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City Council Minutes June 13, 2011 Page 3 MOVED BY COUNCILMEMBER ZERWAS AND SECONDED BY • COUNCILMEMBER GUMPHREY TO ACCEPT SCENARIOS AS OUTLINED IN THE STAFF REPORT FOR THE 171sT AREA AUAR. MOTION CARRIED 5- 0. 5.4. Project Conserve Phase III Ms. Haug along with Mr. Zehringer presented the staff report. They outlined the history of Project Conserve with a PowerPoint presentation. Ms. Haug explained that Energy City has become a unique marketing tool that has attracted the attention of a worldwide audience. She handed out information from the U.S. State Department International Visitor Leadership Program, and explained the great reputation Elk River has received from them as one of the most requested stops in the U.S. In order to continue with providing residents and business alike with creative energy efficient initiatives, the City and ERMU is requesting approval to continue Project Conserve and begin Phase III, anticipating around 500 participants (to include apartment dwellers and commercial businesses). The program will run from November into 2012. ERMU has budgeted funds to help run the program and staff is requesting X10,000 be budgeted for 2012 to fund further training to conduct commercial audits. A letter was scheduled to be mailed out tomorrow and a decision on funding was necessary tonight in order to keep the program on schedule. Councilmember Zerwas felt Project Conserve should be funded through ERMU, stating it appeared to be a program that helps residents reduce energy use. He also had concerns about the building inspectors using staff time to perform energy audits fox residents at reduced rates. He also felt frustrated that a decision had to be made that evening. Mr. Zehringer explained that funding should be shared by both parties as it shows a good partnership. He also stated the city handles the garbage portion of energy reduction and natural gas or transportation reduction is also considered part of energy reduction. Councilmember Gumphrey disagreed with Councilmember Zerwas and felt the partnership was a valuable one. Ms. Haug stated if funding wouldn't be available, she would look into finding available grant funds. Mayor Dietz stated he could see both sides but had concerns with building inspectors and use of staff time. He requested that an energy audit rate structure be compiled to determine if the city can recoup the costs of performing audits. Councilxnember Motin liked the idea of a partnership with ERMU but also had concerns with building inspectors staff time. He agreed with Mayor Dietz and Councilmember Zerwas and stated he supports Energy City's concept and recognition and awards were great publicity, but wasn't interested in spending more money out of budget. MOVED BY COUNCILMEMBER WESTGAARD AND SECONDED BY COUNCILMEMBER MOTIN TO APPROVE UP TO $10,000 FOR PHASE III OF PROJECT CONSERVE WITH STAFF FINDING AVAILABLE GRANT MONEY TO ASSIST WITH THE BUDGET. MOTION CARRIED 4-1. COUNCILMEMBER ZERWAS OPPOSED. •