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HomeMy WebLinkAbout0444.093~ • • " : .. :- AUt;Ust 5, 1993 THE HONOPABLE CITY COUNCIL Palo Alto, california 16 COD5Ulyant S&XVic9 Agreement Belated to West§rn Arqa Power Ad'mini titra t i on c2Il.t..ract Act iy iti es Members of the Council: This report requests that cOlli~cil authorize the Mayer to execute the attached agreement with Resource Management International (RMI) in the amount of $90#000 for specialized consulting services on Western Area Power Administration (Western} issues during FY 1993-94. In addition, staff recommends that council authorize the City Mana~er or he~ designee to execute one or more contract amendments with RMI in the amount that shall not exceed $10#000 for unforeseen additional western matters. Funds for these services are included in the FY 1993-94 utilities Consultant Services Budget. On July 13, 1993 the Finance Committee voted to review the consultant aelection for these activities. However, due to the urqent need fo~ assistance witn western issues and strategy development prior to the Finance Committee's next schedul~d meeting on september 14, staff is seekinq Council '5 approval of the attached contract at this time. With the Council's approval, the attached agreement can be implemented in a timely manner to assist staff in further development of strategies aimed at the Western contract renewal process which starts September 1, 1993, and the Central Valley Project Restoration Act Title-34 hearings already underway. CI<R:H4:93 1 piSCUBgion of Consultant Services for FX 199:3-9..1 NUlIIeroos issues are coming up regarding Western's powe.r JIIarketinq. rates, resource acquisition decisions, C\~p Restora.tion Act cost allocations, and contract renewa14 Since the Western contract supplies approximately 90 percent e! Palo Alto's electric ene%9Y needs and costs approximately $24 million per year, staff believes that the City yill benefit from the hirinq of a consultant ~ith expertise in Western issues to gather inforaation, advise staff, and assist in developing appropriate response strategies. staff used the RFP process to solicit proposals from conSUltants: that have developed a respect,able exper"tise in requlatory matters 4 R2quests fo~ proposals we~e mailed to eleven consultant firms. Three firms responded ~ith proposals to provide weetern custo~er issue support 4 The proposals were review~d by utilities staff members, and it was unanimously recommended that Resource Manaqement International (RMI) and Henwood Energy services Inc~ (Henwood) be interviewed. A set oE interviev questions was developed for use by the selection committee4 Teams of two representatives from RMI and three represantatives from Henwood were interviewed on June 21, 1993. The selection committee reviewed the written proposals and the responses to the written questions asked orally during the interviews 4 As a result, the selection committee recommends using RMI to provide assistance with information qathering and strategy development for contract renewal and various Western customer technical issues. RMI has informed staff they .ould not generally represent other parties that may have a conflict of interest ~ith the City of Palo Alto4 HOlt .. ever, if either the city or the consultant believes that a conflict would arise, regarding the consusltant's representing the City, RMI has agreed to recommend alternative advisors to the City for that particular proceeding4 Utilities staff will continue to represent the City before Western, the california PUblic utilities commission and the California Energy Commission. The consultant is beinq retained tor the purposes of information gathering, development of strategies and technical advice and not for the purposes of representing the city before Western~ 0"1104U." 2 BACPMcndot 1 oes Staff recommends that council: 1~ Authori~e the Mayor to execute an a9reegent with Resource Manaqement International, Inc~ in the amount of $90,000 tor the provision of consultin9 services i~ FY 1993-;4 to: support ana specialized consultinq services on western Area Power Administration issues; And 2~ Authorize the City Manaqer or her desi9nee to neqotlate an~ execute one or more amendments to the aqreement with Resource Management International, Inc. to provide for untoreseen additional work relateQ to western matters. the value of which shall not exceed $lO~OOO. RQspectfully submitted, S~ .. \ #"1,,.....,\--- :;~7i~R:.Sre Planning ErNJoJ.~ Interim Oirecto~ of Utilities -JUf\.L. .;ihnu,'o/ <- JUNE FLEIII He: City Manager Attachment: Short Form Agreement -RMI CXR:444:93 ) >.' J915BS211i!'7J F.~ " , No. ___ _ • CONTllACTOR IItlU. ~ ~ IUfII!iaEN \"WE: 1IIO..1.CIItWC~"""""" ~ ..... ~ ~. p:MalT -lh,,-__ "TT~~HIO~'PIiD ...... ;rr~~ .', ,. EXHIBITS "n4E~.a!"flOE)~""'''.\I'IA~INIfn"''fI1I&.~ ~1[. .. -"s--.a, of ~ .n k%v1.c:es" aMbit" -'"am: I.&~ 5dl.ecNl.- ~U: c. .... "'CDdfUc.'-d I:cn:uat." • ~ "~"""""'lI!I'W.J~t.IlIDU,....,~--.u..~ta=Qt.I..!eptMbar !t 1993 MID SHItU._ CICM'L!TID ~ JuD.. 30 I 1 ffi • COlIFB4SATION R»,"1HE"-U .....::'CFlMS~k'I"; lSi C1Yaw,LPA"~ '90.000 O~"""'M"'~ • PRO.reCfMAHAQER _-.. __ ..... ... ~~~~ .. ~H~=~=~~i~~~ ____________ _ IlUUu.es_rco n_ I'.c... .. 1GaO P.u.DAL'R:I. c:A ~ .,...... '.15) 122-W' CONllIA~ - ~ ~$(ce ~ ___ ~~~"~1=~~<~. __________________ _ --... ""'..-_____ "'94-.,.2,..'"U ... 2"'2,,4'-_______ _ • .IfVOtCING .. AUoIMlOCU TO'nEOh.A1"'ffl.: I"'fIOJIE>;rIilrNlolG!A • an Of" PALO ALTO APPROVALS: IIOUI1: II'OtSlaUolUM$ ~'?Q~ lrC""""'lrLlCIII$ aeOWl -----_ .... _ ..... • ., " EXHIBIT A SL'MMARY Of SCOPE OF SERVICES I. GENERAL The se",ices descnbed herein will be performed at the direction of CITY staff on a time and materials basis according to rates described in Exhibit B. Base-Level Activities The essential services to be contracted for involve monitoring, anal}'Zing, and reporting on key Western Area Power AdIl"'Jnistralion (WAFt\.) activities. that may affect the CITY'S electric utility. These services include but are not limited to: • • • • Monitoring alld reporting on ongoing activities at W.J\P A. Keeping in contact with key staff at WAPA to monitor the development of marketing plan., proposed rule!>, and rate proposals. Identification and analysis of WAPA. issues and activities that may impact the rates that the em' pays for power or impact the amount of power tb e CrrY receives tram WAPA. Providing assistance in developing appropriate r~ponse strategies to relevant W AP A issues. Drafting comments and respon.<;.es for em review submission to appropriate entities involving W AI' A issues. Providing economic anaJysis of WAPA proposals and issues. DeUverables inclu ding mopthly letter reports and periodi c briefings with CITY staff. The Jener reports and briefmgs shall include recommendations to the CITY as to appropriate actions to influence the course of eVents. The deliverables 'WiD also include -issue alerts" to the CITY's fax machine (415) 326-1507 10 infonn Ille Clrr of any late breaking evenlS or items that may require immediate action. Baclcground expertise in all aspectS of W AP A customer issu es. Telephone C(lOSUhanOD regarding appropriate strategies responses. Other nece.ssary services related to W AP A issues. Optional TMks Additional seIVices which may be contracted for, and for whiell tbe CONTRACfOR should itself or through a subconsultant be qualified and prepared to furnish, include any type of consuiting services rdated 10 the CITY'S electric utility, including but nOI limited to; • Transmission Planning a.qd Economic Analysis • Integrated Resource Planning Financial Planning • Feasibility ana Economic Studies Forecasting Managemem Consulting • Conuact Negotiations AU assignments for actual servj.ces shall be confirmed in writing and 'Will specify seop::, deliverahles., schedule and compensation. n. OUTUNE OF SERvlCES 1. MonitOring and reporting on key WAPA Central Valley Project activities. a. Rate and environmental impaC'.: 51aternent j>foceedings b. Customer meetiru:.s. c. Marketing plam and programs. d. Major purchase arrangements and cost items., such as fisheries improvements. 2. Providing the aTY witb regular progress and status reports. a Monthly briefing pap.rs. b. Bj ~monthly presentations. OptiODaJ Tasks The following are examples of ta..ks for whiell the ContIaClm should be prepared to perform: .. '" 1. Monitor'..ng and reporting en key United SLatt.s Bureau of Reclamation (USBR) and Central Valley Project activities which may affect the CITY. a. Central Valley Project environmental impact statement meetings. b. Central Valle)o Project takeover meetings. 2. Other engineering. power marketing., and economic analysis SCf\r;ces as may be mun:ally agreed upon. Information Required from CONffiACTOB Proposals shall include the following information (not to exceed 10 pages, including ali atta<:hments and materials). m. SCOPE OF WORK The CONTRACTOR will provide the CITY with timely intelligence. The CONTRACTOR'S project team will work as an extension of the CITY'S Staff, complementing the Cm"S existing team of professionals. Tne CONlRACTOR'S periodic leuer reports, semiamonthly meetings with CITY staff, and as-needed "issue alerts" will provide the CITY with the infmmatian it needs to manage critical events before they become untractable. The CONTRAcroR will maintain a cinse working relationship with the CITY'S Resource Planning Division in order to fIne-runc: and implement the work requested by the CITY. The focus of the CONTRACTOR'S work will he detenoined by cluse collaboration with the CITY'S staff. The CONTRACTOR'S work product will 'meet the CITY'S needs and wl11 be cunsistent ",th agreed-upon budget;. Base-Level Activlli es Task I; Monitor, Analyze, and Report on Key WAPA Activities That May Affect the CITY'S Elec-.ric Utility The CONTRACTOR Wll1 monitor ongoing activities at WAPA; keep the CITY informed of sllch activitie:;; and make recommendations to the-CI1Y as appropriate actioD. The CONTRACTOR will keep in contact with key staff at W AP A and monitor events such as the development of marketing plans. proposed rules, rate propoials, rate proceedings, and decisions. The COl\'TRACTOR'S level of effort will he coordinated with the CITY'S staff and controlled and directed by the CITY. Deliverables will include mODlhly Jetter reports, periodic briefings with key stafr of the CITY. and information alerts on fast-bn".aklng developmenls. Each month the CONTRACTOR wiH provide a letter report documenting activities and is..<;ues that could affect the CITY'S ele. .. trit rates. The CONTRACTOR'S Project ManaJ;er will meet with key CITY staff once every two months to personally briei the CITY on the progress on work and receive direction from the CITY on future activities. Th~ letter Tepons and briefings wiJ1 include recommendations to th'! CITY as to appropriate actlons to influence the coune of eyents. The CONTRACTOR will provide "issue alerts" by fax to inform the ctTY of any lale-breaking eVents or items tha~ may require immediate action. QptionaJ Tasks Task 2: Monilor, Analyze, and Report on Key USBR, State of California, and San Francisco Ba~ and Sacramento and San Joaquin Della Oversight Committee Activities That May Affect the CITY'S Electric Utility The CO)o.'TRACTOR will monitor and repon on selected USBR, EPA Region IX. California Department of Water Resources, and other proceedings that could affect the operation o~ the CVP. The CONTRACTOR'S level of effort ~n b~ coordinated witb the CITY'S staff and tomrolled and directed by the ern. Task 3: Technical Assistance for Intt:rventions at Selected Proceedings As directed by the cm', the CONTRACTOR "ill assist the CITY staff (aGd, where appropriate, legal counsel) ""it.i intervention. .. at selected proceedings. The CONTRACTOR will provide technical .. "islance, drait testimony, and analysis of related litigation. The extent of the CONTRACTOR'S involvement will be worked OUI ",th the CITY on a case-by-case basis. Task 4: Perform "-"te Analysis As directed by the CITY, the CONTRACTOR will provide focused analyses of rate matters such as the Restoration Fund sure-harges, Revenue Adjustment OaUS(: and Project Dependable Capacity refunds, Pacific Gas and Electrk Company competitive rates, and similar matters that can provide direct benefits tv the CITY. The CONTRACTOR'S Jevel of effon will COQrdinated with the CITY'S staff and controlled and directe<! by the CITY. Task 5: Conduct Workshops. on Electric Transmission. Resource Planning. and Power Marketing Issu es. As directed by the cm', the C01'>'TRACTOR will provide focused workshop> for key CITY staff on issues such as the federal West Coast power marketing agencies (WAPA and the Bonneville Power Administration); Pacific Northwest and Southwest power markets; resource planning and transmission in California, the Southwest.., and the Pacific Nortllwes~ As directed by the an, the CONTRACTOR ",11 provide workshops specifically tailored to the aTY'S needs. As directed by the CITY, the CONTRACTOR will conduct three workshop>, in August 1993, Noyember ]993, and " February 1994, with the lopi< of each workshop to be detennined by the CITY. The CON1RACfOR'S lovol of effon will be coordinated with the CfIYS staff and co.troUed and directed by the CITY. EXHIBIT B RMI RATE SCHEDULE BUliDI CIassi!l<aIiOD Hourly Rote Project Team Member Principal Executive SI2S Maury )(ruth Consultant Michael Schmidt EJiecutive Consultant 5120 Tom Carter Supervising Consultant S 99 Steven Kelly Keith lohnson Senior COD5ultant S 89 Chris Collins Office Services $ 41 Ni Appropriate EXHIBITC CONFLICT OF INTEREST CONtRACTOR shall not directly represent CITY with respect to WAPA issues and proceedings before WAPA. CONTRACfOR sball not undenake before WAPA representation of clients whose interests conflict with the interests of CITY in the proceedings without prior notification of CITY.