Battery Energy Storage System (BESS) Feasibility Study Addendum No. 6

REQUEST FOR PROPOSAL

By

For

Battery Energy Storage System (BESS)

Feasibility Study

RFP Issued: January 6, 2026

Proposal Submission Deadline: February 24, 2026 at 10:00 A.M.

Costa Mesa Sanitary District

290 Paularino Avenue

Costa Mesa, CA 92626

INTRODUCTION

The Costa Mesa Sanitary District (hereinafter referred to as “District”) is soliciting qualified energy management consulting firms to perform a feasibility study to procure and install a Battery Energy Storage System (BESS) at District headquarters.

The goal of the feasibility study is to assess and determine if a BESS project is technically viable and economically sound at District headquarters.

DISTRICT HISTORY

The District is an independent special district, governed by an elected five-member Board of Directors, formed in 1944 under the Sanitary District Act of 1923. District boundaries encompass the City of Costa Mesa and small portions of Newport Beach and unincorporated Orange County, serving a population of approximately 118,000 and close to 4,000 businesses.

As a sanitary district, the District is responsible for residential solid waste (trash) collection and wastewater (sewer) collection throughout its service area. The District accomplishes these core responsibilities through a combination of public and private services, which include an in-house administrative and wastewater staff and privately contracted trash hauler, attorney, treasurer, and IT technicians.

PROJECT BACKGROUND

The District Headquarters, located at 290 Paularino Avenue in Costa Mesa, California, serves as the District’s primary administration building. It also functions as the District’s Emergency Operations Center (EOC), operating in accordance with the California Standardized Emergency Management System (SEMS) and the National Incident Management System (NIMS). The facility is equipped to accept a portable generator to provide backup power during an outage; however, the generator currently provides power only to the EOC.

In 2018, the District installed a 58.2 kW rooftop solar photovoltaic (PV) system consisting of 164 modules. The system generates approximately 75,000 kWh annually, with a maximum potential output of up to 84,000 kWh per year. The District is now seeking to procure and install a Battery Energy Storage System (BESS) to further reduce energy consumption and operating costs, while also providing an additional layer of backup power during outages. The proposed BESS would be capable of powering the entire Headquarters building for up to 72 hours before requiring a recharge.

The District headquarters building is approximately 11,650 square feet that sits on a 34, 848 square foot lot. In 2023, drought tolerant landscaping was installed on the south (Redhill Avenue) and west (Paularino Avenue) sides of the property. The property has approximately 38 parking spaces. Attached is an aerial photo of the property.

SCOPE OF SERVICE

Consultants are expected to act in accordance with and within the following scope of service:

1. Data Collection and Site Assessment

a. Energy Data: Gather historical consumption, demand profiles, and future load forecasts for the site.

b. Site Assessment: Evaluate potential locations, grid interconnection points, environmental factors, and site constraints.

2. Technical Feasibility

a. System Sizing: Determine optimal BESS capacity (kW/kWh) and PV integration (if applicable). The District would like to determine the battery system size to supply power during the shortest winter month. Consider a typical 24-hour operational period considering that the local utility power will not be available for that 24-hour window and the solar system will not generate power at night. The District also requires the ability to install a portable generator to provide power to the entire building should the local utility provider be out of service for more that 24-hours. Currently, a portable generator can only power the District’s Emergency Operations Center (EOC).

b. Technology Review: Evaluate battery chemistry, power conversion systems (PCS), energy management systems (EMS), and thermal management.

c. Interconnection Study: Assess utility requirements and grid impact.

d. Design Concepts: Develop preliminary system layouts and single-line diagrams. 

3. Economic & Financial Analysis

a. Cost Estimation: Provide capital and operational expenditure budgetary values for installation, O&M, and other annual costs.

b. Benefit Analysis: Quantify savings from rate tariffs, energy arbitrage, capacity payments, and incentives.

• Incentive Programs: Identify federal, state, and local incentives.

4. Deliverables

a. Feasibility Report: Comprehensive document detailing findings, risks, and recommendations. The District would like to have three alternatives provided via the feasibility report.

b. Conceptual Designs: High-level system architecture and site plans.

c. Financial Model Output: Summaries of financial viability under various scenarios.

d. Roadmap: Clear path for project development, including next steps for procurement and installation. 

INSTRUCTIONS TO CONSULTANTS

1. EXAMINATION OF PROPOSED DOCUMENTS

By submitting a proposal, the consultant represents that it has thoroughly examined and become familiar with the work required under this RFP, and that it is qualified to perform the work as requested in the Scope of Service.

2. DISTRICT RESPONSIBILITIES

A. The District will provide a walk-through and/or tour of the property. District staff will schedule a date and time for the walk-through.

B. The District will designate a representative authorized to act on its behalf.

3. ADDENDA/CLARIFICATION

Requests for clarification must be directed via email to the individual specified below and received no later than 2:00 P.M. on February 10, 2026. Answers to all questions will be provided no later than February 13, 2026.

Noelani Middenway, District Clerk/PIO Email: nmiddenway@cmsdca.gov

4. WITHDRAWAL OF PROPOSAL

Consultant may withdraw its proposal at any time prior to the proposal submittal deadline by delivering to District staff (Noelani Middenway) a written request for withdrawal signed by, or on behalf of, the consultant. Written requests for withdrawal must be emailed to Noelani Middenway, District Clerk/Public Information Officer, nmiddenway@cmsdca.gov.

5. RIGHTS OF THE DISTRICT

This RFP does not commit the District to enter into a legal binding agreement, nor does it obligate the District to pay for any costs incurred in preparation and submission of the proposal or in anticipation of an agreement. The District reserves the right to reject any or all proposals.

6. SELECTION AND SURVEY TIMELINE

DATE	TASK
January 6, 2026	RFP issuance
February 10, 2026	RFP questions due by 2:00 P.M.
February 13, 2026	RFP questions and answers distributed (no later than)
February 24, 2026	Proposals due by 10:00 A.M.
March 3, 2026	Proposal evaluation
April 6, 2026	Award Contract
June 9, 2026	Presentation of final report to Board of Directors
July 8, 2026	Presentation of final report to Citizens Advisory Committee

The District reserves the right to amend this timeline at any time. Proposers will be notified of any changes to this timeline.

RESPONDING TO THE RFP

For proposals to be considered, submissions must be clear, concise, complete, well organized, and demonstrate both the consultant’s qualifications and ability to follow instructions.

The proposal shall be organized in the format indicated below and shall be limited to twenty (20) pages (not including attachments and appendices).

1. Proposal Cover Sheet

Complete and submit the District’s Proposal Cover Sheet along with the required documents mentioned below.

2. Cover Letter

Include the RFP title and submission deadline, name of firm, and contact information (address, telephone, and email). Include designated contact person and corresponding email address. The letter must state that the proposal will be valid for a 60-day period and that staff are available to work immediately on this project. The person authorized by the firm to negotiate a contract with the District must sign the cover letter.

3. Executive Summary

Provide an overview of your firm including size, years in business, years performing energy management services, and your firm’s experience providing the services detailed in the previous sections of this RFP. Include a list of cities, counties, and/or independent special districts for which your firm has performed energy management services in the past eight years.

4. Organizational Structure and Project Team

Describe your firm’s organizational structure and include the names and professional qualifications of personnel who will be involved in completing the scope of services.

5. References & Experience

Provide references, including names and contact information, along with brief project summaries for similar cities, counties, and/or independent special districts for which the firm has executed projects like the one outlined in this RFP. Use this section to indicate your firm’s areas of expertise and how this expertise will benefit the District.

6. Project Overview

Provide a demonstrated understanding of the District’s needs and scope of the project and summarize the proposed approach and methodology your firm will use to complete the project.

7. Detailed Work Plan

Provide a full description of each step your firm will take to complete the project. The work plan description should have sufficient detail to show a clear understanding of the work and proposed approach.

This section should also include a description of the format, content, and level of detail that can be expected for each deliverable and a schedule showing important milestones.

Meetings between consultant and District staff can be performed virtually.

8. Cost Proposal

Provide a detailed not-to-exceed cost analysis to complete the scope of services, including basic fee structure and breakdown of any other charges and hourly compensation rates related to your firm’s proposal.

9. Distinguishing Characteristics

Please describe what distinguishes your firm from other research firms who conduct community surveys and how these distinctions will benefit the District.

SELECTION CRITERIA

Award shall be based on a “best value” evaluation. Criteria used for the evaluation will include:

1. Cost (25%)

2. Responsiveness to RFP (15%)

3. Qualifications and experience (20%)

4. References and previous performance (10%)

5. Ability to provide services (15%)

6. Timeliness for completing the services (15%)

INSURANCE REQUIREMENTS

All contracts with vendors, contractors and/or specialized professionals, shall be accompanied by proof of insurance that meets the following requirements:

(1). Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.

(2). Minimum Limits of Insurance. Applicants shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease.

(3) Insurance Endorsements. The insurance policies shall contain the following provisions, or Applicant shall provide endorsements on forms supplied or approved by the District to add the following provisions to the insurance policies:

(A) General Liability. The general liability policy shall be endorsed to state that: (1) the District, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insured with respect to the Work or operations performed by or on behalf of the Applicant, including materials, parts or equipment furnished in connection with such work; and (2) the insurance coverage shall be primary insurance as respects the District, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Applicant’s scheduled underlying coverage. Any insurance or self-insurance maintained by the District, its directors, officials, officers, employees, agents and volunteers shall be excess of the Applicant’s insurance and shall not be called upon to contribute with it in any way.

(B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) the District, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Applicant or for which the Applicant is responsible; and (2) the insurance coverage shall be primary insurance as respects the District, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Applicant’s scheduled underlying coverage. Any insurance or self-insurance maintained by the District, its directors, officials, officers, employees, agents and volunteers shall be excess of the Applicant’s insurance and shall not be called upon to contribute with it in any way.

(C) Workers’ Compensation and Employers Liability Coverage. The insurer shall agree to waive all rights of subrogation against the District, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Applicant.

(D) All Coverages. Each insurance policy required shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the District; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the District, its directors, officials, officers, employees, agents and volunteers.

(4) Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A- or better, licensed to do business in California, and satisfactory to the District.

DISTRICT AGREEMENT

Exhibit A is a sample District Agreement that the awarding firm will be required to sign. The sample Agreement is subject to change.

BUSINESS LICENSE

Prior to being awarded the contract, the consultant must procure a valid business license from the City of Costa Mesa.

SUBMITTAL DEADLINE

Submit one electronic file (via email) of proposal to Costa Mesa Sanitary District no later than 10:00 A.M. on February 24, 2026. Proposals must be emailed to:

Noelani Middenway, District Clerk/PIO Email: nmiddenway@cmsdca.gov

Late responses will not be considered.

RFP ATTACHMENTS

Exhibit A – Proposal Cover Letter

Exhibit B – Sample Agreement

COSTA MESA SANITARY DISTRICT

PROPOSAL COVER SHEET

FIRM’S BID TO PROVIDE SERVICES

BATTERY ENERGY STORAGE SYSTEM (BESS) FEASIBILITY STUDY

In compliance with the Request for Proposal, the undersigned hereby agrees to furnish all labor, materials, and equipment to perform services in the proposed Scope of Services and Agreement, which are enclosed herewith; and to do so in strict accordance with the provisions of the proposed Agreement.

ENCLOSURES:

1. Request for Proposal, dated January 6, 2026

2. Exhibit B – Sample Agreement

3. Addenda:

The undersigned Firm declares that the only person or parties interested in this Proposal as principles are those named herein; that the Proposal is made without collusion with any other person, firm or corporation; that Firm has carefully examined the Scope of Service therein referred to; and Firm agrees is this proposal is accepted, that Firm will execute an Agreement with the Costa Mesa Sanitary District in the form annexed hereto to provide all necessary labor, machinery, tools, and to do all work and provide materials required as specified in the Request for Proposal and Agreement according to the requirements of the Costa Mesa Sanitary District as set forth; and that the Firm will take payment at the price described in the Agreement document, as payment in full for the performed scope of services.

The undersigned Firm certifies that Firm is aware of the requirements of the Immigration Reform and Control Act of 1986 (8 USC §§ 1101-1525) and has complied and will comply with these requirements, including but not limited to verifying the eligibility for employment of all agents, employees, subfirms, and firms that are included in this Agreement.

SIGNATURE OF FIRM

This document is signed by an individual clearly authorized to bind the firm.

FIRM:

PHONE/E-MAIL:

BY: ________________________________________________________________________________________

SIGNATURE DATE

____________________________________________________________________________________________

NAME TITLE

AGREEMENT FOR CONSULTANT SERVICES

Battery Energy Storage System (BESS)

Feasibility Study

This Agreement (“AGREEMENT”) is made and effective as of __________, 2026, between the Costa Mesa Sanitary District, a sanitary district (“DISTRICT”), and ___________________, a __________ (“CONSULTANT”). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

1. TERM

This AGREEMENT shall commence on __________, 2026, and shall remain and continue in effect until tasks described herein are completed, unless sooner terminated pursuant to the provisions of this AGREEMENT.

2. SERVICES

CONSULTANT shall perform a feasibility study to procure and install a Battery Energy Storage System (BESS) at DISTRICT headquarters. The SERVICES to be provided are more particularly described in the Request for Proposal dated January 6, 2026.

3. PERFORMANCE

CONSULTANT shall perform all SERVICES under this AGREEMENT in a skillful and competent manner, consistent with the standards generally recognized as being employed by consultants in the same discipline in the State of California and consistent with all applicable laws. CONSULTANT shall provide DISTRICT its work product in “turnkey” form. DISTRICT reserves the right to perform reasonable testing of CONSULTANT’s work product before accepting the same.

4. COMPENSATION

Compensation for the SERVICES shall not exceed _____________ ($______________) The written change order requirement cannot be waived. Failure to submit a written change order and receive written approval by the DISTRICT prior to performing extra work shall constitute a waiver of a claim for additional time or compensation.

Invoices shall be submitted to DISTRICT monthly as performance of the SERVICES progresses. DISTRICT shall review and pay the approved charges on such invoices in a timely manner. SERVICES shall begin immediately and be completed by ___________________, 2026 unless extended by DISTRICT in writing.

5. PREVAILING WAGES

CONSULTANT understands that this job, if over One Thousand Dollars ($1,000.00) in value and not exempt, requires compliance with the prevailing wage law. (Labor Code §§ 1720 et seq.) As such, DISTRICT will ascertain the prevailing wages to be paid on this job from the Director of Industrial Relations. Said amounts are listed at http://www.dir.ca.gov/dlsr/pwd/index.htm. CONSULTANT agrees to pay prevailing wages and maintain prevailing wage records regarding those payments. CONSULTANT is also required to comply with the apprentice requirements. CONSULTANT shall defend, indemnify, and hold the DISTRICT, its elected officials, officers, employees, and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws. CONSULTANT recognizes that state law makes eight (8) hours a day’s work, and any worker working in excess of that time must be paid overtime. (Labor Code § 1813.)

6. INSURANCE

CONSULTANT shall, at its expense, procure and maintain for the duration of this AGREEMENT insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of this AGREEMENT by the CONSULTANT, its agents, representatives, employees, or subcontractors. CONSULTANT shall also require all of its subcontractors to procure and maintain the same insurance for the duration of this AGREEMENT. If CONSULTANT is an employer or otherwise hires one (1) or more employees during the term of this PROJECT, CONSULTANT shall procure and maintain workers’ compensation coverage for such employees which meets all requirements of state law (Labor Code § 1861).

At a minimum, CONSULTANT is required to submit proof of insurance in accordance with the following standards:

Minimum Scope of Insurance: Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001): (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.

Minimum Limits of Insurance: CONSULTANT shall maintain limits of no less than:

(A) General Liability. One Million Dollars ($1,000,000.00) per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this AGREEMENT/location or the general aggregate limit shall be twice the required occurrence limit.

(B) Automobile Liability. One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.

(C) Workers’ Compensation and Employer’s Liability. Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of One Million Dollars ($1,000,000.00) per accident for bodily injury or disease.

Insurance Endorsements: The insurance policies shall contain the following provisions, and a separate endorsement stating to add the following provisions to the insurance policies shall be submitted and approved by DISTRICT:

(A) General Liability. The general liability policy shall be endorsed to state that: (1) DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the work or operations performed by or on behalf of the CONSULTANT, including materials, parts, or equipment furnished in connection with such work; and (2) the insurance coverage shall be primary insurance as respects DISTRICT, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the CONSULTANT’s scheduled underlying coverage. Any insurance or self-insurance maintained by DISTRICT, its directors, officials, officers, employees, agents, and volunteers shall be excess of the CONSULTANT’s insurance and shall not be called upon to contribute with it in any way.

(B) Workers’ Compensation and Employer’s Liability Coverage. The insurer shall agree to waive all rights of subrogation against DISTRICT, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the CONSULTANT.

(C) All Coverage. Each insurance policy required by this AGREEMENT shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced, or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to DISTRICT, and (B) any failure to comply with reporting or other provisions of the policies, including breaches or warranties, shall not affect coverage provided to DISTRICT, its directors, official, officers, employees, agents, and volunteers.

Acceptability of Insurers: Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A-:VIII, licensed to do business in California, and satisfactory to DISTRICT.

All insurance documents must be submitted and approved by the District’s Risk Manager prior to execution of any AGREEMENT with DISTRICT.

7. INDEMNIFICATION

(a) Indemnification for Professional Liability. When the law establishes a professional standard of care for CONSULTANT’s services, to the fullest extent permitted by law, CONSULTANT shall indemnify, protect, defend, and hold harmless DISTRICT and any and all of its officials, employees, and agents from and against any and all losses, liabilities, damages, costs, and expenses, including attorney’s fees and costs to the extent the same arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of CONSULTANT, its officers, agents, employees, or subconsultants (or any entity or individual that CONSULTANT shall bear the legal liability thereof) in the performance of professional services under this AGREEMENT.

(b) Indemnification for Other than Professional Liability. Other than in the performance of professional services and to the fullest extent permitted by law, CONSULTANT shall indemnify, defend, and hold harmless DISTRICT and any and all of its employees, officials, and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses, or costs of any kind, whether actual, alleged, or threatened, including attorney’s fees and costs, court costs, interest, defense costs, and expert witness fees) where the same arise out of, pertain to, relate to, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this AGREEMENT by CONSULTANT or by any individual or entity for which CONSULTANT is legally liable, including, but not limited to, officers, agents, employees, or subconsultants of CONSULTANT.

8. TERMINATION

DISTRICT may terminate this AGREEMENT at any time with or without cause. If DISTRICT terminates this AGREEMENT without cause before PROJECT completion, CONSULTANT shall be entitled to be paid for SERVICES adequately completed prior to the notification of termination. CONSULTANT may terminate this AGREEMENT for cause only.

9. MISCELLANEOUS

This AGREEMENT shall be interpreted according to the laws of the State of California and any action arising from this AGREEMENT shall be brought in the superior or federal district court with jurisdiction over DISTRICT.

This AGREEMENT and the attachments hereto shall contain the entire agreement between the parties. This AGREEMENT cannot be modified except in a writing signed by both parties. In the event of inconsistency between this AGREEMENT and any attachment hereto, this AGREEMENT shall control in all respects.

DISTRICT shall own all work product prepared in the course of providing the SERVICES under this AGREEMENT. In the event of termination of this AGREEMENT, CONSULTANT shall immediately turn all work product over to DISTRICT. If specialized software or computer hardware is required to view or transmit said work product, CONSULTANT shall make that software and hardware available to the DISTRICT at no cost during normal business hours.

This AGREEMENT cannot be assigned without the prior written consent of the DISTRICT.

CONSULTANT is and shall at all times remain as to DISTRICT an independent contractor. No employee benefits shall be available to CONSULTANT in connection with the performance of this AGREEMENT. Except for the fees paid to CONSULTANT as provided in this AGREEMENT, DISTRICT shall not pay salaries, wages, or other compensation to CONSULTANT for performing any services hereunder for DISTRICT. DISTRICT shall not be liable for compensation or indemnification to CONSULTANT for injury or sickness arising out of performing any services hereunder.

All information gained by CONSULTANT in the performance of this AGREEMENT shall be considered confidential and shall not be released by CONSULTANT without DISTRICT’s prior written authorization. CONSULTANT shall not, without written authorization from the General Manager or unless requested by the District Counsel, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this AGREEMENT. Response to a subpoena or court order shall not be considered “voluntary” provided CONSULTANT gives DISTRICT notice of such court order or subpoena.

CONSULTANT warrants that the individual who has signed this AGREEMENT has the legal power, right, and authority to make this AGREEMENT and bind the CONSULTANT hereto. If you agree with the terms of this AGREEMENT, indicate by signing and dating two original agreements where indicated below and return both to the undersigned. Once the documents are fully executed, one original will be returned to you for your records.

[Signatures on Next Page]

DISTRICT CONSULTANT

Approved by: Reviewed and Accepted by:

________________________________ ________________________________

General Manager Signature

________________________________

Approved as to Form: Name

________________________________ ________________________________

Harper & Burns LLP Title

District Counsel

________________________________

Date