate - allows eligible customers to source up to 100% of their electricity from renewable resources
oElectric Vehicle (EV) Rate - special rate plan to encourage EV owners to charge vehicles during off peak hours
Hold Community Meetings
Bring final COSA and rate schedules to City Council for consideration in May 2022
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STAKEHOLDERS/OUTREACH
Not applicable.

FISCAL IMPACT
None at this time.

ENVIRONMENTAL REVIEW (CEQA/NEPA)
Not applicable.

CAMPAIGN DISCLOSURE
Not applicable.

ALTERNATIVES
Alternative 1: Adopt Motion providing direction to staff. This direction may include a plan for community outreach and rate development.

Alternative 2: Consider any other alternative not currently proposed by staff.

ADMINISTRATIVE ACTION
Submitted by:

Mark Young, General Manager - Glendale Water and Power
Prepared by:

Craig Kuennen, Assistant General Manager - Business Services Reviewed by:

Michael J. Garcia, City Attorney
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS / ATTACHMENTS
None.
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M O T I O N
Moved by Council Member ____________________________, seconded by Council Member ___________________________, that, having considered the February 8, 2022 staff report to City Council regarding the Electric Cost of Service Analysis, the City Council provides the following direction:

Vote as follows:

Ayes:

Noes:

Absent:

Abstain
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CITY OF GLENDALE, CALIFORNIA

REPORT TO THE CITY COUNCIL

AGENDA ITEM
Report: Appropriating funds for the General Municipal Election to be held on Tuesday, June 7, 2022
1) A Resolution of Appropriation in the amount of $502,533 for the June 7, 2022 General Municipal Election

COUNCIL ACTION
Item Type: Action Item
Approved for February 8, 2022 calendar

EXECUTIVE SUMMARY
This report and corresponding resolution are to appropriate funds for the General Municipal Elections on June 7, 2022.
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COUNCIL PRIORITIES
Informed and Engaged Community: Transparency, open government, and able to easily access public information.

RECOMMENDATION
It is recommended that the City Council approve a resolution relating to the appropriation in the amount of $502,533 for the June 7, 2022 General Municipal Election for (3) three City Council seats, (1) City Treasurer seat, and (1) City Clerk seat.

BACKGROUND
To comply with State law, in 2018, the City Charter was amended by the voters to change municipal election dates from April of odd-number to even- number years by consolidating with Statewide Primary elections starting in March of 2020. Both Glendale Unified School District (GUSD) and the Glendale Community College District (GCC) both adopted similar requirements so that all three agencies would hold their elections with the upcoming Statewide Primary Election in 2020.

Senate Bill 970 made it so that presidential primary elections would remain in March of even numbered years (EC 1000(a)), but moved gubernatorial primary elections to June of even numbered years (EC 1000(d)). Accordingly, the general municipal election date also changed from March of even numbered years to June of even numbered years.

Additionally, both GUSD and GCC Boards have adopted resolutions calling for an election for their bodies to be held on June 7, 2022. Both agencies have also requested that the office of the Glendale City Clerk act as the filing officer for candidate filings.

ANALYSIS
The County estimates the cost based on the following estimated statistics: 113,650 registered voters of whom 80,024 are permanent vote by mail voters. Over 90% of the cost is marked as Election Preparation, Election Operations, and Vote by Mail Processing.

The City will have staff on premises to assist candidates and voters with questions regarding the ballot and the changes in the voting systems. Additionally, the City Clerk's office will continue to work with the County to identify locations for vote centers and work with community groups and organizations to secure accessible and suitable spaces to serve the voters' needs in Glendale.

STAKEHOLDERS/OUTREACH
The City Clerks Department will publish and will make staff available to answer questions and concerns and provide information to the stake holder. Additionally, the pertinent information will be posted on social media and utility bill inserts. 53 of 57
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FISCAL IMPACT
According to the Manager of Fiscal Operations in the Los Angeles County Registrar- Recorder's office, the approximate cost for the City of Glendale June 7, 2022 election is $509,919. Staff also estimates approximately $140,000 dollars for advertising, postage, labor charges, and the local election filing cost assistance program, bringing the total approximate cost to $649,919, of which only $147,386 was approved as a part of the FY 2021-2022 budget. Therefore, staff is requesting an appropriation of $502,533 from the General Fund Undesignated Fund Balance. The existing appropriation and the requested appropriation is outlined below:

Existing Appropriation
Amount Account String Funding Source
$33,090 GL: S&B-1010-CCD-1500-P0000 General Fund
$114,296 GL: M&O-1010-CCD-1500-P0000 General Fund
Requesting Appropriation
Amount From (Account String ) To ( Account String ) Funding Source $502,533 25300-1010-000 43110-1010-CCD-1500-
P0000
General Fund –
Undesignated
Fund Balance

ENVIRONMENTAL REVIEW (CEQA/NEPA)
This item is exempt from CEQA. It is not a project and there is no reasonable likelihood that it will result in any significant impacts to the environment.

CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.

ALTERNATIVES
Alternative 1: The City Clerk recommends that the City Council approve a resolution of appropriation in the amount of $502,533 for the June 7, 2022.

Alternative 2: The City Council may consider any other alternative not proposed by staff.

ADMINISTRATIVE ACTION
Prepared by:

Aram Adjemian, City Clerk
Approved by:

Roubik R. Golanian, P.E., City Manager

EXHIBITS/ATTACHMENTS
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1.) City of Glendale General Municipal Election Estimate Cost Sheet. 55 of 57
RESOLUTION NO. ___________

RESOLUTION OF THE COUNCIL OF THE CITY OF GLENDALE

MAKING AN APPROPRIATION

BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GLENDALE:

SECTION 1: That the sum of $502,533 is hereby appropriated and/or transferred from the following accounts to the following accounts:

ACCOUNTS DESCRIPTION FROM TO

25300-1010-000

43110-1010-CCD-1500-P0000-
T0000-F0000-0000-

Undesignated Fund Balance, General Fund

Contractual Services, General Fund, City
Clerk Department, Elections

$502,533

To appropriate funding for the June 7, 2022 Election.

SECTION 2: The Director of Finance is authorized to make such other revisions, individual appropriation line-items, changes in summaries, fund totals, grand totals, and other portions of the budget document as necessary to reflect and implement the changes specified in this resolution.

SECTION 3: The City Clerk shall certify to the adoption of this Resolution.

Adopted this________day of _______________, 2022.
_______________________________
Mayor
ATTEST:

02/03/2022
___________________________________
City Clerk 502,533

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

CITY OF GLENDALE )

I, Aram Adjemian, City Clerk of the City of Glendale, do hereby certify that the foregoing Resolution No._________was adopted by the Council of the City of Glendale, California, at a regular meeting held on the__________ day of _______________, 2022, and that the same was adopted by the following vote:

Ayes:

Noes:

Absent:

Abstain:
________________________________
City Clerk
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Glendale City CouncilFebruary 8, 2022

Glendale City Council
February 8, 2022