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AGENDA ITEM REVIEW FORM |
5.C.
Regular City Council Meeting
- Meeting Date:
- 06/13/2018
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the third and fourth amendments to the Spear Point Energy site lease for the solar panels. (Kay Marion Macuil, City Attorney)
SUMMARY:
The City of San Luis contracted and subleased land to Spear Point for solar panels to purchase electricity for the City Hall Complex.
The San Luis City Hall Complex is on land the city leases from the Federal Bureau of Land Management (BLM). BLM required certain amendments to the city's sublease to Spear Point to site its solar panels on the BLM land. The amendments make clear that the solar panels are on BLM land and must comply with BLM requirements for public purposes and federal law. The solar panels only provide power to the City Hall Complex and so are compliant with the public purposes. Attached amendment 3 addresses BLM's concerns.
The City contracted with Spear Point to install solar panels on other land that BLM deeded (in federal language patented) to the city. The attached Amendment 4 addresses requirements that the land does not revert from the city to BLM.
Finally, if BLM charges anything for permission for the solar panels on the City Hall Complex, the City has agreed to pay anything above $1,000 per year. This agreement is documented in the side letter. This was an agreement that the City has been abiding by since 2015 as BLM has been processing this permission. Since BLM, not the city or Spear Point, is in control of these charges, this is how we agreed to share in the cost of the permission that neither party contemplated in the original sublease.
Staff recommends approval.
The San Luis City Hall Complex is on land the city leases from the Federal Bureau of Land Management (BLM). BLM required certain amendments to the city's sublease to Spear Point to site its solar panels on the BLM land. The amendments make clear that the solar panels are on BLM land and must comply with BLM requirements for public purposes and federal law. The solar panels only provide power to the City Hall Complex and so are compliant with the public purposes. Attached amendment 3 addresses BLM's concerns.
The City contracted with Spear Point to install solar panels on other land that BLM deeded (in federal language patented) to the city. The attached Amendment 4 addresses requirements that the land does not revert from the city to BLM.
Finally, if BLM charges anything for permission for the solar panels on the City Hall Complex, the City has agreed to pay anything above $1,000 per year. This agreement is documented in the side letter. This was an agreement that the City has been abiding by since 2015 as BLM has been processing this permission. Since BLM, not the city or Spear Point, is in control of these charges, this is how we agreed to share in the cost of the permission that neither party contemplated in the original sublease.
Staff recommends approval.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE THE THIRD AND THE FOURTH AMENDMENT TO SITE LEASE WITH SPEAR POINT ENERGY.
I MOVE TO APPROVE THE AGREEMENT THAT SPEAR POINT ENERGY PAY A MAXIMUM OF $1,000.00 PER YEAR AND THE CITY PAY ANY AMOUNT EXCEEDING $1,000.00 PER THAT BLM CHARGES FOR BLM PERMISSION TO ALLOW THE SOLAR PANELS ON THE CITY HALL COMPLEX.
I MOVE TO APPROVE THE AGREEMENT THAT SPEAR POINT ENERGY PAY A MAXIMUM OF $1,000.00 PER YEAR AND THE CITY PAY ANY AMOUNT EXCEEDING $1,000.00 PER THAT BLM CHARGES FOR BLM PERMISSION TO ALLOW THE SOLAR PANELS ON THE CITY HALL COMPLEX.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- Unknown
- BUDGETED AMOUNT:
- Proposed for 2017-2018 budget, $13,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Contractual Services 100 General Fund 117 City Attorney 70040 $13,000.00
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
$13,000.00 was proposed for the 2018-2019 budget because BLM charged us $13,000.00 for a BLM application fee for BLM permission for the solar panel site. At that time, the City paid the bill and Spear Point reimbursed the city for half ($6.500.00). BLM determines its fees based on their staff time, so it is not possible to know ahead of time what will be charged.