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Chair Stenlund questioned the length of vulnerability for the City of Roseville, <br />based on best or worst case scenarios. <br />Mr. Culver estimated the impact was related to which month the work was <br />performed, if during a lower production month, and from the tax equity <br />perspective, the city was expected to purchase a certain amount of annually <br />produced solar power. <br />Member Cihacek estimated, if 80% total capacity, there should be some variance <br />built in and some occurring naturally on a seasonable basis, which should be part <br />of managing this system overall through proper asset management efforts and <br />decreasing the city's exposure. <br />Mr. Culver noted that minor maintenance or rehabilitation of the roof was <br />scheduled within ten years for the skating center roof, which Sundial Solar and <br />the Kenyon Energy was both aware of. <br />As noted by Member Cihacek, Mr. Culver confirmed that power was connected to <br />the meter at the skating center, and couldn't be shifted to a different roof at that <br />time, part of the reason the skating center roof was so attractive for this solar <br />installation based on its square footage. Mr. Culver further clarified that there <br />were two meters servicing the OVAL which experienced erratic usage depending <br />on the season, while the arena itself provided more consistent usage; with less <br />than one-quarter of that energy consumed annually by the skating center. <br />Chair Stenlund stated his support for going forward. <br />Member Cihacek asked who provided the financials currently displayed, with Mr. <br />Ryan responding that the vendor had provide them initially, but the more detailed <br />projections currently displayed had been performed by him based on their <br />information to further determine production and degradation and incorporating <br />the Xcel Energy escalator. In talking to the contractor earlier today, Mr. Ryan <br />advised that he was updating numbers to get closer and was still negotiating the <br />power purchase agreement. <br />At the request of Member Cihacek, Mr. Culver confirmed that the Power <br />Purchase Agreement would memorialize the rate and escalator and final known <br />numbers for the capacity credit. <br />Mr. Johnson noted that the current projections include the 5% solar capacity <br />credit blended with the Xcel Energy rate, showing a positive cash value in years 3 <br />and 4. <br />Mr. Culver stated his confidence that the city would receive the credit, but noted <br />that the remaining unknown was for how long and if it would increase or not. <br />Page 7 of 20 <br />