HomeMy WebLinkAboutContract 53781-A1CSC N o. 53781-A1
FIRST AMENDMENT TO
FORT WORTH CITY SECRETARY CONTRACT NO. 53781
BETWEEN CITY OF FORT WORTH AND
ACCLAIM ENERGY ADVISORS, LTD.
This First Amendment to Fort Worth City Secretary Contract No. 53781 ("First
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 "party" 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 Apri16, 2020 (the "Agreement"); and
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; and
WHEREAS, the Vendor provides various management and consulting services to the City
concerning utility matters; and
WHEREAS, it is the collective desire of both City and Vendor to amend the Agreement
to allow the Vendor to specifically provide natural gas procurement services.
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 amend the
Agreement as follows:
1. The Agreement is hereby amended by replacing Exhibit A of the Agreement with
the amended Exhibit A attached to this First Amendment.
2. The Agreement is hereby amended by replacing Exhibit B of the Agreement with
the amended Exhibit B attached to this First Amendment.
3. 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]
OFFICIAL RECORD
CITY SECRETARY
FT. W�RTH, TX
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 1 of 7
Executed effective as of the date signed by the Assistant City Manager below.
FORT WORTH:
City of Fort Worth
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B�7; DanaBurghdoff(May24,202 17:55CDT)
Name: Dana Burghdoff
Title: Assistant City Manager
Date: M a�/ 24, 2021
Approval Recommended:
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B�7; Stev�May 24, 2021 1326 CDT)
Name: Steve Cooke
Title: Director, Property Management
Attest:
By: �� ��� i��
Name: Mary Kayser
Title: City Secretary
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VENDOR:
Contract Compliance Manager:
By signing I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all performance
and reporting requirements.
A%rn lf SG�UrOr
BV: AIanH.Shuror(May24,20211232CDT)
.7
Name: Alan Shuror
Title: Assistant Director, Property Management
Approved as to Form and Legality:
Li�LG�Ld' �(�L2,�li
B ChristophcrAusTr (May24,202114:1OCDT)
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Name: Christopher Austria
Title: Assistant City Attorney
Contract Authorization:
M&C: No M&C Required
1295: N/A
Acclaim Energy Advisors, Ltd.
John Elder, Chief Executive Officer
1855 Saint James Place, Suite 1220
Houston, Texas 77056
Office: (713) 524-0250
JElder@acclaimEnergy.com
�u�u� 15. EC�%� ///
B�7; JohnD.Elderlll(May24,202111:01MDT)
Name: John Elder
Title: Chief Executive Officer
Date: M ay 24, 2021
OFFICIAL RECORD
CITY SECRETARY
FT. W�RTH, TX
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 2 of 7
Amended
EXHIBIT A
SCOPE OF SERVICES
Initial Procurement Services
1. 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. P r o v i d i n g 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. H e at Rate
b. Nodal/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 ar future energy contracts.
10. Review electricity load profile to make recommendations for facilities and meters that
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.
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 3 of 7
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
Recarder (IDR) metered accounts. Successful
timing of reductions establishes a beneficial
tariff billing determinant for the entire year far
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
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 4 of 7
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 poar power factor. Utility tariffs
penalize for poar power factor leading to a
higher cost per kWh far 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.
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 5 of 7
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 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.
Billing Disputes 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.
Natural Gas Procurement Services
Scope of Services
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,
£ 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 Ciry 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 ineeting 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,
m. Conduct discussions with the Ciry related to supplier purchases before and during the supplier
contract term if necessary,
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 6 of 7
Amended
EXHIBIT B
PRICE SCHEDULE
Initial Procurement Services $22,500.00
Ongoing Services up to $27,500
Natural Gas Procurement Services to up $20,000.00
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.
First Amendment to Fort Worth City Secretary Contract No. 53781 Page 7 of 7