Number
180457
Version
SUBSTITUTE 1
Reference
091066, 091269, 131035, 170337, 171843
Sponsor
ALD. JOHNSON, KOVAC, MURPHY, BAUMAN
Title
Substitute resolution authorizing the Department of Administration to enter into a Solar Services Agreement to design, supply, install, commission, maintain, finance, and co-own 1.1 megawatts of solar photovoltaic (PV) panels on 6 City buildings.
Analysis
This resolution authorizes the Department of Administration to enter into a Solar Services Agreement to design, supply, install, commission, maintain, finance, and co-own 1.1 megawatts of solar photovoltaic (PV) panels on 6 City buildings. Council File Number 171843 previously authorized the Department of Administration to accept $211,882 of incentive funding from the Focus on Energy program, with the panels being co-owned by the City and a participant investor. The approach allows the project to use federal tax credits to reduce the system cost to the City and the amount of capital needed to fund the project. The project needs to be installed by the end of 2018 to ensure that the Focus on Energy incentive can be used on the project.
Body
Whereas, On December 22, 2009, the Common Council adopted File Number 091066 supporting the “25 x 25” goal, which called for generating 25 percent of the City’s electricity from renewable resources by 2025; and
Whereas, On February 9, 2010, the Common Council adopted File Number 091269, expressing a commitment to promoting solar energy in the City; and
Whereas, On December 17, 2013, the Common Council adopted File Number 131035, approving and directing implementation of the City's sustainability plan, ReFresh Milwaukee; and
Whereas, The City's sustainability plan calls on the City to reduce energy use 20% by 2020 and increase reliance on renewable energy to 25% by 2025; and
Whereas, According to the Solar Energies Industry Association, the cost to install solar panels has dropped by more than 70% since 2010; and
Whereas, On June 20, 2017, the Common Council adopted File Number 170337, expressing the City’s support for the Paris Climate Accord; and
Whereas, The City has made a commitment to take actions to reduce climate pollution in alignment with the City’s energy efficiency and renewable energy goals, and continues to support the principles of the Paris Climate Accord; and
Whereas, The City Energy Reduction Team is working to reduce energy use across City operations; and
Whereas, The Department of Administration issued a Request for Proposal (#15921) to identify the most financially advantageous proposal from qualified solar installers and participant investors to design, supply, install, commission, maintain and finance 6 solar electric systems totaling 1.1 megawatts; and
Whereas, The Department of Administration has reviewed the proposals and selected a recommended vendor; and
Whereas, The proposal is for a 25-year agreement that is cash-flow-positive annually for the City over the life of the project, as compared to existing energy costs, assuming an annual electricity rate increase of 2.5%; and
Whereas, The solar developer shall be responsible for insurance and maintenance of the system over the life of the agreement unless the City buys the developer’s share of the system; and
Whereas, The City will co-own the PV systems with a participant investor so that the project can utilize federal investment tax credits that are available for solar PV; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of Administration is authorized to enter into a 25-year Solar Services Agreement to design, supply, install, commission, maintain, finance, and co-own 1.1 megawatts of solar photovoltaic (PV) panels on 6 City buildings.
Requestor
Drafter
LRB171684-2
Eric Shambarger
Environmental Collaboration Office
Teodros W. Medhin
7/12/2018