HomeMy WebLinkAboutMINUTES - 07082014 - D.2RECOMMENDATION(S):
HEARING on the award of a construction contract to Team-Solar Inc. to install photovoltaic solar systems at six
County facilities.
1. OPEN the public hearing, RECEIVE public comments regarding the project specified in the Background section
below, CLOSE the public hearing.
2. FIND that notice of this public hearing held pursuant to Government Code section 4217.12 was given at least two
weeks in advance of this public hearing.
3. FURTHER FIND that the anticipated cost to the County for electrical energy provided by the solar photovoltaic
systems to be installed pursuant to the construction contract will be less than the anticipated marginal cost to the
County of electrical energy that would have been consumed by the County in the absence of the contract.
4. DETERMINE that the bid submitted by SunEdison, Inc. (“SunEdison”) complies with the requirements of the
County’s Outreach Program for this project, as provided in the project specifications, WAIVE any irregularities in
such compliance, and DETERMINE that SunEdison submitted the best value bid for this project and that the contract
terms are in the best interest of the County.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 07/08/2014 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: Steve Jordan (925)
313-2000
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 8, 2014
David Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc: PW Accounting, PW CPM Interim Division Manager, PW Energy Program Manager, PW CPM Clerical, Auditor's Office, County Counsel's Office,
County Administrator's Office, County Administrator's Office
D. 2
To:Board of Supervisors
From:Julia R. Bueren, Public Works Director/Chief Engineer
Date:July 8, 2014
Contra
Costa
County
Subject:AWARD Construction Contract for Photovoltaic Solar Systems at Six County Facilities
RECOMMENDATION(S): (CONT'D)
5. AWARD the construction contract for the project to Team-Solar Inc., a wholly owned subsidiary of SunEdison,
Inc. (“Team-Solar”), in the amount of $5,306,959 and DIRECT that the Public Works Director, or designee, shall
prepare the contract.
6. DETERMINE that Team Solar, as the best value bidder for the above project, has entered into a Project Labor
Agreement with the Contra Costa Building and Construction Trades Council to comply with the requirements of the
County’s Project Labor Agreement policy.
7. DIRECT Team-Solar to submit two good and sufficient security bonds (performance and payment bonds) in the
amount of $5,306,959 each and that Team-Solar and its subcontractors shall sign a Project Labor Agreement for the
project.
8. AUTHORIZE the Director of Public Works, or designee, to sign the construction contract with Team-Solar, after
Team-Solar has signed the contract and returned it, together with the bonds, the signed Project Labor Agreement,
evidence of insurance, and other required documents, and the Director of Public Works has reviewed and found them
to be sufficient,.
9. ORDER that, in accordance with the project specifications and/or upon signature of the contract by the Public
Works Director, or designee, any bid bonds posted by the bidders are to be exonerated and any checks or cash
submitted for security shall be returned.
10. AUTHORIZE the Public Works Director, or designee, to sign any escrow agreements prepared for this project to
permit the direct payment of retentions into escrow or the substitution of securities for moneys withheld by the
County to ensure performance under the contract, pursuant to Public Contract Code Section 22300.
11. AUTHORIZE the Public Works Director, or designee, to order changes or additions to the work pursuant to
Public Contract Code Section 20142.
12. DELEGATE, pursuant to Public Contract Code Section 4114, to the Public Works Director, or designee, the
Board’s functions under Public Contract Code Sections 4107 and 4110.
13. DECLARE that, should the award of the contract to Team-Solar be invalidated for any reason, the Board would
not in any event have awarded the contract to any other bidder, but instead would have exercised its discretion to
reject all of the bids received. Nothing in this Board Order shall prevent the Board from re-awarding the contract to
another bidder in cases where the successful bidder establishes a mistake, refuses to sign the contract, or fails to
furnish required bonds or insurance (see Public Contract Code Sections 5100-5107).
FISCAL IMPACT:
The County will incur debt to pay for the costs of the construction contract. The repayment of principal is expected
amortize over ten years and will be included in the occupancy costs for the buildings on which the solar photovoltaic
systems are installed. It is anticipated that the energy cost savings from the solar project will offset a portion of the
debt service cost over time.
In addition, the County will be receiving incentives from the California Solar Initiative over the next five years based
on the energy produced by the solar project. With both the savings in energy cost and receipt of the incentives from
the state, this project is expected to be revenue neutral through the repayment term and to provide significant utility
cost savings after repayment of the debt service.
BACKGROUND:
The County intends to install solar photovoltaic systems on six County buildings. Government Code Section
The County intends to install solar photovoltaic systems on six County buildings. Government Code Section
4217.10, et seq. authorizes public agencies to enter into energy conservation contracts on terms that its governing
body determines are in the best interest of the public agency if the determination is made at a regularly scheduled
public hearing and certain findings are made.
Contra Costa County is one of the nineteen Bay Area Participating Agencies in the Regional Renewable Energy
Procurement (“R-REP”) project. Engaging in a collaborative procurement process for renewable energy leads to a
reduction in renewable energy generation systems costs, transaction costs and administrative time, and enhanced
leverage for public agencies in the negotiations of renewable energy systems. One of the main objectives of the
R-REP solicitation was to achieve economies of scale through the collaborative procurement strategy. Contra Costa
County will also benefit from the installation of renewable energy through sustained reductions in utility operating
costs. In addition, the renewable energy projects will significantly contribute to achieving Contra Costa County’s
Municipal Climate Action Plan targets for reduced Greenhouse Gas Emissions from government operations.
Each agency participating in the R-REP signed a joint Memorandum of Understanding ("MOU"). The Board of
Supervisors approved the execution of the MOU on December 11, 2012. The MOU defines the roles and
responsibilities of the Participating Agencies and enabled the development of the R-REP Request for Proposal
("RFP") by Alameda County, as Lead Agency, and provided stability to the project during the solicitation process.
Nineteen agencies signed the MOU.
As part of the preliminary work performed in preparation of the RFP, Participating Agencies conducted feasibility
studies on sites to determine technical adequacy and financial benefit of installing solar power systems. Through this
process, six sites were selected in Contra Costa County to be included in the RFP. They are:
Juvenile Hall, 202 Glacier Drive, Martinez
Sheriff Coroner – Forensic Science Center, 1960 Muir Road, Martinez
Office of Emergency Services, 50 Glacier Drive, Martinez
Sheriff Patrol and Investigation, 1980 Muir Road, Martinez
Public Works, 255 Glacier Drive, Martinez
West County Health Center, 13601 San Pablo Avenue, San Pablo
Alameda County’s General Services Agency ("GSA") issued a hybrid, two-step solicitation for R-REP. This included
a Request for Qualification ("RFQ") to identify and prequalify providers of renewable energy power systems for
municipal facilities, followed by a RFP from the prequalified bidders. The solicitation was issued by Alameda
County GSA in its capacity as Lead Agency and on behalf of the other Participating Agencies, in accordance with the
terms of the MOU. The solicitation included 186 sites that were grouped into 11 bid bundles. Each bid bundle
comprised sites from across two or more agencies participating in the R-REP. Twelve vendors submitted qualified
proposals on January 14, 2014. The proposals were evaluated on the basis of experience of the contractor, the
technical elements of the proposal, price, and other relevant considerations in accordance with Government Code
Section 4217.16. The evaluation was conducted by the R-REP Selection Committee and it was determined that
SunEdison submitted the best value bid for Contra Costa County’s sites. On June 5, 2014, the Alameda County Board
of Supervisors approved the pool of R-REP Qualified Bidders thus enabling the other Participating Agencies to
negotiate contracts with the Qualified Bidders, as authorized in California Public Utilities Code Section 388.
On August 13, 2013, the Board found the project to be a California Environmental Quality Act (CEQA), Class 3(d)
Categorical Exemption, pursuant to Section 15303 of the CEQA Guidelines. As part of the R-REP process, bidders
were required to show prices for both a power purchase option and direct purchase option for each site. This
information was provided to the Finance Committee on May 29, 2014, and the Committee approved a direct
purchase approach on all six sites.
Contra Costa County staff has determined that SunEdison’s bid is responsive. Team Solar is the wholly-owned
construction subsidiary of SunEdison that was identified in SunEdison’s response to the Alameda County RFP. Using
a net present value analysis based on a system life of 25 years, this project will generate energy bill savings of $10.9
million. Total costs including construction, and operations and maintenance is $5.8 million and California Solar
Initiative rebates amount to $1 million. The County’s net benefit over 25 years is $6.1 million. The Public Works
Director recommends that the Board award the construction contract for this project to SunEdison in the amount of
$5,306,959 pursuant to Government Code Section 4217.16.
The general prevailing rates of wages, which shall be the minimum rates paid on this project, are on file with the
Clerk of the Board, and copies are available to any party upon request.
CONSEQUENCE OF NEGATIVE ACTION:
If the construction contract is not awarded, the project will not move forward resulting in the loss of California Solar
Initiative rebates and $6.1 million in savings.
CHILDREN'S IMPACT STATEMENT:
Not applicable.
CLERK'S ADDENDUM
CLOSED the public hearing; and ADOPTED the recommendations as presented