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File #: 191604    Version:
Type: Resolution Status: Passed
File created: 1/21/2020 In control: COMMON COUNCIL
On agenda: Final action: 3/3/2020
Effective date:    
Title: Resolution relating to a lease and service agreement for the construction and operation of a solar photovoltaic system on a City-owned closed landfill at 1600 E College Ave.
Sponsors: ALD. SPIKER
Indexes: AGREEMENTS, ENERGY RESOURCES
Attachments: 1. Bauman Motion, 2. Proposed Substitute A, 3. FINAL LEASE WITH EXHIBITS - City of Milwaukee Solar Now, 4. Bauman LRB email, 5. Jimmy Carter email, 6. Final MISO 2019 Annual CONE filing381258, 7. 173860 Solar Now Rent, 8. Barnett_comments_on_MKE_Solar_Now_proposal_rev_1, 9. Barnett-ECO email, 10. Solar Field Estimated boundaries, 11. Milwaukee - Solar Now Estimated Rent Revenue.pdf, 12. Air National Guard (128 ARW) Support Letter.pdf, 13. Ltr of Support from Clean Wisconsin - 1.27.2020.pdf, 14. MilwaukeeEquityClimateAllianceSolarNow_LetterofSupport.pdf, 15. 128CommunityCouncil_Letter.pdf, 16. ECO email, 17. Letter of Support - NAACP Milwaukee Branch.pdf, 18. SolarSupport_SierraClubGreatWatersGroup.pdf, 19. LeagueofWomenVoters_LetterofSupport.pdf, 20. 350_SolarNow_LetterofSupport.pdf, 21. Solar Now M E M O R A N D U M, 22. Kovac email, 23. MU_Students for an Environmentally Active Campus_LetterofSupport.pdf, 24. CiepluchFollowUpEmail_ Airport Solar Project on City Landfill.pdf, 25. ECO memo to Public Works Committee re RECs Jan 2020.pdf, 26. Solar Presentation for Council.pdf, 27. SOLAR NOW AGREEMENT- fully executed.pdf, 28. DNR APPROVAL LETTER North College Closure Plan Mod 5-4-20.pdf
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
3/13/20201 MAYOR SIGNED   Action details Meeting details Not available
3/3/20201 COMMON COUNCIL ADOPTEDPass15:0 Action details Meeting details Video Video
2/20/20200 PUBLIC WORKS COMMITTEE SUBSTITUTED

Minutes note: Proposed Substitute A
Pass5:0 Action details Meeting details Video Video
2/20/20201 PUBLIC WORKS COMMITTEE RECOMMENDED FOR ADOPTION

Minutes note: Dave Misky - DCD Ald. Spiker Erick Shambarger - ECO Luke Knapp - LRB Elizabeth Hittman - ECO Col. Locke - Air National Guard Leif Otteson - Gateway to Milwaukee Sup. Jason Haas Atty. Jeremy McKenzie - CAO Rick Stasick - WE Energies
Pass5:0 Action details Meeting details Not available
2/20/20200 PUBLIC WORKS COMMITTEE AMENDED

Minutes note: Section 18 of the “FINAL LEASE WITH EXHIBITS – City of Milwaukee Solar Now” attached thereto, as follows: 18. Marketing. Tenant shall have the exclusive right to own and operate the PV System during the Term. In the event that marketing rights are sold to a third party, Tenant reserves the right to view and approve the content of such third party’s marketing program related to the PV System, such approval not be unreasonably withheld. [[In addition, Tenant reserves the right to market that Landlord (as a Customer) is a participant in the “Solar Now” program through a mutually agreeable joint press release. Landlord acknowledges that under the Service Agreement, Tenant may use Landlord’s business name and/or website address in Solar Now promotional materials, and Tenant will provide the Landlord with public recognition of Landlord’s commitment to renewable energy under the Solar Now program.]]
Pass5:0 Action details Meeting details Video Video
2/20/20200 PUBLIC WORKS COMMITTEE AMENDED

Minutes note: EXHIBIT E of the “FINAL LEASE WITH EXHIBITS – City of Milwaukee Solar Now” attached thereto, as follows: On page E-1, the first sentence is amended to read: Annual Rent due and payable under this Lease shall be equal to the value of the Midcontinent Independent System Operator (“MISO”) accredited capacity of the PV System multiplied by the value of capacity, as defined below, up to Landlord’s firm demand at the time this Lease is executed. >>During the term of this Lease the Annual Rent shall at no time be less than the value assigned at the time this Lease is executed.<<
Fail1:4 Action details Meeting details Video Video
2/20/20200 PUBLIC WORKS COMMITTEE AMENDED

Minutes note: The second Further Resolved clause as follows: Further Resolved, That when We Energies completes final engineering and receives appropriate permissions from the Federal Aviation Administration, Wisconsin Department of Natural Resources, and Wisconsin Air National Guard, >>and after adoption of the 2020/21 CONE values,<< the proper City officials are authorized to execute a Solar Now energy service agreement and lease agreement for up to 2.25 megawatts of renewable energy in substantially similar form as the attached agreements; and be it
Pass5:0 Action details Meeting details Video Video
1/21/20200 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available

Number

191604

Version

SUBSTITUTE 1

Reference

091066, 131035, 170337, 181742, 190445

Sponsor

ALD. SPIKER

Title

Resolution relating to a lease and service agreement for the construction and operation of a solar photovoltaic system on a City-owned closed landfill at 1600 E College Ave.

Analysis

The City of Milwaukee has established a 25 percent by 2025 renewable energy goal and supports the principles of the Paris Climate Accord. To help achieve those goals, this resolution authorizes the Department of City Development to execute an electric service agreement and lease with the Wisconsin Electric Power Company to construct and operate 2.25 megawatts of solar energy through the Solar Now pilot program offered by the Wisconsin Electric Power Company on a portion of the city-owned closed landfill located at 1600 E College Ave. The project coincidentally supports the energy resilience plan for the Wisconsin Air National Guard 128th Air Refueling Wing, since the most economic route to interconnect the system to Wisconsin Electric Power’s

Distribution System is through facilities on the base. Revenue from the lease is intended to be used to support additional climate action.

 

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 December 17, 2013, the Common Council adopted File Number 131035, approving and directing implementation of the City's sustainability plan, ReFresh

Milwaukee; 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, On June 27, 2019, the Common Council adopted File Number 190445 creating a City-County Task Force on Climate and Economic Equity; and

 

Whereas, The City asserts its interest in having a diversified portfolio of clean energy options and demonstrating immediate action on climate change; and

 

Whereas, The City also supports a robust and competitive market for rooftop solar installations and rooftop solar installations are an important but not sufficient response to the scale of climate threats; and

 

Whereas, Utility-scale and ground-based renewable energy projects are necessary to achieve Milwaukee’s renewable energy goals and address climate change; and

 

Whereas, The executive leadership of the City of Milwaukee, Milwaukee County,

Milwaukee Metropolitan Sewerage District, and Milwaukee Area Technical College wrote a letter to Wisconsin Electric Power Company in 2018 requesting the utility to create renewable energy options; and

 

Whereas, In December, 2018, the Wisconsin Electric Power Company received

Wisconsin Public Service Commission approval to offer customers solar energy through two new programs, referred to as Solar Now and the Dedicated Renewable Energy

Resource; and

 

Whereas, Through their Solar Now program, the Wisconsin Electric Power Company would lease a city-owned land for twenty years to locate a solar energy system that the utility owns and maintains; and

 

Whereas, In accordance with the Public Service Commission approved Solar Now program, the utility would make annual payments to the City for use of this land, a new

City revenue which can be used to support additional city environmental sustainability priorities; and

 

Whereas, through the Solar Now program, the City can elect to receive the Renewable

Resource Credits associated with the project as a key metric toward achieving the City of Milwaukee’s 25 percent by 2025 renewable energy goal; and

 

Whereas, Solar Now is a pilot program and total capacity for all Wisconsin Electric

Power Company customers is 35 megawatts; and

 

Whereas, Any individual customer under the Solar Now pilot program is capped at 2.25 megawatts; and

 

Whereas, The Department of City Development and Environmental Collaboration Office have identified the closed landfill at 1600 E College Avenue as a suitable use for the program with no current opportunity costs and high levels of security; and

 

Whereas, The City cannot build its own renewable energy on this site because it is not physically connected to a City building’s energy load; and

 

Whereas, power from the system can support an energy resilience plan for the adjacent

128th Air Refueling Wing, since the most economic route to interconnect the system to

Wisconsin Electric Power Company’s Distribution System is through facilities on the base; and

 

Whereas, The solar energy system coupled with the 128th Air Refueling Wing’s planned

microgrid supports national security in the event of an area-wide power grid failure; now therefore be it

 

Resolved, By the Common Council of the City of Milwaukee, that the City of Milwaukee is authorized to lease a portion of the property at 1600 E College Ave to Wisconsin

Electric Power Company for solar energy systems pending applicable regulatory approvals from the Wisconsin Department of Natural Resources and Federal Aviation

Administration; and be it

 

Further Resolved, that Wisconsin Electric Power is authorized to conduct final design and engineering for the Solar Now program at 1600 E College Ave; and be it

 

Further Resolved, that when We Energies completes final engineering and receives appropriate permissions from the Federal Aviation Administration, Wisconsin

Department of Natural Resources, and Wisconsin Air National Guard, and after adoption of the 2020/21 CONE values, the proper City officials are authorized to execute a Solar Now energy service agreement and lease agreement for up to 2.25 megawatts of renewable energy in substantially similar form as the attached agreements; and be it

 

Further Resolved, that Revenue from the lease is intended to be used to support additional climate action.

 

Requestor

Department of Administration - Environmental Collaboration Office

Drafter

Erick Shambarger

2/3/2020