Morongo Band of Mission Indians Request for Proposal …s/Electric Utility Ownership... · ·...

MORONGO BAND OF MISSION INDIANS – REQUEST FOR PROPOSAL

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Morongo Band of Mission Indians Request for Proposal (RFP)

Title: Electric Utility Ownership Feasibility Study

I. Introduction and Purpose

The Morongo Band of Mission Indians (MBMI) is soliciting proposals from qualified and responsive firms to provide professional and technical consulting services to assist staff with economic and technical analyses to evaluate the potential benefits and costs of installing and generating power for the use by MBMI to serve the Government, the businesses and tribal members on the Morongo reservation.

These analyses will be used in the first instance to inform the Morongo Band of Mission Indians Tribal Council as to the relative benefits and costs of forming and operating a Self-sufficient power generation facility to serve MBMI, compared to continuing to receive electric service from Southern California Edison (SCE).

II. Background and Project Description

The MBMI reservation is in the Banning Pass area in Riverside County, California; between the San Gorgonio and San Jacinto Mountain ranges. MBMI is the owner/operator of the Morongo Casino Resort & Spa, Morongo Travel Center, Hadley’s Fruit Orchard, Tukwet Golf Course, Taco Bell and we lease land to several franchises, we have approximately 500+ Residents and several Civic Buildings. Tribal members and tribal businesses currently receive electric service from SCE, an investor-owned utility regulated by the California Public Utilities Commission.

The Reservation consists of approximately 35,000 acres, however the majority of development is planned on the parcels that traverse the Interstate 10 Freeway, a major east/west corridor in Southern California. These parcels consist of approximately 3,600 acres.

MBMI has adopted a tribal ordinance for the purpose of promoting the creation of a tribally owned utility to provide electric service to MBMI tribal members, enterprises, and future development. As a result of these efforts, the council decided to conduct a study to evaluate whether creation of a Utility to provide electric service in place of SCE would be of benefit to the tribal members and enterprises of MBMI. Doing so would involve acquiring and operating as a utility the electric utility properties located on MBMI that are currently owned and operated by SCE. As well, look at opportunities for alternative energy, such as wind and solar, or other forms of energy.

In addition to determining the operational and financial benefits and costs of forming a tribal utility to serve MBMI as compared to continued service from SCE, the Tribe is also interested in understanding the process to be followed to form such a tribal utility and would like to understand if establishing such a utility would open up synergies that are not currently available,

All RFPs are due not later than 3:00 pm on Friday, December 15, 2017-----------------------January 5, 2018


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particularly in the areas of increasing local control over energy sources serving MBMI, the ability to diversify energy sources, fostering economic development, decreasing greenhouse gas emissions, and increasing system reliability and power quality.

Finally, while the focus of this RFP is an analysis of the feasibility of establishing a tribally owned utility, reviewing and researching alternative energy, the Tribe is also interested in gaining knowledge and a better understanding of the benefits and costs associated with other forms of utilities, such as a public utility district or cooperatives.

III. Scope of Work - The following is the scope of work to be completed by the consultant.

Engineering/Facilities/Network

Task 1. Prepare a boundary map of the proposed service area. This map should also delineate the transmission, substation and distribution system facilities on the reservation necessary to provide such service, and the point at which the MBMI utility would interconnect with the transmission grid.

The map should also reflect proximity to transmission lines.

Task 2. Using historic, econometric and other data as appropriate, prepare projections of potential electrical load and numbers of customers to be served (by category—tribal member residence, commercial, industrial, casino) by the MBMI electric utility over a 20-year horizon. The projections of potential loads should include energy and capacity loads, as well as daily, monthly and annual load figures. Such projections should take into account distributed generation, energy efficiency and demand response efforts, as well as programs currently available such as the Western Area Power Administration (“WAPA”) activities (see Task 6).

Task 3. Determine which facilities would likely need to be acquired and/or constructed as part of the establishment of a tribally owned utility (e.g., transmission, sub-transmission, on-site generation, substation facilities, operations center, warehousing and equipment yard). Address the potential advantages and disadvantages of tribal ownership of distribution facilities, and any transmission facilities and/or substations needed to provide service on the reservation.

The Morongo Casino Resort and Spa is currently powered by a gas fired co-generation plant capable of producing 8 Mega Watts of Power and is not using electric transmission from SCE, however with future expansion development plans in progress the co-generation plant may need to be expanded or eliminated.

Task 4. If applicable, identify potential severance issues, both physical and financial, at the boundaries of the acquisition area to be served by the Tribal utility.

Task 5. If applicable, provide a general assessment of the existing distribution facilities (and any necessary transmission and substations) including age, condition, and state of technology (e.g., metering, power quality enhancements) located on the MBMI reservation and necessary to provide electric service with SCE.


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Task 6. MBMI has the opportunity and will receive certain allocations of power through the Western Area Power Administration, see attached Schedule D Adjusted Allocation, describe any energy efficiency programs currently available to and any expectations from WAPA for such a utility as a requirements customer of WAPA, and any demand response and distributed generation programs or other assistance that is likely to become available in the future.

Estimate over a 20-year horizon the energy efficiency, distributed generation and demand response resources that are likely to be achieved by such utility, compared to the energy efficiency, distributed generation and demand response resources likely to be achieved on MBMI reservation under SCE during a comparable period.

Operations/Finance/Economic Analysis

Task 7. Identify and recommend options and costs for a Tribal utility to develop and/or contract for business systems to handle customer service, billings, collections, and systems that may be needed to perform operation and maintenance, such as crew dispatch and SCADA.

Task 8. Provide a reliable estimate of book value of the facilities that would likely need to be acquired by the utility to provide electric service to the Tribal utility, and an enumeration of the financial and operational risks that the Tribe may confront over a 20-year horizon.

Task 9. Provide an economic evaluation of tribal ownership and operation, including assumptions or derivations as to the potential acquisition costs, severance costs, operating and maintenance costs, annual capital investments, power supply sources, start-up and other non-recurring costs, possible tax and franchise revenues other key variables.

Task 10. Provide the expected annual revenue requirement for rates the first 20 years of operation needed to fund and operate a tribal electric utility, including identification of all major cost elements. Provide the expected annual revenue requirement with the same level of detail for rates for a comparable period for electric service to MBMI by SCE. Including costs of any decommissioning and remediation of any generation, if applicable. Using the foregoing 20-year annual revenue requirement for the tribal electric utility and SCE’s forecast retail rates for the same period, provide a comparison of forecast retail rates for the Tribal utility and SCE for a 20-year period.

Task 11. Identify and recommend options for potential financing mechanisms, including an evaluation of their relative advantages and disadvantages.

Task 12. Provide a comparison of the retail rates for municipalities with electric utilities, such as the cities of Banning, Moreno Valley and Riverside, with the retail rates charged by publicly-owned utilities in nearby communities. Describe the types of governance approaches used by cities with municipal electric utilities and their advantages and disadvantages, such as those employed by the cities of Riverside, California, and Banning, California.


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Task 13. Identify the known or potential operational risks or concerns that should be considered by the MBMI (such as response to major outages following a windstorm).

Other Considerations

Task 14. Provide a list of potential socially responsible initiatives that MBMI may consider as part of creating a Tribal power entity, e.g. low interest loans, supplementing power to certain lower income homes, senior programs, etc.

Task 15. If Task 12 demonstrates that a tribal utility would likely provide service to MBMI reservation at retail rates lower than those of SCE for comparable service, present on whether such rate differential or “dividend” could be used by the tribal utility to pursue investment in or development of renewable resources, undergrounding and/or enhanced reliability.

Task 16. Evaluate alternatives to MBMI owned utility, for example MBMI installs and owns its own generation and energy efficient equipment (effectively supplying all of the energy needed for MBMI) but SCE still has ownership of the distribution system.

Task 17. Investigate the history and possible reference cases of municipalities or other tribal entities forming their own electric utility and exiting the investor-owned utility system.

Legal/Process/Policy

Task 18. Identify the steps and costs required, along with a projected timeline, for MBMI to form a tribal utility and acquire the electric distribution facilities currently operated by SCE, including all necessary approvals and/or permitting requirements.

Task 19. In cooperation with staff, prepare and present findings of the foregoing analyses to Council, and Tribal Member Comment meetings (3).

Task 20. Provide in matrix format a comparison of the different forms of utilities, such as municipal, public utility district and cooperative, how they are similar to and/or differ, the relative advantages and disadvantages of each, and the steps required for their formation and their relative availability to provide electric service to MBMI reservation.

IV. Desired Consultant Qualifications

1. Qualified to obtain, analyze and interpret key energy data pertinent to MBMI.2. Qualified to make recommendations for preferred alternatives related to municipal utility

formation options.3. Qualified to evaluate and value electric distribution facilities.4. Qualified to perform economic feasibility analysis related to preferred municipal and

supply options.5. Have thorough knowledge of regional wholesale power suppliers, transmission

availability and alternative energy policies.


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6. Minimum of ten (10) years of experience in the field of power utility, sub-station,distribution and/or transmission and engineering.

7. Understanding of Power Purchase Agreements and transmission of power.8. Provide verifiable experience as liaison with at least one (1) of each of the following:

Engineers, investors and utility partners.

The consultant shall supply appropriate references for all qualifications cited above and current professional resumes of all key individuals proposed to provide services to MBMI.

V. Proposal Requirements and Submittal Process

Clarifications, Exceptions or Deviations: All bidders shall describe any exception or deviation from the requirements of the RFP. Each clarification, exception or deviation must be clearly identified. If your company has no clarifications, exceptions or deviations a statement to that effect shall be included in this section.

The following contractual terms are non-negotiable:

1. Indemnification2. All Insurance Requirements Prior to the Start of the Agreement3. Termination4. Ownership/Use of Contract Materials and Products5. Disputes6. Governing Law7. Confidentiality8. Subcontractors9. Reporting Requirements10. Evidence of Insurability/Business License

All bidders shall submit evidence of all required insurance. The bidder awarded the contract will have ten (10) days to produce the required insurances, including a certified endorsement naming MBMI as additionally insured.

Do not purchase additional insurance until this bid has been awarded.

Provide a copy of current business license or other applicable licenses.

Cost Proposal: Cost proposal must fully describe all costs and charges to MBMI as a part of the service/project. Bidders must provide fully inclusive blended rates which are inclusive of all the bidder’s project-related or supported expenses. Bidders may also include additional documents to further display the proposed costs.

Hourly rate must be an all-inclusive rate to include administration, travel, training and operating costs.

MBMI reserves the right to negotiate final fees with the selected Contractor/Consultant.

MBMI Contact Information: For questions and clarification regarding the RFP please contact Karen Woodard, Realty Administrator at (951) 849-4697.


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Schedule of Events:

Issue of the RFP November 8, 2017

Question/Clarification Period November 9 through November 20, 2017

On Site Meeting November 15, 2017, 10:00 am

Morongo Administration Building, Planning Conference Room

RFPs Due November 30, 2017 not later than 3:00 pm

Bid Award To Be Determined

Submission Deadline and Submittal Location: All RFPs are due not later than 3:00 pm on Thursday, November 30, 2017 and should be emailed to: [email protected] or a hard copy can be delivered or mailed to the Morongo Administration Building:

Morongo Band of Mission Indians Attention: Karen Woodard 12700 Pumarra Road Banning, CA 92220

Attachments:

Exhibit A: Morongo Reservation Boundary Map

Exhibit B: Morongo Utility Map

Exhibit C: WAPA Schedule D, Adjusted Allocation – Capacity & Energy, 01-25-17

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All RFPs are due not later than 3:00 pm on Friday, December 15, 2017

________________

All RFPs are due not later than 3:00 pm on Friday, December 15, 2017-------------------------January 5, 2018

January 5, 2018------------------------

Exhibit "A"

▀Ó

Cabazon

ArrowheadBottling Facility

2.65 Miles

0.53 M

iles

0.60 M

iles

CARMEN AVEMAGN

OLIA

STBONITA AVE

Morongo Casino

0 0.5 1 1.5 2Miles

0 1,000 2,000 3,000 4,000 5,000Feet

±Created by the Morongo Band of Mission Indians

Realty Department | S. Perez - 2017Disclaimer: Maps and data are to be used for reference purposes only. Map features are approximate, and are not

necessarily accurate to surveying or engineering standards. The Morongo Band of Mission Indians makes no warranty orguarantee as to the content (the source is often third party), accuracy, timeliness, or completeness of any of the dataprovided, and assumes no legal responsibility for the information contained on this map. Any use of this product with

respect to accuracy and precision shall be the sole responsibility of the user.Sources: ESRI, SCE, BIA

Substation28 Mva 115/4 Kv

33Kv Townhall/12Kv Purchase OH

115Kv OH (00061)

33Kv Townhall/12Kv Purchase UG

Natural Gas

Exhibit "B"

"

Cogenerator

Sempra 5000

Sempra 2000

Sempra 2001

115Kv OH (01911) 220Kv OH (00514)220Kv OH (01108)

220Kv OH (00526)220Kv OH (01135)

Morongo Indian Reservation

(33/12 = Townhall/Purchase)

220kV Power Transmission115kV Power Transmission33kV Townhall/12kV Purchase UG33kV Townhall/12kV Purchase OH

Schedule D Adjusted Allocation - Capacity & Energy 1-25-17

Previously Offered Reallocation (179 kW)

Revised from Previously Offered to

Adjusted Allocation Adjusted Allocation (21kW of the 179kW)

Contingent Contingent Contingent Firm Energy (kWh)Contractor Capacity (kW) Summer Winter Total Capacity (kW) Capacity (kW) Summer Winter Total

Agua Caliente Band of Cahuilla Indians 1,452 2,217,846 952,668 3,170,514 1 1453 2218465 952935 3171400Anza Electric Cooperative, Inc. 1,599 2,443,099 1,046,864 3,489,963 1 1600 2443781 1047157 3490938Augustine Band of Cahuilla Indians 480 733,160 314,926 1,048,086 0 480 733364 315014 1048378Bishop Paiute Tribe 381 581,630 249,837 831,467 0 381 581792 249907 831699Cabazon Band of Mission Indians 1,005 1,535,196 659,439 2,194,635 1 1006 1535625 659623 2195248California Department of Water Resources 3,007 4,591,812 1,972,399 6,564,211 -7 3000 4581625 1968021 6549646Chemehuevi Indian Tribe 1,400 2,138,254 918,480 3,056,734 0 1400 2138851 918737 3057588City of Cerritos, California 3,007 4,592,131 1,969,324 6,561,455 0 3007 4593414 1969874 6563288City of Chandler, AZ Municipal Utilities Department 677 1,034,689 444,447 1,479,136 1 678 1034977 444572 1479549City of Corona, California 2,995 4,573,922 1,959,920 6,533,842 0 2995 4575199 1960467 6535666City of Flagstaff, Arizona 201 307,652 132,150 439,802 1 202 307737 132187 439924City of Glendale, Arizona 427 652,038 280,080 932,118 0 427 652220 280159 932379City of Globe, Arizona 115 176,019 75,609 251,628 0 115 176069 75630 251699City of Henderson, Nevada 908 1,386,728 595,664 1,982,392 0 908 1387115 595830 1982945City of Las Vegas, Nevada 1,056 1,613,257 692,969 2,306,226 1 1057 1613708 693162 2306870City of North Las Vegas, Nevada 765 1,167,851 501,646 1,669,497 0 765 1168177 501786 1669963City of Payson, Arizona 119 182,142 78,239 260,381 0 119 182193 78260 260453City of Peoria, Arizona 692 1,057,648 454,309 1,511,957 1 693 1057943 454436 1512379City of Phoenix, Arizona 3,007 4,591,813 1,972,398 6,564,211 0 3007 4593095 1972950 6566045City of Rancho Cucamonga, CA Municipal Utility 3,007 4,592,133 1,969,311 6,561,444 0 3007 4593416 1969861 6563277City of Scottsdale, Arizona 2,371 3,621,410 1,555,564 5,176,974 1 2372 3622421 1555999 5178420City of Tempe, AZ Public Works Department 241 368,875 158,450 527,325 1 242 368978 158494 527472City of Tucson, Arizona Water Department 1,251 1,910,194 820,518 2,730,712 0 1251 1910727 820747 2731474City of Victorville, California 2,631 4,018,124 1,723,079 5,741,203 1 2632 4019246 1723561 5742807Clark County School District 3,007 4,591,812 1,972,398 6,564,210 0 3007 4593095 1972949 6566044Clark County Water Reclamation District 681 1,040,810 447,077 1,487,887 1 682 1041101 447202 1488303College of Southern Nevada 282 430,099 184,748 614,847 0 282 430219 184800 615019Fort McDowell Yavapai Nation 339 517,345 222,223 739,568 0 339 517489 222285 739774Gila River Indian Community 3,007 4,591,813 1,972,397 6,564,210 0 3007 4593095 1972949 6566044Graham County Electric Cooperative, Inc. 313 477,548 205,129 682,677 0 313 477682 205186 682868Hualapai Indian Tribe 382 583,160 250,495 833,655 0 382 583323 250565 833888Imperial Irrigation District 3,007 4,591,812 1,972,399 6,564,211 1 3008 4593095 1972950 6566045Kaibab Band of Paiute Indians 124 189,795 81,526 271,321 0 124 189848 81549 271397Las Vegas Paiute Tribe 689 1,053,055 452,337 1,505,392 1 690 1053349 452463 1505812Las Vegas Valley Water District 3,007 4,591,813 1,972,398 6,564,211 -7 3000 4581625 1968021 6549646Metropolitan Domestic Water Improvement District 0 0 0 0 0 0 0 0 0Mohave Electric Cooperative, Inc. 1,147 1,752,541 752,799 2,505,340 1 1148 1753030 753009 2506039Morongo Band of Mission Indians 1,100 1,680,603 721,898 2,402,501 1 1101 1681072 722100 2403172Navajo Tribal Utility Authority 3,007 4,591,812 1,972,399 6,564,211 1 3008 4593095 1972950 6566045Navopache Electric Cooperative, Inc. 890 1,359,176 583,830 1,943,006 0 890 1359556 583993 1943549Northern Arizona Irrigation District Power Pool 246 376,528 161,737 538,265 1 247 376633 161782 538415Pascua Yaqui Tribe 438 668,874 287,313 956,187 0 438 669061 287393 956454Pechanga Band of Luiseno Mission Indians 2,004 3,061,209 1,314,932 4,376,141 1 2005 3062063 1315300 4377363Salt River Pima-Maricopa Indian Community 3,007 4,591,813 1,972,398 6,564,211 1 3008 4593095 1972950 6566045San Diego County Water Authority 1,623 2,478,226 1,062,729 3,540,955 0 1623 2478918 1063026 3541944San Luis Rey River Indian Water Authority 3,007 4,591,812 1,972,399 6,564,211 -7 3000 4581625 1968021 6549646San Manuel Band of Mission Indians 2,560 3,909,163 1,679,169 5,588,332 0 2560 3910255 1679638 5589893State of Nevada Department of Administration 109 166,835 71,664 238,499 0 109 166882 71684 238566State of Nevada Department of Corrections 282 430,099 184,748 614,847 0 282 430219 184800 615019State of Nevada Department of Transportation 116 177,550 76,266 253,816 0 116 177599 76288 253887Sulphur Springs Valley Electric Cooperative, Inc. 2,737 4,180,080 1,795,540 5,975,620 1 2738 4181247 1796042 5977289Timbisha Shoshone Tribe 119 182,142 78,239 260,381 0 119 182193 78260 260453Tohono O'odham Nation 2,715 4,146,406 1,781,076 5,927,482 1 2716 4147564 1781574 5929138Tonto Apache Tribe 251 382,651 164,367 547,018 0 251 382758 164413 547171Torres Martinez Desert Cahuilla Indians 1,663 2,539,273 1,090,736 3,630,009 0 1663 2539982 1091041 3631023Trico Electric Cooperative, Inc. 3,007 4,591,812 1,972,399 6,564,211 0 3007 4593095 1972950 6566045Twenty-Nine Palms Band of Mission Indians 1,323 2,020,397 867,855 2,888,252 0 1323 2020962 868097 2889059University of Nevada, Las Vegas 306 466,835 200,527 667,362 0 306 466965 200583 667548Viejas Band of Kumeyaay Indians 1,391 2,124,478 912,563 3,037,041 0 1391 2125072 912818 3037890Total…………………………………………………………. 80,680 123,217,000 52,909,000 176,126,000 0 80,680 123,217,000 52,909,000 176,126,000

Firm Energy (kWh)

Exhibit "C"

Morongo Band of Mission Indians Request for Proposal …s/Electric Utility Ownership... · ·...

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