HomeMy WebLinkAboutRES 2022-086Resolution No. 2022-86 Page 1
RESOLUTION NO. 2022-86
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, 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 Palm Desert (“City”) desires to reduce the 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 FFP BTM SOLAR, LLC ,
dba ForeFront Power (“Supplier”) for facilities at the City’s real property sites, pursuant to
which Power Purchase Agreements Supplier will design, construct, and install on City
property solar photovoltaic facilities and arrange with the local utility for interconnection
of the facilities, which will generate energy for the sites on which such facilities are
located;
WHEREAS, Supplier 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 such analysis
has been independently verified by an energy consultant for the City as shown in Exhibit
B; and
WHEREAS, Exhibit A includes data showing that the anticipated cost to the City
for the electrical energy provided by the solar photovoltaic 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, Supplier was the selected vendor for School Project for Utility Rate
Reduction’s (“SPURR”) Renewable Energy Aggregated Procurement (“REAP”) Program,
a competitive statewide solar request for proposals (“RFP”) process, and the City adopts
the REAP Program’s competitive process as its own.
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 City Council’s adoption of this Resolution; and
WHEREAS, pursuant to Government Code section 4217.12, this City Council held
a public hearing, public notice of which was given two weeks in advance, to receive public
comment, and to make a determination of cost savings; and
Resolution No. 2022-86 Page 2
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
WHEREAS, said application has complied with the requirements of the "City of
Palm Desert Procedure for Implementation of CEQA” Resolution No. 2019 -41, in that the
City has determined that the project will not have a significant impact on the environment
and that the project is statutorily exempt pursuant to Public Resources Code (CEQA
Statute), § 21080.35 for the installation of a solar energy system and associated
equipment within an existing parking lot, as outlined in the staff report and the project is
not subject to any of the exceptions for exemptions identified in § 21080.35 (d)(1-3)
therefore, no further environmental review is necessary; and
WHEREAS, the Project does not involve any of the following and so is eligible for
an exemption as described above under § 21080.35
(a) The project does not require an individual federal permit pursuant to Section
401 or 404 of the federal Clean Water Act (33 U.S.C. Sec. 1341 or 1344) or
waste discharge requirements pursuant to the Porter-Cologne Water Quality
Control Act (Division 7 (commencing with Section 13000) of the Water Code).
(b) The project does not require an individual take permit for species protected
under the federal Endangered Species Act of 1973 (16 U.S.C. Sec. 1531 et
seq.) or the California Endangered Species Act (Chapter 1.5 (commencing with
Section 2050) of Division 3 of the Fish and Game Code).
(c) The project does not require a streambed alteration permit pursuant to Chapter
6 (commencing with Section 1600) of Division 2 of the Fish and Game Code.
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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Desert as follows:
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 City Council, at a duly noticed public hearing, has made
the determination 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.
Resolution No. 2022-86 Page 3
SECTION 3. The City Council hereby approves the Power Purchase Agreements
in accordance with Government Code section 4217.12.
SECTION 4. The City’s City Manager is hereby authorized and directed to
negotiate such further non-monetary changes and clarifications, as he reasonably deems
necessary, in consultation with the City Attorney, to finalize the Agreements for execution ,
and thereafter to execute and deliver the Power Purchase Agreements following the City
Council’s adoption of this Resolution. The City’s 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. 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.
SECTION 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.
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.
ADOPTED ON OCTOBER 13, 2022.
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
Anthony Mejia (Oct 25, 2022 10:57 PDT)
Resolution No. 2022-86 Page 4
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2022-86 is a full, true, and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Desert on October 13, 2022, by the
following vote:
AYES: JONATHAN, KELLY, NESTANDE, AND HARNIK
NOES: NONE
ABSENT: QUINTANILLA
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on __________________.
ANTHONY J. MEJIA
CITY CLERK
Anthony Mejia (Oct 25, 2022 10:57 PDT)
Oct 25, 2022
Project Cashflows: City of Palm Desert Solar Savings
Rate Scenario NEM 2.0 Financial Assumptions
Solutions Solar-Only Parameter Value
Project City-Wide Projects PPA Rate Escalator (%/yr)0.0%
Year 1 Savings -$60,363 Utility Energy Escalator (%/yr)4.0%
Cumulative Savings $2,376,393 Utility Demand Escalator (%/yr)4.0%
Payback Period 7 Years PPA Term (Years)20
Solar System Size (KW)1,394 Discount Rate (%)5.0%
Storage System Size (KW)0 Solar Degradation Rate (%)0.50%
Year Historic Utility Bill
(without solar)PPA Payment New Utility Bill
(with solar)
Total Electricity Costs
(PPA + Utility)Net Savings Cumulative Savings
1 668,727 450,203 278,888 729,090 -60,363 -60,363
2 695,476 447,952 292,193 740,144 -44,668 -105,032
3 723,295 445,712 306,105 751,816 -28,521 -133,553
4 752,227 443,483 320,650 764,134 -11,907 -145,460
5 782,316 441,266 335,858 777,124 5,192 -140,267
6 813,609 439,059 351,757 790,816 22,792 -117,475
7 846,153 436,864 368,378 805,242 40,911 -76,564
8 879,999 434,680 385,752 820,432 59,567 -16,997
9 915,199 432,506 403,913 836,419 78,780 61,783
10 951,807 430,344 422,895 853,239 98,568 160,351
11 989,879 428,192 442,735 870,928 118,952 279,302
12 1,029,474 426,051 463,471 889,522 139,952 419,255
13 1,070,653 423,921 485,141 909,062 161,591 580,846
14 1,113,479 421,801 507,787 929,588 183,891 764,737
15 1,158,019 419,692 531,452 951,144 206,875 971,612
16 1,204,339 417,594 556,180 973,773 230,566 1,202,178
17 1,252,513 415,506 582,017 997,523 254,990 1,457,167
18 1,302,613 413,428 609,013 1,022,442 280,172 1,737,339
19 1,354,718 411,361 637,219 1,048,580 306,138 2,043,477
20 1,408,907 409,304 666,686 1,075,991 332,916 2,376,393
Total $19,913,402 $8,588,921 $8,948,088 $17,537,009 $2,376,393 $2,376,393
Exhibit A
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B
Resolution No. 2022-86 Exhibit B