2000 AGN APR 18 I17 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of April 18, 2000 TO: Honorable Mayor and City 0it APPROVAL: Henry T. Garcia, City Manag FROM: Thomas K. Clarke, Utility Directotaf SUBJECT: Approval of Power Resource Scheduling, Dispatching, and Optimization Services Contract with Coral Power DATE: April 7, 2000 BACKGROUND City Council approved the award of contract to Coral Power to provide the electric utility's power resource scheduling, dispatching, and optimization services at its March 21, 2000 meeting. The Utility contracted with Sempra Energy Trading, previously named ENOVA, to provide these scheduling and dispatching services. The existing contract expires on June 30, 2000. DISCUSSION The final version of the contract includes some cleaning up of i acceptable to both parties. On limitation of liability for Coral Po, version of the contract. The terr extend for an additional one year. between the City and Coral Power has been finalized. This ie document and insertion and/or replacement of language of the important parts added to the contract is related to ter not to exceed the cost of service. Attached is a revised of the contract remains at sixteen months with an option to ANALYSIS Based on fixed cost and the volatile electric utility market, these changes to the contract are necessary, especially the limiting of Coral Power's liability not to exceed the cost of service. Negotiations between City Staff, Best Best & Krieger's attorney, and Coral Power, produced the final contract document that has been prepared for City Council approval. ALTERNATIVES The alternative is to not award the contract to Coral Power and start negotiations with others that submitted proposals. FINANCIAL IMPACT An agreement with Coral Power would result in an electric utility budget saving of $144k per year in fixed costs for Scheduling, Dispatching, and Optimization services. The City's staff and Coral Power would work on strategies to optimize our resources to enhance the City's revenues or tc reduce costs after execution of the Contract. ENVIRONMENTAL IMPACT: RECOMMENDATION Staff recommends that City Council authorize the Mayor to execute the contract and its subsequent amendments for Coral Power to provide Scheduling, Dispatching, and Optimization services for sixteen months with an option to extend for one additional year. Attachments: Coral Power Contracts Report Prepared by: Nitin Modi, Electrical Engineering Manager Page 1 of 1 (w/Attachments) Item #17