Loading...
HomeMy WebLinkAbout5/3/2000 - STAFF REPORTS (16) DATE: May 3, 2000 TO: City Council FROM: Assistant City Manager-Special Projects CONVENTION CENTER-COAST INTELLIGEN, INC. POWER PROPOSAL RECOMMENDATION: It is recommended that City Council consider approval of an agreement with Coast Intelligen,Inc.for installation and operation of a distributed power generation system at the Convention Center. BACKGROUND: Sometime back, Coast Intelligen approached the City concerning the installation of a distributed power electrical generation system for the Convention Center. It should be noted that this is not a cogeneration unit, but rather a system designed to only provide electrical generation with no waste heat capturelconversion. One of the reasons for delay in getting this to City Council was the fact that Southern California Edison had no requirement to allow"distributed generation' to hook to the grid. A recent PUC order has changed that, though there are still some unanswered questions concerning tariffs which may be charged far standby services. The proposed agreement with Coast Intelligen requires the Contractor, not the City, to assume any such fees. The attached proposed agreement is the result of many hours of work by Coast Intelligen,as well as staff and the City Attorney's office. A summary of the contract points are as follows: Equipment:The Contractor,at his sole cost,shall design,plan,permit,install and operate a 150-KW electrical generation set at the Convention Center. Term: The initial term will be for seven years with a throe-year extension option at the City's sole option. Ownership: At the and of the seven years, the equipment will become the Clty's atthe City's option if a cogeneration equipment agreement has been put in place at the Wastewater Treatment Facility. At the end of the three-year option period, the equipment becomes City property. Operation: The equipment shall be operated 95% of the time on-peak and mid-peak with maintenance to be scheduled off-peak. Payment: The only cost to the City during the term is to buy the electricity produced at 6% below the current rate or any rate less than current. The Convention Center Staff has reviewed their most recent records and report that, based on our average electric bill,they would expect to see annual savings of$8610 from this contract. air& Coast Intelligen Contract May 3, 2000 Page Two A Minute Omer approving the agreement is attached for City Council consideration. ALLEN F. SMOOT,AAE Assistant City Ma tiger-Special Projects APPROVED City Manager ATTACHMENTS: 1. Minute order 2. Agreement CITY OF PALM SPRINGS CONTRACT SERVICES AGREEMENT FOR DISTRMUTED GENERATION AT THE PALM SPRINGS CONVENTION CENTER THIS CONTRACT SERVICES AGREEMENT(herein"Agreemem"),is made and entered into this day of . 2000, by and between the CITY OF PALM SPRINGS,a municipal corporation,(herein"City")and Coast Intelligen,Inc.(herein"Contractor'). (The term Contractor includes professionals performing in a consulting capacity.) The parties hereto agree as follows: 1.0 SERVICES OF CONTRACTOR 1.1 Scope of Services. In compliance with all terms and conditions of this Agreement,the Contractor shall provide those services specified in the"Scope of Services"attached hereto as li&bftW and incorporated herein by this refarace,which services may be refeaod to herein as the "servtees" or "work" hereunder. As a material inducement to the City entering into this Agreement,Contractor represents and warrants that Contractor is a provider of first class work and services and Contractor is experienced in performing the work and services contemplated herein and, in light of such status and experience, Contractor covenants that it shall follow the highest professional standards in performing the work and services required hereunder and that all materials will be of good quality, fit for the purpose intended For purposes of this Agreement,the phrase"highest professional standards" shall mean those standards of practice recognized by one or more first-class firma performing similar work under similar circumstances. 1.2 �ompliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules, and regulations of the City and any Federal, State or local governmental agency having Jurisdiction in effect at the time service is rendered. 1.3 Licenses. Permits. Fees and Assessments. Contractor shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Contractor shall have the sole obligation to pay for any fees,assessments and taxes(excluding tax levied on the sale of power and water from Contractor to City,as set forth in Zxhlflxd"B"l.plus applicable penalties and interest,which may be imposed by law and arise from or are necessary f rr the Contractors performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees,assessments,taxes,penalties or interest levied,assessed or imposed against City hereunder. 1.4 Familiarhty with Work. By executing this Contract, Contractor warrants that Contractor (a) has thoroughly investigated and considered the scope of services to be performed, (b) has carefully considered how the services should be performed, and (c) fully understands the facilities, difficulties and restrictions attending performance of the services under this Agreement. If the services involve work upon any site,Contractor warrants that Contractor has EXFIIBIT"A" SCOPE OF SERVICES I. City to Own Equipment in Specified Circumstance. Contractor agrees that the City will,at City's sole option,be the sole,outright owner of the Convention Center Equipment at the end of the team of this Agreement but only if during the term of the contract the City elects to contract with Contractor for cogeneration at the City s wastewater treatment plant,or if the City elects to exercise As three-year option pursuant to section 3.4 of this Agreement Should the City elect to contract with Contractor for cogeneration at the City's wastewater treatment plant, such contract will be negotiated and drafted as a separate document 2. F�uf moment The Contractor will provide to the City, and the City shall accept from the Contractor, a 1-150 KW Coast Intelligen generation unit, Model 2150, along with appropriate catalytic converters. 3_ Location. City of Palm Springs, Palm Springs Convention Center. Equipment is to be located at existing natural gas meter location. 4. Power to Be Supplied Contractor will supply the City's Convention Center with a minimum of 150 kw of electrical power on a daily basis. S. Description of Work to Be Performed. Engineering, permitting, delivery of equipment, filing for interconnect agreement, installation, start-up. maintenance of equipment, warranty of equipment,providing of requisite power. 6. Agreement Price-Fixed Tariff Discount The City agrees to purchase, and the Contractor agrees to supply,electricity for the Convention Center at a fixed discount of the lower of either 5% off the City's current electric We tariff for the Convention Center(as of the date the equipment goes on line)as calculated on a monthly basis,or any subsequent lower replacement rate tariff otherwise available to the City in the open market in the absence of this Agreement(inclusive of any direct access charges or additional gas consumption costs directly attributable to the Coast equipment)for the entire term. This Agreement price shall be the total Agreement price,and the City shall pay no other charges or costs, including,but not limited to, installation and maintenance charges or costs, which shall be bor solely by Contractor. Should the public Utilities Commission,at a future date, establish "stand by-charges" for "distributed generation" or any other charge that is assessed because a distributed generation system is connected to the Convention Center, Contractor shall be fally responsible for that cost 7. Contractor to have Access to Site for Maintenance. City shall provide access to the equipment site at reasonable tunes in order to allow Contractor to perform any required maintenance or warranty work on the Equipment. All maintenance shall be performed in off-peak ieriods- 8. Dedicated Phone Line. City shall provide access for a dedicated, voice quality, phone modem line in order to allow Contractor to remotely monitor the Equipment The costs of installing maintaining and the regular service fees of the phone line will be paid by Contractor. 0AI A gACat 6 E7C>:IIB1T"A" oereMat.watM -1- 9. Guaranty o�p and RunningTime Contractor guarantees that Equipment will rim properly (defined as supplying the needed electricity on a daily basis) at least 95% of high peak times (as commonly understood in the industry), exclusive of authorized and necessary previously scheduled maintenance. Contractor agrees as liquidated damages that should equipment failure exceed this percentage,Contractor shall pay to City the difference between the Agreement price,as specified in " as calculated on a pro-rata basis for the days during which the Equipment is nonoperative, and the amount paid to obtain an alternative source of power, but only if City complies with the notification process set forth immediately hereafter. In order to document equipment failure, the designee of the City shall notify Contractor via facsimile within 24 hours of such equipment failure, such notice stating the period of time that the equipment failed. The notification shall specify the manner of failure and any other pertinart details so as to allow Contractor the ability to quickly remedy the failure. 10. Removed Fainmynt. Any existing cogeneration equipment at City's premises that is removed by Contractor during the course of its installation work shall become,at the option of the City,the property of Contractor. Prior to exercising such an option, Contractor shall provide a list of all equipment to the City. 11. k=Ugtrsn and Inspection The City will provide at no cost a suitable and mutually satisfactory space for installation of Equipment,which shall conform to the specifications provided by Contractor. Although the City aclmowledges that an interruption of existing utility service may be required in order to complete installation, Contractor will ensrtre that any such interruption occur at off-peak hours as defined by common industry usage and understanding. Further, Contractor will notify the City before any said interruption occur:. Contractor and the City will mutually agree upon a date for installation of the equipment. Upon installation,City will inspect the equipment to ensure that it is functioning properly. Upon completion of inspection the City will notify Contractor that the equipment is installed and fnctioning at an acceptable level. The date this notice is provided will be deemed the bate of Delivery as set frrth in ExhM'D." wazoua4O EMMIT"A" aateot aovmiao -2- EXH Brf"B° SPELL L PEOU z QMM 1. Taxes on the . Applicable tax on the sale of power and water from Contractor to City shall be the responsibility of City to pay and Contractor to timely collect and remit to the proper authorities. The party which is delinquent in performing its duties under this section shall be liable for any fees or penalties imposed for delinquent tax payment 2 Djggktion of ent Upon expiration of this Agm amcnt,Contractor will remove contractor's Equipment at Contractor's sole expense and restore the City's property to its original condition at Contractors sole expense,unless otherwise agreed in writing by the City and Contractor,or unless Section 1 of Exhr 't"A"is applicable. E7{l>ffEIT"$" 10MI40640001 60436.01 a04r10M0 '1' MGM11 11C1 SCHEDULE OF COMPENSATION 1. R== Schedule. Payments will begin thirty (30) days after installation with the first payment prorated as per the meter readings for usage from the dine of operation to the first day of the following month. Payments will be made m arrears and each payment not received within thirty (30) days of date due shall have a late charge of .015% of the amount due. The amount and determination of payments is set forth in the section entitled "Agreement Price -- Fixed Tariff Discount"in Exbibit ionmuauaom }?XEIII3IT"C" 6D476 01 AM AND -1- E}CHIBIT"Dn SCHEDULE OF PERFORMANCE 1. 1. The term of this Agreement shall be eighty-four (84) months unless terminated pursuant to Section 7.8 of the Agreement or unless the Option to Renew as specified below is exercised. 2. Date of Delivery. Date of delivery is to occur within ninety (90) days from the date of execution of this Agreement. Delivery includes both installation of the equipment, as well as the providing of the requisite power to the City as specified in this Agreement. Date of Delivery is contingent upon timely issuance of necessary permits and interconnection of equipment by utilities and shall be reasonably extended for any delay not the fault of Contractor. 3. Qption to Renew. City shall have the option to renew this Agreement following the Term of the Agreement. ate $ E.4=rr"D" MINUTE ORDER NO. APPROVING AGREEMENT # WITH COAST INTELLIGEN, INC. FOR DESIGN, PERMITTING, INSTALLATION, OPERATION AND MAINTENANCE OF A DISTRIBUTED GENERATION SYSTEM FOR THE PALM SPRINGS CONVENTION CENTER. I HEREBY CERTIFY that this Minute Order, approving Agreement # with Coast Intelligen, Inc. for design, permitting, Installation,operation and maintenance of a distributed generation system for the Palm Springs Convention Center was adopted by the City Council of the City of Palm Springs, California, In a meeting thereof held on the Y4 day of May 2000. PATRICIA A. SANDERS City Clerk aS5