Cleveland Heights’ green energy upgrade will pay for itself through guaranteed savings

CLEVELAND HEIGHTS, Ohio - Officials project that an $18 million guaranteed energy savings performance contract for a sweeping upgrade of city facilities and infrastructure will pay for itself over the life of the agreement.

"It's not only 'green,' it's also financially sustainable," Leopardo Energy officials told council at an earlier presentation, prior to approving the initial comprehensive contract in September.

There remained some questions then about whether any of the work would be funded through the city's American Rescue Plan Act (ARPA) federal allocation, which does provide for improvements to local infrastructure .

Leopardo Partnership Executive Heather Garay said that ARPA-funded projects will be handled by other contractors - including the Cain Park Evans Amphitheater roof .

Not that there isn't enough work to go around - an earlier energy efficiency audit by Leopardo showed that as much as two-thirds of the rooftops on city buildings are "past their useful life."

City Hall is another prime candidate, where Garay said that the solar panels - installed on that roof by a previous energy conservation company - will be removed while the roof itself gets replaced.

The solar array, described as "functioning wonderfully," will then get re-installed.

In addition to the roof itself, the "pyramid" atop City Hall also needs some attention, drone surveys show.

With the police station housed in the lower level, Leopardo will focus on both fire stations, Cumberland Pool and the City Service Center - and possibly some of the police annexes.

Garay said the Cleveland Heights Community Center remains in good shape , in what was a two-year, $6 million, green energy project completed in 2019.

Leopardo, which completed work on South Euclid city buildings in 2022, plans to get started on Cleveland Heights in the spring and wrap up by next November.

Responding to an earlier question from Cleveland Heights City Council President Tony Cuda, Leopard officials emphasized that "if you don't achieve the savings we guaranteed, we have to write you a check."

With that in mind, council approved a follow-up ordinance on Monday (Nov. 4) calling for installment payments, including 20 percent ($3.6 million) within the first two years of the 20-year contract.

The installment contract also calls for an interest rate "not to exceed 5 percent," although on Monday, Leopard representatives were looking at the possibility of a 4.2 percent rate, barring any holdups.

In addition to aging roofs, the Leopard preliminary energy study of Cleveland Heights municipal buildings showed that 77 percent of the city's mechanical systems are past their useful life, along with more than half of the lighting systems.

Councilwoman Gail Larson, who chairs both the Finance and the Municipal Services and Environmental Sustainability committees held numerous meetings with Leopardo, calling the drone tour "eye-opening."

Cuda asked how the city would "monitor our savings against what we pay."

Garay said there will be a follow-up with the city after "substantial completion" in November 2025 and then annual updates.

She added that the company's headquarters are in Chicago, but they have opened a regional office in Cleveland.