HomeMy WebLinkAboutContract 53781-A2 CSC No. 53781-A2
SECOND AMENDMENT TO
FORT WORTH CITY SECRETARY CONTRACT NO. 53781
BETWEEN CITY OF FORT WORTH AND
ACCLAIM ENERGY ADVISORS,LTD.
This Second 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 "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 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,the Parties now wish to further amend the Agreement to allow the Vendor to
provide energy management and budgeting assistant services related to the City's natural gas
supply contract; and
WHEREAS, the total compensation of the Agreement will increase by $48,000 for a new
total annual amount not to exceed $98,000.00 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 amend the
Agreement as follows:
1. Paragraph 3.1 of the Agreement titled Price Schedule shall be deleted and
replaced 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 Ninety-Eight Thousand
Dollars ($98,000.00). 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.
OFFICIAL RECORD
CITY SECRETARY
Second Amendment to Fort Worth City Secretary Contract No. 53781
FT. WORTH, TX
2. The Agreement is hereby amended by replacing Amended Exhibit A of the
Agreement with the 2nd Amended Exhibit A attached to this Second Amendment.
3. The Agreement is hereby amended by replacing Amended Exhibit B of the
Agreement with the 2nd Amended Exhibit B attached to this Second Amendment
4. The Agreement is hereby amended by adding Exhibit D— Sole Source Exemption
Form attached to this Second Amendment to the Agreement.
5. 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 Page 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 this contract,including ensuring all performance
By: Dana Burghdoff(Nov 10,20 19:47 CST6,61 and reporting requirements.
Name: Dana Burghdoff
Title: Assistant City Manager
Nov 10 2021 41-aN f. -cf UROR
Date: By: ALAN H.SHUROR(Nov 10,2021 09:39 CST)
Name: Alan Shuror
Approval Recommended: Title: Assistant Director, Property Management
Q Approved as to Form and Legality:
BY: Stev�0,2021 09:56 CST)
Name: Steve Cooke
Title: Director,Property Management By:
4d4va���� Name: Christopher Austria
Attest: �� °...... ad Title: Assistant City Attorney
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0.vg S=0 Contract Authorization:
P0, o o*�d M&C: No M&C Required
By: d� °°°°°°°°°° 1295: N/A
Name: Ronald P. Gonzales
Title: Acting City Secretary
VENDOR:
Acclaim Energy Advisors,Ltd.
John Elder,Chief Executive Officer
1855 Saint James Place, Suite 1220
Houston,Texas 77056
Office: (713) 524-0250
JElder(cacclaimEnergy.com
519
By: Joh drr(Nov 9,202118:27 CST)
Name: John Elder
Title: Chief Executive Officer
Date: Nov 9, 2021
OFFICIAL RECORD
CITY SECRETARY
FT. WORTH, TX
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 3 of 9
2'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. Nodal/Locational Marginal Pricing
c. Day-Ahead Market
d. Real-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.
IO.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.
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 4 of 9
I I.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.
On2oin2 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 5 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:Heepm.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 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,
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,
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 7 of 9
Ener2y Management and Budgeting Assistance Services-Natural Gas
Scope of Services
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
4. Provide monthly audit of invoice for accuracy,monitoring of market for future procurement
opportunities, and monitor Local Distribution Company(LDC)costs or changes.
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 8 of 9
2'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
Energy Management and Budgeting 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.
Second Amendment to Fort Worth City Secretary Contract No. 53781 Page 9 of 9
EXHIBIT D
FORT WORTH
CITY OF FORT WORTH
CHAPTER 252 EXEMPTION FORM
Instructions: Fill out the entire form with detailed information. Once you have completed this form,
provide it to the Purchasing attorney for review. The attorney will review the information you have
provided to determine whether an exemption to Chapter 252's biding requirements is defensible.
If you are printing this form to provide to Legal,please do not provide the Primer portion. Failure
to provide sufficient information may result in follow up questions and cause a delay in the
attorney's determination.
Section 1: General Information
Requesting Department: PROPERTY MANAGEMENT
Name of Contract Manager: ALAN SHUROR
Department's Attorney: CHRISTOPHER AUSTRIA
Item or Service sought:
Goods: ❑
Service: f
Anticipated Amount: $98,000.00
Vendor: ACCLAIM ENERGY, LTD.
Current/Prior Agreement for item/service: Yes ® No ❑
CSC or Purchase Order 9: CSC NO. 53781
Amount: $50,000.00
Projected M&C Date: NO M&C REQUIRED
How will this item or service be used? City intends to use the management and consulting
services provided by Acclaim Energy, LTD to provide management and consulting services
related to various energy matters, including, but not limited to, electricity and natural gas related
matters.
SERVICES
Acclaim has been performing energy consulting and management services for the city. since
April 2020. Such services include, but are not limited to, assisting the city procure electricity
contracts, procure a natural gas supply contract, provide guidance with energy demand response
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matters, provide guidance on demand side management initiatives, and provide a detailed
analysis on the City's regulated utilities. The department wishes to amend the current agreement
with Acclaim and expand the energy consulting and management services to include natural gas
and budgeting assistance for competitive natural gas markets. Acclaim will perform the
following duties consistent with prevailing market practices for such services and consistent with
reasonable and customary industry codes of conduct:
• Propose strategies for natural gas energy price management, review future gas market
conditions for city future procurements, and conduct monthly meetings regarding natural gas
market current events and historic trends.
• Perform 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 Ci . 's supplier before and during the term of the supply contract.
• Issue instructions to supplier to nominate natural gas quantities for a specific period or
periods as directed and approved by Cilv.
• Invoice accuracy, monitor market for future procurement opportunity,track LDC costs.
Has your department started a requisition or otherwise contacted the Purchasing Division related
to obtaining this good/service? Yes ❑ No FI
If yes,please provide requisition number or brief explanation of contact with
Purchasing Division: N/A
Section 2: Claimed Exemption and Justification (Other than sole source)
NOTE - For a claimed sole-source exemption, complete Section 3.
Please indicate the non-sole-source exemption you believe applies to the purchase and provide
information to support its applicability. Please refer to the Exemption Primer for detailed
information about common exemptions:
n A procurement necessary to preserve or protect the public health or safety of the City
of Fort Worth's residents;
n A procurement necessary because of unforeseen damage to public machinery,
equipment, or other property;
M A procurement for personal,professional, or planning services;
n A procurement for work that is performed and paid for by the day as the work
progresses;
❑A purchase of land or a right-of-way;
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n Paving drainage, street widening, and other public improvements, or related matters, if
at least one-third of the cost is to be paid by or through special assessments levied on
property that will benefit from the improvements;
n A public improvement project, already in progress, authorized by the voters of the
municipality, for which there is a deficiency of funds for completing the project in
accordance with the plans and purposes authorized by the voters;
n A payment under a contract by which a developer participates in the construction of a
public improvement as provided by Subchapter C, Chapter 212;
n Personal property sold:
• at an auction by a state licensed auctioneer;
• at a going out of business sale held in compliance with Subchapter F,
Chapter 17, Business & Commerce Code;
• by a political subdivision of this state, a state agency of this state, or an
entity of the federal government; or
• under an interlocal contract for cooperative purchasing administered by a
regional planning commission established under Chapter 391;
n Services performed by blind or severely disabled persons;
n Goods purchased by a municipality for subsequent retail sale by the municipality;
n Electricity; or
n Advertising, other than legal notices.
Please provide details and facts to explain why you believe the exemption applies to the
purchase. You may also attach documentation to this form.The management and consultation
services provided by Acclaim Energy, Ltd. falls under the professional services exemption.
Acclaim has over 15 years energy expertise in the natural gas market which allowed them to
assist the City with securing uninterrupted electric energy supply contract that ensured low-cost
& low-risk service with long-term budget certainty. Acclaim's insightful and expert knowledge
in the natural gas market is relevant to the mental and intellectual skill required as they provide a
services in natural gas energy procurement and pricing management. In managing the City's
electricity contracts and natural gas supply contract, the City seeks the expertise that Acclaim
offers.
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Section 3: Claimed Sole-Source Exemption and Justification
NOTE - For any non-sole-source exemption, complete Section 2.
Please indicate the sole-source exemption you believe applies to the purchase and provide
information to support its applicability. Please refer to the Exemption Primer for detailed
information about common exemptions
n *A procurement of items that are available from only one source, including:
• items that are available from only one source because of patents,copyrights,
secret processes, or natural monopolies;
• films,manuscripts, or books;
• gas, water, and other utility services;
• captive replacement parts or components for equipment;
• books, papers, and other library materials for a public library that are
available only from the persons holding exclusive distribution rights to the
materials; and
• management services provided by a nonprofit organization to a municipal
museum,park, zoo, or other facility to which the organization has provided
significant financial or other benefits;
How did you determine that the item or service is only available from one source?
[EXPLAIN HOW YOU DETERMINED EXCEPTION APPLIES (RESEARCH,
COMMUNICATIONS, DOCUMENTATION)]
Attach screenshots and provide an explanation of any independent research you conducted,
through internet searches, searching cooperatives, or discussions with others knowledgeable on
the subject matter that corroborate that the item is available only from a single source.
[SHOW YOUR RESEARCH/WORK THAT LEAD TO YOUR CONCLUSION]
Did you attach a sole source justification letter? ❑ Yes ❑ No
Describe the uniqueness of the item or service (e.g. compatibility or patent issues, etc.).
[DESCRIBE THE UNIQUNESS OF THE ITEM/SERVICE THAT QUALIFIES IT AS A SOLE
SOURCE
Section 4: Attorney Determination
With the facts provided by the department, is the use of the claimed exemption defensible if the
City were to be challenged on this purchase? [;I Yes ❑No.
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Was there anything attached to this form that was relied on in malting this determination?
n Yes No.
If yes, please explain:[DESCRIBE ATTACHMENTS CONSIDERED]
Was there anything not included on this form or attached hereto that was relied on in making this
determination? n Yes M No.
If yes,please explain:[EXPLAIN OUTSIDE SOURCE OF INFORMATION]
Will the standard terms and conditions apply? M Yes n No.
Will the contract require special terms? n Yes M No.
Will the contract require review by the department attorney? M Yes n No.
Approved By:
Date: 11.2.21
T or Paris /Jessika Williams
Assistant City Attorney
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EXEMPTION FORM PRIMER
Below are explanations and examples of common exemptions that could apply to City purchases.
If you have questions about the information provided or need additional information, please
contact your department's assigned attorney or the appropriate purchasing attorney.
1. A procurement necessary to preserve or protect the public health or safety of the
municipality's residents;
Examples of activities that have been found to fall within this exception include ambulance
services; solid waste collection and disposal; and first-responder safety equipment such as
breathing apparatus for firefighters and bullet-proof vests for police officers.
2. A procurement necessary because of unforeseen damage to public machinery, equipment,
or other property;
Examples of this type of procurement would include repairing or replacing roofs and
windows damaged by hail or a tornado. But parts and services for routine maintenance or
replacement of old, worn out roofs or windows would not meet this exception.
3. A procurement for personal,professional, or planning services;
Personal services are ones that are unique to the individual providing them. Therefore
personal services contract cannot generally be subcontracted or assigned.
Professional services are not defined under Chapter 252, so there is no precise definition
to follow. There is no universal definition of this term, however, "several cases suggest
that it... is `predominately mental or intellectual, rather than physical or manual."' Tex.
Atty Gen Op. JM-940 (1988) (quoting Maryland Casualty Co. v. Cray Water Co., 160
S.W. 2d 102 (Tex. Civ. App.—Eastland 1942, no writ). The Texas Attorney General has
also opined that "professional services" no longer includes only the services of lawyers,
physicians, or theologians, but also those members of disciplines requiring special
knowledge or attainment and a high order of learning, skill, and intelligence. Id.
Facts needed to support a professional service exemption include the specialized
requirements of that profession and the mental and intellectual skill required by the person
while performing the service. Purchases of goods are not professional services.
4. A procurement of items that are available from only one source.
This exemption is commonly referred to as the sole source exemption. In determining
whether a purchase is of a good or service that is available from one source, you should
not consider price or time to receive the good or service.A sole source does not exist solely
on the basis of personal or departmental preference or a desire to keep all units the same
brand or make. The information needed to support this exemption is that no other provider
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can provide the service or category of good except for the vendor you are proposing. Some
examples of sole source purchases include service agreements when only one vendor is
authorized to work on the equipment by the manufacturer and allowing another vendor
would void the warranty; purchase of a good that is copyrighted or trademarked and only
provided by one vendor.
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