Full Transcript

Thank you. Good morning everybody. Today is Thursday, June 4th. We're here for a work session. And before we begin anything else, let's stand for the Pledge of Allegiance. Councilman Rothwell, would you lead us in the Pledge of Allegiance, please? Yes, Supervisor. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation, under God, indivisible, with liberty and justice for all. So we have just a few announcements today, or a lot of announcements. Tonight is our fourth before the fourth at Granville Park, starting at 5 p.m. We hope you'll join us for a backyard party. It's going to be a great time, and it's free to be there. We have a lot of great stuff going on. The Chamber of Commerce has worked on that extremely hard. Also, we're still accepting applications for our 4th of July Grand Parade, and we have the fireworks that night later at South Jamesport Beach at 9.30, hoping everybody can celebrate our country's 250th birthday. Do we have any other announcements right now? Yes. Just to remind everybody that the CAP March is tomorrow morning at Pulaski Street School. It starts at 9 a.m. Please come join us and celebrate the children and being drug-free and alcohol-free. Also, I wanted to let everyone know. and Joe I'm glad you're here next of the following Saturday June 13th the composter pickup is happening where's the location again young's have at the yard waste facility that's from 9 till 12 p.m. and duck pond day is also on June 14th that Sunday thank you yes the tractable is tomorrow at the antique power association if you've never been the one they're fun they're great you should go up on sound avenue right yeah friday or saturday it's the sixth that's saturday it's gonna be a great time miss flusky yes um so we're excited to announce through the beach committee that there will be live music um on june 25th thursday night um from 6 to about 7 30. um clerk Jim Wooten is sponsoring a 60s band to come this is a free event so bring down your lawn chair and the concession stand will be open and it will be a wonderful night so I hope to see everybody there a couple more things just a June 7th we have our recreations at Stotsky Park our hit it's our pitch hit and run at 1 10 a.m. at field 1 and we want to make sure we say good luck to Riverhead sophomore Madison Marshak at the New York State Championship tournament this weekend at Wildwood Country Club in Rush outside of Rochester. She'll be participating for golf for the state championship, which is absolutely incredible. We always encourage all of our young athletes. So with that in mind, we'll go right into our open session today. And we have first item, our only item is mainspring energy matters surrounding possible natural gas conversion for electrical services here at Town Hall with Councilman Rothwell and our engineer test. So just as an opening one of the things that Obviously I think many of other board members have been looking forward as to trying to find ways Our ultimate goal is to save taxpayer money to whatever we can do You know to lessen our budget each year and pass those savings on to each and every one of our taxpayers And so we've been diligently working on different ideas. I Had the opportunity to sit down with Walter or than a few times and And he has a very interesting plan to go forward that could potentially reduce a great reduction in services here in Town Hall. This particularly pertains to our electric costs, as well as potentially using it on other town sites, such as to reduce the electric costs over at the ice rink as well. And so we're going to kind of listen to his presentation. He's got lots of numbers for us today. The numbers look great, and we wanted him to sit down with our town engineer, Ken Tester. I know that he's had an opportunity to meet with them and discuss it. But this is on a large-scale event to reduce. If we reduce our electric costs, then we pass that savings on to each and every one of our taxpayers. So that's the ultimate goal here. So Walt did a great presentation, so I'll let you proceed. Hey, guys. Walt Jordan. I'm the Chief Revenue Officer for DGEN Energy Partners. Quick background on DGEN. We are the largest rooftop solar contractor in the country. We're the 43rd largest roofing contractor in the country. And me personally, I'm the ICC license holder for DGEN. Got 25 years of roofing and power generation experience, multiple award-winning contractor, and several certifications up and down in the construction and the energy space. So before I get started, I thrive on y'all's interaction. So if you want to interrupt me, blurt it out. Knock me off my axis, ask me questions, jump in immediately. I don't know y'all's business like you do, and I may say something that doesn't mean anything to me, but it resonates with you. By all means, join me and participate with this and ask the questions as we go forward. So with that, I'm going to jump in. So what we're talking about today is we're talking about linear generators, and these are cutting-edge technology, revolutionary.

It's as cool as the other side of the pillow. That's the easiest way to put it. And so I'm going to give you a quick demonstration, then I'm going to walk through just a little bit of it. But here's how they work. Take what you know, what you think of when you think of a diesel generator, a backup generator. You've got one sitting right on the other side of that wall over there. And throw all that in the trash. Forget it. A lot of moving parts, a lot of emissions, a lot of noise, the black smoke that comes out of them, right? This is not that. This is absolutely nothing to do with that. So the way these generators work is they have two oscillating pistons inside of them, and they compress multiple fuel sources that can run these, and they compress at 13 beats a second to create power. And when they pull back from the compression, that's what makes the DC power. I'm going to have a video for you all that I'm going to show you here in just a second, but they make hardly any noise. the emissions on them are literally next to nothing. I was visiting with a tech last week in California. Had a homeless man, took a cardboard box, put it around the exhaust to keep him warm, and had been living underneath it for a couple of weeks with the same cardboard box to give him a little bit of heat for warmth. But there's no heat to him. There is no flame. There is no, so any of the things that you're used to in a rotary generator or in your car for that matter, there's no spark plugs. None of those things are included in this. So I'm going to go to the video here, if you all can see it. So a couple things here, and this is why this becomes cutting-edge technology. This generator runs full-time. This is on 24-7. So there is no downtime for bad weather. There is no downtime for snow. This is in the Lathrop Irrigation District in California. This is a town, and it is raining. I took this video last week, so pardon my edits. I didn't get to get all fancy and get AI into my video to make it look better. But this is our video here. Let's see if it will play. Hey, Justin, can you help me?

I want you all to listen to my feet. Just having a normal conversation. Rainspring in the wild. You can hear me walking on that gravel. And these 10 generators are on at full speed. Way over there. 10 generators. For what they look like. So you get an idea of what they look like. That's the noise level. And then these 10 generators are powering 4,200 homes. So that entire subdivision is powered by those generators right there. The emissions – go ahead. So what – just as we go forward, so we are being completely removed from the PSNG grid in terms of – In theory, yes. In theory, the answer to that is yes. However, PSNG becomes your redundant backup. Backup plan, but for primarily all of our sources coming from the generator. That's correct, yes. It runs on natural gas. It can run on natural gas. It can run on hydrogen. There's a hydrogen fuel cell going in of this particular product at the North Shore Power Plant. NYU Lagone at the East Patchogue new construction location is using this technology to power their hospital. So there is assets pretty heavily in New Jersey as well with this particular project as well. So one of the things to point out is that the emissions from this are next to nothing. And I mean that very clearly. And to put that into a layman's perspective, if you take a gas cooktop stove and you boil water in your kitchen, you're going to make more emissions in your house, which is perfectly fine, but they're going to make more emissions boiling that pot of water than you are with my machine making 250 kilowatts. So it's a fantastic set of technology in the way that it works. And what I've done today is I've put together a proformance of projections as they pertain specifically to the town. And then the M&T bank that you'll own that's next door as well. So you'll be able to offset the power usage for both buildings. we've talked to PSNG and there is a there's a plan there where we can use the power that's generated here to run both meters and an offset from that perspective so just a couple of layouts here so this is the what you can see in that little picture there that's the inside of the machine so we also on another building over here yes I'm aware but I don't have the power bills on that one okay but we can offset that one too with this gen set so if there's three or four meters here in this little block that you guys have we can add to that um and offset those additional powers i'm going to show that here in a second um it'll make sense when i kind of come full circle but i i'm a lover not a fighter you want to put more on it i'll put more on it for you i'm happy to do that just to clarify because you're showing 10 units we're really needing potentially one right so that's obviously doing a whole township but this is one yeah for this building and the m t bank that's correct and the generator would only be running at about a 60 capacity for the power demands between the two buildings so there's room to add to it is there a distance limitation like would we be able to we have our police headquarters um about i don't know a little over a mile away so as you saw from the video we run it underneath the lake um from a distance perspective to power those homes um we potentially that could be an option but in the path of least resistance we would do a net metering with psng and put the excess power back on the grid that you would receive credits for and then they would credit that to the statement for the police station. To clarify with the public, then that would mean that if we're working at 60% for the two buildings, we have the potential of selling 40% of the electricity we're making back into the grid. Yeah, you would sell it, but it would go directly to other town assets for the offset. Yep. Yeah, that's correct. Yep. So just real quick in this picture here, so this is only half of a generator that you're looking at in that picture. So that's the oscillating piston that sits inside of them. These things are the size of a shipping container, so there's two of them in there. So there's two engines. They're 125 each to make 250 kilowatts. And so what's great about these is you're never down. So we have to maintain these regularly, and that's part of the cash flow in the proforma that's in there. But we take one side down. We slide it out on a rail. Change out the graphite rings. push it back in like start it back up turn off the other side slide it out change up those rings push it back in and fire them both back up so you don't lose electricity during that process you are blowing and going so all right let's dig in a little bit further here let's look at the numbers on this it's why this makes sense so this is the location where we can place this where can place this equipment and it's just right over this wall it sets up perfectly you've got a very large gas line that comes into the building I would neck that down to one inch to connect to my machine inch and a quarter I think actually on the service the electrical service for the facility is right there on the corner so it it would lay in there perfectly it's I mean it's It's like I couldn't ask for a better place to put it. And it's next to our current diesel power backup generator. That's already there. So we're already utilizing that space. That's correct. So it would become your diesel generator no longer would be your second line of defense. It would become your third line of defense. So whereas a diesel generator is an idle asset that produces no ROI, runs, they're set to run for 200 hours a year. That's about the max they can run. My generator runs 200 hours of testing before it's shipped to you. It's a fantastic product. So, all right. Annual production is going to be a little over 882 kilowatts. The capacity is It's a 250 kilowatt generator, so it's one mainspring linear generator is required. That's what we need. Currently, right now, between the two buildings, the town's average monthly utility spend is a little over $18,000 for electricity. The LGEN deployment, you would reduce that cost from $18,000 down to $4,237. So it's a huge jump. it's equipped with a performance guarantee. So unlike solar, unlike batteries, unlike diesel-powered backup generators, you get a guarantee from MainSpring that for the next 20 years it's going to produce at the level that it is intended to do so. It is projected to generate over a million dollars in positive cash flow over the next 10 years, and the internal rate of return is a little over 20%. Project cost is $1,310,000, but it comes with a direct pay incentive. So I know everybody, especially in this part of the world, you guys are familiar with the IRA and the tax credits that come with solar and things of that nature. well those are all sunsetting on the 4th of July this is not sunsetting this is part of the one big beautiful bill this technology was included in there so it has a 30% tax credit that is attached to it that is good until 2032 and with that I understand that the town is tax-exempt right but in the world of the incentives the direct pay is the avenue that you go down in the same breath so when you're you're talking about tax credits if you're a for-profit it's to you get you get the tax credit right if you are a tax exempt entity you go down the path of direct pay the percentages work the same so if it was a tax entity you get a 30% tax credit if it's direct pay you get a 30% direct pay incentive which is a check from the Department of Treasury so what are that 1.3 million let's say 393,000 we're getting credit back that's correct okay so I just would like to ask Teresa what TC do you know what our current yearly electric bill is yeah you look in averages like 18 18,000 we were looking yes 18,000 a month in the summer we get up into the $20,000 range because of the air conditioning and the winter it drops down 12 13 thousand I think the average is about 18 as the gentleman was saying it's somewhere between 215 and 220 thousand dollars a year that includes the bank next door that includes the bank next it does not include our auxiliary building over here which we can add on it as well so we potentially even more savings that's correct that's correct just out of curiosity I don't cuz I don't know that I saw the dimension I don't know what the dimension is but is it possible to run that machine north-south as opposed to east-west if we would take it you know behind that building put it wherever you want now the reason why I ask is because you know there'd be no parking for that building you know you wouldn't be able to get into the parking lot that's all no big deal well there's no parking there's a park in the rear it's next to the house behind us i believe next to the current generator yeah no i know but there we were going to we're going to have you could you could get a couple of cars in there is what i'm saying even with that unit that's with both units it can centrally go by the loading dock here right i don't need a fence around it unless you want one um like i need fences i can put it wherever you want is what it boils down to and i'll directionally turn it how you want to um and i could even logo it up and put town of riverhead on the side of it well we even said earlier when we're initially talking about placement i mean worst case scenario a little further away but we can always go to the end of the parking lot out there and put it out there and say so where some spots are not being utilized right now it's available essentially it takes up really it it takes up where it sits is one parking space okay but I need two parking spaces because I've got to have clearance to get in and out of the unit to work on it so another question I'm working on getting some electric car charges right in this parking lot and a couple of other places would this power those or not like a duck swim in a circle okay yes sir absolutely absolutely so funny not funny but it is funny right Amazon gotten some public hot water a little bit for all of their vans that are these new electric vans right if you pulled up to some of their sites they have standby generators recharging all of these electric vans so they can make their deliveries because they didn't have the power consumption to do it so with the size of this generator and the way we have it sized we can add on if you wanted to add 10 or 15 car chargers right and interestingly enough if you've got and i'm going to use somebody in a home because we can all resonate with our house right you've got an electric bill it's two three hundred bucks a month whatever the case may be and you go get a tesla or you go get a ruby on or electric vehicle whatever your power cost will double by adding that electric vehicle that's there right so um do you do you power data centers yes sir did you i'm just curious i'm real curious about that because of all the problems have a data center conversation with you yeah that's a separate conversation i don't know why that's you know our savings here i asked for you know yeah we so here's and i'll let me hit hit on the data center piece for just a second this is really important right because i know this is a hot topic in albany right now right and everybody's scared of them right so y'all have a very very important resource that's here and it's your aquifer for how the people get the water to their homes and the water source that you guys depend upon here on long island right and so there are circular types of cooling agents that can be used where they don't have to pull water from it you can power a data center with my machine where it doesn't affect the electrical grid and they will pay for it. So if you can have those two elements, they're not using water and depleting the local resources, and they're not putting any extra demand on the grid from the power consumption, it makes a lot of sense because they have what's called Thrupa. And so to put that into a layman's term, if you have your iCloud, your Microsoft Cloud, your pick a cloud, right? you pay 20 bucks a month for storage or whatever that is that money is considered through that goes into the data center and That is a tax revenue generating piece For the town should if it were to be considered from that person and I'll have a separate conversation Yeah, yes, very very. Yeah, very familiar because in the world of data centers. There's Texas and then there's everybody else And they're putting these data centers when I tell you in the middle of nowhere. They're in the middle of nowhere and and so for the public we're not talking about data center okay so back to you guys right now currently we are what we're looking at here is a net utility savings of one hundred and fifty three thousand dollars annually it's a monthly average of a little over twelve those are based on your actual bills yes Yes, sir. Absolutely. So when we did met, we did work with the town engineer's department, and we did present them copies of our electric bills because I said to them I wanted real numbers, not hypothetical. So we actually did take all our PSCG bills and sent it to them to evaluate so that we can come up with some clear, precise numbers. So right now, you all have what's called your levelized cost of energy. It's your LCOE. so that includes your demand charges your standby charges all of the charges that come on the electric cost right there are 24 and a half cents is what you are spending and your level eyes cost of energy currently right now with the implementation of this machine you would go down to six cents so the repayment period on this particular site is six years and that's not including any of your other facilities that you could potentially power or including increases in cost of power which are coming and your warranty is what 20 years 20 years so gas lines readily available this is easily accessible I look at a lot of sites I visit with a lot of different people y'all have like one of the absolute like perfect like I couldn't paint a better picture it's already fenced in you've got gas you're right there next to the meter it's peas and carrots to make that thing work right there it's easy so you parallel to the to the grid I mean it's when you work with PSC and G you but you're paralleling with them yeah it's good forming so we have to do an interconnection agreement so let's let's talk about that that's a fun conversation so the generator has a ul 2200 rating that's the highest rating a generator standby generator can have and that's how it's recognized from an ahj standpoint it also has what's called a tier 4 final which is the highest efficiency highest highest emissions rating that a generator can have well this blows all of that testing out of the water like it it supersedes above and beyond it is it is an easy easy speed to power process so we can install get permitting, get interconnection, it's fast. It's very fast. Unlike solar, unlike batteries, there's not a bunch of red tape here that we have to work through. This is a simple cash flow projection for you all to see here. So cash flow wise, you know, you're looking at a total over the course of 20 years of roughly about, a little over about $3 million in additional cash flow. savings to the taxpayers that's correct absolutely it's impressive numbers yep okay let's talk about another one here we go we've got the ice rink here veterans Memorial Park so what I've done with this one is there's three meters on that site you know I've got the ball field lights you've got the ice rink you've got some other ancillary things that are on there but you've got three different meters so we would connect to the uh to the main meter that runs the ice rink and then offset for the other ones that are there and the numbers on this one work out a little differently so the average monthly spend on this one is a little over 24 000 so the annual production is going to be 1.4 megawatts and you're starting to reach that threshold on this generator um where it's getting it's getting ready to tap out for the maximum that it can go for one day for one generator that's correct so we anytime you get to two million or you get to two megawatts two million kilowatts um you're reaching the you're reaching the annual capacity um for what the production of the generator can do so you're getting pretty close there but you're you've got a little room to add on things so if you needed to add car chargers out there if you needed to add you know another site or whatever the case may be you've got the capacity to do that so the cost of the utility spend is a little higher than it was here at city hall and the reason for that is is you're going to use more natural gas to power the machine same thing 20 year performance guarantee it's projected to generate 1.5 million in positive cash flow to taxpayer savings over the course of the next 10 years and then the internal rate of return on this one is 26% so we have a really nice model here that can generate some good cash flow same concept 393 thousand dollar direct pay incentive that is there estimated monthly savings are a a little over $17,000 a month for the power. And then levelized cost of energy, again, you got a little cheaper rate over there. That one's at $24,000, not $24,500. And then your levelized cost of energy after the generator implementation is a little over $0.06. So a couple different things here. This one's a little bit more challenging. You do not have natural gas there that is on site. So, I've done some homework on this and done a little background on this. I put an application into National Grid to find out what it would cost to bring natural gas to the site for this facility. You've got a rough estimate cost of about $800,000 to bring natural gas to the facility. You're 4,100 feet away. So now, discussing on that, towards the installation of the gas lines, we would have, and we have not, for the record, I have not spoken to, like, you know, our biggest neighbor there is Calverton National Cemetery across the street. And we have not, you know, spoken to them, but intentionally, like, if we bring in, this could be something that, you know, we could at least reach out to those surrounding bands like Calverton National Cemetery if they want to do an internal flame and other projects like that on the National Cemetery site. It might benefit them to bring in natural gas, which would mean that we could certainly split the cost with them or work with the federal government or congressmen to bring in the natural grid gas line towards down 25 to potentially reach the gasses. So these are all in preliminary, but that does have the potential with the gas line going in to serve multiple parcels within the area, and I think that would be something we can have conversations with our neighbors across the street. And then even if somebody else wanted to go a little bit further, we have the Storybrook incubator and so forth, things like that, other projects that could eventually benefit in the long run as well. Correct. And so there could be a sense of teaming up as well. That's a good point. I wonder where they're getting their gas from right now. But that's a different issue. The incubator. How many feet is it again? It's 4,100 feet. Now, also for the general public knows that our obligations at the ice rink are, you know, a little over $150,000 a year. So this would be something that we could potentially work with our licensing agreement with Kanekake. And again, I have not had discussions with them, so it's all preliminary. But we would have the potential to possibly renegotiate. The long-term goal would be to remove us from having to cover those long-term electric costs up there. and then we could use the savings. So if we make an agreement with them, there's different, from what I understand, there's two different ways, either A, to buy the unit out front and then immediately start collecting on the savings, or I believe you have a financing program where they can actually have the site delivered, attempting to remove us from those electric costs as soon as possible, and then they're just using the savings to pay for the unit over financing over time. That's correct. So I've got that in there. a little bit yeah so i can do a 7 10 or a 12 year equipment lease on the project it's got i set back for some numbers on the ice rink so it comes back to about 12 grand so the savings gets cut in half but the town would put no capex up to fund the project that number does not so just to give a little color on the the natural gas, I put the application in two and a half weeks ago. I got a back of the napkin number from John over at National Grid yesterday. So that's why these aren't in my presentation. I wanted to make sure you guys got that on Monday. I just didn't have the numbers yet. So we could potentially put the $800,000 cost to bring in the natural gas into the finance option in the 7, the 10, and the 12-year piece and add that cost in there. And that would be attractive to the financier for this because that 30% tax number, they're going to take it as a tax credit. So you would lose the tax credit piece to it or the direct pay incentive because they're going to capitalize on that from their investment for investing in the cash. They're going to capture 30%. So that makes the number bigger, excuse me, makes it more attractive to the team from the finance piece of it. So that's a piece that you could potentially fund the entire gas line with the generator there at Veterans Memorial Park. Now we can sit down with our financial administrator, Jeanette, and really take a hard look at the numbers. So we did have a conversation about early retirement incentives, things like that. But when you look at if we did do very well in terms of investing our fund balance, and so some of the things we've got to look at is what's the best way and the methods towards directly saving the taxpayers' money. So if it's beneficial for us to purchase one up front, like for Town Hall, to have it installed, and we immediately get those savings and they're immediately in next year's budget, that's actually, to me, that would be a useful tool towards taking a fund balance and then immediately transferring savings over to the taxpayers or, again, potentially funding it over a long period of time. It's going to be about what's in the best interest. The numbers have got to speak for themselves towards what's in the best interest for our taxpayers. So a New Jerk reaction, right? It's just like buying a car, right? You pay cash for a car, that's going to be your best deal, right? Same scenario here. You pay cash for it, it's going to be your best deal. However, if you want to finance it, there's still significant savings that are there and you don't have to take the risk but you're investing in yourself if you're going to go that route that's a that's a good place to bet on when you're betting on yourself what's the interest rate on that it's not an interest rate it is not an interest rate so it's an off-balance sheet transaction so what they're doing is your levelized cost of energy call it six and a half cents they're going to charge you for the power produced from the generator seven ten or twelve years and so you'll go to somewhere around twelve to fourteen cents is probably what you'll go so there's no interest rate so that works so they're charging you for the this is basically a new utility is what it pulls down to understand a veteran's road apart we would have to obviously install the national grid lines and that that's anytime on there what is the construction timeline if this is something that we confirmed it you know we're saving the taxpayers money how long does it take in these units have to be ordered built what is what's the turnaround time great question so yeah like this being that the gas is already here we according to you would essentially be ready but is this something you got a word of this unit it takes time delivery what are we talking about so when we talk about that the actual installation two days maybe three we may have to add a concrete pad for it out there the unit weighs about 20 tons but it's two or three days it's it's let's give the concrete some time to cure but we do that before right we want to go 18 to 20 inches thick but you've got you've got a slab out there it may be it may be black top I'm not sure yeah we may have to yeah yeah quick question on we were talking about the bank and their expense. We don't pay the bank's bill, do we? I believe they pay their own bill. But we don't, but we can sell them the electricity essentially, so rather than, if we promise them the same, the thought process was if we promise them the same rate, so we're not raising their rates, but if they're going to know that they're paying the same, and instead of them writing the same dollar check to PSEG on a monthly basis, they're writing it to Riverhead Town Hall and we're providing the power for them, then what we're doing is we're making money off of the power that we're selling to the bank and the bank doesn't lose anything they're paying the same yeah we'll have to look at that because i didn't think we could act as a utility and sell power back to you i was just about to say ken uh you wouldn't act as a utility you would just restructure it in your lease agreement yeah we're not i'll put it in the lease yeah why wouldn't we try to add on some of our other assets like stotsky park you can do both so just don't know about the distances right so The problem is you can't really transmit the power. I mean, if you can get an agreement with PIC and JEEP and net metering, and I don't know that that's usually that's offered through RFPs and stuff, but if there's a net metering arrangement, yeah, then you can produce power here and offset it to highway, like we do with solar. Bill Falk and I have had very specific conversations about the town of Riverhead, and he is on board with net metering for other sites that you guys have. So he is very supportive of that. I think you said earlier like maybe we use 60%, maybe you could use the other 40% for the police department? Correct. Is that right over there? Yes, ma'am. Yeah, absolutely. Ken, I want to come back to you and finish some of your question. Two to three days on the construction piece by itself. Now, if I go to soup to nuts, we're probably talking 10 months, 11 months, all in, because we've got to do the interconnection. got to get permitting from the AHJ, which I'm not sure if that would technically be y'all or if it would have to go through the county. Either way, it's fine. And then the unit has to be built and delivered, and it's got to be tested for 200 hours before delivery. So I could probably have units here. I could have a unit here. Let's say we were getting married today, and everybody said, I do, and let's go, right? we could have that probably October November unit here installed get it commissioned by the first of the year you can be up and running if we started today well Barkley speaking six months really yeah not ten months I like to be a little conservative okay so give me give me some wiggle room I wanted to You said you're utilizing this at other locations in Suffolk County. Where were they again? So there is a hydrogen fuel cell that is going in at the North Port Power Plant. Am I saying that right, Jack? You got it. I got it, finally. The North Port Power Plant, the co-gen plant. I'm still learning my way here around the island and getting caught up with y'all's lingity-dang. Is that the ReWolf? It might be. No, because it's not an ash to trash. it's not the re-wall facility no and then NYU lagoon on the east patchogue location is going to be powered by these generators that's the hospital so you've arrived in New York but they're not they won't be there for like another 18 months because they have to build the facility first yeah one other consideration we're gonna have to make is what arrangements we have with CBE solar and make sure that we don't have with the we can we can apply that yeah we have a solar project at a landfill and we have some agreements on that installs right or sets on yes it's they're getting ready to start off them starting up this summer five megawatts we have some because we have some offsets some of their some of that power is going to offset the rate for our electric bills so we're a but we say sure we're not when you say our electric bills there they could put it on any any one of our facilities. I'm just saying we should look at that and make sure we're not... We talked about that earlier when we first sat down. One of the first things we talked about was while we got solar getting ready to come online from our landfill. That was Councilman Kern's great use of the property up there. You really just look at the savings. You don't go... If the numbers are what they are, you don't say no to this project because you're saving a little bit over there. You apply those savings from the landfill to some of our other town facilities you're going to take whatever is the greatest savings in the long run you also talk a little bit about the maintenance we had a brief meeting and we talked about there is a you know maintenance process every 30 days that requires that the carbon seals be replaced in the units which kind of made me think more towards a lease that about right by you're the only people that make those seals is that correct so mainspring is not the only one so mainspring third-party sources its graphite rings so it's not like you have to go through mainspring what mainspring does for the so think of this 20-year guarantee that's here right that we talked about earlier this is a true bumper-to-bumper warranty right so think about it if you're buying a car that doesn't cover the windshield wiper fluid that doesn't cover the tires or the battery or whatever right this this is true bumper-to-bumper warranty for the next 20 years so the door falls off the inverter goes out you know, piston goes out, whatever, as long as it's being maintained by mainspring in their O&M agreement, then you are covered. You don't have to do anything. There is no extra tax or time on staff unless you want it to be. Those maintenance costs are reflected in the numbers you're showing, included in the cash flow, just to clarify that. You said that earlier. So all you've got to do is sit in your lawn chair and watch it run. Your company comes out every 30 days and does the graphite ring replacements? and then we're so a couple other things with that you have a presence all the time yes we're at jersey yeah and it will expand here promptly um well based upon the hospital and the power plant correct that's exactly right so um so there's a couple of things that go with that that are really important so in menlo park i've got about 30 people that all they do is sit at computers all day and stare at machines so it's 24-hour monitored right and this is cutting-edge technology so it's full of AI and it can identify problems before they happen and they will have somebody deployed there same day to address that problem whether it's middle of the night whether it's during the day on the weekend Memorial Day whatever you will have somebody there to address the issue before it becomes an issue so they recognize it because they're taking constant readings and they'll create an algorithm that with your machine and how you use your machine as it learns to throttle up and throttle down when the city hall is not really being used at night so you don't use as much power at night so it'll slow itself down a little bit and when everybody gets in here at 6 in the morning this thing goes back up it'll start to ramp back up so it'll it'll learn it's like a nest thermostat the way that it works when you're using of your power so anyway they identify it they'll know before you know um and they'll have somebody here because that's part of their guarantee is monitoring it we're non-stop monitoring yeah so and then i would personally invite each and every one of you june 17th in linden new jersey we're doing a site walk with several other folks through here in suffolk county to showcase some of of these generators that are in live time it's on a cold storage facility so i personally welcome you as my guest come down take a look at them they're they're they're not much to see when you get there but they're a lot to see when you get there take you about five minutes and then you're gonna see it you're gonna be like oh my gosh this is really cool great love it i can sit here and have a normal conversation just like i showed you in the video you can hear the gravel from my feet they don't make noise you can go down there and stick your head in the exhaust if you want to you You're not going to have any problems. I mean, it's, you know, you can feel it, lick it, touch it, taste it, do all the good things you want to do with it, and visit with the folks on site for what they're using it for and get their firsthand experience for how these machines work. Who are they using it for? Cold storage. Oh, that's smart. Yeah, so what they did, so this is fascinating, the way they structured it. They do it for load shedding in the summer to help keep the facility cool and reduce the electric cost. They don't need a lot of electricity in the winter, so they shut them off in the winter. And then as it starts to ramp up and get hotter, so the machines have been on since about the 1st of April, and they'll run them all the way until October, November. So maybe you could do a virtual setup too, in case we can't get to Linden, New Jersey. Is it just possible somebody can walk around with it? I can record it. That's great. I can't go and record everything for it. I'm going to be there. Yeah. We were in, so just to give you all some color, the reason we were in Lathrop, California last week, to see that site, city of Oroville in California, we had their entire city council there and their city manager was there. And they were there specifically because they've created their own utility for their town. So they're going to be their own utility provider for their town and provide utilities, which is what that group, they've already set up and done. And so now they're a utility provider for the city of Oroville, and that's the technology that they're going to move forward with. Has it ever set up on your own, like in an industrial park, a facility where you become the utility for the industrial park? No, sir. We've not set up that way. We've run industrial parks, absolutely, but not being the utility now. You don't want to be behind that and capturing. I'm just curious. And so I know with battery storage, you need X amount of power in the line to send it back, right? Is it the same with your situation? Okay. Because if you can do it at the end, yeah, okay. I kind of figured that. I just wanted to be sure. One of the things that was attached to us was the, you said it was a sole source, and so proprietor and so I wasn't sure should do we need to RFP this to make sure this I mean I understand you're saying this is our technology this is one alone just doing right I just want to have that conversation later we did discuss the potential of having to do an RFP that's great you can explain that with it but we did talk about it yeah so we submitted the sole source letter that has been used here in New York specifically for these generators it references the New York's law 103 to procurement policies so right so there's there's nobody else with this technology well that's well then there's no competition that's what I mean when you're putting out the RFP here you're specifically stating that this is what we want and we want to confirm the exact same savings but there's obviously there's only one product in your other product that's correct that you provided so but that's a good question I mean you know in terms of just making sure that we're yeah well it may be a different technology this wasn't sure if we should look at different you know I mean like making sure that we're doing our due diligence on that so yeah it's just a question yeah just to share that with you there is another linear generator company that's coming there five years okay yeah so main springs been around for about 15 years to give you all a little color on this it's a fascinating I don't want to speed you up, but we do have, we do have to go to executive session at 11. So we can always adjourn and come back to you. I don't want to cut you short. I just don't want to, you know, closer to that, say that. But we do need to be on the phone. So go ahead. So this was a Stanford PhD student's PhD project is what this was. Mainspring? Mainspring. That was initially developed? Yeah. That's exactly right. And then she has expanded it and grown it through investors and now has roughly 750 megawatts across the country on the grid. So how many units is that? Let's see. 100 megawatts is 400 units, so whatever. 3,000. Yeah. and then if we needed to we can bring anybody from the town we can take them to Menlo Park to the R&D facility we can have it broken down let you see it get into the machinery and get a really hands on approach if y'all want to get super technical with it we can arrange for that as well so just to conclude if you could go back to the initial savings and we've talked about EPA has no issues concerned. There's no gas in it. Hold that thought. Tell me about the EPA. You just mentioned them. They do not have a measurable test for the emissions on this machine. Because it's so low. Correct. And the cooling, it's not pulling water out of anywhere. Tell me about the cooling again so we're not going down into our aquifer so we're environmentally, you're completely isolated. I need no water. I need no oil. I need no lubricant. I need no transmission fluid. It's all air bearings. They compress the air, creates the air bearing, and that's the way it works. It's interesting that the governor wants to get rid of natural gas in New York, and here's a device that utilizes it with no negative output. We'll stay there for a second. So let's go back to Veterans Memorial Park for just a second, right? Let's say we don't want to stomach $800,000 running a gas line over that building, right? I can put propane there and run it on propane. It's still going to be significantly lower than what you're spending right now and have propane delivered every day if you want to. I'm not against natural gas. Don't get me wrong. I said the governor. I'm not the governor. But I can do propane. I could do propane, I could do natural gas, I could do hydrogen, I could do methane, I could do ammonia. It runs on several different fuel sources. So, it's interesting. I have your card. I will follow up with you on a couple of other things. I will discuss with you. and we're going to get a copy of this presentation. Do we have it? Yes. I see that. It's right here. Yes, sir. It's under this. I don't know. Teresa's here. Any questions or contests? Just before we. As the supervisor brought up, my concerns are us. Just so you know, I'm the purchasing director. I had not seen your letter prior to it being put on this agenda. You can come up. I know my name's on it. Teresa, you have to come up to the table and speak. Oh, that's right. It's right here. People are going to think you're a ghost. Hi, how do you do? Nice to meet you. So prior to seeing the agenda for today's meeting, I had not even seen your letter or heard of you or anything. So I was a little surprised by that. But my concerns are, although you have a proprietary product and you're the only guys out there, as you said there are other companies and there are other technologies and we you know i think for the point of the um state controller's office that we need to do a due diligence and put an rfp out not only looking for looking for maybe a number of different you know putting it out there and saying this is what our objective is and allowing companies to make presentation and then reviewing all of them and any concerns questions i know you had i kind of along the same lines i mean wouldn't wouldn't a fuel cell be a competing product to do the same kind of thing generate electricity with no emissions and use natural gas so i mean the product is proprietary yes so there are there are other technologies out there they're very different from this one right however they don't have the performance guarantees they don't have the the shelf life so you get into some of this other stuff that's out there you've got a seven or eight year shelf life that's on them and they're going to be more expensive from a product standpoint what about from a savings standpoint just to you know address the concerns up here yes you brought up up the big the big hot topic around most communities in this country data centers right and so we see this other technology that's there that people are using in various forms trying to get those things to but the cost savings from the linear generator is superior and that to Ken's point it would come out in an RFE and I don't know who you know I mean that's what you can be It sounds like you're far superior than other potential products are out there, but there's nothing wrong with proving that. Yeah, exactly. Exactly. I think that's a good presentation. It's definitely a problem with the numbers. Excuse me, Joe. I have one question. Do we get climate support points for this? Actually, hey, guys, before we depart, 8,044 tons of carbon saved, 19 million miles driven and 126,000 trees planted are safe in this project. Well, thank you. Thank you for your presentation. And quickly, you should pay a visit to the sewer district because we have our own sewer plant and we generate methane gas in our sludge digester, and they have a huge electrical load. They have a digester too, and I can plug that digester into my machine. And suck out the methane. Absolutely. I'm doing that in a dairy farm. I'm doing that in a dairy farm in western New York where they're they're gonna they're gonna use the cow forage to power the entire area it's about a half million dollars a year in electricity we have seen as we believe to that national grid just starting to lock in their prices to their offering that over the next year to certain things so that gives us real stable numbers over time but I think is what we need to continuously do is to look towards alternative energy source sources just here as well as you know all of our town properties and town facilities the ultimate goal is to save the taxpayer money and so we've got to start opening up the doors I really appreciate you coming in there you flew all the way out from Texas and thank you very much for time you've done it multiple times like try to keep hitting you with a lot of questions and trying to find like where where's the where's the fault here and I haven't found it and I think you got a great product that's really interesting and we're gonna continue to work and go through it well we'll talk with will be with Teresa and talk about our piece whatever is necessary to take the pathway but I think it's it's a great potential and And I will sit down and encourage each one of my town board members to reach out to Walt and talk and keep an ongoing conversation. We've got to save the taxpayers' money. Real quick, guys, my phone and email are on the business cards that I left you. Use me and abuse me. If you've got a question, pick up the phone and call me. I'm happy to discuss. I'm just really glad to see that. you know i hope this it all works out because you know long island new york has kind of been back about 30 years in all kinds of ways and i think this is really you know this is technology that's coming in the future and i'm a techno phobe i don't care what project it is we you know we've got a plan for because everything as you know in this space is happening very quick correct so I appreciate it. Thank you. Can you just say oil one more time? Oil? Oil. He's from Texas. You change your own oil? Run on oil. Pro set or what did you run on? Say what? Pro set. We ran an RPO, the route tree from run and shoot. While we're doing that, just our board, we need to move need to move expeditiously so if we could get a first and second to move into executive session to just we need to discuss matters surrounding update on litigation between town of Riverhead and URT with our assessor's office and our legal matters surrounding possible sale of real property the first again first So I'll move. Is everyone in favor? Aye. Thank you. See you next week.