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Item No: 7K Meeting Date: May 23, 2016 Type of Business: CB Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Don Peterson, Public Works Supervisor Item Title/Subject: Resolution 8583, Approving the Uniform State Wide Contract for Cogeneration and Small Power Production Facilities as part of the Energy Savings Partnership (ESP) program for the Community Center and City Hall Background: As part of the ESP (Energy Savings Partnership) program the City installed solar panels at the Community Center and City Hall. The City of Mounds View is required to enter into a Contract with Northern States Power Company a subsidiary of Xcel Energy Inc. for the connection of the two solar power systems. This contract allows the connection of the two solar panel arrays to Xcel’s power system, and for the potential sale of electricity produced and put back into the power grid operated by Xcel Energy. The contract covers the rate of power paid to the City for this excess power during peak and non-peak demand times. The contract was approved by the Minnesota Public Utilities Commission, and is a standard contract approved when installing solar power. Discussion: The ESP program was approved by the City Council at the January 26, 2015 Council meeting. Noble Energy Solutions, the sub-contractor for Trane Building Services, has installed the solar panel arrays and has been working to finish up the last steps in completing this portion of the program. The solar panel systems are in place and ready to start producing power for both buildings. Required to continue with the project are the signed contracts/agreements for both City Hall and the Community Center. After the contracts are signed new power meters will be installed and the solar arrays will start producing power. While one of the contracts is a hard copy form, the other is an electronic form and will require an electronic signature. The electronic copy is for the Made in Minnesota grant that the City received for the solar project at City Hall. All the documents were sent to the City Attorney to review and no comments back have been received. Recommendation: Staff recommends approving the contracts between the City of Mounds and Northern States Power Company, a Minnesota corporation and wholly owned by subsidiary Xcel Energy, for the cogeneration and small power production facilities. These contracts allow putting the two solar panel arrays at City Hall and the Community Center into the power grid operated and owned by Xcel Energy. The contracts also define the energy pay rate for excess power produced by the solar panel arrays during both peak and non-peak times. Staff also recommends the City Council to approve staff to sign the electronic version of this contract for City Hall. Respectfully submitted, Don Peterson Public Works Supervisor