City Council Minutes 2010 09 07 - Laserfiche WebLink

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City Council Meeting Minutes September 7, 2010 Page 7 of 12 residential solar credit was removed in 2008 by the Tarp Legislation. He asked when the public would be allowed to look at the bids and whether the bids have been analyzed by any outside experts. Jean Morgan, 1131 Spruce Street, Louisville, CO stated she lives close to the City's Sewer Plant, which is a site for the solar panels. She asked whether there would be any negative impacts on neighboring homes and whether the solar panels are built in the U.S. and provided jobs for Americans. COUNCIL COMMENTS There was considerable Council discussion. Councilor Sackett voiced his support for the solar power purchase agreements. Councilor Dalton reported reading about the impacts of solar and wind energy and their actual carbon footprints. He notted the residents will pay for energy, no matter what source it comes from. Councilor Muckle had questions as to whether the outright purchase would preclude any incentives; the power purchase rate; the typical increase in the PPA and whether the non -peak power ratio had been factored in. Public Works Director Phare explained the City would not be eligible for the federal tax benefit and the rate is locked in a PPA for 20- years. The typical increase in the PPA rate is 3 -5% and the non- peak power was not factored in. Mayor Pro Tem Marsella commented this issue is complicated and detailed enough to be reviewed at a Study Session. She asked whether any discounts were factored in the cost and for the amount of the Xcel rebates and incentives. Public Works Director Phare stated discounts were factored into the net pricing. The City is eligible for the Xcel Energy rebates for the cost for kilowatt installed as well as the annual renewable energy credit. The rebate is based on the capacity of the facility installed and the City has locked in a rate of 5.5 cents per kilowatt. City Facility Manager Dave Szabados reported when a 100,000 watt system meter is installed, Xcel Energy will pay $2.00 per watt upfront, ($200,000). Thereafter, for twenty years Xcel Energy will give a credit of 5.5 cents per kilowatt hour. The 5.5 cents was locked in by applying for the renewable energy credit, which expires on March 26, 2011. Public Works Director Phare noted the PPA is responsible for maintaining the facility. Mayor Sisk voiced his support of solar power and stressed the importance of purchasing American products and buying locally. He felt it is important to get all the information out and receive public comments. Public Works Director Phare asked for Council direction on whether Staff should proceed with contract negotiations or wait until after Council meets at Study Session on