Title
Resolution to Approve United States Department of Energy Grant for the Wind Generator Project and Accept and Appropriate up to $951,500.00 in Funding (8 Votes Required)
Memorandum
This resolution requests approval of a project agreement with the United States Department of Energy (DOE) to construct a wind generation project in the City of Ann Arbor or environs, and to accept and appropriate up to $951,500.00 in funding.
The grant provides $951,500.02 to the City of Ann Arbor to construct a wind generation project. The project scope includes design and construction of up to two wind turbines and public outreach and education related to the benefits of using wind as a renewable and alternative energy source. The grant requires that the City provide $484,390 .00 in matching funds. It is the City’s intent to partner with the Ann Arbor Public Schools (AAPS) and a third party developer to provide the site and financing required to meet the grant’s matching fund requirements. The City’s contribution will be approximately $18,590.00 in staff time toward this project. The City will not be making a cash contribution.
Subsequent to Council’s approval of the attached resolution, staff will return to Council with additional resolutions to approve agreements with the AAPS and the site developer to complete the contractual arrangements for sitting and constructing the wind turbines. It is anticipated that the wind turbines will be located on AAPS property and that the developer will construct the wind turbine(s) and provide the public schools with a 20-year power purchase agreement (PPA). The PPA will guarantee the AAPS a minimal amount of power production by the turbine(s) per year, at a rate less than the current market rate for electricity. The City will obtain the Renewable Energy Credits (RECs) from the installation.
Staff
Prepared by: Brian Steglitz, P.E., Sr. Utilities Engineer, WTP
Reviewed by: Craig Hupy, Public Services Area Administrator
Approved...
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