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Supervisors consider community choice aggregation program to reduce power costs for county residents, businesses
LAKEPORT, Calif. – On Tuesday the Board of Supervisors is set to consider a contract with a Windsor-based firm to provide a program that would allow the county to save residents money on power costs while increasing the mix of renewable and green power that's used locally.
The agreement with California Clean Power Corp. is timed for 9:20 a.m. during the board's meeting on Tuesday in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport.
California Clean Power Corp., http://cacleanpower.com/ , is offering the county community choice aggregation services. Community choice aggregation, which was set up under state law, allows jurisdictions like counties and cities to purchase or generate electricity for businesses and residents, while power continues to be delivered through existing utility systems by investor-owned utilities like Pacific Gas and Electric.
Last week, the board heard a presentation by Peter Rumble, chief executive officer of California Clean Power Corp., on the proposal. The discussion starts two hours and 47 minutes into the video shown above.
He explained that the genesis of community choice aggregation programs was the energy crisis in 2000; the state's goal was to use community choice to protect communities in a market dominated by PG&E. Rumble said currently there are programs in Sonoma and Marin counties, and the city of Lancaster.
His company was formed after a team of experts – which now composes its leadership – saw a great need for a company to help communities establish their own community choice aggregation programs.
“Community choice is the ability for local communities to control where their energy comes from,” and isn't about creating generation assets or becoming a power company, he said. “The delivery of power remains exactly the same.”
The transition is seamless, said Rumble. “The only thing you get is lower rates, cleaner power and money that stays in the community.”
His company generated a feasibility report for the county to consider. California Clean Power won't require the county to go out and get financing for startup costs or ongoing infrastructure operation. He said all of that infrastructure is provided under the proposed public-private partnership.
Rumble said the Board of Supervisors would control the benefits, determine the mix of renewable power and control the revenues that come in from the program. There would need to be at least one annual meeting to set rates.
In Lake County's case, Rumble said his firm is proposing rates for Lake County residents that would be 2-percent below PG&E's rates. Those lower rates – set for the life of the proposed 10-year contract – would equate to $750,000 a year in savings, Rumble said.
In addition, the county would get a 33-percent renewable power mix in its energy portfolio, which he said would put it about five years ahead of state mandates to increase renewable power use.
As part of the contract, the county would be guaranteed to receive $2 million annually in revenue, with Rumble explaining that those funds would be unrestricted. In the case of Marin and Sonoma counties, Rumble said they have chosen to channel those funds into energy efficiency program.
If the board approves the contract, Rumble said that beginning this December and into the early months of 2016 his firm would get a program up and running that's specifically tailored to Lake County's needs.
Rumble's firm will oversee the program's ongoing operation, including regulatory filings, and handle public outreach. “There’s a lot of day-to-day that goes into operating a community choice program.”
He said his firm makes money if it does a good job managing the program. The company takes on the market risk by contractually guaranteeing the county's benefits.
Even in the worst case scenario – in which California Clean Power goes away – county residents and businesses would simply return to the existing service with PG&E, with no penalties or repercussions, Rumble said. “You really are taking on very, very little risk.”
Board Chair Anthony Farrington said county staff has been working to shape a proposal. He asked what's not to like about reducing utility rates for ratepayers, moving from fossil fuels to at least 33 percent renewable and green energy, and giving local geothermal and solar sources priority, with the county able to consider doing its own energy project down the line.
He said the $2 million in estimated revenue was “very historic,” adding, “This is a very big, broad, bold vision.”
Supervisor Jim Comstock asked if the power can be purchased from anywhere. Rumble said yes; he added that the county can prioritize purchasing power from local resources and isn't obligated to purchase it from PG&E.
Supervisor Jim Steele said he was concerned about the proposal moving forward too fast, with not enough public input. “We need a public engagement effort. I would not want to go forward next week.”
He said he saw a conflict of interest with Rumble's firm completing the feasibility study, with Rumble replying that they worked hard to present an impartial feasibility report. Regarding community engagement, Rumble said his company was happy to move forward in the way the county wanted. “This is really your call, your program.”
Steele said during the discussion that he was taking the stance based on his community outreach efforts. “The board gets criticized a lot for what he public doesn’t understand, and this is a huge change in direction for the county.”
Farrington questioned at what point in time Steele would decide there was enough public outreach, adding the program has been analyzed by county staff and there exists an opt-out component to program for residents who don’t want reduced utility rates.
Steele said the devil is in the details. “This just looks too smooth, that’s all that I'm saying.”
He asked Rumble what outreach effort took place in other counties. Rumble said Sonoma and Marin counties undertook “multiple year” community engagement efforts, but Lancaster's was much quicker, lasting under a year.
Steele wanted Rumble to commit to a town hall meeting in each of the five supervisorial districts, which Rumble said he would do, but Farrington raised issue with whether there would be such town halls held in districts other than Steele's.
He said approving the agreement didn't end public engagement, with Steele replying that public input needed to take place before it came back to the board. “This just seems like the kind of thing that gets us in trouble,” Steele said.
Supervisor Jeff Smith called the proposal a “no-brainer,” adding that his constituents elected him to look for ways to save money whenever possible. As such, he wanted to move forward quickly to prevent his constituents from losing savings.
“We could take everything that comes before us and completely vet it and i don’t think we’d get anything done,” Smith said.
Comstock said he wouldn't have supported the plan if it meant adding a large number of staff to run the program, and noted that he thought the opt-out provision was “huge.”
Supervisor Rob Brown said the program would allow the county to support Calpine and The Geysers geothermal steamfield by purchasing power from the company.
Brown said he was prepared to move forward. “I don’t want to minimize public input at all, but I've also seen how it works just the opposite. we could be here two years from now still having this discussion,” he said, adding he's not willing to let that happen.
Running a quick calculation based on the projected savings, Brown said Lake County residents and businesses pay $37 million a year for utilities. “I’m not waiting for them to save money. We need to do this as soon as we possibly can.”
Special Districts Administrator Mark Dellinger told the board that he's been involved with the program review, and he noted that the county government is one of the largest consumers of electricity in Lake County. At the same time, it also owns one of the largest public solar installations.
He said California Clean Power has technical expertise to help the county dig in and look at purchasing its solar facilities, which in turn would allow the county to generate surplus power and make it available locally.
“It’s a significant thing from my perspective,” Dellinger said.
Brown said the program offers an opportunity for county facilities and schools to have further reduced rates, with Farrington adding that there also is the opportunity for the cities of Clearlake and Lakeport to implement similar programs.
Lakeport resident Heather Powers wanted there to be a community engagement process, adding there should be a lot of investigation. Farrington responded that he was comfortable moving forward because of the opt-out option.
Steele said he wanted to hold at least one town hall in his district before moving forward. Farrington asked him about his conflict concerns regarding California Clean Power's feasibility study.
“Read the feasibility study,” Steele said.
“I did,” Farrington replied.
“We have consultants and contractors come before this board all the time providing their own analysis. You’ve done that,” Farrington said, referring to Steele's work as a consultant for the county on quagga and zebra mussel prevention before he ran for office.
“I did not come to this county with any proposal. The county came to me and asked me. That’s a difference,” said Steele.
Farrington replied, “How many town hall meeting did we have?”
Steele insisted that the county came to him. “I did not,” Farrington said.
“The hell you didn’t,” said Steele, adding he should ask Water Resources Director Scott De Leon. “He was the one who did. And by the way, I didn't take any pay for that.”
Comstock asked if residents can opt out at any time, “The short answer is yes,” said Rumble, noting there are some windows for opting in and out based on how the program was set up by the state to work.
Rumble noted during the discussion that the community choice program “is very, very popular, no matter where it’s at.”
County Administrative Officer Matt Perry told the board that the ordinance would need two readings, so the soonest it could be approved was two weeks out – putting final approval possible at the board's first June meeting.
Brown, Comstock, Farrington and Smith agreed by consensus to have the proposed ordinance brought back for its first reading on Tuesday.
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Board of Supervisors to host swearing-in ceremony, discuss power purchase ordinance
LAKEPORT, Calif. – This week the Board of Supervisors will host a swearing-in ceremony for a new sheriff's staffer and consider an ordinance implementing a community aggregation program for electrical power purchases in the unincorporated county.
The board will meet beginning at 9 a.m. Tuesday, May 26, in the board chambers on the first floor of the Lake County Courthouse, 255 N. Forbes St., Lakeport.
The meeting can be watched live on Channel 8 and online at http://www.co.lake.ca.us/Government/Boards/Board_of_Supervisors/calendar.htm . Accompanying board documents, the agenda and archived board meeting videos also are available at that link.
At 9:06 a.m., the board will host a swearing-in ceremony for newly hired Correctional Officer Christine Kawski.
At 9:20 a.m., the board will consider an ordinance authorizing the implementation of a Community Choice Aggregation Program for electrical power purchase, including renewable energy, for residents and businesses in the unincorporated area of Lake County.
The board voted last week to bring back the ordinance for consideration.
The full agenda follows.
CONSENT AGENDA
7.1: Approve third amendment to the agreement between the county of Lake and Redwood Community Services Inc. for the Lake County WRAP Program, Foster Care Program and the Intensive Treatment Foster Care (ITFC) Program for Specialty Mental Health Services for Fiscal Year 2014-15, to increase the contract by $150,000 for a total of $500,000 and authorize the chair to sign.
7.2: Approve second amendment to agreement between the county of Lake and Rebekah Children's Services for FY 2014-2015 Specialty Mental Health Services, a decrease of $42,000 for a new contract maximum of $33,000, and authorize the chair to sign.
7.3: Adopt resolution amending Resolution No. 2014-111 to amend the Adopted Budget for FY 2014-15 by making adjustments to the District Attorney Budget Unit 2110 to appropriate unanticipated revenues of $15,000 to account 38.00 for Internet access and tablets.
7.4: Adopt resolution amending Exhibit "A" to the County Conflict of Interest Code.
7.5: Approve first amendment to agreement between the county of Lake and Jacqueline Benjamin, M.D. for FY 2014-15 Pathology Services, an increase of $10,350, and authorize the chair to sign.
7.6: Approve agreement between the county of Lake and HARC Enterprises, to provide a Domestic Violence Educational Program at the Lake County Jail/Hill Road Facility, in the amount of $12,000 and authorize the chair to sign.
7.7: Approve purchase of professional services for phone system software upgrades through State CMAS contract from Nexus IS in the amount of $11,392.23 and authorize chair to sign statement of work, and authorize IT director to issue purchase order.
7.8: Approve destruction of documents prior to 2009.
7.9: Sitting as the Lake County Watershed Protection District, Board of Directors, adopt resolution authorizing the Lake County Watershed Protection District to File Grant application in the amount of $42,700 and approve signature authorization to execute agreement for a US Fish and Wildlife Service Aquatic Conservation Grant for the Quashing the Quagga in Lake County to Prevent Mussel Establishment and Movement Project.
TIMED ITEMS
8.2, 9:06 a.m.: Swearing-in ceremony for newly hired Correctional Officer Christine Kawski.
8.3, 9:15 a.m.: Hearing, nuisance abatement assessment confirmation and proposed recordation of notice of lien in the amount of $34,357.34, for 17777 Morgan Valley Road, Lower Lake, CA (APN 012-045-21 - Han Rattavanong).
8.4, 9:20 a.m.: Consideration of an ordinance authorizing the implementation of a Community Choice Aggregation Program for electrical power purchase, including renewable energy, for residents and businesses in the unincorporated area of Lake County.
NONTIMED ITEMS
9.2: Consideration of the Following Appointments: Fish and Wildlife Advisory Committee IHSS Public Authority Advisory Committee Lake County/City Areawide Planning Council (APC) Parks and Recreation Advisory Board Spring Valley CSA #2 Advisory Board.
9.3: Consideration of recommendations of the Classification and Compensation Committee.
CLOSED SESSION
10.2: Public employee evaluations: Community Development Director Rick Coel, Public Works/Water Resources Director Scott De Leon.
10.3: Conference with legal counsel: Existing litigation pursuant to Gov. Code Section 54956.9 (d)(1) Gamino and Cruz v. County of Lake, et al.
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Clearlake City Council to consider approving contract with new city manager candidate
CLEARLAKE, Calif. – The Clearlake City Council has concluded the process to select a new city manager, whose employment contract will be on the council's agenda next week for final approval.
Greg Folsom has been chosen to succeed City Manager Joan Phillipe, who is retiring June 30.
Folsom will bring to Clearlake 20 years of senior local government experience in planning, economic development and project implementation, the city of Clearlake reported.
Clearlake officials reported that Folsom has worked with economic development corporations, collaborated with visitor bureaus and winegrower associations on tourism promotion, successfully attracted retail shopping developers, developed facade improvement and downtown financial incentive programs, and managed redevelopment projects.
“All of this experience falls right into what the city is currently working on and will enable us to continue moving forward with the momentum that we have worked on building over the last few years,” said Clearlake Mayor Denise Loustalot.
Since February 2014, Folsom has been deputy director of economic development for Riverside County and in January was appointed as a planning commissioner for the city of Menifee, according to a statement from that city.
He also previously worked as an enterprise zone tax credit specialist and spent 18 years with the city of Stockton, where he was deputy director of economic development.
With Folsom's extensive economic development experience in the city of Stockton and Riverside County, the city of Clearlake is looking forward to active business recruitment, Loustalot said.
Folsom holds a bachelor's degree in business administration and finance with a minor in economics from San Jose State University, and a master's of business administration degree in finance from the University of Southern California's Marshall School of Business.
Folsom and his wife plan to relocate to Clearlake, where he will begin work on June 15.
Phillipe, who has been with the city since October 2011, submitted a Jan. 15 letter informing the council of her plans to retire, with the city beginning the recruitment for her successor nor long afterward, as Lake County News has reported.
Phillipe's report to the council for its May 28 meeting explained that the city received 28 applications for her job. Those applications were given a thorough review by an ad hoc committee composed of Phillipe, Loustalot, Councilman Russ Perdock, Clearlake Planning Commission Chair Carl Webb and Supervisor Jeff Smith.
Of the 28 initial applicants, Phillipe said six were chosen for interview. Preliminary background checks were completed on those six individuals, five were selected for interview and one person withdrew from consideration.
A second panel – who Phillipe said was made up of Clearlake Police Chief Craig Clausen, City Clerk Melissa Swanson and Public Works Director Doug Herren, along with Smith, Webb, Sheriff Brian Martin and retired County Administrative Officer Kelly Cox – interviewed the four final applicants, recommending the person who they felt to be most qualified.
“Following a thorough background check, the Council determined that Greg Folsom was the person to be the city's next city manager,” Phillipe said in her report.
Phillipe's report noted that Folsom's experience in economic development – which is one of the city's four priorities – was one of the key qualifications in selecting Clearlake's new city manager.
If approved by the council, Folsom's proposed contract will go into effect on June 15, providing a three-week transition period in which he can work with Phillipe, according to her report.
The contract calls for compensation totaling $110,000 a year plus benefits, which Phillipe said is budgeted in the 2015-16 fiscal year; a three-year contract term; and an annual performance review.
She said Folsom is scheduled to be at the May 28 council meeting to introduce himself.
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City of Lakeport celebrates new docks
LAKEPORT, Calif. – A drenching late spring rain greeted community leaders and residents as they gathered Thursday evening to celebrate the new docks at Library Park.
Lakeport had been hit by a downpour earlier in the day, with more rain returning and continuing steadily through the brief ceremony to mark the installation of the new docks, which took place at the end of April.
Mayor Martin Scheel, standing in the park gazebo along with the band the LC Diamonds, greeted the several dozen people – and a few ducks – who gathered for the event.
Scheel thanked city leaders and residents, the Lakeport Main Street Association, the Chamber of Commerce and the Lakeport Rotary, the latter having donated $10,000 toward the dock project.
He then led the group over to the entrance to the docks, where he wielded the big pair of ceremonial scissors and cut the ribbon before it got too soggy.
“This has been a long time coming,” Scheel told Lake County News of the docks project after the ribbon-cutting.
Scheel said the city already is getting positive feedback about the new aluminum docks, which replaced wooden docks that had been estimated to be about 30 years old and needed to be regularly rebuilt by city Public Works staff.
The Lakeport City Council had kept money for the docks in its capital expenditures budget, and last fall settled on The Dock Factory and Supply Co., based in Lakeport, as the supplier.
City Manager Margaret Silveira said at a council meeting earlier this month that the council had considered the new dock installation a top priority for this fiscal year.
The purchase order the council approved unanimously in January totaled $226,336.43 for more than 300 feet of dock, along with a new swim ladder, gangway and pile guides.
The city is hoping that the new docks will help reattract visitors and events that had chosen not to visit Library Park because of the old docks' condition and concerns about damage to boats.
The new docks are in place in time for what city leaders are hoping will be a busy summer.
As Scheel pointed out on Thursday, Clear Lake is higher than it was at this time last year, and the city is hoping to draw visitors who will find that the lake has plenty of water for summer water sports, in contrast to other lakes and reservoirs with lagging levels around the rest of Northern California.
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