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Attachment D City of Roseville PWET Commission Excerpt from July, 24, 2018 Meeting Minutes 7. City Campus Solar Installation Proposals Mr. Culver reported staff has been working with Ideal Energies on rooftop and ground mount Solar PV installation proposals. Staff currently has layouts and economics for City Hall, Public Works, Fire Hall, and Skate Center that incorporates rooftop solar. Mr. Braeden Solem, Ideal Energy, stated they have been working with the City preliminarily to look at doing solar across the City buildings. He stated they have looked at all the buildings and identified what would work. The ground mount installation is proposed to be on the slope between City Hall and County Road C with the actual location and layout to be determined. Mr. Solem explained that rooftop installations are shown to maximize savings given the City's usable space and building energy consumption. The economics included in the proposals show the revenue and costs associated with the arrays were a 40 -year timeframe with a buyout option at year 18. iDeal Energies had provided other buyout scenarios for review and staff included the 10 -year option as an example. Mr. Solem stated if approved, the City would sign a Power Purchase Agreement (PPA) with iDeal Energies for the solar arrays. There would be no cash required up front and all operations and maintenance would be fulfilled under the PPA by the financer/developer. After the City exercises the buyout option, it would receive all the energy produced and assume operation and maintenance. Mr. Solem noted the ground mount system is shown as an Xcel Energy Solar Rewards, which provides incentives to customers who install grid connected arrays. Xcel would purchase the power at a predetermined value and include a future escalator. He explained the City has the option to purchase the system at year 13 and the Solar Rewards option could be applied to any rooftop option, with a maximum array size of 40kW. Chair Cihacek asked what the assumed inflation rate is for the utility. Mr. Solem stated over the last ten years it has been about 4.5 percent, over twenty years it has been 3.3 percent. He stated this one is at 4.5 percent because when they do a solar rewards project it is a 13 -year agreement and when they do the larger projects that is an 18 -year agreement, so they use the 3.3 percent inflation rate to represent a longer term. Chair Cihacek stated the one thing that stuck out to him was because the roofs are older and may need future roof maintenance, would there be space to move the arrays around to accommodate maintenance without losing solar power. It was noted the rink roof array appears to be using the entire roof space which in turn means there may be a slight reduction in terms of the financial benefit because at some point, they will have to take