HomeMy WebLinkAbout157-19 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 157-19
File Number: 2019-0384
OZARKS ELECTRIC COOPERATIVE CORPORATION CHANGE ORDER NO. 1:
A RESOLUTION TO APPROVE CHANGE ORDER NO. 1 TO THE CONTRACT WITH OZARKS
ELECTRIC COOPERATIVE CORPORATION IN THE AMOUNT OF $156,128.00 FOR ADDITIONAL
ELECTRICAL MAKE READY INFRASTRUCTURE COSTS ASSOCIATED WITH THE SOLAR
PROJECTS AT THE TWO FAYETTEVILLE WASTEWATER TREATMENT FACILITIES, AND TO
APPROVE A BUDGET ADJUSTMENT
WHEREAS, approving Change Order No. 1 will allow Ozarks Electric Cooperative Corporation to make
additional necessary changes to the onsite electrical infrastructure.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Change Order
No. 1 to the contract with Ozarks Electric Cooperative Corporation in the amount of $156,128.00 to
perform additional work associated with the solar power projects at the Fayetteville Wastewater
Treatment Facilities.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget
adjustment, a copy of which is attached to this Resolution.
PASSED and APPROVED on 7/2/2019
Page 1 Printed on 713119
File Number: 2019-0384 Resolution 157-19
Attest:
Sondra E. Smith, City Clerk TreasukO`GLER''���i,
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Page 2 Printed on 713119
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
I(479) 575-8323
Text File
File Number: 2019-0384
Agenda Date: 7/2/2019 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 9
OZARKS ELECTRIC COOPERATIVE CORPORATION CHANGE ORDER NO. 1:
A RESOLUTION TO APPROVE CHANGE ORDER NO. 1 TO THE CONTRACT WITH OZARKS
ELECTRIC COOPERATIVE CORPORATION IN THE AMOUNT OF $156,128.00 FOR
ADDITIONAL ELECTRICAL MAKE READY INFRASTRUCTURE COSTS ASSOCIATED WITH
THE SOLAR PROJECTS AT THE TWO FAYETTEVILLE WASTEWATER TREATMENT
FACILITIES, AND TO APPROVE A BUDGET ADJUSTMENT
WHEREAS, approving Change Order No. 1 will allow Ozarks Electric Cooperative Corporation to make
additional necessary changes to the onsite electrical infrastructure.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Change Order No. 1 to
the contract with Ozarks Electric Cooperative Corporation in the amount of $156,128.00 to perform additional
work associated with the solar power projects at the Fayetteville Wastewater Treatment Facilities.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a
copy of which is attached to this Resolution.
City of Fayetteville, Arkansas Paye 1 Printed on 71312019
Tim Nyander
Submitted By
City of Fayetteville Staff Review Form
2019-0384
Legistar File ID
7/2/2019
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
6/13/2019 WASTEWATER TREATMENT (730)
Submitted Date Division / Department
Action Recommendation:
Staff recommends approval of change order with Ozarks Electric Cooperative in the amount of $156,128.00 for
additional electrical make ready infrastructure costs associated with the 10 MW of Solar Power Generation and 24
MWh of Storage at the two Fayetteville Wastewater Treatment Facilities, and approval of a budget adjustment.
Budget Impact:
5400.730.5800-5801.00
Account Number
18027.1801
Project Number
Budgeted Item? Yes Current Budget
Funds Obligated
Current Balance
Does item have a cost? Yes Item Cost
Budget Adjustment Attached? Yes Budget Adjustment
Remaining Budget
Water and Sewer
Fund
Solar Arrays
Project Title
$ 560,818.00
$ 560,818.00
$ -
$ 156,128.00
$ 156,128.00
V20180321
Purchase Order Number: 2018-00000877 Previous Ordinance or Resolution # 6115
Change Order Number:
1
Original Contract Number: 2018-00000051
Comments:
Approval Date:
CITY OF
FAYETTEVILLE
W4W ARKANSAS
MEETING OF JULY 2, 2019
TO: Mayor and City Council
THRU: Don Marr, Chief of Staff
CC: Tim Nyander, Utilities Director
FROM: Peter Nierengarten, Sustainability Director
DATE: June 10, 2019
SUBJECT: Change Order for Solar Power and Storage
CITY COUNCIL MEMO
RECOMMENDATION:
Staff recommends approval of change order with Ozarks Electric Cooperative in the amount of
$156,128.00 for additional electrical make ready infrastructure costs associated with the 10 MW
of Solar Power Generation and 24 MWh of Storage at the two Fayetteville Wastewater
Treatment Facilities, and approval of a budget adjustment.
BACKGROUND:
On November 20, 2018, per Ordinance 6115, City Council approved a Trilaterial Agreement
with Ozarks Electric and Today's Power, Inc. that provides for the development, construction
and operation of 10 MW of Solar Power Generation and associated 24 MWh of energy storage
at the two Fayetteville Wastewater Treatment Facilities. The project consists of 5 MW of ground
mounted solar photovoltaic panels and 12 MWh of battery storage at each facility. Necessary
site electric improvements to connect to the solar arrays at the two Wastewater Treatment
Facilities were estimated to cost $560,818.38 as part of the original design.
During the review of the project by the Arkansas Public Service Commission, the agency
required a design change to the onsite electrical infrastructure to isolate the back-up generators
from the solar array and battery storage at the Noland Wastewater Treatment Plant. This
change required an additional circuit (consisting of wires, poles, cross -arms, insulators, guy
wires and other infrastructure) to be added to the make ready improvements at the Noland
Plant. The added cost for this additional infrastructure is $156,128.00, bringing the total make
ready cost for the entire project to $716,946.38. The original return -on -investment (ROI) for the
project was 3.1 years and with the added cost the ROI is 3.9 years.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
BUDGET/STAFF IMPACT:
A budget adjustment will be necessary to move funds in the amount of $156,128.00 from the
Sanitary Sewer Rehabilitation account to the Solar Arrays account within the Water and Sewer
fund to cover the cost of the change order.
Attachments:
Change Order Agreement
Ordinance 6115
Budget Adjustment
FACILITIES UPGRADE CHANGE ORDER AGREEMENT
This AGREEMENT (this "Agreement"). dated as of , 2019, is made by
and between the City of Fayetteville. Arkansas (the "City"), and Ozarks Electric Cooperative
Corporation ("OECC") (each. a "Party" and collectively, the "Parties") for the purpose of
achieving benefits to each of the Parties from solar power generating and energy storage facilities
at the City's East water treatment plant located at 1400 North Fox Hunter Road, Fayetteville,
Arkansas (the "East Plant"). This Change Order Agreement deals specifically with the construction
and upgrade of the City's facilities necessary to make the property and facilities of the City ready,
at the East Plant location, to allow for the interconnection and storage of electric energy at the
City's East Plant and to establish the cost of same.
AGREEMENT
1. Facilities Upgrade Chance Order. Ozarks Electric Cooperative is requesting a
Change Order to the Make Ready Construction costs associated with the Solar Array
Interconnection at the City's East Plant, located at 1400 North Fox Hunter Road, Fayetteville,
Arkansas. During the Net Metering Application review process, the .Arkansas Public Service
Commission (APSC) expressed concern with the potential of Non -Renewable energy from the
plant's backup generator being able to flow back onto the OECC distribution system. In order to
eliminate this potential problem. OECC had to implement a design change that resulted in
additional labor and material costs above the original Make Ready Cost estimate provided to the
City. After the design modification, the cost estimate for the Make Ready Construction increased
to $716,946.
2. Cost for Change Order. The City shall pay to OECC the sum of $156,128 for the
design modification required to satisfy the APSC. Such payment shall he due and payable to OECC
within in thirty (30) days of the City's acceptance and approval of the invoice for the Change Order
work performed pursuant to this Agreement, as described in Exhibit A.
IN WITNESS WHEREOF, the Parties have duly executed and delivered this Agreement as of the
date set forth above.
CITY OF FAYETTEVILLE,)ARKANSAS
. Jo •.
Title: Mayor
Dated: lao
Attest:
�� .• GIT y •'�Fy�•.
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Name: S�„dr�� E. S.r.t� =::�:
Title: 9�4 NSP`' ��
OZARKS ELECTRICAL COOPERATIVE
CORPORATION
By:
-Kl--
Name: Mi hell Johnson
Title: President & CEO
Dated:
2
Original Facilities Upgrade Costs
ORIGINAL COST ESTIMATE
WEST FAYETTEVILLE SOLAR PLANT- TOTALS
NEW CONSTRUCTION
RETIRE CONSTRUCTION
ROCK CLAUSE
RECLOSER COSTS
FIBER COSTS @ 2750 FT.
METERING AND AUTOMATION COSTS
DISTRIBUTION TRANSFORMER COSTS
TOTAL ESTIMATE
EAST FAYETTEVILLE SOLAR PLANT
NEW CONSTRUCTION
RETIRE CONSTRUCTION
RECLOSER COSTS
FIBER COSTS @ 20,600 FT.
METERING AND AUTOMATION COSTS
DISTRIBUTION TRANSFORMER COSTS
TOTAL ESTIMATE
TOTAL MAKE READY UPGRADES
EXHIBIT A
Description of Change Order Costs
FINAL DESIGN COST ESTIMATE
FINAL DESIGN COST ESTIMATE 716,946.38
ORIGINAL COST ESTIMATE 560,818.38
TOTAL CHANGES TO EAST SIDE ESTIMATE 156,128.00
TOTAL CHANGE ORDER AMOUNT 156,128.00
I
WEST FAYETTEVILLE SOLAR PLANT - TOTALS
424,382.83
NEW CONSTRUCTION
424,382.83
115.76
RETIRE CONSTRUCTION
115.76
30,000.00
ROCK CLAUSE
30,000.00
24,000.00
RECLOSER COSTS
24,000.00
2,062.50
FIBER COSTS @ 2750 FT.
2,062.50
16,000.00
METERING AND AUTOMATION COSTS
16,000.00
(165,000.00)
DISTRIBUTION TRANSFORMER COSTS
(165,000.00)
331,561.09
TOTAL ESTIMATE
331,561.09
EAST FAYETTEVILLE SOLAR PLANT
322,477.20
NEW CONSTRUCTION
477,792.54
6,030.09
RETIRE CONSTRUCTION
6,842.75
24,000.00
RECLOSER COSTS
24,000.00
25,750.00
FIBER COSTS @ 20,600 FT.
25,750.00
16,000.00
METERING AND AUTOMATION COSTS
16,000.00
(165,000.00)
DISTRIBUTION TRANSFORMER COSTS
(165,000.00)
229,257.29
TOTAL ESTIMATE
385,385.29
560,818.38
TOTAL MAKE READY UPGRADES
716,946.38
FINAL DESIGN COST ESTIMATE 716,946.38
ORIGINAL COST ESTIMATE 560,818.38
TOTAL CHANGES TO EAST SIDE ESTIMATE 156,128.00
TOTAL CHANGE ORDER AMOUNT 156,128.00
I
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6115
File Number: 2018-0625
OZARKS ELECTRIC COOPERATIVE CORPORATION AND TODAY'S POWER, INC.:
-I
{
S
AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE MAYOR JORDAN TO
ENTER INTO AGREEMENTS WITH OZARKS ELECTRIC COOPERATIVE CORPORATION AND
TODAY'S POWER, INC. FOR THE DEVELOPMENT, CONSTRUCTION, AND OPERATION OF
SOLAR POWER GENERATION AND STORAGE EQUIPMENT AND FACILITIES AT
FAYETTEVILLE'S WESTSIDE AND NOLAND WASTEWATER TREATMENT FACILITIES, AND TO
APPROVE A BUDGET ADJUSTMENT TO PROVIDE FUNDING IN THE AMOUNT OF $560,818.38
FOR SITE IMPROVEMENTS NECESSARY TO CONNECT TO THE SOLAR ARRAYS
WHEREAS, on January 2, 2018, pursuant to Resolution No. 25-18, the City Council adopted an Energy
Action Plan which includes a goal of 100% clean energy consumption by City facilities by 2030; and
WHEREAS, the City's two wastewater treatment facilities are the largest electricity consuming
accounts making up approximately 67% of the City's overall electricity consumption; and
WHEREAS, installing solar power generating and storage facilities meets the City's goal of converting
to clean energy, will lead to improved reliability for the wastewater treatment facilities, reduce
dependence on backup generators, upgrade the electricity grid servicing the treatment plants and should
also result in cost savings to the City and taxpayers; and
WHEREAS, Ozarks Electric Cooperative Corporation ("Ozarks Electric") is the City's monopoly
power provider where the wastewater treatment facilities are located and is a shareholder in Today's Power,
Inc. ("Today's Power"), which will allow the City to obtain the benefits of a total package arrangement for
solar power generation, storage, maintenance, electrical upgrades, energy management, and net metering
that would not be possible otherwise.
Page 1 Printed on 11/21/18
Ordinance 6115
File Number. 2018-0625
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 for solar power facility installation and
related services at the Westside and Noland Wastewater Treatment Facilities, pursuant to the agreements
described below.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign a Tri -Lateral Agreement with Ozarks Electric and Today's Power for the development,
construction and operation of solar power generation and storage facilities and equipment at the
Westside and Noland Wastewater Treatment Facilities.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign two Ownership and Operations Agreements with Today's Power for development, construction
and operation of solar power generation and storage facilities which provides for 99% ownership of the
solar power generating system by Today's Power and 1% by the City and which requires Today's Power to
finance the purchase of, install and maintain the solar power facilities.
Section 4: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign two Lease and Easement Agreements with Today's Power for approximately 48.95 acres at the
Noland Plant and approximately 37.8 acres at the Westside Plant for the installation and operation of
the solar power generating facilities.
Section 5: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign two Solar Power Services Agreements with Today's Power for the purchase of solar power services
at a cost of 4.7673 cents per kilowatt hour.
Section 6: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign a Facilities Upgrade Agreement with Ozarks Electric in the amount of $560,818.00 for the
construction and upgrade of the City's facilities to allow for the interconnection and storage of electric
energy at the Westside and Noland Plants,
Section 7: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign an Energy Management Agreement with Ozarks Electric which provides for the management by
the City of back-up generators at the Westside and Noland Plants in order to reduce energy
consumption during peak conditions which will allow the City to remain on the large power off peak
rate as long as the tri -lateral agreement remains in effect.
Page 2 Printed on 11!11/18
Ordinance 6115
Fife Number. 2018-0625
Section 8: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment,
a copy of which is attached to the City Council Agenda Memo, in the amount of $560,818.00 to provide
funding for the make-ready site improvements authorized by Section 5 of this Ordinance.
PASSED and APPROVED on 11/20/2018
Page 3
Attest:
Sondra E. Smith, City Clerk Treasurer
-v: FAYETTEVILLE;
4.
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Printed on 11/21/18
City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar)
Budget Year Division WASTEWATER TREATMENT (730) Adjustment Number
2019 /Org2
Requestor: Shea Fankhouser
BUDGET ADJUSTMENT DESCRIPTION /JUSTIFICATION:
A budget adjustment is needed to move budgeted funds from the Sanitary Sewer Rehabilitation project to the Solar
Array project. The budgeted funds will be used to pay Ozarks Electric for a change order on the solar array project for
the City's two wastewater treatment facilities.
RESOLUTION/ORDINANCE
COUNCIL DATE
LEGISTAR FILE ID#
7/2/2019
2019-0384
L f1k H "bche ws-
6/13/2019 2:39 PM
Budget Director Date
TYPE:
JOURNAL #:
GLDATE:
CHKD/POSTED:
TOTAL - _ v.20190430
Increase / (Decrease) Project.Sub#
Account Number Expense Revenue Project Sub.Detl AT Account Name
5400.730.5800-5801.00 156,128 - 18027 1801 EX Fixed Assets - :
5400.720.5700-5815.00 (156,128) - 02017 1 EX Sewer Improvements - Sewer ImprovemE
H:\Budget Adjustments\2019_Budget\City Council\07-02-2019\2019-0384 BA Ozarks Electric Change Order 1 of 1