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CITY COMMISSION AGENDA ITEM |
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Department: |
City Manager’s Office |
Commission Meeting Date: January 17, 2017 |
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Staff Contact: |
Eileen Horn, Sustainability Coordinator |
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Recommendations/Options/Action Requested: |
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Receive report and concur with staff recommendation to proceed with initiation of Energy Performance Contract to implement cost-effective energy efficiency and maintenance projects in City buildings and facilities, and to issue bonds for the funding for these measures. Receive report and authorize the City Manager to finalize and sign an Energy Performance Contract with Wildan Group, Inc. (DBA 360 Energy Engineers) in substantially the same form as the attached contract and schedules in an amount of $10,837,472.00, if appropriate. |
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Executive Summary: |
Over the past year, the City has participated in the Facilities Conservation Improvement Program (FCIP), a state program that assists public entities in implementing energy efficiency and maintenance upgrades.
In that time, and with the support of the Commission, we hired 360 Energy Engineers to conduct an Investment Grade Audit of 40+ city facilities, to recommend energy conservation measures, to design each of these systems, and to bid the projects on behalf of the City. Today, we have the final Energy Performance Contract to present to the Commission, which includes the recommended energy conservation measures, the project financing, and the energy savings guarantee.
Staff recommends initiating the Energy Performance Contract with 360 Energy Engineers. We believe these projects represent an excellent opportunity for the city to save energy, save money, improve our buildings, and address identified needs from the CIP process. The Finance Director is recommending funding this project with “Green Bonds” a type of municipal bond created for projects that have environmental benefits. Lawrence would be the first city in Kansas to use this innovative financing mechanism. |
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Strategic Goal Area: |
Other (Sustainability and Energy Efficiency) |
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Fiscal Impact (Amount/Source): |
The fiscal impact to the City is neutral. The City will finance $11,288,159 with debt service payments funded by utility, maintenance and CIP savings. Many of these upgrades were in the 2017-2021 CIP. |
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Attachments: |
City of Lawrence Investment Grade Energy Audit Comprehensive Project Pricing Details General Obligation Bonds Debt Service Schedules Letter from the Kansas Corporation Commission Presentation to Commission 1.17.17 |
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Reviewed By: (for CMO use only) |
☐TM ☒DS ☐CT ☐BM |
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