City Council Agenda Report
TO: Mayor Clauzel and Members of the City Council
FROM: Fernando Ulloa, Interim City Manager
BY: Mike Willett, Public Works Director
MEETING DATE: November 19, 2024
ITEM NO: 6.10
SUBJECT: Approve Resolution No. 2024-67 and Authorize the City Manager to execute the Operation & Maintenance Agreement with ENGIE Services U.S. for the monitoring and maintenance of the City’s solar energy facilities.
RECOMMENDATION
Motion to Approve Resolution No. 2024-67 and Authorize the City Manager to execute the Operation & Maintenance Agreement with ENGIE Services U.S. for the monitoring and maintenance of the City’s solar energy facilities.
BACKGROUND
The City of Patterson has invested in solar energy installations across several key facilities, including the Aquatic Center, Corporation Yard, Senior Center, and Water Quality Control Facility. To ensure optimal performance and longevity of these systems, regular maintenance and performance monitoring are required.
ENGIE Services U.S. was the original provider and installer of these systems. As such, they offer proprietary monitoring services that allow for accurate tracking and performance evaluations. These services include real-time monitoring, monthly performance reports, system inspections, and preventive maintenance tasks.
Given the proprietary nature of ENGIE’s monitoring system, the City could not issue a request for proposals (RFP) for additional service providers to ensure compatibility and seamless integration with the existing infrastructure.
ANALYSIS
The proposed Operation & Maintenance Agreement with ENGIE Services U.S. represents a strategic investment in the City of Patterson's commitment to clean energy and sustainability. By entering into this agreement, the City can ensure that its solar energy facilities remain operationally efficient and continue to deliver the anticipated economic and environmental benefits.
Operational Efficiency
ENGIE, as the original installer of the solar systems, possesses unique knowledge of the City’s specific installations, enabling them to provide tailored monitoring and maintenance services.
Their proprietary monitoring system allows for real-time performance evaluations and rapid response to any operational issues. This level of service is crucial for maximizing the energy output of the solar facilities, which directly translates into cost savings on utility bills.
Cost-Benefit Analysis
The total expenditure of $99,008 over five years for the operation and maintenance of the solar facilities is a significant investment; however, the long-term savings generated from reduced utility costs are expected to offset this expense. By maintaining optimal system performance, the city can continue to benefit from lower energy costs, which can be reinvested into other community services and initiatives.
Risk Management
Choosing not to pursue a competitive bidding process is a calculated decision, given the proprietary nature of ENGIE's services. Engaging a different service provider could introduce risks such as integration challenges, potential system inefficiencies, and additional costs associated with reconfiguration. By retaining ENGIE as the service provider, the city minimizes these risks and ensures continuity of service.
Alignment with City Goals
This agreement aligns seamlessly with the City’s sustainability goals. By ensuring the solar facilities operate at peak efficiency, the city not only supports its clean energy initiatives but also demonstrates a commitment to environmental stewardship. The maintenance of these facilities plays a vital role in reducing the City’s carbon footprint and enhancing its reputation as a leader in renewable energy adoption.
Conclusion
In conclusion, entering into the Operation & Maintenance Agreement with ENGIE Services U.S. is a prudent decision that supports the City’s financial and environmental objectives. By ensuring the effective operation of solar facilities, the City can maximize its investment in renewable energy, leading to sustained economic and ecological benefits. Staff recommends moving forward with the contract to safeguard the future efficiency and reliability of the City’s solar energy systems.
Justification for Non-Competitive Procurement
ENGIE Services U.S. is the original installer of the City’s solar systems and offers proprietary monitoring services that cannot be easily replaced or duplicated by other vendors. The real-time monitoring software and reporting system is specifically designed for ENGIE's solar installations, ensuring accuracy and operational efficiency. Attempting to switch to a third-party service provider could result in integration challenges, potential system inefficiencies, and higher costs for reconfiguring the monitoring systems. Therefore, it is in the City’s best interest to enter into this contract with ENGIE to ensure seamless operation and compliance with our clean energy initiatives.
FISCAL IMPACT
The total cost of the Operation & Maintenance Agreement over the five-year term is $99,008.
This expense is included in the City’s ongoing solar energy budget and will be covered through existing funds budgeted for renewable energy maintenance. By maintaining the efficiency of our solar facilities, the City will continue to benefit from reduced utility costs, ultimately offsetting the cost of this agreement.