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6.1.G. - Page 2 The goal of the collaborative procurement process for renewable energy is to create a reduction in renewable energy generation systems costs, transaction costs and administrative time, and enhance leverage for public agencies in the negotiations of renewable energy systems. The City of Redwood City should benefit from the installation of renewable energy through sustained reductions in utilities operating costs. Based on consultant discussions, if a project is identified as feasible, staff anticipates that a Power Purchase Agreement would be the device by which the construction is financed. In general, a Power Purchase Agreement enables the City to enter into a multi-year agreement with the power provider to obtain electricity for a pre-determined rate. The intent is to obtain that power at a lower rate than would be delivered by PG&E. Negotiating for rates would be a subsequent step in the process. Any such agreement would be brought to the City Council for review and approval. Not all of the projects identified in Attachment 2 will necessarily move forward should a Power Purchase Agreement be developed. Some of the buildings may require significant improvements, such as new roofing, in order to make a 20-year investment worthwhile. To maximize the potential energy collection from each site, the early analysis generally assumes installation of a solar array on the roof of the building, as well as new structure over the surface parking lots. The cost and feasibility of each site will affect the likelihood of an energy provider offering a sufficiently valuable cost savings to the City to make the project viable. Staff continues to evaluate the specifics of each site and anticipate that these discussions will be part of any agreement with a vendor. FISCAL IMPACT There are no financial implications associated with approval of the recommended actions nor are there penalties, financial or otherwise, associated with termination of the MOU by the City of Redwood City. ALTERNATIVES Council may choose not to authorize the Memorandum of Understanding and consequently not participate in the Project. The City would not be able to benefit from the energy systems, transaction, and administrative cost reductions associated with collaborative procurement or the utility operating costs and greenhouse gas emissions reductions associated with installation of renewable energy systems. ENVIRONMENTAL REVIEW The City has not yet determined whether any of the projects identified in Attachment 2 will move forward. G�� BILL EKERN COMMUNITY DEVELOPMENT DIRECTOR