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 ����
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Community Center
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Tree work required
i Rafael Community Center
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Tree work required
Roof may need to be repaired / replaced prior to
installation, pending staff review
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Examples of Solar Installations
Examples of Solar Installations
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Examples of Solar Installations
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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