City Council Agenda Report
June 18, 2024
TO: Honorable City Council
FROM: Jesus M. Gomez, City Manager
BY: Glen Kau, Director of Public Services/City Engineer Jana Stuard, Director of Finance/City Treasurer
SUBJECT: RESOLUTION NO. 24-38 - BUDGET TO ESTABLISH FUNDING FOR SOLAR ENERGY PROJECT NO. 7871 - NON-LOW INCOME COMMUNITY FACILITIES SOLAR PANELS AND PROJECT NO. 7874 - LOW INCOME COMMUNITY FACILITIES SOLAR PANELS – PHASE II
Background:
The City’s Strategic Plan outlines the City’s commitment to sustainability and climate resistance.
To do so, staff worked with Syserco Energy Solutions (“SES”), a qualified energy services company, to develop an analysis of opportunities for the City to upgrade its facilities to achieve energy efficiency and cost savings measures for the City.
On November 7, 2023, City Council adopted Resolution No. 23-68 authorizing the City Manager to finalize negotiations with SES and acquire the necessary conservation equipment to implement the energy conservation measures through the Sustainability, Energy Efficiency Infrastructure Improvement Project. The City Council also authorized the City Manager to secure necessary financing for the solar panel installation component of the project (“Project”).
On February 6, 2024, City Council adopted Resolution No. 24-08 engaging a finance team for the financing of the Project that covers six locations and has been divided into two separate City projects depending on site qualification for Low-Income Community (LIC) credit, as follows:
•Project number 7871 – Non-LIC Facilities Solar Energy project includes installation of solar photovoltaic panels at City Hall, Transit Center and Social Services facilities. •Project number 7874 – LIC Facilities Solar Energy includes installation of solar photovoltaic panels at Sports Complex, Aquatic Pavilion and Well 10 facilities.
City Council
Resolution No. 24-38 – Budget for Solar Project Nos. 7871 and 7874 June 18, 2024
Page No. 2
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6 On May 28, 2024, City Council adopted Resolution No. 24-21 authorizing the City to enter into a Solar Systems Equipment Lease Agreement with Webster Bank to secure $5,000,000 for construction of Project No. 7871 – Non-LIC Facilities Solar Energy. Loan proceeds will become available after the closing date of June 12, 2024.
As Project mobilization can begin mid-June and payments to SES will need to be made before the end of Fiscal Year 2023/24, a budget for both projects needs to be established as follows:
Project Solar Project Sites Fund 433Loan Proceeds Fund 227Prop C Fund 747Building Renovation
Fund 702Water Fund Total Project Budget
Non-LIC FacilitiesCIP# 7871
City HallTransportation Center Parking LotTransit / Public Services FacilitySocial Services 5,000,000$ 2,162,000$ - - 7,162,000$
LIC FacilitiesCIP# 7874
Sports Center (NASC)Aquatic PavilionWell # 10 - - 4,258,000$ 1,320,000$ 5,578,000$ TOTAL BUDGET PER FUND 5,000,000$ 2,162,000$ 4,258,000$ 1,320,000$ 12,740,000$ Fiscal Impact:
In addition to the SES cost of $12,000,000, the requested budget of $12,740,000 includes a 7% contingency. The City will use $5,000,000 of Lease Agreement loan proceeds and $2,162,000 from the Prop C fund to install solar arrays at Non-LIC Facilities. The LIC Facilities Project is funded from the Building Renovation Fund in the amount of $4,258,000, and $1,320,000 will be funded from the Water Fund. Eighteen months after project completion, the City will receive about $4,854,000 federal energy tax credits.
Citizens Advised:
N/A
Strategic Plan 2023 Implementation:
Said improvements align with the City of Norwalk’s Strategic Plan Goals 2, 3 and 4; work in partnership with the community, re-invest in aging infrastructure; maintain the City’s financial resiliency, build great public destinations, and support sustainability and climate resilience throughout the community.
Recommended Action:
Staff recommends City Council adopt RESOLUTION NO. 24-38, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF NORWALK AUTHORIZING A BUDGET TO ESTABLISH FUNDING FOR SOLAR ENERGY PROJECT NO. 7871 - NON-LOW INCOME COMMUNITY FACILITIES City Council
Resolution No. 24-38 – Budget for Solar Project Nos. 7871 and 7874 June 18, 2024
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6 SOLAR PANELS AND PROJECT NO. 7874 - LOW INCOME COMMUNITY FACILITIES SOLAR PANELS
Attachments:
Resolution No. 24-38