HomeMy WebLinkAboutReso 92-449 - Approve & Authorize the mayor to sign Professional Serv Agreement NO. 102092 between the COR & Henwood Energy Services, Inc relating to COTP Litigation Support & Liason Activity 1
RESOLUTION NO.
i A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND AUTHORIZING THE MAYOR TO SIGN
PROFESSIONAL SERVICES AGREEMENT NO. 102092 BETWEEN THE
CITY OF REDDING AND HENWOOD ENERGY SERVICES, INC.
j RELATING TO COTP LITIGATION SUPPORT AND LIAISON
ACTIVITY, IN AN AMOUNT NOT TO EXCEED $59,000.
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WHEREAS, City Council has received notice that the Federal
Energy Regulatory Commission (FERC) has unexpectedly established
'! an expedited proceeding to start by October 23 , 1992, and be
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completed by July 1, 1993, for the three rate cases dealing with
the interconnection and use of the California-Oregon Transmission
Project (COTP) ; and
WHEREAS, in the expedited COTP proceedings, FERC will
establish how the Transmission Agency of Northern California
'i (TANG) , TANC' s members, the Western Area Power Administration
(Western) , and the other COTP participants can utilize the COTP
for future power transactions; and
WHEREAS, the Electric Department believes that in order for
Redding to maximize its benefits from the COTP, Redding must
actively participate in the FERC expedited proceedings and
present Redding' s position on the right to use the COTP; and that
4 Redding' s COTP investment would best be protected by obtaining
immediate consulting assistance whereby the consultant would
assist in case review; discovery preparation, review, and
response; and preparation of direct and rebuttal testimony before
FERC in Washington, D.C. ; and
WHEREAS, due to the time constraints imposed by FERC, staff 1P
i recommends that the City' s Policy No. 1501 be waived; and
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WHEREAS, Henwood Energy Services, Inc. (HEST) of Sacramento
has developed an understanding of Redding' s electric resource
plans and contractual positions; and
WHEREAS, HESI employs an individual who was previously
employed by Western in contract development and. has FERC
procedural experience, which would be very beneficial in liaison
activities with Western regarding the COTP; and
WHEREAS, the Electric Department further believes that
consulting assistance from HESI is critical to accomplishing the
tasks necessary for Redding to effectively participate as an
Intervenor in the FERC proceedings; and
WHEREAS, funds for said consulting services have been
included in the 1992-93 budget; and
WHEREAS, presented herewith for Council' s consideration is a
proposed Professional Services Agreement between the City and
Henwood Energy Services, Inc. on a time-and-materials basis for a
not-to-exceed price of $59,000 ;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
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1 . The foregoing recitals are true and correct.
2. Council believes entering into a Professional Services
Agreement with Henwood Energy Services, Inc. will benefit City
Electric Utility customers.
3 . Council hereby waives its Policy No. 1501 pertaining to
the selection of technical consultants inasmuch as time is
critical; and Henwood Energy Services, Inc. , in working with the
City on various projects, has developed an understanding of
Redding' s electric resource plans and contractual positions.
4. City Council hereby approves the Professional Services
Agreement (HESI Contract No. 102092) between the City of Redding
and Henwood Energy Services, Inc. in an amount not to exceed
$59,000.00, a true copy of which is attached hereto and
incorporated herein by reference.
'! 5. The Mayor of the City of Redding is hereby authorized
and directed to sign said Agreement on behalf of the City of
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Redding; and the City Clerk is hereby authorized and directed to
attest the signature of the Mayor and to impress the official
seal of the City of Redding thereto.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 3rd day of November 1992, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson , Arness, Dahl, Kehoe & Moss
ij NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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CHARLIE MOSS, Mayor
City of Redding
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AT ST:
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CONNIE STROHMAYER, Ci6k Clerk
II FORM APPROVED:
iRA4DALL A. HAYS, City Attorney
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• Contract No. 102092
City of Redding
PROFESSIONAL SERVICES AGREEMENT
THIS AGREEMENT is made this day of , 1992, between HENWOOD
j ENERGY SERVICES, INC., a California corporation, (hereinafter referred to as "Consultant")
and the CITY OF REDDING, California, (hereinafter referred to as "Client').
Article 1. Services to be Performed by Consultant
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Section 1.01. Consultant agrees to perform the services described in Exhibit A, subject to the
dollar limit stated in the said Exhibit A.
,I Section 1.02. Consistent with industry practice and in conjunction with Client and Client's other
contractors (if any), Consultant will determine the method, details and means of performing the
above-described services.
Section 1.03. Consultant shall not discuss the subject matter of this Agreement with any party
without prior approval of Client.
Article 2. Term of Agreement
Section 2.01. This Agreement shall become effective when executed and shall remain in effect
until terminated as provided herein. This Agreement may be terminated by either party on sixty
(60) days written notice. In the event that Client terminates this Contract, Consultant agrees to
use reasonable efforts to mitigate its expenses and obligations hereunder. Client shall pay for all
services satisfactorily performed by Consultant.
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Section 2.02. Should Client fail to pay Consultant all or any part of the compensation set forth in
Article 3 of this Agreement on the date due, Consultant, at Consultant's option, may terminate
this Agreement if the failure to pay is not remedied by Client within ten (10) days from the date
notice is given to Client that payment is past due.
Article 3. Compensation
Section 3.01. In consideration for the services to be performed by Consultant, but subject to the
dollar limit provided in Exhibit A, Client shall pay Consultant for its labor hours pursuant to the
rate schedule which is attached as Exhibit B, or its successor which shall applicable after calendar
year 1992.
Section 3.02. Subject to the dollar limit provided in Exhibit A, Client shall also pay, pursuant to
Exhibit B or its successor, any and all reasonable and necessary expenses incurred by Consultant
on behalf of Client in connection with the services described in Exhibit A of this Agreement. Such
expenses include, but are not limited to, travel, telephone, reproduction, licensing fees, and rental
of specialized equipment.
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• Contract No. 102092
City of Redding
Section 3.03. Consultant shall submit to Client monthly a statement of services rendered as soon
as practical after the end of the month. Client agrees to pay the amount due to Consultant for
jl services within thirty(30) days of invoice. Past due balances shall be charged interest at the rate
i of 1.5% per month.
Article 4. Obligations of Consultant
Section 4.01. Consultant shall perform work according to the requirements of Article 1 in a
professional manner and with due diligence. All services performed under this Agreement are the
property of the Client and will be held in strict confidence.
.I Section 4.02. Consultant agrees to provide workers compensation insurance for its employees
and agents and agrees to hold harmless and indemnify Client for any and all claims arising out of
any injury, disability, or death of any of Consultant's employees or agents.
Section 4.03. Consultant will not be liable to Client, or to anyone who may claim any right due to
a relationship with Client, for any acts or omissions in the performance of services under the terms
of this Agreement or on the part of the employees or agents of Consultant unless such acts or
!� omissions are due to negligence. Client will indemnify and hold Consultant free and harmless
from any obligations, costs, claims,judgments, attorneys' fees, and attachments arising from,
growing out of, or in any way connected with the services rendered to Client under the terms of
this Agreement, except to the extent Consultant is found by a court of competent jurisdiction to
be liable for its negligence.
Section 4.04. Neither this Agreement nor any duties or obligations under this Agreement may be
assigned by Consultant without the prior written consent of Client.
Article 5. Obligations of Client
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Section 5.01. Client agrees to comply with all reasonable requests of Consultant and provide
access to all documents reasonably necessary to the performance of Consultant's duties under this
! Agreement.
Section 5.02. Neither this Agreement nor any duties or obligations under this Agreement may be
' assigned by Client without the prior written consent of Consultant.
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Article 6. General Provisions
Section 6.01. All notices, requests, demands and other communications under this Agreement
i; shall be in writing and shall be deemed to have been duly given on the date of service only:
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(a) When served personally on the party to whom notice is being given; or
(b) Within seventy-two (72) hours after mailing, when mailed to the party to whom
notice is to be given by registered or certified mail, postage prepaid, and properly ad-
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a' Contract No. 102092
City of Redding
dressed to the party at his or its address set forth below, or at such different address as any
,I party shall notify to the other parties in the manner provided in this Section.
Section 6.02. This Agreement may be modified at any time only by a written agreement executed
by all of the then parties to this Agreement.
Section 6.03. No failure by any party to insist upon the strict performance of any covenant, duty,
agreement or condition of this Agreement or to exercise any right or remedy consequent upon a
breach thereof shall constitute a waiver of any such breach or any other covenant, agreement,
term or condition. No waiver shall be binding unless executed in writing by the party making the
i waiver.
Section 6.04. This Agreement shall be binding upon and inure to the benefit of the parties, their
I successors, assigns, personal representatives, heirs and legal representatives.
Section 6.05. Any claim or controversy arising out of, or relating to, any provision of this
Agreement, or the breach thereof, shall, upon written demand of any party, be settled by
arbitration in accordance with the Commercial Arbitration Rules then in effect with the American
Arbitration Association, to the extent consistent with the laws of the State of California, and
judgment upon the award rendered by the arbiter(s) may be entered in any court having
�) jurisdiction thereof. Arbitration shall be held in the County of Sacramento, California.
Section 6.06. Should any arbitration or litigation be commenced between any of the parties
hereto, or their personal representatives, concerning any provision of this Agreement or the rights
and duties of any person relative thereto, the prevailing party shall be entitled to recover, as an
element of his costs of suit and not as damages, reasonable attorneys'fees to be fixed by the
arbiter(s) or the court, as the case may be. The "prevailing party" shall be the party who is
entitled to recover his costs of suit, whether or not the suit proceeds to final judgment. A party
not entitled to recover his costs shall not recover attorneys'fees. No sum for attorneys' fees shall
be counted in calculating the amount of a judgment for purposes of determining whether a party is
entitled to recover his costs or attorneys' fees.
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Section 6.07. This Agreement has been finally executed and delivered in the State of California
and all matters affecting its validity and construction shall be determined according to the laws of
that State. Further, the place of performance and transaction of business shall be in Sacramento
County, State of California and in the event of litigation or arbitration, the exclusive venue and
place of jurisdiction shall be in Sacramento County, State of California.
Section 6.08. This Agreement, and any Exhibits referred to in the Agreement, constitute the
entire agreement between the parties pertaining to the subject matter contained in it and
supersedes all prior and contemporaneous agreements, representations and understandings of the
parties.
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Contract No. 102092
City of Redding
IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date
and year set forth above.
CONSULTANT: CLIENT:
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HENWOOD ENERGY SERVICES, INC. CITY OF REDDING
BY: BY:
NAME: Mark Ilenwood NAME:
t TITLE: President TITLE:
ADDRESS: 2555 3rd St. Suite 110 ADDRESS: City of Redding
Sacramento, CA 95818 Attention: Electric Department
PHONE: (916) 447-3497 760 Parkview Avenue
FAX: (916) 447-9890 Redding, CA 96001
PHONE: (916) 224-4351
FAX: (916) 224-4389
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Oontract No. 102092
City of Redding
EXHIBIT A
SCOPE OF WORK
1. General
HESI will provide support to Client's staff with respect to the development and use
i of the COTP contracts and related agreements and the protection of the City's rights and
interests related to the COTP. In this regard and at the request and direction of the Client,
HESI will do or provide the following:
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' 2. Tasks
Review contracts, documents and data filed with regulatory commissions,
'! particularly the Federal Energy Regulatory Commission.
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Prepare discovery requests and review responses to discovery.
Assist in the preparation of pleadings and responses to pleadings in regulatory
;! proceedings and other documents.
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Assist in liaison with the Western Area Power Administration.
Attend and participate in meetings to discuss or negotiate principles and contract
j terms and conditions.
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Make recommendations to Client staff and managers regarding principles and
strategy.
Collect information as required.
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'I Provideuantitative analysis of scenarios as requested.
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i Make oral or written reports and presentations as required.
3. Project Manager
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HESI will assign Mr. David Magaw as the Project Manager for this project. The
Project Manager shall be the primary contact and representative on these tasks. Mr.
Magaw's resume is attached.
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4ontract No. 102092
City of Redding
4. Contract Limit
This Contract and the performance of the tasks listed in part 2. above of this Exhibit A on
,I a time and materials basis are subject to a not-to-exceed limit of fifty-nine thousand dollars
($59 ,000.00). Consultant estimates that this amount will provide for services hereunder
through December 1993.
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EXHIBIT B
,j HENWOOD ENERGY SERVICES, INC.
i FEE SCHEDULE
` Effective Calendar Year 1992
1. Professional Services
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The fees for the professional services, including normal overhead costsl, are:
Principal Consultants
1.1 Mr. Mark Henwood, RMO
President...................
..........................................................................$135 per hour
1.2 Mr. David Branchcomb
Vice President...................................................................................$120 per hour
1.3 Dr. Lon House
Engineering Economics...................................................................$110 per hour
1.4 Mr. David Magaw, Esq.
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Utility Power Contracting................... ................................$110 per hour
1.5 Mr. Kevin Woodruff, MBA
Economics..........................................................................................$100 per hour
Senior Consultants
1.6 Mr. Thomas Johnson, P.E.
Civil Engineer....................................................................................$ 85 per hour
Staff Consultants
1.7 Mr. Douglas Joy
Software/Analytical Engineer $ 77.50 per hour
1.8 Mr. Donald Moss
Civil Engineer....................................... $ 62.50 per hour
1. These costs include basic secretarial support,job administration,rents, and other corporate overhead
costs.
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Rates921,Page 1
October 20,1992
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Assistant Consultants '
1.9 Mr. Jason Gu
Mechanical i
'i cal Engneer $ 50 per hour
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1.10 Mr. Kevin Harris
;j Utility Planning Engineer................................................................$ 65 per hour
Administrative/Research
'i 1.11 Ms. Carol Killelea
Administrative Assistant..................................................................$ 40 per hour
1.12 Ms. Jimmie Willis
Administrative Assistant..................................................................$ 35 per hour
Other Staff Members
1.13 Other Staff..........................................................................................HESI Standard
Rated
2. Support Service Charges
I In addition to payment for professional services, all reasonable and necessary expenses
incurred in connection with the performance of professional services will be billed at cost
plus 10%. Such expenses included, but are not limited to outside reproduction costs, art-
work, airline travel, meals, lodging, postage, freight, telephone, and travel related expenses.
;! Facsimile charges are $2 per outgoing page, no charge for receiving. Internal copying is
'i charge at $0.10 per page. Mileage is charged at the maximum rate permitted by the Inter-
nal Revenue Service.
3. Materials, Equipment, Subcontractors
Charges for the purchase of job parts and materials, specialized equipment rental or
purchase, and tool rental or replacement purchase shall be charged at cost plus 15%.
Expenditures for hiring of sub-consultants or subcontractors shall be charged at cost plus
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15%.
To the extent California sales, use, or district taxes apply, such taxes shall be charged.
4. Fee Schedule Revision
This schedule is effective commencing January 1, 1992, and may be superseded by a revised
schedule January 1, 1993 or later.
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i 1. Rates are based on salary and standard multipliers.
Rates921,Page 2
October 20,1992
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