HomeMy WebLinkAbout2010 Resolution No. 068• RESOLUTION NO . lite
SERIES OF 2010
A RESOLUTION OF THE CITY COUNCU, OF THE CITY OF ENGLEWOO D, 'OLORADO
ESTABLIS HIN G AND DESCRIBING THE CITY OF ENGLEWOOD GREEN COMMUNITY
PROGRAM AND PROVIDING OT HER MA'l1'ERS RELATING THERETO.
WHEREAS, the Ci1y of Englewood, Co lorado (the "Ci1y"), is a home rule municipality or the
State of Colorado (the "S tate") du ly organized and operating under the Home Rule Charter or the
City and the constitution and laws of the State; and
WHEREAS, Section 30 I (a) of the Tax Extenders and Alternative Minimum Tax Relief Act of
2008 added Section 54D (as amended by Secli on 111 2 of the American Recc ecy and
Reinvestment Act of 2009, "Section 54D") to the Intern al Revenue Code of 19 86, as an1ended (as
amended, the "Code"), to authorize states and political subdivi sions to issue qualified energy
conservation bonds ("QECBs") for one or more Qualified Conservation Purposes (as defined in
Section 54D); and
WHEREAS, among suc h Qualified Co nserva ti on Purposes are "capi lnl expenditures incurred
for purposes of ... imp lemen ting green communit y programs (including the use or loans, grants ,
or othe r repayment mechanisms to implement such programs)° (a s used herein , "Green
Community Prngrams"); and
• WHEREAS , the Ci ty desires to establi,h a Green Community Program (as funher described
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herei n, the "City of Englewood Green Communi ty Pr..::,ram11
)1 to be financed in part wi th the
proceeds of QECB s to be issued by the City; and
WHEREAS , th e aim of th e Ci ty or Eng lewood Green Commu nity Program is to lower th e
electrica l, natural gas and water usage in various public buildings of the Ci ty and create costs
savings to the Cit y; and
WHEREAS , thi s Reso lu tion is bei ng adopted to provide an initia l descripti on of the Ci ty of
Englewood Green Community Program and to set fo rth ce rt ai n proj ec ts to be included therein.
NOW , THEREFORE , BE IT RESOLVED BY THE CITY OUNC IL OF THE Cl'l'Y OF
ENG LEWOOD , CO LORADO. THAT.
Secti on I. Establishme nl or City of Englewood Green Community Progrnm . The City ll crcby
establis hes the City of Eng lewood Green Community Program a, a Green Community Pro gram
withi n th e meaning of Section 54D . The Ci ty of Englewood Green Communit y Program shall
include, but not be limited to , improvement s to vnri ous public building s of the City that nre to
lower th e elec tri cal, natural gas and wate r usage in :mch buildings and crea te cos t savings to the
City, ns guaranteed in the Energy Perfommuce Co ntract (the 11 EPC ") between the City and
Ameresco, lnc. (th e °Contmctor") pursuant to which the Contmctor is to se ll , install and serv ice
certain energy efficien cy equ ipment of a specified type or class and pruvide other se rvi ces , all as'
specified in the EPC .
Secti on 2. Future Add ili ons to Program . The proj ects and progrml)S li sted in Sect ion I hereof •
arc not intended to represen t an ex hau stive descripti on of the po1c111ial projects and programs to
be included in th e City of Englewood Green Community Progra m. Th e Cit y ou ncil of the Cit y
(th e "Co unc il ") inten ds a nd ex pects that additional projcc 1s nnd program s will be added to the
Ci ty of Englewood Green Comm unit y Pro gram hy fut ure reso lu ti ons of the Counci l as suc h
proj ects and program s nrc develo ped .
Section 3. Confinna ti on of Pri or Act s. All acti ons no t inconsistent witl 1 th e provi s ions of thi s
Reso luti on heretofo re ta ken by the members of the Co unci l and the olli ce rs and em pl oyees of the
Ci ty arc hereby ratified , approved and confim1cd .
Sec tion 4. Repea ler . All pr ior net s, orders or re so lution s, or parts lh crcol, by the 'it y in
co nfli ct wit h thi s Reso lution are hereby rcpcalccl , except that thi s repea ler s hall not he constnied
to revi ve any ne t, ord er or reso lu tion, or part 1hcrcof, heretofore rep ealed .
Sectio n 5. Sevcra bilit y. If any secti on. paragraph , clause or provi sion of thi s Re so lutior, shall
be adju dged to be inva lid or unen forceable, the invalidit y or uncn forcca bili 1y of such s ection ,
paragrap h, cla use or pro vision shall not affect an y of the rem ainin g sec ti ons, pa rn grnph s. cla uses
or prov isions of th is Res ol uti on. it bei ng the intenti on that the vari ous part s hereof arc severable.
ADO PT ED AN D APP ROVED this 19th cla y of Jul y. 20 10.
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COUNCIL COMMUNI CATI ON
Da te: Ag enda 11 cm: Sub ject:
Ju ly 19, 2010 11 C i Resoluti on es tablishing th e Ci ty o f Engl ewood
Gree n Com mu nit y Program
In itiated By: I Slaff So ur ce:
Ci ty Manage r's Office Michael Flahe rt y, Deput y Cit y Ma nage r
COUNCI L GOA L AND PREV IOUS COUNCI L ACTION
Ci ty Co un cil has exp resse d strong in teres t in pr omoting energy efficien cy, and alt ern ative and
renewa ble energy. In 2008, staff initiated effo rt s to address energy efficiency and to develop a p lan
for impl ement ation of "Gree n Ci ty" initia tives. To th at end, Ci ty Co unci l approv ed a M emorandu m
of U nders tandin g (MOU) w ith th e Govern or's Energy O ffi ce (GEO) o n O cto ber 20, 2008. 011 May
4, 2009, Cit y Co unci l approved, by Res o luti on #38 of 2009, se lec ti o n of A m eresco, Inc. as th e
City's Energy Service Co mpany. On l un e 1, 2009, Council approve d by mo t io n an agre ment w ith
A rn eresco for p erforman ce of a Technica l Ene rgy Aud it (TE A.) On N ovember 16, 2009, Cou ncil
approve d Amend ment # I to the TEA to prov ide fo r th e inves tiga ti o n desig n , develo pme nt, and
implementati on o f pho tovoltai c (so lar) sys tems at va ri o us ( •y facilities. The r nergy A udit Report
was d isc usse d at th e March 8, 20 10 Cit\ Coun cil Study Sessio n and C ity Counci l approve d an
Ene rgy Performance Con tr ac t vv ith Ameresco on Ju ne :!1, 20 10.
RECOMMENDED ACTION
Staff see ks Cound l ap proval for a reso luti on es tabli shin g and desc rib ing th e Cit y of Englewood's
Gree n Communi ty Program to ensure co mplian ce with In tern al Rev enue Se rv ice requir eme nt s
pe rt ai ning to the issua nce of Qua lifi ed Energy Co nse rva ti on Bonds .
BAC KG RO UND
As d res ul t of the T ec hru ca l l:n ergy Aud 1l co ndu tl·• 1 on Ci ty of Lngle woo d fa cili ties arli er this yea r
and th e subseque nt Energy Performa ,v.:e Co11 tr~u.:1 approv t d by Co unci l, it \Na~ ne ce ssary to ensur e
th ,11 .1 funding rn ec hanbm w.1 s 1n plJ ce ,or th e plann ed energy co n~t.•rvalion me,bur es. \i\/e ,1pp li ed
for me! we r granted d \olum e cc1p all oc c1ti on for lh c isst1a11 ce n1 "Qualil1 ed Energy Co nse rva ti on
Bon ds (QEC Us) irom the Govern or's Energ\' Office (GEO). The alloc,1tio11 provides a federa l subsidy
for a sig ni fi ciltll porti on of th e int erest co sts as~o ctil lt:!cl wi th th e lt.:!c1se /pu1 ch.1 se ilgr eeme nt of the
equip ment id entifie d as pa rt of our energy co nserva ti on measur es. City Co un ci l gran ted appro v.i l
on firs t re.idi ng of th e QECBs on luly 6 ,1 nd is schedu led to co ns1d r th e m,1l ter on seco nd rea din g
o n July 19 (see agenda item 9 b iv).
W e hav e be en adv ised by our bo nd co unsel tha t it is nec essary to <1pprove L1 res oluti on establi shin g
a "Gre n Corn111uni1 y Prog r;1111" to ensure that we: a1 e in c0 111ph,1 nt.:l~ \\ 1th lntcnMI Reve nu e Scrvite
(IRS ) gu idelin es related to Qualified En ergy Co nse rvati on Bo nd,.
The propos ed reso luti on lays out the goals and objec tives of th e Ci ty's plann ed energy co ns erva ti on
meas ur es and addresses th e requiremen ts co ntained in the Energ y Performance Con trac t.
FINANCIAL IMPACT
There is no cos t associa ted \•vith th e adop ti on of thi s reso lu tion. It is imp ort ant to note, howeve r, th e
poten tia l fi nanc ial impli ca tions if th e QECBs are not spe ci fi ca ll y ide nti fi ed as part of a Gree n
Commun ity Prog ram. Accor clin b to bond allorn ey To m Peltz , if th e City was subj ec t to an IRS aud it
and co uld not prove to th e IRS ' sa ti sfac tion tha t the bonds are being use d for a qllalifi ed energy
purp ose, th ere is a poss ibility th at we ould lose th e aforeme nti oned fed eral subsidy.
UST OF ATTACHMENTS
E-ma il fr om Bond Allorn ey Thomas Pe ltz
Propose d R so lut ion
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ubjoc t :
ttac hm ents:
FW Eng elwood "Green Community Program "
City of Englewood Green Communi ty Program Res olu l1on 2010 doc
-----O riginal Message-----
From : Peltz, Thomas M.
Sent: Monday, July 12, 2~10 •: 30 PM
To: Frank G,,ygleL-Jicz
Cc: Dan Brotzman
Subject: Engel wood "Green Community Program"
Frank , as I indicated on my voicemail, the proceeds from QECB's must be spent for a qualJfied
enHgy purpose, which for the City would include c apital expenditures either for (1) reducing
nergy consumption in publicaly owned buildings by at lea st 20% (on a building -by-building
ba s is) or (2) imp l ementing a "green communi y program". Because the risk of (1) would fall
on the City (i.e ., if we could not evidence (1) to the satisfac ion of the ms in an audit,
the City would loose the subsidy, it would be prudent to identify the project as part of a
"Gr een Community Program ". The attached resolution would be necessary to establish such a
program. Is it possible to have his included on the upcoming agenda?
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