A copy of the BARC Solar Project presentation from the December meeting follows.

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Sherman Hunter
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1 BATH COUNTY SCHOOL BOARD AGENDA ITEM: INFORMATION { } ACTION { X } CLOSED MEETING { } SUBJECT: SUPERINTENDENT S REPORT - ACTION Consider Approval of BARC Solar Project BACKGROUND: A copy of the BARC Solar Project presentation from the December meeting follows. Also attached, is recent correspondence (January 4, 2017) from Mike Keyser, BARC CEO & General Manager. RECOMMENDATION: A decision, with considerations to options recently presented, needs to be made regarding the implementation of this project. January 9, 2017 BCHS..... AGENDA ITEM: 16-17: 12.-B.

2 BATH COUNTY SCHOOLS SOLAR DECEMBER 2016

3 About BARC Electric Not-for-profit, customer-owned cooperative All margins are returned to customers in the form of patronage capital In 2012, formed Reliable Energy, LLC, a wholly owned subsidiary of BARC Electric REL provides unregulated services complimentary to BARC s mission of serving our customer-owners

4 Project Overview 937 kw across rooftops of all 3 schools Bath County High School Millboro & Valley Elementary Schools Provides 50% of total annual energy needs 2.4m kwhs consumed / 1.2m kwhs produced No roof penetration Affixed to metal roofs with clip system Ballasted system on flat roofs Removable/movable as needed

5 Project Benefits No upfront cost No maintenance responsibilities No premium to today s electric costs Fixed monthly payments over 20 years Hedge nearly half of annual energy costs for 20 years Educational opportunities: Monitoring software provided for use in classrooms O&M visits could be incorporated into class study Opportunity for energy management studies

6 Bath County High School

7 Bath County High School

8 Millboro Elementary School

9 Millboro Elementary School

10 Valley Elementary School

11 Completely Turnkey REL will be the EPC/general contractor REL will lend the necessary capital to BCSD 20 year term; 3% fixed interest rate Plan B: lease to own (same rate) REL will provide the ongoing O&M Project will be owned by BCSD and solar production will be net metered (offsets kwh portion of rates); also offsets kw REL bears the panel/equipment failure risk and cost of replacement

12 Summary $130,237 fixed annual payment $119,186 debt service* $11,051 O&M BCSD pays no premium today and fixes nearly half of its energy costs for 20 years Tremendous educational opportunity at all 3 schools Movable/removable as needed Targeting spring/summer 2017 for installation

13 HISTORICAL USAGE Annual Monthly Bill Less Basic Charge x 12 Months Average Cost Per kwh Ave. Monthly kwh Usage Ave. Monthly kw Usage Bath County School Building 122, , Mertz Building 16, , Millboro Elementary 47, , Valley Elementary 86, , PROFORMA USAGE 10AM NCP 272, , , Annual Monthly Bill Less Basic Charge x 12 Months Average Cost Per kwh Ave. Monthly kwh Usage Ave. Monthly kw Usage Bath County School Building 58, , Mertz Building 8, , Millboro Elementary 23, , Valley Elementary 40, , PROFORMA USAGE 9AM NCP 130, , , Annual Monthly Bill Less Basic Charge x 12 Months Average Cost Per kwh Ave. Monthly kwh Usage Ave. Monthly kw Usage Bath County School Building 67, , Mertz Building 9, , Millboro Elementary 26, , Valley Elementary 46, , , , ,

14 Key Terms Three agreements: EPC agreement Loan document(s)* and O&M agreement Project is transferrable to a new location at actual cost (outside of fixed payments) Owned/insured by BCSD O&M agreement handles normal wear & tear; equipment replacement; warranty claims Structural engineering review included in fixed rates Actual improvements outside of rates REL will facilitate warranty claims on BCS behalf Security interest in asset until loan paid off *Backup option: lease to own

15 Thank You

From: Mike Keyser <MKeyser@barcelectric.

16 From: Mike Keyser Sent: Wednesday, January 4, :23 PM To: Sue Hirsh Subject: Solar Project Update Sue: I thought it would be helpful to provide an update on our roof investigation at the high school and possible next steps. We enlisted McCarty Roofing to perform a roof inspection of the flat roof at BCHS on Dec. 26, and they also did a walkthrough of the inside. They observed evidence of roof leaks inside, as well as patchwork outside, which is another indication of problems. It appears that after the roof was installed (about 10 years ago), the manufacturer s rep performed an inspection but would not warrant the roof due to improper installation, particularly around the seams. Thus, it appears there is no warranty on the roof right now. There is also a structural weakness above the old gymnasium and we ve been advised it s not capable of bearing the weight of the panels in that area. I ve attached the letter from McCarty Roofing. One benefit from this exercise is you now have a good (free) evaluation of the roof at the high school. We can still provide an option to proceed on the structurally sound portion of the roof, which would not significantly reduce the overall array size, but we are of the opinion we should stay away from the flat roof entirely due to the installation and leak issues. If the school board really wanted this option, we could include a roof credit of around $50,000-$100,000 to help towards the replacement of the roof prior to panel installation, but the school board would have to come up with the difference of $125- $175,000. This is not ideal to me. I d like to present a couple alternate options to put the panels that would have been on the flat roof on the ground. It would entail a fenced area of about 1 acre on the ground. We can model an installation behind Valley Elementary and also on the slope near the football field scoreboard at BCHS. If space permits at Millboro that is another option. We could do this for the same total cost I quoted last month with the benefit being that we totally avoid the flat roof issues. At BCHS, we could probably make the ground mount panels track the sun which would be a cool showpiece. A third option is we reduce the overall size/production by removing the flat roof panels from the proposal, but this is going to increase the cost per panel as well as the total cost. Also not ideal in my opinion. It would be helpful to get feedback on which option(s) you prefer, as well as whether you want an updated presentation to the school board next Monday. I m in the office tomorrow (Thursday) afternoon and Monday all day if you wish to discuss. Friday I will be out all day. Regards,

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