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Home My WebLink About5/16/2012 - STAFF REPORTS - 2M {Ot P A LM SA9 .y c u n Cq</FORN�P City Council Staff Report Date: May 16, 2012 CONSENT CALENDAR Subject: APPROVAL OF AMENDMENT NO. 1 TO CONTRACT SERVICES AGREEMENT NO. 6185 WITH NEWCOMB ANDERSON MCCORMICK, FOR THIRD PARTY PEER REVIEW OF THE CITYWIDE ENERGY MANAGEMENT PROJECT From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY An amendment to the contract services agreement with Newcomb Anderson McCormick is recommended to include additional services related to the third-party peer review of the Citywide Energy Management project proposed by Chevron Energy Solutions. RECOMMENDATION: 1) Approve Amendment No. 1 to Agreement No. 6185 with Newcomb Anderson McCormick, in the amount of $26,200 for a total revised contract amount of $51,200 for the Third Party Peer Review of Energy Conservation Measures, City Project 09-05; and 2) Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: On December 14, 2011, the City Council directed staff to move forward with Chevron Energy Solutions on the recommended list of Energy Conservation Measures to be included in the scope of the overall Citywide energy management project; approved the Comprehensive Energy Audit ("CEA") submitted by Chevron Energy Solutions dated July 20, 2011; and directed staff to move forward with an independent third party peer review of the Citywide energy management project. ITEM NO. City Council Staff Report May 16, 2012 - Page 2 Amendment No. 1 to Agreement No. 6185 Subsequently, the City Manager approved an agreement with Newcomb Anderson McCormick to proceed with the third party peer review of Chevron's CEA, to confirm the energy savings and qualify the approximate costs of the proposed conservation measures. The third party peer review consultant has completed its initial task, and has reviewed Chevron's CEA and the bundled list of energy conservation measures recommended by Chevron. Staff has been meeting with the consultant, and the City Council sub- committee (Lewin/Mills) to review the third party peer review findings. A draft report has been prepared and is currently under review, and has generally concluded that the energy savings identified by Chevron were reasonable and conservative; and has generally concluded that the construction costs were reasonable in accordance with industry standards. A final report will be presented to the Council in the near future. In preparation of the next steps of this project, it is recommended that the City engage with the third party review consultant on additional services to better prepare staff and Council on arriving at a recommendation to move forward with Chevron on the Citywide Energy Management Project. The additional services include: • Analysis of the detailed financial pro-forma provided by Chevron to the City for the final construction (design-build) contract; • Analysis of "Design-Build" vs. "Design-Bid-Build" approaches to identify benefits and risks of each approach; • Analysis of Assembly Bill 32 related to co-generation and qualification as a regulated entity; • Analysis of Chevron's proposed Measurement & Verification program to identify construction oversight and contract risks, and to assist in contract negotiations with Chevron; • Attendance and coordination with staff and Council at subsequent meetings. FISCAL IMPACT: Funding for this contract is being made available from the Sustainability Fund, in account 138-1270-43200. 02 City Council Staff Report May 16, 2012- Page 3 Amendment No. 1 to Agreement No. 6185 SUBMITTED: Prepared by: Recommended by: l/�1� HNC iL z" 04L Marcus L. Fuller David J. Barakian Assistant Director of Public Works Director of Public Works/City Engineer Approved by: Thomas J. Wils Asst. City Manager David H. Ready, C' ager Attachments: 1. Contract Amendment 03 AMENDMENT NO. 1 TO CONTRACT SERVICES AGREEMENT NO. 6185 WITH NEWCOMB ANDERSON MCCORMICK THIRD PARTY PEER REVIEW OF ENERGY CONSERVATION MEASURES CONSTRUCTION COST ESTIMATES AND ENERGY SAVINGS CITY PROJECT NO. 09-05 The following articles of Agreement No. 6185 are hereby amended to read as follows: SECTION 2.1 Maximum contract amount is amended to Fifty-One Thousand Two Hundred Dollars ($51,200.00). SCOPE OF SERVICES (Exhibit "A")— Exhibit"A" is amended as follows: The Consultant shall provide the additional services in accordance with the Consultant's letter dated April 24, 2012, attached hereto. SCHEDULE OF COMPENSATION (Exhibit"D")— Exhibit"D" is amended as follows: The total contract amount shall not exceed $51,200, including all hourly and direct costs. Purchase Order Number(s): 12-0713 Agreement Number: 6185 Original Approval: December 14, 2011 Original Contract Amount: $ 25,000 Amount of Previous Increase(s) $ 0 Amount of This Increase $ 26,200 Amended Total: $ 51,200 Account Number(s): 138-1270-43200 $26,200 SIGNATURES ON LAST PAGE {�Q Except as specifically amended by this Amendment No. 1, all terms and provisions of Agreement No. 6185 remain in full force and effect. ATTEST: CITY OF PALM SPRINGS, a California charter city By: City Clerk By. City Manager APPROVED AS TO FORM: By: City Attorney CONTRACTOR: Newcomb Anderson McCormick Check one:_individual_Partnership X Corporation Corporations require two notarized signatures: One signature must be from the Chairman of Board,President,or any Vice President.The second si ature must be from the Secretary,Assistant Secretary,T surer,As istant a urer,or Chief Financial Officer). _ Notarized Sig lure of Chairman of Board, Notarized Signature Secreta ,Asst Secretary, President or any Vice President Treasurer,Asst treasurer or Chief Financial Officer NameL,41,4 'o- s��iu/�r +lam Name: A1"4-z_ V--� `") Title:�/�,Qi'J/O!7-./� TRIe:_�JL'�. State of— "tPOr S/f State of At7Te7�V lA Cou t }ss CCountyof� 6! I,i ss �vl I77 iV 1 , OrAOn Z7� Z7fore me personally appeared M' �«'7 personally appeared who proved to me on the basis of satisfactory evidence)to be who proved to me on the basis of satisfactory evidence)to be the person(y whose name(;}is/are subscribed to the within the person 4 whose nams(s) isVare subscribed to the within instrument and acknowledged to me that he/shaAhey instrument and acknowledged to me that he/shaAdey executed the same in his/h,dttisir authorized capacity(ies), executed the same in his/par/ateir authorized capacity(ies), and that by his/hoOftir signatures)-on the instrument the and that by hislbaWpeir signature(s) on the instrument the person(s),; or the entity upon behalf of which the persoRts) persoryy, or the entity upon behalf of which the person(s) acted,executed the instrument. acted,executed the instrument. I certify under PENALTY OF PERJURY under the laws of the I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and State of California that the foregoing paragraph is true and correct. correct. WITNESS my hand and officialc'ial seal. WITNESS my hand and official seal / - Notary Signature: " ' Notary Signature: V V Notary Seal: Notary Seal: W. TURNEY '* Commission # 1927476 W.TURNEY Notary Public -California n "'"''"' Commi=.sion # 1927476 z •r-s 4 < "(=® Notary Public -California z z San Francisco County My Comm.Expires Mar 31.2015 z •a`4._�.,d San Francisco County My omm.Expires Mar 31.2015 05 EXHIBIT "A" ADDITIONAL SCOPE OF SERVICES Newcomb I Anderson(McCormick ENE3,} eNG NEERING AND CONSUi"iNfi April 24, 2012 Mr. Marcus L. Fuller, P.E., P.L.S. Assistant City Engineer/Assistant Director of Public Works City of Palm Springs 3200 E Tahquitz Canyon Way Palm Springs, CA 92263-2743 Subject: 2451.01(A) Review of Chevron Energy Project—Additional Services Dear Marcus: Thank you for the opportunity to provide this proposal to the City of Palm Springs for additional engineering services and coordination related to the technical review of the proposed Chevron Energy Project. The initial scope of work included the technical review of the Comprehensive Energy Analysis for the proposed project, and the findings were that the overall proposal is reasonable, although some points of concern were found as outlined in the Draft Report delivered to the City. Subsequent meetings and conversations have revealed additional needs for clarification beyond the technical review scope, and warrants further analysis and discussion. Accordingly, Newcomb Anderson McCormick (NAM) is pleased to offer the following professional services with the ultimate goal of ensuring the City of Palm Springs has a fully investigated all aspects of the project and contractual arrangement, such that the City Council can make an informed decision on project approval. We propose the following additional scope of work prior to finalization of the report: - NAM will review the detailed pro-forma provided separately from the Comprehensive Energy Analysis (CEA)and advise the City on its congruency with the CEA. - NAM will investigate the pros and cons of completing the proposed project as a Design-Build project, compared to a Design-Bid-Build. The findings will be presented to the City Staff Subcommittee and Staff in a qualitative manner sufficient to determine the benefits and risks of each approach. - NAM will investigate and quantify the magnitude of potential impacts of AB32 related to cogeneration and qualification as a regulated entity. - We will assist the City to develop resolutions for report findings on M&V plans, construction oversight and contract risk issues in preparation for negotiations with Chevron Energy Services - NAM will provide assistance to the City with contract negotiations related to our report findings through advice and meetings with Staff and Chevron. - NAM proposes to conduct up to two additional meetings with City Council subcommittee and Staff to address additional questions and concerns. 201 Mission Street,Suite 2000. San Francisco..CA 94105 T 415-896.0300 F 416-896.1900 06 Page 2 of 2 P—2401.06 NAM proposes to conduct this work as a change order to our existing contract at the established time and materials rates. The total cost of these additional services, inclusive of direct costs shall not exceed $26,200. We stand ready to begin work immediately, and look forward to this important project. Sincerely, John M. Newcomb Principal Newcomb I Anderson (McCormick 201 Mission Street,Suite 2000, San Francisco,CA 94105 T 415.896.0300 F 415.896.1900 07