Energy Committee Minutes 4-10-19

Energy Committee 4-10-19

RUTLAND TOWN SELECT BOARD

ENERGY COMMITTEE MEETING

WEDNESDAY APRIL 10^th, 2019

The Energy Committee of the Rutland Town Select Board met at 9:00 AM on Wednesday April 10^th at the Municipal Town Hall. Present was Board Member Joseph Denardo, Board Member JP Faignant, Board Member Mary Ashcroft, Administrative Assistant Bill Sweet, Ralph Meima from Green Lantern Solar and Philip Allen of Same Sun of Vermont..

• The energy committee met to discuss the various proposals received for solar sites for the town to participate in, in order to reduce energy expenses.
• The 2 attendees representing Same Sun of Vermont and Green Lantern Solar were asked to present to the committee their perspectives on the proposals.
  1. Allen addressed the committee first.
     1. He provided what he interpreted to be his knowledge of the other 3 projects. 2 were to be built in locations other than the one he had proposed, the Northwood Park capped landfill, and the other, from Green Lantern was to build an array in the same location he was proposing to.
     2. His proposal would be to send the town $31,000 in electricity to offset the portions of the municipal bill allowed under the rules, giving us a 15% discount saving the town $4650 per year for 25 years, with an upfront payment of $40,000.

• He estimates a minimal savings of $156,250 over 25 years, combined from all different areas.

1. If he was allowed to construct a 500KW array, 150KW would be used directly to offset energy costs of the Rutland Town municipality and the balance would be guaranteed, by contract to go to other Rutland Town individuals or businesses
2. All of the renewable energy certificates would be retired so none of the energy would be going out of state.
3. Mr. Faignant asked about any consideration for rental payment of the property. Mr. Allen said this was the upfront payment of $40,000.

• Mr. Faignant asked about an option to buy at a future date. Mr. Allen said the developer would need to own it for 5 years and then be able to be purchased by the town after that.

1. Meima addressed the committee next.
   1. Some of their numbers differ slightly from Same Sun, since they were based on estimated power usage.
   2. Their original proposal is based on installing a 150KW array.

• The proposal includes a potential utility savings of $38,000 a year.

1. Rental money paid to the town was estimated at $3500, but this price has not been negotiated with the town yet so it may be able to be raised. This could lead to a total saving of approximately $7300 per year.
2. Mr. Meima has looked around the property and it capable of supporting up to a 500KW array which would increase the amount of rent paid to the town, up to $10,000 per year.
3. A one-time up-front payment for the lease could be considered as an option.

• Lease terms could be 20 to 35 years depending on the agreement.
• A lease to purchase option could be included. It is typically offered after 7 years, after the array is fully depreciated and the tax credits have been fully realized.
  1. It would be pre-determined in a contract.

1. His firm has completed multiple projects on landfills and has developed reliability and predictability to design an array to pass DEC review and to build within a 1 year time frame.

• Denardo moved to enter executive session for the purpose of contract discussion. Ms. Ashcroft seconded the motion. The motion passed 3-0. The committee entered executive session at 9:25 AM.
• Denardo moved to come out of executive session. Ms. Ashcroft seconded the motion. The motion passed 3-0. The committee exited executive session at 9:40 AM.
• Denardo moved to recommend to the Select Board to accept the proposal from Green Lantern Solar for a 150KW array with a maintenance agreement and an option to purchase after 7 years. Ms. Ashcroft seconded the motion. The motion passed 3-0.

 

There being no other business the meeting adjourned at 9:45 AM.

Respectfully submitted, Bill Sweet.