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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