2014-10-28_PWETC_Minutes - Laserfiche WebLink

Home

Mr. Schwartz advised that representatives from Newport Partners recommended that the City consider multiple applications and continue discussion on the community solar aspect, with this proposal from Newport Partners representing only one option, with another option for guaranteed power purchase with someone else owning the system other than the City of Roseville. Over the next month or two, Mr. Schwartz suggested that the PWETC can determine their recommendation to the City Council to ensure applications can proceed in a timely manner from the City Council's decision and direction authorizing moving forward. At the request of Mr. Schwartz, Mr. Streier reviewed the timing of an application, suggesting several documents needed for the process, including some on-site assessments of the building and a system layout drawing, and shading report, which will take from two to four weeks depending on the weather, and needed before the February 28th application deadline. Chair Stenlund asked for a risk assessment, or example of the risk to the City over the ten to twenty years, especially the risk shared by the City after year 10. Member Wozniak asked for dollar figures from staff on what total amount the City would be paying out in ten years. Member Seigler opined that, for the dollar asset with the City paying 30 cents for every dollar, and someone else paying 70 cents, he didn't think the City could find a better deal anywhere for a $240,000 valued system, for which the City would pay $60,000. Member Cihacek suggested examining the City's options at year 10, as the system owner at that point, and whether to convert it to a solar garden or find another option for another system operator after that first ten years, based on the current understanding and projected understanding of legislation. Mr. Schwartz noted that current projections were carried out on the spreadsheet (Attachment A) based on the system becoming the City's. It was noted that any maintenance costs were not included, but were projected as minimal. At the request of Member Seigler, Mr. Streier advised that the escalation rates used by their firm on the spreadsheet calculations were at 4%, the industry standard, but could be lowered to 2%to project a worst case scenario. Mr. Schwartz advised that there remained many more eyes to look at this projection, from the City Attorney to other experts in the area, including an opportunity for the assistance from Mr. Brian Ross with Metro Certs, who was now accepting applications for assistance in helping the City work through these details. Mr. Schwartz advised that it was staff s intent to work with Metro Certs to evaluate the process. Page 13 of 17