CITY OF POMONA
COUNCIL REPORT
October 20, 2025
To: Honorable Mayor and Members of the City Council
From: Anita D. Scott, City Manager
Submitted by: Chris Diggs, Water Resources Director
SUBJECT: APPROVAL OF AMENDMENT NO. 4 TO THE AGREEMENT FOR ADMINISTRATIVE SERVICES WITH THE CALIFORNIA CHOICE ENERGY AUTHORITY (CALCHOICE) RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve Amendment No. 4 to the Agreement for Administrative Services (Amendment) with CalChoice (Attachment No. 1); and Authorize the City Manager, or designee, to execute the Amendment and related documents with CalChoice, subject to approval by the City Attorney.
EXECUTIVE SUMMARY
The recommended actions will enable CalChoice to continue servicing Pomona Choice Energy with an updated fixed fee rate, formalized CPI adjustments, and clarifications of reimbursable expense, which now includes a new category for the CalChoice Board Secretary.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☒ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $500 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $500 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
The execution of Amendment No. 4 will result in changes to the fixed fee and reimbursable expenses outlined in the Agreement. The revised rates in Exhibit C of the Agreement includes the annual fixed fee costs of $412,415 and encompasses annual estimated reimbursable expenses for data management services ($768,000), professional services ($367,625), and legal services ($20,000).
FY 2024-25 Fixed Fees
FY 2025-26 Fixed Fees
$410,052/Annually or $34,171/Month
$412,415 Annually or $34,368/Month
The specific financial impacts are detailed in the new Exhibit C attached herewith in the Amendment and are available within the current fiscal year budget.
PREVIOUS RELATED ACTION:
The Agreement with the CalChoice has been amended on three previous occasions, most recently on August 16, 2023.
DISCUSSION:
The City’s Community Choice Aggregation Program, Pomona Choice Energy (PCE), was established by the City Council on March 4, 2019. PCE has been successfully serving customers since 2020. The City executed an administrative services agreement (Agreement) with CalChoice, a Joint Powers Authority, on October 21, 2019. This Agreement outlines the services to be provided by CalChoice that support the PCE’s operations.
Amendment No. 4 replaces Exhibit C to the Agreement. Key changes include an update to the fixed fee rate, formalizes 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.
Based on the foregoing, staff recommends that City Council approve Amendment No. 4 to the Agreement and authorize the City Manager, or her designees, to execute all contracts subject to the approval of the City Attorney.
Prepared by:
Julie Carver
Environmental Compliance Supervisor
ATTACHMENT:
Attachment No. 1 – Administrative Services Agreement Amendment No. 4 Approve Amendment No. 4 to the PCE ASA Agreement