Resolution Exempting the Ashland Solar Pioneer II Project from a Performance Bonding Requirement
|Meeting Date:||November 6, 2007||Primary Staff Contact:||Dick Wanderscheid|
|Secondary Dept.:||Finance||Secondary Contact:||Lee Tuneberg|
|Approval:||Martha Bennett||Estimate Time:||5 minutes|
|Does the Council want to adopt a Resolution entitled "A Resolution exempting the Ashland Solar Pioneer II Project from a Performance Bonding Requirement?|
|Staff recommends that the Council adopt the attached Resolution|
|The City received approval from the IRS to sell up to $500,000 in Clean Renewable Energy Bonds (CREB's) in December, 2006. The PV system was bid out in May 2007 as a construction project. No acceptable bids were received. In July, the City Council granted an exemption from competitive bidding to re-bid the system using a point system to award the project. One of the reasons that the City only received 2 bids in May, was the standard construction project requirement for performance bonding was included.
When staff proposed to exempt the project from competitive bidding we requested that the performance bonding requirement would be replaced with a warranty. This was clearly stated in the Council Communication but unfortunately the actual resolution didn't reflect this. Therefore, the attached resolution removes this performance bonding requirement and the City will be able to re-bid the project using a warranty instead of a performance bond to ensure system reliability.
The revised RFP to re-bid this project has now been prepared, received legal review and can be issued after the attached resolution is adopted. We anticipate this would occur shortly, with bids due in early 2008. Keep in mind that re-bidding this project does not commit the City to building the project, but allows us to potentially get an acceptable bid should the City decide to move ahead with this project.
|Related City Policies:|
|1) Pass the attached Resolution granting an exemption from performance bonding for the Ashland Solar Pioneer II project.
2) Bid the project with a performance bonding requirement.
|Move to adopt the attached resolution exempting from performance bonding for design and construction of the Ashland solar Pioneer II Generation System Project.|
|Attachments: Click on the PDF file below to view the following attachments:|