South Haven City Council members heard a new solar pitch during their meeting on Tuesday, April 5, but this proposal didn’t require any city land in exchange for energy discounts.
"We’re going to save you money, guaranteed, on your electricity bills. And there is no risk and no investment needed by you," said Kurt Seestrom of Geronimo Energy, who attended the meeting to share more information about a solar garden program the company is pursuing.
Seestrom explained that the program was different than other community solar garden proposals in that it was available only to cities, counties and companies, not private residents.
In addition, he said that Geronimo was not looking for land in South Haven to build a solar array. Instead, the city is eligible to subscribe to arrays that, among other sites, will be built in Stearns and McLeod counties during the second half of 2016. By doing so, the city will receive savings of one cent per kilowatt hour, or about 10 percent savings overall, on its electricity bills.
A total of 28 solar gardens are planned in 17 Minnesota counties. One location in Chisago County was a 6-megawatt array, but the other gardens were all 5 MW or less.
To subscribe to the program, local government units or companies must simply be Xcel Energy customers and be within or adjacent to a county where a solar garden is located.
Seestrom said the city would have no investment or maintenance costs associated with the project, only an obligation to subscribe for a 25-year term. He added that the term obligation exists to ensure that there are users of the gardens, and that the investment to construct the gardens – about $100 million overall – is not wasted.
There is no financial risk to the city, however, as Geronimo and its financier, Berkshire-Hathaway out of California, bear the full responsibility for costs and maintenance.
"We do it all on our own dime, so we’re the ones that take the risk. And given Berkshire-Hathaway’s size and stature, that is not a concern," said Seestrom.
The community solar garden project has been approved by the Minnesota Legislature, the Public Utilities Commission and Xcel Energy, Seestrom said.
When councilor Norm Bodeker asked how long the city has to decide if it wants to participate, Seestrom said the likely the window to act is April and May.
"Beyond that I can’t guarantee (that subscriptions will still be available)," Seestrom said. "That’s not to strong arm you. It’s just to say that things will start to fill up."
The League of Minnesota Cities was reviewing the agreement that cities can use to join the program at the time of the meeting, and council members decided to wait until their May meeting before voting on joining the program so that the League’s review would be complete.
"It’s a simple sell, a fun sell, because it’s all on the up and up," Seestrom said in closing. "When it is government-approved, it’s hard to have to do some fast talking. It’s an easy way to save money. It really is."
Liquor ordinance
A considerable portion of the meeting was also spent discussing and adopting the city’s new liquor ordinance. Attorney Matt Brown explained that wholesale changes were needed after the closure of the municipal liquor store last year.
"(The new ordinance has) been tailored to address concerns and allow for the flexibility that current establishments are looking for, with some ability to expand," said Brown.
The ordinance allows for three off-sale liquor licenses in the city and three on-sale licenses. Restaurants that serve alcohol will not count toward the three on-sale licenses, however. Brown said the maximum of three of each license could be adjusted in the future if the council wishes, but explained that the number was chosen because it meets present demand with room for some growth.
Also, while the city allows three of each license, the approval of each license is up to the council’s discretion. Brown added that there is no statutory limit to the number of off-sale licenses the city could theoretically issue, but there is a maximum of five on-sale licenses that can be issued for bars, not counting restaurants that serve drinks.
The new ordinance does not allow setups.
After adopting the new ordinance, the council agreed to allow combination on- and off-sale intoxicating liquor licenses to both restaurants in town, Mom’s Place and Bedrock Bar and Grill. Mom’s Place had previously had a lesser on-sale 3.2 beer and wine license.
Other items
In other business, the council:
■ Discussed plans for the new South Haven Festival, which is replacing South Haven Days this year, and approved the new committee.
The event will be held on Saturday, July 30, and while the full schedule of events has not yet been determined, The Wagon Wheelers band will be playing country rock music from 4 to 8 p.m. in lieu of the wrestling show.
More details about the event are expected at the council’s May meeting.
■ Approved a resolution allowing mail balloting for the next election. This will allow the city to avoid about $11,000 in expenses to upgrade voting equipment. Another benefit is that the city will not have to recruit, train and pay election judges.
The only drawback noted by Wright County is that the voter is not immediately informed if the ballot is rejected for various infractions such as voting for too many candidates in a given race.
■ Heard from Fire Chief Kenneth "Oscar" Laney that there were four fire calls and five rescue calls in March.
Laney also said he had received a quote for $4,190 to address a drainage problem near the fire hall.
"When it rains, it’s a lake there," he told the council.
The council approved the expenditure of up to $5,000 to deal with the problem.
■ Discussed street maintenance with public works employee Daniel Dawson, then approved a payment of about $600 to sweep the paved roads in the city, and approved $5,000 for crack filling on city streets.
Dawson had also received a bid to paint yellow center lines on the Main Street, but council members felt that price was too high and directed Dawson to look into obtaining a lower rate.
In other business, Dawson reported that the city hall had two rentals and three usages in March, and that there were three rentals and nine usages scheduled for April.
■ Approved a one-day on-sale 3.2 beer permit at a fee of $25 that will allow the Fair Haven Lions to sell beer and soda at the fire hall during the firefighters’ smelt fry on Saturday, May 7.
■ Agreed to pay an Initiative Foundation contribution of $300 for 2016.
■ Agreed to allow the Annandale Baseball-Softball Traveling League teams to use the field in the city park from mid-May to the first week in July.
■ Renewed a contract with Frontline Warning Systems for service to the warning siren at the annual fee of $250. The siren is serviced in both the spring and the fall.
■ Agreed to allow the South Haven Fire Relief Association to conduct pull-tab gambling at Bedrock Bar and Grill.