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HomeMy WebLinkAbout05.c. Review draft Position Paper to conduct a Public Hearing to consider approval of a resolution to adopt a Mitigated Negative Declaration And Mitigation, Monitoring And Reporting Program, And Approving The Proposed Solar Array Project On Cen Page 1 of 21 Item 5.c. CENTRAL SAN BOARD OF DIRECTORS . , , . POSITION PAPER . , DRAFT MEETING DATE: AUGUST 16, 2021 SUBJECT: REVIEW DRAFT POSITION PAPER TO CONDUCTA PUBLIC HEARING TO CONSIDER APPROVAL OF RESOLUTION NO. 2021- ADOPTINGA MITIGATED NEGATIVE DECLARATIONAND MITIGATION, MONITORING AND REPORTING PROGRAM, AND APPROVING THE PROPOSED SOLAR ARRAY PROJECT ON CENTRAL SAN'S LAGISS PROPERTY; AUTHORIZE THE GENERAL MANAGER TO 1) EXECUTE AMENDMENT NO. 1 TO CENTRAL SAN'S POWER PURCHASE AGREEMENT WITH REC SOLAR; AND 2)AMEND AN EXISTINGAS-NEEDED PROFESSIONAL CONSULTING SERVICES AGREEMENT WITH ARC ALTERNATIVES, INCREASING THE COST CEILING. SUBMITTED BY: INITIATING DEPARTMENT: RUSS LEAVITT, ENGINEERING ASSISTANT ENGINEERING AND TECHNICAL SERVICES- III RESOURCE RECOVERY MELODY LABELLA, RESOURCE RECOVERY PROGRAM MANAGER REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE In order for REC Solar Commercial Corporation (REC Solar), also known as Duke Energy, to move forward with construction of a Solar Project on Central San's Lagiss Property, Central San's Board of Directors (Board) must adopt the appropriate California Environmental Quality Act (CEQA) documentation and approve the project. In addition, Board authorization is required to amend existing agreements over $200,000. BACKGROUND At its November 5, 2020 meeting, the Board awarded a Power Purchase Agreement (PPA)to REC Solar for a solar photovoltaic system on Central San's property. After its substantial design, a draft Mitigated Negative Declaration (MND) has been prepared under CEQA for construction and operation of a 1.75 megawatt solar panel array. The project would be located on approximately 8.2 acres of a 48-acre parcel at 4451 Blum Road in unincorporated Martinez (assessor's parcel number 159-140-042-7), which is owned by Central San, and referred to as the "Lagiss parcel" (see Attachment 1). The proposed solar panel array would be accessed from the northern end of Blum Road via extension of August 16, 2021 REEP Committee Meeting Agenda Packet- Page 28 of 69 Page 2 of 21 an existing private driveway and encircled by a service road and perimeter fence. The existing surface area to be covered by the proposed, ground-mounted, solar panel modules is approximately 2.5 acres. Combined, solar panel modules together with the service road and driveway, the area covered is approximately 4 acres of the 8.2 acres. The remainder (4.2 acres) is generally retention basins or aisle space between rows of solar panels, with only minor area being used for inverters; panelboards; main photovoltaic switchboard; step-down, pad-mounted transformer; and intertie switchgear. As Lead Agency under CEQA, Central San has conducted an Initial Study of the proposed project to determine if it would have a significant effect on the environment. Staff has concluded that the Initial Study adequately, accurately, and objectively evaluates the environmental impacts of the proposed project, and that a MND is the appropriate document to address the environmental effects of the project. The Initial Study is included as part of the proposed MN that was made available to the Board. The proposed MND (State Clearinghouse #2021070215)finds that there is no substantial evidence before Central San that the proposed project would have significant effects on the environment. Mitigation measures have been incorporated into the project to reduce potentially significant impacts to less-than-significant levels. These measures are discussed in the proposed MND and included in its proposed Mitigation, Monitoring and Reporting Program (see Attachment 2). At the time this position paper was prepared, no comment letters on the proposed MND had been received. The deadline for receiving comments is August 13, 2021. Any comment letters and Central San's responses will be presented in Attachment 3. Nothing in the comment letters is expected to require changes in the conclusions of the proposed MND. Before the proposed project may be approved, the Board must consider any comments received during the MND's 30-day public review process and the public hearing, and then consider approval of the appropriate CEQA documentation (a MND is recommended in this case). Then, the Board may consider approval of the proposed project. While not required by law or Central San procedures, it has been Central San's customary practice to hold public hearings in advance of the adoption of MNDs. Holding a hearing on the proposed MND would be consistent with this practice. Following approval of both the MND and the project, a Notice of Determination will be filed with the County Clerk. REC Solar will then begin applying for project permits and other approvals from regulatory agencies and, subsequently, construct the project. Since the time the Board approved execution of the PPA with REC Solar, the project has been moving forward through the design and pre-permitting processes. Increases in the project cost, due to the site access requirements by the Contra Costa County Fire Protection District and higher-than-anticipated costs of the PG&E grid interconnection, have added costs to the project, resulting in a change order request by REC Solar for an increase in the price of its solar power. After a thorough review by Central San's staff and consultant, ARC Alternatives (ARC), staff is recommending the Board's approval of the project and Amendment No. 1 to the PPA, which will increase the cost of solar power from $0.0866 to $0.10 per kilowatt hour (kWh). This rate adjustment and changes to the design and schedule result in a need to update a number of sections in our PPA, which will be addressed in Amendment No. 1. Sections/content in the PPA to be updated in Amendment No. 1 include: early termination fees, purchase option values, milestones, schedule, layout, annual production values, etc. Staff is also recommending that Central San continue to retain solar consultant, ARC, and increase the ceiling of their existing as-needed consulting agreement by$50,000 to support Central San through the construction and commissioning of the Solar Array Project. ARC's experience in implementing solar projects for public agencies in California has been invaluable in guiding Central San in the development and implementation of this project. Staff hired ARC in April 2019, after an informal selection process, and initially executed an as-needed consulting services contract for$29,600. After exemplary performance, staff has continued to add scope and budget, under staff authority, to ARC's contract. Tasks have included: supporting the implementation of Central San's Solar Project from scoping to procurement to August 16, 2021 REEP Committee Meeting Agenda Packet- Page 29 of 69 Page 3 of 21 contract negotiations and design review, performing an energy efficiency audit at Central San's main campus, performing an evaluation of the performance of Central San's existing solar arrays, and developing procurement documents for a lighting efficiency replacement project at the treatment plant. As ARC's contract amount is reaching the limit of the General Manager's authority, staff is seeking the Board's authorization for the General Manager to raise the cost ceiling of ARC's existing as-needed consulting agreement from $179,600 to $229,600. ALTERNATIVES/CONSIDERATIONS 1. Deny or defer adoption of the MND or Mitigation, Monitoring and Reporting Program. This action would prevent or delay moving forward with the potential approval of the project. If approval of the MND or Mitigation, Monitoring and Reporting Program is denied, direction should be given to staff as to which issues require further documentation. 2. Deny or defer approval of the proposed project. This action would prevent or delay moving forward with project construction. If approval of the proposed project is denied or deferred, direction should be given to staff as to how to proceed. I n terms of the other staff-recommended Board actions, the Board could decide not to authorize the General Manager to execute the PPA amendment, but that is not recommended, as it would halt implementation of the Solar Array Project. The Board could also decide not to authorize the General Manager to increase the cost ceiling on ARC's as-needed professional consulting services agreement. That is also not recommended, as ARC's significant knowledge and experience in implementing solar projects in California have been invaluable in ensuring a high-quality solar project for Central San at substantial savings over the term of the PPA. FINANCIAL IMPACTS The increase in the cost of solar energy from $0.0866 to $0.10 per kWh will result in a net additional cost of $425,000 to Central San over the 25-year PPA term. Even with that additional cost, the project is currently estimated to save Central San $6 million over the 25-year term of the PPA with REC Solar and be cash- positive in year one. With these savings, the project exceeds the standard in the Board's Energy Policy, which requires renewable energy projects to be cash-positive within five years. COMMUNITY OUTREACH I n compliance with the Central San's CEQA Guidelines, legal notices were published in the Contra Costa Times, and the San Ramon Valley Times, newspapers of general circulation in the area affected by the proposed project. The legal notices announced Central San's intent to adopt a Mitigated Negative Declaration and the availability of the document at www.centralsan.org/solar for a 30-day public review period. Additionally, copies of the notice were mailed to affected public agencies and property owners in the Blum Road area. COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee reviewed this matter at its meeting on August 16, 2021, and recommended RECOMMENDED BOARD ACTION Staff recommends the Board: 1. Conduct a public hearing on the Mitigated Negative Declaration. Barring any irresolvable public comments to the contrary, approve the proposed resolution (Attachment 4) adopting the Mitigated August 16, 2021 REEP Committee Meeting Agenda Packet- Page 30 of 69 Page 4 of 21 Negative Declaration and Mitigation, Monitoring and Reporting Program, and approving the proposed Solar Panel Array Project on Central San's Lagiss property; 2. Authorize the General Manager to execute Amendment No. 1 to Central San's Power Purchase Agreement with REC Solar that includes a solar energy purchase price increase from $0.0866 to $0.10 per kilowatt-hour; and 3. Authorize the General Manager to amend an existing as-needed professional consulting services agreement with ARC Alternatives, increasing the cost ceiling from $179,600 to $229,600. Strategic Plan re-In GOAL ONE: Customer and Community Strategy 2—Maintain a positive reputation GOAL TWO: Environmental Stewardship Strategy 4- Reduce reliance on non-renewable energy GOAL THREE: Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability ATTACHMENTS: 1. Proposed Solar Project Location Map 2. Mitigation, Monitoring and Reporting Program 3. Comments and Responses 4. Resolution 5. Presentation August 16, 2021 REEP Committee Meeting Agenda Packet- Page 31 of 69 CENTRALJew 5AN _ • -Yam.' �",;.•Y �� .� s• �'. "' 680 0 a all zi ` Cs entral San + � � \� � �'� Basin'"C�• i. X 6. `� ., 4; �'•. ��� • \ tom '.-�� ���� n r py l to �'•� ��::Q�!I�p! ivefl;='� Lagiss Buffer Prapecty a• �. a err Il`-• `fir _k _ .»_._ Existing Fence � + �• r n� #Yr� R R� Proposed 2ft Contours Proposed Solar Array Proposed 20'Wide Access Road Retention Basins 4. .nm.w-s wv'1 :.91'k ITIC IV-.J�Ki,Note:Proposed locations based upon data provided by Duke Energy- f ■ Location Map Page 6 of 21 ATTACHMENT 2 CENTRAL SAN SOLAR PANEL ARRAY PROJECT 4451 BLUM ROAD IN UNINCORPORATED MARTINEZ MITIGATION, MONITORING AND REPORTING PLAN Introduction This document presents the Mitigation, Monitoring and Reporting Plan (MMRP) for the Central San Solar Panel Array Project at the north end of Blum Road. This MMRP is required by Public Resources Code Section 21081.6 and Section 15097 of the CEQA Guidelines. Mitigation, Monitoring and Reporting Plan This MMRP includes the mitigation measures identified in the Mitigated Negative Declaration (MND) required to avoid or reduce potential impacts related to construction or operation of the proposed project. The MMRP is organized in a table format, keyed to each potential impact and each MND mitigation measure. Mitigation measures are presented in the table and are coded by number to the appropriate MND section. Column headings in the table are defined as follows: • Measure Number: This column lists the label used for the corresponding mitigation measure as listed in the MND. • Mitigation Measure: This column contains the mitigation measures to be implemented. • Implementation Procedure: This column contains a description of the action(s) that need to be taken to comply with the purpose and intent of each mitigation measure. • Monitoring and Reporting Actions: This column contains an outline of the appropriate steps to verify compliance with the mitigation measure. • Monitoring Responsibility: This column contains an assignment of responsibility for the monitoring and reporting tasks. • Monitoring Schedule: The general schedule for conducting each monitoring and reporting task, identifying, where appropriate, both the timing and the frequency of the action. 2-1 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 33 of 69 TABLE 1 CENTRAL SAN SOLAR PANEL ARRAY PROJECT 4451 BLUM ROAD IN UNINCORPORATED MARTINEZ MITIGATION, MONITORING AND REPORTING PROGRAM Measure Mitigation Measure Implementation Procedure Monitoring and Reporting Actions Monitoring Monitoring Schedule Number Responsibility Biology 111-1 BUOW avoidance surveys (also termed"pre- Multiple surveys may be 1) Review construction schedule and REC/Duke 1) Retain qualified biologist and construction surveys")shall be conducted no necessary, based upon the determine appropriate coverage so that assess coverage needs prior to less than two(2)weeks prior to any ground schedule and work progress. BUOW avoidance surveys(also termed the start of construction disturbance. BUOW avoidance surveys are "pre-construction surveys")are recommended for ground mount conducted no less than two(2)weeks 2) Conduct each survey two weeks Surveys shall be conducted by a qualified installation, perimeter service prior to any ground disturbance. prior to ground disturbance. biologist following Burrowing Owl Survey road and access driveway 3 Throughout construction,after Protocol methods. construction, utility trench 2) Review findings report to be submitted ) g excavation, and equipment pads. by the qualified biologist within 24 hours each survey,file a compliance after his/her survey. report. If installation of ground mounts for arrays are staggered over an 3) Based upon the pre-construction survey elapsed time of one month or findings, if burrowing owls are found on longer, it is recommended that or next to the project site,one of the separate surveys be performed following additional mitigation measures for each array. (III-2A or III-2B)shall be implemented: 11I-2A If burrowing owls are found to occupy an area If fenced,the restricted area after 1) Qualified biologist to document the REC/Duke 1)Throughout construction,after of construction or an area proximate to the it is fenced shall not be entered BUOW fence and coordination with each monitoring event by the construction during September 1 to January or disturbed. Work can proceed CDFW. qualified biologist,file a simple 31 (non-breeding season): but only outside the fenced area. internal compliance report in the 2) Qualified biologist periodically during project file. In this event,occupied burrows and additional If passive relocation is nesting system shall check the integrity buffer zone shall be fenced per the CDFW recommended by the qualified of the BUOW fence. Staff Report on Burrowing Owl Mitigation. biologist,the qualified biologist will implement passive relocation 3) Contractor shall note BUOW resource If avoidance is not practical, passive in accordance with the plan zone avoidance in the worker relocation may be implemented in accordance approved by CDFW. Work can awareness/safety training log. with a Burrowing Owl Exclusion Plan 1 proceed outside the restricted submitted to and approved by CDFW. area and can resume inside the restricted area only after certification of BUOW relocation. Biology—(continued) 1 See CDFW Staff Report on Burrowing Owl Mitigation,Appendix E, March 7, 2012. https://nrm.dfp.ca.gov/FileHandler.ashx?DocumentlD=83843&inline August 16, 2021 REEP Committee Meeting Agenda Packet- Page 34 of J92 TABLE 1 (continued) CENTRAL SAN SOLAR PANEL ARRAY PROJECT 4451 BLUM ROAD IN UNINCORPORATED MARTINEZ MITIGATION, MONITORING AND REPORTING PROGRAM Measure Mitigation Measure Implementation Procedure Monitoring and Reporting Actions Monitoring Monitoring Schedule Number Responsibility III-213 If burrowing owls are found during February 1 Occupied burrows and additional The qualified biologist shall initially inspect REC/Duke 1)Throughout construction, after to August 31 (breeding season): buffer zone will be fenced, the exclusion fence and posting and, each monitoring event by the posted, and avoided,without thereafter, shall periodically inspect qualified biologist,file a simple This event is not anticipated in view of the disturbance during the entire compliance. Based upon personal compliance report. proposed project construction schedule, nesting season. reconnaissance of the site,the qualified which is September 1 through January 31. biologist shall certify when it is feasible to However, necessary actions under this resume work at the end of the nesting contingency are described below, in case an season adjustment to the proposed construction schedule becomes necessary. If burrowing owls are found, ground-disturbing activities will follow the Burrowing Owl Consortium's burrowing owl avoidance guidance. Occupied burrows and additional buffer zone will be avoided,without disturbance during the entire nesting season. Cultural Resources IV-3. To avoid potential inadvertent disturbance of Include requirements for worker 1) Note resource zone avoidance in the REC/Duke 1) Prior to the approval of off-site historical resources during notification/orientation during worker awareness/safety training log. construction contract. construction, off-site vehicle and pedestrian safety meetings,signage, and travel will be prohibited except on the access installation of fencing in 2) Check daily signs posted along the 2) Before construction,for ordering road. This can be accomplished with a construction contract fence. Replace as needed. appropriate signage to be posted combination of worker notification/orientation specifications. along the fence. during safety meetings,signage,and installation of either temporary fencing or the Construction staging is prohibited 3)Daily or weekly during worker permanent security fence early in the in the protected resource zone. awareness/safety meetings. schedule. IV-4 In the event of discovery of suspected The System Operator and 1) System Operator and contractor would REC/Duke As needed. archaeological resources or buried human contractor would consult with the contact the County coroner and contact remains,construction will be halted. County coroner, identified Holman&Associates(archaeologist). descendants,—if any are identified by the Native American 2) Qualified archaeologist would be Heritage Commission (NAHC),— responsible for assessing and and/or a qualified archaeologist, documenting the discovery. depending on the nature of the 3) Consult with representatives identified discovery. in previous consultation with parties identified by the NAHC. 2-3 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 35 of 69 TABLE 1 (continued) CENTRAL SAN SOLAR PANEL ARRAY PROJECT 4451 BLUM ROAD IN UNINCORPORATED MARTINEZ MITIGATION, MONITORING AND REPORTING PROGRAM Measure Mitigation Measure Implementation Procedure Monitoring and Reporting Actions Monitoring Monitoring Schedule Number Responsibility Air Quality VIII-5 The construction project would implement Include requirements for dust 1) Review construction contract;verify REC/Duke 1) Prior to the approval of basic mitigation measures recommended by suppression and anti-trackout of consistency with BAAQMD Basic Dust subcontract for construction of the BAAQMD and listed in Table 8(see MND silt onto Blum Road,in Control Measures. roads. Section VIII, page 57). With implementation of construction contract 2)Construct anti-trackout measures for the basic mitigation measures and compliance specifications. removing soil from truck tire treads 2) Initially before earth disturbance. with applicable Regulation 6, Rule 6,of the BAAQMD,the proposed project would not 3)Post idling time and travel speed 3) Periodically check posted limits conflict with the CAP. restrictions. during road grading,sub- excavation,and construction. Utilities and Service Systems XII-6 Drainage outlets and retention basins around Incorporate permanent 1) Review construction contract;verify REC/Duke 1) Prior to the approval of the perimeter service road have been stormwater controls as shown in consistency with SWCP. subcontract for construction of designed so as not to alter the overall existing the SWCP into the contract roads. drainage pattern or volume of runoff, documents and drawings. concentrate runoff at unengineered collection 2) Periodically during backfilling with points, or accelerate erosion. These features select fill materials and geotextile will be constructed as shown in the SWCP. fabric. XII-7 Assure that EOL recycling of components and Incorporate recycling 1) Review System Operator's contract; REC/Duke 1) Before demolition in 25-40 years. materials(e.g., glass, aluminum)is performed requirements into the System verify contract consistency with in a responsible sustainable way. Operator's contract. recycling at end of project useful 2) Periodically review EOL lifetime. requirements every 5 years Geology and Soils XIV-8 A Geotechnical Engineering Investigation Construction contract to include 1) Review construction contract;verify REC/Duke 1) Prior to approval of the project's Report has been performed to ascertain soil the specifications and details for compliance. final design plans and and bedrock conditions across the site,so that ground mounts, racking, and construction contract. appropriate load-bearing values and depths are concrete equipment pads. 2) Inspect construction activities to verify used in the design(NV5,2021). California that design standards are implemented. 2) weekly or as appropriate during Building Code Sections 1806 and 1807.4 construction. address load-bearing values and embedded post or poles. Construction of the proposed project shall incorporate recommendations of the Geotechnical Engineering Investigation Report for ground mounts,access driveway, perimeter service road,trenches,and flatwork. Hydrology and Water Quality 2-4 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 36 of 69 TABLE 1 (continued) CENTRAL SAN SOLAR PANEL ARRAY PROJECT 4451 BLUM ROAD IN UNINCORPORATED MARTINEZ MITIGATION, MONITORING AND REPORTING PROGRAM Measure Mitigation Measure Implementation Procedure Monitoring and Reporting Actions Monitoring Monitoring Schedule Number Responsibility XV-9 Implement on-site features recommended in Construction contract to include 1) Review construction contract. REC/Duke 1) Prior to the approval of grading the SWCP and Geotechnical Engineering the retention pond limits, raised subcontract. Investigation Report such as raised curbs, curbs, retention basins, rip rap 2)Verify compliance of work as-built with retention basins,and rip rap spillways,and spillways, and geotextile fabric. specifications in the contract. 2) Weekly during construction of the geotextile fabric to accommodate stormwater road and driveway extension. runoff,minimize erosion,and retain 3) Upon completion of the road. incremental runoff volumes added by proposed impermeable surfaces. XV-10 Prepare a Stormwater Pollution Prevention Construction contract to include 3) Review construction contract. REC/Duke 1) Prior to the approval of Plan (SWPPP)with practices to be the retention pond limits, construction subcontract for implemented by the System Operator and spillways, utility trench for 4)Verify compliance of work as-built with seeding. Contractor, such as seeding, mulching, interconnection. specifications in the contract. installation of silt fence and straw wattle. 2) During each key seeding event. Revegetation subcontractor to be selected in consultation with preparer of the SWCP and SWPPP. XV-11 Implement the measures recommended in Construction contract to include 1) Review construction contract. REC/Duke 1) Prior to the approval of grading the SWCP during construction of the the retention pond limits, raised subcontract. perimeter service road and driveway so as asphalt curbs, and spillways. 2)Verify compliance of work as built with not to alter the overall drainage pattern of specifications in the contract, permit 2) Weekly during construction of the the site. Along the asphalt paved segments approval and conditions issued by road and driveway extension. of the perimeter service road, install the Contra Costa County Fire Prevention raised asphalt curb,where shown,to direct Bureau's Engineering Unit. 3) Upon completion of the road. stormwater runoff to appropriate outlets to proposed retention basins. Hydrology and Water Quality—(continued) XV-12 Prepare the perimeter service road and Include requirements for fences 1) Review construction specifications; REC/Duke 1) Prior to the approval of fence security fence first during construction to in construction contract. verify incorporation of fence construction subcontract. minimize off-road travel, rainy season soil requirements;add to administrative disturbance, and related erosion. record. 2) Upon completion of the perimeter security fence. 2) Inspect construction site security fence to verify compliance with fence requirements. 2-5 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 37 of 69 TABLE 1 (continued) CENTRAL SAN SOLAR PANEL ARRAY PROJECT 4451 BLUM ROAD IN UNINCORPORATED MARTINEZ MITIGATION, MONITORING AND REPORTING PROGRAM Measure Mitigation Measure Implementation Procedure Monitoring and Reporting Actions Monitoring Monitoring Schedule Number Responsibility XV-13 Revegetate with ground cover as soon as Requirements for revegetation will 1) Review construction contract;add to REC/Duke 1) Prior to the approval of possible after finishing racking and installation of be included in construction contract administrative record. revegetation subcontract. panels. and construction documents. 2) Periodically inspect construction site; 2) Periodically after grading for the verify compliance with the revegetation driveway, perimeter service road, plan. and retention basins. Subsequently,monthly,after 3) Add telephone memos,and/or erection of ground mounts and correspondence to administrative racking. record. NOTES: 2-6 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 38 of 69 Page 12 of 21 ATTACHMENT 3 COMMENTS AND RESPONSES TO COMMENTS At the time this position paper was prepared, no comment letters on the proposed Mitigated Negative Declaration had been received. The deadline for receiving comments is August 13, 2021. Any comment letters and Central San's responses will be presented here. 3-1 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 39 of 69 Page 13 of 21 ATTACHMENT 4 RESOLUTION NO. 2021- A RESOLUTION ADOPTING A MITIGATED NEGATIVE DECLARATION AND MITIGATION, MONITORING AND PROGRAM AND APPROVING THE SOLAR ARRAY PROJECT ON CENTRAL SAN'S LAGISS PROPERTY WHEREAS, for the purposes of California Environmental Quality Act (CEQA) review, the project upon which this determination is made is described as follows: Central Contra Costa Sanitary District (Central San) proposes construction and operation of a 1.75 megawatt solar panel array on approximately 8.2 acres of a 48- acre parcel at 4451 Blum Road in unincorporated Martinez (APN 159-140-042-7). The parcel is already owned by Central San and is referred to as the "Lagiss parcel." The proposed solar panel array would be accessed from the northern end of Blum Road via extension of an existing private driveway. The proposed solar panel array would be encircled by a service road and perimeter fence. The existing surface area to be covered by the proposed ground-mounted solar panel modules is approximately 2.5 acres. Combined, solar panel modules together with the service road and driveway, the area covered is approximately 4.0 acres of the 8.2 acres. The remainder (4.2 acres) is generally retention basins or aisle space between rows of panels, with only minor area being used for inverters; panelboards; main photovoltaic (PV) switchboard; step-down, pad-mounted transformer; and intertie switchgear. WHEREAS, an Initial Study has been conducted by the Central San; and WHEREAS, Central San staff concludes that the Initial Study adequately, accurately, and objectively evaluated the proposed effect on the environment; and WHEREAS, adequate public notice was given to receive comments on the proposed project; and WHEREAS, the Central San Board of Directors has reviewed the results of the Initial Study, considered comments received, and determined that the project, as mitigated, will not have a significant effect on the environment; and WHEREAS, the Central San Board of Directors finds that the Mitigated Negative Declaration and its Mitigation Monitoring and Reporting Program reflects its independent judgment of the environmental effects of the proposed project; and NOW, THEREFORE, be it resolved that the Board of Directors of the Central Contra Costa Sanitary District does hereby adopt the Mitigated Negative Declaration and Mitigation Monitoring Program for the Solar Panel Array Project. The Secretary of the Board of Directors will be custodian of the document and other materials that constitute the record of proceedings for the adoption of this Mitigated Negative Declaration. The record of proceedings will be maintained at the District offices, 5019 Imhoff Place, Martinez, California. August 16, 2021 REEP Committee Meeting Agenda Packet- Page 40 of 69 Page 14 of 21 Central Contra Costa Sanitary District Resolution No 2021- Page 2 of 2 FURTHERMORE, be it resolved that the Board of Directors of the Central Contra Costa Sanitary District does hereby approve the Solar Panel Array Project. PASSED AND ADOPTED this 2nd day of September 2021, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm Counsel for the District August 16, 2021 REEP Committee Meeting Agenda Packet- Page 41 of 69 Page 15 of 21 ATTACHMENT 5 Ij+� CONDUCT A PUBLIC HEARING ON CENTRAL SAN'S SOLAR ARRAY PROJECT Melody LaBella, P.E. Resource Recovery Program Manager Russ Leavitt Engineering Assistant III Real Estate, Environmental and Planning Committee Meeting August 16 2021 PRESENTATION OVERVIEW Solar Project Initiation and Design Solar Project Description Environmental Review Process Public Outreach Change Order and Power Purchase Agreement (PPA) Amendment Updated Financials Amendment to ARC Alternatives' As-Needed Agreement Iz August 16, 2021 REEP Committee Meeting Agenda Packet- Page 42 of 69 1 Page 16 of 21 SOLAR PROJECT INITIATION AND DESIGN • August 2019: Solar Feasibility Study � LCENT­ June 2020: Request for ProposalsPRWECT SfTE . . (RFP) released for a Solar Project PPA November 5, 2020: Board of Directors (Board) awarded a PPA to REC Solar Commercial Corporation (REC Solar), -„ • also known as Duke Energy, for a solar photovoltaic system on Central San's Lagiss property Spring 2021 : Solar Panel Array Project design sufficient to begin environmental evaluation 3 SOLAR PROJECT DESCRIPTION A proposed 1 .75 megawatt solar photovoltaic facility located on 8.2 acres of the Central San-owned, 48 acre "Lagiss parcel" at 4451 Blum Road in unincorporated Martinez More than 2,500 fixed position, ground-mounted solar panel modules, encircled by a service road and perimeter fence, comprising a total of about 4 acres Remaining 4.2 acres are rainwater runoff retention basins or aisle space between rows of panels, as well as associated electrical equipment, and the connection to PG&E on Blum Road Panels are intended to not be visible from the residential portions of Blum Road CFNTPAISAN 14 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 43 of 69 2 Page 17 of 21 L Proposed Solar Project 4. R A1 EM A A l - F. -Ewrc9•r'p -��� •� !-SJ E TII Lvei ]C ` s, Rn.nn Bn.w Y k w— R � s ENVIRONMENTAL REVIEW PROCESS July 13, 2021 : Staff released Initial Study and Draft Mitigated Negative Declaration (MND) stating that implementing the project will have "no significant environmental impacts" — July 13 to August 13, 2021 : MND public review period — August 13, 2021 : Deadline for comment letters (none received to date) September 2, 2021 : Board to conduct public hearing and consider approval of the MND, the Mitigation Monitoring and Reporting Program, and the Project CFNTPAISAN 16 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 44 of 69 3 Page 18 of 21 PUBLIC OUTREACH Letters were mailed to the Blum Road neighborhood concurrent with the issuance of the RFP and the MND. The Notice of Intent to Adopt a MND was mailed to local, State and Federal agencies and published as a legal notice in local newspapers. Communications staff created project webpages on Central San's website, www.centralsan.org/solar,solar, where notices and the MND have been posted. There have been no community concerns expressed about the project at this time. 1 CHANGE ORDER AND PPA AMENDMENT NO. 1 Due to additional construction costs resulting from the design process, REC Solar has submitted a change order request to raise the price of solar power from $0.0866 to $0.10 per kilowatt hour. After careful evaluation by Central San's staff and solar consultant, staff is recommending approval. This rate adjustment and changes to the design and schedule result in a need to update a number of sections in our PPA, which will be addressed in Amendment No. 1 . These changes include: early termination fees, purchase option values, milestones, schedule, layout, annual production values, etc. 1 8 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 45 of 69 4 Page 19 of 21 UPDATED FINANCIAL ANALYSIS Annual Net Benefit(Savings) "Ec-A' RFC-m.n9 REC Annual Net Benefit F4P01-di C`KW I TN! FV.lu.ted S1W.OW 0 $o $o 1 $96,234 $0.555 2 $107,660 $80,776 3 $119.324 $93.234 4 5131.234 $105.949 iem,000 5 $143.394 $118.929 6 $155.823 1132,178 7 $168.496 $145,70fi Stw.mo e 5181,449 5359,5i9 9 5194.681 $1731624 534.,E 10 5208,198 $188,029 11 SM008 5202,741 12 5236.117 5217,769 Szw- 13 $250,$95 $233,120 14 5265,267 $248,801 Szaa 000 15 5280,324 $2641826 16 $Z95,722 $28111" 17 5311,440 $297,929 3]54.4W 18 $327,528 $315.026 19 $343,953 $332,500 S1c0.am 20 5360,755 $350.359 21 $377.933 $368.625 22 $395.497 $38.2276 SSgaaO 23 5413AS7 5406.354 24 5431.823 542SASS 25 $450,604 $445.800 0 1 I 2 4 5 6 1 ! 9 9] 11 23 11 LI iS 16 I) 11 19 10 21 ZT 21 14 >S ian7 56A69A26 $6.w4W3 —.Ec-ws 9ro9a4NFwbtM —sec-wnwn9N1 ' NPV 68.116,833 53,787,951 g CENTRAISAN AMENDMENT TO ARC ALTERNATIVES AS-NEEDED CONSULTING SERVICES AGREEMENT In April 2019, staff hired ARC Alternatives (ARC), after an informal selection process, under an initial $29,600, as-needed, professional consulting services contract. After exemplary performance, staff has continued to add scope and budget to ARC's as-needed contract. As ARC's contract is reaching the limit of the General Manager's authority, staff is seeking the Board's authorization for the General Manager to raise the cost ceiling of ARC's existing as- needed consulting agreement from $179,600 to $229,600. �o August 16, 2021 REEP Committee Meeting Agenda Packet- Page 46 of 69 5 Page 20 of 21 REEP COMMITTEE RECOMMENDATION The Real Estate, Environmental and Planning Committee reviewed this matter at its August 16, 2021 , meeting and ��� recommended that the Board ��� CENTRALSAN RECOMMENDED BOARD ACTIONS Conduct a public hearing on the Mitigated Negative Declaration. Barring any irresolvable public comments to the contrary, approve the proposed resolution adopting the Mitigated Negative Declaration and Mitigation, Monitoring and Reporting Program, and approving the proposed Solar Panel Array Project on Central San's Lagiss property; Authorize the General Manager to execute Amendment No. 1 to Central San's Power Purchase Agreement with REC Solar; and Authorize the General Manager to amend an existing as-needed professional consulting services agreement with ARC Alternatives, increasing the cost ceiling from $179,600 to $229,600. 12 August 16, 2021 REEP Committee Meeting Agenda Packet- Page 47 of 69 6 Page 21 of 21 QUESTIONS? CENTRALSAW August 16, 2021 REEP Committee Meeting Agenda Packet- Page 48 of 69