Title
Intergovernmental Agreement with the Arizona Board of Regents on Behalf of Northern Arizona University for Clean Energy Cooperative Purchasing (Ordinance S-53219) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into a Cooperative Purchasing Intergovernmental Agreement with the Arizona Board of Regents for and on behalf of Northern Arizona University (NAU), for a three-year term, for the sole purpose of the City's participation as a Collaborator in a joint solicitation for clean energy projects. This authorization is limited to participation in the solicitation and evaluation process. It does not authorize the City to enter into a Virtual Power Purchase Agreement or any agreement with a selected developer, and it does not obligate the City to purchase renewable energy. Expenditures will not exceed $30,000. Funds are available in the Office of Sustainability's budget.
Report
Summary
The City of Phoenix Climate Action Plan Goal SES1 commits the City to achieve net-zero greenhouse gas emissions from municipal operations' electricity use by 2030. City operations consume approximately 643,000 megawatt-hours of electricity annually. City Council adopted a three-part strategy to meet this goal: reduce energy use in City facilities, develop on-site solar generation and contract utility-scale renewable energy to address the remaining load.
This item requests authorization for joining a group of Arizona public agencies that will jointly solicit and evaluate clean energy proposals. It is not a request to approve a Virtual Power Purchase Agreement, to select a developer or to commit the City to purchasing clean energy. The Intergovernmental Agreement ensures the City participates during the solicitation, includes City requirements in the criteria and that City staff can evaluate what the market offers before any commitment is considered.
The participating agencies include NAU, Arizona State University, the City of Flagstaff, the City of Sedona, the City of Tempe and Mountain Line, each of which shares carbon neutrality goals for purchased electricity. NAU will prepare and issue a Request for Proposals for an offsite clean energy project. As a Collaborator, the City will help set the solicitation criteria, review responses and evaluate candidates, and will appoint a representative to serve on the evaluation committee. The Collaborators will solicit comparable clean energy options from Arizona's regulated utility providers. Participation aggregates demand across multiple public agencies, increasing purchasing power, distributing procurement and legal costs and giving the City access to a competitive solicitation the City would otherwise have to conduct on its own.
The Intergovernmental Agreement preserves each Collaborator's sole discretion over whether to continue at every stage. After proposals are received and evaluated, the City can decide to move forward, or may decline to move forward with any agreement. Additionally, the City may terminate its participation with the cooperative with 30 days' written notice. If the City later determines that proceeding with a selected developer is in its interest, that decision would return to the City Council as a separate item for discussion, approval and any necessary spending authorization.
Contract Term
The agreement will begin on the date of final signature and continue for three years.
Financial Impact
Expenditures under this agreement will not exceed $30,000. Shared costs are incurred only if the City elects to proceed following selection of a project, and consist of the City's share of jointly retained legal counsel to negotiate a Virtual Power Purchase Agreement. Funds are available in the Office of Sustainability's budget.
Department
Responsible Department
This item is submitted by Deputy City Manager Alan Stephenson and the Office of Sustainability.