(5)AR 051909 Black & Veatch - Laserfiche WebLink

Browse Search

CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF MAY 19, 2009 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Approve First Amendment to Extend the Term of Professional Services Agreement with Black & Veatch Corporation to June 30, 2010. DATE: May 11, 2009 ITEM #5 BACKGROUND: In April of 2007, the Electric Department issued a Request for Proposal to perform a fixed asset and infrastructure study for the utility, at the recommendation of the City's auditing firm, Lance, Soll and Lunghard. On July 17, 2007 City Council awarded a contract to Black & Veatch for these services. The primary goals of the study were to prepare an inventory of the utility's fixed assets and infrastructure in compliance with GASB 34 and FERC System of Accounts, to develop a policy to support the adoption of and conformance to GASB 34 and FERC System of Accounts, and to develop a strategy and sustainable process to document, add, and delete fixed assets. On July 15, 2008, City Council approved a professional services agreement with Black & Veatch to provide professional consulting and support services for the implementation of recommendations from the fixed asset and infrastructure inventory study. The total compensation for this agreement is $173,000, and the term of the agreement is August 15, 2008 through August 14, 2009. DISCUSSION/ANALYSIS: While working to implement the recommendations from the fixed asset and infrastructure inventory study, it will be necessary to make changes to the configuration of the Electric Utility's work management system, upgrade to a newer version of the work management system, and implement the regulatory accounting module. These tasks require coordination between Black & Veatch and Oracle, the owner of the work management system software. As of this writing, staff and legal counsel have been working with Oracle on the terms of an agreement. Once the terms have been agreed to, Staff will bring that agreement forward for City Council approval. Because these cannot be completed before August 14, 2009, staff is requesting to extend the term of the agreement through June 30, 2010. It is anticipated that the work can be completed with the remaining funds on the existing contract. FINANCIAL IMPACT: There is no financial impact to extend the term of the agreement. The funds are already budgeted and encumbered in Fiscal Year 08-09. Any remaining funds will be carried over to Fiscal Year 09/10. ENVIROMENTAL IMPACT: None.