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Deerfield board directs staff to prepare LOI for wastewater-plant solar with performance-guarantee model
Summary
After reviewing bids, the board accepted staff’s recommendation to pursue a performance-contracting solar installation at the wastewater treatment plant and directed the village attorney to prepare a letter of intent with Verigee. Staff projects an 11-year payback and cumulative 20-year savings of about $1.8 million before incentives.
The Village of Deerfield Board of Trustees voted to direct the village attorney to draft a letter of intent with Verigee to pursue a performance-contracting, ground-mounted solar installation at the village wastewater treatment plant.
Staff presented analysis of more than a dozen proposals and three delivery models — performance contracting (turnkey with production guarantees), general contracting (village ownership), and power purchase agreement (lease). Andrew, the Community Development/operations presenter, recommended the performance-contracting model because it shifts performance and maintenance risk to the vendor and is, on staff’s analysis, the most economically favorable.
According to staff figures, the village’s 20-year baseline electric utility cost for the wastewater plant is projected at $8.7 million. The performance-contract solar option reduces that projected utility spend to about $6.8 million, yielding cumulative utility savings near $1.8 million over 20 years. Verigee told staff it would guarantee just over $2 million in solar revenue; if production thresholds are not met, the company would be contractually obligated to pay the village the shortfall.
Staff estimated a net project cost after incentives of roughly $686,338 and an 11-year payback; the project’s 20-year positive cash flow was presented as just under $1 million. Staff also noted that roughly $1.2 million of incentive payments are front-loaded in the first three years under current programs, and some incentives depend on product domestic-content requirements. Staff warned that delaying the LOI could jeopardize certain domestic-content incentives and reduce the total incentive value.
Trustees asked about timing, warranties, references, and next steps. Staff said engineers would complete a formal study within about 45–60 days after an LOI and that a final contract would return to the board for approval. The board approved a motion to accept the report and direct attorneys to prepare the LOI and related resolution for the next meeting.
The board was explicit that the LOI and study are steps toward a final contract; the village would pay approximately $22,000 for Verigee’s engineering study if the board later decided not to move forward beyond study. Final contracting authority and any change orders would require subsequent board action.
