Leon Valley
TX

Staff Report
17-9
Approved as Amended
Jan 17, 2017 7:00 PM

Consider, discussion and possible action to authorize the City Manager to Execute an Agreement with PowerFin Solarmundo, LLC to Participate in City Public Service’s (CPS) Simply Solar and SolarHost SA Program and to Allow the Installation of Solar Panels at the Fire Station and at the Municipal Building.

Information

Department:Public WorksSponsors:
Category:Contract

Attachments

  1. Printout
  2. PowerFin Solar Contract 1-17-17 (This file has not yet been converted to a viewable format)
  3. PowerFin PowerPoint Presentation (CA revised 01-06-17)

Item Discussion

PURPOSE

 

To consider authorizing the City Manager to execute an Agreement with PowerFin Solarmundo, LLC to participate in the Solar Host program to allow the installation of solar panels on the Fire Station and Municipal Building rooftops.

 

CPS Energy has partnered with PowerFin Partners to create a program to install solar panels on rooftops at no charge to the building owner. The solar panels should result in a $2903.23 per year savings in energy costs to the City per year for the Municipal building alone. The program guarantees a credit on the CPS bill for the next 20 years and the Agreement may be extended for two additional five year terms. The solar panel equipment Agreement would be in effect until January of 2036. If the City decides not to extend the terms, the company would remove the equipment and restore the rooftops to their original condition, except for normal wear and tear.

 

The City does not own the equipment; therefore PowerFin will be responsible for the installation, inspections, maintenance, repairs, and any replacements to the systems. The City would be responsible for keeping tree branches from shading the system.

 

FISCAL IMPACT

None; however, if the City has to have the solar panels removed to service the rooftop, we would be charged a $0.40 fee for each watt of power generation capacity of the system while the solar panels are not in use. The rooftop at the Fire Station is new and shouldn’t need repairs in the foreseeable future.

 

The rooftop at the Municipal Building has been resurfaced, but the substructure was not replaced. The company installing the solar panels will acquire the services of a structural engineer to assure the rooftop will support the weight of the solar panels prior to installation. Other than that, the rooftop should remain in good condition for quite some time.

 

If the City should ever default on the Agreement, and the default is not timely cured to PowerFin's reasonable satisfaction, PowerFin may terminate the Agreement; suspend their performance under the Agreement; take reasonable action to correct our default to prevent loss; remove the system and charge the City for the cost of removal and the cost of reconnecting the System at another location; or file a lawsuit for specific performance and damages

 

SEE LEON VALLEY

 

Social Equity - Energy conservation programs save money for all taxpayers.

 

Economic Development - Supporting and promoting the use of solar power will help to create jobs in that industry, which may lead to the relocation of potential businesses and citizens to our community.

 

Environmental Stewardship - Everyone’s quality of life, standard of living, and security systems depend on energy. A strong and balanced energy program, based on the most efficient use of our natural resources, while minimizing our dependence on imported energy, is critical to this country as a whole (source - Florida Institute for Sustainable Energy, University of Florida, http://www.energy.ufl.edu/.)

 

STRATEGIC GOALS

 

This item meets City Council Strategic Goal #5 Environmental Sustainability, by developing energy conservation programs.

Document Comments

RECOMMENDATION

 

None

 

Meeting History

Jan 17, 2017 7:00 PM  City Council Regular Meeting

Public Works Director Melinda Moritz introduced Tuan Pham of PowerFin Partners, LLC. and stated the purpose of this item is to ask for City Council consideration to authorize the City Manager to execute an Agreement with PowerFin Solarmundo, LLC to participate in the Solar Host program to allow the installation of solar panels on the Fire Station and Municipal Building rooftops.

Public Works Director Moritz said that CPS Energy has partnered with PowerFin Partners to create a program to install solar panels on rooftops at no charge to the building owner. The solar panels should result in a $2903.23 per year savings in energy costs to the City per year for the Municipal building alone. The program guarantees a credit on the CPS bill for the next 20 years and the Agreement may be extended for two additional five year terms. The solar panel equipment Agreement would be in effect until January of 2036. If the City decides not to extend the terms, the company would remove the equipment and restore the rooftops to their original condition, except for normal wear and tear. The City does not own the equipment; therefore PowerFin would be responsible for the installation, inspections, maintenance, repairs, and any replacements to the systems. The City would be responsible for keeping tree branches from shading the system.

Public Works Director Moritz said there is no fiscal impact to the City; however, if the City has to have the solar panels removed to service the rooftop, we would be charged a $0.40 fee for each watt of power generation capacity of the system while the solar panels are not in use. The rooftop at the Fire Station is new and shouldn’t need repairs in the foreseeable future. The rooftop at the Municipal Building has been resurfaced, but the substructure was not replaced. The company installing the solar panels will acquire the services of a structural engineer to assure the rooftop will support the weight of the solar panels prior to installation. Other than that, the rooftop should remain in good condition for quite some time. Lastly, If the City should ever default on the Agreement, and the default is not timely cured to PowerFin's reasonable satisfaction, PowerFin may terminate the Agreement; suspend their performance under the Agreement; take reasonable action to correct our default to prevent loss; remove the system and charge the City for the cost of removal and the cost of reconnecting the System at another location; or file a lawsuit for specific performance and damages.

A motion was made by Council Member Benny Martinez and seconded by Council Member Monica Alcocer, to authorize the City Manager to execute an agreement with PowerFin Solarmundo, LLC to participate in the Solar Host program to allow the installation of solar panels on the Fire Station and Municipal Building rooftops.

· Olen Yarnell, 7230 Sulky Lane, asked why the whole rooftop was not being utilized. Mr. Pham responded that he was not the engineer that designed this but that the company could certainly re-evaluate the roof.

· Mike K. Davis, Jr., 6002 Forest Shadow, asked questions about the "$.40 per watt for removal charge" mentioned in the proposed contract. Mr. Pham attempted to explain the watt vs. Kilowatt conversion.

· Larry Proffitt, 6307 Rue Sophie, questioned the amount of panels that would be installed.

Council Member Monica Alcocer requested an amendment to the motion to include two separate contracts. Council Member Benny Martinez accepted the amendment and withdrew his previous motion.

Council Member David Jordan said he was "uncomfortable approving contract he has not seen". City Attorney Denise Frederick assured Council Member Jordan that she would guarantee the City Manager would not enter into any agreement that she had not been working on for the last two months. This was followed by more discussion.

A motion was then made by Council Member Benny Martinez and seconded by Council Member Monica Alcocer, to authorize the City Manager to execute an agreement with PowerFin Solarmundo, LLC to participate in the Solar Host program to allow the installation of solar panels on the Fire Station and Municipal Building rooftops provided there are two separate contracts.

After further discussion, City Attorney Frederick suggested that the City Council amend the previously stated motion to include a "not to exceed" amount that was discussed. That being said, Council Member Monica Alcocer withdrew her second and Council Member Benny Martinez withdrew his motion.

A motion was made by Council Member Benny Martinez and seconded by Council Member Monica Alcocer, to authorize the City Manager to execute an agreement with PowerFin Solarmundo, LLC to participate in the Solar Host program to allow the installation of solar panels on the Fire Station and Municipal Building rooftops; under two separate contracts; and amend Section 5.1, paragraph 9 of the agreement to add that the actual cost for the removal of the panels and replacement will not exceed $28,000.

RESULT:APPROVED AS AMENDED [4 TO 1]
MOVER:Benny Martinez, Council Place 4
SECONDER:Monica Alcocer, Council Place 3
AYES:David Edwards, Belinda Ealy, Monica Alcocer, Benny Martinez
NAYS:David Jordan

Discussion