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City recommends sole‑source five‑year contract with McCoy Power Consultants for waste‑energy regulatory compliance
Summary
Staff recommended extending a sole‑source services contract with McCoy Power Consultants for NERC/FERC regulatory compliance at the city's waste‑to‑energy facility, citing long experience, proprietary tracking software and the high fines for noncompliance. Staff recommended a five‑year term at $100,000 per year.
City staff asked the committee to approve a sole‑source contract with McCoy Power Consultants to provide regulatory compliance services for the city's waste‑to‑energy facility.
Staff explained the waste‑energy facility is a generator operator subject to FERC/NERC reliability requirements, regional oversight by the Western Electricity Coordinating Council, and data submissions to the regional entity. The presenter said noncompliance fines can be large—examples cited included hundreds of thousands of dollars and, in one high‑profile case cited by staff, a $10 million fine.
Staff said McCoy Power Consultants was founded in 2008 by a former WEC vice president and director of compliance and has proprietary software that tracks applicable regulations for facilities, collects data and submits required reports. The city began using McCoy in 2012 and, staff said, has not incurred fines or findings since contracting with them.
Because of the specialized nature of the work, the presenter recommended a sole‑source five‑year contract at $100,000 per year ($500,000 total) to maintain continuity and reduce risk from a conversion. Staff noted conversion carries transition costs and a risk of lapses that could result in penalties.
The committee did not take a final vote at the briefing but staff framed the sole‑source recommendation around risk mitigation and the vendor's domain expertise.
