HomeMy WebLinkAboutResolution 2020-102 N.C.S. 06/15/2020 DocuSign Envelope ID:88FF9CD4-9024-4CEA-BF55-CB8584147776
Resolution No. 2020-102 N.C.S.
of the City of Petaluma, California
RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE ALL
DOCUMENTS TO ENTER INTO POWER PURCHASE AGREEMENTS WITH
FOREFRONT POWER AND MAKING FINDINGS ON ENERGY SAVINGS
AND DETERMINING OTHER MATTERS IN CONNECTION WITH
POWER PURCHASE AGREEMENTS
WHEREAS, it is the policy of the State of California and the intent of the State
Legislature to promote all feasible means of energy conservation and all feasible uses of
alternative energy supply sources; and
WHEREAS,the City of Petaluma desires to reduce the steadily rising costs of meeting
the energy needs at its facilities; and
WHEREAS,the City proposes to enter into power purchase agreements ("Power
Purchase Agreements") and related contract documents with ForeFront Power("ForeFront") for
facilities at the City's real property sites, pursuant to which Power Purchase Agreements
ForeFront will design, construct, and install on City property solar photovoltaic and energy
storage facilities and arrange with the local utility for interconnection of the facilities, which will
generate and store energy for the sites on which such facilities are located;
WHEREAS,ForeFront has provided the City with analysis showing the financial and
other benefits of entering into the Power Purchase Agreements, which analysis is attached hereto
as Exhibit A and made part hereof by this reference; and
WHEREAS,Attachment 2 includes data showing that the anticipated cost to the City for
the electrical energy provided by the solar photovoltaic and energy storage facilities will be less
than the anticipated cost to the City of electrical energy that would have been consumed by the
City in the absence of such measures; and
WHEREAS,ForeFront was the selected vendor for School Project for Utility Rate
Reduction's ("SPURR") Renewable Energy Aggregated Procurement("REAP") Program, a
competitive statewide solar and energy storage request for proposals ("RFP")process, and the
City adopts the REAP Program's competitive process as its own; and
WHEREAS,the City proposes to enter into the Power Purchase Agreements and related
contract documents, each in substantially the form presented at this meeting, subject to such
changes, insertions or omissions as the City Manager reasonably deems necessary following the
Council's adoption of this Resolution; and
WHEREAS,pursuant to Government Code section 4217.12, this Council held a public
hearing, public notice of which was given two weeks in advance, to receive public comment; and
WHEREAS,the Power Purchase Agreements are in the best interests of the City; and
WHEREAS,the City's proposed approval of the Power Purchase Agreements is a
"Project" for purposes of the California Environmental Quality Act("CEQA"); and
Resolution No. 2020-102 N.C.S. Page 1
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WHEREAS,the Guidelines for CEQA, California Code of Regulations Title 14, Chapter
13 ("State CEQA Guidelines"), exempt certain projects from further CEQA evaluation,
including the following: (1)projects involving existing facilities (Class 1 Exemption"; Cal Code
Regs., tit. 14, § 15301); and(2)projects consisting of the new construction or conversion of
small structures ("Class 3 Exemption"; Cal. Code Regs., tit. 14, § 15303); (3)projects consisting
of the construction or placement of minor accessory structures to existing facilities ("Class 11
Exemption"; Cal. Code Regs., tit. 14, § 15311); and(4)projects consisting of minor additions to
existing schools ("Class 14 Exemption"; Cal. Code Regs., tit. 14, § 15314), and the Project is
categorically exempt under one or more of such exemptions; and
WHEREAS,the Project does not involve any of the following and so is eligible for a
categorical exemption as described above under State CEQA Guidelines section 15300.2:
(a) the cumulative impact of successive projects of the same type in the same place,
which over time are significant;
(b) an activity where there is a reasonable possibility that the activity will have a
significant effect on the environment due to unusual circumstances;
(c) a project which may result in damage to scenic resources, including but not
limited to, trees, historic buildings, rock outcroppings, or similar resources, within a
highway officially designated as a state scenic highway;
(d) a hazardous waste site which is included on any list compiled pursuant to Section
65962.5 of the Government Code; and
(e) a project which may cause a substantial adverse change in the significance of a
historical resource; and
WHEREAS, Public Resources Code, section 21080.35 (added by Stats.2011, c. 469
(S.B.226), § 3), statutorily exempts from CEQA evaluation the installation of a solar energy
system, including associated equipment, on the roof of an existing building or at an existing
parking lot; and
NOW, THEREFORE, based upon the above-referenced recitals, the Council hereby
finds, determines and orders as follows:
1. The terms of the Power Purchase Agreements and related agreements are in the
best interests of the City.
2. In accordance with Government Code section 4217.12, and based on data
provided by Attachment 2, the Council finds that the anticipated cost to the City for electrical
energy provided by the Power Purchase Agreements will be less than the anticipated cost to the
City of electrical energy that would have been consumed by the City in the absence of the Power
Purchase Agreements.
3. The Council hereby approves the Power Purchase Agreements in accordance with
Government Code section 4217.12.
4. The City Manager is hereby authorized and directed to negotiate any further
changes, insertions and omissions to the Power Purchase Agreements as she reasonably deems
necessary, and thereafter to execute and deliver the Power Purchase Agreements following the
Resolution No.2020-102 N.C.S. Page 2
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Council's adoption of this Resolution. The City Manager is further authorized and directed to
execute and deliver any and all papers, instruments, opinions, certificates, affidavits and other
documents and to do or cause to be done any and all other acts and things necessary or proper for
carrying out this resolution and said agreements.
5. The Project hereby found to be exempt from the requirements of CEQA pursuant
to the Class 3, Class 11 and Class 14 Exemptions, as described above.
6. The Project is hereby found to be exempt from the requirements of CEQA
pursuant to Public Resources Code, section 21080.35 (added by Stats.2011, c. 469 (S.B.226), §
3), as described above.
7. City staff are hereby authorized to file and process a Notice of CEQA Exemption
for the Project in accordance with CEQA and the State CEQA Guidelines, and the findings set
forth in this resolution.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petaluma at a Regular meeting on the 15'1i day of June 202 Docusigned by: form:
by the following vote: al�,
v
5EF
ity Attorney
AYES: Mayor Barrett;Vice Mayor Fischer;Healy;Kearney;King;McDonnell;Miller
NOES: None
ABSENT: None
ABSTAIN: None E
cusigned by:
Docusigned by:
w�-M V't,Sa (°jaYVt.{}ATTEST: �'" 4102E6B48F42E...
1> sz... Mayor
Resolution No. 2020-102 N.C.S. Page 3
DocuSign Envelope ID:88FF9CD4-9024-4CEA-BF55-CB8584147776
ATTACHMENT 2
Project Cashflows: City of Petaluma - Power Purchase Agreement
Rate Scenario TOU 2.0 Financial Assumptions
Solutions Solar Only Parameter Value
Project Total PPA Rate Escalator(%/yr) 0.0%
Year 1 Savings $53,576 Utility Energy Escalator(%/yr) 2.7%
Cumulative Savings $2,857,693 Utility Demand Escalator(%/yr) 5.0%
Payback Period Immediate PPATerm(Years) 20
Solar System Size(KW) 629 Discount Rate(%) 5.0%
Storage System Size(KW) 0 Solar Degradation Rate(%) 0.50%
Year Historic Utility BRI(without Solar PPA Payment New Utility Bill(with solar) Total Electricity Costs(PPA Utility) Net Savings Cumulative Savings
1 292,465 160,506 78,383 238,889 53,576 53,576
2 301,889 159,704 80,911 240,615 61,275 114,850
3 311,644 158,905 83,528 242,433 69,211 184,062
4 321,743 158,111 86,237 244,347 77,396 261,457
5 332,198 157,320 89,041 246,362 85,837 347,294
6 343,025 156,534 91,946 248,479 94,545 441,839
7 354,236 155,751 94,953 250,704 103,532 545,371
8 365,847 154,972 98,069 253,041 112,807 658,177
9 377,875 154,197 101,296 255,493 122,382 780,559
10 390,334 153,426 104,639 258,065 132,270 912,829
11 403,243 152,659 108,102 260,762 142,482 1,055,311
12 416,619 151,896 111,691 263,587 153,032 1,208,343
13 430,481 151,136 115,411 266,547 163,933 1,372,276
14 444,847 150,381 119,266 269,647 175,200 1,547,476
15 459,739 149,629 123,262 272,891 186,848 1,734,324
16 475,176 148,881 127,405 276,286 198,890 1,933,214
17 491,182 148,136 131,701 279,837 211,345 2,144,559
18 507,778 147,396 136,155 283,551 224,228 2,368,787
19 524,990 146,659 140,774 287,433 237,557 2,606,344
20 542,841 145,925 145,566 291,491 251,350 2,857,693
Totat 0:8,153 $2,168,336 $5,230,460
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ATTACHMENT 2
Petaluma PricingSavings&
PPA Solar Y1 Production % Energy Pre-Solar Year 1 Year 1 20 Year
Site PPA Rate System Savings
j Escalator Size (kWh) Offset Utility Bill Savings N Savings
Airport MI $0.1660-ft 0% 144 lip 229,973 I' 850/d4Nk74,465M& $20,647 28% $870,202
Community Center J1 $0.1517'L_0% 260'M� 404,848 81%)j f $127,50AW35,371 28% $1,524,201
Police Departmed=p $0.176400K% 1�0 175,233 Er78°/=L47,590'qN($1,080) -2% $243,965
Swim Center $0.173740 % ''IIII"1'09'V. 172,736 'j&080Mr$42,906 , ($1,362) -3% $219,325
Total $0.1633 W% 629 ,F 982,7901dr83°/=L $292,465 1[ $53,576 18% $2,857,693
�. ATatl - PPA Cumulative Savings
$3,500,000 _
$2,857,693
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$53,576
$500,000
0 •
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Assumes 2.7%Annual Utility Energy Escalator,5%Annual Demand Charge Escalator 11
ATTACHMENT 2
Petaluma PricingSavings&
Max Schedule 2 PPA Savings
PPA Solar Y1 % Energy Pre-Solar Year 1 Year 1 20 Year
Site PPA Rate Escalator System Production Offset Utility Bill Savings Savings (%) Savings
aSize (kWh)
Airport 46$0.2213 jk 0% 1=44 0% 229,973 85% $74,465 $7,925 11% _Ak $627,475
Community Center�j$0.1819 " 0% I� , 404,848 81% $127,504 $23,163 18°/ lb
1,291,303
Police Departmena,$0.2201 '[ 0% JNJIA�N&75,233 78% $47,590 ($8,742) _. $97,795
Swim Center NJ$0.2178 IbW0%,J`09 .V72,736 88% $42,906 ($8,981) -21° F' $73,983
Total §11-$0.2042 4r'0% 'JIW9 go 982,790 83% $292,465 $13,365 5%MI $2,090,556
Total - PPA Cumulative Savings
$2,500,000 �
Cumulative Savings $2,090 556
$2,000,000 -
$1,500,000 -
$1,000,000
$500,000
$13,365
$0
3 4 5 6 7 81 16 17 18 19 20
Assumes 2.7%Annual Utility Energy Escalator,5%Annual Demand Charge Escalator 12
DocuSign Envelope ID:88FF9CD4-9024-4CEA-BF55-CB8584147776
Exhibit A
of General Terms and Conditions
[N/A]
Exhibit B
of General Terms and Conditions
Certain Agreements for the Benefit of the Financing Parties
Purchaser acknowledges that Provider will be receiving financing accommodations from one or more Financing
Parties and that Provider may sell or assign the System or this Agreement and/or may secure Provider's obligations
by, among other collateral, a pledge or collateral assignment of this Agreement and a first security interest in the
System. In order to facilitate such necessary sale,conveyance,or financing,and with respect to any such Financing
Party,Purchaser agrees as follows:
(a) Consent to Collateral Assignment. Purchaser consents to either the assignment,sale or conveyance to a
Financing Party or the collateral assignment by Provider to a Financing Party,of Provider's right,title and interest in
and to this Agreement.
(b) Notices of Default. Purchaser will deliver to the Financing Party,concurrently with delivery thereof to
Provider, a copy of each notice of default given by Purchaser under this Agreement, inclusive of a reasonable
description of Provider default. No such notice will be effective absent delivery to the Financing Party. Purchaser
will not mutually agree with Provider to cancel, modify or terminate this Agreement without the written consent of
the Financing Party,however,this provision shall not be interpreted to limit any termination rights of either Party as
set forth in the Agreement.
(c) Rights Upon Event of Default. Notwithstanding any contrary term of this Agreement:
i. The Financing Party shall be entitled to exercise, in the place and stead of Provider, any and all rights
and remedies of Provider under this Agreement in accordance with the terms of this Agreement and only in the event
of Provider's or Purchaser's default. The Financing Party shall also be entitled to exercise all rights and remedies of
secured parties generally with respect to this Agreement and the System.
ii. The Financing Party shall have the right,but not the obligation,to pay all sums due under this Agreement
and to perform any other act,duty or obligation required of Provider thereunder or cause to be cured any default of
Provider thereunder in the time and manner provided by the terms of this Agreement. Nothing herein requires the
Financing Party to cure any default of Provider under this Agreement or(unless the Financing Party has succeeded to
Provider's interests under this Agreement)to perform any act, duty or obligation of Provider under this Agreement,
but Purchaser hereby gives it the option to do so.
iii. Upon the exercise of remedies under its security interest in the System,including any sale thereof by the
Financing Party, whether by judicial proceeding or under any power of sale contained therein, or any conveyance
from Provider to the Financing Party(or any assignee of the Financing Party)in lieu thereof,the Financing Party shall
give notice to Purchaser of the transferee or assignee of this Agreement. Any such exercise of remedies shall not
constitute a default under this Agreement.
iv. Upon any default not reasonably susceptible to cure by a Finance Party, including, without limitation,
rejection or other termination of this Agreement pursuant to any process undertaken with respect to Provider under
the United States Bankruptcy Code,at the request of the Financing Party made within ninety(90)days of such default,
Purchaser shall enter into a new agreement with the Financing Party or its designee having the same terms and
conditions as this Agreement.
(d) Right to Cure.
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DocuSign Envelope ID:88FF9CD4-9024-4CEA-BF55-CB8584147776
i. Purchaser will not exercise any right to terminate or suspend this Agreement unless it shall have given
the Financing Party prior written notice by sending notice to the Financing Party(at the address provided by Provider)
of its intent to terminate or suspend this Agreement, specifying the condition giving rise to such right, and the
Financing Party shall not have caused to be cured the condition giving rise to the right of termination or suspension
within thirty(30)days after such notice or(if longer)the periods provided for in this Agreement. The Parties agree
that the cure rights described herein are in addition to and apply and commence following the expiration of any notice
and cure period applicable to Provider The Parties respective obligations will otherwise remain in effect during any
cure period;provided,if such Provider default reasonably cannot be cured by the Financing Party within such period
and the Financing Party commences and continuously pursues cure of such default within such period, such period
for cure will be extended for a reasonable period of time under the circumstances,such period not to exceed additional
ninety(90)days.
ii. If the Financing Party(including any purchaser or transferee),pursuant to an exercise of remedies by the
Financing Party, shall acquire title to or control of Provider's assets and shall, within the time periods described in
Sub-section (c)(i). above, cure all defaults under this Agreement existing as of the date of such change in title or
control in the manner required by this Agreement and which are capable of cure by a third person or entity,then such
person or entity shall no longer be in default under this Agreement, and this Agreement shall continue in full force
and effect.
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