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STAFF REPORT o6 <br />ITEM NO. <br />DATE: APRIL 6, 2010 <br />TO: MAYOR AND CITY COUNCIL <br />FROM: ROD FOSTER, CITY MANAGER <br />PREPARED BY: JAMES EARHART, INTERIM DIRECTOR OF UTILITY SERVICES <br />SUBJECT: ADOPTION OF A RESOLUTION AUTHORIZING THE ENTRY iY THE <br />CITY MANAGER OR HIS DESIGNEE INTO TRANSACTIONS WITH <br />SHELL ENERGY NORTH AMERICA (US) L.P. <br />RECOMMENDED ACTION <br />It is recommended that the City Council adopt the proposed resolution to authorize the City Manager or <br />his designee to enter into various types of financial transactions with Shell Energy North America (US) <br />L.P. on behalf of the City. <br />BACKGROUND <br />On October 20, 2009, the City Council approved a Master Agreement with Shell Energy North America <br />(U.S. Municipal Counterparty Schedule to the 1992 Local Currency — Single Jurisdiction Master <br />Agreement) to give the City the ability, if necessary, to enter into various types of financial transactions <br />for natural gas and electric power for a certain term. Shell has requested further express documentation of <br />authority to enter into those various financial transactions on behalf of the City. <br />ISSUES/ANALYSIS <br />Colton Municipal Code Section 2.18.010 already provides certain purchasing authority to the City's <br />Director of Utility Services. Although this Section arguably already provides the Director with such <br />authority with respect to the Master Agreement, the attached Resolution will expressly provide the City <br />Manager or his designee with such authority. <br />FISCAL IMPACTS <br />The Resolution will not in and of itself create a fiscal impact, though the City Manager will use his <br />authority to enter into transactions within the City's budgetary authorizations. <br />ONTARIO\N ST UBB S\3 09681.3 <br />