City of Gonzales
PUBLIC WORKS / CITY ENGINEER DEPARTMENT
STAFF REPORT
TO: Honorable Mayor Rios and City Council
DATE: April 4, 2022
FROM: Patrick Dobbins, Public Works Director/City Engineer THROUGH: René L. Mendez, City Manager
SUBJECT: Resolution No. 2022-16 Authorizing Execution of an Agreement with ENGIE Services
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 2022-16, A Resolution of the City Council of the City of Gonzales Authorizing Execution of an Operation & Maintenance Agreement with ENGIE Services in the amount of $225,000 which includes a contingency budget of $17,029 for maintenance of six City-owned solar arrays for a five-year period.
BACKGROUND
The City of Gonzales currently has solar arrays located at the following facilities:
1. Well #6
2. Police Station
3. Corporation Yard
4. Community Pool
5. Constellation Winery (provides electric power for City Well #4)
6. Wastewater Treatment Plant
The City solar array facilities referenced above were installed between 2011 and 2016 by Chevron Energy Solutions. On December 1, 2011, the City entered into an agreement with Chevron Energy Solutions for maintenance of City solar facilities (#1 through #4) for a 5-year term. During the term of said agreement, Chevron Energy Solutions transferred its rights and obligations under the agreement to OpTerra Energy Services. Additionally, on February 25, 2016, the City entered into an agreement with OpTerra Energy Services for maintenance of City solar facilities (#5 and #6) for a 5-year term. Therefore, OpTerra AGENDA
ITEM
6 Energy Services was obligated, under the two (2) agreements (Chevron Energy Solutions and OpTerra Energy Services), to provide maintenance for all City solar facilities (#1 through #6) for a 5-year term. • The agreement with Chevron Energy Solutions for the installation and maintenance of the solar arrays at Constellation Winery, which provides electric power for City Well #4 and at the City Wastewater Treatment Plant, was executed on December 1, 2011. • The agreement with OpTerra Energy Services (successor to Chevron Energy Solutions) was executed on February 25, 2016. The agreement provided for installation and maintenance of the City solar arrays at Well #6, the Police Station, Corporation Yard, and the Community Pool.
Note: During the term of the OpTerra Energy Services agreement, OpTerra Energy Services transferred its rights and obligations under the agreement to ENGIE Services, Inc.
REVIEW & ANALYSIS
The maintenance agreements referenced above have expired. As such, staff coordinated with staff of ENGIE Services to prepare the subject Operations and Maintenance Agreement to provide for continued solar array maintenance, and to incorporate the maintenance of the six City-owned solar array facilities into one agreement. The maintenance tasks under the Agreement include:
1. Visual inspections
2. Cleaning the solar array panels
3. System testing
4. Inverter cleaning
5. System monitoring
The cost for services provided by ENGIE Services is presented in the Annual Cost Table below:
Year 1 $39,172
Year 2 $40,347
Year 3 $41,558
Year 4 $42,805
Year 5 $44,089
Total = $207,971
Staff recommends that the City Council authorize execution of the Operations and Maintenance Agreement with ENGIE Services for maintenance of the six City-owned solar arrays for a five-year period.
How Recommendation Supports the Vision
Gonzales will continue to be a safe, clean, family-friendly community, diverse in its heritage, and committed to working collaboratively to preserve and retain its small-town charm.
Explain: The City of Gonzales’ decision to use alternative energy to save funds and preserve our environment, shows a commitment to preservation of our small-town charm.
Explain how the Recommendation Directly Implements the Mission The City Council and Staff of the City of Gonzales will realize our Vision by providing the leadership, commitment and resources necessary to provide excellent services that enhance the quality of life of our diverse community. X Yes ____ No____ N/A
Explain: The quality of life in the City of Gonzales has been enhanced through the development of alternative energy sources. The City of Gonzales will recognize better air quality, save money, and meet government regulations by operating the solar array facilities.
City services will be delivered in a cost-effective, respectful and friendly manner to ensure the safety and well-being of the residents and the promotion of business, recreational, housing and employment opportunities in an environmentally sustainable manner. X Yes ____No ____ N/A Explain: See Vision explanation above.
Strong fiscal policies allow us to provide appropriate infrastructure for:
• Public Safety X Yes No N/A
• Housing X Yes No N/A
• Recreation X Yes No N/A
• Environment X Yes No N/A
• Education X Yes No N/A
Explain: See Vision explanation above.
ALTERNATIVES
Amend or modify staff recommendation.
BUDGET IMPACT
This Agreement will be funded from Solar Project funds (Budget Fund 550).
CONCLUSION
It is recommended that the City Council adopt Resolution No. 2022-16, A Resolution of the City Council of the City of Gonzales Authorizing Execution of an Operation & Maintenance Agreement with ENGIE Services in the amount of $225,000 which includes a contingency budget of $17,029 for maintenance of six City-owned solar arrays for a five-year period.
Attachments:
1. Resolution No. 2022-16
2. Engie Services Agreement