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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 -4538 <br />MEMORANDUM <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R Hanson <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: May 19, 1995 <br />RE: Energy Audit Agreement <br />The attached agreement with the Environment and Energy Resource <br />Center will allow this group to audit our energy usage accounts <br />and recommend any equipment /building modifications which can <br />generate saving opportunities for the City. The cost of the <br />audit and any engineering and design work are reimbursed by NSP. <br />If viable modification are found, we would pay for the cost of <br />construction with a 0% loan through NSP. Some of the key <br />criteria of the program are as follows: <br />• Less than a ten year payback on retrofits is needed for <br />NSP to participate. <br />• The loan amount is capped at two times the annual fuel <br />bill per location. <br />• If no savings opportunities or loan qualifying items are <br />identified, Environment and Energy Resource Center eats the <br />initial cost of the assessment with no expenditure to the <br />City. <br />• We are not obligated for any construction costs until we <br />contract for the work. We do not have to go forward if we <br />so choose. <br />This is a relatively new program with a number of suburban cities <br />participating. I would recommend we enter into this agreement as <br />presented. <br />Page 50 <br />