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355 installation is proposed to be on the slope between City Hall and County Road C 356 with the actual location and layout to be determined. 357 358 Mr. Solem explained that rooftop installations are shown to maximize savings 359 given the City's usable space and building energy consumption. The economics 360 included in the proposals show the revenue and costs associated with the arrays 361 were a 40-year timeframe with a buyout option at year 18. iDeal Energies had 362 provided other buyout scenarios for review and staff included the 10-year option as 363 an example. 364 365 Mr. Solem stated if approved, the City would sign a Power Purchase Agreement 366 (PPA) with iDeal Energies for the solar arrays. There would be no cash required 367 up front and all operations and maintenance would be fulfilled under the PPA by 368 the financer/developer. After the City exercises the buyout option, it would receive 369 all the energy produced and assume operation and maintenance. 370 371 Mr. Solem noted the ground mount system is shown as an Xcel Energy Solar 372 Rewards, which provides incentives to customers who install grid connected arrays. 373 Xcel would purchase the power at a predetermined value and include a future 374 escalator. He explained the City has the option to purchase the system at year 13 375 and the Solar Rewards option could be applied to any rooftop option, with a 376 maximum array size of 40kW. , 377 378 Chair Cihacek asked what the assumed inflation rate is for the utility. Mr. Solem 379 stated over the last ten years it has been about 4.5 percent, over twenty years it has 380 been 3.3 percent. He stated this one is at 4.5 percent because when they do a solar 381 rewards project it is a 13-year agreement and when they do the larger projects that 382 is an 18-year agreement, so they use the 3.3 percent inflation rate to represent a 383 longer term. 384 385 Chair Cihacek stated the one thing that stuck out to him was because the roofs are 386 older and may need future roof maintenance, would there be space to move the 387 arrays around to accommodate maintenance without losing solar power. It was 388 noted the rink roof array appears to be using the entire roof space which in turn 389 means there may be a slight reduction in terms of the financial benefit because at 390 some point, they will have to take some off line to do roof replacement or they 391 would need to downsize that array to allow or shift some of the arrays for 392 maintenance. Mr. Culver stated that is something he was going to follow up with 393 Ideal Energy on because they have had previous discussions with other developers 394 as far as trying to build in a two-month period where they could take the system off 395 line. It was noted Ideal Energy would work with the City on removing and 396 replacing the arrays. 397 398 Mr. Solem stated they do have optional agreement where if it is in a shorter amount 399 of time, they can agree upon that process up front so it is not a surprise. 400 Page 9 of 16