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RFD- 3586 Administrative Updates   Item #   8. a.    
Regular Council Meeting Agenda
Meeting Date: 06/10/2019  
Title:    Public Works Solar Project - Levasseur
Presenter: Patrick Inglis
Department: Planning & Infrastructure  
Strategic Vision Element: Where People Choose to Live - A dynamic city with an exceptional quality of life Related Goal: Citizens consistently express high levels of satisfaction with municipal services.

Information
Request for Decision Summary
This presentation is being brought forward to provide information on the planned installation of a solar photovoltaic (PV) system at the Public Works building in 2019.
 
Proposed Motion
 
That the presentation on solar PV installation at the Public Works building be received as information.
 
 
 
Background/Analysis
In 2018 Administration put forward a corporate plan initiative for solar panel installation at the Public Works building. The 2018 initiative proposed a solar installation of a 396 kilowatt solar array that would reduce the City’s greenhouse gas emissions by 290 tonnes/year. It was estimated at that time the City could receive $167,935 in grant funding from the Municipal Climate Change Action Centre (MCCAC). With a financing program and a 25% down payment, the City would have an average monthly payment of $3,712 for 180 months at 4% interest.  The 2018 Corporate Plan Initiative was below the line.

Since this time, MCCAC started offering an additional bonus rebate of $0.25/watt to a maximum of $250,000 to municipalities who have not previously participated in the Alberta Municipal Solar Program (AMSP). This is on top of the initial rebate of $0.60/watt offered through AMSP.  This additional bonus allowed Administration to return to the Senior Leadership Team to re-propose the initiative.  With these adjustments, Administration determined that it was appropriate and financially responsible to move forward with the solar PV system install at the Public Works Building.


 
Options/Alternatives
Not Applicable
Consultation/Engagement
City Administration engaged with the following groups on this project:
  • ENMAX (current electricity provider)
  • MCCAC
  • City of Leduc
  • Internal Stakeholders - Fleet and Facilities, Engineering, Risk and Insurance, Asset Management, Public Works and Planning
Administration issued a Request for Proposal (RFP) for the solar installation in early May.  The RFP closed on May 22 and the successful proponent was awarded the project in early June 2019.
Implementation/Communication
The implementation process for the solar PV system installation:
  • Project approved by SLT on April 9, 2019
  • Expression of Interest sent to MCCAC on April 12, 2019
  • Request for Proposal for Solar posted on May 8, 2019
  • Request for Proposal for Solar closes on May 22, 2019
  • Project awarded in early June, 2019
  • Application form will be submitted to MCCAC in June 2019
  • Project Construction will start once the Funding Agreement with MCCAC is signed
Impacts
  • The move to solar would lock in an electricity price for the life of the solar installation (anticipated to a minimum of 30 years).
  • Installation would reduce corporate emissions by roughly 4% which will help to work towards the 50% reduction in corporate GHG emissions as set out in the Energy Management Plan and Greenhouse Gas Reduction Strategy
  • This reduction in emissions would equate to 58 vehicles being taken off the road.
  • Help to meet Priority Area #5 – Energy, of the Environmental Sustainability Action Plan.
  • The installation will result in a total annual savings of roughly $40,000 - $45,000.

Fiscal Impact
Financial Implications:
Estimated Total Cost of Solar PV System = $700,000
Estimated Grant Funding = $320,000

It is estimated that the solar PV system would generate 400MWh annually and could account for approximately 60% of the buildings electricity consumption. This would equate to an annual savings of $40,000 - $45,000.

The successful proponent offered a 15 year financing option of $3,150 monthly with APR of 3%.  This would equal an annual savings of roughly $7,000.
Included with the finance option is a 30 year performance warranty on equipment along with the supplier providing 60 months of on-going support. 
Attachments
No file(s) attached.

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