DATE: April 29, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Andrew Orr, Principal Planner
SUBJECT:
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Consideration of Reassignment Of Contract 2013-0137 With Energy Source Partners To TA Solar Project Co 12, LLC Regarding The Approved 1 Megawatt Solar Array (05/12/15 WS).
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Purpose
The purpose of this memorandum is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the reassignment of Contract 2013-0137 regarding the approved 1 Megawatt solar project at the wastewater treatment plant.
Background
Contract 2013-0137 was approved December 12, 2013 by BOMA, which authorized the installation of a second solar array at the City's wastewater treatment facility located at 135 Claude Yates Drive. Currently, the project has the necessary TVA and City approvals to begin construction.
Energy Source Partners is now requesting the reassignment of the approved contract to TA Solar ProjectCo 12, LLC, a special purpose entity. The intent of this change is to capitalize on the 30% Federal Investment Tax Credit. If approved by BOMA, Energy Source Partners would still oversee the design, construction, and maintenance of the system. Energy Source Partners requests the addendum be executed upon completion of the project, which is estimated to occur late fall 2015.
Financial Impact
No outlay of City funds is required, but approval of this change makes a positive financial impact since the City receives 10% of revenue until system is paid off and 80% thereafter.
Recommendation
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Staff recommends approval.