Board Minutes – February 10, 2010

Attending: Jim Dyer, Werner Heiber, Kim Herb, Rebecca Koeppen, Lisa Mastny, Kelly Miller, Carolyn Moller, Marcus Renner, Eliza Searles, Dick White
Absent: Erich Bussian, Tyler Scheid
Observing: John Lyle, Lauren Martindale, Paul Spenser

 

 

 

Paul and Lauren said they were attending on behalf of Clean Energy Collective (CEC) in Carbondale. John said he is a member of the Smart Energy Committee and is working with the San Juan Citizens Alliance on developing a feed-in tariff locally with LPEA.

 

 

Dick made a motion to amend the December Board minutes. He said we did not receive the grant from La Plata County for the Social Enterprise Group, and that the resolution at the end of the section had a word missing. All were in favor and the motion was passed.

Dick also made a motion that we approve the December minutes, which was passed.

 

Rebecca made a motion to approve the retreat minutes, which was passed. Lisa said she will post the minutes on the website once they are finalized.

 

 

Lauren explained that the CEC is interested in expanding the market for renewable energy by creating an opportunity for local ownership by community members. The CEC hopes to provide utilities with a low-risk solution for partnering with the community, and has pilot efforts in Garfield County. The CEC would manage and develop community-sized renewables projects, including PV systems of 100 kW to 1 MW as well micro-hydro projects on municipal water supplies. They are asking that utilities allow customers to own renewable property that is not sited on their own property, but with the same ownership rules and provisions for net-metering, etc.

 

Lauren explained that these structures would essentially be coops within coops—voluntary programs where people can opt in at whatever level is comfortable to them. By taking advantage of bulk purchasing power, customers can lower the cost per kW. Renters would be able to invest in renewable energy and see the benefits in their utility bills. CEC’s proposal would also address site constraints—the site would be a community location, not an individual home or business. It would also address aesthetic issues and avoid the hassle of dealing with contractors and warranties. CEC would take on this responsibility.

 

The reason to do this in LPEA territory is to overcome the high cost barrier to entry via fractionalization—this would essentially be ownership for whatever someone can afford. The ultimate goal is to maximize ROI for people: the more kW hours produced, the higher ROI per customer. It would include bulk/group purchasing of equipment and low-interest loans.

 

Rebecca asked whether the land would need to be purchased to, say, start a solar farm. Who would own this land? Paul said that CEC members would own the panels and equipment.

 

Rebecca asked about the interface with LPEA. Lauren said the initiative needs to be mutually beneficial with LPEA. They have to agree to net meter or give credit for power production. CEC would give LPEA the generation data, and LPEA would put the credit on a customer’s bill. Lauren said LPEA probably wouldn’t want people to produce more than their load.

 

Dick noted that the City of Durango wants to do this via a solar farm on a parcel of land above town. Paul said that the obstacles are: wanting to do it, and being able to do it. They would have to persuade LPEA to want to. CEC has already built net-metering software that makes it possible to track and use credits. The CEC wouldn’t own anything. They have six projects working right now with Holy Cross and the City of Aspen. The big hurdle is the land-use process, and dealing with large solar arrays. 

 

Werner asked how the Sustainability Alliance can help. Lauren said she and Paul were meeting with Mark Schwantes at LPEA tomorrow and want to eventually present to the LPEA Board. They would want a big crowd then to give testimonies. Legally, LPEA doesn’t have to do this—they would have to want to. So they need pressure from the community, customers. A recommendation from the Sustainability Alliance would be useful—we are the first group they are talking to.

 

Dick said that CarbonZero has approached the County about similar initiatives, and might be a good local partner. They wanted to use PACE (Property Assessed Clean Energy) financing for their efforts, but Dick said he prefers the CEC approach. Lauren said the two main challenges are: 1) LPEA approval. 2) Cheap land use.

 

Carolyn asked whether big-box stores are good options for solar arrays. Paul said that these sites are not as long-term, since roofs need to be replaced, etc. They prefer vacant land, especially land not suitable for other purposes.

 

Rebecca asked how large a site is needed, and how close this needs to be to the city. Paul said that a 1 MW site is 3–4 acres, so they typically look for 5 acres. It needs to be close to power and to loads, so the power can be consumed close to where the generation is located.

 

Marcus said that Fort Lewis College has access to the old Ft. Lewis property, of 6,300 acres. He said they have discussed with LPEA placing a 2 MW solar array on the property, since it’s close to 2 large transmission lines. Dick said this proposal got hung up because the land is trust property held up by the state land board. They hope to clarify the status of the property soon. Marcus said financing is also an issue. Paul said the beauty of the CEC proposal is direct financing by private individuals.

 

Marcus asked what would happen with the renewable energy credits (RECs). Paul said this depends on the utility’s approach: they could always be sold on a third-party market. CEC would manage the credits, via a local affiliate, in partnership with the utility. Kim said she would be the contact person on this. Werner said he was excited by the local investment component.

 

Carolyn asked whether the CEC would remain an LLC, or eventually become a cooperative. Paul said they started officially in May and took 4 months to figure out the legal structure. It can’t be a coop or nonprofit, because you can’t get tax credits for taxes you don’t pay. So they have to be an LLC for now, at minimal profit, though they need to cover legal, installation, and software expenses. This would allow a 15–20 percent savings to community members—the big savings come from buying and installing in bulk.

 

Dick asked for a ballpark estimate of dollars per Watt. Paul said it would be around $3.5 per Watt. Kim asked about federal rebates. Paul said they are working with elected officials to make it easier to get tax credits. Paul reiterated that the initial hurdle is finding good land and getting LPEA support. They are looking for 5-acre site, just over 1 MW—it could be everything from County to private land. Dick suggested they talk to the Town of Ignacio, which was trying to broker use of a 9-acre site a few years ago.  Jim asked whether any credits are available to land owners. Paul said they could do a conservation easement.

 

Marcus said that the incentive for the college to be involved is to reduce its carbon footprint. But they wouldn’t get the RECs under some models.

 

 

Carolyn provided an updated budget for 2010. She noted that the website fees will go up $174 for the new mass mailing system—an increase to $300 total.

 

Jim asked whether Local First is a wash, financially, for the Sustainability Alliance. Carolyn said yes, aside from interest income. She said Local First makes money—they produced 4,000 books this year, for about $2,000 more. Dick asked whether there is a plan to sell the remaining unsold books. Carolyn said this is an item on the Steering Committee agenda.

 

Carolyn said the current Sustainability Alliance budget would leave us around $700 at year-end. Werner noted that membership contributions essentially take care of organizational needs, but that any extras (website, etc) were funded by the Green Expo and outside funds. He said we need to look for new resources, via a membership drive, etc.

 

Dick made a motion to approve the budget; the motion was approved.

 

 

Werner said that at the last Board meeting we assigned some one-year terms, but that these all need to be extended to two years to ensure that half the board member terms are overlapping. He stated that for the purpose of not using valuable meeting time this issue will be addressed by email.

 

 

Eliza reported that Auden Schendler will be the keynote speaker on Saturday evening, April 17, at 5 PM at the Smiley Auditorium. His presentation topic is “Getting Green Done.” The plan is to provide soup served in mugs made by local potters as people mingle in the hallway (5 to 6:15 PM). The introduction would run from 6:15 to 6:30, followed by the keynote address and a Q&A and call for community action. EcoLogic is looking for sponsors for the event to purchase rows/blocks of seats. Werner said that 4CORE is part of the team and that this will be the kick-off event for their Local Clean Energy Fund.

 

Marcus asked about the honorarium. Werner said EcoLogic is raising support for the $2500 speaker fee and handling fundraising. Sustainability Alliance board members will be asked to sell tickets as well. Last year’s goal was 5 tickets per board member, and the cost was $5 to see the speaker (plus snacks). This year, he said, we should focus on selling blocks, then invite the general public. We may not pursue the mug idea because of logistics and price, which would be $20 per ticket. There would also be a cash bar.

 

Marcus and Jim both said that $20 is a high admission price for a speaker. Marcus suggested asking $10 for the talk, and the soup would be extra. Werner said maybe charge less for the talk, then people could buy a soup ticket. Marcus said that the Joel Salatin talk by La Boca was $10–15 admission, but free if people took out a membership.

 

Jim asked about the goal of the talk—is it to educate the non-choir, to get people to engage in 4CORE, what? He suggested making the talk free, then charging for soup, mugs, etc. Rebecca said the non-choir might not stay to sit in the chairs since they are not comfortable.

Marcus said that at the FLC Environmental Center film fest, they got food sponsors. There was free food and a general call for donations. Lisa said other events at the Smiley sell food and beer, and that people buy it and eat wherever. Kelly said that challenge may be to get people to both attend the Expo and see the speaker. Werner said it is most important to get “normal people” to attend and to hear a good speaker.

 

Rebecca said the addition of 4CORE seems a bit strange—isn’t this a Sustainability Alliance event? Eliza said that Werner was upfront that this is our event, but part of our mission is collaboration. Marcus said everybody needs to contribute something. Werner said 4CORE will be the major seller of blocks and will contact businesses. Rebecca asked what 4CORE is expecting. Eliza said they want a share of the profits from the talk.

 

Marcus asked how blocks are different from admission. Kelly said they’re pre-sold tickets. Eliza said if we let people come for free, then 4CORE doesn’t need to sell tickets. Kim said if admission is free, and people like the talk, then there is potential for donations. Marcus noted that the EC got about $800 from their film event in November, with about 250 people attending. Werner said we could still sell blocks to promote the Clean Energy Fund. Lisa asked who would get the proceeds.

 

Rebecca said 4CORE has much higher grant revenue than we do. Werner said our main job is to promote the Sustainability Alliance, but that we also need to collaborate. Jim said we also need to come up with a reasonable division of profits. Werner agreed that we need to specify what we need to see from 4CORE.

 

Marcus asked whether EcoLogic, in the event that they can’t cover the keynote sponsorship, would try to recoup money from the event itself. He said we need to set out any expectations clearly ahead of time. Carolyn asked whether we have a contract with them yet, for our records? Werner said he has been promised one, but doesn’t have it yet.

 

Eliza suggested that if admission is free, then we could sell food and drink and have a donations box. Marcus recommended a $5 suggested donation, the option of paying $10 and getting a membership, and also having food available inside. Lisa said the membership could include giving members discounts at future events.

 

Werner said we could get restaurants to donate food, and then we would staff and serve it. Dick said another model is that the restaurants bring their own food and staff, and basically cover their costs. Kim wondered whether we could get local coffee shops to give discounts to people that bring in their mugs.

 

Marcus asked why 4CORE would be selling blocks then, if the event is free. Eliza said the main benefit to 4CORE is to provide a venue for their kick-off event.

 

Werner reminded people to make no big plans for the Expo weekend, because we will need lots of volunteer help.

 

 

Werner presented the following points, which will be fleshed out in future discussions:

 

 

Marcus said he, Werner, Tyler, and Terry had a very good meeting about the strategic plan. They talked about what we need to succeed as an organization, and what kind of plan we would want. The two main conclusions were: 1) We need to come together around our values, and 2) We need to look at our vision. The group mostly talked about the context we need to create for the Sustainability Alliance to succeed, and drew up a list of 10 different things that need to be part of the context to allow the organization to survive. These included: institutional memory, trust and strong relationships, avenues for creative individual expression, and the ability to engage/talk amongst ourselves as professionals. The idea is to see if the values line up with the context, and whether there are gaps. Instead of managing for outputs, we need to create the context (structures, systems) that allows things to grow on their own. The group will continue to meet and bring ideas to the Board for deliberation, decision, and debate.

 

Werner said he would like to see the plan reaching a certain stage of development by June, when Marcus leaves town. Dick said this type of discussion probably requires more time than a Board business meeting. He suggested maybe we should allocate the May Sustainability Dialogue to this, or carve out a few hours on a weekend or evening.

 

Marcus said that when we hammered out the mission, we had a potluck and got it done. This makes it less intimidating. Rebecca said she would be willing to host a meeting at her place. Marcus said maybe we should break it up and do it in phases, since it is hard to consider every element of a strategic plan at once. He said we also need to think about when we need full-group participation and when not. Dick said the main concern is having sufficient input along the way so everyone is on same page when we get together as a group.

 

 

Werner asked whether we can create a process whereby the goals and activities of committees are updated regularly on the web. Kelly said she has been spending time on the website and that it has good info and is very organic. Dick said he is starting to update Policy committee stuff and that the site is easy to navigate and update. He suggested that committees should now be responsible for keeping their pages up to date.

 

Werner asked how frequently we should update. Dick said the first step is to get the pages up to speed, then to keep them updated. He suggested that Committee heads review the site and update their pages by the April business meeting, before the Green Expo.

Carolyn said the Green Expo needs to update their website.

 

Eliza agreed that updating the pages should be the task of Committee Chairs, or they should delegate the task to someone else. She offered to step in as well.

 

 

Rebecca said the group wants to get going on using the Ballantine funds. She said Dick came up with a new name, the “Sustainability Alliance Enterprise Group” (EG for short; or SAEG), which would be a new wing where fee-for-service can happen. It would be the place where the organization can figure out how to raise money via consulting. She said Terry has agreed to designate 10 percent of the income from the work he does for the resource guide (Bridges to Success) to the Sustainability Alliance. Rebecca has begun gathering info on groups, contacts, and connections, as well as categorizing organizations along the triple bottom line map.

 

Rebecca made a motion that we name this new project the Sustainability Alliance Enterprise Group. Marcus said the name is good for conveying the consultancy idea but not good for identifying the community asset mapping project—we’d need a separate name for that. Dick said the SAEG is just the overarching group, and the idea is to eventually do more than just the mapping project. The motion was adopted.

 

Rebecca made a motion that the Board grant the SAEG Steering Committee (Rebecca, Werner, Dick, Terry, and Eliza) the authority to manage the funds coming to this project. Jim said that the broader Board should have a chance to discuss how the money is allocated and needs to be in on what’s going on. Carolyn and Lisa agreed that a broader vote is needed. Dick observed that that Local First is doing this type of fund management already, creating a precedent. Carolyn noted that with Local First, there were RFPs issued for the work, making it a bit more professional in nature. Marcus said he was not opposed to granting authority, but that there needs to be more transparency with a budget. Jim said we need to have more-complete information out there first, maybe via an e-mail discussion. Werner said that Rebecca will provide an outline of tasks and how the money would be allocated.

 

 

Marcus said the group has two RFPs out, one for logo design (a graphic designer) and one for a Director. They are also moving forward on incorporation, bylaws, and articles of incorporation. The group is moving toward forming a 501(c)3. In March, they will be potentially contracting with a new Director, going through the incorporation process, and recruiting Board members. The Director position would initially be a contract relationship with the Sustainability Alliance. They are also working on the budget and looking at expanding the campaign beyond the coupon book. They are exploring a Sustainable Business Certification program with the EC and students, Kim (SEC), and 4CORE—though SAEG should also be a part of this. There is talk about a green business guide, but they want to be sure everyone is on the same page on this. 

 

Marcus said several Steering Committee members want to be on the Local First Board, including Jim, Tim Wheeler, Peter Schertz, and Tom Riesing. They are looking to have 5 to 10 people, including more business owners in the group.

 

 

Dick said that at the group’s last meeting, Harry Riegle talked about taking the triple bottom line accounting model to the LPEA Board, noting that there are examples of other utilities adopting this model. Dick said it would be good to get Sustainability Alliance Board endorsement for this effort. He made a motion that the Board endorse Harry Riegle and another SEC member’s effort to bring the TBL model to the LPEA Board. The motion was passed.

 

Werner said someone else from the Sustainability Alliance should go with Harry to talk to LPEA. Dick said that Harry, Josh Joswick, and John Lyle have all been meeting with LPEA Board members to dialogue.

 

 

The next board meeting will be held on Thursday, April 8, 2010