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HomeMy WebLinkAboutResolution - 507 - Grant Application - PURA - Compliance Assistance, LP&L - 05/22/1980r ' DWR: c RESOLUTION #507 5/22r80 �C RESOLUTION 14 �BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an application for financial assistance under the PURPA (Public Utility Regulatory Policies Act, Pub. L. 95-617, 92 Stat. 3117 et seq.) Grant Program in order to carry out duties and responsibilities under that act, attached herewith which shall be spread upon the minutes of the Council and as spread upon the minutes of this Council shall constitute and be a part of this Resolution as if fully copied herein in detail. Passed by the City Council this 22nd day of May , 1980. T1TL McAL STER, MAYOR- -ATTEST: AYOR-ATTEST: �'EvelyrrGaffga, try=Se e ry reasurer APPROVED:..AS TO CONTENT: Carroll McDonald, ',Director Electric Sales & Service APPROVED AS TO FORM: Dav Reagan, Assistint kilty Attorney 1 FISCAL NOTE , 1. 'State as clearly as possible the goals and objectives of the proposed project. LP&L must comply with the Public Utility Regulatory Policies Act of 1978. This request is for financial assistance to aid in com— pliance, in the form of a joint application with the cities of Garland and Austin for funds•from the PURPA Grant Program. The PURPA Act says LP&L and other covered nonregulated utilities along with State utility commissions must consider twelve rate and service standards by holding public hearings to consider the standards. This grant money would go toward a cost service study by classes of consumerst which is necessary to comply with the act. 2. State indicators of goals and objectives expected to be achieved from the proposed project. The cost of service standard of..PURPA states that rates to each class of consumers shall be designed to the maximum extent possible to reflect the costs of providing service to that class. It is necessary to reflect costs of serving different consumption patterns within each classy daily kilowatt demand curves for all classese and annual capital, operating and maintenance costs for transmission, distri— bution and generation facilities by classes. 3, ghat specific accomplishments can be expected from thq proposed project? • A cost of service study. 4. V.hat groups.wifl be affected by the proposed project? All electric ratepayers could benefit -from the study in the design of fair and equitable electric rates. �. / S. Are there other organizations in the city that provide the services stated - in project? No. 6. What other alternative sources for providing the service were considered but not chosen? Staff preparation of the study was considered but -it --was decided that the cost of service study was only one part of the PURPA Act which•wiLL require a great deal of extra workload for the staff. It is not felt that staff can adequately -perform the study becasue of a Lack of adequate time and a Lack of background. 7_ What projects or programs would be postponed or eliminated in order to implement the proposed project within existing revenue sources? None. 8. Other comments. 1 EXPENDITURES AND REVENUE PROJECTION 1980-81 19 19• 19. 19 Expenditures Personnel Supplies iiaintenance . Other Charges (Professional Services) 25.000 Capital TOTAL 25:000 Sources of Funds Federal State' Local Other TOTAL 1980-81 25.000 25;000 .1980-81 Revenues Anticipated From Project Operation 0 19 19 19 . 19_ 19 PUBLIC UTILITIES REGULATORY POLICIES ACT (PURPA) GRANT PROGRAM APPLICATION'FOR FUNDS To the Office of Utility Systems RG -721 Economic Regulatory Administration Department of Energy 2000 M Street, N.W. Room 4306 Washington, D.C. 20461 Submitted By; City of Lubbock, Municipal Utility System- 916 ystem916 Texas Ave.-., P.O. Box 2000 Lubbock,,Texas 79457 PART I: GENERAL INFORMATION 5 PART I GENERAL INFORMATION Ore Aaw...•t tw Is -+.axis STANDAJW FORa 4U F*AL I dD0 7S) n 14: URPA FEDERAL ASSISTANCE L APPu IL"�"&Ex L `TATs • eMNA Gtrrs APPLI TOO"t IDaT1. N/A 1. TYPE ❑ PKA"MATTOR t GATE a>. a S Stn raw me -as {-w ACTION ® trn.rc� rw CATION ser ...(A le Ata Astlala 0 1! IN—' all ❑ WnFICATIOR Of IIETDET (DKJ Ls« L LEGAL A"L)CANT/RECIPIENT L rEDEJtAL Li/►LOTEA TDENTIFTCATIDN NO a Awar•I trK. City. of Lubbock. 75-6000590-W � — t atr..rs6-.ustl Municipal Electric System ' GIs.Itn.o. x..916. Texas Ave., P.O. Box 2000 F+to • SOMMERr 18 11. 10!,5 14 t TTTu Title I Sectio �-cft Lubbock. a.•+� Lubbock ;� : now 79457 Fees..( P. L. 95-617 P To~ .r� N.�.Carroll McD{�nalds ``''''°' Grants >* a •a ep&~ Na I i TITLE AND DESCRIPTION Or AP►UC7S PROJECT. L TYPE Or APPLICANT/RECIPENT .7. A-tteb le�-wr",ty Oar Aweloo L-1.tersbta I-= tr U+rater] 1••UOnr G-i-YIS•4 } I�ee TAM A-oo,. csA..e;Pwl o -Dame E-ot, PURPA Grants = Penises L.Aw ays-.s►.-t. ]roue. M. TYPE or AJISISTANCE 1 A-isc Grow) 0-1srr+•o G-t-t•�-��nt Gast L-Oo.r L.�.. sss•► AREA Or PROJECT IMPACT '(Na..a. •! lelg A •rat.... 11. ESTIMATED NUM IL TYPE or APPUGATION SAaAM ate.) MILE Or PERSONS 110, Lubbock, Texas SEMEFIT'NG 185,200 s-�--• o �aWh. 11. PROPOSED FUNDING Ia. CONGRESSIONAL DISTRICTS OF LL TYPE or CHANGE (Jr Pte s. Ja.I A-Isv� Wien F-0— (SP.1r): M.(yara. "im • fTDERA; i eC s• KAKI ► FGOJECT AP nioLxT 00 1 t h.1 t C-0-0. D.Mu.. E-TaaarusAar L STATE 1L ►kOJECT START 17. PROJECT O TE lar .Iw.s►.4• DURAT)DN LraPw ary► (�T�� a LOCA.,.00 I 2 YwIA.Iaei-.Is! •. M10 .00 LL ESTIMATED DATE TO Tar Nw�J, 4w 11. EXISTING FEDERAL IDEKTIFICATIDN NUMBER B I. 7v(al 1 .eo DSUBMITTED CY p► 1s 80 5 22 NA m FEDERAL AGENCY TO RECEIVE REQUESTI (Nsaer, Ceew. J(AaA.. LJl •.ia) 21. REAtAAKS ADDED Department of Energy. ashin ton D.C. 20461 O Y" O 11*9 T2 a Ts be Int wt P aa...adt• a" bold. I ►. M twe'r.l by OMt C+nvlat HS en aWvlr•s ens swimmmed. t.n.sr. It .a Na .r L�•w+•••• Ya 0 tee wnsw•)rtalN-/s w►r.31r� M Odructr.rll tMr.K, r awvrwule dear.sssrs a" all ra"Indler an wmb:hm speq/w a•••--� THE true sad O.>'erR. as dewls�I bow APPLICANT a.y •rar n"g b so es.rstsj I K 1 ❑ ❑ �a•I, ' E1) CERTIFIES Yr+ •tpir•' aKc 04 wtwirear: YIP THAT s.» ao.rta.r x at Aram -cc ❑ ❑ ► r .wts .o. N/A u) ❑ ❑ —) ZL .. TYPED RASE ARD TITRE L a OAR sighm CERTIFYING Bill McAlister . REME•Ma O r ' . 1G 80 5 22 SENTATIVE I " AGENCY K"t ZLON P•SJCJt Tar Uwe" daw RECHVEO 1! :L OROANLIATIONAt UNIT 17. AD"INISTRAT)VE OFFICE . XL FEDERAL A"UCATION IDEKTIFIGTION IDEwnFcATiiom 21. ACTION TAKEN FLNDIItO Pas., sswN dlrr IFS Tar seps" A w O a. ABED a. FEDERAL t AO JLL ACTION DATE 10 -le DATE is 1STARTING O DEJECTED t. AMICAKT AD SL CONTACT FOR ADDITIONAL 1INFORMA TION (N.v ..L I- pL~ r+..i+.l SL Tr fwtt .(.w a STATE AD 1 0. GETMCU FOG �NG O` 11 9 LDGL ! m 37. REf1Alms ADO= ( A11tJCrE1R a 13TT(Et JJO ■■ O L KPLnU 1. MAL t Jj0 O A WTTHOLOSIR O rr QP+D 9L a is wjV4 Ns.m embees.r4 a+� Mea Mrl.Iiwr wn s•s mAa.r ► FEDERX AGDICY 446 DFFICW. "'.dRI K rr.pnr ae.. asnsn pwtY Purt I. t C+Adr A♦i. (Na... ead gdLv &~ go.) FEDERAL AGENCY R W bow k Mist me" A -G 1 ACTION N/A N/A STANDAJW FORa 4U F*AL I dD0 7S) n 14: URPA PART Ik PROGRAM APPROVAL INFORMATION 9 PART 11 PROJECT APPROVAL IXFORb(AT10K 'Iter. 1. pees This ass;stenCe reauet. reviAm Stafe, kcal, Fleroe of Covemi l; 9e4r seg.orsa:, or ati+ee prsvA7 ratinoe Ptsw;ry Rofmc X No ttv* 2. Dees This aserstance repvetr regv;n #tsfe. v local Phar of_Arostcy w odviwq. sdreatrona' or hocK cleoroncos? board YON X Fie (Attach Docve.enrat;*n) hew 1. Does this *%.;stance reaves, rtrwore eloorsnq%ovse (Anoch Coarermirtts) se. ie. in ec:"• nce with OMF Circular A.95? Yes X uo h err � Dors this ess:stonce reaves! ►ogv.re State, decal. Nava of Approving Agency ves.w.c' of otter planning spprov;P Dore herr. S. Is the p•opose: p►etect severed 67 on epprvved campre- ienNve Plan? Yes X/lo C60 ....•.e es,. 60—ROISS Q.ecl'ane State 0 Loral 0 - R sq conal 0 Location of Plan herr 6. Will " asarsfarsCe foavesfed sure * Federal N/A Nam* of Foderol inst6lla►;sm iastaliatsan? Yes Flo fodeta! Popvlat:on donefitsng from Project 7or� 7. Will The ossistanca requested Se on Federal land of F(aese of Foderal Iastaliatse" ins►o(latser? N/A L.ocalmn of Federal Lend -Yes-No Poeeent 61 Peeise+ Will the *st;stur.ce rogvested hor►t ee istrpQM K *fleCT See 3nstrvtt;ont (or oddss.one: infonrralra+ go V 46n the sr,vsossrosat? X Profislod. 'Yrs Fie ate+. 9. ftt►.b.. sf: Will The assistance tagvssted corse i.e displaco mem indr.ielvalr of itsd;vidoelt, fse.:;res, lvss..esaes, or forces? Fsn;liss �� /A bs+unasses Yss` -No facers .ftp" 10. Is r.o v other relesed ais;starnce or iris Pa46et Previews, S" insiryCtient (or swousinal infor.etion to ie pndo%. v anticipated? Pr0vije,d Two X No eo"�''#Two 11 S" instrwc6orks for ouit;onaf infare"dien h fs tic project in a del'ignatod {load hared aria? iw Prrr;ded. Yps X yio PART 111: BUDGET INFORMATION • . 11 PART III BUDGET INFORMATION 1 I I 9 e ILLM APplicant0 i ty of Lubbock Date May 22, 1980 _111S No \.nrt *DOE funds refer to the funds authorized under .section 208(1) of the Energy Conservation'and Production Act. Non -DOR funds refer to all other funds including other authorized DOE funds. ^• **This should include any subgrants, transfer, contracts, cooperative or interagency agreements, and the services as products of experts and consultants to perform essential services subject to the conditions of the regulations. M ' = ' I K : ' W � V � i j O 1 00.0 d ¢_ O; c f M I " L x 1 t►�- a ILC ppi. *DOE funds refer to the funds authorized under .section 208(1) of the Energy Conservation'and Production Act. Non -DOR funds refer to all other funds including other authorized DOE funds. ^• **This should include any subgrants, transfer, contracts, cooperative or interagency agreements, and the services as products of experts and consultants to perform essential services subject to the conditions of the regulations. PART IV: PROGRAM NARRATIVE COST OF SERVICE STUDY FOR CITY OF LUBBOCK ELECTRIC SYSTEM PART IV -A: Certification of Eligibility The City of Lubbock municipal electric system meets the criteria for eligibility for receiving Federal assistance from the PURPA Grant Program, as prescribed by Section 461.12 of the PURPA regulations." Itis a covered nonregulated electric utility system. Part IV -B: Scope of,Work I. Objective To further its stated goals of energy conservation and provision of equitable rates to consumers, PURPA requires each nonregulated electric utility to consider a number of rate and service standards in a series of public hearings. One of these standards is the "cost of service" standard. It requires each utility to gather detailed information concerning costs of providing electric service to various customer classes, with information separated according to customer cost, demand cost, and evergy cost components. The PURPA cost of service requirement is having a major impact on municipally owned utilities which do not currently have this level of data gathering and analysis capability. The City of Lubbock plans to hold it's PURPA hearings in early Fall 1980. At the time we hold our hearings, we plan to state that a study will be made available to consumers as soon as possible. Being a small electric system, we will require the assistance of a consulting firm to perform this study. The proposed project would provide the funding for the hiring of':this consultant. The consultant will be hired after advertising the needs and taking proposals from various qualified firms. 2: Duties and Responsibilities Under PURPA to be Carried Out With DOE Funding DOE funding will enable the City of Lubbock electric system to fulfill the requirement of the cost of service standard, as provided in PURPA, Title I, Subtitle B, Section 111, and 115. 3• Activities to be Performed. The City of Lubbock electric system plans the following activities: A. Define the needs and issues to be addressed by the consulting firm to be hired, and design a contract to be awarded by City Council Action. B. Advertise to known consulting firms, allowing for comparison of fees charged for completion of the study according to specifications set forth. C. The Electric Utility Board (an advisory'board of citizens appointed by and answerable to the City Council)will evaluate the proposals received, and recommend to the City Council the firm which.most meets the criteria set out in the specifications. D. The City Council will review and evaluate the recommendation of the Electric Utility Board, and act in their official capacity as the governing body to enter into contract with the firm chosen to complete the project. E. Provide staff assistance for the gathering of information needed for the completion of the study. F. Consultant firm to complete the study. G. After completion, the Electric Utility Board will evaluate the findings and make recommendations to the City Council as to ways this informa- tion can be used in the rate,determination process. H. Council determines action necessary concerning cost of service study information and makes it available to consumers. 4. Timetable First Quarter, FY 81 Define needs and issues with regard to the cost of service standards. Select consultant firm from proposals received. Begin the gathering of information needed. �.., Second Quarter, FY 81 Continue information flow to consultant. Preparation of data by consultant. Third Quarter, FY 81 /'� Evaluation of study by staff. Evaluation of study by Electric Utility Board. Recommendation of Electric Utility Board to Council. Council takes action and makes study available to consumers. 5. Organization Structure The City Council of Lubbock will act as prime authority on behalf of all ratepayers. They will have sole authority to enter into a contract with a consulting firm which is to be chosen during the process explained in item 3 of this application, and are also the final ratemaking authority for Lubbock. The Electric Utility Board will coordinate the project between the consulting firm, the staff, and the City Council. The consulting firm selected will answer to the Electric Utility Board, with assistance from the staff. The staff will provide any necessary information and assistance to the consulting firm. 6. Staffing Carroll McDonald,.Director of Electric Sales and Service Primary staff person,in,charge of all distribution, sales, collection, and customer service departments for the City of Lubbock electric system. Has 28 years experience in the utility business with both private and public systems. Walter Armstrong, Assistant to Director Assists in management of electric system. Is in charge of all report- ing to DOE. Has both distribution and management experience. Barney Quillin, Operations Supervisor In charge of Service Department, Meter Shop, and Substation Department. Has 15 years experience in the Engineering Department. Barney attended a seminar by American Public Power Association concerning cost of service. ra a Leona Maxwell, Utility Office Manager 21 years billing, collection, and customer service experience. Robert Massengale, Director of Finance David Reagan, Assistant City Attorney Tommy Buchanan, Registered Professional Engineer 8 years experience with Department of Agriculture REA divisiont. Also has 1 1/2 years experience in Department of Energy in the Economic Regulatory Administration. 7. Proposed Budget 1. Cost of service study (hiring of $30,000 consulting firm) Staff time donated for gathering 4,638 of information and review of study Total funds requested from DOE Non -DOE funds contributed 34,638 30,000 4,638 34,638 PART V: ASSURANCES 15 PART V ASSURANCES no applicant hereby assures and Certifies that he will Comply with the regulations, policies, guidelines and re— quirements, including OMB Circulars No. A-95, A-102 and FMC 7", as they elate to the application, accept— coca and use of Federal funds for this federally—assistod project. Also the Applicant assures and certifies to the grant that: 1. It possrssis legal authority to apply for the grant; that a resolution. motion or similar action lois been duly adopted or passed as an official act of the applicants "ming body, authorizing the filing of the application, including all t,tnderstandkV and assurarces contained herein, and directing and authorizing the person identi- fied as the official represernitive of the applicant to act in Connection with the application and to provide such additional information as may be required 2. It will comply with Title VI of the Civil Rights act of 1964 (P.L. 82x352) and in accordance wittr Titk VI of that Act, no person in the United Statex Nall, tin the ground of race.; color, or national origin, be excluded *urn participation in, be denied the benefits of, or be othervrise subjected to discrimination under any pn} gam Or activity for which the applicant receives Federal firtia.-itis' assistance and will imn-wdiately tBkt any mea- sures necewry to effectustethis sgrwrwnL 3 It will Comply with Title Vi of the Civil Rights Act of 1564 '(42 USC MOM prohibiting employment discrimi- nation where (t l the primary purpose of a grant is to provide *employment or (2) discriminatory employment Practices uric result in unepua.' treatment of pe.ruxu who ni aor should be benefiting from the grant -aided activity. 4. it will Comply with requirements of the provisions, Of the Uniform RelocstiorL Assirance and Real Property Acquisitions Act of 1D70 (P.L. 91-646) which provides for fair and equitable treatment of perUns displaced u a rtsult of Federal and federally assisted programs, S. It will Comply with the provisions Of the Batch Act which limit the political activity of employees. L it will comply with the minimum wage and maximum hours provisions of he Federal Fair Labor Standards Act. as they apply to hospital and educational irtstitu- tion employees of State and local governments. 7. It will establish safeguards to prohibit employees from using their positions for a purpose that is or gittes the appearance of being motivated.by a desire for private pain for themselves or others, particulirly those with "from they hove family, business, or other ties B h will give the sponsoring agency or tate Cerapttoller Generei_through any authorized representative the access to and the right to examine all records, books, papers, or documents related to the grant. S. It will comply with all rtquirements imposed by the Federal sponsoring agency concerning special requirements of law, program requirements, and other administrative requirements. lost Will bl=re that the facilities under its ownership, lease or supervision which shall be *Utilized in the a.ecomplishaent of the project are not listed on the Environmental Protect4on Agency's (EPA) list of Violating Facilities and that it will notify the Fedexal grantor agency of the receipt of any communication from tm Director of the EPR Office of Federal Activities indicating that a facility to r*re used in the project is under consideration for listing by the EPA. 11.7It will comply with the flood insurance purchase regiire=ents o: Section 102(a) of the Flood Disaster Protection Act of 1973, Public Law 93-2341 87 Stat. 9758 approved December 31, 1976. Section 102(a) rewires, on and after March 2, 1975, the purchase of flood. insurance iii communities where such insurance is available as a condition for the receipt of any -Federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Eousing and Urban Development as an area having special flood hazards. 16 PART V (Continued) The phrase.*Federal financial assistance" includes any fc= of loan, grant, guaranty -T insurance payment, rebate, subsidy, disaster assistance loan or grant, or any other fo= of direct or indirect rederal assistance. 12. It will assist the Federal grantor agency in its compliance with Section 106 of the National Historic Preservation Act Of 1966 as amended (16 V-S:C. 670), Executive Order 11593, and the Archeological and Historic Preservation Act of 1966 (16 U.S.C. 469a-1 et seq.) by (a) consulting with the State Historic Preservation Of.icer on the conduct of investigations, as necessary, to identify properties listed in or aligible•for inclusion in the National Register of Historic Places that are subject to adverse effects(see 36 *CFR Part 800.8) by the activity, and notifying the Federal grantor agency of the existence of any such properties, and by (b) complying with all requirements established by the Federal grantor agency to avoid or mitigate adverse effects upon such properties.