Resolution No. 100412
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RESOLUTION NO. 10,041
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON APPROVING AND AUTHORIZING THE EXECUTION OF A
CONSULTING SERVICES AGREEMENT BY AND BETWEEN THE
CITY OF VERNON AND INTERSTATE GAS SERVICES, INC.
WHEREAS, on March 22, 2006, the City Council of the City of
Vernon adopted Resolution No. 8990, as amended by Contract Change
Order Nos. 1 and 2, approving a Letter Agreement for Consulting
Services with Interstate Gas Services, Inc. ("IGS") for energy -related
services; and
WHEREAS, the core competency of IGS is municipal gas
facilities in California; and
WHEREAS, IGS provides services to most such facilities in
California; and
WHEREAS, Dan Bergmann ("Bergmann"), the principle consultant
for IGS, is an independent consultant with twenty-four years
experience in natural gas in California and no current affiliation to
any natural gas marketers; and
WHEREAS, Bergmann, through IGS, has been providing services
to the City of Vernon for over three (3) years and has personally
overseen all aspects of the City's distribution system start-up which
included pressurizing the system with natural gas, writing the
business plan for retail gas service, developing a rate structure,
writing the City gas tariff, and implementing remote meter reading
Iequipment; and
WHEREAS, IGS maintains various monthly reports to assure
jaccurate tracking of gas quantities and finances associated with the
(system, provides key support in promoting the gas system to new
1 customers within City of Vernon, and continues to manage the City's
2 natural gas purchase and sale agreements with Citigroup, including the
3 bond -financed prepay agreement; and
4 WHEREAS, the Director of Light & Power has recommended by
5 memo dated August 11, 2009, that a new agreement be executed with IGS
6 for the period of July 1, 2009 through June 30, 2010 for an amount
7 not -to -exceed $140,000.00 for the purpose of providing energy -related
8 consulting services including, but not limited to, natural gas
9 operations management on an as -needed basis; and
10 WHEREAS, the City Council of the City of Vernon has
11 determined that, pursuant to the provisions of subsection (a) of
12 Section 2.27 of the Vernon City Code, it is in the public interest and
13 necessity to enter into a new agreement with IGS to enhance the
14 services provided to the residents and businesses in the City of
15 Vernon.
16 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
17 CITY OF VERNON AS FOLLOWS:
18 SECTION 1: The City Council of the City of Vernon hereby
19 finds and determines that the recitals contained hereinabove are true
20 and correct.
21 SECTION 2: The City Council of the City of Vernon hereby
22 approves the Consulting Services Agreement with Interstate Gas
23 Services, Inc., in substantially the same form as the copy which is
24 attached hereto as Exhibit A and incorporated by reference.
25 SECTION 3: The City Council of the City of Vernon hereby.
26 authorizes the Mayor or Mayor Pro-Tem to execute the Agreement for,
27 and on behalf of, the City of Vernon and the City Clerk, or Deputy
28 City.Clerk, is hereby authorized to attest thereto.
2
1 SECTION 4: The City Administrator, or his designee, is
2 hereby authorized to make whatever nonsubstantive changes, upon advice
3 of counsel, to the Agreement and all related documents that become
4 necessary to implement and carry out the purpose of this resolution.
5 SECTION 5: The City Council of the City of Vernon hereby
6 directs the. City Clerk, or her designee, to send a fully executed
7 Agreement to IGS.
8 SECTION 6: The City Clerk of the City of Vernon shall
9 certify to the passage, approval and adoption of this resolution, and
10 the City Clerk of the City of Vernon shall cause this resolution and
11 her certification to be entered in the Book of Resolutions of the
12 Council of this City.
13 APPROVED AND ADOPTED this 17th day of August, 2009.
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18 ATTEST:
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20 ANUELA GIRON, City Clerk
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Name: Hilario Gonzales
Title: Mavor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, MANUELA GIRON, City Clerk of the City of Vernon, do hereby
certify that the foregoing Resolution, being Resolution No. 10,041, was
duly passed, approved and adopted by the City Council of the City of
Vernon at regular meeting of the City Council duly held on Monday,
August 17, 2009, and thereafter was duly signed by the Mayor or Mayor
Pro-Tem of the City �oJf Vernon.
Executed this 1 l/lAday of August, 2009, at Vernon, California.
T14ANUELA GIRON, C'ty Clerk
(SEAL)
- 4 -
EXHIBIT A
CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF VERNON AND INTERSTATE GAS SERVICES, INC.
This Agreement is made and entered into as of by and between the City of
Vernon ("Vernon") and Interstate Gas Services, Inc. ("IGS," and together with Vernon, the
"Parties") for the purpose of providing energy -related consulting services to Vernon. In
consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
I. SCOPE OF SERVICES:
IGS shall provide consulting services relating to Natural Gas Operations management on an as -
needed basis. This Agreement may be used for any of the following items, when specifically
approved by the Director of Light and Power for Vernon.
• Evaluation of natural gas purchase terms and conditions
• Preliminary evaluation of physical state natural gas distribution system
• Investigation of appropriate remote meter reading system
• Development of natural gas rates, rules, and customer service agreement
• Market research and investigative meetings with potential customers
• Development of a Gas Enterprise Fund business plan, including economic
modeling
• Development or acquisition of gas operations software to monitor gas movement
• Development of staff (or facilitate outsource) for ongoing gas nomination
requirements
• Presentation of financial risk exposure from transporting others' gas, including
mitigation
• Management advice regarding gas procurement, gas imbalance management,
contract administration, bond financed prepay gas, budgeting, marketing and
customer contact support
• Oversight of DOT safety compliance
• Presentation of findings to city council, as requested
As principal consultant, Dan Bergmann of IGS will maintain close accountability with appropriate
Vernon staff for all work undertaken. Billing hours for work completed shall be shown by day
with associated description of work completed.
1155957v2
II. FEES:
Vernon agrees to compensate IGS for Mr. Bergmann's services at a rate of $200.00 per hour for
work hereunder for the first 24 hours of each month. Vernon agrees to compensate IGS for Mr.
Bergmann's services at a rate of $150.00 per hour for work hereunder for every hour after the
first 24 hours of each month. The amount paid to IGS pursuant to this agreement shall not
exceed $140,000.00 for the total Term (as defined in Section III.) of this Agreement unless
additional payment is approved in writing and signed by both Parties.
Vernon agrees to reimburse Mr. Bergmann for all Vernon -related travel expenses, such as
airport parking, air fare, rental car expenses, reasonable hotel, and meals. Personal car mileage
shall be reimbursed at the highest IRS -approved limit.
Vernon further agrees to compensate Mr. Bergmann at a rate of $75.00 per hour for work -
related travel time, including round trip travel from IGS offices at Walnut Creek, California, to
Vernon.
III. TERM:
The Term of this Agreement shall run from July 1, 2009 through June 30, 2010. This
Agreement may be terminated by either party on 30 days written notice.
IV. CONFIDENTIALITY:
IGS and Vernon recognize and agree that during the Term, both will gain access to certain
information critical to the ongoing business operations of each entity. This may include, but not
be limited to, customers, clients, and supplier identities, transportation arrangements and terms,
and conditions of certain contractual arrangements relative to the above. Both parties to this
Agreement specifically agree to keep any and all such information strictly confidential
throughout the Term defined hereunder and subsequent to the termination of this Letter
Agreement unless disclosure is otherwise required by law. IGS and Vernon further agree not to
utilize any such information to circumvent such ongoing business activities of each other, either
directly and/or through third parties.
V. WARRANTY:
IGS shall perform all services with due diligence in a good workmanlike manner under generally
accepted industry professional standards and, where applicable, standards imposed by law for
comparable or similar services. All materials incorporated into services shall be of good quality.
VI. INDEMNIFICATION:
Vernon agrees to indemnify IGS and save it harmless from all losses, liabilities, or claims
including attorneys' fees and costs of court ("Claims"), from any and all persons, arising from or
out of claims associated with agreements between Vernon and its suppliers. Vernon further
agrees not to involve IGS in present or future litigation between Vernon and its gas/electric
suppliers, as a result of Vernon utilizing IGS work products as evidence. IGS agrees to
indemnify Vernon and save it harmless from all Claims, from any and all persons, arising from
or out of claims directly between IGS, its customers, suppliers, and employees.
2
1155957v2
VII. INSURANCE:
IGS shall at all times during the Term of this Agreement carry, maintain, and keep in full force
and effect insurance coverage as specified in Attachment A, which is attached hereto and
incorporated herein by this reference.
The policy or policies required by this Agreement shall be issued by an insurer admitted in the
State of California and with a rating of at least a B+;VII in the latest edition of Best's Insurance
Guide.
IGS agrees that if it does not keep the aforesaid insurance in full force and effect City may either
immediately terminate this Agreement or, if insurance is available at a reasonable cost, City
may take out the necessary insurance and pay, at IGS's expense, the premium thereon.
At all times during the Term of this Agreement, IGS shall maintain on file with the City Clerk a
certificate or certificates of insurance satisfactory to the City Attorney and Risk Manager,
showing that the aforesaid policies are in effect in the required amounts. IGS shall, prior to
commencement of work under this Agreement, file with the City Clerk such certificate or
certificates.
The insurance provided by IGS shalt be primary to any coverage available to City, and any
insurance or self-insurance maintained by City, its officers, officials, employees, agents or
volunteers shall be excess of IGS's insurance and shall not contribute with it. The policies of
insurance required by this Agreement shall include provisions for waiver of subrogation. IGS
hereby waives all rights of subrogation against City.
Any deductibles or self -insured retentions must be declared to and approved by City. At the
option of City, IGS shall either reduce or eliminate the deductibles or self -insured retentions with
respect to City, or IGS shall procure a bond guaranteeing payment of losses and expenses.
Vill. INDEPENDENT CONTRACTOR:
In performing under this agreement, IGS shall act at all times as an independent contractor. IGS
shall not make any commitment or incur any charge or expense in the name of Vernon.
IGS expressly agrees, acknowledges, and stipulates that neither this Agreement nor the
performance of its obligations or duties thereunder shall ever result in IGS, or anyone employed
by IGS, being:
A. An employee, agent, servant or representative of Vernon; or
B. Entitled to any benefits from Vernon, including, without limitation, pension, profit
sharing, accident insurance, or health, medical, life, or disability insurance
benefits or coverage, to which employees of Vernon are entitled.
The sole and only compensation and/or benefit of any nature to which IGS shall be entitled are
the payments provided for herein. Vernon shall have no direction or control of IGS or its
employees and agents except in the results to be obtained subject to Vernon's right to
review/inspect the services. The actual performance and supervision of all services shall be by
IGS, but the services shall meet the approval of Vernon.
3
1155957v2
IX. SOCIAL SECURITY AND WAGE TAX LIABILITY:
IGS agrees to pay timely and to accept exclusive liability for the payroll taxes, contributions for
unemployment compensation insurance, old age benefits, social security, and any other
payments now or hereafter imposed by the Government of the United States or by any state or
political subdivision thereof, which are measured by the ages, salaries or other remuneration
paid to IGS's employees. IGS agrees to indemnify Vernon and save it free and harmless from
and against any and all taxes, contributions, and/or payments imposed by law upon IGS.
X. ASSIGNMENTS AND SUBCONTRACTS:
This Agreement shall not be assigned or subcontracted.
XI. PAYMENT:
IGS shall bill Vernon for work completed on a monthly basis. Payment is due 15 days after
receipt of the invoice. At IGS sole discretion, overdue payments may accrue a late charge of 1%
per month.
XII. NOTICES:
Any formal notice, request or demand that either party gives to the other respecting this
agreement shall be in writing and shall be mailed by registered or certified mail or delivered in
hand to the following address of the other party:
Vernon City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attn: Donal O'Callaghan
Director of Light and Power
Interstate Gas Services, Inc. Interstate Gas Services, Inc.
1204 Alpine Road, Suite 2
Walnut Creek, CA 94596
Attn: Dan Bergmann, President
XIII. SEVERABILITY:
Wherever possible, each provision of this Agreement shall be interpreted in such a manner as
to be valid under applicable law. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall
nevertheless continue in full force and effect.
XIV. ENTIRE AGREEMENT; MODIFICATION:
This Agreement contains the entire understanding between the parties relating to the obligations
of the parties described in this Agreement. All prior or contemporaneous agreements,
understandings, representations and statements, oral or written, are merged into this
Agreement and shall be of no further force or effect. This Agreement may be amended only by
a written instrument signed by both the City and the IGS.
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1155957v2
XV. GOVERNING LAW:
The interpretation and implementation of this Agreement shall be governed by the domestic law
of the State of California.
XVI. AUTHORITY TO EXECUTE AGREEMENT:
The person or persons. executing this Agreement on behalf of IGS represent that he or she has
the authority to execute this Agreement on behalf of IGS and has the authority to bind IGS to
the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by and
through their authorized officers on the date, month and year first written above.
IGS: VERNON:
Interstate Gas Services, Inc. City of Vernon
Authorized
Signature:
5
Title: Mayor/Mayor Pro-Tem
Date:
ATTEST:
Manuela Giron, City Clerk
APPROVED AS TO FORM:
Laurence S. Wiener, City Attorney
1155957v2
ATTACHMENT A
INSURANCE SCHEDULE (IGS)
The consultant shall provide proof of insurance, including a standard certificate of insurance, in
at least the following amounts and coverage (combined single limit permitted):
I. Coverage and Limits
Hazards
Automobile Liability
Owned Automobiles
Hired Automobiles
Non -Owned
Automobiles
Workers' Compensation
Employers' Liability
II. Liability
Premises Operations
Independent Contractors
Products — Completed
Operations
Contractual Liability
Professional Liability
Bodily Injury Property Damage
Each Person Each Accident Each Accident
$500,000 $1,000,000 $500,000
$500,000 $1,000,000 $500,000
$500,000 $1,000,000
$ Statutory
$1,000,000 per employer
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$500,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
a. The general liability policy shall contain the following special endorsements which shall
be noted on or attached to the standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers, officials, employees, agents,
and volunteers as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or
material reduction of coverage.
3. An endorsement providing coverage for all operations under this Agreement.
4. Such other endorsement as may be required by addendum hereto.
5. A copy of your general and professional insurance policy declarations page.
6. Copy of schedule of forms of endorsements.
C.
1155957v2
610
,t - -
4305 Santa Fe Avenue, Vernon, California 90058
Telephone (323) 583-8811
August 26, 2009
Mr. Dan Bergmann, President
Interstate Gas Services, Inc.
1204 Alpine Road, Suite 2
Walnut Creek, CA 94596
Re: Consulting Services Agreement
Dear Mr. Bergmann:
The insurance requirements have been met. Transmitted herewith•
is a fully executed agreement as referenced above, approved by
City Council on August 17, 2009, through Resolution No. 10,041.
If you have any questions regarding this matter, please call Mr.
Donal O'Callaghan, at (323) 583-8811 ext. 834.
C very truly yours,
4Ne 1 -41 v i on
City Clerk
NG:dj
c: Donal O'Callaghan
Purchasing Department
Resolution No. 10,041
Agreement File No. 09-105
�ExcCusiveCy Industriaf
CONSULTING SERVICES AGREEMENT BETWEEN
THE CITY OF VERNON AND INTERSTATE GAS SERVICES, INC.
This Agreement is made and entered into as of August 17, 2009, by and between the City of
Vernon ("Vernon") and Interstate Gas Services, Inc. ("IGS," and together with Vernon, the
"Parties") for the purpose of providing energy -related consulting services to Vernon. In
consideration of the mutual covenants and conditions set forth herein, the parties agree as
follows:
I. SCOPE OF SERVICES:
IGS shall provide consulting services relating to Natural Gas Operations management on an as -
needed basis. This Agreement may be used for any of the following items, when specifically
approved by the Director of Light and Power for Vernon.
• Evaluation of natural gas purchase terms and conditions
• Preliminary evaluation of physical state natural gas distribution system
• Investigation of appropriate remote meter reading system
• Development of natural gas rates, rules, and customer service agreement
• Market research and investigative meetings with potential customers
• Development of a Gas Enterprise Fund business plan, including economic
modeling
• Development or acquisition of gas operations software to monitor gas movement
• Development of staff (or facilitate outsource) for ongoing gas nomination
requirements
• Presentation of financial risk exposure from transporting others' gas, including
mitigation
• Management advice regarding gas procurement, gas imbalance management,
contract administration, bond financed prepay gas, budgeting, marketing and
customer contact support
• Oversight of DOT safety compliance
• Presentation of findings to city council, as requested
As principal consultant, Dan Bergmann of IGS will maintain close accountability with appropriate
Vernon staff for all work undertaken. Billing hours for work completed shall be shown by day
with associated description. of work completed.
1155957v2
II. FEES:
Vernon agrees to compensate IGS for Mr. Bergmann's services at a rate of $200.00 per hour for
work hereunder for the first 24 hours of each month. Vernon agrees to compensate IGS for Mr.
Bergmann's services at a rate of $150.00 per hour for work hereunder for every hour after the
first 24 hours of each month. The amount paid to IGS pursuant to this agreement shall not
exceed $140,000.00 for the total Term (as defined in Section III.) of this Agreement unless
additional payment is approved in writing and signed by both Parties.
Vernon agrees to reimburse Mr. Bergmann for all Vernon -related travel expenses, such as
airport parking, air fare, rental car expenses, reasonable hotel, and meals. Personal car mileage
shall be reimbursed at the highest IRS -approved limit.
Vernon further agrees to compensate Mr. Bergmann.at a rate of $75.00 per hour for work -
related travel time, including round trip travel from IGS offices at Walnut Creek, California, to
Vernon.
III. TERM:
The Term of this Agreement shall run from July 1, 2009 through June 30, 2010. This
Agreement may be terminated by either party on 30 days written notice.
IV. CONFIDENTIALITY:
IGS and Vernon recognize and agree that during the Term, both will gain access to certain
information critical to the ongoing business operations of each entity. This may include, but not
be limited to, customers, clients, and supplier identities, transportation arrangements and terms,
and conditions of certain contractual arrangements relative to the above. Both parties to this
Agreement specifically agree to keep any and all such information strictly confidential
throughout the Term defined hereunder and subsequent to the termination of this Letter
Agreement unless disclosure is otherwise required by law. IGS and Vernon further agree not to
utilize any such information to circumvent such ongoing business activities of each other, either
directly and/or through third parties.
V. WARRANTY:
IGS shall perform all services with due diligence in a good workmanlike manner under generally
accepted industry professional standards and, where applicable, standards imposed by law for
comparable or similar services. All materials incorporated into services shall be of good quality.
VI. INDEMNIFICATION:
Vernon agrees to indemnify IGS and save it harmless from all losses, liabilities, or claims
including attorneys' fees and costs of court ("Claims"), from any and all persons, arising from or
out of claims associated with agreements between Vernon and its suppliers. Vernon further
agrees not to involve IGS in present or future litigation between Vernon and its gas/electric
suppliers, as a result of Vernon utilizing IGS work products as evidence. IGS agrees to
indemnify Vernon and save it harmless from all Claims, from any and all persons, arising from
or out of claims directly between IGS, its customers, suppliers, and employees.
2
1155957v2
VII. INSURANCE:
IGS shall at all times during the Term of this Agreement carry, maintain, and keep in full force
and effect insurance coverage as specified in Attachment A, which is attached hereto and
incorporated herein by this reference.
The policy or policies required by this Agreement shall be issued by an insurer admitted in the
State of California and with a rating of at least a B+;VII in the latest edition of Best's Insurance
Guide.
IGS agrees that if it does not keep the aforesaid insurance in full force and effect City may either
immediately terminate this Agreement or, if insurance is available at a reasonable cost, City
may take out the necessary insurance and pay, at ICS's expense, the premium thereon.
At all times during the Term of this Agreement, IGS shall maintain on file with the City Clerk a
certificate or certificates of insurance satisfactory to the City Attorney and Risk Manager,
showing that the aforesaid policies are in effect in the required amounts. IGS shall, prior to
commencement of work under this Agreement, file with the City Clerk such certificate or
certificates.
The insurance provided by IGS shall be primary to any coverage available to City, and any
insurance or self-insurance maintained by City, its officers, officials, employees, agents or
volunteers shall be excess of IGS's insurance and shall not contribute with it. The policies of
insurance required by this Agreement shall include provisions for waiver of subrogation. IGS
hereby waives all rights of subrogation against City.
— — Any deductibles or self -insured retentions must be declared to and approved by City. At the
option of City, IGS shall either reduce or eliminate the deductibles or self -insured retentions with
respect to City, or IGS shall procure a bond guaranteeing payment of losses and expenses.
VIII. INDEPENDENT CONTRACTOR:
In performing under this agreement, IGS shall act at all times as an independent contractor. IGS
shall not make any commitment or incur any charge or expense in the name of Vernon.
IGS expressly agrees, acknowledges, and stipulates that neither this Agreement nor the
performance of its obligations or duties thereunder shall ever result in IGS, or anyone employed
by IGS, being:
A. An employee, agent, servant or representative of Vernon; or
B. Entitled to any benefits from Vernon, including, without limitation, pension, profit
sharing, accident insurance, or health, medical, life, or disability insurance
benefits or coverage, to which employees of Vernon are entitled.
The sole and only compensation and/or benefit of any nature to which IGS shall be entitled are
the payments provided for herein. Vernon shall have no direction or control of IGS or its
employees and agents except in the results to be obtained subject to Vernon's right to
review/inspect the services. The actual performance and supervision of all services shall be by
IGS, but the services shall meet the approval of Vernon.
3
1155957v2
IX. SOCIAL SECURITY AND WAGE TAX LIABILITY:
IGS agrees to pay timely and to accept exclusive liability for the payroll taxes, contributions for
unemployment compensation insurance, old age benefits, social security, and any other
payments now or hereafter imposed by the Government of the United States or by any state or
political subdivision thereof, which are measured by the ages, salaries or other remuneration
paid to IGS's employees. IGS agrees to indemnify Vernon and save it free and harmless from
and against any and all taxes, contributions, and/or payments imposed by law upon IGS.
X. ASSIGNMENTS AND SUBCONTRACTS:
This Agreement shall not be assigned or subcontracted.
XI. PAYMENT:
IGS shall bill Vernon for work completed on a monthly basis. Payment is due 15 days after
receipt of the invoice. At IGS sole discretion, overdue payments may accrue a late charge of 1%
per month.
XII. NOTICES:
Any formal notice, request or demand that either party gives to the other respecting this
agreement shall be in writing and shall be mailed by registered or certified mail or delivered in
hand to the following address of the other party:
Vernon
Interstate Gas Services, Inc.
XIII. SEVERABILITY:
City of Vernon
4305 Santa Fe Avenue
Vernon, CA 90058
Attn: Donal O'Callaghan
Director of Light and Power
Interstate Gas Services, Inc.
1204 Alpine Road, Suite 2
Walnut Creek, CA 94596
Attn: Dan Bergmann, President
Wherever possible, each provision of this Agreement shall be interpreted in such a manner as
to be valid under applicable law. If any provision of this Agreement is determined by a court of
competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall
nevertheless continue in full force and effect.
XIV. ENTIRE AGREEMENT; MODIFICATION:
This Agreement contains the entire understanding between the parties relating to the obligations
of the parties described in this Agreement. All prior or contemporaneous agreements,
understandings, representations and statements, oral or written, are merged into this
Agreement and shall be of no further force or effect. This Agreement may be amended only by
a written instrument signed by both the City and the IGS.
4
1155957v2
XV. GOVERNING LAW:
The interpretation and implementation of this Agreement shall be governed by the domestic law
of the State of California.
XVI. AUTHORITY TO EXECUTE AGREEMENT:
The person or persons executing this Agreement on behalf of IGS represent that he or she has
the authority to execute this Agreement on behalf of IGS and has the authority to bind IGS to
the performance of its obligations hereunder.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by and
through their authorized officers on the date, month and year first written above.
IGS: VERNON:
Interstate Gas Services, Inc. City of Vernon
Authorized
e
Signature:
Title: Mayor/Mayor Pro-Tem
Date: 6-e z/ `Z.00
- 1
ATTEST:
Manuela Giron, it Clerk
APPRQVED A TO FORM:
r nce S. Wiener, City Attorney
5
1155957v2
ATTACHMENT A
INSURANCE SCHEDULE (IGS)
The consultant shall provide proof of insurance, including a standard certificate of insurance, in
at least the following amounts and coverage (combined single limit permitted):
I. Coverage and Limits
Hn7nrric
Automobile Liabilitv
Owned Automobiles
Hired Automobiles
Non -Owned
Automobiles
Workers' Compensation
Employers' Liability
II. Liability
Premises Operations
Independent Contractors
Products — Completed
Operations
Contractual Liability
Professional Liability
Bodily Iniury Property Damage
Each Person Each Accident Each Accident
$500,000 $1,000,000 $500,000
$500,000 $1,000,000 $500,000
$500,000 $1,000,000
$ Statutory
$1,000,000 per employer
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$500,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
$1,000,000
a. The general liability policy shall contain the following special endorsements which shall
be noted on or attached to the standard certificate of insurance:
1. An endorsement naming the City of Vernon, its officers, officials, employees, agents,
and volunteers as insureds under the policy.
2. An endorsement providing the City of Vernon thirty (30) days notice of cancellation or
material reduction of coverage.
3. An endorsement providing coverage for all operations under this Agreement.
4. Such other endorsement as may be required by addendum hereto.
5. A copy of your general and professional insurance policy declarations page.
6. Copy of schedule of forms of endorsements.
6
1155957v2
11A�-
�a►J � 1 �009
CITY -CLERK'S OFFICE STAFF REPORT APPROVED AUG 17'09 CITY COUNCIL
.
LIGHT & POWER
DATE: August 11, 2009
TO: Honorable Mayor and City Council
FROM: tonal O'Callaghan, Director of Light & Power
RE: Interstate Gas Services, Inc.;Agreement for Professional and
Technical Services with the City of Vernon -
Dan Bergmann, principal consultant with Interstate Gas Services, Inc., began serving
the City of Vernon in March 2006. His initial role was to set up the natural gas
djstribution system to serve retail customers. That work included pressurizing the
system with natural gas, writing the business plan for retail gas service, developing a
rate structure, writing the City gas tariff, and implementing remote meter reading
equipment. On an ongoing basis, Mr. Bergmann has managed the City's natural gas
purchase and sale agreements with Citigroup, including the bond -financed prepay
agreement. He maintains various monthly reports to assure accurate tracking of gas
quantities and finances associated with the system. This is significant to the City
because of the large amount of money moving through the gas enterprise fund,
approximately $66 million, pursuant to the City's FY2010 budget. Mr. Bergmann also
provides key support in promoting the gas system to new customers within City of
Vernon. Service to new customers is financially beneficial to the customer and also to
the City.
Moving forward, staff proposes that the City continue to utlilize Mr. Bergmann's utility
expertise, including using his services to attract additional customers to the system.
(Tariff revisions supporting this effort are on the Council Agenda for August 24, 2009.)
He will also continue to provide consulting services relating to Natural Gas Operations
management on an as -needed basis.; The proposed full scope of his work maybe
found in the attached proposed agreement.
Mr. Bergmann has 24 years experience in the energy industry in California. He worked
seven years with Pacific Gas & Electric Company, three years for a small gas marketer,
J and then seven with Enron. He has been president and principal consultant for IGS for
the past seven years. The core competency of IGS is municipal gas facilities in
California, and IGS has served most of them. Mr. Bergmann has no current affiliation
with any natural gas marketers, enabling him to make unbiased decisions for his clients.
Mr. Bergmann has a BA in Physical Science from UC Berkeley and he is a Certified
Energy Manager.
Recommendation:
Staff recommends that City Council approve the attached, proposed agreement with
Interstate Gas Services, Inc. in the amount not -to -exceed $140,000.00.
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Attachments