HomeMy WebLinkAbout7/15/2015 - STAFF REPORTS - 2.P. A`M SA9
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DATE: July 15, 2015 CONSENT CALENDAR
SUBJECT: AUTHORIZE CITY MANAGER TO EXECUTE A CONSENT TO THE
SOLAR POWER PURCHASE AGREEMENT AND SITE LEASE
BETWEEN THE PALM SPRINGS AIR MUSEUM AND NOBELL ENERGY
SOLUTIONS
FROM: David H. Ready, City Manager
BY: Thomas Nolan, Aviation Director
SUMMARY
This action considers the Palm Springs International Airport tenant Air Museum's
request to enter into a Purchase Power Agreement and Site Lease with Nobell Energy
Solutions for the generation and use of solar power.
RECOMMENDATION:
Authorize the City Manager to execute a written consent on behalf of the City to the
agreement between the Palm Springs Air Museum and Nobell Energy Solutions for the
installation and operation• of a solar power energy system for the benefit of the Air
Museum.
STAFF ANALYSIS:
In November of 1995, the Palm Springs Air Museum entered into a lease with the City
for land at the Palm Springs International Airport. The purpose of the lease was for
constructing and operating an aviation museum on a ten-acre parcel of land adjacent to
Gene Autry Drive.
Today, the Museum serves as one of the main attractions for the entire Coachella
Valley with a world-class aviation war history themed venue. Tens of thousands of
attendees pay to visit the Palm Springs Air Museum every year and experience war
history through an array of real aircraft, art, and a medley of World War II and Vietnam
era relics that memorialize these world defining events.
The Museum facility complex includes three large hangars with office space, a large
adjacent aircraft apron, and several public parking lots, including a temporary parking
area under a license agreement amendment to the lease.
ITEM NO.
City Council Staff Report
July 15, 2015 -- Page 2
Consent for Solar System at Air Museum
The Air Museum has identified a need to engage a third party to install an array of solar
panels under a Purchase Power Agreement and Site Lease. Under the arrangement,
the Nobell Energy Solutions, the provider, will own and install the necessary solar
panels, continue to own and operate the units, and sell energy at a cost savings to only
the Air Museum. The provider will not consummate the arrangement without the
consent of the City as the landlord and assurances from the City that should there be a
lease default between the Air Museum and the City the provider can retrieve all
equipment it owns from the solar installation.
To accommodate this arrangement for the Air Museum, their attached letter of consent
has been prepared for Council consideration and authorization.
The solar unit will be installed on the museum's lease property, and under the
instruction of airport staff, the museum has submitted its plan to the FAA for review.
Approval for the installation has been granted by the FAA under the requirement that
should the solar panels generate any glare impediment for the Air Traffic Controllers or
pose any other navigation issues, the FAA will require remedial action including
possible removal of the units. The necessary building permit has been obtained from
the City.
FISCAL IMPACT:
This project presents no fiscal impact to the City.
Thomas Nolan David H. Ready, Ph.D.
Executive Director, Airport City Manager
Attachment: Consent Letter
02
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-� City of Palm Springs
v H Department of Aviation
+ * Palm Springs International Airport
3i00 E.Tahquitz Canyon Way, Suite CFC • Palm Springs, California 92262-6966
�QOFORN Tel: (760) 318-3800 • Fax: (760)318-3815 • Web: www.pilmspringsairpori.com
Palm Springs Air Museum
Attn: William Bramer
745 N Gene Autry Trail
Palm Springs, CA 92262
Re: PSAM/Nobell Energy Solutions Power Purchase Agreement and Site Lease
Dear Mr. Bramer,
The City of Palm Springs ("City") currently leases certain real property at the Palm
Springs Airport ("Demised Premises") to the Palm Springs Air Museum ("Museum") pursuant to
a lease between the City as "Landlord" and the Museum as "Tenant' dated November 29, 1995,
which lease was amended on December 2, 1998 (collectively, the "Lease").
The Museum has notified the City that: (i) It desires to enter into a Power Purchase
Agreement ("PPA") with Nobell Energy Solutions, LLC ("Nobell") to install a rooftop solar
photovoltaic energy system ("Solar System") at the Demised Premises for the purpose of
providing renewable energy for Museum operations; (ii) In connection with the PPA, the
Museum also desires to enter into a Site Lease Agreement ("Site Lease") with Nobell to grant to
Nobell the right to enter upon the Demised Premises to install, operate, maintain and remove the
Solar System; (iii) The Museum has obtained the consent of the Federal Aviation Administration
for the proposed Solar System; and (iv) Under the terms of the PPA and the Site Lease, the Solar
System will at all times remain the property of Nobell and will be removed from the Demised
Premises upon any termination of the PPA/Site Lease or at the end of the term of the Site Lease
unless the Museum decides to exercise a purchase option for the Solar System.
The City has reviewed the information provided by the Museum in connection with the
PPA and the Site Lease and is willing to provide the following consents, confirmations, and
acknowledgements for the benefit of the Museum and Nobell:
1. The City confirms that the Lease is in full force and effect as of the date of this
letter and that the City is not aware of any pending or threatened defaults by the
Museum under the Lease;
2. The City consents to the execution of the Site Lease by the Museum and the grant
of the rights to Nobell thereunder to access the Demised Premises and install the
Solar System, subject to the terms of the Lease, including without limitation, any
rights of the City to terminate the Lease and the provisions of Section 5.1 of the
03
Post Office Box 2743 0 Palm Springs, California 9 2 2 63-2 743
Lease with the understanding the Solar System is an approved improvement as
provided in such section 5.1;
3. The City acknowledges that the Solar System remains the property of Nobel] and
will not become the property of the City as Landlord upon the termination of the
Lease; and
4. In the event that the Lease is terminated for any reason, the City acknowledges
that Nobell will have a period of ninety (90) days following notice of termination
to dismantle, pack and remove the Solar System from the Demised Premises
provided that any damage occasioned by such removal shall be repaired as
provided in Section 5.1 of the Lease and that all costs for such repairs shall be
fully paid by Tenant and/or Nobell.
Nothing contained in this letter shall be construed as an assumption by City of any
obligation of Museum under the PPA/Site Lease, including any obligation to provide Nobell with
any notice of default by Museum or an opportunity to cure. Furthermore, in no event will City
have any obligation to permit Nobell to continue to occupy any portion of the Demised Premises
following a termination of the Lease except for the right of removal described in item 4 above.
The confirmations and acknowledgements contained in this letter will extend to the
respective successors, lenders and permitted assigns of Museum and Nobell.
Sincerely,
City of Palm Springs
04
low
U.S.Department ,
of Transportation
Federal Aviation
Administration
February 09, 2015
TO:
Stion Corporation
Attn: Kevin Mackamul
6321 San Ignacio Ave
San Jose, CA 95119
kmackamul@stion.com
CC:
Stion Corp
Attn: Kevin Mackamul
6321 San Ignacio Ave
San Jose, CA 95119
kmackamul@stion.com
CC:
CITY OF PALM SPRINGS
3400 E. TAHQUITZ CANYON WAY
PALM SPRINGS, CA 92262
Thomas.Nolan@palmsprings-ca.gov
RE: (See attached Table 1 for referenced case(s))
"FINAL DETERMINATION"
Table 1 -Letter Referenced Case(s)
ASN Prior ASN Location Latitude Longitude AGL AMSL
(NAD83) (NAD83) (Feet) (Feet)
2015-AWP-96-NRA 2014- PALM SPRINGS,CA 33-49-59.15N 116-30-19.20W 26 456
AWP-1913-NRA
2015-AWP-104-NRA 2014- PALM SPRINGS,CA 33-49-56.28N 116-30-17.28W 35 464
AWP-1920-NRA
We do not object with conditions to the construction described in this proposal provided:
You comply with the requirements set forth in FAA Advisory Circular 150/5370-2, "Operational Safety on
Airports During Construction."
The proponent is required to coordinate all associated activities with the Airport Manager/Airport Traffic
Control Tower(ATCT) 5 business days prior to the beginning of the project.
This determination is subject to review if disruption to FAA Operations should occur.
Page 1 of 2
If glint or glare from the solar panels is later found to have an impact on the air traffic controllers/tower and/or
air navigation the solar panels will have to be mitigated immediately with the FAA.
A separate notice to the FAA is required for any construction equipment, such as temporary cranes, whose
working limits would exceed the height and lateral dimensions of your proposal.
This determination does not constitute FAA approval or disapproval of the physical development involved in
the proposal. It is a determination with respect to the safe and efficient use of navigable airspace by aircraft and
with respect to the safety of persons and property on the ground.
In making this determination, the FAA has considered matters such as the effects the proposal would have on
existing or planned traffic patterns of neighboring airports,the effects it would have on the existing airspace
structure and projected programs of the FAA,the effects it would have on the safety of persons and property
on the ground, and the effects that existing or proposed manmade objects (on file with the FAA), and known
natural objects within the affected area would have on the airport proposal.
This determination expires on August 9, 2016 unless:
(a) extended, revised or terminated by the issuing office.
(b) the construction is subject to the licensing authority of the Federal Communications Commission (FCC) and
an application for a construction permit has been filed, as required by the FCC, within 6 months of the date of
this determination. In such case, the determination expires on the date prescribed by the FCC for the completion
of construction, or the date the FCC denies the application.
NOTE: Request for extension of the effective period of this determination must be obtained at least 15 days
prior to expiration date specified in this letter.
If you have any questions concerning this determination contact Lloyd E. Lewis (310) 725-3650
Iloyd.e.lewis@faa.gov.
Lloyd E. Lewis
DivUser
Page 2 of 2
City of Palm Springs
David H. Ready, Esq., Ph.D.
f City Manager
"FORVIk, 3200 E.Tahquitz Canyon Way,Palm Springs,CA 92262
Tel 760.322.8350 • Fax 760.323.8207 • TDD 760,864.9527
David.Ready@palmspringsca.gov • w palmspingsca.gov
July 15, 2015
Palm Springs Air Museum
Attn: William Bramer
745 N Gene Autry Trail
Palm Springs, CA 92262
Re: PSAM/Nobell Energy Solutions Power Purchase Agreement and Site Lease
Dear Mr. Bramer,
The City of Palm Springs ("City") currently leases certain real property at the Palm
Springs Airport ("Demised Premises") to the Palm Springs Air Museum ("Museum") pursuant to
a lease between the City as "Landlord" and the Museum as "Tenant" dated November 29, 1995,
which lease was amended on December 2, 1998 (collectively, the "Lease").
The Museum has notified the City that: (i) It desires to enter into a Power Purchase
Agreement ("PPA") with Nobell Energy Solutions, LLC ("Nobel]") to install a rooftop solar
photovoltaic energy system ("Solar System") at the Demised Premises for the purpose of
providing renewable energy for Museum operations; (ii) In connection with the PPA, the
Museum also desires to enter into a Site Lease Agreement ("Site Lease") with Nobell to grant to
Nobell the right to enter upon the Demised Premises to install, operate, maintain and remove the
Solar System; (iii) The Museum has obtained the consent of the Federal Aviation Administration
for the proposed Solar System; and(iv) Under the terms of the PPA and the Site Lease, the Solar
System will at all times remain the property of Nobell and will be removed from the Demised
Premises upon any termination of the PPA/Site Lease or at the end of the term of the Site Lease
unless the Museum decides to exercise a purchase option for the Solar System.
The City has reviewed the information provided by the Museum in connection with the
PPA and the Site Lease and is willing to provide the following consents, confirmations, and
acknowledgements for the benefit of the Museum and Nobell:
1. The City confirms that the Lease is in full force and effect as of the date of this
letter and that the City is not aware of any pending or threatened defaults by the
Museum under the Lease;
PO Box 2743, Palm Springs, California 92263
July 2, 2015
Page Two
2. The City consents to the execution of the Site Lease by the Museum and the grant
of the rights to Nobell thereunder to access the Demised Premises and install the
Solar System, subject to the terms of the Lease, including without limitation, any
rights of the City to terminate the Lease and the provisions of Section 5.1 of the
Lease with the understanding the Solar System is an approved improvement as
provided in such Section 5.1;
3. The City acknowledges that the Solar System remains the property of Nobell and
will not become the property of the City as Landlord upon the termination of the
Lease; and
4. In the event that the Lease is terminated for any reason, the City acknowledges
that Nobell will have a period of ninety (90) days following notice of termination
to dismantle, pack and remove the Solar System from the Demised Premises
provided that any damage occasioned by such removal shall be repaired as
provided in Section 5.1 of the Lease and that all costs for such repairs shall be
fully paid by Tenant and/or Nobell.
Nothing contained in this letter shall be construed as an assumption by City of any
obligation of Museum under the PPA/Site Lease, including any obligation to provide Nobell with
any notice of default by Museum or an opportunity to cure. Furthermore, in no event will City
have any obligation to permit Nobell to continue to occupy any portion of the Demised Premises
following a termination of the Lease except for the right of removal described in item 4 above.
The confirmations and acknowledgements contained in this letter will extend to the
respective successors, lenders and permitted assigns of Museum and Nobell.
Sincerely,
David H. Ready,
City Manager
Dougla . Holland
City A forney
dch/cmc