HomeMy WebLinkAboutReso 2003-126RESOLUTION NO. 2003-126
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING SELECTION OF THE ENERGY
CONSULTANT TEAM OF DUNCAN, WEINBERG, GENZER
& PEMBROKE, MCCARTHY & BERLIN AND NAVIGANT
CONSULTING INC. TO ANALYZE THE FINANCIAL, LEGAL
AND TECHNICAL FEASIBILITY OF VARIOUS POSSIBLE
MUNICIPAL ENERGY UTILITY BUSINESSES AND
ALTERNATIVES THERETO; AUTHORIZING AND
DIRECTING STAFF TO NEGOTIATE A CONSULTANT
SERVICES CONTRACT WITH DUNCAN/NAVIGANT
CONSISTENT WITH THE TERMS AND CONDITIONS
oLrrLINED HEREIN; AND DIRECTING STAFF TO RETURN
WITH A FINAL PROPOSED AGREEMENT AND
APPROPRIATION OF FUNDS FOR COUNCIL
CONSIDERATION
WHEREAS, in May 2001, in response to an unstable energy market, the City Council
adopted the Chula Vista Energy Strategy and Action Plan; and
WHEREAS, components of that plan included direction to pursue a cost benefit analysis
of: (1) Operating a municipal energy utility, including the ownership and/or operation of all or a
portion of the local distribution system; (2) Becoming a municipal aggregator for the purchase
of electricity for City facilities, residents and/or businesses; and (3) Pannering with the Port
District to repower and/or acquire capacity in a reconstructed South Bay Power Plant; and
WHEREAS, since May 2001, City staff has implemented many of the Energy Strategy
action items, and has developed considerable in-house expertise on energy issues; however,
given the complexity of energy issues, specialty consulting services are now necessary to
complete a cost/benefit options analysis; and
WHEREAS, to complete the analysis, staff determined the need to issue a Request For
Proposal (RFP) for energy consultant services; and
WHEREAS, the expiration of the electricity and natural gas franchise agreements with
San Diego Gas and Electric provide the City with a unique opportunity to evaluate and make
comparisons on the most cost effective means of providing reliable energy supply to City
facilities, residents and businesses and controlling at least some of the revenues generated by the
delivery of energy to local residents and businesses; and
WHEREAS, on December 20, 2002, staff distributed the RFP by mail and email to more
than sixty energy-consulting firms (including SEMPRA, SDG&E's parent company); and
WHEREAS, on January 9, 2003, approximately nineteen representatives from fifteen
consulting firms attended the pre-bid conference; and
WHEREAS, on February 7, 2003, the City received nine responses to the City's RFP;
and
Resolution 2003-126
Page 2
WHEREAS, a City Municipal Energy Utility (MEU) Selection Committee, approved by
the City Manager, was formed to evaluate the proposals; and
WHEREAS; this team included municipal industry experts as well as key City staff; and
WHEREAS, a preliminary screening was conducted, and each proposal was numerically
scored and ranked based on the City's selection criteria published in the RFP and the top five
respondents to the RFP were placed on a short list for interviews; and
WHEREAS, following the interviews, the energy-consulting firms were again
numerically scored and ranked based on overall presentation, technical expertise, cost, and the
ability to adequately address the proposed scope of work; and
WHEREAS, the City's MEU Selection Committee unanimously, ranked the top two
finns in the 1 and 2 positions. Duncan/Navigant and R.W. Beck, respectively were selected for
further consideration; and
WHEREAS, overall, the Duncan/Navigant team was identified as providing the best
balance of skills and expertise necessary to deliver the required scope of work; and
WHEREAS, the consultant selection process complies with the guidelines established by
the City. The proposed consultant has performed no work for the City, and earned no money,
during the past twelve months. Further, Duncan/Navigant has identified no potential conflicts of
interest.
WHEREAS, the cost proposal for the MEU Analysis is for a guaranteed maximum price
of $275,000 including expenses; and
WHEREAS, given the importance of this study in helping to compare the relative value
of a long-term franchise renewal and on MEU business, staff believes this expenditure is more
than justified.
NOW, THEREFORE BE IT RESOLVED that the City Council of the City of Chula
Vista does hereby approve the selection of the Energy Consultant Team of Duncan, Weinberg,
Genzer & Pembroke, McCarthy & Berlin and Navigant Consulting Inc. (Duncan/Navigant) to
analyze the financial, legal and technical feasibility of various possible municipal energy
businesses, and alternatives thereto.
BE IT FURTHER RESOLVED that staff is hereby authorized and directed to negotiate a
consultant services contract with Duncan/Navigant.on the terms presented.
BE IT FURTHER RESOLVED that staff is hereby directed to return with a final
proposed agreement and a proposed appropriation of funds for City Council consideration.
Presented by
Approved as to form by
Ann Moore
City Attorney
Resolution 2003-126
Page 3
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 25th day of March, 2003, by the following vote:
ATTEST:
Councilmembers:
Councilmembers:
Councilmembers:
NAYS:
ABSENT:
Davis, Rindone, Salas, McCann and Padilla
None
None
StepheWPad~tla, Mayor
Susan Bigelow, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2003-126 was duly passed, approved, and adopted by the City Council at a
regular meeting of the Chula Vista City Council held on the 25th day of March, 2003.
Executed this 25th day of March, 2003.
Susan B~gelow, City Cle~