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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Public Safety and Health Item: Fire Station #2 Solar Energy Project Incentive Agreement with Northwestern Energy for Universal System Benefit Charge (USBC) Grant Funds Date: July 8, 2009 Prepared by: Jason Diehl Initiated by: Fire Department Action Required: Ratify project incentive agreement between the Missoula Fire Department and Northwestern Energy. Recommended Motion: I move the City Council ratify the agreement between the Missoula Fire Department and Northwestern Energy for USBC grant funding for the installation of a solar photovoltaic system at Fire Station Timeline: Referral to committee: July 8, 2009 Committee discussion: July 15, 2009 Deadline: July 20, 2009 Background and Alternatives Explored: During the design and construction of Fire Station #2 and other recent fire station construction projects funded through the 2005 fire facility bond measure, the fire department focused on incorporating energy efficiency and utilization of renewable energy wherever feasible. While energy saving measures, such as high efficiency boilers, lighting, and insulation, have been implemented at all of our newly constructed and remodeled facilities, concern over final construction costs prevented us from fully implementing renewable energy sources as initially planned. Now that the final bond funded project, the addition and remodel of Fire Station is complete and the final construction payments have been made, it is now safe for us to move forward with the installation of the solar photovoltaic system at Fire Station #2 utilizing remaining bond funding and USBC grant funds. The roof structure at Fire Station #2 was designed and constructed to accommodate the future installation of a solar photovoltaic array and this station is currently equipped with a solar water heating system. Financial Implications: The total project cost for the installation of a 12.96 kW commercial solar photovoltaic (PV) system is estimated at $88,240. This incentive agreement will provide the City with $39,000 in USBC grant funds and the balance, estimated at $49,240, will be funded through the 2005 fire facilities bond. Attachments: Northwest Energy Project Incentive Agreement