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PROPOSED CONTRACT
Department(s): Office of the General Superintendent
Vendors:
• Light On A Hill 3, D/B/A Soltaic Solutions, LLC, Eden Prairie, Minnesota (“Soltaic”); and
• Windfree, Wind + Solar Energy Design Company, Chicago, Illinois (“Windfree”)
Request: Authorization for the Forest Preserves of Cook County (the “Forest Preserves”) to enter into and execute
Good(s) or Service(s): Solar Energy Procurement Supply Contract
Contract Value: Not to Exceed $975,000.00
Contract Period: From the effective date through thirty (30) years after the date of commercial operation (estimated to be on or before 3/1/2027)
Estimated Fiscal Impact: Average annual costs estimated at $32,500.00 and total not to exceed $975,000.00 over contract term of thirty (30) years.
Accounts: Utilities Electricity 51001.540022
Contract Number(s): #74000018359
Concurrences: The Chief Financial Officer has approved this item. Final contract is subject to legal review and approval.
The contract-specific Minority- and Women-Owned Business Enterprise goal for this contract was set to zero.
District(s): 16
Summary: The Forest Preserves recently issued a Request for Proposals (“RFP”) for an onsite solar system to serve the Central Maintenance Compound in Maywood via a Power Purchase Agreement (“PPA”). A Power Purchase Agreement (PPA) is a valuable tool in acquiring additional renewable energy with limited upfront capital investment while gaining technical experience managing on the ground clean energy projects. One (1) complete and responsive proposal was received and evaluated by staff on financial competitiveness, technical capability, cost benefits, and compliance with all Forest Preserves requirements. As a result, the Forest Preserves proposes entering into a contract with Soltaic, the vendor who will be the PPA provider that will finance and own the new solar system. The second listed vendor, Windfree, is the solar company that will engineer, procure, construct and maintain the system. The Forest Preserves will not own the system or equipment associated with the PPA, and Soltaic’s and Windfree’s responsibilities for the construction, financing and operation of the system will be encapsulated in an agreement attached to the PPA.
The recommended PPA includes construction of a 140-kW ground mounted solar energy system with operations, maintenance, and the renewable energy credits for the 30-year term. The license area for the solar system is not to exceed 1 acre, and the area needed for construction will not exceed 1.5 acres. It will supply a range of 39%-45% of the Central Compound’s electric load. The vendors will install, own, and maintain the system, with the Forest Preserves purchasing the electricity it produces over a 30-year term.
The total contract value is not to exceed $975,000.00. This accounts for $880,500.00 in energy costs with annual energy payments beginning in FY 2027 and increasing by 1% annually under the PPA structure, $8,500.00 for contingencies, and a one-time initial pre-payment of $86,000.00. The average cost per year is $32,500.00. The total cost includes the value of tax credits anticipated to be earned by the vendors under current federal tax rules and passed through to the Forest Preserves through reduced PPA pricing. Payments are subject to annual Forest Preserves appropriations. With that said, at this time, the projected annual cost under the contract is expected to exceed the cost of non-solar generated energy for the location. However, Forest Preserves staff have determined that there is a benefit to having cost certainty and climate benefits for electricity for this location. Approval of this contract will advance the Forest Preserves’ renewable energy and climate goals and will reduce the Compound’s annual electricity GHG emissions by approximately 43.5% annually. Overall, the proposed contract advances the goals set in the Sustainability and Climate Resiliency Plan, including the net-zero by 2050 goal.
In addition to costs noted above, the Forest Preserves is responsible for (1) reimbursement for excess net metering credits, (2) reimbursement of real property or other tax expenses in connection with the operation of the system, (3) interest on late payments, and (4) if applicable, early termination fees. Regarding early termination fees, if the Forest Preserves terminates the PPA without cause, it will be responsible for certain termination fees (ranging from $797,285.00 for Year 1 to $24,608.00 for Year 30) as well as associated costs for any rescinded or revoked incentives. The PPA also includes non-standard provisions for the Forest Preserves, such as limitations on liability.
The PPA includes a revocable license for use of Forest Preserves property by the vendors. Further, the terms, conditions, and procedures of the Forest Preserves’ licensing ordinances found at Title 2 (Forest Preserve Lands and Property), Title 5 (Public Utilities) and other applicable licensing provisions of the Forest Preserves Code of Ordinances may be waived or deemed not applicable in whole or in part by the Forest Preserves with respect to the proposed agreement, including the application of license fees. The Forest Preserves would be entering into this PPA not in its regulatory capacity but in its proprietary capacity as a market participant. The PPA may be recorded in order to evidence or secure the vendors right to access and use the licensed area.