Joint Procurement Strategies for Prop 39:
Using Economies of Scale to Get Best Pricing
October 6, 2015
TerraVerde Overview
Expertise:
Selected by 35 Districts to support Prop 39 implementation; 20 Expenditure Plans approved by CEC; 15
in RFP, design or construction phase
Track Record:
Over $100 Million in Solar projects completed at 120 sites to date; another 20 sites under construction
Fall 2015, and 44 more projects starting between January 2015 and June 2016
100% on time, on budget and performing as promised; $10 Million+ in cost savings
helped secure over $35 Million in low-interest financing for solar and energy efficiency projects(CEC
Loans, Build America Bonds, QSCBs, CREBs)
Innovation:
Completed first solar plus battery storage School District project in California (9 sites); another under
construction (8 sites) and several more in RFP phase
Recognized Leader:
CASBO’s only Energy Strategic Alliance Partner
SEC Executive Committee Member
Selected by CEC to help develop Solar Calculators
Expert Witness in Solar Policy proceedings before the CPUC
Independence
Since 2009, TerraVerde has been California’s only independent solar energy advisor; no ties whatsoever
with contractors, suppliers or financiers
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Prop 39 Procurement Requirements
Public Resources Code section 26235(c), states, “A
community college district or LEA shall not use a sole
source process to award funds pursuant to this chapter.
A community college district or LEA may use the best
value criteria…”
“The LEA shall defer to their own procurement
regulations and procedures, as long as they reflect
applicable state and local laws and regulations and do
not conflict with the minimum legal standards specified
above.”
PROPOSITION 39: California Clean Energy Jobs Act –2015
ENERGY EXPENDITURE PLAN HANDBOOK
In other words…Consult your attorney
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Energy Project Development and Operation
Best Practice Basics
“Measure Twice, Cut Once”
One size does not fit all…
Make sure you get an unbiased evaluation of the optimal project specifications
Make the market compete for your business
Use an RFP procurement process that specifies performance
Use competition to your advantage in contract negotiations
Leave Nothing to Chance
Drill down into the numbers
Make sure you understand all contract terms
Have someone who understands energy projects manage your construction and
commissioning
Monitor Performance and Warranties
Quarterly and annual reporting
24/7 Monitoring by someone who is working for you
Preventive maintenance and warranty enforcement
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Joint Procurement: Case Study #1
Multi-District Energy Conservation General Contractor
RFP
5 Districts
Allocations ranging from $250K to $500K…totaling $1.7 Million
4 located within 30 miles of each other; one 60 miles away
Common project scope: HVAC, Interior/Exterior Lighting,
Controls
Process to date
Current Status
What worked, What didn’t
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Joint Procurement: Case Study #2
Solar Project
3 Districts:
One: 10,000+ ADA
Two: > 1,000 ADA, one site each
All located within 30 miles of each other
Different Project Scope
One: multiple sites; Two: one site
One: Mix of shade structures and Groundmount; Two: Groundmount only
One: No Prop 39 funds; Two: Using Prop 39
One: PPA only; One CREB financing plus Prop 39; One PPA plus Prop 39
Process to Date
Current Status
What worked, What didn’t
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Solar Results: Large District
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Solar Results: Small District
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Lessons Learned
Educate bid community
Reduce complexity…KIS
Make risks transparent
Keep open to the unexpected
Use trusted partners
Joint Procurement is not always the best way
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Contact Information
Rick Brown, PhD, President
TerraVerde Renewable Partners, LLC
1100 Larkspur Landing, Suite 155
Larkspur, CA 94939
(707) 953-2885
Rick.Brown@tvrpllc.com
www.TVRPLLC.com
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About TerraVerde Renewable Partners
Since 2009, TerraVerde has been California’s leading
independent solar energy advisor
Recognized leader in project development consulting
services: Energy Efficiency, Solar PV, Energy Storage
In house engineering, structured finance, financial modeling,
Installation & PPA contracts, Owner’s Representative project
management, and post-installation Asset Management
Services
Serving all of California (offices in So Cal & Nor Cal)
Solar energy industry veteran principals are directly involved
in project development, financial analysis, technical specs
Unique engagement model mitigates project risks during
development
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TerraVerde’s Mission
Assist California public agencies achieve energy independence, while
obtaining meaningful cost savings, and a reduced carbon footprint
Serve as an independent advisor and owner’s rep, to develop & implement
high value energy projects while mitigating risk
Set realistic goals & objectives
Educate clients about technologies, Utility tariffs/programs, project funding &
financing options, incentives, regulations, contracts
Leverage advanced knowledge, tools, methods, and experience
Develop Client-specific comprehensive energy management programs
Demand management
Energy efficiency measures
Renewable energy generation systems
Systematic analysis and evaluation to deliver maximum benefit projects
Client-centric services: from concepts & plans to life-long operations
management
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Our Approach
Comprehensive, independent project development and
feasibility assessment via systematic due diligence
Define SOW, systems specifications, and project costs
Determine optimum system capacity and Utility rates
Detailed 25-year Savings cash flow pro-formas for various
financing scenarios
Run turnkey RFP process using open-book bidding
Manage contracts, design, engineering, construction,
commissioning and system performance validation
Manage on-going O&M, warranty support, performance
monitoring and reporting
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TerraVerde’s Experience
Projects Completed To Date: $100 Million
Projects Under Development: $45 Million
Sample clients:
• Clovis USD
• Lancaster USD
• Rancho CA Water District
• Visalia USD
• Clovis USD
• Sonoma County Family YMCA
• Hemet USD
• Eastern Sierra CSD
• Inyo County
• Burton City Schools
• Petaluma City Schools
• Golden Valley USD
• City of Woodland
• City of Lathrop
• City of Bishop
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What Our Clients Say
“TerraVerde
emphasizes education and transparency. We feel confident that they provide us an
unbiased assessment of the risks and benefits.”
Don Ulrich, Assistant Superintendant, Clovis USD
“TerraVerde is the best partner I have ever worked with in my 28 years of school construction
experience.”
Eric Cederquist, Superintendent, Fowler Unified School District
“TVRP paid special attention to our unique needs and requirements throughout the
development and implementation process. Most importantly, they have worked as a true
partner, providing information in a fully transparent manner and have worked collaboratively
with us to address issues and problems that inevitably arise during the development process.”
Steve Bolman, Superintendant, Petaluma City Schools
“It is my pleasure to provide my highest recommendation for TerraVerde. As their name
implies, they have truly become our partner in all energy matters. Every person that we have
worked with at TVRP knows our particular issues and concerns and is an integral member of
our team as we evaluate both solar and now Prop 39 projects.”
Robert Groeber, Assistant Superintendent, Visalia USD
“While we were in the process of developing our solar project, we had over ten contractors
participate in the mandatory site walk. One of the contractors said to me how fortunate our
district is to be working with Terra Verde. They said that there is never a question as to what is
expected of the contractors and that Terra Verde is very well organized which leaves little room
for mistakes or issues once the project begins.”
Tracy Tucker, MOT Director, Burton City Schools
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