The Morning Journal (Lorain, OH)
Council considers energy, operations
Savings a priority now
The city of Lorain could generate $2.9 million over 20 years with a plan to upgrade municipal buildings and reduce operational and energy costs, according to a study from a consulting firm.
On Aug. 3, Lorain City Council held a work session to discuss a study by Leopardo Energy. Earlier this year the Chicago consultant analyzed city buildings to see how much money the city spends on operations and energy.
Council had questions for the consultants but took no formal action as part of the work session, which lasted about 55 minutes.
They heard from Rob Vollrath, Leopardo Energy chief business officer; Drake Wahlers, vice president of engineering; John Albrecht, partner/managing director of engineering; and Heather Garay, director of financial operations.
Leopardo Energy would guarantee energy bill savings of more than $9.9 million over 20 years, the company representatives said.
The company proposed a total project cost of $5.5 million; financing that over 15 years, the total cost would hit $7 million with interest, according to Leopardo Energy’s study.
The company has never missed a guarantee and will pay the city money if the savings measures don’t add up, Albrecht said.
Councilman-at-Large Tony Dimacchia asked why every city does not take the same approach to operational and energy savings.
The energy and operational study involves a number of city departments. Many cities have a silo approach with each department guarding its budget, Vollrath said.
Garay, a former city controller in Indiana, admitted she at first was skeptical of Leopardo Energy’s approach, but changed her mind when Vollrath brought her an analysis of her city’s utility bills.
The study was long overdue, said Councilwoman-atLarge
Mary Springowski. She noted city elected officials and staff could learn to deal with new duties.
Ward 6 Councilman Rey Carrion said the city should have considered the cost savings years ago. Springowski
noted Council members have requested a such a study for some time.
Councilman-at-Large Mitch Fallis said he liked the company’s comprehensive, holistic approach. He called it a job well done and looked forward to learning more.
Springowski said she hoped Council does not just listen to the information without acting on it.
If the City Council and administration moves forward, the city would follow a three step process.
The city would advertise publicly for a qualifications from interested contractors and firms, a process expected to take 60 days.
A city team or committee would analyze those qualifications over a period up to 90 days. After that, City Council would approve a contract with a firm to oversee the work.
The process is a marathon, not a sprint, Vollrath said. The company staff completed their study in March, just before Ohio’s business shutdowns and shelter-in-place orders due to the novel coronavirus pandemic, he said.
If Council were to start the process next month, the project installation likely would start in May 2021 with construction lasting nine to 12 months, meaning it would be finished in February to May 2022.
Leopardo Energy is a family owned company that is conservative with its estimates, so the operational and energy savings could be more, the business representative said.
Leopardo Energy, a union contractor, also likes to work with local labor. Depending on the size of the job, the city projects can generate dozens of jobs and hundreds of thousands of dollars in positive economic effects, Vollrath said.
The company also deals with operations, such as parts and maintenance and service contracts, but does not recommend savings based on eliminating jobs, Garay and Albrecht said. The changes in operations may result in shifts in job duties for workers, but Leopardo Energy does not recommend job cuts, they said.
Because many cities already have undertaken energy savings studies and implemented those measures, it becomes difficult to find large energy savings costs, so more savings come from operations, Albrecht said.
Also present were Council members Cory Shawver of Ward 7, Greg Argenti of Ward 4, Pamela Carter of Ward 3, Rob McFarland of Ward 2; Council President Joel Arredondo; Mayor Jack Bradley; Safety-Service Director Sanford Washington; and mayor’s Chief of Staff Rick Soto.