BY COUNCILOR STOVER:
BE IT RESOLVED, that the proper city officials are authorized to execute and implement two contracts, substantially in the form of those on file with the clerk as Public Document No. ______________, between the city and Johnson Controls, Inc., and Duluth Steam Cooperative, in the net amount of $3,198,360, for purchase and operation of improvements to the Duluth steam plant, payment from Fund 540, Agency 920, Organization 1499, Object 5530.
STATEMENT OF PURPOSE: These two contracts create the greenhouse gas emission reduction project for Duluth Steam Cooperative. The city needs to improve the steam plant. With this project it will be done with no ultimate cost to the city. Johnson Controls, Inc., will design and construct improvements to the plant. The Duluth Steam Cooperative will operate the new plant. The city will bond for the cost. Duluth steam utility will pay off the bonds. Climate Trust will contribute over $1,000,000. The new plant will be more efficient and thus generate carbon offset credits. These will be transferred to Climate Trust. The arrangement ends after 15 years, at which time the city has no further obligation as to carbon offsets.