CITY OF GRAND JUNCTION, COLORADO
RESOLUTION NO. 62-13
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO NEGOTIATIONS WITH ECOPLEXUS, INC. AS A SUBSCRIBER TO THE PEAR PARK COMMUNITY SOLAR GARDEN AND AUTHORIZE A LEASE FOR THE USE OF A PORTION OF CITY-OWNED PROPERTY FOR THE PEAR PARK COMMUNITY SOLAR GARDEN
RECITALS
In 2012, Xcel Energy released its Solar* Rewards Community Program to provide incentives to stimulate the development of community solar gardens in its service territory. Eco plexus, Inc., a solar developer, won a competitive bid for a 2 MW project in Mesa County. A community solar garden operates at a centralized location, generating energy that is sold directly to Xcel via an energy procurement agreement. Each kWh produced generates a “virtual net metering” credit and a renewable energy certificate. Subscribers to the solar garden purchase power from the solar provider and receive a credit from Xcel on their monthly utility statement.
The project is proposed to be located on 14 acres of vacant land, located at 2950 D ¼ Road in Pear Park. The site consists of two parcels, 10 acres owned by School District 51 and 4 acres owned by the City of Grand Junction. The property is bounded by the unimproved D ¼ Road on the south, the unimproved 29 ¼ Road on the west and the Mesa County ditch along the northeast perimeter. The School District property will be fully utilized for the placement of the solar array. Approximately ½ acre of the adjacent City property is proposed to be leased for an access driveway and perimeter landscaping. A Conditional Use Permit for the project was approved by the Planning Commission on June 25, 2013.
The solar array had originally been planned to utilize the entire 14 acres, including the City-owned property, but through the design process it was determined that it could be accommodated on just the ten acres owned by the School District, utilizing a portion of the City property for the access driveway and landscape buffer adjacent to the neighborhood. The improvements on the City property will be confined to the southern and eastern perimeter with landscaping and a driveway, leaving the bulk of the property available for other purposes. Ecoplexus has submitted a bid to Xcel for another solar project, which, if approved, could be located on the remainder of the City property. The City property would be leased at a rate of $600 annually for the 1/2 acre for twenty years, with optional renewal provisions and Ecoplexus will be responsible for all improvements and maintenance.
As a subscriber to the Community Solar Garden, the City can maximize savings by selecting the accounts to utilize approximately 23% of the 2 MW project. Other subscribers will include School District 51, Mesa County, Alpine Bank and Grand Junction Housing Authority (5% of the solar garden must be available to income qualified). Based on the City accounts identified for best return, the annual savings projected for 2014 are $32,943. The City can select and change accounts on an annual basis to maximize their return. The subscription agreement will be for a twenty year period, with an optional extended term for up to five additional one year periods.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Grand Junction does hereby authorize the City Manager to enter into negotiations with Ecoplexus, Inc. as a subscriber to the Pear Park Community Solar Garden and upon completion of those negotiations to bring a proposed agreement to City Council for final approval.
AND BE IT FURTHER RESOLVED THAT the City Manager is authorized to enter a lease agreement for the use of a portion of City-owned property for the Pear Park Community Solar Garden.
Dated this 18th day of September 2013.
/s/ Sam Susuras
President of the Council
ATTEST:
/s/ Stephanie Tuin
City Clerk