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immediate energy savings. After ten years, Mr. Streier noted that the City could "off-ramp" for the cost of approximately one year's power payment, which was structured and vetted to comply with Xcel Energy and Internal Revenue Service regulations. Mr. Streier detailed the system purchase agreement that would include Newport Partners designing, engineering, and providing a turnkey proposal integrated to include all permitting requirements; with the City owning the system as an Xcel customer, with Newport Partners administering the system sale and installation agreement through a qualified silicon energy subcontractor. At the request of Chair Stenlund, Mr. Streier responded that Newport Partners would provide a subcontractor with special training to install their manufactured modules, which were different than some currently on the market, and would vet them through a system purchase agreement and lease agreement for the roof system itself and a power purchase agreement, with an option included for Newport Partners to turn the system over to the City at year 6 or year 10, once federal tax incentives are completed, depending on the final costs. Since, under Minnesota State Statute, Mr. Streier advised that financing terms were in compliance with municipal contracting laws, it was not necessary to seek Requests for Proposals or to award to a low bid, since his firm provided an energy savings guarantee over the twenty year period in accordance with State Statute. However, Mr. Streier advised that the City would realize a positive return on its investment within ten years. At the request of Member Seigler, Mr. Streier reviewed repayment of the investment by the City to Newport Partners with 85% of the energy production, with the City retaining a minimum of 15%; with Newport Partners paying the City rent for the solar energy system space on city property, based on Xcel Energy contract rates and lease terms, with the solar project eventually reverting to the City as owner of the system. At the request of Mr. Schwartz, Mr. Streier reviewed the fifteen year life cycle of the inverters and their required or projected maintenance; improved technology for Newport Partners modules using micro inverters installed closer to the modules with a higher upfront cost, but providing much better efficiencies. Specific to the application process itself, Mr. Streier reviewed the intent of Newport Partners to secure Made in Minnesota incentives via the lottery application process held annually from January 1 to February 28, with necessary paperwork needed between now and February 28th, and no application fee required. Mr. Streier advised that there was more competition for commercial applications, with only 1 in 3 applications approved in 2013; and therefore, he encouraged the City to apply for as many as they could qualify for in 2015, since he anticipated even more competition in 2015. Page 10 of 17