2011040408 - Desk Item - Solar Power Purchase AgreementDATE:
TO:
FROM:
SUBJECT:
MEETING DATE: 04/04/11
ITEM NO: 8
DESK ITEM
COUNCIL AGENDA REPORT
APRIL 4, 2011
MAYOR AND TOWN COUNCIL
GREG LARSON, TOWN MANAGER
SOLAR POWER PURCHASE AGREEMENT
A. AUTHORIZE THE TOWN MANAGER TO EXECUTE A SOLAR POWER
PURCHASE AGREEMENT BETWEEN THE TOWN OF LOS GATOS
AND FRESH AIR ENERGY —II, LLC. IN ORDER TO PROVIDE SOLAR
POWER FOR THE TOWN SERVICE CENTER AT 41 MILES AVENUE,
AND THE POLICE OPERATIONS BUILDING AT 15900 LOS GATOS
BOULEVARD.
B. AUTHORIZE THE TOWN MANAGER TO EXECUTE FUTURE
AMENDMENTS TO THE POWER PURCHASE AGREEMENT THAT DO
NOT EXTEND THE TERM OF THE AGREEMENT OR RESULT IN A
RATE INCREASE OF MORE THAN 1%.
Three revised attachments are provided for this item as described below:
Attachment 1 (Solar Power Purchase Agreement):
Revisions were made to Attachment 1, Exhibit 2, Exhibit 5, and Exhibit 6 to reflect system size
changes for the proposed solar power system at the Police Operations Building. The revised
Exhibits reflect the new proposed system size of approximately 64 KW. There are no fiscal
impacts associated with these revisions. Replacement Exhibits are provided as follows;
Exhibit 2 — Description of Generating Facilities
Exhibit 5 — Expected Annual Contract Quantity Form
Exhibit 6 — Form of Attestation
Attachment 2 (Estimated Cost Savings per site):
A replacement Attachment 2 is provided, the second page of Attachment 2 was omitted from the
agenda packet.
Attachment 3 (Image of the Proposed Service Center Installation):
Also provided is a replacement Attachment 3 which includes a second image that had been
omitted from the staff report. The second image depicts the proposed panel layout for the
Service Center installation.
PREPARED BY: TODD CAPURSO
Director of Parks and Public Works
Reviewed by: 5'i Assistant Town Manager Town Attorney
Finance Community Development
Clerk Administrator
N:\PPW\MANAGEMENT\COUNCIL\COUNCIL REPORTS\2011 Reports\April 4\Solar PPA Desk Itentdocx
ATTACHMENT 1
Exhibit 2
Description of Generating Facilities
The Generating Facilities consist of the following:
1. An approx. 66KW solar photovoltaic roof and parking canopy Generating Facility,
consisting of approx. of 236 panels, inverters, and racking, for LG-02, located at
41 Miles Avenue, Los Gatos, CA 95030.
2. An approx. 64KW solar photovoltaic rooftop Generating Facility for LG-03,
consisting of approx. 229 panels, inverters, and racking, located at 15900 Los
Gatos Blvd., Los Gatos, CA 95032.
NOTE: Generating Facility sizes may change subject to final system design.
Exhibit 5
Expected Annual Contract Ouantitv Form
(Annual KWH projected output)
YR 1
95,700
I 91,440
YR 2
95,222
90,983 11
YR 3
94,743
90,526
YR 4
94,265
90,068
YR 5
93,786
89,611
YR 6
93,308
89,154
YR 7
92,829
88,697
YR 8
92,351
88,240
YR 9
91,872
87,782
YR 10
91,394
87,325
YR 11
90,915
86,868
YR 12
90,437
86,411
YR 13
89,958
85,954
YR 14
89,480
85,496
YR 15
89,001
85,039
YR 16
88,523
84,582
YR 17
88,044
84,125
FY-R 18
87,566
83,668
YR 19
87,087
83,210
YR 20
86,609
82,753
TOTAL
1,823,085
1,741,932
NOTE: Expected Contract Quantity is subject to change pro-rata, based on final system sizes
identifed in Exhibit 2.
Exhibit 6
Form of Attestation
Environmental Attribute Attestation and Bill of Sale
Fresh Air Energy — II LLC. ("Seller") hereby sells, transfers and delivers to the Town of Los
Gatos ("Buyer") the Environmental Attributes and Environmental Attributes Reporting Rights
associated with the generation of the indicated energy for delivery to the grid (as such terms are
defined in the Power Purchase Agreement ("Agreement") dated January 20, 2011 between Buyer
and Seller) arising from the generation for delivery to the grid of the energy by the Generating
Facility described below:
Facility name and location: _LG-02 at : 41 Miles Avenue, Los Gatos, CA 95030 and LG-03
at : 15900 Los Gatos Blvd., Los Gatos, CA 95032
Project Name: LG-02 and LG-03
EIA ID #: TBD
CEC ID#: TBD
Meter ID#: TBD
Fuel Type: Solar Photovoltaic
Capacity (KW): LG-02 — approx. 66 KW and LG-03 — approx. 64 KW
Commercial Operation Date: TBD
Dates MWhs generated Dates MWhs generated
TBD
In the amount of one Environmental Attribute for each megawatt hour generated; and Seller
further attests, warrants and represents as follows:
1. To the best of its knowledge, the information provided herein is true and correct;
2. This transfer to Buyer is the one and only sale of the Environmental Attributes and
associated Environmental Attributes Reporting Rights referenced herein;
3. The Facility generated and delivered to the grid the energy in the amount indicated as
undifferentiated energy; and
(Check one)
X Seller owns the facility.
To the best of Seller's knowledge, each of the Environmental Attributes associated with
the generation of the indicated energy for delivery to the grid have been generated and sold by
the Facility.
ATTACHMENT 2
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ATTACHMENT 3
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