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Mr. Streier anticipated total construction cost for application for the City of <br /> Roseville as proposed at $660,000, of which the City would be responsible for <br /> 10%. Mr. Streier advised that the system would be turned back to city ownership <br /> in six (6) years; and based on a historical energy average inflation amount, the <br /> city should realize a savings of approximately $237,000 over the first 30 years. <br /> Mr. Streier reviewed other installations completed for the City of Lindstrom, and <br /> one in process for the City of Champlin, as well as various applications in the City <br /> of Red Wing; and displayed some samples of some of their installations. <br /> Discussion included clarification of total project and actual upfront costs of the <br /> City; payback time and annual projected savings; excess electricity offset not <br /> expected but could be sold back to Xcel's energy grid at a set contract rate; lease <br /> back of the system per future negotiated agreements consisting of an inverted <br /> lease and power agreement purchased from Newport, with the City keeping a <br /> portion of the energy savings realized from the onset; and whether interest was <br /> factored into the payback time and dollars. <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 design and placement of the system. Mr. Schwartz advised <br /> that staff continued to research State Statute requirements and the Council had <br /> authorized a non-binding Letter of Intent at their meeting last night. <br /> Further discussion ensued regarding the actual process; risks for the City; a <br /> review of the product itself in detail and testing of the system for climate and <br /> weather-related stability and longevity; and changing efficiencies in solar systems <br /> and industry standards. <br /> Chair Vanderwall, with consensus of the PWETC, requested those efficiencies be <br /> made available to staff for dissemination to the PWEC when available. <br /> Additional discussion included testing and warranty information; a 30-year <br /> warranty, with 90% efficiency for up to year 20, then dropping to 80%; minimal <br /> maintenance involved other than inverters as previously noted with their warranty <br /> expiring after 10-15 years; snow and wind loads based on structural engineering <br /> specifications, with the installation held down by cement blocks and spacing <br /> between rows to facilitate roof maintenance, access to solar modules, and access <br /> to other rooftop mechanicals. <br /> Mr. Streier advised that monitoring web based software was available and would <br /> allow staff to access and track that data and the peak and overall efficiency of the <br /> system. <br /> Mr. Schwartz and Mr. Streier discussed the number of units specifically <br /> recommended for the City of Roseville's facilities (Maintenance Building and <br /> Police Department portion of City Hall); and how tax credits would be applied for <br /> Page 12 of 14 <br />