HomeMy WebLinkAbout~Master - Letter of Intent for "SunSmart Ames" community solar project RESOLUTION NO. 17-699
RESOLUTION APPROVING SELECTION OF DEVELOPER OF"SUNSMART AMES"
COMMUNITY SOLAR PROJECT, AND ENTERING INTO LETTER OF INTENT TO
BEGIN WORKING ON ENERGY SERVICES AGREEMENT
FOR THE CITY OF AMES
WHEREAS, in support of a Council goal to expand sustainability efforts, Electric Services
has been working to implement a community solar project; the project, identified as SunSmart Ames,
has three components — Site Selection, Energy Services Agreement with the solar developer, and an
Electric Customer Participation Program; and,
WHEREAS, Electric Services has been working on each of these three components in
parallel; ultimately, the goal is to present to the City Council an Energy Services Agreement (ESA)
with the preferred developer in combination with a Customer Participation program where at least
80%of the project has been subscribed; and,
WHEREAS, the City's approach for its solar farm calls for a private developer to take
advantage of existing federal tax incentives and construct the solar farm; and,
WHEREAS, the City's role in this partnership is to purchase the power generated from this
private facility through an Energy Services Agreement; and,
WHEREAS, in addition, the City is expected to sell to interested electric customers shares
of the energy output in the form of power packs; the revenue obtained through these sales will be
used to pay for the obligation under the Energy Services Agreement and any rate incentives to the
participants; and,
WHEREAS, it is recommended that the Council select a preferred developer for the solar
farm, and that the City enter into a Letter of Intent with the developer at this time; and,
WHEREAS, on May 2, 2017, a Request for Proposal(RFP) was issued to 94 developers for
proposals to build, own, and operate a two-megawatt solar farm, and on June 23, 2017, staff received
proposals from 14 developers; and,
WHEREAS, the proposals were evaluated and were rated by the evaluation team, and,
WHEREAS, based on interviews, responses to the follow-up questions, and the
detennination of the best value to the Utility rate payers and to the City, the evaluation team
concluded that ForeFront Power of San Francisco, California, will be able to handle peak demand
better due to its design, stable financing package, and the visibility of the panels from Highway 30;
and,
WHEREAS, staff is recommending that the City enter into a Letter of Intent (LOI), and it is
expected that the Council will soon see a final Energy Services Agreement within the next 120 days
if 80%participation is achieved;no payments will be made based on this letter of Intent; and,
WHEREAS, the Electric Utility Operations and Review Advisory Board met on
November 13, 2017, and voted in support of ForeFront's selection and recommended that the City
Council approve the Letter of Intent.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Ames, Iowa,
that the selection of ForeFront Power of San Francisco, California, as the developer of the SunSmart
Ames project is hereby approved, and that the City will enter into a Letter of Intent to begin working
on the Energy Services Agreement is hereby further approved.
ADOPTED THIS 12th day of December, 2017.
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Diane . Voss, City Clerk Ann H. Campbell, Mayor
Introduced by: Nelson
Seconded by: Corrieri
Voting aye: Beatty-Hansen, Betcher, Corrieri, Gartin,Nelson, Orazem
Voting nay: None Absent: None
Resohztion declared adopted and signed by the Mayor this 12th day of December, 2017.