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    5.    
TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE
Meeting Date: 12/14/2020  
Subject:    REVIEW Letter of Understanding with PG&E.
Submitted For: TRANSPORTATION, WATER & INFRASTRUCTURE COMMITTEE
Department: Conservation & Development  
Referral No.: 14  
Referral Name: Monitor implementation of Letter of Understanding with PG&E for maintenance of PG&E streetlights in Contra Costa County.
Presenter: Rochelle Johnson, PWD Contact: Rochelle Johnson, PWD (925)313-2299

Information
Referral History:
The Transportation, Water and Infrastructure Committee (TWIC) accepted the 2020 status report regarding the coordination between Cities (Countywide) and PG&E on October 12, 2020.
Referral Update:
The TWI Comittee requested that Public Works management report annually on the status of street light maintenance coordination efforts with PG&E. Management last reported to the TWIC on October 12, 2020, regarding this item.

Background:
The Letter of Understanding (LOU) dated February 2008, between PG&E and the County, states the commitment of PG&E for open communication, responsive service levels, and actions in resolving issues related to street light performance. In 2018, Management reviewed the LOU in an effort to verify improved service levels and to ensure that the LOU addressed the needs of the Cities and Contra Costa County.

As a result of the feedback from the meeting convened on October 2, 2017, PG&E and Contra Costa Public Works staff began updating the LOU to reflect the needs of the Cities and County, addressing the type of support needed from PG&E Public Works staff drafted a document and made it available to the cities for feedback. Once City feedback had been incorporated, management provided the 2018 Draft LOU to PG&E management for review.

On August 20, 2018, Public Works staff met with PG&E to review the draft LOU at PG&E’s request, to discuss the LOU, and to address standards of service identified in the revised LOU. At the end of that meeting, an agreement had been reached. However, there were two (2) items that PG&E management wanted to confirm could be accommodated by PG&E.

These items included:

• The provision of service credits for customers who are without service for a period of greater than 14 days; and
• The provision of monthly reports by PG&E detailing power outages and knocked down street light poles.

During the September 2018 report to TWIC, Public Works staff made TWIC aware of the LOU status. Direction was provided from TWIC to place the revised LOU on the consent calendar once confirmation was received from PG&E regarding the above noted items.

On May 23, 2019, Public Works staff were provided with a redlined version of the revised draft LOU by PG&E. Public Works staff had been advised by PG&E that in light of recent catastrophic events, PG&E management and legal had revisited the document and changed items that had been previously agreed to.

On September 17, 2019, Public Works staff met and determined that the items of contention in the redlined draft of the LOU included:

1. The LOU should designate a number of service days that a customer should expect a response [Section 1];
2. Billing discrepancies should be resolved within two billing cycles [Section 5]; and
3. Agencies should be provided with a GIS map annually. [Section 6]
*Sections refers to placement in the LOU.

Public Works staff reached out to PG&E management to schedule a meeting to discuss and resolve the outstanding issues. However, the meeting was cancelled by PG&E at the last minute and there has not been a response since.

Following the 2019 report, TWIC advised Public Works staff to work with TWIC to draft a letter, as there had not been a response from PG&E. As previous correspondence had not been responded to, letter was sent to William D. Johnson, CEO and President of PG&E on March 11, 2020. Courtesy copies of the letter were sent to the Compliance and Public Policy Committee, East Bay Government Relations, and all associated cities.

To date, there has not been written response from PG&E. However, on July 20, 2020, during a Street Light Coordination meeting, Vic Baker, Senior Manager—Diablo Division, acknowledged that communication had been delayed and would be forthcoming.

On November 4, 2020, TWIC met with Public Works staff and PG&E represented by Tom Guarino, East Bay Public Affairs Team. At that meeting the three items listed above were reviewed with an additional request for PG&E to provide notification to reporting agency when repairs are complete.

Mr. Guarino made preliminary commitments, but stated that he needed to speak to PG&E front line staff to determine the feasibility. On, November 17, 2020, Public Works staff spoke with Vic Baker by phone. He noted that while he will be the signer on the LOU, Tom will be finalizing negotiations. In addition, Mr. Baker conveyed that PG&E attorneys identify the LOU as an agreement. As no other county in the state has such an agreement, it is the position of PG&E’s counsel that the LOU should be terminated. Public Works staff reminded Mr. Baker that the LOU has been in place since 2008 and that it has been a benefit to the cities and county. Mr. Baker offered that PG&E should be able to accommodate items 1 and 2; however, item 3 is dependent upon PG&E records being reviewed and updated annually. At this time, PG&E does not have an annual schedule in place for inventory management.

On, December 1, 2020, Mr. Baker confirmed by phone that the LOU was currently under review and he committed to finalizing the document.

The Cities have been discouraged by the delay and inquired if there is a consequence for PG&E’s inaction. The lack of response from PG&E has impeded updated the LOU. The service needs of the Cities and County are different now than they were in 2008. Not only is it imperative to update the LOU to reflect current and projected service needs, but it is equally necessary that PG&E continues to adhere to the language of the LOU.

At this time, Public Works staff is seeking further direction from the TWIC on next steps to move the LOU process forward.
Recommendation(s)/Next Step(s):
RECEIVE this additional status report on the street light service coordination effort between PG&E and the County Public Works Department and Cities for street light maintenance, and DIRECT staff as appropriate.
Fiscal Impact (if any):
None. All costs for street lights are funded by County Service Area L-100 and Community Facility District 2010-1.
Attachments
2021 PGE LOU Revision

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