This parcel of land located on the northside of North Road in Westfield could soon be home to one of the largest solar array farms in the state. (Photo by chief photographer Frederick Gore)
WESTFIELD – The City Council voted unanimously last night to authorize Mayor Daniel M. Knapik to negotiate two contracts for solar projects which will provide the city with some revenue, some power, and cut maintenance costs at two municipal facilities.
The council also authorized Knapik to negotiate a lease with a solar company to use the capped Twiss Street landfill as a solar panel farm to generate power for the city.
The city has selected a firm to construct a two-megawatt solar farm on top the 10-acre landfill site, Axio Power Inc. in June of 2011. That firm, which had done several landfill solar projects, was acquired by SunEdison Inc. a leader in solar power and renewable energy programs.
City Advancement Officer Jeff Daley presented details of the projects to the council’s Legislative & Ordinance Committee before the regular council session.
“Solar projects on landfills are becoming more popular, more economical,” Daley said. “SunEdison provides the best quality for this project.”
“You have to take special care because you can’t damage the cap on the landfill.” he said.
Daley said that because major solar generation projects are so new there is not an evaluation assessment model available to gauge the value of the equipment and that the Department of Revenue has recommended cities negotiate a payment in lieu of tax (PILOT) agreement.
Daley said the city will be paid a lease of $100 per acre, a PILOT of $10,000 a year, as well as buying the power, up to two megawatts, at a beneficial rate for use in city buildings and will have cost-avoidance because SunEdison will take over maintenance of the capped landfill site, maintenance now done by the Health Department.
“The city will buy that power at a lower rate, power for municipal buildings,” Daley said.
Ward 2 Councilor James E. Brown Jr., chairman of the L&O, said that the maintenance could reduce the Health Department’s line item by 10 to 15 percent, and could increase to 70 percent depending on the footprint of the site.
Ward 4 Councilor Mary O’Connell, also an L&O member, said the city will generate revenue and gain other benefits by leasing a “non-performing city asset” to the solar company.
The second solar farm site is located on 35 acres of land on the north side of North Road, property purchased by the Federal Aviation Administration and administered by the Barnes Regional Airport Commission.
Daley said the city is negotiating the PILOT, but that the Airport Commission will negotiate a lease with a second solar firm, Borrego Solar Systems, for 35 acres of land controlled by the Airport Commission.
Borrego is planning to construct a 4.6 megawatt solar array on that property, but the relationship is different between the company and city than the smaller SunEdison facility where the city will be the dedicated buyer which will “significantly” reduce the city’s energy costs, Daley said.
“The Twiss Street lease is $100 per acre because the city is getting the benefit of the power,” he said.
The city is negotiating a PILOT with Borrego at a much higher rate, $10,000 per megawatt of generation capacity, which would generate $46,000 a year in PILOT revenue as well as lease payments negotiated by the Airport Commission.
“The reason we’re looking at $10,000 is that there is no guaranty that the Westfield Gas & Electric Department will be buying that power,” Daley said. “If the G&E does not have a dedicated buyer, the vendor can market that power outside the city.”
All three resolutions were approved by 12-0 votes.
For video of the city council meeting, click here.
