Given the current economic climate, I could see the terms only getting better as I'm sure there are fewer entities out there--corporate or government--willing to fork over serious dough for a larger capital project. But perhaps I'm misjudging the market.
If I were the mayor, however, I'd be reluctant to sign any deal that didn't at least match what Eyeon, the former provider who apparently lost its investor, was offering. Unless the Eyeon deal was just too good to be true, but other firms contacted by the Daily News at the time of the exclusive Eyeon talks seemed to indicate they might match or exceed the terms.
I do have one question. From the Daily News Article:
Most important for prospective bidders, Moak and Wootan told the group the city wants to keep the $400,000 in MTC rebates it negotiated into its contract with EyeOn. That would allow the city to offset unforeseen expenses and to compensate for potential energy price dips that might make Newburyport regret locking in at higher energy costs down the road.
How exactly does this work? Does the city keep $400,000 in an account that it will dip into whenever energy prices climb? I didn't think municipal entities could carry accounts over year- to-year.
If we can't, than is this going to be a $400,000 budget line item added into future budgets? If that is the case I can easily envision a scenario where that money is treated as a sudden windfall by this or a future mayor and diverted to cover more immediate budget costs. Then we'd be stuck with the higher energy prices with no means of covering our increased cost.
Any thoughts out there?
5 comments:
I will have you the answer by day's end.
James Shanley
I wonder if the prospective vendors might offer an added contract clause, something like "at the vendor's discretion, terms similar to this contract will be offered for any commercial entity/building [with appropriate roof real estate]in the city that wishes to also go solar"
That way local biz might hop on it too.
Ron M
OK, maybe by the end of "a" day. Still waiting for an answer myself.
James Shanley
Given that the council president is on this post, I hope that the council pays some oversight attention to the solar deal this time around.
Hi Tom,
The Council has no oversight role in matters such as the Solar deal, unless the Mayor wanted to borrow money, transfer funds from the Stabilization Account, or from free cash. The Council doesn't oversee the Mayor's office; we act as a check when it comes to the appropriation of funds and the approval of the budget.
There are those who are not happy with this state of affairs. The potential upcoming Charter review would be the perfect time to review this relationship and make any appropriate changes. I urge everyone to participate in the Charter review (if the voters decide to do it) as fully as their schedules will permit.
A happy New Year to all.
James Shanley
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