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396 immediate energy savings. After ten years, Mr. Streier noted that the City could <br />397 "off-ramp" for the cost of approximately one year's power payment, which was <br />398 structured and vetted to comply with Xcel Energy and Internal Revenue Service <br />399 regulations. Mr. Streier detailed the system purchase agreement that would <br />400 include Newport Partners designing, engineering, and providing a turnkey <br />401 proposal integrated to include all permitting requirements; with the City owning <br />402 the system as an Xcel customer, with Newport Partners administering the system <br />403 sale and installation agreement through a qualified silicon energy subcontractor. <br />404 <br />405 At the request of Chair Stenlund, Mr. Streier responded that Newport Partners <br />406 would provide a subcontractor with special training to install their manufactured <br />407 modules, which were different than some currently on the market, and would vet <br />408 them through a system purchase agreement and lease agreement for the roof <br />409 system itself and a power purchase agreement, with an option included for <br />410 Newport Partners to turn the system over to the City at y 6 or year 10, once <br />411 federal tax incentives are completed, depending on the fin ts. <br />412 <br />413 Since, under Minnesota State Statute, Mr. Streier advised that i ncing terms <br />414 were in compliance with municipal contracting laws, it was not necessary to seek <br />415 Requests for Proposals or to award to a low bid, since his firm provided an energy <br />416 savings guarantee over the twenty year period in accordance with State Statute. <br />417 However, Mr. Streier advised that the City would realize a positive return on its <br />418 investment wit * ten years. <br />419 <br />420 At the re est of Member Seigler, Mr. Streier reviewed repayment of the <br />421 investment by the City to Newport Partners with 85% of the energy production, <br />422 with the City retaining a minimum of 15%; with Newport Partners paying the <br />423 City rent for the senergy system space on city property, based on Xcel <br />424 Energy contract ra and lease terms, with the solar project eventually reverting <br />425 to the City as owner of th system. <br />426 <br />427 the request of Mr. Sch Mr. Streier reviewed the fifteen year life cycle of <br />428 the inverters and their require r <br />projected maintenance; improved technology <br />429 for Newport Partners modules using micro inverters installed closer to the <br />430 modules with a higher upfront cost, but providing much better efficiencies. <br />431 <br />432 Specific to the application process itself, Mr. Streier reviewed the intent of <br />433 Newport Partners to secure Made in Minnesota incentives via the lottery <br />434 application process held annually from January 1 to February 28, with necessary <br />435 paperwork needed between now and February 28th, and no application fee <br />436 required. Mr. Streier advised that there was more competition for commercial <br />437 applications, with only 1 in 3 applications approved in 2013; and therefore, he <br />438 encouraged the City to apply for as many as they could qualify for in 2015, since <br />439 he anticipated even more competition in 2015. <br />440 <br />Page 10 of 17 <br />