HomeMy Public PortalAboutRES-CC-2015-16Resolution #16-2015
A RESOLUTION SUPPORTING ROCKY MOUNTAIN POWER'S BLUE SKY
PROGRAM AND ENDORSING THE EFFORTS OF THE CITY OF MOAB TO.
APPLY FOR A BLUE SKY GRANT.
WHEREAS, the City of Moab is a proud participant in Rocky Mountain Power's Blue Sky
Program and strongly urges Moab residents, Moab businesses and local, state and federal
government entities to join in this and other efforts to promote renewable, non-polluting
energy development; and
WHEREAS, the City of Moab seeks to expand its renewable, non-polluting energy
production capacity; and
WHEREAS, Rocky Mountain Power provides opportunities for local government Blue
Sky Partners to apply for matching grants to expand grid -tied renewable, non-polluting
energy production capacity.
NOW, THEREFORE, we, the Governing Body of the City of Moab do hereby support Rocky
Mountain Power's Blue Sky Program and endorse the efforts of the City of Moab to apply for
a Blue Sky Grant.
This resolution shall take effect immediately upon passage.
Passed and adopted by action of the Governing Body of the City of Moab in open session
this 12'h day of May, 2015.
CITY O OAB
By:
David L. Sakrison
Mayor
Attest:
Rachel Stgata . .
City 13.46order-
Resolution #16-2015
e,.
AGENDA SUMMARY
MOAB CITY COUNCIL MEETING
May 12, 2015
Agenda ltem
#: 7-2
r
Title: Resolution # 16-2015 - A Resolution Supporting Rocky Mountain Power's
Blue Sky Program and Endorsing the Efforts of the City of Moab to Apply for a
Blue Sky Grant
Fiscal Impact: This resolution does not obligate the City to expend any financial
resources. However, if a Blue Sky grant is awarded the City would need to
provide a matching percentage of the grant funding in order to access the grant.
A request to allocate $40,000 in the 2015-2016 fiscal year budget was submitted
to the City Council.
`Staff Presenter(s): Ken Davey
Department: Administrative Analyst
Applicant: City of Moab
Background/Summary: Applications for Blue Sky grants from Rocky Mountain
Power are being accepted through May 29, 2015. Grants are available for grid -
tied alternative energy projects. We hope to submit a grant asking for $60,000
from Rocky Mountain Power with a City of Moab match of $40,000 in cash and
$9,000 in in -kind staff administrative and technical support.
1
Options: The City can approve the resolution, table the resolution, or reject the
resolution. The grant application is due via email by May 29, 2015. A resolution
supporting the grant is not a requirement of the grant; the City could submit a
letter of support from the Mayor instead, but a resolution from the City governing
body would be more effective in demonstrating support for the project.
Staff Recommendation: We recommend that the City Council approve the
resolution
Recommended Motion: Motion to approve Resolution # XX-2015 - - A
Resolution Supporting Rocky Mountain Power's Blue Sky Program and
Endorsing the Efforts of the City of Moab to Apply for a Blue Sky Grant
New Business - 7-2
Attachment(s):
Copy of the grant application:
New Business - 7-2
Blue Sky Renewable Energy Project Funding
2015 Award Application Process - Application Form
'Application Deadline: Friday, May 29, 2015 at 5 p.m. Mountain Daylight Time
Thank you for your interest in applying for a Blue Sky funding award to help support the installation
of your renewable energy project. Rocky Mountain Power strives to promote innovation and to
work with customers and communities to increase the visibility of renewable energy generation
technologies through education and community outreach.
Background
Through the Blue Sky Block program, Rocky Mountain Power provides opportunities to qualifying
parties to receive financial support to help advance the construction of qualifying new non-
residential renewable energy projects. For additional information on the Blue Sky program and/or
project funding please visit our website, rockvmountainpower.net/blueskyfunds.
How to Apply for Funds
Step 1: Review eligibility requirements, award recipient responsibilities, evaluation and selection
criteria, and application tips at rockvmountainpower.net/blueskvfunds
Step 2: Complete the application form and supplemental document checklist. We request that you
complete the application in Microsoft Word. Applicants must complete all fields in the application
form provided in order for their project to be considered for funding. This application and
supplemental material provided at the time of application will serve as the primary means by which
projects will be evaluated. Rocky Mountain Power and/or its designee may contact you for further
information, so please provide current contact information.
Step 3: Submit completed application form, supplemental document checklist, and supplemental
documents to Rocky Mountain Power by 5 p.m. MDT, May 29, 2015 via e-mail, fax or mail to:
Rocky Mountain Power
Attn: Blue Sky Funding Award
825 NE Multnomah, Suite 600
Portland, OR 97232
Fax: 800-754-3114
E-mail: blueskyoroiects@rockvmountainpower.net; please use the following format for your
subject line: Applicant name; 2015 Rocky Mountain Power Blue Sky Funding Award Application
Questions about the funding award, the application and the funding process should be submitted to
blueskvprojects(arockvmountainpower.net.
Application/Award Timeline
Monday, March 2
Friday, May 29
By November 1
Rocky Mountain Power begins accepting applications
5 p.m. — MDT — Submittal deadline
Applicants will be notified in writing of award decision; projects selected for
funding will be asked to sign an agreement detailing the conditions and
requirements of accepting Blue Sky funds. Funds will be disbursed upon
completion of the project and once reporting requirements are met.
Please note: Project installations must be completed no later than Dec. 31, 2016. (Extensions to
this timeline may be considered on a case -by -case basis for projects associated with the
construction of a new building or structure).
Rocky Mountain Power Blue Sky Funding Award Application Rocky Mountain Power
Page 1 March 2015
New Business - 7-2
A. Summary Information
APPLICANT INFORMATION
City Center Photovoltaic
Project Name
Host organization
City of Moab
Type of organization
Municipality
Describe the host organization
Including but not limited to its mission, history, purpose and
who it serves.
Provides municipal services for 5,100
residents and approximately 2.5 million
visitors per year
Have you read the Eligibility Requirements on our
website and verified that the project satisfies these
requirements?
Yes
Organization website
moabcity.org
Primary project contact information:
Name
Title
Phone number
E-mail address
Organization name
Role in the project
Please note: This person will also be responsible for providing
ongoing reporting for the project
Ken Davey
Administrative Analyst
435-355-0644
ken c(�moabcity.org
City of Moab
Public contact for project
Contractor/Installer/Engineer contact information:
Name
Title
Phone number
E-mail address
Organization name
Role in the project
Contractor/supplier/installer will be
chosen through a bid process or through
state contracting services available
through the State of Utah. Engineering
services will be chosen through the
City's standard procedures or will be
supplied in-house.
Project owner (if different from host organization).
If more than one party, describe ownership structure
Name of individual completing application
Include affiliation and contact information if different from
primary contact or contractor/installer/engineer
Ken Davey
PROJECT INFORMATION
Physical address where project will be installed
Include facility name, street address, city, state, zip code
217 East Center St, Moab UT 84532
Is this project a new installation, addition to an
existing installation, or research and development?
Addition to an existing installation
Technology type
Wind, solar, geothermal, etc.
Solar
Project size
kW nameplate capacity rating
25kW
Rocky Mountain Power Blue Sky Funding Award Application
Page 2
Rocky Mountain Power
March 2015
New Business - 7-2
Estimated annual kWh generation
40kWh
What is the current annual electricity demand of the
facility where the power will be consumed (if used
onsite)?
If this is a new site, please provide the estimated annual
electricity demand.
349,660
Anticipated commissioning/on-line date
July 2016
Grid -connected or off -grid?
Grid -connected
Is this an onsite (behind the meter) project or utility-
side (in front of the meter) project?
Onsite project
Rocky Mountain Power meter number at installation
site
If this is a new site, please provide the temporary meter
number
46593286
Has the project identified interconnection options
and been in contact with the utility's customer
generation group?
For more information on interconnection requirements please
visit rockymountainpower:net/netmeterino
Yes
BLUE SKY INFORMATION
When providing funds for a renewable energy
project, Rocky Mountain Power's Blue Sky program
expects to take title to a share of the project's RECs
(renewable energy certificates) proportional to the
amount of Blue Sky funding and the total project
costs, on behalf of participating Blue Sky customers.
Can the proposed project meet this requirement?
Please confirm with your other funding sources
Yes
Is the project host organization a current Blue Sky
participant?
If yes, please specify name and address of enrollment/billing. If
no, the applicant will be required to enroll in the Blue Sky
program upon acceptance of the award. Can the applicant
commit to enrolling in the Blue Sky program at the required
level? For more information on enrolling, see
rockymo un tainpower. net/bizpartner
Yes, City of Moab, 217 East Center St,
Moab, UT 84532
Has your organization applied for a Blue Sky funding
award in the past?
If yes, describe the project, whether an award was granted,
and the application year. Also specify if the project proposed in
your prior application is the same project proposed in this
application.
2006, award for solar panels installed at
Moab Arts and Recreation Center and at
Moab Recreation and Aquatic Center,
2011 award for solar panels installed at
the Moab Animal Shelter. This is a new
project not associated with previous
awards.
How did you hear about the Blue Sky Funding Award
program?
Regular participation and partnership
with Rocky Mountain Power.
Onsite projects generate electricity that is consumed onsite and excess electricity is passed through a meter and onto
the grid. Utility -side projects arc intended to provide power directly to the grid.
Rocky Mountain Power Blue Sky Funding Award Application
Page 3
Rocky Mountain Power
March 2015
New Business - 7-2
B. Proiect Narrative
PROJECT FEASIBILITY
1. Provide a brief summary of the proposed renewable energy project
Include why the particular technology was chosen and why the specific location is suitable for the
proposed technology.
This will add to our growing array of photovoltaic installations, providing a model and example to Moab
residents, Moab businesses and other government agencies that solar is a preferred method of reducing
dependence on non-renewable energy. Our climate is well suited for solar power and our efforts align
with Rocky Mountain Power objectives of reducing use of fossil fuels where possible.
2. Is the proposed technology proven and is the equipment manufacturer well -established in
the industry?
If not, describe the most significant risks related to the technology, how can the project mitigate those
risks, and if is there research and development value to the project.
Photovoltaics technology is well proven to be an effective method of producing energy. All equipment
purchases will be from manufacturers well -established in the industry and recognized by the State of
Utah and/or authoritative alternative energy organizations or trade groups.
3. Describe the overall structure of the project team and the primary roles of each team
member.
List and describe each project team members' relevant experience and credentials demonstrating their
ability to satisfy their role. If certain key contractors have not yet been selected, describe your contractor
selection process.
Project will be headed by City Manager Rebecca Davidson, who has directed multi -million dollar
municipal engineering and construction projects. Rebecca Davidson has been a licensed
engineer. Team will utilize the services of the Moab City engineering department and will
coordinate with Public Works Director Jeff Foster, who has overseen previous City of Moab
photovoltaics installations.
4. Describe the current status of the project, planning and design work that has been
completed to date, and the plan for bringing the project to completion.
Identify potential challenges and risks to completing the project on time and your strategy for mitigating
each of those risks.
The current status of the project is awaiting acknowledgement of a Blue Sky funding award. City
staff is pursuing final approval of the 2015-16 fiscal year budget for a city financial obligation to
the project. Past photovoltaic installation at the building was designed for easy installation of
additional solar array.
5. Please identify the status of all necessary permits or other approvals required for the
project:
Rocky Mountain Power Blue Sky Funding Award Application
Page 4
Rocky Mountain Power
March 2015
New Business - 7-2
Permit/Agreement
Description
Not
required
Required,
Application not
yet Submitted
Application
Submitted
Permit/
approval
received
Unsure if
required
Air/land use
x
Electrical
x
Structural
x
Mechanical
x
Plumbing
x
Zoning
x
Environmental impact
x
Cultural/historic
impact
x
Interconnection/ net
metering
x
Power purchase
agreement
x
City council/ board
approvals
x
Other:
Please explain, if necessary:
6. What operations and maintenance (O&M) activities are required over the project life?
Describe the long-term O&M plan, including sources of funding to implement the plan.
List any warranties on equipment and labor, agreements with O&M service providers, and/or insurance
that will be secured.
Operation and maintenance responsibilities will be assumed by the City's Public Works
Department with no significant increases in personnel or budget. Insurance for the installation
will be provided by the licensed installer/contractor. Liability insurance for the operation of the
installation will be provided by Utah Local Governments Trust.
COMMUNITY IMPACT
7. Provide a brief history of the proposed project, the goals of this project, and how it ties
into the overall mission of your organization.
This project will help us show the community the value of renewable, carbon -free energy
production, both as a financial benefit to homeowners and business owners and as health and
quality of life benefits to the community through reduced carbon and particulate emissions.
8. What are the economic, environmental, and social benefits of the proposed project?
Consider the project owner, the project site, the local community, and the local renewable energy market.
The City will demonstrate the financial value of photovoltaics by publicizing cost savings to the
city and through demonstrations of potential savings to local homes and businesses. The City will
also highlight through public displays the value of our partnership with Rocky Mountain Power in
seeking to reduce dependence upon non-renewable carbon based energy sources. We will
publicize the programs and incentives available to those considering installing solar arrays that
along with lower equipment prices and creative financing packages, make solar installation a
financial and an environmental asset.
Rocky Mountain Power Blue Sky Funding Award Application
Page 5
Rocky Mountain Power
March 2015
New Business - 7-2
9. What Educational benefits are associated with the proposed project? -
Outline how you plan to increase visibility and educate the community about the project and renewable
energy and/or attach an education plan.
Through displays and presentations at City and community meetings we will highlight the
financial and environmental benefits of increasing solar power generation and the concomitant
benefits of reducing expansion costs for utilities and other energy producing companies. We will
draw attention to the existing Blue Sky projects in Moab (KZMU, Moab Library and the Moab City
projects) as a way of encouraging more Blue Sky energy block purchases and interest in
alternative energy efforts of Rocky Mountain Power, the State of Utah, and others in the
community.
10. How will the project recognize Blue Sky participants for their contribution to the project
and encourage participation in Blue Sky?
Be specific about recognition opportunities upon completion and on an ongoing basis.
We will create displays that center on photovoltaics, the Blue Sky Program and how local
residents and businesses can benefit themselves and the community by supporting wind and
solar power generation. We will specifically note the role Rocky Mountain Power has played and
continues to play in expanding alternative, renewable, nonpolluting energy technology and
application.
11. Describe any community meetings or other outreach completed or planned to inform the
public of the proposed project.
Summarize both positive and negative community feedback received to date and how potential negative
community impacts will be mitigated.
We will seek to utilize community events to publicize the economic and environmental benefits of
the Blue Sky Program, similar to the presentation of a Blue Sky Proclamation to Rocky Mountain
Power at the Moab Folk Festival following the installation of Blue Sky program funded solar
panels at the Moab Animal Shelter. We will also issue news releases and media interviews
(written for publications and social media, audio for radio and podcasts) drawing attention to the
contributions Rocky Mountain Power and the Blue Sky Program have made to Moab and Grand
County.
PROJ,E,.CT COSTS AND FINANCING
12. Describe the financial structure of the project.
Include who will pay for and own the project, who will receive the financial benefits, and who will pay for
maintenance and repairs?
The City will be the financial agent for the project and will receive the financial benefits of lower
power costs. The cost of the project shall be borne by the City through a budget allocation and in -kind
administrative and technical staff time contributions and by the Blue Sky grant award.
13. Describe efforts to ensure that the proposed budget represents the maximum value for
the cost of the project.
Explain any significant price deviations from industry norms and whether you received multiple bids from
competitive contractors. .
The trend in solar equipment and installation pricing has been going down. We have received a
number of informal price quotes and all of the companies indicate they believe current prices will
continue throughout this year and into 2016. In the event prices spike upward the City is in a
position to reconfigure the project or to seek additional funding through grants, donations or
budget allocations.
Rocky Mountain Power Blue Sky Funding Award Application
Page 6
Rocky Mountain Power
March 2015
New Business - 7-2
14. Identify potential challenges and risks to completing the project within budget and your
strategy for mitigating each of those risks.
We foresee no significant challenges in that the building is owned by the City of Moab and a
photovoltaic system has already been installed on the building. Circumstances that might require
the City to amend its budget for the project would trigger efforts to reconfigure the project or seek
additional funding through grants, donations and additional budget allocations.
15. Describe the efforts undertaken to explore alternate sources of funding for this project.
Include whether the project owner and/or host is contributing funds and the owner's ability to fully monetize
available tax credits.
Along with a Blue Sky award, the primary source of funding for this project comes from the City,
through a pending 2015-16 fiscal year budget allocation and through in -kind staff administrative
and technical assistance.
16. Are funds from the Blue Sky program imperative to make the project successful?
Due to significant expected expenses resulting from a required new wastewater treatment plant
and necessary street and road repairs, the City is unable to fully fund this project, but if a Blue
Sky grant is awarded the city will pursue smaller grants, donations and contributions to enhance
and expand the project.
17. Describe the organization's current financial status.
The City of Moab is required by State of Utah law to operate with a balanced budget. The City
has been able to consistently meet this requirement, though often at the expense of increased
workloads and fiscal spending restraints. The City is currently financially stable and expects to
adopt revenue and spending policies that will keep the City financially stable into the future.
C. Project Costs and Financing
PROJECT BUDGET
Please provide an itemized budget for eligible costs including the categories listed below.
Renewable Energy Project Component
Cost
Line Item Description
Eligible Project Costs
Engineering and design costs (not yet incurred)
$ 9,000
Includes City staff in -kind
Equipment costs
Generator or modules
$77,000
Inverter or other electrical components
$19,000
Racking or support structure
$ 4,000
To be Included in equipment bid
Other components (please list)
Labor installation costs
To be included in equipment bid
Rocky Mountain Power Blue Sky Funding Award Application
Page 7
Rocky Mountain Power
March 2015
New Business - 7-2
Permitting fees, if applicable (please itemize)
$ 0
Monitoring system costs and components (please
itemize) - kiosk, wiring and any other fees
associated with this component
$ 0
Attach to existing system
Other renewable energy installation components
(please itemize)
TOTAL ELIGIBLE PROJECT COSTS
$100,000
Amount of Blue Sky funding requested
$ 60,000
Funding request as % of Total Eligible Project
Costs
Note: This value must not be greater than 60%.
60 percent
Optional: List the marketing and outreach costs
associated with the project to be considered for
additional funding on an individual basis.
Marketing and outreach costs will
be covered with in -kind City staff
contributions
The following costs are NOT eligible for reimbursement:
• Engineering/design costs incurred to date (e.g., site evaluations, project estimates/bids,
project development costs).
• Donated or in -kind labor or materials
• Interconnection studies
• Structural improvements to project site (e.g., roof reinforcement, re -roofing, tree removal,
construction of a carport or other facility that will host the renewable energy equipment)
• Operations and maintenance costs
• Administrative costs (e.g., interest or construction bond costs, administration labor,
overhead, travel, lodging or project management)
• Media events and project celebrations
List and describe all funding
sources and income streams
of the project, as well as the
nature of the contribution —
grant, donation, incentive,
cash or in -kind.
Please identify the dollars and
percent of total project cost
this represents.
Please provide documentation
confirming secured funding
sources.
Source of Funding and
Type of Contribution
yp
Amount
% of Total
Project
Cost
Secured
or
Pending
Blue Sky Funding
(cash reimbursement)
$ 60,000.
55.0
Pending
Moab City
$ 40,000.
36.7
Pending
Moab in -kind
$
Engineering
$ 5,500
5.1
Pending
Public Works
$ 2,500
2.3
Pending
Admin./marketing
$ 1,000
0.9
Pending
Totals
$109,000
100%
Describe the status and timeline for any `pending' funding sources
Rocky Mountain Power Blue Sky Funding Award Application
Page 8
Rocky Mountain Power
March 2015
New Business - 7-.2
All pending City expenditures are dependent upon the successful award of a Blue Sky grant.
Rocky Mountain Power Blue Sky Funding Award Application Rocky Mountain Power
Page 9
March 2015
New Business - 7.-2