 |
AGENDA ITEM REVIEW FORM |
5.C.
Regular City Council Meeting
- Meeting Date:
- 12/09/2015
- 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 items regarding payment of claim to BLM for the placement of the solar panels at City Hall, Police Station, and Fire Station. (Kay Marion Macuil, City Attorney)
SUMMARY:
Background
The City of San Luis powers its City Hall, Police Station, and Fire Station with the electricity generated from the solar panels owned in part by a company called Spear Point. The power is used only for City in its 3 buildings. The 3 buildings sit on BLM land and federal law requires that all uses of the land be for government purposes.
BLM Claim
BLM is requiring Spear Point to pay a lease payment. Although the power from the solar panels is only used for government purpose in that the power is for the City buildings, BLM's claim is that Spear Point owns the solar panels and sells electricity to San Luis. Neither the City nor Spear Point obtained permission of BLM prior to the panel installation. BLM investigated the nature of the solar panels and the applicable laws and determined a lease payment was due and reimbursement of its time to investigate the matter needed to be made. BLM's claim to the City and Spear Point is for their costs of the investigation at $5,488.45 and the rent in the amount of $3,515.07 since installation of the solar panels in June of 2014 to the present month December 2015 The City will pay the investigation cost of $5,488.45 and Spear Point is to pay the rental of $3,515.07 and going forward.
The attached letter from BLM shows their calculations.
The City of San Luis powers its City Hall, Police Station, and Fire Station with the electricity generated from the solar panels owned in part by a company called Spear Point. The power is used only for City in its 3 buildings. The 3 buildings sit on BLM land and federal law requires that all uses of the land be for government purposes.
BLM Claim
BLM is requiring Spear Point to pay a lease payment. Although the power from the solar panels is only used for government purpose in that the power is for the City buildings, BLM's claim is that Spear Point owns the solar panels and sells electricity to San Luis. Neither the City nor Spear Point obtained permission of BLM prior to the panel installation. BLM investigated the nature of the solar panels and the applicable laws and determined a lease payment was due and reimbursement of its time to investigate the matter needed to be made. BLM's claim to the City and Spear Point is for their costs of the investigation at $5,488.45 and the rent in the amount of $3,515.07 since installation of the solar panels in June of 2014 to the present month December 2015 The City will pay the investigation cost of $5,488.45 and Spear Point is to pay the rental of $3,515.07 and going forward.
The attached letter from BLM shows their calculations.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE BLM'S CLAIM FOR INVESTIGATION COSTS OF $5,488.45.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $5,488.00
- BUDGETED:
- No
- AVAILABLE TO TRANSFER:
- N/A
- ACCOUNT #/REMAINING BALANCE:
- $9,365
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Since this item was not budgeted, the Police Department is the only Depart among the 3 buildings which has sufficient budget to cover this item.
Police Department: Solar Power Account # 100-181-80051