06.p Operations, Maintenance, and Decommissioning Agreement - Barr Solar Energy SystemNEE EDITS 9-14-2026
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OPERATIONS, MAINTENANCE, AND DECOMMISSIONING AGREEMENT — NEW
ENERGY EQUITY BARR DISTRIBUTION SOLAR ENERGY SYSTEM
THIS OPERATIONS, MAINTENANCE, AND DECOMMISSIONING
AGREEMENT (“Agreement”), is made and entered into on the ___ day of _______________,
2026, by and between the City of Scandia, a Minnesota municipal corporation, (“City”), MN CSG
2019-69 LLC, a Minnesota limited liability company (“Developer”), and Justin D. Barr Revocable
Trust U/A (“Owner”).
RECITALS
WHEREAS, the parties have entered into a Site Improvement Agreement for a solar energy
system (the “Improvement Agreement”), which is hereby incorporated into this Agreement as if set
forth here in full; and
WHEREAS, the parties wish to enter into an Operations, Maintenance, and
Decommissioning Agreement to provide for additional terms beyond the life of the Improvement
Agreement.
NOW, THEREFORE, subject to the terms and conditions of this Agreement and in reliance
upon the representations, warranties and covenants of the parties herein contained, the City and
Developer and Owner agree as follows:
1. Purpose; Relationship to Improvement Agreement
a. This Agreement sets out ongoing operations and maintenance obligations
(including panel upkeep and drainage/erosion), and decommissioning obligations,
including required financial assurance via an irrevocable letter of credit , bond, or
escrow. Nothing herein limits or waives any requirement under the Improvement
Agreement; where this agreement imposes a greater or more demanding obligation,
that obligation controls for the matters addressed herein.
2. Operations and Maintenance Obligations
a. Developer shall, at its sole cost, operate, maintain, repair, and replace the
Improvements in accordance with the Development Plans, applicable City
ordinances, and applicable requirements of Other Regulatory Agencies, keeping the
Improvements in good working order and in a safe, neat, and orderly condition for
the life of the use.
b. Developer shall maintain panels, inverters, racking, wiring, fencing, and associated
equipment per manufacturer specifications and industry good practice to ensure
continuous functionality and safety. If the Solar Project remains nonfunctional or
inoperative for a continuous period of one year, it shall be deemed abandoned and
must be removed in accordance with the Decommissioning obligations below.
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c. Developer shall own, operate, and maintain drainage facilities; maintain erosion
control measures and any necessary pond maintenance; and remain responsible for
all damage caused by the Solar Project until Improvements are fully
decommissioned.
3. Reporting; Recordkeeping; Access and Inspections
a. Developer shall maintain records of inspection, maintenance, repair, replacement,
and landscaping/screening upkeep, including erosion and drainage maintenance,
and make such records available to the City upon reasonable request as part of
ensuring compliance with Development Plans and City review.
b. Developer shall promptly notify the City if the Solar Project becomes nonfunctional
or inoperative for more than six months and provide a corrective action plan or, if
applicable, a decommissioning schedule consistent with Section 5 of this
Agreement.
c. Upon commercially reasonable notice and Developer’s prior consent, Developer
and Owner grant the City and its agents a license to enter the Property to perform
all inspections deemed appropriate by the City related to the operation,
maintenance, screening/landscaping, erosion control, and decommissioning
obligations.
4. Financial Assurances; Costs; Enforcement Costs
a. Developer bears all costs of operation, maintenance, repair, replacement, and
compliance activities for the Improvements throughout the term of use.
b. Developer shall pay the City for costs incurred in the enforcement of this
agreement, including engineering and attorneys’ fees, and other costs referenced in
the Improvement Agreement.
5. Decommissioning Obligations
a. If the Solar Project remains nonfunctional or inoperative for a continuous period of
one year for reasons within the Developer’s control or not due to a force majeure,
the system shall be deemed abandoned and constitutes a public nuisance; Developer
must remove the system at its expense after obtaining a demolition permit.
Developer shall secure any necessary local, state, and federal permits for
decommissioning prior to commencing decommissioning work.
b. Removal includes the entire structure including transmission equipment, with site
restoration obligations to remove Improvements and stabilize the Property.
c. Prior to the construction of the Solar Project, Developer shall deposit with the City
an irrevocable letter of credit (or establish a bond or escrow account) in the amount
of $565,000.00 to secure decommissioning obligations under the Improvement
Agreement (for the first five years). Such bond or financial security must be issued
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by a creditable banking institution chartered to operate in Minnesota, and will serve
as financial assurance for all decommissioning obligations. Developer shall be
required to periodically update the bond (or other form of financial assurance)
beginning in year six of the project’s operation and every five years thereafter. An
initial projection of such amounts is set forth in Exhibit 1 to reflect the estimated,
actual decommissioning amount. To the extent that the City uses a third-party to
verify the decommissioning amounts, Developer will compensate City for third-
party fees up to $1,000.
d. The decommissioning financial assurance shall be in the form of a bond or an
irrevocable letter of credit (or escrow) meeting the requirements above and
maintained continuously until released by the City upon completion of
decommissioning and satisfaction of release conditions below.
e. The City may draw on the decommissioning financial assurance to fund
decommissioning if the Solar Project is abandoned as defined, if Developer and
Owner fail to perform decommissioning, if Developer fails to meet its obligations
in the Improvement Agreement after a notice and cure opportunity, or to reimburse
the City for necessary actions to stabilize the Property.
f. Developer may request reductions only upon completion of discrete, verifiable
decommissioning milestones accepted by the City Engineer and City Council in
their discretion, including retention of 10% until final acceptance to protect against
deficiencies.
g. Upon (i) completion of removal of the entire structure including transmission
equipment, (ii) restoration and stabilization of the Property to the City Engineer’s
satisfaction, and (iii) payment of all City costs and expenses referenced in Article
4 and 5, the City will release remaining financial assurance, less any amounts
retained or drawn for noncompliance.
6. Term; Termination
a. This Agreement remains in effect from execution and recordation until (a) the Solar
Project is decommissioned in accordance with Section 5; (b) the City Engineer has
accepted completion of decommissioning and site stabilization; and (c) all City
costs are paid and financial assurance released.
b. This Agreement runs with the land and is binding upon successors and assigns, and
may be assigned without City consent provided notice is provided to City within
thirty (30) days after the assignment. Any amendment, extension, or waiver must
be in writing executed by the parties.
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MN CSG 2019-69 LLC, a Minnesota limited liability company
By: _____________________
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ____ day of __________________,
2026 by ______________________, the _______________________ of MN CSG 2019-69 LLC,
a Minnesota limited liability company, on behalf of said corporation.
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Justin D. Barr Revocable Trust U/A
By: _____________________
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this ____ day of __________________,
2026 by ______________________, the _______________________ of the Justin D. Barr
Revocable Trust U/A.
Notary Public
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CITY OF SCANDIA
By: _____________________________
Steve Kronmiller
Its: Mayor
Attest: _____________________________
Kyle Morell
Its: City Administrator
STATE OF MINNESOTA )
) ss.
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this ____ day of ____________,
2026 by Steve Kronmiller and Kyle Morell, the Mayor and City Administrator respectively, of the
City of Scandia, a Minnesota municipal corporation, on behalf of the City of Scandia.
_____________________________________
Notary Public
THIS INSTRUMENT DRAFTED BY: AFTER RECORDING PLEASE RETURN TO:
Amanda Johnson # 0400128 City of Scandia
Eckberg Lammers 14727 209th St. N
1809 Northwestern Ave Scandia, MN 55073
Stillwater, MN 55082
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EXHIBIT 1
DECOMMISSIONING AMOUNT SCHEDULE
Operation Year Decom Amount
0 (Construction Term) $565,000.00
Year 1 $610,454.44
Year 2 $610,454.44
Year 3 $610,454.44
Year 4 $610,454.44
Year 5 $610,454.44
Year 6 $690,673.17
Year 7 $690,673.17
Year 8 $690,673.17
Year 9 $690,673.17
Year 10 $690,673.17
Year 11 $781,433.30
Year 12 $781,433.30
Year 13 $781,433.30
Year 14 $781,433.30
Year 15 $781,433.30
Year 16 $884,120.05
Year 17 $884,120.05
Year 18 $884,120.05
Year 19 $884,120.05
Year 20 $884,120.05
Year 21 $1,000,300.69
Year 22 $1,000,300.69
Year 23 $1,000,300.69
Year 24 $1,000,300.69
Year 25 $1,000,300.69
Year 26 $1,131,748.41
Year 27 $1,131,748.41
Year 28 $1,131,748.41
Year 29 $1,131,748.41
Year 30 $1,131,748.41
Year 31 $1,280,469.45
Year 32 $1,280,469.45
Year 33 $1,280,469.45
Year 34 $1,280,469.45
Year 35 $1,280,469.45