Resolution 2024-XX Page 1 of 3 RESOLUTION NO. 2024-XX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FREMONT
AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE A POWER PURCHASE AGREEMENT (PPA) WITH AVA
COMMUNITY ENERGY FOR THE DEPLOYMENT OF SOLAR AND
BATTERY ENERGY SYSTEMS AT CRITICAL MUNICIPAL
FACILITIES; FINDING THAT CALIFORNIA GOVERNMENT CODE
SECTION 4217.10 APPLIES TO THE PPA AND ALLOWS FOR
EXPEDITED PROCUREMENT ; AND MAKING FINDINGS OF CEQA
EXEMPTION
WHEREAS, the City Council of the City of Fremont (“City Council”) adopted its first Climate Action Plan (“CAP”) in November 2012, putting forth an implementation plan to reduce both municipal and community-scale greenhouse gas (“GHG”) emissions by 25% by 2020 from a 2005 baseline in alignment with its General Plan vision; and WHEREAS, on November 15, 2016, the City Council adopted Ordinance No. 23-2016 authorizing Fremont's participation in the East Bay Community Energy Authority (“EBCE”), development of the EBCE Community Choice Aggregation program, and implementation of EBCE as Fremont’s Load Serving Entity; and
WHEREAS, on February 19, 2019, the City Council adopted Resolution No. 2019-03 establishing new municipal and community-scale GHG emissions reduction targets of 55% by 2030 from a 2005 baseline and carbon neutrality by 2045; and WHEREAS, on July 6, 2021, the City Council adopted Resolution No. 2021-45, authorizing the City Manager to pursue deployment of solar and battery energy storage systems at critical municipal facilities in partnership with EBCE; and WHEREAS, on October 10, 2023, the City Council adopted an updated CAP with specific measures to reduce GHG emissions by an additional 30 percent from 2018 levels (equivalent to a 55 percent reduction from 2005 levels) in alignment with its adopted 2030 GHG reduction target; and
WHEREAS, the short-term Game Plan of priority CAP actions includes partnering with Ava Community Energy to install solar and battery energy storage systems on critical City facilities; and
WHEREAS, the City Council has demonstrated its commitment to a sustainable and resilient future through its policy goals and actions, including energy reduction, clean energy programs, and the expansion of local renewable power supply; and WHEREAS the City of Fremont aims to provide state-of-the-art, well-maintained infrastructure, amenities, and facilities, creating a resilient, safe, connected, and prepared city and being a global leader in addressing climate change and protecting the environment; and
Resolution 2024-XX Page 2 of 3 WHEREAS, solar and battery energy storage systems provide clean, renewable electricity, can reduce time-of-use charges during peak pricing periods, and provide resilience benefits allowing critical facilities to continue to operate on a limited basis during a power outage; and
WHEREAS, in October 2023, East Bay Community Energy changed its name to Ava Community Energy (Ava); and
WHEREAS, City staff worked with Ava staff to develop preliminary plans for solar and batteries at six City facilities: Fire Station 1, Fire Station 9, the Family Resource Center, Age Well Center at Lake Elizabeth, Age Well Center at South Fremont and the City-owned building at 37350 Joseph Street housing the Tri City Volunteers Food Bank; and WHEREAS, the draft Power Purchase Agreement (“PPA”) between the City and Ava would allow a third-party developer to own, operate, and maintain the generating equipment and the City would agree to host the systems and purchase the electric output for 25 years; and WHEREAS, there are no upfront costs to the City and the City’s total payments over the 25-year contract, in combination with regular electricity and natural gas bills, will be less than they would be without the project; and
WHEREAS, California Government Code Section 4217.10, et seq., allows expedited procurement in lieu of standard contract bidding requirements, provided that the energy project is determined to provide financial savings over the operating lifetime; and WHEREAS, California Government Code Section 4217.12 requires that the City hold a public hearing and there is a two-week public notice before the authorization of the procurement; and
WHEREAS, a public hearing notice was published in the Tri City Voice on November 19, 2024.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Fremont hereby authorizes and directs the City Manager or designee to negotiate, execute and take all necessary and reasonable steps to implement the PPA with Ava and facilitate the installation of solar and batteries at the six City facilities; and
BE IT FURTHER RESOLVED that the proposed PPA with Ava for the solar and battery energy systems project will provide financial savings over the operating lifetime and therefore qualifies for expedited single source procurement under California Government Code Section 4217.10; and
BE IT FURTHER RESOLVED that this proposed project is exempt from the requirements of the California Environmental Quality Act per, without limitation, on a separate and independent basis, Public Resources Code 21080.35, Guideline 15301 (Existing Facilities), 15303 (New Construction or Conversion of Small Structures), and 15311 (Accessory Structures).
Resolution 2024-XX Page 3 of 3 ADOPTED____________, 2024 by the City Council of the City of Fremont by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
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Mayor
ATTEST:
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City Clerk
APPROVED AS TO FORM:
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City Attorney