R2022-168 Resolution Authorizing Agreements for City Owned and Leased Properties Under the Ameren Public Sector HVAC and Water Heater Incentive Program

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OFFICE OF THE CITY MANAGER DATE: October 3, 2022 TO: Mayor Julie Moore Wolfe and City Council Members FROM: Scott Wrighton, City Manager Jon Kindseth, Deputy City Manager SUBJECT: Resolution Authorizing Agreements For City Owned And Leased Properties Under The Ameren Public Sector HVAC &Water Heater Incentive Program RECOMMENDATION: It is recommended by staff that this item be approved. BACKGROUND: Six days ago, the City was notified by Ameren that there was significant amounts of funding available for public sector entities to replace HVAC & water heaters for existing Ameren customers. The caveat was that we needed pricing and grant applications in for these projects by September 30th. Every facility had to be treated as an individual project, but it is possible that Ameren will fund up to 100% of the costs, including soft costs. The other challenge to this program is the work has to be completed before the end of the year. Staff,along with support from AEX and local contractors worked diligently to pull together as many of these projects that we could to submit by the deadline. Al of this has been and will be challenging due to supply chain and labor issues that we are all experiencing. We did not have time to use our normal procurement process,and the work has to be performed by prequalified contractors. Although the City has received multiple prices for all of this work,we are not ready to make a recommendation to Council as to what specific contractor should do which projects. All of this is what is driving the need for the abnormal approval process. Much of this equipment is beyond useful life and needs to be replaced in the near future anyway, if we can get all or most of it covered by grant dollars than staff will proceed, if Council approves this item. POTENTIAL OBJECTIONS: Staff is not aware of objections. INPUT FROM OTHER SOURCES: City staff, local contractors, and Ameren. STAFF REFERENCE: Should the City Council have any questions,they may contact Jon Kindseth, who will also be at the City Council meeting. BUDGET/TIME IMPLICATIONS: This project could save the City between$200K- $400K in equipment replacement expenses as well as thousands more annually on reduced gas usage.