HomeMy WebLinkAbout06. Public Hearing for Sun Edison Power Purchase AgreementsEngineering & Operations Committee November 24, 2014 Page 3 Staff Recommendation: Receive the information and provide input to staff if needed. 8. Receive report on updated Capital Improvement Budget (CIB) formatting (15 minutes) Staff Recommendation: Receive report and provide input to staff if needed. 9. Receive report regarding any projects approaching a budget overrun within the 15 percent General Manager authority, if needed (5 minutes) Staff Recommendation: Review and provide input to staff if needed. 10. Announcements a. Future scheduled meetings: Tuesday, December 9, 2014 at 12:30 p.m. (Special) 11. Suggestions for future agenda items 12. Adjournment * Attachment ' Standing Item • Central Contra Costa Sanitary District ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date. December 4, 2014 Subject: SET JANUARY 8, 2015 AS THE DATE FOR A PUBLIC HEARING TO CONSIDER AWARD OF THREE POWER PURCHASE AGREEMENTS TO SUN EDISON, LLC Submitted By: Initiating Dept. /Div.: Dan Frost Engineering Department Associate Engineer REVIEWED AND RECOMMENDED FOR BOARD ACTION: N. Hodges — Provisional Senior Engineer D. Gemmell — Environmental Services Division Manager Kent Alm J.M. Petit — Provisional Deputy General Manager Counsel for the District Roger S. Bailey General Manager ISSUE: California Government Code Section 4217.12 requires public agencies to hold a public hearing when considering award of energy services contracts or power purchase agreements. RECOMMENDATION: Establish January 8, 2015 as the date for a public hearing to consider awarding three power purchase agreements to Sun Edison, LLC for solar photovoltaic systems at the District's Household Hazardous Waste Facility, Collection System Operations Building, and Vehicle Maintenance Shop. FINANCIAL IMPACTS: None from this action. ALTERNATIVESICONSIDERATIONS: The Board of Directors could decide not to hold a public hearing and to not consider award of the three power purchase agreements to Sun Edison, LLC. BACKGROUND: In January 2013, the Board of Directors authorized the General Manager to execute a Memorandum of Understanding (MOU) for participation in the Regional Renewable Energy Procurement (R -REP) project, which would include three of the District sites in a collaborative bidding process with over 20 other public agencies. The District's three sites (Household Hazardous Waste Facility, Collection System Operations Building, and Vehicle Maintenance Shop) were evaluated and recommended for cost - effective solar power in a 2012 Solar Feasibility Study. In 2013 and 2014, Alameda County (lead agency for R -REP) completed an RFQ /RFP process in accordance with California Government Code Section 4217.10, et seq. Sun Edison, LLC was ultimately recommended for award of Bid Bundle M3, which includes the District's three proposed site for solar photovoltaic systems. California Government Code Section 4217.12 allows public agencies to execute power purchase agreements if the public agency holds a public hearing at a regular meeting C:\ Users \cgee\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \SZPPEJUP \PP for Hearing Date for Sun Edison PPAs 12- 4- 14.docx Page 1 of 2 POSITION PAPER Board Meeting Date: December 4, 2014 subject. SET JANUARY 8, 2015 AS THE DATE FOR A PUBLIC HEARING TO CONSIDER AWARD OF THREE POWER PURCHASE AGREEMENTS TO SUN EDISON, LLC and finds that the power purchase agreements are in the best interests of the public agency and that the anticipated cost to the public agency for electrical energy provided by the power purchase agreements will be less than the anticipated marginal cost to the public agency for other energy that would have been consumed by the public agency in the absence of the power purchase agreements. COMMITTEE RECOMMENDATION: The Engineering & Operations Committee reviewed this project at its meeting on , and recommended RECOMMENDED BOARD ACTION: Establish January 8, 2015 as the date for a public hearing to consider awarding three power purchase agreements to Sun Edison, LLC for solar photovoltaic systems at the District's Household Hazardous Waste Facility, Collection System Operations Building, and Vehicle Maintenance Shop. C:\ Users \cgee\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \SZPPEJUP \PP for Hearing Date for Sun Edison PPAs 12- 4- 14.docx Page 2 of 2