HomeMy WebLinkAbout9. Resolution 4568 Max Incentive Amount
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Natalie Meyer, Sustainability Program Manager
SUBJECT: Resolution 4568, amending Resolution 4497 by authorizing an increase to
the maximum incentive amount from $1,500 to $2,500 available to City of Bozeman businesses
through the Bozeman Energy Project.
MEETING DATE: October 27, 2014
AGENDA ITEM TYPE: Consent
RECOMMENDED MOTION: I move to approve Resolution 4568, amending Resolution 4497
by authorizing an increase to the maximum incentive amount from $1,500 to $2,500 available to
City of Bozeman businesses through the Bozeman Energy Project.
BACKGROUND: The Bozeman Energy Project (formerly called the Bozeman Business
Energy Program) was approved by the City Commission on December 16, 2013. Through the
combined efforts of the Offices of Sustainability and Economic Development, the program aims
to incentivize local businesses to improve building energy efficiency for long-term cost savings.
The Bozeman Energy Project is a membership-based program that offers educational resources, workshops, technical support, and public recognition to businesses that are interested in reducing
their monthly utility bill and their environmental impact.
As part of the Bozeman Energy Project, the City Commission authorized the Bozeman Business
Incentive Fund for one-time cash incentives to businesses that complete energy efficiency and
renewable energy projects. The City of Bozeman had formerly allocated these funds to the non-profit Northern Rocky Mountain Resource Conservation & Development (RC&D) to administer the Big Sky Energy Revolving Loan Fund (RLF). Over the last ten months, the Northern Rocky
Mountain RC&D dissolved and the Big Sky Energy RLF was returned to the City of Bozeman on
October 8, 2014 in the amount of $59,943. Since receiving the funds, no incentives have been disbursed. In the original resolution, we proposed a one-time incentive of $500 to $1,500 for member businesses that complete a free NorthWestern Energy Appraisal and implement one or
more of the projects recommended in the Energy Appraisal. To encourage local investment, all
applicants are required to contribute 66 percent of the total project cost (2:1 match requirement).
Since approval of Resolution No. 4497, we have heard from members of the City Commission
that the incentive amount should be increased to more adequately assist businesses that wish to complete larger, more complex projects with corresponding greater energy savings. After further
consideration and discussion with project partners, we believe increasing the maximum incentive
will provide the catalyst we need to jumpstart the program. The increase will entice more
businesses to participate, while still distributing the benefits throughout the community. We are
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nearing the program launch date of November 10, 2014 and expect no additional program
changes. The proposed increase is supported by the City of Bozeman Office of Economic
Development and was approved by the Bozeman Climate Partners Working Group on January
15, 2014.
Project Development and Timeline
Since program approval, we developed a new city employee class specification and hired a half-
time Energy Conservation Technician who was offered the position in late March of 2014 and
started work at the City of Bozeman on May 5, 2014.
In accordance with the purchasing policy, the City of Bozeman sent out a Request for Proposals for website, marketing, and public outreach to help us successfully communicate and promote the Bozeman Energy Project. Classic Ink was selected on June 26, 2014.
During the discovery process with Classic Ink, we decided to rename the program Bozeman
Energy Project to simplify the title and make it more inclusive of all commercial building
owners and tenants, which may include non-profit organizations. The revised title will also allow for collaborative marketing with the Public Works Division’s Better Bozeman Project. We have worked closely with Classic Ink on the development of the website and outreach materials,
including a program overview video.
We continue to coordinate with NorthWestern Energy on the application process, which will
involve the NorthWestern Energy Appraisal and the Efficiency Plus rebate program. Our Energy Conservation Technician has invested time speaking with businesses throughout our community
soliciting feedback on program structure and building awareness. We anticipate that numerous
businesses will be ready to sign up immediately following program launch on November 10th.
The City Commission will hear a complete program overview during a Special Presentation in
November.
UNRESOLVED ISSUES: None
ALTERNATIVES: As proposed by the City Commission
FISCAL EFFECTS: The City received $59,943, returned from the Big Sky Energy RLF. As
Bozeman Energy Project Incentive Fund applications are approved, and after proper
documentation is presented, incentives of $500 to $2,500 will be disbursed. It is expected that anywhere from 23 to 119 incentives could be approved before the Fund is depleted. As a result
of increasing the maximum incentive amount, the total incentives available, should all businesses
receive the maximum amount, is reduced from 39 to 23. It is unlikely that all participating
businesses will apply for the maximum amount and we feel confident that increasing the
maximum amount will meet the needs of a greater number of businesses while fulfilling the intent of the program.
Attachments:
1. Resolution 4568, amending Resolution 4497 by authorizing an increase to the maximum
incentive amount from $1,500 to $2,500 available to City of Bozeman businesses
through the Bozeman Energy Project. 2. Resolution 4497, authorizing the Bozeman Business Energy Program creation and
redirecting funds formerly allocated to the Big Sky Energy Revolving Loan Fund
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Report compiled on: 10-20-14
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COMMISSION RESOLUTION NO. 4568
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AMENDING RESOLUTION 4497 BY AUTHORIZING AN INCREASE TO
THE MAXIMUM INCENTIVE AMOUNT FROM $1,500 TO $2,500 AVAILABLE TO
CITY OF BOZEMAN BUSINESSES THROUGH THE BOZEMAN ENERGY PROJECT.
WHEREAS, on December 16, 2013 the Commission adopted Resolution 4497,
CREATING THE BOZEMAN ENERGY PROJECT (FORMERLY CALLED THE BOZEMAN
BUSINESS ENERGY PROGRAM) AND THE BOZEMAN BUSINESS INCENTIVE FUND
FOR BUSINESSES LOCATED IN THE CITY OF BOZEMAN, COUNTY OF GALLATIN,
STATE OF MONTANA, TO PROMOTE COST SAVINGS, ENERGY EFFICIENCY AND
RENEWABLE ENERGY IN COMMERCIAL BUILDINGS; and
WHEREAS, the Commission reallocated the Northern Rocky Mountain Resource
Conservation & Development’s Big Sky Energy Revolving Loan Fund to the Bozeman Business
Energy Program through Resolution 4497; and
WHEREAS, the Northern Rocky Mountain Resource Conservation & Development
Council dissolved and returned the Big Sky Energy Revolving Loan Fund balance of $59,943 to
the City of Bozeman on October 8, 2014; and
WHEREAS, the Bozeman Energy Project will launch on November 10, 2014 and no
funds have yet been disbursed.
WHEREAS, members of the Commission have requested that the maximum incentive
amount be increased from $1,500 to $2,500 for commercial buildings located within the City of
Bozeman.
WHEREAS, the increased incentive amount was approved by the Bozeman Climate
Partners Working Group on January 15, 2014; and
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WHEREAS, the $2,500 incentive cap will encourage more significant investment in
energy efficiency and renewable energy, while distributing the benefits throughout the
community; and
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that:
Section 1
The City Commission of the City of Bozeman, Montana does hereby amend Resolution 4497
authorizing increasing the maximum incentive amount available from $1,500 to $2,500 for
businesses located in the City of Bozeman, County of Gallatin, State of Montana.
PASSED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 27th day of October, 2014.
___________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
________________________________________
STACY ULMEN, CMC City Clerk
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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V
to e r8
COMMISSION RESOLUTION NO. 4497
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, CREATING THE BOZEMAN BUSINESS ENERGY PROGRAM AND THE
BOZEMAN BUSINESS INCENTIVE FUND FOR BUSINESSES LOCATED IN THE
CITY OF BOZEMAN, COUNTY OF +GALLATIN, STATE OF MONTANA, TO
PROMOTE COST SAVINGS, ENERGY EFFICIENCY AND RENEWABLE ENERGY
IN COMMERCIAL BUILDINGS.
WHEREAS,, the City of Bozeman and its citizens support efforts to strengthen the
economic vitality of Bozeman and the surrounding area; and
WHEREAS, the City of Boze an's Economic Development Plan prioritizes leveraging
local, state and federal economic development resources to enhance economic growth in
Bozeman"; and
WHEREAS, the City of Bozeman's Economic Development Plan calls for utilizing
incentives or inducements to encourage business investment and development in desired areas;
and
WHEREAS, the Bozeman. City Commission identified economic development and
sustainability as high priorities; and
WHEREAS, the Bozeman.. Business Energy Prograrrr represents the nexus between
economic development and sustainability; and
WHEREAS, in November 2006, the Bozeman City Commission signed the Mayor's
Climate Protection Agreement to reduce greenhouse gas emissions; and
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WHEREAS, the Bozeman City Commission has adopted a Municipal Climate Action
Plan and Community Climate Action Plan to guide our greenhouse gas emissions reduction
efforts; and
WHEREAS, the Community Climate Action Plan supports the utilization of
NorthWestern Energy's rebate program; and
WHEREAS, on August 11, 2008, the Bozeman City Commission capitalized $60,000
of the Big Sky Energy Revolving Loan Fund using funds obtained through the City of
Bozeman's Development Impacts Fund (Big Box Fund); and
WHEREAS, on October 20, 2008, the Bozeman City Commission approved a funding
agreement with the Northern Rocky Mountain Resource Conservation & Development Council
to administer the Big Sky Energy Revolving Loan Fund; and
WHEREAS, the Big Sky Energy Revolving Loan Fund has been underutilized with
one loan completed since inception, which has been re-paid in full; and
WHEREAS, the Northern Rocky Mountain Resource Conservation & Development
Council is dissolving and is returning the Big Sky Energy Revolving Loan Fund balance of
56,300 to the City of Bozeman; and
WHEREAS, the Big Sky Energy Revolving Loan Fund will be dissolved and replaced
with the Bozeman Business Incentive fund incentivizing energy efficiency, energy conservation,
and renewable energy and increasing local business competitiveness by reducing energy costs,
and supporting robust infill and redevelopment policies.
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NOW, THEREFORE, BE IT' RESOLVED by the City Commission of the City of
Bozeman, Montana, that:
Section 1
The Big S Energy Revolving Loan Fund (RLF) and the associated program is
hercky dissolved.
Section 2
To satisfy the original intent of the "Big Sky Energy RLF" to help finance energy
efficiency, energy conservation, and renewable energy production among businesses located
within the City of Bozeman, the Bozeman Business Energy Program is hereby established and
the Bozeman Business Incentive Fund is hereby created. The Bozeman Business Energy Program
offers public recognition of energy conservation efforts and educational opportunities. As part of
the Bozeman Business Energy Program, the Bozeman Business Incentive Fund will provide
financial assistance to businesses seeking to complete energy efficiency and renewable energy
projects.
Applicants participating in the Bozeman Business Energy Program will pay a $50 per
year membership fee in support of ongoing programming and marketing of the Program.
Applicants must own or lease a commercial building and complete a NorthWestern Energy
Appraisal or have an energy audit completed by a pre-approved energy auditor. Only projects
recommended in the NorthWestern. Energy appraisal or independent audit will be approved for
funding. Funds are restricted to qualified purchases and services, including: equipment, energy
conservation measures, and installation costs. A one-time incentive in the amount of $500 to
1,500 will be available to businesses or non-profit organizations that own or rent commercial
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buildings in districts zoned for commercial uses. To encourage local investment, all applicants
will be required to contribute 66 percent of the total project cost (2:1 match requirement).
Incentives will be provided to eligible applicants on a first-come, first-served basis
until the Bozeman, Business Incentive Fund is depleted. The Bozeman Business Energy Program
will continue to offer ongoing programming and marketing for member businesses, The
Incentive is a grant, not a loan. There is no obligation to repay the Incentive.
An application form will be developed by the City Manager's Office and the program
marketed to local businesses. The City Manager, or designee, will have authority to approve
incentive applications. The approved expenditures will be included in the Expenditure Approval
List ("EAL") on Consent Agendas of the Bozeman City Commission. Businesses will be
reimbursed after submitting invoices and a statement of completion signed by the applicant and
contractor. Additionally, the City reserves the right to complete a visual inspection of the
finished project.
Businesses are required to adhere to the quote requirements outlined in the
Documentation and Selection of Vendors" section of the City of Bozeman's Purchasing Policy
and projects must be completed by licensed, insured, and bonded contractors.
PASSED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 16th day of December, 2013.
SEAN A. BECKER
Mayorn
ATTEST:
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STACY LKI VI
City Cler
APPROVED AS TO FORM:
d
G G LLIVAN
City Attorney
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