Coversheet

City of Bainbridge Island City Council Agenda Bill
PROCESS INFORMATION
Subject: 7:55 PM Electric Municipalization Feasibility Study Professional Services Agreement, AB 15-183 - Executive	Date: 7/12/2016
Agenda Item: UNFINISHED BUSINESS	Bill No.: 15-183
Proposed By: Doug Schulze, City Manager	Referrals(s):

BUDGET INFORMATION
Department: Executive	Fund: General Fund
Expenditure Req: Not to exceed $99,300	Budgeted? No	Budget Amend. Req? Yes

REFERRALS/REVIEW
Business Meeting: 4/26/2016	Recommendation: Authorization to interview consultants for Electric Utility Municipalization Feasibility Study.
City Manager: Yes	Legal: Yes	Finance: Yes

DESCRIPTION/BACKGROUND

Background:

The City Council authorized a Request for Proposals to conduct a feasibility study for a acquisition of PSE's assets and creation of a municipal electric utility. Five responses were received from qualified consultants and reviewed by the Electric Municipalization Task Force. The Task Force recommended interviews with two consulting firms, D. Hittle and Brown & Kysar. On April 24, 2016, the City Council concurred with the Task Force recommendation and authorized interviews.

Interviews were conducted on Monday, May 2, 2016, with representatives from D. Hittle and Brown & Kysar. Following the interviews, the Task Force members discussed the strengths and weaknesses of each team and reached consensus that the team from D. Hittle & Associates, Inc. was the best fit based on experience, timeline and projected cost to complete the study.

The City Council asked the Task Force to confirm its recommendation with the understanding that the timeframe for completion of the study and cost should not compromise the quality of the feasibility study. On May 27th, the Task Force met to review its previous recommendation and determined that its recommendation would not change. Task Force members emphasized that the recommendation was based on the expertise of D. Hittle team members and the firm's considerable experience with feasibility studies.

The City Council has also discussed interest in conducting site visits to municipalities currently providing electric services. Council direction regarding scheduling site visits is also requested.

Please visit the Electric Utility Municipalization Project page on the City's website to view public comments received (April-July 7, 2016).

RECOMMENDED ACTION/MOTION
I move that the City Council authorize the City Manager to enter into a contract with D. Hittle & Associates, Inc., for the purpose of conducting an electric utility feasibility study, in an amount not to exceed $99,300.

ATTACHMENTS:
	Description	Type
	DRAFT Ordinance Adopting Plan for Creation of Electric Utility	Backup Material
	Cost Comparison	Backup Material
	D. Hittle & Associates, Inc. Proposal	Backup Material