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<br /> <br /> STAFF REPORT <br /> <br /> <br /> <br />TO: Mayor Keis and Members of City Council <br /> <br />FROM: Joel Hanson, City Administrator <br />DATE: July 21, 2017 <br /> <br />RE: Solar Program Contract <br /> <br /> <br />Back in April, the Council agreed to accept the funding for solar panel installation at the Public Works <br />Building. The preference was to try to find an investor to maximize our return. However, we have <br />been unsuccessful in that regard. In working with Rob Applehof of Cedar Creek Energy, he said <br />investors have been looking for larger projects than ours. He also told me that the paperwork and <br />front end costs to be able to claim tax credits are pretty extensive. He further said the return on <br />investment only makes sense for those people in the upper tax brackets. As a result, he was not able to <br />find an investor for us. <br /> <br />Back in April, the Council also said we would fund the project if an investor could not be found. That <br />is the point we are at. Mr. Applehof also said the program is expiring and all work needs to be <br />completed by the end of October to receive our funding. Therefore, we need to get moving if we are to <br />get this work done and qualify for our incentives. I have enclosed the previous financial projections <br />for a City-funded undertaking we reviewed back in April. You will note that the outlay for the City is <br />$117,500 with a projected 10 year payback. By year 25, we are projected to have gained an additional <br />$114,000 in energy savings. <br /> <br />Attached is the contract we need to execute with Cedar Creek Energy to enable them to design and <br />oversee the project’s implementation in the amount of $117,500. Staff recommends approval of the <br />contract as presented, subject to any comments by the City Attorney. <br /> <br /> <br />