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CITY OF COLTON <br />AGENDA REPORT <br />For Council Meeting of April 6, 1993 <br />TO: Honorable Mayor, City Council, and CityMan ger <br />FROM: Gale A. Draws, Electric Utility Director <br />SUBJECT: APPROVAL OF COST SHARING AGREEMENT NO. 2 AMONG THE DATE: 3/30/93 <br />CALIFORNIA UTILITIES TO EVALUATE THE PURCHASE OF <br />SAN JUAN UNIT NO. 3 <br />BACKGROUND <br />On May 26, 1992, the City executed the Cost Sharing Agreement to evaluate the <br />Purchase of San Juan 3. This agreement was among the Cities of Anaheim, Azusa, <br />Banning, Colton, Glendale, Pasadena, Riverside, Vernon, and the Imperial <br />Irrigation District. Since that time, the Cities of Anaheim, Pasadena, <br />Riverside, and Vernon have withdrawn from the project. The City of Colton has <br />also reduced its share of the project from a collective 120MW with the Cities of <br />Azusa and Banning to a present allocation of 30MW for the City. <br />STATEMENT OF PROBLEM <br />Due to the withdrawal of the other cities involved in the original agreement, the <br />remaining Utilities must have an agreement to provide for payment of expenses up <br />to the time of financing of the project by Southern California Public Power <br />Authority (SCPPA). The expenses that are being charged prior to financing will <br />be reimbursed at the time of the bond sale. The withdrawing Cities will not be <br />reimbursed for the initial cost of work that has been performed. <br />None. <br />FINANCIAL IMPACT <br />The City is responsible for 14.78 of the costs for consulting engineers and <br />attorney fees for a total of approximately $39,000.00. <br />RECOMMENDATION: <br />Staff recommends that Coun p ove the amended Cost Sharing Agreement and <br />designate the City keto n all necessary documents. <br />Concurrence: <br />arkLewanager <br />The Agreement is on file in the City Clerk's office for your review. <br />Page 1 of 1 Item No. / eZ <br />