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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Public Works Committee Item: Energy Performance Contract Awards Date: November 1, 2010 Prepared by: Jack Stucky Initiated by: Jack Stucky Action Required: Approve and authorize the Mayor to sign two Energy Performance Contract Awards Recommended Motion: Approve and authorize the Mayor to sign two contracts with Johnson Controls Inc. for the energy conservation performance contract project for a total not to exceed $1,387,813, contingent upon the City Attorney’s approval. Timeline: Referral to committee: 11/1/10 Committee discussion: 11/3/10 Background and Alternatives Explored: In April of 2009, the City entered into an energy savings performance contract agreement with Johnson Controls Inc. City Council has previously approved the scope of work in these performance contracts. The next step in this process is the contractual agreements with Johnson Controls Inc. The initial performance contract was divided into two contracts to simplify and separate grant funding requirements. This enhanced grant compliance, management, and qualifications. These performance contracts are a selection of energy conservation projects that when implemented will reduce the quantity and cost of energy consumption for the City of Missoula. In addition to energy and cost reductions, these projects will result in a reduced environmental impact and a reduction in the size of the City of Missoula’s carbon footprint. Approximately 43 projects costing $7,811,940 were identified in the preliminary study by JCI based on potential energy savings. From the 43 original areas studied, 19 energy saving projects were selected based on project cost, payback period, and energy reduction. Financial Implications: This project will cost a total of $1,387,813. $182,556 will be paid for by the Parking Commission, EECBG Grants will fund $50,651 of the Central Maintenance project and $201,190 of the Parks Department exterior lighting project. The remaining $953,416 will be capital general fund. See contract page 4 of the lighting and Installation contract and 45 respectively. Attachments: Lighting Installation Contract Performance Contract EMC Summary Cash Flow