8 CONTRACTOR will operate Local route bus services as specified by CITY and in strict accordance with the operating days and hours, routes and schedules set forth in the current ROSEVILLE TRANSIT bus service guides or any revisions thereto, and shall provide such service in a safe, professional and courteous manner.
Notwithstanding the above, CONTRACTOR is hereby authorized to deviate from established routes when necessary to avoid construction, detours, and vehicles or other obstructions within the public right of way.
CONTRACTOR shall notify CITY of such obstruction caused deviation(s) as soon as is practicable upon learning that the deviations are or may become necessary via a Communication Log or phone call if the concern presents any liability to the CITY.
In the event that a ROSEVILLE TRANSIT route operates more than fifteen (15) minutes behind schedule, CONTRACTOR shall notify the City of the incident as needed but no later than 24 hours after the occurrence of the event. If a route/trip is combined or cancelled, CONTRACTOR shall notify the City within one (1) hour of the cancellation or combining of routes. The CONTRACTOR shall take all necessary steps to restore all service and on‑time performance as soon as operationally feasible.
CONTRACTOR shall establish procedures, subject to CITY review and approval, to restore said service and on‑time performance.
2.9 Operations – Microtransit and Paratransit
ARROW Microtransit service shall be operated in accordance with the operating days, hours and service area set forth in the current ROSEVILLE TRANSIT bus service guides attached hereto as Attachment F or any revisions thereto. Microtransit operations will be provided from “curb-to-curb” for the general public and
“door-to-door” service for Paratransit patrons when required per FTA guidelines. CONTRACTOR shall comply with 49 CFR Part 37 regarding ADA Paratransit Service standards as they apply to the Paratransit function of the Microtransit Service.
CONTRACTOR shall respond to telephone requests for Microtransit service on a “real-time” demandresponse basis in accordance with CITY service standards stated herein below.
CONTRACTOR shall also accept telephone requests for advance reservations made the prior day and up to fourteen (14) days in advance for passengers who meet ADA criteria. Advance reservation trips shall be given scheduling priority over real-time demand response trips. Reservation priority shall, if necessary to comply with required ADA paratransit criteria, be given to individuals who have proof of ADA paratransit service eligibility.
CONTRACTOR shall also accept “subscription or re-occurring service” reservations (provision of repetitive trips over an extended period time without requiring that individuals call to request reservations for each trip); however, the level of subscription service provided shall not exceed fifty percent (50%) of the total number of trips available during a given hour of the day. Documentation shall be included with the monthly reports.
CONTRACTOR is authorized to have only as many vehicles in Microtransit or Paratransit service at a given time as service demand requires.
9 2.10 Operations - Special Event, Promotional, and Other Special Services In addition to regular ROSEVILLE TRANSIT operations, CONTRACTOR may from time to time, upon receiving specific written authorization by CITY, provide, special event, promotional, or other special transportation services within the ROSEVILLE TRANSIT service area using CITY transit vehicles, provided that such services are determined by CITY to be in the public interest, do not interfere with regular ROSEVILLE TRANSIT operations, and are in compliance with applicable federal and state statutes.
CONTRACTOR may not use CITY transit vehicles for other services without prior authorization from the CITY.
CONTRACTOR shall be entitled to compensation for such services at the normal rate per vehicle service hour specified in the AGREEMENT. For special events, promotional and other services, a vehicle service hour shall be defined as any hour, or portion of an hour, that a vehicle is available for service from first pickup to last drop off. The CONTRACTOR shall be paid a minimum of 2 hours per special service request regardless of the length of the service.
2.12 Service Standards – General
CONTRACTOR shall strive at all times to provide service in a manner that will maximize productivity and at the same time emphasize quality customer service. Recognizing that the goals of productivity and service quality may conflict at times, the following standards are intended to be reasonably attainable by CONTRACTOR, fair to the customer and consistent with CITY expectations.
CONTRACTOR and CITY shall periodically meet to evaluate performance of the system based upon these standards. If the standards are not fulfilling their intended purpose, they shall be adjusted based upon recommendations made by CONTRACTOR with concurrence and final decision by CITY. Should it be found that CONTRACTOR’S performance has contributed to CONTRACTOR’S failure to achieve these standards, CONTRACTOR shall take all reasonable actions requested by CITY to correct deficiencies in performance. Should deficiencies persist, CITY may take whatever additional action is necessitated by the circumstances and provided for in the AGREEMENT of which this Scope of Work is a part.
CONTRACTOR should anticipate possible modifications to these standards following the update of the CITY’S Short Range Transit Plan in 2024/2025 and in future plan updates.
2.13 Service Standards – Local Route, Commuter Service and Extended Commuter service (such as Game Day Express
• Schedule Reliability: A minimum of ninety-five percent (95%) of bus departures will be within one minute before to 5 minutes after the scheduled time as indicated by published timetables. This standard applies to each time listed in the bus services guides, which also define the start and end times of all routes.
• Missed Trips: Less than one percent (1%) of scheduled departures from a route terminal will be a missed trip. A trip is defined as a route which is departing the Corporation Yard to begin service. A missed trip occurs when a scheduled departure is canceled, or when a bus departs more than 15 minutes after the expected departure time from the Yard due to the fault of the CONTRACTOR.
10 2.14 Service Standards – Microtransit and Paratransit The CONTRACTOR shall ensure that Arrow Microtransit and Paratransit routes are running as productive as possible while in revenue service. Local Dispatchers shall monitor the routes in service on a continuous basis throughout the operating day A. Demand Response Wait Time (the elapsed time between a “real time” demand response service request and passenger pickup:
1) 90% of passengers (ADA and non-ADA) will be picked up within their 30-minute window; and,
2) 100% of passengers will be picked up within 45 minutes.
B. Ride Time (the elapsed time between passenger pickup and drop off):
1) 75% of passengers dropped off within 45 minutes; and, 2) 100% of passengers dropped off within 60 minutes.
C. Missed Trips
1) Missed Trips: Less than one percent of Microtransit trips, either demand-response or advance reservation, shall be missed trips. For Microtransit service, a missed trip is defined as any trip in which the vehicle fails to arrive within 30 minutes before or after the recorded reservation time.
D. Service Refusals (ADA): For reservation requests made by individuals who possess valid ADA paratransit eligibility certification, there will be no service refusals. A service refusal is defined as failure to make a reservation because service could not be provided within one hour of the requested reservation time. This standard will not apply to same-day ADA requests.
2.15 Service Standards - Special Event, Promotional and Other Special Services There will be no missed Special Service trips. A missed special Service trip occurs when the vehicle fails to arrive by the time promised for any segment of the special event .
2.16 System Safety Standard
Miles between all accidents to be greater than one per 25,000 miles, average. Miles between preventable accidents to be greater than one per 50,000 miles, average.
2.17 Operations Personnel
The CONTRACTOR shall provide all management, supervision, training, drivers, dispatchers, clerks, service workers, electrical/mechanical technicians, and such other personnel necessary to responsibly operate ROSEVILLE TRANSIT.
11 For purposes of this AGREEMENT, the terms “employee(s)” and “personnel” shall include individuals employed by subcontractors that perform any of the ROSEVILLE TRANSIT vehicle operations or related functions.
2.18 Project Management
CONTRACTOR shall designate and provide the services of an on-site General Manager, subject to the approval of CITY, who shall provide overall management and supervision of ROSEVILLE TRANSIT public transit operations under the terms of this AGREEMENT. At the time of service start-up, the designated on-site General Manager must meet the following minimum requirements:
• Has a proven, successful work history in situations similar to those contemplated in this RFP, (include resume);
• Has at least five (5) years of transportation management experience of which two (2) years must be in Public Transit;
• Holds the equivalent of a bachelor’s degree from a four (4) year college in a related field (however each year of management experience in a related transportation industry beyond the required minimum years of experience listed above may substitute for each year of college); • Has managerial and supervisory experience in public or private agencies; and, • Has had direct supervisory responsibility for all facets of a public transit operation.
The General Manager shall work cooperatively with CITY in matters relating to service quality, providing operational and other data as described in this Scope of Work, responding to comments from the CITY, passengers and the general public, and responding to specific requests for other assistance as the need arises.
CONTRACTOR shall assure CITY that the General Manager designated for this project will not be replaced without the prior written consent of CITY. Should the services of the General Manager become no longer available to CONTRACTOR, the résumé and qualifications of the proposed replacement shall be submitted to CITY for approval as soon as possible, but in no event later than five (5) working days prior to the departure of the incumbent General Manager, unless CONTRACTOR is not provided with such notice bythe departing employee. CITY will respond to CONTRACTOR within three (3) working days following receipt of these qualifications concerning acceptance or rejection of the candidate for replacement General Manager. CITY may require an interview of the proposed candidate(s) before an acceptance or rejection decision is made.
At all times, the General Manager or other employee pre-designated and identified to the CITY to act for the General Manager, shall be available either by phone or in person to make decisions regarding day‑to‑ day ROSEVILLE TRANSIT operations, including emergency situations, or to provide coordination as necessary, and shall be authorized to act on behalf of CONTRACTOR regarding all matters pertaining to this Scope of Work.
2.19 Employee Selection and Supervision
CONTRACTOR shall provide operations management at a level and capability sufficient to oversee its functions and employees.
12 CONTRACTOR shall be responsible for the employment and supervision of all employees necessary to perform ROSEVILLE TRANSIT operations. CONTRACTOR responsibilities shall include employee recruitment, screening, selection, training, supervision, employee relations, evaluations, retraining and CONTRACTOR employee discipline, including but not limited to termination. CONTRACTOR shall provide an annual list of employee turnover to City.
CONTRACTOR shall use appropriate screening and selection criteria in order to employ operations personnel. The CONTRACTOR shall perform normal employment, DMV and criminal background checks, pre-employment drug screens and physicals of all employees associated with this agreement and shall undertake the steps necessary to assure that all such employees perform their duties in a safe, legal, courteous, and professional manner at all times.
CONTRACTOR shall develop, implement and maintain an employee alcohol and substance abuse testing program, subject to CITY approval, for all employees in safety‑sensitive positions including personnel engaged in the operation, servicing and control of CITY transit vehicles and equipment. Such program will comply with all applicable requirements as established by the Federal Transit Administration and by other federal or state agencies, including regulations promulgated to implement the Omnibus Transportation Employee Testing Act of 1991, as it may be amended from time-to-time.
CONTRACTOR shall at all times comply, and shall require subcontractors to comply, with applicable state and federal employment laws, including Section 1735 of the California Labor Code and Title VI of the Civil Rights Act of 1964, as amended.
The CITY shall have the right to ask the CONTRACTOR to remove an employee from Roseville City service. This decision will be made under the sole discretion of CITY personnel.
Nothing in this section shall be construed by either CONTRACTOR or CITY to be in conflict with the language and intent of Article 4, Independent Contractor, of the AGREEMENT of which this Scope of Work is a part.
2.20 Bi-Lingual Personnel and Training
CONTRACTOR shall make every effort to reasonably recruit bi-lingual personnel for driver, dispatcher, and supervisor positions. CONTRACTOR shall implement within 120 days after the start of the contract term, a keyword/key-phrase training and proficiency testing program to assist all operating personnel to learn simple phrases to assist them in communicating fares and directions to Limited English Proficiency (LEP) transit system users as identified in the City of Roseville Title VI Program Language Assistance Plan, as may be updated periodically. CONTRACTOR shall provide a laminated sheet of English translations for common phrases used by LEP transit passengers for transit vehicle operators. CONTRACTOR will comply with CITY specified Title VI goals.
2.21 Training – General
CONTRACTOR shall provide training for all personnel employed through this AGREEMENT. It is the sole responsibility of CONTRACTOR to ensure that all drivers are fully knowledgeable of their duties and responsibilities and can operate a Local Routes, Commuter or Paratransit vehicles in a safe and efficient manner. To accomplish this, CONTRACTOR shall develop, implement and maintain a formal training and retraining program that shall be subject to review and approval by CITY. An outline of the
13 training program, including required annual updates, shall be on file in the offices of the CITY Alternative Transportation Division. All drivers, dispatchers, and supervisors shall participate in the program.
CONTRACTOR shall ensure ongoing training is complete for all personnel regarding the fundamentals of excellent customer service; sensitivity training; ADA training; driver rules; accident/incident policies; radio policies and procedures; inclement weather policy; vehicle inspection, care and maintenance policy and procedures, reporting procedure and pertinent sample forms. CONTACTOR shall provide to the CITY on a quarterly basis that said training is being accomplished.
2.22 Training – Driver
In addition to the requirements stated in 2.21, the CONTRACTOR shall implement and maintain a specific training and retraining program for all drivers. The program must provide a fixed minimum number of hours of training for new employees, including classroom instruction, Behind the Wheel (BTW) and Cadet training under the supervision of a certified instructor. The program shall include, but not limited to, instruction covering applicable laws and regulations and defensive driving practices, disabled passenger assistance techniques, accident/incident procedures, radio procedures, ROSEVILLE TRANSIT operating policies and procedures, employee work rules, vehicle safety inspection, equipment care, driver fueling/electrical charging and maintenance responsibilities, customer relations and passenger conduct.
Drivers shall be trained to operate all types of buses, wheelchair lifts and securement systems, and other equipment that they may be expected to use in the ROSEVILLE TRANSIT services.
At a minimum, all drivers shall be certified as having completed CONTRACTOR’S formal training course for new drivers as approved by CITY, and be licensed with a valid California Class B operator’s license with appropriate endorsements or certification(s) and medical card. All Drivers shall possess a Verification of Transit Training (VTT) Bus Certificate as issued by the State of California Department of Motor Vehicles, pursuant to Section 12804.6 of the California Vehicle Code. Drivers shall meet all applicable requirements as established by the California Highway Patrol. The VTT certification must be renewed in accordance with the CVC for a driver to stay in service.
2.23 Driver Responsibilities
CONTRACTOR will, when requested by CITY, have its’ employees hand out notices to passengers or otherwise render assistance with ROSEVILLE TRANSIT customer relations, promotion, marketing, monitoring and supervisory functions by date requested by the CITY. CONTRACTOR employees will be required to honor special passes; collect, cancel and/or validate passes, tickets and coupons; and issue and collect transfers, day passes, and other fare media, as determined by CITY. CONTRACTOR employees will verify cash fares deposited in each farebox, and will not allow drivers to handle money.
CONTRACTOR employees will record ridership counts by passenger category and boarding location in accordance with procedures approved by CITY.
When requested, drivers of vehicles will provide passenger assistance to persons who request help, including, but not limited to, boarding and alighting assistance. Drivers shall not be required to lift or carry passengers, bicycles, packages or any items which may cause injury. However, drivers of the Microtransit and Paratransit service will provide assistance to persons with disabilities in loading and unloading of small packages.
14 CONTRACTOR shall tune clocks in operations office to the atomic clock in Colorado. Atomic time is available on-line at www.time.gov/timezone.cgi/Pacific/d/-8/java. Drivers shall have available at all times during operation of any bus an accurate time piece with active second hand (or digital equivalent), set each day to conform to atomic time.
2.24 Driver Rules
At a minimum, CONTRACTOR’S employees must comply with the following rules for its drivers to uphold ROSEVILLE TRANSIT safety and customer service standards. • No employee will be permitted to smoke, vape or use any tobacco products within fifty (50) feet of a bus or bus stop.
• No employee will be permitted to eat, or otherwise consume any food or snack products aboard buses or light-duty vehicles at any time while in revenue service. If an employee consumes any food products while in a relief vehicle, they are expected to clean up when done. • No employee shall consume beverages aboard the bus except water, coffee, or soda, and ONLYin containers with hard covers that will not spill if tipped over. • No employee shall utilize any device that plays music or amplifies sound aboard buses, including AM/FM radio, phones or other devices.
• No employee, at any time, shall use personal cellular telephones, pagers, or other communication devices, outside of break or mealtimes. This includes ear buds, headphones or watches used to view text messages which could lead to distracted driving. Contact from third parties shall be allowed only through dispatch and no direct contact by drivers shall be permitted. • Boisterous language, profanity, and incivility to anyone shall not be allowed while in uniform, on or off duty.
• Excluding shopping, before or after a work shift, no employee in uniform shall purchase, consume, or be under the influence of any narcotic, intoxicant, harmful drug, or prescription drugs that impair performance.
• Drivers shall be responsible for keeping all vehicles clean and sanitary during their shift. Drivers shall be responsible for reporting any conditions that the Driver is unable to clean to management so it can be resolved.
• CONTRACTOR employees are responsible for reporting immediately any discovered defects found during the operation of the vehicle.
• CONTRACTOR employees shall conduct a walk-around pre-trip inspection of their vehicle, as well as a post-trip inspection, and report any defects found via the CITY-provided electronic equipment. • CONTRACTOR employees shall have CONTRACTOR supervisor personnel work cooperatively with CITY maintenance staff to resolve any concerns regarding the safety of a vehicle prior to operating the vehicle in service.
• CONTRACTOR employees shall, at all times, work cooperatively and assist CITY vehicle maintenance staff to keep all vehicles in service.
• Employees may use vehicles only in accordance with their assigned duties. Unauthorized stops at unauthorized locations while traveling to or from the route while driving the revenue service vehicle are prohibited.
• Employees must conduct themselves and operate vehicles in a safer and courteous manner at all times.
15 • No one shall be permitted to solicit on the vehicle with the exception of personnel specifically authorized to do so by CITY.
• No item longer than five (5) feet shall be allowed on the vehicle unless authorized at the discretion of CONTRACTOR management personnel or their designate.
• No animals, except service animals, shall be permitted on the vehicle, unless otherwise authorized in joint collaboration between the CITY and CONTRACTOR.
• All information regarding accidents shall be confidential. Employees shall refrain from speaking to anyone concerning any accident unless it is to the police, CITY supervisory personnel, the CITY’S insurance carrier or other person(s) involved in the accident as required by law. • Any passenger under the influence of an intoxicant, narcotic/drug and who are exhibiting inappropriate social behavior shall not be permitted on the vehicle. A driver, however, shall not refuse service to any passenger prior to receiving permission from CONTRACTOR management personnel or their designate.
• No vehicle shall stop at an unsafe location. Microtransit and Paratransit stops shall be made at a curb or designated safe stop.
• Backing of a vehicle is prohibited unless specifically authorized by an on-duty Dispatcher.
Drivers must request the option to back a vehicle from Dispatch prior to beginning the backing process.
• No vehicle shall be operated when its condition is unsafe or otherwise mechanically unreliable. • CONTRACTOR drivers shall report to Dispatch any graffiti or damage discovered to bus shelters while completing their route. Dispatch personnel take immediate action to remedy the reorted issue via communication with CONTRACTOR management or CITY personnel. • No CONTRACTOR employee shall operate the wheelchair lift unless he has received the mandated training and/or if there is any doubt about the mechanical condition of the lift or safety of the passenger as a result of using the lift. Wheelchair lift operation shall be in compliance with the methodology recommended by the OEMs.
• CONTRACTOR employees shall ensure a complete 4-point tie-down process is utilized for all wheel-chair and scooters patrons who are being transported on Roseville Transit vehicles. • CONTRACTOR employees shall properly utilize all onboard systems including but not limited to the fare box system and recording ridership data in the format required by CITY. • CONTRACTOR drivers shall not be allowed to leave their vehicle unattended when passengers are on-board. Drivers shall take the key (if applicable) with them when disembarking the vehicle.
Doors of unattended vehicles shall be kept closed and locked at all times. Drivers must inform and confirm with dispatch before leaving a bus unattended. • CONTRACTOR drivers shall provide “hands-on” assistance to disabled riders when boarding and unloading purposes on all services.
• CONTRACTOR divers of the Microtransit and Paratransit service shall assist every passenger during the loading and unloading process.
• CONTRACTOR drivers completing Paratransit service will be required to assist passengers to the door of their destination, when requested, as long as they can keep their vehicle in their sight. • No vehicle shall be fueled or charged while passengers are on board. • CONTRACTOR drivers must remain at the fuel nozzle anytime a bus is being fueled.
16 2.25 Uniforms
CONTRACTOR is responsible to ensure drivers are in full uniform at all times while in service or otherwise on duty. CONTRACTOR shall provide driver uniforms to its employees. The design, type and logo of the uniforms shall be subject to CITY’S advance approval. Drivers shall be required to adhere to uniform requirements approved by CITY and maintain a neat and clean appearance at all times. Failure to comply with this section may result in Liquidated Damages being assessed to the CONTRACTOR.
2.26 Safety Program
CONTRACTOR shall assume full responsibility for assuring that the safety of passengers and operations personnel, and CITY’S vehicles and equipment are maintained at the highest possible level throughout the term of this AGREEMENT.
CONTRACTOR shall comply with all applicable California Highway Patrol and OSHA requirements.
CITY may request that the Motor Carrier Unit of the California Highway Patrol (CHP) annually prepare and submit to CITY a Safety Compliance Report (CHP-343). CONTRACTOR must attain satisfactory rating in the driver records category of the Safety Compliance Report. CONTRACTOR must expeditiously correct any deficiencies noted on California Highway Patrol’s report, and shall furnish CITY with copies of annual CHP safety compliance reports, including pull notices.
CONTRACTOR shall develop, implement and maintain, in full compliance with California Law, a formal safety and accident prevention program including periodic safety meetings, participation in safety organizations, safety incentives offered by CONTRACTOR to drivers and other employees, and participation in risk management activities under the auspices of CONTRACTOR’S insurance carrier or other organization. CONTRACTOR shall provide a copy of said Safety Program and subsequent program updates to CITY.
CONTRACTOR shall participate in the State of California Department of Motor Vehicles “Driver Pull Notice Program” for appropriate monitoring of employee driver license activity.
CONTRACTOR shall be responsible for coordinating with a CITY vendor all fire extinguisher and fire suppression system recertifications each year concerning the building located at 2075 Hilltop Circle, Roseville, Ca. 95747.
CONTRACTOR shall be responsible for the annual recertification and payment of all fire extinguishers aboard CITY owned vehicles. The CONTRACTOR shall notify CITY personnel when this task is complete each year.
CONTRACTOR will require, at a minimum, all Safety-Sensitive personnel and supervisors to participate in all required safety programs and meetings conducted by the CONTRACTOR.
2.27 Marketing, Public Relations and Monitoring Activities During the term of the AGREEMENT, CONTRACTOR shall not be responsible to undertake or fund any
17 advertising or promotional activities on behalf of the CITY however, CONTRACTOR shall cooperate with CITY’S advertising or promotional activities by making available in a timely manner, all needed equipment and personnel at no cost or expense to CITY. CONTRACTOR also shall dispense CITY information and publications, respond to patron requests for CITY-approved information, and do all other things to assist and support CITY’S advertising and public information efforts.
CONTRACTOR shall post CITY-provided and approved notices, distribute surveys to passengers, and/ or otherwise provide reasonable assistance in CITY’S monitoring and marketing activities as directed by the CITY.
CONTRACTOR shall not post or otherwise distribute any materials on vehicles unless specifically requested by CITY and CITY shall approve all materials prior to their distribution. Any revenue from posting or other distribution shall be CITY’S.
CITY transit buses have advertising wraps applied throughout the term of the contract. CONTRACTORS will work with advertising vendor to make buses available to the vendor in a timely manner for the application of these wraps
CONTRACTOR shall refer all media requests for information about ROSEVILLE TRANSIT services as defined in the AGREEMENT to the CITY. Under no circumstances shall CONTRACTOR make any contact with the media or offer comment regarding the services identified in the AGREEMENT without written permission from the CITY.
2.28 Road Supervision
CONTRACTOR shall provide road supervision as required to monitor drivers and vehicles and assist drivers in revenue service, including assistance with special events. Road Supervisors shall also assist with reducing and removing transit related vehicle leakages at the CITY Corporate Yard working within CITY Stormwater compliance requirements. At a minimum, a road supervisor shall be available from the beginning of service until the end of the service day, Monday through Saturday, with an on-call supervisor available during all other hours of service.
CONTRACTOR will ensure complete accident kits are available in the Road Supervisor vehicle.
2.29 Accident, Incident, and Complaint Procedures
The total vehicle miles between all accidents shall be greater than one per 25,000 miles and greater than one preventable accident per 50,000 miles on average. This standard shall be measured quarterly.
All traffic accidents involving CITY vehicles, irrespective of injury, shall be reported to the Highway Patrol, local police or sheriff, as appropriate, and then to the CITY. CONTRACTOR will request that the law enforcement agency respond to investigate the accident. CONTRACTOR will supply CITY with copies of all accident and incident reports and related attachments such as pictures and video within 24 hours of the incident.
18 The CITY shall be notified in writing by CONTRACTOR of all accidents involving CITY transit vehicles within 24 hours. In cases involving injury or a major accident, CONTRACTOR shall notify CITY Designated Representatives immediately upon receipt by CONTRACTOR of such information.
CONTRACTOR shall develop, implement and maintain formal procedures, subject to CITY review and approval, to respond to emergencies and routine problems that occur from time-to-time during the course of providing transit service. Such occurrences shall include, but are not limited to, vehicle accidents, passenger injuries, passenger disturbances, in-service vehicle failures, lift failures of buses while in service and route buses operating more than 15 minutes behind schedule.
CONTRACTOR is requested, but shall not be required to have CONTRACTOR employees report public safety incidents observed by them to the dispatcher, who in turn, is requested to refer all such incidents to the proper authorities. Such observed incidents include, but are not limited to: fires, criminal activity, suspicious circumstances, public right-of-way obstructions, natural disasters, and the like. Beyond reporting such incidents, neither the CONTRACTOR nor any of CONTRACTOR’S employees shall have any responsibility of any kind or character to act further with respect to them.
CONTRACTOR will log all complaints received and escalate complaints as appropriate to CITY and CONTRACTOR management staff for investigation. The investigation of each complaint will be documented. Investigations may include interviews with the operator and the passenger/caller, review of recorded phone or radio communications, and/or review of recorded video clips.
CITY and CONTRACTOR will communicate the results of the investigation and resolution of complaints.
A minimum of two (2) attempts to contact the person who filed the complaint will be made and documented unless the customer has indicated that they do not require a response to their complaint.
Likewise, compliments will be documented and shared as appropriate (recognition programs of employees).
2.30 Division Operation Offices
Except for items expressly identified to be provided and/or maintained by CITY, CONTRACTOR shall provide and maintain all operations office and control room furnishings and equipment required to provide ROSEVILLE TRANSIT services. CONTRACTOR shall provide and maintain computers, maps, information boards, official time clock and the like to properly conduct day-to day Transit business.
CONTRACTOR shall provide equipment and software as requested by CITY.
2.31 Facility Cleaning
CONTRACTOR shall be responsible for maintaining a clean business environment, in support of CITY provided sweeping, dusting, emptying of trash receptacles in the operations office, training room, rest rooms and storage areas. If major repairs are required, CONTRACTOR shall notify CITY.
2.32 Reports; Records; Books; Inspection
CONTRACTOR shall collect, record, and report all operational data required by the CITY in a format
19 approved by the CITY. Such data shall include, but not be limited to, data necessary to comply with the National Transit Data Base requirements of the Federal Transit Act, and with Section 99247 of the California Public Utilities Code, as is now in force or may hereafter be amended. Operational data shall include but are not limited to: passenger count data by fare and demographic category, vehicle hours, vehicle miles, vehicle revenue hours, vehicle revenue miles, passengers per hour, wheelchair boardings, missed trips, accident and incidents, complaints and compliments, stop call out logs, passenger boarding and alighting data and route deviation notices.
CONTRACTOR shall collect information daily concerning vehicle activity of the “on demand” response system, route driver’s manifest, dispatch log, out-of-service log and/or other forms as developed by CONTRACTOR and approved by CITY.
CONTRACTOR and CITY personnel will review all reporting processes on a semi-yearly basis to ensure all required data is being captured. Changes will be made to the reporting system as mutually agreed upon by the CONTTRACTOR and CITY personnel.
CONTRACTOR shall collect, record and report to the CITY on a quarterly basis all accounting data for the ROSEVILLE TRANSIT operation in accordance with Section 99243 of the California Public Utilities Code, as is now in force or may hereafter be amended. All worksheets and detail information used to prepare these reports shall be available upon request. Each quarterly accounting report shall be provided to CITY within one month after the close of the applicable quarter. CONTRACTOR shall also provide a quarterly statement of accident data and loss experience including accident and preventable accident data, claims made, claims settled and pending, and any loss reserve specific to the ROSEVILLE TRANSIT project.
CONTRACTOR shall make available daily logs, reports and summaries for CITY review by 3 p.m. of the next business day following data collection. Monthly reports shall be submitted to CITY no later than the 10th day of the following month. CITY retains the right to request additional data as needed.
CONTRACTOR shall maintain all books, records, documents, accounting ledgers, and similar materials relating to work performed for CITY under this AGREEMENT on file for at least three (3) years following the date of final payment to CONTRACTOR by CITY. Original documents or certified copies shall be maintained locally at a place that shall be subject to CITY approval. During the term of AGREEMENT, CONTRACTOR shall maintain its accounting records as they relate to the programs identified in AGREEMENT consistent with Generally Accepted Accounting Principles and in CITY-approved format.
Services provided under AGREEMENT shall conform to all the requirements of Federal, State, and/or local regulatory agencies, including the California Highway Patrol, California Public Utilities Commission, and U.S. Department of Transportation, if applicable. CONTRACTOR shall not disseminate ridership, fare box, or other data or information to any party without prior written approval form CITY or as required by law.
Any duly authorized representative(s) of CITY shall have access to such records for the purpose of inspection, audit and copying at reasonable times, during CONTRACTOR’S usual and customary business hours. Further, any duly authorized representative(s) of CITY shall be permitted to observe and inspect any or all of CONTRACTOR’S facilities and activities during CONTRACTOR’S usual and customary business hours for the purposes of evaluating and judging the nature and extent of CONTRACTOR’S compliance
20 with the provisions of this AGREEMENT. In such instances, CITY’S representative(s) shall not interfere with or disrupt such activities.
2.33 Pending Projects and Service Changes
The City of Roseville is a growing community. Projections indicate that all modes of service may be expanded during the term of this contract. The City of Roseville reserves the right to increase and/or decrease the level of operations. If operational revenue hours exceed fifteen percent (15%) of expected hours, CONTRACTOR will be offered the opportunity to renegotiate the terms of the contract.
2.34 System Recommendations
CONTRACTOR shall continually monitor ROSEVILLE TRANSIT operations, facilities and equipment and shall, from time‑to‑time and as warranted, advise CITY and make recommendations based on observed deficiencies and needed improvements. CITY shall retain all authority, however, to make determinations and to take action on such recommendations.
2.35 Standard Operating Procedures Manual
CONTRACTOR shall work to create an Standard Operating Procedures (SOP) Manual to provide documentation of procedures used at this site for the operations and management of Roseville Transit. A draft document shall be provided to the CITY for review within one year of the contract award date. A final version of the SOP Manual that is acceptable to the CITY shall be provided by the CONTRACTOR within 18 months of the contract award date.
3. CONTRACTOR DUTIES AND RESPONSIBILITIES – CITY VEHICLES ANDEQUIPMENT CONTRACTOR shall perform the duties and accept the responsibilities set forth below in connection with use of CITY vehicles and equipment.
3.1 Inventory
CITY and CONTRACTOR agree to prepare a joint written inventory of all CITY-provided equipment and supplies. This inventory shall be conducted annually. CONTRACTOR shall be responsible for returning the vehicles with the same or replacement items, equipment and supplies (all less ordinary wear and tear) as originally delivered.
3.2 Safety
CITY may request that the Motor Carrier Unit of the California Highway Patrol (CHP) annually prepare and submit to CITY a Safety Compliance Report (CHP-343). CONTRACTOR must attain satisfactory rating in the driver records category of the Safety Compliance Report. CONTRACTOR must correct any deficiencies noted on California Highway Patrol’s report.
3.3 CITY Vehicles and Equipment
By execution of this AGREEMENT, CONTRACTOR acknowledges receipt of the vehicles and equipment listed in Attachment G ‑ CITY_PROVIDE TRANSIT SYSTEM VEHICLES and Attachment H – CITYPage 171 of 2438 21 PROVIDED OFFICE EQUIPMENT, and that each and every item has been received in good working condition. In the event that CITY provides CONTRACTOR with additional buses and/or equipment at future times, these EXHIBITS shall be amended in the manner provided herein above for amendments to this AGREEMENT and CONTRACTOR shall acknowledge receipt of such additional items upon their delivery to CONTRACTOR.
The CITY has recently acquired Electric Buses and will continue to obtain additional EV vehicles to operate Roseville Transit Services. CONTRACTOR will ensure all personnel are fully trained to maintain, charge and otherwise operate all new electrical vehicles purchased by the City.
CONTRACTOR shall use due diligence to maintain CITY’S vehicles in a clean, orderly, and safe manner and in accordance with CITY standards. CITY shall have the right to inspect at all times CITY- provided vehicles and equipment to verify CONTRACTOR compliance with the foregoing. This provision shall also apply to any vehicles and equipment, including leased vehicles and equipment, used by CONTRACTOR for backup services. CONTRACTOR is financially responsible for the cost of repairing or replacing any physical or mechanical damage caused by CONTRACTOR negligence and not caused by CITY. CITY shall be responsible for making repair or replacement.
CONTRACTOR will be responsible to supply tablets at their expense on all Microtransit and Paratransit buses in order to operate the on-demand SCHEDULING system.
Upon termination of this AGREEMENT, CONTRACTOR shall return all CITY‑owned equipment to CITY, with no damage, less reasonable wear and tear.
3.4 Vehicle and Equipment Repair Due to Collision, Vandalism, or Abuse CONTRACTOR shall be responsible for the cost of all repairs to CITY vehicles and equipment to correct loss or damage due to collision, vandalism, theft, or abuse. Cost of repairs shall include all parts, labor, vehicle transportation or towing, and other costs associated with completing the necessary repairs.
All repairs to CITY transit vehicles shall be performed by CITY fleet maintenance staff or by other vendors and suppliers designated by the CITY, except that CONTRACTOR may make minor cosmetic repairs in a workman-like manner which would normally be performed during cleaning and detailing of a vehicle.
CONTRACTOR shall promptly report vehicle damage to the CITY fleet maintenance department. When CITY determines that unreported vehicle or equipment damage is the responsibility of the CONTRACTOR, it shall notify the General Manager or other designated on-site CONTRACTOR representative. As soon as is practicable, but in all cases within 24 hours after notification, the CONTRACTOR representative shall review the damage. CITY shall then complete the work, document the repair or replacement on a work order, and CONTRACTOR shall be responsible for the cost of repairs in accordance with the provisions of the AGREEMENT of which this Appendix is a part.
CONTRACTOR is responsible for the cost of all repairs to CITY property and equipment to correct loss or damage due to collision, abuse or neglect by CONTRACTOR employees. Cost of repair shall include all parts, labor, and/or other costs associated with completing the necessary repairs. If a vehicle must be towed due to CONTACTOR negligence, it should be done so based on the type of vehicle (example:
Diesel versus Electric).
22 3.5 Vehicle Inspection, Cleaning and Servicing
CONTRACTOR shall maintain CITY transit vehicles in a clean and neat condition at all times. The interior of the vehicles shall be kept free of litter and debris to the maximum practicable extent throughout the operating day. Buses shall be kept free of vermin and insects at all times. CONTRACTOR shall exterminate all vermin and insects from all vehicles immediately upon their discovery, utilizing safe and non‑hazardous materials. Biohazard cleaning will be completed in compliance with the standard operating procedures.
CONTRACTOR shall perform daily vehicle inspections and servicing on all CITY transit vehicles used in revenue service. For purposes of this AGREEMENT, daily servicing will include, but not be limited to:
exterior fueling and/or charging; engine oil and coolant check/add; farebox vault probing and dumping of fare; wheelchair lift check; and brake check; light (including brights) and flasher check; interior sweeping and dusting; exterior and interior visual inspection; and driver’s report of vehicle safety, reliability, or performance defects.
CONTRACTOR shall develop, implement, maintain and utilize a written checklist for the daily, weekly, and on-going servicing of each vehicle. This checklist(s) requirement may incorporate or supplement CHP required driver’s via an electronic pre-trip and post-trip safety inspections. The checklist(s) shall be subject to CITY approval, kept on file for the CITY and the California Highway Patrol, and shall include the items described above and including, but not limited to the following:
Daily Servicing. All vehicles that have been in revenue service shall have the following items performed on a nightly basis:
• Check to ensure no passengers are left on the bus upon returning to the Yard • Floor Cleaning. Using brooms, sweep the complete interior of each vehicle starting in the back and working to the front. Sweep trash from step wells into an appropriate trashcan. • Look for any items left by passengers during the service day. The driver should turn found items into Dispatch, who should follow the Lost & Found procedures established by CONTRACTOR management personnel.
• Trash Receptacle. Empty the trash receptacle located near the front of each vehicle. • Dusting. Wipe clean the dashboard, farebox and all operator controls. • Vandalism/Graffiti Inspection. Inspect the vehicle interior to assure that no seat damage or graffiti exists. Seats that are found damaged should be reported to the CITY at the time observance. No vehicle shall be put into revenue service with visible graffiti. • Seat Securement. Inspect individual seat inserts to assure proper securement to the seat frame. If the seat is not secure, report it to CITY at the time of observance. • Lights. All lights including high beams, will be checked daily upon route pre-trip. • Wheelchair Lift. The wheelchair lift on each vehicle shall be cycled one complete cycle prior to departure from CITY’S corporation yard each day. If the wheelchair lift fails to complete the cycle, the failure must be reported to the CITY and the vehicle repaired and/or another one assigned.
• Remove Graffiti. Any graffiti on interior or exterior of any vehicle shall be removed immediately. CONTRACTOR shall obtain approval of all graffiti removal materials prior to their use. No vehicle shall be allowed to begin its service day with graffiti visible.
23 Weekly Servicing:
• Exteriors of all CITY transit vehicles shall be washed as required to maintain a clean, inviting appearance and in no event less than once per week. • CONTRACTOR shall submit a monthly report into the Shared Drive to the CITY verifying each vehicle has been cleaned both inside and outside on a weekly basis. • In addition to maintaining daily and weekly cleaning, servicing and washing checklists, CONTRACTOR shall complete and submit an email to CITY fleet maintenance staff describing vehicle defects that require fleet maintenance inspection or repair. CITY Alternative Transportation personnel shall be included on such emails when sent.
3.6 Bus Washing Program
CONTRACTOR is required to provide staff personnel each Saturday and Sunday to complete weekly bus washing. In addition to this regularly scheduled weekend bus washing, the CONTRACTOR must fully comply with the terms of this section by providing additional bus washing as required by CITY to maintain a clean, inviting appearance including but not limited to the following:
• Exterior washing. Bus exteriors shall be washed no less than once a week, or as often as needed, and shall include bus body, all windows and wheels. Washing the bus will be completed via the ‘drive through’ bus wash or manually if the bus wash system is inoperable. The bus wash uses re-circulated water and can be used on a daily basis, if needed. Rubber or vinyl exterior components such as tires, bumper fascia, fender skirts and door edge guards shall be cleaned and treated with a preservative at least once per month, or as necessary to maintain an attractive appearance. • Mop Floors. Floors shall be damp-mopped, starting at the back of the vehicle and working forward, assuring that wheel-well inner extensions and the step well is mopped. Use of excessive amounts of water or other fluids shall not be allowed on the floors or other interior parts of the vehicle. • Wash Wheels. Wheels shall be degreased and rinsed clean. • Clean Operator’s Compartment. Operator’s compartments shall be thoroughly cleaned, including vacuuming of trash from around foot controls; wiping the dashboard, operator’s seat and all operator’s controls.
• Clean Inside Windows. Using the cleaner approved for use only on windows, the interior of all windows shall be sprayed, squeegeed clean and wiped dry with a cloth. Windows include windshield, door windows, and interior mirrors.
• Clean Side Panels/Ceilings and seat frames and backs. • The City reserved the right to conduct random inspection of vehicles to verify cleanliness standards.
If a vehicle does not meet these standards, the City may request that it be temporarily removed from service for immediate cleaning prior to returning to operation.
3.7 Road Calls
CITY fleet maintenance staff will respond to road calls to assist with disabled vehicles upon request by CONTRACTOR. CITY will document the road call on a work order and provide CONTRACTOR with a copy if required. CONTACTOR shall provide a Communications Log to CITY via the Shared Drive. If the road call is determined by CITY to be caused by collision, vandalism, abuse, or CONTRACTOR employee error, then the cost of the road call shall be deducted from payment to CONTRACTOR in accordance with the provisions of the AGREEMENT of which this Appendix ispart.
24 CITY maintenance staff shall authorize all towing of CITY transit vehicles, except that towing may be performed by the most expedient source at the direction of law enforcement or when otherwise necessary to eliminate a potential hazard. If towing is determined by CITY to be required due to collision, vandalism, abuse, or CONTRACTOR employee error, then the cost of towing shall be deducted from payment to CONTRACTOR in accordance with the provisions of the AGREEMENT of which this Appendix is part.
A towed vehicle shall be transported in accordance with the vehicle type (example: Diesel versus Electric).
3.8 Vehicle Delivery
CONTRACTOR shall provide the delivery of vehicles to CITY designated suppliers for repair and servicing as requested by CITY maintenance staff. Except when delivery is required to repair damage as described in Section 3.4 herein above, CONTRACTOR shall be entitled to reimbursement for vehicle delivery services at the rate specified in the AGREEMENT of which this Appendix is part.
No reimbursement shall be paid if vehicle delivery is necessary to correct loss or damage that is determined by CITY to be due to collision, vandalism, theft, or abuse unless such collision, vandalism, theft, or abuse is a result of CITY personnel.
3.9 Vehicle Fueling and Charging
CONTRACTOR employees shall adhere to any and all accounting, administrative and operating procedures required by CITY in connection with all fueling and charging operations.
4. CONTRACTOR DUTIES AND RESPONSIBILITIES – BUS STOP SHELTERS CONTRACTOR shall maintain CITY bus stops that are equipped with shelters in a clean and inviting condition at all times. CONTRACTOR employees shall be instructed to spot check and remove litter from shelters as time allows, and to report cleaning, maintenance and repair needs immediately to the operations office. CONTRACTOR employees shall respond to cleaning needs as required, and shall report maintenance or major repair needs to CITY.
4.1 Bus Stop Shelter Cleaning and Schedule
CONTRACTOR shall establish and maintain a regular cleaning and inspection schedule and log for each bus stop shelter location listed Attachment I which may be revised by CITY from time to time. Shelters and surrounding areas shall be thoroughly cleaned and inspected in accordance with a predetermined to maintain a clean and inviting appearance. CONTRACTOR shall drop completed Bus Shelter Cleaning list into Shared Drive on a monthly basis noting when and what shelters where cleaned.
Thorough cleaning includes, but is not limited to:
• Removal of litter and graffiti;
• High pressure “power” washing of shelters, benches, trash receptacles; • High Pressure “power” washing of the concrete pad or sidewalk area immediately in front of and within 10 feet on all sides of the shelter;
• Removal of excess water in accordance with CITY Wastewater and Stormwater Pollution Prevention Plan.
• Post-cleaning replacement of City promotional materials if requested: and,
25 • Inspection of the shelter to determine maintenance and repair needs.
4.2 Bus Shelter Cleaning Equipment and Materials
CONTRACTOR shall be responsible to provide all equipment and materials needed for cleaning as described herein, except for equipment specifically identified as provided by CITY: CITY provides a trailer mounted power washer for CONTRACTOR use in cleaning transit shelters.
4.3 Bus Shelter Cleaning Permits and Authorizations
CONTRACTOR shall obtain any required authorizations or permits to work on private property or in the public right-of-way while cleaning shelters, and for any liability or damage incurred in the course of cleaning shelters. CITY provides hydrant permits when required.
4.4 Implementation Plan
CITY’S CONTRACTOR will provide a detailed Implementation Plan following award of a contract. This plan shall at the very least, address the sequence of activities and procedures that will be followed to ensure the smooth start-up of the service including, if necessary, transition from another operator. The plan should also document recruitment and training schedules, start-up plan, and acquisition of necessary equipment, permits, licenses and any other activities necessary to continue a successful ROSEVILLE TRANSIT operation. The Implementation Plan must provide for continuous ROSEVILLE TRANSIT operations with no disruption to existing CITY services.
26 B. SOUTH PLACER TRANSIT INFORMATION CALL CENTER
1. Overview - South Placer Transit Information Center (“CALL CENTER”) The CALL CENTER, an award-winning operation, is a dynamic environment which responds to customers’ needs as prescribed by the Placer County Transportation Planning Agency (PCTPA), The Western Placer Consolidated Transportation Services Agency (WPCTSA), and the Transit Operators Working Group (TOWG) to help customers gain and maintain their mobility. The CALL CENTER offers a consolidated “one stop shop” which serves as the centralized location for booking on demand Microtransit and Paratransit trips for Auburn Transit, Lincoln Transit, Placer County Transit and Roseville Transit. The CALL CENTER also provides patrons with regional alternative transportation information. Each transit agency, however, oversees their own dispatch function to ensure modifications are made as required for their local drivers and passengers.
As the lead agency designated to house and administer CALL CENTER operations, the CITY intends to employ a CONTRACTOR to operate the CALL CENTER. The CONTRACTOR will be responsible for all staffing, including hiring, training, managing and supervising representatives for call intake, scheduling of Microtransit and complementary Paratransit ADA trips, in addition to assisting callers with regional alternative transportation information. Additionally, CONTRACTOR shall offer ongoing training for CALL CENTER reservationists to offer consistent and excellent customer service, as well as stay apprised of all new regional information and technology as it becomes available. CALL CENTER personnel shall educate callers on various programs designed to enhance mobility and travel options..
2. CITY Duties and Responsibilities
CITY shall perform the duties described in Sections 2.1 – 2.7 below. To the extent reasonable, CONTRACTOR and/or WPCTSA member agencies shall assist City in this regard.
2.1 Selection and Oversight of CONTRACTOR
CITY shall select and enter into a contract with CONTRACTOR for operation of the CALL CENTER and shall provide contract oversight of CONTRACTOR’s performance.
2.2 Liaison with Local Jurisdictions, Agencies, and Citizens Groups CITY shall be responsible for coordinating project activities with local and regional governmental jurisdictions, agencies and citizens groups.
2.3 Coordination with WPCTSA and TOWG
CITY shall be responsible for developing and monitoring customer service and performance standards, reporting and budget activities for the CALL CENTER in coordination with the WPCTSA and the TOWG.
27 2.4 Advertising and Promotion
CITY shall prepare, schedule, distribute and pay for all advertising and promotional materials designed to inform the public about CALL CENTER operations and new programs. Advertising may include, but is not limited to, print media, internet, television and/or radio.
2.5 Division Operations Office
CITY shall provide and maintain, including but not limited to sweeping, dusting, and emptying trash receptacles within the CALL CENTER operations facility located at 2075 Hilltop Circle, Roseville, CA.
The facility includes an adequate parking area and restrooms for CONTRACTOR and CITY employees.
2.6 Office Space
CITY shall provide office space for the operation of the CALL CENTER and shall perform any needed capital or tenant improvements necessary to accommodate CALL CENTER personnel.
2.7 Supplies, Equipment, and Furniture
CONTRACTOR shall provide all supplies and equipment that is required to operate the CALL CENTER except for any CITY provided items. CITY provided items include, but are not limited to: Chairs, Workstations, Passenger scheduling system, telephone system, telephone recording/logging system, PBX/VOIP customer relationship management software, wall monitors and headsets. CONTRACTOR provided equipment may include, but is not limited to, work computers, firewalls, printers, copiers, office supplies and internet service. CONTRACTOR shall remain current on all software licensing and keep all office equipment and technology in good working order.
3. CITY’S CONTRACTOR Duties and Responsibilities
CITY’S CONTRACTOR shall be contractually obligated to perform the duties and accept the responsibilities set forth below:
• Perform contracted activities in coordination and cooperation with CITY on matters related to operations, monitoring, reporting and meeting Key Performance Indicators (KPI’s). • Develop, implement and maintain daily and monthly schedules which shall identify staff members and their assigned shifts and work assignments to handle passenger calls for Microtransit and Paratransit trip reservations, calls for general regional transportation information, and referrals to the CITY for application processing of Americans with Disabilities Act (ADA) eligible persons and Mobility Training.
• Meet the objectives of providing quality transportation CALL CENTER services which includes efficiently booking trip reservations overall, along with efficiently booking non-emergency Microtransit and Paratransit trips across Western Placer County and improving the efficient use of existing services.
• Provide CITY with agreed upon weekly, monthly and quarterly reports for review by the
28 PCTPA, WPCTSA and/or TOWG;
• Work with CITY staff to continue, expand, and update current CALL CENTER operations to include all participating transit agencies as directed; and work with CITY to continue and expand current operations as prescribed by the WPCTSA.
3.1 CALL CENTER Employee Selection and Supervision
CITY’S CONTRACTOR shall be responsible for the employment and supervision of all employees necessary to perform all CALL CENTER operations. CITY’S CONTRACTOR responsibilities shall include employee recruitment, screening, selection, training, supervision, employee relations, evaluations, retraining and employee discipline, including termination.
CITY’S CONTRACTOR shall use appropriate screening and selection criteria in order to employ operations personnel. CONTRACTOR shall perform normal employment, criminal background checks, pre-employment drug screens of all employees associated with the agreement entered into between CITY and CONTRACTOR and shall undertake the steps necessary to assure that all such employees perform their duties in a safe, legal, courteous, and professional manner at all times.
CITY reserves the right to ask for the removal of any employee from service within the CALL CENTER operation. This can be done at the sole discretion of the CITY.
CITY’S CONTRACTOR shall always comply, and shall require subcontractors to comply, with applicable state and federal employment laws, including Section 1735 of the California Labor Code and Title VI of the Civil Rights Act of 1964, as amended.
3.2 Bi-Lingual Personnel and Training
CONTRACTOR shall make every effort to recruit bi-lingual personnel for reservationist and supervisor positions. CONTRACTOR shall implement within 120 days after the start of the contract term, a keyword/key-phrase training and proficiency testing program to assist all operating personnel to learn simple phrases to assist them in communicating to Limited English Proficiency (LEP) transit system users as identified in the City of Roseville Title VI Program Language Assistance Plan, as may be updated periodically. CONTRACTOR will comply with CITY specified Title VI goals.
CITY shall provide and pay for access to a LEP interpreter line to assist with those patrons who require such assistance.
3.3 CALL CENTER Staffing
CITY’S CONTRACTOR shall employ executive, dedicated on-site management, administrative, supervisory and operational personnel to provide the necessary staff for management, operation and technical services to responsibly and efficiently operate the CALL CENTER. CONTRACTOR shall be responsible to maintain a consistent level of excellent customer service and make appropriate related changes in staffing levels as required.
29 CONTRACTOR shall develop, implement and maintain a daily schedule of labor resources to handle passenger information of telephone calls, reservations, and trip scheduling. This schedule shall identify work assignments and shift times.
3.4 CALL CENTER Staffing – Reservationists
CITY'S CONTRACTOR shall provide lead reservationist and reservationists who have the capacity to process current call volume of 3,500 call or more per month and to handle increases in service hours and call volume at approximately 5% per year. CALL CENTER operating hours are from 8:00 am – 5:00 pm seven days per week, 52 weeks per year, with closures on ‘major holidays’ which will be provided to the CONTACTOR. CALL CENTER operating hours may be adjusted at the CITY’S discretion per CONTRACTOR recommendation and/or in cooperation with the TOWG to accommodate call volume and/or new programs.
Lead reservationists, reservationists, and any other personnel who may from time-to-time be assigned to telephone information or reservation lines shall be trained in customer service, customer relations skills, telephone manners, phone operations procedures. Said training should be done on an annual basis, with a copy of the completed training provided to the CITY. Ongoing training and retraining shall be based on a variable hourly cost which should be included in the CONTRACTOR’s cost proposal.
Additional training should include areas relating to data gathering, accident/incident procedures, fares, bus and demand response schedules and service, information referrals, mobility training referrals, ADA regulations regarding trip reservations, reservation procedures, operating policies and all other programs as prescribed by WPCTSA member agencies. The CALL CENTER will operate in such a way as to comply with all applicable sections of 49 CFR 37.
3.5 CALL CENTER Reservationists Training Requirements
Training for reservation staff must include, but is not limited to, the following:
• Telephone etiquette and customer service skills;
• Administrative and operating policies for participating agencies pertinent to providing excellent customer service;
• Reservation procedures to respond to passenger requests to book trips with participating transit agencies using CITY provided software;
• Scheduling trips in accordance with the Americans with Disabilities Act (ADA) required operating standards for complementary Paratransit service, including passenger screening for ADA eligibility; • Bus travel time on participating agencies for Microtransit, Local fixed route and Commuter bus service.
• Fare structures and discount information for all participating agencies and the ability to access fare information quickly;
• Regional Microtransit, Paratransit, Local route and Commuter service schedules and services and the ability to access schedule and service information quickly;
30 • Dispatching assistance as necessary to maximize route efficiency, information and services referrals to other agencies as required;
• Alternative Transportation information in general;
• Complaint procedures/referrals to participating transit agencies as required; • Accident/Incident procedures;
• Bus trip planning;
• Fare distribution as prescribed by the WPCTSA and/or TOWG to eligible social service agencies; • Database maintenance regarding ADA eligible passengers and all information necessary for monthly, quarterly and annual performance and National Transit Database (“NTD”)reporting.
3.6 Telephone Information and Reservation System
CITY’S CONTRACTOR shall utilize transportation CALL CENTER telephone lines solely to respond to incoming calls from the general public and/or social service agencies for the purposes of requesting demand response service, reservations service information, requests for public transportation information, and transit options in South Placer County. These phone lines shall be exclusively dedicated to the CALL CENTER reservation and information system. CITY’S CONTRACTOR shall advise City if call volume appears to exceed phone line capacity to respond to incoming calls with a minimum of calls in queue. CITY’S CONTRACTOR shall coordinate with the CITY on a semi-monthly basis, or more frequently if necessary, to evaluate call volume. CITY’S CONTRACTOR shall respond to reservation and/or information requests from hearing impaired callers with TDD equipment, or the use of the California Relay Service for communication with hearing impaired customers. CITY’S CONTRACTOR shall follow the CITY’S Language Assistance Plan contained in the City of Roseville Title VI Program (Attachment K) to help Limited English Proficiency (LEP) customers served by this plan make reservations and/or obtain transit information.
3.7 SCHEDULING SYSTEM
The CITY shall provide the Passenger SCHEDULING SYSTEM to be used by the CONTRACTOR for daily booking of Microtransit and Paratransit passengers. The SCHEDULING SYSTEM will be utilized to reserve rides for Auburn Transit, Placer County Transit and Roseville Transit services. The CALL CENTER receives approximately 3,500 calls on a monthly basis, with an expected 5% yearly increase in call volume.
This SCHEDULING SYSTEM will interface with the ROSEVILLE TRANSIT dispatch office and other regional dispatch offices at participating agencies as deemed necessary by those agencies. All data and information contained within the SCHEDULING SYSTEM and on CITY and CONTRACTOR computers related to all participating transit agencies shall be the property of the CITY.
3.8 CALL CENTER Service Standards – General
CITY’S CONTRACTOR shall respond to telephone, TDD, email and/or faxed requests for Microtransit and Paratransit service and general transit information on a “real-time” demand-response basis.
CONTRACTOR shall also accept telephone, TDD, email, online, and/or faxed requests for advanced reservations for participating agencies Microtransit and Paratransit service as determined by each operator.
Advance reservation trips will be scheduled on a first come first serve basis as capacity allows. However,
31 the CITY’S CONTRACTOR must adhere to all ADA booking requirements noted in 49 CFR 37.
CONTRACTOR shall forward calls for same day trips and cancellations to the appropriate transit operator.
CONTRACTOR shall also accept subscription or re-occurring trip reservations (provision of repetitive trips over an extended time period without requiring that individuals call to request reservations for each trip) as determined by each participating transit agency.
CITY’S CONTRACTOR shall strive at all times to provide service in a manner that will maximize productivity, while emphasizing excellent customer service. Recognizing that the goals of productivity and service quality may conflict at times, performance standards (KPI’s) as prescribed in the following section must be established in a manner to be reasonably attainable by CITY’S CONTRACTOR, fair to the customer and consistent with all participating transit agency’s expectations. Other performance standards may be added as mutually agreed upon by the TOWG, and a customer survey mechanism may be used on occasion to measure customer satisfaction levels.
3.9 Telephone Information and Reservation Key Performance Indicators CITY’S CONTRACTOR will strive to meet the key performance indicators (KPI) established by the CITY and the TOWG as follows:
• Less than one and a half (1.5) telephone call abandoned by the caller per (twenty) 20 completed calls. (A call is usually considered abandoned if the call is terminated while it is in the “Next Call Waiting Queue” or while it is “On Hold”).
• Ninety (90%) percent of all phone calls shall be answered within ninety (90)seconds. • Ninety-five (95%) percent of all phone calls shall be answered within three (3) minutes. • One hundred (100%) percent of all phone calls shall be answered within six (6) minutes.
CITY’S CONTRACTOR, CITY, and the TOWG members shall meet periodically to evaluate performance of the system based upon these KPI’s. If the KPI’s are not fulfilling the intended purpose of providing excellent customer service while maximizing efficiency of the CALL CENTER and demand response service, they shall be adjusted based upon recommendations made by CITY’S CONTRACTOR with concurrence and final decision by CITY and the TOWG. CITY shall take all reasonable actions requested by the TOWG to work with CONTRACTOR to correct deficiencies in meeting the KPI’s.
3.10 Implementation Plan
CITY’S CONTRACTOR will provide a detailed Implementation Plan following award of a contract. This plan shall at the very least, address the sequence of activities and procedures that will be followed to ensure the smooth start-up of the service including, if necessary, transition from another operator. The plan should also document recruitment and training schedules, start-up plan, and acquisition of necessary equipment, permits, licenses and any other activities necessary to continue a successful CALL CENTER operation. The Implementation Plan must provide for continuous CALL CENTER operations with no disruption to existing CITY and other member agency services.
Planned
Service Revenue Hours Total Fixed Fee Total Variable Costs Total Cost Fixed Cost per Hour Variable Cost Per Hour Cost Per Hour Year 1 60,225 $ 2,305,056.74 $ 4,197,190.71 $ 6,502,247.45 $ 38.27 $ 69.69 107.97$ Year 2 61,128 $ 2,363,989.64 $ 4,491,834.24 $ 6,855,823.87 $ 38.67 $ 73.48 112.15$ Year 3 62,045 $ 2,562,117.88 $ 4,868,209.46 $ 7,430,327.35 $ 41.29 $ 78.46 119.76$ Year 4 62,976 $ 2,666,198.39 $ 5,228,898.90 $ 7,895,097.29 $ 42.34 $ 83.03 125.37$ Year 5 63,921 $ 2,762,436.77 $ 5,662,331.30 $ 8,424,768.07 $ 43.22 $ 88.58 131.80$ Option Year 1 64,879 $ 2,790,252.04 $ 6,058,169.57 $ 8,848,421.62 $ 43.01 $ 93.38 136.38$ Option Year 2 65,853 $ 2,903,659.05 $ 6,382,489.25 $ 9,286,148.30 $ 44.09 $ 96.92 141.01$ Option Year 3 66,840 $ 3,024,473.07 $ 6,718,752.29 $ 9,743,225.36 $ 45.25 $ 100.52 145.77$ Option Year 4 67,843 $ 3,138,140.48 $ 7,093,034.65 $ 10,231,175.12 $ 46.26 $ 104.55 150.81$ Option Year 5 68,861 $ 3,252,076.62 $ 7,490,300.52 $ 10,742,377.14 $ 47.23 $ 108.77 156.00$ Startup $ -
Year 1 $ 6,502,247.45Year 2 $ 6,855,823.87Year 3 $ 7,430,327.35Year 4 $ 7,895,097.29Year 5 $ 8,424,768.07Option Year 1 $ 8,848,421.62Option Year 2 $ 9,286,148.30 Option Year 3 $ 9,743,225.36
Option Year 4 $ 10,231,175.12Option Year 5 $ 10,742,377.14Grand Total $ 85,959,611.58 Total Annual Cost
Rates and Grand Total Cost
MV Transportation, Inc.
MV Transportation, Inc.
32 Exhibit B
FEDERAL CLAUSES
1. Fly America Requirements
49 USC 40118, 41 CFR 301-10
This section does not apply to this contract.
2. Buy America Requirements
49 U.S.C. 5323(j), CFR Part 661
This section does not apply to this contract.
3. Charter Bus Requirements
49 U.S.C. 5323(d), CFR Part 604
The contractor agrees to comply with 49 U.S.C. 5323(d) and 49 CFR Part 604, which provides that recipients and subrecipients of FTA assistance are prohibited from providing charter service using federally funded equipment or facilities if there is at least one private charter operator willing and able to provide the service, except under one of the exceptions at 49 CFR 604.9. Any charter service provided under one of the exceptions must be "incidental," i.e., it must not interfere with or detract from the provision of mass transportation.
4. Cargo Preference Requirements
49 U.S.C. §40118, 41 CFR Part 301-10
Contractor shall: a. use privately owned US-Flag commercial vessels to ship at least 50% of the gross tonnage (computed separately for dry bulk carriers, dry cargo liners, and tankers) involved, whenever shipping any equipment, material, or commodities pursuant to the underlying contract to the extent such vessels are available at fair and reasonable rates for US flag commercial vessels; b. furnish within 20 working days following the loading date of shipments originating within the US or within 30 working days following the loading date of shipments originating outside the US, a legible copy of a rated, "on-board" commercial bill-of-lading in English for each shipment of cargo described herein to the Division of National Cargo, Office of Market Development, Maritime Administration, Washington, DC 20590 and to the recipient (through contractor in the case of a subcontractor's bill-of-lading.) c. include these requirements in all subcontracts issued pursuant to this contract when the subcontract involves the transport of equipment, material, or commodities by ocean vessel.
5. Seismic Safety
42 U.S.C. 7701 et seq. 49, CFR Part 41
This section does not apply to this contract.
6. Energy Conservation
42 U.S.C. 6321 et seq. , CRF Part 81
33 The contractor agrees to comply with mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.
7. CleanWater
33 U.S.C. 1251
(1) The Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et . The Contractor agrees to report each violation to the Purchaser and understands and agrees that the Purchaser will, in turn, report each violation as required to assure notification to FTA and the appropriate EPA Regional Office. (2) The Contractor also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FTA.
8. Bus Testing
49 U.S.C. 5318(e), 49 CFR Part 665
This section does not apply to this contract.
9. Pre-Award & Post-Delivery Audit Requirements
49 U.S.C. 5323 , 49 CFR Part 663
This section does not apply to this contract.
10. Lobbying
31 U.S.C. 1352, 49 CFR Part 19, 49 CFR Part 20
Clause and specific language therein are mandated by 49 CFR Part 19, Appendix A.
Modifications have been made to the Clause pursuant to Section 10 of the Lobbying Disclosure Act of 1995, P.L. 104-65 [to be codified at 2 U.S.C. § 1601, et seq. ] Lobbying Certification and Disclosure of Lobbying Activities for third party contractors are mandated by 31 U.S.C. 1352(b)(5), as amended by Section 10 of the Lobbying Disclosure Act of 1995, and DOT implementing regulation, "New Restrictions on Lobbying," at 49 CFR § 20.110(d) Language in Lobbying Certification is mandated by 49 CFR Part 19, Appendix A, Section 7, which provides that contractors file the certification required by 49 CFR Part 20, Appendix A.
Modifications have been made to the Lobbying Certification pursuant to Section 10 of the Lobbying Disclosure Act of 1995.
Use of "Disclosure of Lobbying Activities," Standard Form-LLL set forth in Appendix B of 49 CFR Part 20, as amended by "Government wide Guidance For New Restrictions on Lobbying," 61 Fed. Reg. 1413 (1/19/96) is mandated by 49 CFR Part 20, Appendix A.
34 Byrd Anti-Lobbying Amendment, 31 U.S.C. 1352, as amended by the Lobbying Disclosure Act of 1995, P.L. 104-65 [to be codified at 2 U.S.C. § 1601, et seq.] - Contractors who apply or bid for an award of $100,000 or more shall file the certification required by 49 CFR part 20, "New Restrictions on Lobbying." Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier shall also disclose the name of any registrant under the Lobbying Disclosure Act of 1995 who has made lobbying contacts on its behalf with non-Federal funds with respect to that Federal contract, grant or award covered by 31 U.S.C. 1352. Such disclosures are forwarded from tier to tier up to the recipient.
The undersigned [Contractor] certifies, to the best of his or her knowledge and belief, that:
1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for making lobbying contacts to an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form--LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions [as amended by "Government wide Guidance for New Restrictions on Lobbying," 61 Fed. Reg. 1413 (1/19/96). Note: Language in paragraph (2) herein has been modified in accordance with Section 10 of the Lobbying Disclosure Act of 1995 (P.L. 104-65, to be codified at 2 U.S.C. 1601, et seq .)]
3. The undersigned shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
[Note: Pursuant to 31 U.S.C. § 1352(c)(1)-(2)(A), any person who makes a prohibited expenditure or fails to file or amend a required certification or disclosure form shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such expenditure or failure.] The Contractor, , certifies or affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Contractor understands and agrees that the provisions of 31 U.S.C. A 3801, et seq., apply to this certification and disclosure, if any.
Signature of Contractor's Authorized Official
Name and Title of Contractor's Authorized Official
Date
35 11. Access to Records and Reports
49 U.S.C. 5325 , 18 CFR 18.36 (i) , 49 CFR 633.17
The following access to records requirements apply to this Contract:
1. Where the purchaser is not a State but a local government and is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 CFR 18.36(i), contractor shall provide the purchaser, the FTA, the US Comptroller General or their authorized representatives access to any books, documents, papers and contractor records which are pertinent to this contract for the purposes of making audits, examinations, excerpts and transcriptions. Contractor shall also, pursuant to 49 CFR 633.17, provide authorized FTA representatives, including any PMO contractor, access to contractor's records and construction sites pertaining to a capital project, defined at 49 USC 5302(a)1, which is receiving FTA assistance through the programs described at 49 USC 5307, 5309 or 5311.
2. Where the purchaser is a State and is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 CFR 633.17, contractor shall provide the purchaser, authorized FTA representatives, including any PMO Contractor, access to contractor's records and construction sites pertaining to a capital project, defined at 49 USC 5302(a)1, which receives FTA assistance through the programs described at 49 USC 5307, 5309 or 5311. By definition, a capital project excludes contracts of less than the simplified acquisition threshold currently set at $100,000.
3. Where the purchaser enters into a negotiated contract for other than a small purchase or under the simplified acquisition threshold and is an institution of higher education, a hospital or other non-profit organization and is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 CFR 19.48, contractor shall provide the purchaser, the FTA, the US Comptroller General or their authorized representatives, access to any books, documents, papers and record of the contractor which are directly pertinent to this contract for the purposes of making audits, examinations, excerpts and transcriptions.
4. Where a purchaser which is an FTA recipient or a subgrantee of FTA recipient in accordance with 49 USC 5325(a) enters into a contract for a capital project or improvement (defined at 49 USC 5302(a)1) through other than competitive bidding, contractor shall make available records related to the contract to the purchaser, the Secretary of USDOT and the US Comptroller General or any authorized officer or employee of any of them for the purposes of conducting an audit and inspection.
5. Contractor shall permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed.
6. Contractor shall maintain all books, records, accounts and reports required under this contract for a period of not less than three (3) years after the date of termination or expiration of this contract, except in the event of litigation or settlement of claims arising from the performance of this contract, in which case contractor agrees to maintain same until the recipient, FTA Administrator, US Comptroller General, or any of their authorized representatives, have disposed of all such litigation, appeals, claims or exceptions related thereto. Re: 49 CFR 18.39(i)(11).
7. FTA does not require the inclusion of these requirements in subcontracts.
Requirements for Access to Records and Reports by Types of Contract Contract
Characteristics
Contract Operational
Service
Contract
Turnkey Constructio
n
Architectural
Engineering
Acquisition of
Rolling Stock
Professional
Services
I. State
Grantees
a. Contracts
below SAT
($100,000)
None Those
imposed on
state pass
thru to
Contractor
None None None None
36 b. Contracts
above
$100,000/
Capital
Projects
None
unless1non
-
competitiv
e award
Those
imposed on
state pass
thru to
Contractor
Yes, if
noncompetitiv
e award or
if funded
thru25307/
5309/5311
None unless
noncompetitive
award
None unless
noncompetitive
award
None unless
noncompetitive
award
II. Non State
Grantees
a. Contracts
below SAT
($100,000)
Yes3 Those
imposed on
non-state
Grantee
passthru to
Contractor
Yes Yes Yes Yes
b. Contracts
above
$100,000/Ca
pital
Projects
Yes3 Those
imposed on
non-state
Grantee
passthru to
Contractor
Yes Yes Yes Yes
Sources of Authority
1. 49 USC 5325 (a)
2. 49 CFR 633.17
3. 18 CFR 18.36 (i)
12. Federal Changes
49 CFR Part 18
Contractor shall comply with all applicable FTA regulations, policies, procedures and directives, including without limitation those listed directly or by reference in the Master Agreement between the recipient and FTA, as they may be amended or promulgated from time to time during the term of the contract.
Contractor's failure to comply shall constitute a material breach of the contract.
13. Bonding Requirements
This section does not apply to this contract.
14. Clean Air
42 U.S.C. 7401 et seq , 40 CFR 15.61, 49 CFR Part 18
(1) The Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. §§ 7401 . The Contractor agrees to report each violation to the Purchaser and understands and agrees that the Purchaser will, in turn, report each violation as required to assure notification to FTA and the appropriate EPA Regional Office. (2) The Contractor also agrees to include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FTA.
15. Recycled Products
37 42 U.S.C. 6962, 40 CFR Part 247, Executive Order 12873 The contractor agrees to comply with all the requirements of Section 6002 of the Resource Conservation and Recovery Act (RCRA), as amended (42 U.S.C. 6962), including but not limited to the regulatory provisions of 40 CFR Part 247, and Executive Order 12873, as they apply to the procurement of the items designated in Subpart B of 40 CFR Part 247.
16. Davis-Bacon and Copeland Anti-Kickback Acts
40 USC 3141, et seq. and 18 USC 874
This section does not apply to this contract.
17. Contract Work Hours & Safety Standards Act
This section does not apply to this contract.
18. (Reserved)
This section does not apply to this contract.
19. No Government Obligation to Third Parties
1. The Purchaser and Contractor acknowledge and agree that, notwithstanding any concurrence by the Federal Government in or approval of the solicitation or award of the underlying contract, absent the express written consent by the Federal Government, the Federal Government is not a party to this contract and shall not be subject to any obligations or liabilities to the Purchaser, Contractor, or any other party (whether or not a party to that contract) pertaining to any matter resulting from the underlying contract.
2. The Contractor agrees to include the above clause in each subcontract financed in whole or in part with Federal assistance provided by FTA. It is further agreed that the clause shall not be modified, except to identify the subcontractor who will be subject to its provisions.
20. Program Fraud and False or Fraudulent Statements or Related Acts 31 U.S.C. 3801 et seq., 49 CFR Part 31 18 U.S.C. 1001, 49 U.S.C. 5307
1. The Contractor acknowledges that the provisions of the Program Fraud Civil Remedies Act of 1986, as amended, 31 U.S.C. § § 3801 et seq . and U.S. DOT regulations, "Program Fraud Civil Remedies," 49 C.F.R. Part 31, apply to its actions pertaining to this Project. Upon execution of the underlying contract, the Contractor certifies or affirms the truthfulness and accuracy of any statement it has made, it makes, it may make, or causes to be made, pertaining to the underlying contract or the FTA assisted project for which this contract work is being performed. In addition to other penalties that may be applicable, the Contractor further acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submission, or certification, the Federal Government reserves the right to impose the penalties of the Program Fraud Civil Remedies Act of 1986 on the Contractor to the extent the Federal Government deems appropriate.
2. The Contractor also acknowledges that if it makes, or causes to be made, a false, fictitious, or fraudulent claim, statement, submission, or certification to the Federal Government under a contract connected with a project that is financed in whole or in part with Federal assistance originally awarded by FTA under the authority of 49 U.S.C. § 5307, the Government reserves the right to impose the penalties of 18
38 U.S.C. § 1001 and 49 U.S.C. § 5307(n)(1) on the Contractor, to the extent the Federal Government deems appropriate.
3. The Contractor agrees to include the above two clauses in each subcontract financed in whole or in part with Federal assistance provided by FTA. It is further agreed that the clauses shall not be modified, except to identify the subcontractor who will be subject to the provisions.
21. Termination
49 U.S.C.Part 18, FTA Circular 4220.1E
a. Termination for Convenience (General Provision) The City of Roseville may terminate this contract, in whole or in part, at any time by written notice to the Contractor when it is in the Government's best interest. The Contractor shall be paid its costs, including contract close-out costs, and profit on work performed up to the time of termination. The Contractor shall promptly submit its termination claim to the City of Roseville to be paid the Contractor. If the Contractor has any property in its possession belonging to the City of Roseville, the Contractor will account for the same, and dispose of it in the manner the City of Roseville directs. b. Termination for Default [Breach or Cause] (General Provision) If the Contractor does not deliver supplies in accordance with the contract delivery schedule, or, if the contract is for services, the Contractor fails to perform in the manner called for in the contract, or if the Contractor fails to comply with any other provisions of the contract, the City of Roseville may terminate this contract for default. Termination shall be effected by serving a notice of termination on the contractor setting forth the manner in which the Contractor is in default. The contractor will only be paid the contract price for supplies delivered and accepted, or services performed in accordance with the manner of performance set forth in the contract.
If it is later determined by the City of Roseville that the Contractor had an excusable reason for not performing, such as a strike, fire, or flood, events which are not the fault of or are beyond the control of the Contractor, the City of Roseville, after setting up a new delivery of performance schedule, may allow the Contractor to continue work, or treat the termination as a termination for convenience. c. Opportunity to Cure (General Provision) The City of Roseville in its sole discretion may, in the case of a termination for breach or default, allow the Contractor [an appropriately short period of time] in which to cure the defect. In such case, the notice of termination will state the time period in which cure is permitted and other appropriate conditions If Contractor fails to remedy to the City of Roseville's satisfaction the breach or default of any of the terms, covenants, or conditions of this Contract within [ten (10) days] after receipt by Contractor of written notice from the City of Roseville setting forth the nature of said breach or default, the City of Roseville shall have the right to terminate the Contract without any further obligation to Contractor. Any such termination for default shall not in any way operate to preclude the City of Roseville from also pursuing all available remedies against Contractor and its sureties for said breach or default. d. Waiver of Remedies for any Breach In the event that the City of Roseville elects to waive its remedies for any breach by Contractor of any covenant, term or condition of this Contract, such waiver by the City of Roseville shall not limit the City of Roseville's remedies for any succeeding breach of that or of any other term, covenant, or condition of this Contract. e. Termination for Convenience (Professional or Transit Service Contracts) The City of Roseville, by written notice, may terminate this contract, in whole or in part, when it is in the Government's interest. If this contract is terminated, the Recipient shall be liable only for payment under the payment provisions of this contract for services rendered before the effective date of termination. f. Termination for Default (Supplies and Service) If the Contractor fails to deliver supplies or to perform the services within the time specified in this contract or any extension or if the Contractor fails to comply with any other provisions of this contract, the City of Roseville may terminate this contract for default. The City of Roseville shall terminate by delivering to the Contractor a Notice of Termination specifying the nature of the default. The Contractor will only be paid the contract price
39 for supplies delivered and accepted, or services performed in accordance with the manner or performance set forth in this contract.
If, after termination for failure to fulfill contract obligations, it is determined that the Contractor was not in default, the rights and obligations of the parties shall be the same as if the termination had been issued for the convenience of the City of Roseville.
g. Termination for Default (Transportation Services) If the Contractor fails to pick up the commodities or to perform the services, including delivery services, within the time specified in this contract or any extension or if the Contractor fails to comply with any other provisions of this contract, the City of Roseville may terminate this contract for default. The City of Roseville shall terminate by delivering to the Contractor a Notice of Termination specifying the nature of default.
The Contractor will only be paid the contract price for services performed in accordance with the manner of performance set forth in this contract.
If this contract is terminated while the Contractor has possession of Recipient goods, the Contractor shall, upon direction of the City of Roseville, protect and preserve the goods until surrendered to the City of Roseville or its agent. The Contractor and the City of Roseville shall agree on payment for the preservation and protection of goods. Failure to agree on an amount will be resolved under the Dispute clause.
If, after termination for failure to fulfill contract obligations, it is determined that the Contractor was not in default, the rights and obligations of the parties shall be the same as if the termination had been issued for the convenience of the City of Roseville.
h. Termination for Default (Construction) If the Contractor refuses or fails to prosecute the work or any separable part, with the diligence that will insure its completion within the time specified in this contract or any extension or fails to complete the work within this time, or if the Contractor fails to comply with any other provisions of this contract, the City of Roseville may terminate this contract for default. The City of Roseville shall terminate by delivering to the Contractor a Notice of Termination specifying the nature of the default. In this event, the City of Roseville may take over the work and compete it by contract or otherwise, and may take possession of and use any materials, appliances, and plant on the work site necessary for completing the work. The Contractor and its sureties shall be liable for any damage to the City of Roseville resulting from the Contractor's refusal or failure to complete the work within specified time, whether or not the Contractor's right to proceed with the work is terminated. This liability includes any increased costs incurred by the City of Roseville in completing the work.
The Contractor's right to proceed shall not be terminated nor the Contractor charged with damages under this clause if1. the delay in completing the work arises from unforeseeable causes beyond the control and without the fault or negligence of the Contractor. Examples of such causes include: acts of God, acts of the City of Roseville, acts of another Contractor in the performance of a contract with the City of Roseville, epidemics, quarantine restrictions, strikes, freight embargoes; and
2. the contractor, within 10 days from the beginning of any delay, notifies the City of Roseville in writing of the causes of delay. If in the judgment of the City of Roseville, the delay is excusable, the time for completing the work shall be extended. The judgment of the City of Roseville shall be final and conclusive on the parties, but subject to appeal under the Disputes clauses.
If, after termination of the Contractor's right to proceed, it is determined that the Contractor was not in default, or that the delay was excusable, the rights and obligations of the parties will be the same as if the termination had been issued for the convenience of the City of Roseville. i. Termination for Convenience or Default (Architect and Engineering) The City of Roseville may terminate this contract in whole or in part, for the City of Roseville's convenience or because of the failure of the Contractor to fulfill the contract obligations. The City of Roseville shall terminate by delivering to the Contractor a Notice of Termination specifying the nature, extent, and effective date of the termination. Upon receipt of the notice, the Contractor shall (1) immediately discontinue all services affected (unless the notice directs otherwise), and (2) deliver to the Contracting Officer all
40 data, drawings, specifications, reports, estimates, summaries, and other information and materials accumulated in performing this contract, whether completed or in process.
If the termination is for the convenience of the City of Roseville, the Contracting Officer shall make an equitable adjustment in the contract price but shall allow no anticipated profit on unperformed services.
If the termination is for failure of the Contractor to fulfill the contract obligations, the City of Roseville may complete the work by contact or otherwise and the Contractor shall be liable for any additional cost incurred by the City of Roseville.
If, after termination for failure to fulfill contract obligations, it is determined that the Contractor was not in default, the rights and obligations of the parties shall be the same as if the termination had been issued for the convenience of the City of Roseville.
j. Termination for Convenience of Default (Cost-Type Contracts) The City of Roseville may terminate this contract, or any portion of it, by serving a notice or termination on the Contractor. The notice shall state whether the termination is for convenience of the City of Roseville or for the default of the Contractor. If the termination is for default, the notice shall state the manner in which the contractor has failed to perform the requirements of the contract. The Contractor shall account for any property in its possession paid for from funds received from the City of Roseville, or property supplied to the Contractor by the City of Roseville. If the termination is for default, the City of Roseville may fix the fee, if the contract provides for a fee, to be paid the contractor in proportion to the value, if any, of work performed up to the time of termination. The Contractor shall promptly submit its termination claim to the City of Roseville and the parties shall negotiate the termination settlement to be paid the Contractor.
If the termination is for the convenience of the City of Roseville, the Contractor shall be paid its contract close-out costs, and a fee, if the contract provided for payment of a fee, in proportion to the work performed up to the time of termination.
If, after serving a notice of termination for default, the City of Roseville determines that the Contractor has an excusable reason for not performing, such as strike, fire, flood, events which are not the fault of and are beyond the control of the contractor, the City of Roseville, after setting up a new work schedule, may allow the Contractor to continue work, or treat the termination as a termination for convenience.
22. Government-wide Debarment and Suspension (Nonprocurement) 49 CFR Part 29, Executive Order 12549
This contract is a covered transaction for purposes of 49 CFR Part 29. As such, the contractor is required to verify that none of the contractor, its principals, as defined at 49 CFR 29.995, or affiliates, as defined at 49 CFR 29.905, are excluded or disqualified as defined at 49 CFR 29.940 and 29.945.
The contractor is required to comply with 49 CFR 29, Subpart C and must include the requirement to comply with 49 CFR 29, Subpart C in any lower tier covered transaction it enters into.
By signing and submitting its bid or proposal, the bidder or proposer certifies as follows:
The certification in this clause is a material representation of fact relied upon by the City of Roseville. If it is later determined that the bidder or proposer knowingly rendered an erroneous certification, in addition to remedies available to the City of Roseville, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. The bidder or proposer agrees to comply with the requirements of 49 CFR 29, Subpart C while this offer is valid and throughout the period of any contract that may arise from this offer. The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions.
23. Contracts Involving Federal Privacy Act Requirements
41 5 U.S.C. 552
The following requirements apply to the Contractor and its employees that administer any system of records on behalf of the Federal Government under any contract:
1. The Contractor agrees to comply with, and assures the compliance of its employees with, the information restrictions and other applicable requirements of the Privacy Act of 1974, 5 U.S.C. § 552a. Among other things, the Contractor agrees to obtain the express consent of the Federal Government before the Contractor or its employees operate a system of records on behalf of the Federal Government. The Contractor understands that the requirements of the Privacy Act, including the civil and criminal penalties for violation of that Act, apply to those individuals involved, and that failure to comply with the terms of the Privacy Act may result in termination of the underlying contract.
2. The Contractor also agrees to include these requirements in each subcontract to administer any system of records on behalf of the Federal Government financed in whole or in part with Federal assistance provided by FTA.
24. Civil Rights Requirements
29 U.S.C. § 623, 42 U.S.C. § 2000, 42 U.S.C. § 6102, 42 U.S.C. § 12112, 42 U.S.C. § 12132, 49 U.S.C. § 5332, 29 CFR Part 1630, 41 CFR Parts 60 et seq.
Civil Rights - The following requirements apply to the underlying contract:
1. Nondiscrimination - In accordance with Title VI of the Civil Rights Act, as amended, 42 U.S.C. § 2000d, section 303 of the Age Discrimination Act of 1975, as amended, 42 U.S.C. § 6102, section 202 of the Americans with Disabilities Act of 1990, 42 U.S.C. § 12132, and Federal transit law at 49 U.S.C. § 5332, the Contractor agrees that it will not discriminate against any employee or applicant for employment because of race, color, creed, national origin, sex, age, or disability. In addition, the Contractor agrees to comply with applicable Federal implementing regulations and other implementing requirements FTA may issue.
2. Equal Employment Opportunity - The following equal employment opportunity requirements apply to the underlying contract:
a. Race, Color, Creed, National Origin, Sex - In accordance with Title VII of the Civil Rights Act, as amended, 42 U.S.C. § 2000e, and Federal transit laws at 49 U.S.C. § 5332, the Contractor agrees to comply with all applicable equal employment opportunity requirements of U.S. Department of Labor (U.S. DOL) regulations, "Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor," 41 C.F.R.
Parts 60 et seq ., (which implement Executive Order No. 11246, "Equal Employment Opportunity," as amended by Executive Order No. 11375, "Amending Executive Order 11246 Relating to Equal Employment Opportunity," 42 U.S.C. § 2000e note), and with any applicable Federal statutes, executive orders, regulations, and Federal policies that may in the future affect construction activities undertaken in the course of the Project. The Contractor agrees to take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, national origin, sex, or age. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer, recruitment or recruitment advertising, layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. In addition, the Contractor agrees to comply with any implementing requirements FTA may issue.
b. Age - In accordance with section 4 of the Age Discrimination in Employment Act of 1967, as amended, 29 U.S.C. § § 623 and Federal transit law at 49 U.S.C. § 5332, the Contractor agrees to refrain from discrimination against present and prospective employees for reason of
42 age. In addition, the Contractor agrees to comply with any implementing requirements FTA may issue.
c. Disabilities - In accordance with section 102 of the Americans with Disabilities Act, as amended, 42 U.S.C. § 12112, the Contractor agrees that it will comply with the requirements of U.S. Equal Employment Opportunity Commission, "Regulations to Implement the Equal Employment Provisions of the Americans with Disabilities Act," 29 C.F.R. Part 1630, pertaining to employment of persons with disabilities. In addition, the Contractor agrees to comply with any implementing requirements FTA may issue.
3. The Contractor also agrees to include these requirements in each subcontract financed in whole or in part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties.
25. Breaches and Dispute Resolution
49 CFR Part 18, FTA Circular 4220.1E
Disputes - Disputes arising in the performance of this Contract which are not resolved by agreement of the parties shall be decided in writing by the authorized representative of the City of Roseville's [title of employee]. This decision shall be final and conclusive unless within ten (10) days from the date of receipt of its copy, the Contractor mails or otherwise furnishes a written appeal to the [title of employee]. In connection with any such appeal, the Contractor shall be afforded an opportunity to be heard and to offer evidence in support of its position. The decision of the [title of employee] shall be binding upon the Contractor and the Contractor shall abide be the decision.
Performance During Dispute - Unless otherwise directed by the City of Roseville, Contractor shall continue performance under this Contract while matters in dispute are being resolved.
Claims for Damages - Should either party to the Contract suffer injury or damage to person or property because of any act or omission of the party or of any of his employees, agents or others for whose acts he is legally liable, a claim for damages therefor shall be made in writing to such other party within a reasonable time after the first observance of such injury of damage.
Remedies - Unless this contract provides otherwise, all claims, counterclaims, disputes and other matters in question between the City of Roseville and the Contractor arising out of or relating to this agreement or its breach will be decided by arbitration if the parties mutually agree, or in a court of competent jurisdiction within the State in which the City of Roseville is located.
Rights and Remedies - The duties and obligations imposed by the Contract Documents and the rights and remedies available thereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. No action or failure to act by the City of Roseville, (Architect) or Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of or acquiescence in any breach thereunder, except as may be specifically agreed in writing.
26. Patent and Rights Data
37 CFR Part 401, 49 CFR Parts 18 and 19
This section does not apply to this contract.
27. Transit Employee Protective Provisions
49 U.S.C. § 5310, § 5311, and § 5333, 29 CFR Part 215
Transit Employee Protective Provisions.
43 1. The Contractor agrees to the comply with applicable transit employee protective requirements as follows:
a. General Transit Employee Protective Requirements - To the extent that FTA determines that transit operations are involved, the Contractor agrees to carry out the transit operations work on the underlying contract in compliance with terms and conditions determined by the U.S.
Secretary of Labor to be fair and equitable to protect the interests of employees employed under this contract and to meet the employee protective requirements of 49 U.S.C. A 5333(b), and U.S. DOL guidelines at 29 C.F.R. Part 215, and any amendments thereto. These terms and conditions are identified in the letter of certification from the U.S. DOL to FTA applicable to the FTA Recipient's project from which Federal assistance is provided to support work on the underlying contract. The Contractor agrees to carry out that work in compliance with the conditions stated in that U.S. DOL letter. The requirements of this subsection (1), however, do not apply to any contract financed with Federal assistance provided by FTA either for projects for elderly individuals and individuals with disabilities authorized by 49 U.S.C. § 5310(a)(2), or for projects for nonurbanized areas authorized by 49 U.S.C. § 5311. Alternate provisions for those projects are set forth in subsections (b) and (c) of this clause.
b. Transit Employee Protective Requirements for Projects Authorized by 49 U.S.C. § 5310(a)(2) for Elderly Individuals and Individuals with Disabilities - If the contract involves transit operations financed in whole or in part with Federal assistance authorized by 49 U.S.C. § 5310(a)(2), and if the U.S. Secretary of Transportation has determined or determines in the future that the employee protective requirements of 49 U.S.C. § 5333(b) are necessary or appropriate for the state and the public body subrecipient for which work is performed on the underlying contract, the Contractor agrees to carry out the Project in compliance with the terms and conditions determined by the U.S. Secretary of Labor to meet the requirements of 49 U.S.C. § 5333(b), U.S. DOL guidelines at 29 C.F.R. Part 215, and any amendments thereto. These terms and conditions are identified in the U.S. DOL's letter of certification to FTA, the date of which is set forth Grant Agreement or Cooperative Agreement with the state. The Contractor agrees to perform transit operations in connection with the underlying contract in compliance with the conditions stated in that U.S. DOL letter.
c. Transit Employee Protective Requirements for Projects Authorized by 49 U.S.C. § 5311 in Nonurbanized Areas - If the contract involves transit operations financed in whole or in part with Federal assistance authorized by 49 U.S.C. § 5311, the Contractor agrees to comply with the terms and conditions of the Special Warranty for the Nonurbanized Area Program agreed to by the U.S. Secretaries of Transportation and Labor, dated May 31, 1979, and the procedures implemented by U.S. DOL or any revision thereto.
2. The Contractor also agrees to include the any applicable requirements in each subcontract involving transit operations financed in whole or in part with Federal assistance provided by FTA.
28. Disadvantaged Business Enterprise (DBE) – 49 CFR Part 26 a. This contract is subject to the requirements of Section 1101(b) of Map-21, 23U.S.C. § 101 note, Title 49, Code of Federal Regulations, Part 26, and 49 U.S.C. § 5332 Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs. The national goal for participation of Disadvantaged Business Enterprises (DBE) is 10%. The recipient’s overall goal for DBE participation is listed elsewhere. If a separate contract goal for DBE participation has been established for this procurement, it is listed elsewhere.
b. The contractor shall not discriminate on the basis of race, color, religion, national origin or sex in the performance of this contract. The contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of this contract. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the municipal corporation
44 deems appropriate. Each subcontract the contractor signs with a subcontractor must include the assurance in this paragraph (see 49 CFR 26.13(b)).
c. If a separate contract goal has been established, Bidders/offerors are required to document sufficient DBE participation to meet these goals or, alternatively, document adequate good faith efforts to do so, as provided for in 49 CFR 26.53. d. If no separate contract goal has been established, the successful bidder/offeror will be required to report its DBE participation obtained through race-neutral means throughout the period of performance.
e. The contractor is required to pay its subcontractors performing work related to this contract for satisfactory performance of that work no later than 30 days after the contractor’s receipt of payment for that work from the recipient. In addition, the contractor may not hold retainage from its subcontractors or must return any retainage payments to those subcontractors within 30 days after the subcontractor's work related to this contract is satisfactorily completed or must return any retainage payments to those subcontractors within 30 days after incremental acceptance of the subcontractor’s work by the recipient and contractor’s receipt of the partial retainage payment related to the subcontractor’s work. f. The contractor must promptly notify the recipient whenever a DBE subcontractor performing work related to this contract is terminated or fails to complete its work, and must make good faith efforts to engage another DBE subcontractor to perform at least the same amount of work. The contractor may not terminate any DBE subcontractor and perform that work through its own forces or those of an affiliate without prior written consent of the recipient.
29. (Reserved)
This section does not apply to this contract.
30. Incorporation of Federal Transit Administration (FTA) Terms FTA Circular 4220.1E
The preceding provisions include, in part, certain Standard Terms and Conditions required by DOT, whether or not expressly set forth in the preceding contract provisions. All contractual provisions required by DOT, as set forth in FTA Circular 4220.1E are hereby incorporated by reference. Anything to the contrary herein notwithstanding, all FTA mandated terms shall be deemed to control in the event of a conflict with other provisions contained in this Agreement. The Contractor shall not perform any act, fail to perform any act, or refuse to comply with any City of Roseville requests which would cause City of Roseville to be in violation of the FTA terms and conditions.
31. Drug & Alcohol Abuse and Testing
49 U.S.C. §5331, 49 CFR Parts 653 and 654
The Contractor agrees to comply with the following Federal substance abuse regulations: a. Drug-Free Workplace. U.S. DOT regulations, "Drug-Free Workplace Requirements (Grants), " 49 C.F.R. Part 32, that implements the Drug-Free Workplace Act of 1988 as amended, 41 U.S.C. §§ 8103 et seq., and 2 CFR part 182, b. Alcohol Misuse and Prohibited Drug Use. FTA Regulations, Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations," 49 USC 5331, as amended by MAP-21, 49 CFR part 40, 49 USC chapter 53, 49 CFR Part 655, to the extent applicable.
City Council
Communication
Meeting Date: 5/21/2025
Item #: VII.10
File #: 0721
Item ID: 2025-143
Title: SB 125 Transit Funds - Program Funding and Reimbursement Agreement Contact: Ed Scofield 916-774-5449 [email protected]
SUMMARY
Staff recommends approval of a Program Funding and Reimbursement Agreement with Placer County Transportation Planning Agency in the amount of $11,700,133 towards eligible City projects. In the event project costs exceed the SB 125 totals, Local Transportation Funds would likely be used. No General Fund resources will be used.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a Program Funding and Reimbursement Agreement with Placer County Transportation Planning Agency in the amount of $11,700,133 towards eligible City projects.
BACKGROUND
In July of 2023, the State of California passed Senate Bill 125 (SB 125), which serves as a trailer bill to the State’s Fiscal Year (FY) 2023-24 budget. SB 125 creates approximately $5.1 billion statewide, of new onetime funding to help address transit providers’ operating and capital needs. The funding is distributed through two programs, the Transit and Intercity Rail Capital Program (TIRCP) and the Zero Emission Transit Capital Program (ZETCP), over a two-year and four-year period, respectively. As the Regional Transportation Planning Agency (RTPA) for Placer County, PCTPA is administratively responsible for distributing SB 125 program funds to agencies that are eligible to receive TIRCP and ZETCP funding for projects that meet strict criteria established by the SB 125 program’s final guidelines released on September 30, 2023. PCTPA has been allocated $37,851,991 of combined TIRCP and ZETCP funding over the next four fiscal years to administer.
PCTPA worked with the region’s transit operators, including Roseville Transit, and the Capital Corridor Joint Powers Authority to develop a list of projects that were submitted to the California State Transportation Agency (CalSTA) for review in December of 2024, and subsequently approved as eligible to receive the SB 125 program funding allocated to the Placer County region.
Pursuant to the PCTPA Guidelines, Roseville and PCTPA will enter this Program Funding and Reimbursement Agreement to outline each Party’s roles, responsibilities and obligations for the administration of Roseville’s SB 125 funds. The City will receive a total of $11,700,133 in SB125 funding for the following projects:
1. Finalize the overhead charger project at the Galleria Mall and install electric bus chargers at Roseville’s Louis Orlando bus transfer station ($2,510,740).
2. Purchase seven 35’ electric buses for Roseville Transit’s local service ($8,073,143).
3. Funds to install and replace bus shelters at various City locations ($1,116,250).
SB 125 funds will be received on a reimbursement basis, which is common for transportation funding.
FISCAL IMPACT
The total combined cost of the three SB 125 projects is expected to not exceed $11,700,133, which will be entirely funded with SB 125 funds in the Transit Fund. In the event project costs exceed the SB 125 totals, Local Transportation Funds (LTF) would likely be used. No General Fund resources will be used.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) only applies to projects which have the potential to cause a significant effect on the environment. 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, the activity is not subject to CEQA. (CEQA Guidelines §15061(b)(3)).
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
1. Ensure a safe and healthy community
2. Remain fiscally responsible in a changing world
4. Invest in well-planned infrastructure and growth
6. Deliver exceptional City services
Respectfully Submitted,
Ed Scofield, Alternative Transportation Planner
Jason Shykowski, Public Works Director
ATTACHMENTS:
1. Resolution 25-146
2. Reimbursement Agreement
REVIEWERS:
Ed Scofield, Public Works Department - Transportation Created/Initiated - 4/18/2025 Ed Scofield, Public Works Department - Transportation Approved - 4/18/2025 Jason Shykowski, Public Works Department - All Approved - 4/18/2025 Gretchen Hakala, City Attorney Department Approved - 5/7/2025 Katrina Six, City Clerk Department Approved - 5/8/2025
Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 5/8/2025 Michelle Sheidenberger, City Attorney Department Approved - 5/8/2025 Dominick Casey, City Manager Department - City Manager Approved - 5/12/2025 Katrina Six, City Clerk Department Final Approval - 5/13/2025
RESOLUTION NO. 25-146
APPROVING SENATE BILL 125 PROGRAM FUNDING AND REIMBURSEMENT
AGREEMENT, BY AND BETWEEN THE CITY OF ROSEVILLE AND THE PLACER
COUNTY TRANSPORTATION PLANNING AGENCY, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE WHEREAS, Senate Bill 125 Program Funding and Reimbursement Agreement for Senate Bill 125 funds, by and between the City of Roseville and the Placer County Transportation Planning Agency, has been reviewed by the Council; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
_______________________________
MAYOR
ATTEST:
__________________________
City Clerk
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SENATE BILL 125 PROGRAM FUNDING AND REIMBURSEMENT AGREEMENT This Senate Bill 125 Program Funding and Reimbursement Agreement (the “Agreement”) is made as of the ___ day of ____________, 2025 (“Effective Date”) by and between City of Roseville, a municipal corporation providing public transit services (“Agency”) and Placer County Transportation Planning Agency (“PCTPA”), sometimes referred to individually as “Party” and collectively as the “Parties”.
RECITALS
A. In July of 2023, the State of California (State) passed Senate Bill 125 (SB 125), which established a one-time funding program and allocation of $37,851,991 to Placer County for distribution to agencies with eligible transit operations and zero-emission vehicle (ZEV) and infrastructure projects under the Transit and Intercity Rail Capital Program (TIRCP) and newly formed Zero Emission Transit Capital Program (ZETCP). The California State Transportation Authority (CalSTA) is the administrating agency within the State responsible for the allocation of SB 125 Program funds to regional planning entities within California.
B. As the State’s designated Regional Transportation Planning Agency (RTPA), PCTPA is responsible for administering the funding allocated to the Placer County region, following specific guidelines established by CalSTA in accordance with State legislation.
C. PCTPA worked with the region’s transit operators: Auburn Transit, Placer County Transit, Roseville Transit, and the Capital Corridor Joint Powers Authority to develop a list of projects (hereinafter referred to as the “SB 125 allocation project list”) that were submitted to CalSTA for review in December 2024, and subsequently approved as eligible to receive the SB 125 program funding allocated to the Placer County region. A copy of this approval letter, dated July 8, 2024, is contained in Exhibit A of the Agreement.
D. On October 23, 2024, the PCTPA Board of Directors adopted “PCTPA’s Guidelines for the Administration and Distribution of Senate Bill 125 Program Funds” (PCTPA Guidelines), which is contained in Exhibit B of this Agreement, to broadly define how PCTPA will financially administer SB 125 Program funding, reimburse transit operators for their eligible projects based on an established funding agreement, and general reporting/financial auditing responsibilities for each Party.
E. Pursuant to the PCTPA Guidelines, the Parties desire to enter into this Agreement to outline each Party’s roles, responsibilities and obligations for the administration of the Placer County region’s SB 125 Program funds.
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AGREEMENT
Now therefore, for valuable consideration, the receipt and sufficiency are hereby acknowledged, the Parties hereby agree as follows:
1. Administration
1.1. The Recitals are hereby incorporated by reference in this Agreement.
1.2. PCTPA shall be responsible for maintaining all SB 125 Program funding for the Placer County region, and as such, will maintain and track all interest accrued for SB 125 Program funds directly received from the State for disbursement.
1.3. Agency agrees to deliver SB 125 Program funded Eligible Project(s) consistent with and in compliance with the current, or subsequently revised, PCTPA Guidelines in a timely manner and provide PCTPA with notice of any project delivery issues that could potentially jeopardize the project’s completion and/or delivery.
1.4. During the Agreement, Agency shall adhere to all current, or subsequently released, guidelines, regulations and requirements pertaining to the SB 125 Funding Program established by CalSTA and the State’s legislature, which can currently be found online at https://calsta.ca.gov/subject-areas/sb125-transit-program (CalSTA Guidelines).
1.5. Exhibit A of this Agreement contains the letter from CalSTA to PCTPA, dated July 8, 2024, which approves a list of eligible projects (hereinafter referred to “Eligible Project or Projects”) that PCTPA submitted as part of an initial allocation request package to CalSTA to program the Placer County region’s SB 125 Program funding.
More details and fact sheets for each Eligible Project are currently maintained by PCTPA to support the initial allocation request package submitted to CalSTA. Agency must notify PCTPA immediately before making any changes to the scope, cost, and application of SB 125 Program funds for any Eligible Project so that PCTPA can ensure that the Eligible Project remains in compliance with current guidelines, regulations and requirements established for the SB 125 Program funding. Eligible Projects are further defined in Section 3 of the Agreement.
1.6. Formal approval from CalSTA may be required before any change can occur to the Agency’s Eligible Project(s) receiving SB 125 Program funds. PCTPA will act as the sole contact with CalSTA to determine if such change can be made to an Eligible Project, and Agency will not contact CalSTA for approval separately.
1.7. Agency is responsible for maintaining accurate project delivery, financial, and other administrative records that demonstrate how and when SB 125 Program funds are utilized for each Eligible Project receiving funding. If Agency is using SB 125 Program funding in combination with other funding sources for an Eligible Project that has
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multiple-funded components, Agency must demonstrate how SB 125 Program funds are being used solely for supporting expenses related to eligible components within each Eligible Project.
1.8. PCTPA will disburse available SB 125 Program funding to Agency on a reimbursement basis once an Eligible Project is determined to be complete or as otherwise allowed for incremental payments consistent with the CalSTA Guidelines. Agency will not receive SB 125 Program funding before accruing all expenses for an Eligible Project, unless otherwise agreed upon in writing, subject to the terms and provisions established in Section 4 of this Agreement.
1.9. Agency shall be responsible for responding to any and all requests from PCTPA regarding the administration and accounting of SB 125 Program funding, which is further defined in Section 5 of this Agreement.
2. Term and Termination
2.1. The term of this Agreement shall commence on the Effective Date and shall continue until such time as SB 125 Program funds are fully expended or until either Party’s election to terminate this Agreement, with or without cause, by prior written notice to the other Party specifying the date of such termination. Notice of termination from either Party shall be given at least sixty (60) days in advance of the termination date set forth in the notice of termination.
2.2. If either Party terminates all or any part of this Agreement for its convenience under Section 2.1 hereof, PCTPA may retain some or all of the SB 125 Program funding allocated for an Eligible Project(s) and not reimburse Agency if it is determined that Agency’s Eligible Project(s) was not delivered as programmed or in accordance with the State’s established SB 125 Program guidelines, regulations, and requirements.
PCTPA will only provide a reimbursement of SB 125 Program funds to Agency for completed Eligible Projects following any termination of this Agreement. PCTPA will not reimburse Agency for SB 125 Program funds for reimbursement of an incomplete Eligible Project(s), unless the subject Eligible Project has been formally approved by CalSTA for a revision that reduces the Eligible Project’s scope and costs to match the reimbursement being requested by Agency.
2.3. If either Party fails to comply with the terms and conditions of this Agreement, then the Party shall be in default under this Agreement and in addition to all remedies available at law or equity, the other Party may terminate this Agreement upon at least sixty (60) days written notice to defaulting Party. Agency will discontinue work on Eligible Project(s) receiving SB 125 Program funds unless Agency can demonstrate that it will utilize alternative funding sources to deliver the Eligible Project without SB 125 Program funds.
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2.4. If a default can be cured, prior to termination for default, the other Party may issue a cure notice. If the defaulting Party fails to cure the default within fourteen (14) days following the date of the cure notice or commence and complete the cure in accordance with such additional time limits as may be described in the cure notice, the other Party may terminate the Agreement immediately following the defaulting Party’s failure to cure such default within the applicable cure period and discontinue participation in the Agreement.
3. Eligible Projects
3.1. PCTPA, in coordination with and approval from CalSTA, shall be responsible for determining whether Agency has an Eligible Project for SB 125 Program funding, as defined below.
3.2. For the purposes of this Agreement, an Eligible Project is defined as one that meets the goals, objectives and eligibility requirements established pursuant to the State’s TIRCP and ZETCP legislative funding programs and complies with the goals, objectives, and regulations established by CalSTA Guidelines, and/or any subsequent amendments thereof, and consistent with PCTPA’s Guidelines and/or any subsequent amendments thereof.
3.3. Upon request from Agency, PCTPA may consider changes to Eligible Projects, subject to review and approval by CalSTA.
4. Reimbursement Methodology
4.1. PCTPA shall be responsible to reimburse Agency for completed Eligible Project(s) as identified and defined in Exhibit A and Exhibit B, or any subsequent amendment to the Eligible Project(s) as documented and agreed upon pursuant to the terms of this Agreement.
4.2. Agency shall be responsible for notifying PCTPA that an Eligible Project is complete with a Project Invoice, which shall include supporting documentation demonstrating how SB 125 Program funds were used and accounted for in completing the subject project consistent with the applicable CalSTA Guidelines and PCTPA Guidelines.
4.3. On a case-by-case basis, PCTPA may consider a request from Agency to reimburse an Eligible Project that has not fully accrued eligible expenses if the Eligible Project has fully encumbered the expenses for the SB 125 Program funds. However, Agency must provide a timeline for when the funding will be formally accrued and demonstrate how they are able to document and track the use of any interest accrued on SB 125 Program funds released to Agency for an encumbered Eligible Project.
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4.4. Within thirty (30) days following the receipt of Project Invoice, PCTPA shall determine if all delivered components contained within the Project Invoice fully support and demonstrate the Eligible Project’s compliance with applicable SB 125 Program funding requirements, programming, and all other provisions contained within this Agreement. PCTPA will release payment to reimburse Agency for Eligible Project, as programmed and agreed upon, upon determining compliance.
4.5. Should it be determined that Agency’s Project Invoice is not complete and/or compliant with SB 125 Funding Program requirements and provisions, PCTPA will provide Agency with an opportunity and assistance to remedy the matter until such a determination can be made.
4.6. All outstanding invoice(s) shall be payable within thirty (30) days upon termination of this Agreement conditioned on PCTPA’s determination that such is in compliance with SB 125 Funding Program funding requirements.
5. Auditing and Reporting Requirements
5.1. Agency agrees to provide PCTPA with the appropriate documentation, reports, financial records, and other relevant materials necessary to support the administration of SB 125 Program funding.
5.2. Should PCTPA be audited by CalSTA for SB 125 Program funding administration, Agency may be responsible for providing staffing and/or other material resources during the subject audit event at PCTPA’s request.
5.3. Agency must support PCTPA during any recurring SB 125 Program reporting events pursuant to State legislation and CalSTA’s current guidelines. Failure to provide support to PCTPA regarding reporting for Eligible Project(s) may result in PCTPA withholding reimbursement of SB 125 Program funds to Agency.
5.4. Agency agrees to conduct due diligence and follow all relevant professional accounting procedures to accurately record progress and track funding utilized for each Eligible Project receiving SB 125 Program funds during the life of the project. Agency must demonstrate a good faith effort to deliver the Eligible Project in accordance with this Agreement and applicable State regulations for the SB 125 Program funding.
5.5. Audits and on-site monitoring can take place at any time at the discretion of CalSTA, without prior warning given. CalSTA has the right to audit the project records, including technical and financial data of PCTPA, Agency, and any consultant or subconsultants at any time after award, during the course of the project and for three years from the date of the final closeout of the project, therefore all project records shall be maintained and made available at the time of request.
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5.6. Agency must comply with all applicable Federal, State, and local laws, codes, ordinances, regulations, orders, circulars, and directives, including without limitation SB 125 Program CalSTA Guidelines, and PCTPA Guidelines. Agency must encumber and expend monies consistent with State law and ensure that GGRF monies provided through the SB 125 Program funding are utilized consistent with the expenditure record submitted by CalSTA and required by Senate Bill 1018. A determination that use of GGRF monies is not consistent with the expenditure record and does not further the purposes of Assembly Bill 32 (AB 32) may occur during legal proceedings or during an audit or program review conducted by the Bureau of State Audits, Department of Finance, a third-party auditor, or the California Air Resources Board (CARB). Depending on the outcome of those proceedings or review, Agency may be required to return monies to PCTPA and/or the State if expenditures are not consistent with the statutory requirements (such as not furthering the purposes of AB 32).
6. Noticing
6.1. All notices required or permitted hereunder shall be delivered in person, by messenger, by overnight courier or by registered or certified mail, postage prepaid, return receipt requested, or by electronic mail (email) to the receiving Party at its address shown below or to any other place designated in writing by such Party. Any such notice shall be deemed received: (i) upon delivery, if delivered personally or by messenger; (ii) the next business day after delivery if delivered by courier; or (iii) three (3) days after deposit into the United States Mail in Placer County, California, if delivered by registered or certified mail.
To PCTPA: Placer County Transportation Planning Agency
2260 Douglas Blvd., Suite 130
Roseville, CA 95661
Attention: Mike Costa, Principal Transportation Planner E-mail: [email protected]
(530) 823-4029
To Agency: City of Roseville
316 Vernon Street, Suite 150
Roseville, CA 95678
Attention: Ed Scofield, Alternative Transportation Manager E-mail: [email protected]
(916) 774-5449
7. Indemnity
7.1. Agency shall indemnify, defend, and hold harmless PCTPA, its directors, officers, members, agents, and employees (collectively and individually, the “Indemnitee(s)”)
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from and against any and all actions, claims, demands, losses, costs, expenses, including reasonable attorneys’ fees and costs, damages, and liabilities (collectively “Losses”) arising out of or in any way connected with the performance of this Agreement, including, without limitation, any demand for return of all or a portion of the funds provided by PCTPA to Agency under this Agreement, excepting only Losses caused by the sole, active negligence or willful misconduct of an Indemnitee in proportion to fault. Agency shall pay all costs and expenses that may be incurred by PCTPA in enforcing this indemnity, including reasonable attorneys’ fees. The provisions of this Section shall survive the expiration, termination, or assignment of this Agreement.
7.2. PCTPA shall not be liable to Agency or any third party for any claim for loss of profits or consequential damages. Further, PCTPA shall not be liable to Agency or any third party for any loss, cost, claim, or damage, either direct or consequential, allegedly arising from a delay in performance or failure to perform under this Agreement.
8. General Provisions
8.1. Projects awarded funding from SB 125 are expected to document and publicize the TIRCP and ZETCP in proper context when developing press releases and board documents, or in hosting public events such as project groundbreakings. References should be made to TIRCP, ZETCP, the California State Transportation Agency as the program sponsor, and the State programs as fund sources, as applicable, in order to ensure transparency regarding the funding of the projects. Additional details may be provided.
8.2. No officer, member, or employee of PCTPA or Agency and no members of its respective governing body, and no other public official or employee of the governing body of the locality of localities included within PCTPA and/or Agency’s service boundaries, during his or her tenure or for one year thereafter, shall have any interest, direct or indirect, in this Agreement or the proceeds thereof.
8.3. This Agreement may not be amended or modified except by means of a writing executed by both Parties and expressly stating that it is an amendment or modification to this Agreement. Nothing in this Agreement shall be construed to give third party beneficiary rights to any person not a party to this Agreement.
8.4. Nothing in this Agreement shall be construed to limit Agency’s right to establish service routes, make capital purchases, or perform any functions authorized by Agency’s governing body. Nothing herein shall be construed to give PCTPA rights to receive any particular transit service routes, levels of service, or Agency participation.
No provision of this Agreement shall be construed to require Agency to continue to operate any transit services to or from PCTPA or elsewhere during the Term of the Agreement, and it is expressly agreed that Agency shall incur no liability to PCTPA by
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reason of any rerouting, rescheduling, discontinuance or other changes in transit services operated by Agency.
8.5. The Parties shall be responsible for the acts and omissions of their respective officers, employees, and agents; provided, however, that nothing in this provision or otherwise contained in the provisions of this Agreement shall be construed as an express or implied waiver by either party.
8.6. This Agreement supersedes all prior agreements between the Parties with respect to its subject matter and constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter. Any oral representations or modifications concerning this Agreement shall be of no force or effect.
8.7. Agency, and the agents and employees of Agency, in the performance of this Agreement, will act as and be independent contractors and not officers or employees or agents of PCTPA. Agency, its officers, employees, agents, and subcontractors, if any, will have no power to bind or commit PCTPA to any decision or course of action, and will not represent to any person or business that they have such power. Agency has and will retain the right to exercise full control of the supervision of the work and over the employment, direction, compensation and discharge of all persons assisting Agency in the performance of work funded by this Agreement. Agency will be solely responsible for all matters relating to the payment of its employees and contractors including, but not limited to, compliance with all laws, statutes, and regulations governing such matters.
8.8. Agency shall not assign this Agreement, or any part thereof, without prior written approval of PCTPA, and any assignment without said consent shall be void and unenforceable, unless otherwise approved in writing by PCTPA.
8.9. This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement. Documents executed, scanned, and transmitted electronically and electronic signatures shall be deemed original signatures for purposes of this agreement and all matters related thereto, with such scanned and electronic signatures having the same legal effect as original handwritten signatures.
8.10. Each person signing this Agreement on behalf of each Party represents and warrants that the Party as named herein is a legal entity authorized to do business in the State of California and that he or she is duly authorized and has legal capacity to execute and deliver this Agreement on behalf of Party. Each Party represents and warrants to the other that the execution and delivery of the Agreement and the performance of such Party’s obligation hereunder have been duly authorized, no consent of any other party to do so is required except for consents that have been obtained or made and
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are in full effect, and that the Agreement is a valid and legal agreement binding on such party and enforceable in accordance of these terms.
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.
Placer County Transportation Planning Agency: City of Roseville:
By: By:
Matt Click, Executive Director Dominick Casey, City Manager Approved as to form:
By: By:
Authorized Agent Authorized Agent
Gavin Newsom
Governor
Toks Omishakin
Secretary
400 Capitol Mall, Suite 2340
Sacramento, CA 95814
916-323-5400
www.calsta.ca.gov
California Transportation Commission Board of Pilot Commissioners California Highway Patrol Department of Motor Vehicles Department of Transportation High Speed Rail Authority Office of Traffic Safety New Motor Vehicle Board July 8, 2024
Mr. Matt Click
Executive Director
Placer County Transportation Planning Agency (PCTPA)
299 Nevada Street
Auburn, CA 95603
Dear Mr. Click:
In December 2023 PCTPA requested an allocation of $37,851,991 across all fiscal years to support the project listed below. This allocation includes a maximum request of $378,520 (ZETCP PTA) for administrative costs.
1. Sacramento to Roseville Third Main Track Phase 1 (existing TIRCP project and expanded scope): Uses $10,000,000 of TIRCP funds to support completion of this existing project.
2. Electric Charging Infrastructure (new TIRCP project): Uses $2,510,740 of TIRCP funds for this new project. Elements include construction of two new electric overhead charging stations at the Roseville Transit Galleria Mall and at the Louis Lane & Orlando Avenue Transit Center in Roseville, CA.
3. Electric Bus and Van Purchases (new TIRCP project): Uses $3,354,086 of TIRCP funds and $4,730,057 of ZETCP funds across all fiscal years to support this new project. Project includes purchasing twelve 40-foot electric buses to support interregional commuter services, nine 35-foot electric buses for use on local route services, and twelve electric vans to support on-demand microtransit services.
4. Electric Van Purchase (new TIRCP project): Uses $400,000 of TIRCP funds to purchase two electric transit vans to support increased demand on existing microtransit services.
5. City Corporation Yard EV Charging Infrastructure Upgrades (new TIRCP project):
Uses $600,000 of TIRCP funds across all fiscal years to support this new project.
Project includes the design and construction of charging infrastructure at this transit yard, which is operated by Auburn Transit.
6. Roseville Transit Bus Shelter Replacement (new TIRCP project): Uses $1,116,250 of future year TIRCP for this new project. Includes removal of substandard shelters and installation of new shelters. Shelter replacement will be prioritized by their existing condition and proximity to disadvantaged communities.
7. Nevada Street Station Electric Charging Infrastructure (new TIRCP project): Uses $1,610,740 of future year TIRCP for this new project. Includes the design and construction of bus charging infrastructure at this transit station located in Auburn.
EXHIBIT A
July 8, 2024
8. Capital Bus Purchase and ZEB Charging Infrastructure Improvements (new TIRCP project): Uses $13,162,598 of future year TIRCP for this new project. Elements include purchasing four cut-away buses to replace and expand vehicles of the existing fleet being used for microtransit services. Also includes purchasing eight new buses to be used on fixed-route services as well as installation of charging infrastructure.
CalSTA has reviewed for completeness the allocation request, including the required data and technical submissions and the proposed project. It has been determined the submission package meets the minimum program requirements and I am pleased to notify you that the allocation request has been approved. CalSTA will continue working with PCTPA and partner state agencies to analyze and validate the technical submissions prior to future disbursements.
CalSTA will disburse $16,356,936 of TIRCP funds (100% General Fund) and $1,900,006 of ZETCP funds ($1,019,543.22 GGRF + $880,462.78 PTA) for a cumulative total of $18,256,942. A total amount of $16,397,478 of TIRCP and $3,197,571 of ZETCP remains available to PCTPA in future fiscal years. This funding will be disbursed in future allocation actions.
CalSTA will modify the SB 125 Program Guidelines no later than September 30, 2024, for the distribution of funds for the 2024-25 fiscal year, which may include updated fund totals available to PCTPA per year across all fiscal years that were impacted as part of the 2024 final budget agreement.
PCTPA is responsible for tracking the receipt and utilization of these funds separately, and recording interest earned (or other investment income earned) on each fund source separately. The interest or investment earnings must also be spent on approved eligible projects within each program and will be accounted for when PCTPA submits its required Annual Report.
Please expect additional correspondence from CalSTA to verify PCTPA‘s proper account information prior to the completion of the transfer of funds.
If you have any questions, please contact CalSTA Chief Deputy Secretary Chad Edison at 916-247-0322.
Sincerely,
TOKS OMISHAKIN
Secretary
EXHIBIT A
PCTPA’s Guidelines for the Administration and Distribution of SB125 Program Funds Adopted by the PCTPA Board of Directors on October 23, 2024
Background
In July of 2023, the State of California passed Senate Bill 125 (SB 125), which established a one-time funding allocation of $37,851,991 to Placer County for distribution to agencies with eligible zeroemission vehicle (ZEV) and infrastructure projects under the Transit and Intercity Rail Capital Program (TIRCP) and newly formed Zero Emission Transit Capital Program (ZETCP). In December of 2023, the PCTPA Board of Directors directed PCTPA staff to coordinate with the region’s transit operators to administer the SB 125 program funding and submit all the necessary documentation to claim the region’s funding allocation from the California State Transportation Agency (CalSTA).
PCTPA staff subsequently submitted a funding allocation claim package to CalSTA by December 31, 2023, which apportioned the region’s allocation to the following project sponsors/agencies for delivery of their respective projects shown, below, in Table 1.
Table 1: Apportionment of SB 125 Funding Allocation for Placer County Project Project
Sponsor/Agency
SB 125 Funding Amount
(Program Source)
PCTPA Administration
(1% of SB 125 funding allocation)
Placer County
Transportation
Planning Agency
$378,520
(ZETCP PTA)
Sacramento to Roseville Third Main Track Phase 1 Capitol Corridor Joint Powers Authority
$10,000,000
(TIRCP)
Electric Charging Infrastructure for Roseville Transit
and the South Placer Transit Service at the Galleria
Mall and the Louis Lane & Orlando Avenue Transit
Center
City of Roseville $2,510,740
(TIRCP)
Electric Bus and Van Purchases for the Roseville
Transit and Arrow Services City of Roseville $3,354,086 (TIRCP)+ $4,719,057 (ZETCP) Electric Van Purchases for the Auburn OnDemand
Service City of Auburn $400,000(TIRCP)
Auburn City Corporation Yard Electric Vehicle
Charging Infrastructure Upgrades City of Auburn $600,000(TIRCP) Roseville Transit Bus Shelter Replacement City of Roseville $1,116,250 (TIRCP) Nevada Street Station Electric Charging
Infrastructure City of Auburn $1,610,740 (TIRCP)
Capital Bus Purchase and Zero Emission Bus
Charging Infrastructure Improvements
County of Placer $13,162,598
TOTAL: $37,851,991
In July 2024, CalSTA notified PCTPA staff that the allocation funding request package was determined to be complete and that the funding requested has been approved for disbursement to PCTPA (refer to Attachment 1 containing the CalSTA determination for PCTPA’s SB 125 funding allocation request).
In preparation of receiving the SB 125 funds, PCTPA staff met with the region’s three transit operators (i.e., Auburn Transit, Placer County Transit, and Roseville Transit) on August 8, 2024, to discuss how the funding would be distributed once received.
EXHIBIT B
PCTPA’s Guidelines for the Administration and Distribution of SB125 Program Funds Adopted by the PCTPA Board of Directors on October 23, 2024
Administration and Distribution of SB 125 Funding
The following guidelines memorialize the agreed upon methodology that PCTPA will use to administer and distribute the SB 125 program funding. All agencies receiving the funding are subject to compliance with CalSTA’s established Budget Act of 2023 SB 125 Formula-Based Transit and Intercity Rail Capital Program & Zero Emission Capital Program Final Guidelines, September 29, 2023 (SB 125 Guidelines).
Maintaining an SB 125 Account and Tracking Funding Received Per the SB 125 Guidelines, PCTPA has created a dedicated account to maintain all SB 125 program funds received. Interest earned on the SB 125 funds will be tracked by PCTPA and can be distributed to eligible SB 125 projects at the discretion of PCTPA, in coordination with the region’s eligible agencies that can receive funding. PCTPA staff shall provide a summary of the SB 125 account’s fund balance and interest earned to the PCTPA Board of Directors annually, or upon request by PCTPA’s member agencies and/or project sponsors/agencies.
Distribution of SB 125 Funds
PCTPA will distribute SB 125 funding to project sponsors/agencies on a first-come, first-served basis, per the SB 125 funding amounts identified in Table 1. To receive SB 125 funds, project sponsors/agencies must submit proof of expenditure to PCTPA identifying how the project expenses have been either accrued or paid by the agency for the eligible project. PCTPA will then release SB 125 funding to the agency up to the amount approved as part of the CalSTA allocation request package (or any other subsequent amendment thereto). On a case-by-case basis, if a project sponsor/agency requires SB 125 funding for a project prior to accruing its expenses, PCTPA may release funding upon proof that the project sponsor/agency is committed to expending the funds expeditiously as intended in the CalSTA allocation request package (i.e., a purchase order and/or other funding expenditure commitment document is provided).
In collaboration with the project sponsors/agencies receiving SB 125 funding, a funding distribution schedule has been prepared to help PCTPA staff determine the readiness of projects able to expend and receive SB 125 funding (refer to Attachment 2). This schedule will be used to guide the distribution of available SB 125 funds to project sponsors/agencies actively implementing their respective projects and will be updated periodically in coordination with the project sponsors/agencies.
Funding Agreements
PCTPA will create a basic funding reimbursement agreement with each project sponsor/agency receiving SB 125 funds. This agreement will establish a general understanding and acknowledgement of how SB 125 funds will be disbursed for projects receiving the funds, and the project sponsor’s/agency’s reporting and auditing requirements.
Reporting and Auditing Requirements
Each project sponsor/agency receiving SB 125 funding is responsible for accurately tracking the receipt and expenditure of SB 125 funds for their respective projects in accordance with CalSTA’s SB 125 Guidelines. Upon request, project sponsors/agencies may be required to submit the necessary
EXHIBIT B
PCTPA’s Guidelines for the Administration and Distribution of SB125 Program Funds Adopted by the PCTPA Board of Directors on October 23, 2024
financial and other supporting documentation to PCTPA for the SB 125 program’s administration.
Project sponsors/agencies unable to comply with these responsibilities may be subject to returning their SB 125 funds back to PCTPA for distribution to other eligible projects.
Amendments or Changes to SB 125 Funded Projects
Project sponsors/agencies must expend SB 125 funds on the projects identified in the SB 125 allocation request package submitted to and approved by CalSTA (Table 1). PCTPA may consider changes to existing and/or new SB 125 eligible projects upon request by the project sponsors/agencies. However, changes and/or additions to the SB 125 projects receiving funding may require approval from CalSTA before PCTPA can reprogram and distribute the funding accordingly.
EXHIBIT B
Gavin Newsom
Governor
Toks Omishakin
Secretary
400 Capitol Mall, Suite 2340
Sacramento, CA 95814
916-323-5400
www.calsta.ca.gov
California Transportation Commission Board of Pilot Commissioners California Highway Patrol Department of Motor Vehicles Department of Transportation High Speed Rail Authority Office of Traffic Safety New Motor Vehicle Board July 8, 2024
Mr. Matt Click
Executive Director
Placer County Transportation Planning Agency (PCTPA)
299 Nevada Street
Auburn, CA 95603
Dear Mr. Click:
In December 2023 PCTPA requested an allocation of $37,851,991 across all fiscal years to support the project listed below. This allocation includes a maximum request of $378,520 (ZETCP PTA) for administrative costs.
1. Sacramento to Roseville Third Main Track Phase 1 (existing TIRCP project and expanded scope): Uses $10,000,000 of TIRCP funds to support completion of this existing project.
2. Electric Charging Infrastructure (new TIRCP project): Uses $2,510,740 of TIRCP funds for this new project. Elements include construction of two new electric overhead charging stations at the Roseville Transit Galleria Mall and at the Louis Lane & Orlando Avenue Transit Center in Roseville, CA.
3. Electric Bus and Van Purchases (new TIRCP project): Uses $3,354,086 of TIRCP funds and $4,730,057 of ZETCP funds across all fiscal years to support this new project. Project includes purchasing twelve 40-foot electric buses to support interregional commuter services, nine 35-foot electric buses for use on local route services, and twelve electric vans to support on-demand microtransit services.
4. Electric Van Purchase (new TIRCP project): Uses $400,000 of TIRCP funds to purchase two electric transit vans to support increased demand on existing microtransit services.
5. City Corporation Yard EV Charging Infrastructure Upgrades (new TIRCP project):
Uses $600,000 of TIRCP funds across all fiscal years to support this new project.
Project includes the design and construction of charging infrastructure at this transit yard, which is operated by Auburn Transit.
6. Roseville Transit Bus Shelter Replacement (new TIRCP project): Uses $1,116,250 of future year TIRCP for this new project. Includes removal of substandard shelters and installation of new shelters. Shelter replacement will be prioritized by their existing condition and proximity to disadvantaged communities.
7. Nevada Street Station Electric Charging Infrastructure (new TIRCP project): Uses $1,610,740 of future year TIRCP for this new project. Includes the design and construction of bus charging infrastructure at this transit station located in Auburn.
ATTACHMENT 1
July 8, 2024
8. Capital Bus Purchase and ZEB Charging Infrastructure Improvements (new TIRCP project): Uses $13,162,598 of future year TIRCP for this new project. Elements include purchasing four cut-away buses to replace and expand vehicles of the existing fleet being used for microtransit services. Also includes purchasing eight new buses to be used on fixed-route services as well as installation of charging infrastructure.
CalSTA has reviewed for completeness the allocation request, including the required data and technical submissions and the proposed project. It has been determined the submission package meets the minimum program requirements and I am pleased to notify you that the allocation request has been approved. CalSTA will continue working with PCTPA and partner state agencies to analyze and validate the technical submissions prior to future disbursements.
CalSTA will disburse $16,356,936 of TIRCP funds (100% General Fund) and $1,900,006 of ZETCP funds ($1,019,543.22 GGRF + $880,462.78 PTA) for a cumulative total of $18,256,942. A total amount of $16,397,478 of TIRCP and $3,197,571 of ZETCP remains available to PCTPA in future fiscal years. This funding will be disbursed in future allocation actions.
CalSTA will modify the SB 125 Program Guidelines no later than September 30, 2024, for the distribution of funds for the 2024-25 fiscal year, which may include updated fund totals available to PCTPA per year across all fiscal years that were impacted as part of the 2024 final budget agreement.
PCTPA is responsible for tracking the receipt and utilization of these funds separately, and recording interest earned (or other investment income earned) on each fund source separately. The interest or investment earnings must also be spent on approved eligible projects within each program and will be accounted for when PCTPA submits its required Annual Report.
Please expect additional correspondence from CalSTA to verify PCTPA‘s proper account information prior to the completion of the transfer of funds.
If you have any questions, please contact CalSTA Chief Deputy Secretary Chad Edison at 916-247-0322.
Sincerely,
TOKS OMISHAKIN
Secretary
ATTACHMENT 1
10/1/2024
Recipient Funding Source
(TIRCP or ZETCP) 2023/24 2024/25 2025/26 2026/27 Estimated Costs % Share Received Notes (as of August 8, 2024) PCTPA SB 125 Administration (1%) ZETCP $ 378,520 $ 378,520 1% Per SB 125 program guidelines, this amount was required to be requested up front in FY 23/24
Placer County (PCT and TART) $ 5,229,754 $ 7,932,844 $ - $ - $ 13,162,598 35% Capital Bus Purchases & ZEB Charging Infrastructure
Improvements
TIRCP $ 5,229,754 $ 7,932,844 $ - $ 13,162,598
Advanced $5.2 million from FY 24/25 to FY 23/24 to cover immediate expenditure needs for TART electric bus purchases ($2.2 million) and PCT bus replacement needs (CNG and electric, $3 million). May advance more bus purchases from FY 2024/25 to utilize FY 2023/24 funding available.
Auburn $ 1,000,000 $ 1,610,740 $ - $ - $ 2,610,740 7%
Electric Vehicle (EV) Van purchase TIRCP $ 400,000 $ - $ - $ - $ 400,000 No change proposed, vehicle purchase to encumber expenses in FY 24/25
City Corporation Yard (EV) Charging Infrastructure
Upgrades TIRCP $ 600,000
Advanced City Corp Yard charging infrastructure project ($600K) to FY 23/24 to accommodate more immediate expenditure needs encumbered in FY 24/25
Nevada Street Station Electric Charging Infrastructure
Improvements
TIRCP $ - $ 1,610,740 $ - $ - $ 1,610,740 No change proposed, design work to begin in FY 23/24 Roseville $ 7,386,312 $ 2,182,107 $ 1,065,857 $ 1,065,857 $ 11,700,133 31% Electric Bus and Van Purchases TIRCP and ZETCP $ 4,875,572 $ 1,065,857 $ 1,065,857 $ 1,065,857 $ 8,073,143 Only approximately $1.1 million needed in FY 23/24 for ZEV bus and van purchases, with mor funding being needed in FY 24/25.
However, Roseville anticipates fully encumbering funding for this project by FY 27/28
Electric Charging Infrastructure Projects: Roseville
Galleria and Louis Orlando TIRCP $ 2,510,740 $ 2,510,740 Funding for Galleria charging needed now to address current construction expenses, Louis/Orlando includes design and construction funding that can be expended by FY 27/28
Roseville Transit Bus Shelter Replacement TIRCP $ 1,116,250 $ - $ 1,116,250 No change proposed, planning work to start following Roseville COA project completion in FY 24/25
Capitol Corridor Joint Powers Authority $ - $ - $ 5,000,000 $ 5,000,000 $ 10,000,000 26% Sacramento to Roseville Third Main Track: Phase 1 TIRCP $ 5,000,000 $ 5,000,000 $ 10,000,000 Per conversation with CCJPA staff, funding is needed in FY 25/26 or FY 26/27 at the latest
Request Total $ 13,994,586 $ 11,725,691 $ 6,065,857 $ 6,065,857 $ 37,851,991 $ 37,851,991 SB 125 Funding Allocation $ 18,256,942 $ 6,531,683 $ 6,531,683 $ 6,531,683 $ 37,851,991 Capacity (Excess or Shortfall) $ 4,262,356 $ (5,194,008) $ 465,826 $ 465,826 $ - LEGEND
Available Funding Capacity
Over Available Funding Capacity
Estimated amounts of SB 125 funding to be
distributed annually during planning period
Draft SB 125 Funding Plan
5-Year Funding Plan (August 2024)
ATTACHMENT 2
City Council
Communication
Meeting Date: 5/21/2025
Item #: VII.11
File #: 0214 & 0201-01
Item ID: 2025-185
Title: California Energy Commission's Distributed Electricity Backup Assets Grant Award - Budget Adjustment
Contact: Matt Nelson 916-774-5618 [email protected]
SUMMARY
Staff recommends approval of a budget adjustment in the amount of $1,374,747 for the receipt of the California Energy Commission's Distributed Electricity Backup Assets grant award for the Roseville Peaking Plant Combustion Turbines Upgrade Project in the Electric Fund.
RECOMMENDATION
Staff recommends that the City Council adopt an ordinance authorizing the City Manager to approve a budget adjustment to establish a revenue budget for the California Energy Commission's (CED) Distributed Electricity Backup Assets (DEBA) grant for the Roseville Peaking Plant Combustion Turbines Upgrade Capital Improvement Project (CIP) in the amount of $1,374,747.
BACKGROUND
Roseville Electric Utility was accepted into the CEC's DEBA Grant Program with City Council approval on December 6, 2023, Item #8.1, Resolution 23-470. Acceptance into the DEBA Grant Program was a key item for the electric utility to take ownership of the peaking plants located at the Roseville Energy Park.
The maximum contracted reimbursable amount for the DEBA grant is $1,374,747 for qualified expenses through March 29, 2032. The DEBA grant provides funding to add equipment to improve the efficiency and performance of the peaking plants. The project, with a total expenditure budget of $9,280,000, will update the Roseville Peaking Plant Combustion Turbines by adding evaporative cooling and gas compression to the units.
FISCAL IMPACT
Approval of this budget adjustment establishes a revenue budget in the Electric Fund for the CEC's DEBA grant for the RPEAK Combustion Turbine Upgrade CIP in the amount of $1,374,747.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378. The budget adjustment meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
2. Remain fiscally responsible in a changing world
4. Invest in well-planned infrastructure and growth
Respectfully Submitted,
Matt Nelson, Senior Electric Business Analyst
Daniel Beans, Electric Utility Director
ATTACHMENTS:
1. Ordinance 6941
REVIEWERS:
Jordan Mahallati, Electric Department - Financial & Administrative Created/Initiated - 4/28/2025 Joanna Cucchi, Electric Department - Financial & Administrative Approved - 4/29/2025 Shawn Matchim, Electric Department - All Approved - 5/2/2025 Daniel Beans, Electric Department - All Approved - 5/2/2025 Gretchen Hakala, City Attorney Department Approved - 5/7/2025 Katrina Six, City Clerk Department Approved - 5/7/2025
Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 5/7/2025 Michelle Sheidenberger, City Attorney Department Approved - 5/8/2025 Dominick Casey, City Manager Department - City Manager Approved - 5/8/2025 Katrina Six, City Clerk Department Final Approval - 5/8/2025
ORDINANCE NO. 6941
ORDINANCE OF THE COUNCIL OF THE CITY OF ROSEVILLE
AUTHORIZING CERTAIN AMENDMENTS TO THE FISCAL YEAR 2024-25
BUDGET AND DECLARING THIS ORDINANCE TO BE IMMEDIATELY
EFFECTIVE AS AN APPROPRIATION MEASURE
THE CITY OF ROSEVILLE ORDAINS:
SECTION 1. The City of Roseville Annual Budget, Fiscal Year 2024-25, is hereby amended as listed on the attached budget adjustment for the California Energy Commission's Distributed Electricity Backup Assets Grant Award.
SECTION 2. This ordinance is hereby declared to be an appropriation measure, immediately effective pursuant to the provisions of Section 5.03 of the Charter.
SECTION 3. The City Clerk is hereby authorized and directed to post a true copy of the foregoing ordinance in each of three (3) conspicuous locations in the City and she shall immediately after such posting enter in the ordinance book, under the record of the ordinance, a certificate under her hand stating the time and place of such publication by posting.
PASSED AND ADOPTED by the Council of the City of Roseville, this day of , 2025, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
MAYOR
ATTEST:
City Clerk
REQUEST FOR BUDGET ADJUSTMENT
Updated 11/22/2024
Please complete the cells highlighted in yellow.
REQUESTER NAME & TITLE: FISCAL YEAR:
PREPARER NAME & TITLE: ORDINANCE:
DEPARTMENT/DIVISION:
EXPENDITURES/EXPENSES/TRANSFERS OUT
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
EXPENDITURES/EXPENSES/TRANSFERS OUT TOTAL -
REVENUES/TRANSFERS IN
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
6001 4410 84701 700061 1,374,747 Establish grant revenue for RPEAK CTs Upgrade CIP REVENUES/TRANSFERS IN TOTAL 1,374,747
NET ADJUSTMENT (1,374,747)
FUND BALANCE
ACCOUNT STRING BUDGET ($)
Fund Account Center Project Adjustment DESCRIPTION
6001 3601 00000 000000 1,374,747 Increase Electric Fund Balance 3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
3601 00000 000000
FUND BALANCE TOTAL 1,374,747
Justification for Budget Adjustment:
This budget adjustment is to add a revenue budget (state grant) of $1,374,747 to the existing Electric - RPEAK CTs Upgrade project. Roseville Electric was accepted into the California Energy Commission's (CEC) Distributed Electricity Backup Assets (DEBA) Grant Program. The maximum contracted reimbursable amount for the DEBA grant is $1,374,747 for qualified expenses through 3/29/2032. This project, with a total expenditure budget of $9,280,000, will update the Roseville Peaking Plant Combustion Turbines by adding evaporative cooling and gas compression to the TM2500 units.
Matt Nelson, Senior Electric Business Analyst 2024-25
Jordan Mahallati, Assistant Electric Analyst
Electric
City Council
Communication
Meeting Date: 5/21/2025
Item #: VII.12
File #: 0203-07
Item ID: 2025-191
Title: Roseville Energy Park Sample Panel Upgrade - Sole Source Contract Purchase Agreement
Contact: Michael Zasso 916-746-1665 [email protected]
SUMMARY
Staff recommends approval of a sole source contract purchase agreement with Sentry Equipment Corporation (Sentry) in the amount of $92,470 for installation services to upgrade the Sample Panel at the Roseville Energy Park and grant staff the authority to approve change orders up to 10% of the overall contract amount, or $9,247, for a total of $101,717. Since Sentry is the original equipment manufacturer and is providing the new Sample Panel, their services are required for its installation. Funding is included in the Electric Department's FY2024-25 budget in the Electric Fund.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution to approve a sole source Contract Purchase Agreement with Sentry Equipment Corporation in the amount of $92,470 for installation services to upgrade the Sample Panel at the Roseville Energy Park, and authorize the City Manager to execute it.
Staff additionally request authority to approve change orders up to 10% of the overall contract amount.
BACKGROUND
The Roseville Energy Park (REP) produces steam in two Heat Recovery Steam Generators (HRSG). The steam is utilized in a steam turbine to generate electricity. To maintain proper water and steam chemistry in the two HRSGs, a highly specialized Sample Panel is used to collect and cool sample streams from multiple stages of the HRSG in the laboratory for analysis.
The existing sample panel is at end of life and needs to be replaced to maintain safe and proper HRSG and REP operation. In September 2023, City Council approved Resolution 23-387 authorizing the sole source Purchase Order (PO) with Sentry Equipment Corporation (Sentry) for a new Sample Panel at the Roseville Energy Park (REP), as they are the original equipment manufacturer. The presented quote from Sentry (220426A R7) separated the materials/equipment PO costs, $373,278.33, and the installation/demolition services Contract Purchase Agreement (CPA) costs, $92,470.
Through Resolution 23-387, Council approval was received for the purchase of the equipment only, due to the long equipment lead time (28-30 weeks). Meanwhile, Sentry was in the process of obtaining the required licenses to perform the installation services on site at the REP. Sentry has now satisfied the California Department of Industrial Relations registration and licensing requirements to perform the installation/demolition services portion of the project. Since Sentry is the original equipment manufacturer and is providing the new Sample Panel, their services are required for its installation.
FISCAL IMPACT
The total cost of the installation services is $92,470. The change order authority amount is $9,247, which
is 10% of the CPA, for a total of $101,717. Funding is included in the Electric Department's FY2024-25 budget in the Electric Fund.
ENVIRONMENTAL REVIEW
The proposed project involves operational minor alterations of an existing facility. This activity is categorically exempt from CEQA as a Class 1 Exemption (State CEQA Guidelines Section 15301). The Exemption has been prepared and no further CEQA action is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
4. Invest in well-planned infrastructure and growth
6. Deliver exceptional City services
Respectfully Submitted,
Michael Zasso, Power Plant Engineer
Daniel Beans, Electric Utility Director
ATTACHMENTS:
1. Resolution 25-138
2. Contract Purchase Agreement
3. Sentry Quote 220426A R7
REVIEWERS:
Michael Zasso, Electric Department - Engineering Created/Initiated - 4/30/2025 Chris Porter, Electric Department - All Approved - 4/30/2025 Shawn Matchim, Electric Department - All Approved - 5/2/2025 Daniel Beans, Electric Department - All Approved - 5/2/2025 Gretchen Hakala, City Attorney Department Approved - 5/2/2025 Katrina Six, City Clerk Department Approved - 5/5/2025
Ryan DeVore, City Clerk Department Approved - 5/5/2025
Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 5/6/2025 Michelle Sheidenberger, City Attorney Department Approved - 5/7/2025 Dominick Casey, City Manager Department - City Manager Approved - 5/7/2025 Katrina Six, City Clerk Department Final Approval - 5/7/2025
RESOLUTION NO. 25-138
APPROVING A CONTRACT PURCHASE AGREEMENT, BY AND BETWEEN THE CITY
OF ROSEVILLE AND SENTRY EQUIPMENT CORP, AND AUTHORIZING THE CITY
MANAGER TO EXECUTE IT ON BEHALF OF THE CITY OF ROSEVILLE WHEREAS, a contract purchase agreement (3002652) for a Sample Panel Upgrade at the Roseville Energy Park, by and between the City of Roseville and Sentry Equipment Corp, has been reviewed by the City Council; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and the City Manager is authorized to execute it on behalf of the City of Roseville.
BE IT FURTHER RESOLVED that the City Manager or his designee is authorized to approve change orders for the project, consistent with the contract terms, provided that the net cost of all change orders shall not exceed ten percent (10%) of the contract price.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 2025, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
________________________
City Clerk
City Council
Communication
Meeting Date: 5/21/2025
Item #: VII.13
File #: 0800-03
Item ID: 2025-114
Title: California-Oregon Transmission Project - Instrument of Assignment and Transfer Contact: Petra Wallace 916-774-5510 [email protected]
SUMMARY
Staff recommends approval of City of Redding’s Instrument of Assignment and Transfer Agreement for the California-Oregon Transmission Project. There is no fiscal impact associated with the agreement.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the City of Redding’s Instrument of Assignment and Transfer Agreement (Assignment) for the California-Oregon Transmission Project. There is no fiscal impact associated with the partial execution of the agreement.
BACKGROUND
The California-Oregon Transmission Project (COTP) consists of 340 miles of 500-kilovolt alternating current (AC) transmission line between Southern Oregon and Central California with a capacity of 1,600 megawatts, enough to provide power to more than one million homes at any given time.
The COTP is owned by Western Area Power Administration, Pacific Gas and Electric Company, Turlock Irrigation District, City of Roseville, City of Redding, and the Transmission Agency of Northern California (TANC). Roseville has transmission capacity on the COTP through its TANC membership, and as a named owner due to its December 31, 2024, purchase of a COTP share from San Juan Water District and Carmichael Water District. At this time, another COTP owner, the City of Redding, is seeking the consent of all the owners to assign its responsibilities under the Interim Participation Agreement, the Project Operation and Maintenance Agreement, the Owners Coordinated Operation Agreement, and the California-Oregon Intertie Path Operating Agreement to TANC; an assignment that Roseville and other owners have previously made. The effect of Roseville approving the Assignment is that TANC will manage - on behalf of its members, including Roseville - a larger share of COTP operations and maintenance.
The Redding assignment, which was previously put on hold, is now ready for execution. As a part owner of the project, Roseville is requested to execute the Instrument of Assignment and Transfer.
FISCAL IMPACT
There is no fiscal impact associated with the partial execution of the City of Redding’s Form of Instrument of Assignment and Transfer Agreement.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
Approval of this agreement meets the above criteria and is not subject to CEQA. No additional environmental review is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
1. Ensure a safe and healthy community
Respectfully Submitted,
Petra Wallace, Power Supply and Portfolio Administrator Daniel Beans, Electric Utility Director
ATTACHMENTS:
1. Resolution 25-153
2. Instrument of Assignment and Transfer Agreement
REVIEWERS:
Petra Wallace, Electric Department - Resource Planning & Generation Created/Initiated - 4/14/2025 Tom Pontes, City Clerk Department Approved - 4/14/2025
William Forsythe, Electric Department - All Approved - 4/23/2025 Shawn Matchim, Electric Department - All Approved - 5/2/2025 Daniel Beans, Electric Department - All Approved - 5/2/2025 Gretchen Hakala, City Attorney Department Approved - 5/8/2025 Katrina Six, City Clerk Department Approved - 5/8/2025
Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 5/8/2025 Michelle Sheidenberger, City Attorney Department Approved - 5/8/2025 Dominick Casey, City Clerk Department Approved - 5/12/2025 Katrina Six, City Clerk Department Final Approval - 5/12/2025
RESOLUTION NO. 25-153
APPROVING A FORM OF INSTRUMENT OF ASSIGNMENT AND TRANSFER, BY AND
BETWEEN THE CITY OF REDDING AND THE TRANSMISSION AGENCY OF
NORTHERN CALIFORNIA, AND AUTHORIZING THE CITY MANAGER TO EXECUTE
IT ON BEHALF OF THE CITY OF ROSEVILLE
WHEREAS, the California-Oregon Transmission Project (COTP) consists of 340 miles of 500-kilovolt alternating current (AC) transmission line between Southern Oregon and Central California with a capacity of 1,600 megawatts, enough to provide power to more than one million homes at any given time; and
WHEREAS, the COTP is owned by Western Area Power Administration, Pacific Gas and Electric Company, Turlock Irrigation District, City of Roseville, City of Redding, and the Transmission Agency of Northern California (TANC); and
WHEREAS, at this time, another COTP owner, the City of Redding, is seeking the consent of all the owners to assign its responsibilities under the Interim Participation Agreement, the Project Operation and Maintenance Agreement, the Owners Coordinated Operation Agreement, and the California-Oregon Intertie Path Operating Agreement to TANC; and WHEREAS, the Form of Instrument of Assignment and Transfer, has been reviewed by the City Council.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Roseville that said agreement is hereby approved and that the City Manager is authorized to execute it on behalf of the City of Roseville.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of ______________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
________________________
City Clerk
FORM OF
INSTRUMENT OF ASSIGNMENT AND TRANSFER
This INSTRUMENT OF ASSIGNMENT AND TRANSFER (this "Assignment"), is made as of [ ] (the "Closing Date"), by and between the City of Redding, a municipal corporation and a General Law City duly organized and existing under and by virtue of the Constitution and laws of the State of California ("Assignor"), and the Transmission Agency of Northern California, a California Joint Powers Agency ("Assignee").
RECITALS
A. The Western Area Power Administration (“Western”); Turlock Irrigation District, the City of Roseville, Pacific Gas and Electric Company (“PG&E”); the City of Redding, a municipal corporation; and the Transmission Agency of Northern California, a California Joint Powers Agency, jointly own and operate the California-Oregon Transmission Project (“COTP”) (collectively, “active COTP Participants”); and
B. PacifiCorp owns a portion of the Pacific AC Intertie, with which the COTP operates in parallel, and the California Independent System Operator Corporation (“CAISO”) is the path operator for the California-Oregon Intertie; and C. Assignor holds the rights and obligations as well as an ownership and interest in, and entitlement to transfer capability on, the COTP, under the California-Oregon Transmission Project Interim Participation Agreement effective as amended in April 2008 (“IPA”); and
D. Assignor desires to assign to Assignee all of its rights and delegate to Assignee all of its obligations under the IPA; the California-Oregon Transmission Project Operation and Maintenance Agreement, effective as amended in April 2008 (“POMA”); the Owners Coordinated Operation Agreement among Pacific Gas and Electric Company and PacifiCorp and the Transmission Agency of Northern California, and Western Area Power Administration, effective as amended in July 2015 ("OCOA"); and the California-Oregon Intertie Path Operating Agreement among Pacific Gas and Electric Company, PacifiCorp, the Transmission Agency of Northern California, Western Area Power Administration, and California Independent System Operator Corporation, effective as amended in January 2021 (“COI-POA”) (collectively the “Assigned Contracts”); and E. Assignee desires to accept such assignment or rights and delegation of obligations under the Assigned Contracts; and
April 1, 2025
F. Each and all of the active COTP Participants, PacifiCorp, and CAISO desire to release Assignor from its obligations under the Assigned Contracts and substitute Assignee in Assignor’s place under the Assigned Contracts; G. Capitalized terms used herein and not otherwise defined shall have the meaning set forth in the IPA;
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby covenant and agree as follows:
1. Assignment and Assumption.
a. Assignment. Assignor hereby irrevocably assigns, grants, conveys, and transfers to Assignee all of its right, title and interest in, to and under, and all of its duties, liabilities and obligations under or pursuant to, the Assigned Contracts on the Closing Date, except for any rights or liabilities under the Assigned Contracts resulting from Assignor's performance or failure to perform its obligations under the Assigned Contracts prior to the Closing Date, which rights and liabilities are retained by and remain the responsibility of Assignor (the "COTP Interest Retained Rights and Liabilities").
b. Assumption. Assignee hereby unconditionally accepts such assignment and assumes all of Assignor's rights, title and interest in, to and under, and all of Assignor's duties, liabilities and obligations under or pursuant to, the Assigned Contracts, and agrees to pay, perform, and discharge, as and when due, all of the obligations of Assignor under the Assigned Contracts accruing on and after the Closing Date, except for the COTP Interest Retained Rights and Liabilities.
2. Non-Interference. Each of Assignor and Assignee agrees that the assignment and assumption of the assigned rights and responsibilities hereunder is irrevocable and that neither party shall take any action or make any other assignment or direction which could prejudice the other's rights hereunder, and that any such action or assignment shall be void.
3. Release.
a. Despite anything to the contrary in the Assigned Contracts, each and all of the active COTP Participants, PacifiCorp, and CAISO release and forever discharge Assignor, as well as its elective and appointive boards, elective officials, commissions, shareholders, directors, managers, members, officers, employees, agents, representatives, successors, and permitted assigns from all further obligations arising under the Assigned Contracts, and from all manner of actions, causes of action, suits, debts, damages, expenses, claims,
and demands whatsoever that each and all of the active COTP Participants, PacifiCorp, and CAISO have or may have against any of the foregoing persons, arising out of or in any way connected to performance under the Assigned Contracts on and after the Closing Date. For avoidance of doubt, nothing herein affects any rights, liabilities, or obligations of each and all of the active COTP Participants, PacifiCorp, CAISO, or Assignee arising before the Closing Date, or the Assignor’s responsibility within the COTP Interest Retained Rights and Liabilities, above.
b. Despite anything to the contrary in the Assigned Contracts, Assignor releases and forever discharges each and all of the active COTP Participants, PacifiCorp, and CAISO, as well as their elective and appointive boards, elective officials, commissions, shareholders, directors, managers, members, officers, employees, agents, representatives, successors, and permitted assigns from all further obligations arising under the Assigned Contracts, and from all manner of actions, causes of action, suits, debts, damages, expenses, claims, and demands whatsoever that Assignor has or may have against any of the foregoing persons, arising out of or in any way connected to performance under the Assigned Contracts on and after the Closing Date.
For avoidance of doubt, nothing herein affects any rights, liabilities, or obligations of each and all of the active COTP Participants, PacifiCorp, CAISO, or Assignee arising before the Closing Date.
4. Substitution. Each and all of the active COTP Participants, PacifiCorp, and CAISO recognize Assignee as Assignor’s successor-in-interest in and to the Assigned Contracts. Assignee by this Agreement becomes entitled to all rights, title, and interest of Assignor in and to the Assigned Contracts as of and after the Closing Date. Each and all of the active COTP Participants, PacifiCorp, CAISO, and Assignee shall be bound by the terms of the Assigned Contracts in every way as if Assignee is named in the Assigned Contracts in place of Assignor.
5. Representations and Warranties. Each party hereto represents and warrants as follows:
a. It is duly organized, validly existing, and in good standing under the laws of the State of California;
b. It has the full right, power, and authority to enter into this Agreement and to perform its obligations hereunder.
c. It has taken all necessary corporate action to authorize the execution of this Agreement by its representative whose signature is set forth at the end hereof.
d. Its execution, delivery, and performance of this Agreement will not violate, conflict with, require consent under, or result in any breach or default under
the provisions of any contract or agreement to which it is a party. e. When executed and delivered, this Agreement will constitute the legal, valid, and binding obligation, enforceable against each party hereto in accordance with its terms.
6. Indemnification.
a. Indemnification. Subject to the terms and conditions set forth in Section 6.(b) Assignee and Assignor (as “Indemnifying Party”) shall indemnify, hold harmless, and defend each other and their respective elective and appointive boards, elective officials, commissions, shareholders, directors, managers, members, officers, employees, agents, representatives, successors, and permitted assigns (collectively, “Indemnified Party”) against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorney fees, that are incurred by Indemnified Party (collectively, “Losses”), arising out of or resulting from any third-party claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena, or investigation of any nature, civil, criminal, administrative, regulatory, or other, whether at law, in equity, or otherwise (“Claim”) or any direct Claim against Indemnifying Party alleging:
i. A breach or non-fulfillment of any representation, warranty, or covenant under this Agreement by Indemnifying Party or its representatives;
ii. Any negligent or more culpable act or omission of Indemnifying Party or any of its representatives (including any reckless or willful misconduct) in connection with the performance of its obligations under this Agreement;
iii. Any bodily injury, death of any person, or damage to real or tangible personal property caused by the negligent or more culpable acts or omissions of Indemnifying Party or its representatives (including any reckless or willful misconduct); or
iv. Any failure by Indemnifying Party to materially comply with any applicable federal, state, or local laws, regulations, or codes in the performance of its obligations under this Agreement.
b. Exceptions and Limitations on Indemnification. Despite anything to the contrary in this Agreement, Indemnifying Party is not obligated to indemnify or defend Indemnified Party against any Claim if such Claim or the corresponding Losses arise out of or result from, in whole or in part, Indemnified Party’s:
i. Gross negligence or more culpable act or omission (including recklessness or willful misconduct); or
ii. Bad faith, failure to comply with any of its obligations set forth in this Agreement.
c. Sole Remedy. THIS SECTION SETS FORTH THE ENTIRE LIABILITY
AND OBLIGATION OF THE INDEMNIFYING PARTY AND THE
SOLE AND EXCLUSIVE REMEDY FOR THE INDEMNIFIED PARTY
FOR ANY LOSSES COVERED UNDER SECTION 6.
7. Effectiveness. This Assignment shall become effective as of the Closing Date.
8. Further Assurances. Each of the Parties will, from time to time and at all times hereafter, upon every reasonable request to do so by another Party hereto, at its sole cost and expense, promptly make, do, execute and deliver, or cause to be made, done, executed and delivered, all such further acts, deeds, assurances and things as may be legally required or reasonably necessary in order to further implement and carry out the intent and purposes of this Agreement.
9. Notices. Any notice, demand, or request required or authorized by this Assignment to be given by one party to another party shall be delivered in accordance with Section 32 of the IPA and to the following addresses:
Transmission Agency of Northern California
Attention: Interim General Manager
P.O. Box 15129
Sacramento, CA 95851
[email protected]
City of Redding
Attention: Redding Electric Utility Director
3611 Avtech Parkway
Redding, CA 96002
[email protected]
Turlock Irrigation District
Attention: Manjot Gill
Assistant General Manager- Electrical Engineering and Operations 333 E Canal Dr.
Turlock, CA 95380
[email protected]
City of Roseville
Attention: Bill Forsythe
Assistant Electric Utility Director
2090 Hilltop Circle
Roseville, CA 95747
[email protected]
Pacific Gas and Electric Company
Attention: Electric Transmission Contracts Engineer
Senior Electric Transmission Contract Manager
300 Lakeside Drive
Suite 210
Oakland, CA 94612
[email protected]
[email protected]
Western Area Power Administration
Attention: Contracts Manager
Operations Manager
P.O. Box 281213
Lakewood, CO 80228
[email protected]
[email protected]
PacifiCorp
Attention: Vice President, Transmission
Director of Transmission Expansion Planning
825 N.E. Multnomah Street
Suite 1900
Portland, Oregon 97232
[email protected]
[email protected]
California Independent System Operator Corporation
Attention: Director, Infrastructure Contracts and Management 250 Outcropping Way
Folsom, CA 95630
[email protected]
[email protected]
10. Successors and Assigns. The provisions of this Assignment are binding upon, and will inure to the benefit of, the successors and assigns of Assignor and Assignee, respectively.
11. Interpretation. For purposes of this Agreement: (a) the words “include,” “includes,” and “including” are deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words “herein,” “hereof,” “hereby,” “hereto,” and “hereunder” refer to this Agreement as a whole. Unless the context otherwise requires, references in this Agreement: (x) to sections, schedules, and exhibits mean the sections of, and schedules and exhibits attached to, this Agreement; (y) to an agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented, and modified from time to time to the extent permitted by the provisions thereof; and
(z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. The parties drafted this Agreement without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing any instrument to be drafted.
12. Headings. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.
13. Severability. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability does not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. On such determination that any term or other provision is invalid, illegal, or unenforceable, the parties to this Agreement shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
14. Entire Agreement. This Agreement, together with all related clauses and documents that are incorporated by reference herein, is the sole and entire agreement of the parties to this Agreement regarding the subject matter contained herein and therein, and supersedes all prior and contemporaneous understandings, agreements, representations, and warranties, both written and oral, regarding such subject matter. The foregoing Recitals are hereby incorporated by this reference and made part of this Agreement.
15. Amendment and Modification. No amendment to (or rescission, termination, or discharge of) this Agreement is effective unless it is in writing, identified as an amendment to (or rescission, termination, or discharge of) this Agreement and signed by an authorized representative of each party to this Agreement.
16. Waiver.
a. No waiver under this Agreement is effective unless it is in writing, identified as a waiver to this Agreement, and signed by an authorized representative of the party waiving its right.
b. Any waiver authorized on one occasion is effective only in that instance and only for the purpose stated, and does not operate as a waiver on any future occasion.
c. None of the following is a waiver or estoppel of any right, remedy, power, privilege, or condition arising from this Agreement:
i. any failure or delay in exercising any right, remedy, power, or privilege
or in enforcing any condition under this Agreement; or
ii. any act, omission, or course of dealing between the parties.
17. Cumulative Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available at law, in equity, by statute, in any other agreement between the parties, or otherwise. Despite the previous sentence, the parties intend that Indemnified Party’s rights under 6 are its exclusive remedies for the events specified therein.
18. Equitable Remedies. Each of Assignor and Assignee acknowledges that a breach or threatened breach by it of any of its obligations under this Agreement would give rise to irreparable harm to the other party for which monetary damages would not be an adequate remedy and hereby agrees that if a breach or a threatened breach occurs, the other party shall, in addition to any and all other rights and remedies that may be available to it arising from such breach, be entitled to seek equitable relief, including a temporary restraining order, an injunction, specific performance, and any other relief that may be available from a court of competent jurisdiction (without any requirement to post bond).
19. No Third-Party Beneficiaries. This Agreement benefits solely the parties to this Agreement and their respective successors and permitted assigns and nothing in this Agreement, express or implied, confers on any other person any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement. Despite the previous sentence, the parties hereby designate the third parties included in the Section 6 definition of Indemnified Party as third-party beneficiaries having the right to enforce Section 6.
20. Choice of Law. This Agreement and all related documents and all matters arising out of or relating to this Agreement, whether sounding in contract, tort, or statute are governed by, and construed in accordance with, the laws of the State of California, United States of America, without giving effect to the conflict of laws provisions thereof to the extent such principles or rules would require or permit the application of the laws of any jurisdiction other than those of the State of California.
21. Choice of Forum. Each party irrevocably and unconditionally agrees that it will not commence any action, litigation, or proceeding of any kind whatsoever against the other party in any way arising from or relating to this Agreement and all contemplated transactions, including, but not limited to, contract, equity, tort, fraud, and statutory claims, in any forum other than the US District Court for the Eastern District of California or the courts of the State of California sitting in the County of Shasta, and any appellate court from any thereof. Each party irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and agrees to bring any such action, litigation, or proceeding only in the US District Court for the Eastern District of California or the courts of the State of California sitting in the
County of Shasta. Each party agrees that a final judgment in any such action, litigation, or proceeding is conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.
22. Counterparts. This Agreement may be executed in counterparts (including electronically), each of which is deemed an original, but all of which together are deemed to be one and the same agreement.
[Remainder of Page Left Intentionally Blank]
IN WITNESS WHEREOF, the parties hereto, by their duly authorized officers, have executed and delivered this Assignment as of the day and year first above set forth.
CITY OF REDDING
By: ____________________________
Name: ______________________
[Mayor, Mayor ProTempore or City
Administrator]
ATTEST:
By: ____________________________
Name: ______________________
APPROVED AS TO FORM:
By: ____________________________
Christian M. Curtis
City Attorney
TRANSMISSION AGENCY OF NORTHERN
CALIFORNIA
By: ____________________________
John Roukema
Interim General Manager
By: ____________________________
Steve Gross
General Counsel
ATTEST:
By: ____________________________
Name: ______________________
TURLOCK IRRIGATION DISTRICT
By: ____________________________
By: ____________________________
ATTEST:
By: ____________________________
Name: ______________________
[Title]
[Continued on Next Page]
CITY OF ROSEVILLE
By: ____________________________
Name: ______________________
[Mayor, Mayor ProTempore or City
Administrator]
ATTEST:
By: ____________________________
Name: ______________________
[Title]
APPROVED AS TO FORM:
By: ____________________________
[NAME]
City Attorney
PACIFIC GAS AND ELECTRIC
COMPANY
By: ____________________________
[Name]
General Manager
By: ____________________________
[Name]
General Counsel
ATTEST:
By: ____________________________
Name: ______________________
WESTERN AREA POWER
ADMINISTRATION
By: ____________________________
[Name]
General Manager
By: ____________________________
[Name]
General Counsel
ATTEST:
By: ____________________________
Name: ______________________
PACIFICORP
By: ____________________________
[Name]
General Manager
By: ____________________________
[Name]
General Counsel
ATTEST:
By: ____________________________
Name: ______________________
CALIFORNIA INDEPENDENT SYSTEM
OPERATOR CORPORATION
By: ____________________________
[Name]
General Manager
By: ____________________________
[Name]
General Counsel
ATTEST:
By: ____________________________
Name: ______________________
City Council
Communication
Meeting Date: 5/21/2025
Item #: VII.14
File #: 0800-03
Item ID: 2025-117
Title: Energy Risk Management Policies Update
Contact: Glenn Hoffman 916-746-1670 [email protected]
SUMMARY
Staff recommends approval of updates to the Energy Risk Management Policy, Energy Credit Risk Policy, Energy Trading Authority Policy, and the Energy Hedge Policy. There is no fiscal impact associated with these policy changes.
RECOMMENDATION
Staff recommends that the City Council adopt resolutions to approve updates to the Energy Risk Management Policy, Energy Credit Risk Policy, Energy Trading Authority Policy, and the Energy Hedge Policy.
BACKGROUND
Energy Risk Management Policy Updates
Energy markets are inherently volatile and, if left unmanaged, can expose the City of Roseville to significant financial risk. In response, the City adopted a comprehensive set of Energy Risk Management Policies in 2005 to guide the prudent operation of Roseville Electric Utility. These policies provide the governance framework necessary to manage the risks associated with energy procurement, trading, credit exposure, and hedging.
Overview of Energy Risk Management Policies
Energy Risk Management Policy
Establishes the overarching governance structure, including risk management objectives, roles, and responsibilities.
Energy Credit Risk Policy
Defines the procedures for setting and managing credit limits with counterparties to mitigate default risk.
Energy Trading Authority Policy
Outlines permissible transaction types and assigns authorization levels to the City Manager (for long-term hedging) and the Agent (for short-term operational trading).
Energy Hedge Policy
Details the utility’s hedging objectives, risk tolerance, and guidelines for managing price volatility in power supply costs.
Policy Review and Recommended Revisions
The policies are regularly reviewed and updated to reflect changes in market conditions, regulatory
requirements, and operational needs. Proposed updates were informed by recommendations from an independent audit and internal review by staff, the Risk Management Committee, and the Risk Oversight Committee. The following updates are recommended for Council approval:
Energy Risk Management Policy – Updated to strengthen internal controls and enhance transparency across governance functions.
Energy Credit Risk Policy – Revised to better align with audit recommendations and improve credit risk oversight.
Energy Trading Authority Policy – Enhanced to clarify authorization limits and support consistent transaction execution.
Energy Hedge Policy – Adjusted to improve alignment with hedging best practices and internal risk tolerance thresholds.
These revisions reinforce the City’s commitment to sound risk management practices and ensure continued financial stability in the face of energy market volatility.
FISCAL IMPACT
There is no fiscal impact associated with the policy changes.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to activities that will not result in a direct or reasonably foreseeable indirect physical change in the environment, or is otherwise not considered a project as defined by CEQA Statute §21065 and CEQA State Guidelines §15060(c)(3) and §15378.
Updates to the Energy Risk Policies are not considered a “project” as defined by CEQA and consequently no CEQA action is required.
CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
2. Remain fiscally responsible in a changing world
Respectfully Submitted,
Glenn Hoffman, Electric Resources Planner
Daniel Beans, Electric Utility Director
ATTACHMENTS:
1. Resolution 25-149
2. REDLINE Energy Risk Management Policy
3. Resolution 25-150
4. REDLINE Energy Credit Risk Policy
5. Resolution 25-151
6. REDLINE Energy Trading Authority Policy
7. Resolution 25-152
8. REDLINE Energy Hedge Policy
REVIEWERS:
Glenn Hoffman, Electric Department - Financial & Administrative Created/Initiated - 4/24/2025 Joanna Cucchi, Electric Department - Financial & Administrative Approved - 4/28/2025 Shawn Matchim, Electric Department - All Approved - 4/29/2025 Daniel Beans, Electric Department - All Approved - 4/29/2025 Gretchen Hakala, City Attorney Department Approved - 5/6/2025 Katrina Six, City Clerk Department Approved - 5/7/2025
Dennis Kauffman, City Manager Department - Assistant City Manager Approved - 5/8/2025 Michelle Sheidenberger, City Attorney Department Approved - 5/8/2025 Dominick Casey, City Manager Department - City Manager Approved - 5/12/2025 Katrina Six, City Clerk Department Final Approval - 5/12/2025
RESOLUTION NO. 25-149
APPROVING UPDATES TO THE ENERGY RISK MANAGEMENT POLICY
WHEREAS, the City Council adopt a comprehensive set of Energy Risk Management Policies in 2005 to guide the prudent operation of Roseville Electric Utility; and WHEREAS, the Energy Risk Management Policy establishes the overarching governance structure, including risk management objectives, roles, and responsibilities; and WHEREAS, the policies are regularly reviewed and updated to reflect changes in market conditions, regulatory requirements and operational needs; and WHEREAS, the City Council has reviewed the proposed updates to the Energy Risk Management Policy, which is being updated to strengthen internal controls and enhance transparency across governance functions.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Roseville that the updates to the Energy Risk Management Policy for Roseville Electric are hereby approved.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of __________________________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
___________________________
City Clerk
ELECTRIC UTILITYENERGY RISK MANAGEMENT POLICY
Electric UtilityEnergy Risk Management Policy
x/xx/2025
ELECTRIC UTILITYENERGY RISK MANAGEMENT POLICY
Table of Contents
1.Policy Overview................................................................................................................... 1
2.Risk Management Objectives.............................................................................................. 1
3.Risk Governance Structure and Responsibilities.................................................................. 1
4.Scope of Business Activities Governed by this Policy ......................................................... 47
5.Related Policies................................................................................................................. 58
6.Version History ................................................................................................................. 79
ENERGY RISK MANAGEMENT POLICY Page 1 of 9
ELECTRIC UTILITYENERGY RISK MANAGEMENT
POLICY
x/xx/20242025
1. Policy PurposeOverview
The purpose of this document is to formalize the policies of the City of Roseville (City) regarding managing the risks inherent to operating its electric utility. Accordingly, this policy will set forth the City’s:
• Risk management objectives,
• Risk governance structure and responsibilities, and
• Scope of business activities governed by this policy, • and the list of associated electric utilityenergy risk management policy guidelines and policy documents.
The City intends that Risk Management will support the advancement of its strategic business plan and will properly manage its business and financial risks through:
• Prudent oversight,
• Adequate Appropriate mitigation of risks consistent with the City’s risk tolerance, and
• Sufficient Suitable internal controls and procedures.
Managing the energy risks of the City’s business entails the coordination of resources and activities among multiple business units within the City.
2. Risk Management Objectives
The City is committed to provideproviding competitively priced reliable power to its customers. Managing the City’s risk is consistent with that mission, and serves the following objectives to:
• Maintain risk within desired tolerances for a defined period in the future, • Participate in the energy markets primarily for hedging purposes, while still allowing the City to take advantage of market opportunities within strict policy limits,
• Mitigate the effect of price volatility to its customers, • Maintain stable cash flows,
• Enhance the value of the City’s assets/resources,
• Leverage opportunities to increase the value of the City to its customersthe value of the City to its customers, and
• Effectively communicate the City’s activities to manage risk on behalf of its customers and to develop a risk management culture.
3. Risk Governance Structure and Responsibilities
Risk governance will follow a top-down approach whereby the City Council identifies the
ENERGY RISK MANAGEMENT POLICY Page 2 of 9
City’s risk management objectives with oversight carried out by the Risk Oversight Committee (a Risk Oversight Committee. ROC). Supporting controls, policies, and procedures will be implemented and aligned throughout the risk governance structure, with distinct roles andresponsibilities that result in an enhanced risk control environment.
Governance and controls include the organizational structure, policies, and procedures that support the City’s business models, risk tolerances, electric utility objectives, and segregate responsibilities appropriately.
Energy Risk Management Policy
• Umbrella policy that sets overall Energy Risk Management objectives and culture • Creates expectations of disciplined and controlled processes Etc
Energy Credit Risk
Policy
Energy Trading Authority
Policy
Energy Hedge Policy
• Mitigate/avoid
credit losses
• Standards for
granting credit
Credit controls
• etc
• Governing body
required approvals
• Trading authority and
staff
delegationsDelegation
of trading authority
• Authorized Ttrading
instruments
Required controls
• etc
• Established
eEnergy hedge
ranges and
timeframes
Establishes
hHedging
parameters for
other power related
activities: capacity,
environmental,
congestions, etc.
• etc
3.1 City Council – Risk Management Responsibilities and Duties • Have a basic understanding of utility risk management. • Through approving the City’s electric utilityenergy risk management policies, establish the City’s objectives with regard to risk management. Those objectives should be consistent with the Council’s risk tolerance, time horizon, and benchmarking goals.
• Approve no less than every two years a resolution affirming or amending the City’s utility risk management policies. Amendments should be reflective of changes in the City’s electric utility operating environment or changes in Council’s goals and objectives for risk management.
• Through the Energy Trading Authority Policy, establish the City Manager’s authority limits to conduct market transactions.
• Through the Energy Trading Authority Policy, may authorize an agent to
ENERGY RISK MANAGEMENT POLICY Page 3 of 9
manage portfolio risks in real time, upfor up to two months, according to the City’s risk management objectives.
• Through the Energy Trading Authority Policy, approve participation in specific commodity markets and derivative instruments.
• Through the Energy Credit Risk Policy, establish the process by which counterparty credit limits are set, and how those limits are monitored. • Through approval of Master Agreements with counterparties, establish credit limits and terms with individual counterparties.
• Through the Energy Hedge Policy, establish requirements for hedging utility risk, and the financial boundaries within which the risk management program must operate.
• Receive regular reports from the Risk Oversight Committee as to the compliance status of the City’s risk management policies, and any suggestions for improvement in policies or procedures.
• From time to time, direct staff to engage an independent audit (internal and/or external) of risk control processes and procedures.
• Approves any activity not otherwise delegated in this or related policy documents (Part 5).
3.2 Risk Oversight Committee (ROC) – Responsibilities and Duties The ROC is established by the City Council as a forum for discussion of the City’s risk and financial health prior to City Council discussions or approvals. The Risk Oversight CommitteeROC functions as an additional oversight in the City risk governance, allowing the ROC to review and recommendation of items for City Council approval. The ROC is chaired by the City’s Chief Financial Officer Electric Utility Financial Administrator or designee as a non-voting member and membership includes nine voting members:
i. Two City Council Members(s)
ii. Two Roseville Public Utilities Commission Members(s) iii. The City Manager
iv. The Assistant City Manager
v. The Chief Financial Officer
vi. The City Attorney
vii. The Electric Utility Director
Other non-voting attendees may attend the ROC.
ENERGY RISK MANAGEMENT POLICY Page 1 of 9
3.2.1 The responsibilities and duties of the ROC include:
• Oversee the City’s electric energy risk management activities on behalf of the City Council.
• Establish scope and frequency for management reporting to the Council. • Regularly review reports detailing risk exposures and compliance with risk management policies and procedures from the City’s internal risk management group and the Power Management Services provider Agent (energy management company acting on Roseville’s behalf).
• Discuss the City’s major financial risk exposures and the steps management leadership has taken to monitor and control such exposures. • Recommend to the Council electric utilityenergy risk management policy changes.
• Review and recommend any new commodity products, locations, or markets. • Approve management staff individuals to serve as members of an internal Risk Management Committee (RMC).
• Review Risk Management Policy violations referred to it by the Risk Management CommitteeRMC or the City Attorney to develop remediation procedures and/or initiate disciplinary action.
• Review compliance violations with NERC, WECC, and other regulatory agencies on a regular basis.
ROC meetings are covered by the Brown Act, and subject to the Brown Act rules.
3.3 3.3 City Manager – Risk Management Responsibilities and Duties:
• Recommend staff management staff individuals to serve as members of an internal Risk Management Committee.
• Has authority to transact within the limits set by the City Council in the City of Roseville Energy Trading Authority Policy.
• Approve proper organization, separation, or consolidation of functional activities. • Approve the level at which authority to conduct market transactions reside (from City Manager down to transaction execution personnel).
• Assure prudent administrative procedures are established for: for o trade, transactions, and executions,
o contract controls,
o credit controls,
o trading controls,
o portfolio risk measurement,
o settlement controls,
o regulatory and environmental compliance, and
o other risk management activities.
3.4 3.4 Internal Risk Management Committee
(RMC) – - Responsibilities and Duties:
The RMC is established by the City Manager as a forum for discussion of the City’s risk at the staff level; this includes implementation and monitoring of compliance with
ENERGY RISK MANAGEMENT POLICY Page 2 of 9
the City’s risk policypolicies. The RMC executes its risk management responsibilities through a “watch dog” mechanism. While the RMC generally has no authority to act within its structure, it is required to inform appropriate functional authorities (e.g.
Electric Utility Director, and/or City Manager) regarding policy and procedure exceptions. Membership shall be comprised of the following individuals:
i. One delegate from the Finance Department
ii. One delegate from the City Attorney’s office
iii. The Electric Utility Director
iv. The Electric Utility Chief Operating Officer
v. Two Assistant Electric Utility Directors
The Electric Utility Financial Administrator or designee shall participate as a nonvoting member of the meetings and serve as RMC Chairperson. Non-voting participants with various segregated risk management responsibilities shall participate in the meetings as determined by the committee members.
3.4.1 The responsibilities of the RMC include:
• Monitor risk management objectives, risk tolerances guidelines, and authority limits employed throughout the electric utility.
• Receive and rReview reports by the internal risk management function and independent risk management function on the City’s compliance with its electric utilityenergy risk management policies.
• Recommend to the City Manager the proper organizational structure, separation or consolidation of functional risk management activities. • Review proposed risk management strategies for strategic fit, risk exposure monitoring, and reporting and control requirements. The RMC monitors approved strategies for consistency with the City’s approved business interests, risk management objectives, approved risk tolerance guidelines, and compliance with the electric utilityenergy risk management policies. • Periodically review the City’s risk management program (a detailed review at least once every two years) in light ofconsidering changes in business practices, improved processes, the City’s philosophy and strategy, or market changes; and recommend changes to ensure continued compliance with its established guidelines.
• Hold formal RMC meetings at least quarterly. Standing agenda items should include, but not be limited to, current market strategy, review of current price exposure position (per the Portfolio Model), review current exposure to transactions, control requirements/ enhancements, review of counterparty credit exposure, and trading authority violations.
• As necessary, escalate policy violations to the Risk Oversight CommitteeROC for further review.
• Review the infrastructure supporting risk management and ensure that it meets the requirements for risk oversight and compliance.
3.5 Internal Electric Utility Financial Administrator or designee – Responsibilities and Duties
ENERGY RISK MANAGEMENT POLICY Page 3 of 9
The Electric Utility Financial Administrator or designee, is organizationally independent of functions whose activities initiate or directly participate in the commercial wholesale energy trading. Functional independence will be achieved by utilizing Agent and City staff deliverables through the RMC, specifically, the deal capture system, independent scheduling and dispatch, and the monthly portfolio plan.
Business units or support functions will be required to provide this function with reports or information required for risk assessment and analysis on a regular or periodic basis. The Electric Utility Financial Administrator or designee may delegate responsibilities below when these delegations maintain organizational independence. The Electric Utility Financial Administrator or designee oversees the Roseville internal risk management functions. The responsibilities of the Electric Utility Financial Administrator or designee include:
• Organize and conduct the RMC and ROC meetings.
• Ensure appropriate individuals are engaged in risk management discussions. • Review the administration of risk management processes and procedures. • Review, at least annually, the City’s Risk Policies to ensure strategies, trading activity, risk tolerances and proposed changes are aligned. • Engage the RMC and/or ROC in discussions regarding events or developments that could expose the City to potential losses.
• Develop, recommend, and administer risk management processes and procedures.
• Provide input on tools to assist in risk management.
• Review risk management activities, risk controls, and recommend modifications of controls to meet changing business needs.
• Review adequacy and accuracy of reports, andreports and report any deficiencies to the RMC. Recommend actions to address deficiencies. • Assess risks to the City in aggregate, by business unit, and by material business activities.
• Perform periodic internal audits of risk control processes and procedures to ensure that the City complies with its electric utilityenergy risk management policies.
• Report any violation of tThe City’s risk policies.
• Review and approve changes to the risk management procedures, as appropriate, except those that require higher authority (Ex. City Manager) approval.
• Report regularly to the RMC, at a minimum, but not limited to:
o Portfolio Model risk measures
o Policy and procedural violations
o Credit and contract risk exposures
o Other key performance indicators that support effective energy risk management.
• Report to the RMC and ROC on the City’s compliance with its electric utility energy risk management policies and risk management in accordance with the risk policies.
• Review and evaluate proposed activities and transactions to be executed by the City, andCity and ensure adequate analysis (risk-reward) has been performed
ENERGY RISK MANAGEMENT POLICY Page 4 of 9
with proper assessment and management of any such risk consistent with risk management objectives and Council approved risk tolerance guidelines, and compliance with risk management policies, including the financial, legal, credit, and operational impact.
• Maintaining the City Risk Policies, ensuring the Risk Policies are current to the business and recommend needed changes to the RMC and ROC.
3.6 Power Management Services Agent (Agent) – Roles and Responsibilities The City may select an Agent to obtain selected energy risk management and transaction execution services (Otherwise these services devolve to the City). The Power Management Services Agent Middle Office reports to the Electric Utility Financial Administrator or designee. In accordance with the agreements between The City and its Agent, its Agent is authorized to and shall:
• Periodically provide the City with a controls audit report from an independent auditor.
• Perform short term load forecasting, dispatch optimization and execute energy transactions on behalf of the City in accordance with established delegations of authority and compliance requirements set forth by the City Council and/or City Manager.Energy Trading Authority Policy. The Agent’s staff responsible for submitting CAISO market transactions have been properly trained in alignment with their delegated authority and responsibilities.
• Administer counterparty contracts and manage credit in compliance with the City of Roseville Energy Credit Risk Policy.
• Provide the City with daily reports on individual transaction details, commodity positions, and counterparty credit positions for transactions executed by the Agent.
• Provide the City with periodic risk profile reports addressing the City’s energy risk and compliance with its Energy Hedge Policy. Recommend hedging strategies within the time horizons specified by the City for assessment. • Capture the City’s transactions in its risk management systems. • Monitor compliance of transactions with the City of Roseville Energy Trading Authority policy.
• Confirm transactions with the City’s counterparties.
• Mark to Market forward trades for credit exposure purposes. • Provide information to the City for the purpose of billing settlements and development of mid to long term hedging strategies.
• Prepare a monthly report to the City’s Electric Utility Financial Administrator or designee detailing compliance with the City’s Risk Policies, suitable for delivery to the RMC and ROC.
• Prepare a monthly policy violations report for the City’s Electric Utility Financial Administrator or designee and City Attorney.
4. Scope of Business Activities Governed by this Policy This policy is designed to be broad enough in scope to cover all risks inherent in operating a City owned electric utility. Much of the focus is on power supply cost and retail revenue risk; however, that focus is not to the exclusion of other risks that may materially affect City operations and its ability to provide competitively priced reliable power to its customers.
ENERGY RISK MANAGEMENT POLICY Page 5 of 9
Roseville is subjected to risk inherent in the business environment in which it operates.
Exposure to risks inherent in the energy markets could result in a multitude of diverse positive or negative consequences for Roseville. Commodity Price Risk, Volumetric risk, Operational Risk, Counterparty Risk and Regulatory and Environmental Risk are among the most critical and identifiable of the risks relevant to Roseville, as they pertain to the scope of this Policy. as noted in section 4.1 below.
4.1 Energy Risk Categories and Mitigations:
i.Commodity Price Risk: Roseville is exposed to risks from volatile natural gas, and power market, prices and environmental prices. These risks are mitigated by owned assets and utilizing, fixed price energy and natural gas procurement requirements in the Energy Hedge Policy, future resource acquisition, and the trading controls put in place by the Trading Authority Policy. ii.Volumetric Risk: This is the risk of mismatch between load (demand) and resources (supply). This risk is especially important for load serving entities, like Roseville, and can result in either insufficient supply or exposure to volatile spot market prices. The price risk is mitigated by the Energy Hedge Policy which does not allow the City to be greatly over - or undersupplied. The risk of insufficient supply is alsomitigated by capacity procurement practices which build in a reserve margin for extreme conditions.
iii.Operational Risk: This is the risk of loss from inadequate or failed internal processes, equipment, people, and systems. These risks are mitigated through the development of risk management policies and procedures, prudent oversight, separation of duties, and sufficient internal controls and procedures. iv.Counterparty Risk: Counterparties sometimes fail to perform as contracts state due to defaults and bankruptcies. This risk is mitigated by the creditcredit management practices in the Credit Risk Policy.
v.Regulatory and Environmental Risk: Changes in regulatory or legislative mandates may require the City to take actions that increase costs. Examples include the Renewable Portfolio Standard (RPS) and Greenh House Gas (GHG) programs. RPS and GHG risks are addressed by Roseville’s GHG Cap and Trade Program, and the RPS Procurement Plan and Enforcement Plan. Other regulatory risks are addressed in a similar fashion as they arise. vi.Delivery Risk: The potential for disruptions or failures in the physical delivery of energy resources, such as electricity, natural gas, or oil, to the intended destination.
5. 5. 5. Related Policies
i. Supporting policies and procedures are required as outlined below:
ENERGY RISK MANAGEMENT POLICY Page 6 of 9
Energy Credit Risk Policy
Energy Trading Authority Policy
Energy Hedge Policy
Resolution 17-368 retaining APM for power management services Resolution 16-161 declaring APM as agent for the purposes of risk policies Associated Guidelines, Controls, Policies and Procedures Supporting policies and procedures are required as outlined below.
Responsibility for their approval and modification requires the approval of the Council unless otherwise stated. Oversight and compliance shall be consistent with the governance section of this policy. Items not clearly defined in this policy require the approval of the Council, unless otherwise stated.
City of Roseville Energy Credit Risk Policy
City of Roseville Energy Trading Authority Policy
City of Roseville Energy Hedge Policy
Resolution 06-0217-368 retaining ACES for power management services Resolution 06-28616-161 declaring ACES as agent for the purposes of risk policies “ACES” – Alliance for Cooperative Energy Services Power Marketing
ENERGY RISK MANAGEMENT POLICY Page 7 of 9
6. Version History
Version Date Change Tracking
0 11/06/2024 Initial version
Add revision table and tracking
Add definition section for key terms
RESOLUTION NO. 25-150
APPROVING UPDATES TO THE ENERGY CREDIT RISK POLICY
WHEREAS, the City Council adopt a comprehensive set of Energy Risk Management Policies in 2005 to guide the prudent operation of Roseville Electric Utility; and WHEREAS, the Energy Credit Risk Policy defines the procedures for setting and managing credit limits with counterparties to mitigate default risk; and WHEREAS, the policies are regularly reviewed and updated to reflect changes in market conditions, regulatory requirements and operational needs; and WHEREAS, the City Council has reviewed the proposed updates to the Energy Credit Risk Policy, which are being revised to better align with audit recommendations and improve credit risk oversight.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Roseville that the updates to the Energy Credit Risk Policy for Roseville Electric are hereby approved.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of __________________________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
___________________________
City Clerk
ENERGY CREDIT RISK POLICY
Energy Credit Risk Policy
03x/03xx/2021 2025
ENERGY CREDIT RISK POLICY
Table of Contents
1. Policy Overview.......................................................................................................................... 1
2. Extension of Credit to Counterparties ........................................................................................ 1
3. Credit Analysis........................................................................................................................... 2
4. Approval Authority..................................................................................................................... 3
5. Credit Training Restriction Approval Authority ........................................................................... 4
6. Credit Enhancements................................................................................................................. 4
7. Counterparty Credit................................................................................................................... 5
8. Counterparty Credit Reviews...................................................................................................... 5
9. Credit File Documentation and Retention................................................................................... 5
10. Credit Controls and Trading Restrictions................................................................................... 7
11. Receivables/Payables Management ......................................................................................... 8
12. Collateral Management............................................................................................................ 8
13. Related Policies........................................................................................................................ 8
14. Amendments to the Credit Risk Policy of the City ..................................................................... 8
15. Version History......................................................................................................................... 9
ENERGY CREDIT RISK POLICY Page 1 of 78
ENERGY CREDIT RISK POLICY
x/xx/20212025
1. Policy Overview
Managing credit exposure is an important component in overall risk management.
Credit risk is defined as the potential loss the City of Roseville (“City”) could incur as a result of non-payment or non-performance by a counterparty.
The amount of credit risk in a trading portfolio can be measured, monitored and mitigated in order to maintain the level of credit risk authorized by the City. Forms of credit risk are:
• Payment Risk which is the cost exposure to the value of accounts receivable and accrued receivables (delivered but not invoiced).
• Performance (mark to market) Risk which is the cost exposure of replacing the contractual obligations of open contracts in the relevant market placemarketplace.
As part of risk management, credit risk management is a control and oversight activity. It must remain independent from the trading activity, butactivity but work closely with the business to ensure that credit policies are implemented and maintained.
The objective of credit risk management is to preserve the capital and liquidity of the City by establishing procedures that define the determinants for granting open lines of credit and managing counterparty credit exposure. The intent of this policy is to reduce counterparty default risk to its lowest acceptable level.
2. Extension of Credit to Counterparties
The credit analysis of each counterparty is to be performed by the Credit Department of the Power Management Services Agent (“Agent”) and submitted with recommendations regarding credit limits to the Electric Utility Financial Administrator or designee for approval. The point of contact for the City is the Electric Utility Financial Administrator or designee.
The City will manage its counterparty credit risk primarily through diversification, execution with qualified counterparties, the use of standardized trading contracts (EEI, WSPP, NAESB, ISDA), credit and collateral agreements and strict adherence to credit limits. The City will attempt to diversify its portfolio by entering into transactions with numerous counterparties. TheThe Agent City will maintain an approved counterparty list.
In negotiating agreements and ongoing contractual terms with counterparties, the Agent as well as the City shall strive to include prudent industry practice credit provisions.
ENERGY CREDIT RISK POLICY Page 2 of 78
These shall include, but are not limited /to, explicit netting agreements and provisions granting the Agent the right to call for and receive collateral in the event the counterparty exceeds its approved collateral threshold or suffers a material adverse credit event.
The creditworthiness of each counterparty must be determined through a fundamental analysis of the counterparty’s financial and operational condition.
The credit analysis incorporates two basic components, a business profile (qualitative analysis) and a financial profile (quantitative analysis). A credit limit and a term limit are established as a result of this due diligence process.
3. 4. Credit Analysis –
5.3. Determination of the Amount of an Unsecured Credit Limit Counterparties may qualify for the extension of an unsecured credit limit from the City by providing audited financial statements that indicate sufficient financial strength to allow for the extension of an unsecured credit limit and at least one of the following:
i. An issuer rating or a long term unsecured debt rating of at least BB- from Standard & Poor’s or Ba3 from Moody’s for transactions up to one week forward.
ii. An issuer rating or a long term unsecured debt rating of at least BBB- from Standard & Poor’s or Baa3 from Moody’s for transactions beyond one week forward.
iii. In the event that the counterparty does not have a debt rating, the Agent may use their Proprietary Credit Scoring Model to determine an
internal rating. An internal rating of at least BB- is required for transactions up to one week forward. An internal rating of at least BBB- is required for transactions beyond one week forward. iv. At any time, and regardless of credit ratings, the City Council may authorize transactions with counterparties determined to be beneficial to Tthe City.
TradeTrade and banking references that indicate the company has sufficient history and adequate credit facilities to allow for the issuance of an unsecured credit limit.
The Agent will use the unsecured ratings of Standard & Poor’s or Moody’s when available.
For unrated counterparties two internal Credit credit Scoring scoring Models models should be utilized.
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• One credit scoring model is designed for public counterparties. This includes generation and transmission cooperatives, distribution cooperatives, municipalities, government agencies, public power agencies, and other not-for-profit counterparties.
• The second credit scoring model is used for assigning a rating to non-public counterparties or for profitfor-profit counterparties.
The purpose of two separate credit scoring models is to provide recognition of two distinct business models and the drivers that meaningfully distinguish and measure the financial and credit risks of each.
Once a counterparty has been determined to be creditworthy, an unsecured credit limit may be recommended by the Agent’s credit risk management department up to 5% of tangible net worth, or, in the case of governmental agencies or non-profit wholesale power suppliers, up to 10% of their average free cash flow for the prior two years. In order to help the City make its unsecured credit limit decision, the Agent will provide both the unsecured credit limit recommendation, and an Unconstrained Estimate of Creditworthiness (UEW) (5% of tangible net worth or, if requested by The the City, 10% of average free cash flow) when the recommendation is made.
6.4. Approval Authority
The City has discretionthe discretion to set a counterparty’s unsecured credit limit based on the ffollowing guidelines. The maximum unsecured credit limit is limited by two factors:
• The lesser of the counterparties S&P and Moody’s ratings, or if unrated, their score under the Agent’s Proprietary proprietary Credit credit Scoring scoring Modelmodel, used to define a fixed maximum unsecured credit limit.
• This same criteriaThis same criterion is used to define a percentage of their Unconstrained Estimate of Creditworthiness (“UEW”):
The tableThe table below defines how the unsecured credit limit may be set.
Credit Strength Maximum UnsecuredMaximum
Unsecured Credit Limit Rated
Unrated
(Lesser of the Two Limits,
Lesser of Both
Ratings
Minimum of $0)
S&P Moodys
Agent
Internal
Rating Fixed Value % of UEW
>= A- >= A3 >= A- $25,000,000 65%
BBB+ Baa1 BBB+ $15,000,000 50%
BBB Baa2 BBB $10,000,000 50%
BBB- Baa3 BBB- $2,500,000 35%
<BBB- <Baa3 <BBB- $0 35%
ENERGY CREDIT RISK POLICY Page 4 of 78
Levels of authorization at City’s discretion:
i. City’s Electric Utility Financial Administrator or designee: Up to $10,000,000. ii. City’s Electric Utility Director: Approve up to the amount in the above table. ii.
iii.
iv.iii. City Council: Amounts: Amounts exceeding the above table.
The City Council may approve collateral threshold tables within master agreements in excess of the amounts in the above table. This action establishes a maximum unsecured credit limit for the counterparty based on their credit rating.
Once an unsecured credit limit has been established by either the City’s Electric Utility Director or the City Council, the City’s Electric Utility Financial Administrator or designee may issue a working credit limit at any level up to the amount established.
5. Credit Trading Restriction Approval Authority
The City’s Assistant Electric Utility Director of Finance and Customer Care will have the authority to approve Credit Trading Restrictions. The City’s approvals will take into consideration Credit Trading Restriction recommendations provided by the Agent’s Credit Department. The Electric Utility Director designee or Assistant Electric Utility Director of Finance and Customer Care will have the authority to make such approved changes to the counterparty Credit Trading Restrictions via the Agent’s Credit Portal.
The Agent’s recommended trading restrictions will be distributed and posted to the Credit Portal.
56. Credit Enhancements
Counterparties that do not qualify for an extension of an unsecured credit limit must post at least one of the following types of security prior to the execution of a transaction:
6.1 Corporate Guarantee: Counterparties may provide a guarantee from a third party that meets the creditworthiness requirements noted above. If a counterparty provides such a guarantee, the amount of any unsecured credit limit will be determined through an analysis of the financial statements of the guarantor. All guarantees must be in a format that is acceptable to the City.
6.2 Letter of Credit: Counterparties may provide an irrevocable letter of credit for an amount sufficient to cover the related transactions. Letters of credit must be issued by a U.S. bank or a financial institution or a U.S. branch of a foreign bank with a rating of at least an A from Standard & Poor’s or A2 from Moody’s.
6.3 Prepayment (margin): Counterparties may provide a prepayment or cash margin deposit that is sufficient to cover the related transactions.6.
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67. Counterparty Credit
Establishing limits and monitoring credit information should be done separately from energy transaction activities in order toto ensure appropriate segregation of duties within the City.
6.1 Credit Limit: is dDefined as the sum of:
i. The the approved amount of the unsecured credit limit. plus ii. The value of any approved guarantees held, providing additional security or assurance beyond the unsecured limit.the approved guaranteed amount of any guarantee(s) held plus
iii. The the value of any letter of credit or cash collateral held plus. iv. The the approved value of any other type of collateral held.
6.2 Available Credit: is tThe dollar amount remaining open on the working credit limit approved for a counterparty.
6.3 Exposure: is tThe total amount of a counterparty’s credit exposure defined as the sum of:
i. The dollar value of all amounts invoiced and unpaid. ii. The dollar amount of all deliveries that have not yet been invoiced. iii. The marked to market value of all forward trades.
iv. Less all offsetting amounts that are supported by legally binding netting agreements or Edison Electric Institute (EEI) agEEI Agreements.
8. Counterparty Credit Reviews
New counterparties are to be evaluated for creditworthiness by the Agent’s credit risk management department prior to any transactions. Unsecured credit limits up to $10,000,000 may be recommended by the Executive Director of Credit (or similar position title) of the Agent.
Existing counterparties are to be formally reviewed and documented by the Agent’s credit risk management department on a yearly basis at a minimum. More frequent reviews may be necessary, at the discretion of the Agent’s credit risk management department or at the request of the City.
Counterparties sharing a common parent or affiliation will be assigned to a group. A credit limit will be assigned to the group with individual credit limits being assigned to each counterparty within the group. The aggregate credit limit of these counterparties will not exceed the established group limit.
9. Credit File Documentation and Retention
Credit analysis, approvals and denials must be documented in writing and all
ENERGY CREDIT RISK POLICY Page 6 of 78
counterparty information shall be contained in formal credit files that are maintained at the offices of the Agent. These credit files are expected to contain audited financial statements and a credit review analysis report with a credit limit
ENERGY CREDIT RISK POLICY Page 7 of 78
recommendation signed by the Executive Director of Credit (or similar position title) of the Agent. These files should also contain as much of the following as possible:
• At least the two most recent years of audited financial statement information, if counterpartythe counterparty does not have publicly available financial information. (i.e. counterparties that do not file with the SEC).
• Rating information as published by Standard & Poor’s or Moody’s. • General industry information, if applicable.
10. Credit Controls and Trading Restrictions
An approved list of trading counterparties noting working credit limits, available credit, and tenor restrictions is distributed each business day to all traders either via e-mail or through the Agent’s website. Under no circumstances should a trade be executed with a counterparty that does not appear on the approved list of trading counterparties. No credit sleeving transactions shall be executed.
The Executive Director of Credit (or similar position title) of the Agent is to provide general oversight over the credit function, reporting any credit issues to the Electric Utility Financial Administrator or designee who will ensure dissemination to the Risk Management Committee and the Risk Oversight Committee of the City.
Entering intoEntering unsecured transactions with a counterparty that will cause the total credit exposure to that counterparty to exceed the available credit will be allowed only if new working credit limits are set in writing. No new transactions are to be entered into with counterparties that have exceeded their working credit limits except as they may mitigate (offset) existing exposure, contingent upon a netting agreement. Any new unsecured, unauthorized transactions entered into with a counterparty that has a creditcredit exposure in excess of its assigned working credit limit will subject the trader to disciplinary action.
All violations of this policy will be reported to the Risk Management Committee of the Agent.
The Agent will also report such violations to the City Attorney and the City’s Electric Utility Financial Administrator or designee, who will be responsible for dissemination to the City’s Risk Management Committee in a timely manner. If warranted, the City’s Risk Management Committee could escalate the issue to the City’s Risk Oversight Committee to develop remediation procedures and/or initiate disciplinary action.
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11. Receivables/Payables Management
Unless otherwise instructed by the City, the Agent will consider all receivables/payables to be settled on the payment due date of the executed transaction.
As is generally accepted accounting practice, if necessary, a reserve will be established to allow for potential bad debts. This reserve will be determined jointly by the Executive Director of Credit (or similar position title) at Agent and the Finance Director of the City.
12. Collateral Management
The Agent is authorized to give credit information on the City to counterparties in order toto establish credit approvals. The Agent will coordinate with the Finance Department of the City regarding the issuance or receipt of collateral to support a transaction. Any collateral that is received by the Agent for the City will be held by the City.
13. Related Policies
i. i.Supporting policies and procedures are required as outlined below:
City of Roseville Electric Utility Energy Risk Management Policy City of Roseville Energy Trading Authority Policy
City of Roseville Energy Hedge Policy
Resolution 06-0217-368 retaining APM for power management services Resolution 06-28616-161 declaring APM as agent for the purposes of risk policies
“ACES” – Alliance for Cooperative Energy Services Power Marketing
7. 14. Amendments to the Credit Risk Policy of the City:
From time to timetime, it may be necessary to make changes to the Electric Energy Credit Risk Policy of the City. Amendments to this policy will be made by City Council action.
Add revision table and definitions
ENERGY CREDIT RISK POLICY Page 9 of 78
15. Version History
Version Date Change Tracking
0 11/06/2024 Initial version
ENERGY CREDIT RISK POLICY Page 10 of 78
RESOLUTION NO. 25-151
APPROVING UPDATES TO THE ENERGY TRADING AUTHORITY POLICY WHEREAS, the City Council adopt a comprehensive set of Energy Risk Management Policies in 2005 to guide the prudent operation of Roseville Electric Utility; and WHEREAS, the Energy Trading Authority Policy outlines permissible transaction types and assigns authorization levels to the City Manager and the Agent; and WHEREAS, the policies are regularly reviewed and updated to reflect changes in market conditions, regulatory requirements and operational needs; and WHEREAS, the City Council has reviewed the proposed updates to the Energy Trading Authority Policy, which are being enhanced to clarify authorization limit and support consistent transaction execution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Roseville that the updates to the Energy Trading Authority Policy for Roseville Electric are hereby approved.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of __________________________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
___________________________
City Clerk
ENERGY TRADING AUTHORITY POLICY
Energy Trading Authority Policy
02x/24xx/2022
2025
ENERGY TRADING AUTHORITY POLICY
Table of Contents
1. Policy Overview.......................................................................................................................... 1
2. Execution Authority ................................................................................................................... 1
3. Requirements ............................................................................................................................ 1
4. Non-Permissible Transactions .................................................................................................... 2
5. Standard Transactions................................................................................................................ 2
6. Non-standard Transactions ........................................................................................................ 5
7. Aggregated Dollar Authority Limits............................................................................................. 5
8. Acknowledgements.................................................................................................................. 11
9. Responsibility........................................................................................................................... 11
10. Related Responsibilities.......................................................................................................... 11
11. Version History……………………………………………………………………………………………………………………….12
ENERGY TRADING AUTHORITY POLICY
2x/24xx/20222025
1. Purpose Policy Overview
The Energy Trading Authority Policy (“Policy”) is the framework containing the governing rules and requirements associated with the City’s energy related transactions. The Policy also specifies the list of authorities or powers granted by the City Council of the City of Roseville (“City”) to the City Manager and key personnel that can execute energy related transactions.
1.1 The Energy Trading Authority Policy includes directives that address the following:
i. The City’s intention regarding hedging and speculating;speculating. ii. Who has authority to execute transactions;transactions. iii. The commodities and products that can be transacted;transacted. iv. The authorized lead-time and term for each transaction;transaction. v. Counterparty contract and credit requirements;requirements. vi. Other relevant factors associated with due diligence in authorizing transactions to be executed.
2. Execution Authority
The City Council granted the City Manager the ability to delegate his/her authority to the Electric Utility Director and Power Management Services Agent (“Agent”) at his/her discretion. The City Manager may also choose to amend the extent of authority granted to the Electric Utility Director and Agent at his/herstheir discretion as long asif it does not surpass the limit of his/her owntheir authority.
The Transaction Authority Matrix outlines the Execution Authority Limits and defines the trading limits applicable to purchases and sales for each authority level in sections 7.1, 7.2, and 7.3.
All transactions must be executed via a recorded communication method. Recorded communications must be maintained and controlled by personnel who are independent of the trading function. Any request by the City for the Agents to execute on its behalf a transaction beyond the Agent’s authority must by be documented in accordance with this Policy.
3. Requirements
3.1 Credit Requirements –
i. Roseville Electric Utility shall not intentionally exceed the credit limit associated with each counterparty. Entering intoEntering unsecured transactions with a counterparty that has total credit exposure greater than or equal to its open line of credit, and the total of any security currently provided,provided will be managed accordingg
i. to the City of Roseville’s Energy Credit Risk Policy. a. (Note: Since credit exposures areis a function of not only the positions traded, but also a function of market pricing and volatility, credit exposure to a counterparty may unintentionally exceed a credit limit purely due to changes in the forward market).
3.2 Contract Requirements –
i. Transactions with counterparties shall only be permitted if Citythe City has an active, valid, and executed agreement enabling such trading activity with that counterparty.
i.ii. Long form confirmations may be used as a valid agreement in lieu of a permanent agreement, when necessary, if approved by the Roseville City Council.
4. Non-Permissible Transactions
4.1 Sleeving
i. No sleeving transactions for credit or contract purposes shall be executed. ii.i. Note: Credit Sleeving is an arrangement where a more financially reputable entity acts as middleman for a smaller, undercapitalized entity in the purchase or sale of power. Contract sleeving is an arrangement where an entity acts as a middleman between two entities to bridge a contract gap that exists between the two entities.
4.2 Speculative
i. The primary purpose of trading activities shall be for hedging and portfolio optimization (including participation in arbitrage opportunities). However, the Energy Hedge Policy does allow the City to take advantage of market opportunities through transactions that could in the strictest sense be labeled speculation if those transactions expose the City to additional risk. The Energy Hedge Policy defines what is permissible in this regard.
5. Standard Transactions
Types of transactions that are executed by Roseville or its Agent must be consistent with City Council resolutions, all applicable laws, and rules and regulations. These may include, but not limited to the following:
5.1 Enabling and Master Agreements
5.2 Purchase and Sales of Energy Products such as:
5.2.1 Electric Power, Capacity, and including Transmission (Financial and Physical Contracts)
ENERGY TRADING AUTHORITY POLICY Page 2 of 12
i. Purchase energy or capacity to serve load above what is expected to be generated or purchased from existing resources, or if energy or capacity purchases are more economical than existing resources.
ii. Sell existing capacity or energy that is expected to be in excess of the City’s requirements.
iii. Execute financial transactions, including CAISO virtual transactions, to fix the price of variable commodity purchases or sales.
iv. Purchase from the CAISO markets to meet the City’s load requirements or sell into the CAISO markets energy in excess of the City’s load requirements.
v. Purchase call options to limit price exposure on short power positions. vi. Sell call options or tolling agreements on capacity that is expected to be in excess of the City’s resource requirements.
vii. Purchase a “floor” to limit price exposure on long power positions. viii. Sell a “floor” to offset a portion of the price of the purchase of a call. ix. Execute physical spread transactions at authorized locations. ii.x. Transmission purchases are to be as firm as possible to reasonably assure the delivery of the commodity at the firmness transacted.
Notes:
• Physical Contracts are contracts that require “sellers” to produce and deliver the commodity to the “buyers”. Financial Contracts do not involve a direct physical delivery of a commodity; insteadinstead, they use cash settlements, the buyer either gains or loses credit against the seller based on the difference between the agreed “entry” price and the “final” settlement price.
5.2.2 Natural Gas and including Transportation (Financial and Physical Contracts)
i. Purchase natural gas and transportation that is expected to be needed to fuel the Roseville facilities. Enter into imbalance and storage agreements if deemed beneficial to fuel Roseville facilities.
ii. Sell surplus gas, or release transportation capacity, if more economic energy is available for purchase.
iii. Purchase call options to limit price exposure on short natural gas positions. iv. Sell call options or tolling agreements on capacity that is expected to be in excess of the City’s resource requirements.
v. Purchase a “floor” to limit price exposure on long natural positions.
ENERGY TRADING AUTHORITY POLICY Page 3 of 12
vi. Sell a “floor” to offset a portion of the price of the purchase of call options listed in item (5) above.
i.vii. Transportation purchases are to be as firm as possible to reasonably assure the delivery of the commodity at the firmness transacted.
5.2.3 Environmental Compliance Compliance Instruments
i. PurchaPurchase environmental compliance instruments, including but not limited to Low Carbon Fuel Standard (LCFS) credits, Greenhouse Gas (GHG) allowances, GHG offsets, and Federal Sulfur Dioxide (SO2) and Nitrogen Oxide (NOx) emission allowances expected to be necessary to optimize the operation of the City’s resource portfolio.se environmental compliance instruments, including but not limited to LCFS credits, GHG allowances, GHG offsets and Federal SO2 and NOx emission allowances expected to be necessary to optimize the operation of the City’s resource portfolio.
i.ii. Sell environmental compliance compliance instruments, including- but not limited to- Carbon Free Attributes, LCFS credits, GHG allowances, GHG offsets, and Federal SO2 and NOx Emission Allowances deemed unnecessary for efficient operation of the City’s resource portfolio.
5.2.4 REC’s Renewable Energy Credits (RECs) and Energy Attributes
5.2.4 i. Purchase or sell Rrenewable Eenergy Ccredits (REC) RECs and/or energy attributes as required to meet compliance requirements.
5.2.5 Congestion Revenue Rights
i. Execute Ccongestion Rrevenue Rrights (CRR) or physical transmission transactions, including natural gas transportation to to manage congestion price risk.
5.2.6 Ancillary Services
i. Purchase bilateral ancillary services to meet the City’s load requirements or sell bilateral ancillary services in excess of the City’s load requirements. i.ii. Purchase CAISO aAncillary sServices (sSpinning rReserves, NnonSspinning rReserves, and Rregulation up, and regulation down) to meet the City’s load requirements or sell CAISO aAncillary sServices in excess of the City's load requirements.
5.2.7 Movement of Eenergy Tto and Ffrom:
i. CAISO (NP15 and SP15), BANC (Balancing Area of Northern California), Mid-Columbia, John Day, Big Eddy and COB.
ENERGY TRADING AUTHORITY POLICY Page 4 of 12
a. Execute physical spread transactions at authorized locations. b. For financial electricity transactions, authorized locations include CAISO NP 15 EZ Gen Hub, CAISO SP 15 EZ Gen Hub, the Balancing Area of Northern California (BANCHub, BANC), Mid-Columbia, John Day, Big Eddy, and COB. These same locations are authorized for physical electricity transactions to the extent delivery can be reasonably expected.
c. Additional physical and financial locations include owned-generation locations within the CAISO, and CAISO inter-tiesinterties for import and export transactions.
5.2.8 Movement of Natural Gas Tto and Ffrom:
i. PG&E CityGate, Malin, Topock, Henry Hub, and the SoCal Border. a. Execute physical spread transactions at authorized locations. b. For Natural Gas physical and financial nNatural gGas transactions, authorized locations include PG&E CityGate, Malin, Topock and the SoCal Border.
c. Henry Hub is authorized for financial nNatural Ggas hedging, as well as Henry Hub to the PG&E CityGate Basis.
5.2.9 Energy Exchange:
EAn energy exchange transaction is defined as any transaction in which similar quantities of energy are exchanged across locations or commodities to lower cost, or to reduce risk, or to increase reliability.
6. Non-Standard Transactions
City staff may enter non-standard Transactions transactions with City Council’s approval. Nonstandard Transactions transactions fall outside the scope of the defined “Standardstandard” Transactionstransactions; these may include new opportunities that involve the following:
i. New commodities
ii. Locations outside of defined trading boundaries
iii. Pilot programs
6.1 The approval process for non-standard transactions are defined by the following:
i. Transaction Proposal: -
The proposal is the responsibility of the person or business group proposing the transaction. The proposal should address the business need, risks, trading controls, valuation methodology, accounting methodology, operations workflow/methodology, and assessment of legal and regulatory issues.
ii. City Council Review: -
ENERGY TRADING AUTHORITY POLICY Page 5 of 12
The Risk Oversight Committee (“ROC”) will perform a review on behalf of, and make a recommendation to, the City Council on the benefits and risks of the proposed transaction. The City Council will assess the proposed transaction and make a determinationdecide whether to add the proposed transaction to the approved list.
7. Aggregated Dollar Authority Limits
The aggregated dollar authority limit specifies the corresponding maximum dollars each authority level is allowed to authorize for forward transactions for eElectric pPower, tTransmission, nNatural gGas, natural gas tTransportation, eEnvironmental cCompliance iInstruments, RECs and Energy Attributes, Congestive Revenue RightsCRRcongested revenue rights, aAncillary Sservices, and eEnergy eExchanges. See Authority Matrix for details.
ENERGY TRADING AUTHORITY POLICY Page 6 of 12
7.1 Authority Matrix:
Title Source of
Authority
Products Term Delivery
Lead
Time
Termination
Limits
Aggregate Dollar Authority
Limit
Power &
Transmission
Nat. Gas &
Transportation
Environmental
Compliance
Instruments
(e.g., LCFS,
GHG Credits)
RECs and
Energy
Attributes
Congestion
s Revenue
Rights
Ancillary
Services
Energy
Exchanges Net Gross
City
Council
State Law,
City
Charter
X X XX X X X X No
Limit
No Limit No Limit No Limit No Limit
City
Manager
City
Council X X XX X X X X
< 6
Years
< 6
Years
< 6
Years $500,000,000 $700,000,000
Utility
Director
City
Council X X
< 3
Month
<6
Months
< 1
Year $5,000,000 $57,000,000
Agent’s
CEO
City
Council X X X X X
< 1
Month
< 6
Weeks
< 2
Months $23,000,000 $31,000,000
i. Authority Matrix Explanations:
• The gross aggregate limits represent the maximum allowable total dollars based on the absolute values of all forward purchases and sales.
• The net aggregate limits represent the maximum allowable total dollars between all forward purchases and sales. • Delivery Lead Time represents the time period from the date a trade is executed to the start of the trade. • Unless otherwise stated, the dollar limits are based upon electric power only and do not include transmission, however, the Term, Lead Time, and Quantity limits do apply to transmission. • Termination Limit refers to the last day of the term from the execution day of the contract. • Power and Natural Gas products typically include transmission and transportation respectively.
ENERGY TRADING AUTHORITY POLICY Page 7 of 12
7.2 Authority Matrix for Agent’s Short-Term Traders:
Product Source of
Authority
Per Transaction
Limits
Per Trading Day Limits
(Up to)
Aggregated Limits
(Up to)
Term Delivery
Lead Time
Termination
Limits
Volume
Size
Total Cost
($)
Volume
Size
Total Cost
($)
Total
Volume
Net Total
($)
Gross Total
($)
Power and
Transmission
City
Council
(Can be
Modified
by City
Manager)
> 1 Week
< 1 Month
< 6
Weeks
< 2
Months
8,400 MWh
per Week
$1,050,000
per Week
111,600
MWh
$14,000,000
446,400
MWh
$17,000,000 $21,000,000
> 1 Day
< 1 Week
2,400 MWh
per Day
$600,000
per Day
33,600 MWh $8,400,000
< 1 Day 4,800 MWh
per Day
No Max.
(Keep Lights
On)
No Max.
(Keep Lights
On)
No Max.
(Keep Lights
On)
Natural Gas
and
Transportation
< 1 Month
< 6
Weeks
< 2
Months
12,000
MMBTU/D
X 775,000
MMBTU
$6,200,000 775,000
MMBTU
$6,200,000 $9,300,000
> 1 Day
< 1 Week
40,000
MMBTU/D
X 280,000
MMBTU
$4,200,000 400,000
MMBTU
$4,000,000 $6,000,000
< 1 Day < 1
Week
< 2
Weeks
50,000
MMBTU/D
X 150,000
MMBTU
$3,000,000 150,000
MMBTU
$2,000,000 $4,000,000
ENERGY TRADING AUTHORITY POLICY Page 8 of 12
i. Authority Matrix for Agent’s Short-Term Traders Matrix Explanations:
a. Power and Transmission Transactions:
• Transaction Limits represent the MWh volume per period labeled in the tableand total dollars per period (as labeled above) for each transaction executed. • Per Trading Day Limits represent the total MWH volume and dollars for all transactions executed in a trading day.
• The transaction term limit for the Agent of < 1 Day covers individual daily transactions as well as executed transactions for more than one day to accommodate weekends or holidays, which could have terms up to 3 days for a normal weekend and up to 5 days for a holiday weekend.
• The gross aggregate limits represent the maximum allowable total dollars based on the absolute values of all forward purchases and sales. • The net aggregate limits represent the maximum allowable total dollars between all forward purchases and sales.
• Delivery Lead Time represents the time period from the date executionto the first day of the term of the trade.
• Unless otherwise stated, the dollar limits are based upon electric power only and do not include transmission, however, the Term, Lead Time, and Quantity limits do apply to transmission.
• Termination Limit refers to the time period between the date of execution and the last day of the term of the trade.
b. Natural Gas and Transportation Transactions:
• Transaction Limits represent the daily MMBtu volume for each transaction executed.
• Per Trading Day Limits represent the total MMBtu volume and dollars for all transactions executed in a trading day.
• The transaction term limit for the Agent of < 1 Day covers individual daily transactions as well as executed transactions for more than one day to accommodate weekends or holidays, which could have terms up to 3 days for a normal weekend and up to 5 days for a holiday weekend.
• The gross aggregate limits represent the maximum allowable total dollars based on the absolute values of all forward purchases and sales. • The net aggregate limits represent the maximum allowable total dollars between all forward purchases and sales.
• Lead time represents the time period from the date a trade is executed to the start of thetrade.
• One monthly NYMEX contract contains 10,000 MMBtu.
• The dollar limits are based upon commodity gas only and do not include transportation, however, the Term, Lead Time, and Quantity limits do apply to transportation.
• Termination limit refers to the last day of the term from the execution day of the contract.
ENERGY TRADING AUTHORITY POLICY Page 9 of 12
7.3 CAISO Trading Authority Matrix for Agent’s Short-Term Traders:
Products Delivery Lead Time Term MW Size $/MWh
Generation
Awards
As Required by CAISO 1 Operating Day 230 CAISO Price Cap Demand
Awards
Demand
Awards
None
None
Inter SC
Transactions (IST)
Inter SC
Transactions (IST)
See Matrix
Explanation
Inter SC Transactions
(IST) See Matrix
Explanation
200
Inter SC Transactions
(IST)
Inter SC
Transactions (IST)
See Matrix Explanation
CAISO
Imports
As Required by CAISO
As Required by CAISO
1 Operating Day
230
CAISO Price Cap
CAISO
Exports
375
Ancillary
Services
200
Congestion Revenue
Rights
None
i. CAISO Trading Authority Matrix for Agent’s Short-Term Traders Matrix Explanations:
• Generation Award Limits are per generating unit within the CAISO. • Demand Award Limits are per each load location.
• An Inter SC Trade is an energy quantity traded from one SC to another SC for a specific hour and location, therefore Inter SC Trades may be submitted to the ISO but are not monitored as they are a direct result of the bilateral trade executed between the SC’s. Only the bilateral transaction will be monitored in accordance with the appropriate authority matrix.
•
ENERGY TRADING AUTHORITY POLICY Page 10 of 12
• CAISO Imports and Exports are by location and are each monitored separately. • Inter SC Transactions (IST) are each monitored separately. • Limits for Ancillary Service Awards apply to the Regulation and Operating (Spinning and Non- Spinning) Reserve Market. Limits for ancillary services transacted bilaterally are addressed in the power authority matrix. • Only Congestion Revenue Rights that are bought and sold via the long-term, annual and monthly auctions or in the secondary market are monitored per the limits above. This excludes congestion revenue rights allocated in the Annual Allocation.
• Term applies to either the calendar year or planning year.
8. Acknowledgements
8.1 Violations and Sanctions –
i. Violations of this Policy must not occur. Should it be deemed that a violations did occur due to the actions of City employees, the Agent will notify the City’s Electric Utility Financial Administrator or designee and the City Attorney of such violations. Those individuals will have the responsibility to bring the violations to the Risk Management Committee for discussion. If warranted, the Risk Management Committee may escalate the issue to the Risk Oversight Committee to develop remediation procedures.
8.2 Policy Effective –
ii. This Policy is in effect upon the City Council’s approval and shall remain in effect until a replacement policy has been approved by the City Council superseding this Policy.
9. Responsibility
It shall be the responsibility of the City Council, through the duly appointed Risk Oversight Committee, Risk Management Committee and the City Manager to assure compliance with this policy.
10. Related Policies
i. Supporting policies and procedures are required as outlined below:
Energy Credit Risk Policy
Electric Utility Risk Management Policy
Energy Hedge Policy
Resolution 17-368 retaining APM for power management services
ENERGY TRADING AUTHORITY POLICY Page 11 of 12
Resolution 16-161 declaring APM as agent for the purposes of risk policies
10.1 Supporting policies and procedures are required as outlined below:
i. City of Roseville Energy Credit Risk Policy
ii. City of Roseville Electric Utility Energy Risk Management Policy iii. City of Roseville Energy Risk Identification Policy and Hedge Plan iv. Resolution 17-368 declaring ACES for power management services Resolution 16-161 declaring ACES as agent for the purposes of risk policies.
May be good to add a revision table and definition section
11. Version History
Version Date Change Tracking
0 11/06/2024 Initial version
RESOLUTION NO. 25-152
APPROVING UPDATES TO THE ENERGY HEDGE POLICY
WHEREAS, the City Council adopt a comprehensive set of Energy Risk Management Policies in 2005 to guide the prudent operation of Roseville Electric Utility; and WHEREAS, the Energy Hedge Policy details the utility’s hedging objectives, risk tolerance, and guidelines for managing price volatility in power supply costs; and WHEREAS, the policies are regularly reviewed and updated to reflect changes in market conditions, regulatory requirements and operational needs; and WHEREAS, the City Council has reviewed the proposed updates to the Energy Hedge Policy, which are being adjusted to improvement alignment with hedging best practices and internal risk tolerance thresholds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Roseville that the updates to the Energy Hedge Policy for Roseville Electric are hereby approved.
PASSED AND ADOPTED by the Council of the City of Roseville this ___ day of __________________________, 20__, by the following vote on roll call:
AYES COUNCILMEMBERS:
NOES COUNCILMEMBERS:
ABSENT COUNCILMEMBERS:
______________________________
MAYOR
ATTEST:
___________________________
City Clerk
ENERGY HEDGE POLICY
Energy Hedge Policy
x/xx/2025
ENERGY HEDGE POLICY
Table of Contents
1. Policy Overview .............................................................................................................................. 1
2. Hedging Policy Criteria.................................................................................................................... 1
3. Natural Gas Hedging ..................................................................................................................... 43
4. Risk Measurement and Compliance Reporting ................................................................................ 4
5. Responsibility.................................................................................................................................. 4
6. Related Policies............................................................................................................................... 4
7. Version History ................................................................................................................. 5
ENERGY HEDGE POLICY Page 1 of 45
ENERGY HEDGE POLICY
x/xx/2025
1. SummaryPolicy Overview
The City of Roseville (“City”) Hedge Policy outlines the energy hedging policy (natural gas and electricity) that will guide disciplined hedging of forward energy resources. The hedge policy is designed to reduce volumetric energy rate volatility and to maintain rates within reasonable tolerances. The primary purpose of this policy is to identify specific guidelines and criteria for procuring projected energy needs. These procurement criteria are defined for months, quarters, fiscal years, and calendar years as appropriate in the different parts of the policy.
The policy largely employs a price averaging strategy of declining percentage of energy supply positions held over forward time periods. This strategy protects the City from potential adverse impacts that could result from either significant energy price increases or decreases. The strategy also maintains some elements of procurement to remain flexible. For example, during times of extremely attractive market conditions presenting favorable opportunities for procurement, this policy allows for increasing the amount of forward energy hedged above the stated ranges with the concurrence of the City’s Risk Oversight Committee (“ROC”). A key component of the policy is a monthly report for the Risk Management Committee and a quarterly report to the City Council and ROC, which is outlined herein.
2. Hedging Policy Criteria
3.2. 3.12.1 Rolling Monthly Hedge Ranges
One criterion of this policy is to have energy procured within defined volumetric ranges during the following rolling monthly and quarterly timeframes. These ranges identify the percentage of City’s projected total energy needs that will be procured with fixed price energy over a given time periodperiod and tenure. For use within this policy, energy needs are considered hedged or procured to the extent that the projected need is met by:
i. Authorized Transactions, as defined in the Roseville Energy Trading Authority Policy
or
Other transactions as Authorized by the City Council, using the process outlined in the Roseville Energy Trading Authority Policy. Options with out of the money strike prices may be used to hedge forward volumes, provided that they do not account for more than 15% of the projected energy needs in any given month, and they are not more than 50% out of the money at the time of the transaction.
ENERGY HEDGE POLICY Page 2 of 45
3.22.2 The City will hedge projected energy needs based on the following criteria:
Lead Time Months 1 to 12 Quarters 5 to 8 Quarters 9 to 12 Hedging Frequency Monthly Quarterly Quarterly
Range (%) 90-110% 70-100% 45-80%
i. Lead Time: This is the amount of time from the current period (including the current period). It may be defined in months or quarters. ii. Hedging Frequency: This is the frequency that the hedging period changes.
This is to prevent a situation where Month 36 (the last month of Quarter 12) would have to be hedged at a time when monthly purchases are very illiquid.
It also defines the purchases of hedges, indicating that a one-month hedge could be purchased for each month between Month 1 and Month 12, whereas a whole quarter hedge would be purchased for a period starting Quarter 5. In case of a conflict, monthly frequency has precedence over quarterly.
iii.Range: This is the lower and upper bounds of overall energy needs that will be required to be covered with fixed price energy, and/or up to 15% with call options. If the percentage of overall energy compared to the expected Financeforecasted 1 in 2 load by the Finance Division load for the total lead time is within the bounds, then Roseville is in compliance. iv.Remediation Period: If non-compliant, oOn Violation is 45 Days, meaning the City has 45 days from the date of the violation notice to get back in compliance with the hedging policy.
Deviations that exceed the range will require approval of the ROC and/or City Council, and will be part of the regular reporting to the City Council.
Because the models being used to determine official compliance with this policy are being run by an external entity, the City’s first warning of being out of compliance with this policy may occur when a report is delivered showing it is out of compliance. As such, the City will have 45 days to remedy the out of compliance situation before it is deemed a violation.