AgdaPkt 2015-03-23 Closed and Joint SA PFA

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8.A. - Page 2 from the other participating agencies to develop the R-REP bid package, which was released publicly in September 2013. The process was structured as an indefinite quantity, multiple award, best-value solicitation, and was conducted in accordance with Government Code Section 4217.10, et seq., which authorizes public agencies to solicit proposals from qualified firms 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. The R-REP bid period ended in October, 2013. The City is recommending an agreement with CEI Solar One, LLC (a wholly owned subsidiary of Cupertino Electric, Inc., which was the second-ranked lowest bidder when the parties were unable to agree on terms with the lowest bidder, SolarCity. The project is coming before Council now for approval to execute an energy services contract with CEI Solar One, LLC. (a wholly owned subsidiary of Cupertino Electric, Inc.) to move forward in the procurement process. ANALYSIS Project Benefits Cost Savings Based on the financial analyses prepared by Optony, Inc. for the project proposed by Cupertino Electric, Inc., the cost savings that the City will realize through the PPA over 20 years is approximately $342,125. GHG Reductions The solar arrays are expected to produce about 288,842 kWh of electricity in the first year, producing approximately 76% of the facility's electricity use and resulting in an estimated reduction of the equivalent of 40 metric tons of 002. Rain/Sun Protection In addition to the solar benefits, the carport structures will also provide shading of vehicles. The reduced summertime interior temperature of vehicles should result in fuel savings due to reduced need for air conditioning, and should also reduce heat related impacts on upholstery and paint. The carports will also provide rain protection. Workforce Benefits An RREP Workforce Taskforce composed of industry and labor representatives recommended that vendors be required to show a good faith effort to hire 40% of all required labor locally, with locally being defined as the nine-county Bay Area to reflect the regional nature of the project. The PPA includes CEI Solar One, LLC's plan for achieving this 40% goal. Power Purchase Agreement (PPA) vs. Direct Purchase An important component of the decision to move forward with solar power is the financing method to be used. A PPA is a third-party ownership model where a taxable