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Council approves $10.3 million energy modernization program to capture $3.4 million in federal incentives
Summary
The council approved resolution 2026-42 to begin a $10.3 million citywide energy modernization program — focused on HVAC, lighting, building controls and solar — that staff say is eligible for about $3.4 million in federal incentives and could produce roughly $15.7 million in lifecycle savings.
A majority of the Imperial City Council voted to authorize a citywide energy infrastructure modernization program and to meet an upcoming federal incentive deadline, adopting resolution 2026-42.
The proposal presented by a Climate Tech representative described a $10.3 million package of improvements that would replace aging HVAC systems, standardize building automation and lighting on LED controls, install electric-vehicle charging stations, upgrade sports-field lighting and deploy solar at high-usage municipal sites. The presenter said the program “is eligible for $3.4 million in incentives” and described an estimated lifecycle savings figure of about $15.7 million.
Ryan Croll, the city’s grants administrator, outlined the relevant federal incentive rules under the Inflation Reduction Act and stressed the importance of a July 4 safe-harbor purchase to secure the solar tax/credit incentives: “once your solar is online and operational and running, you’re able to apply through the IRS … you would get a direct check back and it would be for a base of 30% and there was also additional 10% kickers.” He said buying panels before the safe-harbor date would allow the city four years to finish construction and preserve the more generous incentive schedule.
Council members pressed staff on financing options and near-term budget impacts. Staff said financing proposals, use of reserves or re-prioritization of capital projects would be needed to pay project costs up front even though projected savings would cover debt service later. A presenter for Climate Tech reiterated that their contract includes monitoring and a performance guarantee; if projected savings were not achieved, Climate Tech would reimburse the city for the shortfall, according to staff remarks at the meeting.
City staff and Climate Tech recommended prioritizing solar at the wastewater treatment plant (the largest system) and smaller arrays at the water treatment plant, city hall and the library where load and available space make systems cost-effective. Council members raised space constraints at the water plant and emphasized choosing sites that pose no conflict with future development plans.
The council voted to approve the measure. The mayor announced, “Motion carries 5.” Staff said the next steps are to authorize procurement of the panel purchase required to meet the safe-harbor deadline and to return to council with financing proposals and contract details.
Votes at a glance: the resolution authorizing the energy program (2026-42) was adopted by the council (motion carries 5).
