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HomeMy WebLinkAbout7.1 MuniElectricFeasStudyCITY CLERK FILE # 600-30 AGEN DA STATEMENT CITY COUNCIL MEETING DATE: February 5, 2002 SUBJECT: Consultant Services for Municipal Electric Utility Feasibility Study Report Prepared by: Christopher L. Foss, Economic Development Director ATTACHMENTS: RECOMMENDATION: 1. Resolution Approving Agreement with Consultant 2. Consultant Services Agreement 3. Budget Change Form 1. Adopt Resolution Approving Agreement with Environmental Services Associates for Energy Consulting Services 2. Authorize the City Manager to sign on behalf of the City 3. Approve Budget Change. FINANCIAL STATEMENT: The cost of the proposed study is $9,730. Funds were not appropriated in the FY 2001-2002 budget for this study; however, the City did allocate a reserve of $750,000 for energy projects. A budget change will be necessary. DESCRIPTION: At its meeting of August 21, 2001, the City Council discussed the possible role of the City of Dublin in meeting the present and future energy needs for the community. ' During the meeting, the City Council supported the goals of an energy policy that would: (1) Identify and meet the City's present and future energy needs; and (2) Secure a consistent and affordable source of power. With those goals in mind, Staff was directed to prepare a Request for Proposal (RFP) to secure the services of an independent energy consultant that would help the City identify issues involving electric production. The selected consultant will also assist Staff in the preparation of an RFP to be sent to independent power producers to determine the level of interest and the potential for such a venture. On October 2, 2001, the City Council approved the Request for Proposal (RFP) for a Municipal Electric Utility Feasibility Study and directed Staff to issue the RFP to qualified consultants. The RFP was mailed to thirty (30) consultants from throughout the United States. Following a review of the eight (8) RFP submittals, staff convened the City Cotmcil subcommittee (comprised of Mayor Lockhart and Council Member Oravetz) to review the proposals. As a result of that review, the subcommittee unanimously recommended that an amended report by Environmental Services Associates (ESA) be forwarded for ratification by the entire City Council. H/cc-forms/agdastmt.doc COPIES TO: ITEM NO. The proposal from ESA calls for the completion of a technical briefing paper addressing the current state . of electrical energy in California and providing strategic recommendations relevant to the City. The study will be completed in approximately three to four weeks at a cost not to exceed$ 9,730. As part of the FY 2001-2001 budget, the City Council allocated $750,000 to reserves for energy projects. The City Council will need to consider and approve a budget change in the amount of$ 9,730 transferring this amount from the reserve to the Economic Development budget to cover the costs of the study. RECOMMENDATION: • It is Staff's recommendation that the City Council adopt the Resolution approving the Consultant Services Agreement with Environmental Services Associates and authorize the City Manager to sign on the City's behalf. Staff would further recommend that the City Council approve the budget change in the amount of $ 9,730 to pay for the cost of the Study. • • / e/r • RESOLUTION NO. - 02 A RESOLUTION OF THE CITY COUNCIL - OF THE CITY OF DUBLIN * * * * * * * * * APPROVING AGREEMENT WITH ENVIRONMENTAL SERVICES ASSOCIATES TO CONDUCT MUNICIPAL ELECTRIC UTILITY FEASIBILITY STUDY WHEREAS, the City issued a Request for Proposals to qualified energy consulting firms to prepare a municipal electric utility feasibility study, and WHEREAS, Environmental Services Associates was determined to be the most qualified consultant; NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does approve the agreement with Environmental Services Associates. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the agreement. PASSED, APPROVED AND ADOPTED this 5th day of February, 2002. AYES: NOES: ABSENT: ABSTAIN: Mayor- ATTEST: City Clerk . __ G:IChrislEnergylresolutionenergryconsultant12182001.doc m f — 1451/61 0 Attachment 1 STANDARD CONTRACTUAL SERVICES AGREEMENT THIS AGREEMENT is made at Dublin, California, as of February 5, 2002, by and between the CITY OF DUBLIN, a municipal Corporation ("CITY"), and Environmental Services Associates ("CONTRACTOR"), who agree as follows: 1. SERVICES. Subject to the terms and conditions set forth in this Agreement, CONTRACTOR shall provide to CITY the services described in Exhibit A. CONTRACTOR shall provide said services at the time, place and in the manner specified in Exhibit A. 2. PAYMENT. CITY shall pay CONTRACTOR for services rendered pursuant to this Agreement at the time and in the manner set forth in Exhibit B. The payments specified in Exhibit B shall be the only payments to be made to CONTRACTOR for services rendered pursuant to this Agreement. CONTRACTOR shall submit all billings for said services to CITY in the manner specified in Exhibit B; or, if no manner be specified in Exhibit B, then according to the usual and customary procedures and practices which CONTRACTOR uses for billing clients similar to CITY. 3. FACILITIES AND EQUIPMENT. Except as set forth in Exhibit. C, CONTRACTOR shall, at its sole cost and expense, furnish all facilities and equipment, which may be required for furnishing services pursuant to this Agreement. CITY shall furnish to CONTRACTOR only the facilities and equipment listed in Exhibit C according to the terms and conditions set forth in Exhibit C. 4. GENERAL PROVISIONS. The general provisions set forth in Exhibit D are part of this Agreement. In the event of any inconsistency between said general provisions and anyother terms or conditions of this Agreement, the other term or condition shall control insofar as it is inconsistent with the general provisions. 5. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein. 6. CONTRACT ADMINISTRATION. This Agreement shall be administered by Richard C. Ambrose ("ADMINISTRATOR"). All correspondence shall be directed to or through the ADMINISTRATOR or his or her designee. 7. NOTICES. Any written notice to CONTRACTOR shall be sent to: John E. Forsythe, AICP Senior Project Manager Environmental Science Associates 8950 Cai Center Drive, Suite 300 Sacramento, CA 95826 Any written notice to CITY shall be sent to: City of Dublin Attn: Richard Ambrose P. O. Box 2340 Dublin, CA 94568 Executed as of the day first above stated: Attest: City Clerk CITY OF DUBLIN a municipal corporation By "CITY" Attachment 2 Approved as to form: City Attorney "CONTRACTOR" EXHIBIT A SCOPE OF SERVICES The scope of services for this contract is included as EXHIBIT A-1. Exhibit A Page 1 of 1 - -- 4/1/90 e /v • • Environmental - • ,�•��, .' 4•; rJClenCe RECEIVED l CEI i7 CpppgKq E Associates JAN 1 7 2002 CITY OF DUBLIN January 16,2002 • • Mr. Chris Foss Economic Development Director City of Dublin • 100 Civic Center Plaza Drive Dublin, California 94568 SUBJECT: ' • Proposal for•a'Technical Briefing Paper on the State of Energy in California Dear Mr.Foss: Thank you for your continued interest in the services of Environmental Science Associates' (ESA's)Energy and Information Utilities group. Pursuant to your request,we have prepared a revised proposal to the City of Dublin(City) for a technical briefing paper addressing the current state of electrical energy in California and providing strategic recommendations relevant to the City. The paper is intended to provide the City with information on the condition of electric utility services in the state to allow the City to make informed decisions regarding its own energy policy destiny. SCOPE OF SERVICES The following task list provides our understanding of the requirements of this project, as well as our proposed approach to element. Task Provide Information on Current State of Electric Utility Industry, Current Trends, Legislation, Ongoing Activities, Responses by Municipalities, and Related Information • We will prepare a technical memorandum, and/or participate in'a technical workshop or roundtable discussion,providing information to City staff and decision-makers regarding the following items and how these topics relate to the City: — We will provide an overview of AB 1890,passed in 1996, and the Restructuring of the Electric Industry in California. — We will summarize the energy crisis of 2000-2001 and Pacific Gas and Electric Company's bankruptcy proceedings and potential impacts to the City's rate base. — We will provide an overview of California's electric utility industry restructuring, merchant power plants, and other recent developments in the utility industry potentially affecting the.City. _ — Given existing regulatory and legislative constraints, we will evaluate potential ways which the City can improve its existing electricity situation. 8950 Cal Center Drive,Suite 300 Sacramento,Califox EXHIBIT A-1 500 fax 564-4501 www.esassoc.com Mr. Chris Foss Economic Development Director January 16, 2002 Page 2 - We will examine ongoing efforts by other communities and how these actions potentially could be implemented in the City. We will discuss the Possibility of purchasing bulk power from other wholesalers, including the required elements necessary to allow the City to engage in such actions and potential contracting options. - We will describe in the technical memorandum a Variety of power buying options that, although currently prohibited by state legislation, are potentially provided by local aggregation. We will provide a technical memorandum describing the requirements of the formation of a municipal utility in the City. While we do not propose to conduct a formal feasibility study under this contract, the details and requirements of such a study will be delineated under this task, and the relative pros and cons of forming a municipal utility will be established. All legal, political, financial, and engineering requirements will be detailed. We will identify policy-level options, Such as a General Plan energy element, which can be prepared and adopted by the City to assist in controlling its own energy destiny while maximizing its resources and encouraging conservation. COST AND SCHEDULE Table 1 reflects our cost estimate to prepare the briefing paper as described above. We will apply applicable rates based on our standard rate schedule for 2001 (Table 2). Our proposed cost reflects a level of effort we believe to be commensurate with the task and adequate for the City' s purposes. However, if the City prefers -an analysis with more or less detail than we have proposed, we will be happy to re-examine this scope. We.estimate that we can complete the report within a period of 3 to 4 weeks. If the City prefers to conduct a workshop or meeting to discuss the report and its conclusions, this can be done either during the preparation process or after the report is complete. We also should note that some information from and involvement of City staff may be necessary, but we will clearly identify any informational or staff assistance needs on contract authorization. We look forWard to the opportunity to work with the City on this important project. If you have any questions about our proposal or require additional information, please do not hesitate to call me at 916/564- 4500, or Dail Miller at 510/839-5066. Sincerely, Senior Project Manager JEF/jet P202039 Enclosures Table 1. ESA's Cost Estimate for a Technical Briefing Paper on the State of Energy in California Personnel Rate Hours Total Project Director $140 10 $1,400 Project Manager $115 30 $3,450 Associate II $70 48 $3,360 Administrative Costs (copies, correspondence, documents) $300 Briefing Session (1) $1,220 TOTAL $9,730 ESA Envlronmenta~ Science Associates Table 2. ESA's Fully Burdened Labor Billing Rates Employee Category Director / Principal III Director / Principal II Director / Principal I Senior Project Manager / Technical Associate II Project Manager / Technical Associate I Senior Associate II Senior Associate I Associate III Associate II Associate I Senior Administrative Sr. Graphics I Graphics Admin II ! Admin III ! Production Admin I / Clerical Hourly Billing Rate $150.00 $140.00 $125.00 $115.00 $100.00 $95.OO $85.00 $70.00 $60.00 $50.00 $75.00 $65.00 $60.00 $60.00 $45.00 Postage / Overnight Mail Courier Charges Fax Charges Phone Charges Mileage Other Direct Costs Copying Charges Actual cost + 15% Actual cost + 15% $2.00 per page plus actual phone costs Actual cost + 15% Standard mileage set by Federal regulations At actual cost + 15% $0.05 each EXHIBIT B (page 1 of 1) PAYMENT SCHEDULE CITY shall pay CONTRACTOR an amount not to exceed the total sum of Nine Thousand Seven Hundred Fifty Dollars ($ 9,750) for services to be performed pursuant to this'Agreement. CONTRACTOR shall submit invoices during the term of this Agreement based on the cost for services performed in accordance with the folloWing schedule: Monthly but not more often than once a month; and provided further, in no event shall CITY pay CONTRACTOR a sum exceeding 20% of the total sum due for services pursuant to this Agreement in any one month; and provided further, CITY shall pay the last 20% of the total sum due pursuant to this Agreement within forty-five (45) days after completion of the services and submittal to CITY, if all services due pursuant to this Agreement have been satisfactorily performed. The total sum stated above shall be the total, which CITY shall pay for the services to be rendered by CONTRACTOR pursuant to this Agreement. CITY shall not pay any additional sum for any expense or cost whatsoever incurred by CONTRACTOR in rendering services pursuant to this Agreement. CITY shall make no payment for any extra, further or additional service pursuant to this Agreement unless such extra service and the price therefor is agreed to in writing executed by the City Manager or other designated official of CITY authorized to obligate CITY thereto prior to the time such extra service is rendered and in no event shall such change order exceed twenty-five (25%) of the initial contract price. The services to be provided under this Agreement may be terminated without cause at any point in time in the sole and exclusive discretion of CITY. In this event, CITY shall compensate the CONTRACTOR for all outstanding costs incurred as of the date of written notice thereof and shall terminate this Agreement. CONTRACTOR shall maintain adequate logs and timesheets in order to verify costs incurred to date. The CONTRACTOR is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of a fully executed Purchase Order from the Finance Department of the City of Dublin. EXHIBIT C - City Facilities CITY shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for CONTRACTOR'S use while consulting with CITY employees and reviewing records and the information in possession of CITY. The location, quantity, and time of furnishing said physical facilities shall be in the sole discretion of CITY. In no event shall CITY be obligated to furnish any facility, which may involve incumng any direct expense, including, but not limiting the generality of this exclusion, long-distance telephone or other communication charges, vehicles, and reproduction facilities. Exhibit C Page 1 of 1 4/1/90 EXHIBIT D GENERAL PROVISIONS 1. INDEPENDENT CONTRACTOR. At all times during the term of this Agreement, CONTRACTOR shall be an independent contractor and shall not be an employee of CITY. CITY shall have the fight to control CONTRACTOR only insofar as the results of CONTRACTOR'S services rendered pursuant to this Agreement;'however, CITY shall not have the fight to control the means by which CONTRACTOR accomplishes services rendered pursuant to this Agreement. 2. LICENSES: PERMITS: ETC. CONTRACTOR represents and warrants to CITY that he has all licenses, permits, qualifications and approvals of whatsoever nature, which are legally required for CONTRACTOR t.o practice his profession. CONTRACTOR represents and warrants to CITY that CONTRACTOR shall, at his sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for CONTRACTOR to practice his profession. 3. TIME. CONTRACTOR shall devote such time to the performance of services pursuant to this Agreement as may be reasOnably necessary for satisfactory performance of CONTRACTOR'S obligations pursuant to this Agreement. 4. INSURANCE REQUIREMENTS. CONTRACTOR shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the work hereunder by the CONTRACTOR, his agents, representatives, employees or subcontractors~ The cost of such insurance shall be included in the CONTRACTOR'S bid. (a) Minimum Scope of Insurance. Coverage shall be at least as broad as: 1. Insurance Services Office form number GL 0002 (Ed. 1/73) covering comprehensive General Liability and Insurance Services Office form number GL 0404 covering Broad Form Comprehensive General Liability; or Insurance Services Office Commercial General Liability coverage ("occurrence" form CG 0001.) 2. Insurance Services Office form number CA 0001 (Ed. 1/78) covering Automobile Liability, code 1 "any auto" and endorsement CA .0025. 3. Workers' Compensation Insurance as required by the Labor Code of the State of California and Employers Liability Insurance. (b) Minimum Limits of Insurance. CONTRACTOR shall maintain limits no less than: 1. General Liability: $1,000,000 combined single limit per occurrence for bodily injury, personal injury and property damage. If commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: $1,000,000 combined single limit per accident for bodily injury and property damage. 3. Workers' Compensation and Employers Liability: Workers' Compensation limits as required by the Labor Code of the State of California and Employers Liability limits of $1,000,000 per accident. Exhibit D (Page 1 of ) 4/1/90 (c) Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the CITY, its officers, officials and employees; or the CONTRACTOR shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses. (d) Other Insurance Provisions. The policies are to contain, or be endorsed to contain, the following provisions: 1. General Liability and Automobile Liability Coverages. a. The CITY, its officers, officials, employees and volunteers are to be covered as insureds as respects: liability arising out of activities performed by or on behalf of the CONTRACTOR; products and completed operations of the CONTRACTOR, premises owned, occupied or used by the CONTRACTOR, or automobiles owned, leased, hired or borrowed by the CONTRACTOR. The coverage shall contain no special limitations on the scope of the protection afforded to the CITY, its officers, officials, employees or volunteers. b. The CONTRACTOR'S insurance coverage shall be primary insurance as respects the CITY, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the CITY, its officers, officials, employees or volunteers shall be excess of the CONTRACTOR'S insurance and shall not contribute with it. c. Any failure to comply with reporting provisions of the policies shall not affect. coverage provided to the CITY, its officers, officials, employees or volunteers. d. The CONTRACTOR'S insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 2. Workers' Compensation and Employers Liability Coyerage. The insurer .shall agree to waive all rights of subrogation against the CITY, its officers, officials, employees and volunteers for losses arising from work performed by the CONTRACTOR for the CITY. 3. Professional Liability. CONTRACTOR shall carry professional liability insurance in an amount deemed by the CITY to adequately protect the CONTRACTOR against liability caused by negligent acts, errors or omissions on the part of the CONTRACTOR in the course of performance of the services specified in this Agreement. 4. All Coverages. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30) days' prior written notice has been given to the CITY. (Note: Insurance companies will not do this) (e) Acceptability of Insurers. Insurance is to be placed with insurers with a Bests' rating of no less than A: VII. (f) Verification of Coverage. CONTRACTOR shall furnish CITY with certificates of insurance and with original endorsements effecting coverage required by this clause. The-certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. The certificates and endorsements are to be received and approved by the CITY before work commences. The CITY reserves the right to require complete, certified copies of all required insurance policies, at any time. (g) Subcontractors. CONTRACTOR shall include all subcontractors as insureds under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated herein. Exhibit D (Page 2 of 3) 4/1/90 /9 (h) The Risk Manager of CITY may approve a variation in those insurance requirements upon a determination that the coverages, scope, limits and forms of such insurance are either not commercially available or that the CITY's interests are otherwise fully protected. 5. CONTRACTOR NO AGENT. Except as CITY may specify in writing, CONTRACTOR shall' have no authority, express or implied, to act on behalf of CITY in any capacity whatsoever as an agent. CONTRACTOR shall have no authority, express or implied, pursuant to this Agreement to bind CITY to any - obhgation whatsoever. 6. ASSIGNMENT PROI-I]~ITED. No party to this Agreement may assign any right or obligation pursuant to this Agreement. Any attempted or purported assignment of any right or obligation pursuant to this Agreement shall be void and of no effect. 7. PERSONNEL. CONTRACTOR shall assign only competent personnel to perform services pursuant to this Agreement. In the event that CITY, in its sole discretion, at any time during the term of this Agreement, desires the removal of any such persons, CONTRACTOR shall, immediately upon receiving notice from CITY of such desire of CITY, cause the removal of such person or persons. 8. STANDARD OF PERFORMANCE. CONTRACTOR shall perform all services required pursuant to this Agreement in the manner and according to the standards observed by a competent practitioner of the profession in which CONTRACTOR is engaged in the geographical area in which CONTRACTOR practices his profession. All instruments of Service of whatsoever nature which CONTRACTOR delivers to CITY pursuant to this Agreement shall be prepared in a substantial, first class and workmanlike manner and conform to the standards of quality normally observed by a person practicing in CONTRACTOR's profession. 9. HOLD HARMLESS AND RESPONSIBII,ITY OF CONTRACTORS. CONTRACTOR shall take all responsibility for the work, shall bear all losses and damages directly or indirectly resulting to him, to any subcontractor, to the CITY, to CITY officers and employees, or to parties designated by the CITY, on account of the performance or character of the work, unforeseen difficulties, accidents, occurrences or other causes predicated on active or passive negligence of the CONTRACTOR or any subcontractor. CONTRACTOR shall indemnify, defend and hold harmless the CITY, its officers, officials, directors, employees and agents from and against any or all loss, liability, expense, claim, costs (including costs of defense), suits, and damages of every kind, nature and description directly or indirectly arising from the negligent performance of the work. This paragraph shall not be construed to exempt the CITY, its employees and officers from its own fraud, willful injury or violation of law whether willful or negligent. For purposes of Section 2782 of the Civil Code the parties hereto recognize and agree that this agreement is not a construction contract. By execution of this agreement CONTRACTOR acknowledges and agrees that he has read and understands the provisions hereof and that this paragraph is a material element of consideration. Approval of the insurance contracts does not relieve the CONTRACTOR or subcontractors from liability under this paragraph. 10. GOVERNMENTAL REGULATIONS. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, CONTRACTOR shall comply with all applicable rules and regulations to which CITY is bound by the terms of such fiscal assistance program. 11. DOCUMENTS. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda or other written documents or materials prepared by CONTRACTOR pursuant to this Agreement shall become the property of CITY upon completion of the work to be performed hereunder or upon termination of the Agreement. Exhibit D (Page 3 of 3) CITY OF DUBLIN BUDGET CHANGE FORM CHANGE FORM # New Appropriations (City Council Approval Required): Budget Transfers: _xxxx_ From Energy Project Reserve From Budgeted Contingent Reserve (1080-799.000) Within Same Department Activity From New Revenues Between Departments (City Council Approval Required) Other Name: Name: Contract Services - General $ 9,730.00 Account #: Account #: 001.90400.740.000 Name: Name: Account #: Account #: Name: Name: . Account #: Account #: Name: Name: Account #: Account #: Name: Name: Account #:' Account #: Fin Mgr/ASD: Y~".~ ~ ~, ~ Date: Signature REASON FOR BUDGET CHANGE ENTRY: The costs associated with the preparation of the Municipal Electric Utility Feasibility Study were not budgeted for FY 2001-2002. City Manager: Date: Signature Mayor: Date: Signature Posted By: Signature form~budgchng Attachment 3 Date: