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HomeMy WebLinkAboutCM Power Purchase Agr.; SolEd Benefir Corp 2014 PPTL -j Solar Installation on City Facilities City Council Action QoCr%l ution to approve Power Purchase Agreement form and schedule a public hearing to consider authorizing the City Manager to execute site specific Power Purchase Agreements with SolEd Benefit Corporation !sentation Outline 1. Project Background 2. Proposed Sites 3. Economic Analysis 4. Legal and Other Considerations 5. Next Steps r\ . • Project Team ■ SEED Fund o Strategic Energy Innovations o O pto ny ■ Preferred Vendor Team o Sunetric .� o SolEd Benefit Corporation 4 o Danlin Solar - City Staff zoiift� oCity Manager's Office f &/!G o City Attorney's Office o Department of Public Works SEED FUND ■ Marin Clean Energy Fa re I I a, Braun + Martel LLP Climate Change Action Plan NOW Develop a program to achieve energy savings in existing buildings, a goal of decreasing energy use by 20% as of the year 2020. Complete the energy audit of major City buildings and facilities to with identify opportunities for efficiency measures and renewable power generation opportunities and develop an implementation plan for upgrades. Continue to provide a leadership role with other local governmental Background City Council signed an MOU to participate in collaborative procurement project Sustainability Subcommittee called RFP for solar a high priority for 2013; installation in 2014 City Council amended the MOU so that San Rafael is coordinating agency for project City issues RFP for solar procurement City interviews firms and selects preferred vendor City Council holds study session Finance Committee reviews financing mechanisms and recommends Power Purchase Agreement November 2012 February 2013 /January 2014 March 2013 October 2013 December 2013 /January 2014 March 2014 April 2014 Proposed Sitet City Hall Rooftop and carport Public Works Rooftop San Rafael Community Center Rooftop Albert J. Boro Community Rooftop Center Terra Linda Community Center C Street Parking Garage Carport 317 193 77 a Carport 144 203 115 49 59 62 City Hall CSan Ra I i I ■ Tree work required ■ Roof may need to be repaired / replaced prior to installation, pending �, staff review ���� I7]if7iiiT�iimiu11i1ffavivre Community Center 1 4". Tree work required i Rafael Community Center 1111 7 111 11111111111111111111111 1 111 11111111111111111111111111 111 � 11111111111111111111111111 ���. 111 - 111111111111111111111111 �, ` 11111111 1111111111111111111111 111 11111 111111111111 �`-111111111111 1111 ' 111111 ME Tree work required Roof may need to be repaired / replaced prior to installation, pending staff review a�iT��Tm a #tet_ / Rnnf ma\/ nppri to %P YPn;iirpri rpnl;irpri nY 9 1 0 ,as Q1=4901SAO] rlr11L41ro1Iry IIto OIL A#i f E Examples of Solar Installations Examples of Solar Installations -1 V. � Examples of Solar Installations • 4 "• JS r - - - �_- '- Am II R awl. I # • r r �� Baa fr i 41, Power Purchase Agreement Example site: City Hall Bill offset: 97.6% 1 $4,716 Escalator, yr 1-15: 2.5% 5 $11,015 10 $20,860 De -Escalator, yr 16-20: -10% 15 $33,348 Utility cost escalator: 4% 20 $109,241 25 $143,501 Panel degradation: -0.5 PPA includes operations, maintenance, inverter replacement t "k IVT Projected Savings over 20 years Cost with Cost with Projected Percei Site Status Quo Solar Cumulative Savinj Savin s • • . 1 111 Department of Public Works $1.8 million $1.3 million $500,000 28% Terra Linda Community $1 million $700,000 $300,000 28% Center San Rafael Community $900,000 $550,000 $350,000 39% Center Boro Community $900,000 $600,000 $300,000 32% Center C & A Street $1.8 million $1.4 million $400,000 23% Parking Garages Legal and Other Considerations Operations & Maintenance End of contract term Opportunities to terminate agreements Decommissioning Fund Tree work Roof repairs EV car charging stations Educational opportunities Next Steps ■ Public Hearing on August 18, 2014 ■ Site specific design work o Detailed feasibility analysis including structural engineering, aesthetics ■ Potential roof repairs/replacement and tree work at some sites Permitting and Installation Questions EXTRA SLIDES RFP Process and Vendor Selection ■ California Government Code 4217 0 RSP publicly issued and posted; over 50 firms 0 pressed interest individuals representing various firms tended site walks 4 proposals received, 3 for Marin sites Multi -agency evaluation team Vendor interviews referred vendor selection' b Financing Mechanisms - Power Purchase Agreement (PPA) Municipal Lease PPA with Prepayment Direct Purchase I' Solar company City Solar company City 0 Damage, but only if caused by City O&M $0 Inverter replacement System Performance Damage Medium High Damage, but only if caused by City O&M Inverter replacement System Performance Damage LOW Cost Comparison Example site: City Hall Annual Payments - With Initial Investment $1,200,000 _ $1,000,000 d IA ♦+ $800,000 E co $600,000 CL. • $400,000 _ $200,000 W iL f , 0 2 4 6 8 10 12 14 16 18 20 22 24 Years After Solar Installation — PG&E .., Pre -paid PPA Purchase — Lease