Airport expecting more than $2 million in energy savings as it enters into solar contract with Chesterfield, Mo., firm

QUINCY — The Quincy City Council approved Monday night a contract for $1,427,744 with Veregy of Chesterfield, Mo., to design and construct a solar array at Quincy Regional Airport.

The solar array will provide power to the terminal, built in 1969. The terminal accounts for an average of $60,000 a year in utility costs, which consists of 60 percent of the airport’s total electric budget. Any power made and not used at the terminal will be sold back to the grid at the wholesale price. 

Veregy designed the project, paid application fees and put down collateral at no cost to the city. It will oversee the construction of the project. When the airport takes over ownership of the array, Veregy will provide all ongoing monitoring and maintenance for its useful life. Veregy also guarantees the city will save its project cost in the first 16 years, resulting in at least 14 warranty-covered production years and more than $1.2M in additional savings after the project costs are covered.

Balance Solar, an investment firm investing in solar projects across Illinois, will own, maintain and insure the array for the first six years so it can take advantage of the state’s green energy tax incentives. The city, a non-taxed entity, can’t utilize those tax incentives. In exchange, Balance Solar will pay 15 percent of the project cost. The city will take ownership at the end of the six-year term.

Total net cost to the city will be $841,188

“My general goal at the airport is to gradually reduce our reliance on the general fund,” airport director Sandra Shore said. “This is a great way to start. Using capital funds will immediately see some guaranteed savings towards our utility bills, which are usually about $100,000.

“By generating our own solar power, we will be greatly reducing (electric use). We’re in an environment now where there’s plenty of incentives to do that.”

Balance Solar would pay $214,162. The city would receive Illinois Superior Clean Energy Management incentives worth $372,394 over the first five years. The total net cost to the city will be $841,188.

Self-generated solar power is expected to reduce the airport’s monthly utility costs at a guaranteed rate of $37,480 in the first year. The projected savings to the general fund throughout the warrantied 30-year period is $2,117,688.

Alderman Jeff Bergman, R-2, asked how the guarantee of savings would work. Corey Harper with Veregy said an annual energy bond is posted to guarantee production is met.

Bergman asked what happens if Veregy falls short in its guarantee. Harper replied, “The short answer is we write a check.”

City to pay $15,500 for wildlife management at airport

Aldermen also voted to approve a $1,049,449 grant of relief funding from the American Rescue Plan Act. The money will fund operations and maintenance expenses without having to draw from the airport’s general fund.

Aldermen also approved a cooperative services agreement with the U.S. Department of Agriculture to provide wildlife management for $15,500. 

“Our required annual FAA training has to be done by a qualified wildlife biologist,” Shore said. “They come out at least twice a month, once during the day and once at night, to do wildlife surveys. They do active wildlife control, and they give us recommendations and plans. It’s actually required that we do a full blown wildlife hazard assessment every five years. If you get an agreement like this together, then that is waived. Those can cost up to $60,000 or more. It’s just a different way to do what we’ve already done to stay compliant.”

Aldermen also approved:

• A revocable permit for encroachment of a city right-of-way from Ilija Cucuk, owner of Tiramisu Restaurant, 131 N. Fourth. Cucuk plans to attach a temporary vestibule to the exterior of the building during the winter months. The enclosure will encroach on the city-owned sidewalk. 
• A revocable permit for encroachment of a city right-of-way from Rob Gengenbacher, owner of Glass One, 600 Jersey. Gengenbacher plans to install an overhead sign on the property.
• The criteria for anniversary gifts from the city and for retirement eligibility. The city recognizes anniversaries at 1, 5, 10, 15, 20, 25 and 30 years, along with any additional increments of five years. Gift certificates from a local organization would be $10 for year 1, $25 for year 5 and $50 for year 10. The amount increases by $25 increments for each additional five-year mark. City employees with 10-19 years of service at retirement will receive $100 gift certificate, 20-24 years a $150 gift certificate, 25-29 a $200 gift certificate, and 30+ years a $250 gift certificate. To be considered a retiree of the city and eligible for the retiree life insurance policy, an employee must have 10 years of service with the city, be eligible for IMRF pension and be at least 55 years of age; or have 20 years of service with the city, be eligible for a police or fire pension and at least 50 years of age.