The objective of this project is to answer the following questions: From legal, technical, and financial perspectives, what ownership, financing, and operations/maintenance model(s) would be most advantageous for the City of Somerville to install networked geothermal systems? What are the tradeoffs between the different models in terms of the aforementioned criteria? Building on previous work, this study will allow the City of Somerville to understand the legal, financial, operational, and regulatory opportunities and challenges associated with a potential networked geothermal project. The completion of this study is intended to get the city in a position to release RFP/RFQsto design, build, and operate a networked geothermal system in one more locations within the city. The City would be interested in proposals that include factors above and beyond the scope of work to achieve this goal. Somerville seeks to understand the pros and cons on the different ownership structures and how each will influence the project’s procurement and execution strategy. Potential ownership models include, but are not limited to: Municipal ownership State ownership Investor-owned utility ownership Private ownership A system with blended ownership by any combination of the municipality, the state, investor-owned utilities, or private entities The selected vendor(s) should provide resources, framing, and facilitation for discussions over whether there is a need for Owner’s Representation to oversee the project and how each option contributes to desired standards and objectives. Somerville also seeks to understand financial aspects of the options, including but not limited to, funding strategies, return-on-investment, economies of scale, and timelines. The selected vendor(s) should describe the enabling legislation and any pertinent regulations for financial, ownership, and O&M decision-making. What federal and state tax considerations would be applicable to different ownership models. What types of financial model would be most advantageous for the City of Somerville consider along the spectrum of complete municipal ownership, partial municipal ownership with outsourced services, to private/utility-owned with municipal involvement. Operating and maintenance model options, pros and cons, cost estimates Permitting process and cost estimates for 1-3 sites listed in the Electrification and Networked Geothermal Feasibility Study (Central Hill + any, all, or neither of the other two sites). How could different ownership structures accommodate waste heat recovery infrastructure that would interact with existing City-owned or Massachusetts Water Resource Authority-owned wastewater infrastructure. Also interested in assessing willingness of this as applicable through this scope. Financing and investment opportunities.
