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��� <br />� <br />REQUEST FOR COUNCIL ACTION <br />Department Approval <br />:.-�� �''---� <br />Item Description: Skating Center Solar Installation Project <br />BACKGROUND <br />Date: August 10, 2015 <br />Item No.: 14.a <br />City Manager Approval <br />Through the ongoing research into solar options for the City Campus, and after our unsuccessful <br />application for the Made in Minnesota grant funds earlier this year, the Public Works, <br />Environment and Transportation Commission recommended staff pursue a large scale solar <br />installation on one of our two large roofs, either the Public Works Maintenance building roof or <br />the Skating Center roof. <br />In response to a Request for Proposals in early July staff received proposals from TruNorth Solar <br />and Sundial Solar for the installation of a Photovoltaic (PV) system on the Skating Center <br />rooftop. TruNorth's proposal included two options, so we have three total proposals to consider. <br />The proposals are attached and are summarized below: <br />St Port Annual Estimate ZS Year <br />System Authority Loan Power d Annual Energy <br />Pro oser Size (kW) Loan Pa ment Purchase Savings Savin s <br />$0.09 + <br />3.5% <br />annual <br />Sundial Solar 375 No NA increase $9,217 $230,425.00 <br />$0.075 + <br />2.75% <br />TruNorth Solar - Yes - annual <br />A 200 $200,000 $16,500 increase $2,125.00 $53,125.00 <br />TruNorth Solar - Yes - <br />B 200 $294,000 $23,750 NA $4,250.00 $106,250.00 <br />� Note that the estimated annual savings are based on an assumed constant difference between the <br />� Xcel Energy rates for a given year and the cost of the power purchased in that year. In the case <br />of TruNorth, that would be $0.035 less than Xcel's rate. For Sundial it would be $0.021ess than <br />Xcel's rate. This is due to the unknown increase in Xcel Energy rates over time. Each developer <br />� indicates that they expect Xcel's rates to increase, on average, at a higher percentage than the <br />proposed escalator for the Power Purchase rates. By simply using the current difference in rates, <br />it is assumed that this will be the minimum savings year to year. It is expected actual savings <br />will be significantly more. Similarly, the estimated 25 Year Energy Savings simply assumes the <br />average savings in power costs multiplied by 25 years. <br />Page 1 of 3 <br />