SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the First Amendment to the Energy Performance Contract with Iconergy, Ltd. for the Erie North Water Reclamation Facility Floating Solar Project
Department
DEPARTMENT: Public Works
Presenter
PRESENTER(S): David Pasic, Public Works Director
Chad Alexander, Facilities Manager
end
Time
TIME ESTIMATE: 30 minutes
end
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $4,276,673
Balance Available: $5,000,000
Fund Wastewater Fund
Line Item Number: 510-75-110-605000-247013
New Appropriation Required: No
Policy
POLICY ISSUES:
The policy issue here is whether the overall benefits of this project are worth the costs. If we consider the total project cost without additional grants or credits, the payback period for this NWRF floating solar project is 24.9 years. This is longer than staff would normally accept to proceed with a project. However, with regular maintenance, staff expects the equipment to last longer than 25 years and continue to contribute multiple benefits, including offsetting costs for electricity, reduced greenhouse gas emissions, cooler effluent in the Town's reuse water reservoir, and experience/information that will help determine whether additional floating solar panels should be added to completely offset the NWRF's electricity demand. Further, this project is already partially Grant funded with a $900,000 grant from DOLA. Finally, unless Congress changes current law, this project is eligible for a $1.3 million reimbursement credit through the Federal Inflation Reduction Act/Investment Tax Credit (ITC) program. This would reduce the payback period to 17 years when considering the Town's net investment.
Recommendation
STAFF RECOMMENDATION:
Approve the resolution
Body
SUMMARY/KEY POINTS
* As noted above, this project has multiple benefits for the Town, which are covered in more detail in the attached presentation and which staff...
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