R2006-180 AUTHORIZING CITY MANAGER TO CONDUCT ELECTRIC RATES PROCUREMENT

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r� � COUNCIL MEMORANDUM #2006-17 DATE: November 15, 2006 TO: Honorable Mayor Osborne and City Council FROM: Steve Garma , City Manager SUBJECT: Electric Rates Council members, On November 8, 2006 we sent the City Council a memorandum (2006-155) regarding electric rates. In that memorandum w� advised you that the City of Decatur would have to seek an alternative retail energy supplier for the south water plant and that we would have to advise Ameren of our decision by November 12, 2006. We have done that and now we must take the next step of sefecting an alternative supplier. A�ter rese�rching the matter and speaking with �iher affected parties we are enterir�g into ar� Agreement for Consultant Serviccs with CQI Associates of Cofumbia, Maryland tu help us develop and submit Request for Proposals �nd seek bids from all alternative retail energy suppliers (ARES) certified by the Illinois Commerce Commission to sell ower to 191inois consumers. The cost of p this service will be less than $5000 (in our earlier memo we pointed out that the urgency of this matter came to our attention on Tuesday morning, the 8th of November, the day after a city council meeting). Because the pricing will be done during a four hour period on December 6, 2006, it will not be possible to bring these proposals back to the City Council for approval. We are therefore recommending that the City Council approve the attached resolution, which authorizes the City Manager to act on behalf of the City of Deca�ur to conduct an electricity procurement in accordance with the City purchasing regulations and to execute a contract for electricity supply services. Before that decision is made, staff will be consulting uvith CQI. If you have any questions about this information, please contact the city manager at 424-2801, Ron Neufeld at 424-2702 or Jerry Bauer at 424-2802.