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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.