RICHMOND, Va — A proposal to add solar panels to dozens of Richmond government buildings was shot down by a majority of city council members Monday night, leaving the future of the deal in doubt.
After hours of hearing public comment and debating the topic, the council remained unconvinced that the risks surrounding the solar panel project, in its current form, were too great.
To recap, Mayor Danny Avula's administration proposed that the city enter into a 25-year agreement with the company Secure Solar Futures.
The company would install the panels on up to 39 buildings at no upfront costs to the city. In return, the city would buy back the electricity the panels generate at a locked-in rate. The administration estimated it would save roughly $20 million on energy bills over 25 years.
Clean energy advocates packed Monday's council meeting to call on the body to support the deal. Just a few days prior, a three-member council committee opted not to make a recommendation to support the proposal.
Some council members have raised concerns about feeling rushed. They were given the formal ordinances last Monday with just seven days to make a decision on them.
The administration, however, has said discussions of the project date back several months and said the constrained timeline to act is due to the imminent expiration of federal tax credits. Without those tax credits, the company has it would not be able to pass along the maximum cost savings to the city.
Further, some councilors were also troubled by a July report by the city's risk management unit which identified ten areas of concern regarding the contract, with nine of them being of high severity.
The risk report said the draft it reviewed "exposes the city to significant financial loss" and favors the company by "limiting the vendor's liability exposure."
“Let’s not pass the opportunity to do what our risk management advisors are telling us straight up— that this would be a mistake," Council member Ellen Robertson said at Monday's meeting.
Chief Administrative Officer Odie Donald, however, said that report reflected a snapshot in time and that the identified risks have since been mitigated. Donald provided a signed letter from the company to the council, which noted it was willing to make some amendments after the council approved the ordinances.
“The administration measured the risk versus reward and believes that the reward outweighs the risk," Donald said.
A majority of council members, though, were unswayed by the letter and said it failed to adequately address their main concerns.
Ultimately, in a five to four vote, the majority voted down the ordinances but did not rule out revisiting them in the near future if the company would agree to terms proposed by Council member Sarah Abubaker.
Abubaker is pushing for more clarity in the contract surrounding indemnification, liability insurance, and a decommissioning bond.
The administration and the company have said that the council would need to approve the project by September 30 in order to take full advantage of the deal.
To meet that deadline, the council would have to schedule a special meeting to reconsider the ordinances, but the body's chief of staff said in an email Tuesday he could not confirm there'd be a quorum for such a meeting this week.
Mayor Avula said in a statement he was "disappointed" in the council's vote.
"Actions have consequences, and City Council’s action tonight will make it harder to achieve the City's sustainability goals," Avula said.
This is a developing story, so check back with WTVR.com for updates. Email the CBS 6 Newsroom if you have info, photos or videos to share.
