CC Resolution No. 14-194 Authorizing an energy service contract for a solar power systen at the Service Center RESOLUTION NO. 14-194
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
MAKING FINDINGS NECESSARY TO AUTHORIZE THE SERVICE CENTER
SOLAR PROJECT, AN ENERGY SERVICE CONTRACT FOR A SOLAR POWER
SYSTEM AT THE CITY OF CUPERTINO'S SERVICE CENTER
WHEREAS, on January 14, 2014 Cupertino Electric Inc. submitted a proposal
in response to the Regional Renewable Energy Procurement (R-RFP), which
included the Service Center Solar Project (the Project), a Solar Power System
installation at the City of Cupertino's Service Center; and
WHEREAS, the submitted proposal for the cost of design and installation of
the Project has been negotiated to not to exceed $490,207.00 (construction cost plus
15% contingency); and
WHEREAS, the City has received. a $64,039.00 incentive reservation from
PG&E California Solar Initiative (CSI) to be applied to the Project; and
WHEREAS, California Government Code Section 4217.12, authorizes public
agencies, including the City of Cupertino, to enter into an energy service contract
when anticipated cost of the conservation services provided by an energy
conservation facility will be less than they anticipated marginal cost of energy that
would have been consumed in the absence of the project;
NOW, THEREFORE, BE IT RESOL�IED that:
The City Council makes the following findings:
1. The new photovoltaic system at the City of Cupertino Service Center is
an "Energy conservation facility" as that term is defined in Government
Code section 4217.11(e).
2. The Solar Power System Project includes the acquisition, design,
construction and installation of equipment that reduces energy use or
makes for a more efficient: use of energy and thereby qualifies as
"conservation measures" as that term is defined in Government Code
section 4217.11(c).
3. The construction and installation of the Solar Power System Project,
which will generate energy savings, are "conservation services" as that
term is defined in Government Code section 4217.11(d).
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4. The proposed contract between the City and Cupertino Electric Inc., for
the design; construction and installation of the Solar Power System
Project conservation measures, qualifies as an "energy service contract"
as that term is defined in Government Code section 4217.11(f).
5. Over its 25 year expected life span, the total cost of the Solar Power
System at the City's Service Center will be less than the anticipated
$1,688,869 cost of electricity that would have been consumed by the
Service Center in the absence of this system.
6. The terms of the award of the contact to Cupertino Electric Inc. for the
design, construction, and installation of the Service Center Solar Project
is in the best interest of the City of Cupertino.
7. The City Manager is authorized to negotiate and execute the Energy
Services Contract, which includes a performance guaranty, and ' the
Operations and Maintenance Agreement with Cupertino Electric Inc.
The City Manager is further authorized to finalize all required
documents within the financial terms described, including the bond for
completion by the Contractor, after having said documents reviewed
and approved by City Attorney.
PASSED AND ADOPTED by the City Council of the City of Cupertino, this
2nd day of September, 2014, by the following vote:
Vote: Members of the Citv Council
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AYES: Wong, Sinks, Chang, Mahoney, Santoro
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST: APPROVED:
Grace Schmidt, City Clerk Gilbert Wong, Mayor, Ci Cupertino
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