8.2. SR 09-02-2014 City of
Elk=' Request for Action
River
To Item Number
Mayor and City Council 8.2
Agenda Section Meeting Date Prepared by
General Business September 2, 2014 Kristin Mroz, Environmental Technician
Item Description Reviewed by
Class 5 Energy Memorandum of Understanding Jeremy Barnhart,Deputy Director COD
Reviewed by
Cal Portner, City Administrator
Action Requested
Approve,by motion,the Memorandum of Understanding between Class 5 Energy and the City of Elk
River.
Background/Discussion
The City of Elk River has received a grant to participate in a behavior-based energy conservation pilot
program that will help the city reduce energy use and costs by engaging and inspiring city staff. The
program will last for one year,gathering information on program participation, energy use consumption,
and behavior changes. This partnership closely aligns with tasks B3, C3, and D8 of the Energy City
Action Plan.
The program will provide the city with further opportunity to be seen as a leader in energy conservation.
Advances in energy conservation at the city level can be used as an Energy City promotional tool and
demonstration for energy conservation by city residents and businesses.
Class 5 Energy requests the signature of a Memorandum of Understanding,agreeing to display pilot-
related materials, communicate with city staff regularly,provide 10 hours of staff time a month, attend
quarterly meetings, create an Energy Steering Committee with city staff, track utility usage, and provide
Class 5 Energy with results. Other than staff time,which will be split across various departments and
ERMU, and minimal travel within the metro area,there are no out of pocket expenses expected.
Financial Impact
None
Attachments
■ Memorandum of Understanding Between Class 5 Energy and City of Elk River
P a w E A E U s r
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Memorandum of Understanding Between Class 5 Energy and City of Elk River
August 22, 2014
Background
Since 2002, Class 5 Energy has been creating and supporting the implementation of behavior-
based energy conservation programs that help organizations reduce energy use and costs and
achieve external recognition while maintaining a healthy, productive work environment.
Initially implemented in K-12 schools under the name "Schools for Energy Efficiency° (SEE),"
Class 5 programs have been implemented in more than 850 buildings in five states and helped
organizations collectively avoid more than $32 million in energy costs.
In 2011, Class 5 received a grant from the Minnesota Department of Energy Resources to pilot
its behavior-based energy conservation program in a community setting. After a competitive
application process, the City of White Bear Lake was selected and the pilot was launched in
April, 2012.
Based on two years of feedback and data, Class 5 Energy has revised its support model and is
interested testing the new model with additional city partners. The City of Elk River has applied
and been chosen to participate in the pilot, beginning on or about September 1, 2014 and
continuing through September 30, 2015. Either party may cancel this agreement with a 60-day
written notice. If both parties agree to continue, this agreement can be extended under a
separate contract.
The following outlines the proposed partnership between Class 5 Energy and City of Elk River
Scope of Work
1. The City of Elk River agrees to implement the Class 5 Plan, a behavior-based energy
management plan that engages people and inspires change to save energy. As part of
implementing the Plan, the City of Elk River agrees to display pilot-related materials in city-
owned buildings and regularly communicate energy-related messages to city employees.
2. The City of Elk River will identify an Energy Coordinator to support program
implementation. This may be a current city employee or a new hire. The city agrees to allow
1044 Commerce Court
Vadnais Heights,MN 55127
www.class5energy.com
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this person to dedicate approximately 10 hours each month supporting program
implementation. Tasks will include but not be limited to:
a. Gathering and providing Class 5 Energy with monthly utility bills on a timely basis
b. Interview key city department heads to discuss current energy conservation
initiatives and potential energy savings opportunities
c. Launching the CLASS 5 Plan at each facility
d. Establishing a regular communications schedule
e. Coordinating and facilitating discussion and training meetings with key
stakeholders.
f. Creating a system for soliciting, tracking, reviewing, implementing and
promoting energy-saving suggestions from city staff.
g. Sending out regular monthly communications and updates to city staff
h. Monitoring ongoing implementation of program strategies
i. Providing ongoing feedback to CLASS 5 on the program and implementation
process, especially as it relates to city-owned facilities.
3. The City of Elk River will participate in quarterly peer exchange meetings in the Twin Cities,
MN with other pilot participants. Travel expenses are the responsibility of the City of Elk
River.
4. The Energy Coordinator is required to document his/her time and activities as they relate to
the pilot during the grant period (September 1, 2014—September 30, 2015) and provide
that information to Class 5 Energy on a quarterly basis.
5. The City of Elk River will create an Energy Steering Committee that includes key city
department leaders. The Committee will be charged with:
a. Determining an energy goal for the community.
b. Creating an energy policy, including energy use guidelines.
c. Monitoring progress toward the goal and providing ongoing displays of support
for the pilot effort with internal and external stakeholders.
6. Class 5 will provide City of Elk River with the CLASS 5 Plan, which includes:
• A Welcome DVD for presenting the Plan to others in the organization.
• A comprehensive Building Assessment (walk through) for all participating facilities
• Energy awareness campaign materials to educate and inspire people.
• Promotional materials to highlight the energy-saving efforts.
1044 Commerce Court
Vadnais Heights,MN 55127
www.class5energy.com
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• Recognition materials to reward people for their participation.
• Access to our Members Only website which includes dozens of pre-written, easily
customizable articles, emails, press releases and internal communications.
7. Class 5 will provide a dedicated Class 5 Coach who will train the city's Energy Coordinator
and provide ongoing support and guidance.
8. Class 5 will provide utility tracking services including:
a. Establishing the energy use baseline for all participating buildings, including
linear regression analysis to determine weather normalization.
b. Providing identified staff with a user login and access to CLASS 5's proprietary
utility tracking system.
c. Utility bill data entry, report preparation and results interpretation.
d. Review and validation of monthly utility data.
9. The City of Elk River agrees that the Class 5 Plan contains proprietary content and materials
and will sign Class 5's standard Agreement regarding Confidential Information and Non-
Competition.
This letter serves as a Memorandum of Understanding. By signing below, both the City of Elk
River and Class 5 Energy acknowledge the terms outlined above.
Amy Anderson John J. Dietz
General Manager, CLASS 5, Inc. Mayor, City of Elk River
1044 Commerce Court
Vadnais Heights,MN 55127
www.class5energy.com