07-18-2014 BPU RPT 06 - Laserfiche WebLink

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ISSUE: The item for Board of Public Utilities consideration is approval of the Development Agreement between Cities of Riverside (' ity") and Colton ("Colton") for the proposed Pellissier Ranch Solar Project ("Project"), RECOMMENDATION: That the Board of Public Utilities recommend that the City Council approve the Development Agreement with Colton for the proposed Project including participation in the development phase, and to the extent the Project proceeds, up to a 30% share of the Project output, BACKGROUND: Pellissier Ranch consists of 227-acres of vacant land in Colton, owned by Riverside Public Utilities (RPU), contiguous to the City's northern boundary. Last year, staff completed a preliminary assessment of future water and electric infrastructure needs and identified Pellissier Ranch as the ideal site for several key elements, including- (a) groundwater replenishment and production facilities; (b) local renewable resources to serve future load growth while meeting state mandates for renewable and distributed generation resources; and (c) new distribution substation to serve the City's future electric load growth. On December 20, 201, the Board of Public Utilities approved Work Order No, 1410983 in the amount of $250,000 for the preliminary design, electri.- distribution studies and the California Environmental Quality Act, (CEQA' analysis and report, for the first phase of the development of the Project, which entails approximately 100 acres for a 10 megawatt (MW) solver photovoltaic (PV) facility. On March 21, 2014, the Board of Public Utilities approved a Professional Services Agreement with HDR Engineering in the amount of $177,714.91 to prepare the Project's CEQA document. In early April, HDR initiated the biological surveys and technical studies-, and on June 24, 2014, released a Notice of Preparation for public review. HDR expects to have a Final EnvironmenW Impact Review (EIR) certified by the City Council in early 2015, The Project will be managed by various RP U divisions: (a) Water Division is managing the CEQA- related work; (b) Power Resources will manage the process to secure a Project developer and negotiate the Power Purchase Agreement; and (c) Energy Delivery will manage the design and construction of the interconnection facilities. Staff apprised Colton Electric Utility of Riverside's intent to develop the Project early in the process, Colton Electric Utility is interested in a 30% share of the Project output. 11"he attached Development Agreement enables C-Polton's participation in, and payment of costs related to, the Project,