REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Antonia Graham, Assistant to the City Manager
Subject:
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Approve and authorize the execution of Amendment No. 2 to the Attachment Agreement by and between the City and Southern California Gas Company for Advanced Meter Facilities on City Owned Streetlights
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Statement of Issue:
On December 21, 2015, the City Council authorized the Southern California Gas Company (SCG) to enable SCG to attach their Data Collection Units (DCUs) to City owned streetlights. Subsequently, on June 5, 2017 the City Council approved Amendment No. 1 to the aforementioned agreement which enabled SCG to attach 18 more units on streetlights, as the City, by then, had acquired 10,000 streetlights from Southern California Edison. This second Amendment will enable SCG to install an additional 3 DCUs.
Financial Impact:
The Gas Company will pay to the City a one-time fee of $780 per pole ($2,340). The payment is based on a lease charge of $39 per pole for 20 years and will be deposited into the General Fund.
Recommended Action:
recommendation
Approve and authorize the City Manager to execute “Amendment No. 2 to Attachment Agreement By and Between the City of Huntington Beach, California and Southern California Gas Company.”
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Alternative Action(s):
Do not approve the Amendment and direct staff accordingly.
Analysis:
Since 2012, SCG has been rolling out their Advanced Metering Project (AMP) following the California Public Utilities Commission decision in 2010 to make gas utilities upgrade their existing supply of over six million natural gas meters by 2017. Advanced meters automatically read and securely transmit gas usage information to data collection units (DCUs).
On December 21, 2015, the City Council approved an attachment agreement with SCG to allow SCG to attach three (3) DCUs on City owned streetlights. At that time, the City had not acquired any streetlights from Southern California Edison (SCE). Subsequently, Council approved an amendment to the agreement on June 5, 2017, for an additional eighteen (18) units on streetlights, and by that time the City had nearly completed its acquisition with SCE. The price and terms remain the same as the previous amendment and original agreement, with the lease payment of $780 per pole for 20 years.
Environmental Status:
The lease agreement and the amendment are categorically exempt under the California Environmental Quality Act under Class 1, Existing Facilities. The attachment of equipment to an existing City facility involved negligible or no expansion of use beyond that previously existing.
Strategic Plan Goal:
Enhance and maintain infrastructure
Attachment(s):
1. Amendment No. 2 to Attachment Agreement By and Between the City of Huntington Beach, California and Southern California Gas Company.