STAFF REPORT
City of Lancaster
CC 9
10/14/2025
TN
Date:October 14, 2025
To: Mayor Parris and City Council Members
From: George Harris, Senior Director/Treasurer - Administrative Services Cindy Valdivia, Lancaster Energy and CDBG Analyst
Subject: Approval of Amendment No. 6 to the Agreement for Administrative Services with California Choice Energy Authority (CalChoice)
Recommendation:
Authorize the City Manager to execute Amendment No. 6 to the Agreement for Administrative Services with the California Choice Energy Authority (CalChoice).
G.C. Section 84308: No
Fiscal Impact:
The execution of Amendment No. 6 will result in changes to the fixed fee and reimbursable expenses outlined in the Administrative Services Agreement. The revised rates in Exhibit C include annual Fixed Fee costs of $584,911. Exhibit C also encompasses annual estimated reimbursable expenses for Data Management Services ($1,008,000), Professional Services ($367,625), and Legal Services ($20,000).
The specific financial impacts are detailed in the new Exhibit C attached to the amendment and are considered a budgeted item for the current fiscal year.
Background:
The City of Lancaster’s Community Choice Aggregation (CCA) Program, Lancaster Energy (LE), was established by the City Council through the adoption of Ordinance 997 on May 27, 2014. LE began serving customers in May 2015.
The City executed an Administrative Services Agreement (Agreement) with the California Choice Energy Authority (CalChoice), a Joint Powers Authority, dated May 10, 2017. The current Agreement outlines the terms for administrative services provided to the City. Amendment No. 6 is proposed to update and clarify the terms of this existing Agreement. 2 1
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Amendment No. 6 replaces Exhibit C to the Agreement. Key changes include an update to the fixed fee rate, formalizing CPI-related adjustments to professional services agreements and clarifies reimbursable expenses, inclusive of a new reimbursable expense category for the CalChoice Board Secretary position. Additionally, this amendment also incorporates CalCCA Membership Fees into the fixed fee costs, which were previously paid separately outside of the Agreement.
This amendment has been reviewed and approved by the City Attorney, appropriately funds LE’s proportional operational costs and ensures the Agreement's financial terms are current.
Attachment:
Administrative Services Agreement Amendment No. 6
Original Executed Agreement with Amendments