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May 5, 2010 Council Work Meeting Agenda & Minutes


LaVerkin City Council Work Meeting Agenda

Wednesday, May 5, 2010 7:00 p.m.

Council Chambers, 111 S. Main, LaVerkin, Utah

Work Meeting Immediately Following Regular 6:00 Meeting

Solar Power Presentation: Kim Mitchell and Quinn Denning

Adjourn:

In compliance with the American with Disabilities Act, individuals needing special accommodations (including auxiliary communicative aids and services) during this meeting should notify June Jeffery, City Recorder, (435) 635-2581, at least 48 hours in advance.

Certificate of Posting

The undersigned City Recorder does hereby certify that the agenda was sent to each member of the governing body, sent to the Spectrum newspaper,  posted on the State website at http://pmn.utah.gov, posted on the LaVerkin City website at www.laverkin.org and in the following public places within LaVerkin City limits on this April 30, 2010 These public places being: 1) LaVerkin City office building 111 S. Main; 2) LaVerkin City office building 435 N. Main; June Jeffery, CMC, City Recorder

 

LaVerkin City Council Work Meeting Minutes
Wednesday, May 5, 2010
Council Chambers, 111 S. Main, LaVerkin, Utah
Present: Mayor Karl Wilson; Councilmembers Ray Justice, Phil Jensen, Hugh Howard, Doug Beecher; Staff: Kyle Gubler, Attorney Kevin Bennett, Chief Lloyd Watkins, June Jeffery, Derek Imlay; Public: Energy Wise Solutions - Kim Mitchell, Quin Denning, Dan Southwick

Councilmember Scott Stratton was excused.

Meeting Called to Order by Mayor Wilson at 7:15 p.m.

Representatives Quin Denning, Kim Mitchell, and Dan Southwick of Energy Wise Solutions made a presentation on Solar power. They would like to install solar equipment next to the city buildings at 435 N. Main and 111 S. Main. This would be a contract with a third party investment. The company would create their own power company to manage, operate and maintain the equipment. The city would have purchase power with known cost throughout the lifetime of the equipment.

They discussed that there would be a 2-way meter between Rocky Mountain Power (RMP) and the solar energy source. The meter would increase or reduce according to the source of power - RMP or solar. The net amount of energy would be calculated over a year's time to determine the amount owed to RMP. The agreement with Energy Wise would be 20 years. Could be a carport system at 435 N. Main.

PPA Components include timely installation and cost, net meter, healthy use of taxes, maintenance of equipment, invoicing, power provider own system, lease agreement from the city for space to install the equipment. City would be responsible for power generator. May be assessed taxes for power consumption, but should be exempt.

The agreement would allow for joint use of the site for publicity that the city is "green". Options would be set out to allow for purchase of the equipment or to terminate early.

There was discussion that RMP has raised its rates 2.2% overall and discussion about the current Kilowatt (KW) cost for the city buildings and the affects from the increase. Current cost of power at the 111 S. Main building is very high. This system is designed to meet the optimal sun pattern. It has been designed to not supply total solar energy, as any over-production would go back into the RMP grid and would not benefit the city monetarily.  Option 1 with the Energy Wise product would set a rate below RMP rates and would include a 2% per year escalator. Option 2, the rate would lie flat for 5 years then escalate at the Option 1 level throughout the 20-year contract term. Buy out time frames were presented.

The presenters are anxious to finalize the contract before the end of the year in order to receive federal credits that have been worked into the system rates.

Council discussed that Springdale City worked with RMP and the Blue Sky program. There are also other entities the may be able to provide a better contract. SUU has worked with RMP as well.

Councilmember Jensen stated that he gets nervous whenever a time line becomes an issue. He would like to make sure that staff, council and legal staff have the opportunity to look at this and other options, especially the legal aspects.

There was concern that the city needs to maintain working relation with RMP.  Statement that RMP is supportive of alternative energy to help reduce dependence on coal-fired power.

Kim Mitchell stated that the state mandates that a percentage of utility power has to come from renewable sources. In this area, air conditioning creates a high demand on power. Solar power would reduce that because at the time of high demand, the sun is peaking in its production.

Kevin Bennett stated that he has not been involved with all the discussion. He has looked at solar products in California, Texas, and New York, but has not had time to do a complete review for the proposal on city property. Mitchell countered that solar protocol is well established. Jensen would like to have staff do a thorough review including the outcome of net metering, municipal property vs. college property. He believes it looks good, but wants to look thoroughly before any decision. He stated support of a 3rd party to make sure the product worked.

Energy Wise representatives stated that there was not an imposition to hurry except the investor group has set the proposal according to rebates from the federal government. Karl Wilson stated that the city wouldn't qualify for the rebate, only a private company.

There were questions concerning the needs and responsibility for maintenance. - window washing, dust removal etc. for optimal sensor operation. Mitchell said the system could be deployed in less than a month.

Discussion of support for solar power. Questions of warrantee, expansion, replacement, monitoring. Beecher wondered what would happen if the buildings were abandoned within the 20 years and was told that the system would be able to move to another location. Representative from Energy Wise stated that current state code SB 145 doesn't allow for all power to be provided in a city, but that may loosen up in the future. Can be moved if contiguous meter.

Derek Imlay and Kyle Gubler like the concept for solar power, but want to make sure the legal issues are worked through. Kevin Bennett believes that the system should be bid out. He is also concerned that both buildings could be vacated before the 20-year contract would end. Also interest that technology could improve in that time. Concern about legal use of municipal property. He would like to look at the representation regarding tax information.

Karl Wilson stated that he can see the need to validate and verify. He is not in a big hurry, but sees the need to be in the possible window.

Bennett would like to explore other options and other companies. BP funding in Houston; grants in California; grants in Springdale. These cities own their system and are not tied to a lease/contract. There are other ways to go solar. The public process cannot be bypassed. He would like to look at the Blue Sky program under RMP as well. Support from councilmembers that Bennett will represent the city/public interest.

More discussion that other cities own their systems and received funding through grants. Rick Wixom from Springdale would be a good resource and has stated willingness to help LaVerkin City because his city is not applying this year.

Mitchell stated that the amount of power generated under the Blue Sky is not the same as his system.

More discussion by staff and council that grants would allow ownership of the system. Wilson questioned as to why review hadn't already been done. Jensen stated that the third party investors take concerns with government and strings attached out of the equation and that he would like to work with someone who is already established.  Howard supported.

Adjourn:  Motion by Councilmember Howard to adjourn, second by Councilmember Justice. Motion carried unanimously. 8:08 p.m.

 

Minutes taken by June Jeffery.

Date Approved, June 2, 2010

Mayor, Karl Wilson

ATTEST:

June Jeffery, CMC

City Recorder

City Council Update

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La Verkin City Office • 435 N. Main Street • La Verkin, Utah 84745 • General: (435)635-2581 • Police: (435)635-0427 • Fax: (435)635-2104

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