City Council Minutes 04-27-2015 Special (solar)MINUTES
SPECIAL MEETING — MONTICELLO CITY COUNCIL,
Monday, April 27, 2015 — 5:30 p.m.
North Mississippi Room, Monticello Community Center
Present: Brian Stumpf, Charlotte Gabler, Lloyd Hilgart, Tom Perrault, Glen Posusta
Absent: None
Others: Jeff O'Neill, Angela Schum.arr., Shibari Bissor. (WSB',, Bret Weiss (WSB',, Steve
Grittman (NAC), Dean Leischow (Sunrise Energy Ventures, LLC), Phil Carlson
(Stantech), Jim Coit (landowner), Mel Enger (landowner)
1. Call to Order
Brian Stumpf called the special meeting to order at 5:30 p.m.
2. Purpose of Meeting: Sunrise Ventures Solar Array Proposal
Jeff O'Neill explained that the purpose of the meeting is to review the proposed solar
facility concept and consider potential land use and infrastructure financing implications
of developing such a facility within the city's planned growth area.
3. Workshop: Solar Energy Legislation
O'Neill introduced Dean Leischow, Managing Director of Sunrise Energy Ventures, who
presented a brief overview of the solar facility proposed for Monticello.
Leischow explained that Sunrise had contracted to purchase the 640 acre Silver Springs
golf course property and had been working with City staff to address annexation
concerns. Leischow said that Sunrise had considered alternate sites but had selected this
site primarily due to its proximity to three distribution lines to the Xcel Energy
substation. He pointed out that Sunrise had identified several site configurations which
can be adjusted to stay out of the way of roads and development. Leischow noted that the
proposed facility would be the largest megawatt facility that Sunrise had developed.
Leischow said that the solar facility would create no sight line issues as it would be 5 -6
feet off the ground in a flat position and 10 feet at its highest point. He said that there
would be no reflection and no lighting other than a security light at the gate. There would
be a 6 -7 foot chain link fence with three strands of barbed wire. He indicated that the
facility would be very quiet.
.Leischow pointed out that the property had not generated any tax benefit when zoned for
agricultural use. He noted that developing the site as a solar facility use would generate
some incremental revenue and property taxes. He pointed to a total area energy credit
benefit of $21 million. This includes $7 million for the school district, $3.2 million for
the hospital district, $1.1 million for Wright County, $3.4 million in production taxes and
a $6 million reduction in energy bill for Monticello.
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Bret Weiss pointed out that the City has the option of buying a subscription from another
energy provider. Leischow listed numerous organizations that had already signed up for
the 300 megawatts of solar energy approved through Xcel Energy. He said that building
the facility at this location guarantees Monticello a seat at the table. He indicated that
there would be a 10% reduction in the energy bill at the start and a 3% increase annually.
He suggested that participation results in an instant savings and a perfect hedge against
inflation.
Leischow summarized that the proposed facility would provide for a community -based
solar program. He said that Sunrise is offering to make Monticello the greenest city in
Minnesota. This includes providing residents (with at least a 660 credit score), the
opportunity to participate as a solar subscriber. He suggested that this program provides a
good alternative for residents who would like to utilize solar energy without having to
buy it, install it on their roof, and maintain it. He pointed out that Sunrise has the
financing structure and administrative capabilities to offer this type of solar program.
Leischow explained that Xcel has contracted with Sunrise to purchase all of the solar
power produced by the proposed facility. He indicated that the program would be fully
subscribed when established. He suggested, however, that there may be options which
could offer subscriptions to new businesses.
Steve Grittman said that Monticello is likely to grow at a faster pace than it had over the
last 25 years. He indicated that the primary land use concern is that the proposed
development may impede or displace other opportunities for development in an area
planned for long term growth. He explained that a certain density of development is
necessary to support the cost of establishing the infrastructure required to serve the area.
Grittman suggested that losing a significant amount of development potential would
negatively impact the City's ability to finance future transportation needs.
Shibani Bisson explained that the Monticello Orderly Annexation Agreement requires
that any land annexed be served by water and sewer infrastructure. She pointed out that
the City had already invested in a large lift station and associated piping to serve the area
at the time that Chelsea Road was constructed.
Staff estimate that Sunrise would be assessed for 50% of a 2700 feet trunk sewer
extension from the lift station to the corner of the property. They would also pay a lateral
share of the cost extending utilities (less the cost of oversizing pipes) 6500 feet along
County Road 39. City policy requires that trunk fees be paid at time of building permit.
General sewer water storm fees would be applied to the property like any other
development. SAC and WAC charges would not apply because the solar facility would
not connect to those services.
Bisson also explained that the City has been discussing future interchange locations with
MnDOT. She noted that the proposed solar facility site is included within the interchange
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planning area and that the property would be assessed based on the estimated benefit of
its proximity to the interchange.
Bisson indicated that staff had also developed conceptual cost estimates and alignments
to accommodate connections from collector road networks identified in the
Transportation Plan from County Road 39 to the Orchard Road overpass. The developer
would be required to pay their share of the lateral road assessments when development
occurs. Sunrise would also be responsible for providing the necessary roadway for right
of way extension.
Phil Carlson stated that Sunrise has agreed to pay its fair share of costs like any other
developer would be required to do. He indicated that they have worked cooperatively
with staff and that they are very close to agreeing on most terms. He indicated, however,
that there is a need to continue the discussion related to trunk fees because the facility
would not utilize the trunk lines. He also pointed out that the site would not require
services of any kind. Jeff O'Neill suggested that the requirement that developers share in
the cost of trunk fees enables the City to fund future development.
Bret Weiss suggested that the tax benefit of $400,000 and the solar production benefit of
$600 - 700,000 over 25 years is of marginal value to the City. He acknowledged that
opportunity to develop infrastructure in that area would be beneficial but does not think
the City should consider an agreement without collecting trunk fees. He recommended
that the City wait and see what happens with the interchange because there may be
changes in development patterns.
Leischow suggested that Sunrise would like to move forward with a letter of intent and is
ready to determine what kind of assessment agreement would be involved.
Brian Stumpf suggested that Sunrise pay for the cost of staff and attorney time spent
reviewing these issues. Leischow agreed that would be fair.
Stumpf also indicated that he'd like the full council to attend a second workshop to
further consider the issues.
3. Adjournment
LLOYD HILGART MOVED TO ADJOURN THE SPECIAL MEETING AT 6:54 P.M.
TOM PERRAULT SECONDED THE MOTION. MOTION CARRIED 5 -0.
Recorder: Derry Burri W
Approved: May 26, 2015
Attest: 04;;�_Z &A14_1U
CiqWinistrator
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