Title
Resolution to Rescind Resolution R-22-214 for a Power Purchase Agreement with Enerlogics Networks, Inc., Approve a Construction Contract with Enerlogics Networks, Inc. for the Purchase and Installation of Solar at City Facilities, to Reallocate Funding for Solar Projects Previously Approved, and to Appropriate Necessary Funds ($8,133,255.00) (8 Votes Required)
Memorandum
In June of 2022, Ann Arbor City Council approved a Power Purchase Agreement (PPA) with Enerlogics Networks, Inc. for solar systems to be installed at seven city locations (see table below) via resolution R-22-214.
Site
Type
Size (kwDC)
Cost
Airport - Northeast Hangars
Ground Mount
32
$99,041
Airport - Admin Building
Ground Mount
78
$242,101
Airport - Northwest Hangars
Ground Mount
71
$220,091
Steere Farm (WTP Pumps)
Ground Mount
605
$1,870,777
Water Recovery (WWTP)
Ballasted Roof Mount
681
$1,991,951
Water Treatment Plant
Roof Mount + Ground Mount
342
$1,040,725
Wheeler Center
Ground Mount
1,100
$2,668,563
TOTAL
3,105
$8,133,255
A PPA was selected as the contract vehicle because the City did not have the capital funds available to directly purchase all the designed and desired solar systems. The PPA made it possible for the City to build these systems and to pay for the systems over time through monthly energy usage bills in which the City would pay Enerlogics for each unit of energy produced and used by the City. The PPA also included an option to purchase the systems in the future.
In June 2022 staff learned the federal government was about to pass the Inflation Reduction Act of 2022 (IRA), and that if enacted, it contained provisions which would significantly change the economics for the City's proposed solar installations at City facilities. In August of 2022, the IRA was officially adopted creating a new policy lever making it possible for non-tax paying entities, like the City, to receive a 30% federal tax rebate on renewable energy systems that tax-paying enti...
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