Council reviews 2026–30 capital plan; solar project and urban‑forestry funding hit by federal policy shifts

Council members and staff used a combined regular meeting/work session on July 21 to review the borough’s draft 2026–2030 capital improvement plan and hear updates on two funding matters that could affect projects in the plan.

Project management staff told council that the Center County Solar Group has submitted signed contracts to the solar developer referred to as Prospect 14, but Prospect 14 has paused signing while it evaluates the effect of federal legislation enacted July 4 that changed eligibility and tax‑credit rules. Project partners said the high‑level assessment from the solar industry is that shovel‑ready projects can still be financially viable if they break ground and complete construction before 2027; Prospect 14 requested time to confirm its understanding and provide a timeline.

Council also learned that a planned urban forestry project funded through a pass‑through grant from the U.S. Forest Service (administered by the Urban Sustainability Directors Network) has been cancelled by the federal partner; staff said the borough did not receive invoices and that, to date, the borough has no financial liability, but that the grant cancellation removes roughly $340,000 of expected funding from the borough’s planned work. Staff said the consultant had not completed major deliverables before the termination.

Separately, Manager Fontaine told council staff will present a recommendation at the Aug. 4 meeting to temporarily suspend the borough’s responsible‑contractor ordinance for a small number of imminent bids. Fontaine said the suspension is being considered to avoid losing several million dollars in grant funding that is time‑sensitive; the items explicitly at risk include the Calder Way phase 2 project and an annual paving contract.

Why it matters: The solar partnership and grant decisions affect the borough’s ability to deliver planned energy and tree‑canopy projects in the near term. A temporary suspension of the responsible‑contractor rules would be a short‑term procurement change intended to preserve external grant funding tied to scheduled work.

Key details and next steps

- Solar partnership: Project management team (PMT) reported contracts were forwarded to Prospect 14 in mid‑June; Prospect 14 asked for time while it assesses the implications of new federal rules. The PMT has requested a timeline and clearer communication from the developer. Staff said projects that are shovel‑ready and complete construction before 2027 are likely to retain subsidy eligibility but that the developer is confirming.

- Urban forestry grant: Staff said the pass‑through grant was withdrawn and the borough was not invoiced prior to the termination; estimated lost funding is about $340,000. The consultant had begun preliminary work but had not produced final deliverables.

- Responsible‑contractor pause: Manager Fontaine signaled a staff recommendation for a temporary suspension at the Aug. 4 council meeting to allow timely bidding on projects tied to grant deadlines. Council members asked clarifying questions about timing and scope.

Council members asked staff to maintain open communication with project partners, to return with specific timelines and risk assessments for the solar project, and to present the proposed temporary suspension for council action in August.