City Council
MEETING DATE: 8/10/2016
TITLE:
Title
Approve the installation of a Photovoltaic Carport System at the Civic Center
End
FROM:
Tami Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Authorize the City Manager to execute a Power Purchase Agreement to develop a photovoltaic carport system in the civic center parking lot under either option 1 or 2.
Option 1- New carport system only at $.1487kWh produced for 25 years
Option 2- New carport system and existing carport system at $.1317 for 20 years
Staff's recommendation would be to move forward with Option 2.
Body
BACKGROUND:
During the City Council's goal setting session earlier this year, staff was directed to explore the feasibility of a photovoltaic carport system at multiple locations on city owned property. At the June 29, 2016 Council meeting staff was directed to move forward with the project and the Civic Center only.
DISCUSSION:
Staff developed and completed a request for proposal ("RFP") during the month of April. The RFP was independently emailed to 26 potential providers as well as advertised and publicly noticed. Staff received four (4) responsive bidders to the RFP, which were Borrego Solar, NexTera Energy, Renova Solar and Stronghold Engineering. A maximum scoring system of 130 was developed based on project development, design and construction experience, project financing, material supply, operations and maintenance experience, rebate processing, Renewable Energy Credit ("REC") experience, energy production assurance, monitoring capabilities, team organization and qualifications, system design, performance projections, guarantees and warrantees, project schedule; and, a 10% add-on for an organization located in the Coachella Valley. The high scorer was Borrego Solar.
Borrego Solar has been in business since 1980 and is the 2nd largest provider of photovoltaic solutions in the United States. Borrego provides complete in-house services to include design, engineering, construction, financing, maintenance and operations. Borrego is a California Corporation headquartered in San Diego, CA and holds a California State General Contractors B license, C10 Electrical license and a C46 Solar license. Borrego has completed over 1100 projects totaling more than 220MW of solar installations of ground mount, carport and roof mounted systems. Borrego specializes in large scale, multi-site projects for schools, local and state governments, water agencies, IPP's (Independent Power Producers) like Southern California Edison and investor owned utilities. Borrego offered the best package, the most efficient panels and was the only vendor to physically inspect all the potential facilities.
To move forward, a Power Purchase Agreement ("PPA") will need to be developed to reflect ownership, maintenance and operations the responsibility of Borrego, as the owner of the new system and old system (should Council move forward with Option 2), and that Borrego will have an easement on city property to construct the new carport photovoltaic system.
FISCAL IMPACT:
Completing a PPA for the new system, Option 1 only, would be at a rate not to exceed $.1486kWh creating a net present value savings of approximately $302,450 over 25 years. To add our existing carport system to the PPA, Option 2, which would guarantee the maintenance and operations of the existing system (currently not under contract), the PPA rate would not exceed $.1317kWh, which would create a quicker positive cash flow than the previously presented 9 years and additional savings, however the term would not exceed 20 years. The net present value of the projected savings is $505,250 over the next 20 years should Option 2 be selected. The savings assume energy costs rise on average of 3.5% per year over the life of the project. Staff's recommendation would be to move forward with Option 2.
ATTACHMENTS:
None