AGENDA MEMORANDUM

 

 

Meeting Date:           May 10, 2010

 

From:                          Paul Kalv, Electric Director

 

Subject:                      Resolution Authorizing Assistance Agreement with the U.S. Department of Energy for a Smart Grid Investment Grant

 

Staff Recommendation:

Staff recommends approval of the Assistance Agreement with the U.S. Department of Energy (DOE) for a Smart Grid Investment Grant (SGIG) for a total project amount of $19,497,625.00 with a U.S. Government Share of $9,748,812.00 and a Leesburg Cost Share of $9,748,813.00.  Project implementation shall not exceed thirty-six months.  The period of performance for data collection and reporting activities will be from May 10, 2010 through May 9, 2015.

 

Analysis:

On July 27, 2009, following a presentation by staff regarding the proposed projects to be included in the grant application,  the City Commission adopted Resolution 8496 authorizing staff to proceed with the Smart Grid Investment Grant application, approved the projects selected for inclusion in the ARRA grant application, and certified by acceptance of an award that the infrastructure investment has received full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars.

 

On August 6, 2009, staff submitted the Leesburg application to DOE as 1 of 431 applications submitted.  Leesburg’s application was reviewed by a panel of three industry experts and was one of one hundred applications favorably considered for funding by DOE.  Additionally, Smart Grid Today asked Kurt Yeager, former President of the Electric Power Research Institute to review the one hundred projects selected by DOE and identify the best and most significant projects.  Leesburg’s project was selected as one of the fewer than 20 best projects and Mr. Yeager later wrote in a letter to Leesburg staff dated February 11, 2010, “…your project is one of the most valuable in terms of demonstrating the benefits of the smart grid transformation for the most important stakeholders – communities and their citizens.  Your success is essential to achieving a sustainable economic, environmental and energy future for your community and our nation.”

 

Staff is currently preparing a Request for Proposal (RFP) for Phase 1 of the Smart Grid Project.  The RFP for Phase 1 will include: to retain a project management organization, purchase and install the meter data management system, two way wireless communications network, smart meters, In-Home Devices, load management software and other elements required to empower Leesburg electric consumers, reward energy efficiency and conservation, and work as energy partners to reduce Leesburg’s wholesale power supply costs and gain the operational efficiencies that the new technology will offer.

 

Options:

1.  Approve the Agreement with the U. S. Department of Energy as presented; or,

2.  Such alternative action as the Commission may deem appropriate

 

Fiscal Impact: 

Since Leesburg’s share of the total project cost is $9,748,813.00 it will be necessary to issue additional debt of up to $20 million in the form of a Grant Anticipation Note (GAN).  Of the $20 million the proposed agreement will repay approximately $9,748,812.00.

 

Submission Date and Time:    5/10/2010 5:05 PM____

 

Department: __Electric Dept___________

Prepared by:  __Paul Kalv_____________                     

Attachments:         Yes____   No ______

Advertised:   ____Not Required ______                     

Dates:   __________________________                     

Attorney Review :       Yes___  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head _Paul Kalv

 

Finance  Dept. _______JB_________                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _041-00000-331-xxxx_

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________

 

 

 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN ASSISTANCE AGREEMENT WITH U.S. DEPARTMENT OF ENERGY FOR THE SMART GRID INVESTMENT PROJECT AWARD NO. DE-OE-0000236; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute an agreement  with the Office of HQ PS (HQ), U.S. Department of Energy, Office of Headquarters Procurement, whose address is MA-64, 1000 Independence Ave., S.W., Washington, DC 20585 for the Smart Grid Investment project.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 10th day of May 2010.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk