DATE: August 25, 2026
TO: Board of Supervisors
SUBMITTED BY: Edward Hill, Chief Operating Officer/Interim Director of General Services
SUBJECT: Change Acknowledgement to Energy Services Agreement
RECOMMENDED ACTION(S):
TITLE
Approve and authorize the Chairman to execute a Change Acknowledgment to Energy Service Agreement No. A-23-677, amending the scope of the photovoltaic energy project and construction timeline.
REPORT
There is no additional Net County Cost associated with the recommended action, which will authorize a Change Acknowledgment (formerly referred to as “Change Order”) to amend the scope of Energy Service Agreement (ESA) No. A-23-677 with Greenskies Clean Energy LLC (Greenskies) addressing updates relating to the project’s construction timeline for the solar project in progress at 5555 E. Olive Avenue (known as the Olive Campus). This item pertains to a location in District 3.
ALTERNATIVE ACTION(S):
There is no viable alternative action for the recommended action that would not prevent termination of the ESA and the related solar project. Should your Board not approve the recommended action, staff would return before your Board with recommendations relating to the termination of the ESA as the Change Acknowledgment is required to complete the project.
FISCAL IMPACT:
There is no additional Net County Cost associated with the recommended action, which will update the project timeline under the ESA for the Olive Campus project. The recommended Change Acknowledgement has no monetary impact on the proposed purchase price per kilowatt hour (kWH) for energy generated, or the termination values, for the project. Costs associated with the ESA will be charged back to the Department of Behavioral Health. Sufficient appropriations and estimated revenues will be included in the General Services Department-Facility Services Org 8935 FY 2026-27 Recommended Budget and will be included in future Recommended Budget requests for the duration of the ESA term.
DISCUSSION:
On December 13, 2022, the Board approved a non-binding Letter of Interest (LOI) authorizing FFP BTM Solar, LLC (ForeFront Power) to evaluate ten County facilities for solar feasibility. For the seven sites determined to be feasible, ForeFront Power submitted interconnection applications to PG&E on behalf of the County, securing grandfathered eligibility under the California Public Utilities Commission’s Net Energy Metering (NEM) 2.0 tariff prior to the April 14, 2023, deadline. This preserves NEM 2.0 status for 20 years from the date of operation, provided the systems are deemed operational by April 14, 2026, or February 15, 2027, for load-aggregated (NEMA) sites.
On December 12, 2023, the Board held a public hearing determining that the terms of the Energy Service Agreements (ESAs; County Agreement Nos. A-23-675 through A-23-681) with ForeFront Power were in the best interests of the County, as the anticipated costs for electrical energy or conservation services to be provided by the solar photovoltaic energy systems would be less than the County’s anticipated marginal costs for the purchase of energy in absence of the ESAs. The ESAs allow ForeFront Power the ability to design, construct, install, operate, and maintain seven separate Systems located at (1) Animal Control at 1510 W. Dan Ronquillo Drive, (2) the Area 2 Sheriff Substation at 1129 N. Armstrong Avenue, (3) the to-be constructed Olive Campus (labeled “Behavioral Health and Mental Health” in the ESA) located at 5555 E. Olive Avenue, (4) Hamilton Yard for multiple buildings at the corner of S. Maple and E. Hamilton Avenues, (5) the Health and Wellness Center at 1925 E. Dakota Avenue, (6) Pontiac Building 6 at 333 W. Pontiac Way, and (7) the Woodward Regional Library at 944 E. Perrin Avenue. Each ESA has a possible 25-year term, inclusive of a 20-year initial term and one optional five-year renewal period, as well as the ability for the County to purchase each System after the fifth anniversary of the Guaranteed Commercial Operation Date (COD).
On March 17, 2026, your Board approved nine documents: an Omnibus Amendment to ESAs (Omnibus Amendment), seven individual Change Orders for each ESA, and an Assignment and Consent to Assignment of Project Documents and Acknowledgement (Assignment). The Omnibus Amendment extended the potential term of each ESA by adding up three optional five-year extensions for a total term length of up to 35 years, aligned construction timelines for the Hamilton Yard and Olive Campus projects with NEMA-related deadlines, and clarified requirements surrounding System insolation and water access at all seven sites. The Change Orders revised the scope for all seven projects, addressing unforeseen conditions including: canopy height increase, permanent casings for canopy beam support, American with Disabilities Act compliance, updates to the Construction Start Dates and Guaranteed COD, and incorporation of existing canopy structures at the Area 2 Substation. With exception of the Area 2 Substation ESA, the Changes Orders also increased the PPA rates and termination values for the remaining six locations. Lastly, the Assignment transferred all rights, obligations, and duties from ForeFront Power to Greenskies as Greenskies assumed responsibility for the development, design, procurement, construction, operation, maintenance, and ownership of all the Systems.
On June 16, 2026, your Board approved five Consent to Collateral Assignment of Solar Project Documents and Equipment Subordinations (Collateral Assignments) to acknowledge the financing structure between Greenskies and KeyBank National Association for the Animal Control, Area 2 Substation, the Health and Wellness Center, Pontiac Building 6, and Woodward Library ESAs. Staff will return before your Board at a later date to request Collateral Assignments for the Hamilton Yard and Olive Campus locations once these projects are closer to commercial operation.
The recommended Change Acknowledgment incorporates scope revisions for the Olive Campus project, addressing unforeseen conditions encountered during the County’s own construction on site, including delays to the parking lot repaving and restriping, and switchgear acquisition required for interconnection (Site Renovations). Approval of the first recommended action, via execution of the Change Acknowledgement, will also address delays in Site Renovations as the original Change Order for the Olive Campus included terms stating that all Site Renovations would be completed around June 2026. To date, the Site Renovations are still ongoing from the unforeseen delays encountered during the County’s construction. Updating the Guaranteed Construction Start Date will allow Greenskies to begin construction of the System prior to the County completing the Site Renovations. In the recommended Change Acknowledgment, the County agrees that Greenskies may mobilize for construction no later than September 21, 2026, to keep with timelines required to keep NEMA PPA rates for the site, allowing construction to continue without completion of the Site Renovations.
REFERENCE MATERIAL:
BAI #58, June 16, 2026
BAI #25, March 17, 2026
BAI #8, December 12, 2023
BAI #49, December 13, 2022
BAI #5, February 4, 2020
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Change Acknowledgment to ESA No. A-23-677
CAO ANALYST:
Amy Ryals