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HomeMy WebLinkAboutMemo From City Manager24 May 2010 - Response from City Manager to Sustainability Advisory Board re: (1) Energy Star Procurement Language and (2) TIF and Energy Efficiency from May 2010 meeting of the Board: (1) Purchasing language: I will have Purchasing Division staff look for ways in which energy efficiency language may be incorporated into purchasing documents. As I mentioned to you a while back, I am somewhat reluctant to specify "Energy Star" or other brand type language in purchasing documents. I believe that there may be other acceptable methods by which a vendor can document the energy efficiency of their products. In light of questionable practices recently pointed out in the media regarding the thoroughness of the reviews to achieve an Energy Star designation, I am reluctant to rely only on an "Energy Star" designation as I may have previously. While some communities have freely added the Energy Star language to their purchasing documents in the past, I suspect that the language will be more generic in the future and ask that the vendor document energy efficiency through an Energy Star designation or some other generally accepted method to demonstrate energy efficiency. I would expect that the SAB's goal is to pursue energy efficiency that can be documented, not simply rely on a single proprietary method such as Energy Star. (2) TIF support for building and energy efficiency: Staff is in the process of creating criteria that may be used to evaluate various TIF proposals. The criteria are not intended to create minimum requirements for TIDs; rather, they are designed to provide the Plan Commission, Council, and the Joint Review Board with a tool that they may use to evaluate various types of TIF proposals. In response to the SAB's request on TIF reviews, I have directed staff to incorporate energy efficiency and sustainable building practices into the criteria that Council may be able to choose from as they consider a policy on evaluating TIF proposals. I have asked that staff make the development of TIF financing criteria a priority over the next 3 months. I will inform the Council via my weekly newsletter that I am approaching the SAB's request in this manner so that the Council has the SAB's recommendation incorporated into a specific action item, rather than simply placing it on a Council agenda without a specific action to take. Please share with the SAB that this may create a difficult scenario for TIF proposals. TIF projects are by their very nature challenging from a financial viability standpoint. With these projects generally having little margin for error, TIF is often sought because the project can not stand on its own for private funding, making public support that much more crucial. To the degree that immediate, up front costs are added to an already challenging project may make further complicate the financial viability of a TIF project. Mark A. Rohloff, City Manager City of Oshkosh