To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Power Purchase Agreements
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
Acting as the governing body of Contra Costa County, APPROVE and AUTHORIZE the Public Works Director, or designee, to execute an Amended and Restated Power Purchase Agreement between the County and MFP CO II, LLC that modifies the original power purchase agreement to (i) exclude from it both parties’ obligations with respect to a solar power facility located at 4491 Bixler Road (Bixler Facility), a site formerly owned by the County that is currently owned by the Contra Costa County Fire Protection District, and (ii) make technical corrections to improve future administration of the agreement, which continues to govern the parties’ obligations with respect to solar power facilities located at the following County-owned sites:
2530 Arnold Drive, Martinez
4549 Delta Fair Blvd., Antioch
12000 Marsh Creek Road, Clayton
4800 Imhoff Place, Martinez
2475 Waterbird Way, Martinez
2467 Waterbird Way, Martinez
As the governing body of the Contra Costa County Fire Protection District (Fire District), APPROVE and AUTHORIZE the Fire Chief, or designee, to execute a Power Purchase Agreement between the Fire District and MFP CO II, LLC, to govern the parties’ obligations with respect to the solar power facilities located at the Bixler Facility.
FISCAL IMPACT:
By carving the Bixler Facility out of the County’s power purchase agreement with MFP CO II, LLC, the County will no longer be obligated to pay for energy that is being generated by the Bixler Facility (and consumed by the Fire District). It is anticipated that the Fire District will reimburse the County for the cost of the energy generated by the Bixler Facility since the Fire District took possession of the site on or about January 1, 2024
BACKGROUND:
In October 2010, in an effort to reduce greenhouse gas emission and realize cost savings for electricity, estimated to be approximately $25,000 annually, or $500,000 over 20 years, the Board of Supervisors approved the Power Purchase Agreement [Non-New Tax Credit Project Sites] with the entity that was the original owner of the solar power equipment (the Original PPA). The Original PPA was later assigned to MFP CO II, LLC by the original owner.
Under the Original PPA, photovoltaic panels and related equipment were installed at various County-owned sites. The Original PPA covered 13 sites, including 4491 Bixler Road in Byron (the Property). The Original PPA mandates that the electricity produced at each of the sites be sold to the County.
On November 16, 2023, the County’s Board of Supervisors approved the County’s conveyance of the Property to the Fire District for use as a wildland fire training and staging area and for other firefighting purposes. The Fire District took possession of the Property in early 2024. The Amended and Restated Power Purchase Agreement between the County and MFP CO II, LLC removes the Bixler Facility from the County’s agreement with the MFP CO II, LLC. The Power Purchase Agreement between the Fire District and MFP CO II, LLC will govern the generation and sale of electricity for the Bixler Facility going forward.
CONSEQUENCE OF NEGATIVE ACTION:
The County will continue to be financially responsible for the electricity produced by the Bixler Facility.