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HomeMy WebLinkAbout10655ORDINANCE NO. 10655 AN ORDINANCE ESTABLISHING PROJECT NO. CI2423 - ENERGY PERFORMANCE CONTRACT AUDIT, BUDGETING AND APPROPRIATING $125,000.00 FROM THE UNAPPROPRIATED FUND BALANCE OF THE GENERAL FUND FOR SAID PROJECT, AND APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE STATE OF COLORADO BY AND THROUGH THE COLORADO ENERGY OFFICE AND THE CITY OF PUEBLO, AND AUTHORIZING THE MAYOR TO EXECUTE SAME BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. Project No. CI2423 - Energy Performance Contract Audit is approved and hereby established. SECTION 2. Funds in the amount of $125,000.00 are hereby transferred from the 2024 unappropriated fund balance of the General Fund, and budgeted and appropriated into Project No. CI2423 - Energy Performance Contract Audit. SECTION 3. The Memorandum of Understanding by and between the State of Colorado by and through the Colorado Energy Office, and the City of Pueblo, a Colorado Municipal Corporation, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the Pueblo City Attorney, is hereby approved. The Mayor is hereby authorized to execute the Memorandum of Understanding for and on behalf of the City Pueblo. SECTION 4. The officers of the City are authorized to perform any and all acts consistent with this Ordinance to implement the policies and procedures described herein. SECTION 5. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on February 12, 2024. Final adoption of Ordinance by City Council on February 26, 2024. APPROVED: PRESIDENT OF CITY COUNCIL Action by the Mayor: ☒ Approved on 02/29/2024 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST City Clerk City Clerk's Office Item # R2 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: February 26, 2024 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Andrew Hayes, Public Works Director SUBJECT: AN ORDINANCE ESTABLISHING PROJECT NO. CI2423 - ENERGY PERFORMANCE CONTRACT AUDIT, BUDGETING AND APPROPRIATING $125,000.00 FROM THE UNAPPROPRIATED FUND BALANCE OF THE GENERAL FUND FOR SAID PROJECT, AND APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE STATE OF COLORADO BY AND THROUGH THE COLORADO ENERGY OFFICE AND THE CITY OF PUEBLO, AND AUTHORIZING THE MAYOR TO EXECUTE SAME SUMMARY: This Ordinance establishes Project No. CI2423 - Energy Performance Contract Audit and budgets and appropriates $125,000.00 from the unappropriated fund balance of the General Fund to said project to fund building energy audits to identify potential future projects. PREVIOUS COUNCIL ACTION: None. BACKGROUND: The Colorado Energy Office has established an Energy Performance Contracting (EPC) program which allows public entities to leverage energy cost savings realized from the implementation of capital projects to finance the cost of implementing those improvements. The program requires that the City contract for an energy consultant to perform an investment-grade energy audit of certain facilities. The audit team will help the City identify a slate of potential projects that would result in long-term energy cost savings, and to prioritize those projects based on anticipated payback. The program is set up to allow the City to select (or to not select) any of those projects and to use the future cost savings as a funding source to finance the cost of implementing those projects so that the City does not incur a major capital outlay to install the required upgrades. The City will realize several benefits through its participation in the EPC program, including:  Long-term reduction in City's energy demand and permanent cost savings that reduce recurring energy expenses once implemented projects are paid  Updated/upgraded facilities and building systems without the need to divert significant capital resources  Alignment with City's strategic energy objectives Through participation in the program, Public Works intends to assess approximately 500,000 of the City's 1.5 million square feet of facility space to identify potential energy savings projects. FINANCIAL IMPLICATIONS: This Ordinance will transfer $125,000.00 from the unappropriated General Fund balance to Project No. CI2423 - Energy Performance Contract Audit. The funds will be available to cover the City's obligation to pay for the required energy audit. BOARD/COMMISSION RECOMMENDATION: The City's Energy Advisory Commission has recommended the City's participation in this program. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: Failure to pass this Ordinance will preclude the City from participating in the Colorado Energy Office's Energy Performance Contract program. RECOMMENDATION: Approve the Ordinance. ATTACHMENTS: 1. CEO EPC Memorandum of Understanding