R2012-189 AUTHORIZING EXECUTION OF AGREEMENT FOR ENERGY PERFORMANCE CONTRACT PROJECT DEVELOPMENT

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DEPARTMENT OF WATER MANAGEMENT Memorandum No. 2012-29 November 14. 2012 TO: Mayor Michael T. McElroy and City Council FROM: Ryan P. McCrady, City Manager Keith D. Alexander, Director of Water Management SUBJECT: Energy Performance Contract Project Development Agreement SUMMARY RECOMMENDATION: Council adopt the attached Resolution authorizing a Project Development Agreement with Johnson Controls Inc. at a cost not to exceed $931,200. BACKGROUND: As previously reported to the City Council and discussed at a recent study session, an Energy Performance Contract Request for Proposals (RFP) was issued on June 15 with proposals due July 28. Four proposals from well respected Energy Service Companies (ESCOs) were received. An eight member panel independently evaluated the proposals, determined that two of the firms were better suited to meet the City's needs than the other firms, conducted in person interviews with the two firms, and determined that Johnson Controls, Inc. was best suited to meet the City's needs for this project. As discussed in the City Manager's FY 2013 Budget Address, Energy Performance Contracts (EPCs) can assist to ensure that the City's facilities are operating efficiently, save the City money, and create a pool of funds to address other capital and infrastructure needs. The savings proposed by the ESCO would be guaranteed to the City. If the savings are not realized, then the ESCO compensates the City for the difference. Other cities similar to Decatur that have recently successfully implemented EPCs and garnered the promised savings are: Charleston, IL, Rockford, IL, Anderson, IN, Evansville, IN, Tyler, TX, El Paso, TX, Olathe, KS, Kingsport, TN, Hollywood, FL, Cuyahoga Falls, OH, Duluth, MN, Cary,NC and Ocala, FL. The facilities and public infrastructure included in the City's EPC project are listed below. The South Water Treatment Plant and Water Metering System Conversion to Automatic Meter Reading System are the highest priorities for this project: • City Street Lighting • Civic Center • Downtown Decatur Security Cameras • Fiber Optic System to Interconnect City Facilities • Hydroelectric Energy Generation at Lake Decatur Dam • Library