2000 AGN JAN 04 I13 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For the City Council Meeting of January 4, 2000 TO: Honorable Mayor and City Council APPROVAL: Henry T. Garcia, City Manage FROM: Thomas K. Clarke, Utilities Directo.K� SUBJECT: APPROVAL OF PROFESSIONAL SERVICES AGREEMENT FOR ELECTRIC POWER RESOURCE DEVELOPMENT WITH HITCHCOCK AND ASSOCIATES DATE: Wednesday, December 22, 1999 BACKGROUND The City is faced with electric industry restructuring, proposals from potential, large industrial customers, and the near-term expiration of one of the City's major power contracts (with the City of Pasadena, for 18 Megawatts, at $1.2 Million [fixed cost) per year, expiration date being 12/31/2002). This has created opportunities for the City to improve its portfolio of electric power resources and its sales revenue. ANALYSIS Robert Ferguson, key Consultant under the contract, who is a Registered Mechanical Engineer, has been providing exceptionally insightful and professional service to the Colton Electric Utility under a previous letter agreement. He has been a valuable participant in discussions with potential, large industrial customers and other Contractors supplying power resources to the City. He is especially capable in the economic analysis and development of power plants suitable for acquisition or construction by the City. A contract and biography is attached. ALTERNATIVES The utility could issue an RFP, but prefers to maintain its established relationship to support the continuity of its discussions with various parties involved with Colton. FINANCIAL IMPACT Funding for these services is available in the Electric Utility Administrative Professional Services Account, Line Item 520-8000-8001-2350-0923-000. Contract costs are capped at $50,000 for the contract period of ten months. RECOMMENDATION Staff recommends that the City Council approve the Professional Services Agreement between the City of Colton and Hitchcock and Associates. Report prepared by Timothy C. Trewyn, P.E., Assistant Electric Utility Director Page 1 of 1 (w/attachment — Professional Services Agreement) Item #13