2015-07-28_PWETC_Minutes - Laserfiche WebLink

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power savings through less consumption were anticipated due to heat from the roof over the ice surface, a long time issue experienced during a portion of the year in cooling the indoor ice arena space. Mr. Culver opined that the solar panels would absorb some heat, helping with that energy loss. Based on the long-term analysis provided by Sundial, Mr. Culver reviewed estimated operation and maintenance costs for the City at year 6 of approximately $7,500; but advised additional information was needed for staff's review and analysis on what those actual maintenance costs assumed, or what components they included; and figuring in the replacement of the entire system in year thirty as that is incorporated into the City's long-term capital improvement program (CIP). As with any asset the City owns, Mr. Culver noted that, assuming thirty-year life for the panels, replacement costs would need to be estimated at the end of the life cycle. In conclusion, Mr. Culver advised that staff was recommending entering into a Letter of Intent with Sundial Solar initiating the process of negotiating more final and specific terms for Power Purchase Agreement. Mr. Culver suggested staff returning to the PWETC at their August meeting with those final provisions, and subsequent recommendation to the City Council for their final approval in September of 2015. At the request of Member Seigler, Mr. Culver clarified that the previous Letter of Intent entered into with the Metropolitan Council was still being pursued, and was specific to community garden shares, and would still be needed since the City consumes more power than could be generated on city campus roofs, and if pursued, would allow the City to obtain energy offset from that community solar garden system as well. At the request of Member Lenz, Mr. Culver advised that staff continued to check the references provided as part of Sundial Solar's proposal; and those reviewed to - date had proven favorable. Mr. Culver further clarified that the Letter of Intent would be nonbinding, and all steps in the analysis and review process would be completed before entering into a Power Purchase Agreement. Member Lenz noted that, since this is new technology, there was no long-term history available. At the concerns expressed by Member Wozniak regarding losses from severe weather, Vice Chair Cihacek noted there would be a clause provided in the final Agreement addressing natural disaster costs and remedies; and noted that individual panels could be removed and replaced if the entire system wasn't damaged. Again, as with any other City asset, Mr. Culver noted the City's insurance would address losses as part of the City's overall insurance liability costs and provisions. Member Stenlund asked if both panel systems had their own inverters, or each panel had individual inverters; recommending that the City pursue individual inverters Page 3 of 5