2016-01-26_PWETC_Minutes - Laserfiche WebLink

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comprehensive plan update) were not listed on the work plan, but deserved and would be receiving recognition as well over the next year. In conclusion, Mr. Freihammer reviewed the upcoming project by the Metropolitan Council Environmental Services at Upper Villa Park, providing photos and maps for this deep pipe and the City of Roseville's water main replacement in conjunction with that project. Mr. Culver reported that there would be impacts to Upper Villa Park related to trees and vegetation, and noted the Public Works Department would work with the Parks & Recreation Department to minimize those impacts, noting that the line could not be moved, only rehabilitated. 6. Skating Center Solar Project Mr. Culver provided an update since the November 2015 PWETC meeting when last discussed, seeking a final recommendation from the PWETC for the City Council. Mr. Culver reported that not much had changed from that last presentation with staff meeting during the interim with the Power Purchaser and negotiating a purchase Agreement, as well as meeting with the Tax Equity Partner who will be the owner of the system and provide financing for the system. Mr. Culver advised that the financier was Kenyon Energy, an owner of installations nationwide. Even though this installation is smaller than their typical installation, Mr. Culver advised that they were doing a larger installation in this area (Brooklyn Park, MN) and decided this would be a good add-on project and under their same umbrella. Mr. Culver advised that, after staffs discussion with Kenyon about what would happen if the City purchased the system and took on its maintenance and ownership, and seeking more detailed information on the lifecycle of the solar panels and other equipment, Kenyon admitted that they experienced few public or private partners exercising a buyout option because of the added operational costs, unknowns with maintenance an operation, and what to do at the end of the system's life. Mr. Culver further reported that the City Council had expressed their concern about adding something else to the CIP program, unknown replacement costs and operation/maintenance dollars. Mr. Culver noted that the City could maintain the agreement, written for twenty years, with a small inflation escalator increasing payback incrementally; and expressed confidence that capacity credits from Neel Energy would be realized for producing excess solar energy, but unsure if that capacity credit would increase over time with inflation or remain a constant over that twenty-year term or if the credit would last for the full twenty years. Mr. Culver noted these remained unknown questions at the time of this report. Page 5 of 20