2002 AGN MAY 21 I26 - Laserfiche WebLink

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manner which brought it in on time and at budget. The structured review focused on the aspects that gave assurances that the best interest of the City was paramount in the bidding process. Using this approach uniformly showed the Noresco was the bidder that satisfied ali of the partnership criteria. Noresco made a formal presentation to the Utilities Commission at a special meeting on April 29, 2002, to present a detailed report of the contract negations and reiterate their commitment of the partnership ideals developed in the RFP process. The Commission approved to the staff recommendation by a five to one vote (one member absent) to enter into the EPC (Engineering/ProcuremenUConstruction) contract with Noresco. ALTERNATIVES The alternatives, as represented by all of the proposals, were thoroughly considered as part of the RFP process in which different scenarios to meet the energy needs of the City were discussed and evaluated. This included different types of generation components, various combinations of equipment, and opportunities to purchase energy in lieu of generating. The discussion of the alternatives led to the conclusion included in the Noresco proposal. FINANCIAL IMPACTS The consultants have estimated that the project costs will amount to approximately $42 million. This is consistent with Noresco's bid. Funding will come from the sale of Electric Revenue Bonds. Repayment of the bonds will come from electric rates. It is estimated that the annual cost of debt service and operations of the plant will be around $10 million based on the current values for interest rates and gas cost assumptions. This cost will be offset by the amount the City is paying for the two power contracts that are expiring. The annual cost of the contracts is approximately $12 million. ENVIRONMENTALIMPACTS The environmental impacts for air quality, aesthitics, and Fish and Wildlife / Fish and Game are specifically noted in the RFP and compliance with all environmental concerns is paR of the EPC contract. It is recommended that the City Council authorize the Etectric Utility to enter into an Engineering/ProcuremenUConstruction contract with Noresco to build a generating facility with a nominal capacity rating not to exceed 49 megaWatts to meet the needs of the City of Colton Electric UtilHy. REVIEW TEAM ONLY City Finance Direc[or�. �� CityManager /61 !%.7�61.1�71 OTHER