Mt. Diablo Unified School District

Staff Recommendation to the Board of EducationDesign/Build Contract For The Installation of Photovoltaic Systems District Wide

September 28, 2010

Agenda

Background Project Timeline Evaluation Methodology & Criteria Comparison of Proposals Shortlist Recommendations

MDUSD Solar: Intangible Benefits

Environmental Economic Curricular Community

MDUSD Solar: Intangible Benefits

Environmental (emissions):-A 10 MW solar system has the effect of removing 2130 cars off the road/yr-A 10 MW solar system has the effect of planting or saving 300,000 trees/yr-It takes 364 tons of trees/11 tons of coal to produce the power produced by a 10MW system (50,000 lbs of CO2)

MDUSD Solar: Intangible Benefits

Economic:

-Local employment opportunities (trades, consultants, service

sector)- during and after construction

-Domestic/local production of materials

MDUSD Solar: Intangible Benefits

Curricular: -Opportunities for experiential learning

-Alignment with curriculum-Real-Time Data Monitoring Activities (math and science)/Kiosk-Guest Speaking-Lesson Plans

MDUSD Solar: Intangible Benefits

Community:

-Underscores corporate integrity and visibility as both fiscal and environmental stewards

-Affirms MDUSD’s larger role and obligation as a leader and community role model

Background

RFP process is complete (chronology on following slide)

Proposal Review Committee has completed its evaluation of proposers

Staff is now seeking authorization to enter into contract negotiations with recommended proposer Also identify the second-place proposer as a

back-up

Project Timeline

Milestone Date

RFP Released 8/4

Site Walks 8/11-8/17

Proposer Questions Received 8/18

Proposals Received 9/2

Proposer Interviews 9/9

Board Study Session 9/16

Staff Recommendation to Board 9/28

Contract Negotiations Complete (forecast)And Request for Board Approval of Contract

10/12-10/29

Evaluative Criteria“Best combination of…”

Price Initial System (Capital) Cost Long Term utility cost savings Cost per unit output/production Operating/Maintenance Costs Performance Guarantee (20 years)

• Experience (K-12)• Proven Performance• Organizational Qualifications• Technology• Use of Local labor• Overall Quality of RFP (including interview)

Evaluation Challenge

Finding the best balance of financial benefit, delivery capability, and long-term performance

Evaluation Criteria and Weighting

Criterion Value

Financial Benefits 35

Experience and Qualifications 30

Technology and System Components 20

System Performance, Monitoring, and Maintenance

10

Use of Local Labor 5

TOTAL 100

Proposing Entities

D/B Firm Primary Sub/Part System Size

SolCit Helix 11.208 MWdc

Van/Pars (JV) Rosendin/ 12.600 MWdc Solar Power

SunPow Taber/Del Monte 11.191 MWdc

Roeb/Emard(JV) Emard 12.785 MWdc

Vanir-Line Item Roebbelen SolarCity SunPower ParsonsBaseline - without project

1 District Utility Costs w/o Solar 295,606,721$ 295,606,721$ 295,606,721$ 295,606,721$ Expenses

2 District Utility Costs w/ Solar 129,007,657$ 130,756,838$ 119,225,831$ 124,664,240$ 3 Capital Costs (Solar Contract) 59,377,330$ 56,259,883$ 67,404,796$ 79,779,728$ 4 Sub-total Expenses 188,384,987$ 187,016,720$ 186,630,627$ 204,443,967$

Savings and Revenues5 Utility Bill Savings 166,599,065$ 164,849,884$ 176,380,890$ 170,942,482$ 6 CSI Revenues 15,545,955$ 15,236,243$ 16,150,815$ 17,433,635$ 7 Sub-total Savings and Revenues 182,145,020$ 180,086,126$ 192,531,705$ 188,376,117$

Net Benefits8 Net Savings w/o Capital Costs 182,145,020$ 180,086,126$ 192,531,705$ 188,376,117$ 9 Net Savings w/ Capital Costs 122,767,690$ 123,826,244$ 125,126,909$ 108,596,389$

Notes1. Costs expressed as 30-year nominal totals except line 3, capital costs2. Line 3 includes Maintenance contract and Performance Guarantee expenses3. Key assumptions: annual utility escalation rate = 4.47%, annual District load growth = 2%, CSI incentive = $0.19/kWh

Comparison of Proposal Costs and Benefits30-Year Project Analysis Period

Summary of Proposals – Non-Financial Assessment

Element Roebbelen SolarCity SunPowerVanir-

Parsons

Experience and Qualifications 1 3 4 2

Technology & System Components 2 3 4 2

System Performance, Monitoring & Maintenance 1 3 4 2

Use of Local Labor 2 2 2 2

Overall 2 3 4 2

Proposal Scoring Summary

Criterion Weight Roebbelen SolarCity SunPowerVanir/ Parsons

Experience and Qualifications 30 8.0 20.0 27.0 11.0Technology and System Components 20 7.3 14.7 19.3 9.3System Performance, Monitoring & Maintenance 10 2.0 6.8 8.9 4.2Use of Local Labor 5 3.0 3.0 3.0 3.0Financial Benefits* 35 34.5 33.9 34.9 35.0TOTAL 100 54.9 78.4 93.1 62.5

Weighted Score

Scoring Summary for Mt. Diablo Solar Proposals

* From financial analysis: Total 25 year benefit without accounting for capital costs

Recommendation

Staff recommends the Board authorize staff to enter into negotiations with SunPower for the following reasons: Depth of experience with solar in K-12 setting Capacity to implement project of this size Strength of technology offering Comprehensive performance guarantee Robust O&M and monitoring capabilities Savings to District

The SunPower proposal represents the best balance of financial benefit, minimal delivery risk, and long-term performance

Recommendation (cont.)

Engage SolarCity as a secondary firm in the event contract negotiations with SunPower do not progress or conclude to the District’s satisfaction