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HomeMy WebLinkAbout20153699.tiff RESOLUTION RE: APPROVE MEMORANDUM OF UNDERSTANDING FOR OUTDOOR LIGHTING REPLACEMENT SUPPLEMENTAL ENVIRONMENTAL PROJECT AND AUTHORIZE CHAIR TO SIGN - NOBLE ENERGY, INC. 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 Memorandum of Understanding for an Outdoor Lighting Replacement Supplemental Environmental Project between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Buildings and Grounds, and Noble Energy, Inc., commencing July 29, 2015, and ending April 30, 2017, with further terms and conditions being as stated in said memorandum of understanding, and WHEREAS, after review, the Board deems it advisable to approve said memorandum of understanding, a copy of which is attached hereto and incorporated herein by reference. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld County, Colorado, that the Memorandum of Understanding for an Outdoor Lighting Replacement Supplemental Environmental Project between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, on behalf of the Department of Buildings and Grounds, and Noble Energy, Inc., be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to sign said memorandum of understanding. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 23rd day of November, A.D., 2015, nunc pro tunc July 29, 2015. BOARD OF COUNTY COMMISSIONERS WELD COUNTY, C LORADO ATTEST: diat,t) G�• ��it0�� arbara Kirkmeye , Chair Weld Cou y Clerk to the Board Mike Freeman, Pro-Tem BY: Deputy Cler o the Boar Sean P. Conway . ., .O . D : -• ORM: I _ • ie A. ozad Cou ' Attorney ' �. �- -� ve Moreno Date of signature: �, - ; 2015-3699 CC:6G 1213/ BG0017 MEMORANDUM OF UNDERSTANDING between NOBLE ENERGY, INC. and WELD COUNTY I. Introduction Noble Energy, Inc. (Noble) and Weld County("jointly Parties")enter into this Memorandum of Understanding(hereinafter"MOU")to outline and memorialize respective roles and responsibilities as it relates to the performance of the Weld County Outdoor Lighting Replacement Colorado Department of Public Health and Environment(CDPHE) Supplemental Environmental Projects(SEP)Agreement(SEP Project)executed by Noble and CDPHE in accordance with Noble's Consent Decree entered on June 2,2015 as final judgment before the United States District Court of Colorado(Case No. 1:15-cv-00841 RBJ)(hereinafter"CD"). A copy of the executed SEP Agreement is attached to and incorporated by reference to this MOU. II. Background In accordance with Section IX of the CD, Noble agrees to perform one or more State-Only Supplemental Environmental Project(s)that Noble and CDPHE agree are intended to secure significant environmental or public health protection and improvements. Following Weld County's submission of its proposal,Weld County was selected as a recipient of Noble funding to undertake its proposed SEP Project. Consistent with the executed SEP Agreement,Noble is providing Weld County with$333,925.00 to undertake its SEP Project. Noble and CDPHE expect that Weld County will execute the SEP Project in accordance with the SEP Agreement and this MOU. Noble SEP Project funding shall not be used by Weld County for any project other than the SEP Project. III.Purpose Pursuant to the SEP Agreement, Weld County shall serve as the SEP Administrator to the SEP Project. By way of this MOU and in consideration of the SEP Payment by Noble to Weld County of$333,925.00,Weld County agrees to undertake the SEP Project in accordance with the SEP Agreement. At a minimum and in accordance with the SEP Agreement,Weld County shall: 1. Maintain SEP Project funds separately from all other monies and draw funds as-needed, only to undertake the SEP Project; 2. Communicate issues and concerns related to the SEP Project promptly to Noble and CDPHE; Page 1 of 5 2015-3699 3. Obtain approval from Noble of all proposed publicity or other statements and communications, whether oral or written, regarding the SEP Project; 4. Agree to include the following statement should Weld County reference Noble in connection with the SEP Project (only after Noble approval is received): "This project was undertaken in connection with the settlement of an enforcement action taken by the Colorado Department of Public Health and Environment, Air Pollution Control Division, for violations of air quality laws and regulations. "; 5. Complete the SEP Project in accordance with the SEP Agreement, noting specifically that: a. Any changes to the approved project scope or timeline must receive prior written approval from Noble and CDPHE; b. Proposed budget reallocations of up to 10% of the total SEP Project funding amount may be made by Weld County without prior authorization; and c. Proposed budget reallocations of over 10% of the total SEP Project funding amount must first receive written prior authorization from Noble and CDPHE; 6. Complete the SEP Project within the allotted time frame outlined in the SEP Agreement for the completion of the SEP Project, noting specifically that Weld County may make a written request to extend the SEP Project deadline to Noble and CDPHE no later than thirty(30) days prior to the SEP Project deadline with the understanding that CDPHE shall make the final decision regarding the approval or denial of the SEP Project deadline extension; 7. Provide Noble and CDPHE with Semiannual Status Reports by April 30th and October 30th each year that uses CDPHE's template status report form and includes, at a minimum, the following information: • A description of activities completed to date; • A description of any operating problems encountered and the solutions thereto; • A budget summary table listing funds expended to date by budget category; and • A discussion of any anticipated changes to the project scope or timeline; 8. Provide Noble and CDPHE with a SEP Completion Report on or before March 15, 2017 or within 45 days of the CDPHE approved SEP Project completion deadline, whichever comes later that uses CDPHE's template report form and includes, at a minimum, the following information: • A detailed description of the SEP as implemented; • A description of any operating problems encountered and the solutions thereto; • Itemized costs, documented by copies of purchase orders and receipts or canceled checks; Page 2 of 5 • Certification that the SEP has been fully implemented pursuant to the provisions of the Consent Decree; and • A description of the environmental and public health benefits resulting from implementation of the SEP with quantification of the benefits and pollutant reductions; and 9. Provide in the SEP Completion report, in addition to the information outlined in Paragraph 8 above, the following: • Examples of any brochures, educational or outreach materials developed or produced as part of the SEP Project; and • Photographs documenting the SEP Project. IV.Modification and Termination This MOU may be modified only by a written instrument executed by all Parties. This MOU will terminate sixty(60) days after CDPHE's notification to Noble that the SEP Project has been completed to the satisfaction of CDPHE. V. Points of Contact The Parties of the MOU designate the following person to be their official contact in matters related to this MOU. Any party may change its contact person upon written notice to the other Party. Any notice,request, demand, or other communication required or permitted to be given under this MOU and/or in accordance with the SEP agreement shall be deemed to have been duly given, if in writing and delivered personally or sent by registered or certified mail or facsimile as follows: 1. Noble RM Patteson Vice President of DJ Basin Business Unit Noble Energy, Inc. 1625 Broadway, Suite 2200 Denver, CO 80202 (303) 228-4000 Mark.Patteson@nblenergy.com 2. Weld County Toby Taylor Director, Buildings& Grounds Weld County 1150 0 Street Greeley, CO 80631 (970) 356-4000, ext. 2023 ttaylor@co.weld.co.us Page 3 of 5 VI.Merger This MOU, together with any written modifications entered into pursuant hereto, and the SEP Agreement contain all the terms and conditions agreed to by Noble and Weld County with respect to the SEP Project. In the event of a conflict between the terms and conditions of the MOU and the SEP Agreement, the terms and conditions of the SEP Agreement shall control with respect to the execution and completion of the SEP Project to ensure compliance with the CD. VII. Waiver No waiver of any provision of this MOU shall be effective unless made in writing and signed by the waiving party. No waiver of any provision of this MOU shall constitute a waiver of any prior, concurrent, or subsequent breach of the same or any other provision hereof. VIII. No Third-Party Beneficiaries This MOU does not create any new right or interest in any member of the public as a third-party beneficiary, nor shall it authorize anyone not a party to this MOU to maintain a suit for injuries or damages pursuant to the provisions of this MOU. IX. Binding Effect This MOU shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors, and assigns. The parties waive the defense of lack of consideration. X. Disputes The Parties agree that in the event of a dispute between them regarding any provision of this MOU, they shall promptly use their best efforts to resolve the dispute in an informal fashion through communication and consultation; however, in the event any dispute cannot be resolved the terms and conditions of this MOU or any subsequent modification hereto shall remain in full force and effect. [Remainder of Page Intentionally Left Blank] Page 4 of 5 XI.Duplicate Originals This MOU may be executed by facsimile signatures and in counterparts,each of which when so executed shall constitute an original, and all of which taken together shall constitute one and the same document. This MOU may be executed in any number of duplicate originals. A complete original of this MOU, and any duly executed modifications, shall be maintained in the official records of each party to this MOU. IN WITNESS WHEREOF,Noble and Weld County have executed this MOU on the date(s)set forth below: 431/7/"EG/-� Date: / 4,4e r/ _.. RM Patteson Vice President of DJ Basin Business Unit Noble Energy ,74falAtiAA., ate: NOV 2 3 2015 Barbara Kir eyer,Chai Board of Weld County Commissioners Weld County, Colorado Attachment/Incorporation by Reference: Executed SEP Agreement Page 5 of 5 oZ-t2/.— .310 g1 RE: MEMORANDUM OF UNDERSTANDING FOR SUPPLEMENTAL ENVIRNMENTAL PROJECTS (SEP) AGREEMENT ATTEST: digerAgAi 4 BOARD OF COUNTY COMMISSIONERS Weld Terk to the B and WELD COUNTY, CO ORADO BY: Deputy C k to the Bo Barbara Kirkmeyet, Chair NOV 2 3 2015 APPROVED AS T. F ND � PPROVED AS TO SUBSTANCE: -OIdKitalt k F •� � Controller / �`� , �' lecte •fficial or Department Head APPROVED AS TO FORM: �,., ,.,;�.� ,\j/, PCS Director of General Services County Attorney A CDPHE Supplemental Environmental CO Projects (SEP) Agreement The regulated entity, identified below,submits the following SEP application to the Colorado Department of Public Health and Environment(the department) for SEP consideration. If the regulated entity and third party SEP administrator approve of the application, it shall be signed by appropriate representatives of the regulated entity and third party SEP Administrator. If the approved document is then signed by the department, it shall serve as the SEP agreement for the enforcement settlement at issue. Noble Energy Inc. (Noble) Enforcement EPA Consent Decree Information USDC,CO-1:15-cv-00841 RBJ Delegation from Vice President Counsel: Environmental Health and Safety to: Denee A.DiLuigi,Esq. Regulated Laura Johnson 1625 Broadway, Suite 2200 Entity Contact Senior Social Performance Coordinator Denver,CO 80202 1001 Noble Energy Way 303-228-4251 Information Houston,TX 77070 Denee.DiLuigi(a nblenergy.com 832-639-7015 Laura.Johnson(anblenergy.com Third Party SEP Weld County Administrator Third Party Toby Taylor SEP Type of organization: Director,Buildings&Grounds Addiinistrator 1150 0 Street Non—profit* Government X Project Greeley, CO 80631 Manager *If non-profit, please attach a copy of your Contact (970) 356-4000, ext. 2023 P , ttaylor(cz),co.weld.co.us 501c(3) exemption to this SEP Agreement. Information CDPHE Contact Lauren McDonell, 303-692-2979, lauren.mcdonellAstate.co.us Person Geographic Area to Weld County Benefit Project Title Weld County Outdoor Lighting Replacement Project Type Third Party SEP Donation SEP Category Pollution Prevention Page 1 of 6 Project Weld County will replace at least 144 existing traditional light bulbs(metal halide and high Summary pressure sodium) in the outdoor lighting of all its facilities with more energy efficient LED (light-emitting diode)bulbs,in order to increase energy efficiency and reduce air emissions. The World Health Organization estimates that 3.7 million premature deaths worldwide can be attributed to ambient(outdoor)air pollution; and that most sources of outdoor air pollution are beyond the control of individuals and demand action by local government and policymakers. Reducing energy consumption improves overall air quality by decreasing the amount of air pollutants, including carbon dioxide, from coal-fired power plants. Homes and commercial buildings use a large amount of energy for heating,cooling, lighting, and other functions,contributing to 12%of the annual greenhouse gas(GHG)emissions in the United States. According to a recent report by the U.S. Department of Energy(DOE), widespread use of LED lighting has the greatest potential impact on energy savings in the United States.By 2030,energy savings,nationally, from LEDs can be up to 300 terawatt- hours(TWh),or the equivalent annual energy output of about fifty(1,000 megawatt)power plants.These energy savings would also reduce greenhouse gas(GHG)emissions by 210 million metric tons of carbon and decrease the electricity consumption equivalent to powering 24 million homes. This project will work to reduce Weld County's energy consumption,and thus improve overall air quality,by replacing the existing light bulbs in all outdoor light fixtures at all Weld County facilities with more energy efficient,LED light bulbs. Currently the County uses Project either Metal Halide(HD)or High Pressure Sodium(BPS)light bulbs in its outdoor lights. Description Both use a greater amount of energy and emit more heat(contributing to greenhouse gas emissions)compared to LED lights. LEDs have recently emerged as one of today's most energy efficient and rapidly growing technologies. LEDs are beginning to be used in a wide range of applications because of their unique characteristics,including compact size,ease of maintenance,resistance to breakage, the ability to focus light in a single direction, and they emit almost no heat.LED lights surpass CFLs in terms of lifespan(up to 10 times longer),durability, and heat production. In 2009 and 2010,CALiPER(Commercial) Available LED Product Evaluation an d d Reporting)testing showed that many LED parking-structure and wallpack fixtures already met or exceeded the light output and efficacy levels of their metal halide,high-pressure sodium, and induction counterparts,while also displaying more uniform light distribution.Evaluated on a lifecycle cost basis,solid-state lighting products,like LEDs, can be competitive in parking lot applications because of their energy savings, directionality,controllability, aesthetic appeal,and maintenance savings. It has been demonstrated that energy-efficiency measures like these can have a positive impact Expected on air quality by reducing air emissions. Environmental It is estimated that this project will result in an energy usage(measured in kilowatt hours) or Public reduction of as much as 56%and result in the following air emission reductions,as great as: Health • CO2(Carbon Dioxide): 239 tons Protection and • SO2 (Sulfur Dioxide): 204 lbs Improvement • NO,, (Nitrogen Oxide): 100 lbs Page 2 of 6 In addition to these air emission reductions, this project has the potential to avoid the amount of coal burned by as much as 12 tons and reduce atmospheric mercury contamination by as much as 526 mg. Based on analyses conducted, it is anticipated that the implementation of this project will result in reduced energy consumption(electricity)and a reduction in air emissions.The success of this project will be evaluated using pre and post energy usage data provided by Xcel Energy and will be reported in kWh reduced and CO2 equivalent. Project Evaluation In the event that project work results in utility rebates,the details and amount of the rebates and will be documented to CDPHE and Noble in the final report. Weld County intends to reinvest Measurable any rebated funds on additional energy efficiency upgrades. Results Project results will be communicated to the public via a press release to local media outlets,as well as social media(Facebook and Twitter). Project results will also be communicated to all municipalities in Weld County, and other interested organizations, upon request, as a resource for those who may be considering similar projects. Matching Budget Description SEP Cost or In- Total Cost Category kind Funds Project Oversight: Toby Taylor Director of Buildings&Grounds $0 $3,112 $3,112 40 hrs. @$56/hr.+Fringe Personnel (39%) (Salaries, Administrative Support: Wages) Gabrielle Vergara Project Budget Environmental Health Program $0 $1,890 $1,890 Coordinator 40 hrs. @$34/hr. +Fringe (39%) Materials Bulbs and Hardware $250,225 $0 $250,225 and Supplies Contractor Labor from outside vendor $83,700 $0 $83,700 Indirect 10%of all direct costs. SO $33,393 $33,393 Costs Total: $333,925 $38,395 $372,320 Page 3 of 6 Estimated costs for the project were developed after speaking with representatives from two different LED lighting companies.The estimated per bulb cost varies between$175 and$650, Budget depending on light fixture type(i.e.,flood light vs.parking lot light pole). Discussion The hourly labor cost is estimated at $100 per hour which includes labor, equipment, and overhead costs for the selected contractor. All work to be completed, including the acquisition and installation of bulbs,will be contracted out. Activities Staff Responsible Date SEP payment of$333,925 Noble November 29, 2015 from Noble to Weld County Develop bid for project,to Weld County Project include bulbs and December 30,2015 Manager installation Contractor selected for bulbs Weld County Project February 29,2016 and installation Manager Semiannual Status Report Weld County Project #1 Submitted to CDPHE& April 30,2016 Manager Noble Project Lighting retrofit Schedule/ implemented Contractor August 30,2016 Work Plan Semiannual Status Report #2 Submitted to CDPHE& Weld County Project October 30,2016 Noble Manager Measurement of energy Weld County Project saved and CO2e emissions January 30,2017 Manager reduced Initial SEP Completion Weld County Project March 15,2017 Report submitted to Noble Manager Final SEP Completion Report submitted to Noble April 30,2017 CDPHE Weld County will submit Semiannual Project Status Reports to the CDPHE SEP Coordinator and Noble by April 30th and October 30th of 2016. Semiannual Status Reports will include the following information: 1. A description of activities completed to date; 2. A budget summary table listing funds expended to date by budget category; 3. A discussion of any anticipated changes to the project scope or timeline;and 4. A description of any operating problems encountered and the solutions thereto. Reporting Requirements Weld County will submit an Initial SEP Completion Report to Noble within 45 days of completion that contains at a minimum: 1. A detailed description of the SEP as implemented; 2. A description of any operating problems encountered and the solutions thereto; 3. Itemized costs, documented by copies of purchase orders and receipts or canceled checks; 4. Certification that the SEP has been fully implemented pursuant to the provisions of the Consent Decree; and Page 4 of 6 5. A description of the environmental and public health benefits resulting from implementation of the SEP with quantification of the benefits and pollutant reductions. Photographs and examples of brochures,educational or outreach materials developed or produced as part of the SEP are also encouraged. Noble will submit the Final SEP Completion Report to the CDPHE SEP Coordinator within 60 days of completion of the SEP that contains at a minimum: 1. A detailed description of the SEP as implemented; 2. A description of any operating problems encountered and the solutions thereto; 3. Itemized costs,documented by copies of purchase orders and receipts or canceled checks; 4. Certification that the SEP has been fully implemented pursuant to the provisions of the Consent Decree;and Reporting 5. A description of the environmental and public health benefits resulting from Requirements implementation of the SEP(with quantification of the benefits and pollutant (continued) reductions,if feasible). Photographs and examples of brochures,educational or outreach materials developed or produced as part of the SEP will be provided to the extent Weld County provides same to Noble. Noble shall include in any public statement,oral or written making reference to the SEP the following language:"This project was undertaken in connection with the settlement of an enforcement action taken by the Colorado Department of Public Health and Environment,Air Pollution Control Division, for violations of air quality laws and regulations." Noble shall submit a SEP payment of three hundred thirty-three thousand,nine hundred twenty-five dollars($333,925)to Weld County for the project described above. Weld County SEP Payment Attention: Toby Taylor Requirements 1150 0 Street Greeley,CO 80631 Noble shall provide CDPHE's SEP Coordinator with a copy of the check by November 29, 2015. To be completed in the event of a SEP agreement only: I,RM Patteson,certify on the behalf of Noble Energy that Noble Energy agrees to fund the Supplemental Environmental Project as described in this SEP Agreement. Signed Date RM Patteson Vice President of DJ Basin Business Unit Noble Energy Page 5 of 6 This SEP has been reviewed and approved by the Colorado Department of Public Health and Environment. (:/k■ `�""' 1 d'.Cf. ' //V/ Signed E/Z+ot, ;k2nt- rcare✓N4Or- Date Heather Wuollet,Compliance Manager Air Pollution Control Division Colorado Department of Public Health and Environment } „ h ( i5 Signed Date Lauren McDonell, SEP Coordinator Sustainability Unit Colorado Department of Public Health and Environment Page 6 of 6 Hello