HomeMy WebLinkAbout1998-09-29; City Council; 14863; Energy Consulting Services: Grueneich ResourceCl- OF CARLSBAD - AGENP BILL
DEPT. HD.
ENERGY CONSULTING SERVICES: TECHNICAL,
ENVIRONMENTAL, AND PUBLIC POLICY IEPT.
RECOMMENDED ACTION:
Adopt Resolution No. 9 8 -3 I 7 approving an agreement with Grueneich Resource Advocates for
energy related technical, environmental and public policy consulting services.
ITEM EXPLANATION
The San Diego Gas & Electric Company (SDG&E) must sell or otherwise divest its electric generating
plants, including the Encina Power Plant in Carlsbad. SDG&E announced its intent to auction the Encina
Power Plant on November 25, 1997, and on December 19, 1997, the utility filed an application with the
California Public Utility Commission (CPUC) for authorization of the sale.
The Encina Power Plant is situated on and impacts several hundred acres of coastal and lagoon property in
Carlsbad. The proposed sale of the plant presents a possible opportunity for the City to influence the
environmental impacts of the plant and the future uses of this land. As a result, following the utility's
announcement of its intent to auction the plant, the City became a participant in the CPUC review of the
proposed sale in an attempt to ensure that the City's land use and environmental concerns related to the
plant are considered before the sale is authorized. In addition, on May 12, 1998, Council approved a
Resolution of Intention to study and consider amendments to the General Plan, zoning designations and the
zoning ordinances pertaining to the Encina Power Plant and surrounding properties presently under the
ownership of SDG&E, to evaluate potential uses for this land that may better serve the community. This
property encompasses 680 acres and includes the land occupied by the power plant, the property used in
the power plant operations adjacent to the Agua Hedionda Lagoon, the lagoon itself and property east of
the plant. Finally, to ensure that all means possible to protect the community's interests are identified and
thoroughly evaluated, the energy related technical, environmental and public policy consultant Grueneich
Resource Advocates (GRA) was retained to identify other options for actions to eliminate or reduce the
environmental impacts of the plant and to achieve more compatible land uses on this property.
More consultant work in the areas of environmental studies, finance, regulatory review, legal research and
strategic planning will be required as further analysis is done. The extent of work necessary will depend on
study results and developments in the rapidly changing energy industry. As a result, staff is proposing a
one year agreement with GRA with the option to renew for a period of one year, at a cost not to exceed
$250,000.
GRA was selected for the earlier work and is the only consultant recommended for the agreement in
Exhibit 2 because GRA is the only fii identified that has the combined knowledge of and expertise in the
energy industry, the restructured electricity market, and the strategic planning and representation of a
municipality during the sale of a power plant in this new era of deregulation. This firm recently performed
work for the CityEounty of San Francisco which recommended GRA highly, and the quality of work done
by GRA for the City to date has been excellent. The only other firm staff learned might be qualified,
MRW & Associates, has cited a conflict of interest and declined to be considered as a candidate.
FISCAL IMPACT
The projected cost of the agreement is up to $250,000. Staff recommends that the funds be
appropriated from the Council Contingency Fund to the City Manager Professional Services
Account. All funds not used would be returned to the Council Contingency Fund.
EXHIBITS
1. Resolution No. ?e -3/ '7
2. Contract with Grueneich Resource Advocates
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RESOLUTION NO. 98-317
RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CARLSBAD, CALIFORNIA, APPROVING AN
AGREEMENT WITH GRUENEICH RESOURCE
ADVOCATES FOR ENERGY RELATED TECHNICAL,
ENVIRONMENTAL AND PUBLIC POLICY
CONSULTING SERVICES
WKEREAS, SDG&E must sell or otherwise divest the Encina Power Plant; and
WHEREAS, SDG&E announced its intent to auction the Encina Power Plant; and
WHEREAS, SDG&E filed an application with the California Public Utility
Commission (CPUC) for authorization to sell the Encina Power Plant; and
WHEREAS, the City has intervened in the CPUC process of reviewing the
application to ensure that the City’s land use and environmental concerns related to the plant are
considered before the sale is authorized; and
WHEREAS, the City is conducting a study to consider amendments to the General
Plan, zoning designations and the zoning ordinances pertaining to the Encina Power Plant and
surrounding properties presently under the ownership of SDG&E to evaluate potential uses for this
land that may better serve the community; and
WHEREAS, Council wishes to more fully explore options to reduce the adverse
environmental impacts of the current land uses and establish uses of the land that are more
compatible with the needs and goals of the community; and
WHEREAS, energy related technical, environmental and public policy consulting
services are needed for studies and analyses to explore these options; and
WHEREAS, Grueneich Resource Advocates is highly qualified and the only firm
identified with the skills necessary to provide the needed consulting services.
NOW, THEREFORE, be it resolved by the City Council of the City of
Carlsbad, California, as follows:
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1. That the above recitations are true and correct.
2. That the City Council hereby authorizes the Mayor to execute an agreement
with Grueneich Resource Advocates for energy related technical, environmental and public policy
consulting services.
3. That the Financial Director is authorized to transfer $250,000 from the
Council Contingency Fund to the City Manager Professional Services Account (001-1010-
7490).
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council
September of the City of Carlsbad on the 29th day of / 1998, by the following vote, to wit:
AYES: Council Members Lewis, Finnila, Nygaard and Kulchin
NOES: None
ATTEST:
al&/ Q-
ALETHA L. RAUTENKRANZ, City Clerk)
library - AB Gruenich
AGREEMENT
THIS AGREEMENT is made and entered into as of the 33 o-J day of
, 1998, by and between the CITY OF CARLSBAD, a municipal B
corporation, hereinafter referred to as 'City'', and Grueneich Resource Advocates, a
sole owner, hereinafter referred to as "Contractor."
RECITALS
City requires the services of a legal technical and public policy Contractor to
provide the necessary legal and technical services for consultation on energy and
environmental matters, and Contractor possesses the necessary s.kills and
qualifications to provide the services required by the City;
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. CONTRACTOR'S OBLIGATIONS
The Contractor shall perform the following:
A. Advise the City on matters relating to the energy industry, the restructured
electricity market, and the divestiture of a power plant.
B. Continue to advise the City on options for reducing or eliminating the
environmental impacts of the Encina Power Plant and influencing the future
uses of the plant property and surrounding properties to provide greater
access to beaches and land uses more compatible with the needs of the
community.
rev. 8/25/98
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C. Perform the necessary environmental and alternative plant and transmission
studies, financial analyses, regulatory review, legal research, strategic
planning and other advisory work as needed.
D. Assist the City in public information and education efforts.
E. Attend staff and City Council meetings as necessary.
2. CITY OBLIGATIONS
The City shall provide staff assistance and necessary documents
The City shall review Contractor's work product and either provide approval for
proceeding to the next assignment or provide Contractor with specific changes or
alternatives required to complete the assignment.
3. PROGRESS AND COMPLETION
The work under this contract will begin within ten (IO) days after receipt of
notification to proceed by the City and be completed within 365 calendar days of that
date. Extensions of time may be granted if requested by the Contractor and agreed to
in writing by the Risk Manager. The Risk Manager will give allowance for documented
and substantiated unforeseeable and unavoidable delays not caused by a lack of
foresight on the part of the Contractor, or delays caused by City inaction or other
agencies' lack of timely action.
4. FEES TO BE PAID TO CONTRACTOR
The total fee payable for the services to be performed shall be up to $250,000.
No other compensation for services will be allowed except those items covered by
supplemental agreements per Paragraph 8, ''Changes in Work." The City reserves the
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rev. 8/25/98
right to withhold a ten percent (10%) retention until the project has been accepted by
the City.
Incremental payments, if applicable, should be made as outlined in attached
Exhibit "A."
5. DU.RATION OF CONTRACT
This agreement shall extend for a period of one year from date thereof. The
contract may be extended by the City Manager for one additional one (1) year periods
or parts thereof, based upon a review of satisfactory performance and the City's needs.
The parties shall prepare extensions in writing indicating effective date and length of the
extended contract.
6. PAYMENT OF FEES
Payment of approved items on the invoice shall be mailed to the Contractor
within 30 days of receipt of the invoice.
7. FINAL SUBMISSIONS
Within n/a days of completion and approval of the n/a the Contractor shall deliver
to the City the following items:
8. CHANGES IN WORK
If, in the course of the contract, changes seem merited by the Contractor or the
City, and informal consultations with the other party indicate that a change in the
conditions of the contract is warranted, the Contractor or the City may request a change
in contract. Such changes shall be processed by the City in the following manner: A
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letter outlining the required changes shall be forwarded to the City by Contractor to
inform them of the proposed changes along with a statement of estimated changes in
charges or time schedule. A Standard Amendment to Agreement shall be prepared by
the City,and approved by the City according to the procedures described in Carlsbad
Municipal Code Section 3.28.172. Such Amendment to Agreement shall not render
ineffective or invalidate unaffected portions of the agreement.
9. COVENANTS AGAINST CONTINGENT FEES
The Contractor warrants that their firm has not employed or retained any
company or person, other than a bona fide employee working for the Contractor, to
solicit or secure this agreement, and that Contractor has not paid or agreed to pay any
company or person, other than a bona fide employee, any fee, commission,
percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting
from, the award or making of this agreement. For breach or violation of this warranty,
the City shall have the right to annul this agreement without liability, or, in its discretion,
to deduct from the agreement price or consideration, or otherwise recover, the full
amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee.
IO. NONDISCRIMINATION CLAUSE
The Contractor shall comply with the state and federal laws regarding
nondiscrimination.
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rev. 812 5/98
11. TERMINATION OF CONTRACT
In the event of the Contractor's failure to prosecute, deliver, or perform the work
as provided for in this contract, the City Manager may terminate this contract for
nonperformance by notifying the Contractor by certified mail of the termination of the
Contractor. The Contractor, thereupon, has five (5) working days to deliver said
documents owned by the City and all work in progress to the Risk Manager. The Risk
Manager shall make a determination of fact based upon the documents delivered to
City of the percentage of work which the Contractor has performed which is usable and
of worth to the City in having the contract completed. Based upon that finding as
reported to the City Manager, the Manager shall determine the final payment of the
contract.
This agreement may be terminated by either party upon tendering thirty (30)
days written notice to the other party. In the event of such suspension or termination,
upon request of the City, the Contractor shall assemble the work product and put same
in order for proper filing and closing and deliver said product to City. In the event of
termination, the Contractor shall be paid for work performed to the termination date;
however, the total shall not exceed the lump sum fee payable under paragraph 4. The
City Manager shall make the final determination as to the portions of tasks completed
and the compensation to be made.
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12. CLAIMS AND LAWSUITS
The Contractor agrees that any contract claim submitted to the City must be
asserted as part of the contract process as set forth in this agreement and not in
anticipation of litigation or in conjunction with litigation. The Contractor acknowledges
that if a false claim is submitted to the City, it may be considered fraud and the
Contractor may be subject to criminal prosecution. The Contractor acknowledges that
California Government Code sections 12650 et sea., the False Claims Act, provides for
civil penalties where a person knowingly submits a false claim to a public entity. These
provisions include false claims made with deliberate ignorance of the false information
or in reckless disregard of the truth or falsity of information. If the City of Carlsbad seeks
to recover penalties pursuant to the False Claims Act, it is entitled to recover its
litigation costs, including attorney's fees. The Contractor acknowledges that the filing of
a false claim may subject the Contractor to an administrative debarment proceeding
wherein the Contractor may be prevented to act as a Contractor on any public work or
improvement for a period of up to five years. The Contractor acknowledges debarment
by another jurisdiction is grounds for the City of Carlsbad to disqualify the Contractor
from the selection process. g(lnitial)
The provisions of Carlsbad Municipal
3.32.027 and 3.32.028 pertaining to false claims
Code sections 3.32.025, 3.32.026,
are incorporated herein by reference.
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13. STATUS OF THE CONTRACTOR
The Contractor shall perform the services provided for herein in Contractor's own
way as an independent Contractor and in pursuit of Contractor's independent calling,
and not as an employee of the City. Contractor shall be under control of the City only
as to the result to be accomplished, but shall consult with the City as provided for in the
request for proposal. The persons used by the Contractor to provide services under this
agreement shall not be considered employees of the City for any purposes whatsoever.
The Contractor is an independent Contractor of the City. The payment made to
the Contractor pursuant to the contract shall be the full and complete compensation to
which the Contractor is entitled. The City shall not make any federal or state tax
withholdings on behalf of the Contractor or its employees or subcontractors. The City
shall not be required to pay any workers' compensation insurance or unemployment
contributions on behalf of the Contractor or its employees or subcontractors. The
Contractor agrees to indemnify the City within 30 days for any tax, retirement
contribution, social security, overtime payment, unemployment payment or workers'
compensation payment which the City may be required to make on behalf of the
Contractor or any employee or subcontractor of the Contractor for work done under this
agreement or such indemnification amount may be deducted by the City from any
balance owing to the Contractor.
The Contractor shall be aware of the requirements of the Immigration Reform
and Control Act of 1986 and shall comply with those requirements, including, but not
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limited to, verifying the eligibility for employment of all agents, employees,
subcontractors and Consultants that are included in this agreement.
14. CONFORMITY TO LEGAL REQUIREMENTS
The Contractor shall cause all drawings and specifications to conform to all
applicable requirements of law: federal, state and local. Contractor shall provide all
necessary supporting documents, to be filed with any agencies whose approval is
necessary.
The City will provide copies of the approved plans to any other agencies.
15. OWNERSHIP OF DOCUMENTS
All plans, studies, sketches, drawings, reports, and specifications as herein
required are the property of the City, whether the work for which they are made be
executed or not. In the event this contract is terminated, all documents, plans,
specifications, drawings, reports, and studies shall be delivered forthwith to the City.
Contractor shall have the right to make one (I) copy of the plans for its records.
16. REPRODUCTION RIGHTS
The Contractor agrees that all copyrights which arise from creation of the work
pursuant to this contract shall be vested in City and hereby agrees to relinquish all
claims to such copyrights in favor of City.
' 17. HOLD HARMLESS AGREEMENT
Contractor agrees to indemnify and hold harmless the City of Carlsbad and its
officers, officials, employees and volunteers from and against all claims, damages,
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losses and expenses including attorneys fees arising out of the performance of the
work described herein caused by any willful misconduct, or negligent act, or omission of
the contractor, any subcontractor, anyone directly or indirectly employed by any of them
or anyone for whose acts any of them may be liable.
18. ASSIGNMENT OF CONTRACT
The Contractor shall not assign this contract or any part thereof or any monies
due thereunder without the prior written consent of the City.
19. SUBCONTRACTING
If the Contractor shall subcontract any of the work to be performed under this
contract by the Contractor, Contractor shall be fully responsible to the City for the acts
and omissions of Contractor's subcontractor and of the persons either directly or
indirectly employed by the subcontractor, as Contractor is for the acts and omissions of
persons directly employed by Contractor. Nothing contained in this contract shall
create any contractual relationship between any subcontractor of Contractor and the
City. The Contractor shall bind every subcontractor and every subcontractor of a
subcontractor by the terms of this contract applicable to Contractor's work unless
specifically noted to the contrary in the subcontract in question approved in writing by
the City.
20. PROHIBITED INTEREST
No official of the City who is authorized in such capacity on behalf of the City to
negotiate, make, accept, or approve, or take part in negotiating, making, accepting, or
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approving of this agreement, shall become directly or indirectly interested personally in
this contract or in any part thereof. No officer or employee of the City who is authorized
in such capacity and on behalf of the City to exercise any executive, supervisory, or
similar functions in connection with the performance of this contract shall become
directly or indirectly interested personally in this contract or any part thereof.
21. VERBAL AGREEMENT OR CONVERSATION
No verbal agreement or conversation with any officer, agent, or employee of the
City, either before, during or after the execution of this contract, shall affect or modify
any of the terms or obligations herein contained nor entitle the Contractor to any
additional payment whatsoever under the terms of this contract.
22. SUCCESSORS OR ASSIGNS
Subject to the provisions of Paragraph 17, "Hold Harmless Agreement," all
terms, conditions, and provisions hereof shall inure to and shall bind each of the parties
hereto, and each of their respective heirs, executors, administrators, successors, and
assigns.
23. EFFECTIVE DATE
This agreement shall be effective on and from the day and year first written
above.
24. . CONFLICT OF INTEREST
The City has determined, using the guidelines of the Political Reform Act and the
City's conflict of interest code, that the Contractor will not be required to file a conflict of
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interest statement as a requirement of this agreement. However, Contractor. hereby
acknowledges that Contractor has the legal responsibility for complying with the
Political Reform Act and nothing in this agreement releases Contractor from this
responsibility.
rev. 812 5/98
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25. INSURANCE
The Contractor shall obtain and maintain for the duration of the contract and any
and all amendments insurance against claims for injuries to persons or damage to
property which may arise out of or in connection with performance of the work
hereunder by the Contractor, his agents, representatives, employees or subcontractors.
Said insurance shall be obtained from an insurance carrier admitted and authorized to
do business in the State of California. The insurance carrier is required to have a
current Best's Key Rating of not less than "A-:V" and shall meet the City's policy for
insurance as stated in Resolution No. 91-403.
A. Coveraqes and Limits.
Contractor shall maintain the types of coverages and minimum limits
indicated herein, unless a lower amount is approved by the City Attorney or City
Manager:
1. Comprehensive General Liability insurance. $1,000,000 combined
single-limit per occurrence for bodily injury, personal injury and property damage. If the
submitted policies contain aggregate limits, general aggregate limits shall apply
separately to the work under this contract or the general aggregate shall be twice the
required per occurrence limit.
2. Automobile Liability (if the use of an automobile is involved for
Contractor's work for the City). $1,000,000 combined single-limit per accident for bodily
injury and property damage.
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3. Workers' Compensation and Employer's Liability. Workers'
Compensation limits as required by the Labor Code of the State of California and
Employer's Liability limits of $1,000,000 per accident for bodily injury.
4. Professional Liability. Errors and omissions liability appropriate to
the contractor's profession with limits of not less than $1,000,000 per claim. Coverage
shall be maintained for a period of five years following the date of completion of the
work.
B. Additional Provisions.
Contractor shall ensure that the policies of insurance required under this
agreement contain, or are endorsed to contain, the following provisions.
1. The City shall be named as an additional insured on all policies
excluding Workers' Compensation and Professional Liability.
2. The Contractor shall furnish certificates of insurance to the City
before commencement of work.
3. The Contractor shall obtain occurrence coverage, excluding
Professional Liability which shall be written as claims-made coverage.
4. This insurance shall be in force during the life of the agreement and
any extension thereof and shall not be canceled without 30 days prior written notice to
the City sent by certified mail.
5. If the Contractor fails to maintain any of the insurance coverages
required herein, then the City will have the option to declare the Contractor in breach, or
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may purchase replacement insurance or pay the premiums that are due on existing
policies in order that the required coverages may be maintained. The Contractor is
responsible for any payments made by the City to obtain or maintain such insurance
and the City may collect the same from the Contractor or deduct the amount paid from
any sums due the Contractor under this agreement.
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26. RESPONSIBLE PARTIES
The name of the persons who are authorized to give written notices or to receive
written notice on behalf of the City and on behalf of the Contractor in connection with
the foregoing are as follows:
For City: Title Risk Manager
Name Erin Letsch
Address1 200 Carlsbad Village Drive
Carlsbad, CA 92008 ’
Title Owner For Contractor:
Name Dian Grueneich
Address 582 Market Street, Ste. 407
San Francisco, CA 94104
27. BUSINESS LICENSE
Contractor shall obtain and maintain a City of Carlsbad Business License for the
duration of the contract.
28. ENTIRE AGREEMENT
This agreement, together with any other written document referred to or
contemplated herein, embody the entire agreement and understanding between the
parties relating to the subject matter hereof. Neither this agreement nor any provision
hereof may be amended, modified, waived or discharged except by an instrument in
writing executed by the party against which enforcement of such amendment, waiver or
discharge is sought.
rev. 8/25/98
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Executed by Contractor this 22 d day of Sfl&-L/ 119PB.
CONTRACTOR: CITY OF -CARLSBAD, a municipal hd 6R krm ICC-C (name of Contractor)
By:
(sign here)
UW~Y- (print nameltitle) ATTEST:
By:
(sign here) aecd, k! Pd- ALETHA L. RAUTENKRANZ
(print nameltitle) City Clerk
(Proper notarial acknowledgment of execution by Contractor must be attached.)
(President or vice-president and secretary or assistant secretary must sign for
corporations. If only one officer signs, the corporation must attach a resolution certified
by the secretary or assistant secretary under corporate seal empowering that officer to
bind the corporation.)
APPROVED AS TO FORM:
RONALD R. BALL
City Attorney
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT NO. 5907
State of
County of SW hE&3
On ?hs/Pa DATE before me,~~~&.k@ NAME, TITLE OF OFFICER - E.G.. "JANE p$7ne/ DOE, NOTARY f PUBLIC" Y
personally appeared DIM @JWme raft 9
0 personally known to me - OR - 6oved to me on the basis of satisfactory evidence
NAME(S) OF SIGNER(S)
to be the personM whose nameu is/-
subscribed to the within instrument and ac-
knowledged to me that ke/she/t&ey executed
the same in &idher/#& authorized
capacity-), and that by bk/her/tk+r
signaturem on the instrument the person&),
or the entity upon behalf of which the
personw acted, executed the instrument.
WlTmS my hand and omial seal.
f SIGNATURE OF NOTARY
OPTIONAL
Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent reattachment of this form.
CAPACITY CLAIMED BY SIGNER
0 INDIVIDUAL 0 CORPORATE OFFICER
DESCRIPTION OF AllACHED DOCUMENT
TITLE OR TYPE OF DOCUMENT TITLE@)
0 PARTNER(S) c] LIMITED
0 AlTORNEY-IN-FACT NUMBER OF PAGES 0 TRUSTEE(S) 0 GUARDIAN/CONSERVATOR 0 OTHER:
GENERAL
DATE OF DOCUMENT
SIGNER IS REPRESENTING:
NAME OF PERSON@) OR ENTITY(IES)
SIGNER(S) OTHER THAN NAMED ABOVE
EXHIBIT A
Grueneich Resource Advocate
Billing Rates
August 10, 1998
I I 1 Dim M. Grueneich
$80 Legal Assistant
$140 Junior Associate
$1 65 Jodi T. London
$165 Traci A. Grundon
$205
Out-of-pocket costs, such as travel, are billed at cost with no mark-up. Also billed at actual
cost are postage, courier deliveries, telephone and any special materials required which are not
generally on-hand. Outgoing facsimiles are billed at 50# per page; there is no charge for incoming
faxes. In-house photocopies are billed at 20p per page. The client will also be billed for major report
reproduction which is more efticiently done professionally out-of-house.
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October 7, 1998
Grueneich Resource Advocates
Attn: Dan Grueneich
582 Market Street, Suite 407
San Francisco, CA 94104
RE: ENERGY CONSULTING SERVICES - ENCINA POWER PLANT
Enclosed for your records are copies of Council Agenda Bill No. 14,863 and Council
Resolution No. 98-31 7. These documents went before the Carlsbad City Council on
September 9, 1998 and were approved.
Also enclosed for your files is one original and fully executed Agreement to provide
technical, environmental and-public policy consulting services in regards to the Encina
Power Plant, now owned by the San Diego Gas & Electric Company.
If you have specific questions regarding this agreement, please call Ms. Erin Letsch,
Risk Manager, at (760) 434-2807.
KATHLEEN D. SHOUP
Sr. Office Specialist
1200 Carlsbad Village Drive 0 Carlsbad, CA 92008-1 989 0 (760) 434-2808 @