Resolution No. 2024-__ June 12, 2024
RESOLUTION NO. 2024-__
A RESOLUTION OF THE WILLITS CITY COUNCIL AUTHORIZING CITY MANAGER TO
EXECUTE AN ENERGY SERVICES AGREEMENT WITH SYSERCO ENERGY SOLUTIONS (SES) FOR THE COMPLETION OF DESIGN AND INSTALLATION OF SOLAR PV, CONSISTENT WITH GOVT CODE §§4217.10-4217.18, FOR AN AMOUNT NOT TO EXCEED $2,822,400,
WHEREAS, City staff has pursued energy-saving solar PV projects to reduce operating costs, generate electricity locally, and improve infrastructure at various facilities; and WHEREAS, the California Public Utilities Commission (CPUC) unanimously voted to approve the transition of its tariffed Net Energy Metering (NEM) program from NEM 2.0 to NEM
3.0., which detrimentally alters the way solar system owners are compensated for the energy they generate and provide to the utility grid; and
WHEREAS, City Staff issued an RFP for Energy Services including onsite solar PV system design, engineering, and build, and selected Syserco Energy Solutions as the most qualified respondent; and
WHEREAS, Syserco Energy Solutions, an energy solutions company specializing in energy efficiency and solar PV, performed an analysis to identify all viable site locations where solar PV installed under NEM 2.0 will provide the greatest financial value to the City; and WHEREAS, Syserco Energy Solutions completed preliminary solar PV designs for each of two (2) City-owned site locations (the Project), and worked with staff to successfully submit Interconnection Applications to PG&E to preserve NEM 2.0 status for at least (20) years; and WHEREAS, it is understood by the City that a pending deadline exists that requires all future solar PV systems to be designed, installed, and connected to the utility grid by April 15, 2026 in order to qualify for participation in NEM 2.0; and WHEREAS, it is understood by the City that if an Energy Services Agreement is approved and executed prior to June 27, 2024, then the City is eligible to apply for an additional 10% lowincome bonus incentive with an estimated value of over $470,400 under the federal Inflation Reduction Act (IRA), which is in addition to a 30% cash incentive also available to the City under the IRA for the Project; and
WHEREAS, City staff is also exploring the potential benefits that the facility could provide for low-income households, in addition to the benefits that the city will realize; following execution of the Syserco agreement, an application to receive the additional 10% low-income bonus incentive may be submitted; and
WHEREAS, it is understood by the City that if an Energy Services Agreement is approved and executed the City Manager will be authorized to review and execute contract change orders in value of up to 5% of the total Energy Services Agreement; and WHEREAS, it is understood that the proposal meets the City’s goal to finance the solar PV systems (total cost is $4,704,000.00) using approximately $2,822,400.00 of funding allocated from the City’s Capital Improvement Plan for the Wastewater Treatment Plant, additional financing needed ($1,881,600) will be sourced through the Inflation Reduction Act (IRA) tax
Resolution No. 2024-__ June 12, 2024
incentive program provided by the Internal Revenue Service (IRS), and the Capital Improvement Plan funding was identified and allocated through an increase in the rate payments for wastewater services; and
WHEREAS, in accordance with California Government Code Sections 4217.10-4217.18, renewable energy and energy efficiency projects may be sole-sourced or procured through either formal or informal procurement if the City Council is able to make findings at a regular meeting, following a public hearing, that the cost of the proposed project will be less than the anticipated cost of energy that would have been consumed by the City if the project is not completed (i.e., the energy cost savings exceed the project cost); and WHEREAS, based on all the evidence presented, the City Council finds as follows:
1. This project is a positive step in the reduction of greenhouse gas and operating costs at various facilities owned and operated by the City.
2. It has been determined during the Project development phase that, the cost of the proposed Project will be less than the anticipated cost of energy that would have been consumed by the City if the project is not completed in accordance with Government Code §§4217.10- 4217.18.
3. The project will result in positive annual cash flow and significant net savings to the City, over the useful life of the equipment being installed.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Willits does hereby authorize the City Manager to execute the Energy Services Agreement, AYES:
NOES:
ABSENT:
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SAPRINA RODRIGUEZ, Mayor
City Council of the City of Willits
ATTEST:
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DELORES PEDERSEN, City Clerk