To: BOARD OF SUPERVISORS
From: Executive Office
Meeting Date: April 22, 2025
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Department Contact: |
Sara Pierce |
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707-463-4441 |
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Department Contact: |
Doug Anderson |
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707-234-6054 |
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Item Type: Regular Agenda |
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Time Allocated for Item: 30 Minutes |
Agenda Title:
title
Discussion and Possible Action Including Direction to Staff to Proceed with the Willits Library Roof and Solar Project in Phases, Beginning with the Roof Replacement as Required by The California Public Contract Code, and Direction to Staff to Bring Back the Solar and Battery Options and Analyses for Future Direction
(Sponsor: Executive Office)
End
Recommended Action/Motion:
recommendation
Direct staff to proceed with the Willits Library Roof and Solar Project in phases, beginning with the roof replacement as required by the California Public Contract Code, and direct staff to bring back the solar and battery options and analyses for future direction.
End
Previous Board/Board Committee Actions:
During the August 3, 2021, Board of Supervisors Meeting the Mendocino County Board of Supervisors signed Resolution No. 21-117 declaring its intent to reduce and eliminate the carbon footprint of buildings and operations of the County of Mendocino, with an initial investment of at least $2,000,000. Among the resolutions was direction to staff to leverage this investment with grants and low interest financing resources.
During the December 7, 2021 Board of Supervisors Meeting the Board of Supervisors accepted a presentation including a preliminary audit of County Facilities and recommended energy efficiency, solar, fleet electrification, and a microgrid pilot project at the Willits Library.
During the December 6, 2022 Board of Supervisors meeting the Board of Supervisors approved the Building Forward, Library Infrastructure Grant agreement with the California State Library specifically for the Willits Library roof replacement and solar-battery back-up system project in the amount of $247,040.
During the July 25, 2023, Board of Supervisors meeting the Board of Supervisors accepted the proposed Carbon Footprint Reduction Priority Plan and approved the priority projects identified for funding with the Carbon Reduction Funds in the amount of $1,000,000.
During the September 10, 2024, Board of Supervisors Meeting, the Board of Supervisors awarded the Energy Services Company (ESCO) Request for Proposals to Ameresco and approved a Project Development Agreement (PDA) with Ameresco to complete Investment Grade Audits for the development of Energy Savings Projects at selected County facilities.
During the December 17, 2024 Board of Supervisors Meeting the Board of Supervisors expressed support for the Willits Library project and directed staff to proceed with the Metal Roof option and include the solar component, while requesting additional information and options for the Battery Energy Storage System (BESS) component.
Summary of Request:
During the December 17, 2024 Board of Supervisors Meeting the Board of Supervisors expressed support for the Willits Library project and directed staff to proceed with the Metal Roof option and include the solar component, while requesting additional information and options for the BESS component. Staff have been working over the past several months to gather additional information and options for the BESS, as well as more complete cash flow analyses for the project as a whole.
Ameresco was able to provide two alternatives for the BESS component; the first alternative being a smaller battery of 30 kW, 40kWh battery, vs. the initial 40 kW, 122kWH battery, and the second alternative being a 50 kW generator.
Ameresco also provided a detailed Schedule of Values and various cash flow analyses for staff for review. The cash flow for option 1, the larger BESS, had a payback period of 40+ years, which included adding in another battery, at a much lower cost, in year 15. The cash flow for option 2 with the smaller battery, had a very similar outcome, also over 40 years.
The original intent of the County was to proceed with this project following Government Code Section 4217.12 which reads as follows:
(a) Notwithstanding any other provision of law, a public agency may enter into an energy service contract and any necessarily related facility ground lease on terms that its governing body determines are in the best interests of the public agency if the determination is made at a regularly scheduled public hearing, public notice of which is given at least two weeks in advance, and if the governing body finds:
(1) That the anticipated cost to the public agency for thermal or electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the public agency of thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases.
(2) That the difference, if any, between the fair rental value for the real property subject to the facility ground lease and the agreed rent, is anticipated to be offset by below-market energy purchases or other benefits provided under the energy service contract.
(b) State agency heads may make these findings without holding a public hearing.
The primary finding to be met for the Willits Library project is that of subdivision (a)(1), as the project does not require any facility ground lease to assist with financing.
The finding required under Section 4217.12(a)(1) is to be applied to the project as a whole, and the County must show that the anticipated cost of the project will be less than the anticipated cost of energy that would have been consumed without the project. Staff reviewed the project utilizing the larger battery and then again using the smaller battery option. A significant issue is that two of the three components of the project, the metal roof and the BESS, are a large portion of the cost but do not provide much in the way of energy savings.
Due to various factors including, the payback periods as shown in the cash flow analyses, additional costs associated with preventative maintenance required for the solar panels, the unknown costs related to tariffs, and the uncertainty around the incentive program administered under the current federal administration, staff has determined the County is unable to justify the finding required under Section 4217.12.
Staff is seeking direction from the Board to proceed with the project in phases, beginning with the roof replacement as required by the California Public Contract Code. Proceeding under this direction will potentially increase the cost of the project, as the grant funds are for the entire project and may not be able to be separated into phases. Staff is in communication with the State to determine if budget and project amendments are an option. Staff is also seeking direction from the Board to bring back the solar and battery options and analyses for future direction and option to incorporate into the larger Countywide scope.
End
Alternative Action/Motion:
Do not approve and provide alternative action.
Strategic Plan Priority Designation: An Effective County Government
Supervisorial District: All
Vote Requirement: Majority
Supplemental Information Available Online At: N/A
Fiscal Details:
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source of funding: Measure O - Library Capital Fund |
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current f/y cost: N/A |
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budget clarification: N/A |
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annual recurring cost: N/A |
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budgeted in current f/y (if no, please describe): N/A |
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revenue agreement: N/A |
AGREEMENT/RESOLUTION/ORDINANCE APPROVED BY COUNTY COUNSEL: No
CEO Liaison: Executive Office
CEO Review: Yes
CEO Comments:
FOR COB USE ONLY
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Executed By: Deputy Clerk |
Final Status: Item Status |
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Date: Date Executed |
Executed Item Type: item |
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Number: |
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