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79 power savings through less consumption were anticipated due to heat from the roof <br />80 over the ice surface, a long time issue experienced during a portion of the year in <br />81 cooling the indoor ice arena space. Mr. Culver opined that the solar panels would <br />82 absorb some heat, helping with that energy loss. <br />83 <br />84 Based on the long-term analysis provided by Sundial, Mr. Culver reviewed <br />85 estimated operation and maintenance costs for the City at year 6 of approximately <br />86 $7,500; but advised additional information was needed for staff's review and <br />87 analysis on what those actual maintenance costs assumed, or what components they <br />88 included; and figuring in the replacement of the eJ�vement <br />system in year thirty as that <br />89 is incorporated into the City's long-term capital,,,,1 program (CIP). As <br />90 with any asset the City owns, Mr. Culver noted that, assuming thirty-year life for <br />91 the panels, replacement costs would need to be estimated at the end of the life cycle. <br />92 <br />93 In conclusion, Mr. Culver advised that staff was recommending entering into a <br />94 Letter of Intent with Sundial Solar initiating the process of negotiating more final <br />95 and specific terms for Power Purchase Agreement. Mr. Culver suggested staff <br />96 returning to the PWETC at their August meetin h those final provisions, and <br />97 subsequent recommend <br />a n to the City Coun for their fin,pproval in <br />98 September of 2015. ""°��iii�lllllll m, <br />99 <br />100 At the request of Member Leigler, r. Culver clarified that the previous Letter of <br />101 Intent entered into with the Metropolitan Council was still being pursued, and was <br />102 specific to community garden shares, and would still be needed since the City <br />103 consumes more power than could be generated on, city campus roofs, and if <br />104 pursued, would allow the City to obt ' energy offset from that community solar <br />105 garden system,1,,,,11ii1 well. <br />106 <br />107 7thequest of Me er Le z, Mr. Cu advised that staff continued to check <br />108 nces provid art of Sundial Solar's proposal; and those reviewed to - <br />109 proven favorab r. Culver further clarified that the Letter of Intent <br />110 would be nonbinding, an teps in the analysis and review process would be <br />111 completed before entering int ower Purchase Agreement. Member Lenz noted <br />112 that, since this is new technology, there was no long-term history available. <br />113 <br />114 At the concerns expressed by Member Wozniak regarding losses from severe <br />115 weather, Vice Chair Cihacek noted there would be a clause provided in the final <br />116 Agreement addressing natural disaster costs and remedies; and noted that individual <br />117 panels could be removed and replaced if the entire system wasn't damaged. <br />118 <br />119 Again, as with any other City asset, Mr. Culver noted the City's insurance would <br />120 address losses as part of the City's overall insurance liability costs and provisions. <br />121 <br />122 Member Stenlund asked if both panel systems had their own inverters, or each panel <br />123 had individual inverters; recommending that the City pursue individual inverters <br />Page 3 of 5 <br />