Eagle Point Energy License and Power Purchase AgreementMasterpiece on the Mississippi
Dubuque
NI- America City
11 I
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Set for Public Hearing on License and Power Purchase Agreement of
Public Works Facility Roof to Eagle Point Energy to provide Solar Energy
to the Building
DATE: July 12, 2011
Economic Development Director Dave Heiar is recommending that a public hearing be
set for August 1, 2011, on approval of a 25 -year License and Power Purchase
Agreement with Eagle Point Energy — 1, LLC to install solar panels on the Public Works
facility on Kerper Court and provide electricity to the facility.
Eagle Point Solar is proposing to install 850 solar panels on the northwest portion of the
roof. The benefits to the City include:
• This furthers the City's Sustainability Initiative
• An electrical cost savings of approximately $3500 per year
• One third of the proceeds from the sale of Solar Renewable Energy Credits
• 32 percent of the building's electrical usage will be provided from solar energy
• 319,556 pounds of CO2 will be reduced annually utilizing solar energy
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Mi ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director t
DATE: July 11, 2011
/,
Dubuque
AN-Amedcacity
2007
SUBJECT: Set for Public Hearing on License and Power Purchase Agreement of
Public Works Facility Roof to Eagle Point Energy to provide Solar
Energy to the Building
INTRODUCTION
This memorandum presents for City Council a resolution approving a License and
Power Purchase Agreement with Eagle Point Energy — 1, LLC to install solar panels on
the Public Works Facility on Kerper Court and provide electricity to the facility.
BACKGROUND
A top priority of the City Council is to make the community more sustainable. City Staff
has been working with Eagle Point Energy — 1, LLC for several months to determine the
viability of utilizing solar energy at the Operations & Maintenance Facility, located at 925
Kerper Court.
DISCUSSION
Eagle Point Solar is proposing to install 850 solar panels on the Northwest portion of the
City's Operation & Maintenance Facility located at 925 Kerper Court. The panels will
provide 260,000 kW AC power to the building to offset electricity usage from Alliant
Energy's power grid. Eagle Point Solar started business in 2009 and has executed 5
installations of solar panels in the region. Eagle Point Solar has informed staff that this
will be the largest installation in the State of Iowa to date.
City Staff with Eagle Point Energy — 1, LLC analyzed two years of electrical bills for the
building. The building is charged two rates; a peak rate (M -F 7am — 9pm) and off -peak
rate (all other times). The peak rates per month vary from $.0918 - $.1958, with a
yearly average of $.1385. The off -peak rates vary from $.0270 - $.0602 with an
average of $.0384.
The building consumed 321,918 peak kWh and 503,382 off -peak kWh. The panels are
estimated to produce 185,714 peak kWh and 74,286 off -peak kWh. A rough calculation
determines that purchasing the power generated from the panels at $.11 per kWh for
both peak and off-peak kWh will reduce the annual electrical bill for the building by
$3,500.
The License and Power Purchase Agreement (PPA) between the City and Eagle Point
Energy — 1, LLC allows Eagle Point Energy — 1, LLC to utilize the portion of the roof
needed for the solar panels and requires Eagle Point to sell the produced power to the
City at $.11 per kWh. The electrical rate will increase by 3% per year for the entire 25
year term of the agreement.
The federal government issues Solar Renewable Energy Credits to solar panel
installations. Solar Renewable Energy Certificates represent the environmental savings
impact of emission free solar energy production. Certain states have Renewable Energy
Portfolio standards ( "RPS ") whereby there are mandated power goals that need to be
reached by a certain date. Companies or individuals can purchase these credits to
increase their renewable energy portfolio. The credits earned by this project will be sold
and the City will receive a third of the proceeds.
The benefits from installing the panels for the building's electrical use are as follows:
• An electrical cost savings of approximately $3500 per year
• One third of the proceeds from the sale of Solar Renewable Energy Credits
• 32 percent of the building's electrical usage will be provided from solar energy
• 319,556 pounds of CO2 will be reduced annually utilizing solar energy
The electricity produced by the solar panels flows through a net meter with Alliant
Energy. Normally, the building will be using more electricity than the panels produce at
any given time. However, there are certain times that the panels will produce more
electricity than the building uses (ex. a sunny Sunday afternoon) and the meter will run
backwards. The kWh put back into Alliant Energy's grid are then credited on a monthly
basis and can be used later at a time when the building is using more electricity than the
panels are producing. Should any kWh credits remain after the month ends, they are
rolled to the next month and can be used then.
The solar panels are estimated to produce one -third of the building's total electric
demand. It should be noted that should electrical efficiencies in the building be made
that reduce the current electrical usage by two- thirds (a reduction of 544,698 kWh), the
building will be selling power back to Alliant Energy. Currently, the price that Alliant
pays for power from power providers (which the City would become assuming the two -
thirds reduction can be achieved) would eliminate the cost savings of the solar panels.
Alliant Energy's rate structure may change in the future and could eliminate this concern
but cannot be assumed that this will happen at this time.
RECOMMENDATION
I recommend the City Council approve the attached resolution to set for public hearing a
License and Power Purchase Agreement with Eagle Point Energy — 1, LLC for the
August 1, 2011 Council meeting.
ACTION STEP
The action step is to approve the attached resolution
F: \USERS \Econ Dev \Eagle Point Solar \PPA\20110711 Memo Set for Hearing License of Kerper Ct.docx
RESOLUTION
NO.231 -11
INTENT TO DISPOSE
OF AN INTEREST IN
REAL PROPERTY
OWNED BY THE CITY
OF DUBUQUE BY
LICENSE BETWEEN
THE CITY OF
DUBUQUE, IOWA AND
EAGLE POINT
ENERGY - 1, LLC AN
IOWA LIMITED LIA-
BILITY COMPANY
Whereas, the City of
Dubuque, Iowa (City) is
the owner of the real
property legally
--- described-as follows:
Roof space above the
land commonly known
as the western side of
the roof located at 925
Kerper Court, Dubu-
que, Iowa, legally
described. as Lot 2 of 2
of Kerper Industrial
Park in the City of
Dubuque, Iowa; and
Whereas, Eagle Point
Energy -1, LLC. desires
to ' license a parbottne
propertOo install solar
panels at the facility,
License",,. and : . Po
bg,Oe'
Purchase e Is
on file at the office of j
the City 'Clerk, City
Hall, 13th and. Central
Avenue, Dubuque,
Iowa; and
Whereas,. City and
Eagle Point Energy - 1,
LLC. have tentatively I
agreed to the License
and Power .Purchase
Agreement, which
among other things,
provides for a term
through September 1,
2026; and
Whereas, the City
Council believesit is in '
the best interest of the 1
City of Dubuque to 1
approve the License
and Power Purchase
Agreement.
NOW THEREFQRE; BE
IT 'RESOLVED' BY THE 1
CITY COUNCIL, OF THE.
CITY OF 'DUBUQUE;
IOWA:
Section 1. They City of
Dubuque. ,-intends, ; to
dispose• of its interest
in . the foregoing
described real property
by License and Power
Purchase Agreement
between Cityaand Eagle
Point Energy -1, LLC.
Section 2. The City
Clerk is hereby
authorized and direct-
ed to cause this
Resolution and a notice 1
to be published as
prescribed by Iowa I
Code Section 364.7 of a
,hearing on the
City's intentto
of the foregoing-
described real property
' by license 'td be + held
on the' 1st day of
August 2011, at 6:30
o'clock p.m. at the
Historic Federal Build-
ing, Council Chambers, 1
350• W. 6t ;Street,
Dubuque, Iowa
I passed, approved And I
adopted this 18th day ,
of July 2011.'
' Roy D. Buol, ,
Attest: Kevin S.
Firnstahl, Acting City
Clerk •
Published 'officially in '
the Telegraph Herald
Newspaper the 22nd
• day of July,, 20111.
I /s /Kevin S: Firnstahl,
Acting pity Clerk
,
1 1t 7/22
STATE OF IOWA {SS:
DUBUQUE COUNTY
I, Kathy Hefel - Goetzinger, a Billing Clerk for Woodward Communications, Inc.,
an Iowa corporation, publisher of the Telegraph Herald,a newspaper of general
circulation published in the City of Dubuque, County of Dubuque and State of
Iowa; hereby certify that the attached notice was published in said newspaper on
the following dates: July 22, 2011, and for which the charge is $29.26.
this ,Q'A day of
CERTIFICATION OF PUBLICATION
Subscribed to before me, a otary Public in and for Dubuque County, Iowa,
tary Public in and for Dubuque County, Iowa.
JANET K. PAPE
Commission Number 199659
My Comm, Exp. MC 11, 2013
RESOLUTION NO. 231-11
INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY OWNED BY
THE CITY OF DUBUQUE BY LICENSE BETWEEN THE CITY OF DUBUQUE,
IOWA AND EAGLE POINT ENERGY — 1, LLC AN IOWA LIMITED LIABILITY
COMPANY
Whereas, the City of Dubuque, Iowa (City) is the owner of the real
property legally described as follows:
Roof space above the land commonly known as the western
side of the roof located at 925 Kerper Court, Dubuque, Iowa,
legally described as Lot 2 of 2 of Kerper Industrial Park in
the City of Dubuque, Iowa; and
Whereas, Eagle Point Energy — 1, LLC. desires to license a part of the
property to install solar panels at the facility, License and Power Purchase
Agreement is on file at the office of the City Clerk, City Hall, 13 and Central
Avenue, Dubuque, Iowa; and
Whereas, City and Eagle Point Energy — 1, LLC. have tentatively agreed
to the License and Power Purchase Agreement, which among other things,
provides for a term through September 1, 2026; and
Whereas, the City Council believes it is in the best interest of the City of
Dubuque to approve the License and Power Purchase Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the
foregoing- described real property by License and Power Purchase Agreement
between City and Eagle Point Energy —1, LLC.
Section 2. The City Clerk is hereby authorized and directed to cause
this Resolution and a notice to be published as prescribed by Iowa Code Section
364.7 of a public hearing on the City's intent to dispose of the foregoing -
described real property by license, to be held on the 1 day of August 2011, at
6:30 o'clock p.m. at the Historic Federal Building, Council Chambers, 350 W. 6th
Street, Dubuque, Iowa.
Passed, approved and adopted this 18 day of July 2011
oy D. Bu I, Mayor
F:\USERS\Econ Dev \Eagle Point Solar \PPA\20110711_Resolution EPS Solar License set for public hearing.doc
IN WITNESS WHEREOF, the parties have duly executed this Agreement as
of the date first written above.
CITY OF DUBUQUE, IOWA
(OWNER)
By:
Roy D. uol, Mayor
By:
Key" S. Firnst -hl
Acting City Clerk
EAGLE POINT ENERGY - 1, LLC
(LICENSEE)
initial Ballast
Calculations by Area
Area LBS. and Note
'...
. v+.y
97 Lbs Ballast
133 Lbs Dock and Modules
200 Lbs total
Local: 200 Lbs
7.6 PSF
(2.62'x10')
Global: 200 Lbs
(7.5x10') ' 2.7 PSF
- 217 Lba11anilt - --'
133 Lbs Dock and Modules
Local: 29S Lbs 11.3 PSF
(F.32'i1u)
MINN: 29S Lbs s, + PSF
(7.rxioiy
w l ) Module Layout op
1 . ■ 1r
Schedule
Type
Module
Q1Y.
851
Note
Solangorid 235
2
Notes
199.995 kW DC total array
power
TV Row spacing
�r ....�r�.::r�
Sun
Energy
Partners
One LLC
30° SolarOocks
1rr-
SolarWorld 235
37.�'t6S.9.'s 1.17'
45.5 Lbs
90 Mph
if
30'
s
fa � 1 , I
Y
oQ
n n
a_
Alex 6
w..°. D..
3/3/11
Fars
1
5. This Consent may be executed in one or more duplicate
counterparts, and when executed and delivered by all the parties listed below,
shall constitute a single binding agreement:
6. All references in this Consent to any document, instrument or
agreement (a) shall include all exhibits, schedules and other attachments thereto,
(b) shall include all documents, instruments or agreements issued or executed in
replacement thereof, and (c) shall mean such document, instrument or
agreement, or replacement or predecessor thereto, as amended, modified and
supplemented from time to time and in effect at any given time.
IN WITNESS WHEREOF, the Undersigned by its officer thereunto duly
authorized, has duly executed this Consent as of the date first set forth above.
Accepted and agreed to:
DUBUQUE BANK AND TRUST,
as Lessor
B
By:
EAGLE POINT ENERGY — 1, LLC,
as Licensee
Barry Shear
Member /Manager
CITY OF DUBUQUE, IOWA
By:
By:
Roy D.
uol, Mayor
Ke in S. Fir stahl,
Acting City Clerk