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262 Chair Stenlund and Member Cihacek asked staff for an update as a future <br />263 communications highlight. <br />264 <br />265 Solar Installation Update <br />266 While not originally planned for this month, Mr. Culver provided an update based <br />267 on City Council action in approving a nonbinding Letter of Intent with Sundial <br />268 Solar, and next steps as Sundial began shopping for tax equity partners. <br />269 <br />270 Member Lenz expressed the difficulty she was having in understanding financing <br />271 for this solar option, and asked staff to provide a ture "Solar Financing 101" <br />272 report. <br />273 uul <br />274 Member Seigler also asked for very brief information presented by staff in the near <br />275 future on the absolute worst case scenario in six years and associated risks, both <br />276 initial risks and risks over time at the 6 or 7 year mark. <br />277 qW <br />278 Mr. Culver recognized the complexities involved and sympathized with areas of <br />279 confusion for PWETC members, and advised staff would prepare a synopsis for a <br />280 future meeting. Under t . Sundial proposal, Mr. Culver did report preliminarily <br />281 that there was no upfront cost to the city at year 6 or 7, at which time there would <br />282 be a 5% payback of fair market value for purchase by the City with the remainder <br />283 a 95% charitable donation from Sundial investors to the City. Mr. Culver advised <br />284 that the overall savings remained an unknown dependinon the various programs <br />en <br />285 available now and at the end of the term, and depdent. Xcel and solar capacity <br />286 credits and whether those programs remain active in,continuing that credit. Mr. <br />287 Culver noted that not only are the components complex, but will also be subject to <br />288 change over time, with future energy costs dictating actual savings to be realized. <br />289 Mr. Culver advised that staff would provide this much more detailed analysis to the <br />290 PWETC as requested and hopefully make the proposal clearer. <br />291 <br />292 Member Seigler reiterated his request for an overview of the City's risk. <br />293 <br />294 Mr. Culver reported that, based on the City Council's review and Letter of Intent, <br />295 Sundial Solar showed an approximate cost of $7,000 — $8,000 in annual <br />296 maintenance costs for the system, or the actual service they would provide if <br />297 something went rong and as they consistently monitor the energy used, they <br />298 receive an ale r any problem on the system, with troubleshooting and labor <br />299 included by Su al and the City only responsible for the cost of any new <br />300 equipment as an option after the 6th year. Mr. Culver advised that for the first six <br />301 years, the maintenance costs would be wrapped into the financing terms as <br />302 negotiated. <br />303 <br />304 At the request of Member Lenz, Mr. Culver confirmed that the City was no <br />305 prohibited in having only one contract, and could easily solicit proposals for other <br />306 roofs (e.g. fire station, public works maintenance garage), with the Skating Center <br />307 roof chosen as the first and largest rooftop and without existing accessories on the <br />Page 7 of 13 <br />