201 S. Anaheim Blvd.
Suite #1101
Anaheim, CA 92805
Tel: (714) 765-5173
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: FEBRUARY 27, 2024
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: MONITORING AND MAINTENANCE AGREEMENT FOR
SOLAR PHOTOVOLTAIC SYSTEMS
ATTACHMENT (Y/N): YES ITEM # 19
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1) Approve a monitoring and maintenance agreement (Agreement) between the City of Anaheim (City) and Borrego Energy, LLC (Borrego) for solar photovoltaic (PV) systems operated by Anaheim Public Utilities, in an annual amount of $125,000 per year with rollovers of unspent funds to subsequent years and an annual Consumer Price Index (CPI) escalator, for a term of five years with up to five one-year, optional extensions; and
2) Authorize and direct the Public Utilities General Manager or designees, on behalf of the City, to (a) execute and deliver the Agreement and any supporting documents, including to execute letter agreements and make changes to Exhibits A and B of the Agreement on an as-needed basis to add new PV systems to the Agreement’s scope of services, and (b) take such actions as are necessary or advisable to implement, fund, and administer the Agreement.
DISCUSSION:
At its meeting on January 24, 2024, the Public Utilities Board recommended that the City Council approve the Agreement.
Anaheim Public Utilities (APU) has installed and currently operates ten solar PV systems located in Anaheim. One large system was installed on the roof of the Anaheim Convention Center, and nine carports and shade structures were installed on school properties as part of the Solar for Schools program. The combined capacity of the solar PV systems is 3.9 Megawatts (MW) and collectively, they produce approximately 6,000 Megawatt-hours of clean, renewable energy each year which can power over 1,000 homes. The energy is tracked and allocated to participating income-qualified residents as part of the Community Solar Discount Program that offers bill assistance since many residents are unable to install solar on their own.
Monitoring and Maintenance Agreement for Solar Photovoltaic Systems February 27, 2024
Remote monitoring of the solar PV systems is required to ensure optimal energy production and respond to system outages. Additionally, periodic maintenance services are needed to inspect, make repairs, and clean the solar panels. The following locations are included in the scope for services for monitoring and maintenance services:
1. Anaheim Convention Center
2. Benjamin Franklin Elementary School
3. Betsy Ross Elementary School
4. Centralia Elementary School
5. Cerritos Elementary School
6. Danbrook Elementary School
7. Dr. Jonas Salk Elementary School
8. Esperanza High School
9. Hansen Elementary School
10. Lord Baden-Powell Elementary School
In January 2023, APU issued a Request for Proposals (RFP) for monitoring and maintenance services, seeking a qualified contractor through the City’s online purchasing portal. Approximately 439 vendors were notified of the RFP, and 24 vendors identified themselves as potential respondents. Only one proposal was received for consideration. The due date was extended in an effort to receive additional proposals; however, other contractors indicated they were too busy or focused on new construction projects and declined to submit a proposal.
Borrego’s proposal was evaluated following Council Policy 4.1, including the ability to perform the specific tasks outlined in the RFP, qualifications of personnel, demonstrated record of success on similar projects, and reasonableness of fees. Borrego has extensive experience in operating and maintaining PV systems throughout California and the United States and has maintained the Anaheim Convention Center’s PV system for the past eight years under an existing agreement with the City. Borrego provides similar services to over 100 customers in the state, including the cities of South El Monte, Mill Valley, and Benicia.
The base price for the services included in the proposed Agreement (Attachment 1) is about $72,600 per year for ten sites with an annual CPI escalation. The annual pricing limit is set at $125,000 per year in order to pay for any unforeseen corrective repairs not under warranty as directed by APU and allows for the rollover to future years of any unspent funds. Pricing from Borrego is consistent with the National Renewable Energy Laboratory (NREL) report for similar types of operating and maintenance services for solar panel systems.
The term is for five years with up to five (5) one-year, optional extensions. Should APU install new solar panel systems to its facilities in the future, the Agreement allows for the addition of new PV systems to the scope of services.
Monitoring and Maintenance Agreement for Solar Photovoltaic Systems February 27, 2024
IMPACT ON BUDGET:
Sufficient funds are included in APU’s Fiscal Year 2023/24 restricted Electric fund budget, with future years subject to City Council approval of budget appropriations.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachment:
1. Agreement for Monitoring and Maintenance of PV Systems between the City of Anaheim and Borrego Energy, LLC