CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Approve the award of RFP 22-031, Electric Substations - Springbrook Fixed Axis Solar Photovoltaic System, to GRNE Solar for an amount not to exceed $214,088
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2004, the Naperville City Council approved the Renewable Energy Program (REP). This program was created as a way for Electric Utility customers to monetarily support renewable energy. Council implemented changes to the REP in March of 2020 with the goal of making meaningful progress in community-generated renewable energy and increasing the energy efficiency of homes and businesses. Ultimately the program is designed to create opportunities for the community to learn about renewable solutions, support grant projects that measurably increase renewable energy usage and displace fossil fuels and have projects that can be replicated.
To date, the City has installed solar arrays on the Municipal Center, the Public Works Service Center on Fort Hill, and the Electric Service Center.
In December 2021, the Electric Utility issued RFP 22-031, Electric Substations - Springbrook Fixed Axis Solar Photovoltaic System. The RFP intended to identify a qualified contractor to design, install, operate and maintain fixed axis solar photovoltaic systems on six Electric Substation buildings and the Springbrook Water Reclamation Center.
DISCUSSION:
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Advertisement Date: |
12/16/2021 |
Notices Sent: |
91 |
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Opening Date: |
02/17/2022 |
Planholders: |
21 |
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Proposals Received: |
1 |
One proposal was received from the following vendor:
A selection team comprised of staff from the Electric Utility, Community Services Department, and Transportation, Engineering and Development Business Group evaluated the proposals, which were scored based upon the criteria set forth in the RFP:
1. Capability, Capacity and Qualifications of the Proposer (20%)
2. Suitability and Quality of the Approach/Methodology (50%)
3. Milestones and Deliverables (20%)
4. Outcomes to be Achieved (10%)
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Vendor |
Qualification Score |
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GRNE Solar |
80 |
One proposal was received from GRNE Solar. Staff contacted planholders to determine the reasons for not submitting a response. Staff received responses from four planholders: AEP Energy, Bluestem Energy Solutions, Enerlogics, and Sol Customer Solutions. The primary feedback received was that the project size was too small to justify a formal written proposal response. In addition, two of the planholders stated that they could not mobilize crews to carry out this work, as they are currently dedicated to other clients with larger portfolios of work.
GRNE Solar’s proposal addressed all of the needs requested in the RFP and offered a reasonable timeline. GRNE has worked with the City before and has proven to be a qualified and capable partner.
The Utility compared GRNE’s project cost on a per Kilowatt (kW) basis and found it to be competitive and comparable to past projects similar in size and scope. The per kW cost of GRNE’s proposal is $2,840. Similar projects carried out in 2020 and 2019 were $2,188 and $2,395 respectively. The Utility feels comfortable awarding to the sole responder.
The Utility worked with the Naperville Environmental and Sustainability Taskforce (NEST) to review all proposed locations and make a recommendation on the number of installations to fund this fiscal year. NEST endorses this scaled-down scope that further spends down the REP fund balance. The scaled-down scope includes three substations located at 3501 South Route 59; 1312 Modaff Road; and 1676 West Jefferson. This leaves adequate REP funds to support the estimated citizen/business incentives and rebates for 2022, which reflects NEST's recommendations. The cost is competitive based on market value per kilowatt and is aligned with the previous City installations. As in recent years, staff will provide a REP fund balance update and suggest any changes to the program in Q4 of 2022.
At its June 23, 2022, meeting the Illinois Municipal Electric Agency (IMEA) board of directors voted to provide Naperville a variance to the Small Renewable Generation Resource Policy, allowing the installation of these facilities. A variance was required because Naperville already has 150kW of City-owned solar generation resources and the three locations being installed this year will have a nameplate capacity of 63.3kW bringing the total City-owned capacity total to 213.3kW by the end of the calendar year.
The anticipated completion date of the project is December 31, 2022.
FISCAL IMPACT:
CIP#: N/A
Fixed axis solar photovoltaic systems are expensed to the Renewable Energy Grants account listed below. A total of $50,000 is budgeted for City-owned solar projects in 2022. The requested award exceeds that budget; however, excess cash balances in the Renewable Energy Fund are sufficient to fund this project.
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Account Number |
Fund Description |
Total Budget Amount |
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40101400-561603 |
Renewable Energy Fund |
$455,000 |