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MINUTES <br />CITY COUNCIL <br />APRIL 26, 2017 <br />DISCUSS The City Administrator reported that the City was chosen for funding for a <br />PARTICIPATION 40kwh solar panel installation on the Public Works building. He <br />IN SOLAR explained that there are three options to consider. He stated that one is <br />ENERGY that the City simply pays for the installation and obtains the savings. The <br />PROGRAM estimated cost for the installation is $117,500. The second is to find a <br />private investor that pays the upfront investment, collects a tax credit, the <br />Made in Minnesota incentives, and gets the depreciation benefits. He <br />noted that after 10 years, the system is turned over to the City and the City <br />gets the full value of the energy savings. He explained that the City only <br />gets a partial value over the first 10 years. A third option is that if the City <br />found an investor and then bought the system after the seventh year for <br />$27,000. He explained that the investor could take advantage of a $35,000 <br />federal tax credit, Made In Minnesota Incentive, and the depreciation. The <br />key is finding an interested investor. He stated that the third option is <br />probably the best but there could be a challenge in finding an investor for <br />a smaller project like this. He also noted that the Council has wanted to be <br />more "Green", and the energy savings would help accomplish that. <br />Montour asked how much money the City would need to front. The City <br />Administrator stated $117,500 if we undertake it ourselves. Montour <br />asked if this would be a problem for the City. The City Administrator <br />stated there are a few funds where the money could be taken from that <br />would not be a problem. Montour asked about insurance for both the City <br />and an investor. He stated that he assumed the investor would be <br />responsible for insurance during their control of the array and that it would <br />likely be added to the building value through the City's insurance carrier <br />when it is turned over to us. <br />McGraw introduced the following resolution and moved its adoption; <br />RESOLUTIONNO. 2017-4-69 —APPROVING PARTICIPATIONIN <br />THE SOLAR ENERGYPROGRAM, AND FIRST GO WITH OPTION <br />3 FOR THE FINANCING AND ALLOW THE CITY <br />ADMINISTRATOR TO DETERMINE THE TIME LIMIT TO <br />SHOULD SEARCH FOR ANINVESTOR, AND IF THAT IS NOT <br />POSSIBLE, THEN GO WITH FINANCING OPTION I <br />The foregoing resolution was duly seconded by Keis. <br />Ayes (5). <br />Nays (0). Resolution declared adopted. <br />7 <br />