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

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-2- • Mass Transit Buildings (Administration, Bus Barn& Transit Center) • Municipal Services Center • Photovoltaic Energy Generation at Potential Sites • Raw Water Pump Station • Seven Fire Stations • Smart Grid/Cloud Network for City Operations • South Pressure Zone Pump Station • South Water Treatment Plant • Water Metering System Conversion to Automatic Meter Reading System • William Street Pump Station • Solar Thermal opportunities The Project Development Agreement (PDA) is a precursor to an EPC wherein Johnson Controls would complete a detailed energy, water and cost savings evaluation of the above listed facilities and public infrastructure, then present their findings to the City. Due to the large amount of facilities and infrastructure data, and facility site tours that the City provided during the RFP process, Johnson Controls is confident that by completing the work contained in the PDA, they will be able to provide the City with a successful EPC business plan. PDA costs are also included in the EPC business plan, so the City would not incur any direct costs for the PDA. In extremely rare occasions, PDA results do not identify a successful EPC business plan. If this occurred the City would not have to pay for the expenses related to the PDA. On the surface, the $932,100 price for the PDA may seem excessive. It is important to consider the price as a percentage of the total project costs which are estimated to be nearly $20 million. It is typical for engineering and design services to be 10-15% of project costs. The price for the PDA is 4.67% of the estimated project costs. It is necessary that we start the process to replace obsolete water meters and make critical upgrades to the water distribution system and treatment plant. Including that project into an EPC will allow us to achieve other savings that will offset the cost of the project and provide a pool of capital for other upgrades to our system and infrastructure. POTENTIAL OBJECTION: None foreseen. STAFF REFERENCE: Keith Alexander, Director of Water Management, 217-424-2863 or kalexander@decaturil.gov BUDGET/TIME IMPLICATIONS: There is no budget or time implication as it is anticipated that the cost of the Project Development Agreement will be included in the Energy Performance Contract. The work on the PDA will start immediately. JCI expects to have a EPC for consideration by the City Council in April, 2013.