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Ceres council approves nearly $5 million GMP for wastewater solar project to cut energy costs
Summary
The council approved a guaranteed maximum price of $4,988,000 and a plan to install roughly 995 kilowatts of solar at the wastewater treatment plant, projected to offset about 50% of plant power and deliver lifecycle energy savings of about $8.6 million.
The Ceres City Council on March 23 approved moving forward with a solar-plus-energy project aimed at reducing the wastewater-treatment plant's electricity costs.
Staff said the proposed solar array is approximately 995 kilowatts (just under 1 megawatt) and will offset roughly half of the plant's power needs. The contract amendment sets a guaranteed maximum price (GMP) of $4,988,000 for the system; staff said the project was budgeted in FY26 and will be paid from the sewer fund rather than the general fund.
City staff outlined a projected lifecycle energy savings of about $8.6 million and estimated net positive cash flow of roughly $3.5 million after federal investment tax credits. The timeline presented called for ordering long-lead items next month, construction from June through November 2026, and operational status by late 2026 or the first quarter of 2027.
Council members discussed warranty terms, the absence of a contingency in the amendment, and the city's exposure if the project were canceled after design work. The motion to move forward with the solar project passed 3'' 2 on a roll call vote.
Staff said standard equipment warranties and a guaranteed maximum price reduce some risks, and that project funding was appropriated in the FY26 budget. Follow-up items include providing comparative cost/savings analyses to council members and finalizing the guaranteed maximum price details for the wastewater-treatment plant expansion.
