Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Tory A. Newman, Director of Public Works
Subject: Amendment No. 3 to the Agreement with Capstone Green Energy, LLC
RECOMMENDATION:
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Adopt a resolution authorizing Amendment No. 3 to the Agreement with Capstone Green Energy LLC, for the service, repair, and rebuild of the microturbines at the Youth Services Center (YSC), increasing the amount by $750,000, for a new not-to-exceed amount of $1,550,000 with no change to the term.
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BACKGROUND:
The Department of Public Works (Department) operates a microturbine cogeneration plant comprised of eight Capstone Turbine Corporation microturbine generating units at the Youth Services Center (YSC).
On June 25, 2019, this Board adopted Resolution No. 076783, which authorized an agreement with Cal Microturbine, Inc. for a not-to-exceed amount of $341,610 to service, repair, and rebuild the microturbines at YSC with a term of June 1, 2019 through May 31, 2024. Cal Microturbine, Inc. was the sole service provider on the West Coast to work on Capstone Turbine Corporation microturbines.
On November 1, 2022, this Board adopted Resolution No. 079279, which authorized Amendment No. 1 to the Agreement with Cal Microturbine, Inc. increasing the not-to-exceed amount by $458,390 to continue providing maintenance for the microturbines through the remainder of the Agreement.
On September 25, 2024, by authority of Resolution No. 079279 and approval from County Procurement, the Director of Public Works authorized Amendment No. 2 extending the term of the Agreement through May 31, 2029.
DISCUSSION:
On August 13, 2025, the Department received notice from Capstone Green Energy, LLC of their acquisition of Cal Microturbine, Inc. and its exclusive distribution territory as well as a rate increase for the maintenance of the YSC microturbines. The proposed amendment would memorialize this acquisition and the Depa...
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