Items 2-16 Draft RCAs — original pdf

Backup

Item 2 ..Title P osting Language Authorize execution of a contract for construction services, for the Kramer Lane Substation project with Capital Excavation Company, in the amount of $12,272,916 plus a $1,227,291 contingency for a total contract amount not to exceed $13,500,207. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) through the achievements of Good Faith Efforts with 5.90% MBE and 1.63% WBE participation]. ..Body Lead Department Financial Services Department. Managing Department Austin Energy. Fiscal Note Funding is available in the Capital Budget of Austin Energy. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) 6100 CLMC989A for these goods and services. The solicitation issued on October 9, 2023, and closed on November 9, 2023. Of the four offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s Financial Services website, Austin Finance Online. Link: Solicitation Documents. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: February 12, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The North MoPac area is experiencing rapid growth with taller, denser developments that have utilized the substation capacity in this service area. The new Kramer Lane Substation will provide the substation capacity necessary to reliably serve new developments, and it will strengthen the distribution system in this part of the service area. This item includes one allowance. The allowance of $10,000 will be used to address traffic control plans. An allowance is an amount that is specified and included in the construction contract or specifications for a certain item(s) of work when details are not determined at the time of bidding. Due to the potential for unknown conditions, a 10% contingency has been included to allow for the expeditious processing of any change orders to cover any unforeseen construction costs associated with the project. The contract allows 150 calendar days for completion of this project. This project is located within zip code 78758 (District 7), which is inside the Austin city limits and Austin Energy’s service territory. Item 3 Posting Language ..Title Authorize negotiation and execution of a contract for an underground feasibility and overhead distribution resilience study with Burns & McDonnel Engineering Company, Inc., in an amount not to exceed $1,725,000. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Purchasing Language: Professional Service. Fiscal Note Funding in the amount of $425,736 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Funding in the amount of $96,457 is available in the Fiscal Year 2023-2024 Building Resilient Infrastructure and Communities Grant. Funding for the remaining contract term is contingent upon available funding in future budgets. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. Additional Backup Information: The contract will provide consulting services for two studies to assess the underground feasibility and overhead resiliency of Austin Energy’s distribution system. The contractor will evaluate the system which consists of approximately 7,000 miles of underground and 5,000 miles of overhead lines. The goal is to identify potential improvements to ensure the continued safe and reliable delivery of power to Austin Energy’s electric customers with a focus on risk management and resiliency. In March 2023, the Austin City Council adopted Resolution 20230323-084 directing Austin Energy to study the feasibility of converting existing overhead distribution lines to underground lines. In addition, the Federal Energy Management Agency awarded Austin Energy a Building Resilient Infrastructure and Communities grant in April of 2023 to study the resilience of Austin Energy’s overhead distribution system. These studies are the result of those two initiatives. Staff vetted a short list of firms for their expertise in this specialized field of study to determine the best value to the City. Item 4 ..Title Posting Language Authorize an amendment to a contract for the 2023 Chilled Water Construction in the Right-of-Way Indefinite Delivery/Indefinite Quantity, with DeNucci Constructors, to increase the amount by $6,250,000 for a revised total contract amount not to exceed $31,250,000. [Note: This contract was awarded in compliance with City Code 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program). Current participation to date is 0% MBE and 0% WBE]. ..Body Lead Department Financial Services Department. Managing Department Austin Energy. Fiscal Note Funding is available in the Capital Budget of Austin Energy. Purchasing Language: Contract Amendment. Prior Council Action: February 23, 2023 – Council approved initial contract, item 16, on an 11-0 vote. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. Additional Backup Information: Austin Energy uses thermal energy storage to shift the electric load demand from peak times (3:00 p.m. to 6:00 p.m.) to off-peak times, helping Austin Energy meet Council’s thermal energy storage goal of 40MW by 2030. Adding chilled water customers connections increases the load to Austin Energy’s District Cooling Plants and thereby decreases the amount of electrical demand during on-peak hours. Austin Energy operates several district cooling plants providing chilled water to customer buildings through a network of underground pipes. Chilled water then passes through a set of heat exchangers located in the building’s mechanical rooms with warm water returned to the plants for re-cooling. The plants serve multiple large buildings within a particular service area including Downtown Austin, the Domain, the Mueller Redevelopment Zone and Austin Community College Highland Campus. Indefinite Delivery/Indefinite Quantity contracts provide for an indefinite quantity of services for a fixed time, usually an initial term with extension options. They are commonly used when precise quantities of supplies or services, above a specified minimum, cannot be determined. Indefinite Delivery/Indefinite Quantity contracts help streamline the contract process and service delivery and allow the City the flexibility to add work as needs arise or change. As each project is defined, a specific work assignment will be assigned to the contractor who will complete the scope of work for the unit prices included in the contract. Work deadlines will be established for each work assignment. Due to additional customer demand for chilled water connection projects, additional authority in the amount of 25% is requested. This project will be located Citywide in Districts with Austin Energy District Cooling systems. Item 5 Posting Language ..Title Authorize negotiation and execution of a contract for rental of industrial equipment with United Rentals (North America) Inc., for up to five years for a total contract amount not to exceed $4,500,000. [Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods and services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Fiscal Note Funding in the amount of $900,000 is available in the Fiscal Year 2023-2024 Operating Budget for Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: Multiple cooperative purchase programs were reviewed for these goods and services. The Financial Services Department and Austin Energy have determined this contractor best meets the needs of Austin Energy to provide these goods and services required for the City. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: February 12, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The contract will provide rental of industrial equipment for Austin Energy’s power plant and district cooling facilities. The equipment is necessary to ensure continuity for Austin Energy’s mission-critical functions as well as those provided to customers by minimizing service disruptions in the event of equipment failures. The contractor will provide equipment such as air compressors, electric generators, and chillers, in addition to mobilization and demobilization services. Sourcewell is a cooperative purchasing association recognized under Texas procurement statutes. Cooperative associations, themselves or using a lead government, competitively solicit and award contracts that are eligible for use by other qualified state and local governments. Due to their substantial volumes, larger than any one government could achieve independently, cooperative contracts routinely include superior terms, conditions, and pricing. Use of cooperative contracts also results in lower administrative costs and time savings. Item 6 Posting Language ..Title Authorize negotiation and execution of a contract for Splunk cyber security software products and services with GTS Technology Solutions, Inc., for a term of three years in an amount not to exceed $1,200,000. [Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods and services required for this procurement, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Fiscal Note Funding in the amount of $400,000 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: Multiple cooperative purchase programs were reviewed for these goods and services. The Financial Services Department and Austin Energy have determined this contractor best meets the needs of Austin Energy to provide these goods and services required for the City. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Council Committee, Boards and Commission Action: February 12, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The contract is for Splunk software products and services including maintenance support, upgrades, and training for Splunk users. Austin Energy utilizes Splunk software to enhance cyber security by monitoring, flagging, and identifying security events and potential threats to Austin Energy’s network, and allowing users to perform proactive investigations pertaining to potential security events. The State of Texas Department of Information Resources is a cooperative purchasing association recognized under Texas procurement statutes. Cooperative associations, themselves or using a lead government, competitively solicit and award contracts that are eligible for use by other qualified state and local governments. Due to their substantial volumes, larger than any one government could achieve independently, cooperative contracts routinely include superior terms, conditions, and pricing. Use of cooperative contracts also results in lower administrative costs and time savings. Item 7 ..Title Posting Language Authorize execution of a contract for construction services with Alpha Paving Industries, LLC to provide a new Austin Energy Pole Yard at St. Elmo Service Center in the amount of $312,470, plus a $31,247 contingency for a total contract amount not to exceed $343,717. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9A (Minority-Owned and Women-Owned Business Enterprise Procurement Program) and subcontractor goals were applied to the solicitation. The recommended contractor provided sufficient evidence of good faith efforts and the resulting contract will include 27.06%. MBE/WBE combined participation]. ..Body Lead Department Financial Services Department. Managing Department Austin Energy. Fiscal Note Funding is available in the Capital Budget of Austin Energy. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) CLMC1020 for construction services. The solicitation issued on December 4, 2023 and closed on December 21, 2023. Of the three offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s Financial Services website, Austin Finance Online. This information can currently be found at https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=140010. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by Electric Utility Commission. Additional Backup Information: The Work consists of construction of an approximate 23,500 square foot new asphalt utility pole lay-down yard with new lay-down concrete perimeter ribbon curbs, two new concrete driveways, new perimeter chain- link fence, and two new 24-foot wide, chain-link rolling gates. This new pole yard is to be built at St. Elmo Service Center, adjacent to the location of the prior one (upon which a City Fleet Services heavy vehicle parking lot is being built, under a Memorandum of Understanding (MOU) with Fleet Mobility Services Department) with entrance and exit drives off of Sponberg Drive. Due to the potential for unknown subsurface conditions, a 10% contingency in funding has been included to allow for the expeditious processing of any change orders. A contingency is an additional amount of money added to the construction budget to cover any unforeseen construction costs associated with the project. By authorizing the additional contingency funding, Council is authorizing any change orders within the contingency amount. The construction of the new pole yard will cause no impact to the public since all work will be on City property that is not open to the public. The Strategic System Control operations of the utility will be severely impacted, if this project is not implemented. The contract allows 180 calendar days for completion of this project. This project is located within zip code 78744 (District 7) . Item 8 Posting Language ..Title Authorize execution of a contract for ION meters with Dealers Electrical Supply d/b/a Dealers Electrical Supply Co, for up to five years for a total contract amount not to exceed $2,500,000. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the goods required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established]. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Fiscal Note Funding in the amount of $291,667 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) 1100 BAS1001 for these goods. The solicitation was issued on October 23, 2023, and closed on November 28, 2023. Of the two offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s Financial Services website, Austin Finance Online. This information can currently be found at: https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=139477 . For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. Additional Backup Information: The contract will provide ION meters for various Austin Energy substations. ION meters are devices used for revenue metering and advanced power quality analysis. They provide true measurements of voltage, current, power, and energy, and are complemented by extensive in/out capabilities, comprehensive logging, and advanced power quality measurements and compliance verification functions. The recommended contractor is the current supplier of these goods. Item 9 Posting Language ..Title Authorize execution of a contract for construction services for the Brazos Street Duct Bank Civil Work project with Facilities Rehabilitation Inc., in the amount of $1,967,535 plus a $196,754 contingency for a total contract amount not to exceed $2,164,289. [Note: This contract will be awarded in compliance with City Code Chapter 2-9A (Minority Owned and Women Owned Business Enterprise Procurement Program) by meeting the goals 3.09% MBE and 2.06% WBE participation]. ..Body Lead Department Financial Services Department. Managing Department Capital Delivery Services. Fiscal Note Funding is available in the Capital Budget of Austin Energy. Purchasing Language: The Financial Services Department issued an Invitation for Bids (IFB) CLMC955 for construction services. The solicitation issued on October 30, 2023, and it closed on November 30, 2023. Of the seven offers received, the recommended contractor submitted the lowest responsive offer. A complete solicitation package, including a tabulation of the bids received, is available for viewing on the City’s Financial Services website, Austin Finance Online. This information can currently be found at https://financeonline.austintexas.gov/afo/account_services/solicitation/solicitation_details.cfm?sid=137923. For More Information: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. Respondents to the solicitation and their Agents should direct all questions to the Authorized Contact Person identified in the solicitation. Council Committee, Boards and Commission Action: February 12, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: Due to growth in the Austin Downtown Network area, the two existing Austin Energy (AE) substations, Seaholm and Brackenridge, cannot sustain power in certain scenarios, creating the critical need for the development of a third substation in the Rainey neighborhood. The Rainey Street Substation at East Avenue and River Street will allow AE to provide continued reliability to existing customers and will support future growth. This project will allow AE to route circuits from the substation to the duct work currently under construction as part of an ongoing Waller Creek improvements project, ultimately allowing AE to serve network electrical loads south of the river. Specifically, the project includes the construction of approximately 1,905 linear feet of electrical duct bank, new electrical manholes, and tie-ins to existing electrical circuits. Additionally, one water line will be relocated to accommodate the new duct bank, and an existing segment of storm drain will be replaced along East Avenue to Cummings Street, and Rainey Street to the Mexican American Cultural Center. This item includes one allowance. The allowance of $25,000 will be used to address contaminated soil or ground water testing and removal, if needed. An allowance is an amount that is specified and included in the construction contract or specifications for a certain item(s) of work whose details are not yet determined at the time of bidding. Due to the potential for unforeseen utility conflicts, a 10% contingency has been included to allow for the expeditious processing of any change orders to cover any unforeseen construction costs associated with the project. This project proposes lane closures and detours during construction of the various utilities. The contractor will install appropriate traffic detour signs and barricades to direct traffic and will work to ensure that residents and businesses always have access to their driveways. There will be planned temporary water service interruption during pipeline tie-in. Customers will be notified at least 48 hours in advance of planned service interruptions. Capital Delivery Services will communicate information regarding the project with neighboring businesses and residents using mailings, social media outreach, press release, etc. to inform the public as the work progresses. Without Council approval, AE will have limited options to serve the network area south of the river from the Rainey Street Substation. The Brazos Street Duct Bank Civil Work project will connect Rainey substation circuits to infrastructure across Waller Creek to ultimately reach areas south of the river. This connectivity will support the diversification of Rainey circuits and help ensure long term reliability in serving the AE Downtown Network area. The contract allows 210 calendar days for completion of this project. This project is located within zip code 78701 (District # 9). Posting Language ..Title Approve issuance of a capacity-based incentive to KMFA Station, for the installation of solar electric systems on their facilities located at 41 Navasota St, Austin, TX, 78702, in an amount not to exceed $80,676. Item 10 ..De Lead Department Austin Energy Prior Council Action: Fiscal Note Funding in the amount of $80,676 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. For More Information: Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. February 20, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: Austin Energy requests approval to issue this capacity-based incentive (CBI) to KMFA Station (the Customer) for the installation of solar electric system, detailed in the table below at their facility to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits. Solar System Details* Total System Size (kW-DC) Total System Size (kW-AC) Annual Estimated Production (kWh) Total System Cost ($) Total Incentive ($) Percent of Cost Covered Reduction of Carbon Dioxide (CO2) in tons Reduction of Sulfur Dioxide (SO2) in pounds Reduction of Nitrogen Oxide (NOX) in pounds 89.64 74.40 132,637 $195,000 $80,676 41% 59 66 93 Environmental Benefits** and Emission Reduction Equivalencies*** Equivalency of Vehicle Miles Driven Equivalency of Cars on Austin Roadways Equivalency of Trees Planted Equivalency of Forest Acreage Added *All solar equipment meets Austin Energy program requirements ** Environmental Benefits based on the US Energy Information Association’s state-wide electricity profile *** According to the Environmental Protection Agency (EPA)’s Greenhouse Gas Equivalency Calculator 137,211 11.9 885 63.8 KMFA 89.5 is a non-profit, independent, public classical radio station in Austin, TX. KMFA serves approximately 100,000 listeners each week and features locally produced shows like Classical Austin, Early Music Now, and From the Butler School, as well as nationally distributed programming from Public Radio International, American Public Media, and National Public Radio. This proposed system is estimated to offset 53% of the interconnected meters’ historic annual energy consumptions. According to the updated Austin Energy Resource, Generation and Climate Protection Plan, approved by Austin City Council in March 2020, “Austin Energy will achieve a total of 375 MW of local solar capacity by the end of 2030, of which 200 MW will be customer-sited (when including both in-front-of-meter and behind-the meter installations).” In order to meet these goals, Austin Energy has funded the Solar Photovoltaic (PV) Programs, which are designed to reduce the amount of electricity Austin Energy must purchase from the market and reduce associated greenhouse gas emissions. The purpose of the Austin Energy Solar PV CBI Program is to expand adoption of solar by nonprofit organizations by helping to offset the capital investment for customers who are unable to benefit from the federal tax credit. Under this program, customers who qualify as nonprofit entities (outlined in Section V.B.iv of the program guidelines), are eligible to receive $0.90/W-DC up to $433,800. Per program guidelines, the installation is expected to continue producing for a minimum of 20 years or may be subject to repay the incentive at a pro-rated amount, if it stops producing for any reason short of the stated minimum. This project will advance the stated goals of expanding locally-sited solar, carbon reduction and resiliency, extend the adoption of solar to entities historically excluded from the investment benefits of solar, and continue to demonstrate the value and importance of renewables as part of the individual and collective generation portfolio in Austin Energy territory. Posting Language ..Title Approve issuance of a capacity-based incentive to Kensington Apartments, LLC, for the installation of solar electric systems on their facility located at 3300 Manor Rd Austin, TX, 78723, in an amount not to exceed $184,802. Item 11 ..De Lead Department Austin Energy Prior Council Action: Fiscal Note Funding in the amount of $184,802 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. For More Information: Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. February 20, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: Austin Energy requests approval to issue this capacity-based incentive (CBI) to the Kensington Apartments, LLC (the customer) for the installation of solar electric system, detailed in the table below at their facility to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits. Solar System Details* Environmental Benefits** and Emission Reduction Equivalencies*** Total System Size (kW-DC) Total System Size (kW-AC) Annual Estimated Production (kWh) Total System Cost ($) Total Incentive ($) Percent of Cost Covered Reduction of Carbon Dioxide (CO2) in tons Reduction of Sulfur Dioxide (SO2) in pounds Reduction of Nitrogen Oxide (NOX) in pounds Equivalency of Vehicle Miles Driven Equivalency of Cars on Austin Roadways Equivalency of Trees Planted Equivalency of Forest Acreage Added 205 170 290,555 $615,000.00 $184,801.50 30% 130 145 203 302,330 26.2 1,950 141 *All solar equipment meets Austin Energy program requirements ** Environmental Benefits based on the US Energy Information Association’s state-wide electricity profile *** According to the Environmental Protection Agency (EPA)’s Greenhouse Gas Equivalency Calculator The Kensington Apartments, LLC consists of over 100 units, all of which are intended for those making at or below 60% of the area’s median income. This proposed system is estimated to offset 43% of the interconnected meters’ historic annual energy consumptions. According to the updated Austin Energy Resource, Generation and Climate Protection Plan, approved by Austin City Council in March 2020, “Austin Energy will achieve a total of 375 MW of local solar capacity by the end of 2030, of which 200 MW will be customer-sited (when including both in-front-of-meter and behind-the meter installations).” In order to meet these goals, Austin Energy has funded the Solar Photovoltaic (PV) Programs, which are designed to reduce the amount of electricity Austin Energy must purchase from the market and reduce associated greenhouse gas emissions. The purpose of the Austin Energy Solar PV CBI Program is to expand adoption of solar by nonprofit organizations by helping to offset the capital investment for customers who are unable to benefit from the federal tax credit. Under this program, customers who qualify as nonprofit entities (outlined in Section V.B.iv of the program guidelines), are eligible to receive $0.90/W-DC up to $433,800. Per program guidelines, the installation is expected to continue producing for a minimum of 20 years or may be subject to repay the incentive at a pro-rated amount, if it stops producing for any reason short of the stated minimum. This project will advance the stated goals of expanding locally-sited solar, carbon reduction and resiliency, extend the adoption of solar to entities historically excluded from the investment benefits of solar, and continue to demonstrate the value and importance of renewables as part of the individual and collective generation portfolio in Austin Energy territory. Posting Language ..Title Approve issuance of $90,000 to the Texas Solar Energy Society for their Pathways Pilot Program to demonstrate how Low-Income Home Energy Assistance Program funding can now be applied to solar installations in Austin Energy service territory. Item 12 ..De Lead Department Austin Energy Prior Council Action: Fiscal Note Funding in the amount of $90,000 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. For More Information: Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. February 20, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: The Texas Solar Energy Society (TXSES) has been selected by the Department of Energy’s Solar Energy Innovation Network to create proof-of-concept pilot programs to demonstrate how Low-Income Home Energy Assistance Program (LIHEAP) funds for weatherization can now also be applied to solar installations for low-income homes. A successful pilot program can serve as an example to the industry of how the new funding source enables residential solar installation at no cost to low-income qualified homeowners. Austin Energy requests approval to issue $90,000 to TXSES for their Pathways Pilot Program to support the installation of 10 solar projects (location yet to be determined). The funding would be used solely to fund solar system equipment and installation for low-income homes that currently qualify for Low Income Home Energy Assistance Program (LIHEAP) funding. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits. Solar Systems Details* Total System Size for 10 installations (kW-DC) Total System Size for 10 installations (kW-AC) Annual Estimated Production (kWh) Total System Cost ($) Total Incentive ($) Percent of Cost Covered Reduction of Carbon Dioxide (CO2) in tons Reduction of Sulfur Dioxide (SO2) in pounds Reduction of Nitrogen Oxide (NOX) in pounds 30 25 42,000 $90,000 $90,000 100% 19 21 29 Environmental Benefits** and Emission Reduction Equivalencies*** Equivalency of Vehicle Miles Driven Equivalency of Cars on Austin Roadways Equivalency of Trees Planted Equivalency of Forest Acreage Added 44,187 3.8 285 0.114 *All solar equipment meets Austin Energy program requirements ** Environmental Benefits based on the US Energy Information Association’s state-wide electricity profile *** According to the Environmental Protection Agency (EPA)’s Greenhouse Gas Equivalency Calculator An Austin-based organization, TXSES is a 501c3 not-for-profit formed to support an equitable, inclusive approach to deploying distributed solar energy. The Low-Income Home Energy Assistance Program (LIHEAP) is a federal program that assists eligible low- income households with their heating and cooling energy costs, bill payment assistance, energy crisis assistance, weatherization, and energy-related home repairs. The purpose of these solar projects is to demonstrate financial effectiveness that would unlock LIHEAP funds to subsidize solar projects for low-income qualified homeowners moving forward. This funding is to provide a pathway to promote the installations of no-cost, renewable energy to underserved populations and leverage the Value-of-Solar benefit to reduce electric bills for low-income homeowners. According to the updated Austin Energy Resource, Generation and Climate Protection Plan, approved by Austin City Council in March 2020, “Austin Energy will achieve a total of 375 MW of local solar capacity by the end of 2030, of which 200 MW will be customer-sited (when including both in-front-of-meter and behind-the meter installations).” To meet these goals, Austin Energy has funded the Solar Photovoltaic (PV) Programs, which are designed to reduce the amount of electricity Austin Energy must purchase from the market and reduce associated greenhouse gas emissions. The Generation and Climate Protection plan also specifies that Austin Energy is to "Provide moderate and limited-income customers preferential access to community solar programs.” This project will advance the stated goals of expanding locally sited solar, carbon reduction and resiliency, extend the adoption of solar to entities historically excluded from the investment benefits of solar, and continue to demonstrate the value and importance of renewables as part of the individual and collective generation portfolio in Austin Energy territory. Posting Language ..Title Approve issuance of a 5-year performance-based incentive to Starwood Capital Group LLC, for the installation of solar electric systems on their facilities shown in the table below, in an amount not to exceed $2,142,861.70. Item 13 ..De Lead Department Austin Energy Fiscal Note Funding in the amount of $428,572.34 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Prior Council Action: November 30, 2023- Council approved issuance of a 5-year performance-based incentive to Starwood Capital Group LLC. For More Information: Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386. Council Committee, Boards and Commission Action: February 12, 2024 – To be reviewed by the Electric Utility Commission. February 20, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: Austin Energy requests approval to issue this 5-year performance-based (PBI) to Starwood Capital Group (the Customer) for the installation of solar electric systems, detailed in the table below at their facilities to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits. Solar System Details* Total System Size (kW-DC) Total System Size (kW-AC) Annual Estimated Production (kWh) Total System Cost ($) *Does not include panel and inverter cost Total Incentive ($) Percent of Cost Covered Reduction of Carbon Dioxide (CO2) in tons Reduction of Sulfur Dioxide (SO2) in pounds Reduction of Nitrogen Oxide (NOX) in pounds Equivalency of Vehicle Miles Driven Equivalency of Cars on Austin Roadways Equivalency of Trees Planted Equivalency of Forest Acreage Added 3,139 2,605 4,596,762 $5,044,132.45 $2,142,861.70 42% 2055 2,298 3,218 4,779,133 415 30,826 2,223 Environmental Benefits** and Emission Reduction Equivalencies*** *All solar equipment meets Austin Energy program requirements ** Environmental Benefits based on the US Energy Information Association’s state-wide electricity profile *** According to the Environmental Protection Agency (EPA)’s Greenhouse Gas Equivalency Calculator Starwood Capital Group is a private investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 16 offices in seven countries around the world, and currently have approximately 4,500 employees. Since its inception in 1991, Starwood Capital Group has raised over $70 billion of capital, and currently has over $120 billion of assets under management. For these projects, Starwood Capital Group has already procured panels and inverters. Details on the 8 individual proposed systems are provided in the tables below. One Proposed Performance-Based Incentive Projects (Under 75 kW AC) Site Address Incentiv e Rate System Cost Austin Energy Incentive Generation kWh/yr System Size kW DC System Size kW AC Offset $0.09 $62,354.25 $42,810.70 82,726 56.18 46.63 6% 12301 Riata Trace Pkwy II Austin, TX, 78727 Site Address 11001 Lakeline Blvd 1 Austin, TX, 78717 11001 Lakeline Blvd 2 Austin, TX, 78717 12365 Riata Trace Pkwy A Austin, TX, 78727 12357 Riata Trace PKWY C Unit 7 Austin, TX, 78727 12357 Riata Trace PKWY A Austin, TX, 78727 12357 Riata Trace Pkwy A Austin, TX, 78727 12331 Riata Trace Pkwy B Austin, TX, 78727 Seven Proposed Performance-Based Incentive Projects (Over 75 kW AC) Incentiv e Rate System Cost Austin Energy Incentive Generation kWh/yr System Size kW DC System Size kW AC Off set $0.09 $0.07 $0.09 $0.09 $0.07 $0.09 $0.09 $84,884 .25 $607,35 8 $26,005 .70 $193,00 1.25 $841,73 2.55 $185,28 1.20 $743,51 6.25 $356,531.63 688,950 468.23 388.63 $538,886.32 1,338,848 909.60 754.97 $324,831.13 627,693 434.42 360.57 $132,690.11 256,406 173.88 144.32 3% $286,982.90 713,001 493.81 409.86 $127,382.62 246,150 166.92 138.54 $332,746.29 642,988 436.03 361.90 39 % 16 % 27 % 63 % 17 % 69 % The purpose of the Austin Energy Solar PV PBI Program is to expand adoption of customer-sited solar by commercial customers. The PBI solar program offers commercial customers payments based on the metered solar production of their approved PV system for the first 5 years of operation. Payments are made as a monthly billing adjustment to the customers’ electric account. Due to the performance-based aspect of the incentive, if the customer fails to generate solar electricity, the rebate will not be fully paid. Per program guidelines, the installation is expected to continue producing for a minimum of 20 years, 15 years beyond the incentive. This project will advance the stated goals of expanding locally sited solar, carbon reduction and resiliency, extend the adoption of solar to entities historically excluded from the investment benefits of solar, and continue to demonstrate the value and importance of renewables as part of the individual and collective generation portfolio in Austin Energy territory. Posting Language ..Title Authorize expenditures for annual renewals of professional dues and memberships in national and state associations and organizations related to the electric utility industry, in an amount not to exceed $425,000. Item 14 ..De Lead Department Austin Energy Fiscal Note Funding is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Prior Council Action: February 23, 2023- City Council approved expenditures for annual renewals of professional dues and memberships in national and state associations and organizations related to the electric utility industry. For More Information: Tammy Cooper, Deputy General Manager, Regulatory, Communications, Compliance, & Legal Services (512) 505-3901. Council Committee, Boards and Commission Action: February 12, 2024- To be reviewed by the Electric Utility Commission. Additional Backup Information: The following list identifies and describes professional membership organizations of which Austin Energy is a member. The list includes dues amounts for 2024. 1. Large Public Power Council (LPPC): an amount not to exceed $160,000 LPPC members are focused on providing reliable and affordable electricity for the customers and communities they serve across the country. LPPC consists of 25 of the nation’s largest public power systems, including Austin Energy, City Public Service Energy and Lower Colorado River Authority. LPPC provides forums where public power electric utility professionals exchange information and best practices. LPPC has several committees, task forces, and working groups that address a wide-range of issues including federal legislation, environmental rules and regulations, tax implications, cyber security, emerging trends, and electric and energy policy and regulation. LPPC hires professional consultants in each of these areas to assist the organization and its individual members. 2. American Public Power Association (APPA): an amount not to exceed $135,000 APPA is the voice of not-for-profit, community-owned utilities that power 2,000 towns and cities nationwide. APPA represents public power before the federal government to protect the interests of the more than 49 million people that public power utilities serve, and the 93,000 people they employ. APPA advocates and advises on electricity policy, technology, trends, training, and operations. APPA provides an array of services to assist Austin Energy in fulfilling its mission to safely provide clean, affordable, and reliable service. APPA provides detailed analyses of federal legislation related to the electric utility industry, and a full array of advocacy, education, and information services and programs. APPA also coordinates disaster recovery efforts. 3. Texas Public Power Association (TPPA): an amount not to exceed $130,000 TPPA is the state trade association representing the interests of 72 public power providers located throughout Texas. TPPA is a central vehicle through which members can extend their influence on policy matters affecting the public power industry. TPPA provides forums for the transfer of information, technology, and training in the public power arena. TPPA provides service to the members by facilitating cooperation among the member systems, assisting in the solution of mutual problems, promoting the exchange of ideas and experiences, providing spokespersons for the Association concerning state and national issues, and operating a resource center for research and technical assistance and promoting a general understanding of public power. CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION VENDOR: SSP INNOVATIONS, LLC COUNCIL DATE: 3/7/2024 Item 15 SUBJECT: Authorize negotiation and execution of a contract for software licensing, support, upgrades, and professional services with SSP Innovations, LLC, for up to five years for a total contract amount not to exceed $575,000. MBE/WBE: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established. LEAD DEPARTMENT: Financial Services Department CLIENT DEPARTMENT: Austin Energy FISCAL NOTE: Funding in the amount of $350,000 is available in the Fiscal Year 2023-2024 Capital Budget and $45,000 in the Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. PURCHASING: Austin Energy is designating this purchase as a Critical Business Need in accordance with Senate Bill 7, as adopted by the City as Resolution No. 040610-02. PRIOR COUNCIL ACTION: FOR MORE INFORMATION CONTACT: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. BOARD AND COMMISSION ACTION: February 12, 2024 - To be reviewed by the Electric Utility Commission ADDITIONAL BACKUP INFORMATION (RCA BODY) This software provides a mobile geospatial information system (GIS) solution for Austin Energy field crews via their toughbooks. The software provides mobile real-time access to GIS data including customer and equipment isolation, network tracing, field inspection (asset viewing), infrastructure assessment, and tracing upstream and downstream for troubleshooting. The software application also delivers off-line access to GIS tools when cellular connectivity is unavailable, which assists in managing and restoring Austin Energy’s power distribution system. The contract was designated as Critical Business Need as GoSync product is end-of-life but needs to remain in place until a replacement mobility solution is identified and ready for production use. The contract will continue maintenance and licensing for the GoSync product and if Austin Energy chooses to upgrade, the MIMS software product is the upgraded version of GoSync. Revised 10/2023 1 CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION VENDOR: ASPLUNDH TREE EXPERT LLC; DAVEY TREE SURGERY CO; WRIGHT TREE SERVICE, INC COUNCIL DATE: 3/7/2024 Item 16 SUBJECT: Authorize negotiation and execution of three contracts for vegetation management around energized distribution lines with Asplundh Tree Expert LLC; Davey Tree Surgery Co, and Wright Tree Service, Inc, for up to 18 months for total contract amounts not to exceed $28,000,000. MBE/WBE: Critical Business Need contracts are exempt from the City Code Chapter 2-9B (Minority Owned and Women Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established. LEAD DEPARTMENT: Financial Services Department CLIENT DEPARTMENT(S): Austin Energy FISCAL NOTE: Funding is available in the Fiscal Year 2023-2024 Capital and/or Operating Budget of Austin Energy. Funding for the remaining contract term is contingent upon available funding in future budgets. PURCHASING: Austin Energy is designating this purchase as a Critical Business Need in accordance with Senate Bill 7, as adopted by the City as Resolution No. 040610-02. PRIOR COUNCIL ACTION: FOR MORE INFORMATION CONTACT: Direct questions regarding this Recommendation for Council Action to the Financial Services Department – Central Procurement at: FSDCentralProcurementRCAs@austintexas.gov or 512-974-2500. BOARD AND COMMISSION ACTION: February 12, 2024 – To be reviewed by the Electric Utility Commission. ADDITIONAL BACKUP INFORMATION (RCA BODY) These contracts will provide vegetation management around energized distribution lines. This highly specialized work requires adherence to strict safety protocols and is critical to ensuring the public’s safety, reducing wildfire risk, and protecting Austin Energy’s (AE) infrastructure and ability to serve customers. Services include pruning, trimming, removing, clearing, cutting and/or other management of vegetation near energized distribution lines within Austin Energy’s electrical facilities, utility easements and rights-of-way. AE declared a Critical Business Need to enter into short-term contracts with its current vegetation management contractors. Funding on the current contracts has depleted at faster than expected rates due to contract rate adjustments in the past few years and the multiple weather events prompting the use of regional resources to focus on vegetation management priority response locations with reliability and wildfire concerns. AE has secondary vegetation management providers under contract, Revised 1/2024 1 CITY OF AUSTIN RECOMMENDATION FOR COUNCIL ACTION VENDOR: ASPLUNDH TREE EXPERT LLC; DAVEY TREE SURGERY CO; WRIGHT TREE SERVICE, INC whose crews are in the final stages of onboarding as well as a competitive solicitation in queue. These short-term contracts will allow continuity of services while new crews are fully onboarded and new, long-term contracts are executed. The contractors are the current providers of these services. COUNCIL DATE: 3/7/2024 Revised 1/2024 2