City Council Meeting Date: May 1, 2018
To: Mayor and City Council
From: Brenda Angelstad, Finance Director
Ben Martig, City Administrator
Title
Consider Resolution Approving Estoppel Certificate and First Amendment to Solar Garden Subscription Agreement with CF Novel Solar Gardens Five, LLC dated August 8, 2017
Body
Action Requested:
The Northfield City Council considers approving the attached Resolution Approving the Estoppel Certificate and First Amendment to the Solar Garden Subscription Agreement with CF Novel Solar Gardens Five, LLC, dated August 8, 2017.
Summary Report:
A resolution was approved at the August 8, 2017 City Council meeting to approve a Community Solar Garden subscription with MN Community Solar. The garden is located in Steele County and will subscribe a portion of the City of Northfield’s Rice County Xcel Energy’s energy usage.
The contract locks in the rate paid for the City’s subscribed energy of 1,500 kilowatts (kW) at .11296/kWh, which is a 1-cent discount from Xcel’s current rate for a period of 25 years. The Estoppel Certificate provides confirmation of the terms of the agreement and the First Amendment updates the output capacity of the completed solar garden and the City of Northfield’s share of the adjusted capacity. Total capacity was originally estimated at 4,900 kW and is now estimated at 4,773.6 kW, a 2.5% decrease from original estimates, the conversion to kilowatt-hours (kWh) also was adjusted from 1,275 kWh/kW to 1,250 kWh/kW. This adjusted capacity causes the City of Northfield’s share of the garden to increase from 30.612% (4,900/1,500) to 31.423% (4,773.6/1,500).
City Attorney and City Staff have reviewed the Estoppel Certificate and the First Amendment to the Subscription Agreement with MN Community Solar. There is no change to the rate/kWh the City will pay for its subscription. However, after adjusting for garden capacity, the estimated kWh will change slightly. The Staff presentation from August 8, 2017has also been included for reference (attachment 4).
Alternative Options:
N/A
Financial Impacts:
Based on the reduction in the solar garden capacity and conversion to KWh/kW, estimated savings generated from the subscription over the 25 year term decrease $45,000, or 1.95%, from $2.313 million to $2,268 million, or an average of $1,800/year.
Tentative Timelines:
N/A