HomeMy WebLinkAboutH-4 UB Staff Report - Extension of PSA APX Real Time ServicesExtension of APX PSA
April 6, 2020
Page 2
CONSENT ITEM
H-4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: APRIL 20, 2020
SUBJECT: EXTENSION OF PROFESSIONAL SERVICES AGREEMENT WITH APX
INC. FOR PROVISION OF REAL-TIME ENERGY SCHEDULING SERVICES
BACKGROUND:
The California Independent System Operator (ISO) and the North American Electric Reliability
Corporation (NERC) mandate that electric utilities interconnected within the California ISO
system maintain 24-hour Real-Time scheduling functions. Since Azusa does not maintain the
real-time energy scheduling functionality in-house, we contract for this mandatory service. APX,
Inc. (“APX”) has performed well in providing this service to Azusa Light & Water since 2015,
and Staff recommends extending the term of the existing agreement through June 30, 2023.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Approve Amendment No. 3 to the PSA with APX extending the term of the Agreement
through June 30, 2023 at no change in monthly cost;
ANALYSIS:
Real time scheduling is a very demanding and complex function, both from the stand point of
operational compliance and economics, and not every vendor can satisfy these requirements at an
acceptable service level. Additionally, changing vendors requires a significant amount of staff
time and training of the new service provider to successfully perform the required scheduling
services, which would disrupt operations and require a significant amount of staff time. APX was
the clear winner of a competitive solicitation conducted in 2015, and they have offered to
continue the scheduling services at the same rate for a period of three (3) years, without
escalation. A cursory review of the scheduling services market indicates that there are no new
competitors and APX would likely continue to be the lowest bidder in a new solicitation.
Accordingly, Staff recommends an extension of the existing service agreement with APX for an
additional three year period (through June 30, 2023) with no increase in the service fee of
$5,000/month.
APPROVED
CITY COUNCIL
4/20/2020
Extension of APX PSA
April 6, 2020
Page 2
FISCAL IMPACT:
Total annual service cost will be $60,000. Funds will be proposed to be budgeted for FY 2021 –
FY 2023 to cover the cost.
Prepared by: Reviewed and Approved:
Richard Torres Manny Robledo
Assistant Director of Utilities Director of Utilities Electric
Resource Management Operations
Reviewed and Approved:
Sergio Gonzalez
City Manager