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HomeMy WebLinkAboutCAP072811Central Point City Hall 664-3321 Ciry Council Mayor Hank Williams Ward I Bruce Dingier Ward II Belly Geiger Ward III Ellie George Ward IV Allen Broderick At Large Carol Fischer Isay Harrison Administration Phil Messina, Ciry Manager Chris Clayton, Assistant CitS~ Manager Deanna Casey, Ciry Recorder Community Development Department Tom Humphrey, Director Finance Department Bev Adams, Director Human Resources Barb Robson, Director Parks and Public Works Department Matt Samitore, Director Jennifer Boardman, Manager Police Department Jon Zeliff, Chief CITY OF CENTRAL POINT City Council Meeting Agenda July 28, 2011 Next Res. 1310 Next Ord. No. 1953 L REGULAR MEETING CALLED TO ORDER - 7:00 P.M. IL PLEDGE OF ALLEGIANCE III. ROLL CALL IV. PUBLIC APPEARANCES V. CONSENT AGENDA Pg 2 - 6 A. Approval of June 23, 2011 City Council Minutes 7 B. Approval of July, 2011 Surplus Items VI. ITEMS REMOVED FROM CONSENT AGENDA VII. BUSINESS Pg 9 - 37 A. Proposed 3MG Water Reservoir Solar Array Project (Clayton) 39 - 45 B. Medford. Water Commission Contract (Samitore) C Approval of General Services Union Agreement - Tentative (Robson) VIII. MAYOR'S REPORT LY. CITY ADMINISTRATOR' S REPORT Y. COUNCIL REPORTS YI. DEPARTMENT REPORTS YII. EYECUTIVE SESSION The City Council may adjourn to executive session under the provisions of ORS 192.660(2)(d) Labor Negotiations. Under the provisions of the Oregon Public Meetings Law, the proceedings of an executive session are not for publication or broadcast. VIII. ADJOURNMENT Consent Agenda To Agenda CITY OF CENTRAL POINT City Council Meeting Minutes June 23, 2011 REGULAR MEETING CALLED TO ORDER Mayor Williams called the meeting to order at 7:00 p.m. II. PLEDGE OF ALLEGIANCE III. ROLL CALL: Mayor: Hank Williams Council Members: Allen Broderick, Bruce Dingler, Carol Fischer, Kelly Geiger, Kay Harrison, and Ellie George were present. City Manager Phil Messina; City Attorney Paul Nolte; Police Chief Jon Zeliff; Community Development Director Tom Humphrey; Parks and Public Works Director Matt Samitore; Assistant City Manager Chris Clayton; and City Recorder Deanna Casey were also present. IV. PUBLIC APPEARANCES Fire Chief Dan Peterson presented a worksheet of their strategic plan. This captures what they are trying to accomplish over the next year. He shared the organizations values and visions for the next year. He presented a map of their service area and stated that they would like to decrease the call times for the Central Point area. The district plans to add at least one employee per shift for the Central Point area to help improve the response times. V. CONSENT AGENDA A. Approval of June 9, 2011, City Council Minutes B. Approval of Street Closure for 4t" of July Parade C. Approval of OLCC Application -Purple Parrot D. Approval of Street Closure for Battle of the Bones June 25, and 26, 2011 Carol Fischer noted that the memo regarding Purple Parrot has a different spelling for the manager names. She would like to make sure the back ground was conducted on the correct people. City Recorder Deanna Casey stated that she will talk to the Police Department and make sure before returning the application. Kay Harrison made a motion to approve the consent agenda with the recommendation for the OLCC Application. Allen Broderick seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Ellie George, yes. Motion approved. CAP072811 Page 2 VI. ITEMS REMOVED FROM CONSENT AGENDA -None VII. PUBLIC HEARINGS, ORDINANCES AND RESOLUTIONS A. Resolution No. 1305, A Resolution Extending the City of Central Point's Workers Compensation Coverage to Volunteers of the City of Central Point Human Resource Director Barb Robson explained that this is an annual housekeeping item. The city relies on the services of volunteers to complement staff efforts in a variety of capacities. The VIPS volunteers alone provide over 8,000 hours to the city, parents volunteer for Kidventure activities; along with Council and Committee members who volunteer for city events. This resolution states that if a volunteer is injured while helping at a city event or during service to the city they will be covered under our worker's compensation coverage plan. Allen Broderick made a motion to approve Resolution No. 1305, A Resolution Extending the City of Central Point's Workers Compensation Coverage to Volunteers of the City of Central Point. Kay Harrison seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Ellie George, yes. Motion approved. B. Resolution No. 1306, A Resolution to Approve a Supplemental Budget for the 2010/2011 Fiscal Year Finance Director Bev Adams stated that the High Tech Crime Unit received an unanticipated donation from the city of Roseburg. This donation of $2,500 is to be used for the purchase of equipment for the HTCU. The second item is a reclassification within the Capital Improvement Fund and does not increase or decrease appropriations. This reclassification of $46,000 for debt service needs to be transferred out of the "Developer Obligation" line item and into the "Transfer Out" expense line item. This will provide payment on the Don Jones Park debt service as originally intended during the budget process. Kay Harrison made a motion to approve Resolution No. 1306, A Resolution to Approve a Supplemental Budget for the 2010/2011 Fiscal Year. Kelly Geiger seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Ellie George, yes. Motion approved. C. Resolution No. 1307, A Resolution Certifying the Provisions of Municipal Services by the City of Central Point Mrs. Adams stated that this resolution is required by state in order for the City to receive cigarette, liquor and highway tax revenue. The resolution states that we CAP072811 Page 3 provide Police, Street, Storm Drain, Planning and Water services to our Citizens. We plan to receive $1,127,500 from these resources in fiscal year 2011/12. Allen Broderick made a motion to approve Resolution No. 1307, A Resolution Certifying the Provisions of Municipal Services by the City of Central Point. Carol Fischer seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Ellie George, yes. Motion approved. D. Resolution No. 1308, A Resolution Electing to Receive State Revenue Sharing Funds for Fiscal Year 2011-2012 Mrs. Adams stated that receipt of State Revenue Sharing funds requires cities to pass a resolution certifying that citizens have had adequate time to review and comment on the proposed budget. Central Point published notices prior to the Budget Committee Meetings. This meeting is a publish hearing allowing the opportunity to provide written or oral comment. Mayor Williams opened and closed the public hearing. No one came forward. Kelly Geiger made a motion to approve Resolution No. 1308, A Resolution Electing to Receive State Revenue Sharing Funds for Fiscal Year 2011- 2012. Carol Fischer seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Ellie George, yes. Motion approved. E. Resolution No. 1309, A Resolution to Adopt the Budget, Make Appropriations and Levy Taxes for Fiscal Year July 1, 2011 to June 30, 2012 Mrs. Adams stated that this resolution adopts the budget, makes appropriations, and levy taxes for fiscal year 2011/12. The total budget to be appropriated is $29,701,285. The tax levy is for $4.47 per thousand of assessed value; with a total of $4,196,000 current taxes expected to be collected in the fiscal year. Allen Broderick made a motion to approve Resolution No. 1309, A Resolution to Adopt the Budget, Make Appropriations and Levy Taxes for Fiscal Year July 1, 2011 to June 30, 2012. Kay Harrison seconded. Roll call: Allen Broderick, yes, Bruce Dingler, yes; Kelly Geiger, yes; Carol Fischer, yes; Kay Harrison, yes; Hank Williams, yes; and Ellie George, yes. Motion approved. VIII. MAYOR'S REPORT Mayor Williams reported that he: • Attended the Medford Water Commission meeting. • Participated in two ribbon cuttings for Central Point businesses. • Attended the SOREDI annual dinner. IX. CITY MANAGER'S REPORT CAP072811 Page 4 City Manager Phil Messina reported that: • The July 14, Council meeting will be cancelled due to lack of agenda items. • There will be a Study Session on July 18, 2011 to discuss Twin Creeks Flood Mitigation and Backflow Prevention. • We have offered the IT Manager position to an applicant from Seattle. He will begin in August. • There will be an Executive Session this evening under ORS 192.660(2)(d) Labor Negotiations. X. COUNCIL REPORTS Council Members Allen Broderick and Kelly Geiger stated that they attended the Study Session. Council Member Kay Harrison stated that she attended the Study Session and the SOREDI Annual Dinner. Council Member Carol Fischer stated that she attended the Multicultural Committee meeting and the Study Session. Council Member Ellie George reported that she attended the Study Session and Development Commission meetings. She received a letter of concern regarding Don Jones Park crossing. Assistant City Manager Chris Clayton explained that we will be submitting for a speed reduction in August. The lights work well during the daylight hours and are what is allowed at this time. The Police Department and VIPS will continue to monitor the area. Council Member Bruce Dingier reported that he attended the Study Session and would like to start a Council President Report. He reminded the Council that they are representatives of the city and should always act accordingly. Council members should review the Council rules and refrain from interruptions and overextending their time during reports. XI. DEPARTMENT REPORTS Human Resource Director Barb Robson reported that: • IT interviews were completed on Monday and the panel overwhelmingly chose the same applicant. • She is working on Union contracts. • She is starting advertisement for a Police Reserve list. Police Captain Chuck Newell reported that: • The department is busy with special events including Battle of the Bones, 4t" of July and the Jackson County Fair. CAP072811 Page 5 • It is nice to have such dedicated staff here in Central Point. It is always nice to see so many employees involved in the planning process for special events. Everyone works together well and keeps things organized. Assistant City Manager Chris Clayton reported that: • He is working on two solar projects for Council consideration. • The city will be responsible for the flower baskets on the buildings downtown. Last year they were not watered regularly and several did not survive. XII. EXECUTIVE SESSION Allen Broderick moved to adjourn to executive session under ORS 192.660 (2)(d) Labor Negotiations. Kay Harrison seconded. The meeting was adjourned to Executive Session at 7:48 p.m. The Council returned to regular session at 8:25 p.m. XIII. ADJOURNMENT Bruce Dingier moved to adjourn, Ellie George seconded, all said "aye" and the Council Meeting was adjourned at 8:28 p.m. The foregoing minutes of the June 23, 2011, Council meeting were approved by the City Council at its meeting of July 28, 2011. Dated: Mayor Hank Williams ATTEST: City Recorder CAP072811 Page 6 Parks & Public Work Department ~r~r , . Matt Samitore, Director '~+~ 1 T ~......... ~~, ~ t To Agenda STAFF REPORT DATE: JULY 18, 2011 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: MATT SAMITORE, DIRECTOR SUBJECT: The City has reviewed excess inventory or equipment and vehicles that are no longer needed or used. SUMMARY: As part of an effort to keep quality and high performing equipment in the City fleet, Public Works staff is consistently analyzing the need for equipment. Additionally, with the budget changes where our automotive technician position has been eliminated, two of the three pieces of equipment were associated with that position. The items that need to be formally declared surplus are: 1. #3030 - 1996 F-250 pick up - 91,000 miles -was driven by fleet personnel that were eliminated in the 2011 Budget and vehicle is no longer needed. 2. #3153 - 2003 Jenny WLP30 -wash rack filter system. Is outdated and it has become increasingly harder to get replacement parts for. 3. #3198 - 2007 Bandit chipper -Model 95 chip box chipper. Chipper is only used for a week at a time and city can get near cost recovery for the equipment. City will instead use Bio-Mass One to dispose of smaller woody debris as needed. RECOMMENDED MOTION: Approve the surplus property list. CAP072811 Page 7 Business: Private-Solar Power Agreement CAP072811 Page 8 Administration Department Staff Report TO: FROM: AGENDA DATE: SUBJECT: Central Point City Council Administration Staff July 28th, 2011 Proposed 3MG Water Reservoir Solar Array Project To Agenda HISTORY: In 2009 The City of Central Point considered. the undertaking of a solar array on the south side of the Central Point Police Department facility. After consideration of initial capital construction costs, operational system maintenance requirements, and return-on-investment (R.O.L), the city council declined the project proposal on the basis of cost benefit. Since that time, a new opportunity for constnution of a solar array has arisen, with a considerably more favorable economic outlook. PROPOSAL: Sustainability is an important component of any City's future facility master planning. The construction of the new 3 million gallon water reservoir adjacent to Don Jones Park has presented a unique opportunity for the City to incorporate a sustainability component into the overall reservoir project. Working with a third party consultant/investor, Solar City, Staff has developed a proposal fora 79 kilowatt (kW) solar array which could be constnuted and placed on the roof structure of the new reservoir. Furthermore, with available incentives through the Oregon Department of Energy (ODOE) and the Energy Tnist of Oregon, the City world have the flexibility of purchasing power supplied by the new solar array at a discounted rate. Unlike the 2009 proposal, the City would be the immediate recipient of reduced cost energy, with the initial cost of constnution and ongoing system maintenance being borne entirely by the third party consultant/investor. Phil Messina, City Administrator Chris Clayton, Assistant City Administrator Deanna Casey, City Recorder Barb Robson, Human Resources Manager CAP072811 Page 9 lii essence, the City world be leasing a secure facility, the roof of the reservoir, to Solar City, for the placement and operation of the proposed array. After constnution of the proposed facility is completed, the City world purchase electricity at a fixed and discounted rate over the life of the Private Power Agreement (PPA) established between the City and Solar City. The specifics of the current proposal's cost-benefit analysis are contained in the attached Solar City/City of Central Point Proposal. FISCAL IMPACT: 1. Zero capital constnution costs for the City. 2. Zero operational maintenance costs for the City. 3. Potential savings for the City of Central Point over a 30-year period $273,206.00 (PPA metrics). 4. Required purchase of monthly energy produced by solar array (less than the cost/energy required. for pumping at new reservoir location). POSITIVE IMPACTS: 1. Environmental Impacts: As specifically described in the City Staff/Solar City proposal, the solar energy production would provide significant pollution reduction. 2. Financial Savings: Potential 30 year savings of $273,000 (PPA metrics). 3. Economic Development Impact: The promotion of sustainable development has been a long standing goal of Central Point's Community Development Department. Existing examples of smart and sustainable growth include Twin Creeks Development and. the Rogue Creameiy. If the City chooses to establish a sustainability project, it would further demonstrate our commitment to development of this nature. 4. Public Support: This project represents an opportunity to demonstrate the City's desire to complete projects that satisfy nnilti-dimensional community needs. More specifically, this project world contain environmental, infrastn~cture demand, financial, and economic development components. CAP072811 Page 10 STRATEGIC PLAN ADHERENCE: Goal 3- Continually update infrastructure plans. Strategies: a) Include pedestriciii aiid bic>>cle frieiidl>> options iii eve~~ plait, aiid retrof t existing streets aiid neighborhoods whenever possible; b) Cooperate with developers to plciii future heeds for schools aiid parks; c) Take advantage of all opportunities to use environ>7zentcilly friendly technology in city goveriiiiieiit aiid developiiieiit of stew or retrofitted infrastructure. RECOMMENDATION: Staff is recommending a City Council motion directing Staff to continue negotiating the terms of the attached. Private Power Agreement. Final execution of the contract would be approved in a future City Council consent agenda. ATTACHMENTS: 1. Attachment "A" -Solar City Project Proposal 2. Attachment "B" -Private Power Agreement (PPA) CAP072811 Page 11 ~` ~ ' ~. .. ., .._~ .,,,t~~~ ,, .. „„,:~ .,, ~. a~ ~:.. ~~, :. ~° ~ . CAP072811 Page 12 r Page 13 i ~ _ ease ~ 1 SoiarCity CONFIDENTIAL _ .. m„~Maw.M'^:Ywa-,.,^.~~..... .... ;, ~~~~, '4 .. ~~~. ~„ , ~ ~x v y" ~ ,,~° ~ ww'n'„ ..., .., w»»5"g ~ o n !~y~~ N1 r( i 1~,,'~( r 1 / i I )l f, i 1 Inl~~ ~ 1 u.'~gre.; ....... ~ a a ~ ~~ x ., , +e ~~ VS . ~ 1Cy ,~, d* `~ ~ 1~' ~ ill y~ . ~ ,. ~Nx.Ha. L w~ A ~~. ~ .. ,,. ~,. ~~~~ "grey M pY~. .,Y ~'\ ` ~oww.~z 'w»'°wa M' ` . ;l .~ l i 1f ~WnX+xr maw ~C,pq'i~va/~ ~ ~ ~gC .y ... . . 44~('~. Sl'.~• ZYQ" ~ ~`E `~~~ Cy` ill ~ 3 ~ 'i~ ~ l ~' -G"~ : ~d 'S iti ;~ , ( ~ . y k~ y \.~ 4~ . ~ 14 ~ ~ ~~ ~ "~L, ~Y y ~ r ~` j ~ ~ ~ < 'Si~'~ >V' ti ~ itt"~,u]~x"' ... ~ ~~v~ .,.. ~ ~. ^1t-f _. . ... _ k_ h .u~ . _ .,... 3~~~ ~ t .~ ......~1 .... ~ .~...1 .+3.~i)~.s Tualatin Valley Water District CAP072811 Page 14 ~ t .~ S9ide 3 1 SoiarCity CONFIDENTIAL . ., .. .~ ~ - _ ,~ - ~ F s'' ., w t ~` ' ~ r .~~ ~ „ , w ,., ~ ~.k ,R~t ~ .~ ~~' ".~ m ,: ~ ~~ ~ '~f ` '~ "~ ~ ' a „; ~ pw ~ ti ,. _ ~.....Y. ~~ q . ~ ~ ~ _-. `'... ~ "L y ' ~ f -j P ~, "~ ~ ~~ .. .. ' I - r L=BEC.I.I_]3 ~11S.L1' 'T"'>~.1 L1 ~' ~ i Ste' ~~ ~ ., I ~C' 'r , ~ i Y , ~ I~ ~ ~' . . ~ 1-1~ I -l i-1-~ ~ 1~ ° m W w ~ '~ , GEC=I:d= e9[-~~ , /~1 l I ( i ~ ~ T-l 1 ! S.]_, r ~ i TI f I J V ~ - ~ , ~ ~[~~ - [~ t i Inl _ ~' ~ ~ I ~ I ~~ "~" ~ ~ ~ . f _ . r ~ w,. ~ ` I~ ~" ~ ~ ~ ~~~~~~~ `.. yp~}~r ~y ~y ~ry ry~q y~^ 6 kr twd~1'', A;IMe E'r'S.#4Jd1 ~4f ~71W ~'^""-a ~, '~ CAP072811 Page 15 _ ~ ~ .~ ~;;d~ ~ 1 SoiarCity CONFIDENTIAL POWER PURCHASE AGREEMENT SUMMARY CAP072811 Central Point City Water Reservoir 137 W Vilas Rd, Central Point, OR 97502 System Size: 79.0 kW DC Estimated cost per kWh Estimated Utility Savings in Year 1 Annual Lease Escalation Rate Term (Years) Optional Buyout Insurance Provided by RECs Owned by Utility Escalation Rate Assumption $0.052 $1,258 2.5% 15 Fair Market Value SolarCity Finance Partner 5.0% Page 1 Page 16 Budgetary Proposal, pricing to be confirmed with engineering audit. Price valid until 07/11 /11 Prepay Up-Front Cost N/A Estimated Annual Savings ($ / % Costs) $1,258 / 5% Savings Over 15 Years w/o Buyout $49,830 15 Year NPV without Buyout (1) $26,519 Savings Over 30 Years with Buyout $273,206 30 Year NPV with Buyout ~'~ $62,047 Payback (Years) Immediate (1) Based on a 7.0% discount rate $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 F=-Without Solar ^ With Solar 1 2 3 4 5 6 7 8 9 Year121314151617181920 Central Point Citv Water Reservoir 137 W Vilas Rd, Central Point, OR 97502 System Size: 79.0 kW DC Analysis of Power Purchase Agreement Cash Flows With Buyout PPA CASH FLOWS WITH BUYOUT Budgetary Proposal, pricing to be confirmed with engineering audit. Price valid until 07/11/11 Model Assumptions Federal Tax Rate State Tax Rate Discount Rate Annual Reduction in kWh Produced PPA Escalation Rate I Power Purchase Agreement` ~ Utility Savingsx ~ Depreciation Savings Energy kWh PPA Tax FIT Rebate (Net Optional Pre-Tax Tax Fed Tax State Tax Year Increase Solar $/kWh produced Payments Impact of Tax) Buyout Savings Impact Savings Savings 1 $0.052 101,122 ($5,258) -- -- -- $6,516 -- 2 5.0 % $0.053 100,616 ($5,363) -- -- -- $6,842 -- 3 5.0% $0.055 100,111 ($5,469) -- -- -- $7,184 -- 4 5.0 % $0.056 99,605 ($5,578) -- -- -- $7,543 -- 5 5.0 % $0.057 99,099 ($5,688) -- -- -- $7,920 -- 6 5.0% $0.059 98,594 ($5,801) -- -- -- $8,316 -- 7 5.0% $0.060 98,088 ($5,915) -- -- -- $8,732 -- 8 5.0% $0.062 97,583 ($6,032) -- -- -- $9,169 -- 9 5.0% $0.063 97,077 ($6,150) -- -- -- $9,627 -- 10 5.0% $0.065 96,571 ($6,271) -- -- -- $10,108 -- 11 5.0% $0.067 96,066 ($6,395) -- -- -- $10,614 -- 12 5.0% $0.068 95,560 ($6,520) -- -- -- $11,145 -- 13 5.0% $0.070 95,055 ($6,848) -- -- -- $11,702 -- 14 5.0% $0.072 94,549 ($6,778) -- -- -- $12,287 -- 15 5.0% $0.073 94,043 ($6,910) -- -- ($68,933) $12,901 -- 18 5.0% -- 93,538 -- -- -- -- $13,548 -- 17 5.0% -- 93,032 -- -- -- -- $14,224 -- 18 5.0% -- 92,528 -- -- -- -- $14,935 -- 19 5.0% -- 92,021 -- -- -- -- $15,681 -- 20 5.0% -- 91,515 -- -- -- -- $18,488 -- 21 5.0% -- 91,010 -- -- -- -- $17,289 -- 22 5.0% -- 90,504 -- -- -- -- $18,153 -- 23 5.0% -- 89,998 -- -- -- -- $19,081 -- 24 5.0 % -- 89,493 -- -- -- -- $20,014 -- 25 5.0% -- 88,987 -- -- -- -- $21,015 -- 28 5.0 % 88,482 -- -- -- -- $22,085 -- 27 5.0% 87,978 -- -- -- -- $23,189 -- 28 5.0 % 87,470 -- -- -- -- $24,327 -- 29 5.0 % 88,985 -- -- -- -- $25,543 -- 30 5.0 % 88,459 --_ --_ 28 821 -- Total 90 775 _ _ 68 933 432 914 _ Note: All cash flows represent after-tax cas h flows. SolarCity ha s used good faith efforts to repr esent the availa ble tax incentives for solar energy Y our tax situation will impact your ability to benefit from these incentives. Please consult your tax advisor regarding y our specific tax situation. * Values are estimated -- -- 51.254 -- -- 51,479 -- -- S1.715 -- -- 51.965 -- -- 52.232 -- -- 52.516 -- -- $2817 -- -- 53.137 -- -- 53,477 -- -- 53.837 -- -- 54,219 -- -- 54.625 -- -- 55.054 -- -- 55.509 -- -- (562942) -- -- 513.546 -- -- S 14224 -- -- S 14.935 -- -- 515.641 -- -- S 16.466 -- -- 517.289 -- -- S 18.153 -- -- 519,061 -- -- 520.014 -- -- 521.015 -- -- 522.065 -- -- 523.169 -- -- 524.327 -- -- 525.543 -- -- 526.821 273 208 Present Value Discount present Val Factor 1.000 -- 0.935 $1,175 0.873 $1,292 0.816 $1,400 0.763 $1,499 0.713 $1,591 0.666 $1,676 0.623 $1,754 0.582 $1,826 0.544 $1,891 0.508 $1,951 0.475 $2,005 0.444 $2,053 0.415 $2,097 0.388 $2,137 0.362 ($22,813) 0.339 $4,589 0.317 $4,503 0.298 $4,419 0.277 $4,336 0.258 $4,255 0.242 $4,175 0.228 $4,097 0.211 $4,021 0.197 $3,946 0.184 $3,872 0.172 $3,800 0.181 $3,729 0.150 $3,659 0.141 $3,590 0.131 3 523 62 047 $1,258 $2,737 $4,451 $6,416 $8,649 $11,164 $13,981 $17,118 $20,595 $24,432 $28,651 $33,275 $38,330 $43,839 ($19,103) ($5,557) $8,687 $23,602 $39,283 $55,749 $73,037 $91,191 $110,252 $130,288 $151,280 $173,346 $198,514 $220,841 $248,385 273 208 0.0 0.0 7.0 0.5 20 Page 1 CAP072811 Page 17 Central Point City Water Reservoir 137 W Vitas Rd, Central Point, OR 97502 System Size: 79.0 kW DC CASH PURCHASE Budgetary Proposal, pricing to be confirmed with engineering audit. Price valid until 07/11/11 Federal Tax Rate State Tax Rate 0.0 Discount Rate 7.0 Annual Reduction in kWh Produced 0.5% Analysis of Cash Flows of PV System Purchased with Cash Energy kWh Install Fed Tax State Rebate Payment Savings on Utility Bill' Depr. Tax Savings O&M Present Value Year Fed Tax State Tax Tax Increase Produced Cost Credit/Grant Tax Credit Payment Bill Offset Federal State Inverter DF PV Impact Impact Impact - t~aaa,aaa~ ~ur,:s:su - -- 1 101,122 -- $180,000 -- - -- $6,516 - 2 5.0 % 100,616 -- -- -- - -- $6,842 - 3 5.0% 100,111 -- -- -- - -- $7,184 - 4 5.0% 99,605 -- -- - -- $7,543 - 5 5.0 % 99,099 -- -- - -- $7,920 - 6 5.0% 98,594 -- -- - -- $8,316 - 7 5.0 % 98,088 -- -- - -- $8,732 - 8 5.0% 97,583 -- -- - -- $9,169 - 9 5.0 % 97,077 -- -- - -- $9,627 - 10 5.0 % 96,571 -- -- - -- $10,108 - 11 5.0 % 96,066 -- -- - -- $10,614 - 12 5.0% 95,560 -- -- - -- $11,145 - 13 5.0% 95,055 -- -- - -- $11,702 - 14 5.0 % 94,549 -- -- - -- $12,287 - 15 5.0 % 94,043 -- -- - -- $12,901 - 16 5.0 % 93,538 -- -- - -- $13,546 - 17 5.0 % 93,032 -- -- - -- $14,224 - 18 5.0 % 92,526 -- -- - -- $14,935 - 19 5.0 % 92,021 -- -- - -- $15,681 - 20 5.0% 91,515 -- -- - -- $16,466 - 21 5.0% 91,010 -- -- - -- $17,289 - 22 5.0 % 90,504 -- -- - -- $18,153 - 23 5.0 % 89,998 -- -- - -- $19,061 - 24 5.0 % 89,493 -- -- - -- $20,014 - 25 5.0% 88,987 -- -- - -- $21,015 - 26 5.0 % 88,482 -- -- - -- $22,065 - 27 5.0 % 87,976 -- -- - -- $23,169 - 28 5.0 % 87,470 -- -- - -- $24,327 - 29 5.0 % 86,965 -- -- - -- $25,543 - 30 5.0 % 86,459 -- -- - -- $26,821 - Total 2.813.715 499 999 _ 180 000 87 330 _ _ 432 914 _ Note: All cash flows represent after-tax cash flows. SolarCity has used good faith efforts to represent the available tax incentives for solar energy Your tax situation will impact your ability to beneft front these incentives Please consult your tax advisor regarding your specifc situation. * Estimated (~41L.bb`f) 1.000 (y4l L,titi`J~) (y4l L,titi`J~) - -- - 51 Y,6.516 0.935 $174,314 ($226,154) - -- - 56812 0.873 $5,976 ($219,312) - -- - SZ 181 0.816 $5,864 ($212,128) - -- - 57.543 0.763 $5,755 ($204,585) - -- - S7 f)20 0.713 $5,647 ($196,665) - -- - 58,316 0.666 $5,541 ($188,348) - -- - SS 732 0.623 $5,438 ($179,616) - -- - 59.169 0.582 $5,336 ($170,448) - -- - 59.627 0.544 $5,236 ($160,821) - -- - 510.108 0.608 $5,139 ($160,712) - -- - 510.611 0.475 $5,043 ($140,098) - -- - SYL.115 0.444 $4,948 ($128,954) - -- - Sit .702 0.415 $4,856 ($117,252) - -- -512287 0.388 $4,765 ($104,965) - -- ($39,480) (526.579) 0.362 ($9,633) ($131,544) - -- - 513.516 0.339 $4,589 ($117,998) - -- - 514.221 0.317 $4,503 ($103,774) - -- - 511.935 0296 $4,419 ($88,840) - -- - 515.681 0277 $4,336 ($73,158) - -- - 516.166 0268 $4,266 ($68,893) - -- - 517.289 0242 $4,175 ($39,404) - -- - 51 Y,.153 0226 $4,097 ($21,250) - -- - S19.o6t 0211 $4,021 ($2,190) - -- - 520.014 0.197 $3,948 $17,824 - -- - 521.015 0.184 $3,872 $38,839 - -- - 522.065 0.172 $3,800 $60,905 - -- - 523.169 0.161 $3,729 $84,073 - -- - 521.327 0.150 $3,659 $108,400 - -- - 525.513 0.141 $3,590 $133,944 - -- - 526.821 0.131 $3,523 $160,764 _ _ 39 480 5160 761 117 932 Page 2 CAP072811 Page 18 a ~ ]~ o~ l f ;=a ~ ~ ~ ~ 'c ~ ~ '®,® ~f~f - ~~ "~.. ~ roam ,, ~ ~ ~ ~ _..~ .~ ~ _ __ • ~, N ~ ~, (~ ~ 1 v.a'su - ~~~~ ,,. ~1w eVWt»~aN pMw n. ~.~r M.rv c, 1 ~ ~%W .. ~..... ryrvnwwwmgypi~ ~. : M...'. .t -. .,~ __.__ _ , : t." w.: ~ .may n ... w mwx! V .., ~':, a __... ......_ _ __ . ~ ~ ,. ~~ o ~. :z r ;~'' v ~ ,. r .f. w . Ry ¢l~RR ..._ _ ... I „ ~ r ~ ~^ ` t ~ w ~ w._ ,_,, : . . ., . _ .. . : .. ,. _ , , ~ .., ~ ~ _ ~ __ "r . ~ . ,~ ..~. .. .. r,.,,,.... ,;, r ;,~~;~ ... .~,, > ,~ ...~~ ~. 7, ti CAP072811 ;; ~, Solar Consultation ~~ ~ .: ~ Project Estimate Final Proposal System Design i r f r i Installation i i i r ri Ongoing Monitoring r r i r i Page 21 ;;,,~F., . _b.+ ad ~ e/ ~ ® ~ d ' te® ~ 6S a I amO ® ~d. ~~~ ~a~ti i I ti CAP072811 Page 22 suae ~~ SaiarCity CONFIDENTIAL x w, " ,~ ~.. ,~,,w e 3 ~: nrx , r. ,.% ~" ~~ ~ * ~, ~ ,. ~,~ %i J';r ~„ ,,,, ,., ~. .. _. ., ~. ., ..,. a .rT""` ,. ., ,~ w .;, .., , . . . ~~ .~i ~~- ~ ~~ ~ , ~„ , ~" ~ .m ~~ ~; r w ,,, ~ .... ' ppµr ~, ~~,~ f ~„ ~ .,, r ~~~ ~ ~ J ~~ '•• ~ A .; •~ ~,.. ., :n N M ~ ~ ~ " ., .,. d ~"v~ n w Y ~ ii P K ~~. ~~ . ~ ~ ' ., , ~. . ~~., ~w ~ ' ~~ w ~'.~ ~+' N I .. ~ ~ :V~ ~ 2, A „.~ i w .~ ~ ... ... n y rC x un fi .., Y '^ ~ u n r m n s~mn e n. ~~ u.... . ~ ~~ ~~~~~ m~ ~,x~~~ h'~.n .. i ~~, nn ~ r n'." mmw.rw.rmr.~;w .,d'~,w.u ~~ .. .,~ ~ 1 F.... M ... , ~~~~ .xr W '~~ ~ ,.. ~". f ~ ~v~ tt'"" ~ r d~ m ~ ~ CJa~0~2811 ~`~ . ~:~ Page 23 Y' „. .~ rr ~,:~~ 6 ~~ ,..a ~. _. _. _~ ~ Central Point City Water Reservoir 137 W Vilas Rd, Central Point, OR 97502 System Size: 79.0 kW DC Over 30 years, your system will offset: 5,633,164 Ibs of C02 a leading cause of global climate change 9,338 Ibs of NOx a leading cause of smog 13,695 Ibs of S02 a leading cause of acid rain 720 Ibs of particulates a leading cause of asthma During year 1, your system will offset: 202,450 Ibs of C02 a leading cause of global climate change 336 Ibs of NOx a leading cause of smog 492 Ibs of S02 a leading cause of acid rain 26 Ibs of particulates a leading cause of asthma C4 CSLB #888104, OR CCB #180498, AZ ROC#243771 CAP072811 ENVIRONMENTAL BENEFITS Budgetary Proposal, pricing to be confirmed with engineering audit. Price valid until 07/11/11 5,633,164 Ibs of C02 is equivalent to the amount: 4 ~, .,~ .emitted by ;a;; driving 145,185 ~~~ ~ "cars 50 miles a ~: ~;,' . .:: day for 1 year. ,r~~ ; ...,. :x Page 3 Page 24 ATTACHMENT "B" Solar Power Purchase Agreement (Commercial OR) This Solar Power Purchase Agreement (this "Agreement") is entered into by the parties listed below (each a "Party" and collectively the "Parties") as of the date signed by Seller below (the "Effecti~-e Date"). Purchaser: Seller: Name and Address Central Point Cite Name and Address SolurCity Corporation 140 South Third Street ~~ ~~_~ Clearview Wav City of Central Point, OR 97>(_)2 S~u~ Mateo, CA 944(_)2 Attention: Chris Clayton, Assistant City f\ucnti~~n: Legal Department Manager Phone >41-F_,F,4-3321 Phone (6>0)i„~-1u~8 E-mail Chris.Clavton~u~oentralpointoregon.gov I~-mail Contraots~u~solarcitv.com Facility U~~nership Purchaser o~~ns the Facility Contractor's License Numbers OR: CCB 180498 Project Name Reservoir This Agreement sets forth the terms and conditions of the ~nu~ch~isc ~md salr ~~I~ s~~l~ir ~ cnerated electric energy from the solar panel system described in Exhibit 2 (the "System") and installed at the Purchaser"s facility described in Exhibit 3 (the "Facility"). The exhibits listed below are incorporated by reference and mu~lc ~xu~t ~~f this Agreement. Ezhitiit 1 PricingAttachnicn[ Ezhitiit 2 System De~~cri~~tic~n, Delnrn Point and License Area Ezhitiit 3 Memorandum ~~f Licen~~c Ezhitiit 4 Credit InG~rmation Exhibit > General ~Lcrnis and C~~nditions (RevzJ~ec1 Decertzl~er 11, ?009) Ezhitiit 6 Reserved Ezhitiit 7 I:cscr~ cd Purchaser: Ccnfral Point Cite SolarCity Corporation Signature: Signature: Printed Name: Chris Clavh~n Title: Assistant City Manager Date: Date: Soler Fower ~'~~~~~'¢~~lt i Commercial ~_~R i ~~ Q 1 ~ X413 i CE i ~~ Q 1-FFA Exhibit 1 Pricing Attachment 1. Term: Fifteen (15) years, beginning on the Commercial Operation Date. 2. Additional Terms: Up to three (3) Additional Terms of fire (>) years each. 3. En~-ironmental Incenti~-es and En~-ironment Attributes Accrue to Seller. ~. Contract Price: Contract Year $/1.Wh 1 $0.0>20 0.0>33 3 $0.0>46 4 $O.O~~n $t!! i~-~ 6 ~~ i,u>88 7 `~~ x.0603 x $t,.t,61x y lu ~;i, sir,-~~1 11 ~;~ i ~ ir,r,6 12 $U ur,x ~ O $U.Ur,')~) 14 ~F,,.U- ~ 1> Vii, i,-; Includes ACH invoicing. If manual invoicing is requircrl_ a ~~5 handling charge will he added to each invoice. 5. Condition Satisfaction Date: ~'xU days al~tcr the Effective Date 6. Anticipated Commercial Qperation Datr. ~"u ~la~ ~~ ~iftci`the Effective Date 7. Outside Commercial Operation Datc: 36> days after the Effective Date 8. Purchase Option End of Contract Year Option Price'` Buy ~~ut ^CYer year 6 $160,341.84 Buvout~iftcr ~r,ar lU $16x,652.x6 Buyout after ~r~ir 1~ Fair Market Value "Buyer shall base the right to purchase the System at the greater of the price set forth aboee and the then current fair market ealue. Soler Fower bR~~AI. RIfi~~~~¢~~rt Esliibitl i~'ommeroiel ~_~Ri ~~~11~~413 i~'El pa ~~~ 9. 111 ul~r Fuwer Termination Value: Contract Year Termination Value 1 2 $~44,>37.82 3 $532,97724 4 $442,~4~.39 5 ~3~4.9x2.x9 $28,185.32 7 $254,92U.U5 8 $233,7>.59 9 $212,4UU.75 10 $190,812.4 11 ~1~x.9x ~ ~+ 12 $14~ _'~ ~ ~ 76 13 $124.~r,v r, 14 X101,94>.~,~, 15 $79,U23.U2 Rebate Variance. All prices in this Agreement arr caloulaird hasr~l on an upfront rebate of $289,480. If the actual rebate is lo~~er than calculated, prices ~~ill he ad~u,tUil piu-rani to rcllcct the actual rebate recei~ eil. Exhibit 1 i Coiutuarmal ! ~R i ~! Q 1! X413 i CEl Exhibit 2 System Description, Deli~-ery Point and License Area 1. System Location: 137 West Vilas Road, City of Central Point, Oregon 97>t)2 2. System Size (DC 1cW): 78.96 3. Expected First Year Energy Production (1cWh): 101,122 ~. Expected Structure: Roof Mourlt 5. Expected Module(s): Manufaoturer/Model uantity Yingli Green Energy:YL23>P-296 336 6. Expected In~-erter(s): Manufaoturer/Model Fronius I7SA:IG Plus 12.0-3WYE277 6 uantity 7. Includes: SolarCity Limited Warranty: nstallati~~n ~~f a solar en€i _~ svstem (includes: design, engineering, permitting, installation, monitoring, rebate apr~liculion and pu(~cr~y~~rk processin; for solar energy system), pre~-ailing wage construction. 8. Excludes: TJnforesren ~_~n~un~l~~~~rk (in~lu~lin~, but not limited to, ekcavation/circumvention of underground obstacles), upgrades or repair t~~ cust~~mcr ~~r utility rlrctri~al infrastructure, upgrades or repair to building struch~re or to roofing system, paymrnt bonds, perf~~rnrui~r honJ~~_ tree removal, tree trimming. 9. Dcliycr~~ Point and License .area: SolarCity shall attach a schematic that contains the: (i) arra~_ (ii) Deliver I'~~mt_ and (iii) access points needed to install and servics System (bldg access, electrical room, stairs etc. ) Solar Power Piu~cha,e~ Agre~e~me~nt Etihibit 3 i ~'onuue~rcial ~ ~R i 3~ ~1 1 ~ ~~413 i ~'El CAP072811 Page 28 - ,~ ~ 4 . ~ , i ~, - ~' . ~ , 'r~ ~ ~ ~ a A { , . * R~ .~ ',~ rf~ ~ ~- . - ~ ~ ~ ~~ ~a /,,,, i , ~ +~ . I , , ~ ,t ~ " - ~"'" "''y. _ ~~ ~" t, ~~ ,, , '~'` ~ ' ~ ~ r >,,` ~ , a ~ 1 w '~ ^~ r °. ~" ~~,, y ~, M~ ~II px G Ax, i 1 i, 3~ !• ,~~~ S ~, ~ , Sol~iFon•eiFtuch~.;e_~lgieenient E1lulit~ i~'onuueici~lC~Ri ~i_~ll~_~-413 i~'Ei CAP072811 Page 29 RECORDING REQUESTED BY AND ) WHEN RECORDED, RETURN TO: ) SolarC'ity Corporation ) Legal Department ) 3055 C'learview Way ) San Mateo, C'A 94402 ) Facsimile: (65U) 56U-61x2 Email: oontaots~u~solarcitv.oom (space above this line reserved for recorder's use) THIS MEMORANDUM OF LICENSE is made and entered into this da~~ o~ , 201_, (the "Effective Date") by and between CENTRAL POINT CITY, whose address is 14U South ~fhird Street, City of Central Point, Oregon 97502 ("Licensor"), and SOLARCITY CORPORATION, whose address is 3055 Clcanic~~ Way, San Mateo, CA 94402 ("Licensee"). A. Licensor is the owner of certain real property ("Premises'"), located in the County of Jackson, State of Oregon, attached to this License as Exhibit A and incorporated herein h~ rcl`erence. B. Licensor and Licensee have entered into a S~~lar Power Purchase :'1~~reement dated on or about the Effective Date (the "Agreement") under which Licensee is selling energy generitcd by a photovoltaic electric generating system (the "System") to Licensor. The Agreement is I~~r a term of liftccn (15) years, beginning on the Effective Date and ending on the fifteen (15) year arnliversan ~~f the C~~mmercial Operation Date with an option to extend the Agreement for up to three (3) extended terms ~~f I~i~e ~5) years each. Pursuant to the Agreement, Licensor has granted Licensee an irrevocahJc non-exclusi~~c license ("License") over the Premises for the purposes and on the terms set forth in the Agreement Licensor anil Licensee agree aG fellows: Licensor hereh~ ~~rant~, to Liccnsc~ the Licrr~~~c over the Premises on and subject to the terms and conditions set forth in the Agreement ~~ bleb is incorporated herein by reference. The trrn~ ~~f the I_i~rnsr hr~~ins on the Effective Date and continues until one hundred and ttvent_v (12U) days after the tcrminali~,n ~~f the :Aerecmcnt This Memorandum ~~f License shall not he deemed to modify, alter or amend in ant way the provisions of the License or the Agreeni~nt. In the event of any conlliot hettveen the terms of the License and/or the Agreement and this Memorandum, the terms of the License and/or the Agreement, as applicable, shall control. The undersigned hay e executed this Menx~randu~n of License as of the date first written above. LICENSOR CENTRAL POINT CITY Bv: Name: Chris C'la_vton Title: Assistant City Manager LICENSEE SOLARC'ITY C'L)RPORATION Bv: _ Name: Title: Soler Fower Fru~oliase Agreemeirt Esliibit 3 i Commeroiel UR i ~~ Q 1! X413 i CEl CAP072811 Page 30 State of County of Un __ ___________, before me, __________________, Notarv Public, personally appeared _ ____, ~~ho pro~eil to me on the basis of sahsfaotoi~ e~iilenoe to he the person(s) ~~hose name(s) is/are suhsoriheil to the ~~ithm instrument anil ackno~~leilgeil to me that he/she/thev e~ecuteil the same in his/her/their authorized capacity i i~~s), anil that by his/her/their signature(s) on the instrument the persons ), or the entity upon behalf of whioh the person(s) noted, r~ rc uteri the instrument. I oertifv under PENALTY OF PERJiTRY under the laws of the State of _ th~~t the foregoing paragraph is true and correct. WITNESS n1y hand anil official ,~~,~I Si~~nuture of ihr Notarv Public State of California J Connt~~ of San Mateo ~. Un __ ___________. before me, _____ ____________, Notarv Public, personally appeared _________ _ ___, ~~ho pro~eil to me on lln~ I~asis ~~I ~~tisf~ct~~n r~ iilenoe to he the person(s) ~~hose name(s) is/are suhsoriheil to the ~~ithm instrument and acknowledged t~~ nie that hr'shrthr~ ~srcuted the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on thr i n~;trument the pcrs~~ni s ~. or tlir entity upon behalf of whioh the person(s) noted, ekecuted the instrument. I eertifv under I'I ~ N,~LTY OF PERJ[7R 1~" ^nder the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand anil official seal. Signature of the Notarv Public Soler Fower Fru~oliase Agreemeirt Esliibit 3 i Commeroiel UR i ~~ Q 1! X413 i CEl CAP072811 Page 31 Exhibit A To Memorandum of License Legal Description of Premises That certain real property located in the Coutlty of Jackson, State of Oregon ~lescribe~l as follows: <div>Map/Tak Lot: 372WU1BA SU3</div> <div>A PARCEL OF LAND LOCATED IN THE STATE OI~ ~ ~REU~ >N_ COI ~N~f Y OF JACILSUN, WITH A SITIJS ADDRESS OF W VILAS RD, , UR CITRRENTLY OWNED BY CENTRE\I. P~ ~IN1' CITY OF HAVINU A TAB ASSESSOR NTTMBER OF 10993796.</~li~> Egad ofExhibit3 Soler Fower Fru~oliase Agreemeirt Esliibit 3 i Commeroiel UR i ~~ Q 1! X413 i CEl CAP072811 Page 32 Exhibit Credit Information Promptly following the execution of this Agreement Purchaser shall supply SolarC'ity with the following credit information: APPLICANTS INFORMATION Name: Tad ID: Previous & Other Names: y~'ebsite: Corporate Address: 1~0 South Third Street City, State, Zip C itv of C antral Paint, Oragun 9702 Phone Number: ~dl-66d-3321 Fad Number Nona Entity Type S-Corp C-Corp Partnership Sole Prop LLC LLP Other Check One: Property Address for Solar Installation: State: Zip Code: Owner Occupied 137 waat ti`ilaa Road, ('ih' of ('antral Point Oregon 97J02 I ES Property Tvpe Insurance Agent Name Agents Phone: Name of Landlord if Not Owner Occupied Information Requested: Please submit the information required below pia electronic format to annmericalcreditu solarcih~.com. Corporate Records ^ C'opy of Articles of Incorporation, Partnership agrrcmunt, Fictitious Name Statement or Organizational formation Documents (If applicable ). Financial Statements ^ Last two (2) vents ~~'t CPA auditc~l. rc~ic~~c~l. c~~mpiled statements (Balance Sheet, Income Statement, Cash Flow). SolarCity may request you provide a~l~liti~uril documentation to complete the credit evaluation process. SolarCity will notify you if additional information i~~ rryun~rrl. The abuya information anal any mfurmatiun a0achcJ i< 1lunrshc~l w SularC itv and its affiliates ("Lender") in ounnactiun with the Application of credit fur which }'uu ma}~ appl}~ ur credit }'uu m ac ^uarantaa. Yuu aclaiu~~ I~~L~ and understand that the Lender is relying un this information in daoiding to grant ur continua credit ur to accept a guarantee of oradit 1 ~~u r~~~rasant, warranty and rcrtih~ that the information pruyidad herein is tnia, ourract and cumplata. The Lender is authurizad to make all inquires deemed necessary to ~ crilA the accurac}~ of the inf~~rmatiun ount~inad herein and to determine your craditwurthinass. Yuu authurize an}~ parson ur ounsumar-spurting aganc}~ to give the LanJcr :nn information it niac have about}'uu. Yuu authurize the Lender to answer quastiuns about its credit experience with }'uu. Subject to an}~ nun-disclosure agreement bct~a ren you and Lrndcr, this form and any other information given to the Lender shall be the Lender's property. If your application fur business .rc~lil i~ ~Icniad }'uu have the right to a written st~tamant of the spaoific reason fur the denial. Tu ubt~in the st~tamant, please ount~ct SularCity at (6~0) 638-1028, San rUulc~~, CA 9~~02. Yuu mist ount~ct us within 60 days from date vuu are notified of our dacisiun. wa will send vuu a written st~tamant of reasons fur the denial within 30 da}'s of receiving your request. N~ ~TI('E: Tha Fadaral Equal ~ )pporhmity Act prohibits creditors from discriminating against credit applicants on did basis of raoa, color, religion, national origin, aa~, marital atahis or age (provided did applicant has did capacity to antar into a binding contract); bacauaa all or part of did applicant's inooma darivaa from an}~ public assistance programs; or because did applicant has in good faith e~ereiaed an}~ right under did ('onaumer ('redit Protection Act The federal ageno}~ that administers compliance with this law oonceniing dais creditor is did ~ )ffioe of did ('omptroller of die ('urrenov, ('ustomar Assistance ihiit, 1301 l~Iohinnev Street, Suits 3d~0, Houston, Taus 77010-90j0. Solar('ity is an equal opporhmity lender. Signature Title Date Soler Fower Fru~oliase Agreemeirt Esliibit 4 i Commercial UR i ~~ Q 1! X413 i CEl CAP072811 Page 33 Exhibit 5 Solar Po«~er Purchase Agreement General Terms and Conditions See ~~~~~~~.solarcit~-.com/PPATerms. username "client" and password "agreement" E~~cl o f Eihihit 5 Soler Fower bR~~AI. RIfi~~~~¢~~rt Esliibit 5 i ~'oiuiueroiel ~_~R i ~Ull ~ X413 i ~'E i pa~~ q A Exhibit 6 RESERVED Efi~l ofExl~ibit 6 Soler Fower ~'~~~~~'¢~~lt Esliibit t; i Commeroiel UR i ~~ Q 1 ~ X413 i CEl Exhibit 7 RESERVED Egad of Exhibit 7 Soler Fower ~'~~~~~'¢~~lt Esliibit ' i Commeroiel UR i ~~ Q 1 ~ X413 i CEl ATTACHMENT "C" Frequent Private Power Agreement Questions Agency (City of Central Point, Oregon) Livestor (Solar City, Lic.) Why are the termination valves and buyout valves so high? To Agenda 1. Termination value is high to reflect the possible recapture of tax credits as well as discounted revenue from the entire term to make our investors whole.' 2. Buyout values are set (and we can only offer three) over the entire agreement and the final one has to be Fair Market Value (FMV) due to IlZS classification of a PPA. What happens at the end of the agreement? 1. At the end. of the term there are three options; purchase at then to be determined Fair Market Value (FMV), renegotiation of the lease, removal of the system at our cost (this is the trump card as if the Agency does not like the other two they can opt for this and. it costs us money). What other costs are there? 1. There is no cost to the Agency other than paying for the energry produced by the proposed solar generation system. What other responsibilities does the Investor and A~ency have under the contract? 1. The Agency is required to provide the investor with a point of contact during the installation, an interconnection point and site access during defined times. 2. The Agency is to provide Internet access for energry production monitoring. 3. The Investor owns all the environmental attributes as well as the tax credits on the system 4. The Investor is required. to do the maintenance or the solar system. The Agency is required. to perform the maintenance of the roof/ground. 5. The Agency cannot do anything that is going to block the sun. 6. The Agency must provide reasonable site security. 7. The system can only be publicized by the Investor with Agency permission. CAP072811 Page 37 Business: Approval of Medford Water Commission Agreement CAP072811 Page 38 Parks & Public Work Department STAFF REPORT DATE: JULY 8, 2011 TO: HONORABLE MAYOR AND CITY COUNCIL FROM: MATT SAMITORE, DIRECTOR SUBJECT: Medford Water Commission (MWC) Contract Matt Samitore, Director To Agenda In June the City Council had a study session regarding the water contract. It was discussed at that meeting some changes to the contract would need to be necessary. Council advised staff to revise language in Article 1 on large water users and eliminate language in Article 5 that was added by the Medford Water Commission regarding water rights. Staff added some language to Article 5 clarifying the need for regional water rights. RECOMMENDATION: Approve the proposed contract with the included amendments to send to the Medford Water Commission. CAP072811 Page 39 AGREEMENT To Agenda THIS AGREEMENT, made and entered into in duplicate on the day of 2011, by and between the City of Central Point, a municipal corporation of the State of Oregon, (hereinafter referred to as PURCHASER), and the City of Medford, a municipal corporation of the State of Oregon, acting by and through its Board of Water Commissioners, (hereinafter referred to as VENDOR), WITNESSETH: WHEREAS, VENDOR has wintertime (October through April) surplus water available in its municipal water system; and WHEREAS, PURCHASER desires to purchase said surplus waterfrom the municipal water system of VENDOR; and WHEREAS, PURCHASER desires to purchase treat-and-transport services for PURCHASER's own permitted or certificated water rights during summertime (May through September) from VENDOR; NOW, THEREFORE, for and in consideration of the foregoing and of the mutual promises hereinafter expressed, and intending to be legally bound hereby, the parties hereto do mutually agree as follows: ARTICLE 1. SCOPE OF WATER SUPPLY SERVICE VEN DOR owns and operates the treatment and transmission facilities which supply "surplus" water to PURCHASER. VENDOR routinely attempts to anticipate the water demands of its customers, including those of PURCHASER. VENDOR needs reasonably accurate forecasts of future water demands in order to ensure sufficient "surplus" capacity in these facilities to meet the growth needs of its customers. Therefore, PU RCHASER agrees that at the five-year renewal period it will convey to VENDOR a reasonable estimate of its maximum daily demand for the next five-year period. VENDOR agrees to continue to supply surplus water up to a maximum 3,255 gallons per minute (GPM), for the months of October through April, and treat-and-transport water up to a maximum of 5,700 GPM, for the months of May through September. The summertime 5,700 GPM shall be divided between meter locations with 1,500 GPM at Hopkins Road, 4,200 GPM at Vilas Road, and /or a share (Max 360 GPM) at Beall Lane. The wintertime 3,255 GPM shall be divided similarly, i.e., 1,425 GPM at Hopkins Road, 1,830 GPM at Vilas Road, and/or a share (Max 205 GPM) at Beall Lane. In the case of an emergency, VENDOR agrees to increase the supply within the limits of its system. PURCHASER shall immediately take all necessary steps to remedy the emergency. Both parties understand and acknowledge that PURCHASER'S estimated demand isjust a forecast and may prove to be too low, and that a large industrial or commercial customer may alter CAP072811 Page 40 the demands of PURCHASER. In the event that PURCHASER becomes aware that it shall exceed its estimated maximum day demand, it shall notify VENDOR with a new estimated demand. VENDOR shall then determine if it has sufficient surplus treatment and transmission capacity to meet this anticipated demand. If sufficient capacity does not exist, then VENDOR shall provide PURCHASER a timeline for VENDOR to meet the demand. In the case of an extremely large industrial or commercial user (those who utilize over 2.0 MGD), VENDOR shall work worth with i-Fie7T'c~& ~°+°rmin°+inn ~nih°4h°r fi irnichin/r that particular user with its needed water supply is in the best interest of the citizens of Central Point and Medford and makes the best use of the region's limited water resources. VENDOR does not guarantee PURCHASER that every large commercial or industrial user located in PURCHASER'S service area will automatically be provided water. VENDOR shall, however, apply the same standard, as related to service to larger users, evenly across all the jurisdictions supplied by VENDOR. ARTICLE 2. CONNECTIONS PURCHASER'S primarywater supply connections from VENDOR'S system are through an eight-inch (8") connection on Beall Lane, a 10-inch (10") connection on Hopkins Road, and a 10- inch (10") connection on Vilas Road. The connections are available for utilization on a year-round basis. All piping and control valves downstream of these master meters shall be the responsibility of PURCHASER. ARTICLE 3. RULES AND REGULATIONS All rules and regulations of the Board of Water Commissioners relating to water users outside of the City of Medford as now in effect, or as the Board of Water Commissioners of the City of Medford may from time to time prescribe, shall be deemed a part of this Agreement, and PURCHASER agrees to comply therewith and its rights for the supply of water shall be governed thereby. No such rules or regulations shall relieve VENDOR of its obligation to supply water in accordance with the terms of this Agreement except as may be dictated by federal and state regulations or other items beyond VENDOR's control. Nothing contained in this Agreement shall be deemed to modify, alter or repeal any such regulations now or hereinafter adopted. PURCHASER acknowledges that it has received a copy of all rules and regulations governing water service of VENDOR relating to water users outside the City of Medford, attached as Exhibit A to this Agreement. VENDOR shall promptly, upon passage, supply to PURCHASER a copy of any amendments or additions to said rules and regulations. PURCHASER agrees that water supplied to its customers is an "urban" service and should be confined to current or future city residents. PURCHASER may establish its own urbanization and outside water service policies based on this premise or may utilize VENDOR's policy. In order to avoid future service conflicts, a general water service boundary map is attached to this Agreement as Exhibit B. This map is intended to be modified as urban boundaries change due to regional and local planning decisions. CAP072811 Page 41 PURCHASER agrees that it shall not serve any areas outside their city limits other than: a) Areas within PURCHASER'S Urban Growth Boundary; and b) Areas within PURCHASER'S Future Urban Reserve Area; and c) Areas within the Seven Oaks Interchange "Area of Mutual Planning Concern"; all as defined and described in PURCHASER'S Comprehensive Plan, which may be duly modified from time to time. PURCHASER also agrees to notify VENDOR in writing of all annexations or modifications to any of the boundaries described above. ARTICLE 5. MEETING FUTURE WATER DEMANDS PURCHASER understands that this Agreement calls for the sale of surplus water from VENDOR and that by the Year 2030, with current growth trends, VENDOR will completely utilize all of its natural stream flow rights from the Rogue River and those from Big Butte Springs. This will mean that VENDOR will not have sufficient "surplus" water to meet the summertime demands of PURCHASER. Additional stored water for municipal and industrial uses is currently available from the U.S. Army Corps of Engineers at Lost Creek Reservoir; or other alternatives maybe available to meet summertime demands. Even though it is still many years until the system utilizes all of its current surplus water, plans and actions are needed now in order to avoid future water shortages. PURCHASER has purchased or acquired the full 2020 demand including, but not limited to, any required water right permits, change of use, or point of diversion. PURCHASER shall secure and maintain the required demand water rights in perpetuity. Current growth and demand projections, as determined by PURCHASER, indicate that PURCHASER will need 1,535 acre-feet ofwaterto meet its 2020 summertime demand. VENDOR acknowledges that the current demand is based upon population projects established in 2005. New projections will need to be completed before the next agreement. Demand projections have been reviewed by VENDOR and PURCHASER. As growth continues in the future, water rights will need to be continually evaluated and obtained by PURCHASER in order to meet those demands. VENDOR has included the service area of PURCHASER on water right permits made to the Oregon Water Resources Department (OWRD); however, PURCHASER acknowledges that the surplus water used by VENDOR to supply PURCHASER's demands comes from water right certificates and permits issued by OWRD to the VENDOR. PURCHASER acknowledges that these permits and certificates therefore belong to the VENDOR °nrl DI IR(`I-14 CCR hoc nn ~on~~ on, ,i+~h~o honofini~l nr n+honniico ,.~~in, +n +ho~o rink+~ PURCHASER also acknowledges that VENDOR has discretion to lawfully re-designate or change areas of service of noted surplus water for future agreements. PURCHASER agrees to work with VENDOR on long term solution to regional water rights issues. VENDOR maintains water-measuring equipment at the Robert A. Duff Water Treatment Plant for recording the amount of water withdrawn from the Rogue River covering all valid water rights and all data acquired is of public record. VENDOR also monitors masterwater meters at three locations noted in Article 2 for the purposes of recording the amount of water used by CAP072811 Page 42 PURCHASER. VENDOR provides on a monthly bill the usage of water by PURCHASER pertaining to this Agreement. ARTICLE 6. PAYMENTS TO VENDOR PURCHASER shall pay monthly to VENDOR for all water thus purchased from VENDOR at VENDOR's regularly scheduled rates forwater service to incorporated cities in effect at a particular time. VENDOR reserves the right to change said rates at any time upon sixty (60) days written notice to PURCHASER. VENDOR agrees to make reasonable effort to notify PURCHASER annually, at least two months prior to the end of the calendar year of VENDOR's opinion as to the need for rate adjustment during the subsequent year. ARTICLE 7. TERM OF AGREEMENT VENDOR has every intention of selling water to PURCHASER for as long as PURCHASER desires to purchase from VENDOR and VENDOR has surplus water to sell. In furtherance of that understanding, VENDOR agrees to negotiate in good faith with PURCHASER for renewal of the Agreement. In the event that VEN DOR does not renew the Agreement, then the current Agreement will continue in effect as long as reasonably necessary to allow PURCHASER to secure other sources of water. However, Section 19 of the Charter of the City of Medford limits the term of water service contracts to 20 years and, therefore, the obligations of VENDOR under this Agreement shall not, under any circumstances, exceed that period of time. PURCHASER shall make no assignment of the rights or interests herein granted without written permission. In the event of any occurrence rendering PURCHASER incapable of performing under the Agreement, any successor of PURCHASER, whether the result of legal process, assignment, or otherwise, shall succeed to such right of PURCHASER hereunder. The term of this Agreement shall be five (5) years from the date hereof. PURCHASER may, at its option, extend the term for three additional five-year periods, which periods would run through 2020, 2025, and 2030 respectively. Written notice of the election to exercise afive-year extension of the contract must be given to VENDOR not later than January 1st of the year in which the agreement would expire if there was no extension. ARTICLE 8. WATER CURTAILMENT PLAN VENDOR, on March 4, 2009, passed Resolution No. 1345 adopting a Water Curtailment Plan for VENDOR's service area. This plan calls for the curtailment of water use by all types of customers using water provided by VENDOR during periods of drought or emergency. VENDOR's Water Curtailment Plan is hereby incorporated into and made a part of this Agreement by this reference. During emergency or drought periods, VENDOR shall give PURCHASER as much advance warning as possible prior to curtailment of water supplies. The level of curtailment shall be determined by VENDOR based on the severity of the proposed shortage. PURCHASER shall be responsible for enforcing the curtailment plan in its service area. ARTICLE 9. INDEMNITY AND COMPLIANCE WITH LAWS AND REGULATIONS CAP072811 Page 43 To the extent provided under the Oregon Tort Claims Act, ORS 30.260 to 30.300, and to the extent PURCHASER is to perform work pursuant to the terms of this Agreement, PURCHASER agrees that it will be solely responsible for any damage or trespass to or upon adjacent property or injury thereto and any and all other liability or damages resulting from or in connection with its operation, and that it will hold VENDOR harmless from any claim, liability, damages or obligation arising therefrom and indemnify VENDOR for the amount of any obligation it may incur on account thereof or arising therefrom. Provided, however, that PURCHASER shall not be required to indemnify VENDOR against liability for damage arising out of death or bodily injury to persons or damage to property caused in whole or in part by the negligence of VENDOR, except to the extent that the death or bodily injury to persons or damage to property arises out of the fault of PURCHASER or PURCHASER's agents, representatives or subcontractors. To the extent PURCHASER is to perform work pursuant to the terms of this Agreement, PURCHASER shall at all times observe and comply with all federal and state laws and local ordinances and regulations, in any manner affecting the conduct of the work, and all such orders or decrees as exist at the present and those which may be made or enacted later by bodies or tribunals having any jurisdiction or authority over the work, and shall indemnify and save harmless VENDOR and all its officers, agents and servants against any claim or liability arising or based on the violation of any such law, ordinance, regulation, order or decrees, whether by themselves or their employees. ARTICLE 10. PARTIAL INVALIDITY If any term, covenant, condition, or provision of this Agreement is found by a court of competent jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall remain in full force and effect, and shall in noway be affected, impaired, or invalidated thereby. ARTICLE 11. INTEGRATION This Agreement represents the entire understanding of VENDOR and PURCHASER as to those matters contained herein. No prior oral orwritten understanding shall be of anyforce oreffect with respect to those matters covered herein. This Agreement may not be modified or altered except in writing signed by both parties. ARTICLE 12. JURISDICTION This Agreement shall be administered and interpreted under the laws of the State of Oregon. Jurisdiction of litigation arising from this Agreement shall be in that state. ARTICLE 13. DEFAULT It is further understood and agreed by and between the parties hereto that this Agreement is conditioned upon the faithful performance by PURCHASER of all terms and provisions hereof, which, on its part, are to be kept and performed and any failure to do so or any default which is not remedied within ten (10) days after the mailing of written notice from VENDOR to PURCHASER specifying the particulars of the alleged default, shall give VENDOR the right to discontinue CAP072811 Page 44 furnishing water as herein provided and VENDOR may, at its option, terminate this Agreement. Notwithstanding the foregoing, PURCHASER shall not be deemed in default hereunder if the default is of such a nature that it cannot be remedied within ten (10) days and PURCHASER proceeds in good faith to cure such default. IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their proper officers the day and year first above written. 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