Laserfiche WebLink
400 <br />As the draft agreement is currently written, Mr. Culver noted that the worst case <br />401 <br />scenario would be a critical failure of the skating center roof resulting in loss of <br />402 <br />power consumption capabilities for the system to generate power. However, if <br />403 <br />staff is able to get those terms modified to avoid any cost to the city or at a <br />404 <br />minimum apply a cap on the city's exposure, Mr. Culver opined that this would <br />405 <br />help. Mr. Culver opined that the biggest risk to the city is what Xcel rates will do <br />406 <br />over the next twenty years of this agreement. <br />407 <br />408 If that were to occur, Member Seigler asked if there was a potential risk to the city <br />409 of losing money, or whether that was even relevant <br />410 <br />411 Member Cihacek noted that, once the system sho�llllllwed a negative cash flow, the <br />412 city could initiate termination of the system and agreement in writing; and while <br />413 he hadn't reviewed that termination clause in detail, asked that staff have the City <br />414 Attorney review it to ensure the best termination clause language possible for the <br />415 city. <br />416 <br />417 Mr. Culver noted that the provider may require a minimum term to ensure their <br />418 recovery of some of their ' itial cost. <br />419 <br />420 Member Cihacek also not that the force majeure clause should include potential <br />421 political changes allowing for termination due to p ' cal changes or due to a <br />422 political proces <br />423 <br />hp - <br />424 Chair Stenlund noted that, of concern if delayin next year as suggested by <br />425 Member Seigler, may be that there may be no bette eals next year; and <br />426 questioned if it wasn't prudent to not delay further and look at this as a rental <br />427 agreement for the roof space with a payment of a minimum of $8,000 annually for <br />428 a roof not being used for any other purpose. <br />429 MkI 111111 <br />430 Member Seigler concuNthat <br />Chair Stenlund's analogy. <br />431 <br />432 Member Cihacek opintime the city could develop an opportunity for <br />433 immediate cash flow today to address future CIP needs, it was a positive. <br />434 Pending the two issues and clauses he brought forward for staff to pursue <br />435 clarification, Member Cihacek noted the positive cash flow and projected <br />436 numbers from a very conservative projection. <br />437 <br />438 Member Seigler admitted that the less risk the city wanted to take, the less <br />439 generous rates the vendor would be willing to take; and as long as everyone <br />440 understood those risks, it may be beneficial to pursue this system. <br />441 <br />442 Chair Stenlund asked Member Seigler if there was anything form tonight's <br />443 discussion that would prevent him from recommending this to the City Council <br />444 upon staff's completion of their due diligence. <br />445 <br />Page 10 of 20 <br />