HomeMy WebLinkAboutContract 53781-A3CSC No. 53781-A3
THIRD AMENDMENT TO
FORT WORTH CITY SECRETARY CONTRACT NO. 53781
BETWEEN CITY OF FORT WORTH AND
ACCLAIM ENERGY ADVISORS, LTD.
This Third Amendment to Fort Worth City Secretary Contract No. 53781 ("Second
Amendment") is made between the City of Fort Worth ("City"), a municipal corporation and
Acclaim Energy Advisors, a Texas Limited Partnership ("Vendor"). Each individually referred to
as "parry" and collectively referred to as the "parties".
WHEREAS, City and Vendor entered into an Agreement identified as Fort Worth City
Secretary Contract No. 53781 beginning April 6, 2020 (the "Agreement");
WHEREAS, the term of the agreement was for an initial term of three (3) years with three
(3) one-year renewal options at the City's sole discretion;
WHEREAS, the Vendor provides various management and consulting services to the City
concerning utility matters;
WHEREAS, on May 24, 2021, the Parties first amended the Agreement to allow
the Vendor to specifically provide natural gas procurement services ("First Amendment");
WHEREAS, on November 10, 2021, the Parties executed a second amendment the
Agreement to allow the Vendor to specifically provide natural gas procurement and budgeting
services ("Second Amendment");
WHEREAS, the City and Vendor executed a First Renewal, renewing the term of
the agreement through March 16, 2024, the same being City Secretary Contract No. 53781-
Rl;
WHEREAS, the Parties now wish to further amend the Agreement to allow the Vendor to
provide additional professional services related to the Agreement and more specifically to evaluate
the City's Biosolids facility's existing electricity contract, transfer electricity accounts to the City's
Retail Electric Contract, and perform Sales Tax recovery for both electricity and natural gas
accounts for the City's Biosolids facility; and
WHEREAS, the total compensation of the Agreement will increase by an amount not to
exceed $133,248.00 for a new total annual amount not to exceed $231,248.00 for the services
provided under the Agreement.
NOW THEREFORE, known by all these present, City and Vendor, acting herein by the
through their duly authorized representatives, agree to the following terms, which ame the
Agreement as follows:
OFFICIAL RECORD
CITY SECRETARY
Second Amendment to Fort Worth City Secretary Contract No. 53781 FT. WORTH, Tx Pagq of 9
1. Paragraph 3.1 of the Agreement titled Price Schedule shall be amended and
replaced in its entirety with the following language:
3.1 Price Schedule. City shall pay Vendor in accordance with the fee schedule
services performed under this Agreement in accordance with the provisions of this
Agreement and Exhibit `B," — Price Schedule. Total annual payment made under
this Agreement by City shall be in an amount up to Two Hundred Thirty -One
Thousand Two Hundred Forty -Eight Dollars ($231,248.00). Vendor shall not
perform any additional services or bill for expenses incurred for City not specified
by this Agreement unless City requests and approves in writing the additional costs
for such services. City shall not be liable for any additional expenses of Vendor
not specified by this Agreement unless City first approves such expenses in writing.
2. The Agreement is hereby amended by replacing Exhibit A of the Agreement in its
entirety and replaced with the 3rd amended Exhibit A attached to this Third Amendment.
3. The Agreement is hereby amended by replacing Exhibit B of the Agreement in its
entirety and replaced with the 3rd amended Exhibit B attached to this Third Amendment
4. All other terms, provisions, conditions, covenants and recitals of the Agreement not
expressly amended herein shall remain in full force and effect.
[Signature Page Follows]
Second Amendment to Fort Worth City Secretary Contract No. 53781
PYge 2 of 9
Executed effective as of the date signed by the Assistant City Manager below.
FORT WORTH:
City of Fort Worth Contract Compliance Manager:
By signing I acknowledge that I am the person
responsible for the monitoring and administration of
DcrhA BurrG.doff
this contract, including ensuring all performance and
By: Dana Burghdoff (Juh26, 202315:09 CDT)
reporting requirements.
Name: Dana Burghdoff
Title: Assistant City Manager
Date: J U r126, 2023
By:
Name: Juanita Rigsby
Approval Recommended:
Title: Energy Manager
Approved as to Form and Legality:
By: Steve o ke (Jun 23, 2023 08:01 CDT)
Name:
Steve Cooke
Title: Director, Property Management
By:
Name: Christopher Austria
Attest:
�eonT°�o
AoFoo k a
Title: Assistant City Attorney
c�°gac
o°= axd
°oa.00 o°d
Contract Authorization:
p°aa nEopa444
M&C: 23-0475
By:
1295:2023-1023551
Name:
Jannette Goodall
Title:
City Secretary
VENDOR:
Acclaim Energy Advisors, Ltd.
John Elder, Chief Executive Officer
1855 Saint James Place, Suite 1220
Houston, T 77056
Office: (71 ) 5 4 025
JElder(a,a 1 i ray.com
By: y .
Name: J Elder
Title: h' f E ec tive Officer
Date:
i
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 3 of 9
3"d Amended
EXHIBIT A
SCOPE OF SERVICES
Initial Procurement Services
a) Consultant will address current and anticipated future consumption patterns (including
new construction, infrastructure enhancements, energy efficiency measures and
programs, etc.).
2. Provide timely and accurate market knowledge and insight of the Texas electricity and
natural gas markets. This includes:
a. Providing market research and strategic risk management
b. Sharing access to public and proprietary pricing information and projections,
c. P r o v i d e data driven market fundamentals and technical information to support
procurement decisions and timing,
d. Giving market presentations to City employees,
e. Monitoring relevant markets and notifying City employees of material changes
that could impact the City's budget or financial outlook, and
f. Review City consumption patterns on a facility -by -facility basis and seasonal basis,
and recommend benchmarking and best practices from large industrial and public -
sector end -users similarly situated to the City.
3. Quantify and communicate the risks and benefits of various product types. Provide
analysis/assessment of the following products if applicable:
a. Heat Rate
b. N o d a I /Locational Marginal Pricing
c. Day -Ahead Market
d. R e a 1-Time Market
e. Non-traditional supply opportunities (i.e. Renewables)
f. Fixed Rate
4. Provide analysis of firm's products and prices offered and technical analysis as needed.
5. Advise City and evaluation committees on best fit for City's consumption and load profiles.
6. Evaluate proposals related to the use of financial and physical options (including supplier
price for natural gas future contract purchases), and caps, floors and collars for electricity
contract.
7. Work closely with the City to compile and analyze pertinent information from RFP
respondents for evaluation purposes.
8. Make recommendations in the selection of qualified RFP respondents.
9. Provide wholesale market transparency on all energy components, including ancillary
services, free components, congestion, nodal charges, and other charges and services. This same
analysis may also be required for any option periods in existing or future energy contracts.
10. Review electricity load profile to make recommendations for facilities and meters that i
can benefit from demand response enrollment. Assist with demand response options and
evaluation of programs and providers. Provide market intelligence on demand response
income sharing arrangements.
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 4 of'§
11. Provide energy data management services and solutions, tariff rate and tax optimization,
bill verification, dispute resolution, client advocacy and client educational opportunities.
12. Meet with City staff to review electrical bids/proposal details such as company
references; financial stability; pricing; pass thru fees; gross receipts tax; and other
contract terms, etc.
13. Provide the services in a professional manner, exercising the standard of care and using
the degree of skill and diligence prevailing in the energy industry of Texas.
Ongoing Services
Proposed Elements of Consulting Engagement
The following elements, categorized by 1) Energy Management and 2) TDU Regulated Utility
Items, are designed to assist and collaborate with the City to manage your energy needs.
1) ENERGY MANAGEMENT
First Bill Audit (offered as part of RFP A thorough review of the City's first invoice
service) from its supplier to ensure all aspects of the
invoice for each ESID, reflect the correct
contractual elements. This ensures expected
savings and budget expectations are realized.
Provide guidance with Demand Four distinct Demand Response strategies exist
Response matters: with varying degrees of complexity. The City
can utilize some or all of these options which will
provide a monetary benefit to the City based
upon the City's ability to reduce Demand (kW)
during critical periods.
• 4CP Strategy Voluntary reduction of load for Interval Data
Recorder (IDR) metered accounts. Successful
timing of reductions establishes a beneficial
tariff billing determinant for the entire year for
specific IDR meter. This may significantly
reduce the utility cost per kWh for that particular
meter.
• Utility Load Management The Oncor load reduction incentives may be
Program more lucrative than ERCOT sponsored load
reduction incentives such as ERS, allowing the
City to maximize monetary returns if willing to
participate. The City's thoughtful participation
can yield significant monetary returns to the City
and may allow the City to monetize certain
assets.
Demand Side Management (DSM) The City can reduce both kW and kWh
Initiatives: consumption via equipment upgrades, additions
of electro-technologies and or changes in
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page{of 9
behavior. Robust incentives are available from
the City's utility to encourage participation.
• Utility DSM Programs
Oncor offers several DSM programs that
encourage installation of energy efficient
equipment. Oncor refills DSM coffers annually
with specific budget amounts for each of its
programs. City meters located in the Oncor
service territory qualify to participate in these
programs which can subsidize planned energy
projects through the City's participation, such as
the Oncor Standard Offer Program.
https://eepm.oncor.com/Commercial.aspx
REP billing report Audit
Periodic Audits of REP billing may find billing
errors, and may also highlight operational
problems that are causing too much consumption
for specific meters. Identifying these instances
allows for corrective actions, ultimately
providing monetary savings.
2) REGULATED UTILITY ITEMS
Regulated Utility Analysis:
All meters are billed based upon utility tariffs
which are approved by the PUCT. These tariffs
typically have several set billing determinants
that are determined based upon when and how
much electricity flows through a specific meter. ,
• Oncor cost reduction strategies
While many believe nothing that can be done to
reduce the utility portion of an electric invoice,
there are various ways to identify and effectuate
usage that will reduce the utility portion of the
invoice, which will reduce overall cost per kWh
for a meter, providing the City with savings.
• Poor Power Factor
We will identify the City's largest accounts by
Identification
cost with poor power factor. Utility tariffs
penalize for poor power factor leading to a
higher cost per kWh for that meter. In many
instances, corrective action can be taken with
installation of capacitors to improve power
factor, eliminating penalties and reducing the
cost per kWh for that specific meter.
• Utility Audit
Facility audits may identify high cost locations
allowing for an in-depth review. Corrective
action may yield significant savings for the City.
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 6 of 9
Service Assistance Installation of new facilities requires
establishment of a new utility service, which also
requires coordination with the City's REP.
Adding or deleting locations strategically to the
City's contract, based on then -market prices, can
yield savings.
Meter Consolidation
Billing Disputes
Natural Gas Procurement Services
Scone of Services
In certain instances, the City may benefit by
combining services under one meter, reducing
the City's meter count. Various elements exist to
determine feasibility, however, if feasible, this
can yield significant savings.
Utilities occasionally make mistakes and will
refund customers for errors within a certain time
frame. Identifying errors could provide refund
amounts as well as correct future utility billings.
Acclaim Energy LTD., (Acclaim) shall provide natural gas procurement services on behalf of the City of
Fort Worth (City) which shall include strategies and other activities related to the selection of a best value
natural gas supplier and associated supplier agreement for qualifying City of Fort Worth facilities.
Acclaim will perform the following on behalf of and as requested by the City during the term of the
Agreement. Acclaim will provide services consistent with prevailing market practices for such services and
consistent with reasonable and customary industry codes of conduct.
a. Evaluate the City's current list of qualifying natural gas accounts,
b. Evaluate the City's current natural gas contract(s) if applicable,
c. Obtain account usage data from the natural gas utility,
d. Propose a natural gas pricing structure,
e. Prepare, issue and administer a Request for Proposal (RFP) for the City's natural gas supply
requirements,
f. Issue RFP to a minimum of four natural gas suppliers,
g. Assist with natural gas supplier contract negotiations,
h. Coordinate executable supplier agreements between selected supplier and the City for a
supply term as directed by City,
i. Coordinate switches to a new supplier if necessary,
j. Audit the City's first natural gas supplier invoices,
k. Coordinate kick-off meeting with the City's Accounts Payable Department and natural gas
supplier,
1. Conduct monthly discussions with the City and provide market updates and recommendations
related to "monthly fixed price gas pricing" throughout the contract term if necessary,
in. Conduct discussions with the City related to supplier purchases before and during the supplier
contract term if necessary,
s
i
Y
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 7 of 9
Fneruv Management and Budgeting Assistance Services- Natural Comas
Scone of Service
Acclaim shall perform the following services on behalf and as requested by the City of Fort
Worth and will be performed consistent with prevailing market practices for such services and
will be conducted consistent with reasonable customary industry codes of conduct:
1. Proposing strategies for natural gas energy price management, review further gas
market conditions for City future procurements, and conduct monthly meetings
regarding natural gas market current events and historic trends;
2. Provide monthly evaluations of market conditions and provide consultative services
regarding monthly gas decisions with supplier and provide input towards possible
nomination and fixed price purchases from City's supplier before and during the term
of the supply contract;
3. Issue instructions to supplier to nominate natural gas quantities for a specific period or
periods as directed and approved by city; and
Provide monthly audit of invoice for accuracy, monitoring of market for future
procurement opportunities, and monitor Local Distribution Company (LDC) costs
or changes.
Biosolids Facilitv: Electricitv SuDDIv & Sales Tax Recovery
Acclaim will perform its duties consistent with prevailing market practices for such services and
consistent with reasonable and customary industry codes of conduct. Evaluate the Synagro's facility
historical energy consumption and energy expenditures
1. Analyze Synagro Constellation contract
2. Analyze market conditions, current and historical.
3. Communicate with Constellation regarding early termination fee if any.
4. Coordinate transfer of accounts to CFW's current Reliant contract.
5. Prepare savings estimates that occur due to tax savings as well as commodity cost savings that
occur annually and over the term of the contract.
6. Recovery of sales tax that have been expended by Synagro. Where applicable, sales tax
recovery shall include historical tax expenditures for Atmos natural gas and Constellation
electricity and Oncor delivery charges.
/i
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page Vf 9
3"d Amended
EXHIBIT B
PRICE SCHEDULE
Initial Procurement Services $22,500.00
Ongoing Services up to $27,500
Natural Gas Procurement Services up to $20,000.00
Enerav Management and Budgetinu Assistance Services -. City acknowledges that Acclaim will
be paid $1000 per month for those periods which Acclaim provides services under the Energy
Management and Budgeting services stated in 2nd Amended Exhibit A and market guidance on
behalf of City for the duration of the supply contract. Notice of termination by City will constitute
a final payment to Acclaim based on the remainder of the supply term contract utilizing the
following formula: [Remaining contract term months* $1,000 * 15%]
Ongoing Services as indicated above will be a negotiated amount between the City and Acclaim
Energy Advisors
Additional fees for optional services, if needed, will be clearly defined and documented.
Biosolids Facility: Electricity SunD1v & Sales Tax Recoverv- City acknowledges that Acclaim will
be paid an amount based upon shared savings; 15% of savings resulting from energy supply transfer
from Constellation to Reliant and 35% of sales taxes upon reimbursement; for an amount not to exceed
$133,248.00; payable in City fiscal year 2024. All invoices for payable services will include
comprehensive calculations to support payment amount.
Second Amendment to Fort Worth City Secretary Contract No. 53781
Page 9 of 9
M&C Review Page 1 of 2
0
Official site of the City of Fort Worth, Texas
CITY COUNCIL AGEND FORTWORTH
Create New From This M&C
DATE: 6/13/2023 REFERENCE **M&C 23- LOG NAME: 21ACCLAIM ENERGY
NO.: 0475 ADVISORS LTD AMEND 3
CODE: C TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: (CD 5) Authorize Execution of Amendment No. 3 to City Secretary Contract No. 53781
with Acclaim Energy Advisors, LTD. for Additional Energy Consulting and Management
Services for an Amount Not to Exceed $133,248.00; for a Revised Contract Amount Not
to Exceed $231,248.00
RECOMMENDATION:
It is recommended that the City Council authorize Amendment No. 3 to City Secretary Contract No.
53781 with Acclaim Energy Advisors, LTD. to increase the total compensation in an amount not to
exceed $133,248.00 for a revised contract amount not to exceed $231,248.00, to provide additional
Energy Consulting and Management Services to evaluate and terminate the Village Creek Water
Reclamation Facility Biosolids Drum Drying Facility existing electricity contract with Constellation
Energy, transfer electricity accounts to the City of Fort Worth's Retail Electric Provider Contract, and
perform sales tax recovery for both electricity and natural gas accounts for the Village Creek Water
Reclamation Facility Biosolids Drum Drying Facility.
DISCUSSION:
The City of Fort Worth entered into a services contract with Acclaim Energy Advisors, LTD., City
Secretary Contract No. 53781, to provide Energy Consulting and Management Services on April 6,
2020.
On May 24, 2021, the City and Acclaim agreed to Amendment No. 1 to specifically provide natural gas
procurement services.
On November 10, 2021, the City and Acclaim agreed to Amendment No. 2 to provide energy
management and budgeting assistant services related to the City's natural gas supply contract and to
increase contract compensation by $48,000.00; for a new contract amount not to exceed $98,000.00.
The City and Acclaim have negotiated a contract amendment to provide additional services
specifically for the Village Creek Water Reclamation Facility Biosolids Drum Drying Facility to evaluate
and terminate its electricity contract with Constellation Energy; transfer energy accounts to the City's
retail electricity contract, and perform sales tax recovery services for both electricity and natural gas
accounts for the Village Creek Water Reclamation Facility Biosolids Drum Drying Facility.
The amendment seeks to increase the total compensation in an amount not to exceed $133,248.00
and will be invoiced by Acclaim based on shared savings gained from power transfer and sales tax
recovery. The negotiated shared savings payable to Acclaim is 15\% of savings resulting from energy
supply transfer and 35\% of sales taxes upon reimbursement; for an amount not to exceed
$133,248.00; payable in City fiscal year 2024.
All invoices for payable services will include comprehensive calculations to support payment amount
not to exceed $133,248.00.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendation and adoption of
the Fiscal Year 2024 Budget by the City Council, funds will be available in the Fiscal Year
http://apps.cfwnet.org/council_packet/mc review.asp?ID=31103&councildate=6/13/2023 6/20/2023
M&C Review
Page 2 of 2
2024 operating budget, as appropriated, in the Water & Sewer Fund. Prior to an expenditure being
incurred, the Water and Property Management Departments have the responsibility to validate the
availability of funds.
TO
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
FROM
Fund Department Account Project Program Activity Budget Reference # Amount
ID ID Year (Chartfield 2)
Submitted for Citv Manager's Office bv: Dana Burghdoff (8018)
Oriainatina Department Head: Steve Cooke (5134)
Additional Information Contact: Juanita Rigsby (8518)
ATTACHMENTS
Form 1295 Certificate 101051281.odf (CFW Internal)
VCWRF BIOSOLIDS FID TABLE 5.18.2023.xlsx (CFW Internal)
http://apps.cfwnet.org/council_packet/mc review.asp?ID=31103&councildate=6/13/2023 6/20/2023