TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing, adopt resolution making findings for energy services contracting and authorizing City Manager, or designee, to execute a Solar Energy Power Purchase Agreement and Easement Agreement, and any necessary documents and amendments, with PFMG Solar Long Beach, LLC, for the purchase of energy produced from solar photovoltaic installations at 11 potential municipal sites within the City of Long Beach, for a period of 25 years, with the option to renew for three additional five-year periods. (Citywide)
DISCUSSION
The City of Long Beach (City) seeks to reduce its carbon footprint and reduce the City’s cost to purchase energy by increasing the use of renewable energy. The initial studies for this project started in 2011. The project was bid in early 2014, and approved by the City Council on December 9, 2014. At that time, the City entered into a Power Purchase Agreement (PPA) with SunEdison. In April 2016, and before the design efforts were complete, SunEdison declared bankruptcy. In August 2016, the City sent a notice of termination of the PPA to SunEdison. Following the termination notice, the Public Works Department worked on hiring a new provider and selected PFMG Solar Long Beach, LLC (PFMG).
Section 4217.12 of the California Government Code authorizes public agencies to enter into energy service contracts on such terms as their governing bodies determine are in the best interests of the agency. A determination must be made after a public hearing that the anticipated cost to the agency for energy conservation services under the energy services contract would be less than the anticipated marginal cost to the agency of electrical energy that would have been consumed by the agency in the absence of those purchases. Staff solicited proposals and invited four solar providers to propose on the suitability of multiple sites for installation of solar photovoltaic (PV)...
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