01-04-2012 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
WEDNESDAY, JANUARY 4, 2012 — 5:30 P.M.
1. CALL TO ORDER — 5:30 P.M.
Mayor Steve Cook ca e t e meeting to order. Members present were Mary Christensen, Bill Arndt, and
Chad Czmowski. Member absent was Eric Yost. Others present were Jeremy Carter, City Administrator,
Kent Exner, City Engineer, and Marc Sebora, City Attorney.
2. NEW BUSINESS
(a) CONSIDERATION FOR APPROVAL OF SOLAR ENERGY PROJECT WITH TENKSOLAR
Mayor Cook mentioned that at the last Council meeting, representatives from tenKsolar approached the
Council and staff about a potential solar project for the City of Hutchinson. As part of the project, a
federal grant (tax credit) is available to aid in funding the project.
Joel Cannon, tenKsolar, presented before the Council. Mr. Cannon noted that the federal government
had a grant available that expired at the end of 2011. tenKsolar reserved the grant on the City's behalf
and therefore the City is not under an urgent time constraint to make a decision on the project. Mr.
Cannon explained that the City of Willmar had recently reviewed a project presented by tenKsolar with
use of the federal grant funds. Willmar had to decline the project due to other administrative issues.
Since grant dollars were available, tenKsolar researched other cities that might be interested in a project
and they found Hutchinson.
Mr. Cannon introduced Dallas Meyer, CFO of tenKsolar. Mr. Meyer explained the engineering details
of the solar panel that tenKsolar produces. The solar panel is called the RAIS Wave System.
Mr. Cannon provided information on tenKsolar, Inc. which has its headquarters in Bloomington, MN.
The system designed by tenKsolar is highly proficient and used by some high profile companies. The
cost to the city would range from $1.3 - $1.5 million in 2012 and may be staged over the construction
time. There is very little maintenance costs to a solar generation system. tenKsolar has reserved a 1603
tax grant for a total project cost of $2.2 million. $0.06 cost/kWh lifetime is based on 25 years. With
tenKsolar's system, 20% more kWh and 60% less space is required than a conventional system. The
federal grant will cover 30% of the project and tenKsolar will contribute 10 %. City pays only 60% of
cost plus the interconnection costs. City would assume ownership after five years with a warranted
performance life of 25 years.
The City would utilize the energy for its own consumption and not to produce energy for sale.
Funding options for this project include the community improvement fund.
Council Member Czmowski raised a couple of concerns: 1.) He is concerned with a 25 -year warranty
from a four -year old company; 2.) He expressed that a payback of 9 -12 years is not so great.
Jeremy Carter, City Administrator, reminded the Council that the project would need to go through the
formal bid process.
Council Member Arndt expressed that perhaps it would be better for Hutchinson Utilities Commission
to delve into this project as opposed to the city.
The Council expressed that it is im ortant to have Hutchinson Utilities Commission part of these project
discussions. Council Member Christensen expressed that she likes thinking green and looking at
alternative energy sources.
The Council conceded that they would like to continue discussions with tenKsolar on the solar project
and include HUC on future discussions.
3. ADJOURN
Motion by Arndt, second by Christensen, to adjourn at 6:35 p.m. Motion carried unanimously.
ATTEST:
Steven W. Cook Jeremy J. Carter
Mayor City Administrator