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Meeting
Minutes
Tuesday, July 28, 2015 at 6:30 p.m.
1.
Introduction / Call Roll
Vice Chair
Cihacek called the meeting to order at approximately 6:00 p.m. and Public
Works Director Mark Culver called the roll.
Members Present: Vice Chair Brian Cihacek, Members Joe
Wozniak, , Kody Thurnau, John Heimerl, Sarah Brodt Lenz, and Duane Seigler;
with Chair Dwayne Stenlund arriving at approximately 6:05 pm
Staff Present: Public Works Director Marc Culver and
City Engineer Jesse Freihammer
2.
Public Comments
Public Works
Director Culver Marc introduced the City of Roseville’s newest City Engineer,
Jesse Freihammer, and provided a brief review of his career and expertise in
the field as Jesse relocates from the Brainerd, MN area to this area.
3.
Approval of June 23, 2015 Meeting Minutes
Member Lenz
moved, Member Heimerl seconded, approval of the June 23, 2015, meeting as
amended.
Corrections:
·
Page 7, Lines 299-300 (Wozniak)
Correct to
read: “… required due to the potential authority to direct trash from
landfills into recycling; and hopes to divert more trash…”
Ayes: 6
Nays: 0
Motion
carried.
4.
Communication Items
Chair Stenlund
arrived at this time; approximately 6:05 pm
Public Works
Director Culver reviewed project updates and maintenance activities listed in
the staff report and attachments dated July 28, 2015. Due to limited time
for the business portion of tonight’s meeting, Mr. Culver asked individual
members of the PWETC to contact staff for any additional information or if
they had questions.
5.
City Campus Solar Panel Installation Proposal Review and
Recommendation
Public Works
Director Culver provided a quick overview of two proposals received for a
solar panel installation on the Oval/Skating Center roofs, as detailed in the
staff report dated July 28, 2015; and as displayed via Power Point presentation,
a copy of which is made a part of the staff report and attached hereto
and made a part hereof.
Mr. Culver
noted receipt of two proposals: one from TruNorth with several options
included in their response to the Request for Proposals (RFP) and a proposal
from Sundial Solar. Based on ownership and upfront costs, and after staff’s
analysis and comparison of the two proposals and full submittals from both
solar developers, Mr. Culver advised staff was recommending entering into an
agreement with Sundial Solar for a Power Purchase Agreement system that the
City will then be able to purchase in the sixth year after installation with
the use of a charitable contribution for a private sector third party. Mr.
Culver noted the submittal from Sundial was much more detailed and contained
several tables providing for a cost analysis and power production analysis.
Mr. Culver
noted that the TruNorth proposal included the option for one power purchase
agreement and another option for a simple direct purchase, with both
requiring entering into an energy partnership loan through the St. Paul Port
Authority (SPPA) for fifteen years, and based on minimum dollar amounts and
assumptions as detailed in the staff report.
In analyzing
the Sundial proposal, Mr. Culver noted the different power purchase
agreement, with installation costs higher, but no upfront financing required
of the City for that initial purchase price, and therefore requiring no loan
with the SPPA. Mr. Culver noted this was due to taking advantage of tax
equity financing and the power purchase agreement, combined with the
charitable contribution at year six for the third party, at which time the
City would purchase the system at 5% of the fair market value of the system
and the tax equity partner would donate the remainder for a large tax
write-off. Mr. Culver reviewed advantages of this option in overall power
savings over a twenty year period, estimating an additional $500,000 would be
realized by the City in power savings alone.
Mr. Culver
advised that, as part of their proposal process, Sundial had toured the roof
area and realized it could make much more use of the roof space.
In both
scenarios, even with a smaller footprint, Mr. Culver advised that there were
further advantages with a solar panel system over the arena roof, as
additional power savings through less consumption were anticipated due to heat
from the roof over the ice surface, a long time issue experienced during a
portion of the year in cooling the indoor ice arena space. Mr. Culver opined
that the solar panels would absorb some heat, helping with that energy loss.
Based on the
long-term analysis provided by Sundial, Mr. Culver reviewed estimated
operation and maintenance costs for the City at year 6 of approximately
$7,500; but advised additional information was needed for staff’s review and
analysis on what those actual maintenance costs assumed, or what components
they included; and figuring in the replacement of the entire system in year
thirty as that is incorporated into the City’s long-term capital improvement
program (CIP). As with any asset the City owns, Mr. Culver noted that,
assuming thirty-year life for the panels, replacement costs would need to be
estimated at the end of the life cycle.
In conclusion,
Mr. Culver advised that staff was recommending entering into a Letter of
Intent with Sundial Solar initiating the process of negotiating more final
and specific terms for Power Purchase Agreement. Mr. Culver suggested staff
returning to the PWETC at their August meeting with those final provisions,
and subsequent recommendation to the City Council for their final approval in
September of 2015.
At the request
of Member Seigler, Mr. Culver clarified that the previous Letter of Intent
entered into with the Metropolitan Council was still being pursued, and was
specific to community garden shares, and would still be needed since the City
consumes more power than could be generated on city campus roofs, and if
pursued, would allow the City to obtain energy offset from that community solar
garden system as well.
At the request
of Member Lenz, Mr. Culver advised that staff continued to check the
references provided as part of Sundial Solar’s proposal; and those reviewed
to-date had proven favorable. Mr. Culver further clarified that the Letter
of Intent would be nonbinding, and all steps in the analysis and review
process would be completed before entering into a Power Purchase Agreement.
Member Lenz noted that, since this is new technology, there was no long-term
history available.
At the
concerns expressed by Member Wozniak regarding losses from severe weather,
Vice Chair Cihacek noted there would be a clause provided in the final
Agreement addressing natural disaster costs and remedies; and noted that
individual panels could be removed and replaced if the entire system wasn’t
damaged.
Again, as with
any other City asset, Mr. Culver noted the City’s insurance would address
losses as part of the City’s overall insurance liability costs and
provisions.
Member Stenlund
asked if both panel systems had their own inverters, or each panel had
individual inverters; recommending that the City pursue individual inverters
versus a centralized inverter(s) to ensure the majority of the system would
continue operating if one small portion was out-of-service.
Mr. Culver
advised that staff would check on that detail; noting there were several
different methodologies still in play and under consideration. Mr. Culver
noted that Sundial had provided a proposal for four large solar arrays with
one inverter each; but another option would be to have each row with its own
inverter, or each panel as well; and he would seek more detail on that and
report back to the PWETC.
Member
Stenlund noted that would impact maintenance costs, since the inverters would
cost more than the panels. Member Stenlund spoke in support of moving
forward with the Sundial Solar proposal.
With
confirmation by Mr. Culver, Member Seigler clarified that this was still
nonbinding and the motion would only authorize negotiations at this point.
Vice Chair
Cihacek further confirmed this was only at the negotiation stage at this
point and nonbinding, as he had concerns and sought further negotiation
regarding the proposed annual cost escalator being too high, considered
Sundial Solar could offer a better overall price; and other items of concern
to him personally that he would provide to staff. However, Vice Chair
Cihacek agreed that Sundial should be the selected vendor and staff initiate
negotiations with them.
Mr. Culver
noted that Sundial Solar would not be installing the system until the spring
of 2016, so these would be preliminary negotiations.
Member
Stenlund moved, Member Heimerl seconded, recommending to the City Council
that the City enter into a Letter of Intent with Sundial Solar and staff be
authorized to enter into negotiations with the firm preparatory to the City
entering into a Power Purchase Agreement for a solar panel system on the
Oval/Skating Center roof as detailed in the proposal and staff report dated
July 28, 2915.
Ayes: 7
Nays: 0
Motion
carried.
6.
Items for August 25, 2015 Agenda
·
Continued Review and Update of City Campus Solar Installation
·
Discussion of final year of the Leaf Pick-up Program; outreach
to residents about termination of the program; and alternatives for residents
Vice Chair
Cihacek opined that those two discussions would take considerable time, and
if any new business needed to be addressed it could be added to an amended
agenda.
Member Lenz
expressed her interest in keeping the agenda on those two items, opining that
typical PWETC meetings attempted to pack in too many items.
7.
Adjourn
Stenlund
moved, Thurnau seconded, adjournment of the meeting at approximately 6:24
p.m. for the PWETC to attend and participate in the “Living Streets &
Recycling Workshop” for City Environmental Commissions, being held at
Roseville City Hall from 6:00 to 9:00 p.m.
Ayes: 7
Nays: 0
Motion
carried.
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