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