MEMORANDUM
TO: Mayor and Town Council
FROM: Council Committee for Sustainability, Energy, and the Environment (SEE) (Council Members Jim Ward, Bill Strom, and Laurin Easthom)
SUBJECT: Town of Chapel Hill Energy Bank Policies and Procedures Manual
DATE: June 26, 2006
PURPOSE
The purpose of this memorandum is to recommend that the attached Town of Chapel Hill Energy Bank Polices and Procedures Manual be adopted by the Mayor and Town Council.
BACKGROUND
In the November 4, 2003 bond referendum, the citizens of the Town of Chapel Hill voted in favor of a $500,000 (current balance is $475,000) bond for creation of an Energy Bank. The purpose of these bond funds is to acquire, construct, equip and install energy efficient facilities in certain existing public buildings, including, without limitation, the acquisition of lighting, heating, ventilating, air conditioning and related fixtures, machinery and equipment. It is envisioned that the documented savings attributable to projects completed with these funds will be used to reimburse the fund for the cost of the project.
In May of 2005, the Town of Chapel Hill contracted with Brenda Morawa of BVM Engineering for the development of the draft Energy Bank concept. In her report to the Town Council on June 27, 2005, Ms. Morawa discussed the technical aspects of identifying candidate energy efficiency projects and monitoring the performance of completed projects. She also discussed various models for the administration of the Energy Bank.
Following the work done by the consultant, staff members of the Planning, Public Works and Finance Departments developed a draft Energy Bank Polices and Procedures Manual for the administration of the Energy Bank Program.
DISCUSSION
On June 12, 2006, the Council Committee on Sustainability, Energy and Environment (SEE) reviewed the draft Energy Bank Policies and Procedures Manual. The SEE Committee recommended the following changes to the draft policy:
a. The draft policy establishes an “Energy Bank Management Committee” comprised of the Public Works Director, the Planning Director and the Finance Director to administer the Energy Bank Program. We asked that language be added to acknowledge that these three department heads will be assisted by appropriate staff members in the administration of the Energy Bank.
b. We asked that the section on the “Project Review and Approval Process” be amended to include a provision for a quarterly report to the SEE Committee on all approved Energy Bank projects and reporting to the Council concerning those projects approved by the Manager costing between $50,000 and $100,000.
c. Under the paragraph on “Monitoring Performance of Energy Bank Projects,” we asked that a measure of the carbon emissions reduction benefit attributable to each project be included in the five successive quarterly reports from the Public Works Director.
Adoption of the attached resolution would place into effect the Town of Chapel Hill Energy Bank Policies and Procedures Manual.
RECOMMENDATION
We recommend that the Town Council adopt the attached Town of Chapel Hill Energy Bank Policies and Procedures Manual.
ATTACHMENT
1. Town of Chapel Hill Energy Bank Policies and Procedures Manual (p. 3).