HomeMy WebLinkAboutMINUTES - 02262002 - SD7 TO: BOARD OF SUPERVISC NS CONTRA
FROM: BARTON J. GILBERT, DIRECTOR OF GENERAL SERVICES COSTA
DATE: FEBRUARY 26, 2002 COUNTY
SUBJECT: HEARING ON PROPOSALTO ENTER INTO AN ENERGY
SERVICE CONTRACT WITH POWERLIGHT INC. TO
PURCHASE AND INSTALL PHOTOVOLTAIC CELLS AND
APPROVAL OF SAID CONTRACT `
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION
1. FIND that it is in the best interests of the County to enter into an energy service contract with
Powerlight Inc. pursuant to California Government Code Section 4217.12, to install photovoltaic
cells at the Martinez Detention Facility, 1000 Ward Street, Martinez, and at 50 Douglas Drive, also
in Martinez.
2. FURTHER FIND that the anticipated cost to the County for this contract, $1,089,754, will be less
than the cost of energy that would have been consumed by the County in the absence of this
project. Specifically, it is estimated that the two solar projects will generate 379,120 kWH per year
of electricity, reducing County expenses by approximately $79,000 initially at current energy rates.
3. FURTHER FIND that the project is a California Environmental Quality Act (CEQA) Class la
Categorical Exemption; DIRECT the Director of Community Development to file a Notice of
Exemption with the County Clerk; and further DIRECT the Director of General Services to arrange
for payment of the $25.00 handling fee to the County Clerk for filing the Notice of Exemption and a
$25.00 handling fee to Community Development for administration processing costs.
4. APPROVE, at the conclusion of the Public Hearing, contract with Powerlight Inc. in an amount not
to exceed $2,200,000 for installation of photovoltaic cells at the Martinez Detention Facility and at
50 Douglas Drive, both in Martinez, beginning February 1, 2002 and ending December 31, 2002
0. and AUTHORIZE the Director of General Services or his designee to sign the contract.
5. APPROVE, at the conclusion of the Public Hearing, the County entering into a contract with PG&E
under the "Self-Generation Incentive Program," to obtain an amount not to exceed $1,200,000 in
financial incentives from PG&E for the installation of the solar electric systems at these two sites
and AUTHORIZE the Director of General Services or his designee to sign the contract.
CONTINUED ON ATTACHMENT: X YES SIGNATURE: &�Uza&
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): -- --
ACTION OF BOARD ON IF'ohmAry 26 ?M7 _ APPROVED AS RECOMMENDED OTHER
CLOSED the Public Hearing; ADOPTED the above reCO[Ct11-ndat:ions.
VOTE OF SUPERVISORS
X UNANIMOUS(ABSENT None
AYES: NOES:
ABSENTS: ABSTAIN:
MEDIA CONTACT:BARTON J.GILBERT(313-7100)
Originating Dept.:General Services Department I HEREBY CERTIFY THAT THIS IS A TRUE
cc: General Services Department AND CORRECT COPY OF AN ACTION TAKEN
Administration AND ENTERED ON THE MINUTES OF THE BOARD
Accounting OF SUPERVISORS ON THE DATE SHOWN.
County Administrator's Office
Community Development ATTESTED 1 bruary 26, 2(X12
County Counsel JOHN SWEETEN,CLERK OF THE BOARD OF SUPERVISORS
Auditor-Controller(via GSD) ,— AND COUNTY,ADMINIS-FkATO ,',
b,
BY DEPUTY
i
F:\Board Orders\BO Hearing Proposal EnergySvoContractwPowerlightFeb282002.docPage 1 oft M382(10/88)
HEARING ON PROPOSALTO EN a ER INTO AN FEBRUARY 26, 2002
ENERGY SERVICE CONTRACT WITH
POWERLIGHT INC. TO PURCHASE AND
INSTALL PHOTOVOLTAIC CELLS AND
APPROVAL OF SAID CONTRACT
FINANCIAL IMPACT
The projected cost of the installation of photovoltaic cells at both the Martinez Detention Facility and
at 50 Douglas Drive is $2,010,508. In addition, required roof modifications at both sites are estimated
to cost $80,000, for a total project cost of$2,090,508.
As established by the California Public Utilities Commission and administered by PG&E, the "Self
Generation Incentive Program" provides financial incentives to customers who install clean onsite
distributed generation. The proposed solar electric systems for these two sites qualify for this
program and to that end, PG&E has confirmed the reservation of a grant in the amount of$1,009,754.
The remaining project cost of $1,089,754 will be funded initially through an appropriation adjustment
from undesignated funds in the Plant Acquisition Budget. These funds will be reimbursed later this
spring, as part of the County's larger Public Financing Authority Lease Revenue Bond, Series 2002
bond issue. Previous analysis by staff has revealed that use of debt financing will result in a higher
internal rate of return compared to a simple upfront payment of this balance.
BACKGROUND
In March 2001, the Board of Supervisors adopted the Energy Reduction Action Plan and requested
that staff investigate opportunities for alternative energy generation such as solar energy.
Concurrently with the implementation of the Energy Reduction Action Plan, the Internal Operations
Committee of the Board proposed a policy regarding sustainability in County facilities. The
sustainability guidelines promote a life cycle approach to facility decisions. The recommendation of
the Committee, adopted by the Board in August 2001, calls for evaluating energy efficiency
improvements and other sustainability measures as if they were an investment. On December 18,
2001, the Board approved the installation of solar electric projects at the Martinez Detention Facility,
and at 50 Douglas Drive, also in Martinez.
California Government Code Sections 4217.12 and 4217.13 permit public agencies to enter into
energy service contracts without a formal bid process so that "economic benefits may be maximized
and financing and other costs associated with the design and construction of projects may be
minimized." The energy saving projects at the Martinez Detention Facility and 50 Douglas Drive,
Martinez meet the conditions of the Code sections.