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HomeMy WebLinkAboutReso 1990-187 - Approving the following agreements, and authorizing the mayor to sign III 110 RESOLUTION NO. 90 " /S7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE FOLLOWING AGREEMENTS , AND AUTHORIZING THE MAYOR TO SIGN: 1 . PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF REDDING AND HENWOOD ENERGY SERVICES , INC. (HENWOOD) TO ANALYZE PROPOSALS FROM FIVE INDEPENDENT POWER PRODUCERS , NOT TO EXCEED $35 , 000 . 00 . 2 . LETTER OF AGREEMENT FOR SERVICES BETWEEN THE CITY OF REDDING AND BONNEVILLE PACIFIC CORPORATION TO SHARE THE COST OF THE HENWOOD CONTRACT. 3 . LETTER OF AGREEMENT FOR SERVICES BETWEEN THE CITY OF REDDING AND EECO ENERGY TO SHARE THE COST OF THE HENWOOD CONTRACT. 4 . LETTER OF AGREEMENT FOR SERVICES BETWEEN THE CITY OF REDDING AND ENERGY SERVICES , INC. TO SHARE THE COST OF THE HENWOOD CONTRACT. 5 . LETTER OF AGREEMENT FOR SERVICES BETWEEN THE CITY OF REDDING AND INDUSTRIAL POWER TECHNOLOGY TO SHARE THE COST OF THE HENWOOD CONTRACT. 6 . LETTER OF AGREEMENT FOR SERVICES BETWEEN THE CITY OF REDDING AND ZURN INDUSTRIES , INC. TO SHARE THE COST OF THE HENWOOD CONTRACT. WHEREAS , at its regular meeting of April 3 , 1990 , City Council directed staff to negotiate a contract with Henwood Energy Services , Inc . (Henwood) to analyze the proposals from five independent power producers; and WHEREAS , presented herewith is the proposed Henwood Professional Services Agreement for Council' s consideration; and WHEREAS, also presented herewith are five Letters of Agreement for Services between the City of Redding and (1) Bonneville Pacific Corporation; (2) EECO Energy; (3) Energy \n. 4 Services, Inc . ; (4) Industrial Power Technology; and (5) Zurn Industries, Inc. to share the cost of the Henwood Contract; and WHEREAS, the Electric Utility Commission and staff recommend City Council approving said Agreements; and WHEREAS , City Council concurs that it is in the best interests of the City of Redding to enter into said Agreements with Henwood Energy Services , Inc. , Bonneville Pacific Corporation, EECO Energy, Energy Services , Inc . , Industrial Power Technology, and Zurn Industries, Inc. ; NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Redding as follows: 1 . That the City Council of the City of Redding hereby approves the Professional Services Agreement between the City of Redding and Henwood Energy Services , Inc . to analyze proposals from five independent power producers, as set forth in said Agreement, not to exceed $35 ,000 . 00 . 2 . That the City Council of the City of Redding hereby approves the Letters of Agreement for Services between the City of Redding and Bonneville Pacific Corporation, EECO Energy, Energy Services, Inc. , Industrial Power Technology, and Zurn Industries, Inc. to share the cost of the Henwood Contract. 3 . That the Mayor of the City of Redding is hereby authorized and directed to sign all six Agreements on behalf of the City of Redding, and the City Clerk is hereby authorized and -2- III 410 directed to attest the signature of the Mayor and to impress the official seal of the City of Redding. 4 . That a true copy of each Agreement is attached hereto and incorporated herein by reference. 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 1st day of May , 1990 , and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness, Dahl , Fulton, Moss, & Buffum NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None C,,, 5/1 / / NANCY BUFFUM, .a or Cit/f Redding ATTEST: ETHEL A. NICHOLS, City Clerk FOR. APPROVED: T�.4,1Z, . NDALL A. HAYS City Attorney -3- • HESI Contract No. M10-490-28 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT is made and effective this day of April, 1990, between HENWOOD ENERGY SERVICES, INC., a California corporation, (hereinafter referred to as "Consultant") and the City of Redding, a municipal corporation formed under the laws of the State of California, (hereinafter referred to as "Client"). Article 1. Services to be Performed by Consultant Section 1.01. Consultant agrees to perform the following services: Tasks as specified in Consultant's Statement of Work,Initial Analyses of Generation Projects Proposed by Independent Energy Producers, attached to this contract as Exhibit B. 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 will become effective on the date stated above and will continue in effect until December 31, 1990 year unless terminated earlier pursuant to Section 2.02. Section 2.02. This Agreement may be terminated on ten days written notice of Client. In the event that Client terminates this Contract, Consultant agrees to use reasona- ble efforts to mitigate its expenses and obligations hereunder. Client shall pay for all serv- ices satisfactorily performed by Consultant. Section 2.03. Should Client fail to pay Consultant all or any part of the compensa- tion 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 when notice is given to Client that payment is past due. Page No. 1 of 10 a/On HESI Contract No. M10-1028 • Article 3. Compensation Section 3.01. In consideration for the services to be performed by Consultant, Client agrees to pay Consultant pursuant to Exhibit A subject to any not-to-exceed limits specified in Exhibit B.The rates in Exhibit A include normal overhead costs. Section 3.02. In addition to payment for Consultant's services, Client agrees to pay pursuant to Exhibit A any and all reasonable and necessary expenses incurred by Consult- ant on behalf of Client in connection with the services described in Article 1 of this Agree- ment. Such expenses include, but are not limited to, travel, telephone, reproduction, licens- ing fees, and rental of specialized equipment. 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 services within thirty days of invoice. Past due balances shall be charged interest at the rate 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 pursuant to the Non- Disclosure provisions of Exhibit C to this contract. 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 or breach of contract. 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, unless Consultant is judged by a court of competent jurisdiction or as a result of arbitration to be guilty of negligence or breach of contract. 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. Page No. 2 of 10 4/90 dk 1111 HESI Contract No. M10-490-28 Article 5. Obligations of Client 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. Article 6. General Provisions Section 6.01. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given on the date of service only: (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- dressed to the party at his or its address set forth below, or at such different address as any 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 waiver. Section 6.04. This Agreement shall be binding upon and inure to the benefit of the parties, their 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. Page No.3 of 10 4/90 • HESI Contract No. M10-490-28 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 attorney's 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 attorney's 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 attorney's fees. 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. IN WITNESS WHEREOF, the undersigned have executed this Agreement on the date and year set forth above. CONSULTANT: CLIENT: HENWOOD ENERGY SERVICES, INC. CITY OF REDDING BY: ti crA V.* BY: NAME: Mar Henwood NAME: 1'1I'LE: President TITLE: ADDRESS: 2555 3rd St. Suite 110 ADDRESS: 760 Parkview Avenue Sacramento, CA 95818 Redding, CA 96001 PHONE: (916) 447-3497 PHONE: (916) 224-4300 Page No. 4 of 10 Z. ion 1111 • HESI Contract No.M10-490-28 EXHIBIT A HENWOOD ENERGY SERVICES, INC. FEE SCHEDULE Effective Calendar Year 1990 1. Professional Services The fees for the professional services, including normal overhead costs, are: 1.1 Mr. Mark Henwood President and Senior Consultant $110 per hour 1.2 Mr. David Branchcomb Vice President and Senior Consultant $ 90 per hour 1.3 Mr. Douglas Joy Staff Engineer $ 60 per hour 1.4 Mr. Kevin Woodruff Staff Economist $ 65 per hour 1.5 Ms.Janet Rinaldi Staff Engineer $ 45 per hour 1.6 Mr. Ronald Davis Manager of Simulation Products and Senior Consultant $ 85 per hour 1.1 Other Staff HESI Standard Rate 2. Support Service Charges 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. Such expenses included, but are not limited to reproduction costs, artwork, airline travel, meals, lodging, postage, freight, telephone, facsimile charges, and travel related expenses. Mileage shall be charged at the maximum rate permitted by the Internal Revenue Service. Page No.5 of 10 4/90 Alk ier HESI Contract No. M10-490-28 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 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, 1990, and may be superseded by a revised schedule January 1, 1991 or later. Page No. 6 of 10 iron S • HESI Contract No. M10-490-28 EXHIBIT B STATEMENT OF WORK Initial Analyses of Generation Projects proposed by Independent Energy Producers 1 INTRODUCTION The City of Redding has received a number of proposals from IPPs regarding develop- ment of generating resources and the sale of project output to the City. In response to the policy of the Electric Department, project proponents have completed the Initial Resource Project Questionnaire. Based on this information, and the City's latest re- source planning and financial assumptions, the work described below would evaluate the proposed projects to make an initial determination of the their relative desirability to the City. 2 WORK STATEMENT 2.1 Develop Baseline Data In preparation for analysis of IPP proposals HESI will augment and update the City's resource planning tools and assumptions. To the extent that spreadsheet models are utilized, all work shall be performed using Lotus Version 3.0. 2.1.1 The City will provide HESI with its latest versions of its financial and load forecasting models and/or their base data sets. HESI will utilize these tools for performing analysis to assure that consistency is maintained between the City's current planning activities and these analyses. 2.1.2 HESI will enhance the capability of the City's existing resource planning software to increase its flexibility for determining revenue available from wholesale sales opportunities. Specifically HESI will modify the REDD Lotus spreadsheet to accomplish this task. 2.1.3 HESI will develop current cost estimates for the City to construct and operate a combustion turbine. These estimates will be based on recent utility submittals for turbine capital costs, the City's financing costs (supplied by the City), and natural gas costs applicable to combustion turbines. These estimates will be used to update the City's generic combustion turbine representation. Page No.7 of 10 4/90 HESI Contract No. M10-490-28 2.1.4 HESI will update the City's all resources base case resource plan to reflect its most current resource assumptions concerning loads and resource costs. The starting resource plan will be the City's most recent CFM filing with the Cali- fornia Energy Commission. 2.1.5 HESI shall maintain consistency between assumptions used in performing this work. To the extent the City has standardized resource planning assump- tions, these assumptions shall be used. HESI, in consultation with the Electric Department staff, shall make adjustments to existing forecasts used by the City for the purpose of maintaining consistency. 2.2 IPP Project Analyses For each project, up to a total of five, HESI shall per- form the following analyses: 2.2.1 For each project being analyzed the City shall provide HESI with all rele- vant information that the City wants considered. Such information will include the Initial Resource Project Questionnaire. At this time the staff of the Electric De- partment shall discuss with HESI its view of the analyses to be performed. 2.2.2 Based on the information provided in the previous task, HESI shall struc- ture and propose a series of analyses designed to investigate the merits of the proposal. HESI shall review these analyses with the Electric Department staff prior to commencing the detailed analyses. Five basic scenarios will be run per proposed project. Additional scenarios may be run on individual project as re- quired and mutually agreed to. In the event that a project being analyzed does not appear economically viable compared to other City options, the analysis of the project will be terminated at that time. The five basic scenarios are: Scenario 1 Analysis of the project compared to a WAPA and PGandE only configuration. Scenario 2 Analysis of the project compared to the complete CMF8 (as updated) system representation. Scenario 3 For peaking projects, utilizing the updated CMF8 representa- tion, replace the City's proposed Spring Creek project with the proposed project and compare the system costs. For base load projects, utilizing the updated CMF8 representation, replace the proposed Lake Red Bluff and Lake Redding projects with the proposed project and compare the system costs. Scenario 4 For peaking projects, utilizing the updated CMF8 representa- tion, replace one of the generic combustion turbine projects with the proposed project and compare the system costs. For base load projects, utilizing the updated CMF8 representation, replace one of the generic baseload projects the proposed project and compare the system costs. Page No. 8 of 10 4/90 • HESI Contract No. M10-490-28 Scenario 5 Using the most favorable configuration of the project, if any are viable, perform a Monte Carlo analysis of the effect of project and other resource outages. 2.2.3 HESI shall perform the analyses as agreed to in the previous task. No more than an average of six analyses shall be performed per project pursuant to this proposal. 2.3 Deliverables HESI shall deliver the following to the City on completion of its analysis of each project: (1) a summary of the economic results of the investigations (2) HESI's recommendations regarding the merits of the project vis-a-vis Redding's alternatives including a discussion of the key project charateristics which adversly affect project emissions. (3) diskettes containing the data sets and spreadsheet models utilized to perform the analyses. 3 SCHEDULE This work will be completed within six weeks after authorization to proceed, provided that data and models to be provided by the City are received in a timely fashion by HESI. 4 COST HESI will perform this work on a time and materials basis pursuant to our standard rate schedule (which has already been provided to the City). Assuming limited write-up and no expansion in the scope of work outlined above, HESI will perform this work for not-to- exceed (NTE) basis as follows: Task 2.1, NTE $7,500 Tasks 2.2 and 2.3, NTE per project $6,500 All five projects analyzed, total project cost NTE $35,000 Page No. 9 of 10 d/cm 1111 HESI Contract No. M10-490-28 EXHIBIT C Non-Disclosure of Confidential Information 1. It will be necessary in the course of Consultant performing the services described in Exhibit B, that Client release contain confidential materials to Consultant. 2. Consultant agrees that it will not, at any time during or subsequent to its obtaining the Confidential Information from Client, directly or indirectly, use any of the Confidential Information for any purposes not associated with Consultant's performance of services, or disseminate or disclose any of the Confidential Information to any person or entity other than Consultant, its employees or agents which shall include, but not be limited to, outside consultants, engineers, accountants, and lawyers without the prior written consent of Client. Consultant shall take reasonable steps to ensure that the secrecy of the Confidential Information to which it is provided access will be maintained. 3. Upon written request Client, Consultant agrees that all Confidential Information, including, without limitation, drawings, specifications, manuals, notebooks, correspondence and similar documents, together with any duplicate copies, then in its possession or control, whether prepared by Client or by others, shall be promptly returned to Client. Title to all Confidential Information shall at all times remain vested exclusively with Client and nothing in this Agreement shall be construed to give Consultant any right, title, or interest in the Confidential Information. Page No. 10 of 10 • ion LETTER OF AGREEMENT FOR SERVICES BETWEEN CITY OF REDDING AND BONNEVILLE PACIFIC CORPORATION Bonneville Pacific Corporation has returned a completed Initial Questionnaire from the City of Redding (Redding) Electric Department' s Resource Project Questionnaire Packet. The completed Initial Questionnaire describes the Bonneville Pacific Corporation proposal to assist in meeting Redding' s future electric power needs. Redding has negotiated the attached proposed consulting contract with Henwood Energy Services, Inc. (Henwood) which provides for Henwood to review the economic feasibility of up to five proposals from various Independent Power Producers (IPPs ). This Letter of Agreement between Redding and Bonneville Pacific Corporation establishes a cost-sharing arrangement whereby Bonneville Pacific Corporation will pay part of the costs associated with the proposed contract with Henwood. Redding agrees to coordinate and review all work performed by Henwood under the proposed contract. Redding also agrees to provide Bonneville Pacific Corporation all input/output data associated with Henwood' s review of the Bonneville Pacific Corporation proposal, as well as a discussion of the proposed Project' s economic viability and the key elements of which significantly affects economic viability of the proposed Project. Bonneville Pacific Corporation agrees to provide Redding the lesser of $7, 000 or the total contract price ($35, 000) divided by the total number of IPPs who enter into this or similar agreements to share the cost of the proposed contract work. Bonneville Pacific Corporation shall hold Redding, its officers, agents, and employees harmless from the consequences of release of information provided by Bonneville Pacific Corporation. Redding agrees to hold all proprietary information provided by Bonneville Pacific Corporation confidential to the extent it can doso under California law. IN WITNESS HEREOF, the parties hereto have entered into this Letter of Agreement dated BONNEVI • . PACIFIC C v :PORATI ON CITY OF REDDING 111IbAW Ir By: /'.6tom . Ce_ By: Title: Title: g/a/02483 • 110 LETTER OF AGREEMENT FOR SERVICES BETWEEN CITY OF REDDING AND EECO ENERGY EECO Energy has returned a completed Initial Questionnaire from the City of Redding (Redding) Electric Department' s Resource Project Questionnaire Packet. The completed Initial Questionnaire describes the EECO Energy proposal to assist in meeting Redding' s future electric power needs. Redding has negotiated the attached proposed consulting contract with Henwood Energy Services, Inc. (Henwood) which provides for Henwood to review the economic feasibility of up to five proposals from various Independent Power Producers ( IPPs) . This Letter of Agreement between Redding and EECO Energy establishes a cost-sharing arrangement whereby EECO Energy will pay part of the costs associated with the proposed contract with Henwood. Redding agrees to coordinate and review all work performed by Henwood under the proposed contract. Redding also agrees to provide EECO Energy all input/output data associated with Henwood' s review of the EECO Energy proposal, as well as a discussion of the proposed Project' s economic viability and the key elements of which significantly affects economic viability of the proposed Project. EECO Energy agrees to provide Redding the lesser of $7 ,000 or the total contract price ( $35, 000) divided by the total number of IPPs who enter into this or similar agreements to share the cost of the proposed contract work. EECO Energy shall hold Redding, its officers, agents, and employees harmless of the consequences of the information resulting directly or indirectly from execution of this Letter of Agreement. IN WITNESS HEREOF, the parties hereto have entered into this Letter of Agreement dated April 16, 1990. EECO H1HRGY CITY OF REDDING By: # 1ft a4/1/ By: Title: Title: _ J • • LETTER OF AGREEMENT FOR SERVICES BETWEEN CITY OF REDDING AND ENERGY SERVICES, INC. Energy Services, Inc. has returned a completed Initial Questionnaire from the City of Redding (Redding) Electric Department' s Resource Project Questionnaire Packet. The completed Initial Questionnaire describes the Energy Services, Inc. proposal to assist in meeting Redding' s future electric power needs. Redding has negotiated the attached proposed consulting contract with Henwood Energy Services, Inc. (Henwood) which provides for Henwood to review the economic feasibility of up to five proposals from various Independent Power Producers (IPPs) . This Letter of Agreement between Redding and Energy Services, Inc. establishes a cost-sharing arrangement whereby Energy Services, Inc. will pay part of the costs associated with the proposed contract with Henwood. Redding agrees to coordinate and review all work performed by Henwood under the proposed contract. Redding also agrees to provide Energy Services, Inc. all input/output data associated with Henwood' s review of the Energy Services, Inc. proposal, as well as a discussion of the proposed Project' s economic viability and the key elements of which significantly affects economic viability of the proposed Project. Energy Services, Inc. agrees to provide Redding the lesser of $7 ,000 or the total contract price ( $35,000) divided by the total number of IPPs who enter into this or similar agreements to share the cost of the proposed contract work. Energy Services, Inc. shall hold Redding, its officers, agents, and employees harmless of the consequences of the information resulting directly or indirectly from execution of this Letter of Agreement. IN WITNESS HEREOF, the parties hereto have entered into this Letter of Agreement dated April 16, 1990. ENERGY SERVICES INC. CITY OF REDDING ,Th • /7 By: 4 .14.0 By: Title: WESTERN REGIONAL MAN - ER Title: • • • 410 LETTER OF AGREEMENT FOR SERVICES BETWEEN CITY OF REDDING AND INDUSTRIAL POWER TECHNOLOGY Industrial Power Technology has returned a completed Initial Questionnaire from the City of Redding (Redding) Electric Department' s Resource Project Questionnaire Packet. The completed Initial Questionnaire describes the Industrial Power Technology proposal to assist in meeting Redding' s future electric power needs. Redding has negotiated the attached proposed consulting contract with Henwood Energy Services, Inc. (Henwood) which provides for Henwood to review the economic feasibility of up to five proposals from various Independent Power Producers (IPPs) . This Letter of Agreement between Redding and Industrial Power Technology establishes a cost-sharing arrangement whereby Industrial Power Technology will pay part of the costs associated with the proposed contract with Henwood. Redding agrees to coordinate and review all work performed by Henwood under the proposed contract. Redding also agrees to provide Industrial Power Technology all input/output data associated with Henwood' s review of the Industrial Power Technology proposal, as well as a discussion of the proposed Project' s economic viability and the key elements of which significantly affects economic viability of the proposed Project. Industrial Power Technology agrees to provide Redding the lesser of $7 ,000 or the total contract price ( $35,000) divided by the total number of IPPs who enter into this or similar agreements to share the cost of the proposed contract work. Industrial Power Technology shall hold Redding, its officers, agents, and employees harmless of the consequences of the information resulting directly or indirectly from execution of this Letter of Agreement. IN WITNESS HEREOF, the parties hereto have entered into this Letter of Agreement dated April 16 , 1990. INDUSTRIAL POWER CHNOLOGY CITY OF REDDING By: �. , U4ADBy: Title: President Title: 410 LETTER OF AGREEMENT FOR SERVICES BETWEEN CITY OF REDDING AND ZURN INDUSTRIES, INC. Zurn Industries, Inc. , has returned a completed Initial Questionnaire from the City of Redding (Redding) Electric Department' s Resource Project Questionnaire Packet. The completed Initial Questionnaire describes the Zurn Industries, Inc. proposal to assist in meeting Redding' s future electric power needs . Redding has negotiated the attached proposed consulting contract with Henwood Energy Services, Inc. (Henwood) which provides for Henwood to review the economic feasibility of up to five proposals from various Independent Power Producers ( IPPs) . This Letter of Agreement between Redding and gnci.ly Zurn Industries, Inc. establishes a cost-sharing arrangement whereby Zurn Industries, Inc. will pay part of the costs associated with the proposed contract with Henwood. Redding agrees to coordinate and review all work performed by Henwood under the proposed contract. Redding also agrees to provide Zurn Industries, Inc. all input/output data associated with Henwood' s review of the Zurn Industries, Inc. proposal, as well as a discussion of the proposed Project' s economic viability and the key elements of which significantly affects economic viability of the proposed Project. Zurn Industries, Inc. agrees to provide Redding the lesser of $7 , 000 or the total contract price ( $35 , 000) divided by the total number of IPPS who enter into this or similar agreements to share the cost of the proposed contract work. Zurn Industries, Inc. shall hold Redding, its officers, agents, and employees harmless of the consequences of the information resulting directly or indirectly from execution of this Letter of Agreement. IN WITNESS HEREOF, the parties hereto have entered into this Letter of Agreement dated April 16 , 1990 . ZURN INDUSTRIES, INC. CITY OF REDDING By: ( `.^' By: Title: MS V"( ?It0SSCI 14 v2-COA. Tit1?: