(16)AR 032007 agreement - Laserfiche WebLink

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ITEM #16 CITY OF COLTON AGENDA REPORT FOR COUNCIL MEETING OF March 20, 2007 TO: Honorable Mayor and City Council FROM: Jeannette Olko, Electric Utility General Manager SUBJECT: Request Approval to Renew Professional Services Agreement with AC Electric Systems for One Year Period DATE: March 13, 2007 BACKGROUND: The City Council approved the Professional Services Agreement with AC Electric Systems on February 7, 2006. The City Council amended the agreement on July 18, 2006 to increase the number of hours per week and subsequently increase the total annual contract price from $52,000 to $82,000. The agreement provides the services of an electrical engineer for a wide range of projects. These engineering services are essential for adequate and reliable system operations and improvements. AC Electric Systems has worked diligently with staff to resolve various power quality issues, perform analysis on underground cable for certain circuits in the City, create an electric standards manual, and prepare the Department's 10 -year Master Plan for the electric system. DISCUSSION/ANALYSIS: The City's need for electrical engineering services is ongoing. The Electric Utility Department has been without an "in-house" engineer since September 2005, when the Electrical Systems Engineer resigned. In the absence of in-house personnel to handle electrical engineering, AC Electric Systems has provided excellent service to the City. The agreement with AC Electric Systems includes an option to renew the agreement for two additional one (1) year periods. The City may exercise its option to renew the agreement for one (1) year by notifying AC Electric Systems in writing of its intention to renew the agreement. Renewal of the agreement will not alter any of the terms or provisions of the agreement as amended, nor will it increase the approved annual contract price of $82,000. City staff seeks Council approval to renew the agreement for one (1) year and to authorize the City Manager to execute the written notice to AC Electric Systems. FINANCIAL IMPACT: Funds are budgeted and available in account number 520-8000-8002-2350-0923-000, Professional Services, Engineering Division. Page 1 of 2