Loading...
HomeMy WebLinkAbout2015-02-10 PACKET 04.D.01. To: Economic Development Authority From: Ryan R. Schroeder, City Administrator Date: February 4, 2015 Subject: Accept Receipt of BEC Power Purchase Agreement At the May 13, 2014 meeting of the EDA the Board authorized proceeding with a 40KW solar array project at the BEC. The contract was with A&P (Adolphson & Peterson) and Ten K Solar. The project has received an Xcel Solar Rewards allocation. A&P assigned their rights under the contract to New Energy Equity LLC. On January 21, 2015 the City Council accepted that assignment. Enclosed is the Power Purchase Agreement signed by New Energy. The project will be installed on the garage portion of the BEC. New Energy, and its contractor Sundial Solar are responsible for the install costs and O&M of this $170,000 asset through the life of the contract (15 years). The City has the right to buy out the contract in year 10 and year 15 per contract terms or at any time after year six under the Rewards program and IRS rules. Further, at the end of the term the City can cause New Energy, at its cost, to remove the installation should the City so desire. The estimated cost of removal in today’s dollars is between $40,000 and $60,000. The City anticipates electrical billing savings in each year that the solar system operates. Savings are projected to grow annually through the contract period with future increases in electrical power pricing. Over the term we are projected to save $149,147 in electric costs for the BEC. New Energy, to date, has completed 18 projects in Minnesota (mostly school districts). Our project is within a group of 8 City projects they will be completing during 2015. As noted above the EDA has previously approved this project and the City Council has approved the assignment to New Energy. We are requesting acceptance of receipt of the signed contract to document the contract and the understanding of the City regarding the terms of that contract. EDA Action: By motion Accept Receipt of the Power Purchase Agreement with New Energy Equity LLC for installation, operation, and maintenance of a 40K solar install on the BEC.