City Council Agenda Report
Meeting Date: May 21, 2024
From: Todd Dusenberry, General Manager of Public Utilities Department: Public Utilities
Submitted by: Adriana Ramos, Management Analyst
Subject
Letter Agreement with Southern California Edison Company Recommendation
Ratify the execution of the Letter Agreement between the City of Vernon and Southern California Edison Company (SCE) to reflect SCE's updated project commencement and payment start dates regarding the engineering and procurement work related to Interconnection Facilities, Distribution Upgrades, and Network Upgrades.
Background
The City has plans to provide new electric services to some large commercial projects that are in development. This will require up to 150 megawatts of new electric load to be constructed at various locations in Vernon. The new electric loads will require service from the City’s 66kV subtransmission system, which is connected to the Southern California Edison Company (SCE) Laguna Bell Substation.
To increase the City’s electric load capacity and support potential new development projects, the City Council approved a Letter Agreement with SCE on April 16, 2024. Under this agreement, SCE will perform the necessary engineering and procurement work related to Interconnection Facilities, Distribution Upgrades, and Network Upgrades in an amount not to exceed $14,024,895. The City Council has also granted authority to the City Administrator to issue change orders for an amount up to five percent (5%) or $701,245, in case of unforeseen changes in fees or other expenses not included in the proposal.
After the agreement was approved by the City Council, SCE made changes to the start dates for project commencement and payment schedule to be consistent with the signature dates on the agreement, which was signed by SCE on May 9, 2024. To prevent SCE from facing delays in performing the necessary engineering and procurement phases of the project, the City Administrator executed the revised Letter Agreement. As a result, staff is now requesting the City Council to ratify the agreement with the revised project commencement and payment schedule dates.
The revised SCE Letter Agreement has been reviewed and approved as to form by the City Attorney’s Office.
Fiscal Impact
There is no fiscal impact associated with this report. The updated dates have no fiscal impact since the not-to-exceed amount of $14,726,140 was approved by City Council on April 16, 2024.
Attachments
1. SCE - Letter Agreement