Number
241332
Version
SUBSTITUTE 3
Reference
221233, 231872, 231839, 241510
Sponsor
ALD. DIMITRIJEVIC
Title
Substitute resolution awarding and granting the authority to enter into a Guaranteed Energy Savings Performance Contract with Johnson Controls, Inc. for energy conservation and facility improvement measures at various City-owned buildings.
Analysis
This resolution authorizes the award of a Guaranteed Energy Saving Performance Contract to Johnson Controls, Inc. for improvements to the Department of Public Works Field Headquarters, Central Repair Garage or similar City building, and Milwaukee Police Department District Station 3. Funding for this project comes from previously appropriated capital accounts and grants, as well as Contingent Borrowing authorized under Common Council File Number 241510.
Body
Whereas, Section 66.0133, Wis. Stats., permits a local government to enter into an energy savings performance contract with a qualified provider to reduce energy or operating costs if the amount spent on the energy conservation and system improvement measures is unlikely to exceed the amount to be saved in energy and operating costs over a specified period of time; and
Whereas, As directed under Common Council File Number 231872, adopted on April 9, 2024, Johnson Controls, Inc. has completed an investment grade energy audit of building systems and equipment at the Department of Public Works Field Headquarters, Central Repair Garage, and Milwaukee Police Department District Station 3, consistent with requirements established in s. 66.0133, Wis. Stats.; and
Whereas, Consistent with s. 66.0133, Wis. Stats., the investment grade energy audit has:
1) Defined a series of improvement measures to be implemented to achieve energy savings.
2) Defined and produced an estimate of all costs associated with the design, installation, operation, repairs, maintenance, and financing of recommended energy conservation and improvement measures where anticipated implementation costs for the City are unlikely to exceed the amount to be saved in energy and operation costs over the remaining useful life of the facilities to which these improvements are made.
3) Determined a minimum guaranteed amount by which energy or operating costs will be reduced through implementation of the recommended energy conservation and improvement measures.
; and
Whereas, Energy-saving improvements proposed under the investment grade energy audit include:
1) The installation of LED lighting and occupancy sensors to increase the energy efficiency of the lighting systems.
2) HVAC system and control improvements.
3) Solar photovoltaic arrays that will provide long-term energy and cost reductions.
; and
Whereas, The Guaranteed Energy Saving Performance Contract allows an equivalent solar energy system to be placed on a different municipal facility if City officials determine it is not in the City’s best interest to maintain operations at the Central Repair Garage; and
Whereas, Based on the investment grade audit, the Common Council has found the project to be reasonably consistent with the requirements established for the award of energy savings performance contracts under s. 66.0133, Wis. Stats.; and
Whereas, A guaranteed energy savings performance contract has been negotiated for implementation and financing of recommended energy conservation and improvement measures; and
Whereas; The total contract amount is $2,605,746, of which:
1) $805,746 is available through previously appropriated capital accounts and grants.
2) $1,800,000 will be financed through Contingent Borrowing authorized under Common Council File Number 241510.
; and
Whereas, Of the financed amount, $575,277 is expected to be reimbursed by federal direct pay tax credits for solar energy systems and Focus on Energy incentives; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the proposed energy conservation and facility improvement measures to the Department of Public Works Field Headquarters, Central Repair Garage or similar facility, and Milwaukee Police Department District Station 3 have been determined to substantially meet all requirements established for award of an energy savings performance contract under s. 66.0133, Wis. Stats.; and, be it
Further Resolved, That the Commissioner of Public Works and the Comptroller are authorized to execute the Energy Savings Performance Contract with Johnson Controls, Inc. on behalf of the Common Council; and, be it
Further Resolved, That the City Attorney is authorized to further negotiate terms to the initial draft contract attached to this file and provided by Johnson Controls; and, be it
Further Resolved, That upon approval of this contract, the City Comptroller is authorized to create the appropriate Project Chartfield Values as further described in the attached budget.
Requestor
Department of Administration - Environmental Collaboration Office
Drafter
Ned Littlefield
LRB180447-3
02/05/2025