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vendor is responsible for the construction of the solar energy system, there are no upfront fees to the City. The only costs will be the monthly lease payments once the system has been constructed and is producing energy. In a community solar subscription, the City would become a customer of a privately owned solar energy system. This solar energy system would be located off site and the City would not be responsible to maintain or repair. A community solar subscription is generally for 25 years. A power purchase agreement (PPA) would require finding a private vendor to design and construct a solar energy system on City property. The vendor would then provide energy from the solar energy system to the City at a cost. The vendor remains the owner of the system and is responsible for repairs and upkeep. At the conclusion of the term of the agreement an extension could be agreed upon, the equipment could be removed or the City could purchase the equipment from the vendor. All three of these options meet “Green Initiatives”. The final consideration is to continue to operate NBCC as it currently is. There would be no additional skylights installed and power would be purchased through Xcel Energy at the market rates. This would require no capital costs, but the City remains reliant upon Xcel to provide energy and unable to lower th e cost of energy needed. With this option there are no “Green Initiatives” received. Current projections show the most financially beneficial option would be to enter into a lease to own option solar energy system with a developer. The lease payments would be higher than the rates to purchase energy from Xcel Energy, but the lease payment stop after 15 years. The payback period would be 18 years, meaning that all energy provided beginning in year 19 would be a benefit to the City. Energy Provided By First Year Projected Cost 25 Year Projected Cost Lease to Own $29,760 $486,161 Xcel Energy $21,600 $747,439 Community Solar Subscription $28,800 $865,815 Power Purchase Agreement $34,800 $1,046,193 The next steps, to further a Lease to Own project, would be to enter into a Letter of Commitment (LOC) with Trane to further explore and design a potential solar plant. The fee for this design would be recovered in the monthly lease payments. If after entering the LOC the City determines not to go through with the project with Trane, the City would be responsible for the design work Trane has performed which is estimated to be $25,500.