SUBJECT/RECOMMENDATION:
Title
Authorize the acceptance of the U.S. Department of Energy (DOE)’s Golden Field Office FY23 Congressionally Directed Spending award, Clearwater Solar Panel Project, for $949,500 and authorize the appropriate officials to execute same. (consent)
Body
SUMMARY:
The city of Clearwater was awarded $949,500 from the U.S. Department of Energy’s (DOE) Golden Field Office in July 2023 under Award No. DE-EE0010780, entitled “Clearwater Solar Panel Project.” The award requires a non-federal cost share of $1,046,848 and will fund the design, purchase, and installation of solar panels at selected city-owned facilities.
The facilities identified for this funding are City Hall, the Long Center, Countryside Library, and North Greenwood Recreation Center. Solar installations at City Hall are already incorporated into the Guaranteed Maximum Price (GMP) construction contracts. The Long Center’s Guaranteed Maximum Price (GMP) construction contract included a smaller array, however the larger option will now be installed to leverage grant funding which is able to be absorbed in the current Long Center project budget. Both of these facilities will be managed through their respective Construction Manager at Risk (CMAR) firm within their respective approved budgets.
The proposed installation on the roof top of City Hall is projected to provide an initial annual electrical savings of $21,373 and a term savings of $610,657 over 30 years. The panels will be producing an estimated 194,300 kilowatt-hours of power annually which equates to 27.54% of the total power estimated to operate the facility. The total cost to install solar at this facility is $356,217, with a projected 7.8% Internal Rate of Return without the grant. The payback period with all incentives is 6 years, or 15 years without incentives.
The installation on the roof top of the Long Center is projected to provide an initial annual electrical savings of $43,612 and a term savings of $2,479,577 over 30 years. The panels will be producing an estimated 437,838 kilowatt-hours of power annually which equates to 27.13% of the total power estimated to operate the facility. The total cost to install solar at this facility is $688,155, with a projected 6.7% Internal Rate of Return without the grant. The payback period with all incentives is 7 years, or 18 years without incentives.
The solar installations for Countryside Library and North Greenwood Recreation Center will be completed under a separate CMAR contract with Bandes Construction and will be presented to Council approval as a companion item to this agenda item.
Funding for solar installation is available in the City Hall and Long Center projects which is funded by revenues from the General Fund and Penny for Pinellas. Any remaining funding needed to complete the project will come from project C2106, Greenprint Implementation, which is a reinvestment of prior IRS Elective Pay Rebates.
APPROPRIATION CODE AND AMOUNT:
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USE OF RESERVE FUNDS:
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STRATEGIC PRIORITY:
High Performing Government
Objectives 1.5 Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers.
Environmental Stewardship
4.2, Adopt renewable resource usage and waste reduction practices to ensure a vibrant City for current and future generations.