For City Council Meeting [September 10, 2019]
TO: Honorable Mayor and City Council
APPROVAL: Rod Foster, City Administrator
FROM: Sean Grayson, Acting Public Works Director
Title
Request City Council to Approve the Issuance of a Purchase Order to Mega Bank in the amount of $150,000 for the annual Operations and Maintenance of the Solar Panel Project.
(ACTION)
Body
BACKGROUND
On May 9, 2017, the City adopted Resolution No. 7122 and approved a contract with Alliance Building Systems, Inc. (Alliance) for the installation of certain solar equipment on City facilities, among other equipment (the "Installation Agreement"), and authorized the City to execute agreements with Holman Capital Corporation and other parties related to the financings.
On November 14, 2017, the City adopted the financing related to the Solar Lease-Purchase and Maintenance Contracts which included two components, solar project financing for the capital project costs and operations and maintenance. The solar project financing of $6,109,579.88 for the capital project costs are budgeted in the Capital Projects Fund, Account No. 300-500-7302-3001-170006-07 and paid through an escrow account held with Mega Bank. The funding of $745,073.00 for the Alliance five-year operations and maintenance contract is included in the Building Maintenance Fund reserves held in fund 770.
ANALYSIS/DISCUSSION
Payments for the operations and maintenance contract with Alliance occur once a year for five (5) years. The first invoice was paid in January 2019 however the payment was made out of the Mega Bank escrow account not out of the City's Building Maintenance Fund. In order to properly fund the escrow account staff requests the issuance of a Purchase Order to Mega Bank in the amount of $150,000 from the Building Maintenance Fund to reimburse the previously paid operations and maintenance contract payment.
Available budget appropriation exists to fund this purchase order and the proper budget adjustments wi...
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