Summary
To: Mayor Gary H. Katica, and Commissioners
From: JP Murphy, Town Manager
Date: 1/12/2018
______________________________________________________________________
Subject:
Title
Consideration of Investment Grade Audit and Guaranteed Savings Performance Contract
Summary:
Investment in facilities is needed as buildings continue to age leading to rising operating expenses. A statutory funding mechanism (Florida Statute 489.145) exists to use the savings associated with utility and maintenance cost reduction in order to secure necessary facilities upgrades.
A Letter of Intent (LOI) with ABM to perform an Investment Grade Audit (IGA) was authorized by the Commission on August 1, 2017. The LOI set the criteria that must be achieved in order for the Town to enter into a Guaranteed Energy, Water and Wastewater Performance Savings Contract.
The results of the Investment Grade Audit are included and a summary will be presented to Commission by ABM for further deliberation.
End
Body
Previous Commission Action: Approved Letter of Intent on 8/1/2017
Background/Problem Discussion: Generally speaking, energy performance contracting utilizes methods that capitally purchase energy saving measures coupled with bonded, guaranteed savings. The program then uses the savings to pay for other infrastructure improvements. The process at a very high level is as follows:
* Procurement of Investment Grade Audit (IGA)
* The Town negotiates a Guaranteed Energy Performance Savings Contract
* The Town executes the contract and financing agreement approved by Commission and begins work on ECMs.
* Ongoing Measurement and Verification process begins (M & V)
ABM presented IGA findings to Staff and then to Finance Board. A guaranteed savings solution exists to fund a base scope to upgrade facilities. There are additional capital needs that were also identified that could not be funded from energy savings. The Town has the option to enter into a Guaranteed Energy, Water and Waste...
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