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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Request for Proposal for Development of a Plan for Clean Energy Studies per Council Resolution No. 22-125.
1) Resolution directing staff to issue a Request for Proposals (RFP) for development of a Plan to Increase Solar Penetration and Develop Additional Distributed Energy Resources (DER), Consistent with Council Resolution No. 22-125.
2) Motion to Note and File Report.
COUNCIL ACTION
Item Type: Action
Approved for November 15, 2022 calendar
EXECUTIVE SUMMARY
On August 16, 2022, City Council adopted Resolution No. 22-125, which among other things, declared the City of Glendale’s intent to adopt policies and practices designed to reach a goal of having at least ten percent of GWP customers adopt solar and energy storage systems by 2027, and develop additional demand management measures, with a minimum total peak dispatchable and peak-load-reducing capacity of 100 MW. In support of said goals, City Council directed staff to submit a proposed Request for Proposals (RFP) to engage the services of a consultant, or consultants to develop the plan and to complete the studies and analysis specified in Resolution No. 22-125, along with proposed timelines for the work, to City Council for its consideration on or before November 15, 2022.
COUNCIL PRIORITIES
Environmental Stewardship: The development of a plan will assist as a roadmap to achieving the goal of having at least ten percent of GWP customers adopt solar and energy storage systems, and to develop additional demand management measures.
RECOMMENDATION
Authorize the City Manager, or his designee, to issue the RFP attached hereto as Exhibit 1, and to note and file this report.
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BACKGROUND
The City of Glendale is fully supportive of ensuring a clean energy future for its citizens.
On August 16, 2022, the City Council resolved the following through Resolution No. 22- 125:
The City of Glendale intends to maximize the use of clean and renewable energy to serve Glendale’s energy needs.
It is the policy of the City of Glendale that future investments in equipment and infrastructure to produce electricity to serve the needs of the City and utility customers will, to the maximum extent possible, be in clean, renewable, or non- carbon-emitting resources excluding renewable biofuels not already permitted or approved.
The City of Glendale intends to achieve 100% clean, renewable, or non-carbon- emitting energy excluding renewable biofuels not already permitted or approved, by no later than 2035.
The City of Glendale intends to adopt policies and practices designed to reach a goal of having at least ten percent of GWP customers adopt solar and energy storage systems by 2027, and develop additional demand management measures, with a minimum total peak dispatchable and peak-load-reducing capacity of 100 MW.
In realization of these goals, City Council directed staff to prepare a proposed Request for Proposals to engage the services of a consultant, or consultants, to develop a plan and to complete the studies and analysis consistent with Resolution No. 22-125, along with proposed timelines for the work, to be submitted to City Council for its consideration on or before November 15, 2022.
ANALYSIS
Exhibit 1, attached, is the proposed Request for Proposals (RFP) directed by City Council on August 16, 2022. Much of the RFP contains standard language and legal requirements. The relevant sections for review, discussion, and comment are as follows:
1. Introduction.
A. Services Requested
Under this RFP, the City of Glendale, through its utility department, Glendale Water & Power (“GWP” or “City”) is soliciting proposals from suitably qualified proposers (“Contractor”) for the three categories of services listed under the Scope of Services section. The City may award each category of services separately, or as one contract.
B. Mandatory Qualifications
To be eligible to perform the services, a Proposer must meet the minimum qualification requirements, which the City will determine from the Proposer’s Qualification Statement. The Proposer’s Qualification Statement is contained in the City’s Proposal Forms contained in the RFP (Appendix D). As part of the Proposer’s Qualifications Statement, the proposal must provide 38c
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satisfactory evidence that:
The Proposer has successfully completed at least two similar projects; each comparable in scope and scale to that proposed in the proposal, within five years before the proposal deadline, and with a dollar value equal to or in excess of the proposal submitted for this project.
2. Scope of Services.
Category 1: Solar and DER Development Plan
Develop a plan to achieve the goal of having at least ten percent of GWP customers adopt solar and energy storage systems by 2027, and to develop additional demand management measures, with a minimum total peak dispatchable and peak-load-reducing capacity of 100 MW.
The plan must include policies and incentives designed to be sufficient to ensure customers will adopt solar and energy storage at a rate that achieves the adoption and capacity goals stated above.
The plan must include an alternative approach with a mix of storage at customer sites and at GWP-controlled sites, rather than all storage being located at customer sites.
The plan must include, at a minimum, the following specific policies and incentives:
Maintenance of a robust Net Metering policy.
Upfront incentives or rebates on solar installations designed to achieve a payback period that will prompt consumers to adopt solar and storage in numbers sufficient to reach the goals. Development of a competitive Feed-in Tariff program.
Upfront rebates combined with ongoing performance-based incentives for battery storage systems.
Policies specifically aimed to lower-income customers, customers in heavily pollution-burdened areas of the City, multifamily properties, and rental properties.
The plan should also include additional incentives and outreach programs for energy efficiency, demand reduction, and shifting energy use to off-peak time periods.
The plan shall consider electric system reliability.
Category 2: Estimate of Dispatchable Capacity Analysis Calculate the estimated dispatchable capacity and demand reduction that can be achieved through the plan developed in Category 1.
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Category 3: Cost & Benefit Analysis
Complete an analysis of the benefits and cost of the plan developed in Category 1. The analysis must include: direct and indirect economic benefits and costs, as well as environmental, societal, and other noneconomic benefits and costs, and direct and indirect impacts to low- and moderate-income households. If the analysis concludes any negative impact, the consultant shall include program options to mitigate the impact.
3. Method of Selection.
Proposals will first be reviewed to ensure compliance with the terms of the RFP.
Non-compliant or non-responsive proposals may be rejected. The City will then evaluate the proposals in accordance with the criteria listed below.
A. Basis for Award and Evaluation Criteria.
The City will conduct an initial review of all proposals for responsiveness and compliance with minimum and mandatory requirements on a pass/ fail basis.
Proposals that satisfy the initial review will be evaluated and scored on the criteria listed below. Each criterion has a maximum allowable percentage.
B. Selecting a Proposer.
Proposals will be reviewed and evaluated by a panel comprised of City staff familiar with the subject matter of the Project. In addition, the evaluation panel may include such outside public sector or academic community expertise as deemed desirable by the General Manager, the City Manager and/or the City Council.
All short-listed Proposers shall attend a mandatory oral interview. Failure to attend the mandatory interview will result in rejection of the proposal as non- responsive.
If the City Council approves a proposal or proposals for further consideration, GWP will begin work with the selected Proposer(s) to implement the proposed project.
WEIGHT
25%
20%
20%
20%
15%
Reasonableness and quality of the proposal
Proposal cost
Ability to meet proposed schedule and budget estimates
CRITERIA COMPONENT
Proposer’s qualifications and experience
Proposed methodolgy/approach to be used in the development of the benefit-cost analysis
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4. Anticipated Schedule of Events. The following is the anticipated schedule of events for this RFP. GWP reserves the right to modify the schedule of events as needed, in its discretion:
STAKEHOLDERS/OUTREACH
N/A
FISCAL IMPACT
There is no fiscal impact at this time.
ENVIRONMENTAL REVIEW
This item is exempt from the California Environmental Quality Act (CEQA). It is not a project as defined by CEQA and there is no reasonable likelihood that compliance with AB 361 will result in any significant impacts to the environment.
CAMPAIGN DISCLOSURE
This item is exempt from campaign disclosure requirements.
ALTERNATIVES
Alternative 1: Authorize the City Manager, or his designee, to issue the RFP as drafted and note and file this report.
Alternative 2: Direct the City Manager, or his designee, to incorporate changes and recommendations of City Council and issue the modified RFP.
Alternative 3: Consider any other alternative not proposed by staff.
DATE EVENT RESPONSIBILITY
December 1, 2022 RFP Distribution City
January 1, 2023 Submit Notice of Intent to Submit Proposal (optional) Proposer TBD Optional Proposer Conference City
January 27, 2023 Last Day to Submit interim Questions Proposer February 3, 2023 Proposal Deadline, No Later Than 5:00 PM Proposer February 2023 City Reviews Proposals for Completeness City February 2023 Panel Reviews Proposals City
March 2023 Short-listed Candidate Interviews City
March 2023 Final Candidate(s) Announced City
March 2023 Last Day to Object to RFP or Evaluation Process Proposer May 2023 Contract Award (City Council approval) City
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ADMINISTRATIVE ACTION
Prepared by:
Craig Kuennen, Assistant General Manager - Business Services Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS / ATTACHMENTS
Exhibit 1: Request for Proposals for Developing a Plan to Increase Solar Penetration, and Develop Additional Distributed Energy Resources (DER).