CLEVELAND HEIGHTS AND LEOPARDO ENERGY COLLABORATE TO SAVE THE CITY $33.6M IN UTILITY AND OPERATING EXPENSES OVER THE NEXT 20 YEARS

Unique Partnership Will Address Critical Energy and Operational Upgrades for Aging Infrastructure

CLEVELAND HEIGHTS, Ohio, Feb. 18, 2025 /PRNewswire/ -- The City of Cleveland Heights is starting the new year with a collaboration that will bring the municipality significant cost savings not only in 2025; but for decades to come. The partnership is with Leopardo Energy, a recognized leader in sustainable building practices and early champion of the green construction movement in the Midwest. Leopardo Energy will bring $33.6M in guaranteed savings to Cleveland Heights over the next 20 years by renovating five city facilities, replacing the city's streetlights with energy-efficient LED fixtures and implementing advanced procurement strategies for goods and services. The program begins in February with an expected completion in November.

This is the fourth project Leopardo Energy has conducted in Northeast Ohio (other cities include Cuyahoga Falls, South Euclid and North Olmsted); and the 59^th project nationwide. In each case, Leopardo Energy guarantees their work with each municipality and has never missed a guarantee to date. In fact, the company averages 120% of its forecasted savings guarantees.

"Our approach is truly innovative because it helps cities like Cleveland Heights get more done, more quickly and more efficiently, with a guaranteed payback that reduces any potential risks," explained Rob Vollrath, President of Leopardo Energy.

Sound too good to be true? It's not. Here's how it works: Using Ohio Revised Code 717.02, Leopardo Energy helps municipalities like Cleveland Heights finance needed infrastructure improvements through guaranteed savings. This project will allow Cleveland Heights to invest $16.9 million in energy and operational efficiency upgrades (things like more efficient HVAC systems, lighting, building automation upgrades, and improved procurement technology) financed solely by the savings the improvements will generate.

What's more, Leopardo Energy guarantees the city will achieve the projected cost savings and commits to writing a check to the city for the cost difference, should there be a shortfall between the projected and actual cost savings. But that has never happened because in nearly 60 projects Leopardo Energy has completed in other cities, the payback in savings has always exceeded the initial investment.

The project between Leopardo Energy and Cleveland Heights will focus on three key outcomes: People, Profit and Nature:

People

"The residents of Cleveland Heights are passionate about their community," said Cleveland Heights Mayor Kahlil Seren. "This partnership gives the city the opportunity to invest back in our people and the community at large."

The project will create nearly 400 union jobs to update the systems that power city buildings and repair structures that hundreds of city employees and residents visit daily. These facilities include City Hall, two fire stations, Cain Park and the service garage. Each of these buildings have several maintenance concerns, including aging A/C units, deteriorated lighting, and in some cases, leaking roofs and windows.

"Worker comfort and safety is also a top priority for our administration," added Seren. "Working conditions, particularly at the service center, will be significantly improved. The noticeable improvement will have a positive impact on employee morale and has the potential to improve productivity."

Profit

In addition to the savings the City of Cleveland Heights can expect, it will also have the ability to reinvest significantly in the future. One hundred percent of the $16.9M project investment is being financed and after the project is paid off, the city will have an additional $8M in surplus savings to reinvest into the community.

"The city is being fiscally responsible because this doesn't take away from the tax money already in our budget. We can re-invest those dollars in the most economical and efficient way. Cleveland Heights can take real action on our capital improvement plan," said Seren.

He continued, "And while the cost savings are substantial, having one resource for the entirety of the project is another anticipated benefit," added Seren. "Leopardo Energy will handle the overall project management; versus having to work with several contractors with separate budgets, timelines, etc. – it makes everything extremely efficient."

Specific items addressed in the scope of work includes, but is not limited to, the following:

• Repairing structures and replacing equipment before it fails 
• Changing out equipment, such as giant heating and cooling units 
• Re-negotiating contracts for the city, such as fuel contracts for its vehicles and salt (brin) for its roads
• Replacing all of the streetlights with LEDs
• Changing exterior lighting and inefficient window A/C units at Cain Park with a centralized system

Nature

The partnership between Cleveland Heights and Leopardo Energy will extend the life of city-owned facilities and confirms the city's commitment to a path for energy savings and carbon reductions prioritized in its Climate Action and Resilience Plan (or Climate Forward Plan, which documents the city's goal of reaching carbon neutrality in its operations by 2050).

The Climate Forward Plan found that powering buildings is the city's single largest source of carbon emissions; pairing the need to repair aging city structures and replace many of the old, inefficient mechanical systems will simultaneously reduce the city's energy bill and carbon emissions.

The project is expected to reduce the City's carbon footprint by 4,228,000 pounds of carbon monoxide, equivalent to removing 427 cars from the road, powering 242 homes or charging more than 233M smart phones annually. In addition, all 3,506 streetlights in the city will be replaced with brighter and more energy-efficient LED structures.

"Everyone wants to improve the environment, but the question of how to pay for it is often a hurdle," explained Vollrath. "This kind of solution allows cities to budget and acquire capital for public works improvements and energy savings through projected savings (not an upfront outlay of cash). The payback in savings is guaranteed and the benefits are seen almost immediately."

The project is expected to begin in February and will initially focus on installing new lighting at Cain Park, upgrading the domestic water system at City Hall, and improving the building façade at the service center. The expected completion date for the entirety of the project is November. There will be minimal disruption to Cleveland Heights residents; and all city buildings will remain open during construction and renovation.

ABOUT LEOPARDO ENERGY

Leopardo Energy collaborates with municipalities and other local government organizations to provide unique capital creation strategies that divert current spending to critical energy and operational upgrades for aging infrastructure, creating budget neutral solutions. These include energy savings performance contracts and power purchase agreements, which eliminate the financial barriers that traditionally hamper energy efficiency and renewable energy projects. Leopardo Energy's comprehensive portfolio of services includes energy engineering and design, MEP design, infrastructure upgrades, project implementation, procurement consulting, smart building technology, project financing, sustainability, and more.

SOURCE Leopardo Energy; City of Cleveland Heights