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HomeMy WebLinkAboutMinutes - City Council - 12/01/2014 CITY COUNCIL 1 DECEMBER 2014 The South Burlington City Council held a regular meeting on Monday, 1 December 2014, at 6:30 p.m., in the Conference Room, City Hall, 575 Dorset Street. MEMBERS PRESENT: P. Nowak, Chair; C. Shaw, M. Emery, J. Simson ALSO PRESENT: K. Dorn, City Manager; T. Hubbard, Deputy City Manager; S. Dopp, L. Waters, J. Lowey, D. Cummings, D. Maratz, K. Loomis, C. McQuillan, D. Crawford, B. Serviss, M. Esposito 1. Agenda Review: Additions, deletions or changes in order of agenda items: No changes were made to the Agenda. 2. Comments & Questions from the public not related to the Agenda: Ms. Waters and Mr. Lowey addressed the Council regarding the increase in “smash & grab” robberies in the Red Rocks Park parking lot. They spoke of their efforts to get police enforcement and of the need to have a sign warning people of the problem. Mr. Dorn noted that any sign would have to be approved by the Council and suggested that Ms. Waters and Mr. Lowey work with the Red Rocks Park Committee on a means to address the problem. 3. Announcements and City Manager’s Report: Mr. Dorn: Updated members on discussions with the three bargaining units whose contracts expire at the end of June. Progress is being made with the city’s new partners, Commons Energy regarding energy consumption and the potential to reduce energy use. Negotiations with the City of Burlington regarding their property tax appeal are ongoing, and progress is being made. There will be an update on 17 December on Market Street Design. In January, there will be a public input session on Garden Street Design. The Steering Committee budget presentation will take place on 21 January. The next meeting will include both an Auditor’s report and an Actuarial report. The acceptance of a portion of Holmes Road is on the Consent Agenda. All that remains is a cost-sharing discussion with neighbors. 4. Consent Agenda: a. Sign Disbursement b. Approve Minutes of 17 November 2014 c. Acceptance of portion of Holmes Road as a new City street Ms. Emery asked that the Minutes of 17 November be removed from the Consent Agenda. Ms. Emery then moved to approve the remaining Consent Agenda items. Mr. Shaw seconded. Motion passed unanimously. 5. Consider a Resolution Authorizing the City Manager to negotiate and execute a contract with SolarCity Corporation and the School District that will allow the construction of a solar array on the municipal landfill and agree to purchase solar credits from SolarCity: Mr. Dorn explained that this is a continuation of a process of a joint action of the City and School District on City-owned land near the Public Works Department. He noted there is some risk to the City. Encore and their partners are responsible for all permitting, construction and maintenance of the project for 20 years. The City pays nothing for the financing of this as it is part of the agreement. Power will be generated and purchased by Green Mountain Power (GMP) and GMP will bill the City at its usual rate and credit the City for residential use. The City ten pays Encore for the production of the power facility. The City will in all probability be paying GMP less over 20 years. The risk is that if the rate for residential electricity declines over the years, but trend lines have generally been upward. Mr. Dorn said the City feels the risk is offset by the benefit. Mr. Maratz explained that the project will be decommissioned at the end of its useful life. There is an option to extend the contract for 2 additional 5-year terms. The City also has the option to purchase the facility at the end of 7 years. Mr. Simson said this is a great way to use land that has no other use. Ms. Nowak added it is also a great collaboration between the City and School District. Mr. Simson moved to approve the resolution authorizing the City Manager to negotiate and execute a contract with SolarCity Corporation and the School District for the construction of a solar array on the municipal landfill and agree to purchase solar credits from SolarCity. Ms. Emery seconded. Motion passed unanimously. 6. Hear Presentation from Representatives of the South Burlington Friends of the Library and from Common Roots regarding their potential joint use of the Wheeler Homestead building and consider a resolution authorizing the City Manager to negotiate and execute a lease agreement with the South Burlington Friends of the Library and with Common Roots for the use of the Wheeler Homestead: Mr. Dorn reviewed the history and noted the building has been unoccupied since the last tenant left. He stressed that it is not good to have a vacant building. Members of both the “Friends” and Common Roots explained how they will use the building and both thanked the City Council for the opportunity to do this. Ms. Nowak then read the Resolution. Ms. Emery moved to adopt the Resolution as presented. Mr. Shaw seconded. Motion passed unanimously. 7. Interview Applicant for City Boards, Committees, and Commissions: The Council interviewed David Crawford for the City’s representative to the Winooski Valley Park District. 8. Update on School/City Master Planning & Visioning: Mr. Dorn reviewed the history, noting that the direction of talks changed when Saxon Partners made their proposal to purchase Central School. He also noted that the price tag of consultants and an appraisal has gone up to $111,000 for the whole package (including public outreach). The city’s share of this would be $50,000, which has not been budgeted. There is a Consulting budget of $45,000, but this was earmarked for City Center. Mr. Dorn stressed that there are massive issues being addressed. The Saxon Partners plan would add 12 acres to City Center which is losing land to wetland mitigation, etc. It also raises the issue of where education in the community is headed. Ms. Nowak asked if the cost could be spread over 2 fiscal years. Mr. Dorn said possibly, but the preference is to have a decision sooner rather than later. He said the City could be going to the voters with some real decisions on debt as early as next fall. Mr. Simson noted that Saxon Partners seemed to have a sense of urgency and he would hate to see the opportunity with them lost because of a delay on the city’s part. Mr. Dorn noted this is a good time to go out for money, but that could change in 6 months. He added that the School District may want to do an RFP on the school. Ms. Nowak noted there are a lot of timeframes to fit things into and they’re moving along quickly. She noted that developers have “inexpensive money” at this time, but offers can go away and not come back. She noted the number of key businesses going into the Burlington downtown Mall, and that was not on the table when Saxon made its proposal. She felt residents deserve to have this money spent on researching the situation. Mr. Hubbard said if the Council allowed management the flexibility to move money from one department to another, there may be some “cushions” to tap into. He specifically noted the actuarial report of valuation, which is higher than anticipated. He said staff can come back with a recommendation. Members agreed to have staff bring them something to suggest where funding for the studies can come from. Ms. Emery asked if there are other accounts that might need extra funding. Mr. Hubbard noted some cuts that were made (e.g., Winooski Valley Park District). Ms. Serviss said she thinks what is happening is great. She noted a survey that is being circulated that contains a lot of “misinformation.” Mr. Dorn said it is not a City survey. 9. Liquor Control Board: Ms. Emery moved that the Council reconvene as Liquor Control Board. Mr. Shaw seconded. Motion passed unanimously. The Board reviewed entertainment permits for Magic Hat for events on 18 December 2014 and 22 January 2015. Mr. Shaw moved to approve the entertainment permits for Magic Hat as presented. Ms. Emery seconded. Motion passed unanimously. Mr. Shaw moved to reconvene as City Council. Ms. Emery seconded. Motion passed unanimously. 10. Other Business: a. Items Held From Consent Agenda: Ms. Emery noted that on p. 3 of the Minutes of 17 November, next to the last paragraph, the amendment proposed by Ms. Riehle was retracted. Ms. Emery then moved to approve the Minutes of 17 November 2014 as amended. Mr. Shaw seconded. Motion passed unanimously. Members then discussed re‐instituting the “Councilor Corner” column in The Other Paper. Ms. Nowak suggested including a number of things that are happening, not just focusing on one issue. Ms. Emery agreed to do a December column, Mr. Shaw a January column, Ms. Nowak a February column, and Ms. Riehle a March column. Mr. Dorn raised the question of whether to renew discussion on changes to the committee structure. Ms. Nowak noted that not as many people are applying for committees as there used to be. She suggested waiting until the new year to have the discussion as the Council has a lot to deal with before then. Mr. Simson noted it is easier when committees are staffed by city staff. He felt having fewer committees would allow for better staffing. He also would like to see a synopsis of what each committee does. Members agreed to continue the discussion on this topic in February. As there was no further business to come before the Council, Mr. Shaw moved to adjourn. Mr. Simson seconded. Motion passed unanimously. The meeting was adjourned at 8:25 p.m. Published by ClerkBase ©2019 by Clerkbase. No Claim to Original Government Works. South Burlington Water Dept. Accounts Payable Check Register Date: 12/02/14 Date Check No. Paid To Memo Amount Paid 12/2/2014 2672 E.J. Prescott, Inc. 1,663.17 Date Voucher Number Reference Voucher Total Amount Paid 11/10/2014 VI-13533 4881681 1,663.17 1,663.17 12/2/2014 2673 Ferguson Waterworks #590 88.83 Date Voucher Number Reference Voucher Total Amount Paid 11/12/2014 VI-13532 0371631 88.83 88.83 12/2/2014 2674 SoVerNet, Inc. 41.27 Date Voucher Number Reference Voucher Total Amount Paid 11/15/2014 VI-13530 3441029 41.27 41.27 12/2/2014 2675 Joyce E. Stutler 193.38 Date Voucher Number Reference Voucher Total Amount Paid 11/18/2014 VI-13531 355191 193.38 193.38 12/2/2014 2676 Walsh Electric Supply 13.54 Date Voucher Number Reference Voucher Total Amount Paid 11/10/2014 VI-13534 1500219-00 13.54 13.54 Total Amount Paid: 2,000.19 SOUTH BURLINGTON CITY COUNCIL _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ Printed: November 25, 2014 Page 1 of 1 CITY COUNCIL     17 NOVEMBER 2014  The South Burlington City Council held a regular meeting on Monday, 17 November 2014, at  6:30 p.m., in the Conference Room, City Hall, 575 Dorset St.  MEMBERS PRESENT:  P. Nowak, Chair; H. Riehle, C. Shaw, M. Emery, J. Simson  ALSO PRESENT: T. Hubbard, Deputy City Manager; J. Barlow, City Attorney; P. Conner, Director  of Planning & Zoning; J. Rabidoux, Public Works Director; T. Goodwin, Recreation Director; B.  Terry, Interim Recreation Director; B. Nowak, M. Monte, S. Dopp, S. Quest, M. Simoneau, D.  Crawford, N. Warner, L. Michaels, S. Dooley, L. Yankowski, S. Mazowita  1. Executive Session:  Ms. Riehle moved to find that premature general public knowledge of confidential mediation  communications related to the Burlington International Airport property tax litigation would  clearly place the City of South Burlington at a substantial disadvantage and further moved to  enter executive session to discuss the mediation of the pending Burlington International Airport  property tax litigation, said executive session to include City Attorney Jim Barlow and Attorney  Bob Fletcher.  Ms. Emery seconded.  Motion passed unanimously.  Regular Session:  1. Agenda Review: Additions, deletions or changes in order of agenda items:  No changes were made to the Agenda.  2. Comments & Questions from the public not related to Agenda items:  No issues were raised.  3. Announcements & City Manager’s Report:  There was no City Manager’s Report.  Council members reported on meets and events they had attended.  4. Consent Agenda:  a. Sign Disbursement  b. Approve Minutes for 30 October, 3 November and 8 November 2014  c. Authorize promissory note allowing borrowing from sewer fund to finance fit‐ up of 19 Gregory Drive lease space  Ms. Emery asked to remove the Minutes of 8 November from the Consent Agenda.  CITY COUNCIL, 17 NOVEMBER 2014, PAGE 2  Ms. Emery moved to approve the Consent Agenda minus the Minutes of 8 November.  Mr.  Simson seconded.  Motion passed unanimously.  5. Recognition for Todd Goodwin:  Mr. Hubbard noted that Mr. Goodwin has been with the City for 34 years, having been hired as  a 15 year old and having served outstandingly in many capacities in the Recreation Department.   He is respected by all for his energy, enthusiasm, planning, organization and friendliness.    Council members wished Mr. Goodwin well in his new position in Williston and presented him  with a photo to hang in his new office.  6. October Financial Report:  Mr. Hubbard reported on expenses and revenues for various departments which are within the  range expected one‐third through the fiscal year.  The Fire Department is on the high side for  expenses with the purchase of a new truck.  Tax appeals and legal costs are much higher than  anticipated due to the Airport litigation.  The Planning Department is already at 62% of  projected revenue; fire inspections are at 80% of anticipated revenues.  Mr. Hubbard said that overall it is a very healthy picture.  7. Receive and possibly take action on the report and resolution presented by the  Affordable Housing Trust Fund Feasibility Committee:  Ms. Dooley recognized the input of the City Manager and Deputy City Manager and of  committee members.  Ms. Dooley noted that many people are paying 30% to 50% of their income for housing, which  is not a healthy situation.  To address this, the committee recommends that the City Council  establish a South Burlington Housing Trust Fund and to begin funding it with $200,000 from the  general fund budget.  They also recommend adding ½ % to the Rooms & Meals local option tax.  Ms. Dooley noted that housing creates jobs in a community; it provides children for the schools;  adds to sales and property tax revenues, and promotes public health.  Mr. Michaels noted that they have 50 people on the waiting list at Country Park.  He added that  affordable housing allows people to move into and stay in the city and allows employees in  service positions to live in the city where they work.    CITY COUNCIL, 17 NOVEMBER 2014, PAGE 3  Mr. Monte of Champlain Housing Trust explained that residences created under the trust pay  taxes, provide employment (architects, contractors, etc.), etc.  He noted that typically tax  payments are higher per acre because of increased density.  He felt $200,000 would be a great  start.  He then explained other funding mechanisms (e.g., tax credits, private financing, state  funding, etc.) that would go into the building of affordable housing.  Mr. Simson asked if there is a potential for the money to be needed in the next 18 months.  Mr.  Monte said there is.  They have been talking with a landowner in City Center area and with  Cathedral Square as well.  South Burlington is at the top of their list.  Mr. Monte also noted that all housing projects go through the city’s regulatory process (DRB,  etc.) and state, federal, archaeological reviews as well.  Most of their properties meet or exceed  state standards for energy efficiency as well.  Ms. Riehle asked if the housing would be permanently affordable.  Mr. Monte said they would.  Ms. Nowak noted the original recommendation of $40,000 has now grown to $200,000.  Ms.  Dooley said they want to start with a significant amount.  Mr. Simson noted they originally had  a 3‐tier plan which, after discussion with the City Manager, became a 2‐tier plan.  They also  learned about a potential “right away project” and want to be in a position to act on that.  Ms. Nowak said one fear is that a Charter change to increase the Rooms & Meals Tax might not  pass in the city or Legislature.  She asked if there is a “plan B.”  Mr. Simson said it would depend  on what kind of project opportunities arise.  They could look for state grant money or try to go  to the voters again.  Ms. Dooley said that would depend on how close the vote is.  She noted  that the City of Burlington already has a full cent extra on their Rooms & Meals tax.  Ms. Nowak asked if individuals could donate to the Housing Trust.  Ms. Dooley said they can.  Mr. Hubbard said that the Council could consider an amount to fund at the budget discussion  on 10 January.  Ms. Emery moved to approve the Resolution amending the contribution amount to read “up to  $200,000.”  Mr. Simson seconded.  Ms. Riehle suggested a friendly amendment to add “and  support” to #5 of the resolution.  This was accepted by the motion makers.  In the vote that  followed, the motion passed unanimously.  Mr. Simson suggested soliciting members for a new housing committee.  Ms. Nowak said that  will be done as soon as possible.    CITY COUNCIL, 19 NOVEMBER 2014, PAGE 4  8. Guidance on the Proposed Impact Fee Modifications:  Mr. Conner explained the nature of impact fees and noted the proposed changes are more  structural in nature.  Step 1 of the modifications would tie impact fees to every year’s adopted Capital Improvement  Plan.  Mr. Rabidoux noted that as city council, committees, and technology changes, they don’t want  to be wedded to a project that becomes out of date and want to be able to slide in a new  project when appropriate.  Step 2 asks the Council to explore a new “public facilities impact fee” for such uses as a Library,  new City Hall, recreation facility, etc., in City Center.  This would be a funding source to go along  with the TIF.  Mr. Rabidoux said they have done some background work on what this would look like and  want to know whether to proceed.  Members supported going forward with this.  9. Receive presentation on scope of work to hire consultant to study future demand  for wastewater capacity and possibly take action on reserving capacity for City  Center:  Mr. Rabidoux reviewed the history.  He noted that a sewer plant is a community asset, the  same as any other asset.  He also noted the state’s estimation that within the next 20 years, just  about every municipality that has a sewer plant will be upgrading the plant for capacity.  Mr. Conner reminded the Council that they had asked for ideas on how to anticipate future  needs of the sewage treatment plant.  He noted that the city’s New Town Center designation  requires the city to state that there is adequate wastewater capacity in the planning horizon.   At present, there is 50,000 gallons per day (gpd) reserved for a very small area of City Center.   One idea has been to expand that area.  Ms. Nowak asked if there are federal and state grants to help offset some of the outlined costs.   Mr. Rabidoux said there are some very common loans sources and grants from the Regional  Planning Commission for planning.  The city has used all of these sources in the past.  Ms. Nowak asked if the Council can count on being notified if the city suddenly gets into the  70% of capacity usage.  Mr. Rabidoux said they maintain an average monthly flow for the state.  CITY COUNCIL, 17 NOVEMBER 2014, PAGE 5  Ms. Riehle asked if the recommendation is to go forward with all of the “plant modification  analyses.  Mr. Rabidoux said these are just recommendations.  The ones at the top of the list  are the most achievable and expedient.  He felt #1, #2 and #4 could be lumped together.  Ms. Emery asked why not designate a higher amount to reserve for City Center.  Mr. Rabidoux  said sometimes that number is used to control growth, so it can be a 2‐fold discussion.  Ms.  Emery asked how realistic the 50,000 gpd figure is.  Mr. Conner said for the small area it covers,  it is not far off.  In terms of the whole area for City Center and Form Based Codes, the number  would be larger.  Mr. Simson said if they work backwards from the date where the city is up for review of its New  Town Center designation, this doesn’t seem to have the steps needed.  He felt there needs to  be a “defensible number” for the city to submit to the state.  Ms. Riehle agreed.  Ms. Emery did  not feel 50,000 gpd was adequate to continue to gain approval of various boards.  Ms. Nowak asked when they can take a look and plan for greater capacity for the whole  community.  She noted discussions regarding development by the Medical Center at Tilley  Drive, by the Airport, etc.  Mr. Rabidoux said that would probably be in 10 years, if they don’t  have to deal with the TIF district.  He also said there could be more definite answers if the  private sector is willing to share growth plans.  There is also the unknown variable of another  dip in the economy.  Ms. Nowak noted there is not 590,000 gpd unallocated capacity today.  Ms. Riehle said a  reserve of 200,000 would still leave almost 400,000 for other building in the city.  Ms. Nowak  said she was not comfortable putting an arbitrary number on this with no definitive basis for it.  Mr. Shaw felt 200,000 gpd was “too rich.”  He felt the priority should be to look at that number  and see what would satisfy the “Downtown Board” so the city is in alignment with what they  are reviewing.  He added there are a lot of unknowns, and the Council has said it won’t use  sewer capacity to control growth.  Ms. Emery felt they don’t gain anything by being reluctant or overcareful.  Mr. Simoneau noted that in some communities the state might be looking for a level of  commitment because of low resources.  Ms. Dopp noted the city still hasn’t paid for the most recent upgrade to the Sewer Treatment  Plant, and there is not much appetite for adding to the tax burden.    CITY COUNCIL, 17 NOVEMBER 2014, PAGE 6  A representative of the Medical Center supported a longer term process.  She appreciated the  commitment to develop City Center and wanted to see a consistent commitment to other areas  of the city.  Ms. Emery said she felt the numbers were a “stalling tactic” and that providing a number would  show commitment.  Mr. Michaels noted that the 470,000 gpd number that has been talked about in the past was  just a “back of the envelope” number with no scientific basis.  He noted the city spent a lot of  money on consultants, many committees, etc., and felt that would strengthen the city’s  “commitment” to City Center more than a gpd number.  He also noted that the total amount  still owed on the current Sewage Treatment Plant update is $1,100,000 of which $700,000 will  be paid for by the Town of Colchester, leaving less than $500,000 for South Burlington.   Ms. Emery then moved to change the allocation from 50,000 gpd to 150,000 gpd.  Ms. Riehle  seconded.  Mr. Shaw felt this should cover the whole form based codes area.  The motion  makers accepted this amendment.  In the voted that followed, the motion passed unanimously.  Ms. Nowak stressed the need to look at the entire city and not just this area, specifically any  projects that could be built in advance of City Center.  Mr. Conner said staff will come back with an amendment to the Ordinance to reflect the  change just made.  10. Status of Chamberlin/BTV Planning Project:  Mr. Conner said the RFP for a consultant has gone out.  Advertising for committee members  will be in this week’s and next week’s Other Paper.  The expectation is to get the committee  going in mid to late January.  Interviews will take place the second meeting in December and  first meeting in January (if needed).  11. Introduction of Interim Recreation and Parks Director:  Mr. Goodwin introduced Betsy Terry who starts work on Monday.  Ms. Terry said she has been in and out of South Burlington City Hall for 30 years and is honored  to follow Messrs. Hubbard and Goodwin in the position.  She added that the city has a great  program.    CITY COUNCIL, 17 NOVEMBER 2014, PAGE 7  12. WVPD Presentation and Request for FY16:  Mr. Warner reviewed the history and noted that South Burlington is one of 7 member towns.   They are cutting their budget by 2% this year (to $324,000) and use the funds to manage 750  acres.  Ms. Nowak noted that although Colchester has 4 times the amount of land to manage than  South Burlington, they pay less.  Mr. Warner said they don’t use an acreage model as it does  not take into account “the big picture.”  Ms. Nowak said it is important for South Burlington to  have a clear understanding of the benefits it derives.  Mr. Warner said he will provide the city  with a copy of the budget.   19. Accept Red Rocks Park Management Report:  Mr. Goodwin cited the work of the committee and consultant Sophie Mazowita.  Committee members said the report is a “call to action” to preserve this unique and precious  property.  They stressed that the future of the park is in the Council’s hands.  They cited  examples of misuse of the park (overnight and long‐term camping, illegal parking, cutting down  of trees, overgrowth of view corridors, broken glass, etc.) and said these violations occur  because nobody is in charge.  Ms. Mazowita cited the importance of management for all of the city’s parks.   20. Provide guidance for the FY16 Social Services Agencies Funding Allocation:  Ms. Hubbard noted that Council members’ input was close to the average.  Members had no  issue accepting the proposed average.  Ms. Emery moved to accept the proposed allocation column as presented.  Mr. Shaw seconded.   Motion passed unanimously.   21. Liquor Control Board:  Ms. Emery moved that the Council convene as Liquor Control Board.  Ms. Riehle seconded.   Motion passed unanimously.  a. Special Event Permit – North Branch Vineyards – 11/21‐23:  Ms. Emery moved to approve the Special Event Permit for North Branch Vineyards as  presented. Ms. Riehle seconded.  Motion passed unanimously.  CITY COUNCIL, 17 NOVEMBER 2014, PAGE 8  Ms. Emery moved to reconvene as City Council. Ms. Riehle seconded.  Motion passed  unanimously.   15. Other Business:    a. Item Withheld from Consent Agenda:  No changes were made to the Minutes of 8 November.  Ms. Emery moved to approve the Minutes of 8 November 2014 as written.  Ms. Riehle  seconded.  Motion passed unanimously.  Mr. Shaw noted that the crossing at the Sheraton in the evening is very dark.  There has already  been a fatality there, and lighting improvement is vastly needed.  There is no safe place to  cross, and no island for safety.  Ms. Emery noted a discussion on Front Porch Forum regarding airport noise and people  complaining that if they call the airport, they are told it is the Air Guard’s responsibility and vice  versa.  Ms. Nowak noted there is now a person’s name at the Air Guard to contact.  She also  noted that one person is responsible for more than 100 of the noise calls.  As there was no further business to come before the Council, Mr. Simson moved to adjourn.   Ms. Emery seconded.  Motion passed unanimously.  The meeting was adjourned at 11:05 p.m.         _______________________________, Clerk        R-2014- RESOLUTION A RESOLUTION AUTHORIZING THE CITY MANAGER OF SOUTH BURLINGTON TO EXECUTE AN AGREEMENT WITH SOLARCITY TO DEVELOP A NET-METERING SOLAR ARRAY ON THE CITY LANDFILL AND PURCHASE NET-METERING CREDITS ONCE THE AGREEMENT HAS BEEN NEGOTIATED WHEREAS, the City of South Burlington has an interest in reducing the City’s dependence upon non-renewable energy sources and reducing energy costs; and, WHEREAS, the City Council authorized the signature of a letter of intent with Encore Redevelopment to enter into an agreement with SolarCity to develop a net-metered solar array on the City landfill and to purchase the net metering credits in partnership with the School District; and, WHEREAS, last month Encore Redevelopment provided the City with an agreement with SolarCity to review; and, WHEREAS, this project has some financial risk but also would reduce the carbon footprint of the City and the School District and potentially provides financial savings to taxpayers; and, WHEREAS, the Energy Committee has proposed the following goal for the City of South Burlington "Achieve a reduction of 20% in carbon dioxide-equivalent emissions from 2009 levels by 2020 through an increase renewable energy production and reductions in energy use in the following sectors: transportation, commercial/industrial, residential, municipal/school;" and, WHEREAS, the City is participating in the Georgetown Energy Prize Competition and this will contribute to the City’s efforts. NOW, THEREFORE, BE IT RESOLVED that the South Burlington City Council hereby authorizes the City Manager to execute a contract execute an agreement with SolarCity to develop a net-metered solar array on the city landfill and purchase net-metering credits once the agreement has been negotiated. APPROVED this _____ day of December, 2014. SOUTH BURLINGTON CITY COUNCIL __________________________________ _________________________________ Pat Nowak, Vice-Chair Helen Riehle __________________________________ _________________________________ Meaghan Emery, Clerk Chris Shaw __________________________________ John Simson 575 Dorset Street South Burlington, VT 05403 tel 802.846.4107 fax 802.846.4101 www.sburl.com REGULAR MEETING To: Kevin Dorn, City Manager From: Ilona Blanchard, Project Director Re: Resolution Authorizing the City Manager to Execute an Agreement with SolarCity to Develop a Net-Metering Solar Array on the City Landfill and Purchase Net-Metering Credits once the Agreement has been Negotiated Date: November 25, 2014 Background: In order to reduce the City’s impact on the environment, stabilize and/or reduce costs related to electrical usage, and otherwise to improve the long term sustainability of the City, the City Council authorized the establishment of a partnership with Encore Redevelopment to develop renewable energy generation resources. Last May the City Council authorized the City Manager to sign a letter of intent and to negotiate a contract to develop a net metering project on the City landfill. In October, Encore provided the City with a contract with SolarCity, their partner, to review. Once it is fully negotiated and reviewed for legal sufficiency, the resolution that is before the City Council will authorize the City Manager to execute this agreement. The South Burlington Energy Committee in support of the development of a solar array on the City’s landfill. City Landfill Net Metering Project The City’s landfill has been capped for some time. As the land is otherwise inaccessible and unusable it has often come up as a potential site for a solar array. Legislative language put forward by Senators Ashe and Lyons last year extended net-metering financial benefits to projects over 0.5 MW if they are on municipal landfills. This offsets the additional costs of placing a solar array on these sites. Prior to engineering, Encore is estimating that the project will be a 1.8MW project which would generate approximately 2,200,000 kWh per year. Due to the amount of credits that will be generated, the City is partnering with the School District so that the School District and the City purchase all the energy credits. Deal Offered Through this net metering project, the City and the School District would receive the energy and “solar adder” net metering credits (GMP provides these on electric bills per kWh) generated by the project. The energy credit is the residential retail rate for electricity, currently 14.7 cents per kWh. The “solar adder” net metering credit is expected to be between 4 and 5 cents per kWh and once set, is available for the first 10 years. The energy credit is available for the full twenty years and will change with the residential rate. Encore will construct the array and manage it. The Letter of Intent establishes what the City will pay Encore. The City would pay Encore 17 cents per kWh for the first ten years (when the City receives the “solar adder” plus the residential rate energy credits on electric bills). For year one the credit will be 19-20 cents per kWh. For years 11-20 the City would pay Encore .145 cents per kWh and receive from GMP whatever the residential rate is at that time as a credit. The financial savings (loss) from this offer is calculated as the credits minus what the City pays SolarCity. The project monetary value for the City will depend upon the rate at which the cost of electricity per kWh increases. Historically, the price of GMP kWh has increased, on average, 3% per year. • If the average kWh price increase for twenty years into the future is also 3% per year the project is estimated to yield over two million dollars (to both partners). • If the average kWh price increase per year over 20 years is zero, the project is estimated to yield $530,000 (to both partners). • If the average kWh price increase per year over 20 years is -1% (i.e. price of electricity falls steadily), then the Project is estimated to cost $50,000 (between both partners). This project also has value in it is a reduction in the City’s carbon footprint. In contrast with a municipally owned system, the City will not have upfront costs, nor be responsible for permits, insurance or maintenance, nor, so long as the system is privately owned, decommissioning the system. SolarCity will also be responsible for re-opening the landfill permit. The City has offered to partner with the School District due to the volume of net-metering credits the project will produce. Splitting the credits with the School District ensures that 100% of the credit value generated by the project is absorbed. By using fewer credits than the City’s total energy demand, the City also reserves capacity to undertake future efficiency improvements. Sharing the project credits with the School District retains the potential financial benefit to City residents. The contract will include provisions for the City to consider purchasing the facility, term, contract pricing and conditions, obligations of parties, and requirements related to construction, insurance, warrantees and additional detail as required. Attachments: • Resolution Authorizing the City Manager to Execute an Agreement with SolarCity to Develop a Net-Metering Solar Array on the City Landfill and Purchase Net-Metering Credits once the Agreement has been Negotiated Policy: Under §13-103(b) of the Charter, “the city … may sell, lease, mortgage, hold, manage and control such property as its interest may require.” Unless otherwise provided by law, the City acts through a majority of its legislative body, the City Council, or through the voters. - Charter §13-303(b) Achieve a reduction of 20% in carbon dioxide-equivalent emissions from 2009 levels by 2020 through an increase renewable energy production and reductions in energy use in the following sectors: transportation, commercial/industrial, residential, municipal/school – Energy Committee recommended goal for the draft South Burlington Comprehensive Plan Recommendation: Review and consider approving the resolution. R-2014- RESOLUTION A RESOLUTION AUTHORIZING THE CITY MANAGER OF SOUTH BURLINGTON TO ENTER INTO A LEASE AGREEMENT FOR THE USE OF THE CITY OWNED PROPERTY KNOWN AS THE WHEELER HOMESEAD BUILDING WHEREAS, the City of South Burlington owns property near the Southeast corner of Swift Street and Dorset Street commonly referred to as the Wheeler Homestead; and, WHEREAS, the City has previously leased this property to a private non-profit organization for their use, but said lease has expired and the building now sits vacant; and, WHEREAS, two locally based non-profit organizations have expressed an interest in leasing and utilizing a portion of the Wheeler Homestead Building in order to support their mission; and, WHEREAS, it is in the interest of the City to have the building occupied on a regular basis in order to ensure that it is maintained in an appropriate fashion; NOW, THEREFORE, BE IT RESOLVED that the South Burlington City Council hereby authorizes the City Manager to negotiate and enter into a lease agreement for the use of the Wheeler Homestead Building. APPROVED this _____ day of December, 2014. SOUTH BURLINGTON CITY COUNCIL __________________________________ _________________________________ Pat Nowak, Vice-Chair Helen Riehle __________________________________ _________________________________ Meaghan Emery, Clerk Chris Shaw __________________________________ John Simson