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HomeMy WebLinkAbout0364.000~ ....•... ~ ... I -. - ~, ' ,. '. ~,.' . .. June 14, 1990 THE BONOPASLE CITY COUNCIL Palo Alto. California 2~3) 2(~ Renewal of consultant Service Agreements for epue Gas Uti 1 ity proceeding Members of the Council: This report requests that Council authorize the Mayor to execute the attached: agreements 'With Recon Research corporation (RECON) and Mr. Patrick J. Power to provide specialized consulting services on qas utility matters before the California PUblic utilities Commission (CPOC). Both consultants are presently under oontract~ representing the city before the CPUC on a variety of izportant qas issues related to derequlation of the industry which yill continue to be addressed in the upcoming year. Council approval of the attached agreements will make them effective through June 30., 19-91. Discussion During Fiscal Year 1990-91, the city vill continue active partici~ition in CPUC qas proceedings on cost allocation, interstate transportation, gathering charqes, procurement of sOlpplies, and other related Ilatters which direct.ly affect the wholesale rate we pay to pacific Gas and Electric (PG&EJ as well as the City's plans for alternative gas supply and development. The issues in these bearings bave broadened since their beginnings in 1984 .. when the Commission instituted its investiqation into California qas transportation matters and assigned Mr. Power as the Administrative Law Judge. Important issues re~ain to pe resolved in the upcoming year, and issues already resolved ~ust be monitored to protect the City's interests from proposals Which deviate from establisbed formulas and policies. In addition to close Ilonitoring: of all phases of these proceedinqs~ the City vill present its own witnesses, cross-exa1line PG&:E witnesses, submit briefs and file petitions if necessary~ CIOt.lU,O • \ ~ . ! ! f ". ~ , , , , • , .1 \ ,.\,!1 . ,c, , 11',,)<' .• ~ , -'. , , i , l • ·-..... "." ) ~ __ :." __ ~_,..,.c.~<~ __ ~-=:·,_,.~,:,,,-::,-::~-:-~"~,-~t~~~.!.._ --~--j o o The increased compensation -requested for consulting services is for acScUtl.onal services resulting f"roll. issues which surfaced during a recently 5cheduled En Bane hearing called by the CPOC on November I, 1989.. The En Bane is notable in that it shows the CPOC·s oomJIitment to implementing a new gas utilit.y program structure that will have a significant impact on Palo Alto~ The CPUC filed an Order Instituting Rulemaking (OrR), a proceed in<) de-sig-ned to establish ~ policies, on February 7, 1990, as a result of the En Bane hearing. The OIR proposes a number of chanqes to California's current qas procurement and pipeline cap~c1ty access policies 'Which may materially affect the City and its retail gas customers. As a result it is extremely important that the City avail itself of the additional specialized services until these issues have been resolved. To accomplish Palo Alto's objectives in these proceedings, reliance upon outside consultants -with expertise in the CPU<:' arena has become necessary due to the demanding schedule, technical subject matter l workload and the multitude of issues under consideration simultaneously at the hearings a Although the consulting field is very narrow with respect to specializing in CP""VC gas rate and regulatory :matters, the city has been fortunate to retain the bighly regarded services of REOON in 1986 and Hr. Po'Wer in 1981 after bis departure froa the CPUC~ Both consultants are among a relative few who have been closely involved in the construction ~f the CpucJ s rate and regulatory proqraII since its inception in 1984. Equally important, they do not represent any other parties of record in gas issues being brought before the commissimt Which would result in a conflict of interest .. Accordingly, RECON and Jir~ PoWer provide specializ&<.: services which are exempt from the normal Request for Proposal and Consultant sel~tion Process. These two consultants are of value to the City with regard to advice on rate design, gas acquisitio-n costs" procurement and transportation issues at the state and federal levels and various l,aqal, economic and regulatory matters. Their efforts have substantially aided the City in obtaining access to PG&E's gas storage facilities l asserting Palo Alto's unique status as a wholesale customer, and .facilitat:inq staff's unde!"standing of critical issues as they bave developed~ It may be noted that Hr. Power, a fo~er CPOC Administrative Law Judge, resigned in April 19&1 to enter the cOllsultinq field. Baving presided over the transportation proceedinqsl Mr~ Power brings invaluable knowledge, experience and legal expertise to the City's effort before the COmDission. On the other hand, RECOtf provides strong economic and ratemaking support to the City ia the CHIli "4 = e 2 i" I , , \ \ t" "" \ -\:.-- \' : -..." : "' () 0 hearinga. Thua, ~helr individual areas of exper~ise co~plement each other and provide the City with sufficient depth to accomplish the City's qoa15. Tbe current agreements expire June 30, 1990. A.rproval of the attached REOON aqreement will renew the present agreement through June 30 1 1991 and allow for an annual compensation level not to excee·'J $150,000. With regard: to Mr. power, the attached agreement provides. lor a t.erm through June 30, 1991, and. allows for an ann·ual compensatIon ceiling-up to $30.., 000. Neverthelt:'!ss, the combined consultant expenditures for CP'OC activities shall be lImited to $l~O,OOQ. Funds for this purpose have been budgeted for FY 1S90- 91 In the Gas Fund. Approval of these agreements vi11 provide­ adequate leq.al and econoJlic analysis support. for an ongoing effort in 9&S proceeding before the CPUC in the upcoming year. Recomnendat.ions Staff recommends that Council approve the attached agreements with Recon. Research Corporation and Hr. Patrick. J. Power lor onqoinq consulting services on gas rate, procurement and transport ~atters before the California Public Utilities Commission. Respectfully s~itted, ~~f!~.", l'~ALD P. RLVAL xanaqer, Energy Planning /.; _ -f~_~ ~'~ """ ~U RICHARD L. YOC'N Director of Utilities ~~~ Assistant City Manager Attachments .... I " " " ! , }. f \ , J '. '"c"' .... ~ ___ ..,... __ ,.·""','_. PALO ~~TO VTXLTV .~~-~--- f-'. ~-.o! W~::--'9 TUO< 9.3' ",TY OF (), AGREEMENT No. e:v~ ~ ~!MENT MACi A,.,o £N1VEtl MQ 0\Ij ~i aA'I C4 ___ _ IV ArC! fIIETwaIt M (;tTY OF PALO Ai.. TO (Io'EJIe:I~Fge~ RE.F~ '1i!110 TQ,&.$ ClTY.,&.NO .. ~(1'. 'Ero' 'ESMarK rOR'QOliATIQX ~ . ____ , ___ ,_ ~~SSi U8Q Yfhbh· )JVd 51"re I5,ClL ~i'I'VJ J..D:$ ~e.l..es_---CA..._~1I'l..;:S0C4& " (r~.1 .(213).. _ ~~.u;..~~~,:(iO.t.i CONiRAtTORi iN ~~~i;.I'\<..~ '-.,," t~,1II' 1oIt.f'\.i.ott. CO"5l':A,~T$. ,.,.i,,~ JE~r'T'O A.G"'-tE;'''S ~()IJ • • CONTRACToR ~ PFIOII1."~ O~ F\lJ;.~S1oI TO!.E ;:ou.CWNQ sPiClf'::tI $to:r.-'::; 1<. ~ ~"rC.~ SPEO"I6D ~ 0...1&,1' _ '. "nAOEI)HliIW7O.AND~t£O~E~IV:)<.1$RIi;:-''''.tNC..e-Se::;'I1cu 5"'311 be 'u'tldC!!rt.a"IWn "nd",r tr . .!; ;~r:3Cr.~1 dirElc-t1oll 'Of -D'r. J:.d:-rew Sat1:-, hu!c~~t. 0'0 'Who,~ IoIc.i,u. q'l.a11f1ear.1ous t.he: Cit.Y h tel,.1':"'..~ 121. ~k!1!I1 tMs a,: .. meot. $.Qf"l~n will 'b~ prov1.ad h C;o'llclltct.iOQ Vi.tb. Cit,·, g:~$ t-l'!l~_o;:­ PQ~cattOQ rate. Vboles~e tatQ, .~d regul¢tory .~1Y1!. of p~opos&ll betQ~~ the C~li!~r~ll 'Pub11C. 'C'tUl.t.:l.e:!l COIIIfI:lss1ou and 00. goU tx-a.I'I$pcrtatioo rr.a,cl:er, 41netl,. v1th Paciftc C~S ~~d ile.ct%1c ~an: ... Add.it.loo.al se.rv1,1t.$ will b~ p'tovtded ;:-'Ca.t'ditl.& ca. a.equiSitiol"l .;:>l".d. r'rcc, .. r0':" • EXHIBITS 1)4I~"'TT~tl:~Ii's,":e~Ea'f.-AE""""tllli 'oIlA1'eJllMS; Ar;piilYtNT: WlItter:l fot' City's oti.lit.:io!!:~_ n.u. ASrteme.!lIt 1I'hall I',.\perscd. Cont:r.lct roo. SO 006208. !XalBlt A • WAtt.;~~~ A -Co~?~ns~t1onn • TERMS ~ seMC;ll ANC),IQIII".A1V!:I,t;t.S ~."III.NlS~';.:J '$0£.:1. 1'".$ t,GI4E:e:lr4'tr~.J. ~~t OJ.\ _~ 1.. l.9':}Q ANO~I'i~1i1Oft( Jyn,...' 'KL .. _U9..L. _____ _ • COMPENSA.TION (I:C~ n-.e FlJU.. ~F-;.OI:M.I.rd '::F :11::;, "G~E"~r G C1n$tW.I.PA'fCCNT1'AC"'"..c~ Se. Att&eb.o:l.enc A • CITY ACCOUNT NUMBER: r:~, 2'423400 3103 24423!o~O 310' • GENERAL TEAMS AND CONOfTIONS ARE ONClUOE" eN SOn< SIDES 0' ""'$ =-"" $l;'.COO $12D.C'CO TWS ~~NT,HAU IIECOIoIE!f'ItCTM VPONi ITS APPFl:::1' .... 4l 4UO mci!:'~ IV CI!Y, II "W11"frt!SS ~ERrof-_ rKE fl'AJWf:.: ~t,Jt. EXECUn-O ;,,~s AGIIEfME1f1 tM! DAV. UON1'H. Ma:l 'f'lAA: FtRSr~ A8OV{. • M'LIMUoUSS. ~~ ... ta ~Vl1(1if'J. ",rc"iS".,il P".o:cl ~rm~u em-. iS~. 2;W11l.. QI'od Cfl1pfo)JMs tom at\):ar'ICJ d ~~ ",;t'I!! '!' ~~~~t')' 'll ~ ~~ ~dWI\.~ ~ r.t l:':':li!"i; N" C<mit;~~~'l. .~ .. ;Jjjt"lUo· tt~OJ.U ~ -ae:,..tr<v ... ~ <)1r.~IQ"';, ef ~·!I(:...: ~ .«rncfiJcrfor..ticl a» ~ 1m.P1n«S 'It'C ~ eon CO"'!~ ia \1'.11 t't~nc.e Qf~"!11 ,lffatT'll !li&W'H:T.c:ht ~ ;:JfoIfR.6.C'CR D11RI AQJIEMOO" TM IIIr"1f11'*11:1M' It!t Iran Fit C"MIMCH; jMl ...... M"St !\!:rt¢ ~~ :!1' ~11IQ,~man: ~ z:w jU.."tiIeS ... :rfI ~~d ,'t ~t: ~"":";I~" •• ;r4 SOh ~ 'N ~ ~:aN!s ::r $I.I~ 01 N,t!I!r'It. 10r S8'T"~cn ",".c'" IN3' Dt N JI;~t~ .. t!IiI: ~r'~ Nt"".. ~l'ttM'lc"'" t'"..jJ",NJ';Jl"\O'1~ ,:"Itt:"~w, .... PRoJECT ·MANAGER ~ ~e~SE..,rAr~~ ~~ t::rrv ~TRACT . • ~""~w!ItDIer oraItrW1"~16".;rl aUlle'S<iat4 .. ~·.t.y ~4 NAME: 'C:r.,A.p lel",,?) ""'!!'''8cr ... ~i~n. !y . _.~_ ._ ·.··~T,~t'i~,tf;:i!cetll;·!j?rn,,,,;~~_.__ rrru . t?~~k~'":· _~ .. _ .. ___ , __ _ . r,O. 801( _ . :PALO Al.:'rQ. CA. 9't303 TeIIpf"Iol\II -(415) 329-229L ~~~'; -q'S ~ 2;"1,,-r5 ~ __ 51-() • "INV04CfNG 1IHO,1.,:t. ~ 1<6 ~ GI""". Am .... ~OJEC1' W/IIWGEE; .... ·~Ct~TY~~OF:~~P~A~L~O~'~· ;~~~~~~~:,:,,~,:o:u'~'~>C<~~$.~~;_~.~S~=~:OO~O~"":· ;'T\l~'~'_~~. ~;,~.,..,...,.,~~.~' .... ~~ao~::~~S~~7)~ ! L - ! , I '<0.«", ''''''','','''''.0 j • \. \ \ " , , -\ '-/~~, , . \ - o o EXHlBITA ATIACHMENT 'A' RECON RESEARCH CORPORATION July I, 1990 to June JO. 1991 Shoo FO<I!1 AgreerMnt COMPENSATION; CITY shall pay CONTRACTOR; Monthly based on written invoices for services rendered, not 10 exceed $130.00 per bour for the services of Dr, Safir. Less compte. services, (){ services provided by associates under Dr. Safic's supervision and dire<.-tion, shan be billed at RECOtII"s current rates, ranging from $40.00 per bour to $130.00 per hour. Compensation under this Agreement Wlll Dot exceed 5150,000 ","'ben added 10 the t.ota! cornpeTL"iation nnder Contract Numb<:r __ _ '. \ . - ."-,,,. : \ ..... : , . . .. i _. • r .. '.- " AGREEMENT ;, S'I' ':""HIS AGREEMENT ko! .... ::;lE .ll,ND Er..{TEF. jfllTO ON THE ___ DAY O~ _ __ __ <'______ _ ~_ 1 ~ _ ~ By AND BETWEE~ ThE CIT'( OF PALO At TO IHE",EI"'nf~ !'IE-FERRE;:) TQAS ClT'!', ,.l, ..... !':) l'NAMF1111 _____ !_~ __ tr i Ck J. P C~_~ __ r:_______ _____________________ __._ 12', (ADORE 551 .-t1..Pl~p~t~T _____ ~_1!:~_~!. ~ ____ ~_lJ_1._~_~ ___ lI QO____ _ __ ICrnl Q_:q~) a_T1.c:I. ("'EREIN.AfiEI'I P-EFERPEll ro AS CONTR).CTORl-IN CQNSIOE,.i'lA.HON Of THErR iIoIl.rru~t. CO'i£NAATS. TH(P"ATI£S HE~n0 ""'':'HE Ell.::; ,.::>1. l'~ '/."; • CONTRACTOR SHAll.. PRO\/Ioe OR _LrRl'OISH THE FOUOWING SPECIf"i';:::> SEAV'CES )'~D,'O~ loIArrRJ,J;tS Senices sha 11 b"" undertaken by Patric~ Power on ~hase unique qualjficatrons the City is rel~in9. legal dna consLlltation s.en'ices 11/;11 be provided in connection witn the City's gas transportation ri":e-. who1esa1e rate. and analysis of regu1atton proposals before the Ca1Hornl! Public Gtilit'o;5 COOlmJSS;Ofl and. on gas transportation matters directlj witn Paclfic Sas and Electric Co!r!p,:i'lY~ Additional senlces will be provided regarding g3S acquisition ana procurement I!latt':ls f')r t~(' Citj's utilft1es. TM;S agreement snall supersede Contract ~o. 50-6196 • EXHIBITS THE FOLLOWING 'H;ACHED EXHlsns HEREBY ARE MADE PART OF rHIS A~f1£E\IlE~i: EXHIBIT ~ -AAttachment A -Compensation" • COMPENSATION FeR iHE FULL PECfFORI,.,Ar-oCE Of THIS AGF!EE'·,.oIE:~T. m CITY SHALt PAY CONrnAC Te R o CQt.oTA.ACTQFI: SHAU_ PAY crv • PAYME'1T RECORD WARRANT ItO. OJ, TE AAtOll!""T 01 ___ _ ,.., '" (5j 'J) __ _ '"'--- eGENERAL TERMS AND CONDITIONS _ cOin ACCDlJlI\IT ~_u", B!_" -:::r 24~23400 3]01 : S --------------- ANOU"'!:_ 1_5_,Oi22 1-I04..D KAA~ss. C.01'ltractOI agree ... 10 lndemn\f)l. de~encj and ~ld ham.:eosr:. the city. its ofti<:ers. agent ... and emplo,eesl-icm .In), il"C all dem.iilr1ds, claims Of liabiTity of any nature, caused by or ar:sir;g olft of 1t1e peorforma~e 01 ttl,s a~reement [NSURAI\ICf. ContriK1or shall file .... ith ft1e cJty .. certifICate of ins:uran.ce before comme:1cirl~ din)' ser'\lfCe!S under this agreement 1T1t.>etJng minimlUll cOllerage requirements estabrrshed by cItY's risk manager NON~I)I'SCRjMINAT1ON.. No discrimination sllan be made in tfle employment of persons undal" tt>1S agreement ~ause of :he race.. color natKlI'al origin. a~ ancestry, n!ligion or :;eJ( Of st)CiI pe~O<", rNTEFI£ST ~ COfIITRACTOft, • fs understood arld agretd t11at tt1i!S 3\treemertt is not ill Ct'nlract at emp1oJ'ment in tnt': 5-<:','5," ttlat tr1e reralion or m.;tSter arid 5e!Vam e-~;sts bet .. een tne city and undersigned At alll;lT,es. contra-c1or sr1an be deemed ttl be .. '1 ind.:pende-rrt cantrac1Q( and' contractor 'is r"l~ authorized 10 !::lind the city to ar.V con.tracts or oU'er ObligatJons. 11" e.eoc.rti:-wol tt.!!;; agre'Omenl cr~'nl~.a..::-L)r certifies that no one wflo !'las 01" WI~ r1ave an:r finanCIa;r in!ere!>t uncial :t1 is agreement is an ClWocer Of em;::llcyee of Ci~. C HANGIE S. fi'lfs agreement shOll! nol oe asSigned' or transferre't ~lfl'1oLJ!:tIe '."nttft!1. consent of theeit)'. Nocl'la.n~es or 113r;at,0 n5.-.]f <In" Io,.In1 are a\Jtt'>oli"l-e1i wi{hoo,r\ tt.e 'Wfitten CQ('&E.M 0{ the cih,o l1lar,at;;er. TERM4NATION. Thi$agreem&nf may be lermi,-,ate<;f b)' city upon ten 110) da!"5 ·."r't1ell (lo!;ce 10con!rador Yonies ttlen OWing bas",d UP,)n work $<Jfisfactonly ;tCCOmplished shan be paid Ie contr3C1or. This agreemanl al1a11 become el're<:tive upon its approlla! and e_ecution by CITY. In .,tnI3'SS wIlereo(, t!'1". p<l!rties have e_ec'.lfed r1:o5 agreemenllhe day and year fir5t writ'ler"l above • CONTRACT co.ORDI NA TOR "NO REPRESeNTATIVE FOA CrT\' N}lMr::: RO_!l~ 1 ~ __ P. !e 1 "i a 1._ f..,P P R_ClVJJ~; Dm _ umDfi'sl~NERGY l'LANNI~G-=--- P.O. 60)( 10250 PALO ALTO, CA 94303 "TEl.EPHONE 329-______ f(~J_ lET."" C:;Ri.'U'II COP'( FOil ¥o ... 1t FlU3 - CONTRACTOR ev 24l.",.,»J'L-...r::y 1mE __ AB-Jc<-~_ ~~-I~~ S;;~~~~ ~_ S _3. __ 1-=_ ~ __ ~ _-I '1 1 8 CITY OF PALO ALTO , '. • -, , i I 1 ! , f . . o 0 EXHIBIT A AITACHMDiT "A" PATRICK J. POWER July 1,1990 10 June 30,1991 Short F Ofm Agreement COMPENSATION: CITY shall pay CONlRACfOR: Monthly ba.<oed on written ,nvoic"" foe services rendered, not to exceed S 13(1.00 per hour for the services of Patrick J. Power. Less complex services shall be billed ranging from $40JlO per hour 10 $130.00 per hour. Compensation "nder this Agreement will 001 exceed $30,000 provided that the total compensation nnder this Agreement wben added to the total compensation paid under Contract Number ___ . __ sb~J:l Dot, in the aggregate, «ceed $150,000. 1iI1.. ---,9V •..•..... _~ffl __ '-~-. __ ._"· L... "., .. \ - i. f 1 , , '!. ~ .. I ~ 1 i I ~