Loading...
HomeMy WebLinkAbout2009-059-06/09/2009-APPROVING EXEMPTIONS TO THE USE OF A COMPETITIVE PROCESS FOR CONTRACTS FOR DEVELOPMENT AND DEMONSTRA RESOLUTION 2009-059 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING EXEMPTIONS TO THE USE OF A COMPETITIVE PROCESS FOR CONTRACTS FOR DEVELOPMENT AND DEMONSTRATION OF A COORDINATED AND INTEGRATED SYSTEM OF MIXED DISTRIBUTED ELECTRIC RESOURCES UNDER A GRANT FROM THE U.S. DEPARTMENT OF ENERGY WHEREAS, the City has applied for and been awarded grant funds from the U.S. Department of Energy ("DOE") in order to carry out a project intended to modernize and transform a portion of the electrical distribution system in Fort Collins (the "Project"); and WHEREAS the Project will include research, development and demonstration of a coordinated and integrated system of approximately 3.5 megawatts of mixed distributed resources in Fort Collins to achieve a twenty to thirty percent reduction in peak loads on multiple distribution feeders and to deliver improved efficiency and reliability; and WHEREAS, the mixed distributed electric resources to be utilized by the Project include renewable generation (solar) as well as rotary-based and inverter-based generation, and the Project will further emphasize the use of demand response methods; and WHEREAS, the City has worked with several cooperating government and private entities to create a unique combination of world-class research facilities, global industry leaders and local entrepreneurs to develop and plan the Project; and WHEREAS, the project partners working with the City to provide matching contributions and to implement the Project include Colorado State University, Larimer County, and the Governor's Energy Office (the "Public Entities"); and New Belgium Brewing Company, Advanced Energy Industries, Inc., Brendle Group, Eaton, Spirae, and Woodward Governor (the "Private Entities") (collectively referred to as the "Project Partners"); and WHEREAS, Spirae, Inc, assisted the City in creating the proposal that ultimately resulted in the award of grant funds and will provide necessary equipment and infrastructure; develop specifications for project equipment; install and commission equipment; create system level requirements, design and development; undertake research and development activities; implement the system; and provide project operations support; and WHEREAS, the amount budgeted for the services of Spirae, Inc is $2,355,200; and WHEREAS, The Brendle Group Inc, assisted the City in creating the proposal that ultimately resulted in the award of grant funds and will work with the Project Partners to define operational standards for demand response assets; participate in Project leadership and planning; coordinate with the DOE Cost and Benefit Analysis Team; and work with the City on developing a marketing and communications campaign to educate customers within FortZED and the larger community about the economic, social.and environmental outcomes of the Project; and WHEREAS, the amount budgeted for the services of The Brendle Group Inc is $404,318; and WHEREAS, New Belgium Brewing Company is located within the geographical area that is the subject of the grant, is a significant consumer of utilities and has agreed to provide the use of its facilities as a development site for technologies to be operated as part of the Project, and to acquire related equipment for installation on its site; and WHEREAS, the reimbursement budgeted to be paid to New Belgium Brewing Company for its involvement in the Project is $1,160,395; and WHEREAS, Woodward Governor Company has significant specific knowledge, skill and equipment necessary for completion of the Project, and has agreed to provide distributed generation controls and operating equipment and related technical and operational services and staff support for the Project; and WHEREAS, the reimbursement budgeted to be paid to Woodward Governor Company is $256,110; and WHEREAS, Eaton Corporation has significant specific knowledge, skill and equipment necessary for completion of the Project, and has agreed to provide electrical switchgear equipment and related technical and operational services and staff support for the Project; and WHEREAS, the reimbursement budgeted to be paid to Eaton is $314,000; and WHEREAS, Advanced Energy Industries, Inc., also has significant specific knowledge, skill and equipment necessary for completion of the Project, and has agreed to provide photovoltaic inverter equipment and related technical and operational services and staff support for the Project; and WHEREAS, the reimbursement budgeted to be paid to Advanced Energy Industries, Inc., is $99,000; and WHEREAS, the total cost of the Project is estimated at $11,052,942 and WHEREAS, the DOE grant funding for the Project totals $6,323,381, and the matching funds required for the Project total $4,729,561; and WHEREAS, in November 2008, the City Council adopted Resolution .2008-106, authorizing a Grant Agreement with DOE, which has since been signed on behalf of the City; and WHEREAS, in Resolution 2008-106, the City Council also authorized the execution of subrecipient agreements with each of the Project Partners, incorporating the requirements of the Grant Agreement and specifying the agreed upon grant funding and matching contribution shares; and 2 WHEREAS, since the adoption of Resolution 2008-106, in the course of final development of the agreements with Project Partners, staff has concluded that the City's arrangements with certain of the Project Partners constitute procurements that are subject to competitive purchasing requirements of the City Code; and WHEREAS, in light of the deadline for completion of the requirements of the Grant Agreement and the active involvement and collaboration with the Project Partners from the initial stages of development of the grant application for the Project, further delay in the final development and execution of the agreements with the Project Partners would likely jeopardize the Project and could potentially result in the loss of the Grant funding; and WHEREAS, Article IV, Section 8-161(d)(1)b. of the City Code authorizes the Purchasing Agent to contract for material or services where, although there exists more than one responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's financial interests or will substantially impede the City's administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has determined that although there exists more than one responsible source, a competitive process cannot reasonably be used or, if used, will result in a substantially higher cost to the City, will otherwise injure the City's financial interests or will substantially impede the City's administrative functions or the delivery of services to the public; and WHEREAS, the Purchasing Agent has submitted the requisite justification for said determination to the City Manager for approval; and WHEREAS, the City Manager has reviewed and approved the justification for this procurement; and WHEREAS, Section 8-161(d)(3) requires the City Manager to submit all procurements over Two Hundred Thousand Dollars ($200,000) to the City Council in an open meeting for final approval. NOW THEREFORE; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS 'that the Purchasing Agent is hereby authorized to contract with each of the Private Entities for the services and materials to be provided to the Project as an exemption to the City's competitive purchasing requirements. -3- Passed and adopted at an adjourned meeting of e ouncil of the City of rt Collins this 9th day of June A.D. 2009. Mayor ATTEST-- - City-Clark -4-