Farmers Branch landfill solar developer terminates contract; city to reissue RFP

City sustainability staff reported March 13 that the developer for the city’s planned landfill solar project has terminated its agreement with Farmers Branch.

“our contractor has terminated their agreement with the city,” Speaker 1 said, and staff told the committee they received an official termination two days earlier. Staff said the vendor cited increased construction costs and higher interconnection costs — including grid upgrades required to connect into the local utility’s wires — when explaining the withdrawal. Staff also said an engineering study found actual production would be significantly lower than the vendor’s initial estimate.

Staff noted the city received lease payments during the contract period (about $10,000 a year) and retained project documents, including new surveys. They said the city plans to present an update at the council study session and to re-release the request for proposals to find another vendor.

To tighten procurement language and help prospective bidders, staff said the city will seek pro bono review of the reissued RFP by Rocky Mountain Institute, which will help make it easier for vendors to provide accurate bids. Speaker 1 said RMI and academic partners will review the RFP to reduce discrepancies between initial proposals and final engineering results.

The committee asked several procedural and technical questions, including why the vendor’s production estimate was so far off and whether the city would document vendor performance to inform future procurements. Staff said the main technical cause reported by the vendor was topography and elevation changes on the landfill site and that the city maintains documentation of vendor performance; staff added that remedial grading costs would be high and the city will evaluate feasibility when reissuing the RFP.

The matter will be on the city council’s agenda for further direction; staff did not report a definitive council action at the meeting.