Grand Rapids Fiscal Committee Meeting – February 24, 2026
Grand Rapids Fiscal Committee Meeting – February 24, 2026
On February 24, 2026, the City of Grand Rapids Fiscal Committee held a regular meeting lasting from 8:30 AM to 8:49 AM. The committee approved a power purchase agreement for a solar array, a budget substitution for a renewable natural gas skid, a budget substitution for an electrical substation replacement, accepted a grant for a food scrap collection pilot, and approved the bid list. The comptroller's and treasurer's reports were also presented.
Consent Calendar
- The meeting did not include a consent calendar; all items were discussed individually.
Public Comments & Testimony
- No public comments or testimony were presented.
Discussion Items
- Power Purchase Agreement with Interlogics Network Inc. – The committee approved a resolution for a 25-year power purchase agreement to develop a solar array on the Butterworth Landfill. Under the agreement, the developer owns and operates the facility, and the city pays for the electricity generated. The estimated annual savings compared to the current renewable energy program subscription with Consumers Energy is approximately $58,000. This project fulfills a climate action plan goal and concludes a 10+ year effort. Passed unanimously.
- Budget Substitution for Renewable Natural Gas Conditioning Skid – A $765,000 budget substitution from the Infrastructure Investment Project (IIP) fund was approved to procure a new RNG upgrading skid. The skid is needed after gas production from the third digester quadrupled following a pilot study with the City of Wyoming. The lead time is 42–52 weeks. Funds come from sewer ratepayer money (not taxpayer funds). The biodigestion process reduces biosolids by 50–57% and produces renewable natural gas sold on the market. Passed unanimously.
- Budget Substitution for Electrical Substation Replacement – The committee approved a $968,329 budget substitution from various closed or deferred capital projects to fund the city-county complex electrical substation replacement at 300 Monroe. The substation feeds electricity to City Hall, the Kent County Administrative Building, and Calder Plaza. Temporary power has been in use since October 2025; the project is nearing completion. Passed unanimously.
- Food Scrap Collection Pilot Grant and Composter Purchase – The committee accepted a $10,000 grant from Next Cycle Michigan (EGLE) for a food scrap collection pilot. Staff presented progress: since 2025, six city facilities have collected over 5,000 pounds of food waste (about 200 pounds per week), diverting it from the incinerator. The pilot aims to expand to ten facilities with a goal of 500 pounds per week, register 500 residents, and establish six community drop-off sites (two per ward). Three community engagement sessions are scheduled for the following week. An in-vessel composter (funded through the refuse budget) is also on the bid list. The compost will be delivered to neighborhood gardens and available for resident pickup. Passed unanimously.
- Bid List Resolution – The committee approved nine items, including Cayento services (bill/software for utilities), a mowing contract, and the composting unit discussed above. Passed unanimously.
Key Outcomes
- Resolution 1 (Solar PPA): Approved unanimously.
- Resolution 2 (RNG Skid): Approved unanimously; $765,000 from IIP fund.
- Resolution 3 (Substation): Approved unanimously; $968,329 transferred from other projects.
- Resolution 4 (Grant Acceptance): Approved unanimously; $10,000 grant accepted.
- Bid List: Approved unanimously.
- Comptroller's Report: For the period January 27 – February 9, 2026, cash payments totaled $34,929,461.06, including $6 million in payroll and $313,000 in income tax warrants; 270 income tax refunds and 1,280 checks/electronic payments were issued.
- Treasurer's Report: The economic environment is described as stable but sensitive. Interest rate outlook uncertain with potential for increases or decreases. The city's portfolio stands at $715 million with a 3.24% interest rate.
Meeting Transcript
Good morning. It is 8 30, and we will call the fiscal committee meeting to order. Starting with our first resolution. We have a resolution approving a power purchase agreement with Interlogics Network Inc. for the development of a solar array on the Butterworth Landfill and purchase of electricity for a 25-year period. So move. Support. All right. Thank you, Mr. Matthews. So this is uh the next step in what's been a 10 plus year process to see if we can get uh solar power installed at the Butterworth Landfill. So at this point, we're looking at a power purchase agreement under a power purchase agreement. The developer owns and operates the facility, and we pay for the power that's generated. Um we provided a previous rundown of what that looks like over time, the approximate difference between us purchasing power through this agreement versus what we would be paying purchasing power through our current uh renewable energy program subscription with consumers energy is about $58,000. Of course, those are estimates at this point. Um, but we feel like this is an opportunity to leverage that site, uh, generate power locally, um, and uh fulfill one of the things that we have on our uh climate action plan. Awesome. Thank you so much. Colleagues, got any questions all in favor? Aye. Aye. All right, it passes. Um number two is a resolution authorizing a budget substitution in the amount of $765,000 for 30% of the procurement of a renewable natural gas conditioning skid. So moved. Support. Good morning, commissioners and uh committee members. Uh what we bring to you today is uh a budget substitution request for 765,000 from our IIP fund. Uh this is to initiate the procurement of the RNG skid. Uh six months ago, we came to commission with an agreement with the city of Wyoming as a pilot study to accept their sludge. Uh part of that, you know, we made mention that there may be the need for additional infrastructure investment. Um here today to let you know that we've quadrupled our gas production off of that third digester, and it is now time to invest in a new RNG upgrading skid. Uh the the lead time on this is 42 to 52 weeks, and that's why we're coming today to ask for the 765,000 to go ahead and get this on order and and get it delivered. Okay, thank you for that. Colleagues and questions. Um you probably know this. What uh where is that money allocated? Cut what budget is that coming out of? That's under the infrastructure investment uh project fund. So as uh capital improvement projects are completed, and if there's money left over, we can transfer it to the IIP fund, which will invest uh into future infrastructure projects. And this is specifically in the sewer. Yes, the sewer. So just for clarity of language, we have um capital improvement fund, which is like general um tax fund taxpayer funded projects. The sewer fund works off of ratepayer revenue. So they they operate as their own enterprise utility where those rate payer dollars are used to fund operating, and then we have the capital funds associated with through you know, sewer. So, you know, when as as James was saying, when when we get done with a capital project and there's leftover money, that money gets put into an IIP account. It's infrastructure investment project account, basically, IIP. Um, and then we can take those funds and when another project say costs more money, or we have a new project come along, we just take money out of that. It's kind of like a holding account. So that's I just wanted to make that distinction that it's being paid for with ratepayer money, not taxpayer money. So yeah, thank you.
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