City and State officials have reached agreement on three contracts relating to the proposed District Heat project.
One contract addresses the business relationship between the parties - rates, future capacity, operations, etc. A second contract address the city's procurement of specific capacity within the state's heating plant. The third contract deals with how federal funds will be processed between the grant recipient (the city) and the subrecipient (the state). All three documents are attached as is a term sheet which explains the contracts.
City Manager William Fraser is recommending that the City Council approve these three agreements at their meeting on January 11th.
Approval of these contracts is a major step in moving the District Heat project forward. This project will connect City Hall, the Police Station, the Fire Station, Montpelier High School and, probably, Union Elementary School to a newly rebuilt and expanded State Wood Fired Central Heating Plant which will also serve the state complex. The District Heat system will have the capacity to serve private buildings located in downtown Montpelier. The $18.2 Million project (combined state and city) is funded through an $8 Million Federal Dept of Energy Grant, $7 Million from the State of Vermont capital bill, $2.75 Million from an approved financing by the City of Montpelier, $1.2 Million in state funding, a $1 Million Clean Energy Development Fund (CEDF)Grant. The city's financing includes a $750,000 low interest deferred loan from CEDF.
If the Council approves these contracts, the next step will be for the state to issue an RFP for the boilers and heat plant work. At the same time, the city distribution system is being designed and is anticipated to be put out to bid by summer. Assuming all bids fall within available funds, the city and state are planning for the system to be operational by October of 2013.
upload/news/576/files/thermal_purchase_and_sale_agreement_final_clean_1_6_12.pdf
upload/news/576/files/procurement_agreement_1_6_12_final_execution_clean.pdf
upload/news/576/files/sub-recipient_agreement_1_6_12_final.pdf
upload/news/576/files/term_sheet_final.pdf
