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Town of Easton
Presentation to Town Meeting on
Energy Saving Performance Contracting and Solar Photovoltaic Systems
November 17, 2014
Town of Easton Slide 2
Contracting for Energy Services Procurement Options
v State law provides for three specific procurement options for public entities. All three apply to energy projects. q MGL c. 30B – goods and services, leases, energy procurements q MGL c. 149 – construction on buildings
q MGL c. 25A § 11c and 11i – energy management services (performance contracting)
v “Energy projects” implemented under the local utility banner can be sole sourced provided each project value is $100,000 or less, otherwise the above statutes apply.
Town of Easton Slide 3
Performance Contracting Overview General Approach
v Special energy management services procurement statute, M.G.L. c. 25A, that enables municipalities to leverage existing operating and energy budgets to implement capital projects and energy infrastructure solutions to decrease energy usage, increase building efficiency and reduce operating costs.
v Performance Contracting provides comprehensive, professional turnkey design, procurement, construction, project/construction management, commissioning and staff training.
v Annual realized energy savings from current operating budgets are reallocated to pay debt service obligations plus any annual costs for measurement and verification. These realized savings are financially guaranteed by Ameresco.
v Debt service payment obligations are met by the guaranteed annual savings. The guaranteed annual savings is required by both State law and contractual obligations.
Town of Easton Slide 4
Performance Contracting Overview General Goals
v Upgrade building infrastructure and increase building efficiency
v Reduce operating and maintenance costs v Enhance operating staff productivity v Implement renewable energy strategies v Improve indoor air quality v Enhance core curriculum by integrating innovative
technologies with educational objectives
Slide 5
Performance Contracting Overview Illustrative Example – 25% Operating Cost Savings
Town of Easton
Town of Easton Slide 6
Easton’s Energy Procurement Overview
v Town issued a Request for Qualifications under M.G.L. c. 25A § 11i on July 10, 2013.
v Town received 5 comprehensive proposals on August 16, 2016.
v Evaluation committee short-listed 3 firms for interviews.
v Ameresco was selected to provide comprehensive energy management services on October 7, 2013.
v Ameresco conducted a comprehensive Investment Grade Energy Audit and presented its findings to the stakeholder group for project optimization.
v Ameresco delivered the final report to the Town in mid-September 2014.
Town of Easton Slide 7
Ameresco Team Experience
v Leading national Energy Management and Renewable Energy services firm, headquartered in Framingham, MA.
v Select local Ameresco client projects include: q Town of Wayland -‐‑ $2.8 million q Town of Salisbury -‐‑ $1.08 million q Town of Ashland -‐‑ $3.6 million q City of Melrose -‐‑ $2.5 million q Town of Merrimac -‐‑ $1 million q City of Fall River -‐‑ $5.5 million q City of Lowell -‐‑ $21 million q Town of North Andover -‐‑ $4 million q City of Revere -‐‑ $11 million q Southeastern Regional School District -‐‑ $3.3 million
Town of Easton Slide 8
Program Optimization Winnowing Process to Achieve Best Value
Ameresco –Investment Grade Audit
Ameresco identified total technical potential for energy
infrastructure upgrades in Town and School buildings
Stakeholder Review and Winnowing
Town and School stakeholders reviewed and eliminated building and projects based on priorities and
economics
Stakeholder Final Optimization
Town and School stakeholders and Ameresco optimized project
comprehensiveness to meet financial and capital upgrade requirements
Program Optimization Winnowing Process Results
v Total Technical Potential Determined by Ameresco q 24 Town and School Buildings, plus Streetlights* q 130 Individual Energy Infrastructure Upgrade Projects q $7 Million in Energy Infrastructure Investments q Cashflow: -$3.39 million over 15 year borrowing period
v Winnowing – Final Scope Refinement q 21 Town and School Buildings, plus Streetlights*
§ Removed scope for Parkview and Center Schools and Fire Station #2 q 78 Individual Energy Infrastructure Upgrade Projects q $3.184 Million in Energy Infrastructure Investments q Cashflow: $756,579 over 15 year borrowing period
* Old Fire Station, Landfill building and Town Pool not included in the Investment Grade Audit.
Town of Easton Slide 9
Key Program Attributes
Town of Easton Slide 10
v Town will receive $3.184 million of essential and necessary capital investments on 78 individual projects covering all buildings that will result in energy and operational savings in excess of 20% of current baseline energy use.
v Town will contribute only $200,000 from Green Communities Competitive Grant funds to support the program. The balance will be borrowed with no debt exclusion. Debt service will be paid from guaranteed energy savings and utility rebates.
v Replacing equipment prior to catastrophic failure benefits the Town: q Improved (energy and operational) design of replaced systems q Lower cost versus replacement under emergency conditions q Accelerating realized energy savings which are guaranteed by Ameresco q Improving comfort and creating a healthier learning environment
v Interest rates are currently attractive and rates are likely to increase.
Comprehensive Energy Solutions Energy Infrastructure Upgrades
Town of Easton Slide 12
Final Optimized Program
Town of Easton Slide 13
Final Optimized Program Budget Neutral Project – Cashflow Analysis
Annual Performance Guarantee Measurement and Verification
Town of Easton Slide 14
v Town/School conducts (or arranges for) contract-required operations and maintenance.
v Annual measurement and verification scope performed by Ameresco is completed based on approach defined in the contract. q Data is collected q Measurements, equipment and performance testing as required q Operations and maintenance records are reviewed q Annual report is provided to Town and DOER.
v Annual financial reconciliation q Ameresco issues payment if savings shortfall exists q Town/School retains all excess savings
Preliminary Program Schedule
Town of Easton Slide 15
Activity Anticipated Date Joint BOS/School Committee Meeting October 2, 2014 Meetings with Finance and Capital Planning Committees
October-November 2014
Town Meeting November 17, 2014 Execute Energy Management Services Agreement By December 31, 2014 Program Kick Off and Commence Detailed Design Mid January 2015 Program Construction Implementation February – June 2016 Commissioning and Training June - July 2016 Performance Period Commences August 2016
Solar Photovoltaic Program Project Specifics
Town of Easton Slide 16
v Procurement for Energy Management Services (Performance Contracting) included the option for renewable generating assets to be contracted under a third-party ownership model similar to the landfill project.
v Two systems proposed: q 475 kW roof-mounted system at Oliver Ames High School
q 238 kW roof-mounted system at Easton Middle School
q Total generation of approximately 869,000 kilowatt-hours/year
v Design includes ballasted racking system with no roof penetrations.
v Price offer: $0.0748/kWh with 2% annual escalator.
Solar Photovoltaic Program Project Economics – Fixed Rate with 2% Annual Escalator
Town of Easton Slide 17
Town of Easton Slide 18
Thank You
Beacon Integrated Solutions P.O. Box 320325
Boston, MA 02132 [email protected]
www.beacon-llc.com
Discussion
