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HomeMy WebLinkAboutFIN-20-069 - P20-129 Consultant Services - Clean Fuel Standard Strategic Advisory & Program Development ServicesREPORT TO:Committee of the Whole DATE OF MEETING:2020-11-23 SUBMITTED BY:Ryan Scott,Manager of Procurement, 519-741-2200 ext. 7214 PREPARED BY:Adam Buchholtz, Associate Procurement Specialist519-741-2200 ext. 7217 WARD (S) INVOLVED:N/A DATE OF REPORT:2020-11-10 REPORT NO.:FIN-20-069 SUBJECT:P20-129 Consultant Services -Clean Fuel Standard Strategic Advisory & Program DevelopmentServices __________________________________________________________________________________________ RECOMMENDATION: That Proposal P20-129 Consultant Services -Clean Fuel Standard Strategic Advisory & Program Development Services, be awarded to Clearblue Ltd., Toronto, Ontario, at their estimated feeof $48,000.00, plus H.S.T. of $6,240.00, for a total of $54,240.00,for a one (1) year term with an option to renew for two (2) additional one (1) year terms,provided a satisfactory contract is executed. BACKGROUND: The Government of Canada is taking measures to reduce greenhouse gases (GHGs) over the o next 30 years. As part of the Paris Target of holding global warming to 2C, the federal government has set a target to reduce emissions by 30% by 2030 and 80% by 2050 from 2005 levels. In order to meet the objectives, the Government of Canada has implemented a carbon charge on natural gas and is developing a Clean Fuel Standard to reduce the lifecycle carbon intensity of fuels and energy used in Canada. The objective of the Clean Fuel Standard (CFS) is to reduce annual 30 million tonnes of in greenhouse gas emissions by 2030. The government intends to bring the gaseous class requirements into force in 2023. As a natural gas distributor, Kitchener Utilities will be a gaseous class Fossil Fuel Primary Suppliers (FFPS), and as such will have obligations to determine how to reduce the carbon intensity related to its distribution of natural gas. The City also has potential offset opportunities in both the Federal Output-Based Pricing System (OBPS) program and in voluntary markets. This contract is forconsulting services which will assist City staff obligation and associated financial risks under the Clean Fuel Standards, to assist with ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994for assistance. 1.iii - 1 strategies around the acquisition of credits under the CFS and to assist with the development of program initiatives. The utilization of a knowledgeable consultant in this emerging field is vital to developing successful, cost-effective credit generating strategies and mitigation and management of associated risks. REPORT: Proposalswere advertised publicly on the City of Kitchenerwebsite. Documents were downloaded by fifteen(15) interested parties and by the closing date of Tuesday October 13th, 2020,three(3)proposalshad been received. A listing of the responding parties follows for your reference: Clearblue Ltd.Toronto ON * GHD LimitedWaterloo ON ICF Consulting Canada, Inc.Ottawa ON The proposal submissions werereviewedand ratedbythe selection committee,L. Jones, Manager Gas Supply & Engineering, J. Chatterjee, Regulatory Analyst, and M. Kamphuis, Business Development & Conservation Strategist. The review committee met on Tuesday October 27, 2020, to review theratings of thecandidates. The committee recommends awarding the project to the highest rated proponentwith the second lowest price, Clearblue Ltd., Toronto, Ontario. The selection committee rated the proposal submissions on the following criteria: Experience/Intellectual Capital CapabilityMarket View/Intelligence/Regulatory Independence/Established Presence ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: through the delivery of core service. 1.iii - 2 FINANCIAL IMPLICATIONS: The net cost for this request for proposal(A), is fair and reasonable for a project of this scope and the upset limit is withinthe budget allowance (B) provided within the budget. Funding for this project is included within the approved budget. The estimated surplus (D) will remain within the account. ProposalP20-129 Consultant Services -Clean Fuel Standard Strategic Advisory & Program Development Services Estimated Cost ProposalP20-129 costs, including HST54,240.00 less: HST rebate on tender(6,240.00) Net Cost Being Awarded48,000.00 A - Estimated Cost48,000.00 C Funding Available Professional Service Consultant52,600.00 Total Budget52,600.00 B Estimated Surplus/(Deficit) (B -C) 4,600.00 D COMMUNITY ENGAGEMENT: INFORM council / committee meeting. ACKNOWLEDGED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services Department 1.iii - 3