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To: Contra Costa County Fire Protection District Board of Directors
From: Jeff Carman, Chief, Contra Costa County Fire Protection District
Date: January  17, 2017
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: Energy Services Contract with OpTerra Energy Solutions, Inc.

APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE

Action of Board On:   01/17/2017
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, Director
Candace Andersen, Director
Diane Burgis, Director
Karen Mitchoff, Director
Federal D. Glover, Director
Contact: Aaron McAlister, Asst Chief (925) 941-3503
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     January  17, 2017
David Twa,
 
BY: , Deputy

 

RECOMMENDATION(S):

OPEN the public hearing on the Energy Services Contract with OpTerra Energy Services, Inc., as continued from December 6, 2016.  
  

RECEIVE testimony, and CLOSE the public hearing.   

  







RECOMMENDATION(S): (CONT'D)
FIND that the anticipated cost to the Contra Costa County Fire Protection District (District) for thermal or electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the District of thermal, electrical, or other energy that would have been consumed by the District in the absence of those purchases.  
  
APPROVE and AUTHORIZE the Fire Chief, or designee, to execute an Energy Services Contract with OpTerra Energy Services, Inc., a Delaware corporation, in an amount not to exceed $4,318,845.  
  
FIND that the project services to be performed under the Energy Services Contract are exempt from California Environmental Quality Act (CEQA), Class 1(d) Categorical Exemption, pursuant to CEQA Guidelines section 15301 (Existing Facilities) (d) of the CEQA Guidelines, and.  
  
DIRECT District staff, through the Conservation and Development Department to file a Notice of Exemption with the County Clerk.

FISCAL IMPACT:

The total cost of the project including construction and development is $4,318,845. The District will make an initial lease payment of $300,000 and finance the remainder of the project using an equipment lease purchase agreement amortized over 17 years. The rent payments required under the equipment lease purchase agreement are projected to be fully offset by a reduction in energy costs. The District anticipates annual savings in excess of $21,000 after the energy infrastructure project is complete.

BACKGROUND:

This item was brought before the Fire Board of Directors on December 6, 2016. At that time the Board requested the Fire Chief to conduct additional public outreach in the various communities affected. This outreach has now been completed. The District conducted three public outreach sessions: in the City of Pittsburg on January 12, 2017, at the Contra Costa Fire Prevention Bureau East; in the City Clayton on January 11, 2017, at the City of Clayton Library; and in the City of Concord on January 10, 2017, at the Contra Costa Fire Training and Education Center. The District sent 500 pieces of US mail to the neighbors immediately adjacent to the solar locations advertising the meetings. Additionally, the District marketed the public outreach sessions through various social media accounts.

The District has identified energy efficiency and HVAC improvements as a high priority project. On May 10, 2016, the Board authorized a Program Development Agreement with OpTerra Energy Services for energy assessment services and identification of potential energy conservation measures at District facilities.  
  
Under the Program Development Agreement, the assessment has concluded the cost of the energy conservation measures will be less than amounts the District would otherwise spend on energy without the implementation of the energy conservation measures. OpTerra has designed a program to install solar panels at four locations, water conservation measures at over a dozen sites, as well as upgraded HVAC equipment at 12 facilities. The solar panels will be installed on shade canopies at three locations, and one ground mounted system will be installed at the District’s Delta Fair site in the City of Antioch. The solar shade canopy at the training center will provide cover for training and reserve fire apparatus currently stored outside.  
  
A project of this scope allows us to rapidly address many of our deferred HVAC maintenance needs. The installation of solar systems results in direct energy savings of $192,000 per year. Additionally, the District will avoid some ongoing maintenance costs as well as future capital costs related to upgrading HVAC systems of approximately $72,000 annually for a total combined savings of approximately $264,000 per year. These savings will be used to offset the cost of financing the acquisition and installation of the equipment.  
  
The project is a substantial commitment to renewable energy and is consistent with the Contra Costa County Climate Action Plan.

CONSEQUENCE OF NEGATIVE ACTION:

The District would not be able to install solar and other energy efficiency upgrades. The HVAC improvements would have to be accomplished through other unidentified means.

CHILDREN'S IMPACT STATEMENT:

No impact.

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