HomeMy WebLinkAbout092 - 08/16/2011 - AUTHORIZING THE EXECUTION OF A POWER PURCHASE AGREEMENT CONTRACT WITH A PHOTOVOLTAIC PROVIDER AT THE ORDINANCE NO. 092, 2011
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING THE EXECUTION OF A POWER PURCHASE AGREEMENT
CONTRACT WITH A PHOTOVOLTAIC PROVIDER AT THE
WATER TREATMENT FACILITY FOR A TERM OF UP TO 20 YEARS
WHEREAS,the City's Water Treatment Facility is located in Larimer County,and it receives
electrical power service from Xcel Energy; and
WHEREAS,the availability of solar power rebates from Xcel Energy provides an incentive
for a photovoltaic ("PV") supplier to design, construct, operate and maintain a photovoltaic system
at the Water Treatment Facility at relatively low cost to the City; and
WHEREAS,the Purchasing Agent has issued a Request for Proposals for a PV supplier,and
is in the process of negotiating and completing the arrangements for the desired system,which would
be installed on vacant property owned by Utilities as part of the Water Treatment Plant property;and
WHEREAS,given the investment required to design and construct the PV system,staff has
proposed that the City enter into a contract with the PV supplier to sell power to the Water Treatment
Facility for a period of up to 20 years; and
WHEREAS, the proposed arrangement would allow the City to implement an on-site
renewable energy project at the Water Treatment Plant with no up-front capital costs; and
WHEREAS,under the proposed arrangement,the City would purchase the power generated
by the system at a fixed rate that is lower than the current Xcel Energy rate; and
WHEREAS,this would result in a predictable and reduced cost of electricity over the 20-year
contract; and
WHEREAS,the proposed arrangement would also provide that the City would be entitled
to purchase the solar project from the PV supplier after the fifth year of the agreement,at a calculated
fair market value; and
WHEREAS, pursuant to Section 8-186 of the City Code the Purchasing Agent must obtain
approval of the City Council by ordinance in order to enter into any contract with a term longer than
five years in length.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
COLLINS that the Purchasing Agent is hereby authorized to enter into a 20-year power purchase
agreement with the chosen PV supplier consistent with the terms of this Ordinance, together with
such additional terms and conditions as the Purchasing Agent,in consultation with the City Manager
and City Attorney, determines to be a necessary or appropriate to protect the interests of the City or
advance the purposes set forth in this Ordinance.
Introduced,considered favorably on first reading,and ordered published this 26th day of July,
A.D. 2011, and to be presented for final passage on the 16th day of August, A.D. 2011.
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Passed and adopted on final reading on the 16th day of August, A.D. 2011.
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