SUBJECT/RECOMMENDATION:
Title
Authorize a Guaranteed Maximum Price (GMP) to Bandes Construction, for the installation of roof top solar panels at the Clearwater Gas System Complex and Solid Waste Transfer Station in the cumulative amount of $1,066,284.00 pursuant to RFQ 40-20, Construction Manager at Risk (CMAR) Continuing Contracts, and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The City’s sustainability plan, Greenprint 2.0, includes reduction goals on greenhouse gas emissions. In 2022 McKim & Creed was hired by the city to provide a comprehensive solar feasibility study and cost benefit analysis of 41 city facilities. The three key assessment factors used in prioritizing city solar projects were: Levelized Cost of Energy, Internal Rate of Return, and Construction Costs, based on projected energy production rates and system size.
Two of the facilities identified that closely align which each assessment factor are the Clearwater Gas System Complex and Solid Waste Transfer Station. The target values and projected facility values are as followed:
|
Assessment Factor |
Target Range |
Gas Complex |
Solid Waste Transfer Station |
|
Levelized Cost of Energy (LCOE) |
<$0.060/kWh |
$0.034/kWh |
$0.039/kWh |
|
Unit Construction Cost (blended) |
<$2.00/W (DC) |
$1.54 |
$1.54 |
|
Internal Rate of Return |
>5% (discount rate) |
12.1% |
14.8% |
The financial performance of each proposed location assumes a 5% annual escalation of electric utility costs, as well as a solar panel degradation rate of 0.50% annually as recommended by McKim & Creed in the solar feasibility study.
The installation of 343 solar panels on the roof top of Clearwater Gas System complex are projected to provide an initial annual electrical savings of $34,453.00 with an 8.3-year payback period. The panels will be producing an estimated 327,013-kilowatt hours of power annually which equates to 68.26% of the total power required to operate the facility. The cost to install solar at this facility will be $520,103.00, with a projected 12.1% Internal Rate of Return.
The installation of 360 solar panels on the roof top of Solid Waste Transfer Station are projected to provide an initial annual electrical savings of $45,262.00 with a 6.7-year payback period. The panels will be producing an estimated 305,037-kilowatt hours of power annually which equates to 100% of the total power required to operate the facility. The cost to install solar at this facility will be $546,181.00, with a projected 14.8% Internal Rate of Return.
On September 17, 2020, Council approved 13 Construction Manager at Risk (CMAR) contracts pursuant to RFQ 40-20, and Bandes Construction was one of the approved firms. Bandes Construction has a great understanding of the needs and required end results for this project. Also, Bandes Construction has completed numerous commercial solar projects in the Tampa Bay area. Bandes delivered a quality product, met designated timelines, and did so in a professional manner.
APPROPRIATION CODE AND AMOUNT:
315-G2214, ARPA Solar Panels
Funding is available in capital project G2214, ARPA Solar Panels, to fund this purchase order. This project was funded by an allocation of General Fund revenues made available due to receipt of ARPA revenue recovery funds.
STRATEGIC PRIORITY:
The installation of solar panels on the Clearwater Gas Complex and Solid Waste Transfer Station is supported by Strategic Plan Objectives 1.1, maintaining municipal performance, and promoting accountable governance; 1.2, maintaining public infrastructure; 4.1, providing proactive climate resiliency; and 4.2, adopting renewable resource usage.
