LAKEPORT, Calif. – The Lakeport City Council has given city staff the go ahead to pursue the next steps in the ongoing effort to create a municipal solar project that is expected to save millions of dollars in electricity bills.

Mike Adams, who retired as Mendocino College's facilities planning director, has been consulting with the city on the project.

At the council's meeting last Tuesday, Adams gave the council an update on the options available to the city, with Finance Director Dan Buffalo following up by asking for the council to select a financing option and direct staff to negotiate with the most suitable financier.

Adams said the first and second phases of planning on the project have been completed.

The first included reviewing utility loads, selection criteria, funding options, developing a planning schedule and budget, investigating potential sites, reviewing existing site topography and soils, and identifying solar program options through Pacific Gas and Electric.

In the second phase, a planning budget was adopted, the first phase soils investigation was conducted, a solar electrical engineer was contracted for system design recommendations, a cost and benefit analysis for the recommended system was developed, as was a final project budget.

The project is expected to cost between $2.4 million and $2.9 million, with Adams explaining that the preferred option is a prepaid power purchase agreement, which calls for the project to be installed and owned by the operator at an estimated cost of $2.9 million.

The city can purchase the project after five years from the investor for 82 percent of the total cost, or about $2,378,000, according to Adams.

He said the city's projected net savings in electricity bills over a 25-year period is estimated at approximately $8,122,146.

The 1.150-megawatt system will have two segments – a 750 kilowatt system at a city site meter location on Highway 175 and a 375 kilowatt system at the city's Linda Lane pump station meter, Adams said.

Mayor Marc Spillman asked where Lakeport is in the curve when compared to other municipalities pursuing solar projects.

Adams said many cities have completed solar installations. “It's a large investment. It's not a small investment, so for a smaller city it's a bigger deal.”

He said it took a few years for Mendocino College to carry out its own solar project.

Adams noted, “The good thing is, you've got land. A lot of them don't,” he said, explaining that many cities have to place the utilities up on roofs, an option he doesn't like because roofs need maintenance.

Buffalo said city staff was proposing a hybrid approach of a prepaid power purchase agreement with a solar company that allows the city to do a buyout, which would allow the investor to capitalize on depreciation and tax breaks. He said he believed that option was the most beneficial to the city and its residents.

He said the city's sewer, water and general fund would all need to participate in the purchase because of how the city's energy costs are accounted for in the budget.

Council members agreed with the proposal.

Councilman Martin Scheel said the project offered the council a way to save substantial money for taxpayers.

“This is the kind of thing that the public likes to see,” said Councilman Kenny Parlet. “This is the kind of thing that we need to do to be environmentally sound, to be proactive and try and do the right thing for the long term.”

Scheel moved to approve the proposal, which was seconded by Councilwoman Stacey Mattina and approved unanimously by the council.

Mattina said she was excited to plan for something that will help the city so far into the future.

In other business, the council gave conditional approval to Mendocino College's request to use Library Park for its inaugural Northern California Shakespeare Festival production of “Midsummer Night’s Dream” on July 30 and 31.

“I'm excited,” said John Tomlinson, a drama instructor at Mendocino College's Lake Center in Lakeport.

“It's been awhile since we've been able to do a play here through the college,” said Tomlinson.

He said there has been good reception for the idea of the “Shakespeare at the Lake” production, which he will direct. Richard Smith, who was on hand with a mock up of the stage design, will be the producer.

Tomlinson said the production will be centered south of the Library Park gazebo, with the audience facing the lake.

“You guys are going to have a beautiful backdrop there,” said Spillman.

Parlet asked if they have addressed sound issues in the open air location, and Councilwoman Mireya Turner asked about possible conflicts with nighttime construction that's due to be under way at that point on the Downtown Improvement Project's second phase. Community Development Director Kevin Ingram said he would look into the latter issue.

“Jackhammers and Shakespeare just don't go together,” said Spillman.

Mattina moved to conditionally approve the application, which Turner seconded and the council approved 5-0.

Also at the March 15 meeting, the council met new police officer trainees Andrew Welter and Dale Hoskins, heard a presentation on the Lake County Economic Profile Report, presented the Government Finance Officers Association’s Distinguished Budget Presentation Award to Buffalo, adopted resolutions to reaffirm the necessity of AB 1600 development impact fees and establishing regular meeting dates of the Municipal Financing Agency of Lakeport, and adopted a resolution authorizing the city manager to submit payment requests of the administration of the Beverage Container Recycling Payment Program.

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