HomeMy WebLinkAboutReso 92-167 - Approve & Authorize CM to sign prof serv agrment between COR & Henwood Energy Services Inc (Hesi C# 920330) to provide Tech support to City Staff in prep an app to CEC for a SPPE for City's proposed Peaking Plant r
RESOLUTION NO. q� 'IG
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING AND AUTHORIZING THE CITY MANAGER TO SIGN THE
PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF
REDDING AND HENWOOD ENERGY SERVICES, INC. (HESI CONTRACT
NO. 920330) TO PROVIDE TECHNICAL SUPPORT TO CITY STAFF
AND OTHER CONSULTANTS IN PREPARING AN APPLICATION TO THE
CALIFORNIA ENERGY COMMISSION (CEC) FOR A SMALL POWER
PLANT EXEMPTION (SPPE) FOR THE CITY'S PROPOSED PEAKING
PLANT, IN AN AMOUNT NOT TO EXCEED $45,000.
WHEREAS, in March of 1992 the City signed a contract with
MLP Energy [the Industrial Power Technology Project] for the turn-
key installation of three gas-fired combustion turbine generators;
and
WHEREAS, said contract specifies that IPT is responsible for
securing all necessary permits for the MLP Combustion Turbine Power
Project (Project) , including those required by the California
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Energy Commission (CEC) ; and
WHEREAS, in addition, the contract specifies that the City of
Redding will assist IPT in securing the permits by providing the
idata necessary to demonstrate the City' s physical need and
cost/benefit justification for the Project; and
WHEREAS, finally, the contract provides that MLP Energy can be
penalized monetarily for failure to secure the necessary permits
and to make the plant operational by August 1994; that fact
notwithstanding, the cost to the City of Redding Electric Utility
ratepayers for each month the Project is delayed is several hundred
thousand dollars; and
WHEREAS, it is unlikely that Electric Department staff will be
able to meet all of the CEC data needs in a timely manner without
a consultant' s technical support, particularly with respect to
production cost modelling; ander
WHEREAS, due to the necessity to be able to respond to IPT/CEC .?
data requests within the next few weeks, Electric Department staff
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has negotiated a time-and-materials contract with Henwood Energy
{ Services, Inc. (HEST) to perform the anticipated technical
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analysis, not to exceed $45 ,000; and
WHEREAS, staff believes that HESI ' s long association with the
City and its in-depth knowledge of the City' s Electric Department
will allow HESI to complete the analysis most efficiently and at
the lowest possible cost to the City; and
WHEREAS HESI ' s recent successful completion of the Engineer' s
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Financial Certification for the joint financing of the Redding
Power/MLP Projects makes this firm uniquely qualified; and
WHEREAS, funds for said services will be charged to Job Order
No. 9703-03 and will be appropriated from the Electric Utility' s
179 Fund; and
WHEREAS, presented herewith for Council' s consideration is the
proposed Professional Services Agreement between the City and
Henwood Energy Services, Inc. ;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of
the City of Redding as follows:
1. The foregoing recitals are true and correct.
2. Council believes entering into a Professional Services
Agreement with Henwood Energy Services, Inc. for the services
outlined above will benefit City Electric Utility customers.
3. Council hereby waives its Policy No. 1501 pertaining to
the selection of technical consultants inasmuch as ( 1) time is
critical; ( 2) Henwood Energy Services, Inc. has developed a
significant knowledge-base relative to Redding' s future power needs
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j and contractual infrastructure; and ( 3 ) Henwood Energy Services,
Inc. can provide Redding with immediate professional services in
providing the necessary technical assistance during the CEC permit
process for the MLP Turbine Power Project.
4. City Council hereby approves the Professional Services
Agreement between the City of Redding and Henwood Energy Services,
Inc. (HESI Contract No. 920330) , a true copy of which is attached
i hereto and incorporated herein by reference, in an amount not to
exceed $45,000.
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5. The City Manager of the City of Redding is hereby
authorized and directed to sign said Agreement on behalf of the
City of Redding; and the City Clerk is hereby authorized and
directed to attest the signature of the City Manager and to impress
the official seal of the City of Redding thereto.
I HEREBY CERTIFY that the foregoing Resolution was introduced
and read at a regular meeting of the City Council of the City of
Redding on the 21st day of April 1992, and was duly adopted at
said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Arness, Dahl, Kehoe & Moss
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
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Mayor - Charlie Moss
City of Redding
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ATT2ST:
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CONNIE STROHMAYER, Mity Clerk
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FOR PPROVED:
RAN ALL A. HAYS, ,.ity Attorney
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HESI Contract No. 920330
PROFESSIONAL SERVICES AGREEMENT
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THIS AGREEMENT is made this 13th day of April 1992, between HENWOOD
;i ENERGY SERVICES, INC., a California corporation, (hereinafter referred to as "Con-
sultant") and the CITY OF REDDING , California, (hereinafter referred to as "Client").
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Article 1 Services to be Performed by Consultant
Section 1.01. Consultant agrees to perform the services described in Exhibit A,
1 subject to the dollar limit stated in the said Exhibit A.
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Section 1.02. Consistent with industry practice and in conjunction with Client and
,i Client's other contractors (if any), Consultant will determine the method, details and
means of performing the above-described services.
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Section 1.03. Consultant shall not discuss the subject matter of this Agreement with
{ any party without prior approval of Client.
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Article 2. Term of Agreement
Section 2.01. This Agreement shall become effective when executed and shall
remain in effect until terminated as provided herein. This Agreement may be terminated
by either party on sixty (60) days written notice. In the event that Client terminates this
Contract, Consultant agrees to use reasonable efforts to mitigate its expenses and obliga-
tions hereunder. Client shall pay for all services satisfactorily performed by Consultant.
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Section 2.02. Should Client fail to pay Consultant all or any part of the compensa-
tion set forth in Article 3 of this Agreement on the date due, Consultant, at Consultant's
option, may terminate this Agreement if the failure to pay is not remedied by Client within
ten (10) days from the date notice is given to Client that payment is past due.
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April 13, 1992
HESI Contract No. 920330
Article 3. Compensation
Section 3.01. In consideration for the services to be performed by Consultant, but
subject to the dollar limit provided in Exhibit A, Client shall pay Consultant for its labor
hours pursuant to the rate schedule which is attached as Exhibit B, or its successor which
shall applicable after calendar year 1992. The rates in Exhibit B include normal overhead
costs.
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'! Section 3.02. Subject to the dollar limit provided in Exhibit A, Client shall also pay,
pursuant to Exhibit B or its successor, any and all reasonable and necessary expenses in-
curred by Consultant on behalf of Client in connection with the services described in Exhib-
', it A of this Agreement. Such expenses include, but are not limited to, travel, telephone,
reproduction, licensing fees, and rental of specialized equipment.
Section 3.03. Consultant shall submit to Client monthly a statement of services
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rendered as soon as practical after the end of the month. Client agrees to pay the amount
due to Consultant for services within thirty (30) days of invoice. Past due balances shall be
charged interest at the rate of 1.5% per month.
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Article 4. Obligations of Consultant
Section 4.01. Consultant shall perform work according to the requirements of Arti-
cle 1 in a professional manner and with due diligence. All services performed under this
Agreement are the property of the Client and will be held in strict confidence.
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Section 4.02. Consultant agrees to provide workers compensation insurance for its
employees and agents and agrees to hold harmless and indemnify Client for any and all
claims arising out of any injury, disability, or death of any of Consultant's employees or
agents.
'I Section 4.03. Consultant will not be liable to Client, or to anyone who may claim
'i any right due to a relationship with Client, for any acts or omissions in the performance of
services under the terms of this Agreement or on the part of the employees or agents of
Consultant unless such acts or omissions are due to negligence. Client will indemnify and
hold Consultant free and harmless from any obligations, costs, claims,judgments, attorneys'
fees, and attachments arising from, growing out of, or in any way connected with the serv-
ices rendered to Client under the terms of this Agreement, except to the extent Consultant
is found by a court of competent jurisdiction to be liable for its negligence.
Section 4.04. Neither this Agreement nor any duties or obligations under this
Agreement may be assigned by Consultant without the prior written consent of Client.
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April 13, 1992
HESI Contract No. 920330
Article 5. Obligations of Client
Section 5.01. Client agrees to comply with all reasonable requests of Consultant
and provide access to all documents reasonably necessary to the performance of Consult-
ant's duties under this Agreement.
Section 5.02. Neither this Agreement nor any duties or obligations under this
Agreement may be assigned by Client without the prior written consent of Consultant.
Article 6. General Provisions
Section 6.01. All notices, requests, demands and other communications under this
j Agreement shall be in writing and shall be deemed to have been duly given on the date of
service only:
(a) When served personally on the party to whom notice is being given; or
(b) Within seventy-two (72) hours after mailing, when mailed to the party to whom
notice is to be given by registered or certified mail, postage prepaid, and properly ad-
dressed to the party at his or its address set forth below, or at such different address as any
party shall notify to the other parties in the manner provided in this Section.
Section 6.02. This Agreement may be modified at any time only by a written
agreement executed by all of the then parties to this Agreement.
Section 6.03. No failure by any party to insist upon the strict performance of any
covenant, duty, agreement or condition of this Agreement or to exercise any right or
remedy consequent upon a breach thereof shall constitute a waiver of any such breach or
any other covenant, agreement, term or condition. No waiver shall be binding unless
executed in writing by the party making the waiver.
Section 6.04. This Agreement shall be binding upon and inure to the benefit of the
parties, their successors, assigns, personal representatives, heirs and legal representatives.
Section 6.05. Any claim or controversy arising out of, or relating to, any provision of
this Agreement, or the breach thereof, shall, upon written demand of any party, be settled
by arbitration in accordance with the Commercial Arbitration Rules then in effect with the
American Arbitration Association, to the extent consistent with the laws of the State of
California, and judgment upon the award rendered by the arbiter(s) may be entered in any
court having jurisdiction thereof. Arbitration shall be held in the County of Sacramento,
California.
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April 13, 1992
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HESI Contract No. 920330
Section 6.06. Should any arbitration or litigation be commenced between any of
the parties hereto, or their personal representatives, concerning any provision of this
Agreement or the rights and duties of any person relative thereto, the prevailing party shall
be entitled to recover, as an element of hiS costs of suit and not as damages, reasonable
II) attorneys' fees to be fixed by the arbiter(s) or the court, as the case may be. The "prevailing
1 party" shall be the party who is entitled to recover his costs of suit, whether or not the suit
proceeds to final judgment. A party not entitled to recover his costs shall not recover
attorneys' fees. No sum for attorneys' fees shall be counted in calculating the amount of a
judgment for purposes of determining whether a party is entitled to recover his costs or
attorneys' fees.
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Section 6.07. This Agreement has been finally executed and delivered in the State
of California and all matters affecting its validity and construction shall be determined
according to the laws of that State. Further, the place of performance and transaction of
! business shall be in Sacramento County, State of California and in the event of litigation or
arbitration, the exclusive venue and place of jurisdiction shall be in Sacramento County,
State of California.
'I Section 6.08. This Agreement, and any Exhibits referred to in the Agreement,
constitute the entire agreement between the parties pertaining to the subject matter con-
tained in it and supersedes all prior and contemporaneous agreements, representations and
understandings of the parties.
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IN WITNESS WHEREOF, the undersigned have executed this Agreement on
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the date and year set forth above.
CONSULTANT: CLIENT:
HENWOOD ENERGY SERVICES, INC. CITY OF REDDING
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BY: BY:
Ii NAME: Mark Henwood NAME:
TITLE: President TITLE:
ADDRESS: 2555 3rd St. Suite 110 ADDRESS: Electric Department
Sacramento, CA 95818 760 Parkview Avenue
Redding, CA 96001
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PHONE: (916) 447-3497 PHONE: (916) 2244351
FAX: (916) 447-9890 FAX: (916) 224-4389
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April 13, 1992
HESI Contract No. 920330
EXHIBIT A
SCOPE OF WORK
1 General
'I Consultant will provide support to Client's staff and other consultants in preparing
I an application to the California Energy Commission (CEC) for a Small Power Plant
it Exemption (SPPE) for Client's proposed peaking plant.
Consultant anticipates that this work will require the use of Client's Electricity
Report 90 resource plan. This will require updating and resimulating the 1990 plan to
include certain changes in supply resources at the direction of the Client's SPPE manager.
To provide the support required for the CEC siting process, at the request and direction of
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the Client, Consultant will do or provide the following:
2. Support the Preparation of the Need Portion of the SPPE
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I2.1. Analysis and Preparation. Following steps are anticipated in this task:
Assist in specifying the requirements of the Need Section of the SPPE application in
conjunction with the Client and, at the direction of the Client, with others.
- Perform analyses required by ER90. In particular, Consultant will prepare the
Physical Criterion and the Balanced Economic, Environmental, and Operational
Attributes analyses as set forth in ER90 and will utilize the assumptions contained
in the Client's ER90 showing except where updating is required.
Develop other analyses required for the SPPE application.
- As directed by Client, write the need section in a format compatible with that used
by the primary SPPE preparer.
2.2 CEC Data Requests/Interaction. Substantial interaction with the CEC is anticipat-
ed as part of the need showing. The exact form of this interaction will be deter-
mined in conjunction with Client. The basic steps involved in this interaction may
consist of:
j - Attend data adequacy workshops.
Respond to CEC data requests.
Discuss the need analysis with CEC staff.
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HESI Contract No. 920330
2.3 Participate in Stipulation/Hearings. Depending on the outcome of the CEC staff's
review of the need portion of the application, either a stipulation will be reached or
hearings will be convened. The anticipated work associated with these outcomes is:
Assistance in developing a stipulation with CEC staff;
or
- Prepare for and participate in any hearings scheduled by the CEC.
3 Project Manager
Consultant will assign a Project Manager for this project. The Project Manager
shall be the primary contact and representative on these tasks.
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4 Contract Limit
Consultant will perform the tasks listed in part 2 above of this Exhibit A on a time
and materials basis, subject to a not-to-exceed limit of forty five thousand dollars
($45,000.00) without prior authorization. Consultant estimates that this amount should
provide for, but does not guarantee, the services described through the completion of the
CEC's SPPE process.
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April 13, 1992
HESI Contract No. 920330
EXHIBIT B
HENWOOD ENERGY SERVICES, INC.
FEE SCHEDULE
Effective Calendar Year 1992
2. Professional Services
The fees for the professional services, including normal overhead costsl, are:
Principal Consultants
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I 2.1 Mr. Mark Henwood, RMO
President.............................................................................................$135 per hour
2.2 Mr. David Branchcomb
Vice President ...............$120 per hour
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2.3 Dr. Lon House
Engineering Economics...................................................................$110 per hour
2.4 Mr. David Magaw, Esq.
Utility Power Contracting................................................................$110 per hour
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Senior Consultants
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2.5 Mr. Thomas Johnson, P.E.
CivilEngineer....................................................................................$ 85 per hour
2.6 Mr. Kevin Woodruff MBA
Economics..........................................................................................$ 80 per hour
Staff Consultants
2.7 Mr. Douglas Joy
Software/Analytical Engineer........................................................$ 77.50 per hour
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1. These costs include basic secretarial support,job administration, rents,and other corporate overhead
costs.
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April 13, 1992
• HESI Contract No. 920330 •
2.8 Mr. Donald Moss
Civil Engineer....................................................................................$ 62.50 per hour
Assistant Consultants
2.9 Mr. Jason Gu
Mechanical Engineer .......................................................................$ 50 per hour
2.10 Mr. Denis Ruttenberg
Civil Engineer....................................................................................$ 50 per hour
Administrative/Research
2.11 Ms. Carol Killelea
Administrative Assistant................................................ $ 40 per hour
2.12 Ms. Maureen Anderson
Administrative Assistant................... $ 40 per hour
Other Staff Members
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2.13 Other Staff..........................................................................................HESI Standard
Ratesl
2. Support Service Charges
In addition to payment for professional services, all reasonable and necessary expenses
incurred in connection with the performance of professional services will be billed at cost
plus 10%. Such expenses included, but are not limited to outside reproduction costs, art-
work, airline travel, meals, lodging, postage, freight, telephone, and travel related expenses.
Facsimile charges are $2 per outgoing page, no charge for receiving. Internal copying is
charge at $0.10 per page. Mileage is charged at the maximum rate permitted by the Inter-
nal Revenue Service.
3. Materials, Equipment, Subcontractors
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Charges for the purchase of job parts and materials, specialized equipment rental or
purchase, and tool rental or replacement purchase shall be charged at cost plus 15%.
1. Rates are based on salary and standard multipliers.
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April 13, 1992
HESI Contract No. 920330
Expenditures for hiring of sub-consultants or subcontractors shall be charged at cost plus
15%.
To the extent California sales, use, or district taxes apply, such taxes shall be charged.
4. Fee Schedule Revision
This schedule is effective commencing January 1, 1992, and may be superseded by a revised
schedule January 1, 1993 or later.
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April 13, 1992