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Moraga council selects Option 3 for facilities energy and resiliency project; staff directed to finalize financing
Summary
The council approved staff’s recommendation (Option 3) to add backup generators and rooftop/behind‑building solar at town facilities, using $900,000 of available funds and a projected $480,000 financing need; the project was directed to proceed for final scoping and financing work.
Interim Public Works Director Nick Levin (speaker 21) presented an updated plan for the Town Facilities and Energy Reliability Project that prioritized resiliency (backup generators) and site‑appropriate solar while avoiding battery storage under current economics (NEM 3 rules).
Levin explained four options: do nothing; generators only; Option 3 (generators plus rooftop solar at town hall and behind‑library arrays, no batteries at the courtyard); and Option 4 (Option 3 plus battery storage). Levin and consultants said the PPA economics are not attractive for Moraga sites under NEM 3 and that batteries increase upfront costs and maintenance obligations; staff therefore recommended Option 3 as the best balance of resiliency and cost. Levin summarized the financial model: total project cost about $1.4 million, $900,000 available, financing need of roughly $480,000, and a 20‑year loan horizon with potential positive cash flow over time when factoring federal direct‑pay incentives.
John Burdette of Excite Energy (speaker 22), the project consultant, said procurement timelines are consequential: to secure federal investment tax credit direct‑pay status the program would need to be implemented by 2027; lead times for long‑lead items (battery systems) are the most significant procurement risk. The consultant noted solar modules and generators are generally available, with panels typically secure and generators showing manufacturing lead times in the 20–30 week range.
Council discussion touched on roof warranties, future‑proofing for batteries, tree trimming and impacts at the library site, emergency cooling centers and coordination with nearby facilities, and the possibility of using renewable diesel for generators. After questions and public comment (none on this item), a motion was made to receive the report, select Option 3, and direct staff to finalize scope/schedule/financing and return for contract award under government code procurement rules. The motion passed by voice vote; staff will present a financing plan and return with contract documents.
