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
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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.
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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--
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City-Clark
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