HomeMy WebLinkAboutFCS-17-147 - E17-102 Consultant Services Cap & Trade
REPORT TO: Committee of the Whole
DATE OF MEETING: 2017-08-28
SUBMITTED BY: Michelle Palmer, Director of Supply Services
519-741-2200 ext. 7214
PREPARED BY: Steve Rudak, Buyer, 519-741-2200 ext. 7213
WARD(S) INVOLVED: All
DATE OF REPORT: 2017-08-09
REPORT NO.: FCS-17-147
SUBJECT: E17-102 Consultant Services – Cap and Trade
___________________________________________________________________________
RECOMMENDATION:
That Expression of Interest E17-102 Consultant Services Cap and Trade be
awarded to Clear Blue Markets, Toronto, Ontario, at their fee of $46,800., plus
H.S.T. of $6,084., for a total of $52,884., based on a satisfactory contract being
negotiated and an upset fee being established, for a one (1) year term, with an
option to renew for two (2) additional, twelve (12) month periods.
BACKGROUND:
Greenhouse gas (GHG) emission compliance instruments (commonly referred to as
carbon allowances & credits) are a new commodity that must be procured, stored and
expensed under the legislated - Climate Change Mitigation and Low Carbon Economy
Act 2016, Cap and Trade Program. As a natural gas distributor, the City is required to
comply.
This contract is to solicit consulting services for the Cap and Trade program, to assist
with strategies around the acquisition of allowances and credits, to assist with the
development of program initiatives, and to mitigate inherent risks and exposures of the
cap and trade marketplace.
The allowance and offset markets are new in Ontario. The utilization of a
knowledgeable consultant in this emerging field is vital to developing successful, cost-
effective allowance and offset procurement strategies and mitigation and management
of associated risks.
*** This information is available in accessible formats upon request. ***
Please call 519-741-2345 or TTY 1-866-969-9994 for assistance.
REPORT:
In accordance with Chapter 170 of the Municipal Code pertaining to the Selection of
Professional Services/Consultants, a Consultant’s Review Committee was established
consisting of D. Persaud, Manager, Gas Supply Operations & Regulations, L.
Baillargeon, Manager, Asset Optimization, J. Chatterjee, Regulatory Analyst and S.
Rudak, Buyer.
Expressions of interest were advertised publicly on the City of Kitchener website and on
the internet through the Ontario Public Buyers Association Electronic Tendering
Information System relative to this project. Documents were downloaded by fourteen
(14) interested parties and by the closing date of Friday July 7, 2017, seven (7)
responses had been received.
The review committee met on Thursday July 20, 2017, to review the submissions and a
shortlist of three (3) candidates* was selected for further interviews. The Committee met
on Thursday July 27, 2017 to interview the shortlisted candidates. The Committee
recommends awarding the project to Clear Blue Markets, Toronto, Ontario.
The Committee rated consultants on the following criteria:
Intellectual Capital / Experience
Capability – Market View / Intelligence / Regulatory
Price
Independence / Established Presence
A listing of the responding parties follows for your reference:
Alpha Inception Kingswood Texas
Blackstone Energy Services Toronto ON*
ClearBlue Markets Toronto ON*
Golder Associates Ltd. Mississauga ON
Norval Consulting Ltd. Toronto ON
Tetra Tech Canada Ltd. Mississauga ON*
Zizzo Strategy Inc. Toronto ON
*Shortlisted candidates
ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN:
The recommendation of this report supports the achievement of the city’s strategic
vision through the delivery of core service.
FINANCIAL IMPLICATIONS:
Funding will be provided from the Carbon Administration cost centre operating budget
(5018900).
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City’s website with the agenda in
advance of the council / committee meeting.
PREVIOUS CONSIDERATION OF THIS MATTER:
• INS-16-067 - Ontario Cap and Trade Program – Bill 172, O.Reg. 144/16 Overview
and Compliance Strategy - September 12, 2016 Finance & Corporate Services
Committee; and
• INS-17-014 - Ontario Cap and Trade Compliance Update & Greenhouse Gas
Emission Compliance Instrument Purchasing Policy - May 1, 2017 Finance &
Corporate Services Committee
ACKNOWLEDGED BY: Dan Chapman, Deputy CAO & City Treasurer, Finance and
Corporate Services