MEMORANDUM TO COUNCIL TO: MAYOR AND CITY COUNCIL MEMBERS FROM: DAN WINTERS, DIRECTOR OF PUBLIC UTILITIES THRU: NANCY PETERSON, INTERIM CITY MANAGER DATE: OCTOBER 24, 2017 RE: RESOLUTION 2017-63 – A RESOLUTION OF THE UNALASKA CITY COUNCIL AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH V3 ENERGY, LLC, TO PERFORM THE WIND POWER DEVELOPMENT & INTEGRATION ASSESSMENT PHASE II PROJECT IN THE AMOUNT OF $45,481. SUMMARY: From 2003 to 2005, a Phase 1 analysis of the feasibility for wind energy in Unalaska was conducted by Northern Power Systems. Phase II of that project was never realized due to the inability of windmills of that era to withstand Unalaska’s wind speeds. Due to recent interest by the Unalaska City Council in renewable energy, coupled with the availability of new technology, the City of Unalaska Department of Public Utilities let a Request for Qualifications (RFQ) for Phase II of the Wind Power Development and Integration Assessment Project. Resolution No. 2017-63 will award the Phase II work to V3 Energy, LLC for $45,481 PREVIOUS COUNCIL ACTION: In 2003, Unalaska City Council approved the Wind Integration Assessment Project through Ordinance 2003-11. In FY2018 Council funded the Wind Power Development and Integration Assessment Project through Capital Budget Ordinance 2017-07 by providing $200,000 from the General Fund. BACKGROUND: In 1999, a Wind Energy Feasibility Study of Unalaska was conducted for the State of Alaska’s Division of Energy. In 2000, the US Department of Energy conducted an Energy Assessment for Unalaska as potential sites for future wind turbine development, in which Unalaska was ruled out due to the potential of excessively high wind speeds. In 2005, the City provided funding to complete its own Phase I Analysis report. The Phase I report was not finalized and Phase II was not initiated at that time due to tower site location issues and the inability of the technology to withstand Unalaska’s wind speeds. These reports were included for Proposers’ use with the Request for Qualifications. Recently, Council has directed Staff to look into harnessing wind power to supplement our 20 MW generating capacity. To that end, a Request for Qualifications to find an engineering firm to develop a full assessment of the potential for wind power generation Page 1 of 3 including detailed costs for development and integration was let on August 9, 2017. The Technical Proposals were due on September 20, 2017, and Price Proposals on October 4, 2017. DISCUSSION: To re-boot the discussion on wind power in Unalaska, the Request for Qualifications’ Scope of Services asked for respondents to develop a data collection plan addressing the following items: Current electric system power analysis to analyze feasibility for sizing and penetration into the remote micro-grid system, taking into account current and future electric production demands. Gather all available data, including the draft 2005 Phase I Study. Review and analyze available data, conduct site visit, to evaluate potential sites and needed equipment. An analysis of 5 sites is expected. Recommend and specify meteorological tower (MET) site location(s) and MET tower configuration based on anticipated height under boom (HUB) height for approximately 500-KW turbines under local wind and icing loads. The City anticipates a low penetration system. Identify environmental concerns. Identify needed permits and obtain them for up to 5 MET sites. The City of Unalaska will provide property access if needed. The City of Unalaska will help identify land use requirements, provide ARC-GIS maps and AUTOCAD single line of the utility, topographic maps, provide high resolution power production load data, and provide customer metering information. Identify MET site power needs, data storage retention, remote monitoring requirements, and associated costs. Determine MET tower equipment for the recommended site(s) and costs associated with acquiring a site(s), equipment installation, and data collection and monitoring. See Phase III. Summarize information in a written report. City of Unalaska review should be expected at the 65% and 95% levels. Staff received Technical Proposals from V3 Energy, Coffman Engineers, Northern Power Systems, and WH Pacific. A team of employees of the Departments of Public Utilities, Public Works and Planning scored them. The results of that scoring deemed V3 Energy, LLC and Coffman Engineers, Inc. the top two proposers. Those entities were then interviewed and price proposals opened. After combining the Technical and Price Proposal Scoring, V3 Energy was deemed the best organization to perform the Phase II work. V3’s team includes subcontractors with a strong history and knowledge of Unalaska including Mike Hubbard of The Financial Engineering Company. Page 2 of 3 ALTERNATIVES: Council could elect to re-advertise the Request for Qualifications. FINANCIAL IMPLICATIONS: The project is funded through the General Fund in the amount of $200,000 and fully able to support the award of this work. LEGAL: The City Manager will determine whether a legal opinion is required. STAFF RECOMMENDATION: Staff recommends awarding the work to V3 Energy, LLC, for $45,481. PROPOSED MOTION: I move to approve Ordinance 2017-63. CITY MANAGER’S COMMENTS: The City Manager recommends approval of Resolution 2017-63. V3’s proposal and project team demonstrate a solid understanding of the work and the experience to complete this project on behalf of the City. Attachments: A- RFQ B- V3 Technical Proposal C- Coffman Technical Proposal D- V3 Cost Proposal E- Scoring Summary and Schedule of Fees F- Form of Agreement Page 3 of 3 Request for Proposals Analysis of the City of Unalaska Wind Power Development and Integration Assessment Project Phases II to IV DPU Project No. 41-250 Prepared by: City of Unalaska Department of Public Utilities PO Box 610 Unalaska, Alaska 99685 August 9, 2017 Request for Proposals – Analysis of the City of Unalaska Wind Power Development and Integration Assessment Project – Phases II to IV ____________________________________________________________________________ TABLE OF CONTENTS 1.0 INTRODUCTION ................................................................................................................ 1.1 1.1 BACKGROUND .................................................................................................................. 1.1 2.0 SELECTION PROCESS ..................................................................................................... 2.4 2.1 EVALUATION AND AWARD PROCESS ............................................................................ 2.4 2.2 CONDITIONS ..................................................................................................................... 2.5 2.3 TRANSMITTAL REQUIREMENTS ..................................................................................... 2.6 2.4 DOCUMENT REQUIREMENTS ......................................................................................... 2.6 3.0 EVALUATION FACTORS .................................................................................................. 3.7 3.1 PROFESSIONAL QUALIFICATIONS ................................................................................. 3.7 3.2 EXPERIENCE AND REFERENCES ................................................................................... 3.8 3.3 NARRATIVE WORK PLAN ................................................................................................. 3.8 3.4 PRICE PROPOSAL ............................................................................................................ 3.8 4.0 SCOPE OF SERVICES .................................................................................................... 4.10 5.0 DELIVERABLES .............................................................................................................. 5.13 LIST OF ATTACHMENTS Attachment A References Attachment B DRAFT Consulting Services Agreement Attachment C Evaluation Score Sheet Request for Proposals – Analysis of the City of Unalaska Wind Power Development and Integration Assessment Project – Phases II to IV ____________________________________________________________________________ LIST OF ACRONYMS DOE Department of Energy DPU Department of Public Utilities EA Environmental Assessment MET Meteorology Tower MW Megawatt ORC Organic Rankin Cycle PDF Portable Document Format RFP Request for Proposals ROM Rough Order of Magnitude UCO Unalaska Code of Ordinances Request for Proposals – Analysis of the City of Unalaska Wind Power Development and Integration Assessment Project – Phases II to IV ___________________________________________________________________________ 1.0 INTRODUCTION This is a RFP by the City of Unalaska Department of Public Utilities for an Analysis of the City of Unalaska Wind Power Development and Integration Assessment Project – Phases II to IV. All questions about this RFP must be directed to the Deputy Director of Public Utilities only. City of Unalaska - Department of Public Utilities JR Pearson, Deputy Director of Public Utilities [email protected] P.O. Box 610 Unalaska, AK 99685 Phone 907-581-1260 x8108 Interpretations or clarifications considered necessary by the City of Unalaska in response to such questions will be issued by Addenda. Addenda will be emailed to all registered potential Respondents and also posted on the City of Unalaska website: http://www.ci.unalaska.ak.us/rfps. 1.1 BACKGROUND This description is provided for general informational