HomeMy WebLinkAbout23905RESOLUTION NO. 23905
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, MAKING FINDINGS AND
AUTHORIZING THE CITY MANAGER TO ENTER INTO CERTAIN
INFRASTRUCTURE FINANCING AGREEMENTS AND
ASSOCIATED CONTRACTS WITH SOLARCITY CORPORATION
PURSUANT TO GOVERNMENT CODE 5956, ET SEQ., FOR THE
COMPLETE DESIGN, CONSTRUCTION, OPERATION AND
MAINTENANCE OF SOLAR PHOTOVOLTAIC SYSTEMS AT THE
WASTEWATER TREATMENT PLANT AND AT SUNRISE PARK,
AND APPROVING AND ORDERING THE FILING OF A CEQA
NOTICE OF EXEMPTION.
WHEREAS, Chapter 1040 of the 1996 Statutes and Amendments to the Codes,
approved September 28, 1996, as Chapter 14, "Infrastructure Financing," commencing
with Section 5956, added to Division 6 of Title 1 of the California Government Code,
(hereinafter the "Code"), with the specific legislative intention that local governmental
agencies have the authority and flexibility to utilize private investment capital to study,
plan, design, construct, develop, finance, maintain, rebuild, improve, repair, or operate,
or any combination thereof, fee -producing infrastructure facilities; and
WHEREAS, pursuant to Section 5956.4 of the Code provides that a
governmental agency may solicit proposals and enter into agreements with private
entities for the design, construction, or reconstruction by, and may lease to, private
entities various types of fee -producing infrastructure projects, including energy or power
production; and
WHEREAS, pursuant to Section 5956.5 of the Code provides that a
governmental agency soliciting proposals and entering into agreements with private
entities for the studying, planning, design, developing, financing, construction,
maintenance, rebuilding, improvement, repair, or operation, or any combination thereof,
by private entities for fee -producing infrastructure projects shall ensure that the
contractor is selected pursuant to a competitive negotiation process; and
WHEREAS, Section 5956.5 of the Code further states that fee -producing
infrastructure projects may be proposed by the private entity and selected by the
governmental agency at the discretion of the governmental agency, and may be
proposed and selected individually or as part of a related or larger project with a
competitive negotiation process utilizing, as the primary selection criteria, the
demonstrated competence and qualifications for the studying, planning, design,
developing, financing, construction, maintenance, rebuilding, improvement, repair, or
operation, or any combination thereof, of the facility at fair and reasonable prices to the
user of the infrastructure facility services, and shall not require competitive bidding; and
Resolution No. 23905
Page 2
WHEREAS, Section 5956.5 of the Code further states that the governmental
agency soliciting proposals for fee -producing infrastructure projects is not subject to any
other provisions of the California Public Contract Code or the California Government
Code that relates to public procurements; and
WHEREAS, on January 21, 2015, the City Council of the City of Palm Springs,
California, (hereinafter the "City Council'), approved Request for Proposals No. 03-15,
"Design -Build of Solar Electric Systems," (hereinafter the "RFP") to award contracts
(either Design -Build contracts or Power Purchase Agreements, at the sole discretion of
and determination by the City), to selected qualified firms for Design and Construction of
certain "Energy Conservation Measures' in the form of solar panels, monitoring
systems, and tracking devices ("Solar PV Systems') requiring engineering, design,
procurement, construction management, installation, construction, training, monitoring,
verification, maintenance, operation, and repair services ("Services") for Solar PV
Systems at fourteen potential City facilities; and
WHEREAS, in accordance with the legislative authority granted to the City
pursuant to Section 5956.5 of the Code the RFP was not conducted as formal
competitive bid process, but as a formal qualifications based selection which identified
specific evaluation criteria for the selection of qualified firms, including: firm and staff
qualifications, understanding of the scope of work, schedule of performance, proposed
system aesthetics, local expertise, and total project cost; and
WHEREAS, on March 19, 2015, the City received formal proposals from ten
various firms to provide Services related to the Solar PV Systems by the deadline for
submittal of proposals specified by the RFP; and
WHEREAS, the City Council previously engaged the professional engineering
firm of NewcomblAndersonj McCormick (hereinafter "NAM") to perform photovoltaic
feasibility analysis related to potential development of Solar PV Systems at the various
City facilities, including development of the evaluation criteria specified in the RFP for
selection of a firm or firms to be awarded Design -Build contracts or Power Purchase
Agreements for Services required for the Solar PV Systems; and
WHEREAS, an Evaluation Committee including representatives from NAM and
City staff thoroughly reviewed the proposals submitted in response to the RFP on the
basis of the evaluation criteria stated therein, and recommended to the City Council a
final selection of two of the ten firms; and
WHEREAS, on September 2, 2015, the City Council received a presentation on
the final selection of firms to provide Services associated with development of Solar PV
Systems at various City facilities, and authorized staff to proceed with final negotiations
of Design -Build contracts or Power Purchase Agreements with SunEdison and
SolarCity Corporation for specified City facilities; and
Resolution No 23905
Page 3
WHEREAS, final negotiations with SolarCity Corporation have concluded, and as
set forth in the final and best offer included with the proposal submitted by Solar City
Corporation, SolarCity Corporation has committed to perform the required Services for
Solar PV Systems at the City's Wastewater Treatment Plant (hereinafter the "WWTP
Solar PV System"), and at the City's Sunrise Plaza (hereinafter the "Sunrise Plaza Solar
PV System"); and
WHEREAS, a Design -Build contract with SolarCity Corporation in the amount of
$2,178,847.54 to construct a 1,110.42 kW Solar PV System producing 2,442,616 kWh
for the WWTP Solar PV System has been negotiated and recommended for City
Council approval; and
WHEREAS, a Performance Guarantee Agreement with SolarCity Corporation in
the amount of $144,997.48 guaranteeing the production of electricity produced by the
WWTP Solar PV System for a twenty year period has been negotiated and
recommended for City Council approval; and
WHEREAS, an Operation and Maintenance Agreement with SolarCity
Corporation in the amount of $16,844.41 (Year 1), escalating to $29,536.78 (Year 20),
for a total cost of $452,616 providing turn -key preventive maintenance of the WWTP
Solar PV System for a twenty year period has been negotiated and recommended for
City Council approval; and
WHEREAS, a Power Purchase Agreement with SolarCity Corporation to
develop, operate, and maintain a 334.8 kW Solar PV System producing 518,510 kWh
for the Sunrise Plaza Solar PV System with the City purchasing electricity at a fixed rate
of $0.075 per kWh for a twenty year period has been negotiated and recommended for
City Council approval; and
WHEREAS, a Performance Guarantee Agreement with SolarCity Corporation in
the amount of $0 (included in the purchase price of electricity via the Power Purchase
Agreement) guaranteeing the production of electricity produced by the Sunrise Plaza
Solar PV System for a twenty year period has been negotiated and recommended for
City Council approval; and
WHEREAS, the WWTP Solar PV System will generate an estimated $8,360,922
in utility bill savings over the twenty year period covered by the agreements approved
with SolarCity Corporation; and
WHEREAS, the City has been confirmed to receive $1,064,057 in incentive
reservations from the Southern California Edison ("SCE') California Solar Initiative
("CSI") to be applied to the WWTP Solar PV System; and
WHEREAS, after deducting the Sunrise Plaza Solar PV System will generate an
estimated $2,104,668 in utility bill savings over the twenty year period covered by the
agreements approved with SolarCity Corporation; and
Resolution No. 23905
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WHEREAS, the WWTP Solar PV System and Sunrise Plaza Solar PV System
are considered "Projects" as defined by the California Environmental Quality Act
("CEQA"), in that a "Project" means the whole of an action, which has a potential for
resulting in either a direct physical change in the environment, or a reasonably
foreseeable indirect physical change in the environment; and
WHEREAS, the WWTP Solar PV System is proposed to be installed on 5 acres
of currently vacant land surrounding by urban uses located within the City's Wastewater
Treatment Plant, consistent with the applicable general plan designation and all
applicable general plan policies, applicable zoning designation and regulations, on a
project site that has no value as habitat for endangered, rare, or threatened species,
and would not result in any significant effects relating to traffic, noise, air quality or water
quality; and
WHEREAS, pursuant to California Public Resources Code 21084, and Section
15332 of the CEQA Guidelines, the WWTP Solar PV System is considered an "In -Fill
Development Project," defined as a Class 32 Categorical Exemption, and construction
of the WWTP Solar PV System is considered Categorically Exempt from CEQA; and
WHEREAS, Senate Bill 226, effective January 1, 2012, enacted California Public
Resources Code 21080.35, which created a new Categorical Exemption under CEQA
for the installation of solar energy systems, including associated equipment, on the roof
of an existing building or at an existing parking lot; and
WHEREAS, the Sunrise Plaza Solar PV System is proposed to be installed on
the roof of existing buildings located at Sunrise Park, including the Library, Leisure
Center, and Pavilion, and pursuant to California Public Resources Code 21080.35,
construction of the Sunrise Plaza Solar PV System is considered Categorically Exempt
from CEQA; and
WHEREAS, on October 7, 2015, the City Council carefully considered all of the
evidence associated with the proposed agreements with SolarCity Corporation,
including public testimony received, and approved the actions as presented herein.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS
FINDS AND RESOLVES AS FOLLOWS:
SECTION 1. The facts set forth in the Recitals above are true and correct, and
are made a part of this Resolution.
SECTION 2. The WWTP Solar PV System and Sunrise Plaza Solar PV System
are considered infrastructure projects to be implemented under the legislative authority
granted to the City pursuant to Chapter 14, "Infrastructure Financing," commencing with
Section 5956, of the California Government Code.
Resolution No. 23905
Page 5
SECTION 3. The Design -Build contract and Power Purchase Agreement, and
related Performance Guarantee Agreements, and Operation and Maintenance
Agreements, with SolarCity Corporation are considered the types of infrastructure
financing agreements to be entered into with private entities pursuant to Section 5956.4
of the California Government Code.
SECTION 4. The WWTP Solar PV System and Sunrise Plaza Solar PV System
are estimated to save the City $10,465,590 over the twenty year period covered by the
infrastructure financing agreements related to their design, construction, operation, and
maintenance, and award of these agreements is being made in the best interest of the
City.
SECTION 5. The Design -Build contract with SolarCity Corporation in the amount
of $2,178,847.54 to construct a 1,110.42 kW Solar PV System producing 2,442,616
kWh for the WWTP Solar PV System is hereby approved.
SECTION 6. The Performance Guarantee Agreement with SolarCity Corporation
in the amount of $144,997.48 guaranteeing the production of electricity produced by the
WWTP Solar PV System for a twenty year period is hereby approved.
SECTION 7. The Operation and Maintenance Agreement with SolarCity
Corporation in the amount of $16,844.41 (Year 1), escalating to $29,536.78 (Year 20),
for a total cost of $452,616 providing turn -key preventive maintenance of the WWTP
Solar PV System for a twenty year period is hereby approved.
SECTION 8. The Power Purchase Agreement with SolarCity Corporation to
develop, operate, and maintain a 334.8 kW Solar PV System producing 518,510 kWh
for the Sunrise Plaza Solar PV System with the City purchasing electricity at a fixed rate
of $0.075 per kWh for a twenty year period is hereby approved.
SECTION 9. The Performance Guarantee Agreement with SolarCity Corporation
in the amount of $0 (included in the purchase price of electricity via the Power Purchase
Agreement) guaranteeing the production of electricity produced by the Sunrise Plaza
Solar PV System for a twenty year period is hereby approved.
SECTION 10. The design, construction, operation, and maintenance of the
WWTP Solar PV System has been reviewed pursuant to the California Environmental
Quality Act ("CEQA"), and the CEQA Guidelines. The City Council has determined,
based upon its independent judgment, that the WWTP Solar PV System is considered
categorically exempt from CEQA pursuant to California Public Resources Code 21084,
and Section 15332 of the CEQA Guidelines, as a Class 32 Categorical Exemption, and
hereby approves and orders the filing of a CEQA Notice of Exemption.
SECTION 11. The design, construction, operation, and maintenance of the
Sunrise Plaza Solar PV System has been reviewed pursuant to the California
Environmental Quality Act ("CEQA"), and the CEQA Guidelines. The City Council has
Resolution No. 23905
Page 6
determined, based upon its independent judgment, that the Sunrise Plaza Solar PV
System is considered categorically exempt from CEQA pursuant to California Public
Resources Code 21080.35, and hereby approves and orders the filing of a CEQA
Notice of Exemption.
SECTION 12. The City Manager is hereby authorized to execute all necessary
documents and agreements associated with the WWTP Solar PV System and Sunrise
Plaza Solar PV System, including amendments thereto as may be necessary to
implement the terms and conditions therein.
ADOPTED THIS 7T" DAY OF OCTOBER, 2015.
ATTEST:
mes Thompson, City Clerk
David H. Ready, City b4plFer
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS)
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 23905 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 7th day of October, 2015,
by the following vote:
AYES: Councilmember Foat, Councilmember Hutcheson, Mayor Pro Tern
Lewin, and Mayor Pougnet.
NOES: None.
ABSENT: Councilmember Mills.
ABSTAIN: None.
mes Thompson, City Clerk
City of Palm Springs, California
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