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Council warned to weigh buy vs lease on city solar plant; decision could cost $1M+
Summary
Marsh said the city must decide in October–November whether to buy a leased solar array (potentially $1–$1.2 million) or continue leasing; he said SWEDCO indicated the city may not recover capital costs under the current arrangement, so staff will bring details for a council decision next year.
Tom Marsh raised a forthcoming decision about the leased solar array and the economics of buying the plant versus continuing the existing lease. He said staff has discussed credit/rebate issues with the vendor and said the council will need to make a decision around October–November.
"We're gonna be looking at making that decision as to whether we buy the plant or not... That is a potential 1 to $1,200,000 decision if we want to invest in owning that solar plant versus continuing to lease it," Marsh said. He added that a SWEDCO representative told staff the city would likely never recover the capital cost under the current structure.
Marsh urged council members to keep the procurement question in front of them and explained options such as placing arrays on individual buildings or pursuing a different ownership approach. He said staff will provide contract terms and financial scenarios ahead of the decision window.
