2025-01-22 WS & CC Meeting Minutes - (Approved)

Home Browse Search

City of Centerville City Council Work Session & Meeting Minutes January 22, 2025 information, an agreement with the contractor as to how long of a pause that both can tolerate and cost implications to that. Administrator Statz stated that the other path is to direct staff to continue going forward with the contract/project with worst case scenario being that the city invests the $35,250 that would have been the tax credit portion but receive the $70,000 from the State and instead of a 3-4 year payback it may be a 9 or 10 year payback. Council Member Kubat stated is it the city’s analysis that it is a 3–4-year payback and Administrator Statz stated that there was a little bit of gray area there but look at the City’s investment of only $12,000. City Attorney Glaser stated that he has had an opportunity to review the contract but would prefer not to discuss it publicly. Council Member Kubat asked if there was any advice that Attorney Glaser could give regarding the legal risk of pausing versus terminating or continuing at this time, and he declined. Mr. Vaidyanathan stated that the contract price was approximately $117,000 with $70,500 with the State and a $6,000/year electricity savings so that it would be less than a 10-year payback. Mayor Golden stated that it would be a little less than 2 years but taking the $6,000/year, then it would be 7 to 8 years. Administrator Statz stated that 60,000 kw hours was mentioned is the anticipated energy that the system will produce, but the city will not be able to utilize all 60,000 kw hours. Mr. Vaidyanathan stated that the city could, and Administrator Statz stated that he respectfully disagreed due to the uniqueness of the agreement is that Xcel Energy allows you to put earned overages back onto the grid and that is not the case in this situation. He explained that if electricity went back to Xcel, they take it for free. Mr. Vaidyanathan respectfully disagreed as My Solar Pod has completed many projects for city halls and it is called net metering. He explained that if the city were to generate 60,000 kilowatt hours, even if on a Saturday or a Sunday, that meter is going to the grid, your meter is spinning backwards. He explained that if you look at the one-line diagram that was provided has a production meter that tells how much the system will generate, and we have done city and school buildings. He went on to explain that if it the cost of electricity was $.10 a kilowatt-hour and 60,000 kilowatt hours is around $6,000 today and that $.10 is going to increase with the chances of decrease being very low. Council Member Kubat requested that discussion going forward be continued offline or camera and Mayor Golden concurred. She stated that she felt that the item needed to be tabled for further discussion. Mr. Vaidyanathan stated that if the city were to pause the contract My Solar Pod would probably not be able to complete the project for the same price. Administrator Statz stated that there could be a cost to pausing the project and that it was a risk question: a $35,250 risk if the Executive Order stands, if a pause is pursued and that costs several thousands of dollars that would be the risk and Council/staff is attempting to evaluate in the next few weeks. Mayor Golden asked if there was an opportunity to received additional money from the State. Administrator Statz stated not under this grant. Council Member Rios asked when My Solar Pad was intending on commencing installation and Administrator Statz stated in several weeks. Council Member Kubat asked when it would be appropriate to close a meeting due to potential for litigation and receiving legal advice and Attorney Glaser stated at the next meeting in February. Attorney Glaser stated that the city’s only option to complete this task would be at a closed meeting at the next Page 10 of 16