City Council - 10/17/2017 - Workshop APPROVED MINUTES
CITY COUNCIL WORKSHOP AND OPEN PODIUM
TUESDAY, OCTOBER 17, 2017 CITY CENTER
5:00—6:25 PM, HERITAGE ROOMS
6:30—7:00 PM, COUNCIL CHAMBER
CITY COUNCIL: Mayor Nancy Tyra-Lukens, Council Members Brad Aho, Sherry Butcher
Wickstrom, Kathy Nelson, and Ron Case
CITY STAFF: City Manager Rick Getschow, Police Chief James DeMann, Fire Chief George
Esbensen, Public Works Director Robert Ellis, Community Development Director Janet Jeremiah, Parks
and Recreation Director Jay Lotthammer, Assistant City Engineer Randy Newton, Communications
Manager Joyce Lorenz, Marisa Bayer, Community Development Coordinator, City Attorney Ric Rosow,
and Recorder Cynthia Harder
GUESTS: Greg Ackerman, Apex Efficiency Solutions, SBC
Workshop - Heritage Rooms I and H(5:30)
I. SUSTAINABLE EDEN PRAIRIE—SOLAR POWER
Mayor Tyra-Lukens called the workshop to order at 5:36 p.m. Getschow introduced Greg
Ackerman of Apex Efficiency Solutions, SBC to present on the Solar Project and noted Apex
was a consultant on the City's 20-40-15 Initiative. Solar is a focus area of the Sustainable
Eden Prairie initiative and City staff has been working with Apex to look at City's solar
power options.
Ackerman reviewed three solar categories. The first was a building connected, rooftop-
mounted solar option to provide energy for City Center, the Maintenance Facility, and the
Water Treatment Plant. He said building connected solar is load-limited and would provide
just over one megawatt of energy. The second category was a City Solar Garden Project at the
Community Center. In this case, the City wouldn't get the benefit but residents would benefit
with the opportunity to participate in the Solar Garden. The third category was an Off-site
Solar Garden Project, which would benefit the City.
Ackerman described tentative potential plans for the building connected option at the three
City buildings. Ackerman said a third party tax investor model would be used to get a tax
credit. The City would purchase renewable energy from the third party instead of purchasing
electricity from Xcel Energy. Ackerman said with this model, the City would get the
Renewable Energy Credits (RECs). He stated in order for the City to claim solar power usage,
the City must be getting the RECs.
Ackerman explained the power purchase agreement between the City and the third party tax
investor would last 20 years and at the end of the contract, the City could either buy the panels
at fair-market value or have the tax investor remove them and restore the roof. Ackerman
advised against purchasing the system. He believed at the end of the contract, the third party
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October 17, 2017
Page 2
tax investor would be willing to sell the system for much cheaper than fair-market value
instead of having to remove it. Ackerman said once the City owned the system, it would
generate approximately $80,000 worth of energy annually.
Aho asked about the system's life expectancy. Ackerman explained the system is comprised
of three categories: the solar panels, aluminum racking, and the inverters. He stated the solar
panels last a long time but degrade about one-half percent per year and the aluminum racking
will last a long time. Ackerman said the inverters are about five percent of the total system
cost and last 20-25 years before needing to be replaced.
Ackerman commended City staff on working with Xcel Energy to save the City a lot of
money on utility bills. He said since the City is currently saving so much, if building
connected solar is used on the three City buildings, then the City would actually lose money.
Ackerman estimated building connected solar would provide 9.5% of the City Center's
electricity, 23% of Maintenance Facility's and 15% of the Water Plant's.
Ackerman explained the second category, a City Solar Garden Project at the Community
Center, entails Apex partnering with Cooperative Energy Futures. Xcel Eenrgy gets the RECs
for the City Solar Garden Project. Ackerman noted from the ground, the panels would not be
not visible. With this option, the City would receive about$6,000 per year as a site lease but
the real benefit would be to residents. Any Eden Prairie resident who is an Xcel Energy
customer could enroll at no cost and would save four to five percent on their bill during the
first year. Ackerman projected that in the 25t" year, subscribers would save about 20 percent
on their energy bills. After 25 years,renegotiation would occur.
Ackerman described the third category, an Off-site Solar Garden, as a 25-year contract
between the City and a solar garden in an adjacent County. Solar energy would be produced
off-site and injected into the grid. There would be no upfront cost to the City and the City
would save about$4.9 million over 25 years. Again, Xcel Energy would claim the RECs.
Ackerman stated the staff recommendation included solar on City Center's roof, along with a
community garden at the Community Center, and an Off-Site Garden subscription.
Nelson asked what happens with solar power in an emergency situation. Ackerman said if the
grid goes down, the solar must go down as well. He explained if the grid is off everywhere
else but the solar system on the building is still producing energy, it could electrocute a
lineman working on a line. Chief Esbensen said there are generators at all four fire stations.
Tyra-Lukens asked if the landfill has been looked at as a solar garden location. Ackerman said
it is a closed landfill. National Parks Conservation Association (NPCA) is working with the
US Environmental Protection Agency (EPA) to provide some ability to use the landfill.
Getschow said Aspire Eden Prairie 2040 entails future landfill use including solar.
Ackerman explained the next step is for Council to authorize staff to enter into agreements.
He noted structural tests must be done prior to panel installation. Aho asked how heavy panels
are. Ackerman responded panels weigh about five pounds per square foot.
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October 17, 2017
Page 3
Case asked about reroofing requirements if solar systems are on City buildings. Ackerman
replied the three recommended buildings have new roofs. In the event unforeseen reroofing is
needed, it would add expense to remove and then remount the panels. Ackerman said panels
actually shield the roof since it's protected from damage by stones, hail, and UV rays.
Tyra-Lukens said she is in favor of solar and asked why staff didn't take the recommendation
further. Getschow said staff focused on keeping each building with a positive cash flow. He
added it is possible to scale up. Tyra-Lukens said she prefers doing it all now instead of
waiting and potentially facing costs to add more systems.
Nelson asked if the entire Maintenance Facility roof could be used as another community
solar garden. Ackerman said it would not be big enough for a community solar garden as it
wouldn't generate the solar garden limit of a megawatt to be financially viable.
Nelson asked how many residents could take advantage of the solar garden at the Community
Center. Ackerman said it really depends on how much energy each resident subscribes to.
Xcel Energy caps the amount residents can subscribe to at 120% of the average of their last
two years usage. Nelson was pleased that a significant amount of residents could take part.
Case asked if the City subscribes to the off-site solar garden and does not use rooftop solar at
the two buildings projected to result in a negative, would solar still meet 100% of the City's
needs. Ackerman said yes; solar would cover all City facilities, streetlights, etc.
Aho clarified it would not pay for the City to install solar systems on its own because the City
would not get a tax subsidy. Ackerman confirmed the third party tax investor model is most
common for Cities because the third party provides the financial incentive and incurs the solar
system's depreciation. Nelson clarified the third party tax investor would be legally
responsible for maintenance of the system for the full 20 years. Ackerman confirmed the
investor is responsible for maintenance and benefits from the system working optimally.
Tyra-Lukens asked for clarification on RECs. Ackerman said the City does not get RECs for
Xcel Energy's solar gardens. Tyra-Lukens confirmed the City would need to maximize use of
building connected solar systems to provide all electricity for City facilities to claim use of
solar or renewable energy. Ackerman said that's correct. Getschow thought it is possible to
promote the City as being supported by 100% solar energy even with the issue of the RECs.
Case asked if any City is producing enough solar power to meet 100% of their needs and
claiming all of the RECs. Ackerman said no; many other cities are similarly looking at a
combination of building connected and off-site solar garden methods.
Tyra-Lukens was enthusiastic about solar options and thanked Ackerman for presenting.
Getschow said proper agreements will be brought back to Council.
Open Podium - Council Chamber (6:30)
II. OPEN PODIUM
III. ADJOURNMENT