Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Agreements with Sundial Solar and DSD Renewables for purchase of renewable electricity (RCA-2022-00239)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Policy & Government Oversight Committee | March 7, 2022 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Action | Contract/Agreement | Amending Council Action 2021A-0708, passed Sep. 10, 2021, to authorize an agreement with Sundial Solar and DSD Renewables for the annual purchase of up to 5.1 million kWh of renewable electricity generated from DSD Renewables-owned solar arrays placed on roofs or other suitable areas of City-owned or leased facilities. |
| 2 | Action | Contract/Agreement | Authorizing City staff to execute all necessary documents and agreements to implement the previously awarded Sundial Solar project, including but not limited to Power Purchase Agreements, Leases, and Memorandum of Understanding. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | All Wards |
Background Analysis
The request of action #1 is to clarify aspects of the Sundial Solar RFP response (RFP2020-54) in relation to the previous council action's wording.
a) It is understood that the 5.1 million kWh of delivered renewable electricity was contingent on all identified facilities in the Sundial Solar RFP response being fully able to accommodate the proposed size of solar arrays. Sundial Solar and the City of Minneapolis intend to achieve as close as possible to the 5.1 million kWh; however, the final amount of annual kWh delivered will be determined after all site vetting is completed. The wording has been changed to "up to 5.1 million kWh" as this amount has yet to be determined and is subject to deviation.
b) In Sundial Solar's RFP response, they indicated that they would be using finance partner DSD Renewables. Sundial Solar will develop and build the arrays while DSD Renewables will be the owner of the arrays and the City of Minneapolis will make payments to DSD Renewables during the term of the PPA. The wording change clarifies who is the owner of the arrays during the PPA term.
c) The vast majority of solar arrays will be built on the roof's on City facilities; however, the Water Department is pursuing participation in this portfolio via a ground mount array at the Columbia Heights campus, hence the wording change to roofs or other suitable areas.
d) The City leases spaces and one of the possible building sites is the Hamilton School, which the City currently leases. The word change is requested to accommodate leased sites as possible sites for solar array placement.
The request of action #2 is to allow proper City officials to execute all documents or agreements that are developed and/or needed as part of implementing this Solar project. Since project award, staff from the Department of Property Services has been working with the City Attorney’s Office, Sundial Solar, and DSD Renewables to work through the necessary milestones to bring the portfolio of solar arrays online. Some of our collective activities have included:
- Vetting and refining the size and locations of solar array placement based upon factors, such as available roof space, age and condition of roof, structural concerns, electrical infrastructure, and operational challenges
- Developing Power Purchase Agreements (PPAs), Lease Agreements, and Memorandum of Understanding (MOU).
This project will require multiple documents be executed per solar array site and granting this authorization will allow the overall project to continue forward in a timely manner.