City Council Minutes 2010 12 07 - Laserfiche WebLink

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City Council Meeting Minutes December 7, 2010 Page 8 of 10 became obsolete. He felt this solar project was not a good fit for Louisville or a good use of public funds. He urged Council not to proceed with this solar power project. COUNCIL COMMENTS Councilors asked for the cost to return the leased equipment. Public Works Director Phare stated it would be 9% of the cost of the facility or its appraised value. Councilors inquired about the maintenance cost and whether Zion could contract with Bella Energy and remove the City from the contract. Public Works Director Phare explained there was no option for Bella Energy to contract directly with Zion. Mayor Pro Tem Marsella and Councilor Clabots agreed the City's projections for return on the investment were very conservative. Councilor Dalton stated because there is no willingness of the vendors to take on any of the risk, and the ongoing cost of the project, he was not supportive of the project. Councilors asked Mr. Dallapiazzo for his opinion of solar technology becoming obsolete. Mr. Dallapiazzo explained in 1954, Bell Laboratories began working with silicone based photo electric effect and in the early 1970's the first commercial solar panels were built. The exact solar panels are currently being used today with increased efficiencies. Councilors asked Mr. Dallapiazzo for the rate at which efficiencies are improving. Mr. Dallapiazzo stated efficiencies are currently at 14 however large companies, such as Spectral Labs, owned by Boeing, are achieving up to 39% efficiencies. Boeing is trying to make the same type of product commercially and anticipates 19 -20% efficiencies for those products. Councilors asked Finance Director Watson for the rate of return on City investments. Finance Director Watson stated the City is currently earning a weighted average of 1.6 The average over the last two years has been between 2.0% and 2.5 Mayor Sisk requested in -depth analysis reports from Bella Energy and Finance Director Watson at the December 21 meeting. ORDINANCE No. 1584, SERIES 2010 AN ORDINANCE AUTHORIZING THE NEGOTIATION, EXECUTION, AND DELIVERY OF AN EQUIPMENT LEASE AGREEMENT BETWEEN THE CITY OF LOUISVILLE, COLORADO, AND ZIONS CREDIT CORPORATION; PROVIDING FOR LEASE PAYMENT FROM LEGALLY AVAILABLE LESSEE FUNDS; AND PRESCRIBING OTHER DETAILS IN CONNECTION THEREWITH 1 Reading Set Public Hearing 12/21/2010 Mayor Sisk requested a City Attorney introduction.