LAKEPORT >> A progress report regarding a proposed solar energy field was presented to the Lakeport City Council this week.
The project stems from the council’s July 14 meeting last year, during which Siemens Industry asked the council to consider an audit for the installation of a solar array. Council members directed staff to research available programs and funding options. Mike Adams, who was hired to lead the project because of his extensive experience in project management with Mendocino College, said that Phase 2 of planning has been completed.
Preliminary planning was completed in October of last year and included identifying funding options and PG&E solar program options; developing a schedule, budget and site selection criteria; investigating potential sites and reviewing projected utility loads and topography and soil at potential sites.
Phase 2 involved adopting the planning budget, conducting a soil investigation, receiving system design recommendations from a solar electrical engineer, analyzing the cost and benefit of the project and developing a final project budget.
“The project is really about two things it’s is about conservation and cost savings for the city,” Adams said.
One potential site is located on Linda Lane and the other is located off of Highway 175.
Adams proposed a prepaid power purchase agreement for the project, which means the system is installed and owned by investors with the city purchasing the system after five years.
The total estimated cost of the project is approximately $2.7 million, but would be purchased by investors at 83 percent of the total, or approximately $2.2 million.
“The city would use power generated and pay debt services,” Adams explained.
Annual loan payments paid to the investors by the city will total a little more than $262,000, with an additional $53,000 buyout being included in the fifth year’s payment. The debt would be completely paid off after 10 years, Adams added.
Savings and benefits are projected to increase exponentially each year, accounting for an estimated annual inflation from PG&E of approximately 3.4 percent.
An estimated nearly $312,000 in PG&E savings is projected, with nearly $50,000 of that being net savings to the city after its loan payment.
Next steps for the solar project include contracting for electrical design schematics, as the PG&E program requires them for application submission. Developing design specifications, as well as sending out a request for proposals for the project are also future steps.
If everything goes according to the projected schedule, development of design specifications will be completed by the end of May. A request for proposals will be sent out in June, with awarding of the contract taking place in July.
The project is anticipated to be completed by the beginning of November, according to Adams.
Contact J. W. Burch, IV at 900-2022.
