Title
RESOLUTION AUTHORIZING AN AGREEMENT WITH EVER-GREEN ENERGY, INC TO MANAGE AND OPERATE DULUTH ENERGY SYSTEMS FOR A FIVE-YEAR TERM BEGINNING ON DECEMBER 31, 2025, AND EXPIRING ON DECEMBER 31, 2030.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are authorized to enter into an agreement with Ever-Green Energy, Inc, substantially in the form of that attached as Exhibit A, for the management services of Duluth Energy Systems for a term of five years, beginning on December 31, 2025 and expiring on December 31, 2030, and an annual amount of $324,000 plus reimbursable expenses and scheduled annual adjustments as identified in Exhibit A, payable from fund 540-920-1495-5307 (steam, steam department, steam general and administrative, admin/management fees).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes an initial five-year agreement with two optional five-year renewals with Ever-Green Energy, Inc. for the management of Duluth Energy Systems. Management fees of $27,000 per month plus reimbursables will be payable the first year, with an annual increase between 2% and 4% based in part on the Consumer Price Index.
Ever-Green Energy has been managing the Duluth Energy System, which provides energy in the form of steam, hot water and cooled water to various customers in Duluth’s Downtown, Canal Park and East Hillside neighborhoods, since September 2012. Ever-Green Energy is uniquely qualified to manage the plant and work to advance the system and improve its efficiency.