2015-11-24_PWETC_Minutes - Laserfiche WebLink

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currently being received by the city would expire of its own accord. Without that being a condition, Mr. Kroll advised that the rate structure versus capacity credit for solar would mean that the total dollar amount would be greater on the capacity credit side versus that of the current rate structure. Mr. Kroll noted that this was based on his preliminary discussions with Xcel to -date. As a point of information, Member Wozniak noted that earlier in the summer of 2015, the city heard two proposals for solar array installation, and had chosen Sundial based on the lucrative option for the city to buy the system or have it gifted to the city after 5-6 years. Mr. Culver clarified that there were two elements involved. Mr. Culver noted that the other proposer required upfront financing by the City, anticipated at $200,000 to $250,000 as part of their PPA, and only aportion of the system would be installed under that PPA, with the other half of the system purchased upfront by the city. Under that option, Mr. Culver advised that the cash flow beyond a potential net positive in year one was not as favorable, especially when requiring upfront financing. At the request of the PWETC as to timing in final approval, Mr. Kroll advised that the only time constraint was the expiration of the tax credits at the end of 2016. However, if he was able to obtain the necessary information to bring back a final contract for review at the PWETC's January 2016 meeting, Mr. Kroll anticipated timing would still be okay. Mr. Kroll advised that he planned to meet with the investor mid-December and offered to set up the PWETC meeting him if they so wished to do so. For the purpose of the PWETC, Chair Stenlund and Member Cihacek clarified the purpose of the proposed motion was to obtain final numbers for the PWETC to respond to and then recommending approval of the PPA to the City Council to allow the process to move to design engineering. Ayes: 7 Nays: 0 Motion carried. At the request of Chair Stenlund, Mr. Kroll reviewed his credentials and background in this business, as well as that of Sundial Solar. Mr. Kroll advised that he had worked with Sundial and Mr. John Cramer, its owner, since 1999, with the company having a national presence beyond Minnesota, having done over 200 installations to -date. In addition, Mr. Kroll advised that Sundial had about two dozen contracts under maintenance at this time, one of which is the IKEA building in Bloomington, MN, their largest standard panel technology rooftop installation in the State of MN to - date. Mr. Kroll advised that Sundial prided itself on being the top maintenance Page 10 of 18