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HomeMy WebLinkAbout1997-07-07 City Council (28)8City of Palo Alto City Manager’s Report TO: FROM: AGENDA DATE: SUBJECT: HONORABLE CITY COUNCIL CITY MANAGER DEPARTMENT: UTILITIES JULY 7, 1997 CMR:316:97 REQUEST FOR APPROVAL OF AMENDMENTS NO. 1 TO CONSULTANT CONTRACTS WITH PACIFIC CONSULTING SERVICE, RESOURCE MANAGEMENT INTERNATIONAL INC., AND EES CONSULTING, INC. REOUEST This is a request for the approval of Amendments No. 1 to contracts with Pacific Consulting Service, Resource Management International Inc., and EES Consulting, Inc.for a combined maximum FY 97-98 total of $300,000. These consultants provide specialized consulting services with a major focug on preparing for electric industry restructuring. RECOMMENDATIONS Staff recommends that Council: 1)Approve and authorize the Mayor to execute the attached amendments to contracts with Pacific Consulting Service (C7094781), Resource Management International (C7094779), and EES (C7094780), extending the contracts’ terms to June 30, 1998, and, 2.Approve an additional $300,000 for the combined budget of the above contracts CMR:316:97 Page 1 of 3 ,during FY 97-98. POLICY IMPLICATIONS The amendments are consistent with existing policies. EXECUTIVE SUMMARY On January 21, 1997, following an extensive proposal review process, Council approved contracts with Pacific Consulting Service (C7094781), Resource Management International (C7094779), and EES (C7094780) with a combined FY 96-97 budget of $300,000. These contracts have a term of one year from the date of signature: Council authorized the City Manager to execute renewed contracts with these consultants for two additional one-year terms. Staff would like to have the contract terms coincide with the fiscal year budget process, and therefore make the request for the six-month extension to the terms. Sufficient consultant budget dollars were approved for F¥ 97-98 to cover the proposed $300,000 for that year. These consultants are providing essential assistance in preparing the utility for electric restructuring, including preparation of business plans, customer product development, and assistance in the implementation of Phase I of direct access. Council approved the selection of these consultants to assist the utility in preparing for the January 1, 1998 implementation date for electric restructuring, and to see the utility through the first two years of a restructured environment. The full $300,000 wiil be required for FY 1997-98. FISCAL IMPACT Funds for these contracts have been included in the proposed FY 1997-98 budget. CMR:316:97 Page 2 of 3 ENVIRONMENTAL ASSESSMENT The approval of these three agreements does not constitute a project for purposes of CEQA; therefore, no environmental analysis is needed. ATTACHMENTS Amendments to these contracts: Pacific Consulting Service (C7094781) Resource Management International (C7094779) EES (C7094780) PREPARED BY:W. Blake Heitzman, Manager, Competitive Assessments Resource Management Division DEPARTMENT HEAD REVIEW: Director of Utilities CITY MANAGER APPROVAL :~, ~ A...a..a ~) EMILY ~SON- Assistant City Manager CMR:316:97 Page 3 of 3 AMENDMENT NO. 1 ONE TO CONTRACT NO. BETWEEN THE CITY OF PALO ALTO AND RESOURCE MANAGEMENT " INTERNATIONAL, INC. This Amendment No.1 to Contract No. ("Contract") is entered into _, by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and RESOURCE MANAGEMENT INTERNATIONAL, INC., a California corporation located at 3100 Zinfandel Drive, Suite 600, Sacramento, CA 94570 ("CONTRACTOR"). RE C I TAL S: WHEREAS, the Contract was entered into .between the parties for the provision of consulting services; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION I. The following exhibit to the Contract is hereby’~amended to read as set forth in the attachment to this Amendment, which is incorporated in full by this reference: Exhibit "A" entitled "SCOPE OF SERVICES AND TIME SCHEDULE". SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect.’ // // // 97051~ syn 0071202 IN WITNESS WHEREOF~ the parties have by their duly authorized representati-ves executed this Amendment on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk Mayor By: Its: APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED:Taxpayer I.D. No. City Manager Director of Utilities RESOURCE MANAGEMENT INTERNATIONAL, INC. Acting Director of Administrative Services Risk Manager By: Its: Senior Vice President Taxpayer’s I.D. No. 94-2611224 Attachment: EXHIBIT "A":SCOPE OF SERVICES AND TIME SCHEDULE 970512 ~ 0071202 2 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF COUNTY OF ))) On /~.~_~ 30, /ee7 , before me, the undersigned, anotary public ~n and for said County, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that. by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, execuhed the instrument. WITNESS my hand and official seal. ~ Notary Publlo-O~llfornia z. 970512 syn 0071202 Exhibit ~’A":Scope of Servides nnd Time Schedule The Scope o~Sc~’ices ~or this contrac~ is provided below. The consukant will be asked ~o perform se~’ices in one o~ more of the followin~ areas, A. ElectricUtility - Technical Consulting, Legislative and Regulatory Servic@~; Within the Electric Utility, there are three main focus areas: -Western Area Power Administration (WAPA) Electric industry restructuring .and related issues -Miscellaneous consulting services.- A1.~- Monitoring, analyzing, and reporiing on key Western Area Power Administration (WAPA} activities that may affect the CITY’S electric utility. These services include butare not limited to: Identify and analyze WAPA issues and activities that may impact the rates that the CITY pays for power or impact, the amount, of power the ~ITY receives from WAPA. Analyze Federal and State legislative activities that mayimpact CITY o! PALe ALTO: tlFP 12196)SECTION 00001o7 PART II - SCOPE of WORK or SERVICES City ot Palo Alto availability or cost of the WAPA resource. Provide assistance in developing appropriate response strategies to relevant WAPA issues. Monitor key environmental proceedings such as the Bay/Delta proceedings, State Water Resource Control Board, water quality proceedings and others. A2.JSlectri¢ Industry Restructurinc~ and Related Iss.~ Assist the CITY to respond to the challenges rel.ated to electric industry restructuring, including, but not limited to: Identification of possible market opportunities and threats; Response to the challenges that the CITY may face from increased competition; Analysis relatin.g to stranded costs and customer contracts Assistance with monitoring and/or’ influencing any of theWestern Power Exchange (WEPEX) activities; Financial and technical analysis related to the Independent System Operator (ISO) and Power Exchange (PX); Assistance with transmission and" Other FERC related issues. Assistance with State.Legislative monitoring and intervention. A3. Assistance with. interventions at selected proceedings, including technical" assistance, draft tes’timony, and/or analysis of related litigation, 11 n l in rv" Assistance in Planning and E~onomic Analysis of transmission services and supply resources CITY o! PALO ALTO; RFP 12196)SECTION 00001 PART II - SCOPE of WORK or SERVICES City of Palo Alto Assistance in analyzing and developing energy price risk management tools, products and services and in developing new energy, pricing strategies. Monitor, analyze, and report on key USBR, State of California, CALFED, and San Francisco Bay, Sacramento and San Joaquin Delta Oversight Committee Activities that may affect the CITY’S electric utility. Management Consulting Contract Negotiations Interconnection Agreement evaluation and negotiation Identification and analysis of partnering opportunities B. Natural Gas Indus_t_Lv- Tech’nical n d in i la iv ~v" Consultant shall provide natural gas consulting services a.n~l legislative and reguiatory support to the City. The services and support are’in the following task categories: " B1. B2. Work with the City to establish regulatory goals, objectives, and priorities. Monitor, analyze and testify in CPUC and FERC proceedings to represent the City’s interests. B3. B4. B5. B6. Maintain routine and sufficient access to key policy makers and staff at .the CPUC to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on gas regulatory issues. Assist the city in attaining its gas acquisition and transportation objectives. Monitor and intervene in the .legislative process as require’d. Provide the City with miscellaneous natural gas consulting services including development and use of optimization models, financial analysis and cent.tact negotiations. CITY of PALO ALTO: RFP (2/96)’ SECTIO~I 00001-9 PART II- SCOPE of WORK or SERVICES City ol~ Palo Alto C. _Ul:ilitv Market Assessment Services_ Consultant shall provide "~he following market assessment services as desired. C 1. ~_o.z_e~sting Services The Consultant may be requested to assist with forecasting annual usage for electricity, natural gas, and water. Advanced probabilistic and stochastic models may be required. Sh6ri. termelectricity forecasts for dispatching and forecasting for specific customer classes may be required. Forecasting skills may include but are not limited Development of dynamic regression models using Forecasi Pro. Development of probabalistic forecasts using EXCEL add-ins. Development ofstochastic forecasting models using a Monte Carlo model. Development of appropriate and defensible methods and data sets. Development of analysis of sensitive variables and correlations. ¯ Statistical analysis of results, written and oral reporting of results with conclusions and appropriate recommendations in a concise, understandable, and on.vincing manner C2. ~mer Surveying Services Resource Management is responsible for investigating, analyzing and reporting to upper management important market information about Utilities customers, individually, by segmentation, or in aggregate. Possible Consultant services in this area would include: Development of scientifically useful and appropriate survey instruments Scientific and appropriate selection of customers for surveying CITY of PALO ALTO: RFP 12/96)SECTION 00001-10 PART II - SCOPE ol’ WORK or SERVICES City ol~ P’alo Alto Appropriate professid’nal and defensible polling of customers through: fOCLiS groups, phone survey, written instrument surveys, etc. Analysis of survey results, written and oral reporting of results with conclusions and recommendatior~s in a concise, understandable, and convincing manner. Providers who offer services in customer surveying should demonstrate a breadth of experience and expertise in all aspects of those services listed here, as well as other relevant expertise and experience, as the proposer deems appropriate. C3. Market Analvsi_s Resource Management is responsible for and may request consultant assistance in: investigati.ng, analyzing and reporting information about the market environment, including market forces, legislative issues an~J resuiting laws, regulatory issues and resulting regulation, competitor behavior, etc. Also, Resource Management is responsible for assimilating, reporting and .recommending related actions to upper .management in a timely and effective manner. Services in this area include: Investigation and evaluation of competitor activities Regulatory and legislative monitoring, analysis, and intervention. Benci~markiag of gas, water, v~ste-water, or electric utility activities ¯ and services in terms of economics, availability, quality,-etc. ’ " Customer risk analysis including scenario, simulation, decision analysis, etc., addressing the economic impact of customer Iosses~ individually or in aggregate; under various potential market situations. C~. JDSM Program Activ_itie~ Resource Management is responsible for and may request customer assistance in: investigating new DSM technologies,’ setting DSM program goals and guidelines, developing and maintaining customer participation data, and. evaluating programs. Services in this area include: Investigation of DSM and other Customer end-use.technologies and CITY of PALO ALTO: RFP |2/961 SECTION 00001-11 PART II - SCOPE of WORK or SERVICES Cib/of Palo Alto meth’ods, estimating technical and market potential of these technologies, and recommending realistic goals for customer programs Develop DSM program goals and guidelines using: 1) City DSMgoals related to specific technologies, customer segments, and end-use loads; 2) knowledge of DSMand other customer program methods and technologies; 3) and customer information (from formal and informal surveys) Develop DSM and other customer programs to satisfy Utilities goals for specific technologies, customer segments, or end-use loads Evaluate and report DSM and other customer programs’ success related .to goals and guidelines C5. ~)ata Managet:nent Activities Resource Management is responsible for and may request consultant assistance in developing, managing, analyzing, routing, maintaining confidentiality and providing other services related to sensitive ~lata. Specifically these services may include : Development, maintenance, accessing and progran3ing crf the Marketing Information System Development, maintenance, tele~netry and programing of customer and city load data system Development; maint.enance, programmihg of an intranet information network Developm.ent, operation, and mainte’nance of a~ information clearinghouse for utility related data Development and dissemination of confidentiality policies and procedures TASK ASSIGNMENT PROCEDURE Selection of Consultant does not insure that tl~e Consultant will be assigned work, but. only makes the Consultant available’to provide .services to the CITY. At tim’es, CITY of PALO ALTO: RFP |2196}SECTION 00001-12 PART II- SCOPE ~f WORK or SERVICES Ci~/of Palo ARo howeve.r, one or more Consultants may be assigned work by the C1TY’s Project Manager. All work assignments will be made at the discretion of theCITY’s Project Manager based on the Project Manager’s opinion of Consultant’s qualifications, availability, and past performance. An activity work plan shall be developed for each assignment requested by the Project Manager that includes scope, schedule, delivera~les, budget and other information. Said work plan must be approved by the City’s Project Manager prior to its implementation. The Project Manager may give .telephone authorization to Consultant to perform certain tasks at .his/her sole discretion. Th±s con~:racl: shall terminate on June 30, 1998. However, this contract: may be renewed, upon mu~ual agreement for "two additional oneTYear periods. AMENDMENT NO.1 ONE TO CONTRACT NO. BETWEEN THeE CITY OF PALO ALTO AND PACIFIC CONSULTING SERVICES, INC. This Amendment No.1 to Contract No. ("Contract") is entered into , by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and PACIFIC CONSULTING SERVICES, INC., a California corporation located at 1320 Solano Avenue, Suite 203, Albany, CA 94706 ("CONTRACTOR"). RECITALS: WHEREAS, the Contract was entered into between parties for the provision of consulting services; and WHEREAS, the parties wish to amend the Contract; the NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION I. The following exhibit to the Contract is hereby amended to read as set forth in the attachment to this Amendment, which is incorporated in full by this reference: Exhibit "A" entitled "SCOPE OF SERVICES AND TIME SCHEDULE". SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. // // // // // 970512 syn 0071203 1 IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor PACIFIC CONSULTING SERVICES, INC. Its: Taxpayer I.D. No. City Manager Director of Utilities Acting Director of Administrative Services Risk Manager Attachment: EXHIBIT "A" :SCOPE OF SERVICES AND TIME SCHEDULE 970512 syn 0071203 2 CERTIFICATE OF ACKNOWLEDGMENT (CiVil Code § 1189) STATE OF California COUNTY OF Alameda ) )) On May 23, 1997 , before me, the undersigned, a notary public in and for said County, personally appeared *P.C. Ignelzi* , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. ~ .B~_~ Commission # 1131436 970512 syn 0071203 3 Exhibit "A":Scope of Sc~!ces ,and Time Schedule The Scope of’Services for this contract is provided below. The consultant ,.,,’ill be asked to ’perform services in one or more of’the following areas. C, .~,JJJ3;Y [Vl~rket Assessment Servic..~ Consultant shall provide the following market assessment services as desired. C1. Forecasting Services The Consultant may be requested toassist with forecasting annual usage for electricity, natural gas, and water. Advanced probabilistic and stochastic models may be required. Shor~ term electricity forecasts for dispatching and forecasting for specific customer classes may be required. Forecasting skills may include but are not limited to: Development of dynamic regression models using Forecast Pro. Development of probabalistic forecasts using EXCEL add-ins. Development of stochastic forecasting models using a Monte Carlo model. Developmentof appropriate ~nd defensible methods and data sets. Development of analysis of sensitive variables and correlations, Statistical analysis of results, written and oral reporting of results, with conclusions and appropriate recommendations in a concise, understandable, and .convincing manner. CITY of PALO ALTO: RFP |2/96)SECTION 00001 PART II - SCOPE of WORK or SERVICES City of Palo Alto C2."v’ Resource" Management is responsible for investigating, analyzing and reporting to upper management important market information about Utilities customers, individually, by segmentation, or in aggregate. Possible Consul~.ant services in this area would include: Devetopment of scientifically useful and appropriate survey instruments Scientific and appropriate selection of customers for surveying Appropriate professional and defensible polling of customers through: focus groups, phone survey, written instrument surveys, etc. Analysis of survey results, written and oral reporting of results with conclusions and recommendatior~s in a concise, understandable, and convincing manner. Providers who offer services in customer surveying should demonstrate a breadth of experience and expertise in all aspects of those services listed here, as well as other relevant expertise and experience, as the proposer deems appropriate. C3. Market Analysis ". Resource Management is responsible for and may request consultant assistance in: investigating, a.nalyzing and reporting information about the market environment, including market forces, legislative issues and resulting laws, regulatory issues and resulting regulation, competitor 15ehavior, etc. Also, Resource Management is ¯ responsible for assimilating, reporting and recommending related actions to upper management ida timely and effective manner. Services in this area include: Investigation and evaluation of competitor activities Regulatory and legislative monitoring, analysis, and intervention. Benchmarking of 9as, water, waste-water, or electric utility activities and services in terms of economics, availability, quality, etc. CITY of PALO ALTO: RFP (2/96)SECTION 00001. PART il - SCOPE of WORK or ,SERVICES City of Palo Alto Customer risk analysis including scenario, simulation, decision analysis, etc., addressing the economic impact of customer losses, individually or in aggregate, under various potential market situations. C~. D_SM Pro_~am Activities Resource Management is responsible for and may request customer assistance in: investigating new DSM technologies, setting DSM program goals and guidelines, developing and maintaining customer participation data, and evaluating programs. Services in this area include: Investigation of DSM and other customer end-use.technologies and methods, estimating technical and market potential of these technologies, and recommending realistic goals for customer programs DevelopDSM program goals and guidelines using: 1) City DSM goals related to specific technologies, customer segments, and end-use loads; 2) knowledge of DSM and other customer program methods and technologies; 3) and customer information (from formal and informal surveys) Develop DSM and other customer programs to satisfy Utilities goals for specific technologies, customer, segments, or end-use loads Evaluate and report DSM and other customer programs’ success related to goals and guidelines" C5. J3ata Management Activiti_~ Resource Management is responsible for and may request consultant assistance in developing, managing, analyzing, routing, maintaining confidentiality and providing other services related to sensitive data. Specifically these services may include : Development, maintenance, accessing and programing of the Marketing Information System De.velopment, maintenance, ’telemetry and programing of customer and city load data system CITY of PALO ALTO: RFP (2/96}SECTION 00001 PART II - SCOPE of WORK or SERVICES City of Palo Alto Development, maintenance, programming of an intranet information network Development, operation, and mainte’nance of an information clearinghouse for utility related data Development and dissemination of confidentiality policies and procedures TASK ASSIGNMENT PROCEDURE Selection of Consultant does not insure that the Consultant will be assigned work, but only makes the Consultant available to provide services to the CITY. At times, however, one or more Consultants may be assigned work by the CITY’s Project Manager. All work assignments will be .made at the discretion of the CITY’sProjeci Manager based on the Project Manager’s opinion of Consultant’s qualifications, availability, and past performance. An activity work plan shall be developed for each assignment requested by the Project Manager that includes scope, schedule, deliverables, budget and other information. Said work plan must be approved by the City’s Project Manager prior to its implementation. The Project Manager may give telephone authorization to Consultant to perform certain tasks at bislher sole discretion. This contra~t shall terminate on June 30, 1998. However, this contract may be renewed upon mutual agreement for two additional one-year periods. AMENDMENT NO. 1 ONE TO CONTRACT NO. BETWEEN THE CITY OF PALO ALTO AND EES, INC.~ t~ ~ / ~ I ¯This Amendment No.1 to Con?ract No. ("Contract") is entered into / i’ Iby and between the CITY OF PALO ALTO, a chartered city and a ~nic~ipal corporation of the State of California ("CITY") , and ~NC., a California corporation located at 12011 Bel-Red Road, Suite ~, Belle~-ue, Washington 98005 ("CONTRACTOR") . ~ ~> RECITALS: WHEREAS, the Contract was entered into between the parties for the provision of consulting services; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in ~onsideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: SECTION i. The following exhibit to the Contract is hereby amended to read as set forth in the attachment to this Amendment, which is incorporated in full by this reference: Exhibit "A" entitled "SCOPE OF SERVICES AND TIME SCHEDULE". SECTION 2. Except as herein modified, all other provisions of the Contract, including any exhibits and subsequent amendments thereto, shall remain in full force and effect. // // // // 970512 syn 0071205 IN WITNESS WHEREOF, the parties have by their’ duly authorized representatives executed this Amendment on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor By: Its: City Manager Director of Utilities Acting Director of Administrative Services Risk Manager Attachment: EXHIBIT "A":SCOPE OF SERVICES AND TIME SCHEDULE PART II, SECTION C5, SUBTITLE "TIME SCHEDULE". 970512 syn 0071205 CERTIFICATE OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF ~ COUNTY OF ))) On ~~ \%~ , before me, the undersigned, a notary ~ubli.c i~_a~ [or said County, personally appeared personal~y known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(~), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 970512 syn 0071205 3 Exhibit "A":Scope of Ser.vices and Time Schedule The Scope of Se~’iccs for this contract is provided below. The consultant will be asked to perform services in one or more of’the followirtg areas. ¯ A." i" -hnicol (~0nsulting. Leg~.slative and Regulatory Services Within lhe Electric Utility, there are three main focus areas’ -Western Area Power Administration (WAPA) Electric industry restructuring and related issues Miscellaneous consulting services A1.~- Monitoring, analyzing, and reporting on key Western Area Power AdministCation (WAPA) activities that may affect the CITY’S electric utility. These services include but are not limited to: Identify and analyze WAPA issues and activities that may impact the rates that the CITY pays for power or impact the amount of power the CITY receives from WAPA. Analyze Federal and State legislative activities that may impact CITY of PALO ALTO: RFP 12/96}SECTION 00001-7 PART II - SCOPE of WORK or SERVICES City of Palo Alto availability or cost of t_he WAPA resource., Provide assistance in developing appropriate response strategies to relevant WAPA issues. Monitor key environmental proceedings such as the Bay/Delta proceedings, State Water Resource Control Board, water quality proceedings and others. A2..Electric Industry Restructuring and Related Issues Assist the CITY to respond to the challenges related to electric industry restructuring, including, but not limited to: Identification of possible market opportunities and threats; *Response to the challenges that the CITY may face from increased competition; Analysis relating to stranded costs and customer contracts *Assistance with monitoring and/or influencing any of the Western Power Exchange (WEPEX) activitles; Financial and technical analysis related to the Independent System Operator (ISO) and Power Exchange (PX); *Assistance with transmission and other FERC related issues. *Assistance with State Legislative monitoring and intervention, Assistance with interventions at selected proceedings, including technical assistance, draft.tes’timony, and/or .analysis of related litigation. A3. Assistance in Planning and,Economic Analysis of transmission services and supply resources CITY of PALO ALTO: RFP 12196}SECTION 00001 PART II - SCOPE of WORK or SERVICES Cib/of Palo Alto Assistance in analyzing and developing energy price risk management tools, products and ,~rvices and in developing new energy, pricing strategies. Monitor, analyze, and report on key USBR, State of California, CALFED, and San Francisco Bay, Sacramento and San Joaquin Delta Oversight Committee Activities that may affect the CITY’S electric utility. . . Management Consulting Contract Negotiations Interconnection Agreement evaluation and negotiation Identification and analysis of partnering opportuniiies B. Natural Gas Industry - "i’ech’qi0~l Consulting, Leaislative and Regulatory Service.~ Consultant shall provide natural gas consulting services and legislative and regulatory support to the City. The services and support are in the following task categories: Bi.Work with the City to establish regul.atory goals, objectives, and priorities. 132. B3. Monitor, analyze and testify in CPUC and FERC proceedings to represent the City’s interests. Maintain’ routine and sufficient access to key policy makers and staff at the CPUC to facilitate, upon City authorization, effective and efficient representation of the City’s viewpoints and concerns on gas regulatory issues. B4. Assist the city in attaining its gas acquisition and transportation objectives. B5.Monitor and intervene in the legislative process as required. 136.Provide the City with miscellaneous natural gas consulting services including development and use of optimization models, financial analysis and contract negotiations. CITY of PALO ALTO: RFP (2/96)SECTION 00001-9 PART II - SCOPE of WORK or SERVICES City of Palo Aft6 C..IJtilitv Market Assessment Services Consultant shall provide the following market assessment services as desired. C1. ~_r_~esting Service.~. The Consultant may be requested to assist with forecasting annual usage for electricity, natural gas, and water. Advanced probabilistic and stochastic models may be required. Shor~term electricity forecasts for dispatching and forecasting for specific customer classes may be required. Forecasting skills may include but are not limited to: Development of dynamic regression models using Forecast Pro. Development of probabalistic forecasts using EXCEL add-ins. Development of stochastic forecasting models using a Monte Carlo model. Development of appropriate and defensible methods and data sets. Development of analysis of sensitive variables and correlations. Statistical analysis of results, written and oral reporting of results with conclusions and appropriate recommendations in a concise, understandable, and convincing.manner. C2. _C.~_ustomer Surveving.Service~.. Resoerce Management is responsible for investigating, analyzing and reporting to upper management important market information about Utilities customers, individually, by segmentation, or in aggregate. Possible Consultant services in this area would include: Development of scientificall’y useful and appropriate survey instruments Scientific and appropriate selection of customers for surveying CITY of PA.LO ALTO; RFP |2/96)SECTION 00001o10 PART I1 - SCOPE of WORK or SERVICES City oi’ Palo Alto Appropriate professional and defensible polling of customers through: focus groups, phones’urvey, written instrument surveys, etc. Analysis of survey results, written and oral reporting of results with conclusions and recommendations in a concise, understandable, and convincing manner. Providers who offer services.in customer surveying should demonstrate a breadth of experience and expertise in all aspects of those services listed here, as well as other relevant expertise and experience, as the proposer deems appropriate. C3. Market Analysi,~ Resource Management is responsible for and may request consultant assistance in: investigating, analyzing and reporting information about the market environment, including market forces, legislative issues and resulting laws, regulatory issues and resulting regulation, competitor behavior, etc. Also, Resource Management is responsible for assimilating, reporting and recommending related actions to upper management in a timely and effective manner. Services in this area include: Investigation and evaluation of competitor activities Regulatory and legislative monitoring, analysis, and intervention. Benchmarking of gas, water, waste-water, or electric utility activities and services in terms of economics, availability, quality, etc. Customerrisk analysis including scenario, simulation, decision analysis, etc.~ addressing the economic impact of customer Iosses, individually or in aggregate, under various potential market situations. J3_SM Program Activitie~ Resource Management is responsible for and may request customer assistance in: investigating new DSM technologies, setting DSM program goals and guidelines, developing and maintaining customer participation data, and evaluating programs. Services in this area include: Investigation of DSM and other customer end-use.technologies and CITY of PALO ALTO: ’RFP 12196)SECTION 00001-1 1 PART II - SCOPE o~ WORK or SERVICES City of Palo Alto methods, estimating technical and market potential of these technologies, and recorflmending realistic goals ’for customer programs Develop DSM program goals and guidelines using: 1) City DSM goals related to specific technologies, customer segments, and end-use loads; 2) knowledge of DSM and other customer program methods andtechnologi~s; 3) and customer information (from formal and informal surveys) Develop DSM and other customer programs to satisfy Utilities goals for specific technologies, customer segments, or end-use loads Evaluate and report DSM and other customer programs’ success related to goals and guidelines C5. Data Management Activities. Resource Management is responsible for and may request consultant assistance in developing, managing, analyzing, routing, maintaining confidentiality and providing other services related to sensitive data. Specifically these services may include : Development, maintenance, accessing and programing of the Marketing Information System Deyelopment, maintenance, teiemetry and programing of ~ustomer and city load data system Development, maintenance, programming of anintranet information network Development, operation, and maintgnance of aiq information clearinghouse, for utility related data Development and dissemination of confidentiality policies and procedures ~LA_SK ASS~G.N~ENT PROCEDURE Selection of Consultant does not insure that the Consultant will be assigned work, but only makes the Consultant available to provide services to the CITY. At times, CITY of PALO ALTO; RFP {2/96)SECTION 00001-12 PART II - SCOPE"of WORK or SERVICES Ci~ ol Palo Alto however, one or more Consultants may be assigned work by the CITY’s Project Manager. All work assignments-Will be made at the discretion of the CITY’s Project Manager based on the Project Manager’s opinion of Consultant’s qualifications, availability, and past performance. An activity work plan shall be developed for each assignment requested by the Project Manager that includes scope, schedule, deliverables, budget and otherinforrnation. Said work plan must be approved by the City’s Project Manager prior to its implementation. The Project Manager may give telephone authorization to Consultant to perform certain tasks at .his/her sole discretion. Time Schedu|c , This contract shall terminate on June 30, 1998. However, this contract may be renewed, upon mutual agreement for two a@d~tional, one-year periods.