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City Council <br />Meeting Minutes <br />July 17, 2018 <br />Page 10 of 13 <br />Councilmember Maloney asked if the annual pricing is a projected price or a fixed rate. <br />Director Kowar stated it is a projected number. Councilmember Maloney noted this price <br />may go down in the future so he doesn't want to commit to a set price. Director Kowar <br />noted there is a fixed termination fee if there is a desire to get out of the contract. <br />Mayor Pro Tem Lipton asked for more information and detail. Director Kowar stated <br />staff has evaluated the program and packaged all of the major facilities the City can <br />submit for. We don't know how much energy Xcel will have available in the program. <br />The worst case scenario looks to be a net cost per year of $1000 and a cost of $42K if <br />the City wants to get out of the contract. <br />Mayor Pro Tem Lipton stated the City should try to get as much as we can at this cost. <br />Mayor Muckle agreed. He noted Phase I was for residential and smaller commercial <br />facilities and Phase II might allow us to cover as much energy as we want for our big <br />power consuming facilities at very low risk. It also puts the maintenance and long-term <br />costs on to the utility. <br />Councilmember Loo stated she is concerned these costs will not be sustained and in <br />the end it will cost us more; making assumptions about the future is risky. The downside <br />risk is $42K. This is probably not a bad price to pay to get to 100% renewable energy. <br />Mayor Pro Tem Lipton asked how this would affect the Renewable Energy Credits <br />(REC); is it in the greenhouse gas inventory to give us a REC. Director Kowar noted this <br />program gives us a REC where previous solar gardens have not. <br />Mayor Pro Tem Lipton stated the County methodology for measuring greenhouse gases <br />doesn't give us credit for having a REC. We don't get credit for reducing our emissions <br />as a City in that report and according to their methodology we are not making progress. <br />This will be an important point in the next report and needs to be noted. <br />Councilmember Stolzmann asked Attorney Light if there are any issues with our <br />budgeting rules and entering into this 10-year contract. Attorney Light stated this will <br />end up being a utility charge. We may want to consider a non -appropriations clause to <br />make sure we meet TABOR rules. Staff will check with Xcel to see if they have a <br />boilerplate provision recognizing us as a municipality and our constitutional constraints. <br />We will ask they add an addendum touching on the issues for public entities. <br />Councilmember Loo asked Attorney Light for the proper language for a motion with that <br />clause. Attorney Light suggested a motion to direct staff to enroll in the program for all <br />facilities noted on the list and that the Mayor and City Manager be authorized to execute <br />the service agreement subject to final legal review. Councilmember Loo made that <br />motion; Mayor Muckle seconded. <br />Vote: Motion carried by unanimous roll call vote. <br />