REPORT TO THE CITY COUNCIL
June 25, 2020
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
BY: CHERYL BURNS, Management Analyst II
Department of Public Utilities - Administration
SUBJECT
Title
Actions pertaining to solar and energy storage projects proposed at the Fresno-Clovis Regional Wastewater Reclamation Facility, Northeast Surface Water Treatment Plant, and Southeast Surface Water Treatment Plant (Council Districts 3, 6, 4):
1. Adopt the following environmental documents prepared pursuant to the requirements of the California Environmental Quality Act (CEQA):
a. Adopt the Addendum to Mitigated Negative Declaration SCH No. 2012061089, dated June 16, 2020, prepared for the Fresno-Clovis Regional Wastewater Reclamation Facility Solar Power Project pursuant to CEQA Guidelines Sections 15162 and 15164;
b. Adopt the Addendum to Mitigated Negative Declaration SCH No. 2015081062, dated June 16, 2020, prepared for the Southeast Surface Water Treatment Facility Solar Power Project pursuant to CEQA Guidelines Sections 15162 and 15164;
c. Adopt the Addendum to Mitigated Negative Declaration SCH No. 2017041061, dated June 16, 2020, prepared for Northeast Surface Water Treatment Facility Solar Power Project pursuant to CEQA Guidelines Sections 15162 and 15164;
2. Approve the award of a cooperative purchase Energy Services Agreement-Solar with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 17,053.7 kW (DC) (estimated) solar photovoltaic system at the Fresno-Clovis Regional Wastewater Reclamation Facility and the purchase of energy generated by the system;
3. Approve the award of a cooperative purchase Energy Services Agreement-Energy Storage with FFP BTM SOLAR, LLC, for the design, financing, construction, installation, operation, and maintenance of a 2,500 kW, 4960 kWh (estimated) energy storage system at Fresno-Clovis Regional Wastewater Reclamation Facility to obtain energy demand reductions;
4. Approve the award of a cooperative purchase Energy Services Agreement-Solar with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 1,401.57 kW (DC) (estimated) solar photovoltaic system at the Northeast Surface Water Treatment Facility and the purchase of energy generated by the system;
5. Approve the award of a cooperative purchase Energy Services Agreement-Energy Storage with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 1,000 kW / 1,984 kWh (estimated) energy storage system at the Northeast Surface Water Treatment Facility to obtain energy demand reductions;
6. Approve the award of a cooperative purchase Energy Services Agreement-Solar with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 1,738.3 kW (DC) (estimated) solar photovoltaic system at the Southeast Surface Water Treatment Facility and the purchase of energy generated by the system;
7. Approve the award of a cooperative purchase Energy Services Agreement-Energy Storage with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 2,000 kW / 3,968 kWh (estimated) energy storage system at the Southeast Surface Water Treatment Facility to obtain energy demand reductions;
8. Authorize the Director of Public Utilities or designee to execute the Energy Services Agreements and associated General Terms and Conditions on behalf of the City of Fresno;
9. Authorize the Director of Public Utilities or designee to execute any subsequent documents, instruments, estoppel and acknowledgement certificates, etc. related to FFP BTM Solar, LLC.’s financing of the solar and energy storage systems;
10. Authorize the Director of Public Utilities or designee to approve any changes to the Power Purchase Agreement rates and energy storage system size, up to the maximum amount authorized in the agreements;
11. Authorize the Director of Public Utilities or designee to execute any Pacific Gas & Electric (PG&E) Interconnection Agreement required for the proposed systems.
Body
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt the following environmental documents prepared pursuant to the requirements of the California Environmental Quality Act (CEQA):
a. Adopt the Addendum to Mitigated Negative Declaration SCH No. 2012061089, dated June 16, 2020, prepared for the Fresno-Clovis Regional Wastewater Reclamation Facility Solar Power Project pursuant to CEQA Guidelines Sections 15162 and 15164;
b. Adopt the Addendum to Mitigated Negative Declaration SCH No. 2015081062, dated June 16, 2020, prepared for the Southeast Surface Water Treatment Facility Solar Power Project pursuant to CEQA Guidelines Sections 15162 and 15164;
c. Adopt the Addendum to Mitigated Negative Declaration SCH No. 2017041061, dated June 16, 2020, prepared for Northeast Surface Water Treatment Facility Solar Power Project pursuant to CEQA Guidelines Sections 15162 and 15164;
2. Approve the award of a cooperative purchase Energy Services Agreement-Solar with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 17,053.7 kW (DC) (estimated) solar photovoltaic system at the Fresno-Clovis Regional Wastewater Reclamation Facility and the purchase of energy generated by the system;
3. Approve the award of a cooperative purchase Energy Services Agreement-Energy Storage with FFP BTM SOLAR, LLC, for the design, financing, construction, installation, operation, and maintenance of a 2,500 kW, 4960 kWh (estimated) energy storage system at Fresno-Clovis Regional Wastewater Reclamation Facility to obtain energy demand reductions;
4. Approve the award of a cooperative purchase Energy Services Agreement-Solar with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 1,401.57 kW (DC) (estimated) solar photovoltaic system at the Northeast Surface Water Treatment Facility and the purchase of energy generated by the system;
5. Approve the award of a cooperative purchase Energy Services Agreement-Energy Storage with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 1,000 kW / 1,984 kWh (estimated) energy storage system at the Northeast Surface Water Treatment Facility to obtain energy demand reductions;
6. Approve the award of a cooperative purchase Energy Services Agreement-Solar with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 1,738.3 kW (DC) (estimated) solar photovoltaic system at the Southeast Surface Water Treatment Facility and the purchase of energy generated by the system;
7. Approve the award of a cooperative purchase Energy Services Agreement-Energy Storage with FFP BTM Solar, LLC, for the design, financing, construction, installation, operation, and maintenance of a 2,000 kW / 3,968 kWh (estimated) energy storage system at the Southeast Surface Water Treatment Facility to obtain energy demand reductions;
8. Authorize the Director of Public Utilities or designee to execute the Energy Services Agreements and associated General Terms and Conditions on behalf of the City of Fresno;
9. Authorize the Director of Public Utilities or designee to execute any subsequent documents, instruments, estoppel and acknowledgement certificates, etc. related to FFP BTM Solar, LLC.’s financing of the solar and energy storage systems;
10. Authorize the Director of Public Utilities or designee to approve any changes to the Power Purchase Agreement rates and energy storage system size, up to the maximum amount authorized in the agreements;
11. Authorize the Director of Public Utilities or designee to execute any Pacific Gas & Electric (PG&E) Interconnection Agreement required for the proposed systems.
EXECUTIVE SUMMARY
The proposed Department of Public Utilities (DPU) Solar Power Project encompasses the construction of Solar Photovoltaic (PV) Systems and Energy Storage (Battery) Systems at three DPU facilities:
1. Fresno-Clovis Regional Wastewater Treatment Facility (RWRF),
2. Northeast Surface Water Treatment Facility (NESWTF), and
3. Southeast Surface Water Treatment Facility (SESWTF).
The proposed project will include a total capacity of 20,194 kW of solar generation across the three project sites, resulting in a 64% total energy offset, which provides over $2.6 million in first year utility bill savings, and over $100 million over the life of the 20-year agreement. Additionally, we are fortunate that FFP BTM SOLAR, LLC (ForeFront Power) typically hires 50% local for their construction projects and has previously demonstrated this with their recent Fresno area projects. In addition to targeting the same desired goal for this project, this agreement includes a commitment to hire at least 30% of all hours for construction be of targeted workers from disadvantaged communities in the City of Fresno and Greater Fresno Area.
The School Project for Utility Rate Reduction (SPURR), a joint powers authority, offers the Renewable Energy Aggregated Procurement (REAP) Program, an aggregated solar procurement program that leverages the collective purchasing power of SPURR’s large membership to secure transparent, pre-negotiated solar project pricing and terms to be made available to SPURR members and other Eligible Entities. The City of Fresno (City), as an Eligible Entity, has the opportunity to piggyback on SPURR’s competitively-bid Request for Proposal (RFP) to procure solar energy. The City has worked with ForeFront Power, which was awarded the REAP Program’s Master Contract, to propose Power Purchase Agreement (PPA) rates for the three facilities. Included in the PPA rate calculations are all costs to design, finance, construct, implement, operate, and maintain the Solar PV Systems and Energy Storage Systems at the DPU facilities. Since all costs are built into the PPA rates, there are no upfront costs to the City. The PPA includes a 0% escalator, so rates will remain the same for the entire twenty (20) years of the agreement. The total savings to the City for the duration of the agreement is estimated at $100,639,535. The proposal also includes system operations and maintenance for the life of the agreement to support an annual performance guarantee of 95%.
BACKGROUND
Our local energy utility, PG&E, will soon be changing the “time of use” (TOU) hours and rates, which will significantly impact the energy costs at DPU treatment facilities, including the RWRF, NESWTF, and SESWTF. As a result, DPU has been exploring opportunities to offset energy costs through alternative energy sources and efficiencies.
DPU, in conjunction with the Sustainability Division of the Public Works Department, has extensively researched and reviewed SPURR, a California-based joint powers authority of over 200 public agencies, which operates a variety of cooperative procurement programs that include electricity, renewable energy, and storage as well as energy demand response.
One of SPURR’s programs, the REAP Program, is an innovative aggregated solar procurement program established in 2014 that leverages the collective purchasing power of SPURR’s large membership to secure transparent, pre-negotiated solar project pricing and terms to be made available to SPURR members and other Eligible Entities. The REAP program allows members and Eligible Entities to piggyback on SPURR’s competitively-bid RFP to procure solar energy and battery storage. The City, as a public agency, is an Eligible Entity and is, therefore, able to participate in the REAP program.
REAP Program and the RFP Process
On July 19, 2017, SPURR issued a RFP seeking responsive proposals for solar energy and energy storage services. In addition to announcing the RFP online and in newspapers of general circulation, SPURR emailed the RFP to over 70 vendors and industry consultants statewide.
SPURR received eight responses to the RFP and evaluated all responses which complied with the terms of the RFP, using criteria set forth in the RFP. SPURR used best value criteria, including but not limited to quality of the submitted proposals, proposed pricing (the most heavily weighted criteria), services design and features, vendor’s experience with similar projects, team member qualifications, capability to provide quality, ongoing service to a potentially large pool of REAP Program participants over several years, financial strength, and references.
SPURR awarded the bid to ForeFront Power, a wholly-owned subsidiary of Mitsui & Co. The pricing and terms accepted by SPURR have been confirmed in the REAP Master Contract dated October 26, 2017 (RMC). An Amended and Restated RMC dated September 15, 2019, replaced the previous RMC, resulted in even lower available pricing for public agencies, and remains in effect.
The RMC is available for use as a cooperative procurement vehicle by public agencies who wish to streamline the procurement process, take advantage of excellent pricing achieved through a highly competitive statewide solicitation, and enter into a fully vetted contract with favorable project terms and conditions that result in reduced project risk. The REAP Program is a safe and proven procurement vehicle that has already been vetted and used by 38 public agencies across the state.
Utilizing the REAP Program will result in significant cost savings to the City over the life of the project and include favorable contract terms and conditions such as an annual performance guarantee, a fixed 20-year PPA rate, lifetime system operations and maintenance, City ownership of all project environmental attributes, and no money out-of-pocket from the City. We believe the pricing and terms secured through the REAP Program are the best available in the marketplace and will allow the City to save time and money by not having to duplicate efforts, and benefit from a large-scale buying power.
The Purchasing Manager and City Controller have both concurred with DPU and the Sustainability Division that the REAP Program is an advantageous and viable procurement option for the proposed DPU Solar Project.
Fresno Metropolitan Area REAP Participants
Fresno Unified School District (FUSD) acted as the “Cooperating Agency” in the RFP process. FUSD, as the Cooperating Agency, worked with SPURR to develop the RFP scope of work, assisted with vendor site walks, and participated in the scoring of proposals and the selection of the vendor. FUSD is also a participant in the REAP Program.
In addition to FUSD, a number of other public agencies in the Fresno Metropolitan Area have entered into agreements for solar projects with ForeFront Power under the REAP Program, including Fresno County, Clovis Unified School District, Central Unified School District, CART, and State Center Community College District.
Additional municipal agencies reporting successful projects with SPURR include the Cities of Paso Robles, San Luis Obispo, and San Diego.
DPU Solar Power Project Overview
The proposed DPU Solar Power Project encompasses the construction of Solar PV Systems and Energy Storage Systems at three DPU facilities:
1. RWRF
2. NESWTF
3. SESWTF
The proposed DPU Solar Power Project will include a total capacity of 20,194 kW of solar generation across the three project sites, resulting in a 64% total energy offset. Ground mount systems, as proposed for this project, provide the benefit of higher production of energy at lower costs, thereby resulting in greater savings than other type of solar systems.
The proposed DPU Solar Power Project also includes a total of 5,500 kW of energy storage across the three sites. The RWRF is proposed to have an energy storage capacity of 2,500 kW, the NESWTF is proposed to have a 1,000 kW energy storage capacity, and the SESWTF is proposed to have a 2,000 kW energy storage capacity.
ForeFront Power has submitted an application on behalf of the City for the Self-Generation Incentive Program (SGIP) through PG&E for the energy storage component at the RWRF. There were an overwhelming number of applications for the program resulting in a lottery selection process. The City’s application is currently on a waiting list at PG&E for the incentive request. The current proposal and agreement do not include the incentive. If the request is approved, the project could potentially benefit further.
Under the three recommended Energy Services Agreements (ESA)-Solar, ForeFront Power would finance, design, construct, implement, operate, and maintain the Solar PV Systems, from which the City would receive and purchase energy from ForeFront Power at specified, pre-negotiated PPA rates.
Under the recommended ESAs-Energy Storage, ForeFront Power’s proposed energy storage systems would reduce the City’s peak electrical demand from PG&E by electrically charging the system during off-peak hours and dispatching stored electric energy to the facilities during peak hours.
All of the recommended ESAs share the same General Terms and Conditions (Attachment 2). The General Terms and Conditions, in their entirety, are incorporated into the ESAs.
PPA Rates
Included in the rate calculations are all costs to finance, design, construct, implement, operate, and maintain the Solar PV Systems and Energy Storage Systems. Since all costs are built into the PPA rates, there are no upfront costs to the City. Therefore, the City will be able to realize savings in the first year of operation. The PPA includes a 0% escalator, so rates will remain the same for the entire twenty (20) years of the agreement, while PG&E rates are most certainly expected to continue to rise.
Under the recommended ESA-Solar, ForeFront Power would provide electrical energy to DPU at the final negotiated blended PPA rate of $0.0632. Site specific PPA rates are shown below:
1. RWRF: $0.0599/kWh
2. NESWTF: $0.0826/kWh
3. SESWTF: $0.0809/kWh
The City’s first year savings is estimated at $2,698,417, while the total savings to the City for the duration of the agreement is conservatively estimated at $100,639,535.
There are several situations in which the negotiated PPA rates may be increased, up to a maximum pre-negotiated rate. Should PG&E require distribution upgrades to interconnect the solar systems to the PG&E power grid, the City will be required to bear all upgrade costs. Additionally, if changes in the scope of the project occur, such as adverse geotechnical conditions, the inclusion of spare conduit, or ADA compliance requirements not related to the solar system, the City will be responsible for the associated costs.
Should any or all of these unexpected costs arise, the City could choose to:
1. Bear the cost of the distribution upgrades or reasonably documented scope change. Under this option, the PPA rates will remain unchanged, or
2. Incorporate such associated costs into the PPA rates, with a maximum increase for each type of cost. The maximum (cap) negotiated PPA rate for each facility is outlined below:
a. RWRF: $0.0855/kWh
b. NESWTF: $0.1304/kWh
c. SESWTF: $0.1214/kWh
Even if the PPA rates are increased to the maximum negotiated rate, the PPA rates will remain well below the anticipated PG&E utility rates and the project will still offer the City significant savings over the course of 20 years. The City’s first year savings at the maximum negotiated PPA rate is estimated at $1,536,824, while the total savings to the City for the duration of the agreement at the maximum negotiated PPA rate is conservatively estimated at $78,478,119.
The installation of Solar PV Systems and Energy Storage Systems at DPU facilities will help to reduce overall energy costs for each facility. The negotiated PPA rates, even at the maximum, are significantly lower than any rates available to the City through PG&E, and the Energy Storage Systems will allow the systems to store energy during the day and draw from the stored energy during the peak hours of 4:00 PM to 9:00 PM, when PG&E rates are highest.
Solar PV System Sizes and Energy Offsets
The proposed Solar PV System sizes and energy offsets at each facility are outlined below:
1. RWRF
a. Solar PV System Size: 17,053 kW
b. Energy Storage System Size: 2,500 kW
c. Energy Offset: 75%
2. NESWTF
a. Solar PV System Size: 1,401 kW
b. Energy Storage System Size: 1,000 kW
c. Energy Offset: 45%
3. SESWTF
a. Solar PV System Size: 1,738 KW
b. Energy Storage System Size: 2,000 kW
c. Energy Offset: 30%
DPU made the decision to limit the RWRF Solar PV System to a 75% energy offset in anticipation of energy reductions from more efficient processes at the facility and/or the integration of additional alternative energy projects. It is important to avoid oversizing the system so that it does not overproduce beyond the RWRF facility’s energy needs or beyond the acceptable 110% limit.
The size of the projects at the SWTFs is limited by the space available to install the ground-mount solar panels. The energy offset at these facilities is therefore notably lower than at the RWRF. However, the facilities will still fortunately see significant energy cost savings.
PG&E will continue to provide electricity to the project sites for any consumption that is not covered by the Solar PV System. Energy Storage Systems are included in the project design to help offset the City’s need to purchase energy from PG&E during the peak “Time of Use” hours of 4:00 PM to 9:00 PM. The City will be able to draw-down energy from the Energy Storage Systems at a significantly lower cost than the peak PG&E rates, thereby maximizing the City’s energy cost savings, and minimizing or eliminating the need to purchase energy from PG&E during peak hours.
Performance Guarantee
As a result of a 95% performance guarantee, ForeFront Power will remain motivated to ensure the proper functioning of the system. To avoid owing the City a credit under this guarantee, they will test or arrange for meter inspection and testing bi-annually when performing system operations and maintenance.
Additional Information
City Attorney has reviewed all agreements and approved to form.
ENVIRONMENTAL FINDINGS
Fresno-Clovis Regional Wastewater Reclamation Facility Solar Power Project
An Initial Study and Mitigated Negative Declaration (SCH No. 2012061089) dated February 14, 2014 was adopted for CUP No. C-12-113. C-12-113 contemplated several actions related to construction and operation of a tertiary treatment and disinfection system at the RWRF, which included installation of solar panels, transmission lines, and an electrical building on the western side of the facility. The Regional Wastewater Reclamation Facility Solar Power Project revises the previous solar project proposal by relocating the proposed site of the solar system and materials to the eastern side of the facility. Because some revisions to the project are necessary, an analysis was performed pursuant to CEQA Guidelines Section 15162 to determine whether subsequent environmental review is required. Based upon this analysis, the following findings are made to support the determination that an addendum prepared pursuant to CEQA Guidelines Section 15164 is appropriate:
1. No substantial changes are proposed in the project which will require major revisions of the MND due to the involvement of new significant effects or a substantial increase in the severity of previously identified significant effects. In this case the location of the solar system has been changed but this change has not generated new significant effects or an increase in the severity of previously identified significant effects.
2. No substantial changes have occurred with respect to the circumstances under which the project was undertaken which will require major revision of the previous MND due to the involvement of new significant environmental effect or a substantial increase in the severity of previously identified significant effects. In this case, both a new development code and General Plan have been adopted since approval of the prior MND. However, because of the nature of the project, it is consistent with these new citywide policies and ordinances and is a permitted use under both documents. Further, revisions to thresholds resulting from adoption of the Fresno General Plan and Zoning Ordinance will not result in a substantial increase in the severity of previously identified impacts when considered with the project.
3. There is no new information which was not known and could not have been known at the time the previous MND was adopted that was not discussed in the previous MND.
Based upon these findings, it has been determined that an addendum to Mitigated Negative Declaration (SCH No. 2012061089) prepared pursuant to CEQA Guidelines Section 15164 is appropriate.
Southeast Surface Water Treatment Facility Solar Power Project
An Initial Study and Mitigated Negative Declaration (SCH No. 2015081062) dated August 14, 2015 was adopted for CUP No. C-14-041. C-14-041 contemplated several actions related to development of the Southeast Surface Water Treatment Facility, which was a subsequent project identified in the Metro Plan Update EIR. Installation of solar panels was contemplated as a phase within the development of the SESWTF. The current Southeast Surface Water Treatment Facility Solar Power Project proposes solar panels at substantially similar locations as described in the prior MND. A total increase of .05 acres is proposed, however the current project will be in the same area of disturbance as described in the prior MND.
Because some revisions to the project are necessary, an analysis was performed pursuant to CEQA Guidelines Section 15162 to determine whether subsequent environmental review is required. Based upon this analysis, the following findings are made to support the determination that an addendum prepared pursuant to CEQA Guidelines Section 15164 is appropriate:
1. No substantial changes are proposed in the project which will require major revisions of the MND due to the involvement of new significant effects or a substantial increase in the severity of previously identified significant effects. In this case the location of the solar system is substantially the same. The area of disturbance on the site has not changed and the solar acres is increasing by a modest .05 acres.
2. No substantial changes have occurred with respect to the circumstances under which the project was undertaken which will require major revision of the previous MND due to the involvement of new significant environmental effect or a substantial increase in the severity of previously identified significant effects. In this case, this approval is consistent with phases contemplated in the development of the SESWTF. The purpose, need and circumstances for the facility as a whole remain the same.
3. There is no new information which was not known and could not have been known at the time the previous MND was adopted that was not discussed in the previous MND.
Based upon these findings, it has been determined that an addendum to Mitigated Negative Declaration SCH No. 2015081062 prepared pursuant to CEQA Guidelines Section 15164 is appropriate.
Northeast Surface Water Treatment Facility Solar Power Project
An Initial Study and Mitigated Negative Declaration (SCH No. 2017041061) dated April 21, 2017 was adopted for improvements to the Northeast Surface Water Treatment Facility. The prior MND contemplated reconfiguration of an overflow basis, construction of a 6 million gallon water storage tank, and an onsite 500-foot buffer area. The Northeast Surface Water Treatment Facility Solar Power Project proposes to revise the project contemplated in the prior MND by proposing the installation of solar panels within the area of disturbance contemplated in the prior MND. The site of the water storage tank has been adjusted, therefore providing sufficient space for solar panel installation at the same site.
Because some revisions to the project are necessary, an analysis was performed pursuant to CEQA Guidelines Section 15162 to determine whether subsequent environmental review is required. Based upon this analysis, the following findings are made to support the determination that an addendum prepared pursuant to CEQA Guidelines Section 15164 is appropriate:
1. No substantial changes are proposed in the project which will require major revisions of the MND due to the involvement of new significant effects or a substantial increase in the severity of previously identified significant effects. In this case the area of disturbance for the project remains the same. Installation of the solar facility fits within the footprint of the project area contemplated by the prior MND and would not alter the conclusions contained therein or resulting the need for additional mitigation measures.
2. No substantial changes have occurred with respect to the circumstances under which the project was undertaken which will require major revision of the previous MND due to the involvement of new significant environmental effect or a substantial increase in the severity of previously identified significant effects. In this case, the purpose and need for the original project remains the same, and with minor previously approved adjustments to siting, provides sufficient space for the addition of solar facilities, which will provide emissions free energy toward the operation of the NESWTF. Further, the original project is still underway, as such the circumstances remain unchanged.
3. There is no new information which was not known and could not have been known at the time the previous MND was adopted that was not discussed in the previous MND.
Based upon these findings, it has been determined that an addendum to Mitigated Negative Declaration (SCH No. 2017041061) prepared pursuant to CEQA Guidelines Section 15164 is appropriate.
LOCAL PREFERENCE
Local Preference was not implemented as this is a cooperative purchase contract. However, we are fortunate that ForeFront Power takes pride in hiring qualified local firms to perform work on their projects.
To ensure this project aligns with the local hiring goals of the Mayor and Council, and to address the economic impacts of COVID-19, the construction portion of the project will be competitively bid by ForeFront, with a commitment to targeted hiring for journeymen and apprentices residing in economically disadvantaged areas, specifying that at least 30% of all hours for construction be of targeted workers from the City of Fresno and Greater Fresno Area. Forefront Power typically hires 50% local for their construction projects and has previously demonstrated this with their recent Fresno area projects, and will focus a goal, to achieve the same for this project.
FISCAL IMPACT
The General Fund is not impacted by this project. All impacts and cost savings will be realized by the Water and Wastewater Enterprise Funds. This project will result in energy cost savings at the three treatment facilities, with a year one savings anticipated to be $2,698,417, and a total twenty year savings estimated to be approximately $100,639,535. There are no up-front costs to be paid; all design, construction, and operational costs are incorporated into the negotiated PPA rates.
Attachments:
Attachment 1 - Addendum to the Mitigated Negative Declaration Prepared for Environmental Assessment No. C-12-113 SCH #2012061089
Attachment 2 - Addendum to the Mitigated Negative Declaration Prepared for Environmental Assessment No. C-14-041 SCH #2015081062
Attachment 3 - Addendum to the Mitigated Negative Declaration Prepared for Environmental Assessment No. SCH #2017041061
Attachment 4 - ESA General Terms and Conditions
Attachment 5 - ESA - Solar; Fresno-Clovis Regional Wastewater Reclamation Facility
Attachment 6 - ESA - Storage; Fresno-Clovis Regional Wastewater Reclamation Facility
Attachment 7 - ESA - Solar; Northeast Surface Water Treatment Facility
Attachment 8 - ESA - Storage; Northeast Surface Water Treatment Facility
Attachment 9 - ESA - Solar; Southeast Surface Water Treatment Facility
Attachment 10 - ESA - Storage; Southeast Surface Water Treatment Facility
Attachment 11 - PowerPoint Presentation