SR 07-23-2019 3D
City Council
Report
City Council Meeting: July 23, 2019
Agenda Item: 3.D
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: Award Request for Proposal and enter into agreements for the Installation of
Solar Photovoltaic Systems at the Santa Monica Airport and City Services
Building
Recommended Action
Staff recommends that the City Council:
1. Award RFP# SP2570 - Solar Photovoltaic (PV) Project to Baker Electric
Corporation, a California-based company, for the installation of a solar
photovoltaic (PV) system at the Santa Monica Airport; and to Blue Sky Energy
Corporation, a California-based company, for the installation of a solar PV
system at the City Services Building;
2. Authorize the City Manager to negotiate and execute agreements with Baker
Electric Corporation in an amount not to exceed $858,113 (including a $141,953
contingency), and with Blue Sky Energy Corporation in an amount not to exceed
$1,763,354 (including a $160,305 contingency);
3. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within the contract authorities.
Summary
Santa Monica strives to be a carbon neutral city by 2050. This means all activities within
Santa Monica will result in a net decrease in atmospheric greenhouse gases emitted
annually. In the recently adopted Climate Action and Adaptation Plan, measures listed
to help achieve the goal of carbon neutrality include:
• All new City buildings over 10,000 square feet meeting the requirements of the
International Living Future Institute (ILFI) Net-Zero Energy certification, which
stipulates buildings must generate more energy from renewable sources (solar,
wind, etc.) on-site than they use annually;
• Install 1 MW of on-site solar energy on City facilities by 2020; and
• Install 100 MW of local solar energy citywide.
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The Solar Photovoltaic (PV) Project involves installing solar PV panels on two buildings
at the Santa Monica Airport and the City Services Building (CSB) to generate local
renewable energy. This project contributes toward all three of the measures listed
above. Staff recommends Baker Electric Corporation and Blue Sky Energy Corporation
as the best qualified firms to install the solar PV panels at the Airport and CSB.
Discussion
City staff analyzed 18 City-owned buildings around the Santa Monica Airport for solar
potential and determined that two sites - the 2800 Donald Douglas Loop North and 2959
31st St. buildings - were ideal. The buildings recently underwent reroofing, which
provides an opportunity to install a PV system. Both buildings are located north of the
Santa Monica Airport runway and are currently occupied by commercial tenants. The
City pays approximately 80% of the electricity bills for these facilities. Installing a solar
PV system at the two sites would provide an estimated annual savings of $53,200 per
year to the City.
The third proposed site for a solar PV system is the City Services Building (CSB), which
is currently under construction. The CSB is an addition to City Hall, located at 1685
Main Street, and will be a centralized location for core municipal operations and 240
City staff. The CSB is designed to achieve ILFI’s Living Building Certification, which
among other things requires the building to generate all of its energy onsite using
renewable sources. The solar PV system will be a critical component in achieving this
goal. The total proposed system size would be 285.24 kW and the first year’s solar
production is anticipated to be 403,241 kWh.
The City has the option to purchase the CSB system outright for $1,763,354 or enter
into a Power Purchase Agreement (PPA), which is a long-term contract with a financier
to purchase the solar system’s energy over 25 years. The City has determined that
purchasing the system outright would be the most cost-effective approach. The
$1,763,354 purchase amount is included in the project budget for the CSB. Paying for
the CSB’s renewable energy in the project budget eliminates energy utility costs,
thereby reducing operating costs and maximizing return on investment.
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As of May 2019, there are seven City-owned facilities with a total combined solar
capacity of 442 kW. The three solar PV systems staff is recommending as part of this
Solar PV Project would add 559 kW of capacity, increasing the City-owned solar
portfolio by 127% to just over 1 MW .
Vendor Selection (RFQ)
RFQual Data
RFQual
Posting Date
RFQual Posted
On
RFQual Advertised In
(City Charter & Municipal
Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
10/18/18 City's Online
Bidding Site
Santa Monica Daily Press 52 15 11/29/18
Pre-qualified List Vendor Selection Recommendation
ENGIE Services U.S.
Inc. SUNWORKS Municipal
Code SMMC 2.24.190
Performance
Contracting Inc. ForeFront Power Evaluation
Criteria
Previous experience/technical
competence, answers to a
questionnaire, references,
resumes of relevant staff, and
DIR compliance.
Sitelogiq Baker Electric
Blue Sky Energy SUNPOWER
PDE Energy Solutions Solar Forward
PV Guru
Justification to Short-List
Staff received 15 statements of qualifications, which it scored and ranked through an
RFQ process. Eleven of the 15 contractors that ranked the highest were placed on a
pre-qualified solar contractor list. These 11 pre-qualified contractors were invited to bid
on two separate solar photovoltaic systems, which they were allowed to bid together or
individually.
Bid Data
Bid Posting
Date Bid Posted On Bid Advertised By
# of
Vendors
Contacted
# of
Submittals
Received
Date
Publicly
Opened
01/30/19 Sent Directly To
PreQual List
Sent Directly To
PreQual List 11 05 02/27/19
Bids Received Selection Criteria
Blue Sky Energy Solar Forward
Municipal
Code SMMC 2.24.180
SunWorks Evaluation
Criteria
Price, previous experience, ability to
deliver, quality of product, and
compliance with City specifications. Baker Electric
PV Guru
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Justification to Award
Of the five proposals received, staff interviewed four shortlisted firms. Having been
already pre-qualified, staff selected two of the lowest bidders for each project. Through
the interview process, the two recommended firms demonstrated their in -depth
knowledge of the project and also presented potential concerns to keep in mind for the
project. Both firms have experienced teams as demonstrated by their proposals and
during their interviews. Based on this criteria and criteria in SMMC 2.24.180, staff
recommends Blue Sky Energy for the CSB scope of work and Baker Electric for the
Airport scope. These corporations are the best qualified firms to provide solar installation
services based on experience and team cohesion.
Protest
On May 17, 2019, City staff notified bidders of its intention to recommend Baker Electric
as the best bidder of the Airport portion of work and award them the contract for RFP
SP2570 - Solar Photovoltaic Project. On May 21, 2019, the City’s Public Works Director
received a timely protest from PV Guru. On May 23, 2019, PV Guru submitted an
addendum to its initial protest, which was still within the window allotted for protests. On
May 31, 2019, after reviewing the protest documentation submitted and speaking with
the review committee, the Public Works Director denied the protest based on no
grounds for protest (Attachment A).
Based on the Public Works Director’s final determination to deny the protest, staff
recommends that SP2570 – Solar Photovoltaic Project be awarded to Baker Electric for
the Airport scope of work.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Airport Fund and General Fund to
award a construction contract with Baker Electric and Blue Sky Energy for the
installation of a solar PV system at the Santa Monica Airport and CSB.
Construction Contract Request: Baker Electric
Request Amount FY 2019-20 Budget
CIP Account #
Total Contract
Amount
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$858,113 C5704690.689000 $858,113
Construction Contract Request: Blue Sky Energy
Request Amount FY 2019-20 Budget
CIP Account #
Total Contract
Amount
$1,763,354 C0105540.689000 $1,763,354
Prepared By: Joel Cesare, Project Manager
Approved
Forwarded to Council
Attachments:
A. Bid Protest Response Letter 05.31.19
B. Blue Sky Energy Oaks Initiative Disclosure Form
C. Baker Electric Oaks Initiative Disclosure Form
Public Works Department
1685 Main Street Room 116
Santa Monica, California 90401
(310) 458-8221 Main
Page 1 of 3
This Determination is Final
May 31, 2019
Via Email and U.S. Mail
Kevin Mackamul, Director of Projects and Systems
PV Guru Inc.
18922 S. Broadway
Gardena, CA 90248
RE: Final Determination of Award Recommendation
Dear Mr. Mackamul,
The Public Works Department of the City of Santa Monica acknowledges the submission of a bid
protest submitted on May 21, 2019 and of an addendum on May 23, 2019, by PV Guru objecting
to the recommendation to award the contract for the Airport Solar Project, SP 2570 (“Project”),
to Baker Electric. After careful consideration of PV Guru’s letter, including attachments, this letter
constitutes the final determination of Public Works to deny the protest and proceed with the
recommendation to award the contract to Baker Electric.
In accordance with Santa Monica Municipal Code 2.24.180, the City reserves the right, after
reviewing the bids, to reject any and all bids, and award the bid to the best bidder. The City has
absolute discretion in determining the applicability and weight or relative weight of some or all
of the criteria listed on Santa Monica Municipal Code 2.24.180, including (i) the quality of the
material or services offered, (ii) ability, capacity and skill of the bidder to provide the material or
services, (iii) capacity of the bidder to perform the services promptly, (iv) the sufficiency of the
bidder’s financial resources, (v) experience and efficiency of the bidder, and (vi) ability of the
bidder to provide future maintenance or service as may be needed, as well as price. The selection
of the best bidder does not require selection of the lowest monetary bidder.
In response to the City’s Notice Inviting Bids, including Addendums, the City received four bids.
The City reviewed all bids for completeness, including Addendum Acknowledgment forms,
minimum required qualifications related to previous and current work experience and capacity,
and material information sheets. The Request for Bids also requested the submittal of both a
base bid and an alternate bid for night work.
In evaluating PV Guru Inc.’s initial bid, the minimum requirements were not met because PV Guru
Inc. did not submit an alternate bid price. The submission of an alternate bid was included in the
Request for Bids, which requested pricing for night work. This work, as described during the job
walk, was integral to the evaluation due to the need to minimize the impact to Airport tenants.
Having this information issued through an addendum was not required since the form was part
of the original Request for Bids. In an attempt to avoid deeming PV Guru as non-responsive, the
City determined that a best and final offer would be requested of all contractors bidding. It should
Public Works Department
1685 Main Street Room 116
Santa Monica, California 90401
(310) 458-8221 Main
Page 2 of 3
This Determination is Final
be noted that PV Guru was the only contractor that did not submit an alternate bid or include
the cost of night work within their base bid. In addition, no contractor revised their base bid after
the City’s request. Allowing for a best and final price allowed PV Guru to participate in the second
phase evaluation. Staff’s evaluation awarded points based on the following categories: (i)
proposed cost; (ii) technical approach, design and implementation schedule; (iii) warranty and
equipment. PV Guru suggests in their protest that hardware and design are part of the same
category, which is incorrect, as well as stating that the Bids were not properly evaluated .
A proposal’s design falls within category (ii). Although design is a consideration within this
category, it is not the sole criteria for obtaining full points. Within this category, staff considered
technical approach, design and implementation, and schedule. Although PV Guru Inc. addressed
a shading issue in a localized area above one of the three proposed buildings, they did not score
as well as Baker in the implementation aspect of the category for all four buildings. During the
interview process, Baker was able to present their implementation plan with considerations for
the City’s tenant concerns, whereas PV Guru did not have field personnel present for their
presentation and did not go into the details of the field work. For this reason, Baker scored higher.
A proposal’s hardware falls within category (iii). Within this category, staff considered the
proposed warranties and equipment. In reviewing the proposals, Baker offered a longer warranty
for their equipment with a more robust coverage. For this reason, Baker scored higher.
Finally, to ensure a fair and proper evaluation, City staff created a committee of five staff
members in addition to utilizing the services of an outside consultant to select the best bidder.
Staff is confident that every measure was taken to ensure a thorough and objective evaluation.
Public Works Department
1685 Main Street Room 116
Santa Monica, California 90401
(310) 458-8221 Main
Page 3 of 3
This Determination is Final
Below is a chart detailing the point comparison.
Baker Electric PV Guru
Possible Points Ave Score Ave Score
Proposed Cost 50 46.4 48.8
Technical Approach,
Design and
Implementation
Schedule
30 30 29
Warranty and
Equipment
20 19.6 15.4
Total Score 100 96 93.2
Based upon all of the above, given the City’s discretion to award to the best bidder under SMMC
Section 2.24.072, the Bid Protest is denied.
Sincerely,
Susan Cline
Director of Public Works
Sent to: kmackamul@pvguru.com
Copy: Susan Cola, Deputy City Attorney, Santa Monica
REFERENCE:
Agreement No. 10882 - 10883
(CCS)