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IV.7. Approve Subscription Agreement with Geronimo Energy for purchase of energy from community solar gardens; Stadler (CR2017-119)�rTY oF September 28, 2017 y° P K� N S Council Report 2017-119 Approve Subscription Agreement with Geronimo Energy for purchase of energy from community solar gardens Proposed Action Staff recommends adoption of the following motion: Move that Council approves a 25-year subscription agreement with Geronimo Energy for the purchase of energy from community solar gardens and authorize the City Manager to sign the agreement on behalf of the City. Overview The City entered into the MN Community Solar Garden program back in 2015 via a subscription agreement with SunEdison. SunEdison has since gone through a bankruptcy and our subscribed solar gardens are now owned and operated by SoCore Energy and Ecaplexus. The energy from these gardens will account for about 80% of our electrical demand. Three of the original solar garden sites fell out of the program for various reasons. Therefore, the City has about 0.75 m1/�f-hr/yr out of our total energy use of 5.15mW-hr/yr available for solar purchase. Staff has been working with Geronimo Energy which has a solar garden with available capacity and is currently under construction in Sherburne Co. Geronimo Energy is a weil-established developer of renewable energy projecfis and has a nearly 100 mW portfolio of solar gardens throughout Minnesota thafi are either under construction or in operation. The proposed subscription agreement with Geronimo Energy will be identical to our current agreement with a 25-year term and a$0.01/kW-hr price offset from the Xcel Energy rate. It is anticipated that the Geronimo Energy solar garden will begin operations in 1 St qtr 2018. The City �ttorney has reviewed the proposed agreement and minor changes may yet be made that do not materially affect the City's obligations, risk or energy cost savings. City staff recor�mends approval of the subscription agreement. Supportinq Information • Proposed Subscription Agreement (Final agreement language is still being reviewed and revised between the parties — the proposed final agreement will be provided to City Council just prior to the meeting) � Steven J. Stadler, Public Works Director.