HomeMy WebLinkAbout0309.092-
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June 18 t 1992
THE HONORABLE CITY COUNcrL
Palo Alto, California
21 22
Consultant ServiCE Agreements related to cpuc Gas util~
Pr9cf94 i pgs
Members of the council:
This report requests that Council authorize the Mayor to execute
the attached aqreements with Recon Research corporation {RECON)
and Mr. Patrick J. Power in the amounts of $130,000 ana $15,000
respectively~ In addition, a~thori~ation is r~quested for
contract amendments in the amount of $20,000 and $2,Z5C
respectively, to provide for unforeseen additional regulatory
hearings. 80th contracts are to provide' specialized consulting
services on qas utility matters before the California Public
utilities commission (cPUC) during FY 92-93. Both consultants
are presently under contract to assist the city in the CPUC gas
proceedinqs dllrinq F'i 91-92 ~ These CPUC proceedings will
continue into the upcoming year, and services of both consultants
vill be required. The new agreements will be effective through
June 30, 1993.
DiSCUS$iop
During Fiscal Year 1991-92 and in previous Jrears, RECON has
advocated the City's interests at CPUC hearings on relevant gas
issues. During the last year, new hearing~ were opened by the
ePee. Notably these include Long Run Ma~inal costs (LRMC) ,
intrastat~ pipeline issues, and gas storage issues. In addition,
interstate pipelines serving California have initiated se~tlement
meetir,gs in responsE': to Federal Energy Regulatory Commission
(FERC) Order 636.
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C,)Osultant Service!'! tqr r'{ 92-;n~
Durinq FY 92-93, the City will continue to participate in the
CPtJ'C .and FERC gas proceecHn~fs which are relevant to our gas
procurement~ Important issues include, but are not limited tOI
cost allocation I storaqe rights, intrastate and interstate
transportation costs and rights. As a re8-ult of the FERC order
636, LRMC, and the hea~inqs on storage and intrastate
trans~issionr ~e expect the regulatory arena to be as intense or
more so in FY 92-93 as it was this last year. It is important
that the City's interests be advocated in tM~se regulatory
proceedings. To this end. the city will present its own
witnesses, cross-examine PG&E wit.nesses, submit briefs, file
p~titions and take other actions as necessary to advance its
needs.
Reliance upon consultants with expertise in CPUC ~atters is
necessary~ due to the complexity and extent of technical and
procedural issues involved in these hearings~ The consulting
field is very narrow ~ith respect to specialists in CPUC gas
requlato~ matters. The City has been fortunate to have the
highly regarded services of RECON and Mr. Power. Both
consultants are among a relative few ~ho have been closelY
involved in the development of the CPUC's regulatory program
since 19S4~
'I'bese consultants· efforts have substantially aided the City to
obtain gas riqhts and to facilitate sta£f's understanding of
critical issues. RECON has been a~ advocate for the City before
the CPOC for many years now a~d has a cottprehensive understanding
of the City's economic and regulatory needs. Mr. Power, a former
CPUC Administrative Law Judge, presidt!!d over tha transportation
proceedings and brings invaluable knm .. ledg.e, experience and legal
expertise to the City's effort~ 60th have informed us that they
do not generally represent other parties where it would result in
a conflict of interest with representation ot the City of Palo
Alto. However, in any instance in which either the City or the
consultants feel that conflicts mayor .rill arise, they have
agreed to recommend alternative advisors to the City for that
particular proceedinq. At this time Mr. Power is being used in
an advisory role rather than as an advocate of the city 1 s
interest; however, he would abide by conflict of interest
guidelines if a conflict arose.
The Current ag~eements expire June 30, 1932. Approval of the
attached agreements will renew the contract relations through
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June 30, 1993. Mr. Power!s FY 92-9) contract is for $15,000.
RECONTs FY 92-93 contract is tor $130,OOO~ Both contracts
provi~e contingencies for unforeseen regulatory activities~
Contingencies must be authorized by the City Manager.
EeCQmrnendations:
staff recommends that Council approve the attached agreecents
with REC~N Research Corporation tor $130,000 and Mr4 Patrick J.
Power for $15,000 to provide consulting servic~s in FY 92-93 on
mattere before the california Public Utilities CO~~is6ion. In
addition, approval is requested for contract amendments in the
amounts of $20#000 for RECON and $2,500 for Pat.rick Politer to
provide for unforeseen additional work on additional regulatory
hearings.
Respectfully ,submitted,
L.,~~tt.,-\~\--__ ~
BLAKE ~ITZHAN '
senior Power Engineer
~~j' -t. ~f>'h'--7
RICHARD L. YOUN'" ,/
~rector 0 ~ilities ,
er
Attachments: Short Form Agrgement -patrick J. PQ~er
Short Form Agr~ernent -RECON
ClOulOt,n
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I
o AGREEMENT NQ,
• CONTRACTOR S!~ll Mav!n!:: :oA Fl.JRt.iSI-i T~E FOllOWING S"EC~FIED SE~VI(;(5 .Io"DdJR M", TERIAL$ SPi;::i~IEJ I~ ;:""I2.:T __ _ ________ ,
ATT~PklFlt-jC-,lU\ID~TEOh=REINs\'nliSr!!;:"£RE'~CE Ser'llices shall be und{'rtaken by Reccn's principa
staff whose ~nique quelificattons are re~ied ~pon to represent the City before the ~alifDrnl(
Public Utility O::ol1ll11s;sicn (CPUC). S-=-rvic.es will be provided i~ regard to essential CPUC
proceedings regarding gas transpo'rtet~o!1 and gas procurem~nt as wen as ar'ldiysis of other
proposals which oetennirte no,., the City crJr!clucts its gas busirlcss. CITY is relying LIpan the
services of Dr. Andrew 5afir. who is unfquely qualified to serve under this Agreement as
• EXHIBITS TfJf K>liOWING .... n,.,O'Hl EXHIBITS HE~f8Y ARE; MA~( PAAr Of Tj1IS"(",REE. ... ~NT City's (rUC repres:er.tative.
EXHIBIT A --Attachment A -Compensation
-Conflict of Inter€st"
• TERMS THE SHNlCES AA'l).QR YATE,;I .... LS ~R:-.15n£D U~iD['" ih.5 AGRE'EMENT SHAH COWI.E~Cf. 0-. __ Ju 1 y 1, ~ 9~?~
AND SH.Alt 8€ CQt,jP<.ETED BfF","E --.il2 .. G~}O. 1993
• COMPENSA TlO N FOR THE FULL P[RF~MAr,c<: c .. " n-riS "'G.'H:[ME-"'l7 .e CO'Y SHALl PA'I CON1AACTOI"I
... :"":.. YMENT R ECOR D (ClEFA~TMEm LISE REVE.r;;SE S:~e.1
• GENERAL TERMS AND CONDfTlONS <eE 'W''-\'UDED ON BOn< $'OES Ol' ''<is OOCWEtn
THIS AGREE"MEHT StiAlL BECOME EFFECTIVE. UPON ITS ~PPi'lOVAl AAD .E),'"E(;"l.JTID~ 1lY CITY. IN WITNESS T;~ER£OF, mE PARnES ftAVE EXECUTED TK=S
J.GREfMENT T~E DAY, MOHTH, AND YEAR FIRST WRITTEN .tUIG'o1
HOIll HlJIMlW. COfoITRACTOFI ~tee'l in :.Il>:!err,nr/y, del!lld an~ h(;la: ~.rmle5s C1TV ~ a~,,~,> oIQen1:!l, 3nd emD~J'i~s rram 11l\' ~rld i!1 .:!ema.'1d$, clal ms ~·Ii.illilifl' ,:IT
ar.y r\lture, :rocJ(Jiflnll wroo.gI"1 tk'ilt~. CillI~~d' ~~ or .iiising c;lrt af CD.'oIn;).Crml S. rt.I. <In'C~ls' • .!QAnr, 0' er>'p!~' :1el<li,;jer.t acts., erlar:.,::,~ ~:1'!!s::;io~:s or willful
m~~lkct Of C(}I',(!'uct ror "fo'I>.\ct 'ct',f ~ \mllQ~ ~r.~ ii;,t,\;\I:i ~~ CC~'r?:a.C,TDP; ,n :,:,,~ ct'1cfC" .... nc'<-fl' f~\"u~ tc ~\'furm ',II,S 3,"rttm~~~ tiy CQijT'i\AC'rQ;;\
iHTlRE AG!UIMEJ(l'. N. a~r~l11Em if4.tN terms inC CIln~.%l..~&.f'.:..te.rz.~· rf'or~r.~t me ctlff Jgl"'le."nen! ~"".,~~~ th~ p~C:,e~ w:ti1 re$::.<.!:~ 1C tile p';r'~hos~
:lOd ~~ a! Ole fq(Jipmtf1t, m~rer.Jls 0 SUppr1e~ (i' p<l:j,-:1"tnl fnr s~r.~ce5 :,io';,,~~ m3!'!!-) ~,,! S~~lf:t 'J!' l~!S co;:.lr .. C"! 11:1 rnQr .!~re,-rnf:'1:s r~pr"~eNir!:,ns .ltatl'm~ll!S
. ~U~<Il:!S ~rJ(j unw,aJ;'I'1t1S ~r~1 eral 0' wrrttef1 ~tl! 'Su~,-:;IJ,jed ntre!.>y
• PROJECT MA.NAGER ,o..N("'F\~~Rt:3r:I'!"kTM:F~crn CONTRACTOR
lJtiljtjesLfrter"y Plaoni"~ ____ _ -fI1. E-_____ ...... _
po. BOX ;02500 SOCIAL SECUF1ITY
PAl..O ,t,LTO, CA "94lO'3
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EXHIBIT A
A TT.U:HMK"'T 'A'
RECON RESEARCH CORPORATION
Inly 1, 1992 to hoe 30, 1993
Short Form Agreement
COMPENSATION: CITY .hall pay CONTRACfOR Monthly based on written
im,oices for services rendered, not to exceed $185 per hour for the
se.rvi.ces of RECON's principal staff. Less complex ~ervices. or
services provided by associates, shaH be billed at RECON's current
rales, ranging from $6() per hour to $185 pcr hour, Compensation
under this AgreemeIJt shall not exceed $130,000. The City reserves
the right to limit its contract obligations to less than the full
compensation.
Page I of 3
EXIllBIT • A "
Hourly and On-Site Rates
The price of RECON cnnsulting services varies depending upon the level of
sophis~ication required to complete the task. As of June 5, 1992, RECON project costs
are, compm.ite of the fOUO\','iIlg ra!es;
Dr. Andrew Safu:
Principal Staff:
Senior Staff:
Senior Economist:
Senior Analysts:
Staff Assistance:
Principal S,aff:
Senior Staff'
Senior Economist:
Senior A.nalysts:
Office Rates
SIBS/hour
S!70jhour
$140jhcur
$llOjhour
$ 6O/hour
$ 60(hour
.QD-Site Consultation
""".""""",,,,""" Sl,700jday
"".""""."", ,,'"'' $l,400jday
"" ~1.lOOjday
.. , $ 900/day
Travel ar:.d lodging expenses for on-site consultation v.ill be charged separately. however,
such charges shall be included in the maximum amount payable under this Agreement.
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EXHIBIT A
A IT .... CtL'>fENT • A'
CONFLICT OF INTEREST:
RECON sball noe knowIngly undertake before the CPUC
represeotation of clients whose interests confHct with the interests of
Palo .4Jto i.:l tbe proceeding, unless Palo Alto hac; gi ... -cn its prior
written consent tlJ the conflicdng representation. r.n the event Palo
Alto refuses sllch consent, RECON shall not undertake the
confljcting representation unles.\ and until each of the fono~1.ng has
occurred: 1. RECON has arranged for alternate representation for
Palo Aho in the proceeding and 2. PaID Alto has agreed to accept
such alternate represen~tion. Moreuver. RECON has agreed nut to
knowingly undertake conflicting representation without priur
(:onsu:itation ,,1th City.
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It.t~~ .'_. __ ." .....
~ .? AGREEMENT
t~O""T!;: TO ae: €~Er(tn BY THIS AGREEMENT w.cE AADEN"'t:.REvlN'TQ c.-. lei£' _______________ 0 .... ,' Of' ~~_ BY Cl7y PUI'fCHASlNG
!!II' AND 8€"lWEf~ TH': CITY OF PALO Al TO (~fJ~<=,'..;,\f_-,E.R .R£n::~FiEC: TI) AS C!TY, A",;:;
(~III) _....E.ALfti.cU..L_~ ___________________ ~ __ (2i _______ _
r_~OA[$SI 21 OJ We b s t PL.S..t.r:e.e.1,LnS_uit..e_15JlO_ ~c I":',; _~!An5i.LS:_A .. __ 'ZIP) ~5 i 2 -~-~;; ~ 4 6-77 ~-!
1""'Rl::INMl"::R ~EF.ERRE:O TO AS CONTRACTOR) I~ C~SfDEAA'l'I""'· Of' Tf'1~!P M\.rrU"'l CrWHIM(1's, T.,E ""FiHS HE 'U:: iC AG~E:E ~s Fm.l ow'S
• CONTttACTOR S)oIAU ?"OVIDE CRI'l]!'IN'ISM1'H£ FO'..i.'JWIN';; s.PE:C:H~:pS.El1~I~Ec~~",.p'o" M"'":EA,"",-S "o"EC1>=:'O:DIX[:1i\-mWI" --......-,.r.---.
.... nACHEDHERETCANcrNCoqpoo .. Tml-'<;:RE~"'Byr.HIS~.EFE:HE.-.cE. Sel"',,!ces 5nal t be undertaker; by PatrlcJ. ,..'Dwer on
whose lJ(lique qu.a1ific.atians the City is relying. lega1 ".ld ccnSl11Hticr'1 services will be .
provided in cDnnection with Ht~ City's gas transportation rate. wholesale nite. and analjSl:
of regulation proposals bef'Ol"'E: the California PlJbliC Utilities C01TlT11'5sion ar'ld on gas tra~s
portation matters directly with Pacffic Gas and Electric Company. Additio~al services ~117
be provided regarding gas lcqulsiti<Jn and prOClJrement matters for the City's uti!ities.
• EXHJBITS n-rE FOU~Arr,l,GH!:De:)'HjM::;;HEREB',' ,I,,"E woe p.,,.r:y r .... ISAc;. .. H;~E.NI This ag!"'eement shill I supersede
EXHIBI1 A --Attachment A -Compensatiun Contract No. S2026190.
~ Confl let of Interest"
• TERMS ?HE SERVIC€S 4NO.rOR t.I"n:RtALS ~'!J~iISHED tJNDt;;.R TH~S .... (j.REeMENT SI-I"Li. {,()U~eNCE ~ __ _ J_li 1 Y 1 t 199.c 2"-___ _
A.IfO$l{AUBl:COMPlETEOaE;:oRE June 30. 1993 ___ _
• COMPENSA nON FOI'I Tf-IE FUU. P.ERF!J,.'1M ..... CE Of .,"HS .G,"E.E~ENT e CIT'( sw.i.L PAY COOTfcACTOR
o C;Oh'T'RACTOR SI-W..L F!W CITV
.. PA YMEHT RECORO !DE,PAA1'"~!:NT USE A,,=',IEASE SIC£)
• GENERAL TERMS A.."rID CONDITIONS ARE 'NGLUOEO ON &O~ SIDES ~ 111iS DOCUMENT"
TH~S AGRfEME,,"" SHAL.lSECOME EFFECTI\'f Uf'D~ ITS AFPFWVAL AND EXIC,rr!r)i'I ill, em.!N wn~E5S fl'lfRlOF" THE PM!:1!ES HAVE f:K'ECUTE;) 11115
AGAEfMEJjT W CAY, MOlffH, AND I"EAP F!RST Wfi:i7TfN A30VE
HOlD MRtflfSS. CO~"TRACTOR .Qr~ !t;; indemnify, C!1!f!~1! and hclC: il~rml~."!> CIT!'. I~ atrlC(lr;, ~~nts, a~ ~rc,~"1'ff:; ;:Qof1l an'{ a1'c! all c1fmands, :l.!irn~ or ih"l!:lI:I~,' It"
arrj nrll'r!, ir;c:ilJdj~ 1fT'Jnwf1J1 ~11'1. calY...w b\, or ;fri$ing /Jl.I1 oj COf,jTRACT:)~'S, rts C"'C!f~;' .ag~~~. (II ~n;"I.:lIU5 ~e!)I'~t"t ocls trl!)I,," (lr t)1T11~;8n~_ (II" \Io~i!~:.I1
mScor-.dIlCt, 0;-ct:IlDOCi fOr W1T'l:~ ~ laW' 'mposes $-tric: 1w"lill' on COr(TAAC fG'R j~!,,!~ perl" r'"'\!nc~ 01 ~!I~U r~ n' p~;1'O:'1':' ~rs 3g r.etrrrtnl ~,' ':OI~TRACT0M:
EIm:RE AGItEEJteKT" nus a,;,.r,,;e~r:t 1M trw 'r'mSl.'1i1_<;&n1.-MS (l~ '*'e '0)" :~ reilleserv Cl,~ ";r'(, ~ .\~ri':'t'l"_!q ~~,""~r t'".P c;!r"e;;. "'11:", i"t'i.)li'.('.: t.::; ~.~ ? .. i';'~U
an.d sale elf ~ tq.lrp:neflt, fJl .. i~r'iLl~ or ;u~plles or ~l'jrnm~ to: ~ervjces 'oI'~IC~ :7",,)1 ~!tr SL;'lt~ -:J' I~,$ ';;0'1: "a,1 .a.j' ;.'IQr il:r~n:pl1:--S, r~p'15en:..tlt"-:S, s:"~m8~rs,
rte~jOM .and u:l\!~~r~s .mettler 0,"11 ()1 llifl::ttn al-.;! SUfler wj~d" !lmlr,
• PROJECT MANAGER .2JoI~Rep'1l::so.:i'<!l\rrV[<=aFlcnv CONTRACTOR
P£PT
Rona'd P. B.'.:.'''-.,'-___ _
Ut i 1 ; ti e$l£ne~_91_~l anr.i n~
PO BOX 10zs0
PALO AI. TO, CAo 94-.">03
Tv1e¢lor>e _nL415J 3'i9-2297
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SOCIAl.. SE:CURIr¥
(Ji11,;,S I\jU~BE~ _________ _
• INVOICING SE'<O ".u I'HIIQICC:5 TO Tf-IE. C~TV !" rT" P"lOJ(CT i<lA"AG~A
• CITY Of PALO At TO APPROVALS: I~OU"E F[}P SIG .... TL:RESACC!JR.PI ... G, ro NU~BE"F<S 'N.oIrPPRQ""L BOXES SHOW)
I'Clryo)tp~<n-.;ENT Ofijo.l0s!:~;~td8e<:< l "IS, ""-~ --rii-A~f __ m___ -Fc~,,":; oJ C'1i'j.~~;JS;WJ~11
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1" ______ -.L~ -h_.JJlL -_____ ~) __ -__ i
_..!_0\1:1'11I5 000 REQUIRES EO'\' r.tA-"tAm:~ S SIO'"<A!~E I~ J I'E:~ S2S (KJC Rt:{.)UIRES MA rOt' Aml CIT!' A n~~p;~s _ ~
C:!~OF "".LLl "LTC." oI.mST ,iJ'Pf!Q'vEC; A.S ra fORM j
BY e~ _"_ _ ___ i
8TY~1t lU.y~_ ___ _ CITYru'li-----",,--:;::r'Of;NE" I
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EXHIBIT A
ATf ACHM~:\'T .,;..
P.HRlCK 1. POWER
July 1. 1992 to June 30, 1993
Shan For:n Agreement
COMPENSATION; em' shali pay CONTR",crOR: Monthly based on written
invoices for services rendered, not to exceed $185 per bour for the
services of Patrick J. Power. Less complex :otervices shall be hilled
ranging from S60 per bour to $170 per bOLlT. Compensation under
this Agreeme,nt shall not exceed $15,000. The City reserves the
right to limit its contract obligation to less than the fuU
compensation.
CONFLICT OF 1l''TEREST:
Patrick 1. Power shall not knowingly undertE ke before the cpve
representatiorJ of clients whose interests conflict with the interest~ of
Palo Altu in the proceeding. unless Palo . ..&Jto has gi\'en its prior
written c()n.~nt to tbe conflicting representation. In the event PaIo
.bJto refmes. such COn5e".!. Patrick J. Power shall not undertake the
confli<..1ing representation unles.s and unti1 each of t be follov..ing has
or.::curred: 1. Patrick J. Power has arranged for alternate
representation for Palo Alto in t3e proceeding and 2, Palo Alto has
agreed to accept such ark-mate repre~~tation. Moreover, Patrick J.
Power has agreed not to kIlO"'lngIy undertake l."nnfliC'lin,ll:
representation without prior cOIL'\.CUdation Yl-1th CITY.