Department of Energy Data Access GrantMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Department of Energy Data Access Grant
DATE: December 11, 2012
Dubuque
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All- America City
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2012
The City of Dubuque had previously applied for and been awarded a Department of
Energy Grant (Smart Grid Data Access) for additional Smarter Electricity research. The
grant was in collaboration with IBM, the Iowa Association of Municipal Utilities and the
communities of Cedar Falls and Algona. The grant was for a maximum of five hundred
thousand dollars, to be matched by the City and partners in an equal amount.
In October, the City received word that the vendors installing needed equipment in
Algona, a key community partner in the Grant, would not be able to perform in a timely
manner. This required Algona to drop out of the project. Since that time staff has been
working diligently to try to redesign and refinance in a way that allowed the remaining
partners to move forward. The key was to find an alternative approach that could meet
the minimum DOE requirements, be conducted within the DOE's required timeframes,
produce a research product of high value to all participants and create a viable project
for future DOE funding consideration.
While the DOE eventually was willing to consider a redesigned project, it does not
appear that the minimum objectives of the Grant can be accomplished in a timely
manner. Many alternatives were considered and rejected, resulting in a
recommendation to decline the opportunity. The decision to recommend foregoing the
project was not made quickly or lightly, but only after it was determined that the project
would likely not produce the kind of "return on investment" originally intended. Factors
included minimum households served, significant delays in research implementation
and poor results leading to an unlikely potential for future funding.
Smarter Sustainable Dubuque Project Manager David Lyons is recommending that the
City decline this Grant and to stay in touch with DOE for future opportunities that may
be a better fit for continuing joint efforts here in Iowa. No funds have yet been awarded
under this Grant and the City budget was not yet amended to include these revenues.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Michael C. Van Milligan
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
David Lyons, Smarter Sustainable Dubuque Project Manager
2
THE CITY OF
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Masterpiece on the Mississippi
TO: Michael Van Milligen, City Manager
FROM: David Lyons, Smarter Sustainable Dubuque Project Manager
DATE: December 10,2012
SUBJECT: Department of Energy Data Access Grant
Dubuque
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All-America City
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INTRODUCTION
The City of Dubuque had previously applied for and been awarded a Department of Energy Grant (SmartGrkl Data Access)
for additional Smarter Electricity research. The grant was in collaboration with IBM, the Iowa Association of Municipal Utilities
and the communities of Cedar Falls and Algona. The grant was for a maximum of five hundred thousand dollars, to be
matched by the City and partners in an equal amount. Due to unforeseen problems for one of the partners. this memo seeks
City Council approval to decline the Grant.
BACKGROUND
In October we received word that the vendors installing needed equipment in Algona, a key community partner in the Grant,
would not be able to perform in a timely manner. This required Algona to drop out of the project. Since that time we have
been working diligently to try and redesign and refinance in a way that allowed the remaining partners to move forward. The
key was to find an alternative approach that could meet the minimum DOE requirements, be conducted within the DOE's
required timeframes, produce a research product of high value to all participants and create a viable project for future DOE
funding consideration.
While the DOE eventually was willing to consider a redesigned project, I am sorry to report that it did not appear that we
could accomplish the minimum objectives of the Grant in a timely manner. Many alternatives were considered and rejected,
resulting in a recommendation to decline the opportunity. The decision to recommend foregoing the project was not made
quickly or lightly, but only after we determined that we would likely not produce the kind of "return on investment" originally
intended. Factors included minimum households served, significant delays in research implementation and poor results
leading to an unlikely potential forfuture funding.
RECOMMENDATION
For these reasons we have reached the conclusion that the best course to pursue is to decline to move forward with this
Grant and to stay in touch with DOE for future opportunities that may be a better fit for continuing our joint efforts here in
Iowa. We do not anticipate any difficulties, as no funds have yet been awarded under this Grant. My sincere apologies for
being unable to move forward with this research. While I recognize that there will always be events beyond one's control, it
does not lessen the disappointment.
PROJECT COST - BUDGET IMPACT
Because these funds were not accounted for in a budget amendment process and no funds have been expended to date,
there are not budget impacts to declining this grant.
ACTION TO BE TAKEN
I respectfully request Council approve the recommendation to decline the Department of Energy- Smart Grid Data Access
Grant
cc:
Cori Burbach, Sustainable Community Coordinator
Teri Goodmann, Assistant City Manager
Cindy Steinhauser, Assistant City Manager
Chris Kohlmann, Information Services Manager
Randy Gehl, Public Information Officer
Jennifer Larson, Budget Director