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Study Session Agenda Packet 11-03-14
STUDY SESSION AGENDA CITY COUNCIL CITY OF WHEAT RIDGE, COLORADO 7500 W. 29th Ave. Wheat Ridge CO November 3, 2014 6:30p.m. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge . Call Heather Geyer, Administrative Services Director at 303-235-2826 at least one week in advance of a meeting if you are interested in participating and need inclusion assistance. PUBLIC COMMENT ON AGENDA ITEMS APPROVAL OF AGENDA .1. Solar Garden Discussion 2. City/URA IGA Renewal 3. Staff Report(s) 4. Elected Officials' Report(s) ADJOURNMENT •• # ..... ~ City of ~WheatBL_,dge ~OFFICE OF THE CllY MANAGER Memorandum TO: Mayor and City Council FROM: Patrick Goff, City Manager DATE: October 24, 20 14 SUBJECT: Analysis of So lar Garden Proposals -Part II Introduction The City of Wheat Ridge has received two proposals to participate in a solar garden agreement th rough Xcel Energy's Solar*Rewards Community program. O ne proposal was s ubmined by Clean E nergy Collective, LLC (CEC) and a second proposal was submitted by Sun Share, LLC. The intent of each proposal is to help t h e City generate electricity cost savings through the production of renewable energy, while promoting environmental stewardship to the community. Although participation in a solar garden can prov ide value to a community, it can a lso bring inheren t risks. Therefore, the City contracted with Lotus Engineering & Sustainability to perform a due di li gence review on the proposed solar garden models and to identify potential risks and opportunities to the City. On September 8, 2014, Em il y Artale, with Lotus, provided a presentation to City Council summarizing the following: • Discussion of how the proposed solar gardens support the City's goals and serve the pub l ic • A review of t he contracts and proposals, in cluding the pro forma and calculation assumptions • Discussion of the potential risks and opportuniti es of participation in the pro posed agreements, inc luding "what-if' scenarios for savings and invest ment potential • General industry a nd marketplace trends • Other considerations fo r further discussion • Summary of the d ifferences between CEC's and SunShare's approach This was the first presentation City Counci l received on this subject and due to the complexity of the information provided , direction was received from City Council to schedule a future stud y session for addition al discussion. Ms. Artal e has refined her presentation for the November 3rd study session and both Sunshare and CEC will be allowed time to present to City Council. CEC's Proposal The proposal offered by CEC would allow the City to purchase up to 972 panels in CEC's Jefferson County Solar Garden for approximately $776,628. The panels would provide up to 228.42 ki lowans (kW) of electricity to offset nearly I 00% of electricity consumption at 13 City fac il ity locations. The Ci ty would receive savings in the form ofXcel bill credits and income in the form of renewable energy certificate (REC) payments each billing cycle. The savings and income streams would offset current electricity costs at the identified 13 locations and help payback the initial in vestment. CEC estimates the projected payback to be 8 to 9 years. Total best-case scenario cumulative savi ngs, over a 20 year contract, is estimated at $1.6 million for a one-time purchase option or $1.2 million for the financing option. The financing option is based upon a I 5-year tenn at an interest rate of 5 .25%. SuoSbare's Proposal The proposal from SunShare describes an opportunity for the City to purchase up to 208 kilowatts kW of electricity from its Jefferson County Solar Garden. SunShare proposes that this electricity will offset nearly 100% of electricity consumption at 13 s it es owned by the City. SunShare's proposal includes two payment options: the City can either pre-pay in one lump sum or the City can pay a monthly Solar Services Agreement (SSA) rate. The cost to pre-pay is approximately $553.360. The monthly SSA payment to SunShare starts at $0.12 per kilowatt-hour (kWh ) generated by the system and escalates at 2.9% every year after. Both options require a 20 year contract with SunShare. Rather than purchase the panels outright, the City would pay SunShare a monthly fee for electricity consumption called the Solar Service Agreement (SSA) payment. SunShare proposes that this electricity will offset consumption at 25 sites owned by the City. The City would receive savi n gs in the form ofXcel bill c redits each billing cycle. The savings could would be uses used to help offset current electricitY costs and either payback the initial investment or pay the SSA rate to SunShare . SunShare would receive REC payments directly from Xcel Energy and will not distribute those to the City. Under the pre-payment option. SunShare estimates the payback period to be 6 to 7 years and under the SSA payment option, Sunshare proposes that the City w ill begin to offset e le ctricity costs immediately. Total best-case scenario cumulative savings, over a 20 year contract, is estimated at$ I .6 million for a one-time pre-pay option or $1 .0 million for the financing SSA option. Council Considerations: I. Both proposals have many common elements and would help the City meet its environmental sustainability goals and would produce similar savings. 2. CEC provides a one-time purchase option for $776,628 and SunShare provides a one-ti me pre- pay opti on of$553,530, both of which would deliver higher potentials for savings than their other business models. However, I would not recommend either of these options at thi s time as the City does not have adequate financial reserves for these up front payments . 3. The CEC financing model is a low-risk option and interest rates are low; however. financing costs and staff time would be incurred. 4. The SunShare pay-as-you go model is also low risk as the City pays only for electricity generated and would not incur financing costs; however, the long-term savings are less than CEC's financing model. 5. CEC cu rremly has a commercially operational solar garden in Jefferson County while Sunshare is st ill finalizing easement. lease and financing agreements and has no operational solar garden in Jefferson County. ATTACHMENTS: 1. SunShare proposal and presentation 2. CEC proposal and presentation 3. Lotus Engineering & Sustainability presentation September 5 , 2014 Patrick Goff City Manager City of Wheat Ridge 7500 W. 29111 Avenue Dear Patrick, Thank you for considering being part of our Community Solar Gardens program with Xcel Energy . Since submitting our initial proposal to the city, we have signed contracts with several other governmental agencies in our Jefferson County Solar Garden, including the City of Arvada, City of Westminster, and Green Mountain Water and Sanitation District. Together with our residential and low-income customers, our remaining capacity in this Solar Garden is now 208kW . In the attached document, we have included a financial summary for the new proposal. In an effort to create an easy comparison between our proposal and the other Community Solar proposal you 've received , we have included a full pre-pay option and have set our utility escalation assumptions to the same rates as the other proposal. The chart below illustrates a comparison between the two proposals. Pre-Pay Option CE( 'roposal l'ropo ~:t I Size 228 kW 208 kW Upfront payment $776,628 $553 ,360 $/Watt $3.40 $2.67 20 Year Savings $1 ,594,720 $1 ,641 ,647 ROI 205% 296% $0 Down Option Size N/A Upfront payment N /A Community Solar Rate N/A $0.12 20 Year Savings N /A $1 ,062,672 ROI N/A 00 The final step to participate is to complete our simple Solar Services Agreement. which will switch you to the new Community Solar rate with Xcel. Attachment 1 Thank you for your interest in Community Solar with SunShare. We look forward to the potential of working with you and The City of Wheat Ridge. Sincerely, Karen Gados Director of Business Development FINANCIAL SUMMARY Prepared for City of Wheat Ridge Pre-Pay Option $553,360 upfront pre-pay 208 kW Solar Services Agreement SRC CREDIT vs SUNSHARE PAYMENTS Yur 1 2 3 5 10 Estimat ed kWh Prod uction 374,400 372,528 370,665 366,968 357,885 Annual Uti litvRate Increase : 4.8% Xce l Est . Electria ty Solar Rewards Cred it/kWh @ 4 .8% $0.192 $0.201 $0.210 $0 .231 $0.292 ProJected Annual Sav mgs @ 4.8% $71 698 $74 763 $77 960 $84 770 $104 511 SunShare SSA Price/kWh at 2.9% $0.000 $0.000 $0 .000 $0.000 $0 .000 SunShare SSA Payments $0 $0 $0 $0 $0 SRC Credit vs. SunShare Payments -208kW $180,000 $160,000 $140,000 $120,000 $100,000 Xcel Est. Etectridty ~r Rew~rds Credtt • 4.~ annua l utility rate esalation $80,000 $60,000 $40,000 $20,000 $0 CUMULATIVE SAVINGS Yur Estimated kWh Production Ann ua l Ut ihtv Rate Increase : 4 .8% Est imated Net Sav ing s/yea r vs. Xcel Esti mat ed Cum ulative Sa vi ngs Annual !,!till~}' Rat~ ln~reag: ~o/9 Estimated Net Savings/year vs . Xcel Estimated Cumulative Savings Artlll.l~l lltllicy Rate ll!l:r~;_ 1% Estimated Net Sav ings/year vs . Xcei Est imated Cumulative Savings 1 374,400 $71,698 -$483 662 $71,698 -$483 662 $71,698 -$483 662 2 372,528 $74,763 -$408 899 $73,479 -$410 183 $72,053 -$411 610 10 11 12 ,. 15 Year 3 5 10 370,665 366,968 357,885 $77,960 $84,770 $104,511 -$330 939 -$164 875 $316 547 $75,305 $79,094 $89,423 -$334 878 -$178 607 $247 343 $72,409 $73,128 $74,956 -$339 201 -$193 305 $177 799 15 349,027 $0.369 $128 850 $0.000 $0 16 17 15 349,027 $128,850 $910 085 $101,099 $728 913 $76,829 $558 180 Cumulative Savings-208kW, $555360 Upfront Payment $2,000,000 $1,500,000 $1,000,000 $500,000 $0 -Cumulative Sa vi ngs tP 4 .8% annual utility r.te escalation -Cumulative Savings@) 3" annual utility rate escalation -cumulative Savings@ 1" annual utility rate escalation 20 340,388 $0.467 $158 857 $0.000 $0 .. 19 ~ 20 340,388 $158,857 $1 641,847 $114,301 $1,273 368 $78,750 $948 069 w u 12 ll ,. ~ ~ " .. .. ~ -$500,000 -$1,000,000 Year FINANCIAL SUMMARY Prepared for City of Wheat Ridge $0 Down Option 12-cent SunShare SSA with 2 .9% escalator, $ upfront pre-pay 208 kW Solar Services Agreement SRC CREDIT vs SUNSHARE PAYMENTS Y•r 1 z 3 5 10 Estimat ed k Wh Prod uction 374,400 372,528 370,665 366,968 357,885 Annual Uti!!tY_Rate Increase : 4.8% ~ Xcel Est. Electnclty Solar Rewards Credit/kWh @ 4 .8% $0.192 $0.201 $0.210 $0.231 $0.292 Projected Annual Savings @ 4 .8% $71 698 $74 763 $77 960 $84 770 $104 511 SunShare SSA Price/kWh at 2.9% $0.120 $0.123 $0 .127 $0.135 $0 .155 SunShare SSA Payments $44 928 $46 000 $47 097 $49 371 $55 547 SRC Credit vs. SunShare Payments -208kW $180,000 $160,000 $140,000 $120,000 $100,000 Xcef Est . Etectrkh:y Sobr Rewards Oedlt ~ 4.8% annual utility ra te naladon $80,000 $60,000 $40,000 $20,000 $0 • SunShare SSA P•vmenu CUMULATIVE SAVINGS Y•r Estimat ed kWh Production Ann y ~l !,!tolity Ra ~ !ncr~~; 4.§~ Estimated Net Savings/year vs. Xcel Est i mated Cumulative Sa vings Annyal !,!!illty R tl~ j!}!;r~~; ~~ Estimated Net SavingS/year vs . Xcel Estimated Cumulative Savings Ann!,!~l !.!llllty Bl!~ I!!!;!D:;t: 1 ~ Estimated Net Savings/year vs . Xcel Estimated Cumulative Savings 1 374,400 $26,770 $26 770 $26,770 $26 770 $26,770 $26 770 z 372,528 $28,764 $55 533 $27,480 $54 249 $26,053 $52 822 10 II 12 14 1S Year 3 5 10 370,665 366,968 357,885 $30,863 $35,399 $48,964 $86 396 $154 869 $371 199 $28,208 $29,724 $33,875 $82 457 $141 137 $301 994 $25,312 $23,757 $19,408 $78 134 $126 438 $232 450 Cumulative Savings-208kW, $0 Upfront Payment $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 --Cumulative Savings@!) 4.11% annual utility rate escalation --Cumulative Sav;n&s @) 3" annual utility rate escalation --cumulative Savings@!) 1" annual utility rate escalation 15 349,027 $0.369 $128 850 $0.179 $62 496 16 17 15 349,027 $66,354 $666 479 $38,603 $485 308 $14,333 $314 575 zo 340,388 $0.467 $l58 857 $0.207 $70 315 11 u ~ 20 340,388 $88,542 $1062,672 $43,986 $694 193 $8,435 $368 894 W II 12 U ~ 1S 16 D 11 U ~ Year Community Solar Opportunity # r ~0 'What Simply • Smart • Solar A Colorado-based company founded in 2011, SunShare is one of the first Community Solar Companies. o We develop, own, operate and insure the Community Solar Gardens o We have 12 MW of awards, 7.5MW in the greater Denver reg ion o We won 1 00°/o of Xcel Energy's competitive RFP awards in 2013, including all awards available in Jefferson County Venetucci Solar Garden in Colorado Springs ..... ~-~-uc:c:s s,-,.,ce l9t1- University of <?olorado Colorado Spnngs City of Westminster @ARVAI5A Inspire. Educate. Empower. SunShare and NRG have partnered to create a world class team We will leverage each other's solar expertise to drive the project through to completion Responsibilities -·-nrg~· • Complete project finance • Final design and engineering • Construction and Project Management • Operations and Maintenance Simply· Smart· Solar • Project Development and Land Entitlement • Subscription Sales and SSA Contracting • • Community Outreach and Marketing Long Term Customer Management Corporate Background • Fortune 250 Company and listed on the S&P 500 Index • largest independent power producer in the U.S. I :~: . • Nation's largest sponsor of solar projects • 1 0,000+ employees I nrg.M Financing Capabilities • 2.3 Billion dollar credit line with global banks • 1 0.6 Billion market capitalization • $3 billion+ invested in environmental improvements Solar Expertise • World-class solar panels and system components • • In-house engineering, construction and asset management teams 24/7 system monitoring • Warranty and insurance coverage SunShare Pro osal Size 228 kW 208 kW Upfront payment $776,628 $553,360 $/Watt $3.40 $2.67 20 Year Savings $1,594,720 $1,641,647 ROI 205°/o 296°/o §H~~[ 5lmply • 5mort • Solor SunShare Pay As You Go Pro sal Size N/A 208 kW Upfront payment N/A $0 Community Solar Rate N/A $0.12 20 Year Savings N/A $1,062,672 ROI N/A 00 IHJ~~[ Slmply . Smort . - Marc Bencivenni (720) 606 -421 5 marc@mysunshare.com JW Postal (303) 378-8590 jw@mysunshare.com Contact Us. September 24, 2014, REVISED on-bill credit rate from $0.20241 to $0.19859,-$0.00382 change City of Wheat Ridge 7500 W. 291h Avenue Wheatridge, CO 80033 Clean Energy COLLECTIVE . Clean Energy Collective (CEC) is pleased to present City of Wheat Ridge with the opportunity to own solar panels in our community-owned solar array for Xcel Energy's Solar* Rewards Community program in Jefferson County. You are currently spending 0 .26 for electricity per kWh with Xcel. With a CEC purchase, the estimated on-bill credit and REC payments combined equals $0.21859 per kWh earned through our program. Your 12 month electrical usage was 312,195.00 kWh with a total electric expense of $92,211.88 . Below represents offsetting various premise numbers with a 228.42 kW system . The savings shows a payback of your system in/between year 8 and 9. Thank you, Amy Thompson Director of Commercial Sales Attachment 2 401 Tree Farm Drive, Carbondale, CO 81623 // phone 800.646.0323 // fax 970.692.2592 // easycleanenergy.com The information contained in this proposal has been prepared in good faith. All figures herein are only estimates of future costs, production and savings . Actual performance will vary . Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance . This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security . Consult your accountant about any possible tax implications re lated to this proposal. Projected bill credit savings estimates assume 4.8% annual electricity price inflation . -·V>-o--1 3::rn>::r -oO~n> = c 0 -· @0:3=:, !:!:. ::J Q.l 0 g ~ ~ 3 "'e-m~ n;ro:£C5" 948=::J ~ !?1. 01 § g ~~ ~ ~tl>()::J ~~re~ "OV>:::>:;-.., -· o ::l m,...,. "0 < ::J ::r Sl 0: !ll Vi ' Q.l ,...... (,0 ~ =-3-<a 4'~bl"8 .9. ;; ~ Kl !l:a;: (1) Q.l < Q) a. X (1) CJ'J CTQICTc;r =~mm q 1'\' iil ::J ~-n>::J"O ~~~~ Kl ::. 0: ~ < c.n -o (t) 5 ' ;::;: 0 a. 10 ::J -· U') ,...,. V'l ::l ::r -· n> n> g: 10 "'o==o a:=ll-<=8. 3 n> ..... ~ ~. o or n> ::J .., -· VI 1.0 < g. ~ 9., ~. ~ ~OJ~.= 3:110:::!> (D ~ ~ ~ ! 5. g m ,eOJ~::r o = ~ ro OJ ::s ro (b ::J l4 ::J -· ::J .., ::J ~3~~ n> "0 n> ~ ~~. g ~ 0 n> -:::l . .., ~-< 0 . :.g ,,. ~ -<: 8 ~ 3' ~ ~. Q.l QJ -·-<: ::J ~ ~. n ~ ~ 5gro~ OJ "' OJ 2' 5'~2-2 ::::J "< w CD 0 -c .., n .., n> 0 ~~~ 8 ~~ c .., ::J "0 8. @' ro c i=l-3'~ OJ 3 5 ' CTOJ::J 0 ::J OJ ~@ ~ OJ · ~ --!Kl 2: :s . "0 "' ::l 0-oiO !ll .., !" -· 0 c:r "0 )> iDR~ ~ llj c OJ -OJ )( - ""' 0 .... -1 ... t1) t1) "T'' Ill ... 3 c ... c:· ~11) n Ill ... C" 0 :I Q. Ill zr n 0 00 .... 0'1 "' c.u ~ "0 ;r 0 ::J ro 00 0 0 <n ""' 0'1 b c.u N c.u ~ iii' )( ID -..J ? 0'1 ID N i-J V1 ID "' ~ t1) Ill Ill < n iD Ill :I t1) :I t1) ~ ;., 0 3 Wheat Rldge Credit Analysis Address Faclllty Meter II Premise" Account## On-Bill Credit 4900 Marshall 51 SG W46188T 300959796 53-n63359-5 $0.52838 11300 W 44th Ave Unt Fall Field SG 59980352 304316779 53-0762534-9 $0.50899 4355 Field St SG W60930S 300676601 53-n63359-5 $0.46278 7500 W 29th Ave Bldg PUMP SG 53942341 301079534 53-n63359-5 so.1n82 11220 W 45th Ave Bldg Police SG W51954T 304011874 53-n63084-3 $0.11446 6363 W 35th ave Bldg . RR SG 49435016 301223669 53-7762988-4 $0.11189 9110 W 44th Avenue SG W3760lT 300936541 53-7763359-5 $0.09030 5349 W . 27th Avenue R 35859566 300916497 53-n63359-5 $0.07441 4610Robb St R 02197738 301213589 53-n63359-5 $0.07441 4355 Field Street c W2496438 300676605 53-n63359-5 $0.07369 11220W. 45th Avenue c Wl506864 301420544 53-n63084-3 $0.07369 4255 Fenton Street c 01232598 300678678 53-n63359-5 $0.07369 3400 Fenton Street Street c 44816806 300751720 53-n63359-5 $0.07369 6363 W. 35th Avenue c W981629 300921818153-n62988-4 $0.07369 Cumulative Cumulative Usage kW kWSystem usase kWh Usage kWh 120%Cap kW System 24,240.00 29,088 17.86000 17.860000 29 ,088 27,640.00 33,168 20.21000 38.070000 62,256 24,622.00 29,546 18.09500 56.165000 91,802 15,192.00 18,230 11 .04500 67.210000 110,033 34,040.00 40,848 24 .91000 92.120000 150,881 72,240.00 86,688 53.11000 145.230000 237,569 36,880.00 44,256 27.02500 172.255000 281 ,825 19,521.00 23.425 14.33500 186.590000 305,250 3,115.00 3,738 2.11500 188.705000 308,988 21 ,264.00 25,517 15.51000 204 .215000 334,505 8,049.00 9,659 5.87500 210.090000 344,164 2.670.00 3,204 1.88000 211.970000 347,368 12.049.00 14.459 8.69500 220.665000 361,826 10,673.00 12.808 7.75500 228.420000 374,634 Cumulative Total Annual On-Bill Utility Credit Rate Cost $0.52838 $18,264.90 $0.51805 $21,353.62 $0.50026 $16,297.84 $0.44684 $4,838.16 $0.35685 $5,972.09 $0.26747 $11,721.32 $0.23965 $5,169.19 $0.22697 $2,251.07 $0.22512 $414.46 $0.21357 $2,329.41 $0.20964 619.65 $0.20839 $161.79 $0.20301 $1 ,409.19 $0.19859 $1 ,409.19 Current Effective Retail Rate $0.75 so.n $0.66 $0.32 $0.18 $0.16 $0.14 $0.12 $0.13 $0.11 $0.08 $0.06 $0.12 $0.13 Cumulative Effective Retail Rate $0.75 $0.76 $0.73 $0.66 $0.53 $0.40 $0.36 $0.34 $0.34 $0.32 $0.31 $0.31 $0.30 $0.26 ()() o m I QJ I :J m m ():J ~ct> -..., <tO m '< Per Watt Total Gross Price $5.29 $1,207,363 30% Discount From Federal Tax ($1.59) ($362 ,209) Credit CEC Discount ($0.30) ($68,526) Net Purchase Price $3.40 $776,628 Bill Credit 20Year SO Year Escalator /Inflation IRR IRR 4.80% 11.86% 14.10% 20Year SO Year Discount Rate NPV NPV 4.00% $716,323 $2,921,103 First Year Payback Clean Energy COLLECTIVE 10.5% I ·. ..' 1 ° i ' ., Bill Credits $2,209,412 REC Payments $139,018 Total Savings $2,348,430 Savings vs. Purchase Price $1,571,802 20Year ROI 202% I ' • ..t· . ~ . .t: ·. . . • J Bill Credits REC Payments Total Savings Savings vs. Purchase Price 50 Year ROI C02 Avoided (lbs) Car Travel Avoided (miles) Trees Planted $12,170,191 $139,018 $12,309,209 $11,532,581 1485% 28,593,228 32,421,813 44,101 401 Tree Farm Drive, Carbondale, CO 81623 // phone 800.646.0323 II fax 970.692.2592 // easycleanenergy.com The information contained in this proposal has been prepared in good faith. All figures herein are only estimates of future costs, production and savings. Actual performance will vary. Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance. This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security . Consult your accountant about any possible tax implications related to this proposal. Projected bill credit savings estimates assume 4 .8% annual electricity price inflation . r~ -'· 7 '" , ... ,,«=>,-...,.. ... '! ·-~~·~!tmr~~M!""'~~~-~,-\'J~ .... ~ !J... 0 ~ ·-· ~"!...~-ill.Li.>-.:L-'-'>.1l~.0,-,_L!\ < '-~~--- Bill Credit Escalator 4.80% Bill Credit Rate $0.19859 SG/PG- .... ·~ Clean Energy COLLECTIVE . ,·~:1 :"..:§. ft'l.~-~ ... Panels 972 Watts 228,420 Class of Service Custom Net Purchase Price $776,628 Year 1 2 3 4 s 6 7 8 9 10 11 12 13 14 1S 16 17 18 19 20 Yrs 1-20 Yrs 21- so Total Est. REC Annual Credit Est. Bill Payments Est. Total kWh Rate Credits Credits Savings 371,702 $0.19859 $73,816 $7,434 $81,250 369,159 $0.20812 $76,830 $7,383 $84,213 366,617 $0.21811 $79,964 $7,332 $87,296 364,074 $0.22858 $83,221 $7,281 $90,502 361,531 $0.23955 $86,606 $7,231 $93,837 358,988 $0.25105 $90,125 $7,180 $97,304 356,445 $0.26310 $93,782 $7,129 $100,911 353,902 $0.27573 $97,582 $7,078 $104,660 351,360 $0.28897 $101,531 $7,027 $108,558 348,817 $0.30284 $105,635 $6,976 $112,611 346,274 $0.31737 $109,898 $6,925 $116,824 343,731 $0.33261 $114,327 $6,875 $121,202 341,188 $0.34857 $118,929 $6,824 $125,753 338,645 $0.36530 $123,708 $6,773 $130,481 336,103 $0.38284 $128,673 $6,722 $135,395 333,560 $0.40121 $133,829 $6,671 $140,500 331,017 $0.42047 $139,184 $6,620 $145,804 328,474 $0.44066 $144,744 $6,569 $151,313 325,931 $0.46181 $150,517 $6,519 $157,036 323,388 $0.48397 $156,512 $6,468 $162,979 6,950,907 $2,209,412 $139,018 $2,348,430 9,203,460 $9,960,779 $0 $9,960,779 16,1S4,366 $12,170,191 $139,018 $12,309,209 Annual kWh is the estimated production from your portion of the solar facility . Credit rate is the estimated credit adjusted for inflation at 4 .8% per year. SO Year ROI 1485% O&M Total Est. Cumulative Expense Savings Savings $0 $81,250 $81,250 $0 $84,213 $165,464 $0 $87,296 $252,760 $0 $90,502 $343,262 $0 $93,837 $437,098 $0 $97,304 $534,403 $0 $100,911 $635,313 $0 $104,660 $739,973 $0 $108,558 $848,532 $0 $112,611 $961,143 $0 $116,824 $1,077,966 $0 $121,202 $1,199,168 $0 $125,753 $1,324,921 $0 $130,481 $1,455,402 $0 $135,395 $1,590,797 $0 $140,500 $1,731,297 $0 $145,804 $1,877,101 $0 $151,313 $2,028,415 $0 $157,036 $2,185,451 $0 $162,979 $2,348,430 $0 $2,348,430 $2,348,430 $0 $9,960,779 $12,309,209 $0 $12,309,209 401 Tree Farm Drive, Carbondale, CO 81623 II p h o ne 800.646.0323 II f ax 970.692.2S92 II easycleanenergy.com The information contained in this proposal has been prepared in good faith. All figures herein are only estimates of future costs, production and savings. Actual performance will vary. Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance . This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security. Consult your accountant about any possible tax implications related to this proposal. Projected bill credit savings estimates assume 4.8% annual electricity price inflation . Clean Energy COLLECTIVE > :. :·' • ' • • • • J : 'I • . • • t_ 'I • ,I ' ' I I : • • j $776,628 Purchase Price Interest Rate 5.25%* Down Payment $0 $0 * Down 0% Term (years) 15* Net Cash Generated $1,229,560 Payment $776,628 Amount to Finance Monthly ($6,216) Net Gain on Purchase $1,229,560 Payment Annual Payments ($74,591) Panels 972 Watts 228,420 Net Purchase Price $776,628 ... ~~~~·,,~~~~:·r~:~r-· . . ···"· -·· . ,;;. ~~.-, ~ ~~~2__-..... ~--~ ~-·~-'", ~r-<_ I "' :· t' """ ''"'· .( .... . ' . -.. .. ~ Cumulative Est. REC Est. Total Savings Lease Net Cash Year Est. Bill Credits Payments Generated Payment Net Cash Flow Flow 1 $73,816 $7,434 $81,250 ($74,591) $6,659 $6,659 2 $76,830 $7,383 $84,213 ($74,591) $9,622 $16,281 3 $79,964 $7,332 $87,296 ($74,591) $12,705 $28,986 4 $83,221 $7,281 $90,502 ($74,591) $15,911 $44,896 5 $86,606 $7,231 $93,837 ($74,591) $19,245 $64,142 6 $90,125 $7,180 $97,304 ($74 ,591) $22,713 $86,855 7 $93,782 $7,129 $100,911 ($74 ,591) $26,319 $113,174 8 $97,582 $7,078 $104,660 ($74,591) $30,069 $143,243 9 $101,531 $7,027 $108,558 ($74 ,591) $33,967 $177,210 10 $105,635 $6,976 $112,611 ($74,591) $38,020 $215,229 11 $109,898 $6,925 $116,824 ($74,591) $42,232 $257,462 12 $114,327 $6,875 $121,202 ($74,591) $46,611 $304,072 13 $118,929 $6,824 $125,753 ($74 ,591) $51,161 $355,233 14 $123,708 $6,773 $130,481 ($74,591) $55,890 $411,123 15 $128,673 $6,722 $135,395 ($74,591) $60,804 $471,927 16 $133,829 $6,671 $140,500 $0 $140,500 $612,427 17 $139,184 $6,620 $145,804 $0 $145,804 $758,231 18 $144,744 $6,569 $151,313 $0 $151,313 $909,545 19 $150,517 $6,519 $157,036 $0 $157,036 $1,066,581 20 $156,512 $6,468 $162,979 $0 $162,979 $1,229,560 *suRif&~ to un~g,iftz $139,018 $2,348,430 ($1,118,870) $1,229,560 401 Tree Farm Drive, Carbondale, CO 81623 // phone 800.646.0323 II fax 970.692.2592 II easycleanenergy.com The information contained in this proposal has been prepared in good faith. All figures herein are only estimates of future costs, production and savings. Actual performance will vary. Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance. This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security. Consult your accountant about any possible tax implications related to this proposal. Projected bill credit savings estimates assume 4.8% annual electricity price inflation. Clean Energy COLLECTIVE How the Xcel Energy Solar* Rewards Community Program Works Xcel Energy's Solar* Rewards Community Program provides Xcel Energy customers with the opportunity to purchase solar power from a number of community-owned solar facilities being built by Clean Energy Collective. The solar arrays are established by County and are designated to serve only those customers physically located within the county boundaries . CEC has 11 approved solar facilities in the following counties; Denver (3), Jefferson (2), Boulder (3), Summit (2) and Arapahoe (1). Each of the solar arrays is progressing through a series of engineering and interconnection activities to determine optimal build characteristics and to establish the construction schedules . The table below shows the initial estimated credit rates Xcel Energy will apply to kWh's produced by panels in the community-owned solar facilities . Commercial credit rates are determined by customer and rate class and will vary from the estimated amounts listed below, primarily due to the impact of Demand Charges. Customers with high demand charges and low kWh usage will receive a higher credit per kWh. Xcel Fixed Credit Rates c $0.07369 SG,SGL,SST $0 .06902 v Secondary General, Low -load, Standby STOU $0.06598 v Secondary Time of Use SPVTOU $0 .06591 v Secondary PV Time of Use PG,PST,SCS-7 $0 .05806 v Primary General , Standby, Regional Transportation District TG, TST, TIOU $0 .05526 v Transmission, Standby, Time of Use V denotes credits rates that are variable by customer, and are established based on the preceding calendar year's actual usage and demand charges . The credit rates are tied to the retail rate charged by class and will rise and fall with Xcel Energy's retail rates, providing energy inflation protection for solar array customers. There are no caps on the credit rates. Monthly Bill Credits Xcel Energy will calculate the amount of kWh's attributable to each customer in the solar array on a monthly basis . Once the kWhs attributable to each customer are determined, Xcel Energy will calculate the credit amount owed and post it to their bill, one month in arrears . For example, September solar power will be credited to customers on their October dated bills from Xcel Energy . Xcel Energy will continue to bill all customers for the actual usage under prevailing tariff rates and will apply the solar array credits as a single line item entry, before taxes. Credits will reduce the amount of the current month's billings . Any credits that are unused will be rolled over and applied to future month's billings. Bill credits can be assigned or reassigned to any meter and any account you have with Xcel Energy in the County of the solar facility you are a part of. The reassignment capability allows your company the opportunity to move the bill credits from one location or account as service needs change over the 20 year contract . 401 Tree Farm Drive, Carbondale, CO 81623 // ph o ne 800.646.0323 II fax 970.692.2592 // easycleanenergy.com The information contained in this proposal has been prepared in good fa ith. All figures herein are only estimates of future costs, production and savings. Actual performance will vary. Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance . This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security . Consult your accountant about any possible tax implications related to this proposal. Projected bill credit savings estimates assume 4.8% annual electricity price inflation . Renewable Energy Certificate Payments (REC Payments) Clean Energy COLLECTIVE Xcel Energy makes Renewable Energy Certificate (REC) payments for the carbon offset and environmental benefits generated by clean renewable power produced by the solar array . CEC receives the REC Payments from Xcel Energy and deducts a portion ofthe REC Payment each month to fund the ongoing operations and maintenance ofthe solar array, ensuring that the facility has sufficient funds to operate for the first 20 years. CEC deposits these funds into the Operations & Maintenance Trust account. • CEC has set the initial O&M deduction at $0.02/kWh. This deduction is applied to all customers and all power produced on a monthly basis. CEC believes this amount will be sufficient to cover the operations and maintenance of the array for the first 20 years . After the deduction for operations and maintenance, CEC will calculate the remaining REC Payment attributable to each customer on a monthly basis. REC Payments will be equal to the customer's portion of the kWh produced for the month multiplied by the $0 .02 Net REC Rate. Payments will be released on a quarterly basis in arrears . REC payments will be made via electronic funds transfer or check . Federal Tax Credit The current federal tax code includes an available tax credit incentive for individuals and businesses who install a solar PV system on their property. This direct tax credit is unavailable to offsite community solar customers. CEC, however, is able to provide a 30% discount in the one -time system cost by capturing the federal tax credit for the entire array . This discount is equal to the value of the federal investment tax credit for solar installations . As a result, all CEC customers, regardless of their tax status, can experience the full value of the tax incentive without having to file for anything on their tax returns . Contract Structure Your organization will be purchasing a specific number of panels within CEC's solar facility . Under the terms of the contract you will appoint CEC as your agent to sell the power produced and environmental attributes of your panels to Xcel Energy . In return, you will receive both the energy bill credit on your Xcel Energy bill each month and a quarterly payment of Renewable Energy Credits from CEC. Taking direct ownership of the panels allows you to benefit from the estimated 50 year life of the solar facility and significantly increase the amount of savings your panels will generate. Reservations can be secured with a fully refundable 10% deposit with the full purchase price required at closing (upon activation of the array). CEC has financing partners available to provide loans for the purchase of interest in the solar arrays . Customer Purchase Restrictions Under the Xcel Energy program, customers cannot purchase interest in capacity greater than 120% of their average annual use, over the past 12 months. CEC works with Xcel Energy to confirm your previous 12 month usage and will present the analysis to you. Xcel Energy also restricts the purchase of interest in capacity to no more than 40% of the array's nameplate capacity to a single customer premise . Transfer and Sale Bill credits can be assigned to any meter under your Xcel Energy account, at any time. The reassignment capability allows you the opportunity to move the bill credits from one location or account as your organization's service need change over the 20 year contract. You can sell your interest in the solar array at any time, to any other qualifying Xcel Energy customer within the same county as the solar facility you have interest in . 401 Tree Farm Drive, Carbondale, CO 81623 II phone 800.646.0323 II fax 970.692.2592 II easycleanenergy.com The information contained in this proposal has been prepared in good fa ith. All figures here in are only estimates of future costs , production and savings . Actual performance will vary . Clean Energy Collective bears no respons ibility for variations between its projections and the actual realized performance . This proposal should not be considered as investment or tax advice , nor is it the offering of a financ ial instrument or security . Consult your accountant about any possible tax implications related to th is proposal. Proj ected bill credit sav ings estimates assume 4.8% annual electricity price inflation . Operations & Maintenance Program Clean Energy COLLECTIVE , CEC is responsible for the ongoing operations and maintenance of each solar array . This includes active daily monitoring of production and weather information, as well as real-time visibility into actual production. Any unexpected degradation in production is flagged and investigated by CEC and our maintenance personnel. To ensure that maintenance is provided over the life of the array, CEC establishes a separate O&M Trust account, which holds all of the funds necessary to pay for maintenance, insurance, property taxes and land costs. ... ..,. 100.Dtlo """" 90."" ....... ....... '""" Expected Annu.l Production 1 1 l 4 S 6 7 • 9 10 1l U U 14 1S 16 11 11 19 10 11 :n 1l 24 1S .... -{Jcpected Productk»n -W IIf.~~nttd PrOdUCteon The manufacturer's 25 year panel warranty covers expected annual production at or above 90% in the first 10 years, and 80% for the remaining 15 years . Panels not meeting the warrantied production levels will be replaced. The CEC O&M Trust program seeks to maximize production with proper monitoring, maintenance and timely repair. CEC's service and maintenance program is anchored by the creation of the O&M Trust and the funding that is placed in the account. The O&M Trust account is funded with an initial contribution by CEC and ongoing monthly contributions from the REC payment stream of $.02/kWh, for every hour of production . The Trust Account is established to ensure that the solar facility is able to operate for years to come, independent of CEC's continued operations. The CEC O&M Trust provides: • A segregated Trust Account that holds all of the Operations and Maintenance funds, the contract with Xcel Energy, the land lease and all of the manufacturers' warranties . • Real time monitoring of the array's production . • Real time monitoring of the weather and irradiation at the array. • Baseline production monitoring against the expected production per year, not just the manufacturers' warranties . If production falls by more than 2%, the array is inspected and faulty components are replaced or repaired . • Annual inspections of the array by certified technicians. • 25 year panel warranties from the manufacturer. • 10 year successive inverter warranties from the manufacturer. • 10 year installation warranty from the installation contractor. • Immediate repair or replacement of faulty or defective parts. • Insurance against all damages at full replacement value. Get Started Today 401 Tree Farm Drive, Carbondale, CO 81623 // pho ne 800.646.0323 II fax 970.692.2592 // easycleanenergy .com The information contained in this proposal has been prepared in good faith. All figures herein are only estimates of future costs, production and savings. Actual performance will vary. Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance. This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security. Consult your accountant about any possible tax implications related to this proposal. Projected bill credit savings estimates assume 4.8% annual electricity price inflation. Complete ALL of the following steps to reserve your system . 1. Choose your system size: kW System Size: Price: I .-------, Deposit: Clean Energy COLLECTIVE . 2. Send your Payment and Information-Complete all of the information on this page and then send with your refundable deposit check payable to: CEC Deposit Trust Mail to: CEC, P.O. Box 1828, Boulder, CO 80306 Your deposit is fully refundable and secures your system in the array on a first-come, first-serve basis. 3. E-Sign your Agreements-Once we receive your information and deposit, we will create your customer agreements . You will receive an e-mail with instructions for completing the agreements electronically via CEC's secure website. 4. Customer Information -for all agreements (print) Business or Organization Contact Name City State Zip County Mailing Address (if different than physical address above) Primary Phone Number Secondary Phone Number Xcel Account Number Xcel Premise Number Customer Signature Date 5. Confirmation -Your reservation is confirmed after receipt of your deposit. Your final payment is required to activate your panels once construction is complete. Thank you for joining Clean Energy Collective! 401 Tree Farm Drive, Carbondale, CO 81623 // phone 800.646.0323 II fax 970.692.2592 // easycleanenergy.com The information contained in this proposal has been prepared in good faith. All figures herein are only estimates of future costs, production and savings. Actual performance will vary. Clean Energy Collective bears no responsibility for variations between its projections and the actual realized performance . This proposal should not be considered as investment or tax advice, nor is it the offering of a financial instrument or security. Consult your accountant about any possible tax impl ications related to this proposal. Projected bill cred it savings estimates assume 4 .8% annual electricity price inflation . Town of Breckenridge CONTACT: 800.646.0323 I info@easycleanenergy.com Clean Energy C 0 L L E C T IV E. Total panels purchased: 1,134 System size: 217.45 kW Cost after rebates: $977,184 20-year savings: $1,888,823 14.26 million pounds of C02 emissions prevented L Jfti 16.17 million vehicle 0 o" miles saved 22,002 trees planted CONTACT: 800.646.0323 I info@easycleanenergy.com Clean Energy C 0 L L E C T IV E. October 2, 2014 Patrick Goff, City Manager City of Wheat Ridge 7500 W. 29 1h Avenue Wheat Ridge, CO 80033 Ref: Clean Energy Collective Dear Patrick, 601 Center Circle • P.O. Box 1309 • Silverthorne, Colorado 80498 The town of Silverthorne is a current owner of 200kWs in the Breckenridge solar gardens (Gardens). The Gardens were activated in October of 2013. The Gardens were constructed in cooperation with the town of Breckenridge and Clean Energy Collective (CEC). Solar production and panel ownership was sold to the public. Through an agreement, CEC Is the managing entity of the maintenance and operations of the Gardens. I worked directly with CEC as I analyzed the program, selected specific Xcel accounts to apply the kWs, analyzed the cost/benefit and communicated the specifics of the program to our manager and Council. I worked with numerous CEC employees but mostly with Amy Thompson. CEC was very helpful, knowledgeable, professional and supportive as we moved through the process. They continue to be responsive and supportive now that we've moved Into the solar production side of the project. The Town elected to participate. in the Garden instead of placing panels on our buildings because we realized the Garden would generate better solar production. Additionally the maintenance and operations would be dealt with by an agency that had expertise in solar and dealing with Xcel. CEC has experience dealing with the unique rules and regulations that flow through to solar projects as it relates to governments/non-profits. They deal directly with Xcel, the PUC and Federal government. The Town has a few more months before we know what the first full year of solar production activity is but we see reductions on our monthly Xcel bills based on solar production and receive quarterly credits back also based on production. These pay backs reduce our electrical expenses. Our experience with CEC was excellent and continues now that we're in solar production. Please feel free to contact me if you have further questions. Sincerely, Donna Braun, Finance Director Town of Silverthorne, Colorado General Government (970) 262-7300 Community Development (970) 262-7360 Fax (970) 262-7312 Public Works (970) 262-7340 Public Safety (970) 262-7320 Recreation & Culture (970) 262-7370 FOR IMMEDIATE RELEASE Clean Energy COLLECTIVE Sept. 25, 2014 Media Contact Tim Braun, b2,inc . (970) 618-0080 tbraun@b2inc .net IJ Yeu ID DENVER RECREATION DISTRICT TAPS COMMUNITY SOLAR FOR SUSTAINABILITY INITIATIVE South Suburban Park and Recreation District powers multiple facilities with solar garden purchase. CENTENNIAL, COLO.-(September 25, 2014) An increasing number of municipalities and public agencies across the country are joining residents and businesses in utilizing locally-produced renewable energy via community solar facilities to power operations. Boulder-based Clean Energy Collective (CEC), the nation's leading community solar developer, announced today that South Suburban Park and Recreation District, a Colorado special district that provides recreational facilities and services for District residents, has made a significant purchase in a CEC community- owned solar facility. South Suburban Park and Recreation District, serving nearly 140,000 residents in the cities of Bow Mar, Columbine Valley, Littleton, western Centennial, Sheridan, and lone Tree, Colo., purchased 170 kilowatts, or 725 solar PV panels, in CEC's Arapahoe County Community Solar Array located in nearby Aurora, Colo. The renewable energy produced by the solar panels, over 260,000 kWh's per year, will help offset the power requirements for several of the District's high demand irrigation systems that serve its golf courses, ball fields and playgrounds. "The District has worked for years at saving water and energy at parks and facilities, but never found a viable way to implement renewable energy in a cost effective way. The CEC community solar garden model provides a sound return on investment along with the energy savings," said Brett Collins, South Suburban Park and Recreation's Director of Planning and Development. "We're very excited to welcome South Suburban Park and Recreation District as a solar garden customer," said CEC founder and president Paul Spencer. "It's exciting that CEC's community solar solution will play a significant role in helping the District in its mission to foster healthy living through environmental stewardship." CEC's community solar model allows electricity customers of any kind to buy into locally-sited, medium-scale solar arrays and receive credit for the power produced directly on their monthly utility bills. This option is especially attractive for renters, people who live in apartments, and home and business owners with roofs that are shaded or face the wrong direction or may be unsuitable for solar panel installations. -more- Demand for community solar is growing among municipalities and special districts as many have proactive sustainability initiatives that include using renewable energy. In addition, such entities are often highly scrutinized for responsibly managing public funds; community solar provides both an environmentally friendly and financially attractive solution . South Suburban's purchase will allow it to offset power used at multiple facilities, recouping its investment in less than seven years, with a first-year payback of 14% and more than 270% after 20 years-all without forfeiting any open space, or adding to its maintenance obligations. "This purchase is a good start to improving our energy efficiencies, and we continue to look for more opportunities," said David Lorenz, Executive Director for South Suburban. The savings realized from South Suburban's community solar investment is earmarked to fund other energy efficiency projects identified in the District's energy performance contract developed by national energy services firm, McKinstry. The environmental benefit of South Suburban's move is equivalent to the reduction of more than 9 million pounds of C02 emissions, 10 million miles of car travel, or planting 14,000 trees. About Clean Energy Collective Clean Energy Collective (CEC) is the nation's leading developer of community solar solutions. CEC pioneered the model of delivering clean power-generation through large-scale facilities that are collectively owned by participating utility customers. Since establishing the first community- owned solar garden in the country in 2010 near El Jebel , Colorado, CEC has built or has under development more than 40 community solar projects with 18 utility partners across 8 states, representing 36 MW of community solar capacity . www.easycleanenergy .com -30- Clean Energy COL ECTIVE® member owned. nature operated. Community Solar Power Overview City of Wheat Ridge ~ COLORADO COMPANIES TO WATCH 2012 Award Winner U .S . DEPARTMENT OF National Innovative Green Power Program of the Year ENERGY S lA ~~ ::Z01::Z National Photouoltaic Project of Distindion Award · · ··. --·©Copyright 2013 Clean Energy Collective® 1 Agenda • Who is Clean Energy Collective (CEC) and how does the Xcel program work? • Detailed Proposal for the City • Summary • Next Steps · -. . . © Copyright'2013 Clean Energy Collective® 2 About CEC • Clean Energy Collective (CEC) has 12 Xcel Energy Community Gardens awarded. • 9 of the 12 gardens are producing power for our customers. • The 3 remaining arrays will be online by December 2014 • 40 producing solar systems online or under development, >26 MW of power-More than any developer • Currently serving customers of 18 utilities in 9 states Government customers receiving power ~ BRECKENR IDGE • Town of Breckenridge-369 kW system, May 2013, XCEL • Town of Silverthorne-200 kW system, May 2013, XCEL • Town of Telluride-105 kW system, June 2014 SuMMff • Summit County-100 kW system, May 2013 , XCEL l 0 l• N' I '\' Lakewood • City of Lakewood-274.50 kW system, July 2014, XCEL ..._ .. Colorado • Arapahoe County-17.65 kW system, July 2014, XCEL AIIA~AHOII COUNTY The Solution-Community Solar with the CEC Examples of CEC Xcel Community-Owned Solar Arrays Boulder Cowdery Meadows Solar Array, Boulder, CO Location: 1600 South 66th Street Boulder, CO Size: 469,455 Watts, 2,016 Panels Availability: Sold Out Interconnected: April 2013 Utility: Xcel Energy Types of Customers: • Residential • Government • Commercial • Non-Profit Examples of CEC Xcel Community-Owned Solar Arrays Aurora #1 Solar Array, Aurora, CO Location: 790 N. Tower Road Aurora, CO Size: 469,455 Watts, 2,119 Panels Availability: Yes Interconnected: November 2013 Utility: Xcel Energy Types of Customers: Residential o Government o Commercial o Non-Profit . . . . . .. . . @ Co~yright 201J ci~a~· .Energy Collective® 7 Examples of CEC Xcel Community-Owned Solar Arrays Denver I Lowry Community Solar Array, Denver, CO Location: 7581 E. Academy Blvd., Denver, CO Size: 400,075 Watts, 1638 Panels Availability: Very Limited Interconnected: May 2013 Utility: Xcel Energy Types of Customers: • Residential • Government • Commercial • Non-Profit Examples of CEC Xcel Community-Owned Solar Arrays -----------..,.... Location: ;'C ~ ~I Q) tD < Green Valley Ranch Blvd ~---------~~ 0 ~ 5050 N. Telluride Street Denver, CO 80449 SLB Site -Evie Garret School Campus E 50 Denver, CO ~ Denver #2 Size: 496.73 ~ E 49 tll Watts, 2030 Panels Denver #3 Size: 496.73 Green Val Watts, 2030 Panels Ranch 0 Cef' Availability: Yes Green Va ll ey Ranch Interconnected: August 2014 Utility: Xcel Energy Types of Customers: • Residential Denver #2 & Denver #3 Community Solar Array, Denver, CO • Government Commercial Non-Profit . . . . -~ · · © Copy~ight 2013 Cl~.a~ Energy Collective® 9 CEC Community Solar Utility Partners nationalgrid Midwest Energy, Inc. HOLY CROSS ENERGY (l Xcel Energy · .. nationalgrid NS77J.R \U Cltyof ~~ ~ ....... ,..,. ~ MOUNTAIN POWER Western Massachusetts Electric A Northeft51 ti litie; Con'llllll) 2014 CEC named #194 in Inc. magazine • Clean Energy Collective (CEC), the nation's leading community-owned solar developer, has been named to the 2014 Inc. 500 list, an exclusive ranking of the nation's fastest-growing private companies. • Ranked number 194 overall, and 11th within the Energy segment, CEC was recognized for its innovative community-owned solar solution being adopted by utilities and communities across the country. • Between 2010 and 2013 CEC's revenue grew 2,217 %. CEC Awards & Recognition Winner: the U.S. Department of Energy's 2011 National Innovative Green Power Program of the Year • Winner: 2013 Top 10 most influential energy companies in Colorado • Winner: PV America's 2012 National PV Project of Distinction Winner: 2012 Colorado Company to Watch • Winner: Climate Change Business Journal's 2012 Project Merit Award Winner: Rocky Mountain Land Use Institute's 2011 Land Use Entrepreneurs Award • Institute for Local Self-Reliance-ranked as the top community-solar solution in the country; only solution rated as "widely replicable" • PV America, Solar Power International, American Solar Energy Society, Solar Power Finance, WREF, CREA, G& T Manager's Association-speaking engagements • FastCompany, NBC, ABC, CBS & USA Today-150+ media outlets NREL-profiled as one of the only community ownership models nationwide (maximum benefit to the rate payer) Firsts: Nation's first community-owned solar facility in 2010, largest in 2011 and nation's new largest in 2012 (first in CO, NW, MN, VT) U .S . DEPARTMENT OF ENERGY ~ COLORADO COMPA IES TO WATCH ... I A Solar Energy Industries Associat ion ••••• ···· ·· SEP.~ •••c••• ••••••• ••••• ... solar e lectric power association Our Jefferson County arrays are producing power NOW! Jefferson 1 &2 Community Solar Array, Golden, CO Location: 56th Avenue off 93 Golden, Colorado Size: 692 kW Availability: #1 Very Limited, #2 Yes Interconnect: June 2014 Utility: Xcel Energy Types of Customers: • Residential • Government • Commercial • Non-Profit Facts about our Jefferson County arrays • Xcel Jefferson County Arrays->692 kW clean power capacity in Jefferson #1 & #2 • Clean Solar Power is sold to Xcel under 20 year agreements, CEC looks to renew the agreement for another 20-30 years • Any Xcel government or commercial customer can buy into their county's community solar power plant • Customers receive monthly electric bill credits on their Xcel Energy bill and renewable energy credits paid in a quarterly cash payment • CEC maintains the solar array power plant for optimal performance and savings -· · '·· . ·~ ,_ ~ · ©Copyright 2013 Clean Energy Collective® 14 How a CEC purchase works • Monthly Bill Credits -Xcel Energy bills Customer for the actual energy usage under its prevailing tariff rates. -Xcel Energy credits Customer for the amount of energy produced by its share of the solar array, under its prevailing credit rate. -Credit rates are tied to the retail rate charged by class, and will rise and fall with Xcel Energy's retail rates. -If the credit exceeds the usage charge, the difference will be credited to the next month's bill. '":· "' •• > • •• •• ©Copyright 2013 Clean Energy Collective® 15 How a CEC purchase works • Renewable Energy Certificate (REC) payments -Xcel Energy makes Gross REC payments of $0.04/kWh (Jeff #2 array) to CEC for the carbon offset and environmental benefits generated by the clean, renewable power produced by the solar array. -CEC deposits $0.02/kWh of the REC payment into the array's Operations & Maintenance (O&M) Trust account. -CEC pays the remaining Net $0.02/kWh (Jeff #2 array) of the REC payment to Customer multiplied by its portion of the power produced. Payments are made quarterly. How a CEC purchase works • Operations & Maintenance (O&M) Trust -CEC is responsible for the ongoing operations and maintenance of the solar array. -To ensure that maintenance is provided over the life of the array, CEC establishes a separate O&M Trust account. -The Trust account holds all of the funds necessary to pay for the maintenance, insurance, property taxes and land costs. -The Trust account is funded with an initial contribution by CEC and ongoing contributions from the REC payment stream of $0.02/kWh of production. ' II: • • -• • ~ •• ... • © c ·opyright 2013 Clean Energy Collective® 17 How a CEC purchase works • Purchase Restrictions -Under the Xcel program, customers cannot purchase interest in capacity greater than 120% of their use over the past 12 months. -Xcel also limits the purchase of capacity by a single customer premise to no more than 40% of the array. . ·• · · . · ·, -, ©Copyright 2013 Clean Energy Collective® 18 How a CEC purchase works • Flexibility -Bill credit can easily be transferred to any meter in the array area. -Can be sold to another Xcel customer. -Can be seasonally rotated to meters with highest on bill credit. How a CEC purchase works • Commercial Financing -CEC has partnered with Alpine Bank to provide it's commercial and government customers with attractive financing terms. • Low interest rates • High loan to values-ZERO dollar down payments • Loan maturities of 5,10 and 15 years • TABOR compliant lease structure • No prepayment penalties nk How a CEC purchase works • Support a Solar Community -CEC offers a discount of $25/panel on purchases made in our solar arrays by employees of our commercial and governmental customers -To participate: • Corporate or Government communicates their investment in Community Solar to their employees and makes them aware of the discount they have negotiated for their employees • Sponsor a "Go Solar Day" where CEC solar experts are onsite at the employer to answer questions and educate ' • .. ,. • ~ 0 ~ -• · . © C~pyright 2013 'clean Energy Collective® 21 Remote Meter ®shows Wheat Ridge's Savings • Turn-key remote metering -Regardless of the physical facility proximity -Secure access online & via mobile devices • Easy monitoring and awareness -Support LEED Education Component Real-time clean energy production -Information, reporting & management • Integration with utility billing systems -Track/apply clean energy production credits directly on customer's monthly bill • Exclusive CEC technology -Operating since 2010,CEC RemoteMeter® - Awareness & Education Cf ~~ ... Jw. UD • tJ " &:.-._ • == I 1....._..__ r- -... Wheat Ridge Proposal-Xcel Meters XceiEMIIY What,.uare Your est. YourltEC Est....,.... PNmlse Numbers cunefttly ulculated ....,.... wlthCEC's we.,. llolclnl at ...,... .... Xcel Oft-11111 (recM periiWh ............ otrsetllnt with E'*IY ..... . ......... .... Solar• Electrlclay per llf'Oducecl IIWh? $0.75 $0.52838 $0.02 $0.54838 76 17.860 100"/o 8 .5 years $0.52889 86 20.210 100% 8 .5 year s · --. . ' . . . © Copyright 2013 Clean Energy Collective® 23 50 Year Est. Environmental Benefits of Wheat Location: Multiple Locations Estimated Year SO Electrical Production: 16,154,366 kWh • 28,593,228 lbs. of C0 2 avoided with community- owned solar or • 32,421,813 automobile avoided miles or • 44,101 Trees Planted ·· · ' · ··· • · • ©Copyright 2013 Clean Energy Collective® 24 50 Year Est. Economic Benefits Customer Type: Tax-exempt Location: Multiple Locations Estimated Year 1 Electrical Production: 371,702 kWh Estimated Year 20 Electrical Production: 6,950,907 kWh Estimated Year 50 Electrical Production: 16,154,366 kWh System Size: 228.42 kW Panels: 972 Full Payback: Approx. 8.5 years ------- Car Travel Avoided (miles) Trees Planted .. · · . . . ©.Copyright 2013 Cl ~an .Energy Collective ® 25 Bill Credit Escalator 4.80% Panels 972 Bi ll Credit Rate $0.19859 Watts 228,420 Class of Servi ce ;G/PG-Custom $n6,628 Annual Year kWh Credits Built to last 1 371,702 $73,816 $7,434 $81,250 $81,250 $81,250 2 369,159 $76,830 $7 ,383 $84,213 $84,213 $165,464 3 366,617 $79,964 $7,332 $87,296 $87,296 $252,760 up to so 4 364 ,074 $83,221 $7 ,281 $90,502 $90,502 $343,262 5 361,531 $0.23955 $86,606 $7,231 $93,837 $93,837 $437,098 6 358,988 $0.25105 $90,125 $7 ,180 $97,304 $97,304 $534,403 years 7 356,445 $0.26310 $93,782 $7 ,129 $100,911 $100,911 $635,313 8 353,902 $0.27573 $97,582 $7,078 $104,660 $0 $104,660 $739,973 9 351,360 $0.28897 $101,531 $7,027 $108,558 $0 $108,558 $848,532 > $12M 10 348,817 $0.30284 $105,635 $6,976 $112,611 $0 $112,611 $961,143 11 346,274 $0.31737 $109,898 $6,925 $116,824 $0 $116,824 $1,077,966 12 343,731 $0.33261 $114,327 $6,875 $121,202 $0 $121,202 $1,199,168 Value to 13 341,188 $0.34857 $118,929 $6,824 $125,753 $0 $125,753 $1,324,921 14 338,645 $0.36530 $123,708 $6,n3 $130,481 $0 $130,481 $1,455,402 15 336,103 $0.38284 $128,673 $6,722 $135,395 $0 $135,395 $1,590,797 City, 41 16 333,560 $0.40121 $133,829 $6,671 $140,500 $0 $140,500 $1,731,297 17 331,017 $0.42047 $139,184 $6,620 $145,804 $0 $145,804 S1,8n,1o1 18 328,474 $0.44 066 $144,744 $6,569 $151,313 $0 $151,313 $2,028,415 additional 19 325,931 $0.46181 $150,517 $6,519 $157,036 $0 $157,036 $2 ,185,451 $156,512 $6,468 $162,979 $0 years of Annual kWh is th e e stimated production from your portion of the solar f acility. . Cre dit rate is the e s tim ated credit adjusted for inflation at 4.8% per year. 1ncome .• ··~'tt ' . . .. ~ ' ~-'".;j l •• ·•• . j $776,628 Purchase Price Interest Rate 5 .25% Down Payment $0 $0 Down Payment 0% Term (years) 15 Net Cash Generated $1,229,560 $776,628 Amount to Finance Monthly Payment ($6,216) Net Gain on Purchase $1,229,560 Annual Payments ($74,591) Panels 972 Watts 228,420 Net Purchase Price $776,628 ------L ·,~"-<'"~~~~ "' . .,. . Est. REC Est. Total Savings Lease Cumullltlve Year Est. Bill Credits Payments Generated Payment NetCMhFiow NetCMhFiow 1 $73,816 $7,434 $81,250 ($74,591) $6,659 $6,659 2 $76,830 $7,383 $84,213 ($74,591) $9,622 $16,281 3 $79,964 $7,332 $87,296 ($74,591) $12,705 $28,986 4 $83,221 $7,281 $90,502 ($74,591) $15,911 $44,896 s $86,606 $7,231 $93,837 ($74,591) $19,245 $64,142 6 $90,125 $7,180 $97,304 ($74,591) $22,713 $86,855 7 $93,782 $7,129 $100,911 ($74,591) $26,319 $113,174 8 $97,582 $7,078 $104,660 ($74,591) $30,069 $143,243 9 $101,531 $7 ,027 $108,558 ($74,591) $33,967 $177,210 10 $105,635 $6,976 $112,611 ($74,591) $38,020 $215,229 11 $109,898 $6,925 $116,824 ($74,591) $42,232 $257,462 12 $114,327 $6,875 $121,202 ($74,591) $46,611 $304,072 13 $118,929 $6,824 $125,753 ($74,591) $51,161 $355,233 14 $123,708 $6,773 $130,481 ($74,591) $55,890 $411,123 15 $128,673 $6,722 $135,395 ($74,591) $60,804 $471,927 16 $133,829 $6,671 $140,500 $0 $140,500 $612,427 17 $139,184 $6,620 $145,804 $0 + $145,804 $758,231 18 $144,744 $6,569 $151,313 $0 $151,313 $909,545 19 $150,517 $6,519 $157,036 $0 $157,036 $1,066,581 20 $156,512 $6,468 $162,979 $0 $162,979 $1,229,560 Total $2,209,412 $139,018 $2,348,430 ( $1.118,870) $1,229,560 1 • • " • .. • $0.00 Down TABOR Compliant Lease to Own >$12M Value ·. ©Copyright 2013 Clean Energy Collective® 27 Community Solar with REC vs. NO REC Payment Proposed System Snapshot On-Bill Credit and CEC 20 Year ROI 20 Year Savings Savings with Cash lost over 20 REC after TABOR compliant years without a $776,628.00 lease to Own, REC payment cost ofCEC ZERO Down, 15 purchase Year Term $0.21852 202% $1,571,023 $1,228,781 $139,018 On-bill credit By Selecting a Community Solar with REC payments, City can gain over $139K in additional value Questions to ASK? • Do you have Government Customers that are receiving power through the Xcel program? -YES, Breckenridge, Summit County, Lakewood are examples. • Are you required to sign customers before you can get financing? -No, CEC's projects are fully funded prior to selling each array. We are financially solid, have major capital funding and are scheduled for developing solar in 25 states by the end of 2015. \ -· . \. ~ .. , . . · . · ©Copyright 2013 Cle~n Energy Collective® 29 Questions to ASK? • Do you have a signed lease or deed for the property that the array is built on? -YES, CEC has a fully executed lease with the Colorado Land Board. • Do you have a conditional use permit approved? -YES, CEC has a fully executed conditional use permit executed . .. , ·· · · · ·· · ·· ©·copyright 2013 Clean Energy Collective® 30 Questions to ASK? • Do you have an interconnection plan approved by Xcel Energy? -CEC has an approved plan with Xcel Energy. • How much of the on-bill credit produced by the array will come to the City? -ALL OF IT. CEC does not keep any of the on-bill credit, nor do we bill you back for any portion of the on-bill credit. ' . ~ ©Copyright 2013 ~lean .Ener~y Collective® 31 - Questions to ASK? • How much of the Renewable Energy Credit will come to the City? -ALL OF IT less $.02/kWh, which funds the Operations and Maintenance Trust Fund • Why don't you offer a "pay as you go" or Power Purchase Agreement? -Those agreements have been very popular in the past, but are falling out of favor because they deliver less value to the customer and secure most of the benefit for financial backers. CEC believes customers should keep the money with a purchase model. Questions to ASK? • How does the City know the array will be maintained and continue to produce at the levels claimed? -All funds in the O&M trust can only be spent to maintain this array. Money cannot be diverted to other projects, funding other arrays, or withheld from maintenance. The customer is protected from the array not being maintained. . . -. .. . , © Copyright 2013 Clean . Ene,rgy Collective® 33 Questions for the Competition? • Do you have an executed land lease, conditional use permit, transmission easements? If so please provide. • Do you have a letter of commitment for construction financing? If so please provide. • Do you have a signed contract with a solar contractor who will build the array? If so please provide. • Have you ordered the equipment? If so please provide bill of lading. • What Finance company will provide your SSA to the City? If so please provide proof of underwriting. • When will the array be on-line? • What will happen if you do not build the array? • What will happen if your company sells or goes out of business? • Who will take care of the array if you sell or go out of business? Advantages of CEC Solar • Lock in low energy costs for potentially up to 50 years • Keep the entire on-bill credit and receive a REC • Professionally maintained through separate 0 & M Trust, n commingled with CEC • Rebates, Discounts and Tax Credits are instantly included in purchase price • Experienced National Industry leader in community owned solar • TABOR Compliant Financing offer ZERO money down • Only CEC and Bella Solar have Xcel arrays built and producing • CEC has the most Xcel solar projects completed, start saving NOW Summary • The City of Wheat Ridge can begin saving money immediately with a CEC purchase. • By selecting a PPA the City is leaving money on the table instead of in their pocket. • CEC is the proven, solid leader in community- owned solar, just look at our track record and . experience. Next Steps • City of Wheat Ridge decides to save money and lock- in electrical savings with a CEC purchase. • 10% reservation deposit, to hold your position, 100% fully refundable while Council explores a CEC purchase, gains financing and reviews legal docs. • Balance due upon financing completion. • Immediately start saving money! Present to City Council If Proposal is Accepted 10% down Balance after agreement is s1gned • • • • • ~ • • .I • • • ,• • • • -•• ©Copyright 2013 Clean Energy Collective® 37 Contact Information Clean Energy COLLECTIVE 3005 Center Green Court, Suite 205 Boulder, CO 80304 800-646-0323 Fax: 970-692-2592 www.easycleanenergy.com Amy Thompson Director Commercial Sales 303-588-5725 amy .thompson@easycleanenergy .com · · ·. '· · · · © Copyright 2013 Clean Energy Collective® 38 l: ""' Dl n :r :1 • ~ ""' w ANALYSIS OF SOLAR GARDEN PROPOSALS FOR THE CITY OF WHEAT RIDGE: IDENTIFICATION OF RISKS AND OPPORTUNITIES November 3, 2014 LOTUS Engineering &t Sustainability ~~ .,. . City of :P'"Whe a t :Ri_dge Two Solar Garden Offers -Two Different Business Models powered by Clean Energy COLLECTIVE • City will own solar panels • Payment options include: a. One-time purchase b. $0 down financing • Savings include b i ll credits and RECs LOTUS Engineering&: Sustai nability • City wi l l own electrons • Payment options include: a. One-time pre-pay* b. $0 down solar services agreement (SSA) • Savings include bill credits *Although a term sheet was not provided by SunShare, this option could also be financed " City of JP"Whe at:Ri_dge Cost Savings Payback Values from Revised Proposals powered by Clean Energy COLLECTIVE Panels = 228.42 kW 6,950,907 kWh $776,628 $74,591 annually $1,571,802 8/9 years $1,118,870 total $1,229,560 N/A One -time Pre-pay $0 Down SSA Electrons = 208 kW 7,142,767 kWh $553,360 1 $45,0?0 in first $1,641,847 6/7 years year, Increases by 2.9% annually $1,134,533 total $1,062,672 N/A *CEC's financing based on proposal of 15 -yea r, 5.25% TABOR compliant agreement LOTUS Engineering &t Sustainability ~· City of JP"W heatRi_dge Models Have Lots in Common • Similar size and bill credit rates • Great environmental and financial benefits • Established O&M procedures • CEC -O&M is performed by O&M Trust • SunShare-O&M is performed by SunShare • Arrays are not/will not be located on City land • Projects will result in electricity savings compared to {/business as usua I" LOTUS Engineering & Sustainability .... City of JP"Whe atRi_dge Additional Benefits Unique to Each Model powered by Clean Energy C 0 L L E C T I V E. • Potential to receive additional sav i ngs after 20-year contract period • Solar garden is commercially operational • Savings from RECs LOTUS Engineering & Sustainability SUN [E • City only pays for electricity generated 11 pay as you go"* *Requires 20 -year contract ~· ~ . City of ?WheatR.!._dge No Program Performance is 100% Guaranteed • Year-to-year performance variability will be seen • Key factors are not guaranteed and will vary: a. Bill credit rates b. Electricity consumption c. Electricity generation d. Electricity rates • Variability results in some risk LO TUS Engin eering & Sustaina b ili ty ~· City o f _r Whe atRi_dge One of the Major Financial Risks is Bill Credit Rates • Bill credit rates vary annually and are not guaranteed • Bill credits (rate * production) are the savings stream; fluctuations in bill credits could impact savings and payback period • In addition to bill credits, under CEC's model, the City would receive income as RECs LOTUS Engineering &: S u stai nability --~ '~ City of JP'Whe atR!._dge Defining Boundaries of Risk Will Set Realistic Expectations for Financial Performance • We can set reasonable expectations for performance and prepare for variability • Reasonable expectations can be established using realistic and conservative assumptions to estimate boundaries of risk: • Best case (low likelihood) • Moderate case (more 11 realistic") • Worst case (very low likelihood) LOTUS Engineering &t Sustainability " 1 City of JP'WheatRt_,dge Boundaries of Financial Risk powered by Clean Energy COLLECTIVE One-time purchase Projected Total Cumulative Scenario Payback Period Savings Best-case scenario 8/9 years $1,571,802 Moderate scenario 8/9 years $999,784 ~Vorst-case scenario 12/13 years $258,784 $0 down financing Total Cumulative Scenario Savings Best-case scenario $1,229,565 Moderate scenario $657,547 Worst-case scenario ($83,453) *Reflects savings cumulated over a 20-year time period Note: please see final report for data assumptions LOTUS EnginHring &t Sustainability ~ One-time pre-pay Projected Total Cumulative Scenario Payback Period Savings Best-case scenario 6/7 years $1,649,584 Moderate scenario 7/8 years $1,074,555 Worst-case scenario 9/10 years $333,823 - $0 down SSA Total Cumulative Scenario Savings Best-case scenario $1,068,409 Moderate scenario $493,380 Worst-case scenario ($247,352) .. ~ City of ?WheatRi_dge Financial Reward Depends on Payment Structure • Upfront payment delivers higher potential for cumulative savings • 0% down models increase cost and reduce potential for cumulative savings • However, all models will yield significant savings compared to status quo LOTUS Engineering &t Sustainability ,. . City of ?WheatRi__dge Both Options will Result in Savings Compared to ''Business As Usual'' powered by Clean Energy COLLECTIVE For example, in Year 1: Without solar, City will pay Xcel est. ~so.26 per kWh With solar, est. net energy costs One-time Purchase $0 Down Financing $0.15 per kWh I $0.20 per kWh LOTUS Engineering &: So stainability For example, in Year 1: Without solar, City will pay Xcel est. IV$0.28 per kWh With solar, est. net energy costs One-time Pre-pay $0 Down SSA $0.17 per kWh II $0.21 per kWh ~ ... · · '~ . City of .P'Whe at:Ri_dge In Closing • Solar gardens are a GREAT option for the City • There are a lot of benefits • The City can prepare for the risks using the right assumptions and establishing reasonable expectations • There is no wrong choice; the best option for the City may be a function of the most appropriate business model LOTUS Engineering & Sustainability ~--# . c ·ty f -, I 0 ?WheatRi._dge Q&A and Contact Information Emily Artale Principal Lotus Engineering and Sustainability www.l otussusta ina b i I ity.co m emily. a rta I e@ lotussusta ina b i I ity.co m 303.709.9948 LOTUS Engineering & Sust.ainability ... ·-' c ·ty f ~ # I 0 JP'WheatR.l._dge ~~~~ ... ~ ., City of • .. ~WheatN_,dge ~OFFICE OF THE 01Y MANAGER Memorandum FROM: Mayor and City Council Patrick Goff, City Manager ~ TO: DATE: October 27 ,2014 SUBJECT: Renewal Wheat Ridge IGA ISSUE: An Intergovernmental Agreement (IGA) entered into between the City and Renewal Wheat Ridge (RWR), in order to establish the rights and responsibilities of the City and RWR with respect to (1) operational assistance and (2) the sales tax increment applicable to the Wheat Ridge Town Center, expires on December 31 , 2014 . Attached is a draft IGA to amend and extend this Agreement to December 31 , 2019 . Background: The City adopted the Wheat Ridge Town Center Urban Renewal Plan on December 14 , 1981 , which provided for the utilization of propert~ and sales tax increment in the commercial area east of Wadsworth Boulevard , between West 38 1 Avenue and West 441h Avenue. The increment was used for the construction of public improvements required for the Town Center redevelopment project. The property tax increment expired in 2006 , after 25 years . Through an Intergovernmental Agreement (IGA) between the City and Renewal Wheat Ridge (RWR) signed on June 26 , 2006 , an extension of the sharing of the sales tax increment was approved . The IGA stipulated that 50% of the sales tax increment, not to exceed $100,000 in any fiscal year, would be shared with RWR to and including December 31 , 2008. An amendment to the IGA in October 2007 removed the $1 00,000 annual cap and extended the agreement to December 31 , 2014. In September, 2011 the City Council approved an increase in the sales tax increment share back from 50% to I 00%. Draft IGA: The attached draft IGA establishes the following elements for the future relationship between the City and the Authority: 1. RWR funding will no longer be tied to the incremental sales tax from the Town Center project. Funding will be provided by the City to R WR for the purposes of urban renewal activities in the amount of $300 ,000 annually. A decrease of approximately $150 ,000. 2. Reimbursement of salaries , rents and costs incurred by the City in providing employees , insurance, equipment, facilities , services and supplies will no longer be required by RWR. 3. The tenn of the Agreement shall commence on January 1, 2105 and shall continue to and including December 31 , 2019. ATTACHMENT: l. Draft IGA Intergovernmental Agreement This Intergovernmental Agreement is entered into between the City of Wheat Ridge , Colorado (the "City") and the Wheat Ridge Urban Renewal Authority d/b/a Renewal Wheat Ridge (the "Authority") as of the __ day of , 2014 , together referred to as the "Parties .". In consideration of the mutual promises and covenants contained herein , the receipt and sufficiency of which are acknowledged , the Parties agree as follows : 1. Purpose of Agreement This Agreement is entered into in order to establish the rights and responsibilities of the City and the Authority with respect to: (1) operational assistance and (2) tho sales ta* increment applisaslo to tho Wheat Rielgo Tm4n Contor.funding . 2. Operational Assistance WRURAIG A A. Employees 1. Executive Director. The City Manager has retained or shall retain a Director of Community Development and /or an Dirostar of Economic Development Manager and the Authority has retained said person as the Executive Director of the Authority . When the E*OGl:Jtiva Dirostar of the A~:~tharity is also an employee of the City , he/she shall maintain resarels of his/her time spent an an ha~:~rly sasis when serving as e)(OGl:Jtivo Dirostar. The A~:~tharity shall so rospansisle for anel pay the City f<>r s~:~sh time O)(peneloel an A~:~thority matters relateel to the elovolapmont astivities , saseel ~:~pon his/her salary anel fringe sonofits . 2 . Authority Employees . The Authority has and may continue to retain the professional services of other staff, consultants , advisors , experts and legal counsel as necessary and in accordance with the Urban Renewal Law . 3. City Employees. Upon request of the Director of the Authority , and subject to approval of the City Manager or his designee , City employees may be assigned to work for the Authority. Such approval of the Manager shall include the right to limit or to withhold assignment of City employees to work for the Authority if, in judgment of the City Manager, the assignment of such employee(s) to work for the Authority is impairing the employee(s)' ability to complete his/her City duties . While performing services for the Authority , such City employees shall coordinate their services with the Director. Attachment 1 4. ER'IployR'Iont Records. While serving as eR'Iployees for or providing services to the 1\~thority , records shall be R'laintainod of s~ch City eR'Iployees ' work , tiR'Ie and services. The e*penses of s~ch services attrib~table to the 1\~thority shall be billed to the 1\~thority by the City . B. Personnel Actions Related to Employees 1. Notwithstanding Section 2. A .1, the selection , termination and other personnel actions related to any person performing the functions of the Executive Director of the Authority , who is not a City employee , shall be made by the Board of Commissioners of the Authority . The Board of Commissioners of the Authority agrees to consult with the City Manager prior to the retention of an Executive Director regarding methods and areas of cooperation between the Authority and the City relating to duties of the Executive Director vis-a-vis contemporaneous City duties , if any , and utilization of other City employees . 2 . The selection , description of duties and services , termination and other personnel actions related to all other employees , consultants , experts , attorneys and advisors of the Authority shall be made by the Authority's Board of Commissioners . 3 . Personnel actions relating to City employees shall in no manner be affected by this Agreement. In the event of any personnel action relating to any City employee while working under the terms and provisions of this Agreement , such action shall be subject to the City's personnel rules and regulations . C. Salaries and Procedures 1. The salary of the Executive Director of the Authority shall be established by the Board of Commissioners of the Authority; provided , however, in the event the Executive Director hired by the Authority is also a City employee , the Authority agrees that his/her total salary shall be in accordance with the salary set by the City for the Director's position with the City ; and the portion thereof attributable to the Authority shall be allocated and paid as provided in this Agreement. 2 . The salaries/fees of all other employees , consultants , experts , attorneys and advisors of the Authority shall be established by the Board of Commissioners of the Authority . Any Authority employee 2 may be included in benefit programs available to City employees and the Authority shall pay for the costs thereof. D. Other Serv ices 1. The City may provide the Authority with such other services as may be required in order to perform its urban renewal functions including , but not limited to , accounting , financial and budget management , planning services and engineering services ; provided , however, that nothing herein shall be construed as prohibiting the Authority from contracting with or retaining third parties to provide all or a portion of any serv ices . Resords of all Ol<J3enses and salaries relatee ~ Ia s~sf':l City servises shall 9e maintained , and the A~thority s{tall 9e 9ille ~ by the City and 13ay the City therefore . 2. Annual or any special financial audits shall be performed by the City 's independent auditor. All costs of any such audit or financial services shall by billed to and paid by the Authority . E. Office Space ; Furnishings 1. The City may make available appropriate office space and office equipment to the Authority. All furnishings , equipment and supplies for the Authority may be acquired by the Authority or rented from the City . All furnishings and equipment loaned or rented to the Authority by the City shall be billed to and pa id by the Authority and remain the property of the City . All furnishings and equipment acquired by the Authority shall become the property of the City upon the dissolution of the Authority . F. Operations Integration 1. City Codes. The Authority shall comply with applicable City ordinances , codes , rules and regulations related to the development and /or redevelopment of the urban renewal areas , except as provided otherwise in the urban renewal plans and the Colorado Urban Renewal Law . 2 . Reports to Council. The City Council shall be informed of the activities , functions , operations , legal processes and financial/budgetary administration and condition of the Authority on a periodic basis and as requested by Council. 3. Meetings. The Board of Commiss ioners and City Council shall meet at the request of the Council to communicate and coordinate 3 activities , functions and share ideas and actions related to carrying out urban renewal and /or redevelopment projects . 4. Powers of Authority . The parties acknowledge and agree that the Board of Commissioners shall exercise all powers provided in the Urban Renewal Law and as provided in the urban renewal (redevelopment) plans adopted by Council. G . Insurance 1. Tho At:Jthority shall pay for its owR pt:Je~c liability iRst:JraRco aRd other iRst:JraRce reqt:JiromeRts ; pft>vided . hmvever, that tT he City and the Authority agree to include the Authority as an additional separate insured within the existing liability, insurance coverages as a part of the services to be provided by the City to the Authority under the terms and provisions of this Agreement. 1-1 . Reimet:JrsemeRt of City 1. The At:Jthority shall reimet:Jrse the City for salaries , reRts aRd costs iRCI:JFFOd ey tho City iR pFO'IidiRg employees , iRSI:JFaRce , oqt:JipmeRt , facilities , services aRd st:Jpplios as provided horoiR . Tho City shall file iR'IOicos with the At:Jthority each qt:Jartor for employees , facilities , oqt:JipmoRt aRd services roRdorod dt:JriRg the immediately precediRg qt:Jartor, iRclt:JdiRg thoreiR all costs of previdiRg same . St:Jch iRvoices shall ee iR st:JfficieRt detail aRd iRclt:Jde all costs iRct:Jrred ey the City aRd shall st:JfficieRtly desigRate tho types Of services performed OF pro .. •ided By tho City so that the At:Jthority might properly determiRe the ft:JRds to which costs are eeiRg charged. UpoR approval of st:Jch iRvoicos ey tho CommissioRors , tho At:Jthority shall make arraRgomoRts 'Nith the City to pay said iR'IOicos . It is tho iRtoRt of tho parties that tho oMpoRsos eo paid to the City at the earliest practicaelo time ; hOWOVOF , tho parties agree that this OBiigatiOR Of tho At:Jthority shall Rot impair the ability of the At:Jthority to oetaiR deet fiRaRCiRg , if Recessary . Therefore , the fiRaRcial oeligatiOR ereated heret:JRder shall ee st:JeordiRated to aRy fiRaRcial oeligatiORS , BORdS , ROles OF other deet fiRaRCiRg iSSt:Jed by the At:Jthority . Tho total ft:JRds dt:Je tho City ey tho At:Jthority as provided horoiR shall soar iRtorost at a rate agreed t:JpoR ey tho City aRd the At:Jthority . It is the iRteRt of tho parties that the said priRcipal aRd iRtorost shall eo paid iR ft:JII ey the At:Jthority to tho City from ft:JRds available to tho At:Jthority , iRclt:JdiRg et:Jt Rot limited to , sales aRd property taM iRcremeRtal fuRds . 4 3. VVhoat Ridge Town Center Sales TaK lncrornontFunding The City will provide to the Authority $300.000 on an annual basis for the- Authority to perform its urban renewal functions. The funding will be provided to the Authority in one payment in the month of January. A. Sales TaK lncrernent Defined 1. The City irnposes a sales taK of d% on retail sales within the City. The City has adopted tho 'Nhoat Ridge Town Center Urban Renewal Plan which was arnendod in 2000 , which provides for ~:.~tiliz:ation of a sales taK incrornent in tho cornrnercial area east of Wads•.vorth Bo~:.~lovard known as the "Town Center Project". Sales taKes collected on retail sales within the Town Center Project Area, as arnended and as shoo.vn in EKhibit 1, are s~:.~bject to an allocation forrnula whereby a portion of such sales taKes in eKcess of a defined base represents the "incrernent," or increased sales taK reven~:.~e , attrib~:.~tabl ~to new retail activity within the Town Center Project. This incrof\IOF\t is shared with tho A~:.~thority pursuant to intergo•;ernrnental tl9!eornont between tho Authority and the City . The CHy 's "base " for calculating the incrornent was established in January 1981 at $628 ,dd0. B. Town Center Urban Renewal Plan Arnendrnent 1. In 2000 , tho City Council adopted an arnendrnent to the Town Center Urban Renewa' Plan whish rerneved the "northern half' of the urban renewal area frorn ~:.~rban renewal designation . The deleted area was subsequently incl~:.~dod in the 'JVadsworth Boulevard Corridor Redoveloprnent Plan . C. Sales TaK lncrornent Allocation The Parties agree that the Town Center Project sales taK incrernent , as defined at Section d .A hereof, shall be allocated between thorn as follows : 1. F"or all sales after January 1, 2006 irrespective of act~:.~ a I sales tax receipts , the City shall retain an arnount oq~:.~al to the sales tax receipts attributable to the Safeway store for the period f>lovernber 1, 1 QQ4 thro~:.~gh October d1 , 1 QQ§. 2 . After accounting for this retainage , the A~:.~thority shall receive 100% of tho sales taK incrernent frorn tho Wheat Ridge Town Center Project. 5 -{ Formatted: Indent: Left : 0.69 " a. On or before clune 27 , 2009 , the City shall make a one time payment to tho Authority in tho amount of $100 ,000 , to assount for outstanding obligations of tho Authority and in sonsidoration of tho mutual rovosation of tho previous agreements related to allosation of tho sales tal< insremont. 4. Tho sales tal< insromont for tho Wheat Ridge Town Center is hereby ol<tondod to and insluding Dosombor 31 , 2014. D . Ratifisation of Prior Astions City and the Authority eash '}ofeby ratify all -prior astions taken by the othe r in relianse on -prior intergovernQlOntal agreements bot>.voon them . 4 . City and Authority Separate Nothing in this Agreement shall be interpreted in any manner as constituting the City or its officials , representatives , consultants or employees as the agents or employees of the Authority , or the Authority or its officials , representatives , consultants or employees as the agents or employees of the City. Each entity shall remain separate , subject to the cooperation and coordination of each entity's respective duties and powers with regard to urban renewal (redevelopment) activities . Neither party shall hereby assume the debts , obligations or liabilities of the other . The Authority shall be responsible for carrying out the duties and functions in accordance with the Colorado Urban Renewal Law , the urban renewal plans and other applicable laws and regulations . 5. Effect on Prior Agreements All existing /prior cooperation agreements and/or intergovernmental agreements between the City and the Authority are hereby rescinded . The terms of this Agreement shall control the relationship between and activities of the City and the Authority . 6 . Term ffiaOOR This Agreement may be terminated by the mutual sonsent of the parties at any time after giving at least (30) days written notise of intention to so terminate ; provided , however, termination of this Agreement shall not release the Authority from its obligation to pay the funds duo tho City as provided hero in , unless sush obligation is sposifisally terminated by tho City.The term of th is Agreement shall commence on January 1. 2015 and shall continue in 6 full force and effect for a period of 60 months to and including December 31. 2019 unless either party provides 60 days prior written notice of termination . 7 . No Debt Nothing herein shall be construed as constituting any multi-year fiscal obligation within the meaning of Article X , Section 20 of the Colorado Constitution , it being the intention of the parties that all fiscal obligations herein be subject to annual appropriation. 8 . Further Assurances The Parties agree to take such further acts as necessary to implement the provisions of this Agreement. The Parties agree to take such further acts as necessary to implement the provisions of this Agreement. IN WITNESS WHEREOF , the Parties have executed th is Agreement as of the date first set forth above . WHEAT RIDGE URBAN RENEWAL AUTHORITY By : ____ ~C~h-a-ir ______________________ ___ STATE OF COLORADO ss . County of Jefferson The foregoing instrument wa s acknowledged before me th is __ day of _____ , 2014 by , as of the Wheat Ridge Urban Renewal Authority . Notary Public My Commission expires : ------------------------- 7 CITY OF WHEAT RIDGE , COLORADO By: ________________________ __ Joyce Jay , Mayor ATTEST: APPROVED AS TO FORM : Janelle Shaver, City Clerk Gerald E. Dahl, City Attorney STATE OF COLORADO ss . County of Jefferson The foregoing instrument was acknowledged before me this __ day of --:-:--:-::----=-:--:-' 2014 by Joyce Jay as Mayor and Janelle Shaver as City Clerk of the City of Wheat Ridge, Colorado . Witness my hand and official seal. My Commission expires : ---='--7-~--------------- Notary Public 8