CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
1/27/2025
1 SUBJECT:
Peninsula Clean Energy Solar Photovoltaic System Procurement RECOMMENDED ACTION:
Adopt a Resolution authorizing the City Council of the City of Pacifica Approving the Power Purchase Agreement (PPA) to install a Solar Photovoltaic System (Solar PV System) at the Pacifica Civic Center Community Development and Engineering (CDE) building and new carport structure with Peninsula Clean Energy and authorize the City Manager to execute all documents related to the project.
STAFF CONTACT:
Roland Yip, DPW Deputy Director
(650) 738-3771
[email protected]
John Mullins, Interim DPW Director
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
At a January 10, 2022 City Council Study Session, the City Council provided the City Manager with direction regarding the City’s participation in Peninsula Clean Energy’s (PCE) public facility solar and battery storage procurement process. PCE has collaborated with its Joint Power Authority (JPA) members, including the City of Pacifica, to identify candidate critical facilities and develop Solar PV System designs for these sites. At its expense, PCE engaged an established independent engineering firm via competitive solicitation and, working with City staff, determined the feasibility of a Solar PV System for the Pacifica Civic Center CDE building and a new carport structure. In addition, PCE’s structural engineering consultant has analyzed the existing roof and has determined it would be able to carry the additional load of the PV system.
PCE is a Community Choice Aggregation agency and is the official electricity provider for San Mateo County. As a community-led, not-for-profit agency, PCE makes significant investments in its communities to expand access to sustainable and affordable energy solutions. PCE has piloted an aggregate procurement model for public facilities to help reduce the costs and complexities for its public partners. PCE will manage the procurement process, financing, installation, operations, and maintenance with no upfront cost to the City. The City previously participated with the Community Center PV system and intends to participate with additional facilities in subsequent rounds.
PCE will install a 100.6 kilowatt of direct current (kWdc) system at the Civic Center CDE building roof and parking lot carport module as part of the PPA. The City will be charged a flat rate of $0.244 per kilowatt- hour (kWh) for the next 20 years, resulting in projected savings of $429,000 in that timeframe. The PPA rate is “at cost” by PCE to cover equipment and installation with a Pacifica City Council 2
January 27, 2025
small fee per kWh to cover their expenses. The PPA rate is a rate lower than the current and estimated future price per kWh the City would pay for that same energy from the utility companies. PCE will maintain full transparency with the City about all salient aspects of the project’s financials. The preliminary site layout and financial savings is provided in Attachment 1.
ANALYSIS:
Solar PV Systems provide carbon-free renewable electricity to buildings and can meaningfully reduce electric bills.
The benefits of this project include:
• PCE will merge and coordinate the installation of the Solar PV System project with the EV Charging Station project;
• PCE has evaluated facilities with its engineering services partner and determined a feasible design for a Solar PV System;
• PCE performed an independent engineering assessment of the Civic Center CDE building roof to confirm structural ability to support Solar PV equipment; • The City will obtain financial and environmental benefits of a Solar PV System with no upfront costs and without incurring the staff time, cost, and complexity of conducting its own solicitation for design and structural assessment, hiring, and managing consultants, and overseeing construction and maintenance; • PCE will execute all aspects of the procurement process; • PCE will administer the construction and maintenance of the Solar PV System; • The City will create local, renewable energy to advance its sustainability goals; • The City will hedge against rising utility rates, which over the course of a 20+ year system life is expected to be significant.
The California Public Utilities Commission (CPUC) approved NEM 3.0, also known as the Solar Billing Plan, a new version of the net energy metering policy that took effect on April 15, 2023 and changes the Net Energy Metering (NEM) tariffs governing solar PV resources. NEM 3.0 is less advantageous for solar and negatively affects project economics. In the past, projects that had reached a defined stage were grandfathered in the previous tariff. If approved, this PPA will be grandfathered under NEM 2.0, the previous tariff policy. As such, it is important to deploy projects as soon as possible. If the deployment of Solar PV Systems from this procurement do not provide a net benefit to the City, PCE would have the right to terminate this program at no cost or obligation to the City.
This project is consistent with general climate action goals for City operations and demonstrates environmental leadership and sustainable development by the City, saves money, promotes green jobs, and complies with state environmental initiatives. Although the Climate Action and Adaptation Task Force is still working on the City’s new Climate Action and Adaptation Plan, this project is likely to help fulfill goals of that plan.
At the January 10, 2022 Study Session, a question was asked if the Solar PV System’s performance would degrade over time due to proximity to the ocean. Solar PV Systems are maintenance free for the first 20-25 years. The inverters of the system last as long as the panels. The Pacifica Wastewater Treatment plant, which is close to the ocean, has an array of PV panels which offsets the electrical usage by up to 18%. Staff found that there was no appreciable degradation of the panel equipment or electrical output due to ocean proximity based on visual assessment and review of performance following panel cleaning.
If the City Council is supportive of moving forward with the Solar PV System, the City Manager Pacifica City Council 3
January 27, 2025
recommends adopting the attached resolution to pursue a PPA with PCE to participate in PCE’s public facility solar procurement process.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
The installation of a Solar PV System is consistent with the following Council adopted Goals:
• Enhance organizational and fiscal stability: Installation of a Solar PV System would promote economic sustainability.
• Pursue climate change adaptation and mitigation: This project would promote energy efficiency and renewable energy and is likely consistent with and is consistent with the City’s forthcoming new Climate Action and Adaptation Plan.
FISCAL IMPACT:
There is no expected upfront cost to the City for the project. The Solar PV System is expected to provide cost savings which are likely to grow over time due to avoided increases in utility costs. Current utility costs are expected to rise as much as 5% or more per year according to proposals by Pacific Gas & Electric at the California Public Utilities Commission.
The Solar PV Systems would be financed through a Power Purchase Agreement (PPA) with PCE. With a PPA model, PCE will arrange for the installation, operations and maintenance of the Solar PV System, and the City would pay an agreed upon price of $0.244 per kWh for power generated throughout the system’s life. The PPA will be provided “at cost” by PCE to cover equipment and installation with a small fee per kWh to cover their expenses.
ORIGINATED BY:
Public Works
ATTACHMENT LIST:
PCE PPA CIVIC CENTER Attachment 1 Financial Savings (PDF) PCE PPA CIVIC CENTER Attachment 2 PPA (PDF)
Pacifica City Council 4
January 27, 2025
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING THE
POWER PURCHASE AGREEMENT TO INSTALL A SOLAR PHOTOVOLTAIC SYSTEM AT
THE PACIFICA CIVIC CENTER COMMUNITY DEVELOPMENT AND ENGINEERING
BUILDING AND NEW CARPORT STRUCTURE WITH PENINSULA CLEAN ENERGY AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED TO THE
PROJECT
WHEREAS, the City Council of the City of Pacifica 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, this project is consistent with general climate action goals for City operations and demonstrates environmental leadership and sustainable development by the City, saves money, promotes green jobs, and complies with state environmental initiatives; and WHEREAS, a Community Choice Aggregation program is a mechanism by which local governments assume responsibility for providing electrical power for residential and commercial customers in their jurisdiction in partnership with local commercial energy purveyors and owners of transmission and distribution facilities, which in the case of San Mateo County is Pacific Gas & Electric Co.;
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Pacifica that the City Manager of the City of Pacifica is authorized to execute the Power Purchase Agreement with Peninsula Clean Energy to install a Solar Photovoltaic System at the Pacifica Civic Center Community Development and Engineering building. • • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 27th day of January, 2025, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
___________________
Sue Beckmeyer, Mayor
ATTEST: APPROVED AS TO FORM:
____________________ ________________________
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney