REPORT TO THE CITY COUNCIL
March 22, 2018
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
SUBJECT
Title
Actions pertaining to the lease of 10-acres at the Fresno-Clovis Regional Water Reclamation Facility:
1. Adopt a finding of Categorical Exemption per staff determination pursuant to Section 15301 Class 1 of the CEQA Guidelines
2. Approve the First Amendment to the Ground Lease for Energy Storage System between the City and Amber Kinetics (Council District 3)
Body
RECOMMENDATION
Staff recommends the Fresno City Council approve the First Amendment to the Ground Lease for Energy Storage System (Amendment) between the City of Fresno and Amber Kinetics for 10 acres of land at the Fresno-Clovis Regional Water Reclamation Facility. The Amendment has been approved as to form by the City Attorney's Office.
EXECUTIVE SUMMARY
On January 14, 2016, the Fresno City Council approved (Attachment 1) a Grant of Option Agreement (Attachment 2) with Amber Kinetics for two parcels at the Fresno-Clovis Regional Water Reclamation Facility: Parcel 1 is 10 acres, and Parcel 2 is 15 acres. The total 25 acres of land at the Fresno-Clovis Regional Water Reclamation Facility will be used to install and operate a 20 megawatt (MW) energy storage facility, and accommodate a potential second phase in the future. The selected 25 acres located in proximity to the New Kearney Substation, which is owned and operated Pacific Gas and Electric (PG&E). Amber Kinetics exercised the Lease Option for Parcel 1 on July 22, 2016, (Attachment 3) and has until July 31, 2019, to exercise the Lease Option for Parcel 2.
On January 29, 2018, the Department of Public Utilities received a request from Amber Kinetics (Attachment 4) to defer implementation of the originally planned energy storage project, and to maintain the lease for 10 acres (Parcel 1) and the lease-option for 15 acres (Parcel 2). Under the proposed Amendment, Amber Kinetics will continue to pay the City $2,000 per a...
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