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Council removes BESS note issuance from agenda as city attorneys review grant coverage and battery order deadline looms
Summary
Council removed an ordinance to issue notes for a Battery Energy Storage System; City Manager said batteries must be ordered by June 15 and attorneys are determining whether the grant covers an additional $10–$11 million the project may require.
At the start of the June 1 meeting Council voted to remove from the agenda an ordinance that would have authorized issuance of up to $9.5 million in notes to fund a Battery Energy Storage System (BESS) project.
City Manager Doug Lewis later explained the change: after consultation with the city's attorneys the full $27 million grant funding became available and issuance of notes was not immediately necessary. However, he cautioned that the project may ultimately need an additional $10–$11 million and that attorneys are working to determine whether that amount is covered by the grant or will require the issuance of bonds or notes. Lewis said the city needed to order the batteries by June 15, 2026, to keep the procurement on schedule.
Council did not vote on financing at the June 1 meeting. The removal of the ordinance did not cancel the BESS project; instead, it postponed any decision about note issuance while legal counsel confirms grant coverage and procurement deadlines.
City staff will return with legal clarification and any required legislation once attorneys determine the appropriate financing structure.
