Title
Resolution to Approve a Purchase Order to D.J. Wheeler Hydro Electric Services Inc in the Amount of $29,181.00
Memorandum
Attached for your approval is a resolution to authorize a purchase order to D.J. Wheeler Hydro Electric Services Inc. in the amount of $29,181.00.
The existing electronic governor for Barton Hydroelectric Generation equipment is about 25 years old, requiring frequent adjustments and is showing signs of unreliability. In addition, it is limiting our ability to fine tune the controls to comply with the regulatory requirements for Barton Hydro. Non-compliance with the regulations can result in civil penalties up to a maximum of $11,000.00 per day, per violation or may revoke the license. Therefore, we need to replace the existing the existing electronic governor.
At the City's request, D.J. Wheeler Hydro Electric Services submitted a proposal in the amount of $29,181.00 to furnish and install the necessary hardware, and modify the existing operations and controls program to integrate the new hardware. D.J. Wheeler Hydro Electric Services developed the algorithm and the original program for controls equipment at the dams. Since installation of the new equipment requires modifications to the controls program that D.J. Wheeler Hydro Electric Services developed and D.J. Wheeler Hydro Electric Services understands thoroughly the regulatory requirements for the City's dams, D.J. Wheeler Hydro Electric Services is uniquely qualified to perform this work and it is in the City's best interest that D.J. Wheeler Hydro Electric Services performs the work. Therefore, this is a sole source procurement.
D.J. Wheeler Hydro Electric Services Inc received HR and Living Wage approvals on May 11, 2010.
We are recommending approving the Purchase Order to D.J. Wheeler Hydro Electric Services in the amount of $29,181.00. This purchase order is to be funded from FY10 Hydropower Operation Budget and funds to be available until expended without regards to the fiscal year.
Staff
Prepared by: Sumedh Bahl, Interim Community Services Area Administrator
Reviewed by: Sue F. McCormick, Public Services Area Administrator
Approved by: Roger Fraser, City Administrator
Body
Whereas, The existing electronic governor for Barton Hydroelectric Generation equipment is about 25 years old and unreliable;
Whereas, The existing governor needs to be replaced as malfunction of the governor has serious consequences including non-compliance with regulatory requirements, fines and revocation of license;
Whereas, At the City's request D.J. Wheeler Hydro Services Inc. submitted a quotation in the amount of $29,181.00 to furnish and install the new electronic governor and associated controls' programming modifications;
Whereas, The Electronic Governor Replacement at Barton Hydro is sole sourced to D.J. Wheeler Hydro Electric Services Inc. because it developed the original controls program for equipment controls at the City dams, thoroughly understands the regulatory operational requirements for the City owned dams, and this work requires modifications to the existing controls program that was developed by D.J. Wheeler Hydro Electric Services; and
Whereas, D.J. Wheeler Hydro Electric Services Inc received HR and Living Wage approvals on May 11, 2010;
RESOLVED, That Council approves a purchase order to D.J. Wheeler Hydro Services Inc in the amount of $29,181.00 to furnish and install the necessary hardware, and modify the existing operations and controls program to integrate the new hardware at Barton Hydro;
RESOLVED, That this Purchase Order be funded from the FY 10 Hydropower Operation Budget and funds to be available until expended without regards to the fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.