PowerPoint Presentation (Added on 12/9/22)

Performance Based 
Contracts - Update
December 13th, 2022

Overview
2
Staff will be requesting to negotiate 
contracts with vendors and bring 
forward to council

Background
3
• On September 25th, 2018, council voted to enter a linking 
agreement with Midstate Energy for Energy Performance 
Contracting Services
• On October 8th, 2019, council voted to enter a linking agreement 
with McKinstry for Energy Performance Contracting Services
• On March 23rd, 2021, council discussed the benefit of Performance 
Based Contracting and preliminary assessments.
• On June 8th, 2021, authorized staff to proceed with investment 
grade audits for Energy Performance Contracting Services with 
Midstate Energy and McKinstry LLC
• On October 25th, 2022, council discussed the investment grade 
audit results and project scopes.

Energy Saving Performance 
Contracts Process
4
Performance Contract
Includes guaranteed savings
Investment Grade Audit
Measures identified, quantified
Preliminary Assessment
Identifies locations, systems, measures
Council approval in June of 2021
Council Approval Required
We Are Here
Council approval in October of 2019

5
Total Performance Based 
Contract Summary
Preliminary 
Assessment (2021)
Investment Grade 
Audit (2022)
Project 1 and 2 total cost
$7,965,255
$10,042,479
Total Annual Energy Saving
$527,066
$478,487
Total Capital Contribution
$2,175,000
$1,976,617
Total Project Cost minus Capital 
Contribution
$5,790,255
$8,065,862
Total Payback without Capital 
Contribution
15.1 years
21 years
Total Payback with Capital 
Contribution
11 years
16.9 years

Q:   Was maintenance included in the solar cost?
A:   Yes. There is 3 years of solar maintenance included in the cost, plus 
inverter replacements built in at year 15. This does not include cleaning 
because that is an operational service and does not fit the definition of 
capital.
6
Council Questions

Q:   What is the estimated O&M savings?
A:   Estimated savings is $84,000 annually
7
Council Questions

Q:   Did staff check with other cities/organizations?
A:   Yes. After the October workshop we reached out and got 
information for the following organizations. City of Phoenix, AZ, City of 
Boulder, CO, ASU Downtown, ASU Tempe, Phoenix Convention Center, 
Town of Payson, AZ, City of Ogden, UT, Jefferson County, CO, City of 
Ballwin, MO, City of Florissant, MO, City of Maplewood, MO, City of 
North Vernon, IN, City of O’Fallon, MO, City of Perryville, MO, City of 
Richmond Heights, MO, City of Washington, MO, City of Ferguson, MO, 
City of Noblesville, IN and  City of Austin, TX.
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Council Questions

9
City of Austin Comparison

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City of Austin Comparison

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Next Step 
•
Staff to negotiate a contract for each 
vendor for council approval.
•
It is the goal to present contracts with the budget 
request and demonstrate that it will not impact 
planned capital projects