fast-food restaurant (no drive-through window), donut shop, pizza shop, cafe, bakery, cafeteria, coffee shop, lunchroom, delicatessen, and ice cream parlor. Does not include alcohol sales.
2. Full Service. A restaurant with incidental bar, cocktail lounge, or other area designated primarily for the service of alcohol on the premises, which operates as part of the restaurant and is subservient to the primary function of the restaurant. Does not include fast food restaurant.
3. Drive-Through. Any high-volume establishment serving food or beverages which utilizes a building design, site layout, or operating procedure whereby customers can drive onto the premises and remain in their vehicles while food or beverages are sold or dispensed.
Retail, General. Stores and shops selling many lines of merchandise for personal or household consumption.
Typical uses may include, but are not limited to, sales of apparel and accessories, antiques, appliances, art and fabric supplies, books, electronics, furniture, jewelry, luggage, office supplies, sporting equipment, as well as department stores, drugstores, flower shops, hardware stores, specialty stores, convenience stores, grocery stores, and variety stores. Does not include the sale of automotive parts or on-site production.
S. S-Definitions.
Studio: Fitness, art, dance, music, etc. Small-scale facilities focused on the instruction of students of any age group. Does not include activities listed in "Entertainment Facility" or "Recreation Facility." Studio facilities includes, but is not limited to, individual and group instruction an d training in the arts; production rehearsal; photography, physical fitness, and martial arts training studios; and gymnastics instruction, aerobics, and gymnastics studios with no other fitness facilities or equipment.
T. T-Definitions.
Temporary Use. Short-term activities that are not allowed on a permanent basis but because of their temporary non-permanent intermittent or seasonal nature are acceptable. Includes, but is not limited to, mobile businesses, Christmas tree or pumpkin patch lot, farmer's market, fruit stands, garage sales, and auctions.
U. U-Definitions. No specialized land uses beginning with the letter U are defined at this time.
V. V-Definitions. No specialized land uses beginning with the letter V are defined at this time.
W. W-Definitions. No specialized land uses beginning with the letter W are defined at this time.
X. X-Definitions. No specialized land uses beginning with the letter X are defined at this time.
Y. Y-Definitions. No specialized land uses beginning with the letter Y are defined at this time.
Z. Z-Definitions. No specialized land uses beginning with the letter Z are defined at this time. 10-28.6.1.030 GENERAL TERMS
A. A-Definitions.
Adjacent. Sharing a common property line, or with property lines separated only by an alley.
Adjacent Buildings. Two or more buildings located upon adjacent lots.
Allowed Use. Uses that are allowed by right and are not subject to the conditions of approval, mandatory review periods, or expiration periods as required for Conditional Use Permits or Administrative Use Permits.
Applicant. Any person who is filing an application requesting an action who is:
a. The owner or lessee of property;
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
b. A party who has contracted to purchase property contingent upon that party's ability to acquire the necessary approvals required for that action in compliance with this Code, and who presents written authorization from the property owner to file an application with the City; or c. The agent of either of the above who presents written authorization from the property owner to file an application with the City.
Approval. Includes both approval and approval with conditions by a review authority of the City.
Architectural Features. Exterior building elements intended to provide ornamentation to the building massing, including, but not limited to, eaves, cornices, bay windows, oriels, window and door surrounds, light fixtures, canopies, and balconies.
Awning. A roof or cover which projects from a wall of a building over a window or door, made of canvas, metal or wood, which may be fixed in place or be retractable.
B. B-Definitions.
Bay Window. A window that projects from the building facade or elevation that begins on the ground floor and can extend to upper floors.
Basement. That portion of a building between floor and ceiling, which is partly below and partly above grade (see Grade), but so located that the vertical distance from grade to the floor below is less than the vertical distance from grade to ceiling.
Block. An area of land separated from other areas by adjacent streets, railroads, rights of -way, or public areas.
Block Face. The horizontal distance measured from one end of the block to the other end along the same right-of-way.
Block Perimeter. The aggregate of all sides of a block measured along the adjacent right -of-way.
Building. A habitable structure requiring a certificate of conformance, which consists of one or more of the following foundations that surround an interior space: floors, walls, and roofs. May include, but is not limited to, exterior appurtenant structures such as porches and decks.
1. Block-Scale. A building that is individually as large as most or all of a block or when arranged together along a street, appear as long as most or all of a block.
2. Existing. See Structure, Existing.
3. House-Scale. A building that is within the range of size of a small to large house and set apart from other buildings with setbacks.
4. Primary. A building in which the primary use is conducted.
Buildable Area. The area in which a building is allowed to be constructed.
Building Elevation. The exterior wall of a building not adjacent to a public right-of-way, the front or side along a private street, or civic space.
Building Entrance. A point of pedestrian ingress and egress to a building.
Building Facade. The exterior wall of a building adjacent to a public right -of-way, the front or side along a private street, or civic space.
Building Form. The overall shape and dimensions of a building.
Building Frontage, Primary. The length of the property line of any one premises parallel to and along each public right-of-way which it borders and is identified by an address.
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
Building Type. A structure defined by its combination of configuration, disposition and function.
C. C-Definitions.
Carriage Building. See Section 3.3.040 (Carriage Building).
City. The City of Hayward.
City Engineer. The City Engineer of the City of Hayward.
Civic Space. Land that is improved for civic gathering purposes.
Courtyard Building. See Section 3.3.110 (Courtyard Building).
Cottage Court. See Section 3.3.070 (Cottage Court).
Council. The City Council of the City of Hayward.
D. D-Definitions.
Director. The Planning Director of the City of Hayward.
Detached House. See Section 3.3.050 (Detached House).
Distance Between Entries. The horizontal distance measured parallel to the building facade between entrances to a building or buildings.
Driveway. A vehicular lane within a design site or shared between two sites leading to a garage, or other approved parking or loading area.
Duplex. See Section 3.3.060 (Duplex).
Dwelling Unit. A building, or a portion of a building (e.g., room or group of internally connected rooms), designed for occupancy by one household for residential purposes that has sleeping, cooking, eating, and sanitation facilities, but not more than one kitchen, occupied by or intended for the exclusive use of the household. Does not include tents, recreational vehicles, or travel trailers.
E. E-Definitions.
Encroachment. Any architectural feature, structure or structural element, such as a gallery, fence, garden wall, porch, stoop, balcony, oriel window, bay window, terrace or deck, that breaks the plane of a vertical or horizontal regulatory limit extending into a setback, or beyond the zero lot line into the public frontage, or above a height limit.
Entry. An opening, such as a door, passage, or gate, that allows access to a building.
F. F-Definitions.
Facade. The vertical surface of a building, generally placed facing a street ("front facade").
Facade Zone. The area between the minimum and maximum setback lines along the front of a parcel and along the side street of a corner parcel.
Facility. An improvement, structure or building that is designed and used for a particular purpose.
Fence. A structure made of wire, wood, metal, masonry, or other material, and typically used as a screen or enclosure for a yard or open space or as a divider along a lot line.
Footprint. The outline of the area of ground covered by the foundations of a building or structure.
Footprint Area. The total square footage contained within a footprint.
Frontage. A strip or extent of land abutting a thoroughfare, civic space, or other public right -of-way. See Figure 1 (Frontage).
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
1. Private. The area between the building facade and the shared lot line between the public right -of-way and the lot.
2. Public. The area between the curb of the vehicular lanes and shared lot line between the public right - of-way and the lot.
Figure 6.1.030.1 Frontage
G. G-Definitions.
Gable. A vertical wall in the shape of a triangle formed between the cornice or eave and the ridge of the roof.
Glazing. Openings in a building in which glass is installed.
Grade.
1. Existing. The grade of a site before it is modified by moving earth, adding or removing fill, or installing a berm, retaining wall, or architectural or landscape feature. The development services director may require an applicant to provide a third-party report that shows the existing, or natural grade, of a site.
2. Finished. The finished ground level at any point along the exterior walls of a structure. If walls are parallel to and within five feet of a sidewalk, alley or other public way, the level above ground must be measured at the elevation of the sidewalk, alley or public right-of-way.
Gross Floor Area. The total floor area inside the building envelope, including the external walls, but not including the roof.
Ground Floor. The floor of a building located nearest to the level of the existing grade around the building.
H. H-Definitions.
Hayward Code. The City of Hayward's Code of Ordinances.
Height. See Figure 2 (Height).
1. Ground Floor, Finished Floor. Height from finished floor to finished ceiling of primary rooms on the ground floor, not including secondary rooms such as bathrooms, closets, utility rooms, and storage spaces.
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
2. Ground Floor, Floor-to-Ceiling. Height from finished floor to finished ceiling of primary rooms on the floor(s) above the ground floor, not including secondary rooms such as bathrooms, closets, utility rooms, and storage spaces.
3. Primary Building. Height can be determined in two ways: to eave/parapet or maximum overall height. a. Overall. The vertical distance measured from the midpoint of the lowest and highest points of the structure adjacent to the finished grade to the highest point of the structure. b. Eave/Parapet. The vertical distance measured from the midpoint of the lowest and highest points of the structure adjacent to the finished grade to the highest eave of the building or top of parapet wall.
4. Number of Stories. The number of stories in a structure allowed above grade.
Figure 6.1.030.2 Height
I. I-Definitions.
Impervious Surface. A surface compacted or covered with a layer of material so it is highly resistant to infiltration of water.
J. J-Definitions. No specialized terms beginning with the letter J are defined at this time.
K. K-Definitions. No specialized terms beginning with the letter K are defined at this time.
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
L. L-Definitions.
Lined Building. See Section 3.3.140 (Lined Building)
Lot. A division of land separated from other divisions for purposes of sale, lease or separate use, described on a recorded subdivision plat, recorded map, or by metes and bounds and includes the terms "plat" and "parcel." See Figure 3 (Lot).
1. Corner. A lot that abuts the intersection of two or more streets at an angle of not more than 135 degrees. Where the angle of intersection exceeds 135 degrees, the area abutting the two streets shall be a front yard.
2. Interior. A lot which is not a corner lot.
Figure 6.1.030.3 Lot
Lot Coverage. The percentage of total lot area occupied by structures and impervious surfaces.
Lot Depth. The average linear distance between the front and the rear lot lines or the intersection of the two side lot lines if there is no rear line. The Director shall determine lot depth for parcels of irregular configuration.
Lot Frontage. The lot line(s) of a lot fronting a thoroughfare, other public way, or a civic space.
Lot Line. Any recorded boundary of a lot.
1. Front.
a. On an interior lot, the property line separating the lot from the street. b. On a corner lot, the shorter property line abutting a street. If the street-fronting lot lines of a corner lot are equal in length, the Director shall determine the front lot line. c. On a through lot, both lot lines are front lot lines and the lot is considered to have no rear lot line
2. Rear. The lot line which is opposite and furthest from the front lot line and does not intersect the front lot line. In the case of an irregular or triangle lot, the rear lot line is parallel to and at a maximum distance from the front lot line, having a minimum length of 10 feet.
3. Side. Any lot line that is not a front lot line or a rear lot line.
Lot Width. The horizontal distance between the side lot lines, measured at right angles to the depth at a point midway between the front and rear lot lines. The Director shall determine the lot width of an irregularly shaped lot.
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
Lot Width (Net). The lot width exclusive of driveways, right-of-ways, and easements.
M. M-Definitions.
Main Street (building). See Section 3.3.130 (Main Street Building).
Mid-Rise. See Section 3.3.150 (Mid-Rise Building).
Multiplex. See Section 3.3.080 (Multiplex: Small) and Section 3.3.090 (Multiplex: Large).
N. N-Definitions. No specialized terms beginning with the letter N are defined at this time.
O. O-Definitions.
Oriel Window. A window that projects from the building facade, located on upper floors and may extend for multiple stories.
P. P-Definitions.
Primary Street. A street intended to serve as the principal frontage for a project, to which the front facade and primary building entrance is oriented. Primary streets are intended to provide the greatest degree of pedestrian orientation and access, with less emphasis on vehicular access where it can be avoided.
Primary Use. The main purpose for which a lot is developed and occupied. Also, a principal use.
Q. Q-Definitions. No specialized terms beginning with the letter Q are defined at this time.
R. R-Definitions.
Regulating Plan. A map for a development that identifies transect zones to be applied to replace the existing zones and that identifies the civic and open space types, thoroughfare types, building types, and frontage types for the development. Upon approval of the development, the regulating plan's content is incorporated into the Hayward Zoning Map.
Review Authority. The individual or official City body (e.g., Planning Director, Planning Commission, City Council) identified by this Code as having the responsibility and authority to review and approve or deny a permit application.
Right-of-way. The strip of land dedicated to public use for pedestrian and vehicular movement, which may also accommodate public utilities, that is either publicly owned or subject to an easement for right -of-way purposes benefiting the general public. Right-of-way typically includes streets, alleys, sidewalks, landscape areas, and drainage facilities.
Rowhouse. See Section 3.3.100 (Rowhouse Building).
S. S-Definitions.
Screening. Landscaping, decorative fencing, architectural features, or wall, as allowed by the Downtown Zone, to obstruct the public view of either private area on a design site or of mechanical/utilitarian equipment that does not contribute positively to the streetscape.
Setback. The area measured from the lot line to a building facade or elevation that must be maintained open and unobstructed from finished grade to sky with the exception of specifically permitted encroachments. See Figure 4 (Setback).
1. Front. An area extending the full width of a lot between the front lot line and the front setback line.
2. Side. An area extending the full width of a lot between the side lot line and the side setback line.
3. Street Side. An area extending the full width of a lot between the street side lot line and the street side setback line.
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
4. Rear. An area extending the full width of a lot between the rear lot line and the rear setback line.
5. Parking. The mandatory clear distance between a lot line and parking.
Figure 6.1.030.4 Setback
Site Plan. A plan that is to scale and illustrates the proposed physical changes on a lot.
Stacked Flats Building. See Section 3.3.120 (Stacked Flats Building).
Stacking area. The stacking area is the space occupied by vehicles queueing for the service to be provided in a drive-through business.
State. The State of California.
Structure. Anything constructed or erected, except fences not exceeding six feet in height, which requires permanent location on the ground or is attached to something having location on the ground.
1. Accessory. A subordinate structure, the use of which is incidental and secondary to that of the main structure on the same lot. "Accessory structure" does not mean "Accessory Dwelling Unit."
2. Existing. A structure legally erected prior to the effective date of this Ordinance, or one for which a valid legal Building Permit has been issued before this effective date of this Ordinance.
T. T-Definitions. No specialized terms beginning with the letter T are defined at this time.
U. U-Definitions.
Use. The specific purposes for which land or a building is designated, arranged, or intended, or for which it is or may be occupied or maintained.
Unit. See "Dwelling Unit."
V. V-Definitions. No specialized terms beginning with the letter V are defined at this time.
W. W-Definitions. No specialized terms beginning with the letter W are defined at this time.
X. X-Definitions. No specialized terms beginning with the letter X are defined at this time.
Created: 2024-08-19 11:54:48 [EST]
(Supp. No. 23, Update 1)
Y. Y-Definitions. No specialized terms beginning with the letter Y are defined at this time.
Z. Z-Definitions. No specialized terms beginning with the letter Z are defined at this time.
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: PH 24-045
DATE: October 15, 2024
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT
Critical Municipal Facilities: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Power Purchase Agreement with Ava Community Energy to Install Solar and Battery Storage at Four City Facilities
RECOMMENDATION
That Council considers the proposed Power Purchase Agreement (PPA) and associated solar and battery installations; conducts a Public Hearing; and adopts a resolution authorizing the City Manager to negotiate and execute the PPA with Ava Community Energy.
SUMMARY
City staff have been working with Ava Community Energy to prepare plans and agreements for the installation of solar and batteries at four City facilities: Fire Station 1, Fire Sation 7, Corp Yard, and the Cinema Place parking structure. The installations would be financed through a Power Purchase Agreement (PPA) between the City and Ava Community Energy. The PPA 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. The Council Sustainability Committee (CSC) voted on September 16, 2024, to recommend approval of the project.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
CITY OF HAYWARD Printed on 10/11/2024Page 1 of 1
powered by Legistar™
DATE: October 15, 2024
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT Critical Municipal Facilities: Adopt a Resolution Authorizing the City Manager to Negotiate and Execute a Power Purchase Agreement with Ava Community Energy to Install Solar and Battery Storage at Four City Facilities
RECOMMENDATION
That Council considers the proposed Power Purchase Agreement (PPA) and associated solar and battery installations; conducts a Public Hearing; and adopts a resolution authorizing the City Manager to negotiate and execute the PPA with Ava Community Energy.
SUMMARY
City staff have been working with Ava Community Energy to prepare plans and agreements for the installation of solar and batteries at four City facilities: Fire Station 1, Fire Station 7, Corp Yard, and the Cinema Place parking structure. The installations would be financed through a Power Purchase Agreement (PPA) between the City and Ava Community Energy.
The PPA 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. The Council Sustainability Committee (CSC) voted on September 16, 2024, to recommend approval of the project.
BACKGROUND
East Bay Community Energy (EBCE) formed in 2016 as a joint powers authority to provide cleaner, greener energy at lower rates to Alameda County customers. EBCE started providing electricity to customers in 2018 and has expanded to include communities in San Joaquin County. In 2023, the name was changed to Ava Community Energy to better reflect the larger service territory. EBCE/Ava’s goals include local control and oversight, lower rates, driving investment in renewable energy, and improving resilience of local communities. To help advance these goals, Ava is offering a procurement program, called the Critical Municipal Facilities program, to deploy solar and battery energy storage systems at member agencies’ facilities.
On May 10, 20211, the Council Sustainability Committee (CSC) considered a report about the proposed procurement partnership with Ava Community Energy. The Committee voted unanimously to recommend that Council support the City’s participation in the program.
On June 15, 20212, Council adopted Resolution 21-107, authorizing the City Manager to pursue deployment of solar and battery energy systems at critical municipal facilities in partnership with Ava Community Energy.
Across Ava’s service area more than 300 critical municipal facilities were analyzed to determine the feasibility of solar and battery energy storage systems to meet critical loads in time of grid outages. Hayward staff contributed to this initial portfolio by submitting approximately twenty potential critical municipal facilities. From that list, eight sites in Hayward were initially considered as part of the Phase I procurement project portfolio.
Staff negotiated a PPA in 2021-2022 and Ava’s engineers did initial site visits in the spring of 2022. In 2023 and early 2024, Ava selected and negotiated with a financing entity, Green Bridge Energy, and a developer, Gridscape Energy Solutions. The project schedule will have the solar and battery equipment operational by April 2026, which is the deadline to retain NEM 2.0. Under Net Energy Metering 2.0, sites will receive 1-to-1 credits for every kWh of solar electricity delivered to the grid, which is financially favorable compared to the newer Solar Billing Plan that sites would otherwise fall under. To maintain the current schedule, the PPA must be executed by the end of 2024.
On September 16, 2024, the CSC considered the project and asked questions about:
• Construction schedule;
o Ava staff explained that construction will occur as fast as possible, however, Hayward is one of eight cities included in the portfolio of projects so there are many moving pieces.
• Cost savings;
o Staff responded that the project will save the City money over the 25-year term of the agreement.
• Future expansion to include additional facilities;
o Ava staff indicated they would like to have additional phases with additional cities and more projects.
• Potential interconnection delays with PG&E; and
o Ava staff explained that the deadline to maintain the NEM 2.0 tariff requires that construction be completed by April 2026 and if PG&E has delays on their side, it will not impact the project or the tariff.
• Potential impacts with future improvements to the Corp Yard. o Staff will ensure that the proposed solar and battery does not conflict with future improvements to the Corp Yard.
1 https://hayward.legistar.com/LegislationDetail.aspx?ID=4938515&GUID=C99D4D3A-8757-4323-A662-8EF467453E1F&Options=&Search= 2 https://hayward.legistar.com/LegislationDetail.aspx?ID=4983875&GUID=B7E2C26B-6C63-45A4-BA3D- A0C5C1DFCA43&Options=&Search=
With two members present, the Committee voted unanimously to recommend that Council approve the PPA and the four solar and battery installations.
DISCUSSION
There are 61 project sites across eight cities participating in this program. In addition to Hayward, the cities are Berkeley, Emeryville, Fremont, Livermore, Oakland, Pleasanton and San Leandro. Ava designed the Resilient Municipal Critical Facilities program to reduce barriers for local governments for the deployment of solar and storage by providing technical expertise and staff time and aggregating cities’ small solar projects into a larger portfolio to take advantage of bulk purchasing, streamlined contracting process, and better pricing. Recognizing these barriers, this procurement has the following goals and benefits:
• Reduce the burden and associated costs for both local governments and vendors by having Ava and its third-party engineering firms conduct initial site identification, evaluation, and design work prior to going out for contractor bids. • Reduce equipment costs by aggregating a higher volume of sites across multiple cities into a larger portfolio.
• Reduce vendor contracting costs by having Ava serve as a single counterparty for all participating local governments and sites in the portfolio. • Provide resiliency back-up for critical loads in the event of grid outages for sites with battery storage.
• Reduce the City’s energy bills through Time-of-Use (TOU) energy and demand charge reductions.
• Manage battery discharge during TOU periods to reduce both customer bills and Ava wholesale energy procurement requirements.
• Reduce reliance on existing diesel-powered generators, minimizing CO₂ equivalent emissions.
In addition to the above benefits, the proposed PPA would benefit Hayward in the following ways:
• Increase the City’s on-site solar generation capabilities and advance Hayward’s goal of achieving ZNE across its portfolio of facilities.
• No up-front or out-of-pocket costs to the City.
• Save money (compared to current and forecasted utility bills. • Electrical upgrades at the Corp Yard and Fire Station 1 will be included and paid for in the City’s monthly rate.
Ava began the site assessment process with a comprehensive list of Hayward’s critical facilities and excluded sites that already have solar. Adding batteries to sites that have solar is not cost effective at this time. Hayward staff excluded sites that are due for significant retrofitting, rebuilding or electrical upgrades. The four sites proposed for upgrades are:
Site PV Size
(kW DC)
% of Demand
Offset by PV
Battery Size
(kWh)
Hours of
Battery
Backup*
Fire Station 1 62 66% 154.8 5
Fire Station 7 72 70% 154.8 5.25
Corp Yard 51 92% 77.4 4.3
Cinema Place
Garage**
49 92% NA 0
* Note: Hours of battery backup are based on average load. The batteries could potentially provide infinite hours of backup if load is reduced to “essential operations”. ** Due to the lower electrical demand at the Cinema Garage, it was determined that battery storage is not feasible.
The primary objective of this program is to add resilience to municipal facilities, allowing them to operate emergency loads using solar and storage technologies during a grid outage. Battery systems will also allow facilities to “island”, or isolate, from the grid during a Public Safety Power Shutoff (PSPS) event or other grid outage. For the Fire Stations and Corp Yard, if electrical demand can be curtailed, the solar and storage can provide full back- up power. If electrical demand cannot be curtailed, the existing generators will operate to support the solar and storage. Microgrid controllers will be included to allow for the optimization of the solar and storage generation, reducing overall CO 2 emissions as well as
annual fuel cost savings.
Power Purchase Agreement (PPA) – With a PPA model, a PPA provider pays for the installation, operations and maintenance of the solar and battery energy storage systems, and the City pays an agreed upon price per kilowatt-hour (kWh) for power generated. Staff has negotiated the key terms of the PPA between the City and Ava Community Energy. Ava will contract with Green Bridge Energy as the project owner and contractual counterparty.
Green Bridge Energy has in turn selected Gridscape Solutions, based in Fremont, as its developer. With support from Gridscape, Green Bridge Energy will install, own, operate and maintain the solar and battery systems.
Key Terms of the PPA:
• There are no upfront costs to the City.
• The City will make monthly payments to Ava for the kilowatt hours of electricity received from the solar and batteries.
• 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. • Electrical upgrades at the Corp Yard and Fire Station 1 are needed in order to make them ready for solar and battery storage ready. The improvements will made by Gridscape and the cost will be included in the City’s monthly payments to Ava. • The City will only pay for the electricity received from the systems. Furthermore, if the equipment delivers less than 85% of the expected annual power output from the
system, Ava would make cash payments to the City to offset the City’s costs in procuring needed power. This provision provides additional incentive to Ava and in turn GreenBridge/Gridscape to maintain the systems in good working order. • Gridscape will ensure that all contractors, subcontractors, and employees hired or contracted by Gridscape which will perform work on the projects will be paid prevailing wages.
Single Source Procurement – The proposed PPA with Ava Community Energy, described above, is a single source procurement. Staff recommends that the City utilize California Government Code Section 4217.10, which allows for the expedited procurement of energy conservation projects by municipal agencies as long as the energy project is determined to provide financial savings over the operating lifetime.
Specifically, Code Section 4217.10 et seq3 authorizes public agencies to enter into an energy service contract without competitive bidding, provided that there is a two-week public notice before the authorization of the procurement and the cost of the conservation services provided by an energy conservation facility will be less than the anticipated marginal cost of energy that would have been consumed in the absence of the project.
FISCAL IMPACT
The proposed projects will have a positive impact on the City’s General Fund. The City currently pays approximately $147,000 for electricity at the four sites annually. Assuming rates increase at three percent per year, the City would pay approximately $5.4 million for electricity for the four sites over the next 25 years. Ava estimates the four proposed projects will generate savings between $600,000 and $800,000 over the life of the PPA.
ECONOMIC IMPACT
The Critical Municipal Facilities Program is not expected to have a significant impact on the local economy; however, contractors involved in the construction of the projects will be required to pay prevailing wages. The primary developer of the projects will be Gridscape Solutions, a company based in Fremont.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority to Champion Climate Resilience & Environmental Justice, and specifically relates to implementation of the following Projects:
Reduce Greenhouse Gases and Dependency on Fossil Fuels:
Project CP1: Implement Year 1 Programs from the adopted GHG Roadmap (Climate Action Plan).
3 https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=5.&title=1.&part=&chapter=3.2.&article=
SUSTAINABILITY FEATURES
Increasing solar and battery energy storage system deployment supports Hayward’s long term GHG reduction goals and other General Plan policies. In 2016, Council adopted Resolution 16-219 stating a goal to “achieve zero net energy (ZNE) for electricity and natural gas use on a portfolio-wide basis by 2025” . Across the City’s portfolio of municipal facilities, Hayward currently produces approximately 65% of total electricity demand. With the four proposed projects, staff estimates that total renewable generation will be approximately 68% of total municipal electricity use.
On a day-to-day basis, the onsite solar will reduce GHG emissions and batteries will shift energy usage from peak times, thereby reducing the need for gas-fired power plants to come online to meet demand. During power outages, the solar and battery energy storage systems will increase community resilience and lessen the need for diesel generators for back-up power.
ENVIRONMENTAL REVIEW
The proposed project is categorically exempt from environmental review in accordance with the California Environmental Quality Act (CEQA) pursuant to Section 15301, Class 1 (Minor Alteration of Existing Facilities), of the CEQA Guidelines.
PUBLIC CONTACT
Agencies utilizing the expediated procurement process allowed by California Government Code Section 4217.10 requires the City to hold a public hearing that is posted two weeks in advance. A public hearing notice was published in the Daily Review newspaper on September 27, 2024.
NEXT STEPS
Upon Council’s approval, staff will work with Ava Community Energy to complete the projects per the following tentative schedule.
November 2024 Submit Permit applications
December 2024 Execute PPA
Q1 2025 Permits issued
Q2 2025 Materials delivered onsite
Q2 2025 - Q1 2026 Construction
April 2026 Systems Operational
Prepared by: Erik Pearson, Environmental Services Manager
Recommended by: Alex Ameri, Director of Public Works
Approved by:
_____________________________________________
Dustin Claussen, Interim City Manager
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 24-____
Introduced by Council Member _____________
RESOLUTION AUTHORIZING THE CITY MANAGER TO NEGOTIATE AND
EXECUTE A POWER PURCHASE AGREEMENT WITH AVA COMMUNITY
ENERGY FOR THE DEPLOYMENT OF SOLAR AND BATTERY ENERGY
SYSTEMS AT CRITICAL MUNICIPAL FACILITIES
WHEREAS, on December 6, 2016, the City of Hayward City Council adopted Ordinance 16-21 authorizing Hayward’s participation in Alameda County’s Community Choice Energy program known as East Bay Community Energy (EBCE); and
WHEREAS, on December 6, 2016, Council adopted Resolution 16-219, establishing a goal of zero net energy (ZNE) across the City’s portfolio of facilities by 2025; and
WHEREAS, on January 15, 2019 the City of Hayward declared a climate emergency and requested regional collaboration on an immediate just transition and emergency mobilization effort to restore a safe climate; and
WHEREAS, on June 16, 2020, Council adopted new GHG emission targets of 30% below 2005 levels by 2025, 55% below 2005 levels by 2030 and carbon neutrality by 2045; and
WHEREAS, on March 6, 2018, Council voted to designate the Brilliant 100 (100% GHG-free) electric service plan from EBCE for all for all Hayward’s municipal facilities; and
WHEREAS, on November 10, 2020, Council voted to designate Renewable 100 (100% wind and solar) electric service plan from EBCE for all Hayward’s municipal facilities; and
WHEREAS, s olar 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, on June 15, 2021, Council adopted Resolution 21-107, authorizing the City Manager to pursue deployment of solar and battery energy systems at critical municipal facilities in partnership with East Bay Community Energy; and
ATTACHMENT II
WHEREAS, in October 2023, East Bay Community Energy changed its name to Ava Community Energy; and
WHEREAS, City staff worked with Ava staff to develop preliminary plans for solar and batteries at four City facilities: Fire Station 1, Fire Sation 7, Corp Yard, and the Cinema Place parking structure; and
WHEREAS, the draft Power Purchase Agreement (PPA) between the City and Ava Community Energy would allow a third -party developer to own, operate, and maintain the generating equipment and the City would agree 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, on September 16, 2024, the Council Sustainability Committee voted unanimously to recommend that Council approve the PPA and the four solar and battery installations; and
WHEREAS, the proposed PPA with Ava Community Energy, is an expedited single source procurement, which is allowed by California Government Code Section 4217.10 provided that the energy project is determined to provide financial savings over the operating lifetime; and
WHEREAS, California Government Code Section 4217.10 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 Daily Review newspaper on September 27, 2024.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Hayward hereby authorizes and directs the City Manager to negotiate and execute the PPA with Ava Community Energy and facilitate the installation of solar and batteries at the four City facilities.
ATTACHMENT II
IN COUNCIL, HAYWARD, CALIFORNIA , 2024
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: ______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
_________________________________________
City Attorney of the City of Hayward
CITY OF HAYWARD
Hayward City Hall
777 B Street
Hayward, CA 94541
www.Hayward-CA.gov
File #: LB 24-022
DATE: October 15, 2024
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
City’sProcurement Policies: Adopt a Resolution Approving Updates to the City of Hayward Procurement Policy
RECOMMENDATION
That the Council reviews and adopts a resolution approving the proposed changes to the City’s procurement policies.
SUMMARY
To align City policies and procedures with current best practices, staff has conducted a thorough review of the Procurement Guidelines manual (manual), which reflects current City purchasing and procurement policies. The manual is an internal document that provides guidance on internal City operations and includes procurement policies established through City Council approval.
Staff proposes that Council consider changes to the threshold and expenditure authority levels. The proposed changes impact the competitive bidding process requirements, as well as authority thresholds of the City Manager. Additionally, proposed changes include establishing signatory authority for the City Attorney for expert witness, settlement claim payments, and outside legal counsel. The proposed changes attempt to correct for inflation while improving effectiveness, efficiency, and consistency within the City’s procurement processes while maintaining appropriate oversight and controls. These changes are in keeping with the related provisions of the City Charter, Article XIII, Sections 1302, 1303, and 1304. Staff presented the Council and Budget Finance Committee with recommended changes on September 18, 2024, and received feedback and direction incorporated into the final recommendation.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution
Attachment II Exhibit A: Threshold Category of Purchases CITY OF HAYWARD Printed on 10/11/2024Page 1 of 2
powered by Legistar™
DATE: October 15, 2024
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT: Adopt a Resolution Approving Updates to the City of Hayward Procurement Policy
RECOMMENDATION
That the Council reviews and adopts a resolution approving the proposed changes to the City’s procurement policies.
SUMMARY
To align City policies and procedures with current best practices, staff has conducted a thorough review of the Procurement Guidelines manual (manual), which reflects current City purchasing and procurement policies. The manual is an internal document that provides guidance on internal City operations and includes procurement policies established through City Council approval.
Staff proposes that Council consider changes to the threshold and expenditure authority levels. The proposed changes impact the competitive bidding process requirements, as well as authority thresholds of the City Manager. Additionally, proposed changes include establishing signatory authority for the City Attorney for expert witness, settlement claim payments, and outside legal counsel. The proposed changes attempt to correct for inflation while improving effectiveness, efficiency, and consistency within the City’s procurement processes while maintaining appropriate oversight and controls. These changes are in keeping with the related provisions of the City Charter, Article XIII, Sections 1302, 1303, and 1304. Staff presented the Council and Budget Finance Committee with recommended changes on September 18, 2024
, and received feedback and direction incorporated into the final recommendation1.
BACKGROUND
The City’s purchasing and procurement policies were last updated in November 2015. In response for the need to enhance the City’s procurement and accounts payable processes, the City solicited proposals to perform a thorough assessment of the City’s current processes.
Resulting from the RFP process, the City contracted with the 65 th North Group, who
1 CITY OF HAYWARD - File #: ACT-067 (legistar.com)
conducted a Purchasing and Accounts Payable Process Assessment. As part of the assessment, it was recommended that the City consider updating its current purchasing threshold approval authorities, including proposed changes to formal bidding requirements.
On September 18, 2024, staff presented the consultant’s recommended changes to the City’s current purchasing threshold approval authorities to the Council and Budget Finance Committee (Committee) for its review and guidance. The recommendations reflected proposed changes to the City’s formal bidding requirements and purchasing threshold approval authorities.
The Committee supported the recommendation to increase purchasing thresholds for formal bidding process requirements (non-construction projects). However, the Committee provided feedback on the recommended increase in threshold authority for the City Manager and City Attorney. Based on the City’s current business activities, and comparison to other Bay Area cities, the Consultant recommended setting the threshold of authority at $150,000 for the City Manager and City Attorney. While the majority of the benchmarked Bay Area cities were set at $100,000, the Consultant’s recommendation reflected raising costs and current business activities within the City of Hayward to support the higher threshold amount. The Committee supported the increase in threshold authority for the City Manager and City Attorney to be set at $100,000; an increase from the current threshold of $75,000.
DISCUSSION
During the assessment of the City’s procurement and accounts payable process, the consultant recommended that the City consider updating its current purchasing threshold approval authorities. The last update to this policy was conducted in November 2015. A number of factors have contributed to the recommendation to update the thresholds, including benchmarking with other Bay Area cities. The following recommendations are presented for the Committee’s review and consideration:
1. Bid requirements
2. Thresholds City Manager and City Attorney
Proposed Changes to Bid Requirements
It is appropriate for the City’s procurement policy to establish levels to determine the type of competitive process necessary to make a purchase. The proposed changes increase the threshold for formal bidding, thereby increasing operational efficiency and reducing staff time by eliminating the volume of time-intensive procurement procedures for lower dollar expenditures. These changes are in keeping with procurement best practices and are similar to levels established by other local cities.
Chart 1: FY 2024 Purchase Orders
As shown in the Chart 1, in FY 2024 the City issued 2,528 purchase orders. Purchase orders for goods and services less than $100,000 make up 97% of the total purchase orders issued in FY 2024. The proposed policy change will increase operational efficiency without jeopardizing fiscal oversight. While most purchases will not be required to follow the stringent guidelines set forth with the formal bidding process, all purchases under the proposed threshold changes will still require that an informal process be conducted to ensure competitive pricing by obtaining quotes for goods and services. Tables 1 provides a comparative summary of the current threshold amounts as it relates to formal bidding requirements.
Table 1: Increase Threshold for Formal Bidding
Type Current Threshold Proposed Threshold
Supplies & Equipment $75,000 $100,000
External Services $50,000 $100,000
Purchases greater than or equal to $100,001 for supplies and equipment, repair/maintenance, and greater than or equal to $100,001 for consultant services will require a more stringent and formal process for which one of the following two methods of solicitation will be required:
• Competitive Bid: Focuses on obtaining the lowest possible price • Competitive Process: Focuses on obtaining the best possible value
Competitive Bids are for purchases where value dictates formal competition. An Invitation to Bid (ITB) is the solicitation package in the bid process. For example, construction projects often require a competitive bid, which would result in an ITB. A Competitive
Process would result in the solicitation of a Request for Proposal (RFP). For example, consultant services often require a competitive process, resulting in the issuance of an RFP.
Both require a minimum response period of ten (10) calendar days for vendor responses; however, common practice allows for longer response time to increase the volume and quality of bids received.
Table 2 provides a comparative summary of the current threshold categories of purchases by varying authority levels and corresponding requirements based on authority threshold amounts.
Table 2: Threshold Category of Purchases
Proposed Changes to Thresholds City Manager and City Attorney
The City’s procurement policy – as authorized each year in the annual budget resolution – establishes that the City Manager may approve professional services contracts up to $75,000 without Council approval. Hayward has one of the lowest City Manager approval thresholds relative to neighboring East Bay municipalities. This comparative discrepancy is understandable considering the current thresholds were enacted over nine years ago. The City Manager approval thresholds no longer provide the desired monetary threshold intent. Table 3 provides a summary of benchmark cities on current thresholds.
Table 3: Benchmark Cities - City Manager Thresholds
Municipality Council Approval Threshold
Alameda Up to $75,000
Hayward Up to $75,000
San Mateo Up to $100,000
Fremont Up to $100,000
San Leandro Up to $100,000
Redwood City Up to $106,000
Based on guidance and support from the Committee, staff recommend that the City Manager approval threshold for professional services/consultant contracts be increased to $100,000. Additionally, staff recommend that the City Attorney approval threshold be set at $100,000 for expert witness, settlement claim payments, and outside legal counsel. The proposed change will allow for increases in operational efficiency without jeopardizing fiscal oversight, while improving provision of services to the Hayward community.
ECONOMIC IMPACT
Approval of the attached resolution will not have an economic impact on our community.
STRATEGIC ROADMAP
This agenda item is an operational item and does not specifically relate to any of the six priorities outlined in the Council’s Strategic Roadmap.
FISCAL IMPACT
There is no fiscal impact associated with the proposed changes in policy.
PUBLIC CONTACT
Staff met with the Council and Budget Finance Committee during a public meeting on September 18, 2024. During that meeting, staff presented a recommendation and received feedback from the Committee on proposed changes to the policy.
NEXT STEPS
Upon approval of the attached resolution, the Purchasing Policy will be effective immediately.
Prepared by: Rita Perez, Purchasing Manager
Recommended by: Nicole Gonzales, Director of Finance
Approved by:
____________________________
Dustin Claussen, Interim City Manager
ATTACHMENT II
HAYWARD CITY COUNCIL
RESOLUTION NO. 24 -
Introduced by Council Member
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HAYWARD
UPDATING THE CITY'S PROCUREMENT POLICIES THAT INCLUDES
INCREASING THE APPROVAL THRESHOLD FOR THE CITY MANAGER TO EXECUTE CONTRACTS; MODIFYING BID THRESHOLD REQUIREMENTS; AND
UPDATING THE CITY'S LOCAL PREFERENCE POLICY
WHEREAS, the Hayward City Charter, Article XIII, Sections 1302 establishes the authority for the City to use centralized purchasing for all City departments, offices and agencies; and
WHEREAS, the Hayward City Charter, Article XIII, Sections 1303 establishes requirements and procedures for competitive bidding upon and award of contracts for public works, which related policies have not been modified since 2015; and
WHEREAS, Pursuant to current City Council Resolution No. 15-216, the City Manager may execute certain consultant and contractor contracts up to $75,000 without City Council authority, which has not been modified since 2015; and
WHEREAS, pursuant to the Hayward Municipal Code, the current procurement policies and include provisions for Local Preference for goods.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hayward that Resolution No. 15-216 is amended to increase the level for which the City Manager and City Attorney can execute contracts up to $ 100,000 for Supplies and Equipment, Repairs and Maintenance and External Services (consultants and contractors) without additional City Council approval.
BE IT FURTHER RESOLVED that the City's bidding threshold requirements are amended pursuant to Exhibit A.
BE IT FURTHER RESOLVED that the City's procurement process shall be established on these overarching principles: ethical and accountable stewardship of public funds; fair and open competition in procurement processes; provision of the best value and highest quality possible to the citizens of Hayward; support of City Council Priorities; and as appropriate, stimulating the local economy by extending preferences to local Hayward vendors.
IN COUNCIL, HAYWARD, CALIFORNIA October 15, 2024.
ADOPTED BY THE FOLLOWING VOTE:
AYES: COUNCIL MEMBERS:
MAYOR:
NOES: COUNCIL MEMBERS:
ABSTAIN: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
ATTEST: _______________________________________
City Clerk of the City of Hayward
APPROVED AS TO FORM:
__________________________________________
City Attorney of the City of Hayward
Approval Authority P urpose C urrent Amount R ecommended Amount D
epartment Director V
erbal quotations from competitive suppliers $7,500 OR LESS $25,000 OR LESS Department Director S olicitation of at least three sources $7,501-$50,000 $25,001 - $99,999 City Manager Fo rmal bid procedure required $50,001 - $75,000 $100,000 City Manager & City Council Fo rmal bid procedure required $75,000 $100,001 OR GREATER Approval Authority P urpose C urrent Amount R ecommended Amount D
epartment Director V
erbal quotations from competitive suppliers $50,000 or less $100,000 or less Department Director & City Manager Fo rmal bid procedure required $50,001-$75,000 $100,000 City Manager & City Council Fo rmal bid procedure required $75,001 OR GREATER $100,001 OR GREATER Approval Authority P urpose C urrent Amount R ecommended Amount D
epartment Director V
erbal quotations from competitive suppliers $2,500 or less No Change Department Director S olicitation of at least three sources $2,501-$15,000 No Change Department Director & City Manager Fo rmal bid procedure required $15,001 - $35,000 No Change City Manager & City Council Fo rmal bid procedure required $35,001 OR GREATER No Change Approval Authority P urpose C urrent Amount R ecommended Amount City Manager Contract Signatory Authority $75,000 $100,000 Approval Authority P urpose C urrent Amount R ecommended Amount City Attorney Contract Signatory Authority n/a $100,000 Expert Witnesses, Settlement Claim Payments & Contract Attorneys Supplies & Equipment General Purchases
External Services (Consultants & Contractors)
Approval Authority for all non-construction projects
Recommended increases to the approval authority for CMO &CAO Repair, Maintenance, Routine Work (as defined by PCC 20161, 20162, & 20656) Public Projects (as defined by PCC 22002 PW CIP, Non-Maint. Work)
ATTACHMENT IIA
EXHIBIT A