HomeMy WebLinkAbout06.a. Power purchase agreements with Sun EdisonCentral Contra Costa Sanitary District
6-a.
BOARD OF DIRECTORS
POSITION PAPER
Board Meeting Date: December 18, 2014
Subject: RECEIVE PRESENTATION TO CONSIDER SETTING 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
D. Gemmell — Environmental Services Division Manager
J. Petit — Director of Engineering
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Kent Alm
Counsel for the
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: Receive presentation on power purchase agreements with Sun
Edison, LLC for solar photovoltatic panels at the District's Household Hazardous Waste
Facility, Collection System Operations Building, and Vehicle Maintenance Shop, and
establish January 8, 2015 at 2 p.m. as the date and time for a public hearing in
accordance with Government Code Section 4217.12 to consider awarding the three
power purchase agreements to Sun Edison, LLC for solar photovoltaic systems.
FINANCIAL IMPACTS: None from this action. However, if awarded, the three power
purchase agreements will provide approximately $300,000 in energy savings (20 -year
Net Present Value) over the 20 -year power purchase agreements term when compared
to continued import of PG &E grid power. If the power purchase agreements are
executed and Notice to Proceed has been issued by February 28, 2015, it is possible
that the District would receive a three percent price reduction resulting in additional
energy savings.
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
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POSITION PAPER
Board Meeting Date: December 18, 2014
Subject-, RECEIVE PRESENTATION TO CONSIDER SETTING JANUARY 8, 2015
AS THE DATE FOR A PUBLIC HEARING TO CONSIDER AWARD OF
THREE POWER PURCHASE AGREEMENTS TO SUN EDISON, LLC
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
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. At the December 4, 2014
Board Meeting, the Board of Directors voted to table this item to the December 18, 2014
Board Meeting. The Engineering & Operations Committee reviewed this project at its
December 9, 2014 meeting and recommended the Board move forward with setting and
conducting the public hearing on this matter.
RECOMMENDED BOARD ACTION: Receive presentation on power purchase
agreements with Sun Edison, LLC for solar photovoltatic panels at the District's
Household Hazardous Waste Facility, Collection System Operations Building, and
Vehicle Maintenance Shop, and establish January 8, 2015 at 2 p.m. as the date and
time for a public hearing in accordance with Government Code Section 4217.12 to
consider awarding the three power purchase agreements to Sun Edison, LLC for solar
photovoltaic systems.
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Edison PPAs 12 -18 -14 Final (2).docxN \ €NVRSEG \Position- Papers \Frost \2914 \1- 2- 18 -14 \PP for PH for -Sun- Edison RPAs- 4- 2 -1 &14-
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