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HomeMy WebLinkAbout31-21RESOLUTION 31-21 A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS MAKING FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 4217.10 ET SEQ. FOR A PROPOSED BATTERY BACK-UP SYSTEM AND AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH SYSERCO ENERGY SOLUTIONS FOR RELATED WORK WHEREAS, the Town of Los Altos Hills ("Town") desires to optimize electrical utility use and to ensure its facilities are operable to provide essential government services and would function during events that result in the loss of electrical power; and WHEREAS, the Town's current emergency back-up generator, installed in 1993, is powered by duel fuel (propane and natural gas) and serves as the sole source of emergency power during power outages to provide for essential government functions; and WHEREAS, the Town proposes to replace the existing emergency back-up generator by installing a battery back-up system that would connect to the Town's existing solar photovoltaic power system, charge during non -peals, non -emergency hours, and offload power during high demand hours or emergency situations; and WHEREAS, as described in the accompanying staff report, such a battery back-up system would efficiently leverage energy obtained from the existing solar power system and would thus: (1) provide for efficient energy use and storage, and (2) provide greater certainty for continued operations in power outages and enable the Town to provide essential government services; and WHEREAS, the Town has successfully applied for a $250,000 grant from the California Governor's Office of Emergency Services (Cal OES) as a part of the FY2020-21 Community Power Resiliency Allocation to Cities, which funding would be applied towards the battery back- up system project; and WHEREAS, California Government Code section 4217.10 et seq. allows municipalities such as the Town to enter into "energy service contracts" on such terms and conditions as the City Council determines are in the best interest of the Town, by malting certain findings at a noticed public hearing; and WHEREAS, an "energy services contract" means an agreement providing electrical or thermal energy or "conservation services" where equipment, load management techniques or other energy- efficient or reduction measures on public property are utilized to result in electrical, thermal, or other energy savings to the Town; and WHEREAS, Government Code section 4217.16 authorizes the Town to award such energy services contract after requesting proposals from qualified persons and evaluating such proposals based on experience of the contractor, type of technology employed by the contractor, cost to the Town, and any other relevant considerations; and Resolution 31-21 Page 1 WHEREAS, Government Code section 4217.18 construes the aforementioned provisions to provide the greatest flexibility to the Town in structuring agreements to maximize the economic benefits of, and minimize financing and other costs associated with, the design and construction of alternate energy projects; and WHEREAS, for the proposed battery back-up system project, Town staff solicited three quotes from energy consultants Recolte Energy, Sage Renewables, and Syserco Energy Solutions, to procure the technical expertise and capability to provide the Town with the design, supply, and installation of such battery back-up system and resulting electricity services; and WHEREAS, Syserco Energy Solution possesses such technical expertise and submitted a "design - build" proposal with the lowest price; and WHEREAS, the Town has negotiated an agreement with Syserco Energy Solution, substantially in the same form as the document attached in Exhibit A (the "Energy Services Agreement"); and WHEREAS, the installation of a battery back-up system would achieve the aforementioned energy savings and sustainability goals, including helping the Town achieve efficient energy use and maintain endurance during the anticipated upcoming fire season and related Public Safety Power Shut-off (PSPS) events; and WHEREAS, on May 20, 2021, the City Council conducted a duly noticed public hearing at its regular meeting, the notice of which was provided two weeks in advance thereof, where it heard testimony and accepted a report from Town staff establishing information that the anticipated cost to the Town for the installation of the battery back-up system on Town property will be less than the anticipated marginal cost to the Town of electricity otherwise consumed without such system or by otherwise providing backup electricity through propane, diesel or gas -powered generators. NOW, THEREFORE, BE IT RESOLVED that the City Council of the Town of Los Altos Hills does hereby take the following actions: 1. The City Council finds that the above recitals are true and correct and are incorporated herein as if stated in full. 2. The City Council makes the following findings pursuant to Government Code section 4217.12: a. It is in the best interest of the Town to enter into the Energy Services Agreement with Syserco Energy Solution; and b. The anticipated cost to the Town for electrical energy from the battery back-up system will be less than the anticipated marginal cost to the Town of thermal, electrical, or other energy that would have been consumed by the Town in the absence of such back-up system, or by otherwise providing backup electricity through propane or natural gas -powered generators; and Resolution 31-21 Page 2 c. Funds for the payment for electricity services provided for under such Energy Service Agreement are projected to be available from funding which would have otherwise been used for the purchase of thermal, electrical and other energy required by the Town in the absence of such electrical energy services. d. It is in the best interest of the Town to enter into the Energy Services Agreement with Syserco Energy Solution. 3. The City Council hereby approves and authorizes the City Manager to execute the Energy Services Agreement with Syserco Energy Solutions, in substantially the same form as Exhibit A attached hereto and incorporated herein, subject to approval by the City Attorney as to form, and to take all actions and execute all documents that are necessary to carry out the intent of this Resolution. The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a regular meeting held on the 20th day of May 2021 by the following vote: AYES: Tanlcha, Tyson, Mok, Schmidt, Swan NOES: None ABSTAIN: None ABSENT: None ATTEST: IRADeborah .11 . 3760938.1 BY: A.'_ `-_ l- Kavita Tanlcha, Mayor Resolution 31-21 Page 3 AGREEMENT Exhibit A THIS AGREEMENT is made and entered into on the 20th day of May, 2021 by and between the TOWN OF LOS ALTOS HILLS (hereinafter referred to as "TOWN") and Syserco Energy Solutions (hereinafter referred to as "CONTRACTOR"). In consideration of their mutual covenants, the parties hereto agree as follows: 1. CONTRACTOR. Shall provide or furnish the following specified services and/or materials: Provide the Town support in the design, documentation, permit & bid support, and construction administration services on the Town's CIP to install a new electrical energy storage system. 2. EXHIBITS. The following attached exhibits are hereby incorporated into and made a part of this Agreement: Proposal from CONTRACTOR dated April 13, 2021 3. TERMS. The services and/or materials furnished under this Agreement shall commence May 20, 2021 and shall be completed by May 20, 2023, unless terminated pursuant to Section 5(f). 4. COMPENSATION. For the full performance of this Agreement: a. TOWN shall pay CONTRACTOR an amount not to exceed fourteen thousand eight hundred and ninety four dollars and zero cents ($14,864.00) within thirty (30) days following receipt of invoice and completion/delivery of services/goods as detailed in Sections 1, 2, and 3 of this Agreement and only upon satisfactory delivery/completion of goods/services in a manner consistent with professional/industry standards for the area in which CONTRACTOR operates. TOWN is not responsible for paying for any work done by CONTRACTOR or any subcontractor above and beyond the not to exceed amount. b. Town shall not reimburse for any of CONTRACTOR's costs or expenses to deliver any services/goods. Town shall not be responsible for any interest or late charges on any payments from Town to CONTRACTOR. c. CONTRACTOR is responsible for monitoring its own forces/employees/agents/ subcontractors to ensure delivery of goods/services within the terms of this Agreement. TOWN will not accept or compensate CONTRACTOR for incomplete goods/services. Town of Los Altos Hills Short form Updated 4/23/10 Page 1 of 4 Resolution 31-21 Page 4 5. GENERAL TERMS AND CONDITIONS. a. HOLD HARMLESS. CONTRACTOR agrees to indemnify, defend and hold harmless the TOWN, its officers, agents and employees from any and all demands, claims or liability of personal injury (including death) and property damage of any nature, caused by or arising out of the performance of CONTRACTOR under this Agreement. With regard to CONTRACTOR'S work product, CONTRACTOR agrees to indemnify, defend and hold harmless the TOWN, its officers, agents and employees from any and all demands, claims or liability of any nature to the extent caused by the negligent performance of CONTRACTOR under this Agreement. b. INSURANCE. CONTRACTOR shall file with the TOWN a certificate of insurance before commencing any services under this Agreement as follows: WORKERS COMPENSATION INSURANCE: Minimum statutory limits. COMMERCIAL GENERAL LIABILITY AND PROPERTY DAMAGE INSURANCE: General Liability and Property Damage Combined. $1,000,000.00 per occurrence including comprehensive form, personal injury, broad form personal damage, contractual and premises/operation, all on an occurrence basis. If an aggregate limit exists, it shall apply separately or be no less than two (2) times the occurrence limit. iii. AUTOMOBILE INSURANCE: $1,000,000.00 per occurrence. iv. ERRORS AND OMISSIONS INSURANCE: $1,000,000.00 aggregate. v. NOTICE OF CANCELLATION: The City requires 30 days written notice of cancellation. Additionally, the notice statement on the certificate should not include the wording "endeavor to" or "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representatives." vi. CERTIFICATE OF INSURANCE: Prior to commencement of services, evidence of insurance coverage must be shown by a properly executed certificate of insurance and it shall name "The Town of Los Altos Hills, its elective and appointed officers, employees, and volunteers" as additional insureds. vii. To prevent delay and ensure compliance with this Agreement, the insurance certificates and endorsements must be submitted to: Town of Los Altos Hills Short form Updated 4123110 Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 Page 2 of 4 Resolution 31-21 Page 5 c. NON-DISCRIMINATION. No discrimination shall be made in the employment of persons under this Agreement because of the race, color, national origin, age, ancestry, religion or sex of such person. d. INTEREST OF CONTRACTOR. It is understood and agreed that this Agreement is not a contract of employment and does not create an employer-employee relationship between the TOWN and CONTRACTOR. At all times CONTRACTOR shall be an independent contractor and CONTRACTOR is not authorized to bind the TOWN to any contracts or other obligations without the express written consent of the TOWN. In executing this Agreement, CONTRACTOR certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of TOWN. e. CHANGES. This Agreement shall not be assigned or transferred without advance written consent of the TOWN. No changes or variations of -any kind are authorized without the written consent of the City Manager. This Agreement may only be amended by a written instrument signed by both parties. f. TERMINATION. This Agreement may be terminated by TOWN upon seven (7) days written notice to CONTRACTOR. Monies owed for work satisfactorily completed shall be paid to CONTRACTOR within 14 days of termination. g. RECORDS. All reports, data, maps, models, charts, studies, surveys, calculations, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that are prepared or obtained pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the TOWN. CONTRACTOR hereby agrees to deliver those documents to the TOWN at any time upon demand of the TOWN. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the TOWN and are not necessarily suitable for any future or other use. Failure by CONTRACTOR to deliver these documents to the TOWN within a reasonable time period or as specified by the TOWN shall be a material breach of this Agreement. TOWN and CONTRACTOR agree that until final approval by TOWN, all data, plans, specifications, reports and other documents are preliminary drafts not kept by the TOWN in the ordinary course of business and will not be disclosed to third parties without prior written consent of both parties. All work products submitted to the TOWN pursuant to this Agreement shall be deemed a "work for hire." Upon submission of any work for hire pursuant to this Agreement, and acceptance by the TOWN as complete, non- exclusive title to copyright of said work for hire shall transfer to the TOWN. The compensation recited in Section 4 shall be deemed to be sufficient consideration for said transfer of copyright. CONTRACTOR retains the right to use any project records, documents and materials for marketing of their professional services. Town of Los Altos Hills Short form Updated 4/23/10 Page 3 of 4 Resolution 31-21 Page 6 h. ENTIRE AGREEMENT. This Agreement represents the entire agreement between the Parties. Any ambiguities or disputed terms between this Agreement and any attached Exhibits shall be interpreted according to the language in this Agreement and not the Exhibits. 6. INVOICING. Send all invoices to the contract coordinator at the address below. This Agreement shall become effective upon its approval and execution by TOWN. In witness whereof, the parties have executed this Agreement the day and year first written above. CONTRACT COORDINATOR and representative for TOWN: Cody Einfalt Management Analyst Town of Los Altos Hills 26379 Fremont Road Los Altos Hills, CA 94022 CONTRACTOR: By: Signature Date Print name, Title TOWN OF LOS ALTOS HILLS: Carl Cahill, City Manager Date Town of Los Altos Hills Page 4 of 4 Short form Updated 4/23/10 Resolution 31-21 Page 7 April 13, 2021 Cody Einfalt Management Analyst Town of Los Altos Hills 23679 Fremont Road Los Altos Hills, CA Gabe Johnson Syserco Energy Solutions, Inc. 215 Fourier Ave. Fremont, CA 94539 Subject: Letter of Intent to Contract and Approval to Proceed with Detailed Engineering and Final Project Development Dear Mr. Johnson, The Town of Los Altos Hills ("Town") has an interest in partnering with a firm that will assist the Town with the development and implementation of a Battery Storage System at the Town Hall. The purpose of the project is to provide additional backup for critical systems during PSPS events, or other power shutdowns. Additionally, the Town is interested in utilizing the Battery Storage System as a mechanism to reduce ongoing electricity charges during peak hours of the day, resulting in operational cost savings for the Town. Specifically, the Town is seeking a qualified firm to provide the following services: 1. Evaluate the previous facility energy usage. 2. Evaluate the anticipated future facility usage. Information about future expansion plans will be provided. 3. Evaluate the existing PV system for historic size and production values. 4. Provide sizing and equipment specification recommendations for an ESS system (batteries, controls, and grid forming inverter) to adequately support a Town Hall facility microgrid, both from a technical and financial perspective. 5. Provide consulting / recommendations regarding the use of the ESS to provide peak shaving and microgrid capabilities. 6. Provide consulting services to prepare and submit any required utility interconnection agreements, required to satisfy the grant and/or utility company requirements. 7. Provide consulting services to help the City make sure it complies with all grant requirements and timelines. The grant agreement will be provided for review. 8. Coordinate with O'Mahony & Myer for design related issues that will become part of the bid set of plans that O'Mahony & Myer will prepare and see through construction. The Town recognizes that Syserco Energy Solutions (SES) in an Integrated Design -Build Energy Services Provider and seeks to provide "comprehensive" services that include the overall Project Development AND Implementation of this Battery Storage System project. The Town also recognizes that SES strongly Resolution 31-21 Page 8 encourages the Town to utilize the "Design -Build" construction model, whereas the same firm that designs the system, also builds the system. For this reason, the Town accepts Syserco Energy Solutions proposal to work closely with O'Mahony & Myer for logistical data sharing and coordination, and shall maintain responsibility for Items 1-7, as listed above, but Item #8 shall not apply, as Syserco Energy Solutions shall be responsible for Items 1-7, and all required engineering and construction management for the implementation of the project. California Government Code 4217 allows public agencies in CA to directly enter into an Agreement with Energy Services firms without the requirement of a "low bid" or RFQ process, as long as the project meets the requirements of CA Govt Code 4217 by producing enough energy savings over the estimated life of the system that is greater than the initial cost incurred by the Town to build the project. The Town intends to leverage grant funding for this project from Silicon Valley Clean Energy and CAL OES, to minimize initial costs incurred by the Town. This project meets the requirements of CA Govt Code 4217 and the the Town intends to enter into an Energy Services Agreement ("Agreement") with SES if the following Project Criteria is met: 1. Scope Completion: SES performs the tasks as identified as #s 1-7, listed above. 2. Project Budget: Entire project must be funded by combination of grant funding from SVCE and CalOES, and $200K maximum contribution by the Town. 3. Energy Savings: 100% of energy savings goes directly to Town of Los Altos Hills. Savings shall not be shared with SES or others. 4. Design & Installation: Battery Storage System shall be designed and installed by SES. 5. Procurement Method: Procurement of SES shall meet provisions of California Government Code 4217. In the event that SES cannot meet these Project Criteria, there will be no charge to Town of Los Altos Hills for the costs incurred by SES under this Agreement. In the event that SES meets the Project Criteria as stated above, and the parties execute an Agreement for the installation of Battery Storage System that is designed and built by SES, then the costs associated with this Work shall be included in the Energy Services Agreement. In the event that SES meets the Project Criteria as stated above, and the Town does not enter into an Agreement within forty-five (45) days following the presentation of an Agreement, then Town of Los Altos Hills shall pay SES for costs incurred in the amount of $14,864. Resolution 31-21 Page 9 ACTIONS TO BE PERFORMED: In order for SES to complete the Work, Town shall provide SES with the following (if not already provided): • 2 -year history of utility bills or a signed form authorizing SES to act as an Agent for Town of Los Altos Hills and receive the data directly from the Utility Provider. • Reasonable access to facilities and design drawings The Work is a very collaborative effort. The Work is intended to form the basis of a Final Proposal and contracting documents. Therefore, Town shall also: • Assign a main Point of Contact for the Work 9Name, Title» • Provide reasonable access to Key Stakeholders: o Facilities Point of Contact �<Name, Tltle>> o Town AdministratorNr1e Title» TIMELINE AND MILESTONES: SES will initiate this Work immediately upon acceptance of this Letter. Formal progress review meetings will be conducted regularly throughout the process of the Work. During these review meetings, SES will make recommendations based on preliminary analysis, while Town will provide final direction regarding acceptance of the recommendations in the Scope of Work of the Project. The goal of these review meetings is to focus engineering / project development efforts, budgeting, and savings assessment for a successful project that is closely aligned with the goals of the Town. The following are recommended milestones: • April, 2021 - Authorization to Proceed based on signature of Letter • April, 2021 - Project Development Kickoff Meeting • May, 2021 - 40% Design Review Meeting • July, 2021 - 80% Design Review Meeting • Aug, 2021 - Project Development Completion • Sept, 2021 - Energy Services Agreement Approved by Town • Oct, 2021 - Begin Project Implementation • Oct, 2021 - All Material Ordered ahead of CalOES October 30 deadline Please signify acceptance of this Letter of Intent by signing below. Letter of Intent Authorized by: �<Name» <Tltle» Town of Los Altos Hills Scott Meinzen VP General Manager Syserco Energy Solutions, Inc. Signature Signature Date: Date: Resolution 31-21 Page 10 Add Alternate #1 Town -Wide Energy Analysis For no additional cost to the Town, SES will include a Town -Wide "Preliminary Feasibility Analysis" (PFA) to achieve the following: • Establish Energy -Use Baseline for each applicable facility in the study • Identify Energy Efficiency Opportunities for each applicable facility in the study • Identify Solar PV Opportunities for each applicable facility in the study • Present funding/financing solutions for the implementation of identified energy efficiency and solar PV opportunities • Present Findings to Town Administrators in the form of a Presentation with Recommended Next Steps If the Town wishes to include this work as part of this project development effort, please check the following box: Yes, please include. Resolution 31-21 Page 11