10.d)1) Staff Report-solar power purchase agreement� J
SCANDIA
Staff Report
Date of Meeting: February 16, 2016
To: City Council
From: Neil Soltis, Administrator
Re: Novel Energy Solutions
Background:
Novel Energy Solutions is in the process of completing the solar installation on the Fire Hall /
Public Works Building. To date, no action has been taken on formally entering into an
agreement with Novel.
Issue:
Should the City enter into the Solar Power Purchase Agreement with Novel Energy Solutions?
Proposal Details:
Novel Energy Solutions has submitted this agreement for approval. The agreement as presented
has been revised based on input from the City Attorney. The agreement is for a term of 20 year
with the City having the option to purchase the system at the 6th year, 1 Oth year, and at the end of
the contract. Additionally the City can extend the agreement for 2 additional 5-year terms.
Under the terms of the agreement the City will received a 15% discount on electrical usage at the
building.
Approximately 1/2 of the panels have been delivered and are in place on the roof. The installation
has been delayed due to an issue between the manufacturer and the distributor and, since it is part
of the Made in Minnesota program, the MN Department of Commerce is involved trying to
resolve the problem and get the panels delivered. Novel has provided a mid -March delivery date
and is hoping the Department of Commerce can expedite that timeframe.
Options
1) Approve the agreement as presented
2) Make modifications to the agreement
Recommendation: Option 1 - Approve the Solar Power Purchase Agreement as presented.