HomeMy WebLinkAboutR-10933 making findings on energy savings and determining other matters in connection with energy service agreementsRESOLUTION NO. 10933 (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, MAKING FINDINGS ON ENERGY SAVINGS
AND DETERMINING OTHER MATTERS IN CONNECTION WITH
ENERGY SERVICE 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 San Luis Obispo ("City") desires to reduce energy costs 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 ForeFront will design, construct, and install 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;
and
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, Exhibit A 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 and City Attorney 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.
R 10933
Resolution No. 10933 (2018 Series)
that:
Page 2
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
SECTION 1. The terms of the Power Purchase Agreements and related agreements are in
the best interests of the City.
SECTION 2. In accordance with Government Code section 4217.12, and based on data
provided by Exhibit A, 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.
SECTION 3. The Council hereby approves the Power Purchase Agreements in accordance
with Government Code section 4217.12.
SECTION 4. The City Manager and City Attorney are hereby authorized and directed to
negotiate any further changes, insertions and omissions to the Power Purchase Agreements as they
reasonably deems necessary, and thereafter to execute and deliver the Power Purchase Agreements
following the 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.
SECTION 5. Environmental Review. The City Council hereby determines that the
execution of a power purchase agreement with Forefront Power are statutorily and categorically
exempt from environmental review on the basis that the projects are: installation of solar energy
systems on existing roofs or at existing parking lots (Public Resources Code § 21080.35; new
construction or conversion of small structures (CEQA Guidelines § 15303); minor alterations to
land (CEQA Guidelines § 15304); projects which consist of the construction or placement of minor
accessory structures to existing facilities (CEQA Guidelines § 15311); and activities which can be
seen with seen with certainty that there is no possibility that the activity in question may have a
significant effect on the environment (CEQA Guidelines § 15061(b)(3). .
R 10933
Resolution No. 10933 (2018 Series)
Page 3
SECTION 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.
Upon motion of Council Member Pease, seconded by Vice Mayor Christianson, and on the
following roll call vote:
AYES: Council Members Gomez, Pease and Rivoire,
Vice Mayor Christianson and Mayor Harmon
NOES: None
ABSENT: None
The foregoing resolution was adopted this 4 1 day of September 2018.
ATTEST:
M1
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
y. -Christine D.
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ���� day of , 2D l $
•w
Teresa Purrington
City Clerk
R 10933
Project Cashflows Financial Assumptions
Parameter Value
Project SLO City Res 1 Site Year 1 PPA Rate ($/kWh)$0.0950
Scenario No PG&E Upgrade Expenses PPA Rate Escalator (%/yr)0.0%
Year 1 Savings $19,971 Utility Rate Escalator (%/yr)3.0%
Cumulative Savings $1,414,690 Solar Degradation Rate (%)0.50%
Payback Period Immediate
Year Production (kWh)
Average Weighted
Bill Credit Value
($/kWh)
Bill Credits ($)PPA Rate Solar Payment ($)Total Savings for District ($)Cumulative
Savings
1 1,482,451 $0.1085 160,804 $0.0950 140,833 19,971 19,971
2 1,475,039 $0.1117 164,800 $0.0950 140,129 24,671 44,642
3 1,467,663 $0.1151 168,895 $0.0950 139,428 29,467 74,110
4 1,460,325 $0.1185 173,092 $0.0950 138,731 34,361 108,471
5 1,453,024 $0.1221 177,394 $0.0950 138,037 39,356 147,827
6 1,445,758 $0.1257 181,802 $0.0950 137,347 44,455 192,282
7 1,438,530 $0.1295 186,320 $0.0950 136,660 49,659 241,941
8 1,431,337 $0.1334 190,950 $0.0950 135,977 54,973 296,914
9 1,424,180 $0.1374 195,695 $0.0950 135,297 60,398 357,311
10 1,417,059 $0.1415 200,558 $0.0950 134,621 65,937 423,249
11 1,409,974 $0.1458 205,542 $0.0950 133,948 71,594 494,843
12 1,402,924 $0.1502 210,649 $0.0950 133,278 77,372 572,214
13 1,395,910 $0.1547 215,884 $0.0950 132,611 83,273 655,487
14 1,388,930 $0.1593 221,249 $0.0950 131,948 89,300 744,787
15 1,381,985 $0.1641 226,747 $0.0950 131,289 95,458 840,245
16 1,375,075 $0.1690 232,381 $0.0950 130,632 101,749 941,994
17 1,368,200 $0.1741 238,156 $0.0950 129,979 108,177 1,050,171
18 1,361,359 $0.1793 244,074 $0.0950 129,329 114,745 1,164,916
19 1,354,552 $0.1847 250,139 $0.0950 128,682 121,457 1,286,373
20 1,347,780 $0.1902 256,355 $0.0950 128,039 128,316 1,414,690
Total 28,282,056 $0.0000 $4,101,485 $0.0950 $2,686,795 $1,414,690 $1,414,690
44,455 65,937 128,316
0
50000
100000
150000
200000
250000
300000
Res 1 RES-BCT Site Annual Savings
Average Weighted Bill Credit Value ($/kWh)Solar Payment ($)Total Savings for District ($)
192,282
423,249
1,414,690
0
500,000
1,000,000
1,500,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Res 1 RES-BCT Site Cumulative Savings
Cumulative Savings
Resolution No. 10933 (2018 Series)
EXHIBIT A Page 4
R 10933
Project Cashflows Financial Assumptions
Parameter Value
Project SLO City Res 1 Site Year 1 PPA Rate ($/kWh)$0.1150
Scenario With PG&E Upgrade Expenses PPA Rate Escalator (%/yr)0.0%
Year 1 Savings -$9,678 Utility Rate Escalator (%/yr)3.0%
Cumulative Savings $849,049 Solar Degradation Rate (%)0.50%
Payback Period Immediate
Year Production (kWh)
Average Weighted
Bill Credit Value
($/kWh)
Bill Credits ($)PPA Rate Solar Payment ($)Total Savings for District ($)Cumulative
Savings
1 1,482,451 $0.1085 160,804 $0.1150 170,482 -9,678 -9,678
2 1,475,039 $0.1117 164,800 $0.1150 169,629 -4,830 -14,507
3 1,467,663 $0.1151 168,895 $0.1150 168,781 114 -14,394
4 1,460,325 $0.1185 173,092 $0.1150 167,937 5,155 -9,239
5 1,453,024 $0.1221 177,394 $0.1150 167,098 10,296 1,057
6 1,445,758 $0.1257 181,802 $0.1150 166,262 15,540 16,597
7 1,438,530 $0.1295 186,320 $0.1150 165,431 20,889 37,485
8 1,431,337 $0.1334 190,950 $0.1150 164,604 26,346 63,831
9 1,424,180 $0.1374 195,695 $0.1150 163,781 31,914 95,745
10 1,417,059 $0.1415 200,558 $0.1150 162,962 37,596 133,341
11 1,409,974 $0.1458 205,542 $0.1150 162,147 43,395 176,736
12 1,402,924 $0.1502 210,649 $0.1150 161,336 49,313 226,049
13 1,395,910 $0.1547 215,884 $0.1150 160,530 55,354 281,403
14 1,388,930 $0.1593 221,249 $0.1150 159,727 61,522 342,925
15 1,381,985 $0.1641 226,747 $0.1150 158,928 67,818 410,743
16 1,375,075 $0.1690 232,381 $0.1150 158,134 74,248 484,991
17 1,368,200 $0.1741 238,156 $0.1150 157,343 80,813 565,804
18 1,361,359 $0.1793 244,074 $0.1150 156,556 87,518 653,322
19 1,354,552 $0.1847 250,139 $0.1150 155,774 94,366 747,688
20 1,347,780 $0.1902 256,355 $0.1150 154,995 101,361 849,049
Total 28,282,056 $0.0000 $4,101,485 $0.1150 $3,252,436 $849,049 $849,049
15,540 37,596 101,361
-50000
0
50000
100000
150000
200000
250000
300000
Res 1 RES-BCT Site Annual Savings
Average Weighted Bill Credit Value ($/kWh)Solar Payment ($)Total Savings for District ($)
16,597
133,341
849,049
-200,000
0
200,000
400,000
600,000
800,000
1,000,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Res 1 RES-BCT Site Cumulative Savings
Cumulative Savings
Resolution No. 10933 (2018 Series)
EXHIBIT A Page 5
R 10933
Project Cashflows Financial Assumptions
Parameter Value
Project SLO City Res 1 Site Year 1 PPA Rate ($/kWh)$0.1050
Scenario $200K PG&E Upgrade Expenses PPA Rate Escalator (%/yr)0.0%
Year 1 Savings $5,147 Utility Rate Escalator (%/yr)3.0%
Cumulative Savings $1,131,869 Solar Degradation Rate (%)0.50%
Payback Period Immediate
Year Production (kWh)
Average Weighted
Bill Credit Value
($/kWh)
Bill Credits ($)PPA Rate Solar Payment ($)Total Savings for District ($)Cumulative
Savings
1 1,482,451 $0.1085 160,804 $0.1050 155,657 5,147 5,147
2 1,475,039 $0.1117 164,800 $0.1050 154,879 9,921 15,067
3 1,467,663 $0.1151 168,895 $0.1050 154,105 14,791 29,858
4 1,460,325 $0.1185 173,092 $0.1050 153,334 19,758 49,616
5 1,453,024 $0.1221 177,394 $0.1050 152,567 24,826 74,442
6 1,445,758 $0.1257 181,802 $0.1050 151,805 29,997 104,439
7 1,438,530 $0.1295 186,320 $0.1050 151,046 35,274 139,713
8 1,431,337 $0.1334 190,950 $0.1050 150,290 40,659 180,373
9 1,424,180 $0.1374 195,695 $0.1050 149,539 46,156 226,528
10 1,417,059 $0.1415 200,558 $0.1050 148,791 51,767 278,295
11 1,409,974 $0.1458 205,542 $0.1050 148,047 57,494 335,789
12 1,402,924 $0.1502 210,649 $0.1050 147,307 63,342 399,131
13 1,395,910 $0.1547 215,884 $0.1050 146,571 69,313 468,445
14 1,388,930 $0.1593 221,249 $0.1050 145,838 75,411 543,856
15 1,381,985 $0.1641 226,747 $0.1050 145,108 81,638 625,494
16 1,375,075 $0.1690 232,381 $0.1050 144,383 87,998 713,493
17 1,368,200 $0.1741 238,156 $0.1050 143,661 94,495 807,988
18 1,361,359 $0.1793 244,074 $0.1050 142,943 101,131 909,119
19 1,354,552 $0.1847 250,139 $0.1050 142,228 107,911 1,017,031
20 1,347,780 $0.1902 256,355 $0.1050 141,517 114,839 1,131,869
Total 28,282,056 $0.0000 $4,101,485 $0.1050 $2,969,616 $1,131,869 $1,131,869
29,997 51,767 114,839
0
50000
100000
150000
200000
250000
300000
Res 1 RES-BCT Site Annual Savings
Average Weighted Bill Credit Value ($/kWh)Solar Payment ($)Total Savings for District ($)
104,439
278,295
1,131,869
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Res 1 RES-BCT Site Cumulative Savings
Cumulative Savings
Resolution No. 10933 (2018 Series)
EXHIBIT A Page 6
R 10933
Project Cashflows: SLO Swim Center - Portfolio Pricing - Flat PPA
Rate Scenario Current
Solutions Solar + Storage
Project Canopy Financial Assumptions
Year 1 Savings $1,893 Parameter Value
Cumulative Savings $324,550 PPA Rate Escalator (%/yr)0.0%
Cumulative NPV Savings $224,242 Utility Energy Escalator (%/yr)2.7%
Payback Period Immediate Utility Demand Escalator (%/yr)5.0%
Solar System Size (KW)163 Discount Rate (%)3.0%
Storage System Size (KW)0 Solar Degradation Rate (%)0.50%
Year KWH Generated Historic Utility Bill (without
solar)
Total Electricity Costs (PPA
+ Utility)Net Savings Cumulative Savings Cumulative NPV
Savings
1 260,963 60,650 58,757 1,893 1,893 1,893
2 259,658 62,787 59,622 3,165 5,058 4,966
3 258,360 65,007 60,536 4,471 9,529 9,180
4 257,068 67,313 61,503 5,810 15,339 14,497
5 255,783 69,709 62,524 7,185 22,524 20,881
6 254,504 72,198 63,602 8,597 31,120 28,296
7 253,231 74,786 64,739 10,047 41,167 36,710
8 251,965 77,474 65,937 11,537 52,705 46,091
9 250,705 80,269 67,200 13,070 65,774 56,409
10 249,452 83,175 68,529 14,645 80,420 67,633
11 248,205 86,196 69,929 16,266 96,686 79,737
12 246,964 89,337 71,402 17,935 114,621 92,693
13 245,729 92,603 72,951 19,652 134,273 106,477
14 244,500 96,001 74,579 21,422 155,695 121,064
15 243,278 99,535 76,291 23,244 178,939 136,431
16 242,061 103,212 78,089 25,123 204,062 152,557
17 240,851 107,037 79,977 27,060 231,123 169,420
18 239,647 111,018 81,959 29,059 260,181 187,001
19 238,448 115,161 84,040 31,120 291,301 205,281
20 237,256 119,473 86,224 33,248 324,550 224,242
Total 4,978,627 $1,732,941 $1,408,391 $324,550 $324,550 $224,242
Resolution No. 10933 (2018 Series)
EXHIBIT A Page 7
R 10933