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Council raises legal and payment concerns over proposed 20-year community solar contract
Summary
Staff reported a community solar offer from US Solar that would run 20 years and deliver energy credits; City Attorney Paul Chadwick warned of potential termination fees and problems with required payment timing, prompting staff to schedule further meetings with the program representative before committing.
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City Manager Darin DeHaan told the council that US Solar is offering community-solar credits to the city (and county and park district) with estimated savings but that draft contracts run for 20 years. City Attorney Paul Chadwick cautioned that the city could be required to pay a fee to end the contract and noted the agreement lacks the city's desired 30- or 60-day net payment terms, which raises governance concerns about council-approved payments.
DeHaan and Chadwick said they will draft contract language and set up a discussion with program representative Mike Mudge to clarify termination language, payment terms, and other contract provisions. Council members were asked to submit questions to staff ahead of the meeting so the city can seek clarifications before committing to a long-term contract.
The council did not approve a contract at the Sept. 10 meeting; staff follow-up and clarification meetings were the next steps.
