Resolution 2009 - 18 - Laserfiche WebLink

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actually save energy. It should be noted that recently the City of Florissant issued a Request for Proposals and the City of St. Louis issued a Request for Qualifications under the premise that the energy audit and master planning process costs be separated from the implementation for the reasons stated above. It is estimated that a full ASHRAE Level II energy audit and master plan for City Hall Annex (Fire/Police/Print Shop), Heman Park Community Center, Central Garage, Park Maintenance Facility, Golf Clubhouse/Maintenance Facility, and Firehouse No. 2, and a modified audit of City Hall and Centennial Commons, will cost approximately $25,000. It is the goal of the process that energy savings guaranteed by the energy audit firm will be sufficient to pay back the costs of the EEMs. Under this scenario, the City will not incur any costs in implementing the energy savings modifications under this financing scheme. Preparation of the request for proposal and supervision of the energy audit and master planning process would be the responsibility of the Assistant City Manager and the Director of Public Works. Define Parameters for Capital Projects and Return on Investment Expectations In order to achieve full-scale implementation of energy conservation and green practices, there must be an investment of resources, often capital into projects. Many energy efficiency capital projects have a short return on investment; other projects take longer. The City should first devise sustainable design guidelines for capital projects. For example, one guideline may be that all new City structures meet the LEED-Gold standard or higher. These standards will dictate the sustainability aspects of capital projects, consistent with the Resolution's commitment that sustainability be integral to all decisions made and actions taken. The guidelines commit the City to capital projects that in fact increase the energy efficiency of City facilities. Second, the City should determine an acceptable rate of return on investment when evaluating a capital expenditure. That rate of return must include a full cost accounting of a particular project, including new or differing personnel costs and new or different maintenance requirements. A common guide is to look at the City's return on investment of its fund balance/reserves. If a capital project can yield a rate of return higher than the City is getting on it's the investment of its fund balance, then it should be an acceptable project from a financing perspective. Likewise, capital projects of differing values or life cycles may have differing parameters for ROI parameters. The Committee will make recommendations to Council to set ROI parameters for capital projects intended to reduce energy usage by X percent with a pay back within 5,10 or 15 years as compared to item's useful life. The term of acceptable 9