HomeMy WebLinkAboutAmber Kinetics - Energy Storage Study - 2016ENERGY STORAGE ECONOMIC FEASIBILITY ANALYSIS
referred to as "Fresno" or the "City"), and
Amber Kinetics, lnc., a California corporation ("Amber Kinetics"). City and Amber are
sometimes collectively referred to in this Agreement as the "Parties" or singularly as a
"Party" or by their individual names.
RECITALS
A. Amber Kinetics is in the business of developing kinetic energy
storage technologies and products; and
B. The City owns, operates, and maintains
wastewater utility; and
a water utility and a
C. The City's water utility and wastewater utility are both generators
and users of electricity; and
D. The City wishes to determine the feasibility of reducing electricalpower costs for the water utility and wastewater utility through the impleméntation of
Amber Kinetics' kinetic energy storage technologies and products at the Fresno-Clovis
Regional Water Reclamation Facility site; a public water supply well site; and a sufface
water treatment facility site; and
E. Amber Kinetics has special expertise in the cost-effective
manufacturing and development of projects utilizing multi-hour electricity storage and
renewable energy technologies such as wind and solar.
NOW, THEREFORE, in consideration of the mutual covenants contained in this
Agreement and in these Recitals, which are hereby incorporated by this reference, City
and Amber Kinetics hereby agree as follows:
1- Economic Feasibilitv Studv. Amber Kinetics hereby agrees tofund an economic feasibility analysis ("Feasibility Analysis"), also known as a tariff
analysis, of customer-side meter flywheel energy storage at three sites owned and
operated by the City: (a) the Fresno-Clovis Regional Water Reclamation Facility site;(b) a public water supply well site, and (b) a surface water treatment facility sité. An
independent, third-party consulting company acceptable to City shall pérform the
Feasibility Analysis with assistance from Amber Kinetics concerning the potential use of
technology owned by Amber Kinetics. The Feasibility Analysis wilL review one (1) yearof main interval meter data for three sites selected by the City, including 'ón-site
generation, and model PG&E electric bill savings from energy and demand time shifting,
to calculate an optimally-sized, energy storage system using Amber Kinetics' four 1+)-hour discharge flywheel system. The Economic Feasibility Analysis will take into
account the existing "Time Of Use" electricity rate schedule (energy and demand rates);
along with any demand reduction tariffs that the City is enrolled in with pG&E. Fresnó
shall own and have exclusive use of Feasibility Analysis upon completion.
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2. Amber Kinetics Offer. Once the Economic Feasibility Analysis is
complete, Amber Kinetics will provide City with offers for the three sites studied based
on Amber Kinetics' most competitive, discounted commercial and industrial pricing for
both a demonstration-scale facility and a facility size determined by the Economic
Feasibility Analysis to have the greatest net savings, using net present value (NPV) or
another evaluation metric provided by the City. Amber will provide pricing based both
on equipment-only and a turnkey system installed at three sites utilizing its safe,
sustai nable flywheel system.
3. Non-Binding. Nothing in this Agreement shall be interpreted to
bind the City to accept the offer or offers provided in Paragraph 2 above. The Parlies
agree that neither Party shall be liable to the other for any costs incurred by the other
Party as a result of this Agreement, including but not limited to costs related to staff time
or expenses, or any opportunity costs incurred by either Party as a result of this
Agreement.
4. Miscellaneous.
(a) Notices. All notices required or permitted by this Agreement shall
be in writing and may be delivered in person or sent by mail, facsimile transmission, or
electronic transmission (email). The addresses and addressees noted below are that
Party's designated address and addressee for delivery or mailing of notices.
To City: Thomas C. Esqueda, Director
City of Fresno
2600 Fresno Street
Fresno, CA93721
Telephone: (559) 621-8610
Facsimile: (559) 498-1 304
Email : Thomas. Esqueda@Fresno.Gov
To Amber Kinetics: Bill Barnes
Managing Director Development
Amber Kinetics, lnc.
32920 Alvarado-Niles Road, Suite 250
Union City, CA 94587
Telephone: (a1 5) 21 8-3935
Facsimile: (510) 474 1000
Email : bbarnes@amberkinetics.com
With copy to: Christopher L. Campbell
BAKER MANOCK & JENSEN, PC
5260 N. Palm Avenue, Suite 421
Fresno, California 93704
Telephone: (559) 432-5400
Facsimile: (559) 432-5620
Email. Cça¡npbel l@bakermanoct
Either Party may, by written notice to the other, specify a different address for notice.
1746429v1 / 19040.0001
(b) Entire Agreement. This Agreement and items incorporated herein
contain all of the agreements of the Parlies with respect to the matters contained herein,
and no prior agreement or understanding pertaining to any such matter shall be
effective for any purpose. The Parties further warrant and represent that they have not
relied on any inducements, promises, or representations made by any Party or its
representative, or any other person, except for those expressly set forth herein.
(c) Amendments. No provisions of this Agreement may be amendedor modified in any manner whatsoever except by an agreement in writing duly
authorized by representatives of both Parties.
(d) Counterparts. This Agreement may be signed by the Parties in
different counterparts, which together shall constitute one Agreement, even though all
Parties may not have signed the same counterpart.
lN WITNESS WHEREOF, the Parties have executed this Agreement as of the
day and year first above written.
GITY AMBER KINETICS
City of Fresno, a municipal corporation Amber Kinetics, lnc., a california
corporation
City Manager
ATTEST:
WONNE SPENCE, CMC
City Clerk
anaging Director
APPROVED AS TO FORM:
DOUGLAS T. SLOAN APPROVED AS TO FORM:
Ed-a.,d (J.iAo
CÐØ ßoa"À '\{c"r"b¿cM. Collet
Deputy City Attorney
t746429vt / 19040.0001