HomeMy WebLinkAbout2008-08-25 08-288 RESOLVECOUNCIL ACRON
Item No, ()8 288
Date: 8-25-08
Item/Subject: Resolve, Appropriating $2.2 Million From Airport Reserves for Energy
Conservation Projects at Bangor International Airport
Responsible Department: Finance
Commentary: On June 16, 2008, the Finance Committee authonzed City staff to proceed with
recommended energy conservation measures at the Airport in Me amount of $2,950,368 with
the understanding Mat staff would return M Me Committee with a funding strategy prior to
beginning the projecq
While preparing for this work, engineers raised a concern about the structural integrity of four
hangar roofs that were to be insulafecl as a part "is project. Our Engineering Department Is
reviewing Me structural Issues and, in all likelihood, structural modifications will be necessary
prior to the insulating them. At this time, therefore, Me costs associated with Insulating Me
hangar roofs will be removed from the corroact until all issues are resolved.
With this change, the total contract cost for energy conservation projects at the Airport will be
$2,126,769(listing attached). There are two funding options: l) deWlease purchase financing
or 2) use of existing funds. The cost of financing would be in the 3.75%- 4.0% range. At this
time, the Airport has in excess of $600 thousand in overnight Investments and $2.663 million in
money coerce[ funds yielding 2.19%. The remaining Airport Im n;1meni portfolio is yielding
approximately 4.56%. Staff recommends that the project contract, in Me amount of
$2,126,769, be funded from existing Airport resources Projections show Mat raduced
energy/operedng casts will pay for the entire project in ] years. As you may recall, there are
several potential projects that not only need additional time to evaluate (i.e. Dock Il, woodchip
boiler, and hangar mofs) buy ti undertaken, carry significant costs. If and when a decision Is
reached on these projects, staff will look at existing resources versus financing options again
but, in all likelihood, especially IF the wood chip boiler option is pursued, it would be rvxessary
and prudent to finance Mose additional projects. This will appropriate $2.2 M for MIs purpose.
Department Head
Manager's Comments: This has bean reviewed and a recommended by Fin rice Co��OmLytteee�
Q. fe
Qty Manager
Associated ortomratiorc
Budget APpro"I:
FI nce D111r
Legal Approval:
Solicitor
mtroducea for
_ Passage
JL Nrot Reading Page _ of
_
Referral
M
ter, Assigned to C calor D•arrfen August 25. 2ooe
' CITY OF BANGOR
(TITLE.) Resolve, Appropriating $2.2 Million From Airport Reserves for Energy conservation Projects at
Bangor International Airport
BY THE CITY COUNCIL OF THE CITY OF BANGOR:
BE IT RESOLVED,
That the amount of $2,200,000 is hereby appropriated from Airport reserves for the purpose of
implementing energy efficiency and conservation projects at Bangor International Airport.
IN CITY CO➢PLTL
September 8, 2008
Mmtiop Made aad Seconded # 08-288
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