LAKEPORT, Calif. – The city of Lakeport is moving forward on plans for a solar energy project.
The project is proposed to be built at the city's sewage treatment facility on the outskirts of the city off Highway 175.
At its meeting Oct. 7, the Lakeport City Council – sitting jointly as the City of Lakeport Municipal Sewer District Board – received a presentation from Mike Adams, Mendocino College's retired director of facilities planning, on planning for the new solar array.
The council at that time unanimously voted to amend the sewer operations budget in the amount of $45,657 to allow the solar planning phase to move forward.
At the Lakeport City Council's April 7 meeting Adams gave an update on the phases and planning, and potential sites.
He said the project is about two things – energy conservation and cost savings for the city. Adams said he thinks it's the right thing to do if the city can afford it, and he hoped to be able to answer that question for the council.
As proposed, the project would cost an estimated $2.6 million. It would be covered by a prepaid power purchase agreement. As such, it would be installed and, initially, owned by an investor, Adams explained.
After five years the city would purchase the system at 83 percent of the estimated total $2,663,381 cost, – or just over $2.2 million – plus a buyout cost of $53,268. The total approximate cost of the project to the city is estimated to be $2,263,874, according to Adams.
The city would use the power generated by the system and pay the debt services. In the first year, it's estimated that the city's net savings would be approximately $49,664. Adams said that's the difference between the annual energy savings of $311,981 and the annual debt service of $262,317.
The monthly payment would be $21,859.77, and debt service would be paid off in 10 years, he said.
The 1.075-megawatt installation would be composed of four systems, including a 700-kilowatt system on Highway 175 and three 375-kilowatt systems on Linda Lane.
Work completed in the first and second planning phases so far includes reviewing projected utility loads, developing site selection criteria, identifying funding options, developing the planning schedule and budget, investigating potential sites, reviewing site topography and soils, identifying Pacific Gas and Electric solar program options, adopting a planning budget, conducting the phase one soils investigation, contracting a solar electrical engineer for system design recommendations, developing a system cost and benefit analysis and a final project budget based on system design recommendations.
He said topography studies still need to be completed on two of the smaller sites.
Besides sun exposure, a key consideration in site selection was proximity to existing infrastructure. Adams said there are other possible sites in addition to those identified on Highway 175 and Linda Lane, but they lack infrastructure.
Regarding the projected schedule going forward, Adams said they can begin developing specifications, and looking at the questions they still have regarding the legal and funding elements. The city can then put out a request for proposals package in May with proposals to come in during June and the contract award to be made in July, with the goal of finishing the project by year's end.
Councilman Marc Spillman asked about the life of the system and how long it could be expected to last.
Adams said there will degradations of panels and new technological developments, but the infrastructure itself will be solid.
In 2009, when Adams led the solar installation project at Mendocino College, he said the cost was $7 per watt, for an overall cost of $7 million for a one megawatt system. Now, it's $2.48 per watt.
He said that because the proposal is for a fixed system – one that doesn't move to follow the sun during the day – there will not be a lot of maintenance.
Councilwoman Stacey Mattina asked about potential maintenance costs, which Adams explained the city isn't responsible for while the system is investor-owned.
Eventually, once the city owns the system, Adams suggested a service contract would be a good idea, adding that such contracts usually cost about $5,000 a year.
City Finance Director Dan Buffalo said the city is still exploring how the mechanism works for the construction and installation of the array. A potential vendor gave the city a sample agreement for that mechanism, but it hasn't been shared with the city attorney and due diligence hasn't been completed.
However, “On the face of it, it pencils out,” and looks positive, Buffalo said.
Mayor Martin Scheel asked if the city could access credits for the project. Adams said the incentives available in 2009 for public agencies were pretty big – Mendocino College received $2.8 million – but have since gone away.
Councilman Kenny Parlet, referring to Adams' statement about the drop in cost since the college project in 2009, pointed out that the same solar system originally would have cost $5 million more.
“The cost of this stuff is going down because they're building more of it,” said Adams. “It's just an economy of scale.”
City Manager Margaret Silveira told Lake County News this week that the city is now preparing to do a request for proposals for a project consultant.
She said Adams will put that together and bring it back to the council.
“We are hoping to have this project in as soon as possible,” Silveira said.
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City of Lakeport pursues next steps in solar energy project
- Elizabeth Larson
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