Report to Mayor and City Council
Tuesday, September 04, 2018
Special Orders of the Day
SUBJECT:
Title
CONTINUED PUBLIC HEARING EVALUATING THE FEASIBILITY OF ENTERING INTO AN ENERGY SERVICE CONTRACT WITH CARSON SOLAR 10, LLC (CITY COUNCIL)
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I. SUMMARY
The matter was continued from the August 21, 2018 Council meeting.
Following the August 21, 2018 City Council meeting, staff was in communication with Charge Bliss, Inc. (Charge Bliss) and 127 Energy representatives to continue sharing information about the project and negotiating the Power Purchase Agreement (PPA). However, on August 30, 2018, staff was informed that 127 Energy was withdrawing their PPA offer.
The project, as proposed by Charge Bliss required the infusion of approximately $5 million by an outside investor. Consequently, after 127 Energy's withdrawal, City staff asked Charge Bliss to revise the scope of the project and offered to provide the necessary match dollars to support an application package that reduced the cost of the project from $19.4 million to approximately $15.5 million; however, Charge Bliss declined to move forward with the City's revised proposal.
Per the California Energy Commission guidelines for The EPIC Challenge: Accelerating the Deployment of Advanced Energy Communities, Phase II (GFO-15-312), the City cannot apply for the grant funds without a letter of support from Charge Bliss. Therefore, the grant application cannot go forward.
II. RECOMMENDATION
Recommendation
1. CANCEL the Public Hearing
2. RECEIVE and FILE staff report.
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III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The City was approached by the South Bay Cities Council of Governments with the opportunity to participate as a host site for a two-phased grant through the California Energy Commission (CEC) that would assist the City in developing solar power, battery storage, electrical vehicle charging stations and energy conservation projects ...
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