HomeMy WebLinkAbout05-15-2018 Item 09 - RFP for Community Choice Energy Technical and Energy ServicesMeeting Date: 5/15/2018
FROM: Robert Hill, Interim Deputy Director, Office of Sustainability
Prepared By: Chris Read, Sustainability Manager
SUBJECT: AUTHORIZATION TO RELEASE A REQUEST FOR PROPOSALS FOR
COMMUNITY CHOICE ENERGY TECHNICAL AND ENERGY SERVICES
RECOMMENDATION
1.Authorize the release of the RFP to solicit proposals for energy and technical services to
support the development and ongoing administration of a local Community Choice Energy
(CCE) program pursuant to Specification No. 91669 (Attachment A); and
2.Authorize the City Manager to award a consultant services agreement to the selected
consulting firm(s).
DISCUSSION
Background
1.Previous Council Direction
In December of 2013, City staff presented the City Council with a detailed report to educate the
Council and Community about Community Choice Energy (CCE). In March of 2015 , the City
Council approved Resolution No. 10609 confirming the City of San Luis Obispo’s participation
in the exploration of CCE. The resolution authorized participation in an inter -jurisdictional
investigation into CCE feasibility allowing execution of appropriate documents to allow
technical consultants to acquire energy usage load data from the electric distribution utility for
analysis in feasibility study.
In June of 2017, the City Council adopted the 2017-2019 Financial Plan, which identifies
Climate Action as a Major City Goal. The goal includes the following objective: “Assess and
report the requirements to achieve the ’net -zero carbon City’ target including feasibility analysis
and implementation of a Community Choice Energy program.”
In December of 2017, the City Council held a study session reviewing CCE options and provided
staff direction to “pursue forming a new CCE, in conjunction with other interested jurisdictions
in San Luis Obispo County and/or in PG&E territory of Santa Barbara County. If that option is
not feasible, then staff should pursue joining an existing CCE such as Monterey Bay Clean
Power or other comparable alternatives.”
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2. About Community Choice Energy
Community Choice Energy (CCE, also known as Community Choice Aggregation), authorized
by Assembly Bill 117, is a state law that allows cities, counties and other authorized entities to
aggregate electricity demand within their jurisdictions to purchase and/or ge nerate electricity
supplies for residents and businesses within their jurisdiction while maintaining the existing
electricity provider for transmission and distribution services. CCEs are typically created to
provide a higher percentage of renewable energy electricity, such as wind and solar, at
competitive and potentially cheaper rates than existing Investor Owned Utilities (IOUs), while
giving consumers local choices and promoting the development of renewable power sources and
local economic development . The City Council has been supportive of the research and
development of a viable regional Community Choice Energy (CCE) program for the last several
years.
3. Additional Context
In January of 2018, Mayor Harmon sent letters to the County of San Luis Obispo and the Cities
of Paso Robles, Atascadero, Morro Bay, Grover Beach, Pismo Beach, and Arroyo Grande. On
April 24, 2018, the City of Morro Bay City Council committed to pursuing CCE program
formation with the City of San Luis Obispo.
In February of 2018, t he California Public Utilities Commission (CPUC) issued Resolution E -
4907, which requires new CCE programs to have one full calendar year elapse prior to serving
customers. This issue has altered timing considerations and presents the following timelines:
• If an implementation plan is submitted by January 1, 2019, customers can begin service
on January 1, 2020
• If an implementation plan is submitted after January 1, 2019, but before December
January 1, 2020, customers can begin service on January 1, 2021
Since March of 2018, staff have met with representatives from operational programs, trade
groups, service providers, local experts, and the SLO Climate Coalition Task Force to vet
potential approaches and understand timing issues for each. Two options are available should the
City wish to begin providing CCE services in 2020:
1. Create a municipal CCE, which would operate in the City’s legal structure and provide
service to accounts within the City’s municipal corporate boundary.
2. Create a multi jurisdiction CCE in partnership with the City of Morro Bay, which would
operate in a newly formed joint power authority (JPA) legal structure and provide service
to accounts within member jurisdictions.
The City’s preferred approach is to operate the program through a JPA with Morro Bay with the
intention of inviting regional jurisdictions to participate in future years.
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Proposed Project Tasks
Staff’s strategy to implement Council direction is to contract with a deferred compensation
energy and technical service provider (or a team of providers) to draft a technical study and
submit an implementation plan to the California Public Utilities Commission by the end of
calendar year 2018. The service provider(s) would also complete program design tasks in 2019
and assist w ith operation in initial years (beginning in 2020). The project scope maintains
flexibility to support a municipal or multi-jurisdictional JPA CCE, pending JPA progress with
the City of Morro Bay as assessed in late summer.
The Scope of Services provided in the RFP is intended to provide a framework for responses and
may not be the specific scope of work included in the final Professional Services Agreement
with the selected Proposer. Proposals are directed to be organized into the three phases as
identified below, but may have an alternative task structure. The RFP allows proposals to
expand, modify, or restructure the tasks of each phase to best communicate the Proposer’s
service model. The RFP’s phases and tasks are as follows:
• Phase 1: Program Assessment
o Task 1.1: Administrative Support
o Task 1.2: Prepare Technical Analysis
o Task 1.3: Pro Forma/Financial Analysis
o Task 1.4: Risk Analysis
o Task 1.5: Program Assessment Summary and Presentation
• Phase 2 and 3: Program Implementation, Launch, and Early Operations
o Task 2.1: Implementation Plan
o Task 2.2: Portfolio Management and Procurement Services
o Task 2.3: CAISO Scheduling Coordinating Services
o Task 2.4: Advisory Services
o Task 2.5: Financing and Credit Solution
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Proposal Review and Project Schedule
The following is an outline of the anticipated schedule for proposal review and project schedule .
Activity Date
Issue RFP 5/17/18
Conduct pre-proposal conference 5/24/18
Proposer Questions due 5/25/18
Answers to Questions posted 5/29/18
Receive proposals 6/4/18
Complete proposal evaluation 6/15/18
Conduct finalist interviews 6/21/18-6/22/18 (estimated)
Finalize staff recommendation 6/26/18 (estimated)
Award contract 6/26/18 (estimated)
Execute contract 7/6/18 (estimated)
Start work 7/9/18 (estimated)
City Council study session to preview Technical Study components,
proposed JPA structure, and CCE ordinance
9/4/18
Public hearing to present Technical Study to City Council. If Council
chooses to proceed, pass resolution to create and join the JPA and
conduct first reading of the CCE ordinance
9/18/18
Public hearing to conduct second reading of the CCE ordinance 10/2/18
Public hearing to adopt Implementation Plan for submittal to the
California Public Utilities Commission
11/27/18
Program Implementation and Operations Preparation 2019
Begin CCE Program Operation Early 2020
As noted in Attachment A, Proposals will be evaluated by a review committee based on the
following non-exhaustive factors:
a. Qualifications and experience of the respondent’s provision of the same or similar
services.
b. Capability and experience of key personnel as well as direct experience with other public
and/or private agencies in similar capacities.
c. History of successfully performing services for public and/or private agencies and other
CCEs.
d. Financial viability of the respondent .
e. Cost to the Program for the services identified in the RFP.
f. Proposed approach, including a clearly demonstrated understanding of the intended scope
of products and services to be provided.
g. Proposer’s indicated willingness and ability to work with other City vendors and
consultants.
h. Ability to meet required timelines or other requirements.
i. Existence of and circumstances surrounding any claims and violations against the
respondent, its representatives and/or partners.
j. Pertinent references.
Additionally, the Proposals must provide evidence of financial, technical and operational
capabilities for delivery of the requested services, including audited financial statements and
credit rating.
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CONCURRENCES
Staff worked with the SLO Climate Coalition Task Force CCE Subcommittee and incorporated
feedback into the CCE program approach and RFP. The City of Morro Bay reviewed the RFP
and concurs with the form and intent.
ENVIRONMENTAL REVIEW
Creation of a Community Choice Energy program does not constitute a project subject to
environmental review under the California Environmental Quality Act (CEQA) pursuant to
CEQA Guidelines Section 15262.
FISCAL IMPACT
The RFP has been designed so that costs incurred through the contr act are deferred until the CCE
program is operational, at which point the incurred costs will be repaid. The repayment of
deferred costs and ongoing operational costs will be paid through CCE program operating
revenues. The RFP has also been designed so that if the findings of Phase 1 indicate a CCE
program is not feasible, the City may cease work and will not be responsible for deferred costs.
Staff time from Administration is supported through the adopted operating budget. Additional
budgeted resources ma y be needed for technical and legal advising for consulting team selection
and contract agreement negotiations and will come from existing resources.
ALTERNATIVES
1. The City Council could request additional information or make changes to the proposed RFP.
Depending on the extend of the changes that might be requested, it may be necessary for staff
to return on a later date, which would negatively impact overall project timeline.
2. The City Council could direct staff to join Monterey Bay Community Power, as d escribed in
the minutes from the December 12, 2017 study session (Attachment B).
3. The City Council could elect not to proceed with Community Choice Energy at this time.
Attachments:
a - RFP for CCE Energy Services
b - December 12_2017 City Council Minutes
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Notice Requesting Proposals for
COMMUNITY CHOICE ENERGY
TECHNICAL AND ENERGY SERVICES
The City of San Luis Obispo is requesting proposals to provide comprehensive analytics and energy-related
services to support the assessment, implementation, financing, launch, and wholesale power operations of
a Community Choice Energy (CCE) program pursuant to Specification No. 91669.
All firms interested in receiving further c orrespondence regarding this Request for Proposals (RFP) will be
required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-app-
web/vendor/register/Login.xhtml). All proposals must be on BidSync at or before 3:00 PM on Monday,
June 4, 2018 when they will be opened publicly at in the City Hall Council Hearing Room, 990 Palm Street,
San Luis Obispo, CA 93401.
Proposals received after said time will not be considered. Proposals shall be submitted using the forms
provided in the specification package. Proposals submitted in any manner not specified above will not be
accepted.
An optional pre-proposal conference will be held at 919 Palm Street (Conference Room 1), San Luis Obispo
on May 24, 2018 at 11:00 AM to answer any questions that the prospective proposers may have regarding
the City’s request for proposals. A call-in number is provided for those wishing to conference in by phone:
1-888-204-5987, Code: 8618289.
Specification packages and additional information may be obtained at the City’s BidSync website at
www.BidSync.com. Please contact Lorraine Colleran at lcolleran@slocity.org with any questions.
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Specification No. 91669
TABLE OF CONTENTS
A. Description of Work 1
Background
Community Characteristics
CCE Objectives
Scope of Services
B. General Terms and Conditions 12
Proposal Requirements
Contract Award and Execution
Contract Performance
C. Special Terms and Conditions 16
D. Insurance Requirements 19
E. References 21
F. Statement of Past Contract Disqualifications 23
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Section A
DESCRIPTION OF WORK
The City of San Luis Obispo, on behalf of itself and the City of Morro Bay invites responses to this Request
for Proposals (RFP) from qualified parties, which may include but is not limited to: electric service
providers, public power organizations, joint action agencies, power marketers, independent energy
consultants, scheduling coordinators, and other energy-related vendors to provide the following suite of
technical and energy services on an integrated services basis:
● Initial load analysis and feasibility assessment
● Development of Implementation Plan and related Financials
● Portfolio Management and Procurement Services
● CAISO Scheduling Coordinator Services
● Rate Design/Setting and other Energy-Related Advisory Services
● Long Term Procurement Planning
● Credit Solutions
Requested services are to be provided during the Program as sessment and implementation/launch period,
anticipated to be July 2018 – December 2019, followed by a 36 – 48-month initial Program operating period
expected to commence on or about January 1, 2020. Responders should clearly identify proposed contract
duration(s) and associated costs within their proposals.
Please note that proposals should be based on the initial participation of San Luis Obispo and Morro Bay
with the potential for the program to expand to other cities within San Luis Obispo County and Santa
Barbara County’s PG&E service area.
It is the intent of the specifications, terms, and conditions contained in this RFP to describe required services
related to the provision of technical/energy services that will be needed for CCE assessment and, pending
Council(s) approval, implementation and early operations. Services related to community outreach,
marketing, customer notifications, data management, and call center support are expected to be procured
under a separate RFP process in late 2018 or early 2019 pending the submittal of an Implementation Plan
to the California Public Utilities Commission by January 1, 2019. A separate RFP process is also expected
for the development of a local power business plan.
Proposals are being solicited from qualified Proposers or a group of qualified Proposers that form a team
arrangement for purposes of this solicitation. In the event a team arrangement is proposed, the team must
be represented by a single prime Proposer that will be responsible for entering into an Agreement with the
City, serve as the primary contact and responsible party, and have the authority to act on behalf of each
member of the proposal team.
The City seeks proposals that offer a “deferred compensation” model in which the City would incur no
upfront costs from the Proposer. Repayment of fees associated with the CCE technical analysis and
implementation costs would be paid once the program is operational over the term of the contract. Proposers
should understand that Assessment/Phase 1 of this project will be undertaken at the Proposer’s risk. If, after
the completion of technical evaluation further described herein, the City determines that a CCE program is
not feasible at this time, the City may elect to cease further services at no retroactive or prospective cost to
the City.
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Background
On December 12, 2017, the City of San Luis Obispo City Council directed staff to “pursue forming a new
CCE [program] in conjunction with other interested jurisdictions in San Luis Obispo County and/or in
PG&E territory of Santa Barbara County.” On April 24, 2018, the City of Morro Bay City Council
expressed formal interest in participating in the creation of a new CCE program. To support the potential
for a regional CCE program over time, the preferred governance structure is the development of a new Joint
Powers Authority similar to the operational and governance approach of many currently operational CCE
programs.
The City understands that California Public Utilities Commission (CPUC) Resolution E -4907 requires the
City to submit an Implementation Plan to the CPUC by January 1, 2019 to begin serving customers in 2020.
The Cities of San Luis Obispo and Morro Bay wish to create the program and begin service in early 2020.
This RFP is being released in advance of JPA formation to maintain the Implementation Plan filing
schedule. If there are delays in JPA formation, the City of San Luis Obispo is prepared, as a contingency
plan, to move forward with a City-only municipal CCE program. The City intends to provide an update of
the process at the pre-proposal conference and will confirm approach prior to contract execution with the
selected consultant or consultant team. P roposals should be flexible enough to accommodate the preferred
approach or the contingency plan.
Community Characteristics
Electricity Accounts and Load Characteristics
As discussed above, t he preferred CCE program creation approach includes the creation of a JPA with the
cities of Morro Bay and San Luis Obispo as founding and initial operating members. The JPA would
provide electricity service to all eligible PG&E electricity customers in the City of San Luis Obispo and
City of Morro Bay. As noted, the JPA will be designed to allow the participation of additional jurisdictions;
however, at this time only the City of San Luis Obispo and City of Morro Bay have taken formal action to
pursue formation of a CCE program.
Tables 1 – 3, which provide calendar year 2014 and 2015 bundled account and load information for the two
participating cities, should be used for the purposes of budgeting and responses to this RFP. Although not
anticipated, Proposers should consider contingencies if the JPA formation process not be successful. In this
case, the CCE program would be operated as a municipal program in the City of San Luis Obispo and would
initially only provide service to accounts within that City.
Table 1 - Community Electricity Detail by Account Type, 2014
Account Type Accounts Load (MWh)
San Luis Obispo Morro Bay Total San Luis Obispo Morro Bay Total
Residential 18,858 5,726 24,584 74,241 22,082 96,322
Nonresidential 4,162 830 4,992 165,324 24,431 189,755
Total 23,020 6,556 29,576 239,565 46,513 286,077
Table 2 - Community Electricity Detail by Account Type, 2015
Account Type Accounts Load (MWh)
San Luis Obispo Morro Bay Total San Luis Obispo Morro Bay Total
Residential 18,953 5,741 24,694 72,940 21,417 94,357
Nonresidential 4,200 845 5,045 164,532 24,465 188,996
Total 23,153 6,586 29,739 237,472 45,882 283,353
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Table 3 – Community Electricity Summary, 2014 and 2015
Jurisdiction 2014 2015
Accounts MWh Accounts MWh
City of San Luis Obispo 23,020 239,565 23,046 237,472
City of Morro Bay 6,556 46,513 6,612 45,881
Total 29,576 286,078 29,658 283,353
It is the ultimate desire to expand the program to include interested participants throughout San Luis Obispo
County and Northern Santa Barbara County (communities served by PG&E). Table 4 includes account and
load information for jurisdictions that are not currently participating to provide a sense of potential program
expansion in future years.
Table 4- Potential Future San Luis Obispo County Partner Electricity Consumption, 2014 and 2015
County Jurisdiction 2014 2015
Accounts MWh Accounts MWh
San Luis Obispo
City of Arroyo Grande 8,279 70,511 8,333 71,216
City of Atascadero 13,311 116,694 13,493 118,916
City of Grover Beach 6,317 33,586 6,352 32,977
City of Paso Robles 14,247 186,625 14,282 188,490
City of Pismo Beach 5,431 55,742 5,583 54,869
Uninc. County of San Luis Obispo 58,401 617,237 58,779 601,165
Santa Barbara
City of Buellton 2,034 35,170 2,036 35,151
City of Guadalupe 2,111 24,440 2,125 23,564
City of Santa Maria 30,330 457,747 30,847 455,067
City of Solvang 2,984 36,075 3,017 36,134
Uninc. County of Santa Barbara* 26,946 873,405 27,113 841,953
Total Potential 170,391 2,507,232 171,960 2,459,502
*PG&E Service Territory Only
Community Assets
The cities of San Luis Obispo and Morro Bay are home to physical, intellectual, and natural assets that a
successful CCE program will leverage and enhance, including:
• Offshore wind potential – The City of Morro Bay has partnered with Trident Winds, which has
studied the potential for building a 650 to 1,000 MW floating wind farm roughly 20 miles offshore
of Morro Bay (note: current restrictions provided by the Navy have put a pause on the project ).
• Direct access to transmission infrastructure – Significant transmission infrastructure exists in
the county due to the existence of the decommissioned power plant in Morro Bay, a s well as the
Diablo Canyon nuclear power plant located in the unincorporated area of the county adjacent to the
City of San Luis Obispo.
• San Luis Obispo Community Climate Coalition - A growing group of committed San Luis
Obispo residents, businesses and organizations leveraging community expertise, creativity, and
resources in order to multiply the City of San Luis Obispo’s efforts to become carbon free.
• RESCO – Renewable Energy Secure Community - San Luis Obispo Renewable Energy Secure
Community (SLO-RESCO), is a 2014 CA Energy Commission grant funded project, which
surveyed and assessed the technical potential for local renewable and demand-‐side resource
development in San Luis Obispo county.
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o Overview presentation available at http://www.energy.ca.gov/research/notices/2015-07-
29_workshop/presentations/04-San_Luis_Obispo_LPI_July15.pdf.
o Full report available at: http://www.energy.ca.gov/2014publications/CEC-500-2014-
004/CEC-500-2014-004.pdf
CCE Objectives
The diverse strengths and needs of the JPA’s service territory create an opportunity to provide cost effective
renewable electricity supply and to partner with individual member jurisdictions and their businesses,
institutions, community groups, and energy users to maximize local economic impact and GHG reductions.
The list below reflects high-level objectives desired by the initial partner Cities. These are expected to be
revisited, amended, and refined as the progr am is developed. The Cities desire a CCE program that:
• Contributes to a carbon neutral community.
• Contributes to a robust local economy in consideration of the planned closure of the Diablo Canyon
Nuclear Power Plant and the decommissioned power plant in Morro Bay.
• Creates awareness of, pride in, and ownership of the local clean energy economy.
• Operates with fiscal responsibility.
• Grows strategically.
• Commits to social equity.
• Supports local electricity generation that prioritizes development of distributed energy resources
and complements demand-side reductions.
Scope of Services
The specific services the City is seeking are described in the below Scope of Services. The Scope of
Services is intended to provide a framework for RFP responses and is not intended to become the specific
scope of work to be included in the final Contract with the selected Proposer. Proposals should be organized
into the phases defined below but do not need to conform to the specific task structure outlined below. The
Proposal may expand, modify, or restructure the tasks of each phase to best communicate the Proposer’s
service model.
As mentioned above, outreach, communications, data management, call center services, and planning for
local power development will be procured under a separate RFP process, or processes, later in 2018 and
early 2019. Proposers should clearly describe how the services provided by their team will support and
interact with tasks to be completed by other parties as part of Phases 2 and 3, implementation/launch and
program operations.
If the below task structure is not followed, the Proposal should make clear how all the activities are being
addressed and/or how alternative activities propos ed in place of those described below will enhance and
improve CCE program delivery.
Phase 1: Program Assessment
Task 1.1: Administrative Support
Proposers should describe how they will complete the following activities:
a. Staff meetings: the selected Proposer will be expected to prepare for and participate in regular
update conference calls and other meetings with staff and consultants as appropriate.
b. Information for City Officials and Community members: the selected Proposer will support City
Staff with technical/energy-related information as they continue to engage local officials,
policymakers (City Council members, City Staff, etc.), prospective JPA members, and community
members.
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c. Initial Implementation/Formation Timeline: the selected Proposer will assist with refining a
timeline for CCE formation and implementation that includes a schedule of all technical and
energy-related steps required for a January/February 2020 launch.
d. Express goals as it relates to technical study: the selected Proposer will assist with further refining
and defining the CCE program priorities and goals to support the environmental benefits and cost
implications of a range of power supply scenarios during the technical analysis/assessment phase.
Task 1.2: Prepare Technical Analysis
A technical analysis that sizes the program and determines if environmental goals and cost competitiveness
with the incumbent utility can be met is critical to confirming the viability of a CCE and receiving an
affirmative vote from the City Council(s) to move forward with development of the Implementation Plan
and implementation services. The City of San Luis Obispo (directly) and the City of Morro Bay (indirectly)
have benefited from local feasibility studies that have supported decision making to this point. The technical
analysis contemplated here will use 2016/2017 load data from PG&E and determine how many customer
accounts are likely to be served by the CCE and identify related tariff designations/options under which
such customers will take electric service.1 The study will quantify the expected electricity requirements of
customers (total MWh) as well as periodic peak demands associated with such customers (total MW in
demand requirements).
The selected Proposer will review, format, and import data into an analytical framework and prepare
summary level data for residential, commercial, industrial and municipal accounts. The selected Proposer
will prepare load forecasts in consideration of this data, with a built-in assumption of a 10% program opt-
out rate. The technical analysis should address the following:
• 1.2.1: Load study and forecast: The Proposer will complete a utility load forecast that reviews
historical and projected future electric energy requirements and peak demand across all customer
classes, taking into account growth in renewables (e.g., rooftop solar), electric vehicle adoption,
fuel switching in the built environment (e.g., any expected transitions from natural gas to electricity
as the result of future building code updates), and other appropriate factors, such as compensation
for line losses. This task would entail the development of class -specific forecasts that are
aggregated to comprise a composite of expected electrical energy requirements (and hourly shape)
for Cities of San Luis Obispo and Morro Bay. This forecast should be developed in a manner that
allows for the inclusion or exclusion of current direct access electrical accounts, as identified in
customer data provided by PG&E. The load study will estimate the number of MWh that will be
required to serve the electric energy requirements of the CCE during the first five years of
operations, including applicable peak demand for purposes of quantifying resource adequacy
requirements.
• 1.2.2: Rate Analysis: The Proposer will conduct a CCE and PG&E rate analysis with reasonable
estimates of future PG&E generation rate changes based on historical prices, as well as factors that
may affect the rate of increase into the future (e.g. local generation construction, spot market
pricing, transmission rates, renewable energy mandates, declining cost of renewables, etc.). Other
factors may also include ancillary services, transmission conges tion impacts, and transmission
scheduling coordination costs. This analysis should be presented in a scenario analysis, with high,
medium and low estimates of future PG&E pricing for all rate classes. Other considerations should
include:
1 The cities of San Luis Obispo and Morro Bay will acquire 2016/2017 item 16 & 17 CCA load data from PG&E in
advance of an agreement with the selected Proposer to expedite the technical study.
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a. Identification of other factors that may affect rate comparison (examples include
combinations of the following: high gas, low gas, high hydro, low hydro, and rate
restructuring).
b. Investor Owned Utility (IOU) costs and surcharges embedded in rate forecast for direct
comparison to CCE costs. Special attention should be paid to the Power Charge
Indifference Adjustment (PCIA) with details on how this amount was derived and what
it is anticipated to be for the length of the agreement.
c. Based on IOU rate forecasts and other independent rate forecasts, compile electric
generation service cost/payment estimates for prospective CCE customers in
consideration of applicable IOU rate schedules.
• 1.2.3: Supply Scenarios for CCE: Generate 2-3 scenarios for the energy procurement requirements
of the CCE to address the goals and priorities as described above. Each scenario will examine the
likely rates and competitiveness with PG&E, given current market conditions. Each scenario will
also estimate greenhouse gas (GHG) impacts compared to PG&E. The selected Proposer will need
to consider variations in: 1) how the renewable and non-renewable portions of the power mix can
be obtained (e.g., in-state, in-county, out-of -state, unbundled vs. bundled renewable energy credits,
technology preferences), 2) non-renewable portfolio attributes (e.g., system purchases, natural gas,
hydro-electric), and 3) approach to resource adequacy. Please note a general preference to minimize
or not procure PCC-3 unbundled RECs in each scenario.
• 1.2.4: Potential Economic Impacts: The technical analysis should examine not just costs and GHG
impacts of a CCE program but also provide summary-level information regarding the potential
direct and indirect economic impacts of a CCE program serving the Cities and surrounding region.
• 1.2.5: Sensitivity Analysis: The technical analysis should include a sensitivity analysis reflecting
changes in the following variables and identify key drivers for potential rate volatility:
a. Market prices for conventional (non-renewable) energy.
b. Market prices for renewable energy based on preferred technologies.
c. Changes in PG&E generation rates and PCIA (exit) fees and customer surcharges
d. Changes in policies affecting local renewables development, including international
tariffs and the possible reduction/elimination of the federal solar tax credit and
production tax credit for wind power.
e. Rate sensitivity to customer opt-out rates.
f. Rate sensitivity to higher renewable energy portfolio targets that well exceed state
RPS.
g. Rate sensitivity to local renewable generation, energy efficiency, and demand-side
programs.
h. An evaluation of the potential impact of new policies, such as the RPS increasing to
100% by 2030 and Integrated Resource Plan requirements.
i. The GHG impact of a CCE program’s initial power portfolio. Is it possible, for
example, that a CCE could have a level of emissions similar or higher to PG&E in the
short term, but (with increasing levels of renewables) lower emissions in the long-
term? The analysis should consider a long-term GHG emissions profile compared to
PG&E.
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Task 1.3: Pro Forma/Financial Analysis
Based on the technical analysis, the selected Proposer will need to assess the CCE program from an overall
cost-benefit perspective. T his analysis would quantify all necessary upfront/implementation costs (CCE
bond requirements, other start-up costs and financing required to initiate power procurement) as well as on-
going costs associated with power procurement, scheduling and administration. The result will be a 5-year
proforma cash-flow analysis detailing costs and revenues under each scenario assessed in section 1.2.3
above. Quantifiable impacts shall include potential for: 1) annual and net savings over PG&E; 2) net GHG
reductions; and 3) expanded use of renewable energy resources and local power development. This task
will provide necessary financial metrics to make an informed decision.
The selected Proposer will need to assemble known and predictable cost -of-service variables and
incorporate these into base-case analyses. Predictable cost-of-service variables include energy supply/costs
(forecast spot market prices, long and short-term power contracts and renewable energy minimums). Other
inputs include start-up costs, cost of capital, operating and maintenance costs (administration, staffing,
external technical contractors and legal assistance, billing and collections, and customer service – call
centers and data and billing management). The financial analysis should also consider uncollected bills,
program reserves, CCE bonding for reentry fees and PG&E surcharges. Finally, the financial analysis
should consider possible feed in tariff and net energy metering programs that encourage development of
renewable energy generation projects in the region by offering customers a sustained reliable payback on
their investment in renewable energy and sustainable local generation system.
Task 1.4: Risk Analysis
The selected Proposer will also be required to analyze the potential risks to th e CCE program, and outline
risk-mitigation measures. Such risks include but are not limited to:
a. Any financial risk to consumers and the participating cities if the CCE fails (are there financial
safeguards that should be consider ed ?)
b. Financial risk of a CCE that procures too much or too little power and what the reasons might be
for missing demand forecasts (e.g. higher than expected opt outs)
c. Regulatory and legislative risk, due to rules changes at the CPUC or changes in state law that affect
the ability of CCEs to be competitive
d. The ability to procure the necessary amounts of resource adequacy and renewable supply to meet
and exceed RPS standards, particularly as the RPS rises to 50% by 2030, the number of CCEs in
the State greatly expands, and the demand for renewable energy spikes.
e. What is the exit strategy from the CCE if the City is dissatisfied with the program and/or the City
deems that the CCE is no longer viable at a later date? Is there a “re-entry” fee to go back to PG&E
and if so, what is it?
Task 1.5: Program Assessment Summary and Presentation
The selected Proposer shall summarize the processes and outcomes from Tasks 1.2, 1.3, and 1.4 in a format
that is accessible to local staff, City Councilmembers, and the public. The selected Proposer will prepare
for and attend two City Council meetings in September 2018 (one at the City of San Luis Obispo, the other
at the City of Morro Bay). The outcomes of the City Council meetings will provide direction to the selected
Proposer to: 1) proceed with drafting the Implementation Plan, or 2) cease work. Proposers should expect
to provide technical work and related deliverables three to four weeks in advance of the scheduled public
hearing date of September 18 for the City of San Luis Obispo, and a simila r date, to be determined, for the
City of Morro Bay.
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Additional Phase 1 Tasks
Proposers may include other components of the assessment phase that they deem important for the program
ultimately being successful.
Phases 2 and 3: Program Implementation, Launch, and Early Operations
Assuming there are no critical barriers to a successful CCE identified in Phase 1, Phases 2 and 3 will address
all the tasks required to provide the first delivery of energy to customers. These tasks are outlined as follows:
Task 2.1: Implementation Plan
The selected Proposer will undertake all steps necessary to comply with CPUC regulations related to
launching a CCE program. As an initial task, the CPUC requires that the CCE submit an Implementation
Plan that covers various aspects of CCE start-up and operations. The plan will include the following:
a. Process and consequences of aggregation
b. Organizational structure of the program, its operations and funding
c. Rate setting and other costs to participants
d. Disclosure and due process in setting rates and allocating costs among participants
e. Methods for entering and terminating agreements with other entities
f. Participant rights and responsibilities
g. Termination of the program
h. Description of third parties that will be supplying electricity under the program, including
information about financial, technical and operational capabilities
The Implementation Plan must also include a statement of intent indicating that the program must provide
universal access, reliability and equitable treatment of all classes of customers, and to meet any other
requirements established by state law or by the CPUC.2 The selected proposer will be responsible for
drafting the Plan and ensuring its certification by the CPUC. It is a top priority for the Cities that the
implementation plan be submitted in a manner so as to ensure that it is received by CPUC no later than
January 1, 2019.
The selected Proposer will prepare for and attend two City Council meetings in November and/or December
2018 (one at the City of San Luis Obispo, the other at the City of Morro Bay) to assist staff with presenting
the Implementation Plan to their respective City Councils for the purpose of approving the plan and
directing staff to submit it to the CPUC by the end of December 2018.
Proposers should expect to provide Task 2.1 deliverables three to four weeks in advance of the scheduled
public hearing date of November 27 for the City of San Luis Obispo, and a similar date, to be determined,
for the City of Morro Bay.
Task 2.2: Portfolio Management and Procurement Services
Respondent will assist in the development and implementation of a CCE portfolio management strategy,
including assistance with drafting, implementing and complying with appropriate Energy Risk
Management Policies. Respondents are expected to help develop and participate in a risk management
process, as well as produce, maintain, and publish reports tracking CCE compliance with portfolio
2 Section 366.2 of the Public Utilities Code specifies that to form a CCE, there must be a local ordinance approved by
the entity proposing the CCE, followed by the preparation of an implementation plan, which must contain specific
elements outlined in the statute. After the implementation plan is approved, the CCE registers with the CPUC and
provides an executed copy of the services agreement between the CCE and the utility that covers the services to be
provided by the utility (e.g.: billing).
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exposure, market risk and credit limits. Respondent will assist the CCE management and staff in presenting
results to the Board.
Respondents will be expected to identify and present risk-mitigation strategies the CCE’s risk management
team and leadership. Particular attention will be paid to proposed approaches to manage the risk to rate
competitiveness posed by the Power Charge Indifference Adjustment and how to incorporate those
approaches within the CCE’s procurement strategies.
Responders to this RFP will also be expected to procure and/or negot iate power contracts on the CCE’s
behalf, or assist the CCE in procuring all requisite energy, RA, capacity, renewable and GHG-free products
to meet the CCE’s power supply portfolio requirements while fully complying with applicable regulatory
and legislative mandates, CAISO rules and practices, and CCE Program goals and objectives, including its
enterprise risk management policy. Activities will include issuing RFPs for multi-year off-take agreements,
reviewing and evaluating bids, and negotiating bilateral power-purchase agreements with third-party power
providers.
Task 2.3: CAISO Scheduling Coordination Services
Scheduling Coordinator (SC) services include short-term load forecasting (i.e., week-ahead, day-ahead, and
hour-ahead), scheduling of load into the CAISO day-ahead market, validating CAISO statements for load
settlements, minimizing and managing real-time imbalance exposure, accepting Inter-SC Trades, and
managing a Congestion Revenue Rights (“CRR”) portfolio and bidding into the various CRR auctions.
The proposed CCE neither owns nor has generating resources under its operational control and therefore is
not requesting generation scheduling services as part of this RFP, but all respondents must possess the
capability and experience to schedule future renewable generation projects that may be under contract with
the CCE in the future. Additionally, SCs will be required to submit regulatory compliance filings, such as
monthly RA compliance reports to the CAISO on behalf of the CCE Program.
Respondents offering to provide SC services must be certified by the CAISO as a scheduling coordinator
or must name a certified scheduling coordinator that will be contractually responsible for scheduling loads
and resources throughout the proposed delivery term. If respondent is not a certified CAISO scheduling
coordinator and will be naming a third-party to serve in this capacity, the City requires such respondents to
submit proposals that are co-signed by the anticipated scheduling coordinator, verifying the intended
business relationship and the anticipated scope of services to be provided.
Respondents offering to provide SC services must describe the methodologies that will be used for load
forecasting and CRR portfolio management as well as all information systems that will be utilized in
providing SC services to the CCE and identification of those to which CCE personnel will have access.
Proposals must describe the process and methods to be used for validating CAISO charges and cred its that
will be passed through to the CCE Program.
It is also expected that the SC will be responsible for satisfying the CAISO’s various financial requirements
and obligations (i.e., collateral obligations).
Task 2.4: Advisory Services
There are several activities with which the CCE Program will require assistance related to utility and
wholesale power services. A list of activities is provided below. Proposers should add service/task areas
that are recommended but not otherwise included below:
• 2.4.1: Regulatory and Legal Compliance: Coordinate with CCE management and staff to ensure
registration and compliance with all regulatory requirements pertaining to CCEs such as:
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completion of the utility service agreement, posting of the CCE performance bond, RPS and
integrated resource plan reporting, resource adequacy, energy storage implementation, and re-
certification of implementation plan when necessary. This function would also involve general
monitoring of ongoing regulatory proceedings at the CPUC (as well as proposed laws at the
legislature) that may materially affect CCE functions and competitiveness and providing comments
and/or testifying at relevant forums when appropriate. Of particular concern would be impacts on
CCA fees, such as the departing load charge, resource adequacy, and changes around the cost
allocation mechanism.
• 2.4.2: Financial Planning and Rate Setting: Assist CCE staff and management with program
financial planning including development of annual operating budgets and making budget
presentations to the JPA Board of Directors as appropriate. This task also includes
managing/supporting the rate-setting process and presenting proposed rates to the Board for
approval.
Proposer will need to conduct annual rate analyses in establishing a rate setting methodology and
design that meets the annual budgetary revenue requirements set by the Board and staff. This will
include recovery of all expenses and any reserves or coverage requirements set forth in bond
covenants or other debt-service requirements. The CCE Program anticipates a rate structure similar
to PG&E’s rate schedules. Included in the rate structure should be consideration of policies that
further encourage local renewable energy development, including but not limited to:
a) A feed-in-tariff program to incentivize renewable energy projects within the Program
service territory;
b) A net energy metering tariff that encourages solar installation on the customer side of the
meter;
c) A 100% renewable and/or 100% carbon free, opt-in choice. Customers would be offered a
100% renewable energy or carbon free option at a premium price, based on the costs of
power supply.
• 2.4.3 Policy and Program Development: If requested, assist CCE staff and management with
various operational and procurement related policies including energy risk management policies.
Possible program support could include energy efficiency program development and
administration, local power development projects, job training and energy storage initiatives.
Policies could include, as discussed previously, feed-in-tariff and net energy metering programs.
• 2.4.4: Integrated Resource Planning/Long-Term Power Procurement: Assist CCE Program with
developing a long-term integrated resource plan that considers both demand-side reductions
(through energy efficiency and demand response) as well as conventional/renewable supply. The
resource plan will estimate the percentage of total electricity demand that will come from renewable
and non-renewable resources. This should take into consideration SB 350’s Integrated Resource
Planning requirements and other relevant factors. If requested, the selected Proposer will work with
CCE staff to issue RFPs for multi-year, off-take agreements, reviewing and evaluating bids and
negotiating bilateral power-purchase agreements with third-party power providers. Proposer may
also be requested to help implement elements of a soon to be developed Local Power Business
Plan.
• 2.4.5: Other Services: Identify other advisory related services and tasks which may not have been
included in this RFP which Proposer deems are important to the success of the Program.
Comprehensive proposals that identify opportunities above and beyond standard Program
operations are encouraged.
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Task 2.5: Financing and Credit Solution
There will be several short-term financial needs that the CCE will need to fund prior to receipt of revenues
including but not limited to: paying settlements with power suppliers and CAISO, providing credit support
to power suppliers and CAISO, paying utility service fees, and posting the CPUC performance bond. In
addition to deferred compensation for services rendered prior to program launch, the City will give
preference to Proposers to this RFP that are able to provide credit support for the CCE’s wholesale energy
market financing requirements and that are able to clearly present the credit terms, costs, and limits of a
proposed credit solution.
Additional Phase 2 and 3 Tasks
Proposers may include other components of the launch phase that they deem important in the program
ultimately being successful. Proposers may also include additional power -related components of the
operations phase that they deem important including innovative or value-added services proposed beyond
the basic requirements of CCE wholesale power operations outlined above.
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Section B
GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (proposer)
shall meet all of the terms, and conditions of this Request for Proposals (RFP) specifications
package. By virtue of its proposal submittal, the proposer acknowledges agreement with and
acceptance of all provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted using the form(s) provided in the
specifications and accompanied by any other required submittals or supplement al materials.
Proposal documents shall be submitted on BidSync. If proposers have any trouble submitting a bid,
they should contact BidSync Support at support@BidSync.com or via phone at (800) 990-9339.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the proposer’s insurance
coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are not
required until contract award. The City’s insurance requirements are detailed in Section E.
4. Proposal Withdrawal and Opening. A proposer may withdraw its proposal, without prejudice
prior to the time specified for the proposal opening, by submitting a new proposal on BidSync prior
to the closing time. No proposal received after the time specified or at any place other than that
stated in the “Notice Inviting Bids/Requesting Proposals” will be considered. All proposals will be
opened and declared publicly. Proposers or their representatives are invited to be present at the
opening of the proposals.
5. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested in more than one proposal, except an alternative proposal when
specifically requested; however, an individual or business entity that has submitted a sub-proposal
to a proposer submitting a proposal, or who has quoted prices on materials to such proposer, is not
thereby disqualified from submitting a sub-proposal or from quoting prices to other proposers
submitting proposals.
6. Communications. All questions related to the solicitation must be submitted on BidSync on or
before May 25, 2018. Other requests for information must be submitted to the Purchasing Analyst
indicated as a contact on the solicitation.
CONTRACT AWARD AND EXECUTI ON
7. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a proposal
and accept the other, except to the extent that proposals are qualified by specific limitations. See
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the “special terms and conditions” in Section C of these specifications for proposal evaluation and
contract award criteria.
8. Competency and Responsibility of Proposer. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of proposers. Proposers will
provide, in a timely manner, all information that the City deems necessary to make such a decision.
9. Contract Requirement. The proposer to whom award is made (Contractor) shall make every
reasonable effort to expedite contract negotiations and execute a written contract with the City in a
timely fashion so as to allow the submittal of the Implementation Plan to the CPUC as described
above. Proposers shall include contract negotiations as an item in their proposed project schedule.
10. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in Section E of these specifications within 10 (ten) calendar days after notice
of contract award as a precondition to contract execution.
11. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business
license & tax certificate before execution of the contract. Additional information regarding the
City’s business tax program may be obtained by calling (805) 781-7134.
CONTRACT PERFORMANCE
12. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry out
and complete the work hereunder in compliance with any and all federal, state, county, city, and
special district laws, ordinances, and regulations.
13. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obisp o
ordinances, regulations and adopted codes during its performance of the work.
14. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
15. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
16. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industria l Safety.
17. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous
to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
18. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured or
damaged resulting from the Contractor’s operations, it shall be replaced or restored at the
Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
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19. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of this work that only persons authorized to work in t he United State
pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall be
employed in the performance of the work hereunder.
20. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination in
employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
21. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or due to
unforeseen circumstances, then the time of completion may, at the City’s sole option, be extended
for such periods as may be agreed upon by the City and the Contractor. In the event that there is
insufficient time to grant such extensions prior to the completion date of the contract, the City may,
at the time of acceptance of the work, waive liquidated damages that may have accrued for failure
to complete on time, due to any of the above, after hearing evidence as to the reasons for such
delay, and making a finding as to the causes of same.
22. Payment Terms. The City seeks a “deferred compensation” arrangement that would incur
no upfront costs for pre-revenue activities including program assessment, implementation and launch.
The assessment phase (Phase 1) of the Scope of Work would be undertaken by the Proposer at the
Proposer’s risk. The Proposer would receive deferred compensation and on-going operations fees
contingent on direction by the City of San Luis Obispo City Council to continue work based on the
findings of Task 1.2/Technical Analysis. The deferred compensation payments and operations fees
will commence once the CCE program is operational and receiving revenues, likely through a “lock
box” account funded by CCE program operations. Payment terms from the “lock box” account will
be agreed upon through contract negotiations between the Proposer and the City.
23. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done and all materials furnished, if any, shall
be subject to the City’s inspection and approval. The inspection of such work shall not relieve
Contractor of any of its obligations to fulfill its contr act requirements.
24. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
25. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not
acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree
with the performance of the work hereunder. The Contractor further covenants that, in the
performance of this work, no subcontractor or person having such an interest shall be employed.
The Contractor certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance
of the work hereunder, the Contractor shall at all times be deemed an independent contractor and
not an agent or employee of the City.
26. Hold Harmless and Indemnification. Contractor agrees to defend, indemnify, protect and hold
the City and its agents, officers and employees harmless from and against any and all claims
asserted or liability established for damages or injuries to any person or property, including
injury to Contractor's employees, agents or officers which arise from or are connected with or
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are caused or claimed to be caused by the acts or omissions of Contractor, and its agents, officers
or employees, in the performance of all obligations under this Agreement, and all expenses of
investigating and defending against same; provided, however, that Contractor's duty to
indemnify and hold harmless shall not include any claims or liability arising from the established
sole negligence or willful misconduct of the City, its agents, officers or employees.
27. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
28. Contract Assignment by City. The terms and conditions of the Contract Agreement may be
assigned by City without the prior consent of Contractor to the Joint Powers Authority created for
the purpose of providing CCE services to the Cit y of San Luis Obispo in partnership with the City
of Morro Bay and other municipal agencies yet to be determined.
29. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor in
writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten) calendar
day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the contract
immediately by written notice to the Contractor to said effect. Thereafter, neither party shall have
any further duties, obligations, responsibilities, or rights under the contract except, however, any
and all obligations of the Contractor’s surety shall remain in full force and effect, and shall not be
extinguished, reduced, or in any manner waived by the terminations thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed from
the beginning date in which the breach occurs up to the day it received the City’s Notice of
Termination, minus any offset from such payment representing the City’s damages from such
breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone
or task satisfactorily delivered or completed by the Contractor as may be set forth in the Agreement
payment schedule; compensation for any other work, services or goods performed or provided by
the Contractor shall be based solely on the City’s assessment of the value of the work-in-progress
in completing the overall work scope.
The City reserves the right to delay any such payment until completion or confirmed abandonment
of the project, as may be determined in the City’s sole discretion, so as to permit a full and complete
accounting of costs. In no event, however, shall the Contractor be entitled to receive in excess of
the compensation quoted in its proposal.
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Section C
SPECIAL TERMS AND CONDITIONS
1. Contract Award. Subject to the reservations set forth in paragraph 7 of Section B (General Terms
and Conditions) of these specifications, the contract will be awarded based on the proposal content
described in paragraph 7 and the evaluative criteria set forth in paragraph 8, below.
2. Contract Term. Requested services are to be provided during the Program assessment and
implementation/launch period, anticipated to be July 2018 – December 2019, followed by a 36 –
48 month initial Program operating period expected to commence on or about January 1, 2020 .
Responders should clearly identify proposed contract duration(s) and associated costs within their
proposals. The prices quoted for services must be valid for the entire period indicated above unless
otherwise conditioned by the proposer in its proposal.
3. Contract Extension. The term of the contract may be extended by mutual consent for an additional
period to be negotiated six months prior to the end of the contract.
4. Contractor Invoices. The Contractor shall deliver a monthly invoice to the Cit y, with attached
copies of work order forms or detail invoices as supporting detail, irrespective of the deferred
compensation model contemplated herein so as to ensure that expenditures are not “over -advanced”
relative to the agreed upon compensation.
5. Submittal of References. Each proposer shall submit a statement of qualifications and 3 references
on the form provided in this RFP package.
6. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any
past governmental agency bidding or contract disqualifications on the form provided in the RFP
package.
7. Proposal Content. Your proposal must include the following information:
Submittal Forms
a. Proposal submittal summary (cover letter) that includes the following:
• Name, address, and telephone and email of Proposer and primary contact person.
• If team arrangement is proposed, describe the structure of the relationship and any past
working relationships on similar projects.
• Name of entity that would be the prime Contractor and sign the Agreement, and the
entity's legal form.
• A statement that you have reviewed the requirements of the project as described in this
RFP, its enclosures, and all addenda, by listing all addenda.
• The cover letter and any forms must be signed by an officer or agent of the Proposer
authorized to bind the Proposer. In signing proposal, the Proposer agrees that the terms
of proposal and the cost as submitted by Proposer are firm for a period of 120 days
from proposal due date.
b. Certificate of insurance.
c. Examples of professional work products related to establishment of a CCE Program.
Qualifications
d. Experience of your firm in performing similar services.
e. Resumes or bios of the individuals who would be assigned to this project, including any
sub-consultants.
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f. Standard hourly billing rates for the assigned staff, including any sub -consultants.
g. Description of how the proposal team has attained or fulfills the knowledge, experience,
abilities, and capacity necessary to fulfill the Scope of Services.
h. Statement and explanation of any instances where your firm has been removed from a
project or disqualified from proposing on a project.
Work Program
j. Description of your approach to completing the work.
k. Tentative schedule by phase and task for completing the work.
l. Estimated hours for your staff in performing each major phase of the work, including sub -
consultants.
m. Services or data to be provided by the City.
n. Any other information that would assist us in making this contract award decision.
Compensation
p. A cost proposal detailing the full cost of the services proposed and how those fees are
structured. Proposers should provide specific budgets (broken down by task) or specify fee
levels. Proposers may also propose varying fee structures such as consulting fees ($ per
hour or fixed $ sums by deliverable) for one phase and management fees ($ per kWh or $
per CCE customer) for another. Proposers shall clearly identify how costs incurred prior to
program operation will be deferred and shall clearly identify the schedule by which they
will be repaid. Additionally, proposers shall clearly state that any costs accumulated
through the course of Phase 1 will only be recovered if the City affirms, through Council
action, their desire to move to Phase 2.
8. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee based on
the following non-exhaustive factors:
a. Qualifications and experience of the respondent’s provision of the same or similar services;
b. Capability and experience of key personnel as well as direct experience with other public and/or
private agencies in similar capacities;
c. History of successfully performing services for public and/or private agencies and other CCEs;
d. Financial viability of the respondent;
e. Cost to the City for the services identified in this RFP;
f. Proposed approach, including a clearly demonstrated understanding of the intended scope of
products and services to be provided;
g. Proposer’s indicated willingness and ability to work with other City vendors and consultants;
h. Ability to meet required timelines or other requirements;
i. Existence of and circumstances surrounding any claims and violations against the respondent,
its representatives and/or partners;
j. Pertinent references.
The City reserves the right to consider factors other than those indicated above and to request
additional information from any/all respondents as part of the selection process.
Additionally, the respondent must provide evidence of financial, technical and operational
capabilities for delivery of the requested services, including:
a. Audited financial statements for the most recent previous two years or a web-link where such
information is accessible.
b. If available, a credit rating from two of the following: Standard & Poor’s, Moody’s, or Fitch
Investor Services from the most recent rating agency report.
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Through issuance of this RFP, the City makes no commitment to any bidder and provides no
guarantee that a contract will be awarded. The City reserves the right to discontinue this RFP
process at any time for any reason.
All proposals that are deemed on time and complete will be evaluated by a review committee. The
review committee may be composed of City of San Luis Obispo and City of Morro Bay staff and
other parties that have expertise or experience in CCE Technical & Energy Services . The review
committee will score the proposals in accordance with the evaluation criteria set forth in this RFP.
The evaluation of the proposals shall be within the sole judgment and discretion of the City and its
designated review committee. As reflected above, contract award will not be based solely on price,
but on a combination of factors as determined to be in the best interest of the City. After selecting
a finalist, the City reserves the right to further negotiate the proposed work and/or method and
amount of compensation.
9. Proposal Review and Award Schedule. The following is an outline of the anticipated schedul e
for proposal review and contract award:
a. Issue RFP 5/16/18
b. Conduct pre-proposal conference 5/24/18; 11:00 AM
c. Proposer Questions due 5/25/18
d. Answers to Questions posted 5/29/18
c. Receive proposals 6/4/18, 3:00 PM
d. Complete proposal evaluation 6/15/18 (estimate only)
e. Conduct finalist interviews 6/21/18 – 6/22/18 (estimate only)
f. Finalize staff recommendation 6/26/18 (estimate only)
g. Award contract 6/26/18 (estimate only)
h. Execute contract 7/6/18 (estimate only)
i. Start work 7/9/18 (estimate only)
10. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following
location, date, and time to answer any questions that prospective proposers may have regarding this
RFP:
Thursday, May 24; 11:00AM
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
1-888-204-5987, Code: 8618289
11. Ownership of Materials. Al original drawings, plan documents and other materials prepared by
or in possession of the Contractor as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
12. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of City and shall not be made available to any individual or
organization by the Contractor without the prior written approval of the City.
13. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
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provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor’s direct expense.
Section D
INSURANCE REQUIREMENTS: Consultant Services
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property which may arise from or in connection with the performance of
the work hereunder by the Contractor, its agents, r epresentatives, employees, or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code
1 (any auto).
3. Workers’ Compensation insurance as required by the State of California and Employer’s Liability
Insurance.
4. Errors and Omissions Liability insurance as appropriate to the consultant’s profession.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used, either
the general aggregate limit shall apply separately to this project/location or the general aggregate
limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.
4. Errors and Omissions Liability: $1,000,000 per occurrence.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products and
completed operations of the Contractor; premises owned, occupied or used by the Contractor; or
automobiles owned, leased, hired or borrowed by the Contractor. The coverage shall contain no
special limitations on the scope of protection afforded to the City, its officers, officials, employees,
agents or volunteers.
2. For any claims related to this project, the Contractor’s insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officia ls, employees, agents or
volunteers shall be excess of the contractor’s insurance and shall not contribute with it.
3. The Contractor’s insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer’s liability.
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4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty (30)
days’ prior written notice by certified mail, return receipt requested, has been given to the City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating of no
less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing
maintenance of the required insurance coverage. Original endorsements effecting general liability and
automobile liability coverage required by this clause must also be provided. The endorsements are to be
signed by a person authorized by that insurer to bind coverage on its behalf. All endorsements are to be
received and approved by the City before work commences.
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Section E
Proposal Submittal Forms - REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under
the present business name: ___________________. Describe fully the last three contracts performed by
your firm that demonstrate your ability to provide the services included with the scope of the specifications.
Attach additional pages if required. The City reserves the right to contact each of the references listed for
additional information regarding your firm’s qualifications.
Reference No. 1
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 3
Customer Name
Contact Individual
Telephone & FAX number
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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Section F
Proposal Submittal Forms - STATEMENT OF PAST CONTRACT
DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in it,
has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state,
or local government project because of the viola tion of law, a safety regulation, or for any other reason,
including but not limited to financial difficulties, project delays, or disputes regarding work or product
quality, and if so to explain the circumstances.
◼ Do you have any disqualification as described in the above paragraph to declare?
Yes ❑ No ❑
◼ If yes, explain the circumstances.
Executed on ______________________________ at ______________________________ under penalty
of perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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Council Minutes
City Hall, 990 Palm Street, San Luis Obispo
Tuesday, December 12, 2017
Special Meeting of the City Council
CALL TO ORDER
A Special Meeting of the San Luis Obispo City Council was called to order on Tuesday,
December 12, 2017 at 4:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis
Obispo, California, by Mayor Harmon.
ROLL CALL
Council Members
Present: Council Members Carlyn Christianson, Aaron Gomez, Andy Pease, Vice Mayor
Dan Rivoire, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff
Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; Greg Hermann,
Acting Assistant City Manager; and Carrie Gallagher, City Clerk; were present at
Roll Call. Other staff members presented reports or responded to questions as
indicated in the minutes.
STUDY SESSION
1. COMMUNITY CHOICE ENERGY STUDY SESSION
Acting Assistant City Manager Hermann and Community Development Director Codron
provided an in-depth staff report with the user of a Power Point presentation and responded
to Council questions.
Marc Adato, Community Outreach Coordinator
Jen Greigor, County of Santa Barbara County Energy and Sustainability Initiatives, provided
feasibility study information.
Eric Veium, SLO Clean Energy, clarified resolution language.
Chris Reed, County of San Luis Obispo.
Benjamin Eichert, Director of Green Power, State Wide Non -Profit.
Public Comments:
Robert Wolfe
San Luis Obispo Page I
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San Luis Obispo Special City Council Minutes of December 12, 2017 _ Pay -e 2
Pete Schwartz
Eric Veium
John Smigecski
Benjamin Eichert
Justin Bradshaw
Eric Meyer
Andrew Folick
End of Public Comment ---
By consensus, Council received, filed and provided staff direction on the following:
1. Receive and file the Technical Feasibility Study on Community Choice Energy ( CCE)
for the Tri -County area including San Luis Obispo County, Santa Barbara County, and
Ventura County; and
2. Receive and file an initial feasibility study prepared by Pilot Power Group for the intra -
county region — City of San Luis Obispo and County of San Luis Obispo; and
3. Provide staff with direction regarding whether or not to continue to pursue community
choice energy options as follows:
Council provided direction to pursue forming a new CCE, in conjunction with other
interested jurisdictions in San Luis Obispo County and/or in PG&E territory of Santa
Barbara County. If that option is not feasible, then staff should pursue joining an
existing CCE such as Monterey Bay Clean Power or other comparable alternatives.
ADJOURNED AT 5:40 PM TO THE SPECIAL MEETING OF DECEMBER 12, 2017 TO
BEGIN AT 6:00 PM IN THE COUNCIL CHAMBER
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