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Home My WebLink Aboutresolution.council.104-24RESOLUTION 7T104 SERIES OF 2024 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, WHICH AUTHORIZES THE CITY OF ASPEN TO COMMIT TO THE FINANCIAL AND LEGAL OBLIGATIONS ASSOCIATED WITH RECEIPT OF A GRANT THROUGH THE COLORADO LOCAL AFFAIRS (DOLA) MICROGRIDS FOR COMMUNITY RESILIENCE (MCR) GRANT PROGRAM. WHEREAS THERE HAS BEEN SUBMITTED TO THE CITY COUNCIL A GRANT FOR THE PLANNING AND PRELIMINARY DESIGN OF A LOCAL MICROGRID THAT PROPOSES $52,888.50 (75%) DOLA MANAGED GRANT WITH THE CITY OF ASPEN ELECTRIC UTILITY MATCH OF $17,629.50 (25%). NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, THAT THE CITY COUNCIL OF THE CITY OF ASPEN HEREBY APPROVES AND COMMITS THE CITY OF ASPEN TO THE FINANCIAL AND LEGAL OBLIGATIONS ASSOCIATED WITH THE RECEIPT OF A GRANT AWARD VIA DOLA, IF ONE IS SO GIVEN, A COPY OF WHICH IS ANNEXED HERETO AND INCORPORATED HEREIN, AND DOES HEREBY AUTHORIZE THE CITY MANAGER TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY OF ASPEN. f INTRODUCED, READ AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ASPEN ON THE 27TH DAY OF AUGUST, 2024. Torre, Mayor I, NICLOE HENNING, DULY APPOINTED AND ACTING CITY CLERK DO CERTIFY THAT THE FOREGOING IS A TRUE AND ACCURATE COPY OF THAT RESOLUTION ADOPTED BY THE CITY COUNCIL OF THE CITY OF MEETING HELD AUGUST 27TH, 2024. ASPEN, COLORADO AT A t Nicole Henning, City COLORADO Department of Local Affairs Division of Local Government August 7, 2024 Mr. Torre Mayor City of Aspen 427 Rio Grande Place Aspen, CO 81611 RE: Contingent Award- MCRG-FFP003 City of Aspen Microgrid Planning Project (SMFFP) Dear Mr. Torre, Congratulations! After thorough review, I am excited to offer a contingent grant award in the amount of $52,888.50 for the City of Aspen Microgrid Planning Project (SMFFP) pending U.S. Department of Energy review and approval. This awarded project is a part of the Microgrids for Community Resilience (MCR) Grant Program through the Colorado Department of Local Affairs (DOLA), with State funding from HB22-1013 and federal funding from U.S. Department of Energy 40101(d) formula funding. This program provides grants to support rural electric cooperatives and municipal utilities in establishing microgrid resources for rural communities. The program is funded through the Colorado General Assembly and the U.S. Department of Energy. Your project was reviewed based on a variety of factors such as readiness, social/climate/infrastructure risks and vulnerabilities, community benefits, existing efforts by the applicant to advance energy efficiency and demand -side management, and timeline. The awarding committee was impressed with the ability for this planning project to improve reliability and capacity, as well as support resilience for critical infrastructure. We have awarded your project an additional $16,888.50 of available funding higher than requested to help expend available funding. Please note your match amount has decreased to $17,629.50. This offer is continent on: • The City submitting a commitment letter from an official authority (i.e. MayorL Confirming this funding change and issuing a new match commitment letter with this adjusted amount. Please contact DOLA Microgrids for Community Resilience Program Manager, Julia Masters at iulia.mastersC�state.co.us with any questions. Please keep in mind any expenditures prior to the execution of the grant agreement will not be allowable. This includes expenditures requesting reimbursement from the State and any matching funds included in the project scope of work. Per our program guidelines, all funded MCR grants must be fully expended by June 30, 2026. I wish you success with your project. Thank you for helping Colorado build more resilient and reliable energy systems. Sincerely, Mara De�ambra Executive Director, DOLA cc: Andy Rossello, Responsible Administrator Kate McIntire, DOLA Regional Manager Governor Jared S. Polis � IV aria De Cambra, Executive Director � Eric Bergman, Division Director 1313 Sherman St., Room 315, Denver, CO 80203 P 303.864.7710 `��=_ F 303.864.7719 www.doLa.colorauo.gov Strengthening Colorado Communities COLORADO Department of Local Affairs Division of Local Government Julia Masters, DOLA Program Manager Lindsey Sawyer, DOLA Program Assistant Governor Jared S. Polis � Maria De Cambra, Executive Director � Eric Bergman, Division Director oF'.�Olo 1313 Sherman St., Room 315 Denver CO 80203 P 303.864.7710 `��`'%\��- `� � F 303.864.7719 www.dola.colorado.gov Strengthening Colorado Communities �` 1876 �` une 5, 2024 Engineering CLP Engineering, LLC 6312 S. Fiddlers Green Circle Suite 200E Greenwood Village, CO 80111 • •� •' •dp Oil& ' City of Aspen Microgrid Planning Project — Budgetary Proposal Table of Contents Tableof Contents............................................................................................................................................. 1 1. Introduction/Cover Letter........................................................................................................................ 1 2. Project Background.................................................................................................................................. 2 3. Scope of Work.......................................................................................................................................... 2 4. Assumptions and Clarifications................................................................................................................ 3 5. Price Estimate.......................................................................................................................................... 3 6. Schedule...................................................................................................................................................3 7. Contact Information................................................................................................................................. 4 City of Aspen Microgrid Planning Project — Budgetary Proposal 1. Introduction/Cover Letter June 5, 2024 ATTN: Justin Forman, PE, CFM Director, Utilities Aspen, CO Phone: 970,429.1992 Email: justin.forman@aspen.gov Dear Mr. Forman, Thank you for the opportunity to provide a budgetary proposal for the City of Aspen microgrid planning p roj ect. One of the key strengths of CLP Engineering (CLPE) is our in-house engineering team that provides a wide range of technical support to related to smart grid, on -site generation, and microgrid projects across the United States. In the last 3 years, CLPE has completed four microgrid planning projects where we have gained invaluable experience and insight on effective microgrid planning processes. Currently, we are supporting 5 new microgrid planning and design work across the country. The microgrid system utilizes emerging and cutting -edge technologies that are not yet well covered by industry standards. Renewable energy, battery energy storage system, and microgrid control systems are still evolving technologies and manufacturers and integrators are constantly adapting and changing their offerings. With our recent experience in microgrid planning, CLPE is well positioned to navigate through technical challenges and guide our customers to avoid pitfalls. Our goal is to help the City of Aspen develop a practical and cost effective microgrid system that can be sustained, maintained, and operated for the long term. CLPE provides value to our customers through planning and design processes that go beyond traditional engineering consulting practices. We work closely with stakeholders, planners, and system operators to design engineering solutions that are tailored for customers' needs. As a result, we are constantly evaluating and assessing constructability challenges and on -site issues that can cause schedule delays and added costs. We are excited to provide a budgetary price proposal for this project. Thank you for your time and consideration. Sincerely, Ajay Sitaula, PE VP and Chief Engineer CLP Engineering, LLC 6312 S. Fiddlers Green Cir, Suite 200E, Greenwood Village, CO 80111 Direct: 720.305.0410 1 Cell: 303.495.0651 1 Proprietary CLP �, Engineering City of Aspen Microgrid Planning Project — Budgetary Proposa 2. Project Background Aspen is preparing a grant application to receive microgrid planning funding support from the state of Colorado Energy Office (CEO). The City of Aspen electrical distribution system is fed by a single overhead transmission line from Holy Cross Energy (HCE). This single line stretches tens of miles and is vulnerable to wildfire and weather -related natural disasters. If this line sustains major damage due to wind, storms, or wildfire, the city could be out of power for days or even weeks. The City of Aspen is a major tourist destination where hundreds of thousands of people visit the area during peak winter and summer seasons. Extended loss of utility supply can have devastating effects on visitors, local business, and workers and impact public safety and other critical city operations. This proposal is to support detailed microgrid planning to identify requirements and the best option that meets those requirements in the most cost-effective way. The outcome of this planning exercise will facilitate the detailed design and implementation of the microgrid if funding is available soon. 3. Scope of Work CLPE's approach for microgrid planning include following checklist: 1. Review and understand true as -built layout of the existing distribution system 2. Define overall microgrid objectives and functional requirements 3. Create high-level oneline and site map of the existing system where the microgrid will be implemented 4. Create baseline microgrid switching boundary/configuration in oneline schematic view 5. Conduct microgrid load analysis 6. Size baseline generation and storage capacities 7. Visit sites and investigate proposed generation and storage locations for feasibility, constructability, interconnections, operations and maintenance, and other potential challenges 8. Identify any "blue sky" benefits available for on -site generation resources such as peak shaving, demand response, and load curtailments 9. Coordinate with transmission utility and identify interconnection requirements 10. Develop multiple alternatives for microgrid generating resources and switching configurations and perform cost vs benefit analysis for each alternative 11. Identify the best option that meets the customer's requirements with most economical implementation and O&M costs 12. Define communication architecture, protocols, and cyber security requirements 13. Identify step -loading requirements for black start 14. Define load -shedding plan 15. Define microgrid controller functional requirements 16. Develop high-level technical specifications for major material Z Proprietary CLP �, Engineering City of Aspen Microgrid Planning Project — Budgetary Proposal 17. Develop high-level scope of work for design, procurement, construction, and commissioning of the proposed microgrid 16. Develop budgetary estimates for the entire microgrid implementation including design, procurement, construction, and commissioning 19. Establish ownership, operations, and maintenance model CLPE's scope of work includes: 1. Kickoff meeting, data gathering, and review of customer requirements 2. Follow and complete the microgrid planning checklist listed above 3. Draft final report summarizing reference data, analysis, drawings, outcome, scope, estimates, and recommended next steps 4. Schedule and conduct frequent review meetings and collaborate with the City of Aspen technical 4. Assumptions and Clarifications 1. The microgrid will need to consider combination of renewable energy resources, storage, and conventional generations. 2. CLPE assumes this project will include one all -day field visit for investigating generation and storage locations for feasibility analysis. Kickoff meeting and review meetings will be held virtually. 5. Price Estimate Below are budgetary estimates to support this microgrid planning project: 104 Task Description Price ($) Variation 1 Project Kickoff and Review Meetings $ 7,560.00 ± 15% 2 Microgrid Planning Checklist $ 48,290800 ± 15% 3 Final Report and Documentation $ 5/470600 ± 15% Total $ 61,320.00 ± 15% 6. Schedule The following table outlines ahigh-level indicative timeline to complete the project. Months Task /Item 1 2 3 4 5 6 Project Kickoff and Data Gathering Microgrid Planning Checklist Final Report and Documentation 3 Proprietary CLP Engineering City of Aspen Microgrid Planning Project — Budgetary Proposal 7. Contact Information Please contact the following for additional information or clarcation of our proposal. Name and Titlo Ajay Sitaula, VP of Engineering _J'' Dalton Shaffer, Director of Engineering j 4 Proprietary Phone and Email 303.495.0651; aps@clpinc.com 720.576.0306; dhs@clpinc.com CLP �, Engineering