Stanwood approves solar power agreement for wastewater plant; council to use ARP funds for interim costs

Stanwood city officials approved a Solar Power Purchase Agreement (PPA) for the wastewater treatment facility after reviewing financing and purchase options presented by Eagle Point Solar.

Eagle Point Solar representative Kent Krous told the council on June 13 that a one-time purchase price for the array would be $238,447, while a power purchase agreement would lower up-front cost with a buyout option after seven years. "The PPA can reduce immediate electric expense and offer a buyout after an agreed term," Krous said during the presentation.

Why it matters: the project was presented as a way to use American Rescue Plan (ARP/SLFRF) funding strategically to reduce long-term utility costs at the wastewater plant. Councilors approved the PPA and associated collateral and assignment documents in August and authorized moving ARP funds temporarily into the sewer fund to cover electric costs until a buyout is pursued.

Council conditions and procurement steps: the city asked staff to check ARP-eligible uses, consult contract lawyers and seek final attorney review on revised contract language. The council also requested standardized kWh comparison sheets to compare vendor proposals fairly. At least one council member asked staff to verify insurance and warranty conditions and to confirm the proposed construction timeline and the start of performance.

Next steps: staff will finalize contract language with the solar vendor, confirm ARP compliance and report back with a final procurement packet, financing schedule and projected first-year savings.