Board approves $4.25 million purchase of district solar assets after staff says it will "pay for itself" in five years

The Jefferson Union High School District board voted to approve an agreement to terminate the district's existing power purchase agreement and purchase the district's solar energy system for $4,250,000.

Superintendent Presta presented analysis from ARC Alternatives and recommended the purchase, saying the price "is expected to pay for itself within 5 years through avoided energy costs" and that, "over the 1st 10 years of ownership, the district is projected to realize more than 5,700,000 in net savings compared to continuing under the existing agreement." Presta added that financing the purchase with facilities bonds would "immediately result in about $900,000 of annual savings to the general fund."

The proposal described a change from a long-term power purchase agreement to direct ownership. According to staff, the district entered the original PPA in 2009 and had ARC Alternatives analyze whether buying the assets outright would improve the district's long-term fiscal position. The presentation said the upfront purchase price is expected to be offset by lower energy costs and produce net savings over the decade following purchase.

A board member moved to approve the solar asset purchase agreement and another trustee seconded. The motion passed on a voice vote.

The board's action directs staff to finalize the agreement with PES Solar Project 4, LLC and pursue termination of the existing contract so ownership of the solar arrays can transfer to the district. The board did not specify exact financing terms in the public discussion; staff noted facilities bonds as the proposed funding source for the purchase.

Next steps include completing the purchase agreement and any required contract-close actions; staff did not announce a public timeline for finalization during the meeting.