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(1) Pursuant to Charter Section 373, the Board of Water and Power Commissioners shall have authority to enter into contracts for the purchase of local renewable energy from renewable electric generating facilities (as defined below) and related interconnection agreements, subject to all the following limitations:
(a) Contracts for the purchase of local renewable energy and associated capacity rights and environmental attributes and related interconnection agreements shall be for a period not to exceed 25 years from the date of execution.
(b) The size of the local renewable energy purchase program authorized herein shall not exceed 450 megawatts cumulative rated generation capacity.
(c) The purchase price set forth in every contract shall not exceed an average of $250.00 per megawatt-hour.
(d) A renewable electric generation facility subject to such contracts shall meet all the following criteria:
(i) be located within the electric service territory of the Department of Water and Power;
(ii) have an effective capacity of not more than ten megawatts;
(iii) be interconnected and operate in parallel with the electrical distribution grid of the Department of Water and Power;
(iv) be located and interconnected to the electrical distribution grid in a manner that optimizes the deliverability of electricity generated at the facility to load centers;
(v) comply with all applicable laws and building standards, and utility interconnection requirements;
(vi) all energy generated by such renewable electric generation facility and associated environmental attributes (including Renewable Energy Certificates (RECs)) shall be eligible to be credited against the renewables portfolio standard implemented by the Department of Water and Power pursuant to Section 399.30 of the California Public Utilities Code or any successor; and
(vii) the renewable electric generation facility shall demonstrate site control for the term of the contract.
(e) No renewable electric generation facility subject to such contract may also participate in any net metering program.
(f) No renewable electric generation facility subject to such contract may receive or have received Los Angeles Department of Water and Power ratepayer-funded on-site generation incentives. A renewable electric generation facility combined with an electric energy storage system shall not be prohibited from receiving incentives provided pursuant to a local agency, state, or federal program.
(g) All RECs and other credits, benefits, emissions reductions, offsets and allowances that are recognized under current or future laws, regulations or policies and associated with the electricity purchased and its displacement of conventional energy generation shall belong to the Department of Water and Power.
(h) Every contract shall contain the payment, interconnection, security, default, remedy and other terms and conditions, as authorized by the Board of Water and Power Commissioners.
(i) Prior to entering into contracts pursuant to this authority, the Board of Water and Power Commissioners by resolution shall establish the program under which the purchase of local renewable energy is made.
(j) Notwithstanding Section 10.5.2(d), contracts for the purchase of local renewable energy from facilities combined with an electric energy storage system may allow for the use of energy generated by such renewable electric generation facilities to serve customer load directly (i) during a grid outage when standard electric service from the Los Angeles Department of Water and Power is not available and (ii) to reduce customer energy consumption from the grid as determined by the Los Angeles Department of Water and Power. In no event shall any contracts for the purchase of local renewable energy permit a third- party sale of energy generated by such renewable electric generation facility, or any proxy for the sale of energy associated with the facility and energy storage system, to any person other than the Los Angeles Department of Water and Power.
(2) The Board of Water and Power Commissioners, under the authority of Charter Section 604(c), is authorized to delegate to the General Manager of the Department of Water and Power the authority to enter into contracts pursuant to this section.
SECTION HISTORY
Former Section Added by Ord. No. 170,725, Eff. 11-16-95.
Former Section Repealed by Ord. No. 173,236, Eff. 6-19-00, Oper. 7-1-00.
Added by Ord. No. 182,108, Eff. 5-17-12.
Amended by: Subsecs. (1)(b), (1)(c), and (1)(d)(ii), Ord. No. 186,467, Eff. 1-23-20; Subsec. (1)(f) amended and Subsec. (1)(j) added, Ord. No. 186,943, Eff. 4-29-21.
(1) Notwithstanding any other ordinance, rule or law of the City of Los Angeles to the contrary, the Board of Water and Power Commissioners shall have the authority to enter into contracts for natural gas and biogas (including landfill gas, digester gas and like gases) (together, “Gas”) and financial transactions for natural gas subject to all the following limitations:
(a) This section shall not apply to contracts for the purchase of natural gas for a period of one year or less. Contracts for the purchase of natural gas for a period of one year or less shall comply with the terms and conditions of Section 10.1.1(b) of the Los Angeles Administrative Code.
(b) This section applies only to the purchase of Gas for delivery and to financial transactions relating to natural gas to be used by the Department of Water and Power in its production of electricity to serve its retail customers.
(c) Contracts for the purchase of natural gas entered into pursuant to this section shall be for a period of greater than one year, but not to exceed five years from the date of execution. Contracts for the purchase of biogas entered into pursuant to this Section shall be for a period not to exceed ten years from the date of execution.
(d) Financial transactions entered into pursuant to this section shall be for a period not to exceed ten years in duration from the date of execution.
(e) Financial transactions allowed under this section are described as follows:
(i) Variable to Fixed Price Swaps: Fixing the price of natural gas at a specified delivery point.
(ii) Delivery Point Swaps: Fixing the price of transporting natural gas from one delivery point to another delivery point.
(iii) Price Ceilings: Establishing a maximum price of natural gas by purchasing, but not selling, a ceiling or call option.
(iv) Price Collars: Buying a ceiling or call option to establish a maximum price of natural gas, and simultaneously selling a put option to establish a floor price for the same quantity of natural gas.
(f) The total purchase price for financial transactions in each fiscal year, including broker’s fees, if any, shall not exceed fifteen million dollars.
(g) Prior to entering into any contract or financial transaction, the Board of Water and Power Commissioners by resolution shall do the following:
(i) Establish a risk management program to reduce volatility of the net amount payable for Gas used for the production of electricity to serve the Department of Water and Power’s retail customers and to establish risk management controls to protect the Department of Water and Power’s assets; and
(ii) Establish an Energy Services Executive Risk Policy Committee. The Committee shall, at a minimum, be composed of five key management personnel including the functional business equivalent of the Chief Operating Officer, Chief Financial Officer, Assistant General Manager-Power Services, Director of Planning and Projects, and Director of Power Supply Operations; and
(iii) Approve a budget that sets forth the expenditure for and volume of Gas each fiscal year for the production of electricity for the Department of Water and Power’s retail customers.
(h) Every contract and financial transaction shall contain the payment, security, default, remedy and other terms and conditions, as authorized by the Board of Water and Power Commissioners.
(i) The purchase price for natural gas set forth in every contract and the delivered price of natural gas set forth in a financial transaction shall not exceed $10 per million British Thermal Units including broker’s fees, if any. The purchase price for biogas set forth in every contract shall not exceed $18 per million British Thermal Units including broker's fees, if any.
(j) The aggregate volume of Gas for delivery and natural gas subject to financial transactions shall not exceed seventy five percent (75%) of the volume of Gas as set forth in the budget established pursuant to Subsection (1), paragraph (g)(iii) and subject to the following limitations:
(i) The aggregate volume of Gas purchased for delivery shall not exceed fifty percent (50%) of the volume of Gas as set forth in the budget established pursuant to Subsection (1), paragraph (g)(iii).
(ii) The aggregate volume of natural gas subject to financial transactions shall not exceed seventy five percent (75%) of the volume of Gas as set forth in the budget established pursuant to Subsection (1), paragraph (g)(iii).
(2) The Board of Water and Power Commissioners under the authority of Charter Section 604(c) is authorized to delegate to the General Manager of the Department of Water and Power the authority to enter into contracts and financial transactions pursuant to this section with the following limitations:
(i) No contract or financial transaction shall be entered into until the Energy Services Executive Risk Policy Committee has met, reviewed, and approved a written recommendation to the General Manager; and
(ii) The General Manager’s delegated authority to enter into financial contracts shall not exceed a total purchase price of fifteen million dollars in any fiscal year with an aggregate not to exceed seventy-five million dollars over any five year period.
(3) The Department of Water and Power shall retain an outside auditor or a comparable third party approved by the Board of Water and Power Commissioners to annually audit and prepare a report relating to the activities authorized under this section. The audit report shall provide, but is not limited to, an assessment of the adequacy of risk management controls and compliance with the provisions set forth in this section. Within five days after receipt of the audit, the audit shall be distributed by personal delivery or first class mail to the Board of Water and Power Commissioners, the City Council, and the Mayor.
SECTION HISTORY
Former Section Added by Ord. No. 172,129, Eff. 9-4-98.
Former Section Repealed by Ord. No. 173,236, Eff. 6-19-00, Oper. 7-1-00.
Added by Ord. No. 174,755, Eff. 9-30-02.
Amended by: Subsecs. (1)(d) and (1)(i), Ord. No. 177,405, Eff. 4-17-06; Title and Subsecs. (1), (1)(b), (1)(c), (1)(i) and (1)(j), Ord. No. 181,931, Eff. 12-11-11.
Notwithstanding any other ordinance, rule, or law of the City of Los Angeles to the contrary, the General Manager of the Department of General Services shall have the authority to negotiate and execute leases, subleases, and licenses with private and public entities (“Telecommunications Providers”) for the purpose of placing towers, antennae, repeaters, and/or similar telecommunications equipment (together with requisite ancillary utilities, structures, and equipment) on City property under the jurisdiction of the Department of General Services without separate approval of each agreement by the City Council where all of the following conditions are met:
(a) There shall be the payment of a fair market fee or rent, as reasonably determined by the Department of General Services, to the City for the use of City property;
(b) The term shall be for a period of five (5) years, with, at the discretion of the General Manager, up to three (3) options to extend the term for additional five (5) years for each option. Under no circumstance may the cumulative length of the term exceed twenty (20) years;
(c) The Telecommunications Provider shall be required to install and operate all equipment in compliance with all city, state, and federal regulations regarding safety, power, seismic, aesthetic, and environmental issues and shall obtain all permits and licenses required by law;
(d) Each lease, sublease, or license shall be approved by the Municipal Facilities Committee of the City of Los Angeles and shall be approved as to form and legality by the City Attorney;
(e) Each lease, sublease, or license shall be approved by the City Council member in whose District the applicable site is located, prior to its approval by the Municipal Facilities Committee of the City of Los Angeles.
SECTION HISTORY
Added by Ord. No. 175,602, Eff. 12-7-03.
Except as required by state or federal law, during any time in which the Mayor has declared the existence of a local emergency or at any time a disaster or local emergency has been declared by the President of the United States or the Governor of California that includes or encompasses the City of Los Angeles, the City Council may, by resolution adopted by a two-thirds vote and approved by the Mayor, temporarily during the emergency, suspend any or all of the sections within Division 10 of the Los Angeles Administrative Code, beginning with Section 10.7, for contracts:
(a) That contain terms mandated by federal or state law or to which other governmental entities are parties;
(b) That provide for the continuation of City services; or
(c) That safeguard life, health, safety or property.
SECTION HISTORY
Added by Ord. No. 186,636, Eff. 5-29-20.
The provisions of that certain Act of the Legislature of the State of California entitled, “An act to provide for the payment of not less than the general prevailing rate of wages on public works, and not less than the general prevailing rate of wages for legal holiday and overtime work or public works, provided for the ascertainment of such general prevailing rate by the public body awarding the contract and its insertion in the contract and call for bids for the contract, providing for the keeping of records of the wages paid all workers engaged in public work and the inspection of such records by the proper public officials, providing for a forfeiture for each calendar day, or portion thereof, any worker is paid less than the said rate and for a stipulation to this effect in the contract, and providing other penalties for violation of the provisions thereof” (approved May 25, 1931, Statutes, 1931, Chapter 397), as amended or as hereafter shall be amended, are hereby accepted and made applicable to the City of Los Angeles, its departments, boards, officers, agents and employees notwithstanding the exemption of said City therefrom created by Section 5 of Article XI of the Constitution of the State of California with respect to municipal affairs.
SECTION HISTORY
Based on Charter Sec. 425.
Amended by: Ord. No. 154,252, Eff. 9-11-80; First unnumbered para. repealed, Ord. No. 158,965, Eff. 6-30-84.
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