HomeMy WebLinkAboutR19-001 Draw Down of the Energy Smart Colorado Revolving Loan Fund Commissioner D al.Kanoved adoption
of the following Resolution:
BOARD OF COUNTY COMMISSIONERS
COUNTY OF EAGLE,STATE OF COLORADO
RESOLUTION NO. 2019- C t
RESOLUTION APPROVING A DRAW DOWN OF THE ENERGY SMART
COLORADO REVOLVING LOAN FUND
WHEREAS,Eagle County,Pitkin County and Gunnison County(collectively referred to
as the "Counties") were awarded an Energy Efficiency and Conservation Block Grant, also
known as a Better Buildings Grant, funded by the United States Department of Energy("DOE")
through the American Recovery and Reinvestment Act of 2009 in June 2010 (the "Grant") with
Eagle County designated at the lead agency; and
WHEREAS, the DOE awarded the Grant to enable the Counties to improve energy
efficiency in approximately 5200 homes in the Counties by utilizing energy audits, resource
centers, innovative financing options and workforce training; and
WHEREAS, to fulfill part of the Grant purpose, the Counties established a Revolving
Loan Fund to facilitate energy efficiency residential construction projects within the Counties to
make borrowers' homes more energy efficient and the Revolving Loan Fund ("RLF") was
capitalized with$985,000 of the Grant funds; and
WHEREAS, the RLF is managed by EnergySmart Partners LLC, a wholly owned
subsidiary of Funding Partners for Housing Solutions, Inc., a non-profit organization certified by
the United States Department of the Treasury as a community development financial institution
("ESP"); and
WHEREAS, ESP assigned—an assignment to which the County consented—the RLF
service agreement to Impact Development Fund("IDF")on December 5,2018; and
WHEREAS, the Counties have also worked with various nonprofits within their
jurisdiction to assist with the implementation of the Grant efforts in their counties; and
WHEREAS, to create a unified effort, the various nonprofits established Energy Smart
Colorado, Inc., a Colorado non-profit corporation ("Energy Smart Colorado") to more efficiently
implement the Grant efforts in the Counties;and
WHEREAS, Energy Smart Colorado requested a drawdown of the funds in the RLF
from the DOE, see Exhibit A, and DOE approved such drawdown of$250,000, see Exhibit B;
and
WHEREAS, Energy Smart Colorado will use the drawdown to enhance the services
provided to its member communities, including support for residential and commercial energy
advising, low cost assessments, audits and walk-thrus, as well as direct installs, retrofits and
rebates. Training will be provided for new member communities on the database which provides
tracking and reporting functionality on energy savings, economic development and increased
energy efficiency. Funding will support the development of a new website for Energy Smart
Colorado, as well as enhanced marketing templates. In addition, assistance with BPI training and
certifications for analysts,public education programs,training and workshops will be provided in
partner communities; and
WHEREAS, the number of Colorado residents (not including Eagle County) who have
received services through the Energy Smart Colorado program has increased from 3,981 in
December 2017 to 4,606 in September 2018;
WHEREAS, the number of Eagle County residents who have received services through
the Energy Smart Colorado program has increased from 1,427 in December 2017 to 1,539 in
September 2018; and
WHEREAS, Energy Smart Colorado is moving consistently toward a sustainable
funding model with an increasing portion of the budget coming from fee-for-service
arrangements;and
WHEREAS, Energy Smart Colorado has developed operating budgets for years 2019
and 2020; and
WHEREAS, Energy Smart Colorado presented a drawdown request from the RLF to the
Eagle County Board of County Commissioners (the "Board") on October 9, 2018 which is
attached hereto as Exhibit C; and
WHEREAS, Energy Smart Colorado's drawdown request seeks $250,000 for the 2019-
2020 operating budget,see Exhibit D;and
WHEREAS,the Board supports the mission of the Grant and the objectives identified by
Energy Smart Colorado and therefore desires to approve the drawdown request at this time of
$250,000.
NOW,THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF THE COUNTY OF EAGLE, STATE OF COLORADO:
THAT, a drawdown of the RLF as set forth herein is hereby approved upon the condition
that(a) Energy Smart Colorado shall be solely responsible for accounting, tracking and ensuring
that the funds withdrawn from the RLF are used for approved eligible activities in accordance
with its drawdown request and accounted for as required by DOE, the Grant, the Transition
Agreement, and state and federal law and regulations including ARRA; (b) Energy Smart
Colorado shall provide monthly reports to Eagle County documenting how the funds withdrawn
from the RLF have been spent; (c) Energy Smart Colorado shall provide required reporting
information to Eagle County for submission to DOE; and (d) if all or a portion of the funds are
not used by Energy Smart Colorado for an eligible purpose, then Energy Smart Colorado shall
immediately return such funds to the federal government; and
THAT, the Board hereby approves a partial draw down of the RLF in the amount of two
hundred fifty thousand dollars ($250,000) to be used solely for eligible expenses and for the
purposes authorized by DOE as set forth on Exhibit B; and
THAT, the Board hereby authorizes any commissioner to execute drawdown request
number 3 and submit the same to IDF in the form attached hereto as Exhibit E; and
THAT, the Board hereby finds, determines and declares that this Resolution is necessary
for the public health, safety and welfare of the residents of the County of Eagle, State of
Colorado.
MOVED, READ AND ADOPTED by the Board of County Commissioners of the
County of Eagle, State of Colorado, at its regular meeting held this" . n day of VO I a ,
2019.
COUNTY OF EAGLE, STATE OF
COLORADO,By and Through Its
4tAGLE BOARD OF COUNTY COMMISSIONERS
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Clerk to the Board of nne McQueeney
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Jillian .Ryan
Co s -iissio'er ,
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Kathy C►. dler-Henry
Commissioner
Commissioner IMC-QVILu-4-Iii. seconded adoption of the foregoing resolution. The roll
having been called,the vote was as follows:
Commissioner McQueeney "
Commissioner Ryan
Commissioner Chandler-Henry �,• `
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This resolution passed by vote of the Board of County Commissioners of the
County of Eagle,State of Colorado.
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COLORADO MAKING ENERGY IMPROVEMENTS SIMPLE & AFFORDABLE
July 2018
Ms. Lauren Hall
Weatherization and Intergovernmental Programs
Energy Efficiency and Renewable Energy
U.S. Department of Energy
Lauren.hall@ee.doe.gov
Re: Request to Repurpose Federal EECBG Financing Program Funds: Eagle County,CO(EE0003798)
Dear Ms. Hall:
In 2010,the U.S. Department of Energy(DOE)awarded Eagle County a$4.9 million grant through the
Better Buildings Program.The grant funds were shared by Eagle,Pitkin and Gunnison Counties and
spurred energy efficiency in the residential sector,work force development and created a Revolving
Loan Fund.All of the funds but the Revolving Loan Fund were expended by September 2013.
In July 2015, Eagle County transitioned the operation of the Energy Smart Program to the nonprofit
entity, Energy Smart Colorado. In February 2016, Energy Smart Colorado received DOE approval to re-
purpose$500,000 from the RLF to fund eligible activities that further Energy Smart Colorado objectives.
With several comparable EE and RE financing options now available to residents including loans from
local banks and utility providers,as well as the Colorado Residential Energy Upgrade(RENU)loan
program which was established by Colorado Energy Office last year,we are seeing new loans fulfilled
through other providers.While our RLF completed an average of 10 loans per year up until 2016,only
four loans were established in 2017 and none have originated thus far in 2018.
As a result,approximately$300,000 of the program's RLF balance is sitting idle.We feel that these funds
can be better utilized to support Energy Smart Colorado's programming throughout the state of
Colorado while also continuing to offer energy improvement financing options for program participants.
Energy Smart Colorado is requesting approval to repurpose$250,000 of these remaining RLF funds to
provide funding for Energy Smart programs in Colorado.This funding will be allocated to furthering
Energy Smart Colorado's platform of services,as outlined below.
Background
Over the past eight years, Energy Smart Colorado's partners have
• Completed over 6,500 home and commercial energy assessments and made more than 4,000
home energy improvements
• Invested over$42 Million in energy efficiency projects in Colorado communities for an annual
energy savings of 169,000 mmBtu or$2.7 Million
• Identified a savings equivalent to eliminating the CO2 emissions from over 5,300 cars annually
Through the energy savings demonstrated by the platform Energy Smart Colorado provides, ESC's
partners have leveraged additional funding support from local government agencies and local
businesses to further the dollars dedicated to energy efficiency programs throughout Colorado.
The platform of services through Energy Smart Colorado now includes residential and commercial
energy advising, low cost assessments,audits and walk-thrus,as well as direct installs,retrofits and
rebates.A robust Salesforce database provides tracking and reporting functionality on energy savings,
economic development and increased energy efficiency. In addition,assistance with BPI training and
certifications for analysts, marketing templates,public education programs,training and workshops are
provided in partner communities.
Eight community partners throughout the Western Slope of Colorado now provide Energy Smart
Colorado services. In conjunction with our regional nonprofit and government agencies,we're
partnering with 12 gas and electric utilities and cooperatives. In addition, Energy Smart Colorado works
with multiple analysts throughout the state of Colorado to provide evaluations in contract with local
utility partners.As a result, Energy Smart Colorado's program territory has grown significantly and
Energy Smart Colorado is now touching residents in more than 30 counties throughout Colorado.
The reallocated use of these funds requested is based on EECBG Program Notice 10-021 under the
Category(3)Residential and Commercial Building Audits.Specifically,the funds will support the
centralized services provided to existing and new partners,will improve the program platform,enable
additional workforce development,while also improving data tracking and management,and enhanced
training for new and existing partners.
Energy Smart Colorado will not use any fundS re-purposed from this grant to seek funding from
foundations,solicit gifts or any other related activity. No more than 10 percent of the funding request
will be used for administrative costs that include bookkeeping services,filing the annual 990 for Energy
Smart Colorado and purchasing liability insurance.Annual fees of$1,000 per partner from a minimum of
eight partners are also allocated to support the organization's administrative expenses.
Funding Partners will continue to hold the Revolving Loan Funds and Eagle County will continue to
oversee and report all funds associated with the RLF. Eagle County will review and approve any
requests as outlined in the Transition Agreement(attached). In making this request, Energy Smart
Colorado commits to continuing to comply with ARRA and Davis Bacon requirements as well as all
EECBG reporting requirements previously committed to with Eagle County.
A complete accounting of all funds up to planned repurposing start date:
Total Original Value of Financing Program $975,000.00
Dollar Value of Loans Given $667,489.64
Dollar Value of Loans Repaid(as of June 30,2018) $463,423.20
Interest Earned(as of June 30,2018) $ 35,750.05
Administrative Costs(as of]une3O'JO1A) $ 26,147.66
Dollar Value of Repurposing Request $250,000.00
%of the Total Program
The anticipated start date is October 2018,with funding expected to support Energy Smart Colorado
programs through December 2020.
Thank you for considering this request. Please advise us if you would like additional information.
Mona Newton
President, Board of Directors
Energy Smart Colorado
mona@»enernvsmartco|orado.com
970.925.9775 ext 500
From: "Rittgers,Andrew"<Andrew.Rittgers a(7ee.doe.gov>
Date:August 24,2018 at 12:36:11 PM MDT
To: "kasey anenergysmartcolorado.com"<kasevta.eneraysmartcolorado.com>
Cc: "Hall, Lauren"<Lauren.Hall& ee.doe.gov>,"Carlisle,James"<James.Carlisle(&.EE.Doe.Gov>, EECBG
<EECBGeee.doe.gov>
Subject: DOE Approval: Request to Repurpose Federal EECBG Financing Program Funds: Energy
Smart Colorado-DE-EE00003798
Hello Ms. Provorse,
•
DOE has reviewed Energy Smart Colorado's request to repurpose$250,000 in revolving loan funds(RLF)
from your ARRA EECBG financing program to other eligible EECBG activities as outlined in your
original July 31,2018 request and supplemental information.
You are hereby approved to repurpose$250,000 in repayments and interest from this program to provide
funding for revised Energy Smart Programs in Colorado as proposed.Please be aware that Energy Smart
Colorado will continue to be responsible for reporting on the RLF until the RLF is fully closed,i.e.all
loans closed and RLF funds depleted.
If you later desire to repurpose the subject EECBG funds to other activities beyond those outlined in your
request,please keep in mind that DOE prior approval is required.All regulatory,statutory and program
rules remain in full effect.
Thank you for your continued efforts to advance your energy efficiency and renewable energy goals.
Andrew Rittgers
Team Lead/Contracting Officer
Financial Assistance Office-Weatherization Assistance Program
Golden Field Office
U.S. Department of Energy
(240)562-1274 Direct
andrew.rittgers(a)ee.doe.eov
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COLORADO MAKING ENERGY IMPROVEMENTS SIMPLE & AFFORDABLE
September 26, 2018
Dear Eagle Board of County Commissioners,
On behalf of the Board of Directors of Energy Smart Colorado(ESC),I am writing to request your approval to
access a portion of the available funds held in the Revolving Loan Fund(RLF)that was established as part of the
Better Buildings Grant awarded to Eagle County in 2010.The$4.9 million grant awarded to Eagle County(as lead
recipient)included the allocation of$985,000 to establish the RLF.
In February 2016,Energy Smart Colorado received DOE approval to re-purpose$500,000 from the RLF to fund
eligible activities that further Energy Smart Colorado objectives.That approval was in turn authorized by the
Eagle County Board of County Commissioners in July 2016.This funding provided has enabled ESC to continue to
provide providing centralized services and support to the existing Energy Smart partners and to expand the
program to include additional non-profit organizations and counties in western Colorado communities.
With several comparable EE and RE financing options now available to residents including loans from local banks
and utility providers,as well as the Colorado Residential Energy Upgrade(RENU) loan program,which was
established by Colorado Energy Office last year,we are seeing new loans fulfilled through other providers.While
our RLF completed an average of 10 loans per year up until 2016,only four loans were established in 2017 and
none have originated thus far in 2018.
As of August 31,2018,the balance in the RLF was approximately$508,000,with just under$185,000 currently
allocated in loans.As a result,approximately$323,000 of the program's RLF balance is sitting idle.We feel that
these funds can be better utilized to support Energy Smart Colorado's programming throughout the state of
Colorado while also continuing to offer energy improvement financing options for program participants.
In July 2018, Energy Smart Colorado submitted a request to the U.S.Department of Energy(DOE) proposing to
re-purpose$250,000 from the Revolving Loan Fund to support the continuation of central operations for Energy
Smart Colorado(see Exhibit B).The DOE approved this request to draw down a portion of the Loan Fund in
August 2018(see Exhibit C). In order to access those funds,as per the Transition Agreement,Article 2,Access To
Ongoing Operation of the Revolving Loan Fund,ii., ESC shall submit a request to the Eagle County Board of
County Commissioners requesting approval to proceed and request a drawdown from Funding Partners.
Please accept this notification of that request.The$250,000 requested from the Revolving Loan Fund will be
allocated to furthering Energy Smart Colorado's platform of services,as outlined below.
Over the past eight years, Energy Smart Colorado's partners have
• Completed over 6,500 home and commercial energy assessments and made more than 4,000 home
energy improvements
• Invested over$42 Million in energy efficiency projects in Colorado communities for an annual energy
savings of 169,000 mmBtu or$2.7 Million
• Identified a savings equivalent to eliminating the CO2 emissions from over 5,300 cars annually
Through the energy savings demonstrated by the platform Energy Smart Colorado provides, ESC's partners
have leveraged additional funding support from local government agencies and local businesses to further
the dollars dedicated to energy efficiency programs throughout Colorado.
Energy Smart Colorado's services now include residential and commercial energy advising, low cost
assessments,audits and walk-thrus,as well as direct installs, retrofits and rebates.A robust Salesforce
database provides tracking and reporting functionality on energy savings,economic development and
increased energy efficiency. In addition,assistance with BPI training and certifications for analysts,
marketing templates,public education programs,training and workshops are provided in partner
communities.
Eight community partners throughout the Western Slope of Colorado now provide Energy Smart Colorado
services. In conjunction with our regional nonprofit and government agencies,we're partnering with 12 gas
and electric utilities and cooperatives. In addition, Energy Smart Colorado works with multiple analysts
throughout the state of Colorado to provide evaluations in contract with local utility partners.As a result,
Energy Smart Colorado's program territory has grown significantly and Energy Smart Colorado is now
touching residents in more than 30 counties throughout Colorado.
Please accept the following documents in support of this request to allocate$250,000 from the RLF to Energy
Smart Colorado:
• Exhibit B—July 31,2018 repurpose request submitted to DOE
• Exhibit C—August 23,2018 approval from DOE of repurpose request
• Exhibit D—Energy Smart Colorado 2018-2020 budget forecast
• Exhibit E—August 2018 FirstBank statement indicating a balance of$323,146 in idle funds
• Exhibit F—August 2018 statement from Funding Partners indicating$184,795 in current loans
We greatly appreciate your consideration of this request and look forward to discussing the program's current
accomplishments and organization's direction with you on October 9th.Please find a preview of our
presentation here.
Your support of Energy Smart Colorado is invaluable to our success.
With appreciation,
Mona Newton
President,Board of Directors
Exhibit D-Energy Smart Colorado's 2018- 2020 budget forecast
2018 Forecast 2019 Projected 2020 Projected
Income
RLF Funds approved May 2018 $ 105,000.00 $ 67,871.80
DOE repurpose requested amount $ 100,000.00 $ 150,000.00
Donations includes reimbursed items $ 6,550.00 $ 6,000.00 $ 10,000.00
Partnerships $ 8,000.00 $ 10,000.00 $ 12,000.00
Contracts Atmos/Black Hills Energy $ 113,240.00 $ 100,000.00 $ 100,000.00
Admin for Atmos/BHE $ 49,425.00 $ 40,000.00 $ 40,000.00
CEO workforce development $ 25,000.00 $ 15,000.00
fTOTALINCOME I . : I$ 282,215.00:]$ 348,871',80 $ 327,000 00
Expenses
Staff/Consultants Analysts $ 113,240.00 $ 100,000.00 $ 100,000.00
Payroll $ 74,150.00 $ 80,000.00 $ 85,000.00
Support Staff $ 24,300.00 $ 22,000.00 $ 26,000.00
Payroll Expenses $ 9,500.00 $ 10,810.00 $ 11,250.00
I$ 221,190:M1-$ 212,810.001.$ 222,250.00
ADMINISTRATION
Accounting/Legal Expenses $ 9,650.00 $ 11,000.00 $ 12,000.00
Conference Line/Phone $ 1,400.00 $ 1,600.00 $ 1,750.00
Fees and Dues $ 425.00 $ 425.00 $ 500.00
Insurance $ 2,400.00 $ 2,400.00 $ 2,500.00
Office Expense/Postage $ 300.00 $ 350.00 $ 400.00
Office Rent $ 1,050.00 $ - $ -
Software Fees $ 14,000.00 $ 12,500.00 $ 13,000.00
Technology $ 1,275.00 $ - $ 1,500.00
Travel and Meals $ 3,750.00 $ 4,000.00 $ 4,500.00
1$ 34,250.00.I $ 32,275,00 1$ 36,150.00
OUTREACH
Conferences/Events $ 5,585.00 $ 7,000.00 $ 7,500.00
Collateral and Publications $ 330.00 $ 500.00 $ 750.00
Program Marketing $ 2,000.00 $ 1,500.00 $ 2,000.00
Website $ 2,000.00 $ 2,500.00 $ 750.00
Workforce Training $ 825.00 $ 25,000.00 $ 15,000.00
$ 10,740.00[$ 35,500401 $ ".203.00
OTHER
Grant Expense $ 24,115.00 $ - $ -
TOTAL EXPENSE yu $ 290,295.00: $ 281,585.00 $: 284,400,00
s.. «„d ...,r4F,�Y# � o,„ f '�'n'7! r''; � �u *.,,," � nyrmMk +1J�j� 3,
Deferred Revenue $ 67,871.80
release from 2019 RLF? $ 8,080.00
BALANCE $ 59,791.80
EXHIBIT E
NOTICE OF DRAW DOWN
TO: Impact Development Fund("IDF)
Attn:Megan Ferguson
330 S.College Avenue #400
Fort Collins,CO 80524
Notice is hereby given that the existing balance of Revolving Loan Fund("RLF")established by
Agreement between the County of Eagle, State of Colorado and EnergySmart Partners LLC dated June
11,2012 and amendments thereto,which was assigned to IDF on December 5,2018,is to be reduced as
set forth herein.
Please draw down the existing and available balance in the RLF in the amount of two hundred fifty
thousand dollars($250,000)and wire the funds to:
Energy Smart Colorado,Inc.
Attn:Mona Newton,President
520 South Third Street, Suite 7
Carbondale,CO 81623
Wire Instructions are as follows:
Energy Smart Colorado,Inc.
Account#2040401974
Routing# 102102013
Address: Community Banks of Colorado,210 N. Mill St.,Aspen,CO 81611
Please provide proof of such wire to:
Adam Palmer
Sustainable Communities Director
Eagle County Government
Post Office Box 850
Eagle,CO 81631
Eagle County,Colorado
By:
Title:
Dated:
cc: Department of Energy,Attn:Andrew Ringers;Lauren Hall
Energy Smart Colorado,Inc.,Attn: Mona Newton