1 EWM:ag A23-00935 (3-31-2023)
01506518.DOCX
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LONG BEACH AUTHORIZING THE CITY
MANAGER TO EXECUTE A CONTRACT AND ANY
AMENDMENTS THERETO WITH UTILITY COST
MANAGEMENT, LLC WITHOUT ADVERTISING FOR BIDS
TO PERFORM AN ELECTRIC UTILITY AUDIT, IN AN
AMOUNT EQUAL TO 33% OF THE IDENTIFIED REFUNDS
OR CREDITS REALIZED BY THE CITY, AND 33% OF ANY
FUTURE SAVINGS THAT ACCRUE DURING A TWO-YEAR
PERIOD FOLLOWING IMPLEMENTATION OF EACH
CORRECTION, FOR A PERIOD OF TWO YEARS, WITH
THE OPTION TO RENEW FOR ONE ADDITIONAL ONE-
YEAR PERIOD, TO COMPLETE A SECOND ROUND COST
SAVING REVIEW
WHEREAS, City Council approval is requested to enter into a contract with Utility Cost Management (“UCM”), for electric utility billing audit services; and WHEREAS, UCM reviews the City’s electric utility accounts to identify billing errors, obtain refunds, find ongoing savings opportunities on the City’s electric accounts, and make recommendations to the City; and
WHEREAS, UCM’s analysis includes, but is not limited to, the investigation of billing calculations, inapplicable rate schedules, proper metering of services, optional rates, applicability of taxes and surcharges, and the applicability of all rules and regulations; and
WHEREAS, UCM’s compensation is based only on actual refunds and/or cost savings as a direct result of their work and the newly assigned rates identified by RES-23-0057
2 EWM:ag A23-00935 (3-31-2023)
01506518.DOCX
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
UCM and implemented by the utility company; and
WHEREAS, UCM’s fee is calculated at 33 percent of the identified refunds or credits realized by the City, and 33 percent of any future savings that accrue during a two-year period following implementation of each correction; therefore, the City only incurs a fee if cost savings are realized; and
WHEREAS, at its meeting on October 10, 2017, the City Council adopted a Request for Proposals (RFP) FM17-009 for performing an electric utility billing audit, and awarded a contract to UCM; and
WHEREAS, as part of UCM’s original selection, City of Long Beach (City) staff evaluated four proposals on the criteria set forth in the RFP and the selection committee determined that UCM was the vendor that best met the City’s needs for this service based on: demonstrated competence in the industry; comprehensive experience with California public entities Southern California Edison, and the California Public Utilities Commission; and expertise and availability of key personnel; and WHEREAS, UCM conducted a first round of review at the start of the original contract term and a second round of review was anticipated to look for additional savings resulting from rapid changes in the energy sector and the California regulatory environment, however, this work was put on hold during the COVID-19 pandemic and the awarded contract was permitted to terminate; and
WHEREAS, when the second phase of work restarted, savings estimate from UCM indicated that fees were unlikely to exceed $100,000, within the City manager’s normal discretion for procurement awards, per Long Beach Municipal Code (“LBMC”) Chapter 2.84.010; and
WHEREAS, based on these estimates, a purchase order was expected to be sufficient to finish this contemplated work, and UCM conducted a second round of review, however, due to a highly technical finding associated with electricity discharge from battery storage, UCM’s second review identified more potential savings than originally anticipated; and
3 EWM:ag A23-00935 (3-31-2023)
01506518.DOCX
1 2
3 4
5 6
7 8
9 10
11 12
13 14
15 16
17 18
19 20
21 22
23 24
25 26
27 28
OFFICE OF THE CITY ATTORNEY
DAWN MCINTOSH, City Attorney
411 West Ocean Boulevard, 9th Floor
Long Beach, CA 90802-4664
WHEREAS, a contractual agreement is necessary to reflect the higher level of savings that may be achievable through implementation of the identified billing corrections, and the resulting fees that would be owed to UCM, since the amount will be higher than the LBMC allows without a City Council authorized contract; and WHEREAS, UCM was selected as a result of a competitive procurement process in 2017 and continues to offer its services to City at the competitively procured price and UCM has already completed a first round savings review and requires a contract to completed a second round review that is underway; and WHEREAS, this project is near completion and therefore it would not be a responsible use of City time or resources to re-procure these services for the second round review; and
WHEREAS, as a result, no useful purpose would be served by advertising for bids and to do so would constitute an idle and useless act and an unnecessary expenditure of public funds;
NOW, THEREFORE, the City Council of the City of Long Beach resolves as follows:
Section 1. The above recitals are true and correct and are incorporated herein.
Section 2. The City Manager is hereby authorized to enter a contract and any amendments thereto with Utility Cost Management, LLC to perform an electric utility billing audit, in an amount equal to 33% of the identified refunds or credits realized by the City, and 33 % of any future savings that accrue during a two year period following implementation of each correction, for a period of two years, with the option to renew for one (1) additional one-year period, to complete a second round cost saving review.
Section 3. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ///
///
'-
>- >, 8
~~u::"<t 0:: '- .c co
oSm~ 1--<C-•
I- ~-e8l
<:( -- ro co
~ (.) > 0
-~ 0)
-:C::::l<:(
(.) Cl) 0 (.)
woco :ci-c:. 1--zgj-8
LL()Oro
O::::i:0~
UJ Z Ul Cl
osa,c: u::<Cs.3
LL Cl.,... 0 .,...
'St
1 I hereby certify that the foregoing resolution was adopted by the City 2 Council of the City of Long Beach at its meeting of April 18 2023 by the 3 following vote:
4 5
6 7
8 9
10 11
12 13
14 15
16 17
18 19
20 21
22 23
24 25
26 27
28 Ayes: Councilmembers: Zendejas, Duggan, Supernaw, Kerr, Saro, Uranga, Austin, Ricks-Oddie.
Noes: Councilmembers:
Absent: Councilmembers:
Recusal(s): Councilmembers:
EVVM:ag A23-00935 (3-31-2023)
01506518.DOCX
None.
Allen.
None.
4