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HomeMy WebLinkAboutCSD-014-16Community Services Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: General Government Committee Date of Meeting: October 17, 2016 Report Number: CSD-014-16 Resolution: File Number: N/A By-law Number: Report Subject: Roof-Top Solar Projects – Feed-in-Tariff Program, Version 5.0 Recommendations: 1.That Report CSD-014-16 be received; 2.That Council indicate its support for the construction and operation of roof-top solar projects anywhere in the Municipality by passing the resolution attached to this Report (Attachment 1); 3.That the Mayor and Clerk be authorized to execute a Roof-top Solar Panel Lease Agreement for the three specific projects, provided such Agreement is acceptable to the Municipal Solicitor; and 4.That Veridian Connections and Solera Sustainable Energies Company be advised of Council’s decision. Municipality of Clarington Report CSD-014-16 Page 2 Report Overview The Community Services Department is seeking approval to lease roof-top space for the purposes of construction and operation of roof-top solar systems under the Province’s Feed-in- Tariff (FIT) Program, Version 5.0. 1. Background In Report CSD-009-15 (Attachment 2) Council granted approval for the Municipality to enter into roof lease agreements with Veridian Connections Inc. and Solera Sustainable Energies Company Ltd for roof-top solar projects at three recreation facilities, under the Feed-in-Tariff (FIT) Program, Version 4.0. On October 5, 2015 Veridian submitted applications to the Independent Electricity System Operator (IESO) for the three roof-top projects. We were advised in May 2016 that we were unsuccessful in obtaining contracts for these projects. Subsequent discussions with Veridian and Solera indicated that all FIT roof-top solar contracts were awarded to applications with more Priority Points. As our projects were located on municipal property, our applications were awarded 1 Priority Point each as a “Municipal Site Host”. Recently staff met with Veridian and Solera to discuss submitting the same three projects for the FIT Program, Version 5.0. Although the rates being offered by the IESO for FIT 5.0 have decreased, the majority of the work necessary for the applications remains in place and the roof leases still provide a financial benefit to the Municipality. To facilitate the FIT application, staff is again recommending Council’s authorization to enter into a lease agreement for the specific projects. 2. Project Details Subject to Council agreeing to enter into roof-top leases, Veridian Connections and Solera Sustainable Energies Company will be submitting to the IESO individual project applications for the three roof-top solar systems. The window for accepting FIT applications will open October 31, 2016 at 11:00 am and will close November 18, 2016 at 11:59 pm. It is their intention to have all required documentation ready to submit immediately after the application window opens. The Municipal Council Blanket Support Resolution that is being recommended in this report indicates Council’s support for the construction and operation of roof-top solar projects anywhere in the Municipality. The sole purpose of the municipal resolution is to enable applicants to the FIT Program to receive Priority Points. The approval of a blanket resolution would result in our three projects receiving two Priority Points. These points in Municipality of Clarington Report CSD-014-16 Page 3 addition to the Municipal Site Host point should greatly improve our chances at securing FIT contracts. The blanket resolution will remain in effect for twelve months after Council adoption and would be available for all other third party FIT Program roof-top solar applications located in Clarington. The three proposed projects are: South Courtice Arena – 354 kWp solar array located on the roof of arena pad B. Annual Roof Lease - $4,250.00 Newcastle & District Recreation Complex – 242 kWp solar arrays located on the roof of both the swimming pool and the gymnasium. Annual Roof Lease - $3,625.00 Bowmanville Indoor Soccer – 182 kWp solar array located on the roof of the indoor field. Annual Roof Lease – $2,740.00 3. Financial Considerations The proposed roof-top lease agreements will generate for the Municipality a total revenue of $212,300.00 over the 20 year term of the lease. Additionally, at the end of the 20 year lease, the Municipality has the opportunity to retain the roof solar systems and make modifications to redirect the power generated into the facility thus reducing purchased hydro consumption at each location. 4. Other Considerations Planning Services typically reviews requests for municipal resolutions for FIT Program projects to determine their impact on surrounding residences and uses, natural heritage features and other land use matters. To date they have received some inquiries for FIT Program Version 5.0 from other third party applicants. Given the applications that have been received for earlier FIT Program intakes, Planning Services has no concerns with the blanket Council approval for roof-top solar projects. 5. Concurrence This report has been reviewed by Andrew Allison, Municipal Solicitor, David Crome, Director of Planning Services and Nancy Taylor, Director of Finance who concur with the recommendations. Municipality of Clarington Report CSD-014-16 Page 4 6. Conclusion It is respectfully recommended that the necessary recommendations be approved and that staff provide all necessary documentation to Veridian Connections for the FIT applications. As indicated in the report the Municipal Council Support Resolution will be required to move forward with these FIT Program applications. 7. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Submitted by: Reviewed by: Joseph P. Caruana, Curry Clifford, MPA, CMO Director of Community Services Interim CAO Staff Contact: George Acorn, Manager of Facilities, 905-623-3379 ext. 2503 or gacorn@clarington.net Attachments: Attachment 1 – Municipal Council Support Resolution Attachment 2 – Report CSD-009-15 The following is a list of interested parties to be notified of Council’s decision: Mark Turney, Vice President – Operations, Veridian Connections Leonard Allen, President, Solera Sustainable Energies Company Ltd. JPC/GA/WG Attachment 1 to Municipality of Clarington Report CSD-014-16 Resolution number: _____________________ FIT Reference Number: ____________ Date resolution was passed: October 17, 2016 WHEREAS capitalized terms not defined herein have the meanings ascribed to them in the FIT Rules, Version 5.0. AND WHEREAS the Province’s FIT Program encourages the construction and operation of Rooftop Solar generation projects (the “Projects”); AND WHEREAS one or more projects may be constructed and operated in the Municipality of Clarington; AND WHEREAS pursuant to the FIT Rules, Version 5.0, Applications whose projects receive the formal support of Local Municipalities will be awarded Priority Points, which may result in the Applicant being offered a FIT Contract prior to other Persons applying for FIT Contracts; NOW THEREFORE BE IT RESOLVED THAT Council of the Municipality of Clarington supports the construction and operation of the Projects anywhere in the Municipality of Clarington. This resolution’s sole purpose is to enable the participants in the FIT Program to receive Priority Points under the FIT Program and may not be used for the purpose of any other form of municipal approval in relation to the Application or Projects, or for any other purpose. This resolution shall expire twelve (12) months after its adoption by Council. Signed: _________________________ Signed: ____________________________ Title: ___Mayor Adrian Foster______ Title: __Anne Greentree, Municipal Clerk Date: ___October 17, 2016_________ Date: __October 17, 2016____________ Staff Report #1 clkwington Community Services Report If this information is required in an alternate accessible format, please contact the Municipal Clerk at 905-623-3379 ext. 2102. Report To: Council Date of Meeting: June 29, 2015 Report Number: CSD-009-15 Resolution: File Number: N/A By-law Number: Report Subject: Roof-Top Solar PV Installations Recommendations: 1. That Report CSD-009-15 be received; 2. That Council indicate its support for the construction and operation for the three specific projects described in this Report by passing the resolution attached to this Report Attachment 1); 3. That the Mayor and Clerk be authorized to execute a Roof-top Solar Panel Lease Agreement for the three specific projects, provided such Agreement is acceptable to the Municipal Solicitor; and 4. That Veridian Connections and Solera Sustainable Energies Company be advised of Council's decision. Municipality of Clarington Report CSD-009-15 Page 2 Report Overview The Community Services Department is seeking approval to lease roof-top space for the purposes of construction and operation of roof-top solar systems. 1 . Background In Report CSD-011-14 staff identified that the Province of Ontario's Green Energy Act has provided municipalities with a better understanding of their energy consumption, greenhouse gas emissions and renewable energy opportunities. As a shareholder in Veridian Connections, the Municipality has ongoing discussions on a variety of related programs. As part of these discussions, Veridian approached the Municipality seeking Clarington's intent to partner in a project that would see roof-mounted solar panels installed on various municipal facilities through the former Ontario Power Authority (OPA) Feed-in- Tariff (FIT) program, now administered by the Independent Electricity System Operator IESO.) On June 30, 2014 Council resolved "That staff be authorized to negotiate with Veridian Connections and their partner Solera Sustainable Energies Company." Subsequently, structural investigations were completed on all municipal recreation facilities and it was determined that the Newcastle & District Recreation Complex, Bowmanville Indoor Soccer and South Courtice Arena were suitable to host these projects. To facilitate the FIT application, staff is recommending Council's authorization to enter into a lease agreement for the specific facilities. 2. Project Details Subject to Council agreeing to enter into roof-top leases, Veridian Connections and Solera Sustainable Energies Company will be submitting to the IESO individual project applications for the three roof-top solar systems. Although not confirmed at this time, it is anticipated that the window for accepting FIT applications will open in early July for a two to three week time period. As the opportunity to apply is very short and the applications are time stamped when received it is their intention to have all required documentation ready to submit immediately after the application window opens. The three proposed projects are: South Courtice Arena — 340 kWp solar array located on the roof of arena pad B. Municipality of Clarington Report CSD-009-15 Page 3 Newcastle & District Recreation Complex — 233 kWp solar arrays located on the roof of both the swimming pool and the gymnasium. Bowmanville Indoor Soccer— 175 kWp solar array located on the roof of the indoor field. 3. Financial Considerations The proposed roof-top lease agreement will generate for the Municipality a minimum total revenue of$300,000.00 over the twenty year term of the lease. 4. Concurrence This report has been reviewed by Andrew Allison, Municipal Solicitor and Nancy Taylor, Director of Finance who concur with the recommendations. 5. Conclusion It is respectfully recommended that the necessary recommendations be approved and that staff provide all necessary documentation to Veridian Connections for the FIT applications. 6. Strategic Plan Application The recommendations contained in this report conform to the Strategic Plan. Fp°" Fs F p tr y Submitted by: Reviewed by:l tr bseph P. Caruana, Franklin Wu, Director of Community Services Chief Administrative Officer Staff Contact: George Acorn, Manager of Facilities, 905-623-3379 ext. 2503 or gacorn(c clarington.net JPC/GAM/G Attachment 1 to Municipality of Clarington Report CSD-009-15 Resolution number: FIT Reference Number: Date resolution was passed: June 29, 2015 WHEREAS capitalized terms not defined herein have the meanings ascribed to them in the FIT Rules, Version 4. 0. WHEREAS Veridian Connections and Solera Sustainable Energies Company (the applicants"), propose to construct and operate Roof-top Solar Projects on 1595 Prestonvale Road, 1780 Rudell Road and 2375 Baseline Road (the "Lands") in the Municipality of Clarington under the province's FIT Program; AND WHEREAS that applicants have requested that Council of The Municipality of Clarington indicate by resolution Council's support for the construction and operation of the Projects on the Property. AND WHEREAS pursuant to the FIT Rules, Version 4.0, Applications whose Projects receive the formal support of Local Municipalities will be awarded Priority Points, which may result in the Applicants being offered a FIT Contract prior to other Persons applying for FIT Contracts; NOW THEREFORE BE IT RESOLVED THAT Council of the Municipality of Clarington supports the construction and operation of the Projects on the Lands. This resolution's sole purpose is to enable the Applicants to receive Priority Points under the FIT Program and may not be used for the purpose of any other form of municipal approval in relation to the Applications or Projects or for any other purpose. Signed: Signed: Title: Mayor Adrian Foster Title:Anne Greentree, Municipal Clerk Date; June 29 2015 Date:June 29 2015