Authorize the City Manager to Execute Contract Modification No. 1 for Energy Performance Owner's Representative Services with 2KB Energy Services in an Amount Not to Exceed $199,654. The modification covers the additional responsibilities related to the investment grade energy audit (IGEA) activities and the negotiation and execution of a GESPC, if pursued, specifically for water resources facilities. (Sustainability). This allows for an expansion of their scope of work and an increase in the contract amount for Energy Performance Owner's Representative Services.

The City solicited for owner's representative services in 2021 to facilitate the selection of a firm for conducting an Investment Grade Energy Audit (IGEA) of City facilities. The selected firm was also responsible for executing the IGEA activities and negotiating and executing a Guaranteed Energy Savings Performance Contract (GESPC), if pursued. Originally, the contract had a not-to-exceed value of $161,480 and was intended for the completion of one IGEA by a single firm. However, negotiations with the highest-ranked proposer for an IGEA of general fund facilities failed. As a result, the City awarded contracts to two firms, each with different scopes, timelines, and levels of complexity, thereby expanding the Owner's Representative's scope. The modification covers the additional responsibilities related to IGEA activities and the negotiation and execution of a GESPC if pursued, specifically for water resources facilities. If the City decides to pursue a GESPC for these water resources facilities, the associated fee of $199,654 will be incorporated into the self-funding GESPC contract. The allocated funds will then be available for other uses. 

The original contract was approved by City Council on May 12, 2022, in the amount not to exceed $161,480, the total amount of this contract including this modification is $361,134.

Approval