City staff and Ameresco described an energy savings performance contracting project and an associated Columbia Water and Light advanced metering infrastructure (AMI) effort during the pre‑council meeting on July 21, 2025.
The procurement method: Eric Hempel (City staff) introduced Ameresco, the company selected through a request‑for‑proposal to serve as the city’s energy services company (ESCO). Dana Dunn (Ameresco) explained that energy performance contracting is a state‑authorized procurement method (RSMO 8.231) that can fund infrastructure upgrades by leveraging guaranteed energy and operations & maintenance savings and, typically, tax‑exempt lease financing for up to 15 years.
Why this matters: The model can deliver deferred‑maintenance and efficiency projects in a potentially budget‑neutral way by using projected savings to finance capital improvements; it also creates opportunities for resilience investments such as battery storage and site upgrades that could serve as community resiliency hubs during outages.
Scope and examples
- Selected contractor and experience: Dana Dunn said Ameresco was selected through the city’s RFP process and highlighted prior work in Missouri, including a Columbia landfill‑gas plant partnership (design, build, own, operate) that began in 2009 and an energy performance contract with Columbia Housing Authority implemented in 2011 and tracked through 2023.
- Facility targets: Ameresco said it is developing measures for three city facilities: the Armory, the Activity & Recreation Center (ARC), and City Hall. The Armory and ARC were each noted to have major mechanical equipment around 25 years old and potential for lighting redesigns and envelope work; the ARC in particular was highlighted for opportunities in lighting daylighting, pool‑mechanical replacement and roof work, plus possible solar or battery storage.
- Columbia Water and Light (CWL) / AMI: Ameresco and staff said a project development agreement for an AMI project with Columbia Water and Light is in progress; if executed the AMI development phase typically takes roughly 3–5 months before construction planning begins.
Financing, guarantees and operations
- Financing and guarantees: Dunn described open‑book pricing, guaranteed energy savings (up to a 15‑year performance guarantee), and a typical financing vehicle of a tax‑exempt lease (TEL). She noted TELs do not count against the city’s bonding limits because equipment remains leased until paid. Ameresco emphasized fixed‑price, no‑change‑order contracting and the company’s willingness to assume cost overruns within the guaranteed price.
- Operations and maintenance: Ameresco explained the typical model: Ameresco designs, builds and commissions measures and guarantees savings; after turnover the city normally operates and maintains systems. Ameresco said it can offer post‑installation operations services if the city prefers, but that the plan assumes municipal staff will maintain equipment after acceptance.
Timeline and next steps
Ameresco and staff said they are conducting multiple verification meetings with department heads (typical practice is three verification meetings but the process can vary), and they aim to complete facility verification work by December to enable 2026 construction for measures that require summer shutdown windows (pool HVAC replacements, for example). The AMI project remains in the CWL project development agreement stage; once that agreement is signed, Ameresco estimated a 3–5 month development period prior to construction.
Council questions and staff responses
Council members asked about solar, resiliency hubs and maintenance. Nick asked whether ARC solar could pilot broader municipal rooftop or ground‑mount solar; staff said the work could be used as a pilot and the city will evaluate broader installations later. Councillors asked what a resiliency hub would provide; Dunn and staff described battery storage, backup power, charging and climate‑controlled space for residents (for example, to preserve temperature‑sensitive medications during outages). A council question about maintenance elicited clarification that the city would normally assume operations after turnover but that Ameresco can provide operations services under a separate arrangement.
Ending: City staff said they will continue verification meetings and complete the facility development phase by year‑end to support potential 2026 construction; the AMI work with Columbia Water and Light will proceed after the project development agreement is finalized.