A. MOTION TO APPROVE Agreement between Broward County and Advanced Roofing, Inc. for solar energy services at eight Broward County sites, with a contract term of 20-years, and a buydown of the energy services fee at a cost not-to-exceed $975,000, in substantially the form attached as Exhibit 9 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission Districts 4, 5, 7 and 9)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Scrivener's Error - See County Administrator's Report: Summary Explanation/Background, 5th paragraph, under Energy Services Costs and Proposed Buydown, currently reads: ....the energy produced by the new solar panels will offset about 50%...and should read: ...the energy produced by the new solar panels will offset by about 55%.) (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
B. MOTION TO DELEGATE authority to the County Administrator to approve and execute the license agreement between Broward County and Advanced Roofing, Inc. (ARI), providing for access and use of county property located at 1801 NW 64th Street (64 Street Warehouse Facility) for the installation and maintenance of a rooftop solar energy system not-to-exceed 120 KW capacity and to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission District 9)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
C. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 3151 Stirling Road (Stirling Road Library) for the installation and maintenance of a rooftop solar energy system not-to-exceed 161 KW in capacity, in substantially the form attached as Exhibit 10 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission District 7)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
D. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 100 N. Pine Island Road (West Regional Courthouse) for the installation and maintenance of a rooftop solar energy system not-to-exceed 197 KW in capacity, in substantially the form attached as Exhibit 11 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of County Attorney. (Commission District 5)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
E. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 325 SW 28th Street (Broward Addiction and Recovery Center) for the installation and maintenance of a parking canopy solar energy system not-to-exceed 286 KW, in capacity in substantially the form attached as Exhibit 12 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission District 7)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
F. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 2400 SW 42nd Street (Broward Animal Care) for the installation and maintenance of a rooftop solar energy system not-to-exceed 235 KW in capacity, in substantially the form attached as Exhibit 13 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of County Attorney. (Commission District 7)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
G. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 3201 W. Copans Road (Copans Bus Maintenance Facility) for the installation and maintenance of a rooftop solar energy system not-to-exceed 737 KW capacity, in substantially the form attached as Exhibit 14 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission District 4)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
H. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 3601 W. Sunrise Boulevard (Central Broward Regional Park) for the installation and maintenance of a rooftop solar energy system not-to-exceed 246 KW capacity, in substantially the form attached as Exhibit 15 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission District 9)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
I. MOTION TO APPROVE License Agreement between Broward County and Advanced Roofing, Inc. providing for access and use of county property located at 5440 Ravenswood Road (Ravenswood Bus Maintenance Facility) for the installation and maintenance of a rooftop solar energy system not-to-exceed 208 KW capacity, in substantially the form attached as Exhibit 16 and authorize the County Administrator to take any and all necessary administrative and budgetary actions required for implementation and execution subject to final review and approval as to form by the Office of the County Attorney. (Commission District 7)
(Commissioner Furr pulled this item.)
ACTION: (T-11:22 AM) Approved. (Refer to minutes for full discussion.)
VOTE: 9-0. Vice-Mayor Holness voted in the affirmative telephonically.
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THE ENVIRONMENTAL PROTECTION AND GROWTH MANAGEMENT DEPARTMENT AND THE ENVIRONMENTAL PLANNING AND COMMUNITY RESILIENCE DIVISION (EPCRD) RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
This item supports the County Commission’s Value: Encouraging investments in renewable energy, sustainable practices and environmental protection; and Goals to: 1) Seek funding for, implement policies and pursue projects promoting, the use of alternative energy, resource conservation, sustainable practices and environmental protection; 2) Proactively lead in the planning, design, and construction of projects to support community resilience and climate adaptation, including coordination with other entities to foster resilient design as part of all local and regional projects.
This item provides for the installation and maintenance of solar equipment at eight (8) Broward County sites and facilities. On March 20, 2018 (Item 24), the Board approved use of a competitively solicited State of Florida contract No. DMS-08/09-029 for solar energy services. It was noted that the Contract would offer the County the opportunity to obtain installation of the Systems with no upfront capital investment while expanding the County's support for renewable energy projects and generating the potential for longer-term operational cost savings, with costs for the energy services rendered by Advanced Roofing, Inc. (ARI) to be negotiated in a separate agreement with a service and fee schedule. Negotiation meetings were held on 10/22/18, 10/31/18, and 11/09/18.
County staff undertook a comprehensive review of solar project opportunities across the landscape of county facilities with emphasis on newer structures that that would not require re-roofing in the short-term, sites that where fully owned and maintained by the County, and additional sites where solar parking canopies could provide additional opportunity for prominent placement and communication regarding the County's commitment to renewable, solar energy.
Approximately twelve sites were included in the initial project list, amendments were made in the evaluation process. Staff completed a review of average, minimum, and maximum monthly energy demand for evaluated sites and scaled the capacity for each of the proposed solar systems accordingly. Projects with limited onsite energy demand were eliminated and project capacity was further refined based on planned facility improvements and access requirements.
A total of eight county sites have been further refined in coordination with Parks and Recreation Division, Facilities and Construction Management Divisions, and Transit Division and are now advanced for Commission approval.
Rooftop installations are proposed for:
Stirling Road Library
West Regional Courthouse
64th Street Warehouse
Broward Animal Care
Copans Road Bus Maintenance Facility
Ravenswood Bus Maintenance Facility
Solar Parking Canopies are proposed for:
Central Broward Regional Park
Broward Addiction and Recovery Center (BARC)
Energy Services Costs and Proposed Buydown
Payment for equipment and services is based on the nameplate capacity of each of these systems, sun hours, and a utility rate. Payment for services will be made quarterly for a period of 20-years, in accordance with the project specific schedule presented in Appendix A.4 of the Agreement (Exhibit 2). The energy produced by the new solar panels will offset about 50% of our current energy usage for the impacted County properties. The energy produced is expected to result in a reduction in the traditional energy bill for these same sites, which will offset the cost of the maintenance services payments associated with this agreement, thereby resulting in no additional cost to the county.
Staff recommends the inclusion of the parking solar canopies as a prominent demonstration of the County’s support for and investment in solar, and as a means of mainstreaming and encouraging solar energy investments across our community. To achieve the benefit of these more prominent solar projects while maintaining service fees in accordance with historic billing, an upfront capital buydown of $975,000 is proposed.
In evaluating project cost, staff notes that the average energy rate applied to county facilities today is $0.85 per kWh, with an average of $0.089 per kWh for the specific select sites identified above. Under the energy services agreement with ARI, the utility rate for the rooftop solar projects would be $0.10 per kWh, and $0.15 to $0.19 per kWh for the solar parking canopies, which have an increased cost due to additional infrastructure and engineering requirements. As stated above, staff recommends inclusion of the parking solar canopies as prominent demonstration of the County’s support for and investment in solar. These projects will be equipped with the necessary conduit to allow the subsequent installation of electric vehicle charging stations in conjunction with the solar canopy.
Under the Solar Energy Services Agreement, the County is charged a service fee based on nameplate capacity, solar hours, and an established utility rate. To achieve the benefit of these more prominent solar projects while maintaining service fees in accordance with historic billing, a buydown of $975,000 is proposed. Schedule A.4. of the Energy Services Agreement provides for an initial payment of $975,000 toward the energy services projects in accordance with the project pricing matrix included as Schedule A.5. The purpose of the buydown is to achieve an energy services fee consistent with the County's current rate of billing (based on 200+ accounts). This rate is subject to a 3% annual increase.
Energy produced by these projects is estimated to offset 55% of energy demands across the referenced facilities, ranging from 15% to nearly 100% of average monthly energy demand at individual sites, as measured during the last 12 months. Total capacity of the proposed projects is ca. 2 MW, with production estimated at 3.3 million kWh/yr.
Regarding billing, the collective energy bill for the 8 accounts associated with these sites was $632,125 for the 12-month period from August 2017 to July 2018. Under this agreement, annual payment to ARI for energy services in year 1 is estimated at $278,584, for services which would reduce the traditional utility bill to ca. $353,271 for this same 12-month period.
With the above referenced 3% annual escalator, the annual cost in year 20 is estimated at $493,290. Total payments for 20 years of energy service under the agreement with ARI is estimated at $7,480,788. Absent this energy services agreement, utility billing for these same accounts is estimated at $12,642,508 for this same 20-year period (based on today's rates). However, it is anticipated that energy rates will increase with time with energy services payment to ARI to continued to reduce utility billing by approximately 50%. Without the upfront buydown, energy services for the 20-year project term is estimated at $ 9,628,708. Once the cost of the buydown is accounted for, total saving generated from the buydown is estimated at $1,170,215.
License Agreements:
The License Agreements providing for access and use of county property for the solar energy services installation and maintenance are provided in substantially final form for seven of the eight, pending execution and final legal review and approval as to form. These agreements include details as to coordination of reviews and required approvals, in addition to the schedule for design, permitting and installation of the projects. Staging areas and access requirements are generally described and will be coordinated with agency staff and building managers.
Of note:
- A final legal description and survey is required for the west regional courthouse.
- Reroofing of the Stirling Road Library may occur after installation of the licensee's equipment. Section 4.5.2 of the License Agreement notes costs for removal and reinstallation of licensee's equipment is the expense of the County. The cost of this activity at the time for reroofing is estimated at $109K. Section 4.5.2 of the Stirling Road Library License Agreement references this cost, to be addressed at the time that the County bids the project. It is imperative that the solar energy services project commence in 2019 as project financing by the 3rd party is tied to federal tax credits which will be reduced at the end of the calendar year and expire all together in three years. At this time, there are no other suitable sites and a target capacity of two MW across the suite of projects is necessary for competitive pricing.
- The 64th Street Warehouse is a county-owned facility on a property leased from the City of Fort Lauderdale. The lease expires in 2035 and has one ten-year renewal term. The solar energy services agreement falls within this term. The License Agreement for this site is still under development and will require approval by the City of Fort Lauderdale.
Other Site-Specific Considerations
Wind Hardening: Of the eight projects, three of the sites have structures which have been remodeled or constructed for wind hardening including the 64th Street Warehouse, BARC, and Animal Care. While all of the solar projects are designed to withstand hurricane force winds of 170 mph, structures for these sites will be upgraded to withstand 177 mph, consistent with Class IV risk category.
The Risk Management Division established and approved insurance requirements for this project.
Agreements were prepared by the Office of the County Attorney and approved by ARI. In addition to pending legal description and survey for the west regional courthouse, agreements are pending vendor signature and final legal review and approval as to form. |