HomeMy WebLinkAboutAgenda Report - March 19, 2003 E-08CITY OF LODI
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COUNCIL COMMUNICATION
AGENDA TITLE: Adopt resolution authorizing the City Manager to extend the consulting services agreement
with Borismetrics to provide professional services to the Electric Utility Department in the
amount of $55,000 at a reduced billing rate from tete original contract (EUD)
MEETINGATE: March 19, 2003
PREPARED Y: Electric Utility Director
RECOMMENDED ACTIW That the City Council adopt a resolution authorizing the City Manager to
extend the consulting services agreement with 3orismetrics to provide
professional services to the Electric Utility Department in the amount of
$55,000 at the reduced billing rate.
BACKGROUND INFORMATIW The Electric Utility Department faces a number of issues related to the fast
paced and volatiie energy industry, which require professionW assistance in
carder to efficiently, manage and position the utility through this transition
period.
The Electric Utility Department has hired Boris Prokop through a consulting agreement with Borismetrics, to perioral
the management and higher analysis duties of the former Business Planning and Marketing Manager and the former
Dates and resources Manager. BORISMETRICS is uniquely qualified to provide the needed expertise by virtue of its
direct experience and familiarity with the issues facing the City of Lodi and other California electric utilities.
The services that Mr. Prokop has provided under the current contract have proved to be very beneficial to the Electric
Utility Department. The need and value of the services are even more necessary during this environment of California
electric industry uncertainty. At present, he is assisting in the evaluation of NCPA related issues such as ISO billing
and power contracts. Also, he is assisting with the implementation of changes to large customer contract rags. In
carder to preserve the continuity of his knowledge in the areas of rates and power suppiy for the City of Lodi and. given
the rapid change in the electric utility industry, thea is a meed to maintain the services by extending the contract and
appropriating $55,000 for Borismetrics services.
Mr. Prokop reduced his billing rate by 15% from the original Borismetrics contract, which is highly competitive, This
budget change would carry his work from February 2003 to June 2003. At the discretion of the utility Director, this full
budget extension amount may not be utilized. The budget for the two positions, which Boris Prokop is replacing, is on
the order of $260,000 at a minimum.
FUNDING-. 160603.7323
Funding Approval:
Vicky thie. Finance Director
ANN/1st
C: City Attorney
APPROVED:
Finance, Drector
AlanN. Mallow ..
Electric utility Director
This current consulting services agreement between BORISMETRICS, (hereinafter
"BORISMETRICT) and the City of Lodi, Electric Utility, whose place of business is
located at 1331 S, Ham Lane, Lodi, CA 95242 (hereinafter "CLIENT") for the project
generally described as Rates, Cost of Service and Power Supply assistance. is
extended by Lodi City Council Resolution 2003- dated March 19, 2001
The extension has an increased budget of $55,000 above the original contract budget,
All other contract provisions are unchanged except the hourly billing rate for principal
has been reduced from $120/hr. to $100)hr.
By:
Bods Prokop, Prindi-pal
Nr
By:
H. Dixon Flynn, City Manager
Date. Date:
By-,_
Susan Blackston, City Clerk
RESOLUTION NO, 2003-40
A RESOLUTION OF THE LODI CITY COUNCIL AUTHORIZING THE CITE'
MANAGER TO EXTEND THE CONSULTING SERVICES AGREEMENT WITH
BORISMETRICS TO PROVIDE PROFESSIONAL SERVICES IN THE AREAS OF
ROWER SUPPLY AND RATES TO THE ELECTRIC UTILITY DEPARTMENT
WHEREAS, the Electric Utility Department faces a number of issues related to the fast -
paced and volatife energy industry, which require professional assistance in order to efficiently
manage and position the utility through this transition period; and
WHEREAS, Boris Prokop was hired through a consulting agreement with his company,
Borist etrics, to perform the management and higher analysis duties of the former Business
Planning and Marketing Manager and the former Rates and Resources Manager; and
WHEREAS, I oarisrnetrics is uniquely qualified to provide the needed expertise by virtue
of its direct experience and familiarity with the issues facing the City of Lodi and other California
electric utilities; and
WHEREAS, the services that Mr, Prokop has provided lander the current contract have
proved to be very beneficial to the Electric Utility Department. The need and value of the
services are even more necessary during this environment of California electric industry
uncertainty. At present, Mr. Prokop is assisting in the evaluation of Northern California Rower
Agency (I CFIA) related issues, such as Independent System Operator (ISO) billing and power
contracts, and is assisting with the implementation of changes to large customer contract
rates: and
WHEREAS; in order to preserve the continuity of his knowledge in the areas of rates
and power supply for the City of Lodi and givers the rapid change in the electric utility industry,
there is a need to maintain the services by increasing the contract budget by an additional
,000,00, which may or may not be utilized and will be at the discretion of the Electric utility
Director, This would carry his work from February 2003 to June 2003.
NOW, THEREFORE, BE IT RESOLVED that the Lodi City Council does hereby
authorize the City Manager to extend the consulting services agreement with Borismetrics to
provide professional services in the areas of power supply and rates to the Electric Utility
Department at a coast not to exceed 5,000,00.
Dated. March 19, 2003
I hereby certify that Resolution No, 2003-40 was passed and adapted by the Lodi, City
Council in a regular meeting held March 19, 2003, by the following vote:
AYES: COUNCIL MEMBERS — Beckman, Hansen, Land, and Mayor Hitchcock
NOES: COUNCIL MEMBERS -- alone
ABSENT-, T. C UNCIL MEMBERS — Howard
ABSTAIN; COUNCIL MEMBERS — Noone
SUSAN J. BLQ+CK TON
City Clerk