Loading...
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