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HomeMy WebLinkAbout20223402.tiffRESOLUTION RE: APPROVE TWO (2) SECTION 179D ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION ALLOCATION FORMS FOR CENTENNIAL CENTER AND NORTH JAIL COMPLEX, AND AUTHORIZE CHAIR TO SIGN - SETPOINT SYSTEMS CORPORATION WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS, the Board has been presented with a Section 179D Energy Efficient Commercial Buildings Deduction Allocation Forms for Centennial Center and North Jail Complex between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Accounting and Facilities Departments, and Setpoint Systems Corporation, with further terms and conditions being as stated in said forms, and WHEREAS, after review, the Board deems it advisable to approve said forms, copies of which are attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Section 179D Energy Efficient Commercial Buildings Deduction Allocation Forms for Centennial Center and North Jail Complex between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Accounting and Facilities Departments, and Setpoint Systems Corporation, be, and hereby are, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said forms. AGT (cP/cD) (2/30122 2022-3402 BG0024 AC0023 TWO (2) SECTION 179D ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION ALLOCATION FORMS FOR CENTENNIAL CENTER AND NORTH JAIL COMPLEX - SETPOINT SYSTEMS CORPORATION PAGE 2 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 12th day of December, A.D., 2022. BOARD OF COUNTY COMMISSIONERS WELD, COUNTY, COLORADO ATTEST: daywo jeito;vi Weld County Clerk to the Board BY: AP County ttorney Date of signature: 12/27/2 Scott K. James, Chair Mike Freeman, Pro-Tem Perry L. Buck Lori aine 2022-3402 BG0024 AC0023 BOARD OF COUNTY COMMISSIONERS PASS -AROUND REVIEW PASS -AROUND TITLE: Section 179D Tax Incentive Set point Systems DEPARTMENT: Accounting/Facilities DATE: December 5, 2022 PERSON REQUESTING: Chris D'Ovidio/Toby Taylor Brief description of the problem/issue: The Alliantgroup, is working on behalf of Setpoint Systems Corporation to qualify their work on two county projects, the North Jail expansion, and Centennial Center, for a Section 179 D Energy Efficient Commercial Building Tax Deduction. The 179D tax deduction is a program that enables building owners to claim a tax deduction for installing qualifying systems in buildings. If the system or building is installed on federal, state, or local government property, the 179D tax deduction may be taken by the person primarily responsible for the system's design. To qualify Setpoint Systems Corporation for the credit, the Alliantgroup needs the attached forms allocating the 179D tax credit to Setpoint Systems Corporation signed by the building owner, the chairman of the board, and be allowed to inspect the work designed by Setpoint Systems Corporation. What options exist for the Board? (Include consequences, impacts, costs, etc. of options): Sign the document allocating the 179D tax credit for the North Jail expansion, and Centennial Center projects to Setpoint Systems Corporation, and allow the Alliantgroup to inspect the projects designed by Setpoint Systems Corporation. This is a similar request from the Alliantgroup for GSG Architecture Inc. that was approved by the board on August 29, 2022. Recommendation: We would recommend signing the certification and allowing the walk through of the county facilities. Approve Recommendation Work Session Other/Comments: Schedule Perry L. Buck Mike Freeman, Pro-Tem Scott K. James, Chair Steve Moreno Lori Saine 2022-3402 2.4 1=1 1=1COOZ- Karla Ford From: Sent: To: Subject: Approve Mike Freeman Tuesday, December 6, 2022 3:25 PM Karla Ford Re: Please Reply - PA for routing: Section 179D tax incentive Setpoint Systems Sent from my iPhone On Dec 6, 2022, at 9:27 AM, Karla Ford <kford@weldgov.com>wrote: Please advise if you approve recommendation. Thank you. Karla Ford X Office Manager, Board of Weld County Commissioners 1150 O Street, P.O. Box 758, Greeley, Colorado 80632 :: 970.336-7204 :: kford@weldgov.com :: www.weldgov.com **Please note my working hours are Monday -Thursday 7:OOa.m.-5:00p.m.** <image002. jpg> Confidentiality Notice: This electronic transmission and any attached documents or other writings are intended only for the person or entity to which it is addressed and may contain information that is privileged, confidential or otherwise protected from disclosure. If you have received this communication in error, please immediately notify sender by return e-mail and destroy the communication. Any disclosure, copying, distribution or the taking of any action concerning the contents of this communication or any attachments by anyone other than the named recipient is strictly prohibited. From: Chris D'Ovidio <cdovidio@weldgov.corn> Sent: Monday, December 5, 2022 2:49 PM To: Karla Ford <kford@weldgov.com>; BOCC <BOCC@co.weld.co.us> Cc: Cheryl Pattelli <cpattelli@weldgov.com>; Toby Taylor <ttaylor@weldgov.com> Subject: PA for routing: Section 179D tax incentive Setpoint Systems Good afternoon Karla, Please see the attached PA to be routed to all commissioners. It is regarding the assignment of the County's 179D tax incentive to Setpoint Systems. The county is entitled to a section 179D tax credit for the installation of qualifying efficient systems designed by Setpoint. Setpoint is asking that the county assign the available credit to them which is allowed under IRS regulations. This is a similar request that was approved by the board in August 2022 for design work completed by GSG Architecture inc. Thanks Christopher D'Ovidio Accounting Department SETPOINT Since 1983 SYSTEMS CORPORATION SECTION 179D ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION ALLOCATION FORM As part of the Energy Policy Act of 2005, Congress enacted Section 179D of the Internal Revenue Code to encourage the design and construction of energy efficient buildings. Per IRC §179D(d)(4) and Notice 2008-40, in the case of energy efficient commercial building property installed on or in property owned by a Federal, State, or local government or a political subdivision thereof, the Secretary shall promulgate a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section. IRS Notice 2008-40 Section 3.02 - Designer of Government -Owned Buildings A designer is a person that creates the technical specifications for installation of energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D). A designer may include, for example, an architect, engineer, contractor, environmental consultant or energy services provider who creates the technical specifications for a new building or an addition to an existing building that incorporates energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D). A person that merely installs, repairs, or maintains the property is not a designer. Scope of Work The following project included the renovation of Weld County Centennial Center in Greely, Colorado. Setpoint Systems Corporation created technical specifications for the installation of the energy efficient commercial building property which resulted in reduced energy consumption and is eligible to be allocated the 179D Energy Efficient Commercial Building Deduction. Specifically, Setpoint Systems Corporation provided input into the creation of technical specifications through the following: Weld County Centennial Center: Setpoint Systems Corporation was the mechanical controls contractor on the project to remodel the Weld County Centennial Center. In this project, Setpoint Systems Corporation upgraded the HVAC controls for 24 VAVs and 4 AHUs. Setpoint Systems Corporation created written requirements that are shown in the points lists, panel designs, flow diagrams, and as -built diagrams that were created by Setpoint Systems Corporation. Page 1 of 3 TP'INT Since 1983 SYSTEMS CORPORATION The role of the allocating government entity is to confirm the scope of work performed and related information provided herein as eligible to pursue for the IRC §179O deduction by the taxpayer seeking the allocation, and not for determining if in fact the commercial building property is energy efficient. IRS Notice 2008-40 Section 3.03 - Allocation of the Deduction If more than one designer is responsible for creating the technical specifications for installation of energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D) on or in a government -owned building, the owner of the building shall — (1) determine which designer is primarily responsible and allocate the full deduction to that designer, or (2) at the owner's discretion, allocate the deduction among several designers. Weld County Building Information Placed in Cost of Allocation Government Property Name Property Address Service Property Percentage Rep. Initials Weld County Centennial Center 915 10th St Greeley, CO 80631, August 2021 $130,779 c� / CO / L1;! The authorized owner representative is not responsible for certification of the energy efficient commercial building property. The taxpayer receiving the allocation is solely responsible for obtaining the required certification and onsite verification and for ensuring their accuracy and substance. Following a third -party certification by a licensed professional engineer or contractor in the jurisdiction of the building, Weld County will be provided with a summary analysis detailing the energy -saving improvements and the final Section 179D deduction amount. Page 2 of 3 SETPOINT Since 1983 SYSTEMS CORPORATION Weld County Representative Information Re resentative Name: C o fl- V. 7 ves invent Entity Name Weld County ail Address: Telephone Number: Cha,r) 1'oa(o(e We Id 1.).Kyf n,5Ma re✓S 1150 0 S+a , P. o. 3o)c 1s? C,r.4 Lry CAD eai3A 0/10 doo - -mail:. 51.,,es3wie W1O1.Coat .Corr Setpoint Systems Corporation Representative Information Representative Name: Aaron Nahale Designer Entity Name: Setpoint Systems Corporation Title: Other Address:,; 8167 Southpark Cir Littleton, CO 80120 Telephone Number: 3037332300 Representative E-mail: anahale@setpointsystems.com Under penalties of perjury, I declare that I have examined this allocation, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this allocation are true, correct, and complete. AGREED TO AND ACCEPTED: Signature (Weld County Representative) Scott K. James, Chair Board of Weld County Commissioners 12/12/2022 Date ATTEST• detail%) Weld . _y Clerk t BY: Aaron Nahale (Nov 21, 202213:39 MST) Signature (Setpoint Systems Corporation Representative) Nov 21, 2022 Date 7204` -O/7/0„t(i) SETPOINT- Since 1983 SYSTEMS CORPORATION SECTION 179D ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION ALLOCATION FORM As part of the Energy Policy Act of 2005, Congress enacted Section 179D of the Internal Revenue Code to encourage the design and construction of energy efficient buildings. Per IRC §179D(d)(4) and Notice 2008-40, in the case of energy efficient commercial building property installed on or in property owned by a Federal, State, or local government or a political subdivision thereof, the Secretary shall promulgate a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of the owner of such property. Such person shall be treated as the taxpayer for purposes of this section. IRS Notice 2008-40 Section 3.02 - Designer of Government -Owned Buildings A designer is a person that creates the technical specifications for installation of energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 1790). A designer may include, for example, an architect, engineer, contractor, environmental consultant or energy services provider who creates the technical specifications for a new building or an addition to an existing building that incorporates energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D). A person that merely installs, repairs, or maintains the property is not a designer. Scope of Work The following project included the renovation of the Weld County Sheriff - North Jail Complex in Greeley, Colorado. Setpoint Systems Corporation created technical specifications for the installation of the energy efficient commercial building property which resulted in reduced energy consumption and is eligible to be allocated the 179D Energy Efficient Commercial Building Deduction. Specifically, Setpoint Systems Corporation provided input into the creation of technical specifications through the following: Weld County Sheriff - North Jail Complex: Setpoint System Corporation was hired on as the controls contractor for the renovation project at Weld County Sheriff - North Jail Complex. Setpoint System Corporation upgraded the existing Delta Controls system specifically for 2 Boilers, 4 Pumps, 17 RTUs, and 33 Vays. For this project, Setpoint Systems Corporation created points lists for the new hardware, provided the final sequence of operations, and furnished the final building automation drawings. Page 1 of 3 SETPOINT" Since 198 SYSTEMS CORPORATION The role of the allocating government entity is to confirm the scope of work performed and related information provided herein as eligible to pursue.for the IRC §179D deduction by the taxpayer seeking the allocation, and not for determining if in fact the commercial building property is energy efficient. IRS Notice 2008-40 Section 3.03 - Allocation of the Deduction If more than one designer is responsible for creating the technical specifications for installation of energy efficient commercial building property (or partially qualifying commercial building property for which a deduction is allowed under § 179D) on or in a government -owned building, the owner of the building shall (1) determine which designer is primarily responsible and allocate the full deduction to that designer, or (2) at the owner's discretion, allocate the deduction among several designers. Weld County Building Information Placed in Cost of Allocation Government Property Name Property Address Service Property Percentage Rep. Initials Weld County Sheriff - North Jail Complex 2110 O St. Greeley, CO 80631 October 2021 $299,113 The authorized owner representative is not responsible for certification of the energy efficient commercial building property. The taxpayer receiving the allocation is solely responsible for obtaining the required certification and onsite verification and for ensuring their accuracy and substance. Following a third -party certification by a licensed professional engineer or contractor in the jurisdiction of the building, Weld County will be provided with a summary analysis detailing the energy -saving improvements and the final Section 179D deduction amount. Page 2 of 3 SETPOINT Representative Information 5C of+ K "1—fii1.S Since 79° SYSTEMS CORPORATION Weld County Representative Name: Government Entity Name: Weld County Title: Chair, Zowol o4 W.t Id (manly eomvii's.SiOnerS Mailing Address: ► 15v O ShKeed-, P.6. 13O 15$ C-IiQ liy Cm Solo3A Telephone Number: 97s - Lice • zatx) S0",,lyh{S0ti11.123Qd.Coe1/Kroro(61 w.1,13,, tom E-mail: Setpoint Systems Representative Name: Corporation Representative Information Aaron Nahale Designer Entity Name: Setpoint Systems Corporation Title: Other Address: 8167 Southpark Cir Littleton, CO 80120 Telephone Number: 3037332300 Representative E-mail: anahale@setpointsystems.com Under penalties of perjury, I declare documents, and to the best of my knowledge are true, correct, and complete. AGREED TO AND ACCEPTED: that I have examined this allocation, including accompanying and belief, the facts presented in support of this allocation .MIAs► Aaron Naha,' (Nov 10, 2022 1£3:29 MS, Signature (Weld County Representative) Signature (Setpoint Systems Corporation Representative) Scott K. James, Chair Board of Weld County Commissioners Nov 10, 2022 12/12/2022 Date •tik. Date ATTEST: ) _1 Weld r olnty Clerk to t e BY Deputy C the'�'�� �,,.'�1 ti ,_{3 of 3 07Aaao 02. (2) Hello