HomeMy WebLinkAboutOrdinance 6662113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6662
File Number: 2023-688
DISSOLUTION OF ENERGY IMPROVEMENT DISTRICT 1:
AN ORDINANCE TO REPEAL ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 IN CHAPTER
33 DEPARTMENTS, BOARDS, COMMISSIONS, AND AUTHORITIES OF THE FAYETTEVILLE CITY CODE,
AND TO APPROVE THE DISSOLUTION OF ENERGY IMPROVEMENT DISTRICT NO. 1
WHEREAS, Energy Improvement District No. 1 was created by the Fayetteville City Council on October 15, 2013,
upon the enactment of Ordinance 5624; and
WHEREAS, on November 14, 2016, the City of Springdale joined Energy Improvement District No. 1; and
WHEREAS, the district has had limited success in advancing projects; it requires resources and time from board
members and city staff to maintain the district; and other financial mechanisms and federal incentives are supporting
the goals of the District; and
WHEREAS, on December 12, 2022 the Board of Directors of Energy Improvement District No. 1 voted to express its
support to end its operations and to recommend that the Fayetteville City Council and Springdale City Council vote to
dissolve the District; and
WHEREAS, the District has no projects pending or expected and the Fayetteville City Council believes dissolution of
the District in in the best interest of the member cities and their residents at this time.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals Article XXVI Energy
Improvement District No. 1 in Chapter 33 Departments, Boards, Commissions, and Authorities of the Fayetteville
City Code.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to take any other
necessary action that may be required to end the operation of and dissolve Energy Improvement District No. 1.
PASSED and APPROVED on May 16, 2023
Page 1
Ordinance: 6662
File Number: 2023-688
Page 2
Attest:
Kara Paxton, City CIer rea urer
CITY OF
W41iFAYETTEVILLE
ARKANSAS
MEETING OF MAY 16, 2023
TO: Mayor Jordan and City Council
THRU: Peter Nierengarten, Environmental Director
Susan Norton, Chief of Staff
FROM: Chris McNamara, Sustainability Project Manager
DATE:
SUBJECT: Dissolution of Energy Improvement District 1:
RECOMMENDATION:
CITY COUNCIL MEMO
2023-688
Staff recommends the City Council Repeal Article XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 in
Chapter 33 Departments, Boards, Commissions and Authorities of the Fayetteville Code and abolish the
Energy Improvement District No. 1.
BACKGROUND:
The purpose of Energy Improvement District 1 (EID 1) was to operate a Property Assessed Clean Energy
(PACE) district in Fayetteville and Springdale that allows property owners to borrow money for weatherization,
energy efficiency, renewable energy or water conservation improvements to their property.
PACE enabling legislation was passed by the Arkansas Legislature in the 2013 session and signed by the
Governor in April 2013. That legislation allows Cities, Counties or the State to create Energy Improvement
Districts within the State of Arkansas.
On October 15, 2013, the Fayetteville City Council passed Ordinance No. 5624, which created Energy
Improvement District No. 1. pursuant to Ark. Code Ann. § 8-15-101 to manage PACE for the City of
Fayetteville. In August 2015, the Energy Improvement District executed Arkansas' first and only PACE project
in EID 1, which included weatherization and energy efficiency improvement on a Fayetteville Office Building.
On December 16,2015, the City Council of the City of Springdale passed Ordinance No. 5001, authorizing
Springdale to participate in Property Assessed Energy Improvement District No. 1. and on November 14, 2016,
the City of Springdale joined EID 1.
DISCUSSION:
In the nine years since its inception in 2013, EID 1 has only advanced one project through the PACE program.
Efforts were made throughout these years by the district administrators, board members and qualified
contractors to advance projects through the district. However, economic forces, other incentive programs and
limited buy -in from the community prevented potential projects from utilizing the PACE district.
In the summer of 2022, Springdale notified EID 1 that it would exit the district at the end of the year due to lack
of activity in the district. On December 12th, 2022, the EID 1 board voted to dissolve the district. Board
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
members unanimously agreed that the limited success of the program along with the resources and time
required from board members and city staff to maintain the district justified closure of the district.
Attachment - EID 1_Dissolution Resolution, is a signed resolution from the EID 1 board recommending
dissolving the district.
BUDGET/STAFF IMPACT:
Energy Improvement District No. 1 is legally and financially independent of the City of Fayetteville and the City
of Springdale and there is no budget impact associated with the closure of Energy Improvement District No. 1.
ATTACHMENTS: SRF - District Closure, EID 1 Dissolution Resolution
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
® City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Legislation Text
File #: 2023-688
Dissolution of Energy Improvement District 1:
AN ORDINANCE TO REPEAL ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 IN
CHAPTER 33 DEPARTMENTS, BOARDS, COMMISSIONS, AND AUTHORITIES OF THE
FAYETTEVILLE CITY CODE, AND TO APPROVE THE DISSOLUTION OF ENERGY
IMPROVEMENT DISTRICT NO. 1
WHEREAS, Energy Improvement District No. 1 was created by the Fayetteville City Council on
October 15, 2013, upon the enactment of Ordinance 5624; and
WHEREAS, on November 14, 2016, the City of Springdale joined Energy Improvement District No. 1;
and
WHEREAS, the district has had limited success in advancing projects; it requires resources and time
from board members and city staff to maintain the district; and other financial mechanisms and federal
incentives are supporting the goals of the District; and
WHEREAS, on December 12, 2022 the Board of Directors of Energy Improvement District No. 1 voted
to express its support to end its operations and to recommend that the Fayetteville City Council and
Springdale City Council vote to dissolve the District; and
WHEREAS, the District has no projects pending or expected and the Fayetteville City Council believes
dissolution of the District in in the best interest of the member cities and their residents at this time.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals Article XXVI
Energy Improvement District No. 1 in Chapter 33 Departments, Boards, Commissions, and
Authorities of the Fayetteville City Code.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor to
take any other necessary action that may be required to end the operation of and dissolve Energy
Improvement District No. 1.
Page 1
Chris McNamara
Submitted By
City of Fayetteville Staff Review Form
2023-688
Item ID
5/9/2023
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
4/21/2023 SUSTAINABILITY/RESILIENCE (631)
Submitted Date Division / Department
Action Recommendation:
Staff recommends the City Council Repeal Article XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 in Chapter 33
Departments, Boards, Commissions and Authorities of the Fayetteville Code and abolish the Energy Improvement
District No. 1.
Account Number
Project Number
Budgeted Item? No
Does item have a direct cost? No
Is a Budget Adjustment attached? No
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Budget Impact:
Fund
Project Title
Total Amended Budget
$ -
Expenses (Actual+Encum)
$ -
Available Budget
Item Cost
$ -
Budget Adjustment
$ -
Remaining Budget
V20221130
Previous Ordinance or Resolution # (Ord. 5624, 10-15-13)
Approval Date:
A RE -'SOLUTION TO EXPRFSS TI1E SUPPORT OF THE ENERGY IMPROVEMENT
DISTRIC.'T NO. 1 BOARD OF DIRECTORS TO ENDTHE HE OPERATION OF AND
DISSOI,VF FNERGY IMPROVEMENT DISTRICT NO. 1
WHEREAS, Energy Improvement District No. I was created by the Fayetteville City Council
on October 1 5, 2013, upon the enactment of Ordinance ,5624. and
WHEREAS, on November 14, 201 G, the City of Springdale joined Energy Improvetrtent District
No. 1; and
WHEREAS, the district has bad limited success in advancing projects; it requires resources and
time from board members and city staff to maintain the district, and other financial mechanisms
and federal incentives are supporting the goals of the District; and
WHEREAS, on December 12, 2022 the Board of Directors of Energy Improvement District No-
t voted to express its support to end its operations and to recommend that the Fayetteville City
Council and Springdale City Council vote to dissolve the. District; and
WIIEREAS, the. District has no projects pending or expected and the Board believes dissolution
of the District in in the best interest of the member cities and their residents at this tine.
NOW. THEREFORE, I3E IT RESOLVED BY T13E BOARD OFDIRECTORS OF
ENE RGY IMPROVEMENT DISTRICT NO. 1;
Section 1: 'I"hat the Board. cal' Directors of Energy Improvement District No, 1 supports an end to
the operation of the District.
Section 2: That the Board of Directors of Energy Improvement District No. 1 recommends that
the City Councils of the City of Fayetteville and the City of Springdale take any necessary action
to and the operation of and dissolve Energy Improvement District No- 1.
PASSED and APPROVED this 12th day of December, 2022.
APPROVED:
By: _
SLOAN SCROGGIN, ffhalir
ATTF.S'1 :
MIRANDA C:Al1'1'ILR; kit c Chair