S 7.23 16-38 Subject: Update and Recommendation Regarding The City's Solar Power Project From: Oakland Public Works Department Recommendation: Adopt A Resolution Authorizing The City Administrator Or Her Designee To: 1) Enter Into A Power Purchase Agreement (PPA) With Vanir Management, Inc. (Vanir) To Buy Solar Electricity Delivered From Equipment That Is Owned And Maintained By Vanir On Six City Facilities At A Cost Not To Exceed One Hundred Twenty Thousand Dollars ($120,000) In The First Year And Three Million Two Hundred Twenty-Five Thousand Dollars ($3,225,000) During The 20-Year Term Of The Agreement, Paid From The City Facilities Fund (Fund 4400) With Two (2) 5-Year Options To Extend The PPA Upon The Same Terms And Conditions, Only If Financially Beneficial To The City; 2) Accept And Appropriate A Project Management Reimbursement Fee From Vanir To Reimburse The City For Project Management Expenses In The Estimated Amount Of Seventy Thousand Dollars ($70,000) To City Facilities Energy Conservation Projects Fund (Fund 4450); And 3) Pay Vanir, If Costs For Pacific Gas & Electric Company Interconnection, Or For Necessary Building Upgrades, Or Other Unforeseen Conditions Arise, In An Amount Not To Exceed One Hundred Fifty Three Thousand Dollars ($153,000) In The First Year And Not To Exceed Three Million Seven Hundred Eighty Thousand Dollars ($3,780,000) During The 20-Year PPA Term, Paid From The City Facilities Fund (Fund 4400); And 4) Take The Actions Herein Without Returning To The City Council For Further Approvals.