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Ron Seaman, Justin Smith, Diane Stanaway, Ray Tremmer, Deborah Visconi, David Weiskopf, Brian Yockman and Jodi Zimmerman. The following Quality Medical Staff: Sal Murante, Elise Murante, Robert Murante, Kevin Holly, Larry Sears, Sharon Creter, Dan Conti, Brian Gunnigle, C.J. Weinberger, Laura Alicia, Ray Tremer, Marc Castillo, Vera Spoon, Jesse Languth, Brian Schwarze, Tara Mastriano, Ashley Weisbrot, John Filardo, Elmo Kandil and Dan Jensen
(Whereupon there was a two-minute recess taken.)
COUNCIL PRESIDENT KAFTON stated that a Going Green Committee was formed some time ago to make people more informed about PPA’s and the advantages of doing a Power Purchase Agreement without costing the taxpayers anything or very little. He goes on to introduce Donald Moore.
DONALD MOORE, RICHARD STOCKTON COLLEGE OF NJ asked the audience how many people read the Jackson Times. He then stated that he was here because he did read the Jackson Times and reads about Jackson Township's plan to utilize PPA's. He is a Jackson Township resident and felt from his experience in this field he may be able to be of some assistance to the Township. He goes on to give a presentation regarding how this was done at Stockton College. He explained the costs involved and how the savings is generated; they had about a 40 percent savings. He goes on to explain that the overall percentage of electric that's supplied they don't have to buy from the electric utility. One of the most important facets of the PPA is that we don't own the equipment we only own the ground. This is a long-term agreement with an energy supplier who agreed to supply us for a certain period of time at a certain rate. We didn't have to come up with any money as an institution to generate a lower electric cost electric bill. He stated now they are within the two percent of the PPA, which is locked in for ten years, and today they can buy electricity for the same rate which shows a very sound investment. He stated they are locked into a 15-year deal with a fixed acceleration rate and at the end of 15-years they have the options to either buy the equipment or they can remove it which will cost them money. He asked Mike Wayka to explain what SRECs are and how they work.
MIKE WAYKA – BOARD OF PUBLIC UTILITIES goes on to discuss the solar market in the US and that New Jersey is the second largest market in the US. He discussed the requirements by the BPU. He discussed SREC and the advantage to doing a PPA for the tax break which is paid for by the Federal Government. He asked if we are getting a grant. Administrator Del Turco responded, yes. Mr. Wayka explained the benefit of entering into a PPA agreement and the guarantee to make money as opposed to entering into an agreement without one. This allows the Township to enter into an energy agreement. We don’t guarantee the SREC but they have an internal rate of return of about 12 percent. He stated that most States will pay up front and we’ve shifted to paying for performance over a ten-year period of time. You could do a bond referendum; however, at the Federal level there’s a tax credit and by leasing the owner could take advantage of that. Municipalities across the State have done it both ways. By lease purchasing the system the owner can take advantage of the 30 percent tax credit. Mr. Moore explained how their contract was extended from 10 to 15 years. Council President Kafton asked what is the life span of the solar panel. Mr. Moore responded 25 to 30 years. He goes on to say that what worked well for them is that the State of New Jersey owns their property, so they had to go to them he goes on to explain that the Township can do the same thing and lease the property to the power supplier to put their equipment at schools, parking lots and there are various locations that can be utilized. The Pine Lands Commission is interested in this but without the destruction of trees to enable this to happen they would use adjacent to the source of generating the energy where it’s needed. He goes on to say that no capital came from Stockton for the solar project, but he believes at the time of their project there were incentives and rebates. Council President Kafton asked what the savings amounted to. Mr. Moore stated about 40 percent and over the next couple of years we expect more savings. The other component is the efficiency of the buildings. Council Vice President Rivere asked if we received any grants that would enable us to do an energy audit. Administrator Del Turco goes on to