Los Angeles

City Council

March 24, 2023 Item #3

Agenda Item 3

(3) 13-0080 ENERGY AND ENVIRONMENT COMMITTEE REPORT relative to an Amendment to an Agreement between the Los Angeles Department of Water and Power (LADWP) and Switch Communications Group, L.L.C. for an Out-of-State Disaster Recovery Data Center. Recommendation for Council action: CONCUR with the Board of Water and Power Commissioners (Board) action on February 14, 2023, approving Board Resolution 023-129, which approves the Amendment No. 3 to Agreement No. 197 between the LADWP and Switch Communications Group, L.L.C. for an Out-of-State Disaster Recovery Data Center, to increase the current not-to-exceed amount by $4,000,000 from $17,750,000 to $21,750,000; change the Agreement Number from Agreement No. 197 to Agreement No. 47733 for administrative purposes; and, to add an option to extend the Agreement for another five-year period from June 9, 2024 to June 8, 2029, and increase the not-to-exceed Agreement amount by $24,000,000 for the extension option. Fiscal Impact Statement: The City Administrative Officer (CAO) reports that approval of the proposed Resolution and contract amendment impacts the Power Revenue Fund by $4 million, and $24 million respectively should the five-year option be exercised. Financial Policies Statement: The CAO reports that the action complies with the LADWP’s Financial Policies, in that funding is available to support the purpose.