REPORT TO THE CITY COUNCIL
February 27, 2020
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
SUBJECT
Title
Approve Option to Lease Agreement between City of Fresno and Fresno Community Solar Developers, LLC, (FCSD) for 158 acres of land at the Fresno Clovis Regional Wastewater Reclamation Facility (RWRF) (Council District 3)
Body
RECOMMENDATION
Staff recommends that the City Council approve an Option to Lease Agreement between City of Fresno and FCSD for 158 acres of land at the RWRF.
EXECUTIVE SUMMARY
On June 21, 2018, the California Public Utilities Commission (CPUC) approved D.18-06-027, as a new program to promote Solar Generation for Disadvantaged Communities (DAC). As directed by the CPUC, sometime in March 2020, Pacific Gas & Electric (PG&E) will issue a Request for Offers (RFO) seeking solar generation projects that must be located within a DAC for up to a maximum of 20 megawatts (MW) under the Disadvantaged Communities Green Tariff (DAC-GT) program. The PG&E RFO is mandated by the CPUC and not part of the PG&E bankruptcy.
FCSD intends to respond to the RFO issued by PG&E to develop a 20 MW DAC-GT solar generation facility on 158 acres located at South Cornelia Avenue south of West Jensen Avenue near the Fresno RWRF (see Attachment 2). Staff is in the process of negotiating a 20-year lease agreement with FCSD that will pay the City $2,000 per acre for the first year of the lease, and a 3 percent per year annual escalator for the entire 20-year term of the lease. The Land Option is needed by FCSD to respond to PG&E's RFO and contemplates several ways the City of Fresno may choose to participate in the potential profitability of the solar project. Currently, the parcel is leased for farming operations at $482 per acre per year.
BACKGROUND
On June 21, 2018, the CPUC approved D.18-06-027, as a new program to promote DAC. With that decision the CPUC is requiring investor owned utilities (e.g., PG&E) to implement two ne...
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