Loading...
HomeMy WebLinkAbout6.g. Approve memorandum of agreement with Sundial Solar for a solar PV System EXECUTIVE SUMMARY City Council Meeting: May 20, 2015 AGENDA ITEM: Approve memorandum of agreement with Sundial Solar for a solar PV System AGENDA SECTION: PREPARED BY: Jason Lindahl, AICP Planner AGENDA NO. 6.g. ATTACHMENTS: Memorandum of Agreement, Made in Minnesota Solar Incentive Program Reservation Notice APPROVED BY: ddj RECOMMENDED ACTION: Motion to authorize the Mayor to execute the attached memorandum of agreement with Sundial Solar to work exclusively together toward a final legal agreement to install a solar PV system on the public works shop building at 14455 Brazil Avenue. SUMMARY On February 17, 2015 the City Council approved a letter of intent to work with Sundial Solar to apply for a Made in Minnesota (MIM) solar rebate for a photovoltaic (PV) rooftop solar systems on a number of City buildings. By lottery, the Minnesota Department of Commerce awarded Rosemount a MIM rebate for this type of system on the public works shop directly east of City Hall. Staff recommends the City Council authorize the Mayor to execute a memorandum of agreement with Sundial Solar to work exclusively together toward a final legal agreement to install a solar PV system on the public works shop building at 14455 Brazil Avenue. BACKGROUND To confirm MIM award, the Department of Commerce now requires the City to submit a memorandum of agreement by June 1 (see attached). This document has been review by the City Attorney. Should the City Council approve this item, staff will continue to work with Sundial Solar to complete their due diligence for a final agreement for this project including system design, structural analysis, electrical engineering and equipment procurement in the next 30 days. The MOA expires after 30 days and the City is no longer committed to working exclusively with Sundial Solar. The City Council will review and approve any final agreement to install a system on the public works shop building. RECOMMENDATION Staff recommends the Mayor execute the attached memorandum of agreement with Sundial Solar to work exclusively together toward a final legal agreement to install a solar PV system on the public works shop building at 14455 Brazil Avenue. 3209 W 76th St. #305, Edina, MN 55432 sundialsolarenergy.com phone 612-926-8506 Sundial Solar A Brighter Idea Memorandum of Agreement This Memorandum of Agreement (MOA) is entered into on May 20, 2015 between Sundial Solar (“Sundial”) and the City of Rosemount (“Client”). The parties hereby agree to work exclusively together toward a final legal Agreement to install the solar PV project described below. This MOA provides the necessary first step in Sundial solar site due diligence including system design, structural analysis, electrical engineering, equipment procurement, etc Array Size Client will receive financial benefits from the system pursuant to a mutually agreed upon financial structure based on the system size and output. Client has received MIM rebate approval for the following site: Address: Shop, 14455 Brazil Av W, Rosemount, MN 55068 Project Size: 40 kw PV Equipment Only Made in Minnesota (MIM) approved solar PV equipment can be used in this system. Exact equipment and amounts will be outlined as part of the final Agreement. Annual Production The annual production of this system is estimated at: 52,000 kwh. Sale Price The fully installed sale price of this system to Client is estimated at: $3.60 per watt. The particulars of the final financial arrangements will be detailed in the final Agreement. Final Agreement Both Sundial Solar and Client shall execute a final Agreement between them within 30 days of signing this MOA. Until that time both parties agree to work toward a final contract in good faith and exclusively together. The intent is to reach a final agreement that allows for construction to begin in August 2015 and to be completed on or before Oct. 31st 2015. AGREED BY: Sundial Solar City of Rosemount _____________________________ ____________________________ signature signature _____________________________ ____________________________ Print name / Title Print name / Title _____________________________ ____________________________ date date Minnesota Department of Commerce Made in Minnesota Solar Incentive Program Solar Photovoltaic (PV) RESERVATION NOTICE Date of Reservation: April 17, 2015 Application Number:MIM15-00745 Host Customer:City of Rosemount Installation Address: Shop 14455 Brazil Ave W, Rosemount, MN 55068 Deadline to file for an extension: {10/31/15} Maximum Kilowatt Capacity (DC) of Project: System Nameplate (DC) Rating: 39.875 kW System CEC-AC Rating: 34.923 kW System CSI-AC Rating: 34.218 kW Design Factor: 97.979% Inverter: 2 Solectria Renewables 20.0 kW (Model PVI 20TL-480) Module Array: 145 Silicon Energy 275W (Model SiE-V-275) Tilt: 26 Azimuth: 180 Monthly Shading Factor: 100% Solar Incentive Amount: $0.35 per kWh Congratulations! This Reservation Notice confirms that Dwight Johnson received a 2015 incentive reservation in the Made in Minnesota Solar Incentive Program for application number MIM15-00745. Construction may begin on the project as described in the application. To confirm your funding reservation, Commerce must receive the following information by June 1, 2015. All information must be tied to the specific application number:  Payee name and contact information  A copy of the signed installation agreement  A State of Minnesota Vendor Identification (ID) Number for the designated project payee. Vendor IDs can be obtained from the Minnesota Supplier Portal. Please send the above information to Solar.help@state.mn.us by June 1, 2015. If this information is not received by June 1st, your funding reservation may be cancelled and reallocated to another project on the wait list. If the project will not be proceeding as planned, email the program administrator to cancel the project as soon as possible. Compliance with Program Guidelines Upon project completion, the applicant must submit a notice of completion package by the funding expiration date, December 31, 2015. If the project will not be completed by December 31, 2015, applicants must file an extension request by October 31, 2015. Extension requests, which will be considered on a case by case basis, must show evidence of a purchase order from one of the MiM certified manufacturers. Extensions may provide an additional six (6) months to complete the project or until June 30, 2016. Incentives are paid in accordance with Minnesota State Statute [§216C.414] “Made in Minnesota” Solar Energy Production Incentive. Compliance with program guidelines is required for payment of an incentive. Any changes to the design of the solar array from that submitted with the application must be approved in advance by the program administrator. If you have any questions, please send an email to solar.help@state.mn.us or review the Made in Minnesota Solar Incentive Program Guidelines. Thank you for expanding Minnesota’s solar resources, Mr. Kim W. Havey, AICP, LEED AP Minnesota Department of Commerce Made in Minnesota Solar Program Coordinator 85 7th Place East, Suite 500, Saint Paul, MN 55101 Phone: 651-539-1761 Fax:651-539-0109 Solar.help@state.mn.us | mn.gov/made-in-minnesota