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HomeMy WebLinkAboutAgenda Report - December 10, 2018 C-07 SMTM CITY OF LODI COUNCIL COMMUNICATION AGENDA ITEM 0-7 AGENDA TITLE: Adopt Resolution Authorizing City Manager to Execute One -Year Extension to Professional Services Agreement with EES Consulting of Kirkland, Washington for Electric Utility Rate Analysis Services MEETING DATE: December 10, 2018 PREPARED BY: Electric Utility Director RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute a one- year extension to the professional services agreement with EES Consulting of Kirkland, Wash., for electric utility rate analysis services. BACKGROUND INFORMATION: In early 2016, the Lodi City Council approved a three-year professional services agreement with EES Consulting in an amount not to exceed $90,000 for Lodi Electric Utility (LEU) rate analysis services through December 31, 2018. Since 2016, EES has assisted LEU staff with multiple rate matters, including the residential rate restructure and development of solar rates under the new Energy Purchase tariff. Approximately $27,000 has been spent to date on these efforts leaving $63,000 available for additional rate analysis services. With ongoing changes in the electric utility industry impacting how customers are charged, and the rate making expertise of EES, staff recommends extending the existing agreement with EES through December 31, 2019 using the existing unexpended funds already approved by City Council in 2016. Continuing to evaluate and update the electric rate structure supports LEU's Strategic Plan efforts to more effectively align costs and charges. FISCAL IMPACT: FUNDING AVAILABLE: Not—to-exceed original approved contract of $90,000. This will not impact the General Fund. Included in FY 2018/19 Budget Account No. 50060001.72450. (1}/ki/G/.) Andrew Keys Deputy City Manager/Internal Services Director Elizabeth A. Kirkley Y Electric Utility Director PREPARED BY: Melissa Price, Rates & Resources Manager EAK/MP/nb Ash Aft &— APPROVED: 71. 6 - Stephen Schwa s - • r, City Manager CONTRACT EXTENSION AGREEMENT EES CONSULTING ELECTRIC UTILITY RATE ANALYSIS SERVICES THIS CONTRACT EXTENSION AGREEMENT, made and effective this day of 2018, by and between the CITY OF LODI, a municipal corporation ("City"), and EES Consulting, Inc., a Washington corporation ("Contractor"). WITNESSETH: CONTRACT: Contractor and City entered into a Professional Services Agreement for Electric Utility Rate Study Services on March 8, 2016 ("Agreement"). A copy of the Agreement is attached hereto as Exhibit 1 and made a part hereof. TERM AND TERMS: City and Contractor agree to extend the term of the Agreement to and including December 31, 2019. a. Compensation payable to Contractor for the period January 1, 2019 through and including December 31, 2019 is set forth in Exhibit 2, which is attached hereto and made a part hereof. b. Section 4.8 of the Agreement is revised with respect to Notice to Contractor to read as follows: EES Consulting Gary Saleba, President/CEO 570 Kirkland Way, Suite 100 Kirkland, WA 98033 c. With the exception of the foregoing all other terms and conditions will remain as set forth in the Agreement. NOW THEREFORE, City and Contractor agree to extend the term of the Agreement to and including December 31, 2019 and to compensate Contractor for services performed during the period January 1, 2019 through December 31, 2019 at the hourly billing rates set forth in Exhibit 2. IN WITNESS WHEREOF, City and Contractor have executed this Contract Extension Agreement on the date and year first above written. CITY OF LODI, a municipal corporation EES CONSULTING By: STEPHEN SCHWABAUER By: GARY SALEBA City Manager President/CEO Attest: Approved as to Form: JENNIFER M. FERRAIOLO, City Clerk JANICE D. MAGDICH, City Attorney AGREEMENT FOR PROFESSIONAL SERVICES ARTICLE 1 PARTIES AND PURPOSE Section 1.1 Parties THIS AGREEMENT is entered into onlylar.Q , 2016, by and between the CITY OF LODI, a municipal corporation (hereinafter "CITY"), and EES CONSULTING (hereinafter "CONTRACTOR"). Section 1.2 Purpose CITY selected the CONTRACTOR to provide the services required in accordance with attached Scope of Services, Exhibit A, attached and incorporated by this reference. CITY wishes to enter into an agreement with CONTRACTOR for electric utility rate analysis services (hereinafter "Project") as set forth in the Scope of Services attached here as Exhibit A. CONTRACTOR acknowledges that it is qualified to provide such services to CITY. ARTICLE 2 SCOPE OF SERVICES Section 2.1 Scope of Services CONTRACTOR, for the benefit and at the direction of CITY, shall perform the Scope of Services as set forth in Exhibit A. Section 2.2 Time For Commencement and Completion of Work CONTRACTOR shall commence work pursuant to this Agreement, upon receipt of a written notice to proceed from CITY or on the date set forth in Section 2.6, whichever occurs first, and shall perform all services diligently and complete work under this Agreement based on a mutually agreed upon timeline or as otherwise designated in the Scope of Services. CONTRACTOR shall submit to CITY such reports, diagrams, drawings and other work products as may be designated in the Scope of Services. CONTRACTOR shall not be responsible for delays caused by the failure of CITY staff to provide required data or review documents within the appropriate time frames. The review time by CITY and any other agencies involved in the project shall not be counted against CONTRACTOR's contract performance period. Also, any delays due to 1 weather, vandalism, acts of God, etc., shall not be counted. CONTRACTOR shall remain in contact with reviewing agencies and make all efforts to review and return all comments. Section 2.3 Meetings CONTRACTOR shall attend meetings as may be set forth in the Scope of Services. Section 2.4 Staffing CONTRACTOR acknowledges that CITY has relied on CONTRACTOR's capabilities and on the qualifications of CONTRACTOR's principals and staff as identified in its proposal to CITY. The Scope of Services shall be performed by CONTRACTOR, unless agreed to otherwise by CITY in writing. CITY shall be notified by CONTRACTOR of any change of Project Manager and CITY is granted the right of approval of all original, additional and replacement personnel at CITY's sole discretion and shall be notified by CONTRACTOR of any changes of CONTRACTOR's project staff prior to any change. CONTRACTOR represents it is prepared to and can perform all services within the Scope of Services (Exhibit A) and is prepared to and can perform all services specified therein. CONTRACTOR represents that it has, or will have at the time this Agreement is executed, all licenses, permits, qualifications, insurance and approvals of whatsoever nature are legally required for CONTRACTOR to practice its profession, and that CONTRACTOR shall, at its own cost and expense, keep in effect during the life of this Agreement all such licenses, permits, qualifications, insurance and approvals, and shall indemnify, defend and hold harmless CITY against any costs associated with such licenses, permits, qualifications, insurance and approvals which may be imposed against CITY under this Agreement. Section 2.5 Subcontracts Unless prior written approval of CITY is obtained, CONTRACTOR shall not enter into any subcontract with any other party for purposes of providing any work or services covered by this Agreement. Section 2.6 Term The term of this Agreement commences on January 1, 2016 and terminates upon the completion of the Scope of Services or on December 31, 2018, whichever occurs first. 2 ARTICLE 3 COMPENSATION Section 3.1 Compensation CONTRACTOR's compensation for all work under this Agreement shall conform to the provisions of the Fee Proposal, attached hereto as Exhibit B and incorporated by this reference. CONTRACTOR shall not undertake any work beyond the scope of this Agreement unless such additional work is approved in advance and in writing by CITY. Section 3.2 Method of Payment CONTRACTOR shall submit invoices for completed work on a monthly basis, or as otherwise agreed, providing, without limitation, details as to amount of hours, individual performing said work, hourly rate, and indicating to what aspect of the Scope of Services said work is attributable. CONTRACTOR's compensation for all work under this Agreement shall not exceed the amount of the Fee Proposal. Section 3.3 Costs The Fee Proposal shall include all reimbursable costs required for the performance of the Scope of Services. Payment of additional reimbursable costs considered to be over and above those inherent in the original Scope of Services shall be approved in advanced and in writing, by CITY. Section 3.4 Auditing CITY reserves the right to periodically audit all charges made by CONTRACTOR to CITY for services under this Agreement. Upon request, CONTRACTOR agrees to furnish CITY, or a designated representative, with necessary information and assistance needed to conduct such an audit. CONTRACTOR agrees that CITY or its delegate will have the right to review, obtain and copy all records pertaining to performance of this Agreement. CONTRACTOR agrees to provide CITY or its delegate with any relevant information requested and shall permit CITY or its delegate access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this requirement. CONTRACTOR further agrees to maintain such records for a period of three (3) years after final payment under this Agreement. 3 ARTICLE 4 MISCELLANEOUS PROVISIONS Section 4.1 Nondiscrimination In performing services under this Agreement, CONTRACTOR shall not discriminate in the employment of its employees or in the engagement of any sub CONTRACTOR on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, age, or any other criteria prohibited by law. Section 4.2 ADA Compliance In performing services under this Agreement, CONTRACTOR shall comply with the Americans with Disabilities Act (ADA) of 1990, and all amendments thereto, as well as all applicable regulations and guidelines issued pursuant to the ADA. Section 4.3 Indemnification and Responsibility for Damage CONTRACTOR to the fullest extent permitted by law, shall indemnify and hold harmless CITY, its elected and appointed officials, directors, officers, employees and volunteers from and against any claims, damages, losses, and expenses (including reasonable attorney's fees and costs), arising out of performance of the services to be performed under this Agreement, provided that any such claim, damage, loss, or expense is caused by the negligent acts, errors or omissions of CONTRACTOR, any subcontractor employed directly by CONTRACTOR, anyone directly or indirectly employed by any of them, or anyone for whose acts they may be liable, except those injuries or damages arising out of the active negligence, sole negligence, or sole willful misconduct of the City of Lodi, its elected and appointed officials, directors, officers, employees and volunteers. CITY may, at its election, conduct the defense or participate in the defense of any claim related in any way to this indemnification. If CITY chooses at its own election to conduct its own defense, participate in its own defense, or obtain independent legal counsel in defense of any claim related to this indemnification, CONTRACTOR shall pay all of the costs related thereto, including without limitation reasonable attorney fees and costs. The defense and indemnification obligations required by this Agreement are undertaken in addition to, and shall not in any way be limited by the insurance obligations set forth herein. Section 4.4 No Personal Liability Neither the City Council, nor any other officer or authorized assistant or agent or City employee shall be personally responsible for any liability arising under this Agreement. 4 Section 4.5 Responsibility of CITY CITY shall not be held responsible for the care or protection of any material or parts of the work described in the Scope of Services prior to final acceptance by CITY, except as expressly provided herein. Section 4.6 Insurance Requirements for CONTRACTOR CONTRACTOR shall take out and maintain during the life of this Agreement, insurance coverage as set forth in Exhibit C attached hereto and incorporated by this reference. Section 4.7 Successors and Assigns CITY and CONTRACTOR each bind themselves, their partners, successors, assigns, and legal representatives to this Agreement without the written consent of the others. CONTRACTOR shall not assign or transfer any interest in this Agreement without the prior written consent of CITY. Consent to any such transfer shall be at the sole discretion of CITY. Section 4.8 Notices Any notice required to be given by the terms of this Agreement shall be in writing signed by an authorized representative of the sender and shall be deemed to have been given when the same is personally served or upon receipt by express or overnight delivery, postage prepaid, or three (3) days from the time of mailing if sent by first class or certified mail, postage prepaid, addressed to the respective parties as follows: To CITY: To CONTRACTOR: City of Lodi 221 West Pine Street P.O. Box 3006 Lodi, CA 95241-1910 Attn: Melissa Price, Rates & Resources Manager EES CONSULTING ANNE FALCON, SENIOR ASSOCIATE 570 KIRKLAND WAY, SUITE 100 KIRKLAND, WA 98033 Section 4.9 Cooperation of CITY CITY shall cooperate fully and in a timely manner in providing relevant information it has at its disposal relevant to the Scope of Services. Section 4.10 CONTRACTOR is Not an Employee of CITY CONTRACTOR agrees that in undertaking the duties to be performed under this Agreement, it shall act as an independent contractor for and on behalf of CITY and not an employee of CITY. CITY shall not direct the work and means for accomplishment of 5 the services and work to be performed hereunder. CITY, however, retains the right to require that work performed by CONTRACTOR meet specific standards without regard to the manner and means of accomplishment thereof. Section 4.11 Termination CITY may terminate this Agreement, with or without cause, by giving CONTRACTOR at least ten (10) days written notice. Where phases are anticipated within the Scope of Services, at which an intermediate decision is required concerning whether to proceed further, CITY may terminate at the conclusion of any such phase. Upon termination, CONTRACTOR shall be entitled to payment as set forth in the attached Exhibit B to the extent that the work has been performed. Upon termination, CONTRACTOR shall immediately suspend all work on the Project and deliver any documents or work in progress to CITY. However, CITY shall assume no liability for costs, expenses or lost profits resulting from services not completed or for contracts entered into by CONTRACTOR with third parties in reliance upon this Agreement. Section 4.12 Confidentiality CONTRACTOR agrees to maintain confidentiality of all work and work products produced under this Agreement, except to the extent otherwise required by law or permitted in writing by CITY. CITY agrees to maintain confidentiality of any documents owned by CONTRACTOR and clearly marked by CONTRACTOR as "Confidential" or "Proprietary", except to the extent otherwise required by law or permitted in writing by CONTRACTOR. CONTRACTOR acknowledges that CITY is subject to the California Public Records Act. Section 4.13 Applicable Law, Jurisdiction, Severability, and Attorney's Fees This Agreement shall be governed by the laws of the State of California. Jurisdiction of litigation arising from this Agreement shall be venued with the San Joaquin County Superior Court. If any part of this Agreement is found to conflict with applicable laws, such part shall be inoperative, null, and void insofar as it is in conflict with said laws, but the remainder of this Agreement shall be in force and effect. In the event any dispute between the parties arises under or regarding this Agreement, the prevailing party in any litigation of the dispute shall be entitled to reasonable attorney's fees from the party who does not prevail as determined by the San Joaquin County Superior Court. 6 Section 4.14 City Business License Requirement CONTRACTOR acknowledges that Lodi Municipal Code Section 3.01.020 requires CONTRACTOR to have a city business license and CONTRACTOR agrees to secure such license and pay the appropriate fees prior to performing any work hereunder. Section 4.15 Captions The captions of the sections and subsections of this Agreement are for convenience only and shall not be deemed to be relevant in resolving any question or interpretation or intent hereunder. Section 4.16 Integration and Modification This Agreement represents the entire understanding of CITY and CONTRACTOR as to those matters contained herein. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by both parties. Section 4.17 Contract Terms Prevail All exhibits and this Agreement are intended to be construed as a single document. Should any inconsistency occur between the specific terms of this Agreement and the attached exhibits, the terms of this Agreement shall prevail. Section 4.18 Severability The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement. Section 4.19 Ownership of Documents All documents, photographs, reports, analyses, audits, computer media, or other material documents or data, and working papers, whether or not in final form, which have been obtained or prepared under this Agreement, shall be deemed the property of CITY. Upon CITY's request, CONTRACTOR shall allow CITY to inspect all such documents during CONTRACTOR's regular business hours. Upon termination or completion of services under this Agreement, all information collected, work product and documents shall be delivered by CONTRACTOR to CITY within ten (10) calendar days. CITY agrees to indemnify, defend and hold CONTRACTOR harmless from any liability resulting from CITY's use of such documents for any purpose other than the purpose for which they were intended. Section 4.20 Authority The undersigned hereby represent and warrant that they are authorized by the parties to execute this Agreement. Section 4.21 Federal Transit Funding Conditions ❑ If the box at left is checked, the Federal Transit Funding conditions attached as Exhibit D apply to this Agreement. In the event of a conflict between the terms of this Agreement or any of its other exhibits, and the Federal Transit Funding Conditions, the Federal Transit Funding Conditions will control. IN WITNESS WHEREOF, CITY and CONTRACTOR have executed this Agreement as of the date first above written. ATTEST: CITY OF LODI, a municipal corporation freA,ta__, ,tleo tux, doh ERRAIOLO S 6.11 1 SCH 111735 ER City Clerk City Manager APPROVED AS TO FORM: JANICE D. MAGDICH, City Attorney EES CONSULTING By' By: Name: ALCON Title: SENIOR ASSOC! Attachments: Exhibit A - Scope of Services Exhibit B - Fee Proposal Exhibit C - Insurance Requirements Exhibit D - Federal Transit Funding Conditions (if applicable) Funding Source: 50060001.72450 (Business Unit & Account No.) Doc ID: CA:Rev.01.2015 8 ,Scope of Work -• Exhibit A The City of Lodi (City) has requested a scope for rate analysis assistance from EES Consulting, Inc. The scope of work for this project has been developed based on the EES Consulting's experience developing financial plans and rate studies for publicly owned utilities. The term for this contract is three years. EES Consulting will perform requested analysis and tasks upon request by City staff. The work to be performed includes, but is not limited to: Analysis of electric billing data Rate comparisons to other California utilities Rate impacts to various customers and customer classes Research related to rate setting and cost allocation for electric utilities Analysis of City revenues and rate options EES will present results and make recommendations to the utility's management staff as requested. The aforementioned scope of services will remain in effect until December 31, 2018. This proposal may be modified with the mutual agreement of EES and the City. SCOPE OF WORK - LODI 1 Compensation — Exhibit B The total budget for this contract is a not -to -exceed time and materials at $30,000 per year for rate assistance. EES Consulting will charge the following billing rates: President $195 Manager/Senior Associate 190 Senior Engineer 190 Senior Project Manager 185 Project Manager 180 Senior Analyst/Engineer 175 Analyst/Engineer 170 Senior Administrative Assistant 120 The aforementioned rates will remain in effect until December 31, 2018. Materials and expenses will be billed at cost. EXHIBIT C insurance Requirements for Consultant The Consultant shall take out and maintain during the life of this Agreement, insurance coverage as listed below These insurance policies shah protect Consultant and any subcontractor performing work covered by this Agreement from claims for damages for personal injury, including accidental death, as well as from claims for property damages, which may arise from Consultant's operations under this Agreement, whether such operations be by Consultant, or by any subcontractor, or by anyone directly or indirectly employed by either of them, and the amount of such insurance shall be as follows: 1. COMPR HEftSIVE GENEijAL LIABILITY $1,000,000 Each Occurrence $2,000,000 Aggregate 2. COMPREHENSIVE AUTOMOBILE LIA$ILITY $1.000,000 Each Occurrence Such insurance shall cover liability arising out of any vehicle (including, owned, hired and non -hired vehicles) operated in performing any and all services pursuant to this Agreement. Coverage shall be written on ISO form CA 00 01 12 90, or a later version of this form, or an equivalent form providing equivalent liability coverage 3. PROFESSIONAL LIABILITY 1 ERRORS AND OMISSIONS $1,000,000 Each Occurrence All limits are to be designated strictly for the City of Lodi, its elected and appointed boards. commissions, officers, agents, employees, and volunteers All deductibles or self-insured retentions (SIR) must be disclosed to City's Risk Manager for approval and shall not reduce the limits of liability set forth hereinabove. Insurance policies containing any deductible or SIR provision shall provide, or be endorsed to provide, that the deductible or SIR may be satisfied by either the Named Insured(s) or the City of Lodi. It is required that any available insurance proceeds broader Than or in excess of the specified minimum insurance coverage requirements and/or limits set forth above, shall be available to City as an additional insured. Furthermore, the requirements for coverage and limits shall be (i) the minimum coverage and limits specified in these insurance requirements; or (ii) the broader coverage and maximum limits of coverage of any insurance policy or proceeds available to the Consultant; whichever is greater. Consultant agrees and stipulates that any insurance coverage provided to the City of Lodi shall provide for a claims period following termination of coverage which is a! leas! consistent with ihs claims period or statutes of limitations found in the California Tort Claims Act (California Government Code Section 810 et seq.). A copy of the certtflcate(s) of insurance with the following endorsements shall be furnished to the City: (a) Additienel Named Insured Endorsement Pursuant to a separate endorsement (ISO form CG 2010 (111$5) or equivalent form) such Insurance as is afforded by this policy shall also apply to the City of Loth, its elected and appointed boards, commissions, officers, agents, employees, end volunteers as additional named insureds. (b) EErimery and Nen-Contributory Insurance Endorsement Additional insurance coverage under the Consullant's policy shall be "primary and non-contributory" and will not seek contribution from City's insurance or self -Insurance and shall be at least as broad as ISO form CG 20 01 04 13. NOTE: (1) The street address of the CITY OF LODI must be shown along with (a) and (b) above: 221 West Pine Streel, Lodi, California, 95240; (2) The insurance certificate must stale, on its face or as an endorsement, a description of the project that it is insuring. Page fl of 2 pages f Risk: rev.03.2014 Insurance Requirements for Consultant (continued) (c) Omits of Coverage The limits of insurance coverage required may be satisfied by a combination of primary and umbrella or excess insurance. Any umbrella or excess insurance of Consultant shall contain, or be endorsed to contain, a provision that such coverage shall also apply on a primary and non-contributory basis for the benefit of the City before the City's own insurance or self-insurance shall be called upon to protect the City as a named insured. (d) ,severability of interest fuse The term "Insured" is used severally and not collectively, but the inclusion herein of more than one insured shall not operate to increase the limit of the company's liability. (e) Notice of Cancellation or ghenge in Courage F„pctorsement This policy may not be canceled nor the coverage reduced by the company without 30 days' prior written notice of such cancellation or reduction in coverage to the Risk Manager, City a1 Lodi, 221 West Pine St., Lodi, CA 95240. (f) Continuity of Coverage All policies shall be In effect on or before the first day of the Term of this Agreement. At least thirty (30) days prior to the expiration of each insurance policy, Consultant shall furnish a certificate(s) showing that a new or extended policy has been obtained which meets the minimum requirements of this Agreement. Consultant shall provide proof of continuing insurance on at least an annual basis during the Term. If Consultants insurance lapses or is discontinued for any reason, Consultant shall immediately notify the City and immediately obtain replacement insurance. (g) Failure to Comply If Consultant fails or refuses to obtain and maintain the required insurance, or fails to provide proof of coverage, the City may obtain the Insurance. Consultant shall reimburse the City for premiums paid, with interest on the premium paid by the City at the maximum allowable legal rate then in effect in California, The City shall notify Consultant of such payment of premiums within thirty (30) days of payment staling the amount Paid, the name(s) of the insurer(s), and rate of Interest. Consultant shall pay such reimbursement and Interest on the first (1) day of the month following the City's notice. Notwithstanding and other provision of this Agreement, if Consultant fails or refuses to obtain or maintain insurance as required by this agreement, or fails to provide proof of insurance, the City may terminate this Agreement upon such breach. Upon such termination, Consultant shall immediately cease use of the Site or facilities and commence and diligently pursue the removal of any and ell of its personal property from the site or facilities. (h) Qualified insurer(s) All insurance required by the terms of this Agreement must be provided by insurers licensed to do business in the State of California which are rated at least "A-, VI" by the AM Best Ratings Guide, and which aro acceptable to the City. Non -admitted surplus lines carriers may be accepted prn,)uied they are included on the most recent list of California eligible surplus lines insurers (LESLI list) and otherwise meet City requirements. Workers Cgmnensation lnsuranc@ The Consultant shall take out and maintain during the life of this Agreement, Worker's Compensation Insurance for all of Consultants employees employed at the site of the project and, if any work Is sublet, Consultant shall require the subcontractor similarly to provide Workers Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Consultant. In case any class of employees engaged in hazardous work under this Agreement at the sIte of the project is not protected under the Workers Compensation Statute, the Consultant shall provide end shall cause each subcontractor to provide insurance for the protection of said employees. A waiver of subrogation is required for workers compensation insurance. This policy may not be canceled nor the coverage reduced without 30 days' prior written notice of such cancellation or reduction In coverage to the Risk Manager, City of Lodi, 221 West Pine St., Lodi, CA 95240. NOTE: The City reserves the right to obtain a full certified copy of any Insurance policy or endorsements required. Failure to exercise this right shall not constitute a waiver of the City's right to exercise after the effective date. Page 2 1 of 2 pages Risk: rev.03.2014 Compensation — Exhibit B EES Consulting charges the following billing rates: President $200 Senior Associate 195 Manager 190 Senior Project Manager 185 Project Manager 180 Senior Analyst/Engineer 175 Analyst/Engineer 170 Senior Administrative Assistant 120 The aforementioned rates and scope of services will remain in effect until December 31, 2019. Materials and expenses will be billed at cost. SCOPE OF WORK- LODI 1 C-7 Jennifer Ferraiolo From: Jennifer Ferraiolo Sent: Monday, December 10, 2018 1:55 PM To: Spencer Rhoads Cc: City Council; Steve Schwabauer; Andrew Keys; Janice Magdich; Elizabeth Kirkley Subject: RE: Agenda Item - C-07 Questions Thank you for your email. It was received by the City Council and forwarded to the City Manager's office and Electric Utility Department for information, response, and/or handling. In addition, your correspondence will be provided to Council as a Blue Sheet item for tonight's meeting. Jennifer M. Ferraiolo, MMC City Clerk P.O. Box 3006 Lodi, CA 95241-1910 (209) 333-6702 (209) 333-6807 FAX From: Spencer Rhoads [mailto:ssrhoads99@gmail.com] Sent: Monday, December 10, 2018 1:52 PM To: City Council <CityCouncil@lodi.gov> Subject: Agenda Item - C-07 Questions Hello All - I do have some questions about tonight's agenda item C-07. The city entered an agreement with EES consulting in March of 2016 to provide the following: An analysis of electric billing data Rate comparisons to other California Utilities Rate Impacts to various customers Research related to rate setting and cost allocation for electric utilities Analysis of city revenues and rate options As we all know by now, there is a lot of misinformation floating around regarding our electric utility and our rates in comparison to other companies. I know we aren't as cheap as SMUD, but are cheaper than PG&E, but there is no information to back anyone's claims, even on the city's e -records portal and the utility's website. Is the reason that a lot of this information isn't public because of Section 4.12 of the contract which establishes Confidentiality, meaning all work and products produced by the contractor are confidential? In addition to the above-mentioned list of services, might I suggest adding another service to the list: a comparison of rebates provided by other utilities. If that's already included in one of the previously -requested analyses, forgive me. I'd also like to know if you intend to spend the remaining $63,000 of the contract in its entirety over the next year. I hope not, as 2.5 years cost the city only $27,000. 1 But before agreeing to this contract extension, I was hoping someone could shed some Tight on the results and reports that have come from our agreement with EES Consulting over the past two years. Thank you. - Spencer Rhoads 2 RESOLUTION NO. 2018-235 A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE-YEAR EXTENSION TO THE PROFESSIONAL SERVICES AGREEMENT WITH EES CONSULTING, OF KIRKLAND, WASHINGTON, FOR ELECTRIC UTILITY RATE ANALYSIS SERVICES WHEREAS, on March 2, 2016, the Lodi City Council adopted Resolution No. 2016-30, approving a three-year Professional Services Agreement with EES Consulting for rate analysis services through December 31, 2018, in the amount of $90,000; and WHEREAS, since 2016, EES has assisted Lodi Electric Utility (LEU) staff with multiple rate matters, including the residential rate restructure and development of solar rates under the new Energy Purchase tariff; and WHEREAS, approximately $27,000 has been spent to date on these efforts, leaving $63,000 available for additional rate analysis services; and WHEREAS, with ongoing changes in the electric utility industry impacting the manner in which customers are charged, and the rate making expertise of EES, staff recommends extending the existing agreement with EES through December 31, 2019, using the existing unexpended funds already approved by City Council in 2016; and WHEREAS, continuing to evaluate and update the electric rate structure supports LEU's Strategic Plan efforts to more effectively align costs and charges. NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby authorize the City Manager to execute a one-year contract extension to the Professional Services Agreement with EES Consulting, of Kirkland, Washington, for electric utility rate analysis services through December 31, 2019, using the existing unexpended funds already approved by City Council in 2016. Dated: December 10, 2018 I hereby certify that Resolution No. 2018-235 was passed and adopted by the City Council of the City of Lodi in a special meeting held December 10, 2018, by the following vote: AYES: COUNCIL MEMBERS — Chandler, Johnson, Kuehne, Mounce, and Mayor Nakanishi NOES: COUNCIL MEMBERS — None ABSENT: COUNCIL MEMBERS — None ABSTAIN: COUNCIL MEMBERS — None NIFER[►u. FERRAIOLO City Clerk 2018-235