HomeMy WebLinkAboutItem 02 - Engineering ServicesMEMO TO
FROM:
MEETING DATE:
SUBJECT:
RECOMMENDATION:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
ROGER NELSON, CITY MANAGER /W
NOVEMBER 6, 2001
ENGINEERING SERVICES CONTRACT / MALCOLM PIRNIE
City Council to consider approval of an engineering services contract with Malcolm
Pirnie, Inc. in an amount not to exceed $30,000 and authorize staff as signatory.
FUNDING SOURCE:
City Council hereby makes an appropriation in the amount of $30,000 for this project in
Account No. 200-44540-530-1 Professional Services.
BACKGROUND:
The 76`h Texas Legislature enacted Senate Bill 7 that deregulated the purchase of
electrical power for most consumers in Texas with an effective date of January 1, 2002.
Electricity will become a commodity subject to market fluctuation influenced by supply
and demand. Grapevine purchases $1,000,000 of electrical power annually and must
determine the most cost-effective method of procurement under the new guidelines.
The concept of a competitive market is new to both consumers and providers. The
procurement process is not clearly defined and there are numerous avenues available.
Grapevine must select the best process and negotiate the most advantageous price for
the City to ensure our energy purchase dollars are wisely spent. Price is not the only
factor. Stability of the provider, surcharge for excess or under usage, payment period,
and energy related services are considerations in selecting a provider.
Staff requested a proposal from Malcolm Pirnie, Inc. to provide assistance in selecting
an energy provider. Malcolm Pirnie, Inc. is a national consulting engineering company
and has assisted many cities throughout the nation in energy management including
procurement in newly unregulated markets. The Trinity River Authority of Texas utilized
Malcolm Pirnie, Inc. for energy procurement for their vast energy needs and found their
service to be commendable.
November 1, 2001 (1:16PM)
it
The scope of work is as follows:
• Evaluate supply options offered by aggregators to the City.
• Develop and secure proposals for electrical energy.
• Provide expertise regarding energy supply agreements.
• Attend meetings, to discuss energy matters and negotiate on behalf of the
City.
• Prepare cost evaluations and summaries, and supporting the procurement
process
• Assist the City with the approval and award process.
Malcolm Pirnie, Inc. has proposed a fee of $30,000, and staff recommends approval.
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October 29, 2001 (9:07AM)
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MAL09LM PIRTUE, INC -
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October 26, 2001
Mr. Jerry L_ Hodge
Director
Public Works Department
City of Grapevine
P. O. Box 729
Grapevine, TX 76051
RE: AL NAGEWNT CONSULTMG PROPOSAL
ELECMCAL ENERGY PROCUREMENT
Dear Jerry:
Based upon our discussions, this letter proposal has been developed to 1,erne your needs
in securing an electrical enexgy supply contract.
Scope of Work
We will woTk at your direction with the general nature of consulting Les indicated
below. I
-Evaluate supply options offered by aggregators to the City of Grapevine.
-Develop and sec=e proposals for electrical energy.
-Provide expertise regarding energy supply agreements. (Legal advice is not
provided by Malcolm Pirnie_)
-Attend meetings, as requested by the City of Grapevixxe, to discuss energy
matters or to represent or negotiate on behalf of the City of Crap_.vine.
Prepare cost evaluations, summaries, or brief reports suppoiting the energy
procurement process.
-Assist the City of Grapevine with the City's approval and award process.
In addition, the City of Grapevine may need additional services in order to improve
energy management. Such services may include metering recommendations, evaluation
of operational procedures, and evaluation of facility processes and equipment. Malcolm
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e0i MCOULLOUGH DRIVE SUITE 280 CHARLOTTE, NC 28267 704.5,7-8550 704.547.8530 f h1%)://www•Pimie.0em
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Mr. Jerry L. Hodge
City of Grapevine
Firnic agrees to perform additional management consulting
providing budget is available.
Key Members
John P. Nerison will be the principal consultant in this assignment
administrative support, when needed, will be provided by Malcolm Pirnie
Page 2 of 3
)ber 5, 2001
as requested..
Technical or
s Dallas office.
Compensation
The City of Grapevine agues to pay for services rendered in accoi dance with fee
schedule CONS I — A(NC). The fees are in effect throughout 2001. If services are
rendered after 2001, the fee schedule is subject to adjustment.
The services requested by the City of Grapevine and rendered by Malco Pirnie are not
to exceed $301000.
Upon acceptance of this proposal, the preliminary authorization for $1
the City of Grapevine on October 16, 2001 is null and void.
Should you have any questions, please do not hesitate to contact me at
Very Truly Yours,
MALCOLM PI10U, INC
John P. Nerison
Associate
cc: Matt Singleton
Jack Renfro, MPI/Dallas
Attachment - Fee Schedule CONS — 1A (NC)
0 provided by
47-8550.
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HO ON 3NIAUM �0 AIIO-01
Mr. Jerry L. Hodge
City of Grapevine
OESSIMOt-woli UM9E:j90 t00Z-92-100 peni®0Ia
The City of Grapevine accepts this proposal and agrees to the terms
contained herein.
Jerzy L. Hodge, Director Date
public Works ]Department
Page 3 of 3
)ber 5, 2001
conditions
AEC'�C�CO PAP
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SUMMARY C F STANDARD CHARGES
„ document describes the basis for compensation and terms of payment. All rates prescntod i pply to services rendered after
January 1. 2001 and will be adjusted annually thereafter.
In addition to these fees, clients will also be responsible for any sales or value-added Mmes that m y apply to engineerins services
performed.
I. Hourly Rates: Charges for services provided will be in accordance with the following
9
Conventional Services
Classification
Technical Level 1
Hourly Rate
S 66/hr
information Maga
Classification
IM Level I
mcnt
Hourly Mate
s 76/hr
Technical Level 2
125
IM Level 2
106
Professional Level 1
96
IM Level 3
126
Professional Level 2
120
IM Level 4
156
Professional Level 3
146
IM Level 5
216
Professional Level 4
226
IM Level 6
276
Overtime - No overtime premium is charged for project work outside of normal working hours
Other Direct Costs: All expenses incurred for a project, except in-house services specified elow, from outside vendors will
be invoiced at cost plus 10% to cover administrative expenses. These items may include but are not limited to: shipping
charge.; printing; supplies; equipment: travelin-- expenses: special insurance, licenses; permits; or subcontractors,
In-house services consist of:
- Computers $3.00 per lahor hour
- Transportation $0.39/mile for automobiles
$0.49/mile for 4x4 vehicles and trucks
- Reproduction $0.70 per labor hour
- Laboratory Unit prices for sample testing, handling, and storage are availabl for individual assignments
- Equipmcnt A schedule of usage rates for specialty equipment is available fo field assignments
3. Payment: All invoices are due and payable within 30 days of billing date. Any attorney' fees, court costs, or other related
expenses irscumcd in collecting delinquent accounts shall be paid by the client. Delin tuent bills are subject to finance
charges of 1.5% per month.
'_')ONS 1R(NC)
COnfiden ial Proprietary Information
Do Not Co or Release
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