“Pre-existing Environmental Conditions ” means any: (i ) violation of, breach of or non -compliance with any Environmental Laws with respect to the Premises that first existed, arose or occurred on or prior to Provider’s commencement of construction at the Premises and (ii) the presence or release of, or exposu re to, any Hazardous Materials at, to, on, in, under or from the Premises that first existed, arose or occurred on or prior to Provider’s commencement of construction at the Premises.
“Premises” means the premises described in Schedule 1 of the Special Conditions. The Premises includes the entirety of any structures and underlying real property located at the address in Schedule 1 of the Special Conditions. “Provider” has the meaning set forth in the Special Conditions. “Provider Default” has the meaning s et forth in Section 11.1(a). “Provider Indemnified Parties ” has the meaning set forth in Section 16.2. “Purchase Date” means the first Business Day that occurs after the applicable purchase date set forth in Schedule 3 of the Special Conditions .
“Purchaser ” has the meaning set forth in the preamble to the Special Conditions. “Purchaser Default” has the meaning set forth in Section 11.2(a). “Purchaser Indemnified Parties ” has the meaning set forth in Section 16.1. “Renewal Term” if applicable, has the meanin g set forth in Section 2 of the Special Conditions . “Representative ” has the meaning set forth in Section 15.1. “Security Interest ” has the mean ing set forth in Section 8.2(a). “Site-Specific Requirements ” means the site-specific information and requirements as may be set forth in Schedule 6 of the Special Conditions.
“Special Conditions ” means each Energy Services Agreement, excluding these General Terms and Conditions. “Stated Rate” means a rate per annum equal to the lesser of (a) the “prime rate” (as reported in The Wall Street Journal) plus two percent (2%) or (b) the maximum rate allowed by Applicable Law. “System” has the meaning set forth in Schedule 1 of the Special Conditions. “System-based Incentives ” means any accelerated depreciation, installation or production -based incentives, investment tax credits and subsidies including, but not limited to, the subsidies in Schedule 1 of the Special Conditions and all other related subsidies and incentives.
“System Operations ” means Provider’s operation, maintenance and repair of the System performed by Provider or for Provider (by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be insta lled) in accordance with the requirements herein. “Term” means the Initial Term, and the subsequent Renewal Term(s), if any. “Term Year” means a twelve (12) month period beginning on the first day of the Term and each successi ve twelve (12) month period th ereafter.
“Termination Date ” means the date on which this Agreement ceases to be effective, including on an Early Termination Date or the Expiration Date.
1.2 Interpretation . The captions or headings in these General Terms and Conditions are strictly for convenience and shall not be considered in interpreting th is Agreement. Words in th is Agreement that impart the singular connotation shall be interpreted as plural, and words that impart the plural connotation shall be interpreted as singular, as the identity of the parties or objects referred to may require. The words “include”, “includes”, and “including” mean include, includes, and including “without limitation” and “without limitation by specification.” The words “hereof”, “herein”, and “hereunde r” and words of similar import refer to th is Agreement as a whole and not to any particular provision of th is Agreement. Except as the context otherwise indicates, all references to “Articles” and “Sections” refer to Articles and Sections of these General Terms and Conditions.
2. TERM AND TERMINATION.
2.1 Term. The Initial Term is as specified in the Special Conditions.
2.2 Early Termination.
(a) Purchaser may terminate th is Agreement prior to any applicable Expiration Date for any reason upon sixty (60) d ays’ prior written notice. If Purchaser terminates the Agreement prior to the Expiration Date of the Initial Term, Purchaser shall pay, as liquidated damages, the Early Termination Fee set forth on Schedule 3, Column 1 of the Special Conditions, and Provider shall cause the System to be disconnected and removed from the Premises in accordance with Section 2.4. Upon Purchaser’s payment to Provider of the Early Termination Fee, th is Agreement shall terminate automatically.
(b) Purchaser may (i) if Provider fails to commence construction by the Guaranteed Construction Start Date, be entitled (as its sole remedy) to Delay Liquidated Damages not to exceed $22.5/ kW (DC) of the estimated nameplate capacity of the System (as set forth in Schedule 1 of the Special Conditions) , (ii) terminate this Agreement with no liability whatsoever , including, but not limited to the Early Termination Fee, if Provider fails to commence construction of the System by the date that is ninety (90) days after the Guaranteed Co nstruction Start Date , or (iii) if Provider fails to achieve Commercial Operation by the Guaranteed Commercial Operation Date, be entitled (as its sole remedy) to Delay Liquidated Damages not to exceed $15/kW (DC) of the estimated nameplate capacity of the System (as set forth in Schedule 1 of the Special Conditions) , plus (if Installation Work had commenced at the Premises as of the date of termination) any costs reasonably incurred by Purchaser to return its Premises to its condition prior to commencement of the Installation Work. Further, Purchaser may terminate this Agreement with no liability whatsoever , including, but not limited to the Early Termination Fee, if Provider fails to commence Commercial Operation by the date that is sixty ( 60) days after the Guaranteed Commercial Operation Date. The Guaranteed Construction Start Date and Guaranteed Commercial Operation Date shall be extended on a day -for-day basis if any of the following occurs: (x) notwithstanding Provider’s commercially reasonable effor ts, interconnection ap proval is not obtained within sixty (60) days after the Effective Date , provided that interconnection applications are submitted within 45 days of the later of (a) the Effective Date and (b) finalization of the S ystem layout , (y) a Force Majeure Event occurs or for any delays by the Local Electric Utility or (z) an occurrence of any other unforeseeable event outside of Provider’s reasonable control , provided that Provider makes reasonable efforts to mitigate the impact of such event s on the Guaranteed Construction Start Date or Guaranteed Commercial Operation Date (as applicable).
Any such extension pursuant to subsection ( z) shall be subject to the approval of Purchaser which shall not be unreasonably withheld, conditioned or delay ed.
2.3 Purchase Option .
(i) On any Purchase Date, so long as a Purchaser Default shall not have occurred and be continuing, Purchaser has the option to purchase the System for a purchase price (the “ Option Price”) equal to the greater of (a) the Fair Market Value of the System as of the Purchase Date, or (b) the Early Termination Fee as of the Purchase Date, as specified in Schedule 3, Column 2 of the Special Conditions. To exercise its purchase option, Purchaser shall, not less than one hundred and eighty (180) days prior to the proposed Purchase Date, provide written notice to Provider of Purchaser ’s intent to exercise its option to purchase the System on such Purchase Date. Within thirty (30) days of receipt of Purchaser ’s notice, Provider shall specify the Option Price, and provide all calculations and assumptions supporting said Option Price to Purchaser. Purchaser shall then have a period of thirty (30) days after notification to confirm or retract its decision to exercise the purch ase option or, if the Option Price is equal to the Fair Market Value of the System, to dispute the determination of the Fair Market Value of the System. In the event
Purchaser confirms its exercise of the purchase option in writing to Provider (whether before or after any determination of the Fair Market Value determined pursuant to Section 2.3(ii)), (i) the Parties shall promptly execute all documents necessary to (A) cause title to the System to pass to Purchaser on the Purchase Date, free and clear of a ny Liens, and (B) assign all vendor warranties for the System to Purchaser , and (ii) Purchaser shall pay the Option Price to Provider on the Purchase Date, such payment to be made in accordance with any previous written instructions delivered to Purchaser by Provider or Provider’s Financing Party, as applicable, for payments under th is Agreement. Upon execution of the documents and payment of the Option Price, in each case as described in the preceding sentence, th is Agreement shall terminate automatically. Payment of the Option Price shall be in lieu of and instead of any payments as described in Section 2.2 hereof. In the event Purchaser retracts its exercise of, or does not timely confirm, the purchase option, th e provisions of th is Agreement shall be applicable as if Purchaser had not exercised any option to purchase the System.
(ii) Determination of Fair Market Value . If the Option Price indicated by Provider in accordance with Section 2.3(i) is equal to the Fa ir Market Value (as determined and demonstrated by supporting documentation provided by Provider) and Purchaser disputes such stated Fair Market Value within thirty (30) days of receipt of such notice from Provider, then the Parties shall mutually select a n independent appraiser with experience and expertise in the Energy Services industry. Such appraiser shall have expertise and experience in valuing photovoltaic system s, resale markets for such systems and related environmental attributes, and shall act reasonably and in good faith to determine Fair Market Value and shall set forth such determination in a written opinion delivered to the Parties. The valuation made by the appraiser shall be binding upon the Parties in the absence of fraud or manifest err or; however, if Purchaser in good faith disputes the valuation made by the appraiser, Purchaser shall have the right to retract its decision to exercise the Purchase Option . The costs of the appraisal shall be borne by Purchaser if such appraisal results in a value equal or greater than the value provided by Provider pursuant to Section 2.3(i); otherwise, the Parties shall equally share such cost.
2.4 Removal of System at Expiration . Subject to Purchaser ’s exercise of its purchase option under Section 2.3, upon the expiration or earlier termination of th is Agreement, Provider shall, at Provider’s expense, remove all of its tangible property comprising the System from the Premises on a mutually convenient date but in no case later than ninety (90) days afte r the Termination Date. The Premises shall be returned to its original condition, except for System mounting pads or other support structures on roof-mounted systems only, and ordinary wear and tear. If the System is to be located on a roof, then i n no case shall Provider’s removal of the System affect the integrity of Purchaser ’s roof, which shall be as leak proof as it was prior to removal of System (other than ordinary wear and tear).
For purposes of Provider’s removal of the System, Purchaser ’s covenants pursuant to Section 7.2 shall remain in effect until the date of actual removal of the System. Provider shall leave the Premises in neat and clean order. If Provider fails to remove or commence substantial efforts to remove the System by such ag reed upon date, Purchaser shall have the right, at its option, to remove the System to a public warehouse and restore the Premises to its original condition (other than System mounting pads or other support structures and ordinary wear and tear) at Provider’s reasonable cost.
2.5 Conditions Prior to the Commercial Operation Date . (a) In the event that any of the following events or circumstances occur prior to the Commercial Operation Date, Provider may (at its sole discretion) provide notice that it is terminating this Agreement, in which case neither Party shall have any liability to the other except for any such liabilities that may have accrued prior to such termination , including but not limited to Provider’s restoration of the Premises in accordance with Section 2.4:
(i) Provider determines that the Premises, as is, is insufficient to accommodate the System or unsuitable for construction or operation of the System .
(ii) There exist site conditions (including environmental conditions) or construction requirements that were not known as of the Effective Date and that c ould reasonably be expected to materially increase the cost of Installation Work or would adversely affect the electricity production from the System as designed. (iii) There is a material adverse change in the regulatory environment, incentive progra m or federal or state tax code ( including the expiration of any incentive program or tax incentives in effect as of the Effective Date ) that could reasonably be expected to adversely affect the economics of the installation for Provider and its investors.
(iv) Provider is unable to obtain financing for the System on terms and conditions satisfactory to it . (v) Provider has not received : (1) a fully executed a license in the form of Exhibit A of these General Conditions from the owner of the Premises (if the Purchaser is a tenant) , (2) a release or acknowledgement from any mortgagee of the Premise, if required by Provider’s Financing Party , to establish the priority of its security interest in the System, and ( 3) such other documentation as may be reasonably requested by Provider to evidence Purchaser ’s ability to meet its obligations under Section 7.2(d )(ii) to ensure that Provider will have access to the Premises throughout the Te rm.
(vi) There has been a material adverse change in the rights of Purchaser to occupy the Premises or Provider to construct the System on the Premise s.
(viii) Purchaser has determined that there are easements, CCRs or other land use restrictions, liens or encumbrances that would materially impair or prevent the installation, operation, maintenance or removal of the System.
(ix) There has been a material adverse change in Purchaser’s credit -worthiness . (b) If any of the conditions set forth in Section 2. 5(a) are partly or wholly unsatisfied, and Provider wishes to revise the information in the Special Conditions, then Provider may propose modifications to the Special Conditions for acceptance by Purchaser. If Purchaser does not accept such modified Specia l Conditions, Provider may terminate this Agreement as provided in Section 2. 5(a) and shall restore the Premises in accordance with Section
2.4. If Purchaser accepts such revised Special Conditions, such revised Special Conditions shall be deemed an amendment of this Agreement, and this Agreement shall remain in force and effect upon execution by both Parties.
2.6 Co-Located Systems . With respect to any Systems that are co -located at the same Premises and connected to the same meter , the Parties acknowledge that the Systems are intended to be owned and operated as one integrated system, and that the Energy Services Payment (a) represents the added value of integrating the Systems to enable Provider’s delivery of the Energy Services pursuant to the Agreem ents when needed by Purchaser, and (b) is a component part of the total consideration payable to Provider in exchange for Provider’s comprehensive duties under this Agreement and the Agreement(s) related to the other co -located System(s). Accordingly, the Parties further agree (x) to treat the Systems as one integrated system for all purposes, and (y) that any right or option that is exercised with respect to the System or this Agreement, whether in respect of early termination, purchase option or otherwis e, shall also be exercised with respect to the Agreement(s) related to the other co -located System(s).
3. CONSTRUCTION, INSTAL LATION AND TESTING O F SYSTEM.
3.1 Installation Work . Provider will cause the System (by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed) to be designed, engineered, installed and constructed substantially in accordance with Schedule 1 of the Special Conditions and Applicable Law. At its request, Purchaser shall have the right to review all construction plans and designs, including engineering evaluations of the impact of the System. Provider shall perform the Installation Work at the Premises between the hours of 7:00 a.m. and 7:00 p.m. in a manner that minimizes inconvenience to and interference with the use of the Premises to the extent commercially practical.
3.2 Approvals; Permits. Purchaser shall assist Provider in obtaining all necessary consen ts, approval s and permits required to perform Purchaser’s obligations under this Agreement, including but not limited to those related to the Local Electric Utility, any Governmental A pproval, and any consents, waivers, approvals or releases required pursu ant to any applicable contract or CCR.
3.3 System Acceptance Testing .
(a) Provider shall conduct testing of the System in accordance with such methods, acts, guidelines, standards and criteria reasonably accepted or followed by providers of Energy Services similar to those provided by the System in the United States. Provider shall provide Purchaser with reasonable advanced notice of such testi ng
and shall permit Purchaser or Purchaser’s representative to observe such testing. Purchaser’s observation of su ch testing shall not be construed as or deemed an approval of such testing or test results. (b) If the results of such testing indicate that the System is capable of providing the Energy Services , using such instruments and meters as have been installed for such purposes, and the System has been approved for interconnected operation by the Local Electric Utility (“Commercial Operation ”), then Provider shall send a written notice to Purchaser to that effect, and the date of such notice shall be the “ Commercial Operation Date ”.
4. SYSTEM OPERATIONS.
4.1 Provider as Owner and Operator . The System will be owned by Provider or Provider’s Financing Party and will be operated and maintained and, as necessary, repaired by Provider at its sole cost and expense; provided, any repair or maintenance costs incurred by Provider as a result of Purchaser ’s negligence or breach of its obligations hereunder shall be reimbursed by Purchaser .
4.2 Metering. Provider shall install and maintain a utility grade kilowatt -hour (kWh) meter for the measurement of electrical energy provided by the System and may, at its election, install a utility grade kilowatt-hour (kWh) meter for the measurement of electrical energy delivered by the Local Electric Utility and consumed at the Premises. Such meter(s) shall meet the general commercial standards of the solar photovoltaic industry or the required standards of the Local Electric Utility.
4.2.1 Meter Testing .
(a) Provider shall provide certificates of calibration for all meters prior to the time of their installation, no meter will be placed in service for which Provider has not provided certificates of calibration. Provider shall test or arrange for all meters to be tested in accordance with the meter manufacturer’s recommendations. Provider shall bear all costs and expenses associated with each meter testing. Purchaser shall be notified at least ten (10) days in advance of such testing and shall have the right to be present during such tests. Provider shall provide Purchaser with detailed written results of all meter tests.
(b) Provider shall test or arrange for meter inspection and testing bi -annually when performing System operations and maintenance.
4.2.2 Cost of Meter Repair .
(a) If meter testing, as described above demonstrates that a meter was operating outside of its allowable calibrations (+/ - 2%), then Provider will pay for the cost of repairs or replacement necessary to restore a meter to proper working order.
(b) If a meter is found to be inaccurate by more than two percent (2%), invoices for the prior six (6) months or from the last date such meter was registering accurately, whichever period is less, shall be adjusted to reconcile the discrepan cy and payment for the amount of the adjustment issued by the appropriate party within 45 days, except that Purchaser shall not be obligated to pay interest on any amount found to be due because a meter was operating outside of its allowable calibration (+ /- 2%).
4.2.3 Meter Data . Provider shall gather and maintain the data from all meters, including but not limited to, interval data registered at least once every fifteen (15) minutes (“ Meter Data ”), and shall make such Meter Data promptly available to Pu rchaser at Purchaser’s request.
4.3 System Disruptions . In the event that (a) the owner or lessee of the Premises repair s the Premises for any reason not directly related to damage caused by the System, and such repair requires the partial or complete temporary disassembly or movement of the System, or (b) any act or omission of Purchaser or Purchaser ’s employees, Affiliates, agents or subcontractors (collectively, a “ Purchaser Act”) results in a disruption or outage in System production, then , in either case, Purchaser shall (i) pay Provider for all work required by Provider to disassemble or move the System and (ii) continu e to make all payments for the Energy Services during such period of System
disruption (the “ Disruption Period ”), and (iii) reimburse Provider for any other lost revenue during the Disruption Period, including any lost revenue associated with any reduced s ales of Environmental Attributes and any reduced System-based Incentives , if applicable, during the Disruption Period . For the purpose of calculating Energy Services Payments and lost revenue for such Disruption Period, Energy Services for each month of said months shall be deemed to have been produced at the average rate over the same month for which data exists (or, if the disruption occurs within the first twelve (12) months of operation, the average over such period of operation) . Notwithstanding the foregoing, Purchaser shall be entitled to exercise its rights under Section 9 (Allowed Disruption Time) of the Special Conditions.
5. TITLE TO SYSTEM.
5.1 Throughout the duration of th is Agreement, Provider or Provider’s Financing Party sha ll be the legal and beneficial owner of the System at all times, and the System shall remain the personal property of Provider or Provider’s Financing Party and shall not attach to or be deemed a part of, or fixture to, the Premises. The System shall at all times retain the legal status of personal property as defined under Article 9 of the Uniform Commercial Code.
Purchaser covenants that it will use reasonable commercial efforts to place all parties having an interest in or lien upon the real property comprising the Premises on notice of the ownership of the System and the legal status or classification of the System as personal property. If there is any mortgage or fixture filing against the Premises which could reasonably be construed as attaching to the System as a fixture of the Premises, Purchaser shall provide, at Provider’s request, a disclaimer or release from such lien holder. If Purchaser is the fee owner of the Premises, Purchaser consents to the filing by Provider, on behalf of Purchaser , of a disclaimer of the System as a fixture of the Premises in the office where real estate records are customarily filed in the jurisdiction of the Premises. If Purchaser is not the fee owner, Purchaser will, at Provider’s request, use commercially reasonable efforts to obtain such consent from such owner.
5.2 Environmental Attributes And System -Based Incentives . Purchaser’s purchase of Energy Services includes Environmental Attributes, but does not include System-based incentives. System-based Incentives shall be owned by Provider or Provider’s financing party for the duration of the System’s operating life. Purchaser disclaims any right to System-based Incentives based upon the installation of the System at the Premises, and shall, at the request of Provider, execute any document or agreement reasonably necessary to fulfill the intent of this S ection 5.2.
6. PRICE AND PAYMENT.
6.1 Consideration . Purchaser shall pay to Provider a monthly Energy Services Payment for the Energy Services provided during each calendar month of the Term as set forth in the Special Conditions .
6.2 Invoice. Provider shall invoice Purchaser on or about the first day of each month (each, an “Invoice Date”), commencing on the first Invoice Date to occur after the Commercial Operation Date, for the Energy Services Payment in resp ect of the immediately preceding month. The last invoice shall include Energy Services provided only through the Termination Date of this Agreement. Invoices shall state, at a minimum, (i) the amount of actual electricity produced by the System and delivered to the delivery point during the invoice period (if applicable), (ii) the rates applicable to, and any charges incurred by, Pu rchaser under this Agreement, and (iii) the total amount due from Purchaser.
6.3 Time of Payment. Purchaser shall pay all undisputed amounts due hereunder within thirty (30) days after Purchaser’s receipt of an invoice from Provider .
6.4 Method of Payme nt. Purchaser shall make all payments under th is Agreement either (a) by electronic funds transfer in immediately available funds to the account designated by Provider from time to time or (b) by check timely delivered to the location designated by Provider from time to time. All payments that are not paid when due shall bear interest accruing from the date becoming past due until paid in full at a rate equal to the Stated Rate.
6.5 Disputed Payments . If a bona fide dispute arises with respect to a ny invoice, Purchaser shall not be deemed in default under th is Agreement and the Parties shall not suspend the performance of their respective obligations hereunder, including payment of undisputed amounts owed hereunder. If an amount disputed by Purchaser
is subsequently deemed to have been due pursuant to the applicable i nvoice, interest shall accrue at the Stated Rate on such amount from the date becoming past due under such invoice until the date paid.
7. GENERA L COVENANTS.
7.1 Provider’s Covenants . Provider covenants and agrees to the following:
(a) Notice of Damage or Emergency . Provider shall (x) promptly notify Purchaser if it becomes aware of any damage to or loss of the use of the System or that could reasonably be expected to adversely affect the System, (y) immediately notify Purchaser if it becomes aware of any event or circumstance relating to the System or the Premises that poses a significant risk to human health, the environment, the System or the Premises. In the event of unreasonable damage to the Premises caused by, or as the result of, the System, Provider shall, at its sole cost, repair said Premises to the condition existing prior to such damage. (b) Governmental Approvals . While providing the Installation Work, Energy Services, and System Operations, Provider shall obtain and maintain and secure all Governmental Approvals required to be obtained and maintained and secured by Provider and to enable Provider to perform such obligations. (c) Health and Safety . Provider shall take all necessary and reasonable safety precautions with respect to providing the Installation Work, Energy Services, and System Operations that shall comply with all Applicable Laws pertaining to the health and safety of persons a nd real and personal property. All work shall be performed by licensed professionals, as may be required by Applicable Law, a nd in accordance with such methods, acts, guidelines, standards and criteria reasonably accepted or followed by a majority of System integrators in the United States . (d) Liens. Other than a Financing Party’s security interest in or ownership of the Syste m, Provider shall not directly or indirectly cause, create, incur, assume or suffer to exist any mortgage, pledge, lien (including mechanics’, labor or materialman’s lien), charge, security interest, encumbrance or claim of any nature (“ Liens”) on or with respect to the Premises or any interest therein, in each case to the extent such Lien arises from or is related to Provider’s performance or non -performance of its obligations hereunder. If Provider breaches its obligations under this Section, it shall (i ) immediately notify Purchaser in writing, (ii) promptly cause such Lien to be discharged and released of record without cost to Purchaser , and (iii) defend and indemnify Purchaser against all costs and expenses (including reasonable attorneys’ fees and court costs at trial and on appeal) incurred in discharging and releasing such Lien; provided , Provider shall have the right to contest any such Lien, so long as it provides a statut ory bond or other reasonable assurances of payment that either remove such Lien from title to the Premises or that assure that any adverse judgment with respect to such Lien will be paid without affecting title to the Premises . (e) System Condition. Provider shall take all actions reasonably necessary, including but not limited to repair and maintenance, to ensure that the System is capable of operating at a commercially reasonable continuous rate throughout the Term.
(f) Environmental Indemnification by Provider. Provider shall indemnify, hold harmless and defend Purchaser Indemnified Parties from and against all claims, pay costs and expenses, and conduct all actions required under Environmental Laws in connection with the deposit, release, or spill of any Hazardous Materials at, on, above, below or near the Premises by Provider. In no event shall Provider be responsible for the existence of any Hazardous Materials at the Premises prior to the Effective Date. Provider shall promptly notify Purchaser if it becomes aware of any Hazardous Materials, or any deposit, spill, or release of any Hazardous Materials at, on, above, below or near the Premises.
(g) Production Data . Provider shall provide Purchaser with access to System production data in electronic format, such as tabular Excel or csv with each production unit in a separate cell. Production data could be delivered monthly or by granting Purchaser access to a web portal.
7.2 Purchaser ’s Covenants . Purchaser covenants and agrees as follows:
(a) Notice of Damage or Emergency . Purchaser shall (i) promptly notify Provider if it becomes aware of any damage to or loss of the use of the System or that could reasonably be ex pected to adversely aff ect the System, (ii) immediately notify Provider it becomes aware of any event or circumstance that poses an imminent risk to human health, the environment, the System or the Premises. In the event of damage to Purchaser’s premises caused by, or as the result of, the System, Provider shall, at its sole cost, repair said premises to the condition existing prior to such damage.
(b) Liens. Purchaser shall not directly or indirectly cause, create, incur, assume or suffer to exist any Liens on or with respect to the System or any interest therein. If Purchaser breaches its obligations under this Section, it shall immediately notify Provider in writing, shall promptly cause such Lien to be discharged and released of record without cost to Provider, and shall indemnify Provider against all costs and expenses (including reasonable attorneys’ fees and court costs at trial and on appeal) incurred in discharging and releasing such Lien. (c) Consents and Approvals . To the extent that only Purchaser is authorized to request, obtain or issue any necessary approvals, Governmental Approval s, rebates or other financial incentives, Purchaser shall cooperate with Provider to obtain or issue such approvals, Governmental Approval s, rebates or other financial incentives in the name of Provider. Purchase r shall provide to Provider copies of all Governmental Approvals and CCRs applicable to the Premises, other than those obtained by Provider or to which Provider is a party. (d) Access to Premises, Gran t of License .
(i) Purchaser hereby grant s to Provider a revocable non -exclusive license coterminous with the Term containing all the rights necessary for Provider to use and occupy portions of the Premises for the installation, operation , maintenance and removal of the System pursuant to the terms of this Agreement , including ingress and egress rights to the Premises for Provider and its employees, contractors and subcontractors and access to electrical panels and conduits to interconnect or disconnect the System with the Premises’ electrical wiring ; provided , with respect to Provider’s access to the Site, such license shall be subject to conditions or limitations for the protection of minor students that are imposed generally on commercial contractors by Purchaser or by Applicable Law . If Provider’s financing structure requires tha t Purchaser enter into a license agreement directly with Financing Party, Provider shall enter into such an agreement which shall be in a form set forth by Provider and which contain substantially the same rights as set forth in this Section 7.2(d). (ii) Regardless of whether Purchaser is owner of the Premises or leases the Premises from a landlord, Purchaser hereby covenants that (x) Provider shall have access to the Premises and System during the Term of this Agreement and for so long as needed after termination to remove the System pursuant to the applicable provisions herein, and (y) neither Purchaser nor Purchaser ’s landlord will interfere or handle any Provider equipment or the System without written authorization from Provider; provided , Purchaser and Purchaser ’s landlord shall at all times have access to and the right to observe the Installation Work or System removal . (iii) If Purchaser is a lessee of the Premises, Purchaser further covenants that it shall deliver to Provider, a license from Purchaser ’s landlord in substantially the form attached hereto as Exhibit A of these General Conditions. (e) Temporary storage space during installation or removal . Purchaser shall use commercially reasonable efforts to provide for sufficient space at the Premises for the temporary storage and staging of tools, materials and equipment and for the parking of construction crew vehicles and temporary construction trailers and facilities reasonably necessary during the Installation Work, System Operations or System removal, and access for rigging and material handling. Subject to Purchaser’s indemnity obligations set forth herein , Purchaser shall have no liability whatsoever in connection with personal property or equipment of Provider or Provider’s employees, consultants, contractors, subcontractors, and vendors. Provider s hall be solely responsible for the safety and security of Provider’s employees, consultants, contractors, subcontractors, and vendors, as well as any personal property, including but not limited to, any tools, materials, and equipment of such parties used or stored on the Premises. (f) Environmental Documents . On or before the Effective Date of each Special Conditions Purchaser shall identify and set forth in each Special Conditions and unless previously delivered, Purchaser shall, to the extent the same are known and in the possession or control of Purchaser , deliver to Provider copies of all reports, agreements, plans, inspections, tests, studies or other materials concerning the presence of Hazardous Materials at, from or on the
Premises including, but not limited to, soil reports, design drawings, environmental reports , sampling results or other documents relating to Hazardous Materials that have been identified or may be present on, in or under the Premises (collectively, the “ Environmental Documents ”). Thereafter, Purchaser agrees to provide copies of any new Environmental Documents within ten (10) days of receipt of same. Purchaser hereby agrees to furnish such other documents in P urchaser’s possession or control with respect to Governmental Approvals compliance with Environmental Law or Hazardous Materials with respect to the Premises as may be reasona bly requested by Provider from time to time.
(g) Compliance with Environmental Laws. Notwithstanding anything to the contrary in this Agreement, Purchaser shall operate and maintain the Premises to comply with the requirements of all applicable Environmental Laws that limit or govern the conditions or uses of the Premises , without impairing or interfering with Provider’s construction, operation and ownership of the System or occupancy of the Premises. In no event shall Provider have any liability or obligation with respect to any Pre -existing Environmental Condition on, in or under the Premises, or operations or maintenance of the Premises required to comply with Environmental Laws with respect to Pre-Existing Environmental Conditions .
(h) Environmental Indemnification by Purchaser . Purchaser shall indemnify, hold harmless and defend Provider from and against all claims, pay costs and expenses, and conduct all actions required under Environmental Laws in connection with (i) the existence at, on, above, below or near the Premises of any Pre-existing Environmental Conditions, and (ii) any Hazardous Materials released, spilled or deposited at, on above or below the Premises by the Purchaser . Purchaser shall promptly notify Provider if it becomes aware of any Hazardous Materials, or any deposit, spill, or release of any Hazardous Ma terials at, on, above, below or near the Premises.
8. REPRESENTATIONS & WA RRANTIES.
8.1 Representations and Warranties of Both Parties . In addition to any other representations and warranties contained in th is Agreement, each Party represents and warrants t o the other as of the Effective Date that:
(a) it is duly organized and validly existing and in good standing in the jurisdiction of its organization; (b) it has the full right and authority to enter into, execute, deliver, and perform its obligations unde r this Agreement;
(c) it has taken all requisite corporate or other action to approve the execution, delivery, and performance of the Agreement;
(d) this Agreement constitutes its legal, valid and binding obligation enforceable against such Party in accordance with its terms, except as may be limited by applicable bankruptcy and other similar laws now or hereafter in effect;
(e) there is no litigation, action, proceeding or investigation pending or, to the best of its knowledge, threatened before any court or other Governmental Authority by, against, affecting or involving any of its business or assets that could reasonably be expected to adversely affect its ability to carry out the transactions contemplated herein; (f) its execution and performance of th is Agreement and the transactions contemplated hereby do not and will not constitute a breach of any term or provision of, or a default under, (i) any contract , agreement or Governmental Approval to which it or any of its Affiliates is a party or by which it or any of its Affiliates or its or their property is bound, (ii) its organizational documents, or (iii) any Applicable Laws ; and (g) its execution and performance of th is Agreement and the transactions contemplated hereby do not and will not require any consent from a third party, including any Governmental Approvals from any Governmental Authority, that are not identified in the Special Conditions .
8.2 Representations of Purchaser . Purchaser represents and warrants to Provider as of the Effective Date t hat:
(a) Purchaser acknowledges that it has been advised that part of the collateral securing the financial arrangements for the System may be the granting of a first priority perfected security interest (the “ Security Interest ”) in the System to a Financing Party ;
(b) To Purchaser ’s knowledge, the granting of the Security Interest will not violate any term or condition of any covenant, restriction, lien, financing agreement, or security agreement affecting the Premises ; (c) Purchaser is aware of no existin g lease, mortgage, security interest or other interest in or lien upon the Premises that could attach to the System as an interest adverse to Provider’s Financing Party’s Security Interest therein;
(d) To Purchaser’s knowledge, there exists no event or condition which constitutes a default, or would, with the giving of notice or lapse of time, constitute a default under this Agreement ; (e) To Purchaser’s knowledge, Purchaser has identified and disclosed to Provider in the Special Conditions (i) all Environmental Documents in Purchaser’s possession or control , (ii) all CCRs, Governmental Approvals or other restrictions imposed under Applicable Laws with respect to the use of the Premises that could affect the construction and operation of the System within Purchaser’s possession or control, and (iii) all environmental reports, studies, data or other information relating to the use of the Premises by Provider within the Purchaser’s possession or control ;
(f) To Purchaser’s knowledge, t he Premises is in compl iance with Environmental Laws, and that Purchaser holds and is in compliance with all Governmental Approvals required for the ownership and any current operations or activities conducted at the Premises; and (g) Purchaser has identified in the Special Conditions and delivered to Provider all material reports and information concerning the presence or release of Hazardous Materials on, in or under the Premises in Purchaser’s possession or control .
Any Financing P arty shall be an intended third -party beneficiary of this Section 8.2.
8.3 EXCLUSION OF WARRANTIES . EXCEPT TO THE EXTENT OTHERWISE EXPRESS L Y
SET FORTH HEREIN, THE INSTALLATION WORK, SYSTEM OPERATIONS, AND ENERGY SERVI CES PROVIDED BY PROVIDER TO PURCHASER PURSUANT TO THIS AGREEMENT SHALL BE “A S-IS WHERE-IS.” NO OTHER WARRANTY TO PURCHASER OR ANY OTHER PERSON, WHETHER EXPRESS,
IMPLIED OR STATUTORY, IS MADE AS TO THE INSTALLATION, DESIGN, DESCRIPTION, QUALITY,
MERCHANTABILITY, COMPLETENESS, USEFUL LIFE, FUTURE ECONOMIC VIABILITY, OR FITNESS
FOR ANY PARTICULAR PURPOSE OF THE SYSTEM, THE ENERGY SERVICES OR ANY OTHER SERVICE
PROVIDED HEREUNDER OR DESCRIBED HEREIN, OR AS TO ANY OTHER MATTER, ALL OF WHICH ARE EXPRESSLY DISCLAIMED BY PROVIDER.
9. TAXES AND GOVERNMENTA L FEES.
9.1 Purchaser Obligations. Purchaser shall reimburse and pay for any documented taxes, fees or charges imposed or authorized by any Governmental Authority and paid by Provider due to Provider’s sale of the Energy Services to Purchaser (other than income taxes imposed upon Provider). Provider shall notify Purchaser in writing with a detailed statement of such amounts, which shall be invoiced by Provider and payable by Purchaser . Purchaser shall timely report, make filings for, and pay any and all sales, use, income, gross receipts or other taxes, and any and all franchise fees or similar fees assessed against it due to its purchase of the Energy Services. This Section 9.1 excludes taxes specified in Section 9.2.
9.2 Provider Obligations. Subject to Section 9.1 above, Provider shall be responsible for all income, gross receipts, ad valorem, personal property or real property or other similar taxes and any and all franchise fees or similar fees assessed against it due to its ownership of the System.
10. FORCE MAJEURE.
10.1 Definition. “ Force Majeure Event ” means any act or event that prevents the affected Party from performing its obligations in accordance with th is Agreement, if such act or event is beyond the reasonable control, and not the result of the fault or negligence, of th e affected Party and such Party had been unable to overcome such act or event with the exercise of due diligence (including the expenditure of reasonable sums). Subject to the foregoing conditions, “Force Majeure Event” shall include without limitation th e following acts or events: (i) natural phenomena, such as storms, hurricanes, floods, lightning , volcanic eruptions and earthquakes; (ii) explosions or fires arising from lightning or other causes unrelated to the acts or omissions of the Party seeking t o be excused from performance; (iii) acts of war or public disorders, civil disturbances, riots, insurrection, sabotage, epidemic, terrorist acts, or rebellion; (iv) strikes or labor disputes (except strikes or labor disputes caused solely by employees of Provider or as a result of such party’s failure to comply with a collective bargaining agreement) ; and (v) action or inaction by a Governmental Authority (unless Purchaser is a Governmental Authority and Purchaser is the Party whose performance is affected by such action nor inaction). A Force Majeure Event shall not be based on the economic hardship of either Party , or upon the expiration of any lease of the Premises by the Purchaser from the owner of the Premises.
10.2 Excused Performance. Except as otherwise specifically provided in th is Agreement, neither Party shall be considered in breach of th is Agreement or liable for any delay or failure to comply with th is Agreement (other than the failure to pay amounts due hereunder), if and to the extent th at such delay or failure is attributable to the occurrence of a Force Majeure Event; provided , the Party claiming relief under this Article 10 shall as soon as practicable after becoming aware of the circumstances constituting Force Majeure (i) notify the other Party in writing of the existence of the Force Majeure Event, (ii) exercise all reasonable efforts necessary to minimize delay caused by such Force Majeure Event, (iii) notify the other Party in writing of the cessation or termination of said Force M ajeure Event and (iv) resume performance of its obligations hereunder as soon as practicable thereafter; provided , Purchaser shall not be excused from making any payments and paying any unpaid amounts due in respect of Energy Services delivered to Purchase r prior to the Force Majeure Event performance interruption. Subject to Section 10.3 below, the Parties agree that to the extent permitted by Applicable Law , the Term of this Agreement shall extend on a day for day basis for every day in which the occurre nce of a Force Majeure Event has affected either Party’s performance of its obligations hereunder.
10.3 Termination in Consequence of Force Majeure Event . If a Force Majeure Event shall have occurred that has affected Provider’s performance of its obligat ions hereunder and that has continued for a continuous period of one hundred eighty (180) days, then either Party shall be entitled to terminate th is Agreement upon ninety (90) days’ prior written notice to the other Party . If at the end of such ninety (90) day period such Force Majeure Event shall still continue, th is Agreement shall automatically terminate. Upon such termination for a Force Majeure Event, neither Party shall have any liability to the other (other than a ny such liabilities that have accrued prior to such termination, including but not limited to Provider’s obligations to remove the System and restore the Premises as set forth herein), and Purchaser shall have no obligation to pay the Early Termination Fee .
11. DEFAULT.
11.1 Provider Defaults and Purchaser Remedies.
(a) Provider Defaults. The following events shall be defaults with respect to Provider (each, a “Provider Default”):
(i) A Bankruptcy Event shall have oc curred with respect to Provider; (ii) Provider fails to pay Purchaser any undisputed amount owed under the Agreement within thirty (30) days from receipt of notice from Purchaser of such past due amount; and (iii) Provider breaches any material representation, covenant or other term of th is Agreement and (A) if such breach can be cured within thirty (30) days after Purchaser ’s written notice of such breach and Provider
fails to so cure, or (B) Provider fails to commence and pursue a cure within such thirty (30) day period if a longer cure period is needed .
(b) Purchaser ’s Remedies . If a Provider Default described in Section 11.1(a) has occurred and is continuing, in addition to other remedies expressly provided herein, and subject to Article 12, Purchaser may terminate this Agreement with no penalty or liability whatsoever, including but not limited to the Early Termination Fee, and exercise any other remedy it may have at law or equity or under th is Agreement.
11.2 Purchaser Defaults and Provider’s Remedies.
(a) Purchaser Default. The following events shall be defaults with respect to Purchaser (each, a “Purchaser Default”):
(i) A Bankruptcy Event shall have occ urred with respect to Purchaser ; (ii) Purchaser breaches any material representation, covenant or other term of th is Agreement if (A) such breach can be cured within thirty (30) days after Provider’s notice of such breach and Purchaser fails to so cure, or (B) Purchaser fails to commence and pursue said cure within such thirty (30) day period if a longer cure period is needed , such longer cure period not to exceed ninety (90) days ; and (iii) Purchaser fails to pay Provider any undisputed amount due Provider under th is Agreement within thirty (30) days from receipt of notice from Provider of such past due amount. (b) Provider’s Remedies . If a Purchaser Default described in Section 11.2(a) has occurred and is continuing, in addition to other remedies expressly prov ided herein, and s ubject to Article 12, Provider may terminate this Agreement and upon such termination, (A) Provider shall be entitled to receive from Purchaser the Early Termination Fee set forth on Schedule 3, Column 1 of the Special Conditions , and (B) Provider may exercise any other remedy it may have at law or equity or under th is Agreement.
11.3 Cross Defa ult. With respect to any Systems that are co -located at the same Premises, if a Party defaults under th is Agreement, it shall also be a default of such Party under the Agreement(s) related to the other co - located System(s); provided , a cure of the original default shall be a cure of any such cross default. In the event of a cross default, the non -defaulting Party shall be entitled to exercises its rights with respect to this Agreement and all such other Agreements, including terminating all such Agreement s and, if Provider terminates one or more Agreements due to a Purchaser Default, Purchaser shall pay the Early Termination Fees for all such terminated Agreements.
11.4 Removal of System . Upon any termination of th is Agreement pursuant to this Article 11 and payment of the Early Termination Fee (if applicable), Provider will remove the System pursuant to Section 2.4 hereof.
12. LIMITATIONS OF LIABI LITY.
12.1 Except as expressly provided herein, neither Party shall be liable to the other Party or its Indemnified Persons for any special, punitive, exemplary, indirect, or consequential damages, losses or damages for lost revenue or lost profits, whether foreseeable or not, arising out of, or in connection with th is Agreement.
12.2 A Party’s maximum liabi lity to the other Party under th is Agreement, shall be limited to the aggregate Estimated Remaining Payments as of the date of the events giving rise to such liability, provided , the limits of liability under this Section 12.2 shall not apply with respect to (i) indemnity obligations hereunder in respect of personal injury or environmental claims and (ii) any obligation of Purchaser to pay Energy Service Payments , the Early Termination Fee or the Option Price, (iii) any obligation of Provider to pay for Los t Savings in accordance with the Special Conditions and (iv) if applicable, any obligation of Provider to remove the System and restore the Premises in accordance with Section 2.4 .
13. ASSIGNMENT.
13.1 Assignment by Provider. Provider shall not sell, transfer or assign (collectively, an “ Assignment ”) the Agreement or any interest therein, without the prior written consent of Purchaser , which shall not be unreasonabl y withheld, conditioned or delayed; provided , Purchaser agrees that Provider may assign this Agr eement without the consent of the Purchaser to an Affiliate of Provider or any party providing financing for the System. In the event that Provider identifies a secured Financing Party in the Special Conditions, or in a subsequent notice to Purchaser , then Purchaser shall comply with the provisions set forth in Exhibit B of these General Terms and Conditions and agrees to provide such estoppels , acknowledgments and opinions of counsel as Provider may reasonably request from time to time. Any Financing Party shall be an intended third -party beneficiary of this Section 1 3.1. Any Assignment by Provider without obtaining the prior written consent and release of Purchaser , when such consent is required by this Section 13.1, shall not release Provider of its obligations hereunder.
13.2 Acknowledgment of Collateral Assignment . In the event that Provider identifies a secured Financing Party in the Special Conditions, or in a subsequent notice to Purchaser , then Purchaser hereby acknowledges :
(a) The collateral assignment by Provider to the Financing Party , of Provider’s right, title and interest in, to and under th is Agreement, as consented to under Section 13.1 of th is Agreement. (b) That the Financing Party as such collateral assignee shall be entitled to exercise any and all rights of lenders generally with respect to Provider’s interests in this Agreement . (c) That it has been advised that Provider has granted a first priority perfected security interest i n the System to the Financing Party and that the Financing Party has relied upon the characterization of the System as personal property, as agreed in this Agreement in accepting such security interest as collateral for its financing of the System.
Any Financing Party shall be an intended third - party beneficiary of this Section 13. 2.
13.3 Assignment by Purchaser . Purchaser shall not assign th is Agreement or any interest therein, without Provider’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed. Any Assignment by Purchaser without the prior written consent of Provider shall not release Purchaser of its obligations hereunder.
14. NOTICES.
14.1 Notice Ad dresses . Unless otherwise provided in th is Agreement, all notices and communications concerning th is Agreement shall be in writing and addressed to the other Party (or Financing Party, as the case may be) at the addresses set forth in the Special Conditio ns, or at such other address as may be designated in writing to the other Party from time to time.
14.2 Notice. Unless otherwise provided herein, any notice provided for in th is Agreement shall be hand delivered, sent by registered or certified U.S. Mail, postage prepaid, or by commercial overnight delivery service , and shall be deemed delivered to the addressee or its office when received at the address for notice specified above when hand delivered, upon confirmation of sending when sent by facsimile (if sent during normal business hours or the next Business Day if sent at any other time), on the Business Day after being sent when sent by overnight delivery service (Saturdays, Sundays and legal holidays excluded), or five (5) Business Days after deposit i n the mail when sent by U.S. mail.
14.3 Address for Invoices . All invoices under th is Agreement shall be sent to the address provided by Purchaser . Invoices shall be sent by regular first class mail postage prepaid.
15. CONFIDENTIA LITY.
15.1 Confidentiality O bligation. If either Party provides confidential information, including business plans, strategies, financial information, proprietary, patented, licensed, copyrighted or trademarked information, and/or technical information regarding the financing, desig n, operation and maintenance of the System or of Purchaser ’s business (“ Confidential Information”) to the other or, if in the course of performing under th is Agreement or negotiating th is Agreement a Party learns Confidential Information regarding the faci lities or plans of the other, the receiving Party shall (a) protect the Confidential Information from disclosure to third parties with the same degree of care accorded its own confidential and proprietary information, and (b) refrain from using such Confid ential Information, except in the negotiation and performance of th is Agreement. Notwithstanding the above, a Party may provide such Confidential Information to its officers, directors, members, managers, employees, agents, contractors , consultants, Affil iates, lenders (existing or potential) , investors (existing or potential) and potential third-party assignees of th is Agreement or third-party acquirers of Provider or its Affiliates (provided and on condition that such potential third-party assignees be bound by a written agreement restricting use and disclosure of Confidential Information) (collectively, “Representatives ”), in each case whose access is reasonably necessary . Each such recipient of Confidential Information shall be informed by the Party d isclosing Confidential Information of its confidential nature and shall be directed to treat such information confidentially and shall agree to abide by these provisions. In any event, each Party shall be liable (with respect to the other Party) for any b reach of this provision by any entity to whom that Party improperly discloses Confidential Information. The terms of th is Agreement (but not its execution or existence) shall be considered Confidential Information for purposes of this Article, except as s et forth in Section 15.3. All Confidential Information shall remain the property of the disclosing Party and shall be returned to the disclosing Party or destroyed after the receiving Party’s need for it has expired or upon the request of the disclosi ng Party.
15.2 Permitted Disclosures . Notwithstanding any other provision herein, neither Party shall be required to hold confidential any information that:
(a) Becomes publicly available other than through the receiving Party; (b) Is required to be disclosed by a Governmental Authority, under Applicable Law , including but not limited to the California Public Records Act, or pursuant to a validly issued subpoena or required filing, but a receiving Party subject to any such requirement shall promptly notify the disclosing Party of such requirement; (c) Is independently developed by the receiving Party; or (d) Becomes available to the receiving Party without restriction from a third party under no obligation of confidentiality.
15.3 Goodwill and Publicity . Neither Party shall use the name, trade name, service mark, or trademark of the other Party in any promotional or advertising material without the prior written consent of such other Party.
The Parties shall coordinate and cooperate with each other when making public announcements related to the execution and existence of th is Agreement, and each Party shall have the right to promptly review, comment upon, and approve any publicity materials, press releases, or other public statements by the other Party that re fer to, or that describe any aspect of, th is Agreement; provided , no such publicity releases or other public statements (except for filings or other statements or releases as may be required by Applicable Law) shall be made by either Party without the prio r written consent of the other Party. At no time will either Party acquire any rights whatsoever to any trademark, trade name, service mark, logo or other intellectual property right belonging to the other Party.
Notwithstanding the foregoing, Purchaser agrees that Provider may, at its sole discretion, take photographs of the installation process of the System and/or the completed System, and Provider shall be permitted to use such images (regardless of media) in its marketing efforts, including but not li mited to use in brochures, advertisements, websites and news outlet or press release articles. The images shall not include any identifying information without Purchaser permission and the installation site shall not be disclosed beyond the type of establishment (such as “Retail Store,” “Distribution Center,” or such other general terms), the city and state.
15.4 Enforcement of Confidentiality Obligation . Each Party agre es that the disclosing Party would be irreparably injured by a breach of this Article 15 by the receiving Party or its Representatives or other Person to whom
the receiving Party discloses Confidential Information of the disclosing Party and that the discl osing Party may be entitled to equitable relief, including injunctive relief and specific performance, in the event of any breach of the provisions of this Article 15. To the fullest extent permitted by Applicable Law, such remedies shall not be deemed to be the exclusive remedies for a breach of this Article 15, but shall be in addition to all other remedies available at law or in equity.
16. INDEMNITY.
16.1 Provider’s Indemnity. Subject to Article 12, Provider agrees that it shall indemnify and hold harmless Purchaser , its permitted successors and assigns and their respective directors, officers, members, shareholders and employees (collectively, the “ Purchaser Indemnified Parties ”) from and against any and all Losses incurred by Purchaser Indemnified Partie s to the extent arising from or out of the following: any claim for or arising out of any injury to or death of any Person or loss or damage to property of any Person to the extent arising out of Provider’s negligence or willful misconduct . Provider shall not, however, be required to reimburse or indemnify any Purchaser Indemnified Party for any Loss to the extent such Loss is due to the negligence or willful misconduct of any Purchaser Indemnified Party.
16.2 Purchaser’s Indemnity . Subject to Article 12 and to the extent permitted by Applicable Law, Purchaser agrees that it shall indemnify and hold harmless Provider, its permitted successors and assigns and their respective directors, officers, members, shareholders and employees (collectively, the “ Provider Indemnified Parties ”) from and against any and all Losses incurred by Provider Indemnified Parties to the extent arising from or out of any claim for or arising out of any injury to or death of any Person or loss or damage to property of any Person to the extent arising out of Purchaser’s negligence or willful misconduct. Purchaser shall not, however, be required to reimburse or indemnify any Provider Indemnified Party for any Loss to the extent such Loss is due to the negligence or willful misconduct of any Provider Indemnified Party.
17. INSURANCE.
17.1 Generally. Purchaser and Provider shall each maintain the following insurance coverages in full force and effect throughout the Term either through insurance policies or acceptable self -insured retentions: (a) Workers’ Compensation Insurance as may be from time to time required under appl icable federal and state law, (b) Commercial General Liability Insurance with limits of not less than $2,000,000 general aggregate, $1,000,000 per occurrence, and (c) automobile insurance with commercially reasonable coverages and limits. Additionally, Provider shall carry adequate property loss insurance on the System which need not be covered by Purchaser ’s property coverage. The amount and terms of insurance coverage will be determined at Provider’s sole discretion.
17.2 Certificates of Insurance . Each Party, upon request, shall furnish current certificates evidencing that the insurance required under Section 17.1 is being maintained. Each Party’s insurance policy provided hereunder shall contain a provision whereby the insured agrees to give the other Party thirty (30) days’ written notice before the insurance is cancelled or materially altered.
17.3 Additional Insureds . Each Party’s insurance policy shall be written on an occurrence basis and shall include the other Party as an additional insured as its interest may appear.
17.4 Insurer Qualifications . All insurance maintained hereunder shall be maintained with companies either rated no less than A - as to Policy Holder’s Rating in the current edition of Best’s Insurance Guide (or with an association of companies each of the members of which are so rated) or having a parent company’s debt to policyholder surplus ratio of 1:1.
17.5 Additional Terms . Required insurance coverages shall not prohibit the Provider from waiving the right of subrogation prior to a loss. Provider shall waive all subrogation rights against the indemnified parties. Provider shall ensure that it carries adequate property loss insurance on the System, which need not be covered by Purchaser’s property or other insurance coverage. Pr ovider shall further ensure that any qualified contractor purchases and maintains insurance of the types and limits of liability, containing the endorsements, as would ordinarily and reasonably be expected by an experienced contractor undertaking the type of work contemplated by this Agreement
with respect to the potential liability for loss or damage under this Agreement. Provider shall further ensure that any qualified contractor’s insurance lists Purchaser as an additional insured.
18. MISCELLANEOUS.
18.1 Integration; Exhibits. The Agreement, together with the Exhibits and Schedules attached thereto or incorporated by reference , constitute the entire agreement and understanding between Provider and Purchaser with respect to the subject matter thereof and s upersedes all prior agreements relating to the subject matter hereof which are of no further force or effect. The Exhibits and Schedules attached to this Agreement, including these General Terms and Conditions as incorporated by reference, are integral pa rts of this Agreement and are an express part of this Agreement. In the event of a conflict between the provisions of these General Terms and Conditions and any applicable Special Conditions, the provisions of the Special Conditions shall prevail.
18.2 Amendments . This Agreement may only be amended, modified or supplemented by an instrument in writing executed by duly authorized representatives of Provider and Purchaser .
18.3 Industry Standards . Except as otherwise set forth herein, for the purpose of th is Agreement the normal standards of performance within the Energy Services industry in the relevant market shall be the measure of whether a Party’s performance is reasonable and timely. Unless expressly defined herein, words having well -known technical or trade meanings shall be so construed.
18.4 Cumulative Remedies . Except as set forth to the contrary herein, any right or remedy of Provider or Purchaser shall be cumulative and without prejudice to any other right or remedy, whether contained herein or not.
18.5 [Reserved ].
18.6 Limited Effect of Waiver . The failure of Provider or Purchaser to enforce any of the provisions of this Agreement, or the waiver thereof, shall not be construed as a general waiver or relinquishment on its part of any such provision, in any other instance or of any other provision in any instance.
18.7 Survival. The obligations under Section 2. 4 (Removal of System), Section 7.1 (Provider Covenants ), Sections 7.2(d), (e), (f), (g) and (h) (Purchaser Covenants), Section 8.3 (Exclusion of Warranties), Article 9 (Taxes and Governmental Fees), Article 12 (Limitation of Liability), Article 14 (Notices), Article 15 (Confidentiality), Article 18 (Miscellaneous), all payment or indemnification obligations accrued prior to termination of this Agreement, or pursuant to other provisions of this Agreement that, by their sense and context, are intended to survive termination of this Agreement shall survive the expiration or termination of this Agreement for any reason.
18.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California without reference to any choice of law principles. The Parties agree that the courts of the State of California and the Federal Courts sitting ther ein shall have jurisdiction over any action or proceeding arising under th is Agreement to the fullest extent permitted by Applicable Law. The Parties waive to the fullest extent permitted by Applicable Law any objection it may have to the laying of venue of any action or proceeding under this Agreement any courts described in this Section 18. 8.
18.9 Severability. If any term, covenant or condition in th is Agreement shall, to any extent, be invalid or unenforceable in any respect under Applicable Law, the remainder of th is Agreement shall not be affected thereby, and each term, covenant or condition of th is Agreement shall be valid and enforceable to the fullest extent permitted by Applicable Law and, if appropriate, such invalid or unenforceable provision shall be modified or replaced to give effect to the underlying intent of the Parties and to the intended economic benefits of the Parties.
18.10 Relation of the Parties . The relationship between Provider and Purchaser shall not be that of partners, agents , or joint ventures for one another, and nothing contained in th is Agreement shall be deemed to constitute a partnership or agency agreement between them for any purposes, including federal income tax purposes.
Provider and Purchaser , in performing any of their obligations hereunder, shall be independent contractors or independent parties and shall discharge their contractual obligations at their own risk.
18.11 Successors and Assigns . This Agreement and the rights and obligations under th is Agreement sh all be binding upon and shall inure to the benefit of Provider and Purchaser and their respective successors and permitted assigns.
18.12 Counterparts . This Agreement may be executed in one or more counterparts, all of which taken together shall constitut e one and the same instrument .
18.13 Electronic Delivery. This Agreement may be duly executed and delivered by a Party by execution and facsimile or electronic, “pdf” delivery of the signature page of a counterpart to the other Party.
18.14 Liquidated Damages Not Penalty . Purchaser acknowledges that the Early Termination Fee constitutes liquidated damages, and not penalties, in lieu of Provider’s actual damages resulting from the early termination of th is Agreement. Purchaser further acknowledges that Provider’s actual damages may be impractical and difficult to accurately ascertain, and in accordance with Purchaser ’s rights and obligations under th is Agreement, the Early Termination Fee constitutes fair and reasonable damages to be borne by Purchaser in lieu of Provider’s actual damages.
[Remainder of page intentionally left blank.]
These General Terms and Conditions are witnessed and acknowledged by ForeFront Power and Purchaser below.
Neither ForeFront Power nor Purchaser shall have any obligations or liability resulting from its witnessing and acknowledging these General Terms and Conditions.
“FOREFRONT POWER”: FFP BTM SOLAR, LLC
By: ________________________________ ________
Name: ________________________________ ______
Title: ________________________________ _______
Date: ________________________________ _______
“PURCHASER”: CITY OF SANTA MARIA
By: ________________________________ ________
Name: ________________________________ ______
Title: ________________________________ _______
Date: ________________________________ _______
E xhibit A
of General Terms and Conditions
[PURCHASER’S LETTERHEAD]
[Landlord’s Address]
Attn: Authorized Representative
Re: Proposed Energy System Installation at [Address of Premises]. Lease dated [ ] between [ PURCHA SER] and [LANDLORD] (the “Lease”)
Dear Authorized Representative:
As has been discussed with you, [ PURCHASER] (“Purchaser”) and [ FFP Entity], LLC (“Provider”) have entered into an Energy Services Agreement, purs uant to which Provider will install, finance, operate, and maintain a [solar photovoltaic ] [battery storage] system at the above -referenced premises which [ PURCHASER] leases from you pursuant to the Lease. By signing below and returning this letter to us, you confirm that:
1. The [solar photovoltaic ] [battery storage] system and the renewable energy (including environmental credits and related attributes) produced by the system are personal property, and shall not be considered the property (personal or oth erwise) of [LANDLORD] upon installation of the system at the premises. Landlord consents to the filing by Provider of a disclaimer of the System as a fixture of the Premises in the office where real estate records are customarily filed in the jurisdiction of the Premises.
2. Provider or its designee (including finance providers) shall have the right without cost to access the premises in order to install, operate, inspect, maintain, and remove the [solar photovoltaic ] [battery storage] system. [LANDLORD] will not charge Purchaser or Provider any rent for such right to access the premises .
3. [LANDLORD] has been advised that the finance providers for the [solar photovoltaic ] [battery storage] system have a first priority perfected security interest in the sy stem. Provider and the finance providers for the [solar photovoltaic ] [battery storage] system (including any system lessor or other lender) are intended beneficiaries of [LANDLORD]’s agreements in this letter.
4. [LANDLORD] will not take any action inconsistent with the foregoing.
We thank you for your consideration of this opportunity and we look forward to working with you in our environmental campaign to increase the utilization of clean, renewal energy resources.
Very truly yours,
[PURCHASER]
By:______________________________
Name:
Title:
Acknowledged and agreed by:
[LANDLORD]
By: ________________________
Name:
Title:
E xhibit B
of General Terms and Conditions
Certain Agreements for the Benefit of the Financing Parties Purchaser acknowledges that Provider will be receiving financing accommodations from one or more Financing Parties and that Provider may sell or assign the System or this Agreement and/or may secure Provider’s obligations by, among other collateral, a pledge or collateral assignment of this Agreement and a first security interest in the System. In order to facilitate such necessary sale, conveyance, or financing, and with respect to any such Financing Party, Purchaser agrees as follows:
(a) Consent to Collateral Assignment . Purchaser consents to either the assignment, sale or conveyance to a Financing Party or the collateral assignment by Provider to a Financing Party , of Provider’s right, title and interest in and to this Agreement.
(b) Notices of Default . Purchaser will deliver to the Financing Party, concurrently with delivery thereof to Provider, a copy of each notice of default given by Purchaser under th is Agreement, inclusive of a reasonable descript ion of Provider default. No such notice will be effective absent delivery to the Financing Party. Purchaser will not mutually agree with Provider to cancel, modify or terminate th is Agreement without the written consent of the Financing Party , however, this provision shall not be interpreted to limit any termination rights of either Party as set forth in the Agreement .
(c) Rights Upon Event of Default . Notwithstanding any contrary term of this Agreement:
i. The Financing Party shall be entitled to exercise , in the place and stead of Provider, any and all rights and remedies of Provider under this Agreement in accordance with the terms of this Agreement and only in the event of Provider’s or Purchaser ’s default. The Financing Party shall also be entitled to exercise all rights and remedies of secured parties generally with respect to this Agreement and the System . ii. The Financing Party shall have the right, but not the obligation, to pay all sums due under this Agreement and to perform any other act, duty or o bligation required of Provider thereunder or cause to be cured any default of Provider thereunder in the time and manner provided by the terms of this Agreement. Nothing herein requires the Financing Party to cure any default of Provider under this Agreement or (unless the Financing Party has succeeded to Provider’s interests under this Agreement) to perform any act, duty or obligation of Provider under this Agreement, but Purchaser hereby gives it the option to do so.
iii. Upon the exercise of remedies under its security interest in the System, including any sale thereof by the Financing Party, whether by judicial proceeding or under any power of sale contained therein, or any conveyance from Provider to the Financing Party (or any assignee of the Financing Party) in lieu thereof, the Financing Party shall give notice to Purchaser of the transferee or assignee of this Agreement. Any such exercise of remedies shall not constitute a default under this Agreement .
iv. Upon any default not reasonably susceptible to cure by a Finance Party, including, without limitation, rejection or other termination of this Agreement pursuant to any process undertaken with respect to Provider under the United States Bankruptcy Code, at the request o f the Financing Party made within ninety (90) days of such default, Purchaser shall enter into a new agreement with the Financing Party or its designee having the same terms and conditions as this Agreement.
(d) Right to Cure.
i. Purchaser will not exercise any right to terminate or suspend this Agreement unless it shall have given the Financing Party prior written notice by sending notice to the Financing Party (at the address provided by Provider) of its intent to terminate or suspend t his Agreement, specifying the condition giving rise to such right, and the Financing Party shall not have caused to be cured the condition giving rise to the right of termination or suspensi on within thirty (30) days after such notice or (if longer) the pe riods provided for in this Agreement. The Parties agree that the cure rights described herein are in addition to and apply and commence following the expiration of any notice
and cure period applicable to Provider The Parties respective obligations will otherwise remain in effect during any cure period; provided , if such Provider default reasonably cannot be cured by the Financing Party within such period and the Financing Party commences and continuously pursues cure of such default within such period, such period for cure will be extended for a reasonable period of time under the circumstances, such period not to exceed additional ninety (90) days.
ii. If the Financing Party (including any purchaser or transferee), pursuant to an exercise of remedies by the Financing Party, shall acquire title to or control of Provider’s assets and shall, within the time periods described in Sub-section (c)(i). above, cure all defaults un der this Agreement existing as of the date of such change in title or control in the manner required by this Agreement and which are capable of cure by a third person or entity, then such person or entity shall no longer be in default under this Agreement, and this Agreement shall continue in full force and effect.
E xhibit C
of General Conditions
Requirements Applicable to the Installation Work
Section B.1 Prohibition Against Use of Tobacco . All properties and facilities owned, leased or operated by the Purchaser are tobacco -free work places. No person on, at or in any Purchaser-controlled property or facility, including, without limitation, the Premises, may smoke, chew or otherwise use toba cco products. Provider shall be responsibl e for: (i) informing any and all persons present on or at the Premises on account of the Installation Work about the Purchaser’s tobacco -free policy; and (ii) strictly enforcing such policy with respect to the Pre mises. The Purchaser, Provider, and each Subcontractor shall require that any person present on or at the Premises on account of the Installation Work who violates such policy must permanently leave the Premises, and shall prohibit such person from thereafter being present or performing any of the Installation Work on or at the Premises.
Section B.2 Prohibition Against Use of Drugs .
(a) Purchaser Drug-Free Policy. All properties and facilities owned, leased or operated by the Purchaser are drug -free work places. No person on, at or in any Purchaser -controlled property or facility, including, without limitation, the Premises, may: (i) engage in the unlawful manufacture, dispensation, possession or use, including being under the influence, of any controlle d substance, (ii) possess or use any alcoholic beverage, or (iii) use any substance which may cause significant impairment of normal abilities. Provider shall be responsible for: (i) informing any and all persons present on or at the Premises on account o f the Installation Work about the Purchaser’s drug -free policy; and (ii) strictly enforcing such policy with respect to the Premises. The Purchaser, Provider, and each Subcontractor shall require that any person present on or at the Premises on account of the Installation Work who violates such policy must permanently leave the Premises, and shall prohibit such person from thereafter being present or performing any of the Installation Work on or at the Premises.
(b) Drug-Free Workplace Certification . Provider is hereby made subject to the requirements of Government Code Sections 8350 et seq., the Drug -Free Workplace Act of 1990.
Section B.3 Compliance with Labor Requirements . The Installation Work is a “public works” project as defined in Section 1720 o f the California Labor Code (“Labor Code”) and made applicable pursuant to Section 1720.6 of the Labor Code. Therefore, the Installation Work is subject to applicable provisions of Part 7, Chapter 1, of the Labor Code and Title 8 of the California Code of Regulations, Section 16000 et seq. (collectively, “Labor Law”). Provider acknowledges that, as provided by Senate Bill 854 (Stats. 2014, Ch. 28), the Project is subject to labor compliance monitoring and enforcement by the California Department of Indust rial Relations (“DIR”).
Section B.4 Compliance with Labor Code Requirements . Provider must be, and shall be deemed and construed to be, aware of and understand the requirements of the Labor Law that require the payment of prevailing wage rates and the performance of other requirements on public works projects. Provider, at no additional cost to the Purchaser, must: (i) comply with any and all applicable Labor Law requirements, including, without limitation, requirements for payment of prevailing wage rate s, inspection and submittal (electronically, as required) of payroll records, interview(s) of workers, et cetera; (ii) ensure that its Subcontractors are aware of and comply with the Labor Law requirements; (iii) in connection with Labor Law compliance mat ters, cooperate with the DIR, the Purchaser and other entities with competent jurisdiction; and (iv) post all job -site notices required by law in connection with the Installation Work, including, without limitation, postings required by DIR regulations. A Subcontractor that has been debarred in accordance with the Labor Code, including, without limitation, pursuant to Sections 1777.1 or 1777.7, is not eligible to bid on, perform, or contract to perform any portion of the Installation Work. Wage rates for the Installation Work shall be in accordance with the general prevailing rates of per -diem wages determined by the Director of Industrial Relations pursuant to Labor Code Section 1770. The following Labor Code sections are by this reference incorporated into and are a fully operative part of the Contract, and Provider shall be responsible for compliance therewith:
(a) Section 1735: Anti -Discrimination Requirements;
(b) Section 1775: Penalty for Prevailing Wage Rate Violations; (c) Section 1776: Payroll Records;
(d) Sections 1777.5,1777.6 and 1777.7: Apprenticeship Requirements; (e) Sections 1810 through 1812: Working Hour Restrictions; (f) Sections 1813 and 1814: Penalty for Failure to Pay Overtime; and (g) Section 1815: Overtime Pay.
Section B.5 Requirements for Payroll Records . Provider must comply with all applicable provisions of Labor Code Sections 1776 and 1812, which relate to preparing and maintaining accurate payroll records, and making such payroll records available for review and copying by the Purchaser, the DIR Divisio n of Labor Standards Enforcement, and the DIR Division of Apprenticeship Standards. The payroll records must be certified and made available as required by Labor Code Section 1776.
Section B.6 Contractor Registration . On and after March 1, 2015, no contractor may bid on a public works project unless the contractor is, and no subcontractor may be listed in any bid for a public works project unless the subcontractor is, currently registered with the DIR and qualified to p erform public work pursuant to Labor Code Section 1725.5. On and after April 1, 2015, no contractor or subcontractor may be awarded a contract for work on a public works project, or may perform any work on a public works project, unless the contractor or subcontractor i s currently registered with the DIR and qualified to perform public work pursuant to Labor Code Section 1725.5. It is not a violation of Labor Code Section 1725.5 for an unregistered contractor to submit a bid authorized by Business and Professions Code Section 7029.1 or Public Contract Code Section 20103.5, if the contractor is registered at the time the contract is awarded.
Section B.7 Permits and Licenses . Without limiting anything set forth in Section B.7 of this Exhibit C, Provider, its Subcontractors, and all of their respective employees and agents: (i) shall secure and maintain in force at all times during the performance of the Installation Work such licenses and permits as are required by law; and (ii) shall comply with all feder al and State, and County laws and regulations, and other governmental requirements applicable to the System or the Installation Work. Provider or its subcontractors shall obtain and pay for all permits and licenses required for the performance of, or nece ssary in connection with, the Installation Work, and shall give all necessary notices and deliver all necessary certificates to the Purchaser, and shall pay all royalties and license fees arising from the use of any material, machine, method or process use d in performing the Installation Work. Provider shall be solely responsible for all charges, assessments and fees payable in connection with any such licenses, permits, materials , machines, methods, and processes.
Section B.8 Protection of Minor -Aged Stud ents . Provider, in conformance with Education Code Section 45125.1, shall require and be responsible for ensuring compliance by each and every person who will be on or at the Premises in connection with the construction, maintenance, operation or other pu rposes related to the System with all California Department of Justice guidelines and requirements relating to fingerprinting and criminal -history background checks, regardless of whether Section 45125.1 otherwise by its terms would apply to any such activ ities.
In the event Education Code Section 45125.1 is repealed or superseded, Provider, following receipt of written notice from the Purchaser, shall comply with such successor or other requirements as determined by the Purchaser in its reasonable discret ion. The Purchaser, in its discretion, may exempt in writing any person(s) from the foregoing requirements if Provider makes alternative arrangements for supervision of such person(s) that are acceptable to the Purchaser in its sole discretion.
Renewable Energy Aggregated Procurement (REAP) Program
Solar & Energy Storage Participants*
Since 2014, streamlined procurement for >235 MW of Solar PV and >75 MWh of Energy Storage *Authorized by Participant Board or Council Action, through July 31, 2023 For more information: [email protected]
1 Alameda County Office of Ed
2 Allan Hancock College
3 Atascadero USD
4 Bakersfield City SD (Phases 1-3)
5 Cabrillo CCD
6 California Dept of Fish & Wildlife
7 Center for Advanced Research & Tech
8 Central USD (Phases 1, 2)
9 Cerritos College
10 City of Bakersfield
11 City of Fresno (Phases 1-3)
12 City of Livingston
13 City of Palm Desert
14 City of Paso Robles
15 City of Petaluma
16 City of San Diego
17 City of San Luis Obispo (Phases 1, 2)
18 City of Vacaville
19 City of Ventura
20 City of Yorba Linda
21 Clovis USD
22 College of the Redwoods
23 County of Fresno
24 County of Los Angeles
25 County of San Diego
26 County of San Luis Obispo (Phases 1, 2)
27 County of Santa Clara (Phases 1, 2)
28 County of Ventura
29 County of Yolo
30 Dixon USD
31 Fairfax Elementary SD
32 Fremont USD
33 Fresno USD (Phases 1-3)
34 Gilroy USD
35 Grossmont-Cuyamaca CCD (Phases 1, 2)
36 Kern CCD/Bakersfield College
37 Kings Canyon USD
38 Lammersville USD
39 Las Virgenes USD
40 Los Gatos USD
41 Mendocino Lake College
42 Newark USD
43 Newman Crows Landing USD
44 North Orange County CCD/Fullerton
College
45 Oakland USD
46 Ontario-Montclair SD
47 Panoche Water District (Phases 1, 2)
48 Paso Robles Jt USD
49 Pomona USD
50 Poway USD
51 Rio Hondo College
52 San Diego CCD
53 San Dieguito UHSD
54 San Jacinto USD
55 San Miguel Community Svc Dist
56 Santa Maria Airport District
57 Shasta Union HSD
58 Sierra College
59 South Bay Union SD
60 South Monterey County Jt UHSD
61 State Center CCD
62 Stockton USD
63 Tehachapi USD
64 Templeton USD
65 Tracy USD (Phases 1-3)
66 UC Santa Cruz
67 Ventura County CCD
68 Victor Valley CCD
69 West Kern CCD / Taft College
Attachment B
ENERGY SERVICES AGREEMENT – SOLAR
City Wells
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in the business of designing, constructing, owning , financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facili ty financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated cost to th e Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an additional fiv e (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of t he Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequent Renewal T erm, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment C
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third-party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Const ruction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction within the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
2902 South E St, Santa Maria, CA 93454
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 1,077.30 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.1199 11 $0.1199
2 $0.1199 12 $0.1199
3 $0.1199 13 $0.1199
4 $0.1199 14 $0.1199
5 $0.1199 15 $0.1199
6 $0.1199 16 $0.1199
7 $0.1199 17 $0.1199
8 $0.1199 18 $0.1199
9 $0.1199 19 $0.1199
10 $0.1199 20 $0.1199
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00056 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotech nical conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00035 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00047 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.01588 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $3.98 --
2 $3.70 --
3 $3.52 --
4 $3.41 --
5 $3.31 --
6 $3.23 5th Anniversary $2.73
7 $3.21 6th Anniversary $2.71
8 $3.19 7th Anniversary $2.69
9 $3.17 8th Anniversary $2.67
10 $3.15 9th Anniversary $2.65
11 $3.13 10th Anniversary $2.63
12 $3.11 11th Anniversary $2.61
13 $3.10 12th Anniversary $2.60
14 $3.08 13th Anniversary $2.58
15 $3.07 14th Anniversary $2.57
16 $3.06 15th Anniversary $2.56
17 $3.05 16th Anniversary $2.55
18 $3.04 17th Anniversary $2.54
19 $3.03 18th Anniversary $2.53
20 $3.02 19th Anniversary $2.52
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 2,279,567 11 2,168,119
2 2,268,169 12 2,157,278
3 2,256,828 13 2,146,492
4 2,245,544 14 2,135,760
5 2,234,316 15 2,125,081
6 2,223,145 16 2,114,455
7 2,212,029 17 2,103,883
8 2,200,969 18 2,093,364
9 2,189,964 19 2,082,897
10 2,179,014 20 2,072,482
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as ground mounted structures. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biological study and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigations that may result from a CEQA submittal and public comment.
1.3. Purchaser shall be responsible for all costs associated with all efforts and expenses required to obtain CEQA approval beyond the securing of a CEQA Notice of Exemption. The Construction Start Date shall be extended on a day for day basis for delays associated with CEQA review.
9 1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provider, in order to install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches b elow grade. Purchaser shall be responsible for the costs associated with afforestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change orde r process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to a new Local Electric Utility meter placed on site by the Local Electric Utility. Provider shall provi de a new 480V 1600A electrical service at a mutually agreeable location at Provider’s cost. Provider assumes that Purchaser will furnish record of existing site loads’ nameplate ratings or that the current overcurrent protection device ratings will be acce ptable for existing site loads when re -terminated in the new service equipment. Provider assumes that splicing of existing branch circuits of the Purchaser’s existing electrical loads shall be acceptable to Purchaser and feasible without extension of circuit conductors being required for splicing by Provider. Provider has specifically excluded any costs from the Local Electric Utility for work by the Local Electric Utility to install and enable the new utility meter at the new service including but not limited to installing a new meter, installing a new transformer or any reconductoring required. Provider and Purchaser acknowledge that additional costs by the Local Electric Utility are expected but are not knowable as of the effective date. Such additional costs shall be handled in accordance with Schedule 2.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider excludes all ADA related work. Should any excluded items for ADA -compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including potentially an increase in the kWh rate in Schedule 2.
1.8. Fencing shall be 6’ tall chain link, with barbed wire. Provider will determine the number of gates that are to be installed on the perimeter fencing, and such location(s) will be indicated on Provider’s drawings and plan submittals to Purchaser.
1.9. Provider assumes that existing grade is level and that no grading is required in support of System installation.
1.10. Provider assumes a balanced site. Any spoils that result from the installation of the System are assumed to be spread on site. Provider shall not be responsible for exporting soils. Provider shall work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay any such additional costs including potentially an increase in the kWh rate by exercising the Scope Changes (Non-ITC Eligible) rates in Schedule 2.
1.11. Provider assumes Risk Level I Best Management Practices as it relates to relevant Stormwater Protection Plan assumptions for the installation of the System.
1.12. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.13. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
10 Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.14. Provider will execute a Phase I Environmental Site Assessment, in accordance with ASTM e1527. Provider assumes that there are no Recognized Environmental Conditions, Historical Recognized Environmental Conditions or de minimis concerns associated with the Project Site.
1.15. Provider assumes that there is a potable water source on site, and available for Provider’s use in cleaning and maintaining the system . The estimated quantity of wat er needed is approximately 8,000 gallons annually.
1.16. Provider assumes that soil conditions are not such soils that are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Specifically, ForeFront Power as sumes no required shoring or de -watering for trenches, and a maximum required pile depth of not more than 10’ and W6X9 pile sizing. If soil conditions prove to be more adverse than these assumptions , Provider shall not be responsible for such additional expenses as a result of additional subterranean geotechnical work including boring and trenching. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.17. Purchaser is responsible for unforeseen underground conditions including utilities not discoverable by industry standard methodologies.
1.18. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site .
1.19. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
11 VIII. Schedule 8 – Site Diagram
12 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDE R IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTION TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effective Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Civic Center
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in the business of designing, constructing , owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated co st to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an additional fiv e (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of t he Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequent Renewal T erm, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment D
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third-party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Const ruction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction within the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
110 E Cook St, Santa Maria, CA 93458
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 933.66 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.1693 11 $0.1693
2 $0.1693 12 $0.1693
3 $0.1693 13 $0.1693
4 $0.1693 14 $0.1693
5 $0.1693 15 $0.1693
6 $0.1693 16 $0.1693
7 $0.1693 17 $0.1693
8 $0.1693 18 $0.1693
9 $0.1693 19 $0.1693
10 $0.1693 20 $0.1693
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00070 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotechnical conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00044 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00059 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.01215 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $4.26 --
2 $3.95 --
3 $3.75 --
4 $3.62 --
5 $3.51 --
6 $3.40 5th Anniversary $2.90
7 $3.37 6th Anniversary $2.87
8 $3.33 7th Anniversary $2.83
9 $3.30 8th Anniversary $2.80
10 $3.26 9th Anniversary $2.76
11 $3.22 10th Anniversary $2.72
12 $3.19 11th Anniversary $2.69
13 $3.15 12th Anniversary $2.65
14 $3.11 13th Anniversary $2.61
15 $3.07 14th Anniversary $2.57
16 $3.03 15th Anniversary $2.53
17 $2.99 16th Anniversary $2.49
18 $2.95 17th Anniversary $2.45
19 $2.91 18th Anniversary $2.41
20 $2.87 19th Anniversary $2.37
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 1,574,151 11 1,497,191
2 1,566,280 12 1,489,705
3 1,558,449 13 1,482,256
4 1,550,656 14 1,474,845
5 1,542,903 15 1,467,471
6 1,535,189 16 1,460,133
7 1,527,513 17 1,452,833
8 1,519,875 18 1,445,569
9 1,512,276 19 1,438,341
10 1,504,714 20 1,431,149
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as carports or shade structures, as applicable. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biologi cal study and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigati ons that may result from a CEQA submittal and public comment.
1.3. Solar arrays will be canopy height of 10' minimum clearance.
1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provi der, in order to
9 install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches below grade. Purchaser shall be responsible for the costs associated with aff orestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change order process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 208V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepti ng the additional electrical load of the System.
Provider shall not bear responsibility for any required upgrades to the pre -existing electrical system. Provider assumes that the service equipment to be furnished by the Purchaser shall have sufficient space for a connection to the line or side of the service disconnecting means.
Purchaser shall provide sufficient space for an interconnection transformer in a mutually - acceptable location.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider shall be responsible for verifying and understanding existing ADA parking, strip ing, and paths of travel and what code-required upgrades may be necessary as a result of the System and any pre -existing non -compliance. Provider shall be responsible for all required ADA striping, signage within the solar canopy footprint and connecting t o existing ADA-compliant path of travel. Provider’s scope excludes any demolition, grading, paving, curb cuts, or truncated domes throughout the Premises to achieve ADA compliance, or any required ADA striping and signage outside of the solar canopy footprint and connecting to the existing ADA- compliant path of travel. Should any excluded items for ADA-compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including potentially an increase in the kWh rate in Schedule 2.
1.8. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.9. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.10. Provider assumes that soil conditions are not such soils that are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Provider assumes no required shoring or de-watering for piers or trenches, and a maximum required pier depth of 10’ and diameter of 30”. If soil conditions prove to be more adverse than these assumptions, Provider shall not be responsible for such additional expenses. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.11. Purchaser is responsible for unforeseen underground conditions including utilities not discoverable by industry standard methodologies.
1.12. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site.
10 1.13. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
11 VIII. Schedule 8 – Site Diagram
12 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTION TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effective Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Wastewater Treatment Plant
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in t he business of designing, constructing, owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated cost to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an add itional five (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of the Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequen t Renewal Term, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment E
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third -party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Construction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction wit hin the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
601 S. Black Road Santa Maria, CA
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 923.40 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.1399 11 $0.1399
2 $0.1399 12 $0.1399
3 $0.1399 13 $0.1399
4 $0.1399 14 $0.1399
5 $0.1399 15 $0.1399
6 $0.1399 16 $0.1399
7 $0.1399 17 $0.1399
8 $0.1399 18 $0.1399
9 $0.1399 19 $0.1399
10 $0.1399 20 $0.1399
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00057 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotechni cal conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00036 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00047 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.00767 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $4.44 --
2 $4.13 --
3 $3.94 --
4 $3.82 --
5 $3.71 --
6 $3.62 5th Anniversary $3.12
7 $3.59 6th Anniversary $3.09
8 $3.57 7th Anniversary $3.07
9 $3.55 8th Anniversary $3.05
10 $3.53 9th Anniversary $3.03
11 $3.50 10th Anniversary $3.00
12 $3.48 11th Anniversary $2.98
13 $3.47 12th Anniversary $2.97
14 $3.45 13th Anniversary $2.95
15 $3.43 14th Anniversary $2.93
16 $3.41 15th Anniversary $2.91
17 $3.40 16th Anniversary $2.90
18 $3.38 17th Anniversary $2.88
19 $3.37 18th Anniversary $2.87
20 $3.36 19th Anniversary $2.86
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 1,929,514 11 1,835,180
2 1,919,866 12 1,826,004
3 1,910,267 13 1,816,874
4 1,900,716 14 1,807,790
5 1,891,212 15 1,798,751
6 1,881,756 16 1,789,757
7 1,872,347 17 1,780,809
8 1,862,986 18 1,771,904
9 1,853,671 19 1,763,045
10 1,844,402 20 1,754,230
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as ground mounted structures. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biological study and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigations that may result from a CEQA submittal and public comment.
1.3. Purchaser shall be responsible for all costs associated with all efforts and expenses required to obtain CEQA approval beyond the securing of a CEQA Notice of Exemption. The Construction Start Date shall be extended on a day for day basis for delays associated with CEQA review.
9 1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provider, in order to install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches b elow grade. Purchaser shall be responsible for the costs associated with afforestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change orde r process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 480V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepting the additional electrical load of the System and that any existing relay schema or protection settings are configurable to allow backfeed from generation sources. Provider shall not bear responsibility for any required upgrades to the pre- existing electrical system. Purchaser shall provide sufficient space for an interconnection transformer in a mutually-acceptable location.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider excludes all ADA related work. Should any excluded items for ADA -compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including potentially an increase in the kWh rate in Schedule 2.
1.8. Fencing shall b e 6’ tall chain link, with barbed wire. Provider will determine the number of gates that are to be installed on the perimeter fencing, and such location(s) will be indicated on Provider’s drawings and plan submittals to Purchaser.
1.9. Provider assumes that e xisting grade is level and that no grading is required in support of System installation.
1.10. Provider assumes a balanced site. Any spoils that result from the installation of the System are assumed to be spread on site. Provider shall not be responsible for e xporting soils. Provider shall work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay any such additional costs including potentially an increase in the kWh rate by exercising the Scope Changes (Non-ITC Eligible) rates in Schedule 2.
1.11. Provider assumes Risk Level I Best Management Practices as it relates to relevant Stormwater Protection Plan assumptions for the installation of the System.
1.12. Provider excludes generator backup of Purchaser’s electrical service during t emporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.13. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.14. Provider will execute a Phase I Env ironmental Site Assessment, in accordance with ASTM e1527. Provider assumes that there are no Recognized Environmental Conditions, Historical Recognized Environmental Conditions or de minimis concerns associated with the Project Site.
10 1.15. Provider assumes that there is a potable water source on site, and available for Provider’s use in cleaning and maintaining the system . The estimated quantity of water needed is approximately 8,000 gallons annually.
1.16. Provider assumes that soil conditions are not such soils th at are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Specifically, ForeFront Power assumes no required shoring or de -watering for trenches, and a maximum required pile depth of not more than 10’ a nd W6X9 pile sizing. If soil conditions prove to be more adverse than these assumptions , Provider shall not be responsible for such additional expenses as a result of additional subterranean geotechnical work including boring and trenching. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.17. Purchaser is responsible for unforeseen underground conditions includ ing utilities not discoverable by industry standard methodologies.
1.18. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site .
1.19. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
11 VIII. Schedule 8 – Site Diagram
12 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTION TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPAC T TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effective Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Police Department
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in t he business of designing, constructing, owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated cost to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an add itional five (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of the Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequen t Renewal Term, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment F
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third -party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Construction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction wit hin the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates [Insert Post(s) of person(s) authorized to Execute] as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF YORBA LINDA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
1111 Betteravia Rd, Santa Maria, CA 93458
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 540.54 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.1510 11 $0.1510
2 $0.1510 12 $0.1510
3 $0.1510 13 $0.1510
4 $0.1510 14 $0.1510
5 $0.1510 15 $0.1510
6 $0.1510 16 $0.1510
7 $0.1510 17 $0.1510
8 $0.1510 18 $0.1510
9 $0.1510 19 $0.1510
10 $0.1510 20 $0.1510
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00074 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotechni cal conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00047 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00062 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.02033 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $3.75 --
2 $3.49 --
3 $3.32 --
4 $3.21 --
5 $3.12 --
6 $3.04 5th Anniversary $2.54
7 $3.02 6th Anniversary $2.52
8 $3.00 7th Anniversary $2.50
9 $2.98 8th Anniversary $2.48
10 $2.96 9th Anniversary $2.46
11 $2.94 10th Anniversary $2.44
12 $2.93 11th Anniversary $2.43
13 $2.91 12th Anniversary $2.41
14 $2.89 13th Anniversary $2.39
15 $2.88 14th Anniversary $2.38
16 $2.87 15th Anniversary $2.37
17 $2.86 16th Anniversary $2.36
18 $2.85 17th Anniversary $2.35
19 $2.84 18th Anniversary $2.34
20 $2.83 19th Anniversary $2.33
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 864,864 11 822580.9
2 860,540 12 818,468
3 856,237 13 814375.7
4 851,956 14 810303.8
5 847,696 15 806252.3
6 843457.5 16 802221.0
7 839240.2 17 798209.9
8 835044.0 18 794218.9
9 830868.8 19 790247.8
10 826714.5 20 786296.5
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as carports or shade structures, as applicable. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biological study and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigations that may result from a CEQA submittal and public comment.
1.3. Solar arrays will be canopy height of 10' minimum clearance.
1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provider, in order to
9 install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches below grade. Purchaser shall be responsible for the costs associated with afforestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or r equire that Provider address it through the change order process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 480V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepting the additional electrical load of the System.
Provider shall not bear responsibility for any required upgrades to the pre -existing electrical system.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider excludes all ADA related work. Should any excluded items for ADA -compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades , including potentially an increase in the kWh rate in Schedule 2.
1.8. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.9. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.10. Provider assumes that soil conditions are not such soils that are rocky, sandy, contaminated , ground water, caving, or otherwise have problematic construction limitations. Provider assumes no required shoring or de-watering for piers or trenches, and a maximum required pier depth of 10’ and diameter of 30”. If soil conditions prove to be more adv erse than these assumptions, Provider shall not be responsible for such additional expenses. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.11. Purchaser is responsible for unforeseen underground conditions including utilities not discoverable by industry standard methodologies.
1.12. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site .
1.13. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
10 VIII. Schedule 8 – Site Diagram
11 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTIO N TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effecti ve Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Transit Yard
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in the business of designing, constructing , owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated co st to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an additional fiv e (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of t he Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequent Renewal T erm, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment G
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third-party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Const ruction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction within the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
1303 Fairway Dr, Santa Maria, CA 93455
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 466.83 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.1553 11 $0.1553
2 $0.1553 12 $0.1553
3 $0.1553 13 $0.1553
4 $0.1553 14 $0.1553
5 $0.1553 15 $0.1553
6 $0.1553 16 $0.1553
7 $0.1553 17 $0.1553
8 $0.1553 18 $0.1553
9 $0.1553 19 $0.1553
10 $0.1553 20 $0.1553
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00071 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotech nical conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00044 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00059 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.02623 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $3.97 --
2 $3.67 --
3 $3.48 --
4 $3.36 --
5 $3.25 --
6 $3.15 5th Anniversary $2.65
7 $3.13 6th Anniversary $2.63
8 $3.10 7th Anniversary $2.60
9 $3.08 8th Anniversary $2.58
10 $3.05 9th Anniversary $2.55
11 $3.03 10th Anniversary $2.53
12 $3.00 11th Anniversary $2.50
13 $2.98 12th Anniversary $2.48
14 $2.95 13th Anniversary $2.45
15 $2.93 14th Anniversary $2.43
16 $2.90 15th Anniversary $2.40
17 $2.88 16th Anniversary $2.38
18 $2.86 17th Anniversary $2.36
19 $2.83 18th Anniversary $2.33
20 $2.81 19th Anniversary $2.31
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 781,940 11 743,711
2 778,031 12 739,993
3 774,140 13 736,293
4 770,270 14 732,611
5 766,418 15 728,948
6 762,586 16 725,304
7 758,773 17 721,677
8 754,979 18 718,069
9 751,205 19 714,478
10 747,449 20 710,906
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as carports or shade structures, as applicable. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biologi cal study and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigati ons that may result from a CEQA submittal and public comment.
1.3. Solar arrays will be canopy height of 15' minimum clearance.
1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provi der, in order to
9 install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches below grade. Purchaser shall be responsible for the costs associated with aff orestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change order process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 480V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepti ng the additional electrical load of the System.
Provider shall not bear responsibility for any required upgrades to the pre -existing electrical system. Provider assumes that the service equipment to be furnished by the Purchaser shall have sufficient space for a connection to the line or side of the service disconnecting means.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgra des determined necessary by the Local Electric Utility.
1.7. Provider excludes all ADA related work. Should any excluded items for ADA -compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including potentially an increase in the kWh rate in Schedule 2.
1.8. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.9. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.10. Provider assumes that soil conditions are not such soils that are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Provider assumes no required shoring or de-watering for piers or trenches, and a maximum required pier depth of 10’ and diameter of 30”. If soil conditions prove to be more adverse than these assumptions, Provider shall not be responsible for such additional expenses. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.11. Purchaser is responsible for unforeseen underground conditions including utilities not discoverable by industry standard methodologies.
1.12. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site .
1.13. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
10 VIII. Schedule 8 – Site Diagram
11 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTION TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effe ctive Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Paul Nelson Aquatics Center
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in t he business of designing, constructing, owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated cost to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an add itional five (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of the Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequen t Renewal Term, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment H
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third -party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Construction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction wit hin the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
600 S McClelland St, Santa Maria, CA 93454
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 204.75 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.1922 11 $0.1922
2 $0.1922 12 $0.1922
3 $0.1922 13 $0.1922
4 $0.1922 14 $0.1922
5 $0.1922 15 $0.1922
6 $0.1922 16 $0.1922
7 $0.1922 17 $0.1922
8 $0.1922 18 $0.1922
9 $0.1922 19 $0.1922
10 $0.1922 20 $0.1922
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00071 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotech nical conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00044 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00059 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.0511 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $4.63 --
2 $4.27 --
3 $4.04 --
4 $3.88 --
5 $3.74 --
6 $3.60 5th Anniversary $3.10
7 $3.56 6th Anniversary $3.06
8 $3.51 7th Anniversary $3.01
9 $3.45 8th Anniversary $2.95
10 $3.40 9th Anniversary $2.90
11 $3.35 10th Anniversary $2.85
12 $3.29 11th Anniversary $2.79
13 $3.24 12th Anniversary $2.74
14 $3.18 13th Anniversary $2.68
15 $3.12 14th Anniversary $2.62
16 $3.06 15th Anniversary $2.56
17 $2.99 16th Anniversary $2.49
18 $2.93 17th Anniversary $2.43
19 $2.86 18th Anniversary $2.36
20 $2.79 19th Anniversary $2.29
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 342,494 11 325,750
2 340,782 12 324,121
3 339,078 13 322,500
4 337,382 14 320,888
5 335,695 15 319,283
6 334,017 16 317,687
7 332,347 17 316,098
8 330,685 18 314,518
9 329,032 19 312,945
10 327,386 20 311,381
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as carports or shade structures, as applicable. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biological stud y and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigations that may result from a CEQA submittal and public comment.
1.3. Solar arrays will be canopy height of 10' minimum clearance.
1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provi der, in order to
9 install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches below grade. Purchaser shall be responsible for the costs associated with aff orestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change order process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 208V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepti ng the additional electrical load of the System.
Provider shall not bear responsibility for any required upgrades to the pre -existing electrical system. Purchaser shall provide sufficient space for an interconnection transformer in a mutually-acceptable location.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider shall be responsible for verifying and understanding existing ADA parking, striping, and paths of travel and what code-required upgrades may be necessary as a result of the System and any pre -existing non -compliance. Provider shall be responsible for all requir ed ADA striping, signage within the solar canopy footprint and connecting to existing ADA -compliant path of travel. Provider’s scope excludes any demolition, grading, paving, curb cuts, or truncated domes throughout the Premises to achieve ADA compliance, or any required ADA striping and signage outside of the solar canopy footprint and connecting to the existing ADA - compliant path of travel. Should any excluded items for ADA-compliance be required, Provider will work with Purchaser in good faith to determi ne a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including potentially an increase in the kWh rate in Schedule 2.
1.8. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.9. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.10. Provider assumes that soil conditions are not such so ils that are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Provider assumes no required shoring or de-watering for piers or trenches, and a maximum required pier depth of 10’ and diameter of 30”. If soil conditions prove to be more adverse than these assumptions, Provider shall not be responsible for such additional expenses. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.11. Purchaser is responsible for unforeseen underground conditions including utilities not discoverable by industry standard methodologies.
1.12. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site .
1.13. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
10 VIII. Schedule 8 – Site Diagram
11 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTION TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effective Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Hagerman Sports Complex
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in t he business of designing, constructing, owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated cost to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an add itional five (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of the Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequen t Renewal Term, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment I
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third -party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Construction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction wit hin the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
3300 Skyway Dr., Santa Maria, CA 93455
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 171.99 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.2013 11 $0.2013
2 $0.2013 12 $0.2013
3 $0.2013 13 $0.2013
4 $0.2013 14 $0.2013
5 $0.2013 15 $0.2013
6 $0.2013 16 $0.2013
7 $0.2013 17 $0.2013
8 $0.2013 18 $0.2013
9 $0.2013 19 $0.2013
10 $0.2013 20 $0.2013
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00068 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotech nical conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00043 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00057 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.0350 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $4.99 --
2 $4.59 --
3 $4.33 --
4 $4.15 --
5 $3.99 --
6 $3.84 5th Anniversary $3.34
7 $3.78 6th Anniversary $3.28
8 $3.73 7th Anniversary $3.23
9 $3.67 8th Anniversary $3.17
10 $3.61 9th Anniversary $3.11
11 $3.55 10th Anniversary $3.05
12 $3.49 11th Anniversary $2.99
13 $3.42 12th Anniversary $2.92
14 $3.35 13th Anniversary $2.85
15 $3.28 14th Anniversary $2.78
16 $3.21 15th Anniversary $2.71
17 $3.13 16th Anniversary $2.63
18 $3.05 17th Anniversary $2.55
19 $2.97 18th Anniversary $2.47
20 $2.89 19th Anniversary $2.39
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 298,575 11 283,977
2 297,082 12 282,557
3 295,596 13 281,145
4 294,118 14 279,739
5 292,648 15 278,340
6 291,185 16 276,949
7 289,729 17 275,564
8 288,280 18 274,186
9 286,839 19 272,815
10 285,404 20 271,451
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as carports or shade structures, as applicable. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biological stud y and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigations that may result from a CEQA submittal and public comment.
1.3. Solar arrays will be canopy height of 10' minimum clearance.
1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provi der, in order to
9 install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches below grade. Purchaser shall be responsible for the costs associated with aff orestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change order process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 480V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepti ng the additional electrical load of the System.
Provider shall not bear responsibility for any required upgrades to the pre -existing electrical system.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider shall be responsible for verifying and understanding existing ADA parking, striping, and paths of travel and what code-required upgrades may be necessary as a result of the System and any pre -existing non -compliance. Provider shall be responsible for all required ADA striping, signage within the solar canopy footprint and connecting to existing ADA -compliant path of tra vel. Provider’s scope excludes any demolition, grading, paving, curb cuts, or truncated domes throughout the Premises to achieve ADA compliance, or any required ADA striping and signage outside of the solar canopy footprint and connecting to the existing ADA- compliant path of travel. Should any excluded items for ADA-compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including poten tially an increase in the kWh rate in Schedule 2.
1.8. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.9. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.10. Provider assumes that soil conditions are not such soils that are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Provider assumes no required shoring or de-watering for piers or trenches, and a maximum required pier depth of 10’ and diameter of 30”. If soil conditions prove to be more adverse than these assumptions, Provider shall not be responsible for such additional expenses. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.11. Purchaser is responsible for un foreseen underground conditions including utilities not discoverable by industry standard methodologies.
1.12. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site.
1.13. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
10 VIII. Schedule 8 – Site Diagram
11 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM Solar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPL ETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTION TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effective Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
ENERGY SERVICES AGREEMENT – SOLAR
Minami Community Center
This Energy Services Agreement (“Agreement”) is made and entered into as of this ____ day of ______, 2023 (or, if later, the latest date of a Party’s execution and delivery to the other Party of this Agreement, the “Effective Date”) , between FFP BTM SOLAR, LLC , a Delaware limited liability company (“ Provider”), and City of Santa Maria (“Purchaser”; and, together with Provider, each, a “Party” and together, the “Parties”).
RECITALS
A. Purchaser desires that Provider install and operate a solar photovoltaic system at the Premises (as hereafter defined) for the purpose of providing Energy Services (as hereafter defined), and Provider is willing to have the Installation Work performed by using one or more qualified contractors holding the appropriate licenses required in the jurisdiction where the System will be installed; B. Provider is in t he business of designing, constructing, owning, financing, and operating solar photovoltaic systems for the purpose of selling power generated by the systems to its purchasers; C. California Government Code sections 4217.10 et seq. authorizes a public entit y to enter into energy service contracts, facility financing contracts, and related agreements to implement the State’s conservation and alternative energy supply source policy;
D. Purchaser’s governing body has made those findings required by Government Code section 4217.12 that the anticipated cost to the Purchaser for Energy Services provided by the System under this Agreement is expected to be less than the anticipated marginal cost to the Purchaser of electrical energy that would have been consumed by Purchaser in the absence of its purchase of the Energy Services; E. Provider and Purchaser acknowledged those certain General Terms and Conditions of Energy Services Agreement between FFP BTM Solar, LLC and Purchaser dated as of _____, 2023 (“General Terms and Conditions”), which are incorporated by reference as set forth herein; and F. The terms and conditions of this Energy Services Agreement, excluding the General Terms and Conditions incorporated herein, constitute the “Special Conditions” referred to in the General Terms and Conditions.
In consideration of the mutual promises set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:
1. Incorporation of General Terms and Conditions. The General Terms and Conditions are incorporated herein as if set forth in their entirety.
2. Initial Term. The initial term of this Agreement shall commence on the Effective Date and shall continue for Twenty (20) years from the Commercial Operation Date (as defined in the General Terms and Conditions), unless and until extended or terminated earlier pursuant to th e provisions of th is Agreement (the “Initial Term”). After the Initial Term, th is Agreement may be renewed for an add itional five (5) year term (a “Renewal Term”). At least one hundred and eighty (180) days, but no more than three hundred and sixty- five (365) days, prior to the expiration of the Initial Term, Provider shall give written notice to Purchaser of the availability of the Renewal Term. Purchaser shall have sixty (60) days to agree to continuation of th is Agreement for the Renewal Term. Absent agreement to the Renewal Term this Agreement shall expire on the Expiration Date. The Initial Term and the subsequen t Renewal Term, if any, are referred to collectively as the “Term”.
3. Schedules. The following Schedules hereto are hereby incorporated into this Agreement:
Attachment J
2 Schedule 1 Description of the Premises, System and Subsidy Schedule 2 Energy Services Payment
Schedule 3 Early Termination Fee
Schedule 4 Estimated Annual Production
Schedule 5 Notice Information
Schedule 6 Reserved
Schedule 7 Specific Items for Scope of Work
Schedule 8 Site Diagram
Schedule 9 Acknowledgment of Upgrades, Schedule or Scope Change
4. Privacy. Purchaser acknowledges that the System may collect certain information about Purchaser’s electricity usage and the System performance. Such information may be stored and processed in the United States or any other country in which Provider or its third -party service providers, or its or their respective affiliates, subsidiaries, or service providers, maintain facilities. Purchaser consents to any such transfer of information outside of Purchaser’s country.
5. Milestone Dates.
5.1 The Guaranteed Construction Start Date is 730 days from Effective Date provided that the Local Electric Utility is prepared to begin its construction on any required utility, (distribution or transmission), upgrades, if any , and the City has completed construction wit hin the area of solar development (as indicted in Schedule 9). In the event that the Local Electric Utility is not prepared to commence construction on required upgrades, if any are required, or the City has not completed construction within the area of solar development, Provider will be allowed a day for day extension to the Guaranteed Construction Start Date, as defined in the General Terms and Conditions between the Parties.
5.2 The Guaranteed Commercial Operation Date is: (i) 60 days from the date on which the Local Electric Utility authorizes Provider to schedule an inspection to energize the System after confirming completion of installation, and testing, or (ii) April 14, 2026, whichever occurs later.
6. Purchase Requirement; Energy Services Payment. “Energy Services” means the supply of electrical energy output from the System and any associated reductions in Purchaser’s peak demand from its Local Electric Utility. Purchaser agrees to purchase one hundred percent (100%) of the Energy Services generated by the System and made available by Provider to Purchaser during each relevant month of the Term, up to a maximum of one hundred and ten percent (110%) of Estimated Annual Production, as defined in Schedule
4. While the Energy Services are calculated and billed on a per kWh basis as set forth in Schedule 2 of these Special Conditions, they represent a package of services and benefits.
7. Net Energy Metering.
7.1 The Parties acknowledge that the pricing assumes Net Energy Metering (NEM) 2.0 for the Initial Term. If (i) Provider fails to submit interconnection applications by 4/14/2023, or (ii) prior to the Commercial Operation Date, (A) Provider fails to keep such interconnection applications in good standing such that the System would not be eligible for NEM 2.0, or (B) the CPUC issues a decision such that the System would not be eligible for NEM 2.0 grandfathering for at least twenty (20) years, Purchaser may terminate this Agreement with no liability whatsoever, including, but not limited to the Early Termination Fee . The foregoing shall not apply to the extent Provider’s failure is caused by an act or omission by Purchaser in connection with Provider’s submittal of interconnection applications.
Provided, however , that in the event of a change in Applicable Law that occurs after the Commercial Operation Date and results in a loss of NEM 2.0 grandfathering, Purchaser shall have no such termination right. Provide d further that Purchaser shall ensure any correspondence with the Local Electric Utility regarding the tariff and changes to the interconnection agreement are promptly shared with Provider.
3 8. Estimated Annual Production . The annual estimate of electricity generated by the system for each year of the initial term is set as forth in S chedule 4 of the Special Conditions (“Estimated Annual Production ”).
Within sixty (60) days of each annual anniversary of the Commercial Operation Date, Provider will provide a statement to Purchaser that shows the actual annual kWh production from the System for the Term Year, the Estimated Annual Production, and the Minimum Guaranteed Output (defined below).
9. Minimum Guaranteed Output . If the System fails to generate at least n inety-five percent ( 95%) of the Estimated Annual Production for a full Term Year (such amount, the “Minimum Guaranteed Output”), other than as a result of the acts or omissions of Purchaser or the Local Electric Utility (including a Disruption Period), or an Event of Force Majeure, Provider shall credit Purchaser an amount equal to Purchaser’s Lost Savings on the next invoice or invoices during the following Term Year. The formula for calculating Lost Savings for the applicable Term Year is as follows:
Lost Savings = (MGO*WPR - AE) x RV
MGO = Minimum Guaranteed Output, as measured in total kWh, for the System for the applicable Term Year.
WPR = Weather Performance Ratio, measured as the ratio of the actual insolation over typical (pro- forma) insolation. Such Weather Performance Ratio shall only apply if the ratio is less than 1.00.
AE = Actual Electricity, as measured in total kWh, delivered by the System for the Term Year plus the estimated lost energy production during a Disruption Period.
RV = (ATP - kWh Rate)
ATP = Average tariff price, measured in $/kWh, for the Term Year paid by Purchaser with respect to the Premises. This price is determined by dividing the total cost for delivered electricity, including all charges associated with such electric ity howsoever named, including, without limitation, charges for distribution, transmission, demand, and systems benefits, paid to the Local Electric Utility during the applicable Term Year by the total amount of delivered electricity by the electric utility during such Term Year.
kWh Rate = the kWh Rate in effect for the applicable Term Year(s), measured in $/kWh.
If the RV is zero or less, then no Lost Savings payment is due to Purchaser. Any Lost Savings payment shall occur no later than sixty (60) days after the end of the Term Year during which such Lost Savings occurred.
10. Allowed Disruption Time . Notwithstanding the provisions in Section 4.3 of the General Terms and Conditions to the contrary, during years 4 through 20 (but not years 1 through 3) of the Term, Purchaser shall be afforded a one-time allocation of fifteen (15) days which may be used consecutively or in separate periods of at least twenty -four (24) hours each (“ Allowed Disruption Time ”) d uring which the System shall be rendered non-operational. Purchaser shall not be obligated to make payments to Provider for electricity not received during the Allowed Disruption Time, nor shall Purchaser be required to reimburse Provider for any other lo st revenue during the Allowed Disruption Time, including any lost revenue associated with any reduced sales of Environm ental Attributes, and Provider shall be credited for the estimated lost production the System would have produced during such Allowed Disruption Time toward satisfaction of its Minimum Guaranteed Output, as set forth in Section 8 of the Special Conditions, such estimated lost production to be calculated in the same manner as set forth in Section 4.3 of the General Conditions.
11. Distribution Upgrades, Scope and Schedule Changes.
11.1 For any distribution upgrades required or changes to the scope of Installation Work made pursuant to Schedule 2 of the Special Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the description of the distribution upgrades or change in
4 scope of the Installation Work (ii) the amount of the adjustment in the kWh Rate and Early Termination Fee that corresponds to such costs , if any (iii) changes to the Estimated Annual Production in Schedule IV, if an y, and (iv) any change to the Guaranteed Construction Start Date and Guaranteed Commercial Operation Date resulting from such upgrades or scope changes;
11.2 For any day for day extensions made pursuant to Section 2.2(b) of the General Conditions, the Parties may execute an acknowledgment in the form attached hereto as Schedule 9 detailing (i) the circumstances that warrant such day for day extension and (ii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date;
11.3 For any extensions that are not made pursuant to Section 2.2(b) of the General Conditions, Provider may request extensions to the Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date to the extent that Provider can demonstrate to Purchaser t hat Provider is seeking such extension for good cause. Purchaser in its sole discretion may approve such extension(s) by executing an acknowledgment in the form attached hereto as Schedule 9 on which Provider details (i) the circumstances for which Provid er deems good cause for such extension(s), (ii) the actions that Provider is taking to complete the System on a schedule agreeable to the Purchaser and (iii) the updated Guaranteed Construction Start Date and/or Guaranteed Commercial Operation Date.
For th e avoidance of doubt, Purchaser designates Public Works Directors as authorized to execute the acknowledgment form attached hereto as Schedule 9 provided the terms of such acknowledgment comply with this Section 11.
12. Sunlight Access. Purchaser will take all reasonable actions as necessary to prevent other buildings, structures or flora from overshadowing or otherwise blocking access of sunlight to the System.
13. Use of System. Purchaser will not use electrical energy generated by the System for the purposes of heating a swimming pool within the meaning of Section 48 of the Internal Revenue Code.
IN WITNESS WHEREOF and in confirmation of their consent to the terms and conditions contained in this Agreement and intending to be legally bound hereby, Provider and Purchaser have executed this Agreement as of the Effective Date.
“PURCHASER”: PROVIDER:
FFP BTM SOLAR, LLC
By:___________________________
Name:
Title:
Date:
“FOREFRONT POWER”: PURCHASER:
CITY OF SANTA MARIA
By:___________________________
Name:
Title:
Date:
5 SCHEDULES
I. Schedule 1 – Description of the Premises, System and Subsidy
A. Premises
600 W Enos Dr, Santa Maria, CA 93458
Site diagram attached:
X Yes No
B. Description of Solar System
Behind the meter, grid interconnected, canopy mounted solar.
Solar System Size: 98.28 kW (DC) (this is an estimate (and not a guarantee) of the System size; Provider may update the System Size prior to the Commercial Operation Date.)
C. Anticipated Subsidy or
Rebate
$0
II. Schedule 2 – Energy Services Payment
Purchaser shall pay to Provider a monthly payment (the “Energy Services Payment”) for the Energy Services provided by the System during each calendar month of the Term equal to the product of (x) Actual Monthly Production for the System for the relevant month multiplied by (y) the kWh Rate .
The “Actual Monthly Production” means the amount of energy recorded by Provider’s metering equipment during each calendar month of the Term.
The kWh Rate with respect to the System under this Agreement shall be in accordance with the following schedule:
PPA Rate Table
Term
Year
kWh Rate
($/kWh)
Term
Year
$/kWh Rate
($/kWh)
1 $0.2550 11 $0.2550
2 $0.2550 12 $0.2550
3 $0.2550 13 $0.2550
4 $0.2550 14 $0.2550
5 $0.2550 15 $0.2550
6 $0.2550 16 $0.2550
7 $0.2550 17 $0.2550
8 $0.2550 18 $0.2550
9 $0.2550 19 $0.2550
10 $0.2550 20 $0.2550
6 Distribution Upgrades. Within thirty (30) days of receipt of notice from the Local Electric Utility of distribution upgrade costs required by the Local Electric Utility, Purchaser will provide written notice (email is acceptable) to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such distribution upgrade costs, and the kWh rate as stated in PPA Rate Table will remain unchanged. Purchaser shall make payments directly to the Local Electric Utility in accordance with the requirements of the Local Electric Utility. b. For every $0.01 per watt DC of such distribution upgrade costs, the kWh rate in PPA Rate Table will increase $0.00073 per kWh.
Scope Changes (ITC Eligible): If changes in project scope occur that are eligible for the Federal Investment Tax Credit (such as but not limited to adverse geotechnical conditions) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
a. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
b. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00046 per kWh.
Scope Changes (Non -ITC Eligible): If changes in project scope occur that are not eligible for the Federal Investment Tax Credit (such as but not limited to additional required ADA upgrades) and such additional scope and associated costs go beyond those contemplated as part of the development and implementation of the System in this Agreement, Provider will provide reasonable documentation demonstrating the direct and actual time and materials costs relating to such associated costs, and, within 30 days of receipt of notice from Provider reasonably substantiating the associated costs, Purchaser will provide written notice to Provider of Purchaser’s election of one of the following options:
c. Purchaser will pay the entire amount of such associated costs, and the kWh rate as stated in PPA Rate Table will remain unchanged.
d. For every $0.01 per watt DC of such associated costs, the kWh rate in PPA Rate Table will increase $0.00061 per kWh.
If the aggregate of costs set forth above for which Purchaser has elected to pay for via increased kWh Rate exceed the maximum total kWh Rate increase of $0.06556 the Provider has the option to terminate this Agreement and to remove the System pursuant to Section 2.4 of the General Conditions. In no event shall Purchaser be responsible for costs that exceed the stated kWh Rate increase.
7 III. Schedule 3 – Early Termination Fee
The Early Termination Fee with respect to the System under this Agreement shall be calculated in accordance with the following:
Early
Termination
Occurs in Year:
Column 1
Early Termination Fee
where Purchaser does not
take Title to the System
($/Wdc including costs of
removal)
Purchase Date Occurs on the
91st day following:
(Each “Anniversary” below
shall refer to the anniversary
of the Commercial Operation
Date)
Column 2
Early Termination Fee
where Purchaser takes
Title to the System
($/Wdc, does not include
costs of removal)
1* $5.72 --
2 $5.25 --
3 $4.93 --
4 $4.71 --
5 $4.51 --
6 $4.32 5th Anniversary $3.82
7 $4.24 6th Anniversary $3.74
8 $4.15 7th Anniversary $3.65
9 $4.06 8th Anniversary $3.56
10 $3.97 9th Anniversary $3.47
11 $3.87 10th Anniversary $3.37
12 $3.77 11th Anniversary $3.27
13 $3.67 12th Anniversary $3.17
14 $3.56 13th Anniversary $3.06
15 $3.44 14th Anniversary $2.94
16 $3.32 15th Anniversary $2.82
17 $3.19 16th Anniversary $2.69
18 $3.06 17th Anniversary $2.56
19 $2.92 18th Anniversary $2.42
20 $2.77 19th Anniversary $2.27
At Expiration (the end of the Initial Term), the amount in Column 1 shall be deemed to be zero (0). *Includes Early Termination prior to the Commercial Operation Date.
IV. Schedule 4 – Estimated Annual Production
Estimated Annual Production commencing on the Commercial Operation Date with respect to System under this Agreement shall be as follows:
Term
Year
Estimated
Production
(kWh)
Term
Year
Estimated
Production
(kWh)
1 159,705 11 151,897
2 158,906 12 151,138
3 158,112 13 150,382
4 157,321 14 149,630
5 156,535 15 148,882
6 155,752 16 148,137
7 154,973 17 147,397
8 154,198 18 146,660
9 153,427 19 145,926
10 152,660 20 145,197
8 The values set forth in the table above are estimates (and not guarantees), of approximately how many kWhs are expected to be generated annually by the System assuming the System size indicated in Schedule 1 and based on initial System designs . Provider may deliver to Purchaser an updated table on or about the Commercial Operation Date based on the actual System size and design.
V. Schedule 5 – Notice Information
Purchaser:
[ ]
Provider:
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Director, Energy Services
100 Montgomery St., Suite 725
San Francisco, CA 94104
With a copy to
FFP BTM Solar, LLC
c/o Forefront Power, LLC
Attn: Legal Department
100 Montgomery St., Suite 725
San Francisco, CA 94104
Email: [email protected]
Financing Party:
[To be provided by Provider when known]
VI. Schedule 6 – Reserved
VII. Schedule 7 – Specific Items for Scope of Work
1.1. All System structures shall be permitted through the authority having jurisdiction as carports or shade structures, as applicable. Provider shall obtain permits on behalf of the project(s), including building department, structural, grading, and/or electrical permits as required.
1.2. Provider and Purchaser are operating under the assumption that the premises will be eligible for a CEQA Notice of Exemption (NOE), and that a special use, conditional use, or zoning permit will not be required. Provider assumes that Purchaser, as lead agency, will issue a Notice of Exemption for CEQA. Upon request, Provider shall provide such limited support as necessary to Purchaser to obtain the NOE, including, if necessary, biologi cal study and associated consultant statement and summary citing exemptions applicable. Provider shall not be responsible for costs or delays associated with any unforeseen required CEQA studies, special use, conditional use, or zoning permits, or mitigati ons that may result from a CEQA submittal and public comment.
1.3. Solar arrays will be canopy height of 10' minimum clearance.
1.4. Provider shall be responsible for all tree trimming and tree removal in order to facilitate the installation of the Systems. Provider will remove tree such that area is flush with grade.
Purchaser shall acknowledge and approve removal of trees identified by Provi der, in order to
9 install the system and such approval shall not be unreasonably withheld. Where tree removal will occur, Provider shall grind tree stumps to a maximum of 4 inches below grade. Purchaser shall be responsible for the costs associated with aff orestation or reforestation for any trees removed. Purchaser can elect to address afforestation or reforestation itself, or require that Provider address it through the change order process described in Schedule 2. Irrigation re - routing shall not be the responsibility of the Provider.
1.5. Provider intends to interconnect the System to Purchaser-owned 480V service conductors at a mutually agreeable location. Provider assumes that the existing conductors and service equipment are sufficiently capable of accepti ng the additional electrical load of the System.
Provider shall not bear responsibility for any required upgrades to the pre -existing electrical system.
1.6. Provider shall be responsible for all fees associated with the interconnection application, except that Provider shall not be responsible for transmission and distribution upgrades determined necessary by the Local Electric Utility.
1.7. Provider shall be responsible for verifying and understanding existing ADA parking, striping, and paths of travel and what code-required upgrades may be necessary as a result of the System and any pre -existing non -compliance. Provider shall be responsible for all required ADA striping, signage within the solar canopy footprint and connecting to existing ADA -compliant path of tra vel. Provider’s scope excludes any demolition, grading, paving, curb cuts, or truncated domes throughout the Premises to achieve ADA compliance, or any required ADA striping and signage outside of the solar canopy footprint and connecting to the existing ADA- compliant path of travel. Should any excluded items for ADA-compliance be required, Provider will work with Purchaser in good faith to determine a mutually -acceptable solution for Purchaser to pay the costs associated with such upgrades, including poten tially an increase in the kWh rate in Schedule 2.
1.8. Provider excludes generator backup of Purchaser’s electrical service during temporary service outage during interconnection of the System (up to 8 hours of shutdown, which can be planned to take place during off-hours).
1.9. Provider assumes no title and/or real estate risks, encumbrances or other limitations exist that would otherwise limit Provider’s ability to access the site, install, own and operate the system.
Provider assumes that all parcels encompassed by the site area recommended by Purchaser will be owned by Purchaser at time of development.
1.10. Provider assumes that soil conditions are not such soils that are rocky, sandy, contaminated, ground water, caving, or otherwise have problematic construction limitations. Provider assumes no required shoring or de-watering for piers or trenches, and a maximum required pier depth of 10’ and diameter of 30”. If soil conditions prove to be more adverse than these assumptions, Provider shall not be responsible for such additional expenses. Provider shall work with Purchaser in good faith to determine a mutually acceptable solution for Purchaser to pay such additional costs, including potentially an increase in the kWh rate in Schedule 2.
1.11. Purchaser is responsible f or unforeseen underground conditions including utilities not discoverable by industry standard methodologies.
1.12. Provider agrees to construct the System in no more than 1 construction phase, and that Provider will be allowed ample space, to the extent that it is available, to store material on site.
1.13. Provider shall be responsible for all inspection and inspector costs associated with the installation of the system.
10 VIII. Schedule 8 – Site Diagram
11 IX. Schedule 9 – Acknowledgment of Upgrades, Schedule or Scope Change
Upgrades, Scope and/or Schedule Change Acknowledgment
This Acknowledgment is made in accordance with Section 10 of the Special Conditions, as defined in that Energy Service Agreement – [Solar], between [PURCHASER] (“Purchaser”) and FFP BTM S olar, LLC (“Provider”), dated [_________, 20___] (the “Agreement”). Upon execution by both Purchaser and Provider, this Acknowledgment shall be effective as of [INSERT DATE] (the “Acknowledgment Effective Date”).
1. Type of Change:
Distribution Upgrades
Scope Changes (ITC Eligible)
Scope Changes (Non-ITC Eligible)
Day for Day Extension
Extension for Good Cause
2. Description of Change
[INSERT DESCRIPTION AND IF PROVIDER SEEKING EXTENSION FOR GOOD CAUSE, PROVIDER
TO DETAIL CIRCUMSTANCES AND ACTIONS PROVIDER IS TAKING TO COMPLETE SYSTEM ON AGREED UPON SCHEDULE]
3. kWh Rate and Early Termination Fee [IF NO IMPACT TO RATE OR ETF THEN DELETE]
[INSERT UPDATED KWH RATE AND EARLY TERMINATION FEE TABLE]
4. Estimated Annual Production [IF NO IMPACT TO ESTIMATED ANNUAL PRODUCTION THEN DELETE]
[INSERT UPDATED SCHEDULE 4 ESTIMATED ANNUAL PRODUCTIO N TABLE]
5. Updated Guaranteed Construction Start Date and Guaranteed Commercial Operation Date [IF NO IMPACT TO CLIFF DATES THEN DELETE]
The Parties hereby agree that the Guaranteed Construction Start Date and the Guaranteed Commercial Operation Date as defined in the Agreement are updated as follows:
Guaranteed Construction Start Date: [__________]
Guaranteed Commercial Operation Date: [__________]
The Parties hereby acknowledge and confirm the terms set forth herein as of the Acknowledgment Effecti ve Date.
[PURCHASER] FFP BTM Solar, LLC
By: By:
Name: Name:
Title: Title:
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA,
CALIFORNIA, ENTERING INTO POWER PURCHASE AGREEMENTS AND
RELATED CONTRACT DOCUMENTS WITH FOREFRONT POWER FOR FACILITIES AT THE CITY’S REAL PROPERTY SITES
WHEREAS, it is the policy of the State of California and the intent of the State Legislature to promote all feasible means of energy conservation and all feasible uses of alternative energy supply sources; and
WHEREAS, The City desires to reduce the steadily rising costs of meeting the energy needs at its facilities; and
WHEREAS, the City proposes to enter into Power Purchase Agreements and related contract documents with ForeFront Power (ForeFront ) for facilities at the City’s real property sites, pursuant to which Power Purchase Agreements ForeFront will design, construct, and install on City property solar photovoltaic facilities and arrange with the local utility for interconnection of the facilities, which will generate energy for the sites on which such facilities are located; and
WHEREAS, the proposed Solar Power Project encompasses the construction of Solar PV Systems at the following locations: City Well Number 12, Waste Water Treatment Pla nt, Civic Center, Police Department, Transit Yard, Paul Nelson Aquatic Center, James Hagerman Sports Center, and Minami Park; and
WHEREAS, ForeFront has provided the City with analysis showing the financial and other benefits of entering into the Power P urchase Agreements . This analysis is attached hereto as Exhibit A of the Agreement and made part hereof by this reference; and
WHEREAS, Exhibit A of the Agreement includes data showing that the anticipated cost to the City for the electrical energy provided by the solar photovoltaic and energy storage facilities will be less than the anticipated cost to the City of electrical energy that would have been consumed by the City in the absence of such measures; and
WHEREAS, ForeFront was the selected vendor for School Project for Utility Rate Reduction’s (SPURR) Renewable Energy Aggregated Procurement (REAP) Program, a competitive statewide solar and energy storage Request for Proposals (RFP) process, and the City adopts the REAP Program’s competitive process as its own.
WHEREAS, pursuant to Government Code section 4217.12, this Council held a public hearing, public notice of which was given two weeks in advance, to receive public comment; and
WHEREAS, the Power Purchase Agreements are in the best interests of the City; and
WHEREAS, the City’s proposed approval of the Power Purchase Agreements is a “Project” for purposes of the California Environmental Quality Act (“CEQA”); and
WHEREAS, the Guidelines for CEQA, California Code of Regulations Title 14, Chapter 13 (“State CEQA Guide lines”), exempt certain projects from further CEQA evaluation, including the following: (1) projects consisting of the new construction or conversion of small structures (“Class 3 Exemption”; Cal. Code Regs., tit. 14, § 15303); (2) projects consisting of the construction or placement of minor accessory structures to existing facilities (“Class 11 Exemption”; Cal. Code Regs., tit. 14, § 15311); and (3) projects consisting of minor additions to existing schools (“Class 14 Exemption”; Cal.
Code Regs., tit. 14, § 15314), and the Project is categorically exempt under one or more of such exemptions; and
WHEREAS, the Project does not involve any of the following and so is eligible for a categorical exemption as described above under State CEQA Guidelines section 15300.2:
(a) the cumulative impact of successive projects of the same type in the same place, which over time are significant;
(b) an activity where there is a reasonable possibility that the activity will have a significant effect on the environment due to unusual circumstances;
(c) a project which may result in damage to scenic resources, including but not limited to, trees, historic buildings, rock outcroppings, or similar resources, within a highway officially designated as a state scenic highway;
(d) a hazardous waste site which is included on any list compiled pursuant to Section 65962.5 of the Government Code; and
(e) a project which may cause a substantial adverse change in the significance of a historical resource; and
WHEREAS, Public Resour ces Code, section 21080.35 (added by Stats.2011, c. 469 (S.B.226), § 3), statutorily exempts from CEQA evaluation the installation of a solar energy system, including associated equipment, on the roof of an existing building or at an existing parking lot; and
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows:
1. That the Council approve the Power Purchase Agreements with ForeFront Power for the Department of Public Works Solar Power Project in accordance with Government Code section 4217.12.
2. In accordance with Government Code section 4217.12 and based on data provided by Exhibit A of the Agreement, the Council finds that the anticipated cost to the City for electrical energy provided by the Power Purchase Agreements will be less than the anticipated cost to the City of electrical energy that would have been consumed by the City in the absence of the Power Purchase Agreements.
3. That the City Manager, or designee, is authorized to approve and execute the Power Purchase Agreements with ForeFront Power.
4. The City Manager, or designee, is authorized and directed to negotiate any further changes, insertions and omissions to the Power Purchase Agreements as reasonably deemed necessary, and thereafter to execute and deliver the Power Purchase Agreements following the Council’s adoption of this Resolution.
5. The Project hereby found to be exempt from the requirements of CEQA pursuant to the Class 3, Class 11 and Class 14 Exemp tions, as described above. The Project is hereby found to be exempt from the requirements of CEQA pursuant to Public Resources Code, section 21080.35 (added by Stats.2011, c. 469 (S.B.226), § 3), as described above. City staff are hereby authorized to file and process a Notice of CEQA Exemption for the Project in accordance with CEQA and the State CEQA Guidelines, and the findings set forth in this resolution.
6. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consult with the City Manager and City Attorney concerning any changes deemed necessary.
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PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 7th day of November 2023.
ATTEST:
Chief Deputy City Clerk
Mayor
APPROVED AS TO FORM:
_______________________________
City Attorney
APPROVED AS TO CONTENT:
_______________________________
Department Director
_______________________________
Interim City Manager
FOR THE COUNCIL MEETING OF NOVEMBER 7, 2023
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
Prepared by: Director of Community Development Chuen Wu
SUBJECT: Santa Maria General Plan Update Preferred Land Use Alternative
Description:
The City Council will consider approving the General Plan Update Preferred Land Use Alternative.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act (CEQA) State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required.
RECOMMENDATION:
By motion, approve the Preferred Land Use Alternative (modified Alternative C – Hybrid).
BACKGROUND:
The City is currently undertaking a multi-year effort to update its General Plan, which will establish vision, goals and policies that support economic dev elopment, sustainability, and improved quality of life through the year 2045. The required elements of the General Plan touch nearly all aspects of city governance including , but not limited to land use, traffic and circulation, parks and open space, housing, and public safety.
The General Plan Update is currently in the Land Use Alternatives phase, which is the third of five phases of the planning process. This phase builds off the Vision, Guiding Principles, and Areas of Change and Stability phase that was completed in April 2021.
The Land Use Alternatives identify different land use, mobility, and urban design options the City has to achieve the Community’s Vision and future growth projection s and will facilitate the final phases of the General Plan Update, which is forecasted to be completed in 2024.
DISCUSSION:
The Alternatives Phase of the General Plan Update consists of an analysis of the land use and density changes that would need to occur in the city to accommodate the projected minimum amount of job and housing growth through the target year of 2045.
Though the General Plan horizon is 2045, the analysis anticipated growth needs through the year 2050 to align with growth projections produced by the Santa Barbara County Association of Governments (SBCAG).
2 Three land use alternatives were designed and analyzed, each accommodating a minimum of 9,270 housing units and aimed to ensure job diversity to achieve a net increase of 16,000 jobs, which exceeds SBCAG job projections by resulting in a jobs to housing ratio of 1:2. The analysis of the three alternatives was based on an understanding of how much housing and employment growth to plan for, which were projected based on potential Regional Housing Need Allocation (RHNA) cycles through the year 2050, SBCAG growth projections, and input from the Technical Advisory Committee (TAC), City staff, and the Department Advisory Group (DAG).
Alternatives growth also considers the growth the city has already planned through adopted Specific Plans and current projects that are approved but not yet constructed .
Based on these factors, t he three Land Use Alternatives presented in t he Alternatives Technical Memorandum (Attachment A) are as follows:
Alternative A: Annexation. This Alternative assumed annexation of 1,770 acres outside of City limits. No other changes to land use designations within the city were included.
Alternative B: City Infill. This Alternative intensified housing and job growth on major corridors and opportunity sites within City limits. Alternative C: Hybrid. This Alternative is a hybrid of Alternatives A and B and assumed annexation of 720 acres outside City limits located east of Hwy 101.
The Alternatives and results of the technical analysis were presented to the Community for review and evaluation. The City of Santa Maria hosted a variety of engagement activities to gather feedback on the Al ternatives, including orientations held on April 5, 2023 (virtual), and April 6, 2023 (in -person), and follow-up office hours on April 18, and 19, 2023. An online survey was available in English and Spanish on the project website from April 5 to May 2, 2023. City staff also had meetings with the TAC and DAG on April 6, and April 10, 2023, respectively , to receive feedback and answer questions on the three alternatives.
The survey results found that Alternative A – City Infill (41 percent) and Alternative C Hybrid (40 percent) were the preferred Alternatives w ith t he most important outcome (desired by almost 40 percent of the survey respondents) to have better walkability to destinations, followed by reduced traffic congestion. Additionally, almost 60 percent of the survey respondents either strongly or somewhat supported allowing more high-density buildings along Broadway and Main Street. Respondents favored densities closer to those assumed in Alternative C: Hybrid.
Recommended Preferred Land Use Alternative
Based on all of the analysis completed and feedback received, t he recommended Preferred Land Use Alternative is a modified version of Alternative C: Hybrid. The proposed land uses and densities are intended to balance growth within City limits and include 985 acres of land to the east of current City limits within the unincorporated area of Santa Barbara County that would be planned for annexation . Alternative C was modified to include an additional 265 acres located north of East Main Street to the Santa 3 Maria River, beyond the 720 acres recommended for annexation. This additional area was included due to the availability of nearby public infrastructure. A full table of the Preferred Land Use Alternative land use designations is found in Appendix B of the attached Preferred Land Use Alternative Memo (Attachment A).
Within City limits, increased residential development density along Main Street and Broadway would occur through the continued implementation of the Downtown Specific Plan, and the creation of two new land use designations, the Broadway Mixed Use (BMU) and Main Mixed Use (MMU), both of which would allow up to 35 dwelling units/acre in areas on Broadway and Main Street located outside of the Downtown Specific Plan area.
This direction is consistent with the SBCAG Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS), which envisions mixed-use development and intensification to complement transportation improvements along primary corridors.
“Opportunity sites” that have a high potential to redevelop during the planning horizon were identified throughout the city in strategic locations that would allow for residential, institutional, and employment growth . Other proposed changes include replacing the Medium Density Residential -10 (MDR -10) land use designation with Medium Density Residential-12 (MDR-12) to allow up to 12 dwelling units per acre (du/ac). This better aligns the MDR designation with the corresponding Zoning District, R-2, which allows up to 12 du/ac. The existing High-Density Residential (HDR) designation would be revised to allow up to 30 du/ac (the current maximum is 22 du/ac) , consistent with the current State affordable housing laws. The land use designation on identified parcels would also be revised to reflect project-specific changes, for example, to locate a future high school on Broadway south of Preisker Lane.
The changes proposed with the Preferred Land Use Alternative would result in the need to amend the Downtown Specific Plan to reflect a new maximum density/intensity established by the General Pla n. The Entrada Specific Plan would also be amended to reflect the new Broadway and Main Mixed-Use designation, and the Area 9 Specific Plan to allow low -density residential uses along A Street in the undeveloped area that is currently zoned Commercial and Professional Office (CPO).
Planned Annexation areas, designated with by a new “PA” land use designation, would be developed as complete neighborhoods, where residents can conveniently access new neighborhood commercial areas, parks, and public facilities like schools, government facilities, and recreation centers. New employment uses adjacent to Marian Regio nal Medical Center and Hancock College will create opportunities for expansion of these campuses or co-location of complementary land uses, like medical offices, housing, and retail.
Planning Commission Recommendation
The Planning Commission reviewed the recommended Preferred Land Use Alternative at the September 6, 2023, public hearing. Fifteen members of the public spoke on the item with some in support of the recommended alternative and others in support of Alternative B, Infill. After considering the public comments received and all the information 4 provided by staff, the Planning Commissioners voted 3 -2 to recommend the Preferred Land Use Alternative (Modified Alternative C – Hybrid) to the City Council. The two Commissioners who did not vote in favor of this alternative were in support of Alternative A – Annexation.
Alternative(s)
Should the City Council decide not to approve the recommended Preferred Land Use Alternative, the City Council may direct staff to amend the Preferred Land Use Alternative or select a different Land Use Alternative from the three alternatives presented , or a variation of one of the alternatives.
Fiscal Considerations
A fiscal impact analysis was prepared by Lisa Wise Consulting, which assessed estimated new revenues and expenditures to the general fund based on three land use alternatives (Attachment C). All three alternatives are estimated to have a positive fiscal impact on the City’s General Fund. At complete buildout in 2050, Alternative A (Annexation) is estimated to achieve the greatest gains in net revenues. Note the fiscal impact analysis studied the three alternatives, but not the Preferred Land Use Alternative (modified Alternative C – Hybrid) that includes an additional 265-acres of land planned for annexation.
The costs of th e General Plan Update a re covered under the approved budget for the General Plan Update, which is $1.7 million from the City’s general fund as well as the Regional Early Action Planning (REAP) and the Local Early Action Planning (LEAP) grants.
Impact to the Community
During the next phase of the project, the Preferred Land Use Alternative will inform and complement updated General Plan policies related to land use, urban design, mobility, parks, infrastructure, public facilities and services, and economic development.
ATTACHMENTS
A: Preferred Land Use Alternative Technical Memorandum
B: Alternatives Technical Memorandum
C: Fiscal Impact Analysis
Preferred Land Use
Alternative
ATTACHMENT A
Preferred Alternative Memorandum
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Preferred Alternative Memorandum
Table of Contents
Introduction ........................................................................................................................................................................ 1 Development and Review of the Land Use Alternatives ........................................................................................... 3 Recommended Preferred Land Use Alternative ........................................................................................................ 8 Appendix A: Property Owner Requests ...................................................................................................................... 18 Appendix B: Land Use Designations ........................................................................................................................... 19 Appendix C: Alternatives Work Products ................................................................................................................... 24 Appendix D: Survey Results ........................................................................................................................................... 25
Figures
Figure 1: Areas of Change and Stability ........................................................................................................................ 4 Figure 2: Existing General Plan Land Use (left) Compared to Preferred Alternative Land Use (right) ......... 13 Figure 3: Existing General Plan Land Use .................................................................................................................. 14 Figure 4: Changes from Existing General Plan Land Use ....................................................................................... 15 Figure 5: HDR Land Use Designation .......................................................................................................................... 16 Figure 6: Preferred Alternative Land Use ................................................................................................................... 17
Tables
Table 1: Alternatives Analysis .......................................................................................................................................... 6 Table 2: General Plan Land Use Mix ............................................................................................................................ 12
Preferred Alternative Memorandum
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Preferred Alternative Memorandum | 1
Introduction
About the Santa Maria General Plan Update
The City of Santa Maria is undertaking a multi-year effort to update its General Plan to establish strong and visionary policies that support economic development, sustainability, and improved quality of life in the city.
A General Plan is a comprehensive, long-term plan for the physical development of a city, including future land use, conservation, transportation, housing, safety, and environmental justice. Future capital improvements, specific plans, zoning actions, development agreements, and subdivisions must be consistent with the General Plan, and General Plan policies can guide future local decision-making across a range of topics.
The Santa Maria General Plan Update, which will plan development in Santa Maria through the year 2045, is an opportunity for the community to help define the long-term needs of residents, businesses, and employees and the strategies to meet those needs. The General Plan Update has five major phases, which are designed as step-by-step building blocks (see the image below). The project is currently at the end of Phase 3, the “Plan Alternatives” phase.
Purpose of this Memorandum
The purpose of this Memorandum is to present a recommended Preferred Land Use Alternative for City staff, Planning Commission, and City Council review and approval.
The General Plan land use map identifies the allowed uses and the development intensity (measured in dwelling units per acre, floor area ratio (FAR) or jobs/residents per acre) across the City. Zoning districts must be consistent with the General Plan land use designations. Land Use Alternatives model different options for changing the General Plan land use map to accommodate future growth.
The Preferred Land Use Alternative is selected from the Alternatives or incorporates elements of more than one Alternative. The Preferred Land Use Alternative selected becomes the foundation for the Land Use Map and related policies that will be included in the updated General Plan.
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This Memorandum briefly describes the process to arrive at the recommended Preferred Land Use Alternative, describes the recommended Preferred Land Use Alternative, and defines its role in the rest of the General Plan Update process.
The Preferred Land Use Alternative represents the culmination of analysis and input from the community and City staff that occurred during the General Plan Update process from 2020 to present.
This work cannot be summarized in full in this Memorandum; therefore, it is recommended that the reader refer to the appendices for more information about precedents the Preferred Alternative builds on. More information about the Alternatives can be found in the Alternatives Technical Memorandum, the Alternatives Analysis, and Fiscal Impact Analysis, linked here and in Appendix C. Links to other Alternatives work products are linked in Appendix C; all other project materials can be found at www.imaginesantamaria.com/resources, the General Plan Update’s project website.
Next Steps in the General Plan Update
After the City Council approves the direction of the Preferred Land Use Alternative, City staff will continue to review and refine the updated General Plan Land Use Map. City Council will have an opportunity to review the General Plan Land Use Map later in the General Plan Update process and will approve the final Land Use Map before adoption. As the General Plan Update process proceeds, the following additional changes may be considered:
• Broadway Mixed Use and Main Mixed Use Designations. City staff may continue to make minor changes (e.g., allowable heights, densities, parcel-specific designation changes, etc.) to the Broadway Mixed Use and Main Mixed Use designations. Changes may be based on further analysis of development feasibility, property owner interest, recent development trends, and other inputs.
• Transportation planning and land use planning. City staff will conduct further study to ensure the Land Use Map results in development compatible with existing roadways in Santa Maria.
Staff may consider building interfaces with streets, parking, loading, and more. • Final land use designations. City staff may continue to make minor changes to the Land Use Map and designations as necessary.
The Preferred Land Use Alternative is the foundation for much of the rest of the General Plan, but importantly, it does not address in detail many of the related General Plan topics. The following more detailed analysis of the Preferred Land Use Alternative will be completed:
• Transportation Analysis of the Preferred Alternative: The need for enhancements to the vehicular, active transportation, and transit networks as well as required congestion and VMT mitigation will be assessed.
• Infrastructure Analysis of the Preferred Alternative: The impacts to water, wastewater and stormwater systems will be evaluated relative to existing infrastructure master plans. • Facility and Service Needs Analysis of Annexation: A high-level analysis will be conducted to identify potential water, sewer, stormwater, and utility system improvements needed for future uses in potential annexation areas.
Preferred Alternative Memorandum | 3
• Fiscal Assessment of Annexation: A fiscal impact analysis will be completed of projected City revenues and expenses associated properties identified for annexation to illustrate the extent of fiscal impacts for the City.
The Preferred Land Use Alternative and the above analysis, in turn, will inform the revision of land use designations and the preparation of General Plan policy frameworks, which will outline goals, policies, and implementation actions for inclusion in the draft General Plan. The policy frameworks will guide City direction on critical topics—including land use, parks, urban design, mobility, infrastructure, public facilities and services, and economic development—in a level of detail greater than could be analyzed in the Plan Alternatives phase. The land use designations and the policy frameworks will serve as the foundation for the updated Draft General Plan.
Development and Review of the Land Use Alternatives
Key steps in Phase 3 of the General Plan Update Process, “Plan Alternatives” are described in this section.
Land Use Alternatives
Alternatives Technical Memorandum
This Phase began with the development of Land Use Alternatives. Land Use Alternatives identify different growth options the City has to achieve the community’s Vision for the future and implement the Guiding Principles. The Land Use Alternatives were distinguished by where they propose changes in General Plan land use designations in different areas across the city. Three Land Use Alternatives were prepared and are described in detail in the Alternatives Technical Memorandum (Appendix C). Critical information about the Alternatives is summarized below.
Inputs
The Land Use Alternatives were developed based on a range of inputs, including:
• Community engagement from Phases 1 and 2 of the General Plan Update process; • Technical reports on existing conditions;
• Direction established in the Vision and Guiding Principles and the map of Areas of Change and Stability, as adopted by the City Council (see Figure 1); and • Input from Planning Commission, City Council, and City staff.
Preferred Alternative Memorandum | 4
Figure 1: Areas of Change and Stability
Preferred Alternative Memorandum | 5
Growth Planned For
The three Land Use Alternatives all planned for a minimum amount of job and housing growth. Though the General Plan horizon is 2045, the analysis anticipated growth needs through the year 2050 to align with growth projections produced by the Santa Barbara County Association of Governments (SBCAG).
The analysis was based on an understanding of how much housing and employment growth to plan for, which were projected based on potential Regional Housing Need Allocation (RHNA) cycles through the year 2050, SBCAG growth projections, and input from the Technical Advisory Committee (TAC), City staff, and the Department Advisory Group (DAG). Alternatives growth also takes into account growth the City has already planned via Specific Plans and current pipeline projects.
The Land Use Alternatives all accommodated a minimum of 9,270 housing units and aimed to ensure job diversity and to achieve a net increase of close to 16,000 jobs, which exceeds SBCAG job projections and results in a jobs to housing ratio of 1.2.
Land Use Alternatives Descriptions
The three Land Use Alternatives presented in the Alternatives Technical Memorandum (Appendix C) were:
• Alternative A: Annexation. This Alternative assumed annexation of 1,770 acres outside of City limits.
• Alternative B: City Infill. This Alternative intensified housing and job growth on major corridors and opportunity sites within City limits.
• Alternative C: Hybrid. This Alternative was a hybrid of Alternatives A and B and assumed annexation of 720 acres outside City limits.
Alternatives Technical Analysis
The purpose of the Alternatives technical analysis (Appendix C) was for the community and the City to assess trade-offs among the Alternatives and identify which Alternative (or combination of Alternatives) best fulfills the community’s Vision. This analysis of the three Land Use Alternatives included an analysis of land use impacts; environmental constraints; transportation impacts; market demand; and fiscal impacts.
Table 1 provides a high-level summary of the relative level of land use, environmental, fiscal, and economic impacts associated with each alternative. Some impacts in Table 1 on the following page are visualized with dots. This summary of impacts considers the severity of constraints and the ease of potential mitigation. Fewer dots represent less severity of constraint and greater ease of potential mitigation relative to the other Alternatives. For a full summary of the results of the Alternatives Analysis, see Appendix C.
Higher Impact / Harder to Mitigate
Lower Impact / Easier to Mitigate
Preferred Alternative Memorandum | 6
Table 1: Alternatives Analysis
Metric Alternative A: Expansion Alternative B: City Infill Alternative C: Hybrid Land Use
Greenfield land consumed
Development to retail and transit
Walk access to retail and transit
GHG emissions per capita
Environmental
Cultural and historic resources
Air quality
Geologic and flood hazards
Oil and gas well hazards
Agricultural
Noise
Biological/critical habitat
Fire services
Police services
Mobility
Vehicular network Requires new roadways Requires new roadways LOS & Congestion Congestion mitigation required on SR-135, Main Street, and Betteravia Road LOS mitigation required Slightly more LOS
mitigation required
LOS mitigation required
VMT Strive for jobs-housing balance, alternative commute modes, and CEQA VMT threshold compliance
VMT mitigation required VMT mitigation required
Active transportation network Implement Active Transportation Plan Transit system New services required New services required Road sections and diets Update roadway sections; implement road diet policy Emerging technologies Adopt appropriate technologies
Market Demand and Fiscal Impacts
Housing demand All allow sufficient capacity for housing demand Industrial, retail, and office demand All allow sufficient capacity for industrial, retail, and office space Provides the greatest
excess capacity
Fiscal impact All expected to have a positive fiscal impact
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Stakeholder Review and Input
The Alternatives and the results of the technical analysis were presented to the community for review and evaluation. The City of Santa Maria hosted the following engagement activities to gather feedback on the Alternatives:
• Orientations. The City hosted a virtual orientation on April 5, 2023 and in-person orientation on April 6, 2023. The orientations featured a presentation of the three Land Use Alternatives.
Participants were given an opportunity to ask questions about the Land Use Alternatives and were directed to take the online survey (see below). Spanish and Mixteco interpretation was available and recordings of presentations in all three languages were posted on the project website, https://www.imaginesantamaria.com/, following the meeting. Approximately 70 people attended the orientations.
• Online Survey. An online survey was available in English and Spanish on the project website. The survey was available from April 5 through May 2, 2023. 212 people took the survey in English, and 8 took the survey in Spanish. The results are summarized in Appendix D. • Office Hours. The City hosted in-person office hours on April 18 and 19, 2023. The first meeting was held in person while the second meeting was held virtually over Zoom. These meetings were advertised as opportunities for community members to drop in and ask questions about the Land Use Alternatives.
• Technical Advisory Committee Meeting. The General Plan Technical Advisory Committee (TAC) met virtually on April 6, 2023 to provide input on the three Land Use Alternatives. • Department Advisory Group Meeting: The General Plan Department Advisory Group (DAG) met on April 10, 2023 to provide input on the three Land Use Alternatives. • Property Owner Requests: Over the course of the project, City staff have received requests from property owners for General Plan land use designation changes. These changes have been reviewed and may be incorporated into the final General Plan Land Use Map, as appropriate. A full list of requests is included in Appendix A.
The orientations, office hours, and online survey were advertised to the community on the General Plan Update project website, via City email distribution lists, and on the City’s local cable tv station.
Summary of Stakeholder Input
When it came to the preferred alternative for future growth, the survey feedback appeared to be evenly split between Alternative B City Infill (41%) and Alternative C Hybrid (40%). The most important outcome (desired by almost 40% of the survey respondents) was better walkability to destinations, followed by reduced traffic congestion. Additionally, almost 60% of the survey respondents either strongly or somewhat supported allowing more high-density buildings along Broadway and Main Street. However, respondents favored densities closer to those assumed in Alternative C: Hybrid. For a more detailed summary of the survey questions and open-ended responses, please refer to Appendix D.
Other input from the DAG, TAC, and office hours included:
• Ensure existing residents in areas underserved by parks, public facilities, services, and commercial uses in the northwest portion of the city benefit from land use changes.
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• Ensure there will be adequate school, infrastructure, police, fire, and healthcare facilities to serve the growing population.
o Alternative B: City Infill could be challenging from a schools, parks, and public facilities perspective since there are not a lot of viable sites for new facilities in the center of the city, where most population growth is expected.
• City department heads generally favor annexation.
• Consider also annexing the area that is north of Main Street and directly east of current City limits because a new water main is serving that area.
• US-101 will bisect the city if it annexes land eastward, so it’s important to establish safe east- west connections.
• Need to understand infrastructure needs, public facility needs, etc. for conversations regarding annexation with the Local Agency Formation Commission (LAFCO).
Recommended Preferred Land Use Alternative
Vision of the Preferred Land Use Alternative
Reflecting stakeholder input, the Preferred Land Use Alternative balances growth within City limits and on 985 acres of annexed land to the east of current City limits.
Within City Limits
Within City limits, the Preferred Land Use Alternative allows for increased residential development density along Main Street and Broadway. This direction is consistent with the Santa Barbara County Association of Governments (SBCAG) Regional Transportation Plan and Sustainable Communities Strategy (RTP/SCS), which envisions mixed use development and development intensification, among other recommendations, to complement transportation improvements along these corridors.
Outside of Broadway and Main Streets, the Preferred Land Use Alternative also allows for increased residential development density on “opportunity sites” that have high potential to redevelop during the planning horizon1 and allows for residential, institutional, and employment growth occur in strategic locations around the city. Area 9 is an area that has been identified for potential changes, where new housing, commercial, and industrial uses provide more opportunities for living and working on the west side of the city.2
Downtown will continue growing under the direction of the Downtown Specific Plan, where housing, employment and public space development create more vibrancy and activity in the heart of Santa Maria. A large parcel west of Broadway and north of Taylor Street is designated as Community Facilities
1 Redevelopment likelihood based on existing floor area ratio, input from City staff, and an analysis of building value relative to land value.
2 Currently the Area 9 Specific Plan allows the following land uses, with land uses allowed along A street highlighted in bold: Light Industrial (LI); Heavy Commercial Manufacturing/Agriculture (HCM/AG); Heavy Commercial Manufacturing (HCM); General Industrial (GI); Community Commercial (CC); Conservation Open Space (COS); Commercial/Professional Office (CPO). Residential is currently allowed in the CPO zone under the Mixed Use Ordinance.
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to accommodate public uses like schools, open spaces, and government uses in the northwest portion of the city, where there may be future need.
The allowable land use mix and intensity in most existing neighborhoods in Santa Maria do not change significantly under the Preferred Land Use Alternative.
Outside Current City Limits
Outside of existing City limits, the Preferred Land Use Alternative allows for a mix of commercial, housing, and institutional uses on annexed land, providing employment, entertainment, retail, and recreational opportunity for existing and new residents alike. New residential neighborhoods outside City limits will be “complete neighborhoods,” where residents can conveniently access new neighborhood commercial areas, parks, and public facilities like schools, government facilities, and recreation centers. Employment growth in annexation areas will be focused along US-101 to capitalize on regional transportation connections and create a range of jobs in the industrial, office, and retail sectors. New employment uses adjacent to Marian Regional Medical Center and Hancock College will create opportunities for expansion of these campuses or co-location of complementary land uses, like medical offices, housing, and retail.
Preferred Land Use Pattern
Proposed Changes from the Existing General Plan Land Use Map The Preferred Land Use Alternative differs from the land use pattern established in the existing General Plan and existing Specific Plans. A full table of Preferred Land Use Alternative land use designations is found in Appendix B. Likewise, Figures 3-6 illustrate the land use pattern adjustments. Figure 3 shows existing General Plan land use for Santa Maria. Figure 4 shows parcels that have changed in designation from the existing General Plan. Figure 5 shows the distribution of High Density Residential land uses (under the Preferred Land Use Plan, the allowed density of the High Density Residential designation increases from 22 du/ac to 30 du/ac). Finally, Figure 6 shows the distribution of land uses for Preferred Alternative throughout the city.
Specifically, the Preferred Land Use Alternative would:
• Create a larger General Plan Planning Area by assuming annexation of land in three areas to the east of current City limits.
o The first annexation area would be roughly bordered by Vineyard Trail Road to the south, US-101 to the west, Jones Street to the north, and Suey Road to the east. o The second annexation area would include land bordered by Jones Street to the south, Suey Road to the west, Main Street to the north, and Panther Drive to the east. o The third annexation area would include land bordered by E. Main Street to the South, Panther Drive to the west, and the existing City limits to the north and east along the land fill.
• Create three new land use designations: Broadway Mixed Use (BMU) and Main Mixed Use (MMU), both of which allow up to 35 dwelling units/acre, as well as Planned Annexation (PA) (see the Annexation Land Use Policy Direction section immediately below).
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o Eliminate the Medium Density Residential-10 (MDR-10) General Plan land use designation and reassign all parcels currently with this designation to Medium Density Residential-12 (MDR-12) to allow up to 12 dwelling units per acre (du/ac). This better aligns the MDR designation with the corresponding Zoning District, R-2, which allows up to 12 du/ac. • Revise the existing High Density Residential (HDR) designation to allow up to 30 du/ac (the current maximum is 22 du/ac). This increase in density is consistent with State affordable housing law.
• Slightly refine land use designation descriptions.
• Potentially require revisions to the following Specific Plans:
o Amend the Downtown Specific Plan to reflect a new maximum density/intensity established by the General Plan.
o Amend the Entrada Specific Plan to reflect the new Broadway and Main Mixed Use designation.
o Amend the Area 9 Specific Plan to allow low density residential uses along A Street, consistent with the LMDR-8 designation.
• Revise General Plan land uses on a few parcels to reflect project-specific changes in land use designations.
Annexation Land Use Policy Direction
The Preferred Land Use Alternative establishes a new land use designation, Planned Annexation, that will allow for a mix of commercial, residential, industrial, and public land uses in annexed land outside of current City limits. Infrastructure, transportation, and public facility needs as well as environmental and fiscal impacts of the annexation area will be studied further as part of the General Plan update process.
Based on that analysis, General Plan policies will outline a vision and the City’s priorities for future land use, transportation, parks and open spaces, economic development, public facilities, and infrastructure in the annexation areas, but it is assumed the City will develop a specific plan for annexation areas following adoption of the General Plan to provide more detailed guidance on development standards and capital improvements.
From a land use and community design perspective, the following policies will be considered for inclusion in the General Plan land use policy framework to guide land use direction of future planning efforts in annexation areas:
• Require buffering of schools, parks, and homes from infrastructure, major roadways, the Santa Maria regional landfill, industrial land uses, and other land uses that may produce odor or noise or negatively impact air quality.
• Provide 5 parks per 1,000 residents, per the City’s park service standard and plan for new public and recreational facilities.
• Apprise local school districts of anticipated population growth and future planning efforts in the annexation area in order to inform the districts’ facility planning efforts. • Develop a safe, connected network of sidewalks and trails that provides ample connections to destinations.
• Design complete neighborhoods where residents have convenient walking and biking access to public facilities, services, and retail.
• Provide a diversity of housing types for rental and ownership at a range of price points.
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• Site new employment uses near existing institutions, such as educational or research and development (R&D) near Marian Regional Medical Center and Hancock College, and industrial or office along US-101 to provide convenient access to regional transportation.
Land Use Mix
The land use mix of the existing General Plan compared to the Preferred Land Use Alternative is shown in Table 2 and illustrated in Figure 2.
As shown in the table and figure, the Preferred Land Use Alternative redesignates many parcels designated as Community Commercial to either Main Mixed Use or Broadway Mixed Use, decreasing the amount of commercial acreage while creating new Mixed Use acreage. Under the Preferred Land Use Alternative, Industrial/Airport acreage is unchanged, Planned Future Development acreage increases significantly due to annexation, and Public and Open Space acreage increases slightly. Total residential land use acreage decreases slightly due to redesignating a vacant Low Density Residential parcel to a Community Facilities designation; however, additional residential uses would be developed as a part of the Planned Annexation area. The acreage for some other land use categories also changes slightly due to minor changes in the General Plan land use map that reflect recent development projects, as noted above.
Per Figure 2, the percentage of different land uses as a percentage of the city appears to change for all categories even though, as described above, the total acreage of some categories will only change slightly. This is largely due to the fact that the Preferred Land Use Alternative assumes annexation of land in the Planned Annexation Area, which increases the total acreage in the city. Future Specific Plans or master plans for the Planned Annexation Area may also change the percentage of land use types relative to total acreage.
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Table 2: General Plan Land Use Mix
Existing General Plan Preferred Land Use Alternative
Designation Acres Percent Acres Percent
Residential 5,412 35.9% 5,376 33.5%
Lower-Density Residential (LWDR-4) 645 4.3% 645 4.0%
Low-Density Residential (LDR-5) 2,810 18.7% 2,776 17.3% Low-Medium Density Residential (LMDR-8) 607 4.1% 607 3.8% Medium Density Residential (MDR-10) 9 0.1% - -
Medium Density Residential (MDR-12) 612 4.1% 621 3.9%
High Density Residential (HDR-16) 9 0.1% - -
High Density Residential (HDR-22) 717 4.8% - -
High Density Residential (HDR-30) - - 727 4.5%
Mixed Use - - 452 2.8%
Broadway Mixed Use (BMU-35) - - 375 2.3%
Main Mixed Use (MMU-35) - - 77 0.5%
Commercial 1,488 9.9% 1,025 6.4%
Community Commercial (CC) 1043 7.0% 580 3.6%
Commercial/Professional Office (CPO) 363 2.1% 364 2.3%
Freeway Service (FS) 50 0.3% 50 0.3%
Neighborhood Commercial (NC) 31 0.2% 31 0.2%
Industrial/Airport 3,304 21.9% 3,311 20.6%
Light Industrial (LI) 1,003 6.7% 1,010 6.3%
General Industrial (GI) 549 3.7% 549 3.4%
Heavy Commercial/Manufacturing (HCM) 784 5.2% 784 4.9%
Airport Service (AS) 968 6.5% 968 6.1%
Public and Open Space 4,564 30.3% 4,597 28.7%
Primary Agricultural Open Space (AOS-1) 368 2.5% 368 2.3% Secondary Agricultural Open Space (AOS-2) 906 6.0% 906 5.7% Conservation Open Space (COS) 323 2.2% 323 2.0%
Recreation Open Space (ROS) 1,765 11.8% 1,754 10.9%
Community Facilities (CF) 1,203 8.0% 1,245 7.8%
Planned Future Development 270 1.8% 1,282 8.0%
Specific Plan (SP) 291 1.8% 297 1.9%
Planned Annexation Area (PA) - - 985 6.1%
Total 15,058 100% 16,043 100%
Note: Numbers may not add due to rounding. Numbers in red indicate changes in acreage totals.
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Figure 2: Existing General Plan Land Use (left) Compared to Preferred Alternative Land Use (right)
Complementary General Plan Policies
As noted above, during the next phase of the project, the Preferred Land Use Alternative will inform and complement updated General Plan policies related to land use, urban design, mobility, parks, infrastructure, public facilities and services, and economic development. Specifically, policies focused on transportation and public realm improvements will focus on expanding easy neighborhood access to necessities like food, services, and recreation. Likewise, policies will ensure that new parks and public facilities support existing and new neighborhoods.
33%
3%6%
21%
29%
8%
Residential Mixed Use
Commercial Industrial/Airport
Public and Open Space Planned Future Development
36%
10%22%
30%
2%
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Figure 3: Existing General Plan Land Use
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Figure 4: Changes from Existing General Plan Land Use
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Figure 5: HDR Land Use Designation
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Figure 6: Preferred Alternative Land Use
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Appendix A: Property Owner Requests
The following table lists requests from property owners to change existing zoning. The City’s Zoning Map is required per State law to be consistent with General Plan land use, so proposed changes in zoning district may require changing existing General Plan land use. City staff and the consultant team will consider General Plan land use designation changes on the listed parcels following direction from City Council on the Preferred Land Use direction.
Address/APN Current Zoning Requested Zoning
212 N. Benwiley
119-253-009
CM R-3
300 N. Benwiley
119-214-011
CM R-3
304 N. Benwiley
119-214-007
CM R-3
714 S. Blosser Rd.
123-140-032
M-2 R-3
616 S. Thornburg
123-132-012
PD/M-1 R-3
428 S. Thornburg
123-082-008
PF R-3
1095 W. McCoy Lane
111-051-025
PD/M-1 MHP
1955 A Street (Donati)
117-770-062
PD/CPO, PD/M-1 PD/R-3, PD/R-1,
PD/C-2, PD/PF
SE Corner of College and
Stowell (Hancock property)
128-066-031, 129-066-030
PF R-3
725 S. Depot Street
123-150-031
123-150-032
123-150-033
PD/CM
PD/CM
PD/C-2
PD/R-3
PD/R-3
PD/R-3
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Appendix B: Land Use Designations
Land Use Designations
Designation Description
Residential
Residential Agricultural
(RA)
To create a transition area between agricultural and strictly urban uses, as well as provide for a particular residential lifestyle.
Allowed uses: Low-density dwelling units, noncommercial agricultural activities, the keeping of horses and certain commercial agricultural activities on larger (suggested minimum of 5- to 10-acre) parcels.
Density: Max 2 du/ac
Height maximum: 25 feet
Lower-Density
Residential (LWDR-4)
Single-family detached dwelling units with overall (average) density not to exceed four dwelling units per acre with variable lot sizes for single family detached units up to one acre in size.
Allowed uses: Single-family detached dwelling units with variable lot sizes for single family detached units up to one acre in size.
Density: Max 4 du/ac
Height maximum: 30 feet
Low Density Residential
(LDR-5)
To encourage new areas with overall densities responsive to the economic considerations of providing new housing, on a wide range of standard sized lots. providing the amenities and open spaces associated with traditional single-family areas and stabilizing existing areas by discouraging intensification of density.
Allowed uses: Single-family detached dwelling units with variable lot sizes for single-family detached units up to one-fourth acre in size.
Density: Max 5 du/ac
Height maximum: 30 feet
Low Medium Density
Residential (LMDR-8)
To encourage densities that are responsive to the economic considerations of providing affordable single-family housing on small lots while at the same time maintaining adequate individual private open space, design flexibility, and the character of a single-family neighborhood.
Allowed uses: Single-family detached dwelling units, with variable lot sizes for single-family detached units. This development type would usually require zero side yard development to maximize private, usable yards. Developments without zero side yards may require the larger lots and setbacks typically found in the R-1 zones.
Density: Max 8 du/ac
Height maximum: 30 feet
Medium Density
Residential (MDR-12)
To encourage new development while stabilizing existing development. Allows a mixture of unit types. while maintaining the feeling of a single-family neighborhood. To encourage reinvestment in older areas, and provide a land conservation measure by inducing development away from yet undeveloped areas.
Allowed uses: Single-family, detached and attached, duplexes; triplexes; and larger multi-family complexes.
Density: Max 12 du/ac
Height maximum: 30 feet
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High Density Residential
(HDR-30)
To provide for an urban residential environment, preferably close to shopping facilities and existing activity centers, as well as provide an incentive for reinvestment in older established areas.
Allowed uses: Duplexes, triplexes, and larger multi-family complexes.
Density: Max 30 du/ac
Height maximum: 35 feet
Mixed Use
Main Mixed Use (MMU)
To allow for multi-story, multi-use development along Main Street contextual with adjacent residential uses. The intent is to allow for the creation of commercial uses mixed with multi-family housing to create opportunities to live on the Main Street corridor and encourage activity and vitality on Main Street. Uses may be mixed horizontally or vertically, though active ground floor uses, such as restaurants and retail, are encouraged. Design requirements, such as building stepbacks, may be employed to transition to residential uses on adjacent streets.
Allowed uses: Retail, restaurants, service commercial (such as banks or real estate offices), service establishments (such as medical clinics and beauty shops), office buildings, hotels, multi-family housing, townhomes, duplexes. Residential uses are not required in this district.
Density: Max 35 du/ac
Height maximum: 70 feet
Broadway Mixed Use
(BMU)
To allow for multi-story, multi-use development along Broadway. The intent is to allow for the creation of commercial uses mixed with multi-family housing to create opportunities to live on the Broadway corridor and encourage activity and vitality Downtown. Uses may be mixed horizontally or vertically, though active ground floor uses, such as restaurants and retail, are encouraged on the ground floor.
Allowed uses: Retail, restaurants, entertainment, bars, service commercial (such as banks or real estate offices), service establishments (such as medical clinics and beauty shops), office buildings, hotels, multi-family housing. Residential uses are not required in this district.
Density: 35 du/ac
Height maximum: 70 feet
Commercial
Community Commercial
(CC)
To include the majority of retail uses outside the central core, particularly along the lineal development corridors which have emerged. The majority of these uses would be geared to the area-wide market.
Allowed uses: Variety of retail uses, excluding "heavy", land extensive or quasi-industrial commercial uses such as lumber yards, agricultural equipment yards, pipe supply works, etc.
Height maximum: 70 feet
Commercial/
Professional Office (CPO)
To provide areas for offices, which may be compatible with a range of other uses.
Allowed uses: Office development for the following services: medical, legal, travel agencies, insurance, and real estate services, as well as a certain complementary commercial uses.
Height maximum: 35 feet
Freeway Service (FS) To accommodate the needs of the traveling public along major transportation corridors.
Allowed uses: Motels, service stations, restaurants, and rest stops.
Height maximum: 40 feet
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Neighborhood
Commercial (NC)
To provide areas which offer convenience goods and services to local residents without disrupting the residential character of an area. These areas are intended to be small in size and not geared to providing a multitude of more specialized goods and services serving a community-wide or regional market.
Allowed uses: Supermarkets, convenience grocery stores, drug stores, laundromats, bakeries, shoe repair shops.
Height maximum: 30 feet
Industrial/Airport
Light Industrial (LI)
To accommodate industrial uses which contain the process primarily within the building, do not generate negative environmental impacts, and which are most compatible with adjacent nonindustrial uses.
Allowed uses: Research facilities, light assembly plants, non-public-oriented-offices and industrial support offices, tractor sales and display when the property is adjacent to the freeway, and churches on a temporary basis.
Height maximum: 35 feet
General Industrial (GI)
To provide areas for all types of heavy industrial uses, but particularly those which need to be separated from other land uses because of the impacts associated with these activities, such as heavy truck traffic, noise, odor, or dust.
Allowed uses: Range of industrial uses, including heavy manufacturing, heavy trucking operations.
Height maximum: 40 feet
Heavy Commercial/
Manufacturing (HCM)
To permit activities that manufacture and retail on the same site as well as other heavy commercial uses which may be land extensive, require transport of materials by heavy truck, require large loading and docking areas, and where the possibilities of heavy noise generation exist.
Allowed uses: Lumberyards, boat works, warehouses, building supply dealers, mobile home sales, farm equipment sales, equipment repair, and churches within an existing building.
Height maximum: 40 feet
Airport Service (AS)
To provide a broad category facilitating the airport and airport-related commercial and industrial uses not adversely affected by airport operations, to provide for specific areas for aircraft operation and navigation aids, and to minimize the hazard to safe landing and take-off of aircraft.
Allowed uses: Full range of uses, including airport operation and support activities.
Public and Open Space
Primary Agricultural
Open Space (AOS-1)
To preserve certain areas for present and future agricultural production. It also provides for limited residential uses.
Allowed uses: Intensive crop agricultural uses. All land classified as prime agricultural (Class I and II soils).
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Secondary Agricultural
Open Space (AOS-2)
To preserve certain areas for present and future agricultural production. It also provides for limited residential uses.
Allowed uses: Less intensive agricultural uses, including grazing. Includes some lands that are not prime agricultural but are an agricultural buffer and are not now considered suitable for urban expansion.
Conservation Open
Space (COS)
To protect natural resources, provide scenic protection, act as an urban agriculture buffer, allow mineral extraction, and act as a safety buffer between the urban land uses and the levee. It also provides for limited residential uses.
Allowed uses: Includes areas subject to flood hazard, significant groundwater recharge areas, well farms, areas adjacent to creekbeds, areas of surface and sub-surface mineral extraction, levee buffer, airport safety areas, and publicly owned landscaped areas.
Recreational Open Space
(ROS)
To provide for recreation and scenic protection and provide scenic areas along railroad rights-of- way
Allowed uses: Existing and proposed recreational facilities, including neighborhood, community, and regional parks; bikeways; equestrian trails; jogging paths; selected public utility and railroad rights- of-way and associated uses where the right-of-way corresponds to the adopted Bikeways Plan; and publicly owned and operated sanitary landfill operations that have the potential for reclamation and development into the aforementioned recreational facilities.
Community Facilities (CF)
To provide for necessary facilities for use by the public.
Allowed uses: Public facilities, including schools and government buildings.
Height maximum: 35 feet
Planned Future Development
Specific Plan (SP)
To encourage comprehensive planning and urban design flexibility for large land areas through the adoption of a Specific Plan. Such flexibility allows the City to adopt a set of land use specifications and implementation programs tailored to the unique characteristics of each area.
Allowed uses: The Specific Plan designates all land uses, and the geographic boundaries of each use, allowed in the specific plan area. Each use must be consistent with the adopted Specific Plan and the corresponding zoning noted in the plan.
Height maximum: Height depends on each Specific Plan.
Planned Annexation Area
(PAA)
To encourage comprehensive planning and urban design flexibility for large annexation land areas (over 60 acres) through the adoption of a specific plan or master plans following the General Plan Update process, as the City proceeds with annexation. Such flexibility allows the City to adopt a set of land use specifications and implementation programs tailored to the unique characteristics of each area.
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Allowed uses: The specific plan or master plan will designate all land uses, and the geographic boundaries of each use, allowed in each area. Potential uses include residential (single-family homes, townhomes, duplexes, multi-family), public and institutional, parks and recreation, and non- residential (industrial, office, retail, services, etc.) Density: Maximum density will be defined during a specific or master plan process.
Notes:
1. Single-family zones are subject to SB9, which was passed in 2021. This law allows for parcels in single-family zones to be subdivided and duplexes built on each lot.
2. The maximum residential density of any residential land use designation may be exceeded to complement General Plan Housing Element policy (in accordance with the City’s inclusionary housing ordinance and density bonus provisions of Section 65915 of the California Government Code).
3. The City does not currently regulate intensity in its zoning or the General Plan. The final General Plan may regulate maximum intensity via floor area ratio.
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Appendix C: Alternatives Work Products
Alternatives work products are linked in this Appendix. These work products and all products produced for the General Plan Update are found on the project website:
https://www.imaginesantamaria.com/resources
.
• Land Use Alternatives Orientation Videos in English, Spanish, and Mixteco • Land Use Alternatives Presentation Slides (English)
• Land Use Alternatives Presentation Slides (Spanish)
• Alternatives Technical Memorandum
• Alternatives Analysis
• Fiscal Analysis
Preferred Alternative Memorandum | 25
Appendix D: Survey Results
ATTACHMENT B
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Introduction ........................................................................................................................................................................ 1 Role of Alternatives in the Planning Process ............................................................................................................... 1 Key Factors Driving Alternatives ................................................................................................................................... 12 Introduction to Land Use Alternatives ........................................................................................................................ 18 Alternative A: Annexation ............................................................................................................................................... 27 Alternative B: City Infill .................................................................................................................................................... 31 Alternative C: Hybrid ....................................................................................................................................................... 35 Growth Projections .......................................................................................................................................................... 39 Mobility Alternatives ........................................................................................................................................................ 40 Public Realm Alternatives ............................................................................................................................................... 47 Appendix A: Mobility Alternatives Memorandum ..................................................................................................... 51 Appendix B: Public Realm Design Options ................................................................................................................ 52 Figure 1: Areas of Stability and Change ........................................................................................................................ 4 Figure 2: General Plan Land Use .................................................................................................................................... 7 Figure 3: Existing Land Use.............................................................................................................................................. 9 Figure 4: Alternative A Land Use Mix........................................................................................................................... 29 Figure 5: Alternative A Land Use .................................................................................................................................. 30 Figure 6: Alternative B Land Use Mix .......................................................................................................................... 33 Figure 7: Alternative B Land Use .................................................................................................................................. 34 Figure 8: Alternative C Land Use Mix .......................................................................................................................... 37 Figure 9: Alternative C Land Use .................................................................................................................................. 38 Figure 10: Cross Section of a Road Diet Concept..................................................................................................... 42 Figure 11: Existing Typical Section for Secondary Arterial (Residential Street) ................................................. 44 Figure 12: Existing Typical Section for Secondary Arterial (Commercial Street) ............................................... 44 Figure 13: Proposed Typical Section for Secondary Arterial (Parking-Protected Bike Lanes) ........................ 44 Figure 14: Proposed Typical Section for Secondary Arterial (Buffered Bike Lanes and Parking) .................. 44 Figure 15: Existing Typical Section for Primary Arterial (Residential Street) ....................................................... 45 Figure 16: Existing Typical Section for Primary Arterial (Commercial Street) ..................................................... 45 Figure 17: Proposed Typical Section for Primary Arterial (Bicycle Lane with Raised Buffer) .......................... 45 Figure 18: Proposed Typical Section for Primary Arterial (Transit Only Lane) ................................................... 46 Figure 19: Primary Arterial ............................................................................................................................................. 48 Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 20: Secondary Arterial ........................................................................................................................................ 48 Figure 21: Toolkit .............................................................................................................................................................. 49 Table 1: General Plan Land Use ..................................................................................................................................... 8 Table 2: Existing Land Use ............................................................................................................................................. 10 Table 3: SBCAG Growth Projections ............................................................................................................................ 15 Table 4: SBCAG Projected Jobs ..................................................................................................................................... 16 Table 5: Minimum Residential Growth to Plan for ................................................................................................... 18 Table 6: Commonalities Across Alternatives ............................................................................................................. 18 Table 7: Land Use Designations ................................................................................................................................... 21 Table 8: Alternative A Land Use Mix ............................................................................................................................ 28 Table 9: Alternative B Land Use Mix ............................................................................................................................ 32 Table 10: Alternative C Land Use Mix.......................................................................................................................... 36 Table 11: Projected New Dwelling Unit and Job Growth ........................................................................................ 39 Table 12: Projected Total Population, Dwelling Units, and Jobs............................................................................ 40 Table 13: Mobility Alternatives Comparison .............................................................................................................. 47
Alternatives Technical Memorandum
Alternatives Technical Memorandum
This Technical Memorandum is the deliverable for Task 4.4 of the General Plan Update scope of work and describes land use, mobility, and public realm Alternatives to address key issues identified so far in the Santa Maria General Plan Update process. The three land use Alternatives build off the areas of change identified as part of work undertaken per scope of work Task 4.2 as well as the working meeting held for Task 4.3 and Technical Advisory Committee input. The information summarized in this report will later be used to for community engagement that informs the selection of a preferred alternative (Task 4.8).
This Technical Memorandum first provides background information about Alternatives, including the role of Alternatives in the General Plan Update process, factors impacting Alternatives development, and growth the Alternatives must plan for. From there, the Technical Memorandum discusses the three land use Alternatives, including commonalities and differences between the Alternatives, land use designations, growth projections and the vision and direction of each Alternative. Mobility and public realm Alternatives are described in detail in Appendices A and B, respectively, but short synopses of these Alternatives are included in the body of the Technical Memorandum.
This Technical Memorandum will be followed by technical analysis on the Alternatives. This technical analysis, scoped as Tasks 4.5 and 4.7, will include an analysis of the fiscal impacts of the three land use Alternatives and an evaluation of the land supply and market demand of the three Alternatives, which is part of Task 4.4. The results of Task 4.6, the traffic analysis of land use Alternatives, is incorporated into Appendix A, the Mobility Alternatives Memorandum.
The City of Santa Maria is undertaking a multi-year effort to update its General Plan to establish strong and visionary policies that support economic development, sustainability, and improved quality of life in the city.
A General Plan is a policy document required by State law that provides long-range guidance for land use, development and other issues such as economic growth, open space, conservation, affordable housing, and employment. The General Plan also offers an opportunity for the community to engage in the planning process and to help define the long-term needs of residents, businesses, and employees.
The Santa Maria General Plan Update will cover topics that are important to the community including those mandated by State law. These include: Land Use and Community Design, Circulation and Mobility, Alternatives Technical Memorandum
Alternatives Technical Memorandum
Safety, Health and Environmental Justice, Conservation/Open Space, Noise, Public Facilities and Services, and Economic Development.
The General Plan Update has five major phases, which are designed as step-by-step building blocks (see the image below). The project is currently in the “Plan Alternatives” phase.
In 2020, during the Existing Conditions phase and to initiate the Listening + Visioning phase, City staff worked closely with the consultant team to systematically collect identify trends, issues, opportunities, and priorities, which are summarized in seven existing conditions reports (ECRs) that are available on the project website, www.ImagineSantaMaria.com.
Throughout the Listening + Visioning Stage, community members shared their vision for the future, qualities of Santa Maria to preserve, and issues to address. This engagement was conducted via nine Technical Advisory Committee meetings, three online surveys, one virtual community workshop, 17 stakeholder interviews, four community cafes conducted in partnership with Central Coast Alliance United for a Sustainable Economy (CAUSE), and meetings with City staff across departments. The City spread awareness of the General Plan Update in English and Spanish via a number of channels, including newsletter emails, utility bill mailers, communications with local non -profit organizations, social media posts, press releases, and updates to the project website, www.ImagineSantaMaria.com. Full results from community engagement, presented in engagement summary reports, can be found on the resources page of the project website, ImagineSantaMaria.com.
Using a systematic process of reviewing all the key findings from the Existing Conditions Reports and community input from the Listening + Visioning Stage, the planning team produced the Vision, Guiding Principles, and Areas of Change and Stability document, which was approved by City Council in April 2021. Specifically, for each General Plan topic (e.g., land use, mobility, hazards, environmental justice, etc.) and for each area of the city, qualities to preserve, opportunities to capitalize on, ch allenges to address, and changes to advance were organized. From there, key themes were summarized to prepare a concise Vision Statement, to develop topic-specific Guiding Principles, and to identify Areas of Change and Stability by neighborhood and corridor. The Vision, Guiding Principles, and Areas of Change and Stability discuss topics central to Santa Maria, including agricultural identity; culture, history, and art;
Alternatives Technical Memorandum
Alternatives Technical Memorandum
community design; community health; natural environment and resilience; housing quality and choice; resilient economy; connected growth; transportation innovations; infrastructure, utilities, facilities, and services; and governance and engagement.
The Plan Alternatives stage builds off of the Vision, Guiding Principles, and Areas of Change and Stability document. The Areas of Change and Stability map identifies Areas of Stability, where limited physical changes are anticipated but improvements continue to be made, as well as areas of potential transformation, where transformational change is planned or should be considered. The Alternatives phase of the planning process focuses primarily on Areas of Potential Transformation. For Areas of Stability and Enhancement, the updated General Plan will incorporate strategies to preserve and enhance existing assets and address needed improvements. The Areas of Stability and Enhancement and Areas of Potential Transformation are shown in Figure 1.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 1: Areas of Stability and Change
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Alternatives identify different land use, mobility, and urban design options the City has to achieve the community’s Vision and implement the Guiding Principles. Land use Alternatives are the foundation.
The land use Alternatives are distinguished by where they propose changes in General Plan land use designations in different Areas of Change across the city. General Plan land use designations identify the intended future use of every parcel of land in the city. According to State law , land use designations must identify the allowed uses and the development intensity (measured in dwelling units per acre, floor area ratio (FAR) or jobs/residents per acre). Zoning districts must be consistent with the General Plan land use designations.
While land use designations provide for overall development intensity and allowed uses, they do not specify the form or character of the building. Different interpretations of the same density and FAR can result in buildings of very different character. To encourage similar interpretations of allowed FARs, other City regulations such as zoning height limits, building setbacks, or open space requirements are used to guide the form of buildings within a given FAR range.
It is important to note a few limitations of land use designations. Land use designations cannot require specific uses or tenants. This means that the General Plan cannot require the type of ownership of buildings (rental versus ownership, or specific tenants in buildings). For example, the Gen eral Plan cannot require or prohibit that specific parcels be used for affordable housing, senior housing, special - needs housing, or prohibit certain types of tenants in commercial spaces (such as chain stores). Further, land use designations do not identify specific locations for parks, schools, and public buildings.
The City’s existing General Plan Land Use Element (LUE) was adopted in 1970 and amended in 2011.
The LUE designates the proposed general distribution, general location, and extent of the uses of the land. The Land Use Classifications (designations) in the LUE provide for the distribution of varying uses as indicated on the Land Use Policy Map and specify the maximum density allowed per gross acre of land. Existing General Plan land use designations are mapped in Figure 2, and their acreages are shown in Table 1. The General Plan defers to the Zoning Ordinance to establish specific development standards, including minimum lot sizes. The existing LUE map and designations will be updated as part of this General Plan Update, though most parcels in the city are not likely to have significant changes to their designations, particularly those identified as Areas of Stability.
The existing General Plan land use map and designations are informed by existing LUE goals, which are as follows:
Goal L.U.1 - Community Character. Maintain and improve the existing character of the community as the industrial and commercial retail center for northern Santa Barbara County and southern San Luis Obispo County.
Goal L.U.2 - Urban Services. Provide all necessary urban services and facilities for present and future city residents, which include providing sufficient land for community facilities (i.e., fire station, police station, library, cultural center, and public transit).
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Goal L.U.3 - Urban Design. The City will promote quality urban design enhancing Santa Maria's character.
Goal L.U.4 - Industrial and Commercial Uses. New employment generating clean and low water demand industry and commercial uses will be encouraged to locate in Santa Maria, and activities of this type presently located in the city will be encouraged to remain.
Goal L.U.5 - Development Continuity. Discourage sprawl and "leapfrog" development.
Goal L.U.6a - Balance Growth. Accommodate new development, balancing social, environmental and economic considerations.
Goal L.U.6b - Preserve Agricultural Resources. Accommodate growth while making every effort to preserve agricultural resources in the surrounding region.
Goal L.U.6c - Urban/Agriculture Equilibrium. Achieve a balance between increased developments and the maintenance, management, and/or preservation of local resources.
Goal L.U.7 - Land Use Conflict Reduction. Reduce existing and potential land use conflicts.
Goal L.U.8 - Planning Coordination. Coordinate planning efforts both within the city and with other jurisdictions in the region.
Goal L.U.9 - Promote Adequate Housing Supply. The City will continue to promote an adequate supply of quality residential development within Santa Maria.
Goal L.U.10 - Promote High Quality Commercial and Industrial Development. Continue to promote quality commercial and industrial development in Santa Maria and encourage the upgrading and revitalization of the existing commercial and industrial areas.
Goal L.U.11 - Balance Land Use Supplies. The City will address the present imbalance between the land area designated for residential development and for those areas designated industrial and commercial development.
Goal L.U.12 - Water Supply. Participate in and implement programs and measures which effectively conserve water.
Existing land use refers to the way land is developed and currently being used in Santa Maria. Existing land use may differ from General Plan land use, which identifies intended future use of each parcel.
Existing land use is important to understand when developing land use Alternatives, particularly when considering existing uses of parcels surrounding areas where change is expected. Figure 3 and Table 2 show existing land use in Santa Maria.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 2: General Plan Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Table 1: General Plan Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 3: Existing Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Table 2: Existing Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
The Alternatives will be reviewed and evaluated by City staff, decision-makers, and the community. The purpose of the Alternatives evaluation is for the community and the City to assess trade-offs among the Alternatives and identify which Alternative (or combination of Alternatives) best fulfills the community’s Vision.
Objective metrics will be used to compare Alternative options for specific physical development and improvement, including the following:
Land use:
Land use mix
Acreage of greenfield development
Range of housing options and which types
Transportation:
Vehicle miles travelled per capita, household, and employees Level of service
Vehicle to capacity ratio
Environment:
Greenhouse gas impacts
Energy use
Development on agricultural land
Cultural resources
Hazards
Critical habitat
Noise
Impact on public services
Fiscal Impact:
City revenues
City expenses
Health and Environmental Justice:
Access to parks and open space
Access to healthy food
Access to transit
Access to retail
Air quality
The Alternatives and the results of the technical analysis will be presented to the community for review and evaluation. Following this step, the Alternatives and the results of engagement will be shared with the Planning Commission and City Council along with recommendations for a Preferred Alternative, Alternatives Technical Memorandum
Alternatives Technical Memorandum
which may be one of the three land use Alternatives or a combination of various components from two or more of the Alternatives. The City Council will approve the Preferred Alternative.
The Preferred Alternative will be evaluated relative to its impacts on infrastructure. If the Preferred Alternative includes annexation, the project team will conduct an Annexation Study to identify infrastructure and capital improvements needed to accommodate future growth in annexation areas.
This task will include a fiscal assessment, which will evaluate projected City revenues and expenses associated with land uses in annexation areas, as well as an evaluation of environmental features and constraints in the annexation area. This task will also include conversations with the Santa Barbara County Local Agency Formation Commission (LAFCO) to discuss annexation and deter mine the process of incorporation of the annexation area into City limits.
The following list of key factors was derived based on findings from existing conditions analysis, conversations with City staff, and review from the Technical Advisory Committee. This is not an exhaustive list of opportunities and constraints in the city, but instead a list of leading factors that shaped land use, mobility, and public realm Alternatives.
Downtown Santa Maria. Downtown is the most walkable part of the city, it has a diverse mix of land uses and housing types, and it has many of Santa Maria’s historic, civic, and cultural resources.
Implementation of the Downtown Specific Plan and the Downtown Multimodal Streets cape Plan could create opportunities for job and population growth and transformational improvements to the roadways and public realm.
ADUs and JADUs. ADU and JADUs are currently allowed in Santa Maria per State law and may be able to accommodate projected housing growth in Santa Maria over the General Plan horizon.
Corridor Revitalization. Either the General Plan or an updated Entrada Specific Plan could include circulation, mobility, streetscape, built form, design components, and incentives for higher d ensities, intensification, and mixed-use redevelopment along the Main and Broadway Corridors, as recommended by the regional Sustainable Communities Strategies (RTP/SCS). The City has limited authority over the Main Street and Broadway rights-of-way because these corridors are owned by the State, but the General Plan Update may be an opportunity to determine if the City should seek to assume responsibility over these corridors from the State.
Vacant land. There is vacant and developable land that can accommodate new housing and/or employment growth over the General Plan horizon.
Opportunity sites. Many developed areas have low improvement ratios and/or a low FAR, indicating redevelopment opportunities.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Character and Design. Commercial and industrial places and streets generally have the greatest potential for improved mobility, enhanced character, and placemaking due to low -slung development and large areas devoted to surface parking. Residential places and streets are generally more stable, although opportunities do exist for public realm, streetscape, and connectivity improvements.
Improving Access to Amenities, Schools, and Services. Residents in most areas of the city do not have convenient walking access to schools, parks, food, and/or retail. The GPU may be an opportunity to introduce more walking and biking infrastructure to better connect people with amenities, and introduce commercial land uses near primarily residential areas to provide more access to amenities Annexation. Annexation of land outside of City boundaries may be an opportunity for growth.
Land Use Conflicts. Industrial uses are occasionally located next to residential uses, creating abrupt transitions. Residents living next to industrial facilities may be exposed to em issions, odors, noise, and other factors detrimental to public health. Land use conflicts should be avoided when designing Alternatives.
Disconnected Development. Some recent subdivision developments have created urbanized, primarily residential areas disconnected from the rest of the city and many of its amenities. Residents often have no choice but to drive to reach their destinations. Outward expansion of the city may create other residential areas disconnected from the rest of the city.
Infrastructure. The City of Santa Maria’s wastewater treatment plant, water system, and stormwater system require improvements. Historically some of these costs have been passed on to developers, which makes development more expensive. Per the Downtown Specific Plan EIR, bui ldout of the Downtown Santa Maria Specific Plan would result in 424,300 gallons per day in wastewater, which would exceed the capacity of existing sewer pipes. Growth of the city through 2045, both within and outside City limits, will continue to strain the city’s infrastructure.
Hazardous Sites. The siting of hazardous, clean up, and solid waste facilities near residential neighborhoods, particularly low-income communities, poses a serious threat in case of a hazard release emergency. In Santa Maria, there are five hazardous waste generators and one treatment, storage, and disposal facility (TSDF) that impact disadvantaged communities, given the concentration of these facilities to homes and the large generation of waste they produce.
Groundwater Threats. A concentration of oil and gas wells exists in the city, particularly south of Stowell Road. Oil companies are leading various remediation efforts of old sites. However, the City will need to consider how to address the impacts of idle and plugged oil well sites, including cleanup and the threat of potential leaks.
Changing nature of retail. The growth of e-commerce has reduced consumer demand for brick and mortar retail.
Post-pandemic impacts. The long-term effects of the COVID-19 pandemic are not clear. In the short term, it has caused trends, including remote work, changing housing and living preferences, growth of Alternatives Technical Memorandum
Alternatives Technical Memorandum
food delivery services and some online retail services, that should be considered when planning for Santa Maria long-term.
Airport Land Use Compatibility. The Santa Maria Public Airport is located in the southwestern corner of Santa Maria. Land uses adjacent to the Airport may be exposed to hazards related to landing and approach zones, airplane accidents, and noise.
Biological Resources. The city is home to plant and animal species, particularly along the Santa Maria River, near the Santa Maria Public Airport, Area 9 Specific Plan area, and areas that pond in agricultural areas, that are protected due to their status as a State or federal species of concern. Per the Airport Business Park Specific Plan, the Department of Fish and Wildlife has issued a biological opinion which outlines mitigation measures to reduce impacts to Federal and State listed sensitive species and endangered species including vernal pool fairy shrimp, California Tiger Salamander, and the California Redlegged Frog found on site.
Major Noise Sources. The Santa Maria Public Airport, Santa Maria Valley Railroad, agricultural and industrial operations, and roadway noise (e.g. U.S. 101 and major arterials) are the city’s predominant noise sources.
The Vision and Guiding Principles represent consensus from community engagement, a shared Vision of the future and a common understanding of the direction the City needs to follow to achieve the Vision.
However, the Vision and Guiding Principles do not address some important questions that will be answered during the process of evaluating Alternatives and presenting them to the community for feedback. Some of these questions include:
Should the City grow outward (via annexation), inward (via infill development), or via some sort of hybrid approach?
What is the desired mix of new housing types (e.g., single-family residential, multi-family residential, ADUs, etc.)?
To what extent should the City aim to preserve its agricultural economy, and to what extent should it plan to transfer agricultural land into land uses that create jobs in the healthcare, education, industrial, and office-based sectors?
How should the City balance roadway needs for all roadway users, including trucks, public transportation, pedestrians, private automobiles, and bicyclists? A critical component of Alternatives development is understanding how much housing and employment growth the Alternatives should plan for.
Though the General Plan horizon is 2045, this analysis anticipates growth needs through the year 2050 to align with Regional Housing Need Allocation (RHNA) cycles and growth projections produced by the Santa Barbara County Association of Governments (SBCAG).
Alternatives Technical Memorandum
Alternatives Technical Memorandum
This analysis was based on an understanding of how much housing and employment growth to plan for, which were projected based on potential RHNA allocations through the year 2050, SBCAG growth projections, as well as input from the Technical Advisory Committee (TAC), City staff, and the Department Advisory Group (DAG).
General Plan growth also takes into account growth the City has already planned, via Specific Plans and current pipeline projects. The net result, growth projections minus planned growth, yields housing and employment numbers the three land use Alternatives must at a minimum attain.
Per SBCAG’s final RHNA sixth cycle allocation, the City of Santa Maria’s zoning must allow the production of 5,418 housing units by 2031.
The General Plan horizon (2045) will cover the sixth, seventh, and most of the eighth RHNA cycle. As a conservative estimate, the General Plan should account for three times the 2023 – 2031 cycle allocation totals, or about 16,200 units.
Cycle 5, 2015 – 2023: 1,400 of 4,100 units permitted
Cycle 6, 2023 – 2031: 5,418 units allocated
Cycle 7, 2031 – 2039 cycle: Units to be determined
Cycle 8, 2039 – 2047 cycle: Units to be determined
Per Table 3, SBCAG projects a 33 percent increase in population in Santa Maria from 2020 through 2050. SBCAG does not project total number of housing units in the year 2050. However, assuming a housing vacancy of about 5 percent (consistent with vacancy rates in 2010 and 2020), based on the household projection of 44,100 in 2050, one can estimate a total of about 46,400 housing units are needed in Santa Maria in 2050 to accommodate the projected number of households.
With a total of about 30,400 units in 2020, a net increase of approximately 16,000 units are needed to house projected population growth by 2050. This is roughly consistent with the conservative estimate to accommodate three RHNA cycles, about 16,200 units. Therefore, the General Plan land use Alternatives should identify adequate sites to allow for the development of at least 16, 000 housing units by 2045.
Table 3: SBCAG Growth Projections
1990 2000 2010 2020 2030 2050
Population 61,5524 77,4234 99,5534 107,4071 127,6003 143,1003 Households 19,9954 22,1464 26,9084 29,0181 36,4003 44,1003 Housing Units 21,2374 22,8474 28,2944 30,4301 - -
Jobs - 33,9022 38,4892 44,0632 47,3103 52,5503
Jobs/Housing Balance - 1.48 1.36 1.45 - -
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Notes:
1. Source: California Department of Finance E-5 City/County Population and Housing Estimates, 1/1/20
2. Source: Longitudinal Employer-Household Dynamics (LEHD), 2010, 2017.
3. Source: SBCAG Regional Growth Forecast 2050 Santa Barbara County, 2019.
4. Source: California Department of Finance E-8 Historical Population and Housing Estimates for Cities, Counties, and the State, 1990, 2000, 2010.
5. Jobs in 1990 not available. Job totals in 2000 column are from the year 2002.
Regarding employment, SBCAG projects a total of 52,550 jobs in 2050, an increase in about 8,500 jobs over 2020 totals. Per the SBCAG’s 2050 job projections, as shown in Table 4, about 8% of SBCAG’s projected jobs in 2050 are in the industrial sector, 19% are in the commercial (retail) sector, 51% are in the commercial (office) sector, and about 22% are in the other/non-land use based sector, meaning they are not tied to a specific land use (such as construction). Using jobs-to-square foot conversion, this means Santa Maria needs about 14 million non-residential square feet total in 2050 to support this job growth.
However, feedback from the TAC and DAG indicated that a growth of 8,500 jobs by 2050 may not be enough new jobs to ensure a vibrant economy in Santa Maria, particularly when comparing this job growth to an increase in 16,200 housing units. 16,000 new jobs, which would result in a jobs-to-housing units balance of 1.2, was identified by the City as a more desirable amount of job growth. As of 2017, the balance was roughly 1.4 jobs per housing units. Therefore, the City should plan for a minimum of 8,500 new jobs, with 16,000 jobs being the desired total, by 2050.
Table 4: SBCAG Projected Jobs
Sector
Jobs5 Approximate Building Square Footage6
Commercial (Retail)l1 10,068 3,020,400
Commercial (Office)2 26,855 6,713,750
Industrial3 4,223 4,323,000
Other/Non-Land Use Based4 11,303 -
Total 52,550 14,057,150
Notes:
1. Commercial (retail) job sector includes retail trade; and leisure/hospitality sectors.
2. Commercial (office) job sector includes information; financial activities; professional and business services; education and health services; other services; and government sectors.
3. Industrial job sector includes manufacturing; wholesale trade; and transportation, warehousing, and utilities sectors.
4. Other/Non-Land Use Based job sector includes self -employed; natural resources/mining; and construction sectors.
5. Jobs source: SBCAG Regional Growth Forecast 2050 Santa Barbara County, 2019.
6. Square footage estimated based on the following job/Square Foot assumptions: 1 job per 1,000 industrial square feet; 1 job per 300 commercial/retail square feet, and 1 job per 250 office square feet.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
The land use Alternatives lay out a framework for accommodating 16,000 new housing units and a minimum of 8,500 new jobs. The City of Santa Maria already has a number of unbuilt projects in its pipeline, including 2,026 housing units and about 1.1 million square feet of non-residential development. Non-residential development could create an estimated 6,900 jobs, about half of SBCAG’s projected job growth by the year 2050 and over 100% of the target of 8,500 new jobs1 The City of Santa Maria has a number of Specific Plans that are planned but not built out. Some of the housing and job growth needed by 2050 can be accommodated in these Specific Plan areas, reducing the need to find adequate sites for housing and jobs elsewhere in the city. In total, there are an estimated 3,605 units and 16,200,000 non-residential square feet that can be built under current Specific Plans. The 16,200,000 planned non-residential square feet will enable the City to make significant progress to achieve at least 8,500 jobs by 2050.2 This square footage is comprised of projects in a variety of sectors, including office, industrial, and retail.
Growth of accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) need to be considered when planning for growth of Santa Maria. Whereas the land use Alternatives will identify vacant or redevelopable parcels where new housing can be built as part of larger developments, ADUs and JADUs represent incremental housing growth on parcels where housing already exists. Thus, ADUs and JADUs must be factored in the growth calculation formula because they represent ho using growth that is expected to occur over the General Plan horizon, but ADU and JADU growth differs from planned growth over the General Plan horizon because it is difficult to predict exact parcels where this growth may occur.
From April 2018 through June 2021, 266 ADUS or JADUS were built in the City, for about 88 per year.
Based on an evaluation of ADU permitting history, about 1,300 units, or about 55 units per year, are estimated to be developed over the General Plan horizon. This decrease in permitting rates from recent totals is based on conversations with City staff and overall trends, developments per year due to the recent boom in ADU growth slowing and less applicable properties being able to develop ADUs over time.
Based on an understanding of projections from SBCAG, input from the TAC and DAG, and an analysis of RHNA allocations, the General Plan should plan to accommodate a minimum of 16, 000 new housing units and 8,500 (ideally 16,000) new jobs through the year 2050.
However, with planned growth in the City via pipeline projects and Specific Plans, the City already has plans in place to accommodate some of the necessary job and housing growth. In total, about 4,700
1 Job totals calculated by Urban Footprint based on non-residential pipeline square footage. 2 To produce at least 8,500 jobs the 16,200,000 square feet of employment land uses would average about 1,900 square feet per employee. 1,900 square feet per employee is higher than most industry standards of square feet per employee, therefore, 16,200,000 should provide sufficient capacity for at least 8,500 jobs.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
housing units are anticipated to be built in the City in current pipeline projects or in Specific Plan areas.
Factoring in projected growth of ADUs and JADUs yields about 1,300 additional units. With a total of 1,100,000 non-residential square feet currently in the development pipeline and about 16, 200,000 non- residential square feet planned in the City via Specific Plans, the City should be able to achieve the minimum of 8,500 jobs needed.
Thus, the land use Alternatives need to accommodate a minimum of 9,270 housing units (see Table 5).
The Alternatives do not need to accommodate a minimum number of jobs because pipeline and Specific Plan projects already plan for at least 8,500 jobs across a variety of job sectors. However, the Alternatives should still aim to ensure job diversity and achieve a net increase of close to 16,000 jobs to exceed SBCAG job projections and arrive at a jobs to housing ratio of 1.2.
Table 5: Minimum Residential Growth to Plan for
Units
Minimum growth to accommodate 16,200
Minus
Planned Growth 5,631
Pipeline Projects 2,026
Unbuilt Specific Plans 3,605
Minus
Projected ADU and JADU Growth 1,300
Equals
Remaining minimum growth to plan for 9,269
Three land use Alternatives were designed with a number of characteristics in common. These common characteristics are based on areas where there was consensus among the community; State and local laws; technical analysis; and the Vision and Guiding Principles document. These characteristics are described in Table 6.
Table 6: Commonalities Across Alternatives
Characteristic
Implementation in Alternatives and the General Plan
Consistency with Vision
and Guiding Principles
All Alternatives are consistent with the Vision and Guiding Principles. The General Plan will include policies and actions to complement the Vision and Guiding Principles, specifically, the components of the Vision and Guiding Principles not explicitly addressed in the land use and mobility Alternatives.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Future conditions may
differ from today
The Alternatives represent the best-possible guess to plan for a growing City in 2022, but there is no way to predict how conditions will change through 2050. Potential factors that may affect the viability of the General Plan in the future include changes to State law, the development approvals process, economic conditions, and more.
Same minimum growth
targets
All land use Alternatives will accommodate a minimum growth of 16,200 housing units and 8,500 jobs.
Specific Plan growth Most Specific Plans will continue to develop as anticipated.
Growth assumed in vacant
and opportunity sites
Growth within City limits for all three land use Alternatives is assumed to occur on sites that are currently vacant and sites that have opportunity for redevelopment.
Opportunity sites were selected based on feedback from City staff and via an analysis of building value to land value. Vacant and opportunity sites are assumed to redevelop in all three Alternatives.
Land use designations will
be the same in most parts
of the city
Most areas of the city will retain the existing General Plan land use designation across the three land use Alternatives.
General Plan land use
designations may change
for parcels where existing
land use differs from
General Plan land use
General Plan Land Use designations will be adjusted for selected parcels where existing or proposed land use necessitates a change in designation (for instance, a parcel used for residential that currently has a commercial designation may be changed to a residential designation).
Increase in infrastructure
capacity
Infrastructure capacity needs to be improved throughout the City. It is assumed that infrastructure capacity will be increased to accommodate the growth pattern laid out in the three land use Alternatives. As part of the technical analysis of the Preferred Plan, infrastructure improvement needs will be analyzed to ensure growth is adequately served by water, wastewater, and stormwater infrastructure.
Public facilities, parks, and
public services are needed
for a growing city
Expansion of public facilities, parks, and community services are assumed to serve the growing community.
Emphasis on “complete
neighborhoods”
All three land use Alternatives would aim to create more “complete neighborhoods,” where residents have convenient access to daily amenities, such as shopping, healthy food, and parks and public facilities.
Emphasis on addressing
health and environmental
justice
The Alternatives address SB 1000 requirements, including promoting physical activity in disadvantaged communities, promoting food access in disadvantaged communities, and promoting public facilities in disadvantaged communities, by improving access to parks and public spaces throughout the city and developing complete neighborhoods.
Policies in the General Plan will further prioritize improvements in disadvantaged neighborhoods.
The Alternatives differ from each other based on a number of characteristics . These characteristics, outlined below, lend to the creation of three distinct land use Alternatives and will enable the community and decision-makers to weigh trade-offs between the three Alternatives.
Annexation. Two of the three land use Alternatives assume annexation of land beyond current City limits.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Agricultural and open space preservation. The land use Alternatives will preserve different amounts of agricultural and open space land. For the two Alternatives that assume annexation, agricultural and open space land outside of City limits is assumed to be developed.
Development densities and intensities. The land use Alternatives assume different densities and intensities for new development in different parts of the City and beyond City limits.
Area 9 Specific Plan. The Area 9 Specific Plan is anticipated to develop as planned in one of the three land use Alternatives. The other Alternatives assume revisions to allow for residential growth.
Infrastructure. Infrastructure upgrades are needed in different locations in the City and outside City limits, depending on the land use Alternative.
Transportation. Transportation networks will need to be adapted to each land use Alternative.
Location of new public facilities, parks, and services. The provision of new public facilities, parks, and services will vary among the three land use Alternatives, based on where population growth is expected to occur.
In order to better meet the vision of the community, the updated General Plan will have new land use designations. Some will be similar to existing designations from the current General Plan and some designations will introduce new development opportunities. Land use designations are shown in Table
7. The land use designations are divided into five basic categories:
1. Residential designations for the residential-only areas of the city.
2. Mixed use designations to allow for a mix of uses in an area.
3. Commercial designations to provide areas for retail, offices and service uses.
4. Industrial/Airport designations to allow for a range of job-producing uses including light industrial, manufacturing, and airport operations.
5. Public and Open Space uses including schools, parks, open spaces, and agricultural uses
6. Planned Development for areas covered by the Downtown Specific Plan and planned annexation areas.
Per State law, General Plan land use regulations must be consistent with zoning. Currently, the zoning districts and General Plan designations are not consistent. Therefore, following the General Plan Update process, a comprehensive zoning code update may be necessary to ensure consistency.
State law requires that General Plan land use designations provide a measurement of the maximum development intensity allowed within each designation. According to State law, land use designations must identify the allowed uses and the development intensity (measured in dwelling units per acre, floor area ratio (FAR) or jobs/residents per acre).
Alternatives Technical Memorandum
Alternatives Technical Memorandum
The land use designations in the land use Alternatives make some changes to existing General Plan land use designations. These include the following changes:
Eliminate the Medium Density Residential -10 (MDR-10) General Plan land use designation and reassign all parcels currently with this designation to Medium Density Residential -12 (MDR 12) to allow up to 12 du/ac.
Revise the existing High Density Residential (HDR) designation to allow up to 30 du/ac in Alternative A and 35 du/ac in Alternatives B and C from 22 du/ac. This increase in du/ac allowance is consistent with State affordable housing law.
Create three new land use designations: Broadway Mixed Use (BMU), Main Mixed Use (MMU) for Alternatives B and C; and Planned Annexation Area (PA) for Alternatives A and C.
The existing Central District 1 designation has been superseded by the area in the Downtown Specific Plan. Rename the current Central District 2 designation to Central District.
Land use descriptions and uses have been lightly revised.
Zoning regulations must be within the range of the allowed intensity and uses found in the General Plan.
Although land use designations and zoning districts must be compatible, they are not necessarily identical; where the documents differ, the General Plan takes precedence. Unlike the General Plan land use designations, which are broad in scope, the zoning districts provide more specific guidance about allowed and prohibited uses (including conditional uses), as well as dimensional requirements such as building setbacks, parking standards, and building heights. Following the General Plan Update, updates to the Zoning Ordinance will be necessary to ensure compliance.
Two of the Alternatives assume annexation of land outside of City limits. This land is assigned a Planned Annexation Area land use designation. For these two Alternatives, a mix of land uses, density, and intensity have been prescribed, based on jobs and housing targets, community and City staff input, land use compatibility, and environmental constraints. Future specific or master planning efforts related to uses, building design, public facilities, transportation, and infrastructure is expected to occur in the future, following adoption of the General Plan Update.
Table 7: Land Use Designations
Designation Description
Residential
Residential Agricultural
(RA)
To create a transition area between agricultural and strictly urban uses, as well as provide for a particular residential lifestyle.
Allowed uses: Low-density dwelling units, noncommercial agricultural activities, the keeping of horses and certain commercial agricultural activities on larger (suggested minimum of 5- to 10-acre) parcels.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Density: Max 2 du/ac
Height maximum: 25 feet
Alternatives: All
Lower-Density
Residential (LWDR-4)
Single-family detached dwelling units with overall (average) density not to exceed four dwelling units per acre with variable lot sizes for single family detached units up to one acre in size.
Allowed uses: Single-family detached dwelling units with variable lot sizes for single family detached units up to one acre in size.
Density: Max 4 du/ac
Height maximum: 30 feet
Alternatives: All
Low Density Residential
(LDR-5)
To encourage new areas with overall densities responsive to the economic considerations of providing new housing, on a wide range of standard sized lots. providing the amenities and open spaces associated with traditional single-family areas and stabilizing existing areas by discouraging intensification of density.
Allowed uses: Single-family detached dwelling units with variable lot sizes for single-family detached units up to one-fourth acre in size.
Density: Max 5 du/ac
Height maximum: 30 feet
Alternatives: All
Low Medium Density
Residential (LMDR-8)
To encourage densities that are responsive to the economic considerations of providing affordable single-family housing on small lots while at the same time maintaining adequate individual private open space, design flexibility, and the character of a single-family neighborhood.
Allowed uses: Single-family detached dwelling units, with variable lot sizes for single-family detached units. This development type would usually require zero side yard development to maximize private, usable yards. Developments without zero side yards may require the larger lots and setbacks typically found in the R-1 zones.
Density: Max 8 du/ac
Height maximum: 30 feet
Alternatives: All
Medium Density
Residential (MDR-12)
To encourage new development while stabilizing existing development. Allows a mixture of unit types. while maintaining the feeling of a single-family neighborhood. To encourage reinvestment in older areas, and provide a land conservation measure by inducing development away from yet undeveloped areas.
Allowed uses: Single-family, detached and attached, duplexes; triplexes; and larger multi-family complexes.
Density: Max 12 du/ac
Height maximum: 30 feet
Alternatives: All
Note: The existing Medium Density Residential – 10 (MDR-10) designation would be eliminated and all parcels with this designation to would be reassigned to Medium Density Residential -12 (MDR-12).
High Density Residential
(HDR-35 in Alternatives B
and C, HDR-30 in
Alternative A)
To provide for an urban residential environment, preferably close to shopping facilities and existing activity centers, as well as provide an incentive for reinvestment in older established areas.
Allowed uses: Duplexes, triplexes, and larger multi-family complexes.
Density: Max 35 du/ac in Alternatives B and C (HDR-35), maximum 30 du/ac in Alternative A (HDR- 30)
Height maximum: 35 feet
Alternatives: All
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Note: The existing High Density Residential (HDR) designation would be revised to allow up to 30 du/ac in Alternative A and 35 du/ac in Alternatives B and C from 22 du/ac. This increase in du/ac allowance is consistent with State affordable housing law.
Mixed Use
Main Mixed Use (MMU) To allow for multi-story, multi-use development along Main Street contextual with adjacent residential uses. The intent is to allow for the creation of commercial uses mixed with multi-family housing to create opportunities to live on the Main Street corridor and encourage activity and vitality on Main Street. Uses may be mixed horizontally or vertically, though active ground floor uses, such as restaurants and retail, are encourage. A mix of uses is not required in this district. Design requirements, such as building stepbacks, may be employed to transition to residential uses on adjacent streets.
Allowed uses: Retail, restaurants, service commercial (such as banks or real estate offices), service establishments (such as medical clinics and beauty shops), office buildings, hotels, multi-family housing, townhomes, duplexes.
Density: up to 70 du/ac in Alternative B and 35 du/ac in Alternative C.
Assumed intensity: 1.1 FAR in Alternative B and 1.6 FAR in Alternative B, inclusive of residential and non-residential uses.
Height maximum: 70 feet
Alternatives: B and C
Note: This is a new land use designation.
Broadway Mixed Use
(BMU)
To allow for multi-story, multi-use development along Broadway. The intent is to allow for the creation of commercial uses mixed with multi-family housing to create opportunities to live on the Broadway corridor and encourage activity and vitality Downtown. Uses may be mixed horizontally or vertically, though active ground floor uses, such as restaurants and retail, are encouraged on the ground floor. A mix of uses is not required in this district.
Allowed uses: Retail, restaurants, entertainment, bars, service commercial (such as banks or real estate offices), service establishments (such as medical clinics and beauty shops), office buildings, hotels, multi-family housing.
Density: Up to 70 du/ac in Alternative B and 35 du/ac in Alternative C.
Assumed intensity: 1.1 FAR in Alternative B and 1.6 FAR in Alternative C, inclusive of residential and non-residential uses.
Height maximum: 70 feet
Alternatives: B and C
Note: This is a new land use designation.
Central District (CD)
To encourage pedestrian activities and amenities while revitalizing the Downtown core. A variety of mixed uses within multi-storied buildings with residences and office uses located on the upper floors and retail uses located on the first floor. An enhanced street environment would create a pleasant walking environment.
Allowed uses: Mixed Uses (residential, office, retail), services, and assembly. Residential densities would include a maximum of 40 dwelling units per acre.
Density: 40 du/ac
Assumed intensity: 0.5 FAR, or 3.0 FAR with residential Height maximum: 40 feet
Alternatives: All
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Note: The existing Central District 1 designation has been superseded by the area in the Downtown Specific Plan. The existing Central District 2 designation has been renamed to “Central District.” Commercial
Community Commercial
(CC)
To include the majority of retail uses outside the central core, particularly along the lineal development corridors which have emerged. The majority of these uses would be geared to the area-wide market.
Allowed uses: Variety of retail uses, excluding "heavy", land extensive or quasi-industrial commercial uses such as lumber yards, agricultural equipment yards, pipe supply works, etc.
Density: 30 du/ac in Alternative A with Mixed Use Overlay, 35 du/ac in Alternatives B and C with Mixed Use Overlay
Assumed intensity: 0.5 FAR, or 3.0 FAR with residential Height maximum: 70 feet
Alternatives: All
Commercial/
Professional Office (CPO)
To provide areas for offices, which may be compatible with a range of other uses.
Allowed uses: Office development for the following services: medical, legal, travel agencies, insurance, and real estate services, as well as a certain complementary commercial uses.
Density: 30 du/ac in Alternative A with Mixed Use Overlay, 35 du/ac in Alternatives B and C with Mixed Use Overlay
Assumed intensity: 0.35 FAR, 1.1 FAR with residential
Height maximum: 35 feet
Alternatives: All
Freeway Service (FS)
To accommodate the needs of the traveling public along major transportation corridors.
Allowed uses: Motels, service stations, restaurants, and rest stops.
Height maximum: 40 feet
Assumed intensity: 0.25 FAR
Alternatives: All
Neighborhood
Commercial (NC)
To provide areas which offer convenience goods and services to local residents without disrupting the residential character of an area. These areas are intended to be small in size and not geared to providing a multitude of more specialized goods and services serving a community-wide or regional market.
Allowed uses: Supermarkets, convenience grocery stores, drug stores, laundromats, bakeries, shoe repair shops.
Density: 30 du/ac in Alternative A with Mixed Use Overlay, 35 du/ac in Alternatives B and C with Mixed Use Overlay
Assumed intensity: 0.3 FAR, 1.6 FAR with residential (Alternative A) and 1.1 FAR with residential (Alternatives B and C)
Height maximum: 30 feet
Alternatives: All
Industrial/Airport
Light Industrial (LI)
To accommodate industrial uses which contain the process primarily within the building, do not generate negative environmental impacts, and which are most compatible with adjacent nonindustrial uses.
Allowed uses: Research facilities, light assembly plants, non-public-oriented-offices and industrial support offices, tractor sales and display when the property is adjacent to the freeway, and churches on a temporary basis.
Assumed intensity: 0.4 FAR
Height maximum: 35 feet
Alternatives: All
Alternatives Technical Memorandum
Alternatives Technical Memorandum
General Industrial (GI)
To provide areas for all types of heavy industrial uses, but particularly those which need to be separated from other land uses because of the impacts associated with these activities, such as heavy truck traffic, noise, odor, or dust.
Allowed uses: Range of industrial uses, including heavy manufacturing, heavy trucking operations.
Assumed intensity: 0.5 FAR
Height maximum: 40 feet
Alternatives: All
Heavy Commercial/
Manufacturing (HCM)
To permit activities that manufacture and retail on the same site as well as other heavy commercial uses which may be land extensive, require transport of materials by heavy truck, require large loading and docking areas, and where the possibilities of heavy noise generation exist.
Allowed uses: Lumberyards, boat works, warehouses, building supply dealers, mobile home sales, farm equipment sales, equipment repair, and churches within an existing building.
Assumed intensity: 0.5 FAR
Height maximum: 40 feet
Alternatives: All
Airport Service (AS)
To provide a broad category facilitating the airport and airport-related commercial and industrial uses not adversely affected by airport operations, to provide for specific areas for aircraft operation and navigation aids, and to minimize the hazard to safe landing and take-off of aircraft.
Allowed uses: Full range of uses, including airport operation and support activities.
Assumed intensity: 0.6 FAR
Alternatives: All
Public and Open Space
Primary Agricultural
Open Space (AOS-1)
To preserve certain areas for present and future agricultural production. It also provides for limited residential uses.
Allowed uses: Intensive crop agricultural uses. All land classified as prime agricultural (Class I and II soils).
Alternatives: All
Secondary Agricultural
Open Space (AOS-2)
To preserve certain areas for present and future agricultural production. It also provides for limited residential uses.
Allowed uses: Less intensive agricultural uses, including grazing. Includes some lands that are not prime agricultural but are an agricultural buffer and are not now considered suitable for urban expansion.
Alternatives: All
Conservation Open
Space (COS)
To protect natural resources, provide scenic protection, act as an urban agriculture buffer, allow mineral extraction, and act as a safety buffer between the urban land uses and the levee. It also provides for limited residential uses.
Allowed uses: Includes areas subject to flood hazard, significant groundwater recharge areas, well farms, areas adjacent to creekbeds, areas of surface and sub-surface mineral extraction, levee buffer, airport safety areas, and publicly owned landscaped areas.
Alternatives: All
Recreational Open Space
(ROS)
To provide for recreation and scenic protection and provide scenic areas along railroad rights-of- way
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Allowed uses: Existing and proposed recreational facilities, including neighborhood, community, and regional parks; bikeways; equestrian trails; jogging paths; selected public utility and railroad rights- of-way and associated uses where the right-of-way corresponds to the adopted Bikeways Plan; and publicly owned and operated sanitary landfill operations that have the potential for reclamation and development into the aforementioned recreational facilities.
Alternatives: All
Community Facilities (CF)
To provide for necessary facilities for use by the public.
Allowed uses: Public facilities, including schools and government buildings.
Height maximum: 35 feet
Alternatives: All
Planned Development
Downtown Specific Plan
(SP)
To encourage implementation of the Downtown Specific Plan.
Allowed uses: The Downtown Specific Plan designates all land uses, and the geographic boundaries of each use, allowed in its boundary.
Density: Up to 70 du/ac in Alternative A, 100 du/ac in Alternative B, and 70 du/ac in Alternative C.
Assumed intensity: 0.5, up to 3.0 FAR with residential.
Height maximum: 40 to 70 feet, depending on Specific Plan district.
Alternatives: All
Planned Annexation Area
(PA)
To encourage comprehensive planning and urban design flexibility for large annexation land areas (over 60 acres) through the adoption of a specific plan or master plans following the General Plan Update process, as the City proceeds with annexation. Such flexibility allows the City to adopt a set of land use specifications and implementation programs tailored to the unique characteristics of each area.
Allowed uses: The specific plan or master plan will designate all land uses, and the geographic boundaries of each use, allowed in each area. Potential uses include residential (single-family homes, townhomes, duplexes, multi-family), public and institutional, parks and recreation, and non- residential (industrial, office, retail, services, etc.) Assumed density: Up to about 10 du/ac. Note, maximum density will be defined in the General Plan.
Assumed intensity: Up to about 0.2 FAR. Note, maximum FAR will be defined in the General Plan.
Alternatives: A and C
Note: This is a new land use designation.
Notes:
1. Single-family zones are subject to SB9, which was passed in 2021. This law allows for parcels in single-family zones to be subdivided and duplexes built on each lot.
2. The maximum residential density of any residential land use designation may be exceeded to complement General Plan Housing Element policy (in accordance with the City’s inclusionary housing ordinance and density bonus provisions of Section 65915 of the California Government Code).
3. Intensities given in this Table represent assumed FARs used in Urban Footprint growth projections. These were based on average FARs of current development, as calculated by City staff. The City does not currently regulate intensity in its zoning or the General Plan.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
The vision for this Alternative is to continue the City’s existing pattern of growth within City limits, while annexing about 1,770 acres to accommodate new housing and employment growth. New residential neighborhoods outside City limits would be “complete neighborhoods,” where residents have easy access to parks, public facilities, and neighborhood commercial within an easy walk or bike. Employment growth in annexation areas would create a range of jobs, including those in the industrial, office, and retail sectors. The annexation scenario would create focus new employment uses near US-101 and near existing employment areas. New employment areas near Marian Regional Medical Center and Hancock College would create opportunity for expansion of these campuses, or co-location of complementary land uses, like medical offices, housing, and retail. New parks and public facilities would be primarily located in annexed land outside of City limits, where population is expected to grow most significantly.
The key drivers of this Alternative were identified based on community engagement and technical analysis. They are as follows:
The City has a history of growth by expanding outward, and this Alternative would continue the historical pattern of outward expansion.
The City cannot accommodate needed growth within City limits without significant changes to allowed building form (e.g., height, density). This Alternative would continue the existing scale and pattern of development within City limits.
This Alternative would differ from the land use pattern established in the existing General Plan, primarily by expanding City limits outward. Compared to the existing General Plan, this Alternative would:
Create a larger General Plan Planning Area by assuming annexation of land outside City limits. o To the east of City limits, the annexation area would be roughly bordered by Vineyard Trail Road to the south, US-101 to the west, Main Street to the north, and Rosemary Road to the east. The annexation area would also include land bordered by Main Street to the south, Panther Drive to the west, and the Santa Maria River to the north and east. o On the west side of the city, this Alternative would annex land to the north of City limits between E Street and Hanson Way for industrial use.
Create one new land use alternative: Planned Annexation Area (PA).
Revise the High Density Residential (HDR) designation to allow up to 30 du/ac.
The proposed land use mix of Alternative A: Annexation, is shown in Table 8 and Figure 4.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Table 8: Alternative A Land Use Mix
Designation Acres Percent
Residential 4,142 27.1%
Lower-Density Residential (LWDR-4) 478 3.1%
Low-Density Residential (LDR-5) 2,098 13.7%
Low-Medium Density Residential (LMDR-8) 515 3.4%
Medium Density Residential (MDR-12) 530 3.4%
High Density Residential (HDR-30) 521 3.4%
Mixed Use 11 0.1%
Central District (CD) 11 0.1%
Commercial 1,116 7.3%
Community Commercial (CC) 784 5.1%
Commercial/Professional Office (CPO) 272 1.8%
Freeway Service (FS) 34 0.2%
Neighborhood Commercial (NC) 26 0.2%
Industrial/Airport 4,083 26.7%
Light Industrial (LI) 1,488 9.7%
General Industrial (GI) 409 2.7%
Heavy Commercial/Manufacturing (HCM) 709 4.6%
Airport Service (AS) 1,477 9.7%
Public and Open Space 3,904 25.6%
Primary Agricultural Open Space (AOS-1) 66 0.4%
Secondary Agricultural Open Space (AOS-2) 929 6.1%
Conservation Open Space (COS) 50 0.3%
Recreation Open Space (ROS) 1,638 10.7%
Community Facilities (CF) 1,221 8.0%
Planned Development 2.020 13.2%
Downtown Specific Plan (DSP) 197 1.3%
Planned Annexation Area (PAA) 1,823 11.9%
Total 15,275 100%
Note: Numbers may not add due to rounding.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 4: Alternative A Land Use Mix
Figure 5 shows the distribution of land uses for Alternative A: Annexation throughout the city.
27.1%
0.1%
7.3%
26.7%
25.6%
13.2%
Alternative A: Annexation
Residential Mixed Use Commercial
Industrial/Airport Public and Open Space Planned Development Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 5: Alternative A Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
This Alternative would accommodate new residential and job growth entirely within existing City limits.
Most growth would be focused along the Main Street and Broadway corridors and in the few remaining large vacant and opportunity sites throughout the city. This Alternative would assume revisions to the Area 9 Specific Plan, accommodating new housing growth, commercial, and industrial uses.
Transportation improvements would be focused within City limits, particularly along the Main Street and Broadway corridors, where most new growth is expected to occur. However, transportation improvements would also be needed to connect areas of major growth, such as Area 9, with the core of the city. Downtown would be a focal point of this Alternative, where more residential and employment growth would lead to more activity and vibrancy. Downtown would be complemented with new plazas, gathering spaces, and attention to urban design, while new parks and public facilities would be distributed throughout the city where growth is expected to occur and need exists.
The key drivers of this Alternative were identified based on community engagement and technical analysis. They are as follows:
This Alternative would be consistent with the pattern of growth assumed in SBCAG’s Regional Transportation Plan/Sustainable Communities Strategy, which proposes densifying the Main Street and Broadway corridors where high-frequency transit exists.
It is not guaranteed that the City will annex land, therefore, this Alternative would not require annexation.
This Alternative would prioritize infill development, and in doing so would preserve farmland and open space outside City limits.
This Alternative would create more opportunities for living, working, and gathering Downtown This Alternative would differ from the land use pattern established in the existing General Plan and existing Specific Plans. Compared to the existing General Plan and existing Specific Plans, this Alternative would:
Revise the High Density Residential (HDR) designation to allow up to 35 du/ac.
Require revisions to the Downtown Specific Plan, Entrada Specific Plan, and the Area 9 Specific Plan to allow new uses and development density/intensity.
Create two new land use designations, Broadway Mixed Use (BMU) and Main Mixed Use (MMU) .
Require revision of the existing Mixed-Use Ordinance to allow up to 35 du/ac.
Revise the High Density Residential (HDR) designation to allow up to 35 du/ac.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
The proposed land use mix of Alternative B: City Infill, is shown in Table 9 and Figure 6.
Table 9: Alternative B Land Use Mix
Designation Acres Percent
Residential 4,317 32.1%
Lower-Density Residential (LWDR-4) 590 4.4%
Low-Density Residential (LDR-5) 2,065 15.3%
Low-Medium Density Residential (LMDR-8) 515 3.8%
Medium Density Residential (MDR-12) 568 4.2%
High Density Residential (HDR-35) 579 4.3%
Mixed Use 484 3.6%
Main Street Mixed Use (MMU) 88 0.7%
Broadway Mixed Use (BMU) 385 2.9%
Central District (CD) 11 0.1%
Commercial 625 4.6%
Community Commercial (CC) 356 2.6%
Commercial/Professional Office (CPO) 207 1.5%
Freeway Service (FS) 36 0.3%
Neighborhood Commercial (NC) 26 0.2%
Industrial/Airport 4,007 29.8%
Light Industrial (LI) 1,474 11.0%
General Industrial (GI) 400 3.0%
Heavy Commercial/Manufacturing (HCM) 656 4.9%
Airport Service (AS) 1,477 11.0%
Public and Open Space 3,825 28.4%
Primary Agricultural Open Space (AOS-1) 66 0.5%
Secondary Agricultural Open Space (AOS-2) 850 6.3%
Conservation Open Space (COS) 50 0.4%
Recreation Open Space (ROS) 1,638 12.2%
Community Facilities (CF) 1,221 9.1%
Planned Development 197 1.5%
Downtown Specific Plan (DSP) 197 1.5%
Planned Annexation Area (PAA) 0 0%
Total 13,455 100%
Note: Numbers may not add due to rounding.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 6: Alternative B Land Use Mix
Figure 7 shows the distribution of land uses for Alternative B: City Infill throughout the city.
32.1%
3.6%
4.6%
29.8%
28.4%
1.5%
Alternative B: Infill
Residential Mixed Use Commercial
Industrial/Airport Public and Open Space Planned Development Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 7: Alternative B Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
This Alternative allows increased residential development density within City limits, including along Main Street and Broadway and on major opportunity sites. This Alternative assumes annexation, though not as much land would be annexed in this alternative (about 720 acres) as Alternative A: Annexation due to intensification of land uses within City limits. New residential neighborhoods outside City limits would be “complete neighborhoods,” where residents have easy access to parks, public facilities, and neighborhood commercial within an easy walk or bike. New parks and public facilities would complement new residential development outside City limits. Annexed land would be focused along US- 101 and near Marian Regional Medical Center. Transportation improvements would simultaneously accommodate growth within City limits and in the annexation areas.
The key drivers of this Alternative were identified based on community engagement and technical analysis. They are as follows:
This Alternative would be consistent with the pattern of growth assumed in SBCAG’s Regional Transportation Plan/Sustainable Communities Strategy, which proposes densifying the Main Street and Broadway corridors, though less consistent than Alternative B: City Infill.
This Alternative would facilitate infill development, though less infill development than Alternative B: City Infill.
This Alternative would preserve more farmland and open space outside City limits than Alternative A: Annexation.
This Alternative would create more opportunities for living, working, and gathering Downtown .
The City has a history of growth by expanding outward, and this Alternative would continue the historical pattern of outward expansion.
This Alternative would slightly increase the existing scale and pattern of development within City limits.
This Alternative would differ from the land use pattern established in the existing General Plan and existing Specific Plans. Compared to the existing General Plan and existing Specific Plans, this Alternative would:
Create a larger General Plan Planning Area by assuming annexation of land outside City limits. o To the east of City limits, the annexation area would be roughly bordered by Vineyard Trail Road to the south, US-101 to the west, Main Street to the north, and Suey Road to the east.
The annexation area would also include land bordered by Jones Street to the south, Suey Road to the west, Main Street to the north, and Panther Drive to the east.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Require revisions to the Downtown Specific Plan, Entrada Specific Plan, and Area 9 Specific Plan to for allow new uses and development density/intensity.
Create three new land use designations, Broadway Mixed Use (BMU), Main Mixed Use (MMU), and Planned Annexation Area (PA).
Require revision of the existing Mixed Use Ordinance to allow up to 35 du/ac.
Revise the High Density Residential (HDR) designation to allow up to 35 du/ac.
The proposed land use mix of Alternative C: City Hybrid, is shown in Table 10 and Figure 8.
Table 10: Alternative C Land Use Mix
Designation Acres Percent
Residential 4,185 29.5%
Lower-Density Residential (LWDR-4) 478 3.4%
Low-Density Residential (LDR-5) 2,084 14.7%
Low-Medium Density Residential (LMDR-8) 515 3.6%
Medium Density Residential (MDR-12) 543 3.8%
High Density Residential (HDR-35) 565 4.0%
Mixed Use 484 3.4%
Main Street Mixed Use (MMU) 88 0.6%
Broadway Mixed Use (BMU) 385 2.7%
Central District (CD) 11 0.1%
Commercial 634 4.4%
Community Commercial (CC) 356 2.5%
Commercial/Professional Office (CPO) 207 1.5%
Freeway Service (FS) 34 0.2%
Neighborhood Commercial (NC) 26 0.2%
Industrial/Airport 4,059 28.6%
Light Industrial (LI) 1,474 10.4%
General Industrial (GI) 409 2.9%
Heavy Commercial/Manufacturing (HCM) 699 4.9%
Airport Service (AS) 1,477 10.4%
Public and Open Space 3,904 27.5%
Primary Agricultural Open Space (AOS-1) 66 0.5%
Secondary Agricultural Open Space (AOS-2) 929 6.6%
Conservation Open Space (COS) 50 0.4%
Recreation Open Space (ROS) 1,638 11.6%
Community Facilities (CF) 1,221 8.6%
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Planned Development 197 6.5%
Downtown Specific Plan (DSP) 197 1.4%
Planned Annexation Area (PAA) 724 5.1%
Total 13,455 100%
Note: Numbers may not add due to rounding.
Figure 8: Alternative C Land Use Mix
Figure 9 shows the distribution of land uses for Alternative C: Hybrid throughout the city.
29.5%
3.4%
4.4%
28.6%
27.5%
6.5%
Alternative C: Hybrid
Residential Mixed Use Commercial
Industrial/Airport Public and Open Space Planned Development Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 9: Alternative C Land Use
Alternatives Technical Memorandum
Alternatives Technical Memorandum
This section summarizes growth projections of the three Alternatives. Per the “Total Growth to Plan For” section of this report, the Alternatives need to plan for at least 9,300 housing units on vacant and opportunity sites or in potential areas of annexation. The Alternatives do not need to accommodate a minimum number of jobs because pipeline and Specific Plan projects already plan for at least 8,500 jobs across a variety of job sectors.
As shown in the Table 11, all three Alternatives achieve the minimum desired dwelling unit totals. In Alternative A, about 70% of new dwelling units and 50% of new jobs developed in vacant and opportunity areas would be developed outside of City limits, while in Alternative C only about 40% of dwelling units and 20% of jobs would be developed outside of City limits. Alternative B has the lowest amount of job growth of the three Alternatives because vacant land and opportunity sites in the city were prioritized for housing development.
Table 11: Projected New Dwelling Unit and Job Growth
Target Alternative A:
Annexation
Alternative B: City
Infill
Alternative C:
Hybrid
Dwelling Units
New growth projected1 9,300 9,770 10,010 9,690
Within City limits - 3,020 (31%) 10,010 (100%) 5,810 (60%) Outside City limits - 6,750 (69%) - 3,880 (40%)
Jobs
New growth projected1 - 14,580 8,720 15,830
Within City limits - 7,790 (53%) 8,720 (100%) 13,010 (82%) Outside City limits - 6,790 (47%) - 2,820 (18%)
Notes:
1. Growth totals for each Alternative do not include projected growth from pipeline projects, ADUs/JADUs, and Specific Plans, with the exception of the Area 9 Specific Plan in Alternative B and C, which assume the Area 9 Specific Plan will be revised to allow residential use and additional commercial uses.
2. Data source: Urban Footprint
Table 12 summarizes total population, dwelling units, and job totals of the three Alternatives by the year 2050. Even with annexation in Alternatives A and C, the vast majority of total population, dw elling units, and jobs would still be located within existing City limits.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Table 12: Projected Total Population, Dwelling Units, and Jobs Base
(2022)1
Alternative A:
Annexation
Alternative B: City
Infill
Alternative C:
Hybrid
Population
Total population 108,600 142,680 144,420 141,480
Within City limits 108,600 126,920 (89%) 144,420 (100%) 132,500 (94%) Outside City limits - 15,760 (11%) - 8,980 (6%)
Dwelling Units
Total 28,200 44,420 45,660 44,340
Within City limits 28,200 37,670 (85%) 45,660 (100%) 40,460 (91%) Outside City limits 6,750 (15%) - 3,880 (9%)
Jobs
Total 43,050 65,540 59,680 66,800
Within City limits 58,750 (90%) 59,680 (100%) 63,980 (96%) Outside City limits 6,790 (10%) - 2,820 (4%)
Notes:
1. Source: Urban Footprint
This section highlights key findings from the attached Mobility Alternatives Technical Memorandum (see Appendix A). That memorandum describes the existing circulation system and how existing facilities can inform improvements associated with each of the three land use Alternatives. The memorandum also evaluates mobility improvements for the three Alternatives, such as closing gaps in multimodal networks for transit, pedestrian, and bicycle, regional traffic needs, and recommended polices.
Each of the three land use Alternatives were evaluated to understand the existing multimodal facilities and future needs.
All Alternatives would need further infrastructure, including the Broadway and Main Street corridors as transit priority corridors with exclusive red bus lanes, proposed pedestrian and bicycle improvements as identified in the adopted Active Transportation Plan (ATP), operational improvements at intersections, and capacity improvements on the eastern end of Betteravia Road, western end of Main Street and Betteravia Road, and northern end of US 101 in Santa Maria.
In general, Alternative A (Annexation) would need more infrastructure due to the lack of existing transportation facilities for vehicles, bicycles, and pedestrians. In addition, no transit services are provided in the areas that are not in the current city limits. However, after annexation, there will be opportunities to provide the proper infrastructure with the new construction and development .
Alternatives Technical Memorandum
Alternatives Technical Memorandum
In Alternative A (Annexation) and Alternative C (Hybrid), transit services would need to be added to the annexed parcels. For Alternative B (Infill), most of the parcels are already being serviced by transit.
Regardless of which Alternative is selected as the preferred Alternative, transit and alternative transit mobility options would continue to be enhanced due to anticipated population and job growth.
There are several proposed bikeways, pedestrian facilities, and enhanced crossings from the ATP within City limits, but there are no improvements identified in the proposed areas of annexation in Alternatives A and C. If either of those land use Alternatives are slated to move forward, further evaluation of the bicycle and pedestrian network (and recommended accommodations) will need to be performed.
Since Main Street and Broadway are under the jurisdiction of Caltrans, there are limited proposed improvements along these corridors. More improvements are suggested on lower speed and volume roadways. These roadways provide a better level of comfort but are not always the most convenient.
When comparing the LOS between the three land use Alternatives for roadway segments with existing volumes, both the Annexation and Infill scenarios are similar. However, the Annexation scenario has better LOS for four more segments than Infill. For the locations with failing LOS, multimodal and emerging technology strategies can be analyzed to reduce the vehicular impact on the roadways.
Overall, Alternative A (Annexation) will have the least impact on existing roadways but will require new roadways with the land use change from agriculture to higher density land uses (residential, commercial, etc.).
Vehicle to Capacity Ratios (V/C Ratios) are a measure of effectiveness (MOE) in assessing vehicle congestion and delay. When a V/C ratio is 0.91 or higher, there will be unfavorable congestion and delay (level of service E or worse) with it failing once is greater than V/C ratio of 1 (amount of vehicles exceeds roadway capacity).
V/C ratios were used to compare the different land use Alternatives. Using the City’s traffic demand model, the current roadways in Santa Maria were compared. In general, the V/C Ratio is adequate at most city roadways with exceptions along US 101, SR 135, Main Street (SR 166), and Betteravia Road.
Out of the different land use Alternatives, Alternative A (Annex) has the best V/C Ratio along the western end of Betteravia Road and Alternative B (Infill) has the best V/C Ratio along the western end of Main Street (SR 166) and the majority of US 101 in the city.
Vehicle Miles Traveled (VMT) was assessed for all land use Alternatives. Per the results of this analysis, Alternative B (Infill) has the best VMT of the three Alternatives per capita and household (HH), particularly if transit and active transportation options within the city are improved upon. Alternative C Alternatives Technical Memorandum
Alternatives Technical Memorandum
(Hybrid) was developed by using the worst case of Alternative A (Annex ation) and Alternative B (Infill).
Therefore, the VMT for this Alternative was the highest per capita and household.
However, in selecting a preferred land use Alternative it is important to compare the overall increase of VMT to the base. With the proposed three land uses having an imbalance between jobs and housing, there is a significant increase in VMT with every Alternative in comparison to the base scenario. It is recommended in the preferred Alternatives that the land use follow the current Sustainable Communities Strategy (SBCAG 2050 RTP) that only allows jobs or housing in the future if they can be balanced.
The low VMT generating scenario, such as Alternative B (Infill) generates more volumes in high-speed bins (speeds between 40 and 60 miles per hour). High VMT generating scenarios such as Alternative A (Annexation) and Alternative C (Hybrid) generate more volumes in low-speed bins.
The traffic needs from the base model and future (2050 SBCAG’s Regional Transportation Plan forecast) scenarios show that US 101 north of Santa Maria would benefit from widening. US 101 through the City of Santa Maria widens to three lanes in each direction but drops back down to two lanes in each direction around the San Luis Obispo County line. With the current push to reduce greenhouse gas emissions (GHGs), it is unlikely a widening project will occur so it will be important to identify alternative modes such as Bus Rapid Transit, commuter rail, or ride sharing services.
There were no distinguishable traffic differentiators to the three land use Alternatives in relation to the congestion on the roadways. Therefore, it is recommended that the City implement various transportation policies that guide and lead the transportation infrastructure and complement the various recommendations from the City’s existing plans.
Recommendation: Implement a road diet policy to reallocate space for alternative transportation modes Road diets can reallocate travel lanes to space for alternative modes of transportation (bicycle lanes, transit lanes, and bus turnouts). Most common applications include converting a four-lane roadway to a three-lane roadway with a two-way left turn lane (TWLTL). Figure 10 shows a road diet with adjacent parallel parking.
Figure 10: Cross Section of a Road Diet Concept
Road diets can also improve safety by reducing the vehicle conflict points for left-turning movements at intersections and driveways. On a four-lane divided road, left-turning traffic from the major street must
Alternatives Technical Memorandum
Alternatives Technical Memorandum
store in the through lane before making the turn. In addition, vehicles turning left out of the minor street or driveway will have to cross additional lanes and have more conflict points. A road diet can reduce the travel lanes a vehicle must cross and provide a painted median storage (TWLTL) for a vehicle to make a two-stage crossing.
The Federal Highway Administration (FHWA) advises that roadways with ADT of 20,000 vehicles per day (vpd) or less may be good candidates for a road diet and should be evaluated for feasibility. With a road diet, it is important to evaluate the intersections along the corridor, as well as the segments, as they can act as the bottlenecks. Therefore, road diets should consider additional intersection operational improvements.
Several roadway segments were identified in the Existing Conditions report for potential road diets, including segments of Alvin Avenue, A Street, Battles Road, Black Road, Blosser Road, Bradley Road, College Drive, Cook Street, Depot Street, Donovan Road, E Street, Fesler Street, Mahoney Road, McCoy Lane, Main Street, Miller Street, Panther Drive, Santa Maria Way, Stowell Road, Suey Road, and Union Valley Parkway. The LOS was determined using existing and forecasted ADT volumes. The resulting LOS for each of the Alternatives are shown in Appendix A of the Technical Memorandum. For all but seven locations, the LOS was A for the existing and Alternative scenarios, keeping lane geometry the same.
The locations classified as four-lane, secondary arterials were further analyzed to evaluate the difference in LOS if the number of lanes reduced to two. The results from this analysis are displayed in Appendix A.
Out of the 30 locations analyzed, 8 locations have a failing LOS after reducing the number of lanes in future scenarios. Those locations that fail in 2050 should be evaluated during the growth of the city as currently the traffic volumes support a road diet.
Recommendation: Encourage a mode shift due to the increased impact of vehicles in the future scenarios. One strategy to reduce the vehicular impact on the roadways is i nstalling increased multimodal infrastructure.
Currently, the City’s Standard Drawings for typical sections are provided by land use, including residential, commercial, and industrial. These standard drawings are similar in nature and have limited accommodations for alternate modes of travel, especially bicycles (see Figures 11, 12, 15 and 16 below).
Existing residential and commercial typical sections are identical, except for sidewalk and ROW width.
Proposed alternative typical sections are proposed for commercial and residential land uses to provide a better level of traffic stress for bicycles. Some proposed changes to accommodate these alternate modes are displayed in Figures 13, 14, and 17. These typical sections show what can be done to repurpose the outside lanes for bikeways. With many of the city roadways varying in width, it will be important to evaluate each roadway on a case-by-case basis with the traffic volumes and current cross sections.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 11: Existing Typical Section for Secondary Arterial (Residential Street)
Figure 12: Existing Typical Section for Secondary Arterial (Commercial Street)
Figure 13: Proposed Typical Section for Secondary Arterial (Parking-Protected Bike Lanes)
Figure 14: Proposed Typical Section for Secondary Arterial (Buffered Bike Lanes and Parking)
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 15: Existing Typical Section for Primary Arterial (Residential Street)
Figure 16: Existing Typical Section for Primary Arterial (Commercial Street)
Figure 17: Proposed Typical Section for Primary Arterial (Bicycle Lane with Raised Buffer)
Recommendation: Support and implement projects with emerging technologies for improved multimodal operations.
Emerging technologies can include converting the existing traffic signals with inductive loop detection to video detection for bicycle detection. In addition, with new controllers at the signalized locations, leading pedestrian intervals can be implemented in giving the pedestrians 5 seconds of time before the vehicles, to establish their right of way in the crosswalks.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Recommendation: Incorporate transit priority routes
Prioritizing alternative modes can reduce vehicle congestion and greenhouse gases in high-density land use areas that support transit priority routes such as Broadway. Figure 18 below shows an example of a typical section for a primary arterial that dedicates a travel lane to buses (red bus lane). This typical section will be especially important along the Broadway corridor in the Infill Alternatives where there is proposed much high land use densities and a major bus route.
Figure 18: Proposed Typical Section for Primary Arterial (Transit Only Lane)
The memorandum’s key findings are summarized in matrix format in Table 13. Per the traffic model, with the anticipated growth in 2050 for any land use scenario, many roadways will reach or exceed capacity thresholds. Therefore, it is very important to provide alternative modes of transportation as a priority, which shifts vehicle traffic to transit, biking, or walkable trips. Therefore, a variety of mobility improvements are needed citywide regardless of future development patterns, including congestion mitigation on major roadways, implementation of the ATP, incorporation of new roadway sections and road diets, and planning for emerging technologies.
The Preferred Alternative should be designed to mitigate VMT impacts. If the Preferred Alternative involves annexation, the expansion of roadway, ATP, and transit networks will need to accompany annexation.
From the level-of-service analysis, several roadways in Santa Maria have opportunities for road diets based on the existing and forecasted future volumes. A road diet can allow bikeways to be added with minimal cost and provide connectivity in the transportation system. With the suggested new typical sections for the secondary arterial, evaluation of the current road cross section would need t o be further assessed to see what could feasibly be accommodated. These roadways could still function as a secondary arterial versus a collector roadway but can have the additional lanes repurposed for alternative modes.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Table 13: Mobility Alternatives Comparison
Mobility Factor
Mobility Improvements for All
Land Use Alternatives
Mobility Alternatives
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Vehicular Network Requires new
roadways
Requires new
roadways
LOS & Congestion Congestion mitigation
required on SR 135, Main
Street (SR 166), and Betteravia
LOS mitigation
required
VMT Jobs-housing balance,
alternative commute modes,
and CEQA VMT Threshold
compliance
VMT mitigation
required
VMT mitigation
required
Active
Transportation
Network
Implement ATP Network
expansion
required
Network
expansion
required
Road Sections
and Diets
Update roadway sections;
Implement road diet policy
Transit System New services
required
New services
required
Emerging
Technologies
Adopt appropriate
technologies
This section includes highlights from the Public Realm Design Options slide deck (see Appendix B). The updated General Plan will include design guidance to preserve community character, including how public realm and urban design tools are to be applied citywide and by subarea or neighborhood. Th e Public Realm Design Options can serve as the basis for the design guidance in the General Plan.
The slide deck introduces 16 tools for enhancing the public realm and urban design for both open spaces and streets in Santa Maria. For each tool, the slide deck describes the intent, applicability in Santa Maria, and which land use designations it is intended for. The slide deck also geographically illustrates where particular tools would apply in key areas of change, unique to each land use Alternative, and how tools can be applied on primary and secondary arterials.
The sections below in Figures 19 and 20 illustrate how toolkit items can be applied on primary and secondary arterials, like Broadway and Main Street respectively. These sections are identical to those proposed in the Mobility Alternatives section (see Figures 13, 14, and 17) but enhanced to show possibilities for public realm design.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Figure 19: Primary Arterial
Figure 20: Secondary Arterial
Alternatives Technical Memorandum
Alternatives Technical Memorandum
The matrix below (Figure 21) matches toolkit items with General Plan land use designations, which regulate land use, density, and intensity. When considering potential future land use Alternatives, the matrix can be used to identify how different public realm and urban design tools could be applied in different parts of the city. Note, some toolkit items may be recommended in the General Plan regardless of the land use Alternative. Community engagement is needed to confirm if these tools are appropriate for Santa Maria in the locations proposed.
Figure 21: Toolkit
The maps below show key areas of change for each land use Alternative. The toolkit items listed next to the maps are open space and street concepts that can apply to land use designations in these change areas. This comparison shows how public realm applications vary between the three land use Alternatives.
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Alternative A: Annexation
Open Space Toolkit Items: Natural Open Space, Parks, Plazas, Trails
Street Toolkit Items: Street Trees, Landscape Strip, Curb Extensions, Gateways, Public Art
Alternative B: City Infill
Open Space Toolkit Items: Parks, Food Truck Pods, Trails, Pocket Parks, Plazas
Street Toolkit Items: Slow Streets, Alleyway Activation Sidewalk Widening, Landscape Strips, Curb Extensions, Parklets, Street Trees, Furnishings, Gateways, Public Art
Alternative C: Hybrid
Open Space Toolkit Items: Open Space, Parks, Food Truck Pods, Trails, Pocket Parks, Plazas
Street Toolkit Items: Slow Streets, Alleyway Activation, Sidewalk Widening, Landscape Strips, Curb Extensions, Parklets, Street Trees, Furnishings, Gateways, Public Art
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Technical Memorandum
This Technical Memorandum is provided as an interim output under our agreement with Raimi + Associates . It is provided to foster discussion in relation to technical matters associated with the project and should not be relied upon in any way.
The Power of Commitment
11208620 1
September 13, 2022
To Ron Whitmore, PhD, AICP
Meghan McNulty, AICP
Project No. 11208620
Copy to Don Hubbard, TE, AICP
Billy Park, TE
From Kathryn Kleinschmidt, PE, PTOE
Emily Darke, EIT
Project Name Santa Maria General Plan Update
Subject Subtask 4.4 – Prepare Land Use, Transportation, and Policy Alternatives
1. Introduction
This technical memorandum will outline the existing circulation system including the multimodal network and how these facilities can inform improvements with the three land use alternatives. Those alternatives are as follows:
1. Alternative A – Annexation (Annex)
2. Alternative B – Infill
3. Alternative C – Hybrid
These alternatives are further described below. This memorandum will include evaluating improvements such as closing gaps in multimodal networks for transit, pedestrian, and bicycle, regional traffic needs , and recommended polices.
1.1 Alternative A (Annex)
Alternative A proposes annexing approximately 1,770 acres to accommodate new housing and employment growth. This alternative distributed new housing and employment throughout the City of Santa Maria with new areas annexed, east of US 101 (south and north of Main Street (SR 166)) and west of US 101 on Stowell Road. The areas identified for annexation are currently agricultural or vacant land uses with limited transportation facilities.
1.2 Alternative B (Infill)
Alternative B is described as city infill with large concentrations of housing and employment (mixed use) along Broadway (SR 135) and Main Street (SR 166). With a concentration of mixed-use land uses, there is more interaction between the different modes of travel such as walking, biking, taking transit, and driving with likely lower vehicle miles of travel. Therefore, this alternative is modeled to capture the mode splits between 11208620 2
transportation options and subsequent vehicle trip reductions due to this type of land use which encourages shorter trips which naturally lend to alternative modes such as walking, biking, and taking transit.
1.3 Alternative C (Hybrid)
Alternative C is a hybrid of Alternative A (annexation scenario) and Alternative B (infill scenario). This hybrid alternative distributes new housing and employment within the current city limits and in new areas of annexation, east of US 101 and south of Main Street (SR 166). The area that is identified to be annexed is currently agricultural land uses with limited transportation facilities.
2. Multimodal Traffic Assessment
Each of the three land use alternatives were evaluated to understand the existing multimodal facilities and future needs. In general, Alternative A would need more infrastructure due to the lack of existing transportation facilities for vehicles, bicycles, and pedestrians. In addition, no transit services are provided in the areas that are not in the current city limits. However, after annexation, there will be opportunities to provide the proper infrastructure with the new construction and development. It would be recommended the city have multimodal typical sections for the different classifications of roadways to include local, collector, and arterial roadways.
All alternatives would need further infrastructure, including the Broadway and Main Street corridors as transit priority corridors with exclusive red bus lanes, proposed pedestrian and bicycle improvements as identified in the adopted Active Transportation Plan (ATP), operational improvements at intersections, and capacity improvements on the eastern end of Betteravia Road, western end of Main Street and Betteravia Road, and northern end of US 101 in Santa Maria.
Recently, the city updated the Short-Range Transit Plan, August 2020 for Santa Maria Area Transit and 2020 Active Transportation Plan. Recommendations from these plans will be summarized below.
2.1 Transit Operations
The City of Santa Maria’s transit service is Santa Maria Regional Transit (SMRT), formerly known as Santa Maria Area Transit (SMAT). There are also a variety of regional transit services with t ransit stops in the city including Clean Air Express, Guadalupe Flyer, and Route 10 of the San Luis Obispo Regional Transit Authority (RTA) and intercity Breeze bus service to Lompoc (Route 100) and to Buelton/Solvang (Route 200). Clean Air Express offers weekday commuter bus from Northern Santa Barbara County to Goleta and Santa Barbara.
Guadalupe Flyer offers transit services between Guadalupe and Santa Maria. Route 10 of RTA serves Santa Maria, Nipomo, Arroyo Grande, Pismo Beach, and San Luis Obispo. These services could be expanded with improved performance in capturing the demand of commuters.
2.1.1 Short Range Transit Plan
2.1.1.1 Service Recommendations
The Short Range Transit Plan had several service recommendations for Santa Maria’s transit that include performance improvements, service enhancements, policy recommendations, and innovative/technology recommendations. These service recommendations are summarized below.
Performance Improvements
• Improve local service on-time performance
• Increase transit staffing by 1 FTE
• Develop and implement 18- to 24-month Marketing Plan
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• Expand SMAT’s social media presence
• Refine Breeze schedule to better match capacity with demand • Reconfigure Route 8 to provide service to Walmart
• Formalize or discontinue interlining of Routes 3 and 4 • Consider revising the city’s service delivery approach to include geographic-based neighborhood shuttles in lieu of low-productivity fixed-route service • Limit evening service on Routes 5 and 6 to the Broadway corridor • Consider replacing evening service with Lyft/Uber subsidized rides.
Service Enhancements
• Increase school tripper capacity
• Consider assumption of the Guadalupe Transit service
• Ensure a proportional payment for SLORTA Route 10 operations • Increase peak-hour service
• Adjust service to incorporate the proposed Allan Hancock College transit hub Policy Recommendations
• Update and expand the city’s Bus Stop Improvement Plan • Develop a Bus Stop Placement Policy
Innovation/Technology Recommendations
• Evaluate cost-benefit of mobile fare payment options
• Secure funding to AVL technology
• Introduce predictive arrival technology
• Define path for transition to battery-electric fleet
2.1.1.2 Ridership and Access
The ridership throughout the city, along with local routes and stops, is captured in Figure 1. This information is from Santa Maria Area Transit (SMAT), which is currently known as Santa Maria Regional Transit (S MRT). 11208620 4
Figure 1 SMAT Local Routes and Stops with Ridership Percentages
Figure 2 displays the local routes with quarter mile and half-mile radii. There is a gap in southern central area of the city, north of E Clark Avenue.
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Figure 2 SMAT Quarter Mile Buffer
2.1.2 Land Use Alternatives
The transit stops within the city are displayed below, along with the different land use alternatives (see Figures 3, 4, and 5). In Alternative A (Annex) and Alternative C (Hybrid), transit services would need to be added to the annexed parcels. For Alternative B (Infill), most of the parcels are already being serviced by transit.
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Figure 3 Transit Stops and Alternative A (Annex)
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Figure 4 Transit Stops and Alternative B (Infill)
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Figure 5 Transit Stops and Alternative C (Hybrid)
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2.2 Pedestrian and Bicycle Operations
2.2.1 Active Transportation Plan
The 2020 Active Transportation Plan was adopted by City Council in January 2021. This planning level study replaced the 2009 Bikeway Master Plan and is a performance-based plan following the six principles from the Smart Mobility Framework: Location Efficiency, Reliable Mobility, Health and Safety, Environmental Stewardship, Social Equity, and Robust Economy.
Table 1 shows the breakdown of existing and proposed length of bikeways by bikeway classification from the ATP. The total existing and proposed miles of bikeway in the city is 169.3 miles.
Table 1 Existing and Proposed Miles of Bikeways
Some citywide projects were identified in the ATP. These include:
– Wayfinding programs,
– Bicycle parking,
– Bicycle detection at signalized intersections (accomplished with video detection), – Pedestrian scale lighting (supports safer walkways), and – Amenities (seating, shade, water fountains, and trash/recycling containers).
There were also suggested education and encouragement projects. Some of these projects are summarized below.
Education projects
– Streetsmarts campaign
– Bicycle safety education for adults
– Safe Routes to School
– Ticket diversion program
Encouragement Projects
– Bicycle and pedestrian coordinator
– Social walks/rides
– Adopt-a-Trail program
– Bike rack program
– Bicycle-friendly business program
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2.2.2 Land Use Alternatives
2.2.2.1 Pedestrian Facilities
The proposed and existing pedestrian facilities are mapped, along with the three land use alternatives in Figures 6, 7, and 8. Many intersection crossing improvements are proposed, along with a Class I shared use path on Battles Road, the southern end of Broadway, and along the Santa Maria Valley Railroad Trail. In all the land use alternatives, there are not may existing or proposed pedestrian facilities. Pedestrian facilities wil l need to be added to service the modified parcels, especially for the annexed parcels in Alternatives A (Annex) and C (Hybrid).
2.2.2.2 Bicycle Facilities
The proposed and existing bicycle facilities are mapped, along with the three land use alternatives in Figures 9, 10, and 11. Bicycle facilities serve most of the parcels in the land use alternatives. However, the only bicycle facilities that service the annexed parcels Alternatives A (Annex) and C (Hybrid) are a proposed shared use path along the city border and a Class II bike lane along Betteravia Road. If either of these alternatives are chosen, bicycle facilities are recommended to service the annexed parcels.
2.2.2.3 Summary
There are several proposed bikeways. pedestrian facilities, and enhanced crossings from the ATP within the city limits but there are no improvements identified in the proposed areas of annexation in Alternatives A and C.
If either of those land use alternatives are slated to move forward, further evaluation of the bicycle and pedestrian network (and recommended accommodations) will need to be performed.
Since Main Street and Broadway are under the jurisdiction of Caltrans, there are limited proposed improvements along these corridors. More improvements are suggested on lower speed and volume roadways.
These roadways provide a better level of comfort but are not always the most convenient.
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Figure 6 Existing and Proposed Pedestrian Facilities with Modified Parcels from Alternative A (Annex)
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Figure 7 Existing and Proposed Pedestrian Facilities with Modified Parcels from Alternative B (Infill)
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Figure 8 Existing and Proposed Pedestrian Facilities with Modified Parcels from Alternative C (Hybrid)
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Figure 9 Existing and Bicycle Facilities with Modified Parcels from Alternative A (Annex)
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Figure 10 Existing and Bicycle Facilities with Modified Parcels from Alternative B (Infill)
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Figure 11 Existing and Bicycle Facilities with Modified Parcels from Alternative C (Hybrid)
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2.3 Planned or Constructed Road Diets
After identifying existing and proposed bikeways in the ATP, the city started to evaluate what roadways where bikeways could easily be added with a pavement rehabilitation and/or restriping project. These roadways are captured below with the tentative timeline.
1. N. Blosser Road, Atlantic to Taylor
– Existing: Two lanes each direction
– In Construction: One lane each direction. Raised median with turn pockets at intersections/driveways.
– Impact: Reduces lanes for vehicles and speed management.
2. Depot Street, Stowell Road to Carmen Lane
– Existing: Two lanes each direction
– In Construction: Reduced to one lane each direction. Class IV bicycle facilities with on-street parking between Stowell and Battles. Buffered Class II facility between Battles and Carmen.
Striped median/two-way left turn lanes where appropriate. – Impact: Reduces lanes for vehicles and adds buffered bicycle lanes.
3. Alvin Avenue, Blosser Road to Railroad Avenue
– Existing: Two lanes each direction.
– In Construction: One lane each direction with two-way left turn lane. Maintain on-street parking with a Buffered Class II facility.
– Impact: Reduces lanes for vehicles and adds buffered bicycle lanes.
4. Pine Street, Main Street to Cook Street
– Existing: Two lanes each direction.
– In Construction: One lane each direction, add on-street parking and Class II facility.
The N. Blosser Road and Depot Street segments had existing roadway segment volume counts at select locations, which allowed for corresponding level of service (LOS) to be calculated. The conversion from a four- lane roadway to two-lane roadway at these locations resulted in minimal to no change in LOS. Overall, these roadways operated at an LOS of B or better for existing and all alternative scenarios.
2.4 Other Safety Recommendations
In providing overall safe and convenient accommodations for bicycle, pedestrian, and transit, it is important to understand that the lack of facilities coupled with higher speeds and higher volume roadways that create a less than desirable mode choice and have safety issues. A complete streets approach is recommended to provide these recommendations. These improvements can complement the needs with the roadway functional classification and have different intersection safety features that would improve access and remove barriers.
Arterial and Collector Roadways
– Wider sidewalks (6-10 feet) on both sides of the roadways and evaluate providing a sidepath (shared use path adjacent to roadway) where right of way allows
– Provide curb extensions where feasible in reducing the pedestrian’s crossing distance and exposure to vehicles
– Dedicated bike lanes and buffered or protected bike lanes were feasible – Green conflict markings for vehicle to bicycle mixing zones and evaluate providing a protected intersection – At signalized intersections provide leading pedestrian intervals and video detection for bicycle detection – Provide overall roadway geometrics (narrow lanes to support lower speeds overall speed management).
This will help to remove barriers such as discontinuous routes or treacherous crossings with multiple conflicts points with vehicles.
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– Provide planter buffers with trees for visually narrowing the roadway and lowering speeds. – Enhanced lighting at the intersections, mid-block crossings, and along the corridor – Pedestrian crossing enhancements at frequented locations – RRFBs, pedestrian hybrid beacons, high visibility crosswalk, yield lines, etc. – Areas of gather and placemaking with benches, art, murals, and local flavor Local Roadways
– Traffic calming measures to keep speed low
– Limited striping and bicycle pavement markings for shared use (sharrows). – Dedicated bike lanes if feasible.
– Sidewalks and enhanced crossing treatments at major intersections and any attractions and destinations (schools, parks, churches, etc.)
As shown in the Figure 12 below, the pedestrian-to-vehicle and bicycle- to-vehicle collisions, were primarily concentrated in the downtown core along Broadway and Main Street. Both these roadways are state highways that serve various transportations modes including heavy vehicles/trucks. Evaluating the appropriate facilities in these areas is important with the proposed increased housing and employment densities with all alternatives.
Figure 12 Pedestrian and Bicycle Collision Density (2013-2017)
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2.5 Emerging Mobility
Emerging mobility covers different transportation options such as such as micromobility, Transportation Network Companies, autonomous/connected vehicles, smartphone app services, and ride sharing services.
These options will affect the transportation network and future travel with less dependence on vehicle ownership. To date, the city doesn’t have any shared bike or scooter services, but this could be a likely possibility in the future.
Per the Short Range Transit Plan, the goal is to have 100% of bus purchases be for zero emission buses by 2029 with a 100% zero emission bus fleet by 2040. These improvements are also coupled with the following recommendations:
– First/last mile solutions to get riders to bus stops
– Examples: shared bike/scooter service, door-to-bus smartphone app, reservation-based/shared- ride transit service
– Automatic Vehicle Location (AVL) and Predictive Arrival – Variety of programs available to add to buses to monitor on-time performance using geographic data and schedules/actual time at each stop (automatic vehicle location) – There are also programs for passengers to see real-time bus data (predictive arrival)
3. Vehicular Traffic Assessment
3.1 Traffic Operations per Land Use Alternatives
3.1.1 Level of Service (LOS) at Select Locations
When comparing the LOS between the three scenarios (Annex, Infill, and Hybrid) for roadway segments with existing volumes, both the Annex and Infill scenarios are similar. However, the Annex scenario has better LOS for four more segments than Infill. The LOS for the three alternatives is displayed for select roadway segments in Figures 13, 14, and 15.
To view LOS for all analyzed locations, along with the associated forecasted volumes, see Attachment 1. For the locations with failing LOS, multimodal and emerging technology strategies can be analyzed to reduce the vehicular impact on the roadways. Overall, Alternative A (Annex) will have the least impact on existing roadways but will require new roadways with the land use change from agriculture to higher density land uses (residential, commercial, etc.).
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Figure 13 Level of Service for Land Use Alternative A (Annex)
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Figure 14 Level of Service for Land Use Alternative B (Infill)
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Figure 15 Level of Service for Land Use Alternative C (Hybrid)
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3.1.2 Vehicle to Capacity Ratio
Vehicle to Capacity Ratios (V/C Ratios) are a measure of effectiveness (MOE) in assessing vehicle congestion and delay. When a V/C ratio is 0.91 or higher, there will be unfavorable congestion and delay (level of service E or worse) with it failing once is greater than V/C ratio of 1 (amount of vehicles exceeds roadway capacity).
Therefore, this was used to compare the different land use alternatives. Using the city’s traffic demand model, the current roadways in Santa Maria were compared. In general, the V/C Ratio is adequate at most city roadways with exceptions along US 101, SR 135, Main Street (SR 166), and Betteravia Road.
Mapped V/C Ratios for each land use alternative in the PM peak hour and daily volumes are included in Attachment 2. Out of the different land use alternatives, Alternative A (Annex) has the best V/C Ratio along the western end of Betteravia Road and Alternative B (Infill) has the best V/C Ratio along the western end of Main Street (SR 166) and the majority of US 101 in the city.
3.1.3 Vehicle Miles Traveled
Vehicle Miles Traveled (VMT) was assessed for all alternatives and is summarized in Table 2 below. Per the results of this analysis, Alternative B (Infill) has the best VMT of the three alternatives per capita and household (HH). Alternative C (Hybrid) was developed by using the worst case of Alternative A (Annex) a nd Alternative B (Infill). Therefore, the VMT for this alternative was the highest per capita and household. However, in selecting a preferred land use alternative it is important to compare the overall increase of VMT to the base. With the proposed three land uses having an imbalance between jobs and housing, there is a significant increase in VMT with every alternative in comparison to the base scenario. It is recommended in the preferred alternatives that the land use follow the current Sustainable Communities Strategy (SBCAG 2050 RTP) that only allows jobs or housing in the future if they can be balanced.
Table 2 VMT Summary per Alternative
Figure 16 shows the VMT by speed bin. The low VMT generating scenario, such as Alternative B (Infill) generates more volumes in high-speed bins (see speeds between 40 and 60 miles per hour (mph) in Figure 16). High VMT generating scenarios such as Alternative A (Annex) and Alternative C (Hybrid) generate more volumes in low-speed bins (see speeds between 0 and 35 mph in Figure 16). 2018 Base 2050 Annex 2050 Infill 2050 Hybrid
VMT/Capita 24.9 41.4 40.0 42.8
VMT/HH 75.2 116.9 112.2 120.7
VMT/Emp 84.1 116.3 120.5 117.4
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Figure 16 VMT by Speed Bin
3.2 Evaluate Functional Roadway Classifications for Declassification Once the preferred alternative is selected, further evaluation will occur on city roadways in evaluating the appropriate functional roadway classification for the Circulation Element. Per city and Existing Conditions analysis, some roads may be declassified such as Alvin Avenue, Donovan Road, E Street, Black Road, and Mahoney Road.
• Alvin Avenue – Secondary Arterial functioning at LOS A in existing conditions and all three alternative scenarios for 2050
• Donovan Road, east of Broadway (SR 135) – Secondary Arterial functioning at LOS A in existing conditions and all three alternative scenarios for 2050 • E Street – No existing roadway segment volumes at this location • Foster Road – Secondary Arterial functioning at LOS A in existing conditions but at LOS F in all three alternative scenarios for 2050
• Black Road – No existing roadway segment volumes at this location • Mahoney Road – No existing roadway segment volumes at this location
3.3 Recommendations
The traffic needs from the base model and future (2050 SBCAG’s RTP forecast) scenarios show that US 101 north of Santa Maria would benefit from widening. US 101 through the City of Santa Maria widens to three lanes in each direction but drops back down to two lanes in each direction around the San Luis Obispo County
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line. With the current push to reduce greenhouse gas emissions (GHGs), it is unlikely a widening project will occur so it will be important to identify alternative modes such as Bus Rapid Transit, commuter rail, or ride sharing services.
4. Transportation Policies
There were no distinguishable traffic differentiators to the three alternatives in relation to the congestion on the roadways. Therefore, it is recommended that the city implement various transportation policies that guide and lead the transportation infrastructure and complement the various recommendations from the city plans.
4.1 Reduce Vehicle Miles Traveled
Support mixed use developments with infrastructure that supports all transportation modes.
In July 2017, California passed assembly bill (AB) 398 to reauthorize the state’s economy -wide greenhouse gas (GHG) reduction program. The goal is to reduce GHG of at least 40% before the 1990 level of emissions by 2030. In order to comply with the state’s greenhouse gases reduction metrics by 2030, it is important to create sustainable transportations systems for all modes with mixed land uses in reducing the overall need to travel.
In addition, Senate Bill (SB) 743 was signed into law in 2013, with the intent to better align CEQA practices with statewide sustainability goals related to efficient land use, greater multimodal choices, and greenhouse gas reductions. The provisions of SB 743 became effective Statewide on July 1, 2020. Under SB 743, automobil e delay, traditionally measured as level of service (LOS), are no longer considered an environmental impact under CEQA. Instead, impacts are determined by changes to VMT. Based on Office of Planning and Research (OPR) guidance, this project would likely be screened out (see below).
4.2 Speed Management
Implement a Citywide speed management policy and program.
There is a direct correlation between vehicle speeds and pedestrian and bicycle injury or death. Therefore, it is important to have a transportation system that has the correct geometrics and safety improvements in place to control speeds. In addition, additional enforcement and speed education are important in managing speeds.
4.3 Road Diets
Implement a Road Diet Policy in Reallocating Space for Alternative Transportation Modes Road diets can reallocate travel lanes to space for alternative modes of transportation (bicycle lanes, transit lanes, and bus turnouts). Most common applications include converting a four-lane roadway to a three-lane roadway with a two-way left turn lane (TWLTL). Figure 17 shows a road diet with adjacent parallel parking.
Figure 17 Cross Section of a Road Diet Concept
Road diets can also improve safety by reducing the vehicle conflict points for left-turning movements at intersections and driveways. On a four-lane divided road, left-turning traffic from the major street must store in
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the through lane before making the turn. In addition, vehicles turning left out of the minor street or driveway will have to cross additional lanes and have more conflict points. A road diet can reduce the travel lanes a vehicle must cross and provide a painted median storage (TWLTL) for a vehicle to make a two-stage crossing.
4.3.1 Average Daily Traffic (ADT) Volume Consideration
FHWA advises that roadways with ADT of 20,000 vpd or less may be good candidates for a road diet and should be evaluated for feasibility. With a road diet, it is important to evaluate the intersections along the corridor, as well as the segments, as they can act as the bottlenecks. Therefore, road diets should consider additional intersection operational improvements.
4.3.1.1 Level of Service Analysis at Select Roadway Segments Several roadway segments were identified in the Existing Conditions report for potential road diets. The LOS was determined using existing and forecasted ADT volumes. The resulting LOS for each of the alternatives are shown in Table 3. For all but seven locations, the LOS was A for the existing and alternative scenarios, keeping lane geometry the same.
The locations classified as four-lane, secondary arterial from Table 3 were further analyzed to evaluate the difference in LOS if the number of lanes reduced to two. The results from this analysis are displayed in Table 4.
Out of the 30 locations analyzed, 8 locations have a failing LOS after reducing the number of lanes in future scenarios. Those locations that fail in 2050 should be evaluated during the growth of the City as currently the traffic volumes support a road diet.
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Table 3 Level of Service at Select Roadway Segments
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Table 4 Resulting LOS from Two-Lane Reduction at Four-Lane Secondary Arterials
4.3.2 Changes to Typical Sections
Encouraging a mode shift is recommended due to the increased impact of vehicles in the future scenario. One strategy to reduce the vehicular impact on the roadways is installing increased multimodal infrastructure.
Currently, the city’s Standard Drawings for typical sections are provided by land use, including residential, commercial, and industrial. These standard drawings are similar in nature and have limited accommodations for alternate modes of travel, especially bicycles (see Figures 18, 19, 22 and 23 below). Existing residential and commercial typical sections are identical, except for sidewalk and ROW width. Proposed alternative typical sections are proposed for commercial and residential land uses to provide a better level of traffic stress for bicycles. Some proposed changes to accommodate these alternate modes are displayed in Figures 20, 21, and 24. These typical sections show what can be done to repurpose the outside lanes for bikeways. With many of the city roadways varying in width, it will be important to evaluate each roadway on a case by case basis with the traffic volumes and current cross section.
Road Location No Change Reducing
Lanes No Change Reducing
Lanes No Change Reducing
Lanes
Alvin Ave W. of Railroad Ave A A A A A A
Alvin Ave W. of College Dr A C A B A C
Alvin Ave E. of Bradley Rd A C A A A B
Alvin Ave W. of Suey Rd A A A A A A
Battles Rd E. of Blosser Rd A B A C A C
Battles Rd W. of Blosser Rd A A A C A C
Battles Rd W. of Bradley Rd A D C F C F
Battles Rd W. of Broadway (SR 135) A B A B A C
Blosser Rd S. of Taylor St A B A B A C
Bradley Rd S. of Cottage Ln A A A A A A
Bradley Rd S. of Bello Rd A A A A A A
Bradley Rd S. of Battles Rd A E A B A C
College Dr N. of Battles Rd B F B F C F
College Dr N. of Main (SR 166) A F A E A F
College Dr N. of Alvin Ave A B A B A B
College Dr S. of Donovan Rd A C A B A C
Depot St N. of Carmen Ln A A A A A A
Depot St N. of Stowell Rd A D A F A F
Donovan Rd W. of Railroad Ave A C A D A C
Donovan Rd W. of Suey Rd A A A A A A
Fesler St E. of Broadway (SR 135) A A A A A A
Fesler St W. of Broadway (SR 135) A B A B A B
McCoy Ln E. of Skyway Dr A C A D A D
McCoy Ln E. of College Dr (roundabout) A A A A A A
McCoy Ln W. of College Dr (roundabout) A B A B A B
Panther Dr S. of Suey Crossing Rd A A A A A A
Santa Maria Wy S. of Miller Wy A F A F A F
Santa Maria Wy S. of Dauphin St A F A F B F
Stowell Rd W. of Blosser Rd B F A F B F
Suey Rd N. of Alvin Ave A A A A A A
Failing LOS (LOS E or LOS F)
City of Santa Maria Roadway Inventory
Existing Characteristics 2050 Annex LOS 2050 Infill LOS 2050 Hybrid LOS 11208620 29
Secondary Arterial
Figure 18 Existing Typical Section for Secondary Arterial (Residential Street)
Figure 19 Existing Typical Section for Secondary Arterial (Commercial Street)
Figure 20 Proposed Typical Section for Secondary Arterial (Parking-Protected Bike Lanes)
Figure 21 Proposed Typical Section for Secondary Arterial (Buffered Bike Lanes and Parking)
11208620 30
Primary Arterial
Figure 22 Existing Typical Section for Primary Arterial (Residential Street)
Figure 23 Existing Typical Section for Primary Arterial (Commercial Street)
Figure 24 Proposed Typical Section for Primary Arterial (Bicycle Lane with Raised Buffer) Figure 23 show how you can repurpose space on wider arterials for a protected bike lane. Primary arterials typically have higher speeds and volumes so need a higher degree of protection from vehicles. In addition, lanes can be narrowed based on the vehicle needs (lower truck and heavy vehicle volumes support 11’ lanes).
4.3.3 Peak Hour Volume Feasibility
The peak hour volume in the peak direction will be the measure of volume driving the analysis and can determine where the Road Diet can be feasibly implemented. See Table 5 below for FHWA’s road diet feasibility based on vehicle per hour per direction (vphpd) thresholds during the peak hour.
Table 5 FHWA Road Diet Feasibility
Feasibility Thresholds During the Peak hour
Probably feasible ≤ 750 vphpd
Consider cautiously 750 – 875 vphpd
Feasibility Less Likely ≥ 875 vphpd
11208620 31
4.4 Emerging Technologies
Support and implement projects with emerging technologies for improved multimodal operations.
Emerging technologies can include converting the existing traffic signals with inductive loop detection to video detection for bicycle detection. In addition, with new controllers at the signalized locations, leading pedestrian intervals can be implemented in giving the pedestrians 5 seconds of time before the vehicles, to establish their right of way in the crosswalks.
4.4.1 Transit Priority Routes
Prioritizing alternative modes can reduce vehicle congestion and greenhouse gases in high-density land use areas that support transit priority routes such as Broadway. Figure 23 shows an example of a typical section for a primary arterial that dedicates a travel lane to buses (red bus lane). This typical section will be especially important along the Broadway corridor in the Infill Alternatives where there is proposed much high land use densities and a major bus route.
Figure 25 Proposed Typical Section for Primary Arterial (Transit Only Lane)
5. Conclusion
The results of the assessed information from this memorandum are summarized in matrix format in Table 6.
These results are categorized from best to worst alternative, given the corresponding analysis scenario.
According to this matrix, Alternative B (Infill) is the recommended alternative. However, Alternative B (Infill) has significant VMT increase when compared to the original Base model. This VMT increase is not favorable to decreasing GHGs. It is suggested that the preferred infill alternative follow the Sustainable Communities Strategy which promotes growth based on a balance between housing and jobs.
Table 6 Alternatives Evaluation Matrix
11208620 32
Per the model, with the anticipated growth in 2050 for any land use scenario, many roadways will reach or exceed capacity thresholds. Therefore, it is very important to provide alternative modes of transportation as a priority, which shifts vehicle traffic to transit, biking, or walkable trips.
From the level-of-service analysis, several roadways in Santa Maria have opportunities for road diets based on the existing and forecasted future volumes. A road diet can allow bikeways to be added with minimal cost and provide connectivity in the transportation system. With the suggested new typical sections for the secondary arterial, evaluation of the current road cross section would need to be further assessed to see what could feasibly be accommodated. These roadways could still function as a secondary arterial versus a collector roadway but can have the additional lanes repurposed for alternative modes. 11208620 32
Attachment 1
Roadway Level-of-Service
Road Direction Location Facilit y Type Lanes Year Volume LOS Volume LOS Volume LOS Volume LOS US 101 N-S N. of Clark Ave Freewa y 4 (divided) 2017 45,500 B 65,900 D 64,670 D 66,180 D US 101 N-S S. of Clark Ave Freewa y 4 (divided) 2019 35,800 B 45,870 B 45,770 B 46,070 B US 101 N-S N. of Santa Maria Wy
Junction Freeway 6 (divided) 2017 57,000 B 112,010 F 105,460 E 111,530 F US 101 N-S S. of Santa Maria Wy
Junction Freeway 4 (divided) 2017 59,000 C 92,440 F 90,110 F 92,690 F US 101 N-S N. of Betteravia Rd Freewa y 6 (divided) 2017 68,000 B 117,820 F 112,700 F 115,900 F US 101 N-S S. of Betteravia Rd Freewa y 6 (divided) 2017 57,000 B 112,010 F 105,460 E 111,530 F US 101 N-S N. of Stowell Rd Freewa y 6 (divided) 2017 74,000 B 126,900 F 128,020 F 128,560 F US 101 N-S S. of Stowell Rd Freewa y 6 (divided) 2017 68,000 B 134,540 F 125,860 F 132,400 F US 101 N-S N. of SR 166 (Main St) Freeway 6 (divided) 2017 70,000 B 171,210 F 160,430 F 171,370 F US 101 N-S S. of SR 166 (Main St) Freeway 6 (divided) 2017 74,000 B 157,770 F 156,530 F 161,910 F US 101 N-S N. of SR 135 (Broadway) Freeway 6 (divided) 2019 82,090 C 208,810 F 198,890 F 212,870 F US 101 N-S S. of SR 135 (Broadway) Freeway 6 (divided) 2017 67,000 B 170,420 F 160,720 F 170,080 F Orcutt Expressway
(SR 135) N-S N. of Clark Ave Arterial 4 (divided) 2017 29,500 C 32,780 D 33,500 D 33,430 D Orcutt Expressway
(SR 135) N-S S. of Clark Ave Arterial 4 (divided) 2017 20,100 A 23,830 A 24,280 B 23,440 A Orcutt Expressway
(SR 135) N-S N. of Foster Rd Arterial 4 (divided) 2017 37,000 E 74,250 F 76,290 F 76,030 F Orcutt Expressway
(SR 135) N-S S. of Foster Rd Arterial 4 (divided) 2017 24,600 B 37,560 E 39,830 E 39,410 E Orcutt Expressway
(SR 135) N-S N. of Lakeview Rd Arterial 4 (divided) 2017 32,000 D 50,670 F 51,870 F 52,020 F Orcutt Expressway
(SR 135) N-S N. of Miller St Arterial 4 (div ided) 2017 43,000 F 51,970 F 52,410 F 52,010 F Orcutt Expressway
(SR 135) N-S S. of Miller St Arterial 4 (div ided) 2017 37,500 E 54,660 F 56,140 F 56,300 F Orcutt Expressway
(SR 135) N-S N. of Santa Maria Way Arterial 4 (divided) 2017 41,000 F 62,490 F 63,190 F 63,410 F Orcutt Expressway
(SR 135) N-S S. of Santa Maria Way Arterial 4 (divided) 2017 44,500 F 53,580 F 54,020 F 53,630 F Broadway (SR 135) N-S N. of Betteravia Rd Primary
Arterial 6 (divided) 2017 47,000 F 63,180 F 63,780 F 64,860 F Broadway (SR 135) N-S S. of Betteravia Rd Primary
Arterial 6 (divided) 2017 47,500 F 75,850 F 76,170 F 78,580 F Broadway (SR 135) N-S N. of Stowell Rd Arterial 4 (divided) 2017 40,500 F 56,570 F 54,670 F 58,770 F Broadway (SR 135) N-S S. of Stowell Rd Arterial 4 (divided) 2017 44,500 F 71,920 F 72,980 F 76,820 F Broadway (SR 135) N-S N. of Main St Arterial 4 (divided) 2017 28,500 C 44,400 F 42,510 F 45,730 F Broadway (SR 135) N-S S. of Main St Arterial 4 (divided) 2017 26,500 B 38,860 E 37,730 E 41,100 F Broadway (SR 135) N-S N. of Donovan Rd Arterial 4 (divided) 2017 27,000 B 48,860 F 48,360 F 51,900 F Broadway (SR 135) N-S S. of Donovan Rd Arterial 4 (divided) 2017 27,500 B 40,890 F 39,980 F 42,780 F Broadway (SR 135) N-S W. of US 101 Arterial 4 2017 23,900 A 55,520 F 54,930 F 58,620 F Main St (SR 166) E-W W. of Blosser Rd Arterial 2 (TWLTL) 2018 14,200 C 23,700 F 22,180 F 23,320 F Main St (SR 166) E-W E. of Blosser Rd Arterial 4 (TWLTL) 2018 15,900 A 22,910 A 23,180 A 23,920 B Main St (SR 166) E-W E. of Sue y Rd Arterial 4 (TWLTL) 2015 6,400 A 29,430 C 7,370 A 19,150 A Main St (SR 166) E-W W. of Sue y Rd Arterial 4 (TWLTL) 2018 8,700 A 29,260 C 10,250 A 18,830 A Main St (SR 166) E-W US 101 SB-Off Ramp Arterial 2 2018 29,500 F 39,250 F 40,280 F 40,850 F Main St (SR 166) E-W E. of Broadway (SR 135) Arterial 4 (divided) 2018 26,500 B 32,970 D 30,700 C 32,800 D Main St (SR 166) E-W W. of Broadway (SR 135) Arterial 4 (divided) 2018 18,800 A 25,720 B 23,280 A 25,020 B A St N-S S. of Betteravia Dr Secondary
Arterial 2 (TWLTL) 2015 3,450 A 4,120 A 4,850 A 4,590 A A St N-S S. of Sonya Ln Secondary
Arterial 2 2019 3,650 A 5,690 A 10,420 A 9,410 A
Alvin Ave E-W W. of Railroad Ave Secondary
Arterial 4 2018 8,510 A 9,620 A 9,180 A 10,000 A
Alvin Ave E-W W. of College Dr Secondary
Arterial 4 2018 7,700 A 15,620 A 12,850 A 14,730 A
Alvin Ave E-W E. of Bradley Rd Secondary
Arterial 4 2018 6,670 A 14,550 A 11,720 A 13,640 A
Alvin Ave E-W W. of Suey Rd Secondary
Arterial 4 2018 3,440 A 9,760 A 7,050 A 8,670 A
Battles Rd E-W E. of Blosser Rd Secondary
Arterial 4 2018 10,740 A 13,690 A 15,610 A 15,810 A
Battles Rd E-W W. of Blosser Rd Secondary
Arterial 4 2018 9,320 A 10,370 A 14,400 A 14,140 A
Battles Rd E-W W. of Bradley Rd Secondary
Arterial 4 2018 7,670 A 17,170 A 28,320 C 28,470 C
City of Santa Maria Roadway Inventory
Characteristics Existing 2050 Annex 2050 Infill 2050 Hybrid Road Direction Location Facilit y Type Lanes Year Volume LOS Volume LOS Volume LOS Volume LOS City of Santa Maria Roadway Inventory
Characteristics Existing 2050 Annex 2050 Infill 2050 Hybrid Battles Rd E-W E. of Broadway (SR 135) Secondary
Arterial 4 2015 13,220 A 16,540 A 17,580 A 18,190 A
Battles Rd E-W W. of Broadway (SR 135) Secondary
Arterial 4 2019 11,650 A 12,700 A 13,680 A 14,120 A
Bay Ave N-S b/w Donovan Rd and
Harding Ave Local 2 2015 3,490 A 3,490 A 3,490 A 3,490 A Betteravia Dr E-S E. of A St Primary
Arterial 4 (divided) 2018 14,630 A 20,500 A 36,120 E 33,830 D Betteravia Dr E-S E. of Skyway Dr Primary
Arterial 4 (divided) 2018 15,390 A 26,920 B 35,200 D 34,600 D Betteravia Dr E-W E. of Bradley Dr Primary
Arterial 6 (divided) 2018 38,460 E 55,320 F 56,990 F 57,830 F Betteravia Dr E-W W. of College Dr Primary
Arterial 6 (divided) 2018 34,170 D 62,130 F 61,000 F 65,080 F Betteravia Dr E-W W. of Depot St Primary
Arterial 4 (TWLTL) 2018 20,620 A 39,440 E 45,310 F 45,130 F Betteravia Dr E-W E. of Broadway (SR 135) Primary
Arterial 6 (divided) 2018 30,350 C 48,580 F 49,690 F 51,440 F Blosser Rd N-S S. of Foster Rd Secondary
Arterial 2 2015 2,220 A 42,130 F 41,530 F 41,570 F
Blosser Rd N-S S. of Stowell Rd Secondary
Arterial 4 (TWLTL) 2018 24,120 B 41,890 F 47,450 F 48,930 F Blosser Rd N-S b/w Boone St and Cook St Secondary
Arterial 4 (TWLTL) 2018 23,530 A 31,860 C 39,390 E 40,390 F Blosser Rd N-S S. of Main St (SR 166) Secondary
Arterial 4 2015 24,960 B 33,480 D 40,160 F 40,990 F
Blosser Rd N-S S. of Alvin Ave Secondary
Arterial 4 2019 14,140 A 23,250 A 25,260 B 26,580 B
Blosser Rd N-S S. of Donovan Rd Secondary
Arterial 4 2018 15,200 A 23,770 A 25,180 B 26,000 B
Blosser Rd N-S N. of Taylor St Secondary
Arterial 2 2015 5,120 A 5,930 A 6,000 A 6,360 A
Blosser Rd N-S S. of Taylor St Secondary
Arterial 4 2018 7,970 A 13,010 A 13,390 A 14,500 A
Blosser Rd N-S N. of Canal St Secondary
Arterial 2 2018 2,700 A 2,610 A 2,690 A 2,790 A
Bradley Rd N-S S. of Cottage Ln Secondary
Arterial 4 (TWLTL) 2018 1,000 A 5,030 A 4,430 A 5,250 A Bradley Rd N-S S. of Bello Rd Secondary
Arterial 4 (TWLTL) 2019 4,960 A 6,360 A 5,800 A 6,200 A Bradley Rd N-S S. of Betteravia Dr Secondary
Arterial 4 2018 22,740 A 27,410 B 26,700 B 27,330 B
Bradley Rd N-S N. of Battles Rd Secondary
Arterial 4 (TWLTL) 2018 16,420 A 33,360 D 39,770 E 42,140 F Bradley Rd N-S S. of Battles Rd Secondary
Arterial 4 (TWLTL) 2018 10,760 A 18,410 A 13,460 A 15,670 A Bradley Rd N-S N. of Stowell Rd Secondary
Arterial 2 2018 14,860 F 18,170 F 17,610 F 18,730 F
Bradley Rd N-S b/w SR 101 SB-On Ramp
and Cypress St (one-way)
Secondary
Arterial 2 2018 3,750 A 7,830 B 3,940 A 6,590 A
Bradley Rd E-W E. of College Dr Secondary
Arterial 2 2015 3,950 A 3,950 A 3,950 A 3,950 A
Bull Canyon Rd N-S N. of Panther D r Collector 2 2018 260 A 2,510 A 1,640 A 2,870 A California Blvd N-S S. of Foster Rd Local 2 2015 1,460 A 1,840 A 1,790 A 1,810 A Camino Cole
gio E-W E. of Miller St Local 2 2015 1,280 A 1,460 A 1,580 A 1,580 A Camino Colegio E-W W. of Miller St Local 2 2015 1,400 A 1,500 A 1,490 A 1,580 A Canal St E-W E. of Blosser Rd Collecto r 2 2019 1,140 A 1,910 A 1,900 A 2,050 A Carlotti Dr N-S b/w Noble Wy and Paden
St Collector 2 2015 5,490 A 19,590 F 20,070 F 19,740 F
Carlotti Dr N-S b/w Stanford Dr and
Murray Dr Collector 2 2015 3,700 A 19,380 F 19,780 F 19,470 F Carmen Ln E-W W. of Thornbur g St Collecto r 2 2015 5,440 A 4,000 A 4,080 A 4,190 A Carmen Ln E-W W. of Broadway (SR 135) Collector 2 2015 7,580 A 8,630 A 8,420 A 8,630 A Centennial St N-S b/w Mt Whitney Wy and
Panther Dr
Collector
(proposed) 2 2015 1,480 A 1,480 A 1,480 A 1,480 A
Cesar E Chavez Dr N-S S. of Hidden Pines W y Collector 2 2013 3,390 A 3,450 A 3,480 A 3,450 A College Dr N-S E. of Santa Maria Wy Secondary
Arterial 4 (divided) 2019 9,730 A 25,870 B 25,050 B 25,680 B College Dr N-S N. of McCoy Ln
(Roundabout)
Secondary
Arterial 4 2015 11,240 A 14,080 A 14,250 A 14,320 A
College Dr N-S S. of McCoy Ln
(Roundabout)
Secondary
Arterial 4 2019 8,230 A 17,690 A 18,690 A 18,960 A
Road Direction Location Facilit y Type Lanes Year Volume LOS Volume LOS Volume LOS Volume LOS City of Santa Maria Roadway Inventory
Characteristics Existing 2050 Annex 2050 Infill 2050 Hybrid College Dr N-S S. of Sunrise Dr Secondary
Arterial 4 (divided) 2018 10,960 A 21,210 A 21,600 A 22,260 A College Dr N-S N. of Betteravia Dr Secondary
Arterial 4 (divided) 2019 9,300 A 23,380 A 24,760 B 28,040 C College Dr N-S S. of Betteravia Dr Secondary
Arterial 4 (divided) 2018 10,840 A 14,070 A 14,150 A 14,220 A College Dr N-S N. of Battles Rd Secondary
Arterial 4 (divided) 2018 10,760 A 24,600 B 25,480 B 28,330 C College Dr N-S N. of Stowell Rd Secondary
Arterial 4 (TWLTL) 2018 12,310 A 31,400 C 30,170 C 33,430 D College Dr N-S N. of Boone St/Jones St Secondary
Arterial 2 2019 9,610 A 34,140 F 31,920 F 36,370 F
College Dr N-S S. of Boone St/Jones St Secondary
Arterial 2 2015 9,930 A 29,480 F 29,140 F 33,150 F
College Dr N-S N. of Main (SR 166) Secondary
Arterial 4 (TWLTL) 2019 8,620 A 20,780 A 18,820 A 21,930 A College Dr N-S N. of Alvin Ave Secondary
Arterial 4 2015 5,820 A 12,940 A 12,540 A 13,930 A
College Dr N-S S. of Donovan Rd Secondary
Arterial 4 2018 8,020 A 14,230 A 13,810 A 15,100 A
Concepcion Ave N-S N. of Jones St Collecto r 2 2018 970 A 920 A 1,140 A 920 A Cook St E-W W. of Depot St Collecto r 2 2018 6,190 A 6,800 A 7,100 A 7,300 A Cook St E-W W. of Broadway (SR 135) Collector 4 (divided) 2017 8,870 A 11,090 A 12,190 A 12,420 A Cook St E-W E. of Broadway (SR 135) Collector 4 (divided) 2018 8,990 A 11,550 A 11,810 A 11,610 A Cook St E-W b/w Miller St and School
St Collector 2 2015 3,150 A 6,090 A 6,170 A 6,310 A
Cook St E-W b/w East Ave and College
D
r Collector 2 2015 2,190 A 4,700 A 4,740 A 4,850 A
Crossroad Ln E-W W. of Bradle y Rd Collecto r 2 2018 4,800 A 7,570 A 7,650 A 7,990 A Depot St N-S N. of Carmen Ln Secondary
Arterial 4 2015 4,500 A 6,020 A 5,870 A 6,420 A
Depot St N-S N. of Battles Rd Secondary
Arterial 2 2018 10,450 B 9,070 A 8,610 A 9,880 B
Depot St N-S N. of Stowell Rd Secondary
Arterial 4 2018 9,560 A 16,660 A 20,860 A 21,560 A
Depot St N-S N. of Main (SR 166) Secondary
Arterial 2 2018 8,940 A 10,740 A 10,620 A 10,960 A
Depot St N-S S. of Cook St Secondary
Arterial 2 2018 8,280 A 19,830 E 22,370 F 23,660 F
Donovan Rd E-W W. of Railroad Ave Secondary
Arterial 4 2018 11,580 A 14,490 A 16,130 A 15,970 A
Donovan Rd E-W W. of Broadway (SR 135) Secondary
Arterial 4 2015 17,390 A 26,280 B 26,540 B 28,230 C
Donovan Rd E-W E. of Broadway (SR 135) Secondary
Arterial 4 2018 16,580 A 18,050 A 17,090 A 17,780 A
Donovan Rd E-W W. of College Dr Secondary
Arterial 4 (divided) 2019 19,010 A 21,760 A 20,660 A 22,350 A Donovan Rd E-W E. of College Dr Secondary
Arterial 4 (divided) 2018 23,900 A 29,430 C 28,520 C 30,080 C Donovan Rd E-W W. of Carlotti Dr Secondary
Arterial 4 2018 23,040 A 34,270 D 33,560 D 34,920 D
Donovan Rd E-W W. of Suey Rd Secondary
Arterial 4 2018 7,530 A 8,980 A 7,650 A 9,190 A
Enos Dr E-W E. of Colle ge Dr Collector 2 2015 2,850 A 3,590 A 3,030 A 3,180 A Fairway Dr E-W E. of A St Collecto r 2 2015 2,700 A 3,740 A 4,040 A 3,920 A Fairway Dr E-W E. of Sk yway Dr Collector 2 2015 3,490 A 5,540 A 5,230 A 5,670 A Farrell Dr N-S N. of Jones St Local 2 2018 2,740 A 2,750 A 2,740 A 2,750 A Fesler St E-W E. of Broadway (SR 135) Secondary
Arterial 4 2018 5,640 A 11,950 A 10,980 A 11,870 A
Fesler St E-W W. of Broadway (SR 135) Secondary
Arterial 4 2015 6,880 A 12,230 A 13,730 A 13,590 A
Fesler St E-W b/w Benwiley Ave and
Railroad Ave
Secondary
Arterial 2 2018 3,800 A 4,680 A 4,930 A 4,890 A
Foster Rd E-W W. of Orcutt Expressway
(SR 135) Collector 2 2019 4,190 A 30,930 F 31,700 F 31,470 F Foxenwood Ln N-S S. of Foster Rd Collecto r 2 2015 810 A 930 A 890 A 880 A Grant St E-W b/w Broadway (SR 135)
and River Ranch Dr Collector 2 2015 5,230 A 5,460 A 5,360 A 5,230 A Hidden Pines Wy E-W W. of Preisker Ln Collecto r 2 2015 7,950 A 8,730 A 8,670 A 8,770 A Industrial Pkwy N-S E. of Sk yway Dr Collector 2 (TWLTL) 2019 1,870 A 3,920 A 3,610 A 4,050 A La Brea Ave E-W W. of Blosser Rd Collecto r 2 2015 1,910 A 2,730 A 10,300 B 10,320 B Lynne Dr N-S b/w Lee Dr and Donovan
Rd Collector 2 2015 5,670 A 6,040 A 6,050 A 6,360 A
Road Direction Location Facilit y Type Lanes Year Volume LOS Volume LOS Volume LOS Volume LOS City of Santa Maria Roadway Inventory
Characteristics Existing 2050 Annex 2050 Infill 2050 Hybrid Jones St E-W E. of Farrell D r Collector 2 2018 7,990 A 22,970 F 13,750 D 20,820 F Jones St E-W W. of Bradle y Rd Collecto r 2 2018 4,400 A 19,400 F 10,170 B 17,250 F McClelland St N-S S. of Cook St Collecto r 2 2015 3,330 A 4,000 A 3,960 A 4,270 A McCoy Ln E-W E. of A St Secondary
Arterial 2 2,880 A 3,010 A 3,330 A 3,320 A
McCoy Ln E-W E. of Skyway Dr Secondary
Arterial 4 (TWLTL) 2018 11,850 A 15,240 A 16,170 A 16,300 A McCoy Ln E-W E. of Broadway (SR 135) Secondary
Arterial 4 (divided) 2018 12,760 A 18,000 A 18,520 A 18,860 A McCoy Ln E-W W. of Broadway (SR 135) Secondary
Arterial 4 (divided) 2019 14,960 A 19,200 A 20,500 A 20,530 A McCoy Ln E-W E. of College Dr
(roundabout)
Secondary
Arterial 4 2015 5,330 A 5,400 A 5,370 A 5,410 A
McCoy Ln E-W W. of College Dr
(roundabout)
Secondary
Arterial 4 2019 6,380 A 12,350 A 13,320 A 13,680 A
Miller St N-S N. of Battles Rd Secondary
Arterial 4 (divided) 2018 14,540 A 26,250 B 27,520 B 28,780 C Miller St N-S N. of Stowell Rd Secondary
Arterial 2 2018 13,420 B 19,720 E 19,250 E 20,450 F
Miller St N-S S. of Main (SR 166) Secondary
Arterial 4 (divided) 2017 14,770 A 21,780 A 22,090 A 23,260 A Miller St N-S S. of Alvin Ave Secondary
Arterial 2 2015 8,520 A 11,140 A 11,070 A 11,460 A
Miller St N-S b/w Lee Dr and Donovan
Rd
Secondary
Arterial 2 2015 4,160 A 5,640 A 5,500 A 5,890 A
Miller St N-S S. of Donovan Rd Secondary
Arterial 4 2018 5,840 A 8,170 A 7,880 A 8,570 A
Miller St E-W E. of Santa Maria Wy Secondary
Arterial 4 (divided) 2018 11,120 A 23,190 A 23,890 A 24,070 B Miller St N-S S. of Betteravia Dr Secondary
Arterial 4 (divided) 2018 13,990 A 27,980 C 28,100 C 28,630 C Morrison Ave E-W W. of Broadway (SR 135) Collector 2 2015 5,140 A 6,430 A 6,830 A 6,310 A Morrison Ave E-W W. of Depot St Collecto r 2 2018 5,500 A 6,150 A 5,960 A 6,110 A Palisade Dr N-S S. of Main (SR 166) Local 2 2018 7,440 B 8,340 C 7,810 B 8,070 B Panther Dr N-S S. of Suey Crossing Rd Secondary
Arterial 4 2015 4,810 A 6,250 A 5,720 A 6,040 A
Preisker Ln N-S N. of Broadway (SR 135) Collector 2 2018 10,880 B 11,950 C 11,820 C 11,970 C Professional Pkwy N-S N. of McCo y Ln Collecto r 2 2015 2,760 A 3,150 A 3,150 A 3,180 A Railroad Ave N-S N. of Fesler Ave Secondary
Arterial 2 (TWLTL) 2019 8,750 A 11,410 A 11,390 A 11,700 A Railroad Ave N-S b/w Donovan Rd and
Harding Ave
Secondary
Arterial 2 2018 9,980 A 12,050 B 12,080 B 12,340 B
Railroad Ave N-S N. of Taylor St Secondary
Arterial 2 2015 6,160 A 10,240 A 9,880 A 10,600 A
Railroad Ave N-S S. of Taylor St Secondary
Arterial 2 2015 7,780 A 12,270 B 12,000 A 12,970 B
Santa Maria Wy N-S S. of Miller Wy Secondary
Arterial 4 (divided) 2017 10,470 A 21,810 A 22,050 A 22,900 A Santa Maria Wy N-S S. of Dauphin St Secondary
Arterial 4 (divided) 2018 10,420 A 22,890 A 22,710 A 24,910 B Shepard Dr N-S N. of Battles Rd Collecto r 2 2015 1,900 A 2,860 A 2,640 A 3,260 A Sierra Madre Ave E-W W. of Bradle y Rd Collecto r 2 2015 1,350 A 4,880 A 3,250 A 4,020 A Skyway Dr N-S S. of Industrial Pkwy Secondary
Arterial 4 (divided) 2015 15,740 A 28,790 C 31,530 C 31,200 C Skyway Dr E-S W. of Orcutt Expressway
(SR 135)
Secondary
Arterial 4 (divided) 2018 17,350 A 31,070 C 33,180 D 32,510 D Skyway Dr N-S N. of Fairway Dr Secondary
Arterial 4 (divided) 2019 16,540 A 30,900 C 32,550 D 32,960 D Skyway Dr N-S S. of Fairway Dr Secondary
Arterial 4 (divided) 2019 15,260 A 27,940 C 30,570 C 30,430 C Skyway Dr N-S N. of Betteravia Dr Secondary
Arterial 4 (divided) 2018 20,010 A 35,450 D 33,650 D 34,880 D Skyway Dr N-S S. of Betteravia Dr Secondary
Arterial 4 (divided) 2018 19,530 A 31,040 C 32,120 D 32,460 D Sonya Ln E-W E. of A St Collecto r 2 2015 360 A 750 A 940 A 890 A Southside Pkwy E-S E. of Centerpoint Pkw y Collector 2 2015 1,400 A 1,400 A 1,370 A 1,380 A Southside Pkwy E-S W. of Bradley Rd
(Roundabout) Collector 2 2018 4,940 A 4,940 A 4,940 A 4,940 A Stowell Rd E-W W. of Bradley Rd Secondary
Arterial 4 (TWLTL) 2018 20,220 A 35,320 D 31,660 C 34,600 D Stowell Rd E-W W. of Depot St Secondary
Arterial 4 (TWLTL) 2018 14,020 A 27,360 B 28,530 C 30,490 C Road Direction Location Facilit y Type Lanes Year Volume LOS Volume LOS Volume LOS Volume LOS City of Santa Maria Roadway Inventory
Characteristics Existing 2050 Annex 2050 Infill 2050 Hybrid Stowell Rd E-W W. of Blosser Rd Secondary
Arterial 4 (TWLTL) 2018 9,510 A 27,160 B 21,850 A 24,190 B Stowell Rd E-W W. of Hanson Wy Secondary
Arterial 2 2018 8,020 A 14,560 C 14,210 C 16,460 D
Suey Rd N-S N. of Jones St Secondary
Arterial 2 2015 5,300 A 10,740 A 7,590 A 9,510 A
Suey Rd N-S N. of Main (SR 166) Secondary
Arterial 2 2018 7,590 A 10,740 A 10,180 A 11,320 A
Suey Rd N-S N. of Alvin Ave Secondary
Arterial 4 2019 4,850 A 9,140 A 8,280 A 9,100 A
Sunrise Dr E-W W. of Colle ge Dr Collector 2 2015 2,440 A 2,510 A 2,510 A 2,510 A Sunrise Dr E-W E. of Santa Maria W y Collector 2 2018 2,910 A 3,160 A 3,160 A 3,160 A Taylor St E-W W. of Railroad Ave Collecto r 2 2018 5,740 A 9,190 A 9,470 A 10,080 B Taylor St E-W W. of Broadway (SR 135) Collector 2 2015 10,930 B 12,130 C 12,340 C 12,890 D Thornburg St N-S N. of Betteravia D r Collector 2 2018 6,150 A 6,330 A 6,210 A 6,310 A Thornburg St N-S N. of Carmen Ln Collecto r 2 2015 3,710 A 5,080 A 5,090 A 5,500 A Thornburg St E-W S. of Battles Rd Collecto r 2 2015 3,590 A 6,020 A 5,740 A 6,360 A Union Valley Parkway E-S W. of Orcutt Expressway
(SR 135)
Primary
Arterial 4 (divided) 2015 5,990 A 35,670 D 36,410 E 36,490 E Union Valley Parkway E-S E. of Blosser Rd Primary
Arterial 2 2015 1,630 A 29,400 F 30,460 F 29,920 F
Western Ave N-S N. of Stowell Rd Collecto r 2 2018 8,330 A 9,900 B 9,890 B 10,060 B Western Ave N-S N. of Main (SR 166) Collector 2 2013 4,290 A 5,250 A 5,260 A 5,410 A Western Ave N-S S. of Main (SR 166) Collector 2 2019 4,390 A 5,220 A 5,240 A 5,260 A Westgate Rd N-S S. of Battles Rd Collecto r 2 2019 3,590 A 3,590 A 3,590 A 3,590 A Westgate Rd N-S N. of Carmen Ln Collecto r 2 2015 1,640 A 1,640 A 1,640 A 1,640 A 11208620 33
Attachment 2
Vehicle-to-Capacity Ratio Maps
Alternative: Annex
Time Period: PM Peak Hour
Alternative: Annex
Time Period: Daily
Alternative: Infill
Time Period: PM Peak Hour
Alternative: Infill
Time Period: Daily
Alternative: Hybrid
Time Period: PM Peak Hour
Alternative: Hybrid
Time Period: Daily
Alternatives Technical Memorandum
Alternatives Technical Memorandum
Santa Maria General Plan Update
Public Realm Design Options
November 18, 2022
INTRODUCTION & BACKGROUND
Intent
This slide deck introduces a toolkit for enhancing the public realm and urban design in Santa Maria. As such, this toolkit includes items related to both open spaces and streets.
Relationship to Land Use Alternatives
Slide 22 features a matrix that matches tools with General Plan land use designations, which regulate land use, density, and intensity. When considering potential future land use
Alternatives, the matrix on slide 22 can be used to identify how different public realm and urban design tools, described in slides 4 through 19, could be applied in different parts of the city. Note, some toolkit items may be recommended in the General Plan regardless of the land use Alternative.
For a closer look at differences in the application of toolkit items by Alternative, slides 23 through 25 geographically illustrate where particular tools would apply in key areas of change, unique to each Alternative.
Relationship to Street Section
Slides 20 and 21 provide examples of how various public realm and urban design tools can be applied on primary and
secondary arterials, like Broadway and Main Street,
respectively.
2 Relationship to the Updated General Plan
The updated General Plan will include design guidance to preserve community character, including how public realm and urban design tools are to be applied citywide and by subarea or neighborhood. This toolkit can serve as the basis for the design guidance in the General Plan.
Community Input Needed
To inform the updated General Plan, community input is
needed to inform:
● Which tools are appropriate for Santa Maria?
● Are any public realm or design tools missing from the toolkit that would be appropriate for Santa Maria?
● Which features of each tool do you like, and which would you change?
● Which tools are most appropriate in different areas of the city?
● Which tools are appropriate on different streets around the city?
OPEN SPACES
Park
Socialization,
recreation, and/or rest
TOOLKIT GLOSSARY
Pocket Park
Socialization and/or
rest
Plaza
Socialization and
celebration
Food Truck Pod
Public activation and
economic dev’t
Trail
Recreation and/or
commuting
Sidewalk Widening
Enhance public access
and commercial
frontage
Street Trees
Biophilic experience
and shade
Landscape Strip
Biophilic experience
and pervious surface
Furnishing
Public realm activation
and visitor comfort
Curb Extension
Intent: Safety and
placemaking
Gateway
Placemaking and
community building
Parklet
Public realm activation
and economic dev’t
Alleyway
Public realm activation
Public Art
Placemaking and
community building
The toolkit includes both open space and street items that are intended to enhance the public realm. This glossary provides an overview of each item.
STREETS
Slow Street
People-first, safe
streets for recreation
and socialization
Right-of-Way Enhancements TemporaryApplied in Specific Locations Natural Open Space
Ecological restoration,
recreation, rest
3 OPEN SPACE TOOLKIT: NATURAL OPEN SPACE
Intent and Description
These areas are intended to preserve open spaces for ecological retention and restoration, as well as offer opportunities for residents to connect with nature. They can range from natural, unmodified lands to areas in need of restoration.
Applicability
Within and surrounding communities, this is often land that is preserved for habitat and ecology. As publicly-accessible areas, they contribute to a community’s open space network and offer opportunities for residents to connect with nature.
General Plan Land Use Designations
Conservation Open Space (COS), Planned Annexation (PA)
Marcelino Springs Ranch
Buellton, CA
West Goleta Slough
Santa Barbara County, CA
Source: The Land Trust for Santa Barbara County
Source: The Land Trust for Santa Barbara County
Existing
Creek
Proposed
Restored Creek
4 OPEN SPACE TOOLKIT: PARK
Buena Vista Park
Santa Maria, CA Source: Noozhawk
Existing
Agriculture
Proposed
Park
Downtown City Park
Paso Robles, CA Source: RecWest
5 Intent and Description
Parks provide residents with places to connect with nature and with others.
They typically provide natural features such as lawns, trees, places for recreation and play, as well as other vegetated elements.
Applicability
Parks should generally be greater than an acre and distributed throughout the city so that there is one within a 10-minute walk from each household in Santa Maria.
General Plan Land Use Designations
Primary Agricultural Open Space (AOS-I), Secondary Agricultural Open Space (AOS-II), Conservation Open Space (COS), Recreational Open Space (ROS), Community Facilities (CF), High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Low Medium Density Residential (LMDR-8), Low Density Residential (LDR-5), Lower-Density Residential (LWDR-4), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Light Industrial (LI), Planned Annexation (PA) OPEN SPACE TOOLKIT: PLAZA
Intent and Description
Provide residents and visitors with a centralized place for socialization and celebration. Plazas often feature hardscape surfaces, a central feature such as a stage, fountain, monument or public art, and active building frontages that help to frame the space.
Applicability
For public plazas, there should be no more than one per neighborhood.
When publicly built, forecourt plazas of less than one-eighth of an acre are desired in mixed-use developments greater than an acre in scale.
General Plan Land Use Designations
Community Facilities (CF), High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Low Medium Density Residential (LMDR-8), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Specific Plan (SP), Planned Annexation (PA) Downtown Plaza
Chico, CA
Amazon Corner
Eugene, OR Source: Amazon Corner
Existing
Surface Parking Lot
Proposed
Plaza
6 OPEN SPACE TOOLKIT: TRAIL
Intent and Description
Trails offer recreation and commuting opportunities. They should be ADA accessible and wide enough to accommodate a variety of users (pedestrians, cyclists, etc.).
Applicability
Safe and accessible trails should be interconnected to enable connectivity throughout Santa Maria for residents to meet their daily needs.
General Plan Land Use Designations
All designations except for Freeway Services (FS) and Airport Services (AS) Monterrey Trail
Monterrey, CA
Santa Maria Valley Multi-Purpose Trail
Santa Maria, CA
Source: Rails to Trails
Source:TrailLink
Existing
Parking Lot Edge
Proposed
Trail
7 OPEN SPACE TOOLKIT: POCKET PARK
Intent and Description
Pocket parks offer places for gathering or relaxation, typically in medium or higher density areas. They can offer a variety of uses, including community gardens, play spaces, socialization, etc.
Applicability
Typically less than an eighth of an acre and can be placed in vacant lots, abandoned alleyways, public land where roads intersect, or other underutilized space.
General Plan Land Use Designations
High Density Residential (HDR-70/35) , Medium Density Residential (MDR-12), Low Medium Density Residential (MDR-10), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Commercial/Professional Office (CPO), Specific Plan (SP), Planned Annexation (PA)
DeKalb, Ill
Downtown Texarkana
Texarcana , TX
Source: Ayres Associates
Source: Texarkana Central
Existing
Residual Space
Proposed
Pocket Park
8 OPEN SPACE TOOLKIT: FOOD TRUCK POD
Intent and Description
Food truck pods provide locations for entrepreneurs to sell their cuisine and offer places for community gathering. They can be located in temporary locations or more formalized settings.
Applicability
These areas can be placed in a variety of spaces, including underutilized parking lots, public parks, and/or adjacent to other community gathering locations.
General Plan Land Use Designations
Recreational Open Space (ROS), Community Facilities (CF), High Density Residential (HDR-35/22), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Commercial/Professional Office (CPO), Neighborhood Commercial (NC), Light Industrial (LI), Specific Plan (SP), Planned Annexation (PA)
Food Truck Village
San Luis Obispo, CA
East Village
Little Rock, AR
Source: Cal Poly Corp
Source: About You Magazine
Existing
Surface Parking Lot
Proposed
Food Truck Pod
9 STREETS TOOLKIT: SIDEWALK WIDENING
Intent and Description
Widened sidewalks offer enhanced usage for many users. Business can use sidewalks to extend their businesses outside (e.g. tables for eating and drinking, outdoor display). Additional sidewalk width encourages pedestrians to navigate sidewalks in a social setting, allowing couples and small groups to walk side by side.
Applicability
Wide sidewalks should be prioritized in urban commercial and medium- to high-density residential areas.
General Plan Land Use Designations
Community Facilities (CF), High Density Residential (HDR-35/22), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Neighborhood Commercial (NC), Specific Plan (SP)
Street Classification(s)
Primary Arterial, Secondary Arterial, Collector Road
Downtown SLO
San Luis Obispo, CA
Downtown Solvang
Solvang, CA
Source: Hiking In BIg Sur
Source: California.com
Existing
Typical Sidewalk
Proposed
Sidewalk Widening
10 STREETS TOOLKIT: STREET TREES
Intent and Description
Tree-lined streets offer myriad benefits such as offering a buffer for pedestrians from traffic, offering shade, reducing the urban heat island effect, increasing adjacent property values, improving stormwater drainage flows, improving air quality, and aesthetically enhancing urban environments.
Applicability
Street trees should be prioritized, especially in areas with considerable pedestrian demand or where demand is desirable.
General Plan Land Use Designations
Streets trees should be considered in all land use designations, but should be prioritized in Recreational Open Space (ROS), Community Facilities (CF), High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Neighborhood Commercial (NC), Planned Annexation (PA)
Street Classification(s)
All designations
4th Ave
Berkeley, CA
Main Street
Southampton, MA
Source: Fourthstreet.com
Source: Massengale
Existing
Sidewalk
Proposed
Sidewalk w/ Street Trees
11 STREETS TOOLKIT: FURNISHINGS
Intent and Description
Furnshings offer amenities that make the public realm more inviting and comfortable for people. These can include places to sit, secure a bike, or throw out trash or recyclables. They can also include pedestrian-oriented and/or decorative lighting.
Applicability
Furnishings should be provided in walkable pedestrian-priority areas (e.g. commercial and mixed use districts as well as bus stops).
General Plan Land Use Designations
Recreational Open Space (ROS), Community Facilities (CF), High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Commercial/Professional Office (CPO), Neighborhood Commercial (NC), Specific Plan (SP), Planned Annexation (PA) Street Classification(s)
Primary Arterial, Secondary Arterial
Unknown location Source: NACTO
Existing
Sidewalk
Proposed
Sidewalk w/ benches
5th Avenue South
Clinton, IA Source: Snyder & Associates
12 STREETS TOOLKIT: LANDSCAPE STRIP
Intent and Description
Offer barriers for pedestrians from automobiles, add pervious surface area for stormwater runoff, and often space for shade trees. They are located between the sidewalk and roadway.
Applicability
Landscape strips should be considered along reconstructed roadways where changes in land use anticipate higher densities of residents or street-fronting businesses.
General Plan Land Use Designations
Recreational Open Space (ROS), Community Facilities (CF), High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Neighborhood Commercial (NC), Specific Plan (SP), Planned Annexation (PA)
Street Classification(s)
Primary Arterial, Secondary Arterial, Collector Road
Los Angeles, CA
5th Avenue South
Clinton, IA
Source: LA Times
Source: Snyder & Associates
Existing
Sidewalk
Proposed
Sidewalk w/ Landscape Strip
13 STREETS TOOLKIT: CURB EXTENSION / BULB OUT
Intent and Description
Enhance safety by promoting traffic-calming and by reducing crossing distances for pedestrians. Curb extensions enlarge the pedestrian realm at intersections and balance the roadway width.
Applicability
Curb extensions should be prioritized at higher pedestrian priority areas. A tactical and/or temporary materials approach for testing and phased implementation should be considered.
General Plan Land Use Designations
High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Neighborhood Commercial (NC), Specific Plan (SP), Planned Annexation (PA)
Street Classification(s)
Primary Arterial, Secondary Arterial, Collector Road, Local Streets 2nd Street
Rehoboth, RI
Unknown Location
Source: Cape Gazette
Source: unknown
Existing
Typical Intersection
Proposed
Intersection w/ Bulb Out
14 STREETS TOOLKIT: ALLEYWAY ACTIVATION
Intent and Description
Convert underutilized public rights-of-way into intentionally useful, safe, and fun places. Adjacent businesses and/or residents should be encouraged to engage and help activate these spaces with surfaces, lighting, and vegetation that make them inhabitable.
Applicability
Activation of alleyways should be considered in areas of redevelopment and reinvestment.
General Plan Land Use Designations
Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Specific Plan (SP) Downtown
Fort Collins, CO
Bradley Plaza Green Alley
Pacoima, CA
Source: Downtown Fort Collins
Source: Arup
Existing
Alleyway
Proposed
Alleyway Activation
15 STREETS TOOLKIT: SLOW STREET
Intent and Description
Slow streets are primarily residential streets that promote walking, riding, play, and socializing opportunities. These streets limit through traffic and encourage local traffic to move slowly and carefully.
Applicability
Slow streets should be considered in residential neighborhoods and can be strategically located to augment the community’s bikeway network.
General Plan Land Use Designations
High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Low Medium Density Residential (LMDR-8), Low Density Residential (LDR-5), Lower-Density Residential (LWDR-4)
Applicable Street Classification(s)
Local Streets, Minor Streets
Shafter Ave
Oakland, CA
Comox-Helmcken Greenway
Vancouver, BC
Source: SF Streetsblog
Source: Paul Kruger/Flickr
Existing
Residential Street
Proposed
Slow Street
16 STREETS TOOLKIT: PARKLET
Intent and Description
Parklets offer semi-permanent sidewalk extensions that provide adjacent businesses additional space for customers, most often used for food and beverage. These elements provide activation of the public realm.
Applicability
Parklets perform best when located adjacent to a sponsoring commercial / retail business or other entity who will activate and manage it.
General Plan Land Use Designations
Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Neighborhood Commercial (NC), Specific Plan (SP), Planned Annexation (PA)
Street Classification(s)
Primary Arterial, Secondary Arterial, Collector Road
Press Room
Santa Barbara, CA
Downtown
San Luis Obispo, CA
Source: Santa Barbara News-Press
Source: New Times SLO
Existing
Street Parking
Proposed
Parklet
17 STREETS TOOLKIT: GATEWAY
Intent and Description
Gateways demarcate entrances to character areas such as commercial districts and neighborhoods. Such elements should embody the character of the area and can be expressed in a variety of ways.
Applicability
Gateways are best located along key community streets at the perimeter and/or center of character areas, such as downtown or a historic neighborhood.
General Plan Land Use Designations
Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Specific Plan (SP), Planned Annexation (PA)
Street Classification(s)
Primary Arterial, Secondary Arterial
Historic Downtown
Yuma, AZ
Gateway Sign
Frankford, NJ
Source: Visit Yuma
Source: Frankford Gazette
Existing
Street
Proposed
Gateway
18 STREETS TOOLKIT: PUBLIC ART
Intent and Description
Public art elicits feelings through a variety of art forms. Murals, sculpture, statues, and interactive installations are just a few examples.
Applicability
A high priority should be placed on including public art elements in desired redevelopment areas and new development.
General Plan Land Use Designations
Recreational Open Space (ROS), Community Facilities (CF), High Density Residential (HDR-35/30), Medium Density Residential (MDR-12), Community Commercial (CC), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), Commercial/Professional Office (CPO), Neighborhood Commercial (NC), Specific Plan (SP), Planned Annexation (PA) Street Classification(s)
Primary Arterial, Secondary Arterial, Collector Road
Smith and Main streets
Santa Maria, CA
Betteravia Government Center
Santa Maria, CA
Source: Santa Maria Times
Source: Noozhawk
Existing
Blank Wall
Proposed
Mural
19 STREET SECTIONS: PRIMARY ARTERIAL
These sections highlight
standard widths within the
right-of-way for a primary
arterial. In the image to the
upper right, an optional
protected bike lane is
illustrated along wide
sidewalks that contain a
landscape strip, street trees,
furnishings, and pedestrian-
scale lighting.
In the lower-right image, a
bus lane has been illustrated
in lieu of a buffered bike lane
where transit is prioritized.
20 Widened
Sidewalks Furnishings Street
Trees
Widened
Sidewalks Furnishings Street
Trees
STREET SECTIONS: SECONDARY ARTERIAL
These sections highlight
standard widths within the
right-of-way for a secondary
arterial. In the image to the
upper right, an optional
protected bike lane is
illustrated along wide
sidewalks that include
landscape strips, street
trees, furnishings, and
pedestrian-scale lighting.
Whereas, in the lower-right
image, on-street parking is
located along the curb to
allow flexible uses to take
place, such as parklets. A
narrower, buffered bike lane
can still exist.
21 Widened
Sidewalks Furnishings Street
Trees
Landscape
Strip
Widened
Sidewalks Furnishings Street
Trees Parklets
TOOLKIT APPLICABLE LAND USE DESIGNATIONS
Natural Open
Space X X
Park X X X X X X X X X X X X X X X X X X
Plaza X X X X X X X X X
Trail X X X X X X X X X X X X X X X X X X X X X X
Pocket Park X X X X X X X X
Food Truck Pod X X X X X X X X X X X
Sidewalk
Widening X X X X X X X X
Street Trees X X X X X X X X X X X X X X X
Furnishings X X X X X X X X X X
Landscape Strip X X X X X X X X X
Curb Extension X X X X X X X X X
Alleyway
Activation X X X X X
Slow Street X X X X X
Parklets X X X X X X
Gateways X X X X X X
Public Art X X X X X X X X X X
Primary Agricultural
Open Space
(AOS-I)
Secondary Agricultural
Open Space
(AOS-II)
Conservation Open
Space (COS)
Recreation Open Space
(ROS)
Community Facilities
(CF)
High Density Residential
(HDR-35/30)
Medium Density
Residential
(MDR-12)
Low Medium Density
Residential
(LMDR-8)
Low Density Residential
(LDR-5)
Lower-Density
Residential
(LWDR-4)
Community
Commercial
(CC)
Central District
(CD)
Commercial/
Professional Office
(CPO)
Freeway Service
(FS)
Neighborhood
Commercial
(NC)
General Industrial
(GI)
Heavy Commercial/
Manufacturing
(HCM)
Light Industrial
(LI)
Airport - Airport Services
(A-AS)
Broadway Mixed Use
(BMU-70/35)
Main Street Mixed Use
(MMU-70/35)
Planned Annexation
(PA)
OPEN SPACESSTREETS
22 Specific Plan
(SP)
ALTERNATIVE: ANNEXATION
This map shows key areas of change in Alternative A: Annexation that distinguish this Alternative from the other two Alternatives.
The toolkit items shown on this slide apply to the Proposed Annexation (PA) land use, and illustrate potential open space and street concepts that can be implemented in the purple areas shown with this Alternative.
Parks
Trails
Landscape Strip
Plazas Curb Extensions
Street Trees
Gateways
Public Art
City Limits
Sphere of Influence
Annexation
Natural Open Space
23 ALTERNATIVE: CITY INFILL
This map shows key areas of change in Alternative B: City Infill that distinguish this Alternative from the other two Alternatives.
The toolkit items shown on this slide apply to the Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD-II), and Specific Plan (SP) land uses and illustrate potential open space and street concepts that can be implemented in the purple areas shown with this Alternative.
Parks
Food Truck Pods
Trails
Pocket Parks
Alleyway Activation
Sidewalk Widening
Landscape Strips
Plazas
Curb Extensions
Parklets
Street Trees
Furnishings
Gateways
Public Art
City Limits
Sphere of Influence
City Infill
Slow Streets
24 ALTERNATIVE: HYBRID
This map shows key areas of change in Alternative C: Hybrid that distinguish this alternative from the other two alternatives. The toolkit items shown on this slide apply to the Proposed Annexation (PA), Broadway Mixed Use (BMU-70/35), Main Street Mixed Use (MMU-70/35), Central District (CD), and Specific Plan (SP) land uses, and illustrate potential open space and street concepts that can be implemented in the purple areas shown with this Alternative.
Parks
Food Truck Pods
Trails
Pocket Parks
Slow Streets
Alleyway Activation
Sidewalk Widening
Landscape Strips
Plazas
Curb Extensions
Parklets
Street Trees
Furnishings
Gateways
Public Art
City Limits
Sphere of Influence
Hybrid
Natural Open Space
25 983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 1 MEMO
To: Raimi + Associates
From: Lisa Wise Consulting, Inc.
Date: February 13, 2023
Subject: City of Santa Maria General Plan Update: Fiscal Impact Analysis Memo
Introduction
This memo describes the key findings from Task 4.7 Fiscal Impact Analysis , which assesses estimated new revenues and expenditures to the Santa Maria General Fund based on three land use alternatives.
The alternatives were provided by Raimi + Associates and developed in collaboration with the City for the Santa Maria General Plan Update. Following the key findings, the memo also describes the assumptions and methodology used in the analysis.
General Plan Development Alternatives Overview
The fiscal impact analysis evaluates the proposed land use program for three different scenarios in the City of Santa Maria. The three alternatives provide options for different development intensities and allowed uses citywide . In this analysis , the maxim um potential buildout for each alternative is evaluated and assumed to occur by the year 2050. Although development trends in the next 30 years are unknown, the full “buildout” capacity of the alternatives is analyzed as a means of comparing the alternatives on a relative basis. The three alternatives include the following:
• Alternative A –Annexation: This alternative represents the continuation of the City’s existing pattern of growth within the City’s limits and the addition of 1,770 acres of annexed land. Alternative A has the largest amount of net new retail, office, and industrial space of the three alternatives (Figures 1-3).
• Alternative B–City Infill: This alternative plans for new residential and commercial development entirely within the existing Cit y limits. Alternative B has the greatest number of net new housing units of the three alternatives (Figure 4).
• Alternative C –Hybrid: This alternative would include future development within the C ity’s boundaries and on annexed land. Infill development is focused along Main Street and Broadway and on major opportunity sites, and a smaller amount of land would be annexed compared to Alternative A, about 720 acres.
A summary of the estimated total number of residents, jobs, housing units, and commercial square feet for alternatives is provided in Table 1.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 2
Table 1: Summary of General Plan Alternatives 2050 Buildout 2020 2050 Total Buildout 2020-2050 Net Change
Baseline Alternative A:
Annexation3
Alternative B:
Infill3
Alternative C:
Hybrid3
Alternative A:
Annexation
Alternative B:
Infill
Alternative C:
Hybrid
Residents 108,6001 142,680 144,420 141,480 34,080 35,820 32,880 Jobs 43,0501 65,540 59,680 66,800 22,490 16,630 23,750
Housing Units 28,2001 44,420 45,660 44,340 16,220 17,460 16,140 Single-Family - 31,538 32,419 31,481 11,516 12,397 11,459 Condominiums - 5,153 5,297 5,143 1,882 2,025 1,872
Apartments - 5,153 5,297 5,143 1,882 2,025 1,872
BMR Condominiums - 1,288 1,324 1,286 470 506 468
BMR Apartments - 1,288 1,324 1,286 470 506 468
Retail 13,038,3792 21,806,708 20,061,667 18,693,970 8,768,329 7,023,288 5,655,591 Office 11,391,6372 19,817,768 13,943,569 14,127,726 8,426,131 2,551,932 2,736,089 Industrial 83,903,5302 88,551,242 82,147,495 83,278,635 4,647,713 -1,756,034 -624,894
Other Land Use4 34,743,4562,4 37,072,578 33,324,271 35,706,820 2,329,122 -1,419,185 963,364 1 Existing (2020)
2 Capacity under the City of Santa Maria's current General Plan 3 Figures represent the maximum potential buildout under each alternative 4 Includes agricultural, conservational, and recreational open space and community facilities.
Source: Raimi + Associate, 2022.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 3 Figure 1: Alternatives Net New Retail 2050 Buildout
Source: Raimi + Associates, 2022.
Figure 2: Alternatives Net New Office 2050 Buildout
Source: Raimi + Associates, 2022.
8,768,329
7,023,288
5,655,591
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
10,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Square Feet
8,426,131
2,551,932 2,736,089
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
9,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Square Feet
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 4 Figure 3: Alternatives Net New Industrial 2050 Buildout
Source: Raimi + Associates, 2022.
Figure 4: Alternatives Net New Housing Units 2050 Buildout
Source: Raimi + Associates, 2022.
Alternative Phasing
In addition to assessing the fiscal impact of the alternatives at the 2050 full buildout, the analysis evaluates fiscal impacts in 5 -year increments through 2050, which enables reviewing fiscal impacts during various phases of development.
LWC worked with Raimi + Associates and City of Santa Maria Planning Department staff to evaluate each Alternative’s land use program and develop assumptions on phasing. The key phasing assumptions include the following:
• For all the alternatives, from 2020 to 2030, the rate of residential development is set to meet the 2031 RNHA obligation and the rate of residential development is assumed to continue at this same rate in the following years.
4,647,713
-1,756,034
-624,894
-3,000,000
-2,000,000
-1,000,000
0 1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Square Feet
16,220 17,460
16,140
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Housing Units
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 5 • The annexation and development of annexed land is expected to occur in the latter half of the 2020 to 2050 planning period, and commercial development is expected to increase with the annexation of land.
o Alternative A assumes a large amount of square feet from annexed land, and therefore commercial growth is relatively less intense in earlier years and greater in later years when the annexation is expected to occur.
o Alternative B assumes no annexation and therefore commercial development through infill could occur at any time and is assumed at a steady rate. o Alternative C assumes growth in commercial space occurs faster in the earlier years than in Alternative A due to growth from infill.
A summary of the estimated total number of residents, jobs, housing units, and commercial square feet for the alternatives in 5-year increments is provided in Table 2.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 6
Table 2: Summary of General Plan Alternatives Net Change in 5-Year Increments 2025 2030 2035
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,794 6,089 5,590 5,794 6,089 5,590 5,623 5,910 5,425 Jobs 1,125 2,661 2,375 1,125 2,661 2,375 1,125 2,827 2,375
Housing Units 2,757 2,968 2,744 2,757 2,968 2,744 2,676 2,881 2,663 Single-Family 1,958 2,107 1,948 1,958 2,107 1,948 1,900 2,045 1,891 Condominiums 320 344 318 320 344 318 310 334 309
Apartments 320 344 318 320 344 318 310 334 309
BMR Condominiums 80 86 80 80 86 80 78 84 77
BMR Apartments 80 86 80 80 86 80 78 84 77
Retail 438,416 1,123,726 565,559 438,416 1,123,726 565,559 438,416 1,193,959 565,559 Office 421,307 408,309 273,609 421,307 408,309 273,609 421,307 433,828 273,609 Industrial 232,386 -280,965 -62,489 232,386 -280,965 -62,489 232,386 -298,526 -62,489
Other Land Use1 116,456 -227,070 96,336 116,456 -227,070 96,336 116,456 -241,261 96,336 1 Includes agricultural, conservational, and recreational open space and community facilities.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 7 2040 2045 2050
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,623 5,910 5,425 5,623 5,910 5,425 5,623 5,910 5,425 Jobs 3,374 2,827 4,750 7,872 2,827 5,938 7,872 2,827 5,938
Housing Units 2,676 2,881 2,663 2,676 2,881 2,663 2,676 2,881 2,663 Single-Family 1,900 2,045 1,891 1,900 2,045 1,891 1,900 2,045 1,891 Condominiums 310 334 309 310 334 309 310 334 309
Apartments 310 334 309 310 334 309 310 334 309
BMR Condominiums 78 84 77 78 84 77 78 84 77
BMR Apartments 78 84 77 78 84 77 78 84 77
Retail 1,315,249 1,193,959 1,131,118 3,068,915 1,193,959 1,413,898 3,068,915 1,193,959 1,413,898 Office 1,263,920 433,828 547,218 2,949,146 433,828 684,022 2,949,146 433,828 684,022 Industrial 697,157 -298,526 -124,979 1,626,699 -298,526 -156,224 1,626,699 -298,526 -156,224
Other Land Use1 349,368 -241,261 192,673 815,193 -241,261 240,841 815,193 -241,261 240,841 1 Includes agricultural, conservational, and recreational open space and community facilities.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 8 Key Findings
Table 3 provides a summary of the net revenues and expenditures to the City of Santa Maria’s General Fund at full buildout in 2050 under each alternative. Impacts to the General Fund are described including and excluding Measure U.1
All three alternatives are estimated to have a positive fiscal impact on the City’s General Fund. At complete buildout in 2050, Alternative A is estimated to achieve the greatest gains in net revenue s, and Alternative B is estimated to achieve the next largest increases in net revenues, followed by Alternative C (Figure 5).
When Measure U is included in the fiscal impact calculations , each alternative is estimated to generate greater net revenues to the General Fund (Figure 6). Alternative A generates the highest net revenues of the three alternatives due to a larger amount of commercial space relative to the other alternatives (Figures 1-3). While Alternative B and C have a similar amount of total commercial space, Alternative B has a greater number of housing units, which increases revenues slightly above those of Alternative C (Figure 4).
Table 4 summarizes the net revenues and expenditures to the City of Santa Maria’s General Fund for each alternative in 5- year intervals. All three alternatives are estimated to have a positive fiscal impact on the City’s General Fund during each 5- year period from 2020 to 2050. From 202 5 to 2035, Alternative B is estimated to achieve the greatest increases in net revenues and Alternative A is estimated to achieve the next highest net revenues. From 2040 to 2050, Alternative A is estimated to surpass Alternative B in net revenues.
Table 3: General Fund Fiscal Impact Summary 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Revenues $53,555,559 $44,515,708 $41,298,029
Expenditures $19,603,412 $19,594,769 $19,208,722
Net Impact $33,952,148 $24,920,939 $22,089,307
Net Impact as % of Revenues 63% 56% 53%
Revenues with Measure U $64,182,745 $53,714,751 $49,328,151 Expenditures with Measure U $24,953,831 $24,942,830 $24,451,418 Net Impact $39,228,914 $28,771,922 $24,876,734
Net Impact as % of Revenues 61% 54% 50%
1 Measure U is a one-cent sales tax that primarily funds operations also supported by the General Fund such as police and fire, recreation and parks, libraries.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 9 Figure 5: General Fund Revenues and Expenditures
Figure 6: General Fund Revenues and Expenditures with Measure U
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Nominal Dollars
Revenues Expenditures
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Nominal Dollars
Revenues Expenditures
Revenues with Measure U Expenditures with Measure U
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 10 Table 4: General Fund Fiscal Impact Summary 5-Year Increments 2025 2030 2035 2040 2045 2050
Alternative A: Annexation
Revenues $6,147,555 $6,322,718 $6,001,777 $8,559,123 $13,148,328 $13,323,490 Expenditures $2,943,825 $2,943,825 $2,862,006 $3,185,969 $3,833,894 $3,833,894 Net Impact $3,203,730 $3,378,893 $3,139,771 $5,373,154 $9,314,434 $9,489,596 Net Impact as % of Revenues 52% 53% 52% 63% 71% 71%
Revenues with Measure U $7,026,428 $7,201,590 $6,866,170 $10,196,640 $16,332,093 $16,507,255 Expenditures with Measure U $3,747,292 $3,747,292 $3,643,142 $4,055,525 $4,880,290 $4,880,290 Net Impact $3,279,136 $3,454,298 $3,223,028 $6,141,115 $11,451,803 $11,626,965 Net Impact as % of Revenues 47% 48% 47% 60% 70% 70%
Alternative B: City Infill
Revenues $7,341,965 $7,517,127 $7,313,431 $7,488,593 $7,313,431 $7,488,593 Expenditures $3,307,156 $3,307,156 $3,245,114 $3,245,114 $3,245,114 $3,245,114 Net Impact $4,034,809 $4,209,972 $4,068,316 $4,243,479 $4,068,316 $4,243,479 Net Impact as % of Revenues 55% 56% 56% 57% 56% 57%
Revenues with Measure U $8,844,250 $9,019,412 $8,862,049 $9,037,212 $8,862,049 $9,037,212 Expenditures with Measure U $4,209,788 $4,209,788 $4,130,813 $4,130,813 $4,130,813 $4,130,813 Net Impact $4,634,462 $4,809,624 $4,731,236 $4,906,398 $4,731,236 $4,906,398 Net Impact as % of Revenues 52% 53% 53% 54% 53% 54%
Alternative C: Hybrid
Revenues $6,086,923 $6,262,085 $5,942,999 $7,311,694 $7,733,298 $7,908,461 Expenditures $3,026,004 $3,026,004 $2,947,066 $3,289,178 $3,460,235 $3,460,235 Net Impact $3,060,919 $3,236,081 $2,995,934 $4,022,516 $4,273,063 $4,448,226 Net Impact as % of Revenues 50% 52% 50% 55% 55% 56%
Revenues with Measure U $7,085,513 $7,260,676 $6,927,620 $8,819,930 $9,503,341 $9,678,503 Expenditures with Measure U $3,851,900 $3,851,900 $3,751,418 $4,186,904 $4,404,647 $4,404,647 Net Impact $3,233,613 $3,408,775 $3,176,202 $4,633,026 $5,098,693 $5,273,856 Net Impact as % of Revenues 46% 47% 46% 53% 54% 54%
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 11 Methodology
This section describes the assumptions and methodology used in the analysis. Additional tables supporting the analysis can also be found in the Appendix.
Fiscal Impact Analysis Overview
A fiscal impact analysis measure s the impact of potential new development on a municipal budget. New residential and commercial development bring new residents and businesses to a city, which increases the need for more city services while also generat ing additional taxes and other revenues for the city . A development program has a positive fiscal impact on a city’s budget when the associated new development generates more revenue for the city than the cost of additional city services needed to support it . A development program that generates more services costs than revenues is considered to have a negative fiscal impact.
This fiscal impact analysis estimates the increased revenues and service costs to the City of Santa Maria’s General Fund on an annual basis that result from net new development at full buildout in 2050 and in five- year increment s over about 3 0 years (2020 to 2050) . The analysis does not include expenditures or revenues associated with other funds outside the General Fund except for Measure U. 1 Additionally, the analysis focuses on city service costs related to ongoing operations and maintenance and does not include capital costs for new infrastructure or facilities.
City of Santa Maria General Fund
The General Fund is the City’s primary source for funding and ongoing revenues and expenditures applicable to the general operations of the city government, which are not properly accounted for in another fund. These are activities and services traditionally associated with governments, such as police and fire, recreation and parks, and a city administration that is financed primarily through tax-generated revenues.
The fiscal impact analysis relies on the City’s 2020 -2021 General Plan Budget Actuals, which reflect the recorded revenues and expenditures that occurred and do not represent estimated budget projections.
Table 5 shows the revenues by source to the City’s General Fund, and Table 6 shows the expenditures to the General Fund by source.
1 Measure U is a one-cent sales tax that primarily funds operations also supported by the General Fund such as police and fire, recreation and parks, libraries.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 12 Table 5: City of Santa Maria General Fund Budget Actuals Revenues (FY 2020-21) Source Revenues
Property Tax $12,546,615
Property Tax in Lieu of VLF $9,746,972
Sales and Use Tax $27,389,316
Transient Occupancy Tax $3,213,990
Franchise Fees $4,683,115
Business Licenses $659,964
Property Transfer $352,611
Licenses, Permits & Fines $3,374,512
Revenue from Use of Money & Property $147,917
Revenues from Other Agencies $1,197,025
Charges for Current Services $5,897,018
Other Revenue1 $446,468
Transfers In $2,343,387
Cost Allocation Transfers $2,406,651
Total Revenues $74,405,561
Measure U Revenues $22,751,964
Total Revenues (with Measure U) $97,157,525
1Includes the following sources: Prior Year & Damage Recover, Sales of Property, Sale of Maps, Plans & Others, Other Miscellaneous Revenue
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 13 Table 6: City of Santa Maria General Fund Budget Actuals Expenditures (FY 2020-21) Source Expenditures
General Government
Mayor & Council $169,773
City Attorney $1,213,032
City Manager $6,472,790
Finance $9,730,595
Community Development $3,978,834
Recreation & Parks $8,728,872
Police $28,431,813
Fire $11,201,739
Public Works $2,913,642
Total Expenditures $72,841,090
Measure U Expenditures
Police $8,626,919
Fire $7,140,520
Recreation & Parks $1,774,476
Library $471,290
Community Development $314,509
City Manager $27,601
Finance $108,719
Total Measure U Expenditures $18,464,034
Total Expenditures (with Measure U) $91,305,124
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 14 Service Population
The analysis uses per capita revenue and expenditure estimates , which are based on the current and projected future service population. The service population includes the total resident population and those who work within the City’s boundaries. Employees in Santa Maria are assumed to generate l ess demand for city services compared to residents, and the service population calculation estimates the impacts of workers in Santa Maria to be 30 percent of residents. Table 7 shows the current service population estimate.
Table 8 shows the net service population for the three alternatives at buildout in 2050. Table 9 shows the net service population in 5-year increments until 2050.
Table 7: 2020 Service Population
2020
Baseline
Residents 108,600
Employees
Total Jobs 43,050
Employee Factor 30%
Employee Estimate 12,915
Service Population 121,515
Table 8: Net New Service Population 2050 Buildout
Alternative A:
Annexation
Alternative B:
City Infill
Alternative C:
Hybrid
Residents 34,080 35,820 32,880
Employees
Total Jobs 22,490 16,630 23,750
Employee Factor 30% 30% 30%
Employee Estimate 6,747 4,989 7,125
Net New Service Population 40,827 40,809 40,005
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 15 Table 9: Net New Service Population 5-Year Increments
2025 2030 2035
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,794 6,089 5,590 5,794 6,089 5,590 5,623 5,910 5,425 Employees 1,125 2,661 2,375 1,125 2,661 2,375 1,125 2,827 2,375 Total Jobs
Employee Factor 30% 30% 30% 30% 30% 30% 30% 30% 30%
Employee Estimate 337 798 713 337 798 713 337 848 713
Net New Service
Population 6,131 6,888 6,302 6,131 6,888 6,302 5,961 6,758 6,138
2040 2045 2050
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Alternative A:
Annexation
Alternative
B: Infill
Alternative
C: Hybrid
Residents 5,623 5,910 5,425 5,623 5,910 5,425 5,623 5,910 5,425 Employees 3,374 2,827 4,750 7,872 2,827 5,938 7,872 2,827 5,938 Total Jobs
Employee Factor 30% 30% 30% 30% 30% 30% 30% 30% 30%
Employee Estimate 1,012 848 1,425 2,361 848 1,781 2,361 848 1,781
Net New Service
Population 6,635 6,758 6,850 7,985 6,758 7,206 7,985 6,758 7,206 …
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 16 Assessed Property Value
In the analysis, property value estimates were created to calculate future property tax revenue estimates.
Table 10 shows the assumptions used for estimating assessed property values. Estimated values for apartment units and retail, office, and industrial square footage were created using a capitalized rent value approach, the key assumptions of which are shown in Table 11. Estimates for the assessed property value of net new residential units and commercial square feet are shown in Table 12 and Table 13.
Table 10: Assessed Property Value Assumptions
Estimated Value
Residential
Single Family (3BD) $760,000 per unit
Condominiums (2BD) $512,000 per unit
Apartments (2BD)1 $502,330 per unit
BMR Condominiums (2BD)2 $402,179 per unit
BMR Apartments (2BD) 2 $335,894 per unit
Commercial
Retail $301 per SF
Office $496 per SF
Industrial $203 per SF
1 Based on an average apartment size of 950
2 Assumes units are made affordable to low-income households (80% AMI), see Santa Maria 6th Cycle Housing Element
Source: Santa Maria 6th Cycle Housing Element; NAR Commercial Real Estate Metro Market Report, Santa Maria-Santa Barbara, 2021 Q2; Redfin 2022; Zillow, 2022; Loopnet, 2022.
983 Osos Street, San Luis Obispo, CA 93401 | (805) 595 1345 | lisawiseconsulting.com | 17 Table 11: Capitalized Rent Values
Annual Rent
per SF
Capitalization
Rate Vacancy Operating
Expenses
Capitalized
Value per SF
Apartments (2BD) $37.80 4.50% 4.6% 32.5% $529
BMR Apartments (2BD) $25.28 4.50% 4.6% 32.5% $354
Commercial
Retail $27.00 7.30% 6.2% 12.5% $301
Office $27.00 4.50% 4.9% 12.5% $496
Industrial $15.00 6.20% 3.8% 12.5% $203
Source: Santa Maria 6th Cycle Housing Element; NAR Commercial Real Estate Metro Market Report, Santa Maria-Santa Barbara, 2021 Q2; Redfin 2022; Zillow, 2022; Loopnet, 2022.