STAFF REPORT
REPORT TO THE CITY COUNCIL
FROM: MIGUEL ARIAS, Councilmember
City Council, District 3
BY: GEORGEANNE A. WHITE, City Manager
Office of Mayor & City Manager
BROCK D. BUCHE, PE, PLS, Interim Director
Department of Public Utilities
SUBJECT
..Title
Actions pertaining to a Solar Energy Ground Lease between City of Fresno and Fresno Community Solar Developers, LLC., at the Regional Wastewater Reclamation Facility (Council District 3):
1. Adopt Addendum to Mitigated Negative Declaration No. P21-02498, in accordance with Section 15164 of the California Environmental Quality Act (CEQA) Guidelines; and
2. Approve the First Amendment to the Agreement for Solar Energy Ground Lease between City of Fresno and Fresno Community Solar Developers, LLC. for the lease of land at the Fresno Clovis Regional Wastewater Reclamation Facility, to modify the boundaries of the leased premises, with no change in the total acres to be leased.
..Body
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Addendum to Mitigated Negative Declaration No. P21-02498, in accordance with Section 15164 of the California Environmental Quality Act (CEQA) Guidelines; and
2. Approve the First Amendment to th e Agreement for Solar Energy Ground Lease between City of Fresno and Fresno Community Solar Developers, LLC. for the lease of land at the Fresno Clovis Regional Wastewater Reclamation Facility, to modify the boundaries of the leased premises, with no change in the total acres to be leased; and
3. Authorize the Director of Public Utilities, or designee, to sign the First Amendment to the Agreement for Solar Energy Ground Lease on behalf of the City of Fresno.
EXECUTIVE SUMMARY
As development of the solar power generation project has progressed, there has been a change in the solar array configuration due to a dimensional change of the available solar panels. This dimensional change in turn has created a change in the configuration of the solar arrays. The addendum to the Mitigated Negative Declaration and First A mendment to the Agreement are necessitated to address the minor configuration change of the leased area for the solar project, to correct an error in the lease agreement, and to update the notice provision.
BACKGROUND
On June 21, 2018, the CPUC approved D.18 -06-027, as a new program to promote DACs. With that decision, the CPUC is requiring investor owned utilities (e.g., PG&E) to implement two new Green Tariff Programs for DACs. The G reen Tariff Programs for DACs approved by the CPUC include both a Disadvantaged Communities -Green Tariff Program (DAC -GT) and a Community Solar Green Tariff (CS-GT).
The DAC-GT program is designed to allow families living within DACs to participate in the benefits of solar energy production when they would normally not be able to afford the cost of solar energy systems to be placed on their home. Under the DAC -GT program, families who live in DACs and meet the income eligibility requirements for the California Alternate Rates for Energy (CARE) and Family Electric Rate Assistance (FERA) programs and sign up for the DAC-GT program will be provided a 20 percent discount off of their normal applicable electrical energy rate. The DAC -GT enrollment has a progra m participation cap of 70 MW for the entire PG&E service territory.
On February 27, 2020, the City Council approved a Grant of Option Agreement with FCSD for the development of a 20 MW DAC -GT solar generation facility at South Cornelia Avenue south of Wes t Jensen Avenue near the RWRF. The Grant of Option Agreement provided FCSD the exclusive right to lease 158 acres of land owned by the Wastewater Management Division at $2,000 per acre for the first year of the lease, and a 3 percent per year annual escalator over a 20-year term of the lease.
On April 8, 2021, the City Council approved the First Amendment to the Grant of Option Agreement with FCSD. The First Amendment extended the expiration date from June 30, 2021, to December 31, 2021; reduced the lease price from $2,000 per acre with a thre e percent per year annual escalator to a fixed $1,000 per acre; allowed for two 10-year lease extensions with a profit share equal to 20 percent of distributable cash, to be paid in lieu of rent; and included a workforce development program to provide hand s-on utility scale solar photovoltaic training to citizens of disadvantaged census tracts located within the City of Fresno who are interested in gaining skills to obtain employment in the solar industry.
On December 2, 2021, the City Council approved the Agreement for Solar Energy Ground Lease with FCSD for 74.41 acres of land in compliance with the terms as approved in the Grant of Option Agreement and the First Amendment to the Grant of Option Agreement. During the construction period only, FCSD will lease an additional 5 acres for use as construction staging and laydown area.
As the project has developed through the design phase , the dimensions of the solar panels have changed somewhat, and this has required a slight change to the solar array configuration. The subject Addendum to Mitigated Negative Declaration No. P21 -02498, and First Amendment to Agreement address the configuration change. The First Amendment to Agreement includes the revised legal description for the leased area, corrects an err or in the lease agreement, and updates the notice provision. The lease area delineation is minor in nature and the solar array will remain within the entirety of the previously environmentally studied area.
Staff recommends the City Council adopt the Add endum to Mitigated Negative Declaration, approve the First Amendment to Agreement for Solar Energy Ground Lease, and authorize the Director of Public Utilities, or designee, to execute the Amendment to Agreement on behalf of the City of Fresno.
The City Attorney’s Office has reviewed the agreement and approved as to form.
ENVIRONMENTAL FINDINGS
Mitigated Negative Declaration No. P21-02498 was adopted by Council on December 2, 2021, as was an Addendum to Mitigated Negative Declaration No. P21 -02498. A Notice of Determination was filed with the Fresno County Clerk’s Office on December 6, 2021. Staff performed an analysis and determined that the proposed changes do not constitute a substa ntial change to the project and the new configuration is in conformity with the original site plan. The northern boundary or eastern boundary lease lines have not changed. The western boundary and the southern boundaries have slightly shifted to accommodate the updated and re-engineered solar panels that are longer. However, the total acres to be leased has not changed at 74.41 acres. The small change in the lease boundary does not change the analysis and determinations made in the adopted Mitigated Negative Declaration and Addendum.
Thus, the Addendum to the Mitiga ted Negative Declaration prepared for Environmental Assessment No. P21-02498 as filed with the Fresno County Clerk on December 6, 2021, adds no new information but merely provides for minor deletions, clarifications, and makes insignificant modifications t o the Mitigated Negative Declaration prepared.
LOCAL PREFERENCE
Local Preference was not considered because this Agreement for Solar Energy Ground Lease is not a bid or award of a construction or services contract.
FISCAL IMPACT
The annual lease rate of $1,000 per acre will accrue to the Wastewater Management Division.
Attachments:
Attachment 1 – Addendum to Mitigated Negative Declaration Attachment 2 – First Amendment to Agreement
Attachment 3 – Agreement for Solar Energy Ground Lease
ADDENDUM TO MITIGATED
NEGATIVE DECLARATION
CITY OF FRESNO
ADDENDUM TO THE MITIGATED NEGATIVE DECLARATION
PREPARED FOR
ENVIRONMENTAL ASSESSMENT NO. P21-02498
(Notice of Intent filed with Fresno County Clerk on November 10, 2021; and Notice of Determination filed with Fresno County Clerk on December 6, 2021) Addendum prepared in accordance with Section(s) 15073.5 of the California Environmental Quality Act (CEQA) Guidelines
This addendum was
not circulated for
public review
pursuant to Section
15073.5 of the
CEQA Guidelines.
The full Initial Study and the General Plan
Program EIR (GP PEIR) SCH No.
2019050005 are on file in the Planning and
Development Department,
Fresno City Hall, 3rd Floor
2600 Fresno Street
Fresno, California 93721
(559) 621-8277
PROJECT TITLE:
DEVELOPMENT PERMIT
APPLICATION NO. P21-02498
APPLICANT:
Larry Westerlund
Westerlund Enterprises
499 West Shaw Avenue, Suite 116
Fresno, CA 93704
PROJECT LOCATION:
2685 South Cornelia Avenue; Located on the northwest
corner of the West North Avenue and South Cornelia
Avenue in the City and County of Fresno, California
APN
: 327-030-22ST
S
ite Latitude: 36º41’51” N
Site Longitude: 119º53’11” W
Mount Diablo Base & Meridian, Township 14S Range 19E,
Section 22 – California
PROJECT DESCRIPTION: Environmental Assessment No. P21-02498 for Development Permit Application No . P21-0249813 was filed by Larry Westerlund, of Westerlund Enterprises , pertains to a proposed solar plant to be located on a ±76 -acre portion of a ±158- acre parcel located at 2685 South Cornelia Avenue on the northwest corner of the West North Avenue and South Cornelia Avenue. The subject property is owned by the City of Fresno and is currently agricultural buffer land at the Fresno- Clovis Regional Wastewater Treatment Facility. The property is currently zoned PI/UGM (Public and Institutional /Urban Growth Management). The special permit application (P21-02498), otherwise referred to as the Fresno DAC Solar Project, proposes to install approximately 25,116 single axis tracker photovoltaic (PV) modules on the 76-acre project site. The project is planned to generate 10 Mega Watts (AC) of electrical output. The power generated by the solar project will provide clean renewable energy to Pacific Gas and Electric and will be used to provide electricity to Disadvantaged Community families for a 20% electrical bill discount for 20 years, pursuant to the Disadvantaged Community Solar Green Tariff
Program (DAC -GT) as mandated by the California Public Utility Commission. The proposed Point of Interconnection (POI) is located at the PG&E Kearney 12 kV distribution line, approximately 2,500 feet north of the Project site. The Project will have its own six-foot fence and will be actively monitored remotely.
The Project is planned to be constructed over an approximately 6-month period.
This addendum to the Mitigated Negative Declaration prepared for Environmental Assessment No. P21- 02498 as filed with the Fresno County Clerk on December 6, 2021, adds no new information but merely provides for minor deletions, clarifications, and makes insignificant modifications to the Mitigated Negative Declaration prepared. The following clarifications or corrections are made for Environmental Assessment No. P21-02498.
Revised Lease Area Description
The revised lease area dimensions and site plan for the project ha ve shifted slightly, as is shown on the revised site plan and legal description.
• Western Boundary
o Old: The old western boundary was 180 feet from the Polk Alignment. o New: The new western boundary line will be 126.08 feet from the Polk Alignment. o Change: The western boundary lease line will now be 54.92 feet closer to the Polk Alignment. • Southern boundary of the lease on the western side will move further to the north. o Old: The old southern boundary lease line was 604 feet from the North Avenue. o New: The new southern boundary on the west side is now 768.85 feet further north from North Avenue,
o Change: This is the change of 164.85 feet to the north. • The interior north/south boundary (eastern side of southwest leg) of the leased property has now been moved further to the east.
o Old: The old interior north/south boundary was 1390.00 feet from the Cornelia Avenue. o New: The new boundary is 1292.78 from Cornelia Avenue, o Change: This is a change of 97.22 feet east.
The northern boundary or eastern boundary lease lines have not changed.
The western boundary and the southern boundaries have slightly shifted to accommodate the updated and re-engineered solar panels that are longer. However, the total acres to be leased has not changed at
74.41 acres.
The studies that were prepared for the project cover this area:
• The biological survey included a 500- foot buffer, where it was feasible. The parcel was visually inspected during the survey;
• The Phase 1 Environmental Site Assessment included a survey and analysis of the entire parcel and the surrounding parcels; and
• The Cultural Resources Technical Memo included the entire site and properties within ½ mile of the site.
DISCUSSION
There are no substantive changes to the project and the new configuration is in conformity with the original site plan. The small change in the lease boundary does not change the analysis and determinations made in the adopted Mitigated Negative Declaration and Addendum. No new analysis is warranted.
It may be determined that: (1) No project revisions have been made in a manner which exceeds the scope of EA P20-02498 dated November 10, 2021; (2) No substantial changes are proposed in the Project that require major revisions to the previous environmental finding due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; (3) No substantial changes will occur with respect to the circumstances under which the Project is undertaken; and, (4) No new information, which was not known and could not have been known, at the time the environmental finding for EA P20-02498 was noticed for availability, has become available. New information added is only for the purposes of clarifying and amplifying information in response to comments and does not constitute significant modification to previous analyses, findings or conclusions.
CEQA Sectio n 15073.5 provides that a lead agency is required to recirculate a mitigated negative declaration when the document must be substantially revised after public notice of its availability has previously been given pursuant to Section 15072, but prior to adoption.
FINDINGS PURSUANT TO SECTION 15073.5 OF THE CEQA GUIDELINES. (1) A “substantial revision” of the negative declaration shall mean: (1) A new, avoidable significant effect is identified and mitigation measures or project revisions must be added in order to reduce the effect to insignificance; or, (2) The lead agency determines that the proposed mitigation measures or project revisions will not reduce potential effects to less than signif icant and new measures or revisions must be required.
Finding
(1):
The information provided within this addendum herein above does not constitute substantial revisions to the Mitigated Negative Declaration previously prepared. No major modifications to the project have been made, and no new, previously unidentified impacts have been identified. The lease dimensions and site plan for the project has shifted slightly, as is shown on the revised site plan and legal description. The western boundary and the southern boundaries have slightly shifted as described above to accommodate the updated and re- engineered solar panels that are longer. However, the total amount of the lease as not changed at 74.41 acres . In 2014, the City of Fresno adopted the Fresno General Plan and certified the accompanying Master Environmental Impact Report (GP MEIR) SCH No:
2012111015. However, in 2021, the City of Fresno adopted the General Plan Program EIR (GP PEIR) SCH No. 2019050005. All originally identified mitigation measures will adequately reduce significant effects to less than significance. This proposed addendum to the mitigated negative declaration prepared for the proposed project serves only to supplement and amplify the information and analyses contained within the initial study and therefore, does not involve new significant environmental effects or a substantial increase in the severity of previously identified significant effects.
(2) Recirculation is not required under the following circumstances: (1) Mitigation measures are replaced with equal or more effective measures pursuant to Section 15074.1; (2) New project revisions are added in response to written or verbal comments on the project’s effects identified in the proposed negative declaration which are not new avoidable significant effects; (3) Measure or conditions of project approval are added after circulation of the negative declaration which are not required by CEQA, which do not create new significant environmental effects and are not necessary to mitigate an avoidable significant effect; and, (4) New information is added to the negative declaration which merely clarifies, amplifies, or makes insignificant modifications to the negative declaration.
Finding
(2):
No new mitigation measures or conditions of approval have been added or replaced. There have been no substantial changes to the surrounding area, the project site or the project itself which would otherwise affect the circumstances under which the project is undertaken. This addendum to the mitigated negative declaration originally prepared and noticed for the proposed project provides clarification of environmental analyses, findings and conclusions as well as amplification in response to written comments received subsequent to notice of availability.
Furthermore, the severity of environmental issues identified in the Mitigated Negative Declaration has not substantially increased since the preparation of the initial study.
The addendum does not identify new information regarding significant effects not previously discussed in the Mitigated Negative Declaration, and potential effects previ ously examined are not substantially more severe than originally discussed. No mitigation measures which were previously identified have been found infeasible, nor has it been determined that identified mitigations measures would not substantially reduce s ignificant effects of the project. No mitigation measures have been added or modified, or are they considerably different from those analyzed in the previous Mitigated Negative Declaration.
The addendum contains no additional information regarding proposed mitigation measures and does not change or effect the previous findings of the Mitigated Negative Declaration.
Therefore, no new information identifies significant or substantially more severe effects than originally discussed.
ADDENDUM PREPARED BY: SUBMITTED BY:
Phillip Siegrist, Supervising Planner
Phillip Siegrist, Supervising Planner
DATE: CITY OF FRESNO PLANNING AND
DEVELOPMENT DEPARTMENT
4/5/2022
PLANNING AND DEVELOPMENT
DEPARTMENT VICINITY MAP
Addendum to Environmental Assessment No.
P21 - 02498
DAC Solar Plant
PROPERTY ADDRESS
2685 South Cornelia Avenue
APN: 327-030-22ST
Zone District: PI/UGM (Public
and Institutional /Urban Growth
Management).
By: P. Siegrist
April 5, 2022
Subject Property
Not To Scale
West North Avenue
South Cornelia Avenue
FIRST AMENDMENT TO
AGREEMENT
AGREEMENT FOR SOLAR ENERGY
GROUND LEASE