FOR: City Council Meeting March 11, 2025
TO: Honorable Mayor and City Council
APPROVAL: Tanya Williams, City Manager
FROM: Tim Sullivan, Assistant City Manager
Title
Request City Council to: 1) Approve an Agreement authorizing Southern California Gas Company to maintain two Advanced Meter systems on City Streetlights and to undertake all activities related to the installation, maintenance, operation, use, repair, replacement, improvement, alteration, inspection, testing and removal of the Advanced Meter systems, and 2) Authorize the City Manager to Execute all Related Documents.
Body
RECOMMENDATION
Staff recommends that City Council:
1. Approve an Agreement with Southern California Gas Company authorizing the Gas Company to maintain two Advanced Meter systems in the identified locations.
2. Authorize the City Manager to Execute all Related Documents.
BACKGROUND
In April 2010, the California Public Utilities Commission (CPUC) authorized $1.05 billion to upgrade approximately 6 million natural gas meters. These meters were upgraded with communication devices that automatically read and securely transmit hourly gas usage data on a “next day” basis to a Data Collector Unit (DCU). The technology provides detailed, real-time data to better help customers manage their energy consumption and costs.
On July 26, 2016, the City Council approved the Purchase and Sale Agreement and No-Fee Light Pole License Agreement with Southern California Edison (SCE). This agreement enabled the City to purchase 3,729 streetlights from SCE and convert them from high-pressure sodium vapor to light-emitting diode (LED) technology.
On February 20, 2014, during SCE’s ownership, Advanced Meter systems were installed on two streetlights within the City of Rialto. The original agreement between SCE and Southern California Gas Company (So Cal Gas) ended with the purchase of the streetlights by the City; the Gas Company’s equipment remains attached to the streetlights that were formerly owned by SCE. Now that the City has acquired these streetlights, an Agreement between the City of Rialto and So Cal Gas is required to formalize the ongoing use of the Advanced Meter systems.
ANALYSIS/DISCUSSION
Currently, So Cal Gas operates 29 DCUs within the City of Rialto. Of these, 27 DCUs are attached to So Cal Gas-owned poles and 2 DCUs are attached to City-owned. These locations are identified in Attachment 1.
Under the proposed agreement, attached hereto as Attachment 2, So Cal Gas will pay the City:
1. A one-time fee of $780 per installation site, calculated at $39 per year for a 20-year period. The fee will be due within thirty (30) days of the Agreement’s effective date.
2. A one-time fee of $233.60 per installation site as compensation for electricity usage by So Cal Gas’s Advanced Meter systems. The fee shall be due within thirty (30) days of the Agreement’s effective date.
The rechargeable battery in the DCUs uses 5 watts per hour, which equals approximately 45 kW annually. With SCE’s power rates varying from 17 to 25 cents, So Cal Gas has agreed to pay the highest possible rate of 25 cents per kWh, totaling $11.68 per year for each location. Over a 20-year period, this equals $233.60 per location. This compensation is consistent with the standard fees So Cal Gas pays to other jurisdictions.
So Cal Gas currently operates 1,562 DCUs throughout its service territory using AC power and has not encountered any concerns from other utilities or municipalities. So Cal Gas’s Network Operations team closely monitors the performance of all DCUs and creates a “ticket” to deploy Technical Advisors to troubleshoot and resolve any issues.
ENVIRONMENTAL IMPACT
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
The project is consistent with the General Plan guiding principles:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney’s Office has reviewed the agreement and approved it as to form.
FINANCIAL IMPACT
Operating Budget Impact
The proposed action will not affect the Operating Budget.
Capital Improvement Budget Impact
The proposed action will not affect the Capital Improvement Budget.
Licensing
The So Cal Gas Company obtained the necessary permits prior to installing the Advanced Meter systems. Reference Encroachment Permit No. 179, dated November 19, 2013.