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Regular City Council Meeting <br /> Monday, March 25,2013 <br /> Page 23 <br /> ommended for the City of Roseville's facilities (Maintenance Building and Police <br /> Department portion of City Hall); and how the tax credits would be applied for <br /> this installation of panels manufactured in Mountain Iron, MN. Mr. Streier brief- <br /> ly reviewed that MN State Statute requirement (Chapter 471.345) and how energy <br /> savings needed to be guaranteed, with the application designed to take advantage <br /> of federal solar tax incentives for such projects. <br /> Mr. Streier addressed funding, with a 10% down payment required of the City, <br /> and anticipated return on investment or a payback period of approximately 12.5 <br /> years; and based on his firm's review of the City's actual Xcel energy bills and <br /> based on the size of the system needed. Mr. Streier advised that his firm handled <br /> all engineering, design, installation, equipment and financing components after <br /> the City's initial 10% down payment. Mr. Streier advised that the lease structure <br /> allowed Newport to monetize federal tax credits and beneficial depreciation. <br /> Ms. Lundberg advised that the manufacturer of the panels provided a thirty (30) <br /> year power production warranty. <br /> Specific to the installation at Roseville, Mr. Streier reviewed the two (2) proposed <br /> applications to the newer roof portions on the maintenance building and police <br /> department, with anticipated total construction cost at $660,000, of which the City <br /> would be responsible for 10%. Mr. Streier advised that the system would be <br /> turned back to city ownership in six (6) years; and based on a historical energy <br /> average inflation amount, the city should realize a savings of approximately <br /> $237,000 over that time. <br /> Mr. Streier reviewed other installations completed for the City of Lindstrom, and <br /> one in process for the City of Champlin. <br /> Mr. Schwartz noted that there was one other MN manufacturer who had done <br /> several installations for the City of Maplewood, and since only operational for <br /> about six (6) months, staff was researching further information from them on that <br /> installation and that manufacturer. Mr. Schwartz noted that there was only mini- <br /> mal maintenance required for the systems, basically replacement of the inverters <br /> after fifteen (15) years. <br /> Mr. Schwartz advised that staff had consulted with the City's roofing engineer <br /> and contractor, and they were supportive of the installation; however, they did ask <br /> to be included in the placement of the system as well as throughout the design <br /> process. <br /> Mr. Schwartz advised that staff continued to research State Statute requirements <br /> regarding competitive bids; and tonight's requested action was to authorize staff <br /> to further research the installation; and authorizing signing a non-binding Letter <br /> of Intent if the City Council was interested in pursuing the project. Mr. Schwartz <br />