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CONSIDERATION OF APPROVAL, REJECTION, AMENDMENT, POSSIBLE TRANSFER, AND/OR POSTPONEMENT OF CONTRACT K-2021-121: A CONTRACT BY AND BETWEEN BIOSTAR E LIGHT JV, LLC, THE NORMAN UTILITIES AUTHORITY, AND THE CITY OF NORMAN IN THE AMOUNT OF $4,775,000 FOR THE DESIGN, CONSTRUCTION, OPERATION AND MAINTENANCE OF A SOLAR PHOTOVOLTAIC SYSTEM TO PROVIDE ENERGY SAVINGS AND PRODUCTION GUARANTY; AND BUDGET TRANSFERS AS OUTLINED IN THE STAFF REPORT.
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BACKGROUND: On January 12, 2021, the City Council adopted Ordinance O-2021-28, which amended the City Code, Section 8- 204 to allow performance-based efficiency contracts as an exception to competitive bidding requirements for City contracts. Performance-based efficiency contracts are contracts "for the design, development, financing, installation and service of any improvement, repair, alteration or betterment of any building or facility owned, operated or planned by a public entity; or any equipment, fixture or furnishing to be added or used in any such building or facility; or any maintenance or operational strategy that is designed and implemented that will reduce utility consumption or lower operating costs, result in annual cost savings, generate additional revenues or avoid capital cost incurrence" {Oklahoma Statutes, Title 62. Section 318(A)(2)}.
Performance-based Efficiency Contracts are designed for a certain type of project; primarily projects where benefit exists in the form of savings or reduction in costs that offset the cost of the contract or service. The current version of Section 318 was adopted by the State Legislature in 2018 and made these types of contracts available to political subdivisions and public trusts, operating essentially as an exception to competitive bidding requirements.
With performance-based efficiency contracts, the public entity enters into a contract with a provider deemed by the public entity to be qualified to, among other things, finance performance-based efficiency projec...
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