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HomeMy WebLinkAbout03.h. Set public hearing re awarding three power purchase agreements to Sun Edison, LLCCentral 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, Associate Engineer Engineering /Environmental Services REVIEWED AND RECOMMENDED FOR BOARD ACTION: N. Hodges — Provisional Senior Engineer V-- /11 �ti�.g D. Gemmell — Environmental Services Division Manager Rogers. Bailey J. Petit — Provisional Deputy General Manager Counsel for the District 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 at 2 p.m. as the date and time 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. ALTERNATIVES /CONSIDERATIONS: 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 sites 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 and finds that the power purchase agreements are in the best interests of the public C:\ Users\ danderson \AppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP for PH for Sun Edison PPAs 12 -4 -14 Final.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 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 November 24, 2014 meeting and recommended the Board move forward with setting the public hearing on this matter. 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\ danderson \AppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \PP for PH for Sun Edison PPAs 12 -4 -14 Final.docx Page 2 of 2