CC_Minutes_2016_11-14 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, November 14, 2016 Page 25 Mr. Culver apologized for not providing more detail for the city’s risk in his presentation tonight, advising that after distribution of the meeting packets, city staff and Sundial representatives had a breakthrough in negotiations for that item, with an energy performance guarantee agreement with Sundial that would elimi- nate that risk factor with Xcel Energy rates that may fluctuate and be lower than the initial contractual energy purchase rates. Mr. Culver noted this had been a concern he shared as well until these most recent negotiations. Councilmember McGehee stated there were many things concerning her related to the city’s potential risk. Mr. Culver noted that, the only significant risk he saw to the city was if there was an unexpected but major maintenance on a roof with a solar array, if for more than 72-hour in a 60-day period, the city would be liable to pay the power provid- er for that lost power, since they were depending on that power production to help pay for the system and their financing of it. At the prompting of Councilmember McGehee, Mr. Culver addressed natural dis- asters (e.g. fire, storm, or collapse) if the system could not be salvaged or returned to that roof, noting the force Majeure clause (lines 100-104 of the RCA) that cov- ered a longer period of time to restore operations, allowing that the power provid- er can abandon the system at which time the city would be stuck with it. If it still works and can still generate power, Mr. Culver advised it would not be an issue, but otherwise the city would need to deal with the salvage and removal of the equipment from the site. Councilmember Willmus opined that this was similar to his concerns with the Re- cycling contract and term. When he considered the Made in Minnesota proposals, with a shorter horizon, Councilmember Willmus stated that he found those agreements more attractive. Given the pending city campus discussions and relat- ed issues, Councilmember Willmus stated that he wasn’t sure he was ready to proceed at this point with a Letter of Intent with Sundial Solar as presented. Willmus moved, McGehee seconded, WITHHOLDING entering into a Letter of Intent with Sundial Solar for installation of a 450 kW Photovoltaic System proposed for the roofs of City Hall and the Maintenance Facility, until com- pletion of the analysis of buildings on the city hall campus was completed. Councilmember McGehee agreed that a variety of concerns for her included the duration of the agreement, ultimate payback for the city, disposal of panels should the city end up purchasing them and how to manage them, and other contract de- tails as she had addressed to Mr. Culver earlier today and some tonight. With so many questions still unanswered for her, Councilmember McGehee agreed with the delay until city campus discussions and facilities had been reviewed.