Title
Solar Renewable Energy Credit Purchase Agreement - Amendment - 305 Parking Garage (Ordinance S-47781)
Description
Request to authorize the City Manager, or his designee, to execute an amendment to Agreement 136034 with Goldman Sachs Renewable Power Operating Company, LLC/Solar Star Arizona V, LLC, to provide additional funding for the solar renewable energy credit purchase agreement with the Public Works Department. Further request to authorize the City Controller to disburse all funds related to this item. The additional expenditures included in this amendment will not exceed $237,567.48.
Report
Summary
The agreement with Goldman Sachs Renewable Power Operating Company, LLC/Solar Star Arizona V, LLC is used for maintenance services for the photovoltaic (PV) system located on the rooftop of the 305 Parking Garage. The power produced by the PV system is purchased at an annual fixed rate and increases by 2.75 percent annually. The rate paid for solar utility power is intended to be lower than the cost of energy from the public utility, Arizona Public Service, over the 20-year term of the agreement. The agreement is currently in year eight. The additional funding is for the annual maintenance and electrical output produced from the current PV system.
Contract Term
The initial 20-year term of the agreement began on May 2, 2013, with one, five-year option to extend, for a total term of 25 years and an end date of May 1, 2038. There will be no change to the agreement term as part of this amendment.
Financial Impact
The initial authorization for the Solar Renewable Energy Credit Purchase agreement was for an expenditure not-to-exceed $37,500. Amendments increased the authorization for the agreement by an additional $264,884.52. This amendment will increase the authorization by an additional $237,567.48, for a new total not-to-exceed agreement value of $549,067.48.
Funding is available in the Public Works Department's budget.
Concurrence/Previous Council Action
The City Council approved:
- Qualified Vendors List for the Design, Build and Finance of Solar Projects on Oct. 6, 2010;
- Solar Renewable Energy Credit Purchase Agreement 136034 (Payment Ordinance S-42682) on June 22, 2016;
- Solar Renewable Energy Credit Purchase Agreement 136034 (Payment Ordinance S-42866) on Sept. 21, 2016; and
- Solar Renewable Energy Credit Purchase Agreement 136034 - Amendment (Ordinance S-44423) on April 4, 2018.
Location
The 305 Parking Garage is located at 305 W. Washington St.
Council District: 7
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters and the Public Works Department.