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File #: 25-215    Version: 1 Name:
Type: Resolution Status: Passed
File created: 2/26/2025 Departments: COUNTY EXECUTIVE
On agenda: 3/25/2025 Final action: 3/25/2025
Title: Conduct a Public hearing regarding the authorization of an Energy Power Purchase Agreement with Peninsula Clean Energy for the North County Wellness Center: A) Open public hearing B) Close public hearing C) Adopt a resolution: 1. Making findings required by Government Code Section 4217.12; and 2. Authorizing a solar energy power purchase agreement between the County and Peninsula Clean Energy (PCE) for design, installation, operation, and maintenance of solar photovoltaic system for the North County Wellness Center Project.
Attachments: 1. 20250325_r_peninsula clean energy_north county wellness center edited 03172025.pdf, 2. 20250325_a_solar power purchase agreement_north county wellness center.pdf, 3. Item No. 12 - Final NCWC - Board Presentation.pdf, 4. 0012_1_20250325_r080985_peninsula clean energy_north county wellness center edited 03172025.pdf

Special Notice / Hearing:                         2-weeks by newspaper publication__

      Vote Required:                         Majority

 

To:                      Honorable Board of Supervisors

From:                      Michael P. Callagy, County Executive

Sam Lin, Project Development Unit Director

Subject:                      Energy Power Purchase Agreement with Peninsula Clean Energy (PCE) for the North County Wellness Center

 

RECOMMENDATION:

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Conduct a Public hearing regarding the authorization of an Energy Power Purchase Agreement with Peninsula Clean Energy for the North County Wellness Center:

 

A)                     Open public hearing

 

B)                     Close public hearing

 

C)                     Adopt a resolution:

 

1.                     Making findings required by Government Code Section 4217.12; and

 

2.                     Authorizing a solar energy power purchase agreement between the County and Peninsula Clean Energy (PCE) for design, installation, operation, and maintenance of solar photovoltaic system for the North County Wellness Center Project.

 

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BACKGROUND:

PCE is the not-for-profit, community-controlled electricity provider for San Mateo County with a mission to reduce greenhouse gas emissions by expanding access to clean and affordable energy solutions.  PCE operates the Solar + Storage for Public Buildings Program to accelerate renewable energy projects at local government facilities.  Through this Program, solar photovoltaic systems are designed, installed, operated, and maintained at participating government sites with no cost to the participating agencies. The solar energy generated by these systems is then purchased by the participating agencies at a cost lower than that offered by competing utilities.  Procurement of these systems is done in compliance with applicable laws. 

 

DISCUSSION:

Government Code section 4217.12 (a) authorizes a public agency to enter into an energy services contract if the determination is made at a regularly scheduled public hearing, public notice of which was given two weeks in advance of the public hearing, that the anticipated cost to the public agency for thermal or electrical energy or conservation services provided by the energy conservation facility under that contract will be less than the anticipated marginal cost to the public agency of thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases. Public notice was given two weeks in advance of this public hearing.

The Project Development Unit, its consultant Sage Renewable Energy Consulting Inc., and Peninsula Clean Energy have analyzed the energy needs at the North County Wellness Center project and have concluded that the installation and construction of the Energy Conservation Measures at the facility will result in an anticipated reduction in energy consumption or demand that will result in net cost savings to the County. The attached Cost Analysis Summary shows an anticipated net savings of approximately $3,400,000 over 20 years compared to the use of the utility.

 

The Power Purchase Agreement attached hereto includes the following terms:

 

                     PCE to provide the engineering, design, permitting, fabrication, construction, commissioning, and financing of a roof-top and a carport photovoltaic system.

 

                     PCE to provide operations and maintenance through the term of the agreement.

 

                     20-year term with the County option to renew for an additional 5-year term.

 

                     95% Performance Guarantee

 

                     Pricing at $0.264/kWh for 20 years based on the current hybrid design which includes both roof mounted arrays (PPA rate of $0.234/kWh) and carport solar arrays (PPA rate of $0.274)  In the event the design is modified to change the respective percentage of roof mounted and carport solar arrays, pricing will be adjusted accordingly.

 

County Attorney has reviewed and approved the resolution as to form.

 

EQUITY IMPACT:

Public buildings that utilize renewables such as solar power can reduce the impact of operations on power plant emissions and thus have a positive effect on overall environmental health.

 

FISCAL IMPACT:

There is no Net County Cost for installation and maintenance of panels. Costs of energy utilized by County will be an operational cost and has been determined to be less than the anticipated marginal cost to the County of thermal, electric, or other energy that would have been consumed by the County in the absence of the Energy Conservation Measures. There is no impact to the General Fund.