HomeMy WebLinkAbout2001-06-25 City Council (11)City of Palo Alto
City Manager’s Report
TO:HONORABLE CITY COUNCIL
12
FROM:CITY MANAGER DEPARTMENT: UTILITIES
DATE:
SUBJECT:
JUNE 25, 2001 ¯ CMR: 272:01
AMENDMENT NO. 2 TO INCREASE THE FUNDING FOR
CONTRACT C9109355 WITH FLYNN & ASSOCIATES BY $45,000
IN FISCAL YEAR 2000-01 FOR ASSISTANCE TO THE CITY
WITH ELECTRIC REGULATORY AFFAIRS FOR A TOTAL
CONTRACT AMOUNT OF $400,000 FOR THE FISCAL YEAR 98-
99, FISCAL YEAR 99-00 AND FISCAL YEAR 00-01.
RECOMMENDATION
Staff recommends that the Council authorize approval of Amendment No. 2 of Contract
C9109355 with Flynn & Associates for an additional $45,000.for fiscal year 2000-01 for
a total contract price of $400,000 for fiscal year 1998-99, fiscal year 1999-00 and fiscal
year 2000’01.
BACKGROUND
In 1998-99, Flynn & Associates was hired by the City of Palo Alto Utilities (CPAU) for
specialized consulting services in the electric regulatory area (CMR: 120:98). Flynn &
Associates was to assist CPAU in continuing to prepare for restructuring of the electricity
industry in California by monitoring and influencing regulatory changes related to the
operation of the Independent System Operator (ISO), and the Power Exchange (PX).
Exhibit A outlines the tasks involved in providing these services. Amendment No. 1 to
the Contract on June 12, 2000 provided additional funding Of $25,000 due to additional
work in fiscal year 1999-00. Expenditures under this contract were approximately
$55,000 during fiscal year 1998-99 and $165,000 during fiscal year 1999-00. Staff
expected expenditures under this contract to be about $135,000 for fiscal year 2000-01.
CMR:272:01 Page 1 of 3
DISCUSSION
During the last year, the pace of regulatory changes initiated by the California ISO has
increased more than expected and stakeholder processes have been started in major new
areas. The plethora of electric regulatory proceedings at the ISO and at Federal Energy
Regulatory Commission that staff and the consultant have monitored, participated in and
analyzed has resulted in more work needed from the consultant than was envisioned at
the beginning of fiscal year 2000-01. The additional work needed under the existing
scope of work covers stakeholder proceedings related to. enhancing electric infrastructure
reliability to the Bay Area, lowering transmission costs, long=term grid planning,
comprehensive market reform and the new facilities interconnection policy introduced by
the California ISO.
RESOURCE IMPACT
The required additional funds of $45,000 are available in the fiscal year 2000-01 budget
and there is no incremental budget impact.
POLICY IMPLICATIONS
This recommendation is consistent with the Council approved Utilities Strategic Plan
Strategy 2: Preserve a supply cost advantage compared to the market price.
ENVIRONMENTAL REVIEW
These services do not constitute a project for the purposes ofthe California
Environmental Quality Act.
ATTACHMENTS
Amendment No. 2 to the Contract for consulting services with Flynn & Associates
PREPARED BY:
Shishir K. Mukherjee
Resource Planner
CMR:272:01 Page 2 of 3
DEPARTMENT HEAD APPROVAL:
ctor of Utilities
CITY MANAGER APPROVAL:
Assistant City Manager
CMR:272:01 Page 3 of 3
AMENDMENT NO. TWO TO CONTRACT NO. C9109355
BETWEEN THE CITY OF PALO ALTO AND
FLYNN & ASSOCIATES
This Amendment No.Two to Contract No. C9109355
("Contract") is entered into , 2001 by. and between
the CITY OF PALO ALTO, a chartered city and a municipal corporation
of the State of California ("CITY"), and FLYNN & ASSOCIATES, a
California sole proprietorship, located at 4200 Driftwood Place,
Discovery Bay, CA 94514-9267 ("CONTRACTOR"
R E,C I,T A L S:
WHEREAS, the Contract was entered into between the
parties for the provision of consulting services in January, 1998;
and
WHEREAS, the parties wish to amend the Contract;
NOW, THEREFORE, in consideration of the covenants, terms,
conditions, and provisions of this Amendment, the parties agree:
SECTION I. The Section entitled "COMPENSATION" is hereby
amended to read as follows:
"In consideration.of the full performance of the Services
byCONTRACTOR, CITY will pay CONTRACTOR within thirty
(30) days of submission by CONTRACTOR of its itemized
billings, in triplicate, in accordance with the following
fee schedule set forth in Exhibit "B"."
SECTION 2. The following exhibit to the Contract is
hereby amended to read as set forth in the. attachment .to this
Amendment No. Two, which is incorporated in full by this reference:
a. Exhibit "B" entitled "FEE SCHEDULE".
SECTION 3.Except as herein modified, all other
provisions of the Contract, including any exhibits and subsequent
amendments thereto, shall remain in full force and effect.
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IN WITNESS WHEREOF, the parties have by their duly
authorized representatives executed this Amendment on the date
first above written.
ATTEST:CITY OF PALO ALTO
City Clerk
APPROVED AS TO FORM:
Mayor
FLYNN & ASSOCIATES
Senior Asst. City Attorney
APPROVED:
Assistant City Manager
Director of Administrative
Services
By:
Name:
Ti[le:
Taxpayer Identification No.
Director of Utilities
Risk Manager
Attachment:
EXHIBIT "B":FEE SCHEDULE
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CERTIFICATE OF ACKNOWLEDGMENT
(Civil Code § 1189)
STATE OF
COUNTY OF
)
)
)
On
notary public in and
, before me, the undersigned, a
for said County, personally appeared
,personally known to me (or proved to me on the basis of
satisfactory evidence) to be the person(s) whose name(s) is/are
subscribed to the within instrument, and acknowledged to me that
he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the
instrument the person(s), or the entity upon behalf of which the
person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
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EXHIBIT ~B"
FEE SCHEDULE
The maximum compensation due and payable to CONTRACTOR, whose
hourly rates also are set forth in this Exhibit "B", is subject to
CITY’s budget of $70,000 in FY 1998-99, $125,000 in FY 1999-2000,
and $205,000 in FY 2000-01 pursuant to CITY’s Request for Proposals
No. 109355 and CITY’s appropriations for this service contract. No
representation or warranty is made by CITY that CONTRACTOR shall be
entitled to a minimum amount of compensation under this Contract.
The attached billing rates may be adjusted at the renewal
date, if any, of this contract to reflect the change in rates
officially established by the CONSULTANT’s Board of Directors.
Reproduction, printing, communications, computer services, and
other miscellaneous support service shall be billed at 10% (ten
percent) of the labor costs for the billing period. This
additional ~non-labor" cost will be included for each billing
period.
All travel, food, lodging and miscellaneous expenses, except
automobile mileage, associated with the provision of services
hereunder shall be billed at.cost. Automobile mileage will be
billed at the rate approved by the Internal Revenue Service.
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