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Council debates solar options

Posted 9/25/14

The Town Council has directed staff to seek requests for a cooperative purchase agreement to provide solar services to town facilities in the Cutillo Civic Center.

Facilities and environmental …

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Council debates solar options

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The Town Council has directed staff to seek requests for a cooperative purchase agreement to provide solar services to town facilities in the Cutillo Civic Center.

Facilities and environmental supervisor Raymond Rees outlined the plan Sept. 18.

The objective is to provide a solar generating system to help defray the cost of electricity at town-owned facilities.

Rees said there are several options for bringing in a system at little or no installation cost to the town and a potential savings of approximately $26,000 a year in power costs.

The options include a power purchase agreement (PPA), solar services agreement (SSA), solar lease agreement or solar purchase.

He said staff has researched the options by visiting other Valley cities that have developed systems.

The PPA/SSA agreement would allow the town to purchase power at a predetermined rate over a period of time (typically around 20 years).

The generating system is constructed by the solar provider on the purchaser’s property at no cost. It is constructed and maintained by the provider for the duration of the agreement, at which time the system can be sold to the purchaser at a prorated and predetermined amount.

A solar lease agreement allows the town to pay for the solar generating system over a period of time rather than upfront. Typically it is paid for with the savings from generating electricity.

The solar purchase is the most expensive option for the town with the most upfront costs. The system is purchased outright and the owner is responsible for construction and maintenance. There is no return on investment for several years, but the savings on power purchases is the largest of the options.

The proposal is to construct two systems, one to serve Town hall and the second to serve the Community Center, Library and physical plant.

The solar panels would be covered parking structures. Those serving Town Hall would be in the east law enforcement parking lot. Those for the Community Center, etc. would be built over the main parking area between Town Hall and the Community Center.

Mayor Linda Kavanagh resisted the idea and cast the lone no vote to go forward.

Kavanagh said she is aware that the Fountain Hills Safeway store is slated to receive a solar system to serve the store.

“This would be an opportunity to see how it looks and how the people in town like (the appearance),” Kavanagh said. “We could see how the system works for (Safeway).

“SRP is very cautious, and I think they would be more enthusiastic if it were a good idea. Why rush into this if we have the opportunity to see how successful Safeway is?”

Rees said Safeway has plans to do all of its stores and there is no timetable for the local store.

Councilwoman Ginny Dickey supports the plan and in fact first proposed a similar idea when she was first elected to the council eight years ago.

“The RFP process offers all options to consider and has safeguards built in,” Dickey said. “Are these other communities doing this making irresponsible decisions or are they a model we can take advantage of?

“I want to move forward, not in a reckless way, but with the information.

“I’m not so sure SRP and APS are all that solar friendly, and not sure we should be taking their advice.”

“The savings of $25,000 to $30,000 a year is what interests me,” Councilman Henry Leger said. “People are saving money and looking at significant savings.

“The only way we can get our arms around this it to go with the RFP where we can dictate the terms.

“While I understand the visual issue the mayor is talking about, Safeway will be designing a much different system than what we will need.”

The RFP process is generally like a bid proposal providing the town with information and options based on its specifications and needs. The council will have the option to consider and accept or reject any proposal presented.

No timeframe was discussed.