HomeMy WebLinkAboutReso. 1986 - 163 - Approving the consultation agreement between the city of redding resource management international inc forecasting methodolody r •
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RESOLUTION NO. Y4,/
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY SOF REDDING
APPROVING THE CONSULTATION AGREEMENT BETWEEN THE CITY OF
REDDING AND RESOURCE MANAGEMENT INTERNATIONAL, INC.
REGARDING THE CALIFORNIA ENERGY COMMISSION COMMON
FORECASTING METHODOLOGY (CFM 6) PROCESS , FOR AN AMOUNT NOT
TO EXCEED $17 , 500. 00 , AND AUTHORIZING THE CITY MANAGER TO
SIGN SAME.
BE IT RESOLVED by the City Council of the City of_ IRedding as
follows :
1 . That the City Council of. the City of Redding hereby
approves the attached Consultation Agreement, not to exceed the
sum of $17 , 500 . 00 , between the City of Redding and Resource
Management International, Inc. (RMI) , of which RMI ' s letter to
the City of Redding dated July 1 , 1986 , is a part, regarding the
California Energy Commission Common Forecasting Methodology
process; and
2 . That the City Manager of the City of Redding is hereby
authorized and directed to sign all necessary documents on behalf
of the City of Redding, and the City Clerk is hereby authorized
and directed to attest the signature of the City Manager and to
impress the official seal of the City of Redding on the aforesaid
documents , when appropriate; and
3. That a true copy of the Consultation Agreement referred
to herein is attached hereto and made a part hereof.
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
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the City of Redding on the 7th day of July , 1986 , and
was duly adopted at said meeting by the following vote•
AYES: COUNCIL MEMBERS: Carter, Dahl , Gard, Johannessen, & Fulton
NOES: COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS : None
/‘" /1)6(-11"-_,P7
LEE D. FULTON, M.D. , Mayor
City of Redding
ATTEST:
?-iya a.724c4-6,
ETHEL A. NICHOLS, City Clerk
FORM .'PROVED:
RA DALL A. HAYS , ' ity Attorney
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� � .a:, uRESOD MANAGEMENT INTERNATIONAL, INC.
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G MANAGEMENT
�RESO:JRGE INTERNATIONAL 10 Hurley Way, Suite 500
Sacramento, CA 95825
(916) 924-1534
CONSULTATION AGREEMENT
This is an agreement for Resource Management International, Inc. (RMI) to
provide consulting services to:
Client City of Redding
Address 760 Parkview Avenue
City Redding State CA Zip 96001
I •
CONSULTING SERVICES
The services to be provided are as follows:
See letter dated July 1, 1986 regarding the California Energy Commission
Common Forecasting Methodology process, for an amount not to exceed
$17, 500. II
PROFESSIONAL AND PARAPROFESSIONAL FEES
The fees for services, except testimony, shall be billed as follows:
Managing Executive Consultant $ 95 per hour
Principal Executive Consultant 85 per hour
Executive Consultant 75 per hour
Principal Consultant 68 per hour
Supervising Consultant 62 per hour
Senior Consultant 57 per hour
Associate Professional 52 per hour
Junior Professional 48 per. hour
Research Assistant — 16 per hour
Office Services 27 per hour
The fees for testimony shall be billed as $ Xx per day or fraction thereof
for XX , and $ XX per day or fraction thereof for all
other personnel. •
RMI fees shall be adjusted each year, commencing January 1, 198 , to reflect
the change in fees officially established by the RMI Board of Directors.
III
SUPPORT SERVICE CHARGES
Charges for reproduction, printing, communications, computer services, word
processing services, graphics, and other miscellaneous support services shall
be billed at rates for such services as determined from time to time and
officially established by the RMI Board of Directors plus ten percent expense
reimbursement to RMI.
IV
CONSULTANTS
RMI may use the consultants listed below to assist in performing work here-
under. The services of such consultants will be billed at the Consultants'
rate to RMI, plus an amount which includes RMI's compensation for the
administrative, financial, and organizational costs and other expenses
incurred in connection with the consultants' work. The consultands will
function as independent contractors and will rely on RMI for all
administrative and billing functions.
Billing Rate
Consultant's Name Task to Client •
N/A
V
• TRAVEL AND EXPENSES •
All travel, food, lodging, and miscellaneous expenses associated with the
provision of services hereunder, and incurred in accordance with established
corporate policy, shall be billed at cost.
VI •
LIABILITY AND CANCELLATION RIGHTS
RMI agrees to indemnify, defend and hold Client harmless from and against any
and all claims, demands, damages or expenses for which RMI is determined to be
legally liable resulting solely from negligent acts, errors or omissions by
RMI in the performance of services required of it pursuant to this
agreement. Claims, demands, damages or expenses resulting from the negligent
acts, errors or _omissions of Client, its officers, agents, employees,
representatives or others are excluded from RMI's obligation pursuant to this
section.
The obligations of RMI to indemnify, defend and hold Client harmless for
services performed hereunder shall be expressly limited to the greater of the
fees collected by RMI pursuant to this agreement or the proceeds of its appli-
cable insurance coverage, and shall terminate upon termination of this
agreement.
RMI shall not be liable to third parties or others not a party to this agree-
ment unless such potential liability is expressly recognized and agreed to in
this agreement.
Either party may terminate this agreement by rendering written notice duly
posted to the other party at the address noted herein, fifteen (15) days prior
to the desired termination date. Client shall pay for all fees earned and
expenses incurred prior to the termination date.
VII
BILLING AND PAYMENT
RMI shall submit a monthly billing statement to Client setting forth the
amount due for services and itemizing amounts due for expenses. Client shall
pay the full amount of such statement within thirty (30) days after receipt.
Client agrees that any sums billed, not disputed in written forms
tusetting forth
specific exceptions and unpaid after thirty (30) days from date of receipt,
shall be subject to a late payment charge of one and one-half percent for each
month or fraction thereof past due.
VIII
ATTORNEY'S FEES
Should services of an attorney be required in connection with enforcement or
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performance of this agreement, the prevailing party shall be entitled to its
attorney's fees, expenses, and costs.
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AGREEMENT AND PARTIES
The parties agree that all changes or modifications hereto shall be in writing
and signed by both parties. This agreement is in lieu of all others expressed
or implied.
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Client Presic J nt
Resource Management International, Inc.
Dated: Dated:
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k RESOURCEIII•
' 17-- ir : MANAGEMENT
r: , INTERNATIONAL
,%" INC.
1010 HURLEY WAY•SUITE 500
SACRAMENTO, CALIFORNIA 95825
(916)924-1534
July 1, 1986
Mr . Sam Lindley
Director of Electric Department
City of Redding
760 Parkview Avenue
Redding, CA 96001-3396
Dear Sam:
On October 1, 1985, the City of Redding (City) submitted
demand and supply forms to the California Energy Commission (CEC)
consistent with the adopted Common Forecasting Methodology
(CFM 6) format. According to the CEC materials distributed at
the January 30, 1986 workshop, the CEC has viewed the City' s CFM
filings'6 submittal ds one of Lhe LhLee must COiupleLe fili igS by
municipal utilities.
In a June 13, 1986 hearing order, the CEC acknowledged it
does not have sufficient staff to develop independent' forecasts
for the additional service areas associated with the municipal
utilities. Therefore, the CEC ER 6 Committee has scheduled a
second phase adoption process for the small municipal1
utilities. This schedule calls for a Staff Report tobe
submitted on July 8, a Committee Hearing on August 1,1 a Committee
Report on August 15, and adoption of municipal demand forecasts
on September 3.
Resource Management International, Inc . (RMI ) pripposes to
perform the following tasks, to the extent possible within the
available budget, in support of the City ' s efforts to' obtain an
adopted forecast and a designated service area.
Task 1 _. Discussion with CEC Staff :
The CEC staff has been reluctant to commit resources to the
evaluating the municipal submittals. Instead the staff appears
to be searching for excuses to summarily reject the municipal
forecasts as deficient. The area most frequently criticized is
the treatment of conservation in municipal forecasts The CEC
Mr. Sam Lindley 411
July 1 , 1986
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staff concerns are valid in that the effects of conservation are
not treated in exhaustive detail since data are unavailable.
However, conservation will not affect the City ' s demand growth as
much as annexation by the City of new area and customers. To the
extent applicable, regional growth 'rates and other statistical
conservation data were taken from valid sources and are
defensible.
RMI will continue to discuss these issues with the CEC staff
and will attempt to ensure that the CEC staff are fully aware of
the City forecast ' s strengths . These discussions may lead CEC
staff towards a recommendation other than simple rejection of the
City 's forecast .
Task 2 - Prepare for Committee Hearing:
Regardless of the staff recommendations, the City must take
a firm stand on pertinent issues at the August 1 CECICommittee
Hearing. This will require review of the Staff Report, possible
development or analysis of additional technical data,1 preparation
of written testimony and an oral presentation, and possibly the
presentation of oral testimony. At a minimum, the City must be
in a position to respond to technical questions posed by the CEC
in the hearing forum.
RMI will provide the technical services required under this
task and will support City personnel in these hearings, to the
extent practicable .
Task 3 - Committee Hearing Follow-Up:
It is likely that the CEC Committee will ask for additional
technical information from the City, invite the, City to
participate in additional workshops with CEC staff, and request
supplemental written submittals . Although it difficult to
estimate the level of effort involved, it is likely that these
work activities will be comparable to those for Tasks 1 and 2 .
RMI will provide technical services as best practicable in
support of the City ' s efforts to obtain a Committee Report
containing positive recommendations for the City.
Mr . Sam Lindley • 111
July 1, 1986
Page 3
Task 4 - Supply Proceedings :
To date, CEC activities regarding the CFM process have.
focused on demand issues. However, the demand forecast filed by
the City is only half of the CFM 6 filing. The other aspect of
the submittal is the City' s plan to develop an adequate supply of
economic power to meet the forecasted demand . These supply
issues are also addressed by the CEC in developing the
Electricity Report . It is presumed that supply issuer will be
the subject of workshops and hearings in late July and August .
RMI proposes to provide technical support and written and
oral testimony in support of supply issue proceedings
Budget :
It is anticipated that the CEC ER 6 proceedings will extend
into and possibly beyond September 1986. For its support of the
City ' s positions, RMI proposes to conduct the aforementioned work
on RMI ' s standard time and expense reimbursement basis in an
amount not to exceed $17, 500 . Protracted hearings or unforeseen
disputes could require the City to consider authorizing
additional work which is not contemplated under this proposal . •
Sinnccerel ,
Lloyd H. Harvego
President