Laserfiche WebLink
REQUEST FOR <br />COUNCIL ACTION <br />N1�i�telwkIMr_Wr 141- 11krCrVi <br />DECEMBER 20, 2016 <br />TITLE <br />PAYMENT AUTHORIZATION TO <br />PROCURE AMERICA FOR <br />ELECTRIC UTILITY COST <br />REDUCTION SERVICES <br />{STRATEGIC PLAN NO. 4,31)) <br />CITY MANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on tat Reading <br />❑ Ordinance on 2nd Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Authorize payment of Procure America Invoice #6-1603b in the amount of $15,078.99 as <br />compensation for generating electrical utility cost savings under Agreement A-2014-227. <br />DISCUSSION <br />On September 16, 2014, Council authorized staff to execute an agreement with Procure America <br />for utility cost reduction services. The three-year agreement called for an operational review of <br />the City's gas and electric utility costs to include analyzing invoices, supplier contracts, and other <br />pertinent data to identify potential cost saving opportunities. Procure America compensation <br />would have two payment schedules: Schedule 1 would consist of Initial Payments calculated as <br />1% of the City's Gross Annual Spend on gas and electric utility bills; Schedule 2 would consist of <br />Subsequent Payments calculated as a 40% share of gas and electric utility bill savings identified <br />by Procure America during the three-year period of the agreement. <br />Absent information from the pending operational review at the time, staff estimated and set the <br />contract cost at a not to exceed (NTE) amount of $50,000. At this juncture, Procure America has <br />completed the operational review and selected 43 out of more than 1,200 City electric service <br />accounts for rate adjustments to generate electric bill savings. No cost-saving opportunities for <br />gas service accounts were identified. Based on the Finance Department Fiscal Year 2013-14 <br />Utilities Expenditure Report, Procure America is owed Schedule 1 Initial Payments in the amount <br />of $71,610.56, which represents 1% of the City's $7,161,056 gross annual spend on gas and <br />electric bills. <br />Procure America has submitted three invoices for payment to date. The first payment was <br />approved by Council on April 20, 2016, for Invoice #8-1503 in the amount of $49,346.57 <br />exhausting most of the original NTE amount of $50,000. The second payment, which required <br />29A-1 <br />