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INSERT CITY LETTER HEAD <br />April 24, 2018 <br />Re: Project Development Letter and Approval to Proceed with Investment Grade Audit <br />Energy Savings Project <br />Dear Ms. Malwitz: <br />City of Ramsey, MN ("City") intends to contract with the Building Technologies Division of Siemens <br />Industry, Inc. ("Siemens") to implement a performance contracting project in order to improve its <br />infrastructure and operational efficiencies ("Project"). The Project will be comprised of a variety of facility <br />improvement measures ("FIMs") to be assessed through an investment grade audit ("Audit"). <br />The Audit will be performed at the following location(s): <br />• Municipal Center <br />• Municipal Ramp <br />• Fire Station #1 <br />1. The Audit will evaluate the following systems: Heating, Ventilation and Air Conditioning; Building <br />Automation and Controls; Building Envelope and sources of Air Tightness; Water; Sources of <br />Renewable Energy (Solar/Photovoltaic/Thermal); Lighting; Digitalization and IT; sources of <br />Alternate Energy. <br />2. The purpose of the Audit will be to identify opportunities to: improve facility infrastructure and <br />performance; reduce operating and utility costs; upgrade existing equipment; enhance revenue (if <br />allowed); improve comfort and control; and reduce the City's carbon foot print. <br />3. In order to accomplish the Audit, the City shall provide Siemens the following data (if not already <br />provided): Three-year history of utility bills (electric, gas, water, etc.); maintenance and <br />operational costs for addressed systems; access to facilities and design drawings; audited <br />financial statements for the past three years; and a point of contact for the Audit team. <br />4. The objectives of the Project to be assessed during the Audit are as follows: Siemens will provide <br />a written guarantee of projected utility savings and reduced operational costs in compliance with <br />applicable law. <br />5. The City and Siemens will cooperate to finalize the technical, legal and financial components of <br />the Project, and the City will pursue financing, possibly with assistance from Siemens. The City <br />will also prioritize the FIMs to be implemented, and Siemens will use the results of the Audit as <br />the basis for a draft Performance Contracting Agreement ("Agreement"). <br />PDL-1 of 2 <br />