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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Appropriation of Funds from Glendale Water & Power Fund Balance.
1. Resolution of Appropriation
COUNCIL ACTION
Item Type: Consent Calendar
Approved for January 23, 2024 calendar
EXECUTIVE SUMMARY
On November 14, 2023, the City Council adopted Resolution No. 23-176 and No. 23-177 authorizing the City to enter into and execute a contract with ARB, Inc. (ARB) and Wartsila North America, Inc. (Wartsila), respectively, to implement the Grayson Repower Project (Project).
In so doing, a not-to-exceed total Project cost, including contingencies, of $523,809,170 was approved dependent upon adoption of the new electric rate plan and the City Manager’s determination that the rate plan and bond financing for the project will be sufficient to pay for both contracts.
On November 28, 2023, Glendale Water and Power’s (GWP) new electric rate plan ordinance was approved and adopted by the City Council.
On January 9, 2024, GWP’s bond ordinance was approved and adopted by the City Council.
In order to proceed with being able to fund the construction Project, an appropriation of the entirety of the Project cost must be approved. This requirement is considered administrative in nature but necessary for prudent internal accounting controls.
RECOMMENDATION
Approve the Resolution of Appropriation.
ANALYSIS
This effort is strictly administrative in nature. In accordance with prudent internal accounting controls and following approval of both the Project and the bond ordinance, it is proper to appropriate the funds for the Project.
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STAKEHOLDERS / OUTREACH
Not applicable.
FISCAL IMPACT
The Grayson Repower Project, incorporating contracts with ARB, Inc. and Wartsila North America, Inc., represent a not-to-exceed total project cost, including contingencies, of $523,809,170, of which $419,558,683 was not included as a part of the FY 2023-24 adopted budget. Therefore, staff is requesting an appropriation of $419,558,683 from the Electric Surplus Fund Balance. The appropriation request is outlined below:
For ARB
Requesting Appropriation
Amount From (Account String) To (Account String) Funding Source $351,887,800 GL: 27900-5810-GWP-
0000
GL: 43110-5830-
GWP-0020-P0000-
PL: GWP00171CN
Net Position,
Electric Surplus
Fund Balance
For Wartsila
Requesting Appropriation
Amount From (Account String) To (Account String) Funding Source $67,670,883 GL: 27900-5810-GWP-
0000
GL: 43110-5830-
GWP-0020-P0000-
PL: GWP00170BN
Net Position,
Electric Surplus
Fund Balance
ENVIRONMENTAL REVIEW
This item is considered a ministerial activity and is not a project for the purposes of California Environmental Quality Act (CEQA) and therefore, not subject to CEQA review.
CAMPAIGN DISCLOSURES
Not applicable.
ALTERNATIVES TO STAFF RECOMMENDATION
Alternative 1: Not to authorize the requested appropriation, which will result in the inability to fund the Grayson Repower Project agreements with Wartsila and ARB.
Alternative 2: Consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Mark Young, General Manager - Glendale Water and Power
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Prepared by:
Scott Mellon, Assistant General Manager - Power Management Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS / ATTACHMENTS
None.