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HomeMy WebLinkAboutORDINANCE 5880o� carFrr� f 4 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 5880 File Number: 2016-0272 OZARKS ELECTRIC COOPERATIVE CORPORATION, INC.: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE A 25 YEAR LICENSE AGREEMENT WITH OZARKS ELECTRIC COOPERATIVE CORPORATION, INC. FOR THE PURCHASE OF 100 SHARES AT THE OZARKS NATURAL ENERGY SOLAR FACILITY IN THE AMOUNT OF $34,000.00. WHEREAS, Ozarks Electric recently constructed the only ground mounted solar photovoltaic array in Northwest Arkansas and has offered 4,080 shares, each representing a single 400-watt solar panel, for purchase by the Cooperative's customers; and WHEREAS, the electricity produced by each panel will be credited to the member's account at a rate of $0.04 per kilowatt hour in 2016 and adjusted annually based on the wholesale cost of electricity; and WHEREAS, the purchase of 100 panels by the City would have a projected payback of 8 years with total savings over the 25-year life of the agreement estimated to be $75,000.00 and will help protect the City against the uncertainty of rising energy costs; and WHEREAS, the project supports continued energy market transformation, saves taxpayer money, helps protect the environment, will quadruple the amount of electricity the City currently gets from renewable sources, and will advance the City's goal of achieving an 80% reduction in community -wide greenhouse gas emissions. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore Page 1 Printed on 618116 Ordinance: 5880 File Number: 2016-0272 waives the requirements of formal competitive bidding and approves a 25 year license agreement between the City of Fayetteville and Ozarks Electric Cooperative Corporation, Inc. for the purchase of 100 shares at the Ozarks Natural Energy Solar Facility in the amount of $34,000.00. PASSED and APPROVED on 6/7/2016 Attest: 4'Z" (5, Sondra E. Smith, City Clerk Treasurer �,`yr•• Gkryi r FAYEiTEVIL,LE • •• TQIN SC�V,,4� Page 2 Printed on 618116 City of Fayetteville, Arkansas ix 1 ti .1 I Text File — - File Number: 2016-0272 Agenda Date: 6/7/2016 Version: 1 In Control: City Council Meeting Agenda Number: D. 5 OZARKS ELECTRIC COOPERATIVE CORPORATION, INC.: 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Status: Passed File Type: Ordinance AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE A 25 YEAR LICENSE AGREEMENT WITH OZARKS ELECTRIC COOPERATIVE CORPORATION, INC. FOR THE PURCHASE OF 100 SHARES AT THE OZARKS NATURAL ENERGY SOLAR FACILITY IN THE AMOUNT OF $34,000.00 WHEREAS, Ozarks Electric recently constructed the only ground mounted solar photovoltaic array in Northwest Arkansas and has offered 4,080 shares, each representing a single 400-watt solar panel, for purchase by the Cooperative's customers; and WHEREAS, the electricity produced by each panel will be credited to the member's account at a rate of $0.04 per kilowatt hour in 2016 and adjusted annually based on the wholesale cost of electricity; and WHEREAS, the purchase of 100 panels by the City would have a projected payback of 8 years with total savings over the 25-year life of the agreement estimated to be $75,000.00 and will help protect the City against the uncertainty of rising energy costs; and WHEREAS, the project supports continued energy market transformation, saves taxpayer money, helps protect the environment, will quadruple the amount of electricity the City currently gets from renewable sources, and will advance the City's goal of achieving an 80% reduction in community -wide greenhouse gas emissions. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and approves a 25 year license agreement between the City of Fayetteville and Ozarks Electric Cooperative Corporation, Inc. for the purchase of 100 shares at the Ozarks Natural Energy Solar Facility in the amount of $34,000.00. City of Fayetteville, Arkansas Page 1 Printed on 61812016 Peter Nierengarten Submitted By City of Fayetteville Staff Review Form 2016-0272 Legistar File ID 6/7/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 5/20/2016 Sustainability & Resilience / Chief of Staff Submitted Date Division / Department Action Recommendation: Staff recommends contracting with the Ozarks Electric Cooperative for the purchase of 100 shares (panels) at the Ozarks Natural Energy Solar Facility. 4470.9470.5315.00 Account Number 15009.1 Budget Impact: Building Efficiency Improvements Project Number Budgeted Item? Yes Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? NA Budget Adjustment Remaining Budget Previous Ordinance or Resolution # Original Contract Number: Comments: Fund Project Title $ 60, 767.00 $ 17, 200.00 $ 34,000.00 Approval Date: V20140710 CITY OF Fay%rle A8 MEETING OF JUNE 7, 2016 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Peter Nierengarten, Sustainability and Parking Director DATE: May 20, 2016 SUBJECT: Ozarks Natural Energy — Purchase of 100 Solar Panels RECOMMENDATION: Staff recommends contracting with the Ozarks Electric Cooperative for the purchase of 100 shares (panels) at the Ozarks Natural Energy Solar Facility. BACKGROUND: Ozarks Natural Energy is a 1 Megawatt (MW) ground mounted solar photovoltaic array that was recently constructed on a 4 acre site along Hwy 412 just east of Springdale. The array has 4,080 shares that are available for purchase by Ozarks Electric members at a cost of $340 per share for 25 years. Each share represents a unique 400 watt solar panel that is owned by the member. Electricity produced by the panels will be credited to the member's account at a rate of $0.04/kWh for 2016. That rate will be adjusted upward annually based on the wholesale cost of electricity. Ozarks Electric provides all the operations, maintenance and repairs for the panels and provides insurance coverage in the event that the array or any associated equipment is damaged. Ozarks Natural Energy is the first and largest Electric Cooperative commercial scale solar facility in Arkansas. There is no other utility company in Fayetteville that the City could contract with to purchase solar electricity shares (panels). DISCUSSION: The City of Fayetteville's purchase of 100 shares (panels) at the Ozarks Natural Energy Solar Facility demonstrates the City's continued committed to renewable energy and energy efficiency. This project also supports continued renewable energy market transformation, saves taxpayer money and helps protect our environment! The purchase of 100 panels would cost $34,000 and have a projected payback of 8 years. Direct electricity savings over the 25 year life of the agreement are projected to be over $75,000. Fayetteville's 100 panels will generate 54,000 kWh of electricity per year which is triple the amount of electricity that the City currently gets from renewable sources. The electrons generated by these solar panels will offset approximately 20% of the electricity consumed at Fayetteville's new Regional Park set to open later this year in South Fayetteville and will save the City over $2100 in electricity costs during the first year. Additionally, this project will help protect Fayetteville from the uncertainty of rising energy costs over the 25 year life of the project. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 The City of Fayetteville's purchase of 100 shares (panels) at Ozark Natural Energy will help further development of renewable energy generation in Northwest Arkansas. It will also advance the City's goal of achieving an 80% reduction in community -wide greenhouse gas emissions by offsetting 100,000 Ibs of carbon dioxide emissions per year and prevent nearly 50,000 Ibs of coal from being burned to generate electricity. The City's purchase of 100 shares (panels) in Ozark Natural Energy was discussed at the April 18, 2016 Environmental Action Committee meeting and received unanimous support. BUDGET/STAFF IMPACT: The Building Energy Efficiency Project Budget (Account: 4470.9470.5315.00, Project No. 15009.1) will be used to fund the $34,000 purchase of 100 solar panels at Ozark Natural Energy. Attachments: Ozark Natural Energy License Agreement Contact Ozarks Natural Energy Fact Sheet License Agreement Ozarks Electric Cooperative Contract Number I This -tense Arg-rPernent (Agreernent) is made and entered jr,to this day or y .20 b ---1 and between 0,,arks Electric C000cral-lve, Corporatioll, Inc., 'Ozarks Electric;, viith its principal Mace of business at 3641 Wed nal-on Drive, Faye, eville, Arkansas 72704, and ',Is maillng address at PO Box 848, Faye ttevj lie, Arkansas 72702, and, the Member, identified as follows: Member Name: ACCOUnt KII-ILI[Tiber: Street Address: -Ufv'.YV'X VI Am Se-v.(:p Address: 2 _6 W- Vj- CiI.Y1 "U, 76) St,,W': Zip Code: Teleluhune NUM-00r-4-79 75 8 972 Share Ownership terns T-1 i SUIDICCt to the - rf s are conditions set fOrth, Ozarks Electric hereby y girants to the above mentioned Member number of shaves oftl c toiaq production of Ozarks Nat.j:-al T� -r-lese shall be credii.od 1- in(, M-rnbpr'!--' accoltilt based on 0241%- share o"he tolal Prodticlion of IN F. on a pei-mo.,all- basis, Shares may only be, purchased it-, single or consecut'vely-riimbeied groups. 1 he rnembe! will receive Ig the designalcal lc rm lo each of the Vlo,,,xig shares, identificid, 'hc- share, p:-oc-2clion c,ed,ls cillocaled Clui-ir bv 'he followi.-,c; i na-uo number(s): 00 See CAOLGNej If is it-, se: -vice at Ozarks Flect; ic's facility lacared in S.pri:-igriaic., A'\Irkansas MembeT acknnvvledq-es ana act,-..._.. 0?!arl<s -.c vvill rotain sole u.,.,nership, po5Fes silcm �--.nd cniar 1 i f P ... the exc'usfve rnaHnian -ai-jo operate. Membel also acknov..,ledges that Olzar.<s E.ectn'- may replace any equ,pmero any malK e, md oel, braq:-Icl or lyE, -; oe r qUilonlent 0 as 78ik5 Enai lectric iy 6eat it ct s sote Only rne ered resic"entiall and conIniercia. accounts vvil. be permitted to re".elve share ndt.puit cTe.dit as Pl.rt of IN.'s program. Non rr-eir-C--i ant•; EIC( (ILIValtS .Ire not A-i d D A;r2 o✓'th i Membe vMH be !eauired for each s-Decific service Consideration As con-siderallon for each share granted, the Menibu oil, Pay Ozarks Electric the sun-] I-] W $340.00 per share to receive .0245% of the total output Of O.r\i.E- &mm puts use price Inclucles M appcaNe saves tax. Totel share,,; available for purchase wil: be limited W 4-080s1nares. The purchase price for each share wo be calculated as Nkmy the oyinal purchase price o,(Ill oe docmasedata level of 4% every year We program ) has been active_ Surrender Ozarks EAUHq for Ozarks E&MIcs sole use, all Ronewaole Energy Credits associated eta each share pursuant to this Agreement. Terms Each share shall be active after the enrallmenl pedcol set forth by Ozarks Electric and will contirme for 25 years or, if earlier, unto the death of the Member, subject to early fermi-r1Znon as ryovided n this Agreement. Limited Purchase Quantity Members can pwdiase shares of O.N.E. in ClUantities [anging irons One (`) to 100. The arnoun'T purchases: cannot exceed the total annual usage of the pailicipating account. in we event that crecilts from om-chased shares exceed monthly usage, rernainirg credits rcay be carried over or credited W the follovving months' usage- If, irorn. month -to -month, a cr,-.,d;t is carried over, these credits Shall mmw until the end of the calendai year. At the end of the calendar year H any credits dill aunaln. Vvy will become prorertyofll 0/arks Electric - Enrollment Termination in Me event -hat the partamalung Member decides W inove acations cli disrontinue [mrUcipabac; in the program sharps may be homfened to any the" acWe Wanks ENWO account At acharwW nal1ce and oeimission from Ozciks Eleonn A Is the Monber's rPSDOnSibiWy M n5" Chmh WMI of such change in wrltmg at hast 30 days prior lo Me cReclive chip of change Shares rnay also t�,,e gj�ftled or assigned to a ny convuemal or res(derMs account Dun caclit may act exceed tWal cons jrn,)Voc- of 11.-I ie account to wNch key we ti anserred, Notificatiori will include the following information: 1 .. I -lenriber's naire and mailing address, L. Agerr ment number, nwober of shams to be Varis%md and shoe denWicatan numoers (--LiIcrit biked ad"dw--s-s Nek,,,, billed address 5 The name ofthe KANdual orel-aiLyto,,P,,honc Moryibei is assigning this, Agi eel flPFI', G tvlember's stir! ender of the Agreiranierit: and 7. The ef`ective dam of Yoh change or assWriment UnIps0he pijr,lumf A Mons of OJN.E. agrees to tia-lisfes Me gliam credi's to ano-hef aopiovod a.ddmss wUNn Won Electric! NMWM the dam credits will remain assoc.-ialec with the specific location listed in this Agnament, regardless of occuparcy or changes it that location. Separate forms as r-rode available by 0,,nrks Eiectric) must be competed to tranJc.-.-r location or ownership of share credits. -S N -1 t 1 f a IF I'l --1 _I i A -�! i e e f-. i i 3 Share Buyout The Member agrees that, at any time and at Ozarks Electric's sole. cliscrPT.on, Ozarks E:ect-ic may erect to rer,UrCnase the credits for one or more cf 'he share,, purchascd by the Member, and the Member wi.1 sell these shares to Ozarks Electric pUrziU r is as follows:t it to the terms L. Ozarks Electric will notify tl-e member of Ozarks Electric's election to (-_,xeicj_--e its ref-kirChF-se fi(l;",;( at least 60 days prior to the [Mll"ChaSe of 1M.,ember-ovvi 1pf; shales. In tlmF' event -these snares are transfe.,reu' to ancti-ter that subseCiLlent Member will be 211albilp for repi. if chase. -kt E'eciric has riiade all payments to At sUch 11frie as every share tray been terminated, and Q7-rii Mlember, this Agreement will terminate and OzarksElect: c will -hor ol� Nons to the Ele-, I I tea no fu i bliga Merriber. Ozarks Electric Obligations C.)z a.. r k s Electric agrees to: -,row,,Ie all maintenance for O.N.E. Oza-k,Elech-jr: shall be rosrjenj ;ie f()r ein-surinus Lhi.,t O.N I an eFzcil orils components meet all applicable cooes, standards and regtilct--ry:-P-r-iuireIT-,eflts at !fie tirne of installation and throjg�ici il the er-ml or Mis Agleemen' Iri We even- -11 ",P41friew Failure, Ozarks Elect,ic wi',,' br:ng the equiprlien' oac. to viorldrig order as quickly as possible. In the event darriagcd ecuinment ri-lav be disco:nnec4od -ro:m the or Is o3hervv-se, not ocneratwo electric- energy.. Une Member will not receive WIVOLIO.pej[ uribl O.UL is reconnecterd the electrical c,.-:d. :require and rp.a.ritair, at is sole Cost, instance to- 0 N E. Ozarks Electr c will he listed as tne sole loss, payee for SILICh insurance. ift We f vent par! or 11-16, whole c.f ',),N-F.. damaged bevow"i repai:-, Ozar4s Pl-cl,ic �.nay elect, at HS sole disCretron, to SUCh part,, ui 'he vvnole so.al array 14 deemed necessary. Credi's for Shares, Owned During each monthly b,:lInc, period, , credit payment v^ ii be provided to the mem.-Der based cc,-i the actual energiv produced by trie MeMbe"S pUrchascd she. -es MI MiDliled oy an ene rciv rate credit `actor per kWh, deterniwnec as follows - A Y. B x C - Credit payme:nt reflected or; Ctfl refit month U;,:iri.q statemierr, A = Total energy out of Tie critjio P - Ene.qy !ate rr�-.n:fit solar array facility foi the prior moni.l. fact,-.r 'KW . of ou:-Chasedl shares as meast..,ed by ap,piqpricite metering by rl,efriber devices divided by the total pane's riln, o.petallng diji-ing the - Prior moI I: r- [ a, 1,'s Narj-a, t: , oir, -,1 1 4 J.. !.ICY k- :� ICE � P,,_2 - o I i I e r The ir,"I'al F, i rgy Rate Credit Factor to be ap-.)Iied through December 2016 shall be $0.040 per I<Wh Jhe energy rate credit facto,- sh,91l be aidlustod, allnually, beginning with the February billing sm4(,-jifl:-t, In reflect changes in the whojesaie cost of Dow-;erlha! is included in the retail rates to the member. RoHowing the irflUcil period, the energy rile credit <4-tali be clet"eirrimed as follows: ?RC x fl -i (AWC- x PCP) ) = Curreri' year energy rate credit in $A<Wh ?RC Prior year energy tate crecit in $/M NA -IC Poflinci five Yea- rve:-a( e Clange H-1 1?10 avo'Hue -vvliolosale cost per kVVh sold p r- h e total whniesa le p o,,-ve r ost for the pi eViO U-S five (5) calendar years) The 'total ope:-ating (eVOnL;'e for the previous five (5) calendar r years) I In the event Me rapplical--)"e service iocation associated vvfth this Agicernent is removed and/or not In service, Ozarks ---*Icct!-i(: will rinaK(? eVe:-V ELte-lpl 10 Cmilact the membef to determine where share credits can be transferred. Dijrii--,g this lime. the electricity produced by these panels will be provided Dectric after 30 'cc, Me, grid cystem and Litilized LJV the entire rT)Ornbership of Ozarks If a days the I'Verribo, hstprA in th.s AveeMeW cannot e oca:c A to dete,mine mnere share Credits should be a . `eri, share credit values J becom,soleownersr flp of Ozarks Electric. In ti,e event that credits fz,=r sl-,,-.:-e cvvNershill, suipasses consump-ion of an assigned account, credits will be car:. ie'! for"'J'a Id to Member's subsequent Nils for this account. If at the end of the calendar year crc dils from Sharf-s c- O.N.E. remain, these credits MI become property of Ozarks Electric. Governing Law/Jurisdiction/Veni-le 'f1hi5 Acireer-e.-I sha,..1 b-..' deemed, to have been mar e in, and shall be construed under, the internal laws of the of Atkansas,'vvithoul regard to the principles of conflicts of laws kmeof. EOF, the :his Ag-ee'ne.ntas the da c wri vi i below. WFNESS WHERE parties have executed 'I AN c er 1-1,11Ur -MeriliDel Name 1-please prin-Vi Date Q in"I P OZARKS Ft F:(-.TPif' COOPERATIVE COPPO AT 17PRES-NI` ATINF Naitie: O.N.E. 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Participating members receive a credit on their monthly bill based on the total output from the facility. Each member's individual bill credit is determined by the percentage of output "shares" for which they sign up during the enrollment period. Currently this program is only available to Arkansas members. XL AM MM MM M + Our facility produces energy, which is then sent on to our system, or grid, and members who participate receive credit based on purchased shares of the facility's total monthly output. With Ozarks Natural Energy the cost. of enjoying solar power makes more sense than purchasing rooftop solar because even with rebates, rooftop solar is an extremely expensive option to purchase, install and maintain. The price per share promises payback with more than 10 years remaining on the panel's life. Another wonderful benefit with Ozarks Natural Energy is that it makes no impact on members' homes. It also doesn't require that members own their home or property, as no equipment needs to be installed. There is also no impact on homeowner's insurance. With rooftop solar, there is an impact on the home's structure. There is also no guarantee of solar power viability and it can impact homeowner's insurance, By participating in Ozarks Natural Energy, our members can be a part of history and something truly special. www.ozarksecc.com/ONE ozarks ELECTRIC COOPERATIVE 5- 2year life cycle Generates over 2 million kWh per year Power 150-200 homes 22 million hours o watching t l vision 17.6 million hours Of Orki ng on a COutr Coe emir ions from 17(`)kj700 e' gallons of oaso��r��: consurned It wouid take 1,243 acres Of U.S: forest to absorb +► V the same amount ie of CO: in one year NORTHWESTARKANsAs C... A, Woo __DemoFdL t .I `. R.,._:c'—Try :l`_ fl'J.'=.�2 ��:.�_:PAi:479•;�a�; ills;.. 0.�V.4',NVVA�;7 AFFIDAVIT OF PUBLICATION I Cathy Wiles, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Democrat -Gazette, printed and published in Washington County and Benton County, Arkansas, and of bona fide circulation, that from my own personal knowledge and reference to the files of said publication, the advertisement of: CITY OF FAYETTEVILLE Ord. 5880 Was inserted in the Regular Edition on: June 16, 2016 Publication Charges $ 128.70 Cathy Wiles Subscribed and sworn to before me ThisZv day of 3(X-U, 2016. Notary Public My Commission Expires: '717- Izr ASHLEY DAVIS Arkansas - Washington County Notary Public - Comm# 12694247 LMy Commission Expires Jul 2, 2025 **NOTE** Please do not pay from Affidavit. Invoice will be sent. Ordinance: 5880 File Number: 2016-0272 OZARKS ELECTRIC COOPERATIVE CORPORATION, INC.: AN ORDINANCE TO WAIVE THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND AUTHORIZE A 25 YEAR LICENSE AGREEMENT WITH OZARKS ELECTRIC COOPERATIVE CORPORATION, INC. FOR THE PURCHASE OF 100 SHARES AT THE OZARKS NATURAL ENERGY SOLAR FACILITY IN THE AMOUNT OF $34,000.00. WHEREAS, Ozarks Electric recently constructed the only ground mounted solar photovoltaic array in Northwest Arkansas and has offered 4,080 shares, each representing a single 400-watt solar panel, for purchase by the Cooperative's customers; and WHEREAS, the electricity produced by each panel will be credited to the membei s account at a rate of $0.04 per kilowatt hour in 2016 and adjusted annually based on the wholesale cost of electricity; and WHEREAS, the purchase of 100 panels by the City would have a projected payback of 8 years with total savings over the 25-year life of the agreement estimated to be $75,000.00 and will help protect the City against the uncertainty of rising energy costs; and WHEREAS, the project supports continued energy market transformation, saves taxpayer money, helps protect the environment, will quadruple the amount of electricity the City currently gets from renewable sources, and will advance the City's goal of achieving an 80% reduction in community -wide greenhouse gas emissions. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and approves a 25 year license agreement between the City of Fayetteville and Ozarks Electric Cooperative Corporation, Inc. for the purchase of 100 shares at the Ozarks Natural Energy Solar Facility in the amount of $34,000.00. PASSED and APPROVED on 6/7/2016 Approved: Lioneld Jordan, Mayor Attest: Sondra E. Smith, City Clerk Treasurer 73736595 June 16, 2016 RECEIVE JUN 22 2016 `,y �t, 4Y�T�C RKS OFF F