june 5, 2014 honorable board of supervisors subject: … · 2014. 6. 10. · a. accept the proposal...

AGENDA #__________ June 10, 2014

June 5, 2014

Honorable Board of Supervisors

County of Alameda

1221 Oak Street, Suite 536

Oakland, California 94612-4305

Dear Board Members:

SUBJECT: APPROVE MULTIPLE RECOMMENDATIONS RELATING TO THE

REGIONAL RENEWABLE ENERGY PROCUREMENT PROJECT NO.

CPP13E120350000; REQUEST FOR QUALIFICATIONS AND PROPOSALS

(RFQ/RFP) NO. 901098; AMOUNT $4,309,422

RECOMMENDATIONS:

A. Accept the proposal of and award an energy services contract (Procurement Contract

No. 10417, Master Contract No. 901098) to SunEdison Government Solutions, LLC (Sujay

Parikh, Vice President, Belmont, CA), in the amount of $4,309,422 for the complete design,

construction, and installation of one of the Regional Renewable Energy Procurement

(R-REP) projects, a solar power rooftop system at Santa Rita Jail, 5325 Broder Boulevard,

Dublin;

B. Authorize the Director of the General Services Agency (GSA) to prepare the proper energy

services contract documents and bond forms for completion by the Contractor, have said

documents reviewed and approved by County Counsel, and upon approval of the grant

funding, have the contract documents executed by the President of the Board;

C. Approve the encumbrance of an additional $430,942 as a Supplemental Work Allowance

(SWA) for a total encumbered amount of $4,740,364, and authorize the Director of GSA to

issue change orders as necessary against the SWA;

D. Authorize the Director of GSA to prepare a 10-year Maintenance and Guaranteed Output

Agreement, to commence upon acceptance of the solar power installation, and have said

document reviewed and approved by County Counsel, and executed by the Director of

GSA;

E. Adopt the attached resolution that authorizes the Director of GSA to apply for and, if

awarded, accept loan funding from the CEC in the amount of $3,000,000;

F. Authorize the Director of GSA to have said loan documents reviewed and approved by

County Counsel and authorize the Director of GSA to execute the contracts, financial

documents and any subsequent amendments related to these acceptances;

June 5, 2014

Regional Renewable Energy Procurement

Project No. CPP13E120350000

G. Adopt the attached resolution making findings necessary to authorize an energy services contract, including findings that the Alameda County R-REP solar PV systems’ total cost will be less than the anticipated cost of electricity that would have been consumed at each site in the absence of this system and that the terms of the award are in the best interest of Alameda County;

H. Authorize the Director of GSA, to negotiate Development Agreements with SunEdison

Government Solutions, LLC (Sujay Parikh, Vice President, Belmont, CA) for utility-scale solar PV generation systems at the County’s Martinelli Center, located at 3575 Greenville Road in Livermore and the Winton Landfill, located at 4001 West Winton Avenue in Hayward;

I. Authorize the Director of GSA to negotiate and execute and an agreement for California

Environmental Quality Act (CEQA) consulting services for a not to exceed amount of $500,000, for CEQA studies at the two utility-scale sites;

J. Amend the existing as-needed services consulting contract with Optony (Procurement

Contract No. 8584, Master Contract No. 901053) and Newcomb Anderson McCormick (Procurement Contract No. 8549, Master Contract No. 901053) for Construction Management services for R-REP projects and increase the purchase order by $100,000 from $900,000 to a total not-to-exceed amount of $1,000,000;

K. Increase the project budget for the R-REP Project from $966,000 to $6,306,364; and L. Authorize and direct the Auditor-Controller to make the budgetary adjustments listed on the

financial attachments.

DISCUSSION/SUMMARY: On June 12, 2012, your Board approved (Item #23, File #28222) the Resolution of Support for Alameda County’s leadership of the Regional Renewable Energy Procurement (R-REP) project; Delegation of Authority to the Director, General Services Agency (GSA), or designee, to approve renewable energy site survey contracts for various County of Alameda properties, at a not-to-exceed cost of $2,200 per site with an anticipated total cost of $66,000; and approved in concept, the inclusion of various County properties in the R-REP project, with a total estimated project budget of $25,000,000. Subsequently, on February 26, 2013, your Board authorized (Item #20, File #28757) the Director of GSA to include sixteen (16) County properties in the R-REP; authorized delegation of authority to the Purchasing Agent to execute and amend Agreements and transfer funds as necessary for Master Contract No 901053; amended the Capital Improvement Plan to increase the project budget for R-REP to $966,000, and to authorized the Auditor-Controller to make budgetary adjustments. Your Board then approved and authorized a Memorandum of Understanding (MOU), between the County of Alameda and seventeen (17) agencies participating in the R-REP on March 12,

June 5, 2014



2013 (Item #13, File #28757), and with Alameda County Fire Department (ACFD) on July 16,

2013 (Item #13, File #28961).

Finally, on September 17, 2013, your Board authorized the Director of GSA to advertise and

publish the R-REP Request for Qualifications and Proposals (RFQ/RFP), Master Contract No.

901098, on behalf of the nineteen (19) public agencies participating in the collaborative

procurement; approved a Resolution relating to R-REP workforce initiative including: a 40%

local hiring Good Faith Effort plan, partnerships with workforce entities in the participating

jurisdictions and definition of “local ” as the Nine County Bay Area; authorized Delegation of

Authority to Director of GSA to conduct the solicitation on behalf of the nineteen (19) public

agencies; and authorized the Director of GSA to issue a “Notice of Recommendation to Award”

announcement to R-REP Participating Agencies upon completion of the solicitation (Item #36,

File #29006).

Historically, Alameda County has achieved national leadership in sustainable local government

operations by successfully installing renewable energy technologies at various facilities.

Currently, there are approximately 4 megawatts of photovoltaic (PV) panels at County-owned

facilities. GSA continues to look for opportunities to increase the generation capacity of its

onsite solar power generation systems. GSA also strives to be a regional leader in the adoption

of renewable energy. To that end, the County initiated the R-REP as Lead Agency and included

nineteen (19) County-owned sites in the R-REP solicitation. Fifteen (15) of those sites received

qualified bids.

One site included in the solicitation was a PV rooftop system at Santa Rita Jail (SRJ). When this

proposed 1,725 KW PV system is operational at SRJ, the County will be able to annually

generate up to 3,000,000 kilowatt-hours (kWh) of power, which is approximately 33% of the

total electricity used at Santa Rita Jail (SRJ) each year. With the expected electrical cost savings

of $274,000 in its first year of operation and assuming an average annual Pacific Gas and

Electric (PG&E) rate increase of 4%, GSA estimates that the solar PV system will realize

$10,635,000 in cost-avoided savings over its 25-year life. The design and construction of the PV

system at SRJ is expected to take six months to complete, and construction is expected to start in

February 2015.

GSA will partially finance the project at SRJ using funds obtained through a California Energy

Commission (CEC) loan. The CEC offers low-interest loans to local government agencies for

renewable energy and energy efficiency projects. The County is currently applying for a CEC

loan in the amount of $3,000,000 at 1% interest and asks your Board to approve submission of

the application for the loan. The remainder of the SRJ project that is not covered by the loan will

be paid for through the County’s Revolving Energy Fund. This Energy Fund was established in

order to set aside energy efficiency incentives and rebates from past energy projects, and GSA

utilizes these funds when approved by your Board for future energy efficiency projects.

GSA staff also applied for an incentive from PG&E’s California Solar Initiative (CSI) and

received an incentive reservation of $727,550. The CSI incentives will be paid to the County

with annual payments of approximately $146,000, based on the amount of renewable energy the

June 5, 2014



system generates over the first five years after installation. These incentive funds will be

deposited in the Energy Fund, resulting in a net County project cost of $3,742,814.

The R-REP RFQ/RFP was structured as an indefinite quantity, multiple award, best value

solicitation. In addition, this solicitation was conducted in accordance with Government Code

Section 4217.10, et seq., and specifically, Section 4217.16, which authorizes public agencies to

solicit proposals from qualified persons and to award a contract on the basis of the experience of

the Firm, the type of technology employed by the Firm, the cost to the local agency, and any

other relevant considerations, provided that the projects deliver net cost savings to the public

agency.

In accordance with California Government Code Section 4217.10, et seq., GSA staff has

concluded that the total cost for the R-REP solar projects provided under this Energy Services

Contract will be less than the anticipated cost of electricity that would have been consumed by

the facilities at those sites in the absence of this project and that the terms of the award are in the

best interest of Alameda County. It is recommended that your Board adopt the attached

resolution making findings necessary to authorize an energy services contract under Government

Code Section 4217.12. California Public Utilities Code Section 388, allows governmental

entities to conduct a pre-qualification, such as was conducted in the R-REP RFQ phase, to

establish a list of qualified vendors.

Two large sites, Martinelli Center (L1 bundle) and the Winton Landfill (BA2 bundle) will need

additional developmental studies, including CEQA and PG&E interconnection studies, to

confirm their economic viability as utility scale PV generating facilities. GSA will return to your

Board to report the studies’ findings and will recommend whether to award a Power Purchase

Agreement to SunEdison.

CEQA EXEMPTION:

GSA staff has determined that Alameda County’s R-REP projects are categorically exempt from

the provisions of CEQA, in accordance with Title 14 - California Code of Regulations, Chapter 3

– Guidelines for Implementation of the CEQA, Article 19 – Categorical Exemptions, Class 1,

Existing Facilities, Class 3 - New Construction of Small Equipment, and under Section

15061(b)(3) - No Significant Effect on the Environment. The design, construction and

installation of the R-REP Solar Power Systems will result in no net increase in air emissions,

complies with all applicable State, federal, and local air quality laws, and is contiguous to

existing structures.

CEQA guidelines state that when a lead agency approves a project that it has determined to be

exempt from CEQA, that lead agency may file a Notice of Exemption (NOE). Filing of an NOE

is not mandated; however, it shortens the statute of limitations for legal challenges under CEQA

from 180 days to 35 days.

June 5, 2014



It is recommended that your Board now approve the CEQA categorical exemption finding and

authorize the filing of the attached Notice of Exemption, as reviewed by the Office of the County

Counsel, prior to the commencement of the Alameda County’s R-REP projects.

SELECTION CRITERIA AND PROCESS:

On June 10, 2013, the County issued a Request for Information (RFI) , which was distributed via

email not only through the County’s EGOV bulletin to a total of 3,763 recipients, but also to the

members of SolarTech and CalSEIA, two local non-profit solar trade organizations comprised of

small and large firms. In addition, the Alameda County Purchasing Department notified 43

solar vendors of the RFI directly. Alameda County conducted outreach at three events targeting

small, local businesses in advance of issuing the RFP.

The RFP was released on September 18, 2013 and was posted in three different categories as

both an RFP and an RFQ: Architectural and Engineering (A&E), Construction, and

Professional Services. An EGOV bulletin was sent to Subscribers of GSA A&E - Current

Contracting Opportunities, GSA Construction - Current Contracting Opportunities, and GSA

Professional Services - Current Contracting Opportunities.

On the morning of October 4, 2013 the County hosted a bidders conference to provide an

opportunity for interested vendors to attend live or via web-conference, and to allow them to ask

questions regarding the RFP. On the afternoon of the same day a networking conference was

held.

On December 6, 2013, a mandatory workforce development conference was held to allow

qualified vendors and local job development agencies to network. This event was attended by

job development agencies, prime vendors and subcontractors.

On October 22, 2013, 20 vendors submitted RFQ responses, 17 of which were deemed qualified.

The nature of the three disqualified vendors ranged from not demonstrating adequate prior

experience, to simply not filling out the entire questionnaire, which made it impossible to judge

their ability to meet the qualifications. This list of qualified vendors may be used by

Participating Agencies for further renewable energy solicitations as part of the indefinite

quantity, multiple award solicitation structure. The qualified vendors were instructed to submit

proposals. On January 14, 2014, 14 responses were received for six out of the 11 bid bundles

that were included in the RFP. These six bundles included the (1) large Solar PV bundle (L1),

the (4) medium Solar PV bundles (M1, M2, M3, & M4), and (1) Alternative bundle (BA2).

Bid responses were not received for the (2) small Solar PV bundles, the (1) Solar Thermal, (1)

Fuel Cell, and (1) Alternative bundle (BA1). Upon conclusion of contract negotiations, County

staff will conduct a survey of all bidders to obtain further information on the entire RFP process.

Upon receipt of the bid proposals, a completeness check was conducted and it was determined

that responses submitted by three vendors, Gestamp Asetym Solar North America, Inc.,

AMSolar, LLC and Cool Earth Solar, Inc. were incomplete, and therefore these bids were

June 5, 2014



disqualified. The remaining bidders were qualified to move forward in the R-REP solicitation,

and per PUC 388 are qualified to receive future bid price requests from the County and

Participating Agencies.

Bids were evaluated by the County Selection Committee (CSC) comprised of representatives

from County of Alameda Community Development Agency, UC Berkeley, Hayward Area

Recreation and Park District, County of Alameda Technical Services Department, City of

Oakland and County of Santa Clara. Proposals were evaluated on the basis of firm experience,

technical proposal, cost, financing plan, etc., as described in the RFP attachment Exhibit G,

Proposal Evaluation Matrix. To assist the Selection Committee, the County’s consultants,

Newcomb Anderson McCormick, Optony, Inc., and KNN reviewed the bid proposals and

prepared an analysis of financial and technical criteria.

A shortlist of six vendors were selected to move on to the vendor interviews. Vendors were

selected for interviews based upon the following criteria: a maximum of five bidders per bundle;

only those bidders who scored above 300 points; and no bidders that scored a zero or one for the

cost criteria.

SunEdison Government Solutions, LLC and Solar City Corporation were the highest ranked

bidders for the bundles specified below, and are being recommended for award.

A maximum total of 500 evaluation points were available for this RFP. The following are

evaluation summaries by bundle:

EVALUATION SUMMARY

Highest Ranked Bidders by Bundle

Bundle Vendor Ranking Points

BA2 SunEdison Government Solutions, LLC 1 441.17

L1 SunEdison Government Solutions, LLC 1 444.30

M1 SunEdison Government Solutions, LLC 1 446.67

M2 SolarCity Corporation 1 377.50



June 5, 2014



Detailed Scores by Bundle and Bidder


BA2 SunEdison Government Solutions, LLC 1 441.17

BA2 SunEdison Government Solutions, LLC

Prepay PPA 2 420.83

BA2 Borrego Solar Alternate 3 420.40

BA2 Borrego Solar 4 419.63

BA2 Sun Power Corporation, Systems 5 411.67

BA2 Ecoplexus, Inc. 6 403.97

BA2 Cupertino Electric, Inc. 7 363.17

BA2 Cupertino Electric, Inc. Plan B 8 356.77


L1 SunEdison Government Solutions, LLC 1 444.30

L1 Borrego Solar Systems, Inc. 1000V UCB 2 411.83

L1 Borrego Solar Systems, Inc. 600V 3 410.23

L1 Borrego Solar Systems, Inc. 4 408.57

L1 Ecoplexus, Inc. 5 398.00

L1 Sun Power Corporation, Systems 6 383.17

L1 SolarCity Corporation 7 343.30



M1 Ecoplexus, Inc. 2 390.70





M3 Ecoplexus, Inc. 2 396.70



M4 Cupertino Electric, Inc. 2 363.47

County Small Local Emerging Business (SLEB) provisions were waived during this multi-

jurisdictional solicitation. Applicable unique contract requirements will be imposed by each

awarding authority, as appropriate. To fully address County SLEB requirements, both vendors

will be sub-contracting 20% of the contract work to a certified small local contractor. In

June 5, 2014



addition, per the RFP both vendors have agreed to a 40% local hiring program and submitted

workforce plans to that affect.

The County’s Project Labor Agreement (PLA) and Enhanced Construction Outreach Program

(ECOP) will apply to the direct purchase project at Santa Rita Jail. The ECOP utilized

includes:

A contract goal of 60% to be awarded to local businesses and 20% to certified small

local businesses (where 20% certified small local participation may be a part of the 60%

local participation and is not required to be in addition to the 60% local participation);

A contract goal of 15% Minority Business Enterprise (MBE) and 5% Woman-Owned

Business Ente1prise (WBE) participation (where the 5% WBE participation may not be a

part of the 15% MBE participation. The 15% and 5% is not required to be in addition to,

and may be a part of the above-referenced 60% local and 20% certified small local

participation goals);

Use of the State definition of a small business, which is a business with less than a stated

amount of average gross annual revenue over the past three years, with a local

requirement;

A local business is a firm or dealer with fixed offices located in and having a street

address within the County for at least six months prior to the date upon which a request

for sealed bids or proposals is issued, and which holds a valid business license issued by

the County or a city within the County; and

Contractors to demonstrate the ability and willingness to provide jobs required to

complete County construction projects to local apprentices, youth, unemployed and

under-employed County residents.

The terms of the County’s PLA will also apply and are consistent with the R-REP RFP’s

40% local hiring objective.

FINANCING:

The installed turnkey cost to the County for the SRJ PV project is $4,740,364, including

contingency. The project expenditures will be paid from a loan for which GSA is currently

applying from the CEC in the amount of $3,000,000 as well as from the County’s Energy Fund

Designation. The Energy Fund will be reimbursed an estimated $727,550 from a California

FINANCIAL RECOMMENDATION AGENDA DATE: 6/10/2014

Subject of Board Letter:

BY: 2014 FUND: 10000

The use of Designations, as follows:

ORG AMOUNT

Energy Designation $2,340,364

The increase (decrease) in anticipated revenue, as follows:Informational

ORG ACCT PROG PROJ/GR AMOUNT

200700 481210 00000 $3,000,000

ORG TOTAL $3,000,000

Informational


ORG TOTAL $0

GRAND TOTAL ANTICIPATED REVENUE $3,000,000

The increase (decrease) in appropriations, as follows:Informational


200700 650011 00000 CPP13E120350000 $5,340,364

ORG TOTAL $5,340,364

Informational


ORG TOTAL $0

GRAND TOTAL APPROPRIATION $5,340,364

NAME OF DESIGNATION

Approve Multiple Recommendations Relating to the RREP Project;

CPP13E120350000; RFQ/RFP No 901098

CONTRACT SUMMARY PROJECT NO. CPP13E120350000

REGIONAL RENEWABLE ENERGY PROCUREMENT (R-REP) PROJECT

SANTA RITA JAIL

Prime

Contractor Location

Estimate

Dollar

Value of

Contract

Award

Local

Participation

(60% Goal)

Small Local

Participation

(20% Goal)

Minority

Business

Subcontracting

Participation

(15% Goal)

Woman-Owned

Business

Subcontracting

Participation

(5% Goal)

% Dollar

Amount %

Dollar

Amount %

Dollar

Amount %

Dollar

Amount

SunEdison

Governmental

Solutions, LLC

Belmont,

CA $4,309,422 60% $2,585,653 20% $861,884 15% $646,413 5% $215,741

Local

Subcontractor

Participation

Small Local

Subcontractor

Participation

% Dollar

Amount %

Dollar

Amount

TBD TBD TBD TBD

june 5, 2014 honorable board of supervisors subject: … · 2014. 6. 10. · a. accept the proposal...

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