RECOMMENDATION(S): (CONT'D)
FIND that the anticipated cost to Contra Costa County for electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the County of electrical or other energy that would have been consumed by the County in the absence of those purchases.
FIND that the project services to be performed under the Energy Services Contract are statutorily exempt from California Environmental Quality Act pursuant to Public Resources Code Section 21080.35, and
APPROVE and AUTHORIZE the County Administrator, or designee, to execute an Energy Services Contract with ENGIE Services U.S. Inc., a Delaware corporation, in an amount not to exceed $2,000,000, for the installation of solar panels over the 651 Pine Street parking lot, for the term February 27, 2018 through February 26, 2028.
FISCAL IMPACT:
100% General Fund.
BACKGROUND:
As part of the new administration building project the County will be rebuilding the parking lot behind the existing building at 651 Pine Street. This new, expanded, parking lot will provide off street parking for the employees of the new admin building. The parking lot lends itself to a large solar collector array that would be able to provide power to the new admin building. The most efficient time to install such an array would be at the same time the new parking lot is constructed.
Procuring this solar array now will result in both overall energy savings both immediately by offsetting utility costs at 651 Pine Street and in the future for the new admin building when constructed, but also save time, money and inconvenience by installing the system while the new parking lot is under construction. The current estimate for electrical use of the new admin building is approximately $130,000 per year. This system would generate enough power to offset that electrical cost giving an approximate payback time of 15 years. The solar panels have a 25 year manufacturer warranty, and with proper maintenance and cleaning, can be expected to last longer than the warranty period.
The proposed contract with ENGIE Services U.S. Inc. is for the installation of a 448Kw photovoltaic solar array over the parking lot behind 651 Pine Street in Martinez. The contract is not a power purchase agreement, and does not contain an energy savings guarantee or solar PV system performance guarantee. Under the contract the County waives any such guarantee to the fullest extent permitted by applicable law.
Under the contract, the County agrees to indemnify and defend ENGIE against losses caused by (1) County owned or generated hazardous substances, except for liabilities due to the negligence or willful misconduct of ENGIE or its subcontractors, and (2) County’s negligence or willful misconduct in its performance of its obligations under the contract.
CONSEQUENCE OF NEGATIVE ACTION:
Not approving the contract would delay the savings achievable by using the parking lot as solar field and increase the cost of installing a solar array in the future.
CLERK'S ADDENDUM
CLOSED the public hearing;
FOUND that the anticipated cost to Contra Costa County for electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the County of electrical or other energy that would have been consumed by the County in the absence of those purchases
FOUND that the project services to be performed under the Energy Services Contract are statutorily exempt from California Environmental Quality Act pursuant to Public Resources Code Section 21080.35, and;
APPROVED and AUTHORIZED the County Administrator, or designee, to execute an Energy Services Contract with ENGIE Services U.S. Inc., a Delaware corporation, in an amount not to exceed $2,000,000, for the installation of solar panels over the 651 Pine Street parking lot, for the term February 27, 2018 through February 26, 2028.