Non-Profit and Commercial Energy Efficiency Revolving Loan FundMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Non - Profit & Commercial Energy Efficiency Revolving Loan Fund
DATE: April 29, 2011
Dubuque
Al- AnedcaCND
11 111!
2007
The City has identified $200,000 in Energy Efficiency & Conservation Block Grant
(EECBG) formula funds to provide microloans up to $10,000 to non - profits and
commercial businesses located in Dubuque to complete energy efficiency retrofits.
Dubuque non - profits and commercial businesses would be eligible for a low- interest
loan up to $10,000 to complete energy- efficient improvements including electrical
system improvements, lighting and energy management systems, mechanical system
improvements including HVAC and hot water, information technology energy efficiency
upgrades, and funds to cover a 2% administrative fee for preparation of the loan
documents. The loan term would be determined based on projected utility savings and
Return on Investment with a maximum five year term.
Sustainability Coordinator Cori Burbach recommends City Council approval of an
Agreement with East Central Intergovernmental Association Business Growth to
administer the City's non - profit and commercial energy efficiency revolving loan fund
program, as allocated through the ARRA (Stimulus Package) Energy Efficiency &
Conservation Block Grant.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Cori Burbach, Sustainability Coordinator
Michael C. Van Milligen
Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: Cori Burbach, Sustainability Coordinator
SUBJECT: Non - profit & Commercial Energy Efficiency Revolving Loan Fund
DATE: April 27, 2011
Dubuque
AN- America City
2007
INTRODUCTION
This memo is to request City Council approval of the attached agreement with ECIA
Business Growth Inc. to administer the City's non - profit and commercial energy
efficiency revolving loan fund program as allocated through the ARRA (Stimulus
Package) Energy Efficiency & Conservation Block Grant (EECBG).
BACKGROUND
The City has identified $200,000 in EECBG formula funds to provide microloans up to
$10,000 to non - profits and commercial businesses located in Dubuque to complete
energy efficiency retrofits.
City staff have held several meetings with ECIA and Greater Dubuque Development
Corporation staff to determine how this money can best be spent to leverage existing
work being led by the private sector, including the Sustainability Innovation Consortium
and the Petal Project green business certification program.
DISCUSSION
Dubuque non - profits and commercial businesses would be eligible for a low- interest
loan up to $10,000 to complete energy- efficient improvements including electrical
system improvements, lighting and energy management systems, mechanical system
improvements including HVAC and hot water, information technology energy efficiency
upgrades, and funds to cover a 2% administrative fee for preparation of the loan
documents. The loan term would be determined based on projected utility savings and
Return on Investment with a maximum five year term.
The attached application was modeled after other successful revolving loan funds
financed with ARRA money. ECIA Business Growth will administer all aspects of the
program as they already have a loan processing system in place for many other
programs they administer. The City Sustainability Office will partner with ECIA and
GDDC to make information on this program available to local businesses and will
provide updates on the program's impact to the City Council on a regular basis.
REQUESTED ACTION
Staff respectfully request approval off the attached contract with ECIA Business Growth
Inc.to administer the Non - profit and Commercial Energy Efficiency Revolving Loan
Fund.
cc: Cindy Steinhauser, Assistant City Manager
David Lyons, Smarter Sustainable Dubuque Project Manager
Jennifer Larson, Budget Director
Ken TeKippe, Finance Director
Kelley Deutmeyer, Executive Director, ECIA
Jerry Schroeder, Economic Development Director, ECIA
Candace Eudaley, Assistant Executive Director, ECIA
AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
E.C.I.A. BUSINESS GROWTH, Inc.
This Agreement, dated for reference purposes the/day of y , 2011, is
made and entered into by and between the City of Dubuque, Iowa end E.C.I.A.
Business Growth, Inc.
Whereas, the City of Dubuque (City) has identified $200,000 to establish a
revolving loan fund for non - profits and commercial businesses in order to complete
energy efficiency retrofits; and
Whereas, E.C.I.A. Business Growth, Inc. has several established loan funds in
place and is able and willing to administer the Energy Efficiency Revolving Loan Fund
as part of the package of services that they provide Dubuque businesses and non-
profits; and
Whereas, the funds the City received to establish the revolving loan fund are
from the American Recovery & Reinvestment Act (Stimulus Package) and must
continue to be used for a non - profit and business energy efficiency revolving loan fund
in perpetuity,
NOW, THEREFORE, IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
SECTION 1. SERVICES PROVIDED BY E.C.I.A. BUSINESS GROWTH. E.C.I.A.
Business Growth agrees to provide to City the following:
1. Providing applications for the energy efficiency revolving loan fund accessible
to all Dubuque non - profits and businesses.
2. Participating, along with City staff, in a monthly review process to determine
the eligibility of applicants and awarding of loans.
3. Processing the applications submitted and completing all necessary internal
paperwork and contracts with loan recipients in order to administer the
revolving loan fund.
4. Collecting documentation of energy savings and providing that information to
the City Office of Sustainability.
SECTION 2. SERVICES PROVIDED BY THE CITY. The City agrees to provide to
E.C.I.A. Business Growth the following:
1. Periodic information regarding any new requirements associated with this
funding, as its original source is the American Recovery & Reinvestment Act.
2. Participating in a monthly review process to determine the eligibility of
applicants and awarding of loans.
3. Confirmation that any applicants have all property taxes, assessments of
fees, and utility obligations to the City paid in full to date and that there is no
pending litigation against the City by the applicant.
4. Assistance in publicizing the availability of these loans.
SECTION 3. TERM. The term of this Agreement shall commence on the day of
, 2011 and shall continue until terminated as provided herein. Either party
may terminate this Agreement for any reason upon thirty days written notice to the other
party.
SECTION 4. NOTICES. Any notice required by this Agreement shall be provided to
the parties at the following addressed:
CITY: City of Dubuque, Iowa
c/o City Manager
City Hall
50 W 13 St
Dubuque, IA 52001
ECIA: E.C.I.A Business Growth, Inc.
c/o Secretary
7600 Commerce Park
Dubuque, IA 52002
CITY OF DUBUQUE, IOWA E.C.I.A. BUSINESS GROWTH, Inc.
Michael C. Van Milligen, City Manager David Gaylor, Chair
2
Kelley Deutmeyer, Secretary
Masterpiece on the Mississippi
Eligibility Requirements
Energy Efficiency Revolving Loan Fund
Information, Guidelines and Application
Purpose
From funds secured from the U.S. Department of Energy (DOE) allocated under the American Recovery and
Reinvestment Act (ARRA), ECIA Business Growth, Inc. and Sustainable Dubuque have partnered to create an
Energy Efficiency Loan Fund (EELF) with the intent to solicit loan applications from businesses working to
implement innovative energy efficiency projects. The purpose of the EELF is to save energy and reduce
greenhouse gas emissions.
a) Any non -profit operation (501 c3 status required), business owner or tenant of commercial property
physically located in the City of Dubuque. Loans must be used to fully or partially finance energy
efficiency projects within buildings operated by the applicant.
b) All applicants must apply for commercial energy efficiency rebates and /or incentives through their utility
provider in conjunction with this loan program.
c) Applicants must have all real and personal property taxes, income taxes, assessments or fees, and utility
obligations to the City be paid in full to date. The applicant must complete a City of Dubuque
Information Request Form stating that the applicant is not delinquent on any debts owed to the City of
Dubuque.
d) There must not be any pending litigation against the City by the applicant.
e) Applicants must be willing to sign a promissory note and personal guaranty.
Loan Administration and Reporting
For purposes of loan administration and reporting, ECIA Business Growth is the point of contact. Additional
information on reporting can be found on page 3.
Wage
Jerry Schroeder
ECIA Business Growth
7600 Commerce Park
Dubuque, Iowa 52002
Phone: 563- 690 -5720 - e -mail: jschroeder@ecia.org
Energy Efficiency
Revolving Loan Fund
Allowed Use of Funds
a) Electrical systems and components including lighting and energy management systems.
b) Mechanical systems and components including HVAC and hot water.
c) Information technology energy efficiency upgrades.
d) 2% administrative fee for preparation of loan documents and loan closing.
Prohibited Use of Funds
a) The costs of construction or renovation project that is not related to energy efficiency measures.
b) Costs incurred for the acquisition of financing for the project.
c) Costs of equipment or systems that reduce energy costs without also resulting in reductions in the use of
energy.
d) In cases for which the applicant receives a financial incentive or rebate from a utility or other third party
for undertaking some or all of the measures in an energy efficiency project, such incentives or rebates
are to be deducted from the costs that are eligible for financing from the EELF. No loans made from the
EELF may exceed the final costs incurred by for the project.
Loan Funds, Terms and Disbursement
a) A total of $200,000 is expected to be available to support up to twenty energy efficiency projects with a
maximum loan amount of $10,000.
b) The interest rate charged will be 1 %.
c) The loan term will be determined based on projected utility savings and Return on Investment with a
maximum five year term. ECIA Business Growth reserves the right to consider length of loan on a case -
by -case basis.
e) Loan recipients will be responsible for payment of the ECIA Business Growth 2% administrative fee
associated with the preparation of loan documents and loan closing.
f) 100% of approved loan funds will be disbursed at completion of project and receipt of contractor invoice.
g) ECIA Business Growth is a financial lender that expects all loan recipients to make prompt and on -time
payments. The failure to do so will result in proceeding with loan default procedures.
Loan Security
To protect the interests of the EELF so that loans can continue to revolve, ECIA Business Growth expects each
loan to carry a 100% personal guaranty.
Loan Committee
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The EELF Committee has been established to review and approve loan applicants. Committee members are
comprised of persons represented from the following agencies:
City of Dubuque, ECIA Business Growth, and at least one unbiased engineering expert.
Selection Criteria
All applications received shall be subject to an evaluation by the EELF Committee. The evaluation will be
conducted in a manner appropriate to select applicants for the purpose of receiving a low- interest loan to
perform the proposed project within the established timeline. Evaluation of the applications will be conducted to
insure applicants and projects meet all eligibility requirements.
Projects failing to meet the eligibility requirements described on page one will be rejected automatically.
Projects meeting the eligibility requirements will be evaluated according project feasibility, project costs and
return on investment, and degree of innovation. Special consideration will be given to Petal Project and/or
Sustainability Innovation Consortium members.
Application Deadlines, Approval Process and Loan Closing Timelines
Applications will be evaluated on a first come, first serve basis. Interested applicants should deliver fully
completed applications to ECIA Business Growth by 5:00 p.m. on the first Tuesday of each month. The EELF
Committee will review all applications on the following Tuesday. Applications must be submitted as complete
documents. Additional information pertaining to an application received after the due date may delay
application review until the following month. Approved applicants will be notified immediately thereafter.
Project must be completed within and contractor invoice received within 90 days of loan approval. A loan
closing date will be following project completion. All loan applications, supporting documents and required
reports are to be delivered to:
Reporting Requirements
No more than one year from project completion, the borrower shall provide a report which includes the
following:
31 Page
Jerry Schroeder
ECIA Business Growth
7600 Commerce Park
Dubuque, Iowa 52002
Phone: 563- 690 -5720 - e -mail: jschroeder @ecia.org
a. A description of any notable changes to the building or to its operations that would cause a
significant change in its energy consumption.
b. Documentation of energy savings resulting from the project.
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Energy Efficiency Loan Fund Application and Required Documentation
1. Complete the Energy Efficiency Loan Application (Attachment 1).
2. Complete the City of Dubuque Information Request Form (Attachment 2).
3. Permission letter signed by building owner if applicant is a tenant (Attachment 3).
4. A signed Affidavit stating applicant has no pending litigation against the City of Dubuque (Attachment
4).
5. Provide a complete personal history statement.
6. Provide a detailed project description to include the following:
• No more than one page history of the business or non - profit.
• A description and use of the building where the project will be taking place including the age of
the building and description of existing construction materials. Include a photo if available.
• Provide a project timeline schedule from start to finish.
• Provide calculations of the amount of direct energy savings (in Kilowatt hours), any other
associated cost savings and overall costs and anticipated return on investment. Sample is
provided. (Attachment 5)
• Provide projected greenhouse gas emissions saving per year (if applicable). Sample is provided.
(Attachment 5)
• Proof of acceptance into a utility provider energy efficiency rebate /incentive program (if
applicable).
7. Provide the following financial information:
• Personal financial statement
• Current business financial statement (past 90 days)
• Business income tax statements for the previous two years
8. Provide a detailed itemized budget in a spreadsheet format as shown on the following page. Use as many
line item categories as possible. Sample is provided. (Attachment 6)
Business Contact Information
Business Name
Business Owner Name
Phone#
ECIA Business Growth Energy Efficiency Loan Application
(Attachment 1)
Fax#
Mailing Address
City State Zip Code
Alternate /Project Contact Name Title
Phone# Fax# E -mail Address
Energy Contact /Contractor Information
Business Name
Contact Name
Phone# Fax#
Mailing Address
City State Zip Code
Total Loan Amount Requested / Estimated Annual Savings = Simple Payback
/ =
Agency Certification
I do hereby certify that I am duly authorized to submit this loan application to ECIA Business Growth and that
the information presented is true, correct and accurate to the best of my knowledge. I further certify that there is
no pending litigation against the City of Dubuque.
Name of Person Certifying
Mail or deliver application materials to:
51 Page
Title
Title of Person Certifying Date
Jerry Schroeder
ECIA Business Growth
7600 Commerce Park
Dubuque, Iowa 52002
Federal ID#
Title
E -mail Address
E -mail Address
City of Dubuque Information Request
(Attachment 2)
Business Owner /Corporate President /Company Director/Etc.
Name:
Home Address:
Daytime Phone #:
Social Security #:
Drivers License #:
Date of Birth:
Business Data
Corporate Name:
Doing Business As:
Address:
Business Phone #:
Federal Employer Identification #:
Contact person other than owner:
Do you, or any of these businesses, owe the City money for any reason? Yes No
If yes, for what reason?
Name of any other Dubuque area business in which your ownership participation exceeds 25 %:
Email or fax this form immediately to:
61 Page
Ken TeKippe, Finance Director
City of Dubuque
Email: ktekippe @cityofdubuque.org Fax: 563- 690 -6689
Date
ECIA Business Growth
7600 Commerce Park
Dubuque, Iowa 52002
RE: Application for Energy Efficiency Loan Fund
I hereby grant my permission for (Loan Applicant Name) to complete their proposed energy efficient project
according to the application for the Energy Efficiency Loan Fund. I also certify that I am the legal owner of
record and that I have the authority to grant this permission to (Loan Applicant Name).
Sincerely,
Signature
Type Name Here
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Sample Letter of Permission
(Attachment 3)
(Property owner must create this letter)
We the undersigned, hereby state there is no pending litigation against the City of Dubuque by me, my business
or any other instance in which I am directly involved.
If an Energy Efficiency Loan is approved, activities as proposed shall be completed as outlined in the
application.
WITNESS
81 Page
Affidavit
(Attachment 4)
Signature of Applicant
Address
Date
Energy Conservation Project *:
Proposed Energy Efficiency: %
Estimated Annual Energy Savings: KWH
Estimated Annual Greenhouse Gas Emissions Reductions:
Carbon Dioxide (CO2): (lbs /tons)
Nitrous Oxides (NOx): (lbs /tons)
Methane (CH4): (lbs /tons)
Suffer Dioxide (S02): (lbs /tons)
Other: (lbs /tons)
91 Page
Breakdown of Energy Savings and Environmental Effects
(Attachment 5)
Line Item Categories
Funds Provided by
Applicant (not required)
EELF
Amount
Funds Loaned by Other
Lenders (not required)
TOTALS
LED Lighting
$500
$2,000
$2,500
$5,000
Geothermal HVAC
$2,500
$10,000
$12,500
$25,000
Engineering/Design
$300
$1,200
$1,500
$3,000
TOTALS
$6,300
$25,200
$31 „500
$63,000
Sample Budget
(Attachment 6)
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