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Moraga Council approves $1.7M energy reliability project with internal loan to bridge $675,000 gap
Summary
The council approved a town facilities energy reliability project covering three sites (council chambers, town hall, Moraga library) that adds solar arrays, replaces generators sized for 3–5 days of outage, funds parking-lot and roof work, and authorizes a 20-year 0% internal loan (not to exceed $675,000) to close the funding gap; staff said federally available direct-pay incentives and a December deadline affect the project timeline.
The Moraga Town Council on April 8 adopted a resolution to move forward with a town facilities energy reliability project that combines rooftop and ground-mounted solar arrays, emergency backup generators, parking-lot work and a town-hall roof replacement, and authorized financing to cover a revised project budget of approximately $1.7'million.
Interim Public Works Director and Town Engineer Nate Levine described the final design as a three-site project: solar panels on the town-hall roof, solar arrays behind the Moraga library (including minor tree trimming), and generator replacements at council chambers, town hall and the library. Levine told the council the generators would be sized to power essential systems for roughly three to five days without refueling and that the town-hall roof, recently found to be past its useful life, raised the total project cost to roughly $1.74 million.
Katie Bruner, the town's Administrative Services Director, presented financing options and recommended a 20-year, 0% internal loan from the Palos Colorados fund to the general fund not to exceed $675,000 to bridge the funding gap; staff projected the town would still realize roughly $220,000 in net savings over a 20-year period after accounting for operations and maintenance and applying the federal investment tax credit.
John Burdett, vice president of development for Excite Energy, urged approval and stressed the timing: the federal incentives that enable a significant direct payment and grant support for solar remain available now, and delaying action could jeopardize those benefits. Burdett said the town could receive up to 40% of the solar arrays' cost through federal programs if deadlines are met. Nate Levine also warned the council that the town needs to achieve a system "go live" before December 31 to secure the direct-pay benefits and that schedule slippage could put those incentives at risk.
Councilmembers asked detailed questions about schedule risk, contingencies, equipment sourcing, warranties and tree impacts. Staff said they have approximately $150,000 in overall project contingency and have placed a 30-day hold on procurement of key equipment; Excite Energy said it proposes tier-one panels with 25-year power warranties and a typical 0.5% annual degradation guarantee.
The project will affect existing redwood trees adjacent to the library site. Levine said the current configuration reduces prior projections of large tree removals (an earlier rooftop option would have required removal of more trees); for the ground-mounted array staff estimated roughly four to seven trees may be removed for the solar work and that a separate arborist and foundation/root study will determine additional removals needed to protect foundations and utilities. Councilmembers requested that any hazard/arborist report and mitigation plantings be made public.
On fuel for the generators, staff said they are pursuing agreements for a renewable diesel supply used by regional transit operators; the fuel will be stored on-site and the town will secure procurement agreements for refilling as needed.
After public comment and deliberation, the council voted to adopt the proposed resolution authorizing the agreement with Excite Energy, authorizing the town engineer to execute change orders within contingency, appropriating additional funding to CIP 23-108, and authorizing a 20-year 0% loan from the Palos Colorados fund to the general fund not to exceed $675,000. The motion passed by roll call vote.
Staff said the installation timeline, if the project kicks off in May, would target generator installation beginning Feb. 27 (covering a 2–3 month window) and solar installation in June 2027, with an expected system turn-on in November 2027 to meet the December federal deadline. Staff also committed to bringing hazard-tree and foundation assessments and any replanting plans back to the public record as the project moves forward.
The resolution passed at the April 8 meeting; the council did not specify further contract details in the public action beyond authorizing the manager and engineer to finalize agreements and change orders within approved contingencies.
