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summary sheet also explain the PPA and how the buyout would work and that <br /> potential cost to the city. <br /> Mr. Kroll advised clarified that the investor bankrolled the entire project, with no <br /> city money in the project, while the city anticipated a 17%to 18% energy savings <br /> from the current electric blended rate being paid. Mr. Kroll noted the buyout <br /> clause in the contract would be determined by an appraisal at fair market value <br /> and remaining years of the contract, at the discounted energy rate and that fair <br /> market value. <br /> Member Seigler asked what recourse the city would have if the original investor <br /> sold the contract to an entity the city may not be comfortable dealing with. <br /> Mr. Kroll noted that the current investor is interested in holding the contract long- <br /> term as that was their area of expertise and business model to acquire and hold <br /> onto those assets for the full duration of the contract; with their own operating and <br /> maintenance department set up accordingly. <br /> Chair Cihacek asked staff to ensure the contract included a clause or negotiations <br /> addressed the city's first right of refusal and an option not to contract with any <br /> other firms or individuals at their discretion. <br /> Mr. Kroll advised that standard contract language would provide that the city <br /> would have to approve any sale transaction to change investors. <br /> At the request of Chair Cihacek, Mr. Kroll advised that the city would be <br /> contracting with the investor itself, with the investor in turn contracting with <br /> Sundial Solar to do the installation project. Mr. Kroll advised that the Power <br /> Purchase Agreement would be with sundial; but they would immediately sell the <br /> contract to the investor, with the city negotiating with the investor's attorneys on <br /> exact contract language. <br /> At the request of Member Seigler, Mr. Kroll reiterated the intended solar arrays: a <br /> 200 KW system on the City Hall roof, and a 250 KW system on the Public Works <br /> Maintenance Facility for a total of 450 KW. If the city chooses to include an <br /> option for the Lexington Avenue fire station as well, Mr. Kroll anticipated that <br /> could support a 100 KW system, depending on their engineering specifications, <br /> which hadn't been looked into at this point. <br /> At the request of Member Heimerl, Mr. Culver advised that the total solar array at <br /> 450 KW would represent less than half the city's total power consumption; with <br /> the OVAL and Skating Center consuming a considerable amount of the city's <br /> total power. <br /> Specific to the Public Works facility, Mr. Kroll advised that that building alone <br /> would max out the solar credit usage at the top end of the usage of about 80% <br /> Page 6 of 19 <br />