Title
a. Approve and authorize the Contracts Purchasing Officer or designee to execute the first amendment to the Time of Use Agreement number 080121001 between the County and Procure America for the Time of Use Optimization Study implementation adding $250,000 for a revised not to exceed amount of $350,000 with no change to the term to be paid for out of Public Works, Parks, & Facilities, Utilities Unit 8182 over 5 years from savings resulting from the time of use study.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a) Approve and authorize the Contracts Purchasing Officer or designee to execute the first amendment to the Time of Use Agreement number 080121001 between the County and Procure America for the Time of Use Optimization Study implementation adding $250,000 for a revised not to exceed amount of $350,000 with no change to the term to be paid for out of Public Works, Parks, & Facilities, Utilities Unit 8182 over 5 years from savings resulting from the time of use study;
SUMMARY:
On August 21, 2020, Procure America conducted a Tariff Rate Optimization Study for the County of Monterey pursuant to an under $100,000 contract executed by the CAO's office. The study results were presented to the Budget Committee on September 30, 2020. The study predicted a potential savings to the County of approximately $868,000 over 5 years. This savings will be realized through the removal of the User Utility Tax on 10 County meters and by short- and long-term electricity rate optimization on additional meters. The Procure America contract is a "shared in savings" model, where the County splits verified savings with the vendor 70/30 for 5 years. Due to the study indicating higher savings than originally anticipated, the cost to the vendor will exceed $100,000 over the lifetime of the contract. Consequently, staff is returning to the Board for authorization to execute an amended contract, a process contemplated by the initial contract. Wh...
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