Title
Additional Contract Expenditure for Management of Energy Services with Kinect Energy (Ordinance S-44761)
Description
Request to authorize the City Manager, or his designee, for additional payment authority for the contract with Kinect Energy, Inc. (Contract 135518) to provide consulting services for management of energy services, in an amount not to exceed $102,000 over the life of the contract. Further request authorization for the City Controller to disburse all funds related to this item.
Report
Summary
The Aviation Department desires to participate in the Public Works Department's contract with Kinect Energy, Inc. (Kinect) to provide consulting services for management of energy services to support the new Arizona Public Service (APS) AG-X rate rider. The APS AG-X program allows the Aviation Department to procure electrical power through a Generation Service Provider (GSP), a third-party entity that provides wholesale power. Kinect's services will include the electricity market analysis to determine the best prices and make recommendations for block pricing for fixed periods of time, conduct negotiations with third-party power providers, assist with selection of GSP, and review invoices to ensure accurate rates are reflected.
Contract Term
The current contract term is in effect through Feb. 28, 2019 with four one-year extension options.
Financial Impact
The total value for the Aviation Department will not exceed $102,000 for the entire contract term; these funds are available in the Aviation Department. The revised aggregate value for the full contract will not exceed $10,565,611; remaining funds are available in the Public Works Department.
Location
Phoenix Sky Harbor International Airport, 3400 E. Sky Harbor Blvd.; Deer Valley Airport, 702 W. Deer Valley Road; and Phoenix Goodyear Airport, 1654 S. Litchfield Road, Goodyear, Ariz.
Council Districts: 1, 8 and Out of City
Department
Responsible Department
This item is submitted by Deputy City Manager Deanna Jonovich and the Aviation Department.