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Home My WebLink About0271.092- ... r-..... .. ··"'1-' May ::a~, 1992 THE HONORABLE CITY COUNCIL Palo Alto: California 7 A;mendl:!ent No. 2 to CODpulting Agr@ement..rlth Energy and &.9..D..tI:Q.l Cpnsultants re HerA pooling Agreement Members ot the Council: This ~eport recommends that council 3uthorize the Mayor to execute the second amendment to the basic consulting agreement between the City of PalO Alto and Energy and Control Consultants. The rep9n also recom.m:ends that Council approve a budget amendment ordinance to transfer $40,000 from the Electric Utility Continqency Fund to pay for s~rvices that may be rendered under the amended agreement. ~,ckgD?und For the past six years, the City of Palo Alto has been involvad with the Northern California Power Aqency (NePA) in the development of two aqreements: the Facilities Agreement and the Pooling Aqreement. The Facilities Agreement defines how its siqnatorles ~ill participate in technical studies in order to jointly finance and construct power supply resources. It also defines how these resourc"=!s will be operated to provide maximum benefits to their participants. The pooling Agreement governs the area of joint dispatching and scheduling of the NCPA ~embers who are signatories to the NCPAjPG&E (Pacific Gas and Electric) Interconnection Agreement. It also outlines procedures for coordinating long-term planning, load forecasting and transfers of resources between participants. C101:271:92 - Discussign While the benefit~ ~c Palo Alto from partic!p~tin9 in the Facilities ,~reellJent are significant and easily defined by staff, the benefits gained by participating in the Pooling Agreement are somewhat vague and more difficult to define. In neqotiati~g in t.he Pooling Agreement, a number of compromises have been worked out which affecte<:l the distributic:1. of savings ~!!Ionqst the. membersc Having had a part in a number of such compromiSES, staff has become concerned with the e~~ity of savings distribution as well as other qualitat:ve issues. Hence, we hav~ employed. the services of a consultant to give an independent analysis of the operation and economics of the Poolinq Aqree:ent. The consultant's scope of ... ork consists of four mutually exclusive tasks: Task 1. A preliminary qualitative analysis of the pooling Agreement and its associate~ schedule. Task 2. In-depth analysis of the issues derived from Task 1. Task 3~ A quanT.itatlve an~lysis to examine past and future eccno~ic impact of being an NCPA pool member. TQsk 4. outline a negotiating strategy to aid staff in their efforts to change Lhose provisions in the Pooling Agreement that may be detrimental to Palo Alto. The consultant report was discl.ossed -with the City Council member representing Palo Alto en the NCPA Co~issicn and staff inten~s to present a summary of the report tc the Utilities Advisory Commission during their June 1992 meeting. The consultant has completed Task 1 and Task 2. Staff now believes it will be necessary to continue with Task 3 and, if needed l Task 4. Task 1 and Task 2 were performed under a contract authorized by the City Manager l the amount of which -was within the City Manager's authority (less than $25,000). Task 3 and Task 4 are anticipated to cost a maximum of $40 r OOC, which requires Council authori2ation. CXII:271:92 2 L ~. r t , o F..coMgudatiop start reco~ends that council: 1. Approve and authorize th~ Mnyor to exec~te the attached amendment to the agreement bet.een Palo Alto and tee. 2~ Approve a Sudqet AlII:endment Ol:'dinance to-transfer $40,OOC t"l'"c!a the Electric Utilities ~ontingency FUnd to contract Services. Respectfully s~mitted, i'OVid r Ik£~ NALO P. BE "VAL qineerlnq Manager -Enerqy Planning ) - ORDINANCE NO. ORDINANCE OF THE COUNCiL OF THE CITY OF PALO '~TO AMEND!NG THE BUDGET FOR THE FISCAL YEAR 1991-92 TO PROVIDE FOR FUNDING OF SECOND AMENDMENT TO THE BASIC CONSULTING AGREEMENT BETWEEN THE CITY OF PALO ALTO AND ENERCY AND CONTROL CONSULTANTS WHEREAS, pursuant to the prcvisior.s of section 12 of Article III of tha Chart~r of the City of Palo Alto, the Council on June 24, 1991 did adopt a budget for fiscal year 1991-92j and WHEREAS, the city of Palo Alto has been inVOlved with the Northern California Power Agency (NCPA) in tfie development of a Pooling Agreement which governs the area of jOint dispatching, and scheduling of the. }IIep,," members 'Who are. also signatories to the NCPA/PG&E Inte~co~~ection Agreement; and WHEREAS, Energy and Control Consultants has been retained to provide an independent analysis of the operation and the economies of the poo~ing Jl!.greement; ar.d W'rlEREAS, t'Wo of the four possible tasks involved in evaluating the Pooling Agreement have been completed :by Energy and Control Consultants; and WHEREAS, based on the outcome of the evaluation of the firs't two tasks, is. second a:aLendment to the contract is proposed t.o complete the third and possihly fou~th tasKS at a cost of $40,000; and WHEREAS~ this funding .. ill have to be incorporated into the Energy Planning Division of the Electric F' • .md budget; NOW, THEREFORE. the -:ouncil of the city of Palo Alto does ORDAIN as fcll~'Ws: SECTION 1. The SUlII of forty thousand dollars ($40 /000) is hereby approprioi\ted to Contract Services in me Energy Planning Division of the Electric FUnd and the Electric Fund Transfer stabilization Resprve is correspondingly reduced. ~S~E~CT~I~O~N~~2~. This transaction will reduce the Transfer stabilization Reserve from $8,326,014 to $8 1 286 1 074 as of May 11 1992. SECTION J. The council of the city of Palo Alto hereby finds that the enactment of this ordinance is not a project under the California Environmental Quality Act and, therefore 1 no E'nvironmen tal impact assessment is necessary. L -. '-::1'.. >.... . .. :~-:;: ]. . . ., - g~.I~!L.!. Municipal Code, adoption4 As provided in section 2.04.375 of the Palo Alto this ordin~nce 6hall become effective upon INTRODUCED AND PASSED; A'iES: NOES: ABSTENTIONS: A'l'TEST: APPROVED: -=-r.=-=--.---------City Clark Mayor APPROVED AS TO YORH: Sr. Asst. City Att~e~ APPROVED: city )lanaqer Director of Finance D~rector of Utili~ies 91-2.23 • _~~1 .. "~ ;', -.: - S!COND AMIUIIDKlJrlI TO BASIC COllSOLTIJI'ij AGU:£XEBr BB'I'1rI!Bll ~ Cny OP PAW ALTO ABO KOC, l)lC. This second Amandment to Basic Ccnsulting ~greem~nt is made and enter:ed into this ____ day of , 1992, by and between ECC, Inc.~ a Virginia corpo~ation (Taxpayer I~D~ ~o. 54- lOS7916) (-ECC~) and the City of Palo Alto, a m~nicipal corporativn of the state of California (-Client-). WHEREAS, on January 30, 1992, the parties entered into a Basic Consulting Agreement (WAqreement W) ~ whereby ECC ~as retained to review and analyze and advise en certain. utility agreements entered into by client on behalf of its Utilities Department under 'l'ask No~ 1; WHEREAS, on May 1, 1992, the Council has approved the First Amendment to the Basic Consulting Agreement to provide for Task No.2; ~"HEREAS, the parties 'Wish to ~xpand the number of deliverables, as such term is defined ~n Article J of the Agreement, which fCC may be requireQ to provide hereunder; and WHEREAS, the costs of the deliverables far Tasks Nos. 1, 2,3 and 4 are $10,000, $15,000. $25,000 and $15,000, respectively, for a maxim~ contract pric~ of $65,000: NOW, THEREFORE~ in consideration of the terms and conditions of this First Amendment, the parties agree: ~~lQ~. Article l is revised in its ~ntirety to read as fol~o",s: -ECC shall, within such time and expenditure constraints, submit to Client some or all of th~ deliverables specified in the written Task Releases Nos. 1 th~ou9h 4, attached hereto and incorporated h.rein by reference, as Client at its option may determine it will require of ECC. In addition, ECC shall, upon the request of Client and upon the completion or earlier termination of this Aqreement, deliver t.o Client all materials furnished to ECC by Client, providea that. such materials, when delivered to ECC, 'Were identified in 'a'ritinq as materials which shall be returned to Client." 1 L • 4 1 ,-, 0",<"--.';::'< ,::~~, '. , ,- , i~~~li_~ - SECTION 2. Except as ~odifiad herein by this ,\mend~ent to Basic Consulting Agreement, the terms of the Agreement shall remain in full force and effect. IN WITNESS "'''HEREOF, the 'parties have execut<~.d this Second Amendment to Basic Consulting Aareement at Palo Alto on the date first bereinabove stated. ATTEST: CITY OF PALO ALTO, a municipal corporation Clerk City Manager APPROVED AS TO FORM: ECC, INC., a Virginia corporation Sr. Asst. City Attorney NN~.~m~e~;~==================== Title: APPROVED: Dir~ctor of Utilities Director of Finance 920j21 ryn 001021l ~ . . r ,'1 L... -:. 2