9.e) Memo re_ Solar Purchase AgreementECKBERG LAMMERS
MEMORANDUM
To: Honorable Mayor and City Council
From: Nicholas J. Vivian, City Attorney
Date: August 14, 2015
Re: Solar Power Purchase Agreement
As requested by the City Administrator, I have been negotiating a Solar Power Purchase
Agreement ("Agreement") on behalf of the City with Novel Energy Solutions, LLC ("Novel").
The Agreement provides for the installation, at no cost to the City, of a solar photovoltaic system
("System") by Novel, to be located on the roof of City's Fire Station. In return, the City shall, by
the terms of the Agreement, purchase energy for its Fire Station from Novel at the contract price
which will be 85% of Excel Energy's County price. If the System produces more energy than
consumed by the Fire Station, the excess energy will be sold back to Xcel. If the City requires
additional energy beyond that which is produced by the System, additional energy will be drawn
from the grid.
The term of the Agreement is twenty years and the City will have up to two additional terms of
five years each to extend the duration of the Agreement. The City will also have the option to
purchase the System at the end of the sixth and tenth contract years and at the end of the term.
The purchase price will be the Fair Market Value of the System which is determined by a
formula outlined in the Agreement.
The approval of the relationship between the City and Novel, and the associated Agreement,
requires no capital outlay on the City's part, and provides the City with a means for purchasing
discounted energy for its Fire Station over the next twenty years.
Staff recommends approval of the Agreement.
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