Items 2-6_Draft RCAs — original pdf

Backup

Item 2 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 facility located at 10814 Jollyville Road #4, Austin, TX 78759, in an amount not to exceed $70,125.91. ..De Lead Department Austin Energy Fiscal Note Funding in the amount of $70,125.91 is available in the Fiscal Year 2023-2024 Austin Energy Operating Budget. Prior Council Action: November 30, 2023-Council approved a 5-year performance-based incentive for the Starwood Capital Group, LLC. For More Information: Amy Everhart, Director Local Government Issues (512) 322-6087; Tim Harvey, Customer Renewable Solutions Manager (512) 482-5386. Council Committee, Boards and Commission Action: April 15, 2024 – To be reviewed by the Electric Utility Commission. April 16, 2024 – To be reviewed by the Resource Management Commission. Additional Backup Information: Austin Energy requests approval to issue this 5-year performance-based (PBI) to the Customer for the installation of a solar electric system to produce renewable energy for on-site consumption. The table below provides a summary of the system size, cost, proposed incentive, and environmental benefits: Solar System Details* Total System Size (kW-DC) Total System Size (kW-AC) Annual Estimated Production (kWh) Total System Cost ($) *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 135,509 $101,548.35 $70,125.91 69% 92 76 61 68 95 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 141,862 12.3 915 66 *** 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, so those costs are not represented in the “Total System Cost” above. The proposed solar system is estimated to offset 10% of the building’s historic energy consumption. 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. Item 3 Posting Language ..Title Authorize negotiation and execution of three contracts for gas turbine repair and maintenance with ProEnergy Services LLC; Transcanada Turbines, Inc.; and Wood Group Pratt & Whitney Industrial Turbine Services LLC, each for up to five years for total contract amounts not to exceed $60,000,000, divided among the contractors. [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. Fiscal Note Funding in the amount of $2,750,000 is available in the Fiscal Year 2023-2024 Operating Budget of Austin Energy. Funding in the amount of $4,500,000 is available in the Capital 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 a Request for Proposals RFP 1100 MLR3011 for these services. The solicitation was issued on August 21, 2023, and closed on September 28, 2023. Of the five offers received, the recommended contractors submitted the best evaluated responsive offers. A complete solicitation package, including a log of offers 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=139219 . 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: April 8, 2024 - To be reviewed by the Electric Utility Commission. Additional Backup Information: The contracts will provide specialized maintenance services for inspections, repairs, modifications, upgrades, and testing for aeroderivative gas turbines in use at Austin Energy’s (AE) Decker Creek Power Station and Sand Hill Energy Center. Services include both planned and emergency maintenance. Multiple contractors are required to provide expertise specific to each gas turbine manufacturer and to ensure timely response. An evaluation team with expertise in this area evaluated the offers and scored ProEnergy Services LLC; Transcanada Turbines, Inc.; and Wood Group Pratt & Whitney Industrial Turbine Services LLC as the best to provide these services based on price, service-disabled veteran business enterprise, local preference, solution, and experience. Transcanada Turbines, Inc. and Wood Group Pratt & Whitney Industrial Turbine Services LLC are current providers of these services. Without authorization to execute these contracts, AE will not be able to complete scheduled maintenance and timely repair of gas turbines, which will jeopardize AE’s ability to manage energy costs for its customers. Item 4 Posting Language ..Title Authorize negotiation and execution of amendments to two contracts for continued customer care and billing system hosting, maintenance, and support with Oracle America, Inc., to extend the term by three years and increase the amount by $33,400,000, for revised total contract amounts not to exceed $48,005,332. [Note: This procurement was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9C (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. Purchasing Language: Contract Amendment. Fiscal Note Funding in the amount of $11,225,000 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. Prior Council Action: February 9, 2023 – Council approved a contract for customer care and billing software hosting and related support services with Oracle America, Inc. 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: April 8, 2024 - To be reviewed by the Electric Utilities Commission. Additional Backup Information: The contracts provide system hosting, maintenance, and support for the City of Austin Utilities’ Customer Care and Billing (CC&B) system. The CC&B system handles utility billing for electricity, water, wastewater, solid waste, and other monthly fees for services to nearly 500,000 households and businesses. The system was installed in 2011, was upgraded in 2018, and is the core system that interfaces with over 150 City of Austin applications. The amendments will include a continuation of current services, which include: • Bill Print • Data center hosting and support services • • • Software managed services System enhancement services System Upgrade from version 2.6 to 2.9 While these new contracts will provide an extension of the current services, Austin Energy does anticipate receiving the following benefits: • Continuation of a stable infrastructure • Enhanced security services for protection of customer data Improved Service Level Agreements and Performance • Leverage experts for additional enhancements and projects, such as increasing customer self- service • and proactive communication features. This request, in conjunction with the request for continued CC&B licenses and support, will allow for uninterrupted services to customers as well as sufficient funding and time for Austin Energy to plan for a transition to a more developed cloud-based product, complete planned enhancements, and negotiate new contracts. The Texas Department of Information Resources cooperative 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 5 Posting Language ..Title Authorize negotiation and execution of an amendment to a contract for continued customer care and billing system licenses and support with Oracle America, Inc., to increase the amount by $6,750,000, for a revised total contract amount not to exceed $38,962,083. [Note: Sole source contracts are exempt from the City Code Chapter 2-9C (Minority-Owned and Women- Owned Business Enterprise Procurement Program); therefore, no subcontracting goals were established. ..Body Lead Department Financial Services Department. Client Department(s) Austin Energy. Purchasing Language: Contract Amendment. Fiscal Note Funding in the amount of $2,424,676 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. Prior Council Action: April 20, 2017 – Council approved a contract for Oracle utilities software and services including maintenance and support with Oracle America, Inc. February 3, 2022 – Council approved additional expenditures to contracts for continued licenses, enhancements, hosting software, and management services of the City’s customer utility billing information system with Oracle America, Inc. 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: April 8, 2024 - To be reviewed by the Electric Utilities Commission. Additional Backup Information: The contract provides licenses and support services for the City’s Utilities’ Customer Care and Billing (CC&B) system. The CC&B system handles billing for electricity, water, wastewater, solid waste, and other monthly fees for services to nearly 500,000 households and businesses. The system was installed in 2011, was upgraded in 2018, and is the core system that interfaces with over 150 City Utilities’ applications. Licenses are required to continue the City’s use of CC&B. Licenses provide an extended warranty on the CC&B system, while support services push down bug fixes in the application. This request, in conjunction with the request for continued CC&B system hosting, maintenance, and support, will allow for uninterrupted services. Item 6 Posting Language ..Title Approve an ordinance amending City Code Chapter 15-9 as it relates to utility customers with certain medical vulnerabilities. ..De Lead Department Austin Energy Fiscal Note This item has no fiscal impact. Prior Council Action: May 27, 2010- Council approved an ordinance amending City Code Chapter 15-9 as it relates to Medically Vulnerable Customers. For More Information: Amy Everhart, Director, Local Government Issues (512) 322-6087; Kerry Overton, Deputy General Manager, Chief Customer Officer (512) 322-6113. Council Committee, Boards and Commission Action: April 15, 2024- To be reviewed by the Electric Utility Commission. Additional Backup Information: Austin Energy manages a Medically Vulnerable Registry for customers with life support equipment requiring electric or water service, and customers with certain critical or serious illnesses that requiring heating and air conditioning. Customers on the registry receive additional communications during emergency situations, along with wellness checks, resource referrals and outreach to emergency contacts as needed. These customers also receive individualized case management services that may include help creating emergency plans, referrals to social service agencies, and assistance with billing and payment arrangements. The proposed amendments to the Utility Service Regulations set forth in City Code Chapter 15-9 will revise the City’s practices regarding utility customers with certain life support equipment and medically vulnerable conditions. The proposed amendment to Section 15-9-23 reduces the frequency of recertification requirements for the Medically Vulnerable Registry and expands the types of providers who may certify a patient’s eligibility for the program. The proposed changes also create a new registry category for “Medically Dependent” customers who may not rely on powered medical equipment but rely on others for assistance with daily living tasks, and who could benefit from additional communications about available resources and information during a weather emergency.