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Home My WebLink AboutCM Renewable Energy; SEED MOUC,ry Department: City Manager's Office Agenda Item No: 3. 1 Meeting Date: November 19, 2012 Prepared by: Cory Bytof City Manager Approval: Volunteer & Sustainability Program Coordinator SUBJECT: RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH THE SEED FUND ADMINISTERED BY STRATEGIC ENERGY INNOVATIONS (SEI), A CALIFORNIA 501 C3, FOR COOPERATIVE PURCHASING OF RENEWABLE ENERGY RECOMMENDATION: Adopt a resolution allowing the City Manager to execute a Memorandum of Understanding with the SEED Fund, Administered by Strategic Energy Innovations (SEI), a California 501c3, for Cooperative Purchasing of Renewable Photovoltaic Solar Energy Systems for City facilities. BACKGROUND: In April 2009 the City Council adopted San Rafael's Climate Change Action Plan (CCAP), which includes Program BU5 directing the City to develop a program to achieve energy savings in existing buildings, with a goal of decreasing energy use by 20% as of the year 2020. In 2011 the City Council adopted the Sustainability Element of the City's General Plan, which includes Policy SU -4 to increase the supply of renewable energy sources, and SU -5 to reduce dependency on non-renewable energy sources. Over the past year, City staff and Council Members have received multiple solicitations from contractors and energy services companies with regard to installing photovoltaic (PV) solar energy systems on City facilities. The Sustainability Subcommittee of the Council has expressed interest in pursuing solar energy opportunities such as these and has directed staff to make such a project a priority in our sustainability program. Staff has sought professional assistance and expertise in evaluating technologies and financing mechanisms that would be in the best interest of the City to pursue. The City has been working with San Rafael -based Strategic Energy Innovations (SEI) on sustainability related projects including administering our internship program through the Climate Corps Bay Area program. In addition, SEI secured a state California Solar Initiatives (CSI) grant earlier this year to set up a revolving fund to help prepare public agencies for solar procurement and approached us to participate. This Sustainable Energy and Economic FOR CITY CLERK ONLY File No.: Is_ Council Meeting: Disposition: i.0 SAN RAFAEL CITY COUNCIL AGENDA REPORT 1 Page: 3 To be clear, approval of this MOU is an initial step in this process and does not bind or commit the City to a solar project(s). Instead, it sets up a relationship with the SEED Fund and creates a process for the City to combine efforts with other local jurisdictions and consider solar providers. Though the SEED Fund Team has identified nine City facilities with high potential, this MOU could lead to projects at one site, multiple sites, or no sites at all. Additional Council approval would be needed before proceeding with any solar installation. FISCAL IMPACT: There is no cost to the City for entering this MOU. Future costs will be determined by City actions at that time. Should the City receive a bid that is satisfactory and decide to enter into a contract to build, then the City would be obligated to repay the SEED Fund at a rate of approximately 1.5-2% of the total project cost. This could be built into the project bid and incorporated into the financial models selected for the project. Should the City decide not to select a project, there would be no obligation to reimburse the SEED Fund and the fiscal impact would be none. Regarding staff time, there is a significant amount of City Attorney's Office, City Manager's Office, and Public Works Department time involved with this process. That staff time could be in the 100-200 hour range assisting with data gathering, RFP review, contract negotiations, and other RFP related work. Should a project be selected, then a further significant amount of staff time would be dedicated to the project by Public Works, City Manager, Community Development, and City Attorney staff, with the bulk of it being in Public Works. That staff time could be in the 400-500 hour range. The majority of that workload would involve design review, permitting, communications, project management, staff training, and inspections. This is probably significantly less staff time than if the City attempted to enact solar procurement on its own. OPTIONS: The City Council has the following options to consider on this matter: 1. Adopt the resolution as proposed or with modifications 2. Continue action for additional information and response to Council comments and concerns 3. Deny the proposed resolution Adopt the resolution 1. Memorandum of Understanding 2. Solar Site Pre -Screening Results 3. Sustainable Energy and Economic Development Fund (SEED Fund) Program Overview CITY COUNCIL OF THE CITY OF SAN RAFAEL RESOLUTION NO. 13460 A RESOLUTION APPROVING A MEMORANDUM OF UNDERS WITH THE SEED FUND ADMINISTERED BY STRATEGIC El INNOVATIONS (SEI), A CALIFORNIA 501C3, FOR COOPERATIVE PURCHASING OF RENEWABLE ENERGY WHEREAS, the City of San Rafael adopted a Climate Change Action Plan in 2009, which includes Program BU5 directing the City to develop a program to achieve energy savings in existing buildings, with a goal of decreasing energy use by 20% as of the year 2020. WHEREAS, the City of San Rafael added a Sustainability Element to the San Rafael General Plan 2020 in 2011, which includes Policy SU -4 to increase the supply of renewable energy sources, and SU -5 to reduce dependency on non-renewable energy sources; and WHEREAS, the Sustainable Energy and Economic Development (SEED) Fund is an innovative program to empower public agencies to evaluate and participate in a regional purchase of municipal solar photovoltaic (PV) projects administered by Strategic Energy Innovations (SEI) in conjunction with Optony, Inc.; and WHEREAS, the SEED Fund is funded through a grant by the California Public Utilities Commission's California Solar Initiative, and is intended to reduce costs of procurement through multi -jurisdictional purchasing arrangements among public agencies throughout the North Bay; and WHEREAS, the SEED Fund Team has provided an initial site pre-screening for twenty- four City facilities, and has ranked nine of those facilities as having a high potential for solar PV installation based on technical and financial considerations, while ranking nine others as having moderate potential and six as having low potential; and WHEREAS, The SEED Fund Team will deliver, through the Memorandum of Understanding (MOU), further professional services, including detailed site feasibility studies, template bid documents, professional evaluation of bids, and other consulting expertise to inform the City's decision-making process for solar PV projects and various financing mechanisms; and WHEREAS, the SEED Fund program is set up to reduce the cost of procurement by 10- 12% through economies of scale with over 17 additional public agencies in the North Bay; and WHEREAS, the SEED Fund is based on a successful model recently done in Santa Clara County whereby over 14.4 megawatts of solar PV was installed amongst nine jurisdictions; and WHEREAS, the City of San Rafael may opt -out of the SEED Fund without penalty prior to the bid process, or decide not to proceed with a solar project should none of the bids match City requirements; and WHEREAS, the City currently works with SEI through the Climate Corps Bay Area program, placing and administering two interns for City sustainability programs; and 0 WHEREAS, the City of San Rafael wishes to increase its use of renewable energy and reduce its energy related greenhouse gas emissions; NOW, THEREFORE, BE IT RESOLVED that the CITY MANAGER is authorized to execute, on behalf of the City of San Rafael, a Memorandum of Understanding with the SEED Fund, administered by Strategic Energy Innovations (SEI), a California 501c3, for Cooperative Purchasing of Renewable Energy, a copy of which is hereby attached and by this reference made a part hereof. 1, ESTHER BEIRNE, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council held on Monday, November 19, 2012, by the following vote, to wit: AYES: COUNCILMEMBERS: Connolly, Heller, Levine, McCullough & Mayor Phillips NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: None ABSTAIN: COUNCILMEMBERS: None :Esther Beirn'e, *Cit 4 MEMORANDUM OF UNDERSTANDING FOR COOPERATIVE PURCHASING OF RENEWABLE ENERGY This Memorandum of Understanding ("MOU" or "Agreement") is effective 2- — 3 (date) 2012 ("Effective Date"), by and between the City of San Rafael, a municipal corporation (referred to herein as City), and the SEED Fund administered by Strategic Energy Innovations (SEI) —a California, 5016, (referred herein as the "SEED Fund"), referred to collectivelv, as "Parties." Recitals WHEREAS, large volume purchases of renewable energy will more likely result in lower Pricing from a multi -Jurisdiction purchasing arrangement where project sites are aggregatedI into groups on the bas's of various technical, risk and financing), related factors than would otherwise be available if individual jurisdictions independently purchased renewable energy; and WHEREAS, the Parties acknowledge that the transaction costs associated with purchasing, renewable energy are significantly reduced when the Parties agree to the same terms and conditions incorporated within standardized template documents; and WHEREAS, the City desires to evaluate and purchase renewable energy for its operations; and WHEREAS, the City "Vishes to take advantage of economies of scale and potential discounts, when such purchases are made at larger volumes; and WHEREAS, the SEED FundTM desires to provide technical evaluation services and facilitate aggregated procurement support for public agencies; and WHEREAS, the SEED FundTM provides initial funding for necessary professional services se ices th,.14t can facilitate development of an Aggregated Solar Procurement Solicitation, including' but not limited to zn consulting services, feasibility studies and procurement management services ("Professional Services,") with no obligation to the City; and WHEREAS, the SEED FundTM has no direct financial interest in any particular renewable e:iaergy products; and WHEREAS, the SEED FundTM will pay for Professional Services provided by Optony Inc., a California Corporation, and Strategic Energy Innovations, a California non-profit corporation ("SEI ),and their sub -consultants; and WHEREAS, the City has identified potentially viable Solar Sites and desires the SEED Fund'" to conduct feasibility studies of these sites for potential inclusion in an Aggregated Solar Procurcr-.Lenr Solicitation; and WHEREAS, the funds upended by the SEED FundTM may be reimbursed by the City or by vendor's" if they enter into agreements with the City to provide renewable energy; and WHEREAS, at the completion of the Solicitation process, the City will evaluate all offers and contracts in good faith for solar power purchase, financing, real estate and/or other required agreements with selected vendors in the forms prepared by the SEED Fund TM; ORIGINAL NOW THEREFORE, in consideration of their mutual promises and agreements, and subject to the terms, conditions and provisions hereinafter set forth, the Parties agree as follows: SECTION 1. DEFINED TERMS A "SEED Fund" is the Sustainable Energy and Economic Development Fund, administered by Strategic Energy Innovations — a California 5016. B "Lead Agency" is the designated city or public agency responsible for issuing the Solicitation (as defined herein) on behalf of itself and the Participating Cities / Agencies (as defined herein) for the purposes of purchasing renewable energy. C "Participating Cities/ Agencies" are all other public entities, except for the Lead Agency (as defined herein), who participate in the Solicitation to purchase renewable energy. D "Solicitation" or "Aggregated Solar Procurement Solicitation" is defined as a request for qualifications and/or a request for proposals and related actions to purchase renewable energy on Z behalf of the Lead Agency and p Parti i ating Cities / Agencies. Participating E "Vendor(s)" is defined as a company or companies who respond to the Solicitation to provide renewable energy proposals, which will categorically exclude SEED FundTM subcontractors. F "Feasibility Stud -v" is defined as a technical, preliminary structural, and economic evaluation of the solar potential at a specific facility that is owned or managed by a City / Agency. SECTION 2. ROLE AND RESPONSIBILITIES OF SEED FUND" A The SEED FundTM shall coordinate with City to provide Professional Services and template documents and other services necessary to assist the City in participating in the Solicitation to purchase renewable power. B SEED FundTM shall provide training and resources to City as needed to build understa ding and support for participation in the procurement process. C SEED FundTM shall evaluate sites for feasibility of renewable energy systems includin'o- technical, structural, and economic viability under realistic financing scenarios. Evaluation of structural feasibility shall be in the form of a preliminary feasibility review by an engineering prol'o-s"lonal. D SEED FundTM shall provide professional expertise to perform reference checks, evaluation of Vendor(s), technology reviews and financing option analyses. E SEED FundTM shall provide assessments and recommendations to Citv and affiliated kc ¢, staff and decision makers. SECTION 3. ROLE AND RESPONSIBILITIES OF CITY A The City- shall activelyparticipate in the SEED FundTM I I process so as to enable a timebl- Solicitation for possible terms.ossi aggregated procurement in order to realize the best p g 1 B The City may withdraw from this MMU without consequence at any time up until the dehVerNl of the feasibility studies to City's Project Director. At that time, conditions in Sections 4 and 5 apply. To withdraw from this MOU, the City shall prepare written notice pursuant to Section 8 and Section 10. C Throughout the term of this Agreement, the City, is responsible for satisfyinc-, its individual legal, procedural and other requirements necessary for participation in this memorandum. D The City will take all reasonable steps to support development of an Aggregated Solar Procurement Solicitation including, but not limited to, providing information necessary for the SEED FundTM to perform due diligence and feasibility studies on the City's behalf, including site surveys, site access and utility information. E If the City participates in the Solicitation, the City agrees to the terms and conditions listed below and the following conditions shall apply: The Lead agency will issue the Solicitation with support from SEED FundTM staff and subcontractors. 2. The City shall (i) acknowledge and ascribe to the results of the Solicitation issued 16),, the Lead Agency, (ii) utilize SEED FundTM templates of transaction documents, which may include, without limitation, site evaluation forms, model project specifications, a form of pl.irchase agreement and a form of site lease (the "Template Documents"), and (iii) coordinate with Participating Cities / Agencies, as necessary, 3. The City, with respect to the content of the Solicitation and the terms and conditions contained within Template Documents, shall have a reasonable opportunity to review all Template Documents before they are finalized, and shall communicate comments and questions to SEED FundTM within the allotted timeframe provided by SEED Fundtm_ 4. The City designates SEED FundTM and the Lead A0,Z-)ency, as the primary f contact for rimary points o Vendors and necessary third parties throughout the Solicitation process. 5. Provided that the City determines, to its satisfaction, that the Vendors are respons.1ble, responsive, affordable, and comply with the terms, conditions and legal and proceclt.,,ral requirements acceptable to the City, upon conclusion of the Solicitation process, ii is anticipated that City will enter into binding agreements, substantially in the form of the Template Documents, with the selected Vendors; however the Parties agree that Clt_�7 shall not be required to do so. SECTION 4. SEED FUNDI'm GOALS AND REIMBURSEMENT A PROGR_,AT\I GOAL The goal of the SEED FundTM is to provide high-value technical assistance with no up -front cost for the C, City to evaluate and purchase renewable energy and/or to install renewable energy, systems to help reduce utility costs, while leveraging existing federal and state rebate opportunities, and contributing rt the CirY's environmental goals. The SEED Fund's purpose is to fund l regional sustainability projects that create new economic activity- while improving the regional environment. The focus is on renewable energy and energy efficicncv for municipalities, schools and public agencies to help reduce costs while demonstrating leadership in clean energy locally. The SEED Fund also provides resources and training for stakeholders to build understanding, internal capabilities and support interaction across the community. B FUNDED PROFESSIONAL SERVICES The SEED FundTM will pay for Professional Services necessary to 'independently evaluate potential solar sites, provide educational resources, and issue a Solicitation for proposals from Vendors within an Aggregated Solar Procurement project. Funds used for Professional Services will be used exclusively for the implementation of the Aggregated Solar Procurement' Solicitation between Participating Cities Agencies, and SEED FundTM. Use of SEED FundTM Monies is restricted to the foregoing and may not be used to pay for City staff time, outside contractors or independent studies, except for a stipend available to the SEED FundTM Lead Agency. Except as specifically otherwise provided in Section 2(C) above, services that are excluded from SEED FundTM reimbursement include environmental reviews, engineering services and project commissioning. C REIMBURSEMENT OF SEED FundTM If, during the Term of this Agreement, the City enters into a contract to build a renewable energy system on facilities identified in the feasibility study or enters into a power purchase agreement or other similar agreement to purchase renewable energy from any energy service provider, the City agrees that the SEED FundTM Professional Services shall be reimbursed at a rate of 1.5 to 2 % of the total installed value of the renewable energy project, in present dollars (based on the project price proposed by the winning Vendor). SEED Fund will provide a final reimbursement percentage to the City prior to issuing the Solicitation. This percentage will be based on total Solicitation size and other factors. If, for any reason, and in the City's sole discretion, no viable project identified through SEED FundTM is contracted by the end of the term of this agreement, or if the City, withdraws from the program prior to completion of feasibility studies on City facilities, the Citv is not required to pay for any SEED FundTM Professional Services. City agrees that this reimbursement provision shall be the responsibility of the City but that it may be, reimbursed through the purchase contract that is executed between City and Vendor(s). SECTION 5. TERM OF AGREEMENT The term of this Agreement shall commence on the MOU Effective Date and shall expire on rlie later of the second anniversary of the Effective Date, or Solar Procurement S(Alicitationproce,-- ssas determined by SEED FundTM. SECTION 6. GOVERNING LAW AND VENUE The law governing this Agreement shall be that of the State of California, In the event that suet ushall be Z� Agreement brought by any pard ,- to this Agreement, the Parties agree that venue shall be exclusively vested in the IV, State court in the count- where the City is located, or if federal jurisdiction is appropriate, exclulvelv in the appropriate United States District Court. 4 SECTION 7. WARRANTY DISCLAIMER; LIABILITY; WAIVER A No warranty, express or implied, is provided by the SEED Fund TM, Optony, Inc. or SFJ as to results or success of the Solicitation, this Agreement, or any agreements ultimately entered into by the City o the 1 pursuant Aggregated _gregated Solar Procurement Solicitation. City acknowledges that Optony, Inc. and SEI have not made, and are not making, any assurances, guaranties or promises with respect to the subject matter of this Agreement and that each party is ultimately responsible for conducting its own due diligence with respect to feasibility, pricing, technology, third parties and all other matters in any way related to the subject matter of this Agreement. B In no event shall the SEED Fund TM, Optony, Inc., and SEI nor their officers, agents, employers, or representatives be liable for any direct, indirect, incidental, special, exemplary, or consequential damages (including but not limited to, procurement of substitute goods or services, loss of use, data, or profits, or business interruption) however caused and on any theory- of habilirl,, whether in contract, strict liability, or tort (including negligence or otherwise) arising in any way, directly or indirectly, from this Agreement, participation in the Solicitation, or any agreement(s) between a Lead Agency or Participating Agency and any third party, even if advised of the possibility of such damage. C Unless otherwise provided herein, each Party is responsible for negotiation, execution administration and enforcement of any, contract with a Vendor or third party related to the subject matter of this Agreement and the agreements ultimately entered into by each party shall not be cross -defaulted or cross -collateralized in any respect with the agreements enter44(l into by any other party to this Agreement. D No waiver by any party to this Agreement of any breach or violation of any term or condition of this Agreement shall be deemed to be a waiver of any other term or condition contained herein or a waiver of any subsequent breach or violation of the same or any other term or coni lcion_ SECTION 8. NOTICES Notices shall be deemed effective on the date delivered if by personal service or overnight delivery service, or, if mailed, three (3) days after deposit in the U.S. Postal Service mail. All notices arid other communications required or permitted to be given under this Agreement shall be in writing and shall be personally- served, delivered by overnight service, or bv, mail, first class, certified or registered postage prepaid and return receipt requested, addressed to the respective Parties as follows: City of San Rafael Address: PO Box 151560 Address: San Rafael, CA 94915-1560 Attn: Con- Bytof With Copies to: Strategic Energy Innovations gic — 899 Nortligate Dr., Ste. 410 San Rafael, CA 94903 Attn: Kif Scheuer, Program Director 5 SEED Fund, Administered by SEl Address: 899 Northgate Dr., Ste- 410 Address: San Rafael, CA 94903 Optony, Inc. 2855 Fifer Rd., Ste. 201 Santa Clara, CA 95051 Attn: Ben Foster, Senior Vice President SECTION 9. MISCELLANEOUS PROVISIONS A If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall be valid and binding on the Parties. B This Agreement may be executed in counterparts and will be binding as executed. C All changes or extensions to this Agreement shall be in writing in the form of an amendment approved by all Parties. D This Agreement is entered into only for the benefit of the Parties executing this Agreement and not for the benefit of any other individual, entity, or person. E Conflict Statement and Waiver. No officer or employee of the City shall have any financial interest in this Agreement that would violate California Government Code Sections 1()90 et seq. F The parties agree that time is of the essence; and failure of the City to provide the required information in the requested format and within the deadlines established by SEED Fund TM may result in termination of that party's participation in the cooperative purchase. G This Agreement shall not be interpreted to create an association, *o* or partnership I int venture, between the Parties nor to impose any partnership obligation or liability upon either Party. H This Agreement shall be equally and fairly interpreted for the benefit of and against all parties to this Agreement and shall further be construed and *interpreted without reference to the identity of the party or parties preparing this document, it being expressly understood and agreed that the parties hereto participated in the negotiation and preparation of this Agreement or have had equal opportunity to do so. Accordingly, the parties hereby waive the legal presumption that the language of the contract should be interpreted most strongly against the party who caused the uncertainty to exist. SECTION 10. TERMINATION A The SEED FundTM may, upon thirty (30) days' w written notice, terminate this Agreeme'Lar -,vithout ri penalty or hablht),-. B City may terminate this Agreement with written notice at any time up to three (3) weeks prior to the issuance of the' Solicitation pursuant to the project schedule developed and provided bel SEED Fund TM. However, the terms of reimbursement in Section 4C,,vill still apply. C- In the event of termination, any unexpended grant monies shall be retained in the SEYD Fundim and shall not be disbursed to City. SECTION 11. INDEMNIFICATION In lieu of and notwithstanding the pro rata risk allocation, which might otherwise be imposed btt-\veen the Parties pursuant to Government Cade Section 895.6, the Parties agree that all losses or liabilities incurred by a party that are in any way related to this Agreement shall not be shared pro rata, but, instead, the Parties agree that, pursuant to Government Code Section 595.4, each of the Parties hereto ,hall fully indemrnfo- and hold each of the other Parties, their officers, board members, employees, and i'melits, harmless from any claim, expense or cost, damage or habilitv imposed for injury (as defined in Government Code Section 810.8) occurring by reason of the negligent acts or omissions or willful misconduct of the indemnifying party, its officers, employees, or agents, under or in connection with or arising out of any work, authority, or jurisdiction delegated to such party under this Agreement. No party, nor any officer, board member, or agent thereof shall be responsible for any damage or liability occurring by reason of the negligent acts or omissions or willful misconduct of another party hereto, its officers, board members, employees, or agents, under or in connection with or arising out of any work authority= or jurisdiction delegated to such other party under this Agreement. SECTION 12. NON-DISCRIMINATION Parties shall comply with all applicable Federal, State, and local laws, regulations and policies concerning nondiscrimination and equal opportunity, in contracting. Such laws include but are not limited to the following: Title VII of the Civil Rights Act of 1964 as amended; Americans with Disabilities Act of 1990; The Rehabilitation Act of 1973 (Sections 503 and 504); California Fair Employment and Housing Act (Government Code sections 12900 et seq.); and California Labor Code sections 1101 and 1102. Parties shall not discriminate against any subcontractor, employee, or applicant for employment becauwe o£ age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability., physical disability, medical condition, political beliefs, organizational affiliations, or marital status in the recruitment, selection for training including apprenticeship, hiring, employment, utilization, promotion, layoff, rates of pay or other forms of compensation. Nor shall Parties discriminate in provision of services provided under this Agreement because of age, race, color, national origin, ancestry, religion, sex/gender, sexual orientation, mental disability, physical disability, medical condition, political beliefs, organizational affiliations, or marital status. IN WITNESS WHEREOF, the parties have executed this Agreement: Dated: ��AI - The SEED Fund, administered by SEI by 6 CY Az I L'NDRIDGE, Executive Director 7 Dated: / - f The City of San Rafael f byi 3 NANCY NIACKLE, City Manager Attest: by _Py: ESTHER BEIRNE, City Clerk Apprc ved as to Form b17UZd f ROBERT F. EPSTEIN, Citi- Atromey Prepared by: Optony Inc. Jonathan Whelan -Sr. Project Manager jonathan.whelan@optony.com 408-567-9216 Silicon Valley I Washington DC ( Denver I Beijing I Hangzhou Prepared for: City of San Rafael Cory Bytof, Sustainability Coordinator cory.bytof@cityofsanrafael.org The Optony team is pleased to provide a comprehensive Solar PV site screening report on twenty-four City -owned facilities and properties. The analysis has been completed and the findings from this screening are summarized below. Based on the information collected remotely and during pre-screening discussions, potential usable rooftop, parking, and ground -mount areas were mapped out at each of the sites. From these areas, a maximum possible PV system size was calculated and solar production numbers were estimated. The production numbers are compared to the electricity usage numbers provided by the City to determine the maximum possible electricity usage offset, assuming solar installation at all reviewed usable areas. Potential issues such as geotechnical challenges, roof and structural suitability, system shading, electrical infrastructure, and environmental issues were considered for each site. The California Environmental Quality Act (CEQA) requires the analysis and disclosure of environmental impacts of proposed projects. SB 226 signed by Gov. Wilson lists rooftop solar PV projects as statutorily exempt from CEQA requirements. Geotechnical issues pertain to the surrounding area of the overall site such as soil condition, water table levels, and presence of fault lines. Structural issues include the age of the roof as well as the building and building layout. Potential shading sources include tall trees, rooftop mechanical equipment, and neighboring buildings. Electrical issues in this case pertain to the need to upgrade existing electrical equipment to accommodate the addition of PV -related electrical equipment. The potential issues for each site were rated on a scale from None (no issues) to High (likely to require extensive further review or remediation). The primary financial benefit of a solar PV system is the avoided cost of energy. Facilities with PV systems that generate electricity have a reduced need to purchase electricity from a utility company. The key drivers to ensure maximum avoided costs are a proper system design (which affects system production and long-term operations) and the utility rate schedule (which determines the value for the energy produced). For "A" -rated sites, avoided costs are estimated at 100% of the Annual Electricity Cost, assuming installation of the recommended PV system sizes. Further review of specific site electrical records will be needed to provide a more detailed projection of potential energy avoided costs. Recommended system sizing is based on an 80% electrical usage offset with PV installation. During daylight hours, the energy produced by the PV system flows into the load at the meter, reducing or eliminating the need to purchase electricity from the utility. Excess energy is passed directly onto the utility grid, building up energy credits for the site. These credits are used up at night when the solar PV system does not produce electricity. Essentially, the site sells higher -value energy to the utility company in the daytime, and uses lower-cost energy at night. Therefore, instead of offsetting the electricity usage to 100%, the recommended system size reduces the utility bill to almost zero with a smaller PV system. Sites were evaluated based on ten different variables and ranked to determine their relative potential for technical and economic feasibility. Shown below are the sites, organized by ranking (from A being most feasible to C being least feasible) with details for each site included in the table on the final page. Notes to briefly explain opportunities and challenges are included in the far right column of the table. Feasibility Rank: A Nine facilities were given a rank of "A" due to their strong potential for both technical and economic viability for solar installations. These nine locations are recommended to the City to undergo a full investment-grade solar feasibility study: • City Hall — carport and rooftop areas • Corporate Yard — carport and rooftop areas • 3rd & C Parking Garage — rooftop shade structure areas • Child Care Center— rooftop and shade structure areas Silicon Valley I Washington DC I Denver I Beijing I Hangzhou • Parking Lot 925A — rooftop shade structure areas • Pickleweed Child Center — rooftop and carport areas • Pickleweed Community Center — rooftop and carport areas • San Rafael Community Center — rooftop and carport areas • Terra Linda Rec Center — rooftop and carport areas Feasibility Ranking: B Sites were given a "B" ranking due to potential structural, site -use, construction, or aesthetic issues that may limit the feasibility of solar installation in the near-term. Potential issues have been identified at each site, and would need to be examined internally or through a full feasibility study to determine whether these issues offer a barrier to the installation of solar PV systems. In some cases, a site may be a good candidate for solar installation, but small system size may limit the ability to be included in the SEED Fund procurement. • 3rd & Lootens Parking Garage — rooftop shade structure areas (primary concern: small system size, structural construction concerns) • 5th & C Parking Garage — rooftop shade structure areas (primary concern: small system size, structural construction concerns) • Fire Station #2 — rooftop and carport areas (primary concern: small system size) • Fire Station #3 — rooftop areas only (primary concern: small system size) • Fire Station #4 — rooftop and carport areas (primary concern: small system size) • Fire Station #5 — rooftop areas only (primary concern: small system size) • Fire Station #6 — rooftop areas only (primary concern: small system size, may have insufficient available space for PV system sizing needs) • Fire Station #7 — rooftop areas only (primary concern: small system size) • Library — rooftop and carport areas (primary concern: historical building, if parking areas are used for City Hall solar insufficient space is available for PV system sizing needs) Feasibility Ranking: C Sites were given a "C" ranking when either a very high electricity usage relative to solar capacity or high-risk technical issues were noted. While a PV system may still be feasible at these sites, it is unlikely that these systems will be able to provide economic savings to the City to justify the cost of the systems at this time. • Child Care 140 Rafael — rooftop and carport areas (primary concern: small system size, land and facility are owned by the School District) • Falkirk Cultural Center — carport areas only (primary concern: historical building with structural and aesthetic concerns, small system size, site security issues) • Fire House Museum — rooftop areas only (primary concern: extensive tree shading in park, small system size) • Fire Station #1 — rooftop and carport areas (primary concern: insufficient available space for PV system sizing needs, structural questions) • 1033 C St. — rooftop areas only (primary concern: ownership issues, small system size) • Parking Lot E St. — carport areas only (primary concern: small system size, site security issues) The Solar Energy and Economic Development Fund (SEED Fund) has developed a regional collaborative solar procurement, similar to the recent procurement by the County of Santa Clara in Silicon Valley. Optony has found that participants in collaborative solar procurements are likely to realize significant savings in both total system costs and transactional time and costs when compared to single -site solar procurements. Optony encourages the City to continue participation in the SEED Fund project by reviewing this report and determining which sites are the best candidates for investment-grade feasibility assessments and possible inclusion in a collaborative solar procurement. A Memorandum of Understanding with the SEED Fund will need to be signed, after which, the SEED Fund team will make arrangements to perform feasibility assessments at selected sites with no upfront cost to the City. -z- SELM OPTO Y Fund Solar Energy & Economic Development Fund (SEED Fund) Program Overview Collaborative procurement is emerging as a powerful means to tackle the costs and technical barriers to public investment in solar energy projects. However, upfront costs for high-quality solar potential assessments, RFP/RFQ development, and vendor evaluations prohibit many public entities from identifying and pursuing potential projects. The SEED Fund (Solar Energy & Economic Development Fund)* is a unique 3 -step opt -in program to empower public agencies to evaluate and participate in a regional group purchase of municipal solar PV projects. A key feature of the program is that it does not require upfront allocation of funds for project planning, site assessments, or procurement activities; rather these costs will be paid back through solar contracts that are developed with vendors to create a revolving fund for future work'. Described below are the roles and responsibilities for all organizations and the three main steps of this program: Roles - SEED FUND TEAM: Comprised of Strategic Energy Innovations and Optony Inc., the Team will provide technical and logistical support to facilitate public participants' evaluation of solar potential" - LEAD AGENCY: One participating public agency who has an interest in securing PV for their facilities and is willing to use their legal / fiscal staff to lead the development and issuance of a collaborative RFP/ RFQ. - PARTICIPANTS: Local governments, agencies, and school districts in Napa, Marin, and Sonoma Counties who want to evaluate their solar potential and who may want to participate in the collaborative procurement after evaluating their options. Step 1 - SEED FUND TEAM: Organizes multiple informational webinars/conference calls to explain the details of the program, including process and opportunities. - PARTICIPANTS: Provide electricity usage information and facility addresses for potential solar installation sites. - SEED FUND TEAM: Evaluates pre-screening criteria for identified sites for solar and available options. - PARTICIPANTS: Review screening report and determine if they would like to proceed with full feasibility studies at selected, high -potential sites. Step 2 PARTICIPANTS: Those who want to participate, sign Memorandum Of Understanding (MOU) outlining role and agreement to add SEED Fund costs into future solar contracts if they are implemented. SEED FUND TEAM: Performs investment-grade solar feasibility assessments of selected sites to be included in procurement effort with no up -front funding required and provides information on solar financing options to participants. PARTICIPANTS: Review technical and economic feasibility studies and determine which sites should be included in the RFQ/RFP. SEED Fund Participation costs are estimated at 1-2% of total Solar project costs, and Project Cost savings from participation are estimated at 10-12% of total solar project costs, resulting in a net cost savings estimate of 8-12% for participants. 11 D l Fuad IJOPTONY - SEED FUND TEAM: Develops RFCt/RFP documents, specifications, and templates, with terms approved by all participants. - LEAD AGENCY: Issues RFCt/RFP for solar projects on behalf of entire group, with support of the SEED Fund Team. - ALL: SEED Fund Team guides review and evaluation of vendor proposals in terms of capabilities, costs, and performance. - LEAD AGENCY and PARTICIPANTS: Issue shortlist and award for winning vendor(s) and negotiate contract terms, assisted by SEED Fund Team. Step 3 - PARTICIPANTS: Present viable projects and negotiated contracts to Council or Board for approval, with on-going support from the SEED Fund Team. - VENDORS: Build projects and provide reimbursement to SEED Fund to enable a sustainable second round of project development activity. - PARTICIPANTS: Start producing clean, renewable energy to reduce electricity bills and meet Climate Action Plan goals. SEED FUND TEAM: Issues project report to CSI detailing the regional impact of this effort, and begins Round 2, using the funds reimbursed from Round 1 along with additional investments to expand effort to new jurisdictions. There are many resources available for participants, so please visit the SEED Fund website (www.solarroadmap.com/SEED) to learn more about project specifics, team background, solar financing, and case studies. If you would like to be a part of this exciting program, please contact us: KifScheuer Jonathan Whelan Sustainable Communities Program Director Senior Project Manger Strategic Energy Innovations Optony Inc. kif@seiinc.org jonathan.whelan@optony.com (415) 507-1433 (415) 450-7032 SEED Fund Project Timeline (with key participant decision points) R€ v,ov,,�otentiai'Or MOU's,site Evaluationof solar%iVelo`p3nP',t feasibility vendorresponses and, pror'pa-6 v'w to assessments, and and negotiation of development of contractterms RFP *This program is funded through a grant from the California Solar Initiative to enable sustainable development of solar projects in the North Bay and serve as a statewide demonstration of innovative business models. **Strategic Energy Innovations (SEI), is a non-profit organization dedicated to reducing pollution and saving money through energy and resource efficiency. Optony is an independent solar consulting firm specializing in supporting public and private solar programs and projects. Council/Board Projectsare Decision 2: approvalof interconnected High-level review EvaiujWeconctmI" projects and start and create Informational of potential sites azzcferlverownegral ofdesign and green energy meetingsand forsolar benefiisofso3 r construction (and savings) for webinars development iitstaiiaticnfor yow activities yourfacilitiesi R€ v,ov,,�otentiai'Or MOU's,site Evaluationof solar%iVelo`p3nP',t feasibility vendorresponses and, pror'pa-6 v'w to assessments, and and negotiation of development of contractterms RFP *This program is funded through a grant from the California Solar Initiative to enable sustainable development of solar projects in the North Bay and serve as a statewide demonstration of innovative business models. **Strategic Energy Innovations (SEI), is a non-profit organization dedicated to reducing pollution and saving money through energy and resource efficiency. Optony is an independent solar consulting firm specializing in supporting public and private solar programs and projects. CITY OF SAN RAFAEL Noll III I 10 RIM I 1 0 A a a a 0 "k 0 . M INSTRUCTIONS: USE THIS FORM WITH EACH SUBMITTAL OF A CONTRACT, AGREEMENT, ORDINANCE OR RESOLUTION BEFORE APPROVAL BY COUNCIL / AGENCY. SRRA / SRCC AGENDA ITEM NO. 3.1 DATE OF MEETING: November 19, 2012 FROM: Cory Bytof DEPARTMENT: City Manager DATE: November 13, 2012 TITLE OF DOCUMENT: A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING WITH THE SEED FUND ADMINISTERED BY STRATEGIC ENERGY_INNOVATIONS (SED, A CALIFORNIA 501 FOR COOPERATIVE PURCHASING OF RENEWABLE ENERGY Fly -XI "MT1 IT -no sign'!ature) (LOWER HALF OF FORM FOR APPROVALS ONLY) APPROVED AS COUNCIL / AGENCY AGENDA ITEM: 'A tu City Manager (signature) = I kTj F -Al V APPROVED AS TO FORM: 2, �14 - - �i� City Attorney (signature) i% NAL SERVICES AGREEMENT/CONTRACT COMPLETION CHECKLIST AND ROUTING SLIP Below is the process for getting your professional services agreements/contracts finalized and executed. Please attach this "Completion Checklist and Routing Slip" to the front of your contract as you circulate it for review and signatures. Please use this form for all professional services agreements/contracts (not just those requiring City Council approval). This process should occur in the order presented below. Step Responsible Description Completion Department Date I City Attorney Review, revise, and comment on draft agreement. 2 Contracting Department Forward final agreement to contractor for their signature. Obtain at least two signed originals from contractor. 3 Contracting Department Agendize contractor -signed agreement for Council approval, if Council approval P I lei necessary (as defined by City Attorney/City Ordinance*). 4 City Attorney Review and approve form of agreement; bonds, and insurance certificates and 1 endorsements. 5 City Manager /Mayor 1 or Agreement executed by Council authorized I Department Head official. 12,-1311 6 City Clerk City Clerk attests signatures, retains original agreement and forwards copies to the contracting department. IV, To be completed by Contracting Department: Project Manager: 0J Project Name:- So IcA, F:i"" AZ::1 I gendized for City Council Meeting of (if necessary): If you have questions on this process, please contact the City Attorney's Office at 485-3080. * Council approval is required if contract is over 520,000 on a cumulative basis. a I