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Recommendation of approval of a contract to install solar photovoltaic systems at the Police Station and Potter Road Pumping Station
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Submitted by:
David Simpson, P.E.
Department
Public Works
A. Issue
As the City of Wauwatosa continues to evaluate cost effective strategies to become a more sustainable community the Department of Public Works continues to investigate renewable energy options for City owned facilities. Included in the City's capital improvement budget is funding for the installation of solar photovoltaic (PV) systems at the Police Station and the Potter Road Pumping Station. At this time we are asking for approval to enter into a contract for installation of these systems.
B. Background/Options
As solar PV technology advances and costs of goods are reduced the payback period for solar projects continues to improve. Because of this and given the success of the solar PV projects located on the City Garage and the City Hall/Civic Center/Library buildings the City has budgeted for three additional solar PV projects, two of which are included in this request. The first project includes the installation of solar panels on the Police Station roof as well as ground mounted panels immediately north of the Police Station parking lot. The second project includes the installation of ground mounted solar panels at the Potter Road Pumping Station, which is an ARPA funded project.
A request for proposals was issued on May 1, 2024 and two proposals were received on June 7th, 2024. Proposals for both systems ranged in cost from approximately $1,250,000 to approximately $1,493,000 and were reviewed by City staff. Many factors were considered including system size, cost, installer experience, time to completion, component selection, and reliability. After considering all these factors we are recommending the City enter into a contract with Arch Electric. Arch Electric has proposed using quality solar PV equipment with the lowest cost and a timeline that will allow us to begin reducing our energy costs by early 2025.
The cost breakdown and project statistics are as follows:
|
Police Station |
|
Potter Pumping Station |
|
|
Arch Electric Project Cost: |
$717,051 |
Arch Electric Project Cost: |
$533,556 |
|
Focus on Energy Grant: |
$18,815 |
Focus on Energy Grant: |
$13,189 |
|
Federal Credit: |
$286,820 |
Federal Credit: |
$213,422 |
|
Total Net City Cost: |
$411,416 |
Total Net City Cost: |
$306,944 |
|
City Budget: |
$700,000 |
City Budget (ARPA): |
$375,000 |
|
Contingency/Other PV: |
$288,584 |
Contingency: |
$68,056 |
|
Payback Period: |
Approx. 10.7 Years |
Payback Period: |
Approx. 10.4 Years |
|
Energy Consumption: |
Approx. 74% Solar |
Energy Consumption: |
Approx 100% Solar |
C. Strategic Plan (Area of Focus)
Priority Area Three: Infrastructure & Priority Area Five: Quality of Life
D. Fiscal Impact
The budgets for these projects are included in the table above. Both are under budget after incentives which will be received after the projects are paid for and commissioned. I would like to explore the option of adding solar to the 116th Street Park project with the remaining budget from the Police Department Solar PV Budget. If the system size is small enough and the cost is low enough we may be able to add that into this project’s scope at a later date.
E. Recommendation
Authorize entering into a contract with Arch Electric for the installation of solar photovoltaic systems at the Police Station and the Potter Road Pumping Station in the amount of $1,250,607.