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CITY OF COLTON <br />AGENDA REPORT <br />FOR COUNCIL MEETING OF MAY 17, 2005 <br />TO: HONORABLE MAYOR AND CITY COUNCIL <br />FROM: Jeannette Olko, Electric Utility General Manager <br />Item #11 <br />SUBJECT: Request for Approval of Renewal of Gas Transportation Contract <br />with Southern California Gas Company <br />DATE: May 09, 2005 <br />BACKGROUND: <br />Council approved a gas transportation contract with Southern California Gas Company on May 6, <br />2003. The term of the contract was for two years, and is set to expire on May 7, 2005. The <br />contract allows for the transportation of natural gas to the Agua Mansa Power Plant. The natural <br />gas serves as fuel for the plant, and is required for the plant's operation. <br />DISCUSSION/ANALYSIS: <br />The basic terms and conditions of the contract are as follows: <br />1. Term: The term of the agreement is for and additional two (2) years. <br />2. Price: The charge for transportation is based on volume of gas delivered, and <br />follows Southern California Gas' Schedule No. GT -F5, Firm Intrastate <br />Transmission Service. This cost is $0.3349 per mmbtu. <br />FINANCIAL IMPACT: <br />Funds will be budgeted in FY 05-06 in account number 520-8000-8009-2321-0547-000, Power <br />Plant — Fuel. The power plant budget will be presented to council as part of the department's <br />budget later this month. <br />ENVIRONMENTAL IMPACT: <br />None. <br />CONFLICT OF INTEREST — Gift Disclosure Requirements <br />Southern California Gas Company <br />Contact: Douglas Spahr, P.E., Power Generation Sales Manager <br />RECOMMENDATION: <br />Staff recommends that City Council approve the 2 -year renewal of the gas transportation contract <br />with Southern California Gas Company. <br />REVIEW TEAM ONLY Sic f <br />City Attorney: Finance Director: - <br />City Manager: i)) Ei` OTHER: <br />