Explanation
Background: This legislation authorizes the Finance and Management Director to enter into a solar power purchase agreement (SPPA) with SolarVision LLC for the Fleet Maintenance Facility, 4211 Groves Road. An SPPA is an agreement whereby SolarVision LLC will own, operate and maintain a photovoltaic (PV) system on the roof of 4211 Groves Road. The City, in return, will agree to provide SolarVision LLC a lease on the roof and to purchase the electricity produced by the system. This agreement will allow the City to have the benefit of clean energy without the upfront costs of purchasing and installing the system, or the long-term costs of maintaining the system. SolarVision LLC, as a private entity, is also able to take advantage of substantial tax breaks currently being offered in 2010 by the United States government and the State of Ohio, and Renewable Energy Credits that can be sold on the market.
In its statement of qualifications, Solar Vision made a preliminary proposal of a 440 kW system. (The final size of the system will be determined upon further investigation and negotiation with the City). This would be the largest non-utility owned roof-top solar array in six states. It is estimated that it will provide up to one-third of the Fleet Maintenance facility's electricity. Based on the statement of qualifications, the City will negotiate for a ten-year term and for a fixed price per kwH. Based upon current building electricity usage, it is estimated that the City will be purchasing between $30,000 to $60,000 of electricity per year from SolarVision LLC. In no case will the City negotiate a price that increases total electricity costs. The City will ensure that the contract does not pay more to SolarVision LLC for the power produced than it would have paid if the same power had been purchased from American Electric Power.
This power purchase agreement will demonstrate the City's commitment to reducing its own carbon footprint as well as committing to be a leader in the growth of the solar industry, especially in central Ohio.
Requests for Statements of Qualifications were available on June 9, 2010, and submitted on June 30, 2010. The City received six proposals (1 MBE*, 0 FBE): SolarVision LLC; Velocity Construction Services*, Tipping Point, Third Sun & Wind Power Ltd./Nextgen Builders LLC; Teynor Development Corp; and Hull & Associates, Inc. A three person committee evaluated the proposals, including one member each from the Office of Construction, the Finance and Management Director's Office, and the Mayor's Office. SolarVision LLC scored highest with two members and second with one member. Tipping Point scored highest with one member and second with two members.
Emergency action is requested so that SolarVision LLC will be able to take advantage of tax credits that are currently set to expire December 31, 2010, thereby ensuring the City can negotiate the best price.
Fiscal Impact: The City will incur no upfront costs for the design and installation of the solar photovoltaic system at 4211 Groves Road. The ordinance includes an expenditure not to exceed $5,000 for the purchase of electricity from the system. However, this is only a safeguard in case the project moves faster than expected and the system is installed and producing power before passage of the 2011 budget. The estimated costs for electricity per year are $30,000 to $60,000, dependent on the size of the final system. However, this cost will be offset by savings incurred with the current electricity provider. In future years, City Council will be asked to provide expenditure authority per legislation as needed.
SolarVision LLC 27-0658795, expiration date 06/23/2012.
Title
To authorize the Finance and Management Director to enter into a ten-year solar power purchase agreement with SolarVision LLC for the roof of the Fleet Maintenance Facility, 4211 Groves Road; to authorize the expenditure of $5,000.00 from the Fleet Services Fund; and to declare an emergency. ($5,000.00) (REPEALED BY ORD. 1437-2010 PASSED 10/18/2010)
Body
WHEREAS, the Finance and Management Department, Office of Construction Management, desires to enter into a solar power purchase agreement for the Fleet Maintenance facility at 4211 Groves Road; and
WHEREAS, the Finance and Management Department advertised Requests for Statement of Qualifications (RFSQ) on June 9, 2010; and
WHEREAS, the City of Columbus desires to be a leader in clean energy usage among institutions in central Ohio and large cities throughout the country, and
WHEREAS, the purchase of solar power demonstrates said commitment while reducing the City's carbon footprint, and
WHEREAS, a three person evaluation committee recommended SolarVision LLC as the most qualified firm; and
WHEREAS, it is the recommendation of the Finance and Management Director to contract with SolarVision LLC for a solar power purchase agreement at 4211 Groves Road; and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department, Office of Construction Management, in that it is immediately necessary to authorize the Finance and Management Director to contract with SolarVision LLc for a solar power purchase agreement in order for SolarVision LLC to be eligible for large tax breaks that expire on December 31, 2010, thereby ensuring that the City will be able to negotiate the best price for electricity possible, now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Finance and Management Director is hereby authorized to contract with SolarVision LLC for ten-year solar power purchase agreement on the roof of the Fleet Maintenance Facility at 4211 Groves Road.
SECTION 2. That the expenditure of $5,000.00, or so much thereof that may be necessary in regard to purchasing electricity in fiscal year 2010 from the solar power purchase agreement authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division 45-05
Fund 513
OCA: 451206
Object Level 1: 03
Object Level 3: 3291
Amount: $5,000.00
SECTION 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves or vetoes the same.