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80 Mr. Culver provided a quick review of the proposed City Campus Solar project, <br />81 and reintroduced representatives of Sundial Solar to present an updated proposal <br />82 for solar panel installation on the Public Works Maintenance Facility and City <br />83 Hall roofs rather than on the Skating Center as originally proposed; and next steps <br />84 if the project moves forward. <br />85 <br />86 Art Kroll and Paul Christianson, Sundial Representatives <br />87 Mr. Kroll reported on engineering and logistical issues that arose at the Skating <br />88 Center, as well as potential roof upgrades that would be needed on that facility <br />89 during the solar array life span necessitating remov r relocation of the system <br />90 for a time. <br />91 <br />92 Therefore, Mr. Kroll advised that the two above -referenced buildings had been <br />93 isolated, as well as consideration of the police station roof. Given the smaller <br />94 square footage of these roofs, Mr. Kroll reviewed each portion and size of the <br />95 possible solar array to maximize use of the buildings and make installation <br />96 economically feasible for the equity partner and city. By using both roofs, Mr. <br />97 Kroll advised that a total 450 KW system would be feasible to deploy solar and <br />98 result in a slightly larger%sall <br />e previous 300 KW proposal for the skating <br />99 center roof. <br />100 <br />101 With this updated proporeviewed the revised preliminary financial <br />102 analysis for the solar installation, and revised long- and short-term comparisons <br />103 (dated May 31, 2016) outlining the value of energy for solar production, basic <br />104 energy rate, solar credits, full value, and total value; along with buy out at year 7. <br />105 Mr. Kroll noted estimated savings, after expenses, of approximately $8,663 to the <br />106 city; Similar economics — PPA long and short-term comparison dated 5/31/16 <br />107 providing value of energy for solar production, basic energy rate, solar credits, <br />108 full value with solar credit, and total value after 25 years. Mr. Kroll reminded <br />109 commissioners there was no buyout option for the first 6 years of operation, and <br />110 addressed further assumptions to qualify the projections. <br />111 <br />112 If the PWETC recommended City Council approved the revised Power <br />113 Purchasekith <br />reement (PPA), Mr. Kroll advised that the agreement would be <br />114 negotiate staff, as well as an Operations and Maintenance Agreement for <br />115 the duration. Mr. Kroll reiterated this would be a 25 year contract, with a buyout <br />116 option at year 7VI <br />117 <br />118 Chair Cihacek asked several questions related to the performance guarantee for <br />119 the tax equity partner, Sundial Solar, and the city related to performance <br />120 guarantees, the static model as shown, margin of error, power generation; and <br />121 what was being offered the city in the way of economic value. <br />122 <br />123 Mr. Kroll responded that any guarantee would be to the fiscal investor/owner, <br />124 who would watch and monitor their investment resulting in keeping production up <br />125 as much as saving the city energy for the sake of both their interests. Mr. Kroll <br />Page 3 of 19 <br />