HomeMy WebLinkAboutAgenda Report - October 19, 2005 E-07AGENDA ITEM E•7
&Ift CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt resolution authorizing the City Manager to execute an addendum to the
Professional Services Agreement with Borismetrics, Inc., approved May 4, 2005, to
increase funding to support Electric Utility Department's rate analysis and resource
acquisition needs (;50,000) (EUD)
MEETING DATE: October 19, 2005
PREPARED BY: Interim Electric Utility Director
RECOMMENDED ACTION: That the City Council adopt a resolution authorizing the City Manager to
execute an addendum to the Professional Services Agreement with
Borismetdcs, Inc., approved May 4, 2005, to increase funding to support
Electric Utility Department's rate analysis and resource acquisition needs
($50,000).
BACKGROUND INFORMATION: The Electric Utility Department faces a number of current issues related to
the Department's resource position in a volatile energy market. In part, this
is due to the Hurricane damage to natural gas and petroleum facilities in
the Gulf Coast.
On May 4, 2005, the City Council authorized the Electric Utility Department to hire Boris Prokop through a
professional services agreement with his company, BORISMETRICS, Inc. to perform rate analysis and resource
acquisition needs. BORISMETRICS, Inc. is highly qualified to provide the needed expertise by virtue of its direct
experience and familiarity with the issues facing the City of Lodi and the electric industry.
In order to address the recent issues in the areas of rates and power supply for the City of Lodi and given the rapid
change in the electric utility industry, there is a need to expand the services by authorizing this increase of $50,000,
for a total contract of $90,000. This increase will cover the additional work associated with resource procurement,
rate analysis, rate design and detailed analysis associated with customer frequency distribution relating to energy
use. This funding would carry his work through the end of June 2006. At the discretion of the Utility Director, this
full amount may not be utilized.
FISCAL IMPACT: The addition to this contract will be funded through vacancy savings.
FUNDING: 160603.7323
(-!90es R. Krueger, Finance ITIrector
Prepared By: Mel Grandi, Manager, Electric Services
DD/MG/19t
C: City Attomey
APPROVED:
04-�
David D sham
Interim lectdc Utility Director
, City Manager
ADDENDUM TO PROFESSIONAL SERVICES AGREEMENT
October 13'', 2005
Dave Dockham
Interim Electric Utility Director
City of Lodi
Electric Utility Department
1331 South Ham Lane
Lodi, California 95242
This letter requests an increase in the current contract amount of $40,000 to $90,000 for the
Borismetrics contract passed originally by Council resolution as agenda item E-13 on May 4,
2005. The intensity of work due to proposed rate changes has necessitated this
$50,000 increase.
Thank you for this opportunity
Boris Prokop
Approved by City Council: 10/19/05
Blair King, City Manager
Dated:
Approved as to form:
D. Stephen Schwabauer, City Attorney
Attest:
Susan J. Blackston, City Clerk
P.O. Box 15040 Telephone: 425-922-2853
Sacramento, CA, 95851-0040 Fax: 650-429-2063
Email: bons@borismetrics.com
RESOLUTION NO. 2005-222
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY
MANAGER TO EXECUTE ADDENDUM TO THE PROFESSIONAL SERVICES
AGREEMENT WITH BORISMETRICS, INC. TO INCREASE FUNDING TO
PROVIDE SUPPORT OF ELECTRIC UTILITY DEPARTMENT'S RATE
ANALYSIS AND RESOURCE ACQUISITION NEEDS ($50,000)
WHEREAS, the Electric Utility Department faces a number of current issues related to
the Department's resource position and volatile energy market; and
WHEREAS, on May 4, 2005, the City Council authorized the hiring of Boris Prokop of
Borismetrics, Inc., through a professional services agreement to perform rate analysis and
resource acquisition needs; and
WHEREAS, Borismetrics, Inc. is highly qualified to provide the needed expertise by
virtue of its direct experience and familiarity with the issues facing the City of Lodi and the
electric industry; and
WHEREAS, in order to address the recent issues in the areas of rates and power
supply for the City of Lodi and given the rapid change in the electric utility industry, there is a
need to expand the services by authorizing an increase of $50,000; and
WHEREAS, this increase will cover the additional work associated with resource
procurement, rate analysis, rate design, and detailed analysis associated with customer
frequency distribution relating to energy use for work through the end of June 2006, which may
or may not be ufiiized at the discretion of the Electric Utility Director.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to execute an addendum to the professional services agreement
with Borismetrics, Inc., thereby increasing funding for this contract by $50,000, to cover the
additional work associated with resource procurement, rate analysis, rate design, and detailed
analysis associated with customer frequency distribution relating to energy use for work
through the end of June 2006, which may or may not be utilized at the discretion of the Electric
Utility Director.
Dated: October 19, 2005
I hereby certify that Resolution No. 2005-222 was passed and adopted by the Lodi City
Council in a regular meeting held October 19, 2005, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Hitchcock, Johnson, Mounce, and
Mayor Beckman
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
SUSAN J. BLA STON
City Clerk
2005-222