Title
RESOLUTION AUTHORIZING AMENDMENT TO AGREEMENT BETWEEN THE CITY OF DULUTH AND EVER-GREEN ENERGY DULUTH, LLC MODIFYING THE TERMS FOR OPERATING AND MANAGING DULUTH STEAM DISTRICT NO. 1.
Body
CITY PROPOSAL:
WHEREAS, on June 11, 2012, the city council passed Resolution 12-0291 authorizing an agreement with Ever-Green Energy Duluth, LLC (“EGE”) to operate and manage Duluth Steam District No. 1 (“agreement”); and
WHEREAS, the agreement has been working well for the city and the steam district customers; and
WHEREAS, the city and EGE want to amend the agreement to clarify the management of the steam plant and district and to provide a long-term platform for upgrading the facility.
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to enter into an amendment to the agreement, substantially in the form attached hereto as Exhibit A, clarifying the management of the steam plant and district and to provide a long-term platform for upgrading the facility.
Statement of Purpose
STATEMENT OF PURPOSE: The purpose of this resolution is to authorize an amendment to the agreement between the city of Duluth and EGE to allow the following changes:
1. Broadening the facilities product offering from steam to energy;
2. Clarifying the actual start date of the agreement;
3. Changing the budget submitted date from September 1 to October 1;
4 Modifying the audit requirement from annually to at the request of the city;
5 Clarifying that EGE can execute energy sale contracts;
6. Requiring the city to supply EGE two parking permits for system business;
7. Extending the contract term from December 31, 2017, to December 31, 2025; and
8. Providing for management fee increases between 2% and 4% based on CPI for 2018 through 2025.
These changes will facilitate better management of the steam plant and district and allow for upgrading the facility in the future.