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MEMORANDUM
TO: Board of Directors
FROM: Jan Coppinger, Special Districts Administrator
DATE: March 6, 2018
SUBJECT: (Sitting as Kelseyville County Waterworks District #3, Board of Directors) - Consideration of a Resolution approving Solar Equipment Finance Agreement with TCF Equipment Finance in the Amount of $951,800 and authorize Special Districts Administrator to sign
EXECUTIVE SUMMARY:
On November 14, 2017, your Board approved an agreement between North Coast Solar and Kelseyville County Waterworks Dist. NO 3 (KCWWD#3) for the installation of a 251 kW solar array at the Kelseyville Wastewater Treatment Plant.
At that time, your Board authorized staff to apply for financing with TCF Equipment Finance, a division of TCF National Bank for the purchase of the solar array.
The financing agreement has been approved with the following terms:
Purchase Price of Equipment $754,420.00
Interest Rate 4.95% $197,380.00
Total Cost $951,800.00
The total cost will be paid over ten years at $95,180 per year, which amounts to $7,931 per month.
This array will supply the wastewater treatment plant energy needs. The average PGE bill for the wastewater treatment plant has been over $9,000 per month for the last two years and PGE is increasing each year. When this equipment is installed and in use, KVCWW#3 will realize a savings of over $1,000 per month in operating costs and at the end of ten years, the saving will exceed $9,000 per month.
The calculations above are based on sunny conditions and may vary during long periods of cloudy conditions. Regardless of weather, we do anticipate a slight decrease in operating costs immediately and a large decrease in ten years.
The payments are due annually with the first payment of $95,180 due in September, 2018.
FISCAL IMPACT: __ None _X_Budgeted __Non-Budgeted
Estimated Cost:
Amount Budgeted:
Additional Requested:
Annual Cost (if planned for future years):
FISCAL IMPACT (Narrative):
The solar array will reduce operating costs by approximately $1,000 per month until paid in full. At that time, the reduction in operating costs will exceed $9,000 per month.
STAFFING IMPACT (if applicable):
N/A
Recommended Action
RECOMMENDED ACTION:
Staff requests your Board adopt resolution approving Solar Equipment Finance Agreement with TCF Equipment Finance in the Amount of $951,800 and authorize Special Districts Administrator to sign.