Regular 7.
Regular City Council Meeting
- Meeting Date:
- 10/11/2011
- TITLE
- Public Hearing and Resolution Approval for the Energy Performance Contract and Lease-Purchase Agreement With US Bancorp
- PRESENTED BY:
- Patrick M Weber
- Department:
- City Hall Administration
Presentation:
Information
PROBLEM/ISSUE STATEMENT
On September 12, 2011, the City Council approved the Investment Grade energy audit findings. Because of this audit, the City proposes to undertake energy efficiency improvements to various buildings and facilities at the Airport and within certain City-owned parking garages. The total cost of the Airport improvements is estimated to be $1,399,078 and the total cost of the parking garage improvements is estimated to be $578,311. It is anticipated that the energy savings will offset a portion of the expense. Bond Counsel, Dorsey Whitney LLC., has provided a resolution for the City to enter into an energy performance contract with McKinstry Essention, Inc to complete the improvements, and to enter into a Purchase Lease Agreement with U.S. Bancorp to finance the improvements over the next 15 years utilizing energy savings to cover the majority of the improvements and financing costs.
ALTERNATIVES ANALYZED
The Council must hold a public hearing and then may:
•Approve the resolution; or
•Not approve the resolution and not complete the energy effieciency improvements for the Airport and parking garages.
•Approve the resolution; or
•Not approve the resolution and not complete the energy effieciency improvements for the Airport and parking garages.
FINANCIAL IMPACT
In order to finance the improvements, the City proposes to enter into an agreement with US Bank Equipment Finance Inc. The installment payment shall be made from Airport and Parking funds and shall not be construed to be debts of the City. The debt schedules are included in the Master Tax Exempt Installment Purchase Agreement.
The expected energy savings are at least $307,188 over a 3-year period with respect to the Airport improvements and at least $151,998 over a 3-year period with respect to the Parking improvements.
The expected energy savings are at least $307,188 over a 3-year period with respect to the Airport improvements and at least $151,998 over a 3-year period with respect to the Parking improvements.
RECOMMENDATION
Staff recommends that Council conduct a public hearing and pass the proposed resolution.