HomeMy WebLinkAboutA025 - Resolution establishing an energy upgrade program and authorizing staff to submit a federal loan application for the USDA Rural Energy Savings Program in the amount up to $15,000,000ITEM #:27
DATE:09-09-25
DEPT:ELEC
SUBJECT:ELECTRIC ENERGY UPGRADE PROGRAM AND USDA RURAL ENERGY
SAVINGS PROGRAM (RESP)
COUNCIL ACTION FORM
BACKGROUND:
In November 2024, the City of Ames submitted a letter of intent to apply for the Rural Energy
Savings Program (RESP) administered through the United States Department of Agriculture
(USDA). The City's proposal is to use the RESP funds to operate an on-bill financing program
to implement home energy retrofits, which would ultimately reduce energy use in the
community.
Through this program, the City would serve as a pass-through entity, using RESP
dollars to operate a revolving fund for the program. Funds would be drawn down from
the USDA as projects occur, and the City would utilize these to pay contractors directly
for individual projects. The City would then recoup investments over the customer
repayment period of 10-15 years for each project. At the end of the 20-year RESP loan
term, the City would remit all funds back to USDA.
On May 2, 2025, USDA responded, inviting the City of Ames to submit a full RESP loan
application for an amount up to $15 million. If the City is awarded these funds, the amount
provided will need to be repaid within 20 years, but the City would be charged no interest.
As part of the next steps in the application process, USDA requires that the City adopt
a resolution establishing the energy upgrade program. The goals of the program are to
increase access to energy efficiency retrofits, reduce peak demand, improve home health and
comfort, and stimulate economic development by hiring local contractors, while addressing the
significant barrier many homeowners face with investing in energy efficiency and renewable
energy improvements.
It should be noted that the programs discussed are only a vailable to City of Ames residents
who are also electric customers of the City’s utilities. It may be feasible to open the programs
up to non-electric customers at a later time; however, the project funding repayment charges
would need to be tied to the customer’s monthly water bill.
The program aligns with the following City plans and goals:
City Council Goal: We value environmental sustainability. Pursue initiatives that use new
and emerging technologies or processes to assist in meeting the Climate Action Plan.
Climate Action Plan
Big Move #1: Renewable Energy Generation
Low-carbon action 1.4: Solar PV on roofs
Big Move #2: Building Retrofits
Low-carbon action 2.3: High efficiency hot water in retrofit of homes
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Low-carbon action 2.5: Retrofits of homes
Low-carbon action 2.6: Retrofits of nonresidential buildings
Low-carbon action 2.7: High-efficiency hot water in retrofits of non-residential
buildings
Low-carbon action 2.8: Heat pumps in non-residential retrofits
Low-carbon action 2.9: Heat pumps in residential retrofits
On-Bill Energy Efficiency Financing Model
In the on-bill financing model, the utility offers upfront low or no-interest investment for energy
upgrades, which may be too substantial in cost for a homeowner to consider implementing on
their own. The costs of the upgrades are repaid through the customer ’s monthly utility bill. The
City’s role in this model is to finance energy-efficient projects that customers choose to
implement.
Through the program, c ustomers experience much lower up-front costs to upgrade their
homes with energy-efficient equipment and avoid paying high interest rates through traditional
financing (e.g., bank loans). In the U.S., three out of four residential HVAC projects are
financed, often resulting in thousands of dollars in interest payments charged over the life of
an HVAC loan.
The alternative, an on-bill financing program model, enables savings while supporting the
adoption of efficient, electric equipment. While this would be the first program of its kind in
Iowa, this on-bill model has been successfully implemented in communities in other states.
There are approximately 100 similar programs in the country.
A 2022 study collected performance data on 24 similar programs in 10 states , including mostly
electric cooperatives, with some investor-owned utilities and municipal utilities. Utilities ranged
in size from 7,000 to over 1 million customers, and program inception dates ranged from 2002
to 2021. Cumulatively, there was over $50 million invested in almost 6,000 projects, with write-
off (uncollectable) rates ranging from <0.1% to 0.22%.
Energy Upgrade Program: SmartSave
The program being proposed for Ames, under the name SmartSave, is designed to make
installing upgrades straightforward and economical for Ames Electric customers. If the RESP
loan application is successful, the City would partner with a third-party program
operator to administer the program and handle most day-to-day activities. The program
operator would be selected through a competitive RFP process, with estimated annual
program operator costs of $96,000. The program operator would also work collaboratively with
staff to complete program design and start contractor engagement.
Contractors will be trained in the program and provided educational materials to share
with customers. Active participation by local contractors will be essential to a
successful program. The City would not assume responsibility for or issue any guarantees or
warranties regarding the performance of any contractor.
The SmartSave program would contain three tracks: 1) HVAC Replacement, 2) Clean Energy,
and 3) Whole-home Retrofits. The initial focus will be on track 1: HVAC Replacement. The
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other two tracks would start in year two.
Track 1: HVAC Replacement would offer options for customers whose HVAC systems are
nearing or have reached the end of their useful life. A streamlined process involving the
program operator's mobile application will enable contractors to quickly gather basic
information and present the customer with proposed investment and repayment terms. If the
customer chooses to participate, the City investment would cover the majority of the system
through the program, and the customer would pay a significantly reduced up-front cost to the
contractor. Similarly, Track 2: Clean Energy would enable customers to install solar with
significantly reduced up-front cost.
Under Track 3: Whole-home Retrofits, customers would start by signing up for a free energy
audit, where a qualified auditor gathers comprehensive data about the property. The program
operator then uses this data to model potential energy efficiency upgrades and predict
savings. This complex energy and financial modeling incorporates historical utility usage,
climate data, and information about the property such as heating sources, age, and air
tightness. The model identifies projects that qualify for financing, if any, and communicates
this to the customer in an offer.
The offer could include qualifying upgrades such as heat pump, water heater, EV charger,
insulation, or solar panels, and also include preliminary investment and repayment terms. The
customer then selects which upgrades to move forward with and chooses a contractor.
Customers would be free to choose any licensed contractor who has been trained in the
SmartSave program to perform the work.
All potential upgrades eligible for RESP funding are included in Attachment 4. Table 1 lists the
energy efficiency upgrades that staff intends to include in the program.
Table 1. Eligible Upgrades and Estimated Participation, Cost, Incentives, and Useful Life.
Track Eligible Upgrades
Average
Project
Cost
Target
Number of
Projects
per Year
Target %
of Total
Investment
Expected
Useful
Life
(years)
HVAC
Replacement
All-electric and dual-fuel
heat pumps.$12,000 80 50%18
Clean Energy
Solar, electrical panel
upgrades if necessary,
battery storage.
$17,000 15 15%20
Whole-Home
Retrofit
HVAC, electric water
heaters, EV charging,
weatherization, solar,
battery storage.
$18,050*40 35%10-25
*The average project cost for whole-home retrofit projects was determined by using a
weighted average for adoption of the eligible upgrades. The maximum amount financed for a
residential project is $30,000. Weatherization could include improved insulation, weather
stripping, window and door upgrades, and any other building envelope improvements.
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Repayment terms would be limited to 15 years or 80% of the upgrade's useful life, whichever
is less. Customers must agree to maintain upgrades per the manufacturer's instructions. The
on-bill charge would stay with the property in the event of a customer move-out or sale. Notice
of the repayment arrangement would be filed with the Recorder, with the anticipation that a
lien search would notify incoming property owners. On-bill charges are attached to the meter
and remain until the City's costs are fully recovered.
Feasibility Study
On May 13, 2025, the City Council authorized staff to work with the Iowa Economic
Development Authority and the Energy Efficiency Institute on a feasibility study. This project is
being worked on in parallel to the RESP application. The study has answered key outstanding
questions and concerns about the financing model, including program design, value to the
utility, and detailed program financials.
The feasibility study is being funded by the Iowa Economic Development Authority. Preliminary
results indicate that the program will be economically feasible if it is structured as outlined. The
study will continue through the end of September 2025.
The request to establish the program and authorize staff to apply for the RESP loan is before
Council now because the USDA's deadline to apply for the loan is September 10, 2025
(extended from the original deadline in July). It should be noted that the Council resolution
establishing the program and authorizing staff to apply for the USDA loan does NOT
obligate the City to receive the loan funds and implement the program. If the City's loan
application is successful, staff will return to seek Council's authorization on a loan
agreement.
RESP Loan
If the loan application is successful, the RESP loan terms would be for up to $15 million repaid
over 20 years at 0% interest. USDA may choose to fund the application at a lower amount, or
not at all. Even if awarded the full amount, loan funds are drawn down as they are used,
and the City would maintain full control over the scale of the program and the amount
of funds borrowed. Program year 1 would be treated as a pilot year, and the program will not
exceed $500,000 investment in the pilot year. More details on program financials can be found
in Attachment 5. Financial Forecast.
Additionally, USDA requires RESP loans to be secured with collateral, ensuring they are
repaid in the event of a default. Staff proposes to use electric utility fund balance as
collateral. Electric Services maintains approximately $50,000,000 in reserve funds. Due to the
revolving nature of the loan and repayment, USDA borrowing likely would not exceed
$10,000,000 at any one time. The City and USDA would agree on a process involving a joint
account where the City would maintain a balance no less than the outstanding loan amount.
USDA would hold priority over those funds in the event of a default by the City. As previously
mentioned, staff estimates the default rate, or write-off rate, for customer financing would be
less than 0.5%.
The City would charge a low, fixed fee on its investment offered to customers. USDA allows
RESP programs to charge up to a 5% fee. All fee revenue would be used to cover the
program operator cost. Staff estimates the City will need to charge a program fee of 0.25% to
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cover program costs. The City's financial commitment to administer the program would include
operations, loan loss reserve, program marketing, and staff time.
Program Start-Up – Start-up costs will be incurred before program launch. This includes
establishing the contractor network and designing program documents and processes,
outreach and marketing, and legal expenses. These one-time costs are estimated to be
$50,000, also to be paid for by Electric utility funds.
Operations – Program operational costs are estimated to be approximately $96,000 per
year. These include energy audits, program operator software use, administrative costs,
and quality assurance. Electric utility funds would pay for $75,000 of these costs, and
fees charged to participating customers would pay for the remaining $21,000 each year.
Loss Reserve – Write-offs, or uncollectables, have been estimated based on data from
numerous existing similar programs and the current Ames utilities write-off rate. It is
estimated that the program could result in $75,000, or 0.5%, in write-offs over 20 years,
and could be covered by existing Electric utility funds or by increasing the program fee, if
write-offs occur.
Staff Time – The Electric Services, City Manager's Office, Communications and
Outreach, and Customer Service teams would need to invest staff time to administer the
program in partnership with the program operator. Robust oversight of the program is
needed for quality assurance. Customer Service would manually apply and remove bill
charges to individual accounts at the start and end of each customer’s financing term.
Program costs are estimated in Table 2. Costs are dependent on the number of projects
completed, and were modeled based on full expenditure of $15 million in capital over 10
years. If fewer projects are completed and capital investment is less, program costs would
also decrease. Staff estimates direct costs to the City of $125,000 in year one, and $75,000
each in years 2 through 10.
Table 2. Uses and Sources of Funds
Use of Funds Source of Funds Amount
Feasibility Study Iowa Economic Development Authority Grant $37,500
Program Start-Up (marketing,
legal fees, program design)City of Ames Electric Utility Fund $50,000
Operations
(Program Operator)
$96,000/year
City of Ames Electric Utility Fund $75,000/year
USDA RESP Loan (program fee)$21,000/year
Working Capital USDA RESP Loan $15,000,000
Loss Reserve City of Ames Electric Utility Fund
Write-offs
(est.
$75,000)
The full contents of the RESP loan application are attached in Attachments 1-8, including
several legal documents that have been reviewed and approved by the Legal Department.
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ALTERNATIVES:
1. Approve establishing an energy upgrade program and authorizing staff to submit a
federal loan application for the USDA Rural Energy Savings Program in the amount up to
$15,000,000.
2. Do not establish an energy upgrade program or authorize staff to submit a federal loan
application.
3. Refer back to staff.
CITY MANAGER'S RECOMMENDED ACTION:
The proposed energy upgrade program would make significant progress towards Climate
Action Plan goals and result in cost savings for utility customers. The program would also
increase access to energy efficiency by removing the barrier of high up-front costs and
borrowing costs. Energy efficiency retrofits also benefit the utility through peak demand
reductions.
The program and federal loan application present risks, including write-offs, equipment
maintenance issues, and resident turnover. The program should start with a pilot phase and
scale slowly and methodically as the City and utility customers become more familiar with the
model. Staff believes repayment through the utility bill minimizes the risk of write-offs, as other
similar programs have experienced.
The next steps in exploring this energy upgrade program is for Council to establish an energy
upgrade program and authorizing staff to submit a federal loan application for the USDA Rural
Energy Savings Program in the amount up to $15,000,000. If awarded, staff will return for
Council approval of an agreement with USDA. If not awarded, staff will reevaluate the
program. Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, as described above.
ATTACHMENT(S):
1. Cover Letter.pdf
2. Board Resolution.pdf
4. Multi-tier Environmental Agreement.pdf
5. Financial Forecast.pdf
6. & 7. City of Ames RESP Loan Application.pdf
8. Legal Documents (combined).pdf
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July 22, 2025
Rural Utilities Service, Electric Programs
U.S. Department of Agriculture
1400 Independence Avenue, S.W.
STOP 1560, Room 5138, South Building
Washington, D.C. 20250-1510
Attn: Mr. Christopher Mclean
Subject:City of Ames
Rural Energy Savings Program (RESP) Loan Application
IRS Taxpayer ID: 42-6004218
Unique Entity Identifier (UEI): UBM7TLNHUSW9
Dear Mr. McLean:
We are forwarding for your consideration our completed Rural Energy Savings Program (RESP) loan
application in the amount of $15,000,000, along with a copy being forwarded to our General Field
Representative, Whitney Baragary.
As required under the loan application checklist, the following are attached to this cover letter:
1. Application Cover Letter signed by highest ranking officer.
2. Signed Board Resolution approving the establishment of the program.
3. Articles of Incorporation and Bylaws or other applicable organizational documents.
4. Multi-Tier Action Environmental Compliance Agreement.
5. 10 Year Long Range Financial Forecast to include:
a. Current and Projected cash flows
b. Pro forma balance sheet
c. Financial goals for margins, debt service, coverage, equity, etc.
d. Assumptions, supporting data, analysis
e. Current and projected income and expenses
f. Itemized budget and schedule, discussion of loan loss reserve
g. Sensitivity analysis if required by RUS
6. Implementation work plan.
7. Measurement and Verification plan.
8. Additional Federal compliance forms as provided in NOSA
a. Attorney’s Opinion Letter
b. Form 400
c. Standard Form 100 (N/A if less than 100 full time employees).
i. The City of Ames provides Form EEO-4 in place of Standard Form 100. As a
local government entity, the City of Ames does not file Standard Form 100, and
EEO-4 contains the equivalent information.
d. Lobbying Certification
e. Certification on Federal Debt Delinquency
In addition to the items required under the loan application checklist, we further clarify the following items:
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1. The loan application does not include funds to finance:
a. The construction or acquisition of any building identified as located in a flood hazard area.
b. New equipment, materials or supplies in any building identified as located in a flood hazard
area.
2. All funds in this loan application will be used within the State of Iowa.
3. The City of Ames serves Story County, Iowa.
4. There are no threatened actions by third parties that could adversely affect our financial conditions.
5. There are no State of Iowa regulatory proceedings pending against the Borrower.
6. The City of Ames does anticipate changes in retail rates, regardless of the RESP application
outcome. Rates were last increased in 2017 by 4%, and marginally reduced in 2024. A 1.5% rate
increase will go into effect no later than June 2026.
7. The true and correct legal name of the borrower is ‘City of Ames’.
8. The headquarters address of the borrower is 515 Clark Ave, Ames, IA 50010.
Sincerely,
John Haila
Mayor
City of Ames
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RESOLUTION ESTABLISHING THE SMARTSAVE PROGRAM
WHEREAS, the City of Ames has developed the SmartSave program for the rural areas in our service territory
intended to be funded with the proceeds from the United States Department of Agriculture’s Rural Energy
Savings Program;
WHEREAS, the City of Ames will offer tariffed on-bill financing to eligible customers for qualified energy
efficiency and renewable energy projects;
WHEREAS, the City of Ames has developed a comprehensive implementation work plan and financial forecast
for the SmartSave program;
WHEREAS, the City of Ames has developed a comprehensive measurement and verification program in
connection with the SmartSave program;
WHEREAS, the financial forecast, the implementation work plan and the measurement and verification
program, and related documents will be considered by the Rural Utilities Service, an agency of the United States
Department of Agriculture, in making a determination to make a financially feasible and adequately secure loan
to City of Ames;
WHEREAS, the City of Ames intends to submit a loan application under the Rural Energy Savings Program Loan
as prescribed in the Notice of Solicitation for Applications (NOSA) published in the Federal Register, Vol. 81, No.
119 on June 21, 2016;
NOW THEREFORE BE IT RESOLVED, that the City of Ames approves the implementation work plan, the financial
forecast and related documents in connection to the SmartSave program,
BE IT ALSO RESOLVED, that the City of Ames’s officers, managers, and staff are authorized to carry out all
necessary actions –including but not limited to the executing and attesting all necessary documentation - in
connection with the loan application to participate in the Rural Energy Savings Program as provided in the NOSA;
BE IT FURTHER RESOLVED that the City of Ames’s officers are authorized to apply and take a loan in the amount
of $15,000,000 to carry out the SmartSave program;
BE IT ALSO RESOLVED, that the loan shall bear a maturity date to cover an approximate period of 20 years.
CERTIFICATION OF SECRETARY
I, [insert applicable name], Secretary of City of Ames, do hereby certify that the above is a true and correct
copy of a resolution adopted at the meeting of the City Council of the City of Ames on September 9, 2025, at
which a quorum was present and voted.
________________________________________
[insert applicable name], Secretary
[ SEAL ]
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Multi-Tier Action Environmental Compliance Agreement for
Energy Efficiency and Conservation Loan Program and Rural Energy Savings Program
In accordance with § 1970.55(c), RUS will maintain ultimate responsibility for and control over the
environmental review process of multi-tier actions receiving funding through RUS re-lending programs
including the Energy Efficiency and Conservation Loan Program and the Rural Energy Savings Program.
To assist RUS in meeting its environmental review requirements, [primary recipient] agrees to conduct
the following actions in accordance with §§ 1970.55(a)(1-4).
1) Prior to re-lending to a qualified consumer, [primary recipient] will:
a) Conduct a screening of all proposed uses of funds to determine if each consumer application
proposed for funding or financing falls within § 1970.53 or § 1970.54 as a Categorical
Exclusion (see Attachment 1).
b) Obtain sufficient information from a consumer to evaluate proposals under § 1970.53 or to
evaluate an Environmental Report (ER) under § 1970.54 in determining if extraordinary
circumstances (as described in § 1970.52) are present.
c) Document conclusions regarding the applicability of a Categorical Exclusion for each
approved consumer application, and maintain these in an official environmental file.
d) Refer to RUS for further environmental review:
i) Activities that do not meet the criteria established in Attachment 1
ii) Consumer applications with extraordinary circumstances (see § 1970.52) or where there
is non-concurrence with a finding under Section 7 of the Endangered Species Act and or
Section 106 of the National Historic Preservation Act;
iii) Consumer applications that may be in violation of § 1970.12, Limitations on actions
during the NEPA process
2) [Primary recipient] will maintain documentation from (1)(c) for each approved consumer
application in the [primary recipient]’s official records for RUS verification as required by
§1970.55(b). The primary recipient must retain documentation for 5 years, to be made
available to RUS upon request.
3) [Primary recipient] understands that the terms of this agreement will be monitored and verified
in RUS compliance reviews and other required audits as required by 1970.55(b).
RUS has provided [primary recipient] a copy of the agency’s Environmental Policies and Procedures, 7
CFR Part 1970.
In accordance with § 1970.55(b), [primary recipient] understands that failure to meet the requirements
of this agreement will result in penalties that may include written warnings, withdrawal of Agency
financial assistance, suspension from participation in RUS programs, or other appropriate action.
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I, [primary recipient] hereby agree to the terms and conditions as described above.
Signature of General Manager or equivalent
Title
Date
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Attachment 1 – Example activities eligible for multi-tier program environmental compliance implementation
1. Lighting –
2. Heating, Ventilation, and Air Conditioning (HVAC) –
–
–
–
3. Building Envelope Improvements –
–
–
–
Any material listed in Appendix A of DOE’s Weatherization
4. Water Heaters
5. Compressed Air Systems
6. Motors
7. Boilers, dryers, heaters, and process-related equipment –
specific equipment not otherwise listed (commercial
coolers/freezers)
8. Demand Management (load shifting)
9. Energy Audits
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Attachment 1 – Example activities eligible for multi-tier program environmental compliance implementation
10. On/off Grid Renewable Energy Systems
11. Energy Storage Devices
12. Replacement of existing fuel consuming equipment
13. Energy efficient appliance upgrades fixed to real property
14. Irrigation or water system efficiency improvements
15. Necessary and incidental activities/investments directly
related to implementation of an eligible measure
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Year 1 2 3 4 5 6 7 8 9 10 Years 1-10
Projects & Financing
Number of heat pumps 50 75 75 75 75 80 80 80 90 90 770
Number of solar arrays 0 10 10 15 15 20 20 20 20 20 150
Number of whole-home retrofits (WH)0 20 20 30 50 50 50 50 50 50 370
Total number of projects 50 105 105 120 140 150 150 150 160 160 1,290
Heat pump investment 480,000$ 720,000$ 720,000$ 720,000$ 720,000$ 768,000$ 768,000$ 768,000$ 864,000$ 864,000$ 7,392,000$
Solar investment -$ 150,000$ 150,000$ 225,000$ 225,000$ 300,000$ 300,000$ 300,000$ 300,000$ 300,000$ 2,250,000$
WH retrofit investment -$ 288,800$ 288,800$ 433,200$ 722,000$ 722,000$ 722,000$ 722,000$ 722,000$ 722,000$ 5,342,800$
Total investment 480,000$ 1,158,800$ 1,158,800$ 1,378,200$ 1,667,000$ 1,790,000$ 1,790,000$ 1,790,000$ 1,886,000$ 1,886,000$ 14,984,800$
Rebates issued 50,000$ 127,000$ 127,000$ 153,000$ 175,000$ 195,000$ 195,000$ 195,000$ 205,000$ 205,000$ 1,627,000$
Customer Repayment
Principal (to USDA)31,444$ 107,433$ 183,612$ 274,354$ 384,241$ 510,994$ 647,910$ 796,657$ 967,971$ 1,156,878$ 5,061,493$
Program fee (to program costs)1,200$ 4,018$ 6,647$ 9,633$ 13,115$ 16,629$ 19,827$ 22,682$ 25,405$ 27,700$ 146,857$
Total customer repayment 32,644$ 111,451$ 190,259$ 283,987$ 397,356$ 527,623$ 667,737$ 819,339$ 993,376$ 1,184,579$ 5,208,350$
USDA RESP Loan
Beginning balance 480,000$ 448,556$ 1,499,924$ 2,475,112$ 3,578,958$ 4,861,717$ 6,140,723$ 7,282,813$ 8,276,156$ 9,194,186$
End balance 448,556$ 341,124$ 1,316,312$ 2,200,758$ 3,194,717$ 4,350,723$ 5,492,813$ 6,486,156$ 7,308,186$ 8,037,307$
Program Costs
Special advance 100,000$ 100,000$
Start-up costs (50,000)$ (50,000)$
HVAC replacement admin costs (25,000)$ (30,000)$ (30,000)$ (30,000)$ (30,000)$ (31,000)$ (31,000)$ (31,000)$ (33,000)$ (33,000)$ (304,000)$
Solar admin costs -$ (17,000)$ (17,000)$ (18,000)$ (18,000)$ (19,000)$ (19,000)$ (19,000)$ (19,000)$ (19,000)$ (165,000)$
WH retrofit admin costs -$ (31,500)$ (31,500)$ (39,750)$ (56,250)$ (56,250)$ (56,250)$ (56,250)$ (56,250)$ (56,250)$ (440,250)$
Total admin costs (75,000)$ (78,500)$ (78,500)$ (87,750)$ (104,250)$ (106,250)$ (106,250)$ (106,250)$ (108,250)$ (108,250)$ (959,250)$
City of Ames DSM fund 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 75,000$ 750,000$
Annual cash flow (excluding program fee)100,000$ (3,500)$ (3,500)$ (12,750)$ (29,250)$ (31,250)$ (31,250)$ (31,250)$ (33,250)$ (33,250)$ (109,250)$
Program balance (including program fee)101,200$ 101,718$ 104,865$ 101,748$ 85,613$ 70,993$ 59,569$ 51,002$ 43,157$ 37,607$ 37,607$
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Year 11 12 13 14 15 16 17 18 19 20 Grand Total
Projects & Financing
Number of heat pumps 770
Number of solar arrays 150
Number of whole-home retrofits (WH)370
Total number of projects 1,290
Heat pump investment $7,392,000
Solar investment $2,250,000
WH retrofit investment $5,342,800
Total investment -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 14,984,800$
Rebates issued -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,627,000$
Customer Repayment
Principal (to USDA)1,159,771$ 1,162,670$ 1,165,577$ 1,168,491$ 1,171,412$ 1,141,697$ 1,065,744$ 989,601$ 898,346$ -$ 14,984,800$
Program fee (to program costs)24,808$ 21,909$ 19,002$ 16,088$ 13,167$ 10,238$ 7,384$ 4,720$ 2,246$ -$ 266,420$
Total customer repayment 1,184,579$ 1,184,579$ 1,184,579$ 1,184,579$ 1,184,579$ 1,151,935$ 1,073,128$ 994,320$ 900,592$ -$ 15,251,220$
USDA RESP Loan
Beginning balance 9,923,307$ 8,763,537$ 7,600,866$ 6,435,290$ 5,266,799$ 4,095,387$ 2,953,690$ 1,887,947$ 898,346$ -$
End balance 8,763,537$ 7,600,866$ 6,435,290$ 5,266,799$ 4,095,387$ 2,953,690$ 1,887,947$ 898,346$ -$ -$
Program Costs
Special advance (100,000)$
Start-up costs (50,000)$
HVAC replacement admin costs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (304,000)$
Solar admin costs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (165,000)$
WH retrofit admin costs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (440,250)$
Total admin costs -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (959,250)$
City of Ames DSM fund -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 750,000$
Annual cash flow (excluding interest)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (209,250)$
Program balance (including interest)62,416$ 84,324$ 103,327$ 119,415$ 132,582$ 142,820$ 150,205$ 154,924$ 157,170$ 57,170$ 57,170$
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0.25% interest rate
80% audit-to-retrofit conversion rate (WH only)
80% average percent of total project cost covered by utility investment
Assumptions
$15,000,000 RESP Loan
$15,000 flat annual administration costs per track
$200 per-project administration fee (all projects)
$500 energy audit cost (WH only)
$50,000 start-up costs (legal fees, marketing, contractor engagement, program design)
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USDA Rural Energy Savings Program (RESP) Loan Application
Contents
Program Overview ........................................................................................................................................ 2
Feasibility Study .................................................................................................................................... 3
Program Timeline .................................................................................................................................. 3
Financial Forecast - 7 CFR 1719.5(b)(3)(i)(E) .............................................................................................. 4
Sources and Uses of Funds .................................................................................................................. 4
10-Year Financial Forecast ................................................................................................................... 4
Collateral for RESP Loan ...................................................................................................................... 4
Implementation Work Plan - 7 CFR 1719.5(b)(3)(i)(F) ................................................................................. 5
(1) Marketing Strategy ....................................................................................................................... 5
(2) Program Description and Eligible Activity/Investment ................................................................. 6
(3) Financial and Operational Risk .................................................................................................. 11
(4) Measurement and Verification (M&V) Plan ............................................................................... 11
Reporting - 7 CFR 1719.12 ......................................................................................................................... 12
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Program Overview
The City of Ames operates a municipal electric utility and serves the Ames community in central Iowa.
While Ames has administered a rebate program for years, a more comprehensive tariffed on-bill (TOB)
energy efficiency incentive program will enable deeper retrofits in more homes and businesses. High up-
front costs and lack of access to financing are significant barriers to investing in energy efficiency and
renewable energy improvements. This program will increase energy affordability, reduce peak demand,
improve home health and comfort, and stimulate local economic development by hiring local contractors.
Through the USDA RESP Loan, Ames will recover 100% of these investments through a fixed tariff
charge on the participating customer’s utility bill. The cost-recovery tariff will be less than the estimated
energy savings, resulting in a cash flow neutral or net savings arrangement for the customer. Priority
populations include low-income households, renters, and residents in manufactured and multifamily
housing.
Benefits to Ames Electric customers include:
• Reduced up-front costs for efficiency and renewables
• Lower energy use and environmental impact
• Attractive incentive offerings
• On-bill tariff associated with the meter that automatically transfers to new utility customers if the
property is sold, or is paid off in full at the time of sale
• Simple qualifications -- no credit score or income requirement to be eligible
• Home energy assessment
• Qualified contractors
• Improve home health and comfort
Benefits for the City of Ames include:
• Reduce long-term energy costs to the utility and customers
• Reduce peak power demands, decreasing rate pressure to build new generation capacity
• Support community investment in high-efficiency buildings and renewable energy infrastructure
• Increase utility and customer engagement
• Reduce community greenhouse gas emissions
• Increase efficiency of the existing building inventory
• Leverage federal funding to create a more efficient and renewable Ames
• Economic development by partnering with local contractors
The program is designed to make installing upgrades straightforward for Ames Electric customers.
Typical barriers to energy efficiency, such as identifying the right upgrades, understanding long -term
benefits, obtaining transparent pricing, and high up-front costs, are all addressed by the program. The
City would partner with a third-party program operator to administer the program.
The program would contain three tracks: HVAC replacement, solar, and whole-home retrofits. Initial focus
will be on the HVAC replacement track, with the solar and whole-home retrofit tracks starting in year 2.
The HVAC replacement program offers options for customers whose HVAC systems are nearing or have
reached the end of their useful life. The program would include all-electric and dual-fuel systems. A
streamlined process involving the program operator's mobile application will enable contractors to quic kly
gather basic information and present the customer with proposed incentive terms. The City would invest
as much of the cost of the system through the program, and the customer would then pay a much lower
up-front cost to the contractor.
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Similarly, the solar track would enable customers to install solar arrays with significantly reduced up-front
cost. The solar track would involve an initial application followed by permitting and interconnection
processes required by City policy. Streamlining the HVAC and solar tracks by not performing an energy
audit and focusing only on specific equipment results in a leaner and more cost-effective program. This
approach reduces administrative costs and therefore enables the program to do more projects and
charge less interest.
Under the whole-home retrofit track, customers start by signing up for a free energy audit, where a
qualified auditor gathers comprehensive data about the property. The program operator uses this data to
model potential energy efficiency upgrades and predict savings. The model identifies proje cts that qualify
for the program, if any, and communicates this to the customer in an offer. Eligible measures are listed in
section 2(i) ‘costs and schedule for each activity’. The customer then selects upgrades from the offer to
move forward with.
In all tracks, customers would be free to choose any participating licensed contractor to perform the work.
To provide accurate up-front costs and take advantage of bulk pricing, the City and program operator
would build a contractor network before program launch. This network would familiarize contractors with
the program and establish transparent pricing for common upgrades. Contractor engagement and active
participation are important to a successful TOB program.
In year 2, the City and program operator will consider adding a commercial and industrial track. The
availability of capital and the ability to procure quality investment-grade energy audits for commercial and
industrial facilities will be the primary considerations. While our priority is residential customers, it is the
City’s goal to offer incentives to all customer types in the community if possible, including commercial and
industrial.
Feasibility Study
In May 2025, Ames partnered with the Iowa Economic Development Authority and the Energy Efficiency
Institute (EEI) on a Pay As You Save (PAYS) feasibility study. Through this study, Ames has engaged
with key local stakeholders and subject matter experts. Stakeholders included utility, industry, academia,
and the local community action agency. Feedback from stakeholders and input from subject matter
experts have ensured that the proposed program is economically feasible, maximizes broad local
benefits, and complements existing community programs.
Additional collaborations throughout program development have included the Environmental and Energy
Study Institute (EESI), a Washington D.C. nonprofit, and other utilities that are planning similar programs.
Program Timeline
The estimated timeline prioritizes resident ial customers, then adds other options over time to build out a
comprehensive program available to all customers.
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Financial Forecast - 7 CFR 1719.5(b)(3)(i)(E)
Sources and Uses of Funds
The feasibility study, currently in progress, has formed the foundation for the program. The utility’s
demand-side management (DSM) fund will be used for program marketing, program development, and a
portion of the operating costs.
Use of Funds Source of Funds Amount
Feasibility Study Iowa Economic Development Authority Grant $37,500
Program Marketing City of Ames Demand-Side Management Fund $15,000
Legal Fees City of Ames Demand-Side Management Fund $25,000
Program Operator start-up
costs City of Ames Demand-Side Management Fund $10,000
Operations
(Program Operator)
City of Ames Demand-Side Management Fund $750,000
($75,000/year)
USDA RESP Loan (interest charged) $305,000
($30,500/year)
Working Capital USDA RESP Loan $15,000,000
10-Year Financial Forecast
The detailed financial forecast is provided at the end of this document.
Collateral for RESP Loan
As stated in the opinion of counsel, the City is in good financial standing and will protect USDA’s interests
with sufficient security. The Ames Electric Utility holds over $60 million in cash reserve funds and
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proposes to use these funds as collateral. The City and USDA would agree on a process involving a joint
account where the City would maintain a balance no less than the outstanding loan amount.
The City proposes an alternative method of security other than property beca use the City’s assets are
considered public property in Iowa. The State of Iowa restricts liens against public property, and the City
would avoid encumbering this property. Although the USDA prefers property as collateral, the City trusts
this proposed method will be adequate, as it guarantees USDA repayment in the event of a default.
Implementation Work Plan - 7 CFR 1719.5(b)(3)(i)(F)
(1) Marketing Strategy
The program, under the name SmartSave, is designed for all residential Ames Electric customers, but the
greatest potential for impact lies within two key audiences:
1. Owners of Older Homes (pre-1970): Many of these homes are less energy-efficient, making
them prime candidates for upgrades with measurable results.
2. Low- and Moderate-Income Neighborhoods: Identified through U.S. Department of Housing
and Urban Development (HUD) census tracts, these communities often face financial barriers to
comprehensive energy improvements. SmartSave offers tools and financing options to make
upgrades accessible.
The City will assemble a SmartSave Outreach Team, drawing representatives from Sustainability,
Utilities, Public Engagement, and Communications and Outreach. This cross-departmental team ensures
that messaging is consistent, accessible, and responsive to community needs.
Targeted strategies will include:
• Housing Partnerships: Work with the City of Ames Housing Division to embed SmartSave
materials into the Single Family Home Rehab Program, ensuring residents seeking home repair
support are also introduced to energy-efficiency opportunities.
• Community Networks: Collaborate with social service agencies to share Smart Save information
directly with residents who may benefit most.
• Vendor & Contractor Engagement: Build partnerships with trusted local contractors and
community organizations to promote SmartSave financing and increase awareness at the point of
service.
• Integrated Marketing Campaign: Develop clear, user-friendly brochures, digital content, and
targeted advertising. Plan distribution through utility bill inserts, neighborhood mailings, social
media, and local events with tabling opportunities.
• Customer Service Training: Equip City Utilities and Customer Service staff with the knowledge to
answer eligibility questions and direct residents to assistance.
By combining targeted outreach, strategic partnerships, and accessible messaging, Smart Save will not
only reach high-need households but also build broad community participation, which helps the Ames
community reduce energy use and move toward a more sustainable future.
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City of Ames Racial and Ethnic Demographics
White alone 79.0%
Black alone 3.7%
American Indian and Alaska Native alone 0.6%
Asian alone 9.4%
Native Hawaiian and Other Pacific Islander alone 0.1%
Some other race alone 1.8%
Two or more races 5.3%
Hispanic or Latino origin 4.9%
White alone not Hispanic or Latino 77.6%
Source: https://www.iowadatacenter.org/index.php/quick-facts/city-quick-facts
(2) Program Description and Eligible Activity/Investment
RESP eligible activities/investments will include:
1. Lighting
a. Lighting fixture upgrades to improve efficiency
b. Re-lamping to more efficient bulbs
c. Lighting Controls
2. Building Envelope Improvements
a. Improved Insulation – added beyond existing levels, or for new construction,
above existing building codes
b. Caulking and weather-stripping of doors and windows
c. Window Upgrades – EnergyStar qualified windows
d. Door Upgrades – includes man-doors and overhead doors with integrated
insulation and energy efficient windows
3. Heating, Ventilation, and Air Conditioning (HVAC)
a. Central Air Systems – EnergyStar qualified equipment
b. Window AC Units – EnergyStar qualified equipment
c. Economizers
d. Heat pumps
e. Furnaces – EnergyStar qualified equipment
f. Air Handlers
g. Programmatic controls
h. Duct sealing
4. Water Heaters
5. Compressed Air Systems
6. Motors
a. High efficiency motors
b. Variable frequency drives
c. Boilers, dryers, heaters, and process-related equipment – specific equipment
not otherwise listed (commercial coolers/freezers)
7. Demand Management (load shifting)
8. Energy Audits
9. On/off Grid Renewable Energy Systems
10. Energy Storage Devices
11. Replacement of existing fuel consuming equipment
12. Energy efficient appliance upgrades fixed to real property
13. Irrigation or water system efficiency improvements
14. Necessary and incidental activities/investments directly related to implementation of an
eligible measure, such as
a. Knob and tube remediation
b. Roof replacement
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c. All other barriers to measures
d. Insulation and energy efficient windows
e. Any material listed in Appendix A of DOE’s Weatherization Assistance Program
(i) Costs and schedule for each activity
Upgrade
Estimated
Installed
Cost
Average
Utility
Investment
Utility
Rebate
Expected
Useful Life
Heat Pump $12,000 $9,600 $1,000 18
Solar PV (6kw) $17,000 $13,600 $3,000 20
Average Whole-Home
Upgrade (could include heat
pump, weatherization, heat
pump water heater, solar,
EV charging)
$18,050 $14,440 $1,100 10-25
The City will reference the Iowa Technical Resource Manual for the expected useful life of all
measures.
(ii) Special advance
The City of Ames requests a special advance of $100,000 (0.67%) to help cover start-up costs and
address the lag between ongoing program costs and recovery of these
(iii) Program Description
Financing Minimum Standards
Eligibility All residential customers will be eligible for the initial program
launch. Commercial and industrial feasibility will be explored in
program year 2.
Incentive structure Tariff on-bill, attached to the meter at the premises. Utility
investment terms will include a fixed charge on the utility bill over a
period not to exceed 15 years or 80% of the measure’s useful life,
whichever is less.
Non-payment In the event of non-payment, the utility will pursue available options,
including tax refunds and gambling winnings through the State of
Iowa, utility disconnection, and a lien on property.
Eligible improvements Energy-saving home improvements are listed in the eligible
activity/investment section and installed by an authorized
contractor.
Upgrades for health and safety, directly related to an appropriate
efficiency measure, are eligible under the whole-home track. Non-
energy improvements are capped at 15 percent of total financing.
The program operator will use financial modeling to determine the
eligibility of projects based on estimated savings. To prevent undue
burden, the tariff charge will not exceed the average annual
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estimated savings. An up-front payment will likely be necessary for
most projects to reduce the tariff on-bill charge to within eligibility
standards.
On-bill tariff terms and
qualifications for all
customer classes
Term length: 15 years or 80% of the measure’s useful life,
whichever is less.
Rates: Not to exceed 5%. Financial modeling estimates that a rate
of less than 1% will be needed to sustain the program.
Qualification: Must be in good standing with the utility.
Residential on-bill tariff
terms
Amount per project: $2,000 to $30,000.
Program total: Not to exceed 100% of RESP loan ($15,000,000).
Commercial and
industrial on-bill tariff
terms (if implemented)
Amount per project: $5,000 to $1,000,000
Program total: Not to exceed 20% of RESP loan ($3,000,000)
(iv) Roles and Responsibilities
An ecosystem of partners is needed to ensure a successful program. Roles of key entities are
summarized in this section, including the City of Ames, program operator, contractors, and the customer.
A cross-functional flow chart is also provided to illustrate the responsibilities of each party.
The City of Ames will be responsible for:
• General program oversight and management.
• Working with capital provider and program operator to develop underwriting criteria and the
program application.
• Working with the program operator to establish the contractor network.
• Developing and implementing an outreach plan and a branding/marketing strategy.
• Applying tariff charges to customer bills and collecting on-bill payments.
• Working with program operator to finalize program processes; create all program documents; and
develop a program implementation manual.
• Coordinating City of Ames Electric rebates.
• Providing RESP loan collateral.
• Facilitating contractor payments upon completion of work.
• Holding agreements with customers.
• Recording notice with register of deeds in Story County and discharging notice upon full
repayment.
Primary City staff will include:
Name Title
Brian Phillips Assistant City Manager
Corey Goodenow Finance Director
Don Kom Electric Services Director
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John Odenweller Utility Customer Service Supervisor
Layne Fober Energy Services Coordinator
Mark Lambert City Attorney
Nolan Sagan Sustainability Coordinator
The City will partner with a program operator, who will administer the program. This will allow the program
to scale quickly, be more adaptive, and use up-to-date tools and procedures. The program operator will
be selected through a fair and competitive procurement process based on their credentials, expertise,
cost, and other criteria. The City will select an operator who has experience carrying out the financial and
technical components of similar programs on a similar scale. The program operator will be responsible
for:
• Working with the City to establish the contractor network, develop contractor training materials,
and conduct contractor training.
• Identifying cost-effective measures using energy audit data collection and comprehensive energy
assessment (whole home upgrades track).
• Developing processes and IT infrastructure to model energy savings and calculate offers.
• Working with the City of Ames to establish monitoring and verification criteria and procedures.
• Conducting customer satisfaction surveys and quality assurance.
• Monitoring program results and impacts; create monthly and annual program performance
reports.
If the customer and building owner are different people, both must agree to the program terms. The
customer/building owner is responsible for:
• Agreeing to program requirements, electing qualifying measures, and choosing a contractor.
• Participating in post-project quality control surveys.
The City and program operator will engage with contractors and build an authorized network, prioritizing
local contractors. The contractors are responsible for:
• Agreeing to and complying with program processes and requirements.
• Conducting comprehensive whole-home energy assessments and providing data to the program
operator.
• Installing energy-saving or renewable energy improvements.
The following chart outlines the whole-home retrofit track process. For the HVAC replacement track,
customers start by calling a contractor who has agreed to participate in your program and is trained to sell
the service. The contractor goes on-site equipped with an app to generate an offer for the replacement
system. Results are sent in real time to the Program Operator, who generates an offer while the
contractor is on-site. The customer can solicit other quotes and decides whether to accept the offer. If
accepted, the contractor installs the replacement. The utility then pays the contractor the amount of
deferred on-bill charges and any rebate.
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(3) Financial and Operational Risk
Write-offs, or uncollectables, have been estimated based on research studies1,2,3 and the current Ames
utilities write-off rate (0.13%). It is estimated that the program could result in 0.5% in write-offs, or
$75,000. Ames proposes to utilize existing demand-side management (DSM) funds to establish a loan
loss reserve account and build and maintain an appropriate level throughout the program lifetime . This is
a direct investment by the utility in the program and aligns with the purpose of the DSM fund.
As previously mentioned, in the event of non-payment, the Utility will pursue available options, including
tax refunds and gambling winnings through the State of Iowa, and in extreme cases, utility disconnection
and lien on property.
Agreements with contractors will comply with Ames' purchasing policies, including insurance and bonding
requirements. It will be clearly stated in contracts and communicated to program participants that any
defective work is the responsibility of the contractor.
Upgrade offers for projects assume a continuation of current behaviors in the home. Significant behavior,
equipment, or structural changes may result in higher utility bills and are outside of the City’s control.
(4) Measurement and Verification (M&V) Plan
(a) General
All parties will participate in robust M&V led by the program operator and the City. The program is
designed to include M&V throughout the performance period and hold parties accountable to the program
standards. These activities will ensure only qualifying measures are installed , that measures are installed
properly, and that energy savings can be reasonably achieved.
There is high confidence in comprehensive energy modeling to produce accurate savings calculations. A
data-driven verification process using industry best practices will ensure actual savings are realized by
customers. M&V also provides an opportunity for continuous improvement of the program.
(b) M&V Techniques
Pre-project, the program operator will utilize the Calibrated Simulation Option (CSO) to model energy
performance and estimate savings. Results from the CSO will form the foundation for the financing
offered to customers. Post-project, the program operator will use the Whole Facility Measurement Option
(WFMO) and compare utility billing data to baseline data and the modeled savings originally produced. In
the event of a statistically significant anomaly, the program operator will investigate to determine if the
discrepancy is due to equipment underperformance, customer behavior, or other causes.
(c) Use of Deemed Savings
Ames does not propose using deemed savings.
(d) Quality Control
As previously stated, the program operator and City will submit an offer to the customer following the
initial energy assessment. The offer will be based on comprehensive, verifiable energy modeling and only
1 Berkeley National Laboratory (2016) Current Practices in Efficiency Financing: An Overview for State
and Local Governments. https://eta-publications.lbl.gov/sites/default/files/lbnl-1006406.pdf
2 Institute for Local Self-Reliance (2016) Report: Inclusive Financing for Efficiency and Renewable
Energy. Prepared by John Farrell. https://ilsr.org/articles/report-inclusive-energy-financing/
3 LibertyHomes & Energy Efficiency Institute, Inc. (2022). 2022 PAYS® Status Update.
http://www.eeivt.com/wp-content/uploads/2022/03/2022-PAYS-Status-Update_3_29_22.pdf
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include qualifying measures that have been identified as cost-effective. The customer will choose from
the available list of measures on the offer, knowing that all available measures will result in impactful
energy consumption and cost reductions.
Additionally, contractors will be required to submit several specified geo-tagged photos before, during,
and after the project for quality control purposes.
The City will adhere to sections §1719.10(d)(3) and (4) when selecting a program operator and building
the contractor network. This will ensure that only qualified, credentialed third parties will be involved in the
program, who can perform to the high standards of USDA and the City. Broad initial engagement with key
stakeholders, including the Central Iowa Workforce Development Board, suggests sufficient local
contractor capacity to implement a program of this scale.
Reporting - 7 CFR 1719.12
The City will file semiannual reports for the first 10 years of the RESP loan and annually thereafter
throughout the term of the loan, or more frequently if desired by RUS. Reporting will include, at a
minimum, the following information:
• Number and amount of on-bill tariffs issued to customers.
• Types of investments in EE measures and eligible activities.
• EE Program portfolio performance.
• Evidence of compliance with Multi-Tier Action Environmental Compliance Agreement.
• Status and amount of Loan Loss Reserve (when applicable
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Smart Choice
Legal Department 515.239.5146 main 515 Clark Ave. P.O. Box 811
515.239.5142 fax Ames, IA 50010
www.CityofAmes.org
September 10, 2025
Administrator
Rural Utilities Service
United States Department of Agriculture
Washington, D.C. 20250-1500
Subject: Rural Energy Savings Program (RESP) Loan Application for the City of Ames, Iowa
Dear Administrator:
I am currently the City Attorney for the City of Ames, Iowa ("Borrower"), and I have examined,
or caused to be examined by competent and trustworthy persons, such municipal records and files
of the City of Ames as I have deemed necessary to permit me to render the opinions expressed
herein. The opinions set forth below on behalf of my client, Borrower, address its legal status and
potential liabilities as a public municipality and therefore do not address matters only relevant to
private entities.
I am of the opinion that, under existing law:
1. Borrower has numerous real or personal property interest(s) (including easements, rights
of way, or leases) in the county of Story, State of Iowa.
2. Borrower was organized under the laws of the State of Iowa as a municipal corporation
and is in good standing.
3. Borrower is qualified to conduct business in the State of Iowa.
4. The true and correct legal name of Borrower, as stated in its applicable organizational
document(s) is: City of Ames, Iowa, a municipal corporation.
5. The execution, delivery, and performance by Borrower of loan documents would require
the consent, permission, or authorization of the City Council of the City of Ames, Iowa.
6. Borrower's taxpayer identification number is 42-6004218.
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7. Borrower has entered into a 20-year Power Supply Contract(s), exclusive of amendments,
with Garden Wind LLC. The power contract is named Power Purchase Agreement and
is dated September 8, 2009. Borrower has entered into a 20-year Power Supply
Contract(s), exclusive of amendments, with FFP Fund V Lessee2, LLC. The power
contract is named Energy Services Agreement and is dated July 23, 2019.
8. Borrower has claims and litigation pending against it, as listed in Exhibit A. Borrower
has $15 million in insurance coverage ($25,000.00 deductible on auto, $100,000.00
deductible on general). The pending claims and litigation should have little to no effect
on Borrower.
9. Borrower has no subsidiary.
10. The titles of the officials of Borrower with the proper authority to execute all loan
documents on behalf of Borrower, and to attest to the execution where required, are the
Mayor and the City Clerk, respectively.
Sincerely,
Mark O. Lambert
City Attorney
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City of Ames
515 Clark Ave, Ames, IA 50010
31
32
City of Ames
John Haila
9/9/2025
Mayor
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REV. EEO-4 1995 CITY OF AMES PAGE 001
STATE AND LOCAL GOVERNMENT INFORMATION
2025 EEO-4 REPORT
CITY OF AMES
DIR. HUMAN RESOURCES
515 CLARK AVENUE
AMES IA 50010 CONTROL NUMBER 19300230
01 02 04 05 06 09 10 13 15
1. FULL-TIME EMPLOYEES
HISPANIC
OR LATINO NON-HISPANIC OR LATINO NON-HISPANIC OR LATINO
SALARIES MALE FEMALE ------------- MALE ---------------- ------------ FEMALE -------------- TOTAL
JOB CATEGORY A B C D E F G H I J K L M N O
OFFICIALS/ADM 01 $ .1- 15.9 | | | | | | | | | | | | | |
02 16.0- 19.9 | | | | | | | | | | | | | |
03 20.0- 24.9 | | | | | | | | | | | | | |
04 25.0- 32.9 | | | | | | | | | | | | | |
05 33.0- 42.9 | | | | | | | | | | | | | |
06 43.0- 54.9 | | | | | | | | | | | | | |
07 55.0- 69.9 | | 1 | | | | | | | | | | | | 1
08 70.0- PLUS | 1 | 24 | | | | | | 8 | | 1 | | | | 34
PROFESSIONALS 09 $ .1- 15.9 | | | | | | | | | | | | | |
10 16.0- 19.9 | | | | | | | | | | | | | |
11 20.0- 24.9 | | | | | | | | | | | | | |
12 25.0- 32.9 | | | | | | | | | | | | | |
13 33.0- 42.9 | | | | | | | | | | | | | |
14 43.0- 54.9 | | | | | | | | | | | | | |
15 55.0- 69.9 | | | | | | 1 | | 2 | | | | | 1 | 4
16 70.0- PLUS 1 | | 41 | 1 | | | | | 26 | 1 | 1 | | | 1 | 72
TECHNICIANS 17 $ .1- 15.9 | | | | | | | | | | | | | |
18 16.0- 19.9 | | | | | | | | | | | | | |
19 20.0- 24.9 | | | | | | | | | | | | | |
20 25.0- 32.9 | | | | | | | | | | | | | |
21 33.0- 42.9 | | | | | | | | | | | | | |
22 43.0- 54.9 | | | | | | | | | | | | | |
23 55.0- 69.9 | | 4 | | | | | | | | | | | | 4
24 70.0- PLUS 2 | | 21 | | | | | | 5 | | | | | | 28
PROTECT/SRVCS 25 $ .1- 15.9 | | | | | | | | | | | | | |
26 16.0- 19.9 | | | | | | | | | | | | | |
27 20.0- 24.9 | | | | | | | | | | | | | |
28 25.0- 32.9 | | | | | | | | | | | | | |
29 33.0- 42.9 | | | | | | | | | | | | | |
30 43.0- 54.9 | | | | | | | | | | | | | |
31 55.0- 69.9 | | 11 | 1 | | | | | 4 | | | | | | 16
32 70.0- PLUS 3 | | 42 | 3 | | 1 | | | 12 | | | | | | 61
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REV. EEO-4 1995 CITY OF AMES PAGE 002
STATE AND LOCAL GOVERNMENT INFORMATION
2025 EEO-4 REPORT
CITY OF AMES
DIR. HUMAN RESOURCES
515 CLARK AVENUE
AMES IA 50010 CONTROL NUMBER 19300230
01 02 04 05 06 09 10 13 15
1. FULL-TIME EMPLOYEES (CONTINUED)
HISPANIC
OR LATINO NON-HISPANIC OR LATINO NON-HISPANIC OR LATINO
SALARIES MALE FEMALE ------------- MALE ---------------- ------------ FEMALE -------------- TOTAL
JOB CATEGORY A B C D E F G H I J K L M N O
PARA-PROF 33 $ .1- 15.9 | | | | | | | | | | | | | |
34 16.0- 19.9 | | | | | | | | | | | | | |
35 20.0- 24.9 | | | | | | | | | | | | | |
36 25.0- 32.9 | | | | | | | | | | | | | |
37 33.0- 42.9 | | | | | | | | | | | | | |
38 43.0- 54.9 | | | | | | | | 2 | | | | | | 2
39 55.0- 69.9 | | 2 | | | | | | 2 | | | | | 1 | 5
40 70.0- PLUS | | 5 | | | | | | 6 | | | | | | 11
ADMIN SUPPORT 41 $ .1- 15.9 | | | | | | | | | | | | | |
42 16.0- 19.9 | | | | | | | | | | | | | |
43 20.0- 24.9 | | | | | | | | | | | | | |
44 25.0- 32.9 | | | | | | | | | | | | | |
45 33.0- 42.9 | | | | | | | | | | | | | |
46 43.0- 54.9 | 1 | 1 | | | | | | 6 | | | | | | 8
47 55.0- 69.9 | | 8 | | | | | | 28 | 1 | | 1 | | | 38
48 70.0- PLUS | | 1 | | | | | | 13 | | | | | | 14
SKILLED CRAFT 49 $ .1- 15.9 | | | | | | | | | | | | | |
50 16.0- 19.9 | | | | | | | | | | | | | |
51 20.0- 24.9 | | | | | | | | | | | | | |
52 25.0- 32.9 | | | | | | | | | | | | | |
53 33.0- 42.9 | | | | | | | | | | | | | |
54 43.0- 54.9 | | | | | | | | | | | | | |
55 55.0- 69.9 | | 1 | | | | | | | | | | | | 1
56 70.0- PLUS | | 28 | | | 1 | | | 1 | | | | | | 30
SERV/MAINT 57 $ .1- 15.9 | | | | | | | | | | | | | |
58 16.0- 19.9 | | | | | | | | | | | | | |
59 20.0- 24.9 | | | | | | | | | | | | | |
60 25.0- 32.9 | | | | | | | | | | | | | |
61 33.0- 42.9 | | | | | | | | | | | | | |
62 43.0- 54.9 1 | | 17 | | | | | | | | | | | | 18
63 55.0- 69.9 | | 17 | | | | | | | | | | | | 17
64 70.0- PLUS | | 5 | | | | | | 1 | | | | | | 6
TOTAL
FULL TIME 65 7 2 229 5 2 1 116 2 2 1 3 370
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REV. EEO-4 1995 CITY OF AMES PAGE 003
STATE AND LOCAL GOVERNMENT INFORMATION
2025 EEO-4 REPORT
CITY OF AMES
DIR. HUMAN RESOURCES
515 CLARK AVENUE
AMES IA 50010 CONTROL NUMBER 19300230
01 02 04 05 06 09 10 13 15
2. OTHER THAN FULL-TIME EMPLOYEES
HISPANIC
OR LATINO NON-HISPANIC OR LATINO NON-HISPANIC OR LATINO
MALE FEMALE ------------- MALE ---------------- ------------ FEMALE -------------- TOTAL
JOB CATEGORY A B C D E F G H I J K L M N O
OFFICIALS/ADM 66 | | | | | | | | | | | | | |
PROFESSIONALS 67 | 1 | 16 | | | | | | 81 | 1 | 2 | 1 | | 6 | 108
TECHNICIANS 68 | | 11 | | | | | 1 | 6 | | | | | 1 | 19
PROTECT/SRVCS 69 2 | | 5 | 1 | | | | | 4 | | | | | | 12
PARA-PROF 70 6 | 9 | 70 | 2 | 4 | | | 2 | 88 | 1 | 9 | | 1 | 3 | 195
ADMIN SUPPORT 71 | 2 | 18 | 1 | | | | 3 | 45 | 3 | 1 | | | 3 | 76
SKILLED CRAFT 72 | | | | | | | | | | | | | |
SERV/MAINT 73 1 | | 35 | | 1 | | | 1 | 7 | | 1 | | | | 46
TOTAL OTHER
THAN F-T 74 9 12 155 4 5 7 231 5 13 1 1 13 456
3. NEW HIRES DURING FISCAL YEAR - PERMANENT FULL TIME ONLY
OFFICIALS/ADM 75 | | 2 | | | | | | 1 | | | | | | 3
PROFESSIONALS 76 | | 1 | | | | | | 3 | | | | | | 4
TECHNICIANS 77 1 | | 1 | | | | | | 1 | | | | | | 3
PROTECT/SRVCS 78 | | 9 | | | | | | 1 | 1 | | | | | 11
PARA-PROF 79 | | 2 | | | | | | 3 | | | | | | 5
ADMIN SUPPORT 80 | 1 | | | | | | | 6 | | | | | | 7
SKILLED CRAFT 81 | | 1 | | | | | | | | | | | | 1
SERV/MAINT 82 | | 12 | | | | | | | | | | | | 12
TOTAL
NEW HIRES 83 1 1 28 15 1 46
CERTIFICATION. I certify that the information given in this report is correct and true to the best of my knowledge and was reported
in accordance with accompanying instructions.(Willfully false statements on this report are punishable by law, U. S. Code, Title 18,
Section 1001.)
NAME OF PERSON TO CONTACT REGARDING THIS REPORT: BETHANY JORGENSON TITLE: DIR. HUMAN RESOURCES
ADDRESS: 515 CLARK AVENUE TELEPHONE NUMBER (INCLUDE AREA CODE): 515 239-5199
AMES, IA 50010
DATE: 6/26/25 TYPED TITLE OF CERTIFYING OFFICIAL: DIR. HUMAN RESOURCES
SIGNATURE OF CERTIFYING OFFICIAL:
36
LOBYCERT.DOC (Computer generated form, Version 2, 12/96)
This institution is an equal opportunity provider and employer
LOBBYING CERTIFICATION
Statement For Loan Guarantees And Loan Insurance
The undersigned states to the best of his or her knowledge and belief, that:
If any funds have been paid or will be paid to any person for influencing or attempting to influence
an officer or employee of any agency, a Member of Congress, an officer or employee of Congress,
or an employee of a Member of Congress in connection with this commitment providing for the
United States to insure or guarantee a loan the undersigned shall complete and submit Standard
Form-LLL, “Disclosure Form to Report Lobbying”, in accordance with its instructions.
Submission of this statement is a prerequisite for making or entering into this transaction imposed
by section 1352, Title 31, U. S. Code. Any person who fails to file the required statement shall be
subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such
failure.
City of Ames
Organization Name
John Haila, Mayor
Name of Authorized Official
9/9/2025
Signature Date
37
FEDERAL DEBT DELINQUENCY CERTIFICATION
IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT? YES X NO
Note: Example of debts include, but are not limited to, delinquent taxes, guaranteed or direct
government loans (more than 31 days past due) and other administrative debts.
If Yes, provide explanatory information.
APPLICANT CERTIFICATION
FEDERAL COLLECTION POLICIES FOR COMMERCIAL DEBT
The Federal Government is authorized by law to take any or all of the following actions in the event that a
borrower’s loan payments become delinquent or the borrower defaults on its loan: (1) Report the
borrower’s delinquent account to a credit bureau; (2) Assess additional interest and penalty charges for the
period of time that payment is not made; (3) Assess charges to cover additional administrative costs
incurred by the Government to service the borrower’s account; (4) Offset amounts owed to the borrower
under other Federal programs; (5) Refer the borrower’s debt to the Internal Revenue Service for offset
against any amount owed to the borrower as an income tax refund; (6) Refer the borrower’s account to a
private collection agency to collect the amount due; and (7) Refer the borrower’s account to the
Department of Justice for litigation in the courts.
All of these actions can and will be used to recover any debts owed when it is determined to be in the
interest of the Government to do so.
Certification
I have read and understand the actions the Federal Government can take in the event that I fail to
meet my scheduled payments in accordance with the terms and conditions of my agreements.
Signed:
Title: Mayor
Applicant: City of Ames
Date: 9/9/2025
38