By Philip Haldiman, Independent Newsmedia

Peoria is about to implement an expansive energy saving project at a number of their facilities and campuses that will eventually pay for itself and save $330,000 a year.

City Manager Carl Swenson said the project will lessen the burden on the taxpayer by exercising environmental and financial stewardship.

“We have a very focused program on sustainability and environmental stewardship and, of course, we are also noted for our fiscal stewardship and this is a place where those two things come together,” he said.

The Peoria City Council approved a budget amendment to enter into a contract with Ameresco, an energy efficiency and renewable energy company, to implement energy efficient LED lighting retrofits and solar energy projects at 13 city-owned buildings, including City Hall, 8401 W. Monroe St., Peoria Center for the Performing Arts, 10580 N. 83rd Dr., Sunrise Mountain Library, 21109 N. 98th Ave., and seven fire stations.

This will include the installation of solar panels on covered parking canopies and on the ground at multiple city sites.

Citizens may track the solar production online as an educational and awareness tool.

Lisa Estrada, economic efficiency and sustainability manager, said solar systems could allow for at least two, and as many as four net-zero sites, where the amount of energy used is offset by the amount of energy generated.

The project puts the city in a good position to reinvest money already spent on energy into city facilities and infrastructure while also hedging the city against rising utility rate increases, Ms. Estrada said.

“We talked about return on investment and staff ensured that the project was cost neutral and cost positive,” she said. “The return on investment will be in less than 20 years and (the projects) will be completely self-funded through guaranteed energy savings.”

But first the city will invest $6.3 million for construction and installation of the solar systems and lighting retrofits, as well as operation, maintenance and other costs.

The projects will be funded through a number of mechanisms, including a purchase agreement, cash and Federal Clean Renewable Energy Bonds, which come with an interest rate subsidy to lower borrowing costs for the solar projects.

Ameresco, like a general contractor on a capital improvement project, will make a negotiated fee for managing the project construction.

At end of the financing period, which is 20 years, the city will own the assets.

Upon council approval of the loan documents in August, construction can begin in September with an expected completion date of Spring 2018.

Vice President Robert Georgeoff said Ameresco applauds Peoria’s leadership for their vision and commitment to implement an innovative energy solutions program that is good for the environment and the city’s bottom line.

“This project will help the city to continue to make tremendous strides towards achieving its sustainability goals and commitments in a fiscally responsible manner,” he said.

Ameresco will provide guaranteed savings to the city based on an audit completed last month.

Chief Financial Officer Brent Mattingly said the audit found the new projects will be self-funding through energy savings from the solar panels and lighting retrofits. The city and Ameresco staff will closely measure and verify energy savings and performance of the equipment and controls to ensure Peoria meets the guaranteed annual savings, he said.

"If the city does not save that money, Ameresco will either make improvements or compensate us for the difference,” he said.

This project initially looked at 23 city buildings and selected eight city facilities for solar and 14 city facilities for lighting retrofits. The selected projects met the internal decision making criteria based on a 20-year or less payback period. But Ms. Estrada said the city may consider building on the success of this first project once complete.

“Since this is a first for the city of Peoria, we wanted to take a conservative approach by evaluating the audit findings based on individual paybacks,” she said.

Mayor Cathy Carlat said she’s looking forward to seeing the partnership between the city and Ameresco.

“As the cost of energy soars, I’m proud to see us diversify our resources while saving money,” she said. “Using a renewable energy source as logical as the Arizona sun will result in energy savings and cost savings. It doesn’t get much smarter than a project that will pay for itself.”

 

The project’s financial benefits
• Supports investment without additional burden on taxpayers
• Selected sites will completely pay for this project — no net cost increase
• Project is budget-neutral and cash flow positive to the city
• City retains all solar assets
• Self-funds the operation and maintenance for solar assets

 

Program goals
Program goals are to implement energy efficiency LED lighting retrofits and solar energy projects at the following city facilities and campuses:
• City Hall, 8401 W. Monroe St.
• Technology Center, 8343 W Monroe St.
• Rio Vista Recreation Center, 8866 W. Thunderbird Road
• Peoria Center for the Performing Arts Center, 10580 N. 83rd Drive
• Development and Community Services building, 9875 N. 85th Ave.
• Sunrise Mountain Library, 21109 N. 98th Ave.
• Beardsley Water Reclamation Facility, 111th Avenue and Beardsley Road
• Fire Station 191-197
• Fire Fleet Services
• Pinnacle Peak Patrol Services