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The Public Works, Environment and Transportation Commission has discussed this item at <br />33 <br />several meetings this year. In November, the Commission made the following recommendation <br />34 <br />to the Council: <br />35 <br />Member Cihacek moved, Member Felice seconded, recommending staff to recommend to <br />36 <br />the City Council that they initiate the process and associated analyses and solicit proposals <br />37 <br />and pro formas for comparison purposes, for a three part solar system to investigate three <br />38 <br />programs: Made in Minnesota, a Power Purchase Agreement, and a 100 KW Direct <br />39 <br />Purchase Solar system; and to pursue those programs in accordance with Minnesota <br />40 <br />Statutes, Chapter 471, and related requirements; with the purpose of determining which <br />41 <br />option offers the best financial return to the City. <br />42 <br />City staff has proceeded to solicit proposals from solar installers and has received two proposals <br />43 <br />from Newport Energy and TruNorth Solar with the intent of authorizing one of the companies to <br />44 <br />submit two Made in Minnesota Solar Incentive applications, one for City Hall and one for the <br />45 <br />fire station. It is expected that there will be far more applications than the available funding can <br />46 <br />support so there is no guarantee the city will be successful in securing this incentive. If the City <br />47 <br />is successful on one or both of the applications, we would continue with the installation of said <br />48 <br />system(s) in 2015. <br />49 <br />Below is a matrix comparing the two proposals. Based on the proposals, staff is recommending <br />50 <br />that we proceed with TruNorth Solar for the Made in Minnesota Solar Incentive applications. <br />51 <br />While TruNorth’s long term energy savings are less that Newport in the below information, their <br />52 <br />analysis did not include any tax credit equity financing. Implementation would realize an <br />53 <br />estimated additional 40% reduction in the principal cost of the system and therefore realize a <br />54 <br />shorter payoff period and larger long term energy savings. Staff will provide more detail at the <br />55 <br />council meeting on the long term savings. <br />56 <br />Please note that these applications are done at no cost to the City. All design and installation <br />57 <br />costs are included in the overall system cost. <br />58 <br />20YearBreakpoint <br />CashOptionRooftopLeaseInstallationCostEnergy(yearsafter <br />ProposerDownCostPaymenttoCitytoCitySavingsinstall) <br />bĻǞƦƚƩƷ9ƓĻƩŭǤ—Ļƭ—Ļƭ—ĻƭυЉ͵ЉЉυАЍͲЊЌЌ͵ЉЉВ <br />ƩǒbƚƩƷŷΫΫbƚ—ĻƭbƚυЉ͵ЉЉυЎАͲБЉЉ͵ЉЉЊЊ <br />ΫΫCźŭǒƩĻƭķƚƓƚƷğĭĭƚǒƓƷŅƚƩğǣ9ƨǒźƷǤtğƩƷƓĻƩǞŷźĭŷĭğƓķĻĭƩĻğƭĻĭƚƭƷƷƚĭźƷǤĬǤЍЉЎЉіğƓķƩĻķǒĭĻ <br />59 <br />ĬƩĻğƉƦƚźƓƷƷƚЏǤĻğƩƭ <br />60 <br />Concurrently with this application process, City staff will continue to explore options for a larger <br />61 <br />system (estimated at 100kW) and use either the Power Purchase or Direct Purchase options. <br />62 <br />This would be brought back to Council at a later date with a final recommendation and request <br />63 <br />for approval. The intent would be to provide a system with little or no upfront cost to the City <br />64 <br />and the best overall energy savings solution possible. This system could also potentially be <br />65 <br />considered for a Community Solar Garden application. Staff continues to collect information on <br />66 <br />this option and the feasibility of offering this immediately or waiting until the system is entirely <br />67 <br />paid off first. <br />68 <br />69 <br />POLICY OBJECTIVE <br />70 <br />The City Council goals and strategic directives include sustainability as a priority. Renewable <br />71 <br />power fits these goals and is also supported in the IR 2025 document. <br />72 <br />Page 2 of 3 <br /> <br />