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HomeMy WebLinkAboutMINUTES - 07102012 - C.91RECOMMENDATION(S): APPROVE and AUTHORIZE the Public Works Director, or designee, to execute the above contract amendment with Main Street Power (MSP), which would adjust the power output and project schedule for the solar panel system being installed for the County at the West County Detention Center (WCDC) site in Richmond. FISCAL IMPACT: Under its contracts with the County, MSP is paying the entire cost to acquire, construct, and maintain the solar panel system on the County facilities, including the WCDC site. With re-design of the system required for the WCDC site and engineering adjustments for other sites, the total estimated electricity cost savings to the County over the 20-year term of the contracts would decrease from approximately $516,000 to $96,182. However, the County would not be required to pay for the re-design, any additional construction costs incurred by MSP, or the decrease in power sale revenues. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 07/10/2012 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Candace Andersen, District II Supervisor Mary N. Piepho, District III Supervisor Karen Mitchoff, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Julie Bueren (925) 313-2201 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 10, 2012 David Twa, County Administrator and Clerk of the Board of Supervisors By: Carrie Del Bonta, Deputy cc: C. 91 To:Board of Supervisors From:Julie Bueren, Public Works Director Date:July 10, 2012 Contra Costa County Subject:Second Amendment to Contra Costa County Power Purchase Agreement (Non-New Markets Tax Credit Project Sites) with Main Street Power BACKGROUND: On September 28, 2010, the Board approved and authorized the execution of two Power Purchase Agreements with Main Street Power (MSP)—one for nine Non-New Markets Tax Credit sites and the other for three New Markets Tax Credit sites. Under its contracts with the County, MSP, at its expense, has completed installation of the solar panel system at eleven of the twelve County-owned sites. Solar power is now being supplied to the County at those eleven sites. On September 11, 2011, to make way for installation of a ground-mounted solar panel array at the twelfth site—the West County Detention Center (WCDC) site—MSP’s contractor cut eucalyptus trees in an area near the entrance to the East Bay Regional Park District Point Pinole Regional Shoreline. Since that time, Public Works staff has been working with MSP and the community to come up with a re-design of the solar panel system at the WCDC that is more environmentally sensitive. On June 26, 2012, the Board approved a re-designed project consisting of a carport system at the WCDC parking lot in place of the original ground-mounted system and approved a Negative Declaration pursuant to the California Environmental Quality Act (CEQA) to allow the re-designed project to move forward. With the re-design of the system at the WCDC site, the solar panels at that site will be smaller in size and will consequently produce less electricity (solar power). According to MSP’s calculations, which have been checked by County staff, annual power production at the WCDC site would decrease from 1,592,924 to 1,211,751 kWh—a decrease of 381,173 kWh for the WCDC site. In addition, when the solar power system was installed at the eleven other County sites, field engineering adjustments were made at five sites that also resulted in a decrease in annual power production from 2,277,182 to 1,853,165 kWh—a decrease of 424,017 kWh for those sites. When the MSP contracts were approved by the Board in September 2010, it was estimated that the contracts would give the County approximately $516,000 in electricity cost savings over the 20-year term of the contracts and would replace standard PG&E power with more environmentally sensitive solar power. With the 805,190 kWh decrease in estimated power production at the WCDC site and the other five sites, it is now estimated that the County’s electricity cost savings over the 20-year term would be $96,182. Under MSP’s contracts with the County, MSP guarantees delivery of at least 80% of the solar power output listed for each of the twelve County-owned sites. An administrative amendment previously signed by the Public Works Director has already revised the power output figures listed in the contracts to reflect the field engineering adjustments made at five of the completed sites. MSP has now proposed a second amendment to the contract for the Non-New Markets Tax Credit sites, including the WCDC site, to formally reflect the reduced solar power output at the nine sites covered by that contract and the revised construction schedule for completion of the re-designed system at the WCDC site. Public Works staff recommends that the Board approve the second amendment to the contract for the nine Non-New Markets Tax Credits sites and authorize the Public Works Director, or designee, to sign the amendment for the County. Recently, MSP has claimed substantial extra expenses incurred for the system re-design at the WCDC site, for construction of the re-designed system at the WCDC site, and for the decrease in power sale revenues at the WCDC site. However, MSP has now given assurances that the proposed amendment would resolve those claims at no expense to the County, and the Board’s approval would be contingent on that basis. Under the arrangement with MSP, the County would be responsible for the cost of replanting trees and other landscaping to replace the eucalyptus trees cut by MSP’s contractor in September 2011. CONSEQUENCE OF NEGATIVE ACTION: The amendment will not be executed to revise the contract for the Non-New Markets Tax Credit sites. CHILDREN'S IMPACT STATEMENT: None.