2016-01-26_PWETC_AgendaPacket - Laserfiche WebLink

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400 currently being received by the city would expire of its own accord. Without that 401 being a condition, Mr. Kroll advised that the rate structure versus capacity credit 402 for solar would mean that the total dollar amount would be greater on the capacity 403 credit side versus that of the current rate structure. Mr. Kroll noted that this was 404 based on his preliminary discussions with Xcel to-date. 405 406 As a point of information, Member Wozniak noted that earlier in the summer of 407 2015, the city heard two proposals for solar array installation, and had chosen 408 Sundial based on the lucrative option for the city to buy the system or have it gifted 409 to the city after 5-6 years. 410 411 Mr. Culver clarified that there were two elemen"'"iilllllsll involved. Mr. Culver noted that 412 the other proposer required upfront financing by the City, anticipated at $200,000 413 to $250,000 as part of their PPA, and only a portion of the system would be installed 414 under that PPA, with the other half of the system purchased upfront by the city. 415 Under that option, Mr. Culver advised that the cash flow beyond a potential net 416 positive in year one was not as favorable, especially when requiring upfront 417 financing. 418 dD. 419 At the request of the PWETC as to timing m final approval, Mr. Krol advised that 420 the only time constraint was the expiration of the tax credits at the end of 2016. 421 However, if he was able to obtain the necessary information to bring back a final 422 contract for review at the PWETC's January 2016 meeting, Mr. Kroll anticipated 423 timing would still be okay. Mr. Kroll advised that he panned to meet with the 424 investor mid-December nd offered to set up the PWETC meeting him if they so 425 wished to do so. 426 427 For the purpose of the PWETC, Chair Stenlund and Member Cihacek clarified the 428 purpose of the proposed motion was to obtain final numbers for the PWETC to 429 respond to and then recommending approval of the PPA to the City Council to 430 allow the process to move to design engineering. 431 432 Ayes:7 433 Nays:0 434 Motion carried. 435 436 At the reques, hair Stenlund, Mr. Kroll reviewed his credentials and 437 background in business, as well as that of Sundial Solar. Mr. Kroll advised that 438 he had worked with Sundial and Mr. John Cramer, its owner, since 1999, with the 439 company having a national presence beyond Minnesota, having done over 200 440 installations to-date. 441 442 In addition, Mr. Kroll advised that Sundial had about two dozen contracts under 443 maintenance at this time, one of which is the IKEA building in Bloomington, MN, 444 their largest standard panel technology rooftop installation in the State of MN to- 445 date. Mr. Kroll advised that Sundial prided itself on being the top maintenance Page 10 of 18