BOARD MEETING DATE: October 3, 2008
AGENDA NO. 3

PROPOSAL:

Execute Contract to Re-roof Headquarters Facility and Install Solar Photovoltaic Systems

SYNOPSIS:

On February 1, 2008, the Board released an RFP to re-roof the headquarters facility and install a new photovoltaic (PV) system. Of the three qualifying PV proposals, one is for a Building Integrated Photovoltaic (BIPV) system consisting of PV laminates applied to a roofing membrane while the other two proposed conventional crystalline silicon panels. Due to the uniqueness of the BIPV product and the opportunity to test it side-by-side with conventional modules, staff proposes to install both BIPV and crystalline modules on the same roof above the Conference Center. This action is to execute a contract with Solar Integrated Technologies, Inc., to: (1) re-roof the building in an amount not to exceed $664,563 from the Facilities Refurbishing Designation; and (2) install a BIPV system in an amount not to exceed $390,695 from the Clean Fuels Fund. Further, this action is to execute a contract with PermaCity Corporation to install the crystalline silicon system in an amount not to exceed $392,922 from the Clean Fuels Fund.

COMMITTEE:

Administrative, September 12, 2008, Recommended for Approval

RECOMMENDED ACTIONS:

1. Appropriate a total of $664,563 from the Fund Balance, Designated for Facilities Refurbishment to the District General, Capital Outlays Account for re-roofing AQMD’s Diamond Bar headquarters.
2. Authorize the Chairman to execute a contract with Solar Integrated Technologies, Inc. to re-roof the Diamond Bar headquarters in an amount not to exceed $664,563.
3. Authorize the Chairman to execute the following contracts with funds from the Clean Fuels Program (Fund 31):

1. Solar Integrated Technologies, Inc. to install an approximate 40 kW (AC) BIPV system in an amount not to exceed $390,695; and
2. PermaCity Corporation to install an approximate 40 kW (AC) crystalline silicon system in an amount not to exceed $392,922.

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The approved FY 2008-09 Budget includes a Fund Designation for Facilities Refurbishing in the amount of $1,925,087, which was set aside for high-priority maintenance and repair projects, including re-roofing AQMD’s Diamond Bar headquarters. In February 2008, the Board released RFP# 2008-14 to re-roof the Diamond Bar Headquarters with an epoxy elastomeric, revised Title 24 compliant coating and to install a new solar photovoltaic (PV) system on top of the Conference Center.

AQMD has a long-standing commitment to solar and other renewable energy technologies due to their many benefits. These include the generation of clean, renewable power, decreased fossil fuel consumption, displaced pollutant emissions insulation against rising electricity costs as well as reduced carbon dioxide (CO2) emissions. AQMD currently owns and operates an 80 kW PV system, which produced a total of 130,000 kWh of clean, renewable electricity in the first year of operation resulting in a cost savings of $24,000. With issuance of RFP#2008-14, the AQMD plans to expand its solar capacity to generate additional benefits and further reductions in the facility’s carbon footprint.
 

Bid Evaluation

After issuance of the RFP, a mandatory bidder’s conference was held on February 19, 2008 with 52 contractors in attendance. At least 17 of the attendees were solar installers. The RFP specified that separate bids shall be submitted for the re-roofing and PV system. A single contractor could submit bids for both re-roofing and installation of the PV system. The RFP also specified that the bids for re-roofing would be evaluated separately from the bids for a new solar photovoltaic system. Below are the results from the evaluations.

Re-Roofing

Four proposals were received by close of bidding on April 15, 2008, all of which were complete and met the RFP requirements.

The panel that evaluated the re-roofing proposals included three AQMD employees, a Building Services Manager, a Business Services Manager, and a Building Services Supervisor. Of these, one is Asian-Pacific Islander, one is Caucasian, and one is Hispanic; one is female and two are male.

The panel evaluated the four responsive proposals based on criteria specified in the RFP, which included cost, contractor qualifications and client references. Solar Integrated Technologies, Inc., submitted the lowest-cost bid, as indicated in the Attachment, and received excellent references for comparable work.

One notable benefit of the proposed BIPV system is that it would eliminate the need for re-roofing in the area of the BIPV installation. This would result in a cost savings to AQMD for the re-roofing project. AQMD staff verified the proposed BIPV system would provide the same warranty coverage as the re-roofing material proposed by Solar Integrated Technologies, Inc.
 

PV System

Five proposals for a PV system were received by close of bidding. The proposals were evaluated by a panel consisting of technical experts including an Engineer from the U.S. Department of Energy, Solar Energy Technologies Program and two Program Supervisors from the AQMD. The panel members included one Asian-Pacific Islander, two Caucasian; three male.

Based on the evaluation results, only three of the five proposals met the minimum technical score to qualify for an award. Of the three qualifying PV proposals, one is for a Building Integrated Photovoltaic (BIPV) system consisting of PV laminates applied to a roofing membrane while the other two are for conventional crystalline silicon panels. The proposals for the crystalline silicon solar panels specified the same manufacturer for the PV modules and a similar non-penetrating roof mounting system. The two proposals achieved the same technical score, however the PermaCity Corporation proposal had lower cost and therefore received the highest overall score. PermaCity Corporation achieved the top rank among the three proposals. Table 1 identifies the evaluation results for the three qualifying proposals.

* The proposals submitted by 1 Star Energy and JIL Enterprises did not achieve the minimum technical score (56 points) to qualify for an award.

The BIPV system proposed by Solar Integrated Technologies includes thin film PV laminates applied to a single-ply roofing membrane. This innovative system does not require roof penetration, is lightweight, easy to install, durable and has the potential for more power output. Based on vendor information, the proposed BIPV system will respond to a wider spectrum of light, absorb light more efficiently and generate more power under low light conditions providing higher annual electricity production. Though such claims offer promising advancements in PV technology, concerns relating to the performance and reliability of thin film PV technologies remain. AQMD’s Procurement Policy allows selection of a bidder that is not the lowest cost bidder if the Board determines another bidder provides the best value to the AQMD. (Section VI B 3.) In this case, the best value is considered to be installing both BIPV and crystalline modules.
 

Proposal

Due to the uniqueness of the BIPV product and the opportunity to test it side-by-side with conventional crystalline silicon solar panels, staff proposes to install both BIPV and crystalline modules on the same roof above the Conference Center. Due to the limited roofing area, the two companies agreed to scale down their proposed projects to a nominal size of approximately 40kW (AC) each. The same type of inverter will be used for each PV system to avoid any inverter effects when comparing the two PV technologies. The inverter is rated by the California Energy Commission (CEC) with an efficiency of at least 95.5% and will have a 10 year warranty. The PV modules, including the BIPV product, are also CEC certified and will carry a warranty of 20 years.

With this project, staff is also recommending that PermaCity Corporation perform the monitoring of both PV systems which is required to obtain the California Solar Initiative (CSI) rebate over the initial 5-year period after installation. The CSI rebate will be paid out monthly in 60 installments over the 5-year period. The estimated CSI rebate for each PV system is $110,573 for the crystalline silicon solar cells and $82,503 for the BIPV system. The touch-screen kiosk in the AQMD headquarters lobby will be upgraded to show the performance of the new PV systems using the existing software and performance monitoring system. The total project cost for PermaCity Corporation includes the kiosk upgrade and tie-in of the two new PV systems with 20 years of monitoring for all three PV systems.
 

Benefits to AQMD

The existing warranty on the roof coating has expired.  This project will provide a new 15-year warranty period and protection against water leaks and other roof-related impacts to the facility.  The proposed re-roofing material is a revised, Title 24 compliant coating and green product.  This project will provide improved energy efficiency and cost savings in energy consumption. 

The solar PV project will demonstrate the generation of electricity from solar energy displacing the need to generate electricity from non-renewable fossil fuel resources. In addition, the deployment of solar technologies will decrease greenhouse gas emissions, add distributed generation to the California electricity grid, improve the grid’s reliability and mitigate the need to build expensive transmission lines to carry additional capacity.

More importantly, this project will also reduce AQMD electricity expenses during peak summer periods and electricity consumption throughout the year. In doing so, the AQMD could potentially recover its investment in approximately 15 years. If electricity prices continue to increase, the recovery period will be reduced.
 

Outreach

In accordance with AQMD’s Procurement Policy and Procedure, a public notice advertising the RFP and inviting bids was published in the Los Angeles Times, the Orange County Register, the San Bernardino Sun, and Riverside County Press Enterprise newspapers to leverage the most cost-effective method of outreach to the entire South Coast Basin.

Additionally, potential bidders may have been notified utilizing AQMD’s own electronic listing of certified minority vendors. Notice of the RFP has been mailed to the Black and Latino Legislative Caucuses and various minority chambers of commerce and business associations, and placed on the Internet at AQMD’s Web site (http://www.aqmd.gov/). Information was also available on AQMD’s bidder’s 24-hour telephone message line (909) 396-2724.
 

Resource Impacts

Funding for the re-roofing project requires an appropriation of $664,563 from the Designation for Building Refurbishing to District General, Capital Outlays. The total cost for the PV systems shall not exceed $783,617. The AQMD will be eligible for a rebate through California Solar Initiative program. The CSI rebate monies, estimated to be $193,076, will be returned to the Clean Fuels Program Fund as received by Southern California Edison in 60 monthly installments over the first five years of operation of the PV systems. Sufficient funds are available from the Clean Fuels Program Fund. The Clean Fuels Program, under Health and Safety Code Sections 40448.5 and 40512 and Vehicle Code Section 9250.11, establishes mechanisms to collect revenues from mobile and stationary sources to support projects to increase the utilization of clean fuels, including advancing the development of enabling technologies. The solar PV systems will be supported by fee surcharges from stationary sources.
 

Attachment

Bidder’s List for Re-Roofing

ATTACHMENT
BIDDER’S LIST FOR RE-ROOFING

RFP #P2008-14