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Home My WebLink AboutMINUTES-2012-04-30-2012City of Evanston SPECIAL CITY COUNCIL MEETING CITY OF EVANSTON, ILLINOIS LORRAINE H. MORTON CIVIC CENTER COUNCIL CHAMBERS Monday, April 30, 2012 Roll Call: Alderman Rainey Alderman Wilson Alderman Burrus Alderman Holmes Alderman Braithwaite Alderman Tendam Alderman Wynne Alderman Grover Alderman Fiske (arrived at 6:15 pm after Roll Call) Presiding: Mayor Elizabeth B. Tisdahl The Mayor called the Special Meeting of the City Council to order after a Rcll Call established a quorum at 6:07 PM. Mayor Tisdahl then announced a change in the order of the agenda. Due to the request of a citizen (Mr. Bova) she decided to allow the presentation of the Electricity Aggregation to go first and then Citizen Comments so to give those who are watching at home an understanding of the process and the questions that will be asked. City Manager Public Announcements Mr. Bobkiewicz announced that Mr. Stoneback, Director of Water & Sewe-, and Catherine Hurley, Sustainable Programs Coordinator. Mr. Stoneback gave a power -point presentation of the process and the selection of an Electric Supplier for the City of Evanston. There were three suppliers that were identified: Constellation, MC Squared, and First Energy. They decided to strike up an agreement with Constellation for a 12 month period. (The following Memorandum and presentation by Mr. Stoneback can be observed directly below). 1 MINUTES April 30, 2012 Page 2 of 8 For City Council meeting of April 30, 2012 Item III Business of the City by Motion For Action Memorandum Evi Aar To: Honorable Mayor and Members of the City Council From: David Stoneback, Director of Utilities Catherine Hurley, Sustainable Programs Coordinator Subject: Community Choice Electricity Aggregation Selection of Electric Supplier, Agreement Term and Percentage of Renewable Energy (RFP 12.105) Date: April 30, 2012 Recommended Action: Staff recommends that City Council authorize the City Manager to execute the Master Agreement to Provide Services to an Aggregated Group with Constellation NewEnergy Inc. (550 W. Washington Blvd, Chicago, It.) for a 12-month term with a 100% renewable energy mix at the price of $0.04797 per kilowatt hour. Contract Term: Staff recommends that the term of the agreement be 12 months since the difference between the low prices received for the 12 month and 24 month term (for the different quantities of renewable energy mix) is more than ten percent (10%). Enerav Mix: Staff recommends that a minimum 75% renewable energy mix is selected since this appears to be the only feasible, cost effective way to meet the City's greenhouse gas emissions reduction goal. The actual cost difference between the 75% and 100% renewable energy mix for the 12 month term is $0.00027 per kWh. This is well below staff recommendation to select the 100% renewable if the cost difference is less than $0.001. Analvsis: Proposals were received from the three pmqualified Alternative Retail Electric Suppliers (ORES\ IicfnA halnur Thnen +hron �R�S urern nrenu�lifinrl h�eer! nn +hnir rnennnono +n MINUTES 1 1 1 April 30, 2012 Supplier Constellation NewEnergy, Inc FirstEnergy Solutions Address Page 3 of 8 550 W. Washington Blvd., Suite 300 Chicago, IL 60661 341 White. Pond Drive, Akron OH 44320 MC Squared Energy Services,, LLC 10 South Riverside, Suite 1800, Chicago, IL 60606 A summary of the prices provided for the actionable prices received by 12:00 p.m. today are shown in Table 1. Table 1 — Summary of Pricing Received Constellation MC Squared First Energl--i Energy Mix I Cost per kilowatt hour ($ / kWh) 12 month 24 month 12 month 24 month IL RPS Compliant (7%) $0.04690 $0.05166 $0,04712 $0.05186 75% Renewable Energy $0.04770 $0.05274 $0.04786 $0.05261 Non Responsive 100% Renewable Energy $C.04797 $0.05310 $0.04809 $0.05285 The prices highlighted in yellow above indicate the low price for the various terms and renewable energy mix options. In comparison, the ComEd tariff rate is $0.07733 / kWh. First Energy failed to comply with section 3.2.1 of the RFP in that it failed to identify its pricing in the required Exhibit A "Pricing Options Form". This failure must be deemed nonresponsive with the terms of the RFP. Furthermore its failure to identify its pricing in this way precludes consistent and readily .measureable pricing as related to the two other proposals received. As seen in Table 1, the low price is not always from the same ARES. The calculated price difference between the agreement term and renewable energy mix options, based on the actual lowest prices, ,are shown in Tables 2 and 3. Table 2 — Term Price Difference Energy Mix Cost ($ / kWh) 12 month 24 month % Difference IL RPS Compliant (7%) $0.04690 $0.05166 10.15 75% Renewable Energy $0.04770 $0.05261 10.29 100% Renewable Energy $0.04797 $0.05285 10.17 Since the price difference is more than 10%, staff recommends a 12-month term be awarded. Table 3 — Renewable Energy Mix Price Difference (12 month term) Cost Increase Renewable Energy Option $ / kWh $ / kWh 75% Renewable Energy $0.04770 100% Renewable Energy $0.04797 $0.00027 2 MINUTES April 30, 2012 Page 4 of 8 Since the price difference 75% and 100% renewable energy is less than $0.001, staff recommends that the 100% renewable energy mix option be awarded. Table 4 below shows the impact of potential cost savings realized on the supply side of a customer's bill by a typical, single family home which uses 9,000 kWh on an annual basis. Price $ per Estimated Year 1 Savings kWh (12 month Annual from ComEd term) Supply Cost Price ComEd Supply - Price to Compare $0.07733 $ 696 IL RPS Compliant (7%) $0.04690 $ 422 $ 274 175% Renewable Energy $0.04770 $ 429 $ 267 1 100% Renewable Energy $0.04797 $ 432 $ 264 Based on staffs recommendation to award a 12 month term agreement with Constellation NewEnergy with a 100% renewable energy mix, the typical single family home which used 9,000 kWh on annual basis, will save $264 annually, or $22 month. Municipal Comparisons: Table 5 below provides a comparison of prices for municipal aggregation from neighboring communities. Community / Price ($1 Buying Group kWh) Agreement Details % renewable Awarded energy Evanston $0.04690 1-year contract 7% Spring 2012 Evanston $0.04797 1-year contract 100% Spring 2012 Northwest Suburban 1-year contract with $0.04775 Electricity Buying option to extend for 2 100% Spring 2012 Group more years North Shore 3-year contract with Electricity $0.04836 Aggregation new prices each 12 7% Spring 2012 Consortium months Lincolnwood, Grayslake & $0.05520 2-year contract 7% Fall 2011 Oak Brook Oak Park $0.05780 2-year contract 100% Fall 2011 The Northwest Suburban Electricity Buying Group includes the communities of Buffalo Grove, Lincolnshire, Long Grove, Palatine, Vernon Hills and Wheeling. The North Shore Electricity Aggregation Consortium includes the communities of Deerfield, Glencoe, Lake Bluff, Northbrook, Skokie, Highland Park, Lake Forest and Park Ridge. 3 MINUTES April 30, 2012 Page 5 of 8 Alderman Rainey motioned to accept the recommendation of staff to have an agreement written to allow Constellation to be the Supplier to the City of Evanston for Electricity, and it was seconded. Mayor Tisdahl accepted the motion but stated we needed discussion from the public. Questions and Concerns from the Aldermen: 1) What are the fee citizens are paying who have already gone with another Electric Co.? Answer: The cities vary, but somewhere around .06 kilowatt hour, people who have contracted with other distributors will not be included, but will be able to sign up later at the price the City has under the current conditions 2) What can be done concerning solicitors coming to your house with picture ID's stating they work for the City, to reach those citizens who do not have access to a computer or just not following the happenings in the City 3) Does the contract after the 12 months come up for renewal? Answer: There is no renewal at the end of 12 months the process would have to begin all over again. 4) Northwest Suburban Electricity has a one year contract with an option to extend future years will they maintain the same price? Answer: They will have to get prices every twelve months due to price fluctuations occur day-to-day. 5) Are we offering credits to this company? Answer: No we are not. 6) Do you know of any analysis out there on renewable energy since so many communities are opting in favor of? Answer: There are many analysis's out there and there are more renewable credits than what is being purchased, but they are subject to change. 7) Is Constellation & COMED owned by Exelon? Answer: Yes they are. Citizen Comment Nate Kidnis of 1642 Payne St. was in favor of the Aggregation and wanted the Council to vote for and then go home and have a good night's sleep. Padma Rao 2246 Sherman Ave. stated her attempts to opt out have been hindered by the City, and she doesn't want the City to interfere or dictate citizen's electric contracts. She is against the Electric Aggregation Contract. Mr. Bobkiewicz stated there was nothing to opt out of until the Council makes a decision. On the 14th of May staff will bring to the next Council Meeting time frames and how residents can proceed to opt out. Carl Bova 1322 Rosalie St. stated with the contract the residents will save an astounding 7.9 million dollars (savings of $22!month) for the Evanston community as a whole. He sated it is a great deal for the City and he strongly indorses it. His only concern is the 24 month fees. Eleanor Revelle 2815 Lakeside Ct. is the Vice -President of Citizens For A Greener Evanston and she is here to approve the aggregation proposal and the attempt to move closer to attaining 100% renewable energy. They will be coming back with further steps of how the City should proceed in reaching 100% renewable energy. Sue Carlson, 2679 Stewart is representing the Interreligious Sustainability Circle supporting the 100% option and she read a list of all who signed the letter previously sent to the Council with additions as seen in the letter dated April 4, 2012 directly below. MINUTES April 30, 2012 April 4, 2012 Letter from Religious Leaders To the Evanston City Council Page 6 of 8 As religious leaders, we calf upon the Evanston City Council to take advantage of the unique opportunity presented by the passage of the Consumer Choice Aggregation Referendum on. March 20, 2012. Evanston faces a historic opportunity to deliver on its Climate Action Goal of reducing greenhouse gases by 13 percent by the end of this year. Evanston voters have. authorized the City Council to negotiate with electricity providers for the greatest benefit — cost savings and clean energy. Oak Park, for example, launched: its electricity aggregation program last year. They made a commitment to 100 percent renewable energy, resulting in Oak Park residents and businesses saving 25 percent on the energy portion of their electricity bills and reducing greenhouse gas emissions by over 15 percent. We call upon the Evanston City Council to help wean Evanston from electricity generated by fossil fuels in favor of 100 percent sustainable, healthy energy from sources like wind and solar'r We can be responsible stewards of Creation at the same time that we lighten the, burden of energy costs. Rev. Tim Brown Trinity Lutheran Church The Reverend Debra Bullock, Rector St. Mark's Episcopal Church The Rev, Jeannette DeFriest., Rector St. Luke's Episcopal Church The Rev. Charles de Kay, Rector St. Matthew's Episcopal Church Dr. Mary Katharine Deeley Sheil Catholic Center at Northwestern University Sister Christina Fuller osf St. Nicholas Roman Catholic Church Carolyn DeSwarte Gifford Interfaith Action of Evanston Tim Higgins Sheil Catholic Center at Northwestern University Asayo Horibe Heartland Sangho Rev. Dr. Raymond Hylton First Presbyterian- Church of Evanston 1 1 Cantor Howard Friedland Jewish Reconstructionist Congregation of Evanston Fr. John Kartje Sheil Catholic Cen ter at Northwestern University MINUTES April 30, 2012 Fr. Tom Libera St, Athanasius Roman Catholic Church Rabbi Andrea London Beth Emet The Free Synagogue Rev. Bonnie lean Miller Rev. Richard Mosley, Jr. Hemenwoy United Methodist Church Rev. Janet Newman Unitarian Church of Evanston Fr. Robert Oldershaw St. Nicholas Roman Catholic Church Rev, Peg Otte Rabbi Brant Rosen Jewish Reconstructionist Congregation of Evanston Page 7 of 8 Rev. Dr. Ann L. Rosewall First Congregational Church of Evanston, UCC Rev. Daniel Ruen Grace Lutheran Church Rev. Gregory Sakowicz St Mary's Parish Rev. Frank C: Senn Immanuel Lutheran Church Rev. D.r.'Douglas Sharp Lake Street Church Cynthia K: Splatt St. Athanasius Roman Catholic Church Fr. Bill Tkachuk St. Nicholas Roman Catholic Church David L. Wokosin Ethicol Humanist Society The views and opinions expressed in this letter are solely those.of the religious leaders signing the letter. These views do not necessarily represent those of all individuals who attend the congregations, but they do represent a view of stewardship for Creation that. those religions teach and care about. MINUTES April 30, 2012 Page 8 of 8 Peter Achans, 1640 Maple Ave. #1508 was in favor of the aggregation and suggests the Council to approve the proposal. Alderman Wilson stated we are not buying renewable energy from renewable sources, but from Constellation which is a subsidiary of Exelon. Mayor Tisdahl called for a Roll Call vote to approve the proposal after the citizens had completed their comments, and the vote resulted in a 9-0 approval. So the Electric Aggregation proposal was approved with a rousing applauds from the audience. City Manager announced a 6:30 meeting next Monday for a Council Meeting to discuss Trader Joe's and the property associated with the location. Motion was made to adjourn and it was seconded and a unanimous voice vote was received and the meeting ended at 6:35 PM. Submitted by, Hon. Rodney Greene, City Clerk 1 1