HomeMy Public PortalAbout09-15-2010 Energy ContractMichael J. Driscoll
Town Manager
TOWN OF
WATERTOWN
Office of the Town Manager
Administration Building
149 Main Street
Watertown, MA 02472
Phone: 617-972-6465
Fax: 617-972-6404
www.watertown-ma.gov
townmgr@watertoW n -ma. gov
To: Honorable Town Council / ) y
From: Michael J. Driscoll, Town Manager
Date: September 9, 2010
RE: Resolution Authorizing a Contract Term in Excess of Three Years for the
Purchase of Energy Management and Related Services
Attached please find correspondence from Raeleen Parsons, Purchasing Agent, regarding
the Town's effort in the procurement of a 50k W Solar Photovoltaic Panel System and Power
Purchase Agreement (PPA) at the Department of Public Works Building.
Given it will be in the Town's best interest to enter into a contract for the purchase of
Energy Management and Related Services in excess of three years, I respectfully request the
attached Resolution be placed on the September 15, 2010 Town Council Agenda.
Thank you for your consideration in this matter.
cc: Raeleen Parsons, Purchasing Agent
Enviromnent and Energy Efficiency Committee
Mark R. Reich, Esquire, Kopelman & Paige, P.C.
Phyllis L. Marshall, Town Treasurer/Collector
Thomas J. Tracy, Town Auditor
John E. Flynn, Town Clerk
Resolution Authorizing a Contract Term in Excess of Three Years for the Purchase of Energy
Management and Related Services.
WHEREAS: The City known as the Town of Watertown publically procured a contractor, Broadway
Renewable Strategies, LLC, to design, construct, install, and manage the installation of a 50kw solar
panel project at the Department of Public Works; and
WHEREAS: Chapter 25A, Section 11C, contracts for procurement of energy management and related
services, allows for contract terms of not more than 20 years; and
WHEREAS: Said Chapter allows municipalities to contract with energy management companies to
design, construct and management renewable energy projects; and
WHEREAS: The Town has an opportunity to reduce its energy costs and carbon footprint with the use of
clean energy produced by solar power; and
WHEREAS: It may be in the Town's best interest to maximize renewable energy opportunities; and
WHEREAS: G.L. c. 30B requires the Town Council to provide authorization for any contract term in
excess of three years;
NOW TEHREFORE BE IT RESOLVED: That the Town Council of the City known as the Town of Watertown
hereby authorizes the Town Manager to enter into a contract for purchase of Energy Management and
Related Services for a term not to exceed 20 years, if he deems such a term to be in the best interests of
the Town.
Council Member
I hereby certify that a regular meeting of the nine member Town Council for which a quorum was
present, the above resolution was adopted by a vote of for, against and _ present on
Valerie Papas
Clerk of the Council
Mark S. Sideris
Council President
Raeleen Parsons
Purchasing Agent
TOWN OF WATERTOWN
Purchasing Department
Administration Building
149 Main Street
Watertown, MA 02472
Phone: 617 972 6414
Fax: 617 972 6403
www.watertown-tua. gov
rparsons@watertown-ma.gov
TO: Mr. Michael J. Driscoll, Town Manager
FROM: Raeleen F. Parsons, Director of Purchasing
DATE: September 9, 2010
RE: Procurement of 50kW Solar Panel Installation and PPA (Power Purchase Agreement)
As you know, the Town received a grant from the Department of Energy Resources in the amount of $150,000
to install a 50kw Solar Panel system & PPA at the Department of Public Works. The Purchasing Department
worked closely with the Department of Energy Resources and with Legal Counsel to develop a Request for
Response and also with the crafting the Power Purchase Agreement contract. This project was publicly
procured this past spring and contract negotiations are complete. The Solar panel installation and long term
energy management agreement with the selected vendor, Broadway Renewable Strategies, LLC, are ready to
move forward with your needed signature.
Following up from my email correspondence dated February 22, 2010 and your memo to Town Council dated
February 23, 2010, (see attached) I offer this update of activities on the 50kW Solar Panel and PPA project at
the DPW. On April 1, 2010, price proposals were received from five (5) firms. From the proposers, Broadway
Renewable Strategies, LLC (BRS) was selected as the lowest most responsive and responsible proposer. BRS
proposed to sell the electric power the solar panel produces back to DPW at a cost of $0.031/kWh compared to
the current cost of $0.17/kWh and includes a not to exceed cap of $0.041/kWh for the 15 year term. With the
help from the grant funded Technical Assistance firm, Cadmus Group, Inc. of Watertown along with Kopelman
and Paige, a contract and Power Purchase Agreement was negotiated and developed between the Town and
BRS.
You will recall that a Power Purchase Agreement is a long term, 15 year, Energy Management agreement
between the Town and an Energy Management Company (EMC). Many tax incentives and rebates are offered
to the EMC whereby the Town is not eligible. The EMC will own the solar panel equipment, maintain the
system and generate the electricity and sell the electricity back to the Town. The EMC is able to sell the
electricity back to the Town at an extremely low rate given the great tax credits and rebates it will receive for
working with the Town. It is important to note this project is not costing the Town any money. The EMC will
be compensated with the grant funds and electricity charges generated and billed to the DPW through their
ordinary electricity operating budget. Finally, at the end of the 15 year term, the Town will have the option to
buy the solar panels or have them removed by the EMC.
Lastly, while this solar panel project is likely the largest renewable energy project that the Town of Watertown
has ever undertaken, it is refreshing to know and be a part of the growing number of communities opting to use
clean energy.
Michael J. Driscoll
Town Manager
TOWN OF WATERTOWN
Office of the Town Manager
Administration Building
149 Matt Street
Watertown, MA 02472
Phone: 617.972.6465
Fax: 617472.6404
www.watertown-ma.gov
townmgr@watertown-ma.gov
To: Honorable Town Council
From: Michael J. Driscoll, Town Manage
Date: February 23, 2010
RE: Miscellaneous Items
Agendas/MinutesfDepartmental Postings
As a follow up to one of the items at the August 1, 2006 Town Council Work Session, attached please find
Agendas/Minutes/Departmental Postings from various Departments, Boards, Commissions and Agencies
received this week.
Tab correction
Attached please find an email from Steve Magoon, Director of Community Development and Planning
regarding the subject.
Grant Awards for Solar System Protect
Attached please find an email and attachments regarding the subject.
Health Department
Attached please find a flyer titled; "Attention Watertown Pet Owners," that was included in the annual Census
mailing.
Courcast
Attached please find correspondence and a facsimile from Frank Foss, Senior Manager of Government &
Community Relations regarding upgrading the on screen Cable Guide and Educational Access Channel Change
in Channel Assignment.
,Ostnond, Marsha
From: Driscoll, Michael
Sent: Monday, February 22, 2010 10:10 AM
To: Hand, JoAnna; Osmond, Marsha
Cc: Parsons, Raeleen; 'Kenneth Mirvis'; Tracy, Thomas; Marshall, Phyllis; Magoon, Steven; Mee,
Gerald; Tamber, Sue; Mark R. Reich
Subject: FW: Grant Awards for Solar System Protect
Attachments: Award FW_ PON-ENE-2010-009 - Energy Efficiency and Conservation Block Grant (EECBG)
grant.pdf; PON-ENE-2010-008 - Energy Efficiency and Conservation Block Grant (EECBG)
Program_ Owner's Agents Technical Assistance.pdf
Hi; please include in the next Misc Items to Council. Thanks to all.
From: Parsons, Raeleen
Sent: Monday, February 22, 2010 9:28 AM
To: Driscoll, Michael
Subject FW: Grant Awards for Solar System Project
Good Morning Mr. Driscoll:
As you are aware and per our discussion this morning, the attached grant award from the Department of'
Energy Resources is a tremendous achievement for the Town of Watertown and its goal to become a "Green
Community". These two grant awards will allow for the Town to install a 50kW Solar Photovoltaic Solar
Panel System and Power Purchase Agreement (PPA) at the DPW Building and also to fund for a consultant
to assist with project negotiations and other technical support with the PPA. The two combined grants have
a maximum monetary value of up to $200,000. The request for proposals for the 50kw Solar project will be
put out to bid March 3, 2010 and will open on April 1, 2010.
What is the process for the use of the grant funds?:
• The Town advertises the bid for an Electrical Company with Energy Management experience to
install and maintain the Solar System for.a proposed amount of time, i.e. 5,10, 15 or 20 years. This
project is a two part project which one contractor will do both parts: construction installation and
Power Purchase and Management of the System, (Grant Value $150,000)
• The Town will not have to fund any money for this project*. The grant money will be turned over to
the Contractor up to 150K once the installation is complete.
• The Contractor owns the System and will take advantage of the tax credits and other benefits the
Town would otherwise not qualify. The Town will not have to spend money to maintain or operate
the system under this type of procurement,
• The Town will purchase electricity that will supply the DPW building at a set rate per kwh as
indicated in their bid.
• The Town will award the contract to the lowest responsive and responsible bidder. (The Town. wants
to award the contract to the lowest per kwh bidder which will reduce the Towns cost of the electricity
that it will purchase* back from the contractor.
• The Town will hire an Energy Consultant with the "Technical Assistance Grant" to assist with the
Power Purchase Agreement. The Town will not have to fund for this work. It is anticipated that the
Energy Consultant will be on board when the bids are opened for the project. The Technical
Assistant will assist with the recommendation to'award and the Power Purchase Agreement
negotiations such as term length, ownership of system once team ends, etc. (Grant Value Est. 50,000.
Note; Grant award amount was not indicated, however, maximum amount is 50K).
Thank you for your support with this project as it was truly a team effort combined with the assistance of the
Watertown Environment and Energy Efficiency Committee:
Thank you,
Raeleen
Raeleen Parsons, MCPPO
Director of Purchasing
Town of Watertown
Town Hall
149 Main Street
Watertown, MA 02472
617-972-6414
617.972-6403 fax
rp a rso n s @ wate rtown-m a.Rov
2
From: Awrs. Elise (ENIEl
To: Driscoll. Michael
Cc: Parsons. Raeleert
Subject; PON-ENE-2010-000 • Energy Efficiency and Conservation Block Grant (EECBG) Program: Application for
Owners Agents Technical Assistance
Date: Wednesday, February 17, 2010 11:17:52 AM
Dear Mr. Michael Driscoll
SUBJECT: PON-ENE-2010-008- Energy Efficiency and Conservation Block Grant (EECBG)
Program: Application for Owner's Agents Technical Assistance
We are pleased to inform you that Watertown has been awarded Owner's Agent technical
assistance services for its Solar PV project and power purchase agreement. Funds for these
services were made available by the American Recovery and Reinvestment Act (ARRA) of 2009.
through the US Department of Energy's Energy Efficiency and Conservation Block grant program.
The Commonwealth of Massachusetts Department of Energy Resources (DOER) developed and is
responsible for administering this program.
Please be aware that your award will be contingent upon agreeing to certain terms and conditions.
In addition, DOER is in the midst of reviewing the proposals from potential consultants to provide
the Owner's Agent services. An award agreement with terms and conditions along with the
assignment of an Owner's Agent consultant and the amount of services will be sent to you under
separate cover.
Congratulations on your award and your initiative in creating a green energy future for the
Commonwealth. DOER and its Green Communities Division look forward to working with you to
successfully implement your project. If you have any questions regarding this award, please contact
Elise Avers at QIise.aversna state.ma.us
Sincerely,
Elise Avers, Clean Energy Fellow
Massachusetts Department of Energy Resources
100 Cambridge Street, Suite 1020, Boston, MA 02114
Ph: 617.626.7370 Fax: 617,727.0030
httn'//wvrw mass,gov/doer/
hlaradmaiis 04;$, hail(
Creating a Greener Energy Future for the Commonwealth
From: fljj$ I Mkhael
To: Parsons. RaHpg(t
Subject: - FW: PON•ENE-2010.009 • Energy Effldenty and Conservatlon Block Grant (EECBG) Program: Application for
Competitive Municipal Sub -Grant'
Date: Monday, February 22, 2010 8:27;16 AM
From: Gray, Diane (ENE) [mailto:Diane.Gray@state.ma.us]
Sent: Wednesday, February 17, 2010 11:21 AM
To: Driscoll, Michael
Subject: PON-ENE-2010.009 - Energy Efficiency and Conservation Block Grant (EECBG) Program:
Application for Competitive Municipal Sub -Grant
Dear Mr. Driscoll:
We are pleased to inform you that Watertown has been awarded an Energy Efficiency and
Block Grant (EECBG) sub -grant in the amount of' $150,000 for Solar PV. Funds for this
award were made available by the American Recovery and Reinvestment Act (ARRA) of'
2009 through the US Department- of Energy's Energy Efficiency and Conservation Block
grant program. The Commonwealth of Massachusetts Department of Energy Resources
(DOER) developed and is responsible for administering this sub -grant program.
Please be aware that your award will be contingent upon agreeing to certain terms and
conditions, including adherence to federal and state ARRA procurement and reporting
requirements, A grant award contract document with these terms and conditions will be sent
to you under separate cover. Please be aware that you cannot expend any of these funds until
a grant award contract has been executed.
Congratulations on your award and your initiative in creating a green energy future for the
Commonwealth. DOER and its Green Communities Division look forward to working with
you to successfully implement your project. If you have any questions regarding this award,
please contact me at diane.gray@state.maxi.
Sincerely,
Diane Gray
Diane Gray, AICP, LEED AP
Clean Energy Fellow
Green Communities Division
Massachusetts Department of Energy Resources
100 Cambridge Street, Suite 1020, Boston,.MA 02114
Ph: 617.626.7383 Fax; 617.727.0030
http://www.mass.govMoerL
Creating.a Greener Energy Future for the Commonwealth