Two issues were brought out in the recent Free Lance article regarding my trip to China in July 2011. The first issue deals with my accepting travel expense for my wife and the second issue is my relationship with Clear Spot Inc.
Regarding the issue of my wife’s travel, I admit I made a mistake. However it was an honest mistake and, in no way, was I attempting to evade FPPC regulations. If that were the case, I never would have reported the reimbursement on my 700 form. In order to correct my mistake, I filed an amended 700 form and returned half of my reimbursement to CleanFocus.
As to my relationship with ClearSpot, I wish to set the record straight. There is a perception among some of the Free Lance current and former Editorial Board members that I had some relationship with ClearSpot prior to the City’s discussions regarding the possibility of building a solar plant at the wastewater treatment plant. There is a perception among some of the Free Lance current and former Editorial Board members that I received some personal benefit from the contract with ClearSpot. Nothing could be further from the truth. Below are the facts.
I became very interested in alternative energy, particularly solar, during 2008. I did research on a program in Berkeley called Berkeley First which made it possible for homeowners to install solar facilities in their homes with no upfront cost. Basically the program consisted of a voluntary Community Service Area whereby homeowners paid for the solar equipment through assessments on their property tax over a number of years. I had discussions with a number of City staff regarding the possibility of a similar program for Hollister. During the same time period ClearSpot was looking at possible sites for solar plants with power purchasing agreements in California. They realized that San Benito County has ideal conditions for solar and asked for a meeting with the City Manager, City Engineer and, I believe, Community Services Director. Since staff knew that I was an advocate for solar power, I was invited to the meeting. That meeting (sometime in early 2009) was the first time I had heard of ClearSpot.
Yes, it is a fact that I was an advocate of ClearSpot’s proposal. They proposed a three stage program consisting of construction of the power plant, a job training element for the solar industry and the possibility of a revenue generating plant to be built in the future. They also guaranteed that local labor would be used for all jobs. In fact only local labor was used. They partnered with Rosinden Electric, a company that has completed many large solar projects in the Bay Area. At the time, Solargen was still on the drawing board and there was a distinct possibility that San Benito County could be a leader in both solar production and solar technology. The revenue generating portion required legislation at the State level and ClearSpot had a law firm working that legislation.
It is true that the City did not solicit an RFP for the solar project and we were not required to do so. However, three other alternatives considered. I met with Ignacio Velasquez informally on two occasions to discuss the possibility of his company doing the project. City Manager Clint Quilter also met with Mr. Velasquez. Mr. Velasquez proposed that the City use seven million dollars of redevelopment funds to fund the project and we would own the project. That idea is exactly what got RDAs across the State in trouble. I did not believe it was legal to use RDA funds for this project. The City Manager and I met with another local solar company, Blue Line Power. That company indicated that, while they have done a number of commercial projects, they did not have the capacity to build a plant of that size. A fourth company submitted a written proposal that actually was less costly than ClearSpot, but they would not use local labor and were not interested in either of the other stages proposed by ClearSpot. So, yes, I advocated for the contract with ClearSpot because I thought it was the best overall for the community.
Ironically, at the end of the Council meeting in January 2010 when we approved the ClearSpot contract, Marty Richman came up to me and had nothing but great things to say about the deal! “No risk to the City” and “a very smart idea” is what I recall him saying!
Now back to my China trip. To speculate that my trip was some ‘reward’ or ‘thank you’ is pretty far-fetched. CleanFocus was aware of the Hollister project and, at a trade show, asked a ClearSpot principal for the name of a person who could, from experience, speak to the details of the agreement and the benefits/disadvantages of a power purchase agreement.
Looking back, I advocated for a project that I believed, and still believe, was good for the community. I made a mistake, but I am not withdrawing from the mayoral race. If elected, I will continue to pursue those issues which I believe are a benefit to the community.
Doug Emerson, Hollister
