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HomeMy WebLinkAboutCSD-011-14 Clarbgton REPORT COMMUNITY SERVICES DEPARTMENT Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: June 23, 2014 Resolution#:�p _t��-�®\�By-law#: N/A Report#: CSD-011-14 File#: Subject: SOLAR PV SYSTEM INSTALLATIONS ON RECREATION FACILITIES RECOMMENDATIONS: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report CSD-011-14 be received; 2. THAT the requirement for formal competitive bidding in accordance with By-law 2010-112, Part 2 be waived; 3. THAT staff be authorized to negotiate with Veridian Connections and their partner Solera Sustainable Energies Company; and 4. THAT staff be directed to report back to Council on the results of the negotiation including a mmendation for Council approval on whether to proceed with the progr Submitted by: Reviewed by: � e_ Jos ph P. Caruana Franklin Wu, (rector, Community Chief Administrative Officer Services J PC/ga CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T 905-623-3379 REPORT NO.: CSD-011-14 PAGE 2 1.0 BACKGROUND 1.1 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. Through the work of municipal departments and the Energy Management Committee, a number of programs have been implemented under this Act. As a shareholder in Veridian Connections the Municipality has ongoing discussions on a variety of energy related programs. 1.2 As part of these ongoing communications, Veridian recently approached the Municipality inquiring about Clarington's interest to meet and discuss the potential for roof-mounted solar panel installations on municipal buildings through the Ontario Power Authority (OPA) Feed-in-Tariff (FIT) program. This revenue generating program is based on twenty year contracts for the generation of electricity, through renewable energy projects, to be directed back to the province's supply system. 1.3 After a preliminary meeting was held with staff, Veridian and their partner, Solera Sustainable Energies completed a preliminary review of all municipally owned facilities. Based on the initial findings there appears to be a number of potential locations. 1.4 In a subsequent meeting with staff, Veridian and Solera, presented a true 3P partnership model involving Clarington, Veridian and Solera. The partnership model presented is based on a three way equity split with Veridian, Solera and Clarington. Although the final terms of any agreement are fully negotiable, the common model has Veridian retaining the largest equity stake in the partnership. 1.5 At a minimum equity share of 15%, Clarington could qualify for FIT funding under Municipal Participation Projects criteria. In the past these municipal participation applications have resulted in a higher degree of successful approvals and contracts awarded from the OPA. 2.0 VERIDIAN CONNECTIONS AND SOLERA SUSTAINABLE ENERGIES PARTNERSHIP 2.1 In 2012, Veridian partnered with Solera on the development of a 140kW solar installation for Veridian's headquarters in Ajax. Based upon a favourable installation, Veridian and Solera have developed a partnership moving forward. 2.2 Veridian is now approaching municipalities, specifically those who are shareholders in Veridian Connections, to propose the installation of roof mounted solar systems, exclusively utilizing Solera, as an equity partner, for the development of the solar installations. REPORT NO.: CSD-011-14 PAGE 3 2.3 Veridian has recently worked with the City of Belleville on roof-mounted solar systems utilizing a similar three party partnership model. 3.0 COMMENTS 3.1 By providing staff the authority to negotiate with Veridian Connections, staff will report back to Council on the viability of the program and make specific recommendations. 4.0 CONCURRENCE: Not Applicable CONFORMITY WITH STRATEGIC PLAN — _ Promoting economic development _ Maintaining financial stability Connecting Clarington X Promoting green initiatives _ Investing in infrastructure X Showcasing our community _ Not in conformity with Strategic Plan Staff Contact: George Acorn, Manager of Facilities Attachments: None List of interested parties to be advised of Council's decision: None