Title
RESOLUTION AUTHORIZING A ONE-YEAR EXTENSION TO CONTRACT 20814 WITH NORTHERN ENERGETICS IN THE AMOUNT OF $57,200, AND A NEW CONTRACT TOTAL AMOUNT NOT TO EXCEED $483,100.
Body
CITY PROPOSAL:
WHEREAS, the Duluth City Council previously approved Resolution 09-0061 on January 26, 2009, authorizing Contract 20184 with Northern Energetics for energy consulting services and audits; and
WHEREAS, the Duluth City Council previously approved Resolution 13-0001 on January 14, 2013, amending the contract to extend the services for an additional three years; and
WHEREAS, the city desires to continue its relationship with Northern Energetics by extending the contract for one year, beginning January 1, 2016, and ending December 31, 2016.
RESOLVED, that the proper city officials are authorized to execute a one-year extension of Contract 20814 with Northern Energetics to provide energy consulting services and audits for $57,200 in year 2016 payable from Home Energy Fund 555, Public Works and Utilities 500, Other Services and Charges 5441.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an amendment to Contract 20814 with Northern Energetics, substantially in the form of that attached as Exhibit A, to extend the contract for one additional year through December 31, 2016. The services will be provided for an amount not to exceed $57,200, as stated in their proposal dated September 18, 2015 and attached as Exhibit B.
Northern Energetics conducts energy audits of single and multifamily (1-4) units in conjunction with Minnesota Power’s electrical portion of the basic energy audit, and a thermal integrity audit for existing or potential gas customers. Both utilities offer this service as part of their conservation improvement programs as mandated by the Minnesota state department of commerce. By partnering to offer this service to mutual customers Comfort Systems and Minnesota Power have reduced their costs for the audits and give customers a more comprehensive energy audit that includes natural gas, electricity, and water utilities. This level of service provided to the utility customer could not be achieved by either utility if separate energy audit companies were selected to perform the audits offered by the utilities. Therefore, the city of Duluth public works and utilities department recommends continuing the current partnership with Minnesota Power to reduce program costs and deliver comprehensive energy audits by issuing a sole source contract to Northern Energetics.
Northern Energetics, located in Duluth, will continue to provide the same energy audit service as they have since 1996.
Requisition No. 2016-0027