Laserfiche WebLink
Chair Stenlund and Member Cihacek asked staff for an update as a future <br />communications highlight. <br />Solar Installation Update <br />While not originally planned for this month, Mr. Culver provided an update based <br />on City Council action in approving a nonbinding Letter of Intent with Sundial <br />Solar, and next steps as Sundial began shopping for tax equity partners. <br />Member Lenz expressed the difficulty she was having in understanding financing <br />for this solar option, and asked staff to provide a future "Solar Financing 101" <br />report. <br />Member Seigler also asked for very brief information presented by staff in the near <br />future on the absolute worst case scenario in six years and associated risks, both <br />initial risks and risks over time at the 6 or 7 year mark. <br />Mr. Culver recognized the complexities involved and sympathized with areas of <br />confusion for PWETC members, and advised staff would prepare a synopsis for a <br />future meeting. Under the Sundial proposal, Mr. Culver did report preliminarily <br />that there was no upfront cost to the city at year 6 or 7, at which time there would <br />be a 5% payback of fair market value for purchase by the City with the remainder <br />a 95% charitable donation from Sundial investors to the City. Mr. Culver advised <br />that the overall savings remained an unknown depending on the various programs <br />available now and at the end of the term, and dependent on Xcel and solar capacity <br />credits and whether those programs remain active in continuing that credit. Mr. <br />Culver noted that not only are the components complex, but will also be subject to <br />change over time, with future energy costs dictating actual savings to be realized. <br />Mr. Culver advised that staff would provide this much more detailed analysis to the <br />PWETC as requested and hopefully make the proposal clearer. <br />Member Seigler reiterated his request for an overview of the City's risk <br />Mr. Culver reported that, based on the City Council's review and Letter of Intent, <br />Sundial Solar showed an approximate cost of $7,000 — $8,000 in annual <br />maintenance costs for the system, or the actual service they would provide if <br />something went wrong and as they consistently monitor the energy used, they <br />receive an alert for any problem on the system, with troubleshooting and labor <br />included by Sundial and the City only responsible for the cost of any new <br />equipment as an option after the 6"' year. Mr. Culver advised that for the first six <br />years, the maintenance costs would be wrapped into the financing terms as <br />negotiated. <br />At the request of Member Lenz, Mr. Culver confirmed that the City was not <br />prohibited in having only one contract, and could easily solicit proposals for other <br />roofs (e.g. fire station, public works maintenance garage), with the Skating Center <br />roof chosen as the first and largest rooftop and without existing accessories on the <br />Page 7 of 13 <br />