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8.A. - Page 4 <br /> and 45% below comparable market pricing. The annual 2.5% price escalator is <br /> significantly less than the historic average PG&E price increases of 4% annually. <br /> Government Code Section 4217.12 <br /> In accordance with California Government Code Section 4217.12, staff has concluded <br /> that the total cost of the solar power generation systems provided under this PPA will be <br /> less than the anticipated cost of electricity that would have been consumed at Red <br /> Morton Community Center in the absence of the project. A Resolution incorporating the <br /> necessary section 4217.12 findings is attached. <br /> ALTERNATIVES <br /> The City could elect not to enter into the power purchase agreement and forego the <br /> financial and environmental benefits associated with installing solar panel arrays at Red <br /> Morton Community Center through the Regional Renewable Energy Project (R-REP). <br /> FISCAL IMPACT <br /> Payments under the PPA will be more than offset by the reduction in payments to <br /> PG&E for electricity usage at Red Morton Community Center. The cost benefit to the <br /> City will increase further as the cost of electricity charged by PG&E continues to rise. <br /> Because the cost of electricity has been included in the City's budget, no additional <br /> allocations are needed. Additionally, CEI Solar One, LLC. will provide 3.5% of their cost <br /> to construct the solar arrays to the City after execution of the PPA to reimburse the City <br /> for staff time associated with project management. <br /> ENVIRONMENTAL REVIEW <br /> The project is statutorily exempt from the California Environmental Quality Act (CEQA) <br /> pursuant to California Public Resources Code Section 21080.35 (exempting installation <br /> of solar energy systems on existing buildings and parking lots) and is further <br /> categorically exempt from CEQA per Sections 15301 and 15303 of Title 14 of the <br /> California Code of Regulations. <br /> VICKI SHERMAN <br /> ENVIRONMENTAL INITIATIVES COORDINATOR <br /> AUDREY SEYMOUR RAMBERG <br /> ASSISTANT CITY MANAGER <br />