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Minnesota Legislature

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1990 

                        CHAPTER 549-S.F.No. 2156 
           An act relating to local government; allowing 
          municipalities to enter into certain contracts to 
          reduce energy and operating costs; providing for the 
          compensation of the Minneapolis library board; 
          amending Minnesota Statutes 1988, section 471.345, by 
          adding a subdivision; Laws 1974, chapter 182, section 
          1, as amended; repealing Minnesota Statutes 1988, 
          section 471.345, subdivision 9. 
    Section 1.  Minnesota Statutes 1988, section 471.345, is 
amended by adding a subdivision to read: 
    Subd. 13.  [ENERGY EFFICIENCY PROJECTS.] The following 
definitions apply to this subdivision. 
    (a) "Energy conservation measure" means a training program 
or facility alteration designed to reduce energy consumption or 
operating costs and includes: 
    (1) insulation of the building structure and systems within 
the building; 
    (2) storm windows and doors, caulking or weatherstripping, 
multiglazed windows and doors, heat absorbing or heat reflective 
glazed and coated window and door systems, additional glazing, 
reductions in glass area, and other window and door system 
modifications that reduce energy consumption; 
    (3) automatic energy control systems; 
    (4) heating, ventilating, or air conditioning system 
modifications or replacements; 
    (5) replacement or modifications of lighting fixtures to 
increase the energy efficiency of the lighting system without 
increasing the overall illumination of a facility, unless an 
increase in illumination is necessary to conform to the 
applicable state or local building code for the lighting system 
after the proposed modifications are made; 
    (6) energy recovery systems; 
    (7) cogeneration systems that produce steam or forms of 
energy such as heat, as well as electricity, for use primarily 
within a building or complex of buildings; 
    (8) energy conservation measures that provide long-term 
operating cost reductions.  
    (b) "Guaranteed energy savings contract" means a contract 
for the evaluation and recommendations of energy conservation 
measures, and for one or more energy conservation measures.  The 
contract must provide that all payments, except obligations on 
termination of the contract before its expiration, are to be 
made over time, but not to exceed ten years from the date of 
final installation, and the savings are guaranteed to the extent 
necessary to make payments for the systems. 
    (c) "Qualified provider" means a person or business 
experienced in the design, implementation, and installation of 
energy conservation measures.  A qualified provider to whom the 
contract is awarded shall give a sufficient bond to the 
municipality for its faithful performance. 
    Notwithstanding any law to the contrary, a municipality may 
enter into a guaranteed energy savings contract with a qualified 
provider to significantly reduce energy or operating costs. 
    Before entering into a contract under this subdivision, the 
municipality shall provide published notice of the meeting in 
which it proposes to award the contract, the names of the 
parties to the proposed contract, and the contract's purpose. 
    Before installation of equipment, modification, or 
remodeling, the qualified provider shall first issue a report, 
summarizing estimates of all costs of installations, 
modifications, or remodeling, including costs of design, 
engineering, installation, maintenance, repairs, or debt 
service, and estimates of the amounts by which energy or 
operating costs will be reduced. 
    A guaranteed energy savings contract that includes a 
written guarantee that savings will meet or exceed the cost of 
energy conservation measures is not subject to competitive 
bidding requirements of section 471.345 or other law or city 
charter.  The contract is not subject to section 123.37. 
    A municipality may enter into a guaranteed energy savings 
contract with a qualified provider if, after review of the 
report, it finds that the amount it would spend on the energy 
conservation measures recommended in the report is not likely to 
exceed the amount to be saved in energy and operation costs over 
ten years from the date of installation if the recommendations 
in the report were followed, and the qualified provider provides 
a written guarantee that the energy or operating cost savings 
will meet or exceed the costs of the system.  The guaranteed 
energy savings contract may provide for payments over a period 
of time, not to exceed ten years. 
    A municipality may enter into an installment payment 
contract for the purchase and installation of energy 
conservation measures.  The contract must provide for payments 
of not less than one-tenth of the price to be paid within two 
years from the date of the first operation, and the remaining 
costs to be paid monthly, not to exceed a ten-year term from the 
date of the first operation. 
    Guaranteed energy savings contracts may extend beyond the 
fiscal year in which they become effective.  The municipality 
shall include in its annual appropriations measure for each 
later fiscal year any amounts payable under guaranteed energy 
savings contracts during the year.  Failure of a municipality to 
make such an appropriation does not affect the validity of the 
guaranteed energy savings contract or the municipality's 
obligations under the contracts. 
    Sec. 2.  Laws 1974, chapter 182, section 1, as amended by 
Laws 1984, chapter 499, section 2, is amended to read: 
BOARD MEMBERS.] Notwithstanding any provision of the home rule 
charter to the contrary, each trustee of the library board of 
the city of Minneapolis may be compensated at the rate of up to 
$3,600 per annum paid in such a manner as may be determined by 
the library board; and approved by the mayor of Minneapolis.  
Such compensation to be paid as an operating expense of the 
    Sec.  3.  [REPEALER.] 
    Minnesota Statutes 1988, section 471.345, subdivision 9, is 
    Sec. 4.  [EFFECTIVE DATE.] 
    Sections 1 and 3 are effective the day after final 
enactment.  Section 2 is effective after its approval by a 
majority of all the members of the library board of the city of 
Minneapolis, and compliance with Minnesota Statutes, section 
645.021, subdivision 3. 
    Presented to the governor April 26, 1990 
    Signed by the governor May 3, 1990, 5:23 p.m.