City Council Agenda and Packet 2010 10 19

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Mayor Pro Tem Marsella asked what effect this would have on the HPC fund balance. Planning Director Russ stated the request is for up to $40,000 and Staff is confident this study will not drain the resources in the HPC fund for landmarking incentives. MOTION: Councilor Muckle moved the City Council authorize Staff to proceed with advertising a Request for Proposals (RFP) for the Historic Structure Assessment of the Louisville Grain Elevator, seconded by Councilor Yarnell. All were in favor. Absent: Councilor Clabots. UPDATE /DISCUSSION /DIRECTION — SOLAR POWER Mayor Sisk requested a Staff presentation. City Council Meeting Minutes October 5, 2010 Page 11 of 13 Public Works Director Phare explained since last discussing solar power options with City Council, Staff received notice the two Power Purchase Agreement (PPA) proposals with the most favorable power costs were being withdrawn. It was represented that the value of certain rebates and incentives has been reduced by the financing interests participating in the PPA's. Also, since last discussing this with City Council, Staff further explored equipment lease options for solar power facilities. The City would lease solar power equipment from a third party. Equipment leases require the Leasee to be responsible for operation and maintenance. There is some risk associated with pursuing an equipment lease as compared to a PPA. In summary, the advantages of an equipment lease are: 1.) Potentially lower cost; and 2.) Ownership of the solar facilities in a much shorter period. Staff has requested and received approval from Xcel Energy to maintain the City's rebate and renewable energy credit rates until June 2011. This provides for an additional 90 days of time to have a solar power facility up and running and still receive the rebates and incentives anticipated. Staff recommended that should Council wish to go forward with solar power, authorize Staff to solicit new proposals for both Power Purchase Agreement and equipment lease options for solar installation at the three treatment plants. COUNCIL COMMENTS Councilor Dalton supported a third party provider who would agree to pay Xcel's rate. He also expressed his interest in the lease option. Mayor Sisk voiced his commitment to go forward with solar power. There was Council consensus for the Public Works Department to solicit new proposals for both Power Purchase Agreement and equipment lease options for solar installation at the three treatment plants. 14