Item No: 4.C.7.
Meeting Date: July 22, 2013
From: Raymond S. Sharp, Interim City Manager
Subject: Resolution authorizing Task Order No. 4 to KEMA, Inc. for technical assistance in renegotiating a services contract with GE for smart grid hosting services.
Staff recommends approval of Task Order No. 4 to KEMA, Inc. in the not-to-exceed amount of $49,000 for technical assistance in renegotiating the contract with GE.
In November, 2011, the City Commission authorized a services contract with GE in the amount of $13,404,600 over ten years. The services to be provided under the GE contract include software and data hosting services supporting the Smart Grid/AMI project, which was contracted separately.
The Smart Grid/AMI project is some six months or more behind schedule, and is likely to be delayed further. This fact alone is cause to renegotiate the services contract, since the annual payments were predicated upon a delivery schedule far different than the current one. Additionally, after some informal discussion with KEMA, the city believes that it is prudent to re-examine the scope and cost of the services contract and to enter into discussions with GE.
Task Order No. 4 provides funding for KEMA to support the city in this endeavor. KEMA was previously selected as the city’s technology coach for the Smart Grid/AMI project because of their technical expertise and record of success in such projects, and they are well-suited to provide services to the city in this regard. The task order is on a “time and materials” basis, meaning that we are charged as work is performed. This authorization is proposed by staff as a not-to-exceed cost of $ 49,000.
1. Authorize the Mayor and City Clerk to execute the agreement as presented; or,
2. Such alternative action as the Commission may deem appropriate.
Apart from the cost of the task order, the future benefits are unknown. However, staff believes that it is possible that the contract should be renegotiated with a benefit to the city of reducing the more than $13 million cost over the next ten years. Funding for this expense will come out of the current Electric budget.
Department: City Manager
Prepared by: R. Sharp
Attachments: Yes X No ______
Advertised: ____Not Required ______
Attorney Review : Yes___ No ____
Reviewed by: Dept. Head ________
Finance Dept. _BLM,___________
Deputy C.M. ___________________
City Manager ___________________
Account No. _041-1070-531-3110____
Project No. __SMARTG_________
WF No. ______________________
RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE TASK ORDER #4 TO AN AGREEMENT FOR PROFESSIONAL SERVICES WITH KEMA, INC.; AND PROVIDING AN EFFECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:
THAT the Mayor and City Clerk are hereby authorized to execute an agreement with KEMA, INC., whose address is 67 South Bedford Street, Suite 201E Burlington, MA 01803, for Task Order No. 4 to an Agreement for Professional Services.
THAT this resolution shall become effective immediately.
PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 22nd day of July 2013.