TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Solar Power Purchase Agreement with SitelLogIQ, Ontario, CA.
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RECOMMENDATION
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Approve a Power Purchase Agreement (PPA) with SiteLogIQ, Ontario, CA, that 1) provides for SiteLogIQ to construct, operate and maintain solar photovoltaic (PV) carports on the City property at 5450 Guardian Way (Chino Police Department); 2) obligates SiteLogIQ to sell and the City of Chino to purchase energy produced by the project at a fixed rate of $0.171/kWh; and 3) authorize the City Manager to execute all necessary documents on behalf of the City.
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FISCAL IMPACT
Cost Savings: It is anticipated that the City will begin purchasing power from SiteLogIQ in FY 2025-26 and that this project will result in cost savings of approximately $4.4 million over the 25-year contract term. This estimate assumes public utility rates will increase at 5% per annum over the 25-year contract term. If utility rates increase at a 6% annual rate, the cost savings will total approximately $5.9 million over the 25-year contract term.
Initial Cost: There is no up-front cost to the City for the construction, maintenance and operation of the Solar Photovoltaic Carports. These costs will be borne by SiteLogIQ and recovered through the per kilowatt-hour rate the City will pay to SiteLogIQ for electricity generated by the project. If unforeseen circumstances arise that lead to additional construction expenses, the rate that the City will pay SiteLogIQ to purchase electricity will automatically increase by $0.0003 [KS1]per kWh for every $10,000 in additional expenses. As an example, if the project were to incur $100,000 in additional expenses, the City's cost for electricity purchased under the PPA would increase from $0.171 per kWh to $0.174 per kWh, which in turn would reduce the 25-year savings available to the City by $105,485.
Insurance: Under the PPA, the...
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