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
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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.
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.

Not Applicable
City Administration engaged with the following groups on this project:
  • ENMAX (current electricity provider)
  • 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.
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
  • 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.