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HomeMy WebLinkAboutMINUTES - 07132010 - C.100RECOMMENDATION(S): 1. APPROVE two 20-year Power Purchase Agreements (PPA) with Main Street Power (MSP) to install photo-voltaic panels on County-owned property at 13 locations. 2. AUTHORIZE the General Services Director to EXECUTE the Power Purchase Agreements. 3. DETERMINE that the above project is a Class 1 (a) Categorical Exemption under the California Environmental Quality Act (CEQA). 4. DIRECT the Director of the Department of Conservation and Development, or designee, to file a Notice of Exemption with the County Clerk, and DIRECT the Director of General Services, or designee, to arrange for the payment of the handling fees to the Department of Conservation and Development and County Clerk for the filing of the Notice of Exemption. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/13/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS Contact: Mike Lango (925) 313-7120 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: July 13, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: , Deputy cc: GSD Admin, Auditor-Controller, GSD-Purchasing, GSD-Accounting, GSD Contracts/Grants C.100 To:Board of Supervisors From:Michael J. Lango, General Services Director Date:July 13, 2010 Contra Costa County Subject:Approve Power Purchase Agreements with Main Street Power to Install Solar Panels at 13 County Facilities FISCAL IMPACT: Total estimated electricity cost savings from the agreements is $577,776 for the first five years and $851,265 over the entire twenty year term of the PPAs. BACKGROUND: In 2004, Contra Costa County adopted a Strategic Energy Plan (SEP). The SEP recommended various energy efficiency improvements in four categories: 1) Energy Efficiency Projects, 2) Supply Side Opportunities, 3) Organizational Advancement, and 4) New Construction and Facility Renewal. The installation of photo-voltaic panels falls under the Supply Side Opportunities category of the SEP. In 2005, AB32 was enacted by the State of California, which requires a statewide greenhouse gas reduction to 1990 levels by 2020. Following passage of AB32, the Board of Supervisors approved the County's Municipal Climate Action Plan (MCAP) in 2008. Since the County exceeded AB32's 2020 target for its municipal operations, the Board of Supervisors set goals for 2030 of greenhouse gas reductions of 3,800 MTCO2e (metric tons of carbon dioxide emissions) every five years beginning in 2010. The PPAs will allow the County to purchase 4,252,930 kWh of electricity annually from renewable self-generation, which is the equivalent of reducing annual greenhouse gas emissions by 1,013 MTCO2e. This represents over 25% of the County's greenhouse gas reduction for the 2010-2015 year period. Main Street Power will be responsible for all aspects of the solar installation projects including design, permitting, equipment acquisition, construction, commissioning, and maintenance of the installed photo-voltaic panels. Main Street Power is committed to using local labor and materials for and installation of the photo-voltaic panels at the following locations: Ground-Mounted Solar Installations 4491 Bixler Road, Byron (Byron Boys Ranch) 5555 Giant Highway, Richmond (West County Detention Facility) 4800 Imhoff Way, Martinez (Animal Services) 2530 Arnold Drive, Martinez (Summit Centre office building) 12000 Marsh Creek Road, Clayton (Marsh Creek Detention Facility) Roof-Mounted Solar Installations 5555 Giant Highway, Richmond (West County Detention Facility) 2467 Waterbird Way, Martinez (GSD Maintenance Facility) 2475 Waterbird Way, Martinez (Public Works Maintenance Facility) 4545 Delta Fair, Antioch (Employment & Human Services) 1750 Oak Park Boulevard, Pleasant Hill (Library) 1305 MacDonald Avenue, Richmond (Employment & Human Services) 1650 Cavallo Road, Antioch (Employment & Human Services) 300 South 27th Street, Richmond (Headstart Facility) In September 2009, Main Street Power approached the County to install photo-voltaic systems for County buildings located in “distressed qualified census tracts” as defined by the Internal Revenue Service. The photo-voltaic systems that fall into this category qualify for Federal New Market Tax Credits (NMTC). Since that time, GSD Energy Program staff have been working with Main Street Power to identify suitable County facilities for solar energy projects. The proposed PPAs are the result of these efforts. The PPAs obligates the County to purchase all electricity produced by Main Street Power's photo-voltaic panels rather than from PGE. There is no cost to the County for the purchase and installation of the photo-voltaic panels. Three of the photo-voltaic locations qualified for Federal New Market Tax Credits (NMTC). The electricity purchase price for these locations will be set at a fixed, below-market rate for the first seven years. The ten other locations did not qualify for NMTC status. The electricity purchase price for these locations will be set at a fixed, below-market rate for the first five years. When the fixed rate period expires, the electricity purchase price will be reset to a market rate in accordance with the rate provision in the PPAs. The estimated savings is based upon paying Main Street Power a lower rate for electricity than PGE and avoiding PGE rate increases during the fixed rate period. After the fixed rate period, the County has the option to purchase the photo-voltaic panels at fair market value and pay no cost for the electricity produced by the photo-voltaic panels. To date, Main Street Power has surveyed all the proposed locations, hired electrical and structural engineers, developed proposed photo-voltaic systems at each location, and filed reservations for California Solar Initiative performance based incentives with PGE. These incentives allow Main Street Power to offer electricity prices at below market rates consistent with the fixed electricity rate pricing during the initial term of the PPAs, five and seven years respectively. Thereafter, the California Solar Initiative incentives will expire and the electricity rate will adjust to market. The proposed PPAs are permissible pursuant to California Government Code Section 4217.16, which provides public entities the authority to sole-source award energy conservation and alternate energy supply projects to energy services companies (ESCO's) that are intended to maximize energy savings potential while maintaining or improving building efficiency. CLERK'S ADDENDUM RELISTED to July 27, 2010 as a hearing item.