Brockton might go into the solar energy business.
Council Monday night discussed solicitor George Magwood’s  concerns about a pending agreement to lease portions of municipally owned land to Fritz Concrete for the installation of solar panels.
Back in late November, 2009, council agreed in principal to a plan that would see the municipality recieve $1,000 a year over a 20-year lease. Fritz Concrete would install small systems that generate up to 10 kilowatts which would be sold back to the province for 80 cents a kilowatt, earning approximately $14,000 annually.
“After reading the comments from the solictor, we should take a long, hard look at this,” Coun. Charlie Reidl said.
Brockton Mayor Charlie Bagnato agreed. “Why don’t we just do this ourselves,” he asked.
In a report to council Magwood cautioned about leasing the land to a private enterprise – especially for long periods. “The municipality will lose its ownership rights over the leased land and its rights to control the land and dispose of it in fee simple,” he wrote. Magwood also warned that “a leasehold interest can be seized by creditors and can also be the subject of claims under the Construction Lien Act.”
The solicitor told council that it is “unusual” for a municipality to enter into long term leases of public land “for the benefit of a private commercial business”.
Coun. Chris Peabody noted that there are other companies who are getting into the micro fit (smaller) solar panel industry and, as such, council would, at the very least be compelled to tender out the project. “We should establish some bidding process,” he said, noting lands at the water tower or community centre could be used first. But Peabody thought it would make more sense for the municipality to do it themselves. With each system costing $100,000 to build and install and with a payback of $14,000 annually, Peabody noted there would be a payback in seven years.
“People may question the money, but this is part of the Green Energy Act,” Peabody said.
Coun. Dan Gieruszak said he is always leary of “a municipality becoming more than a municipality”, noting that getting into the hydro business could set Brockton up as competitors to other private enterprises. “I wouldn’t want to use taxpayers money to compete against private business,” he said. But he also liked the idea, noting, “so long as we’re not competing” having its own source of hydro electricity could “reduce our operating costs” at such places as the waste water treatment plant or the community centre.
Reidl also express concern if it meant competing against area farmers who are getting into the solar panel business.
Peabody assured council that there is no limit to the number of micro fit systems that could be built in an area. “This is to help shut down the coal plants,” he said.
Council will discuss the issue more during budget deliberations in March.
After the meeting Bagnato told The WHT that he thought it was worthwhile to investigate. “It’s certainly something to check out to see if we’re allowed to do it under the Municipal Act,” he said. “And if it’s feasible, it would be a good investment that makes money. It would be a win-win for everybody.”