New rooftop chiller cut City Hall energy use; finance committee okays mayor to sign service agreement

The Homewood City Finance Committee on March 3 voted 3-0 to authorize the mayor to sign a service agreement that will reinstate quarterly maintenance for the city’s newly installed rooftop chiller and building controls.

Committee members discussed reports showing the system reduced annual electricity use at City Hall by more than 14% and reduced annual electricity costs by a little more than 8% despite local electricity rates increasing by over 6% since 2023. The committee approved the motion after staff said the contractor would charge $4,040 per quarter (annualized at $12,120) for ongoing service; the contractor asked that the reinstated agreement be effective March 1 through the end of the current fiscal year, Sept. 30, 2025.

Why it matters: The committee described the chiller and controls as replacing an older, inefficient unit that had been “MacGyvered” and said the new system produced measurable savings. Committee members and staff framed the service agreement as necessary to maintain those savings and to continue optimizing performance in building zones such as the first floor/meeting space.

Committee discussion and evidence The mayor (presenter) summarized the contractor’s report and the measurable results: “It has reduced our annual electricity use by more than 14% in City Hall,” the mayor said, and staff reported approximately $27,000 in decreased annual energy spend and an estimated $15,000 in utility cost avoidance in 2024. Staff also said the contractor’s analysis attributes more than $40,000 in energy savings since May 2024 to the chiller and control changes.

Staff and committee members discussed additional opportunities for optimization, including zoning and set-point adjustments for the first floor meeting space (referred to in discussion as Rosewood Hall) where church services and public meetings are held. Staff indicated the contractor will provide more frequent (quarterly) reports and pursue further tuning that could yield additional savings.

Contract and budget treatment Staff told the committee the original equipment contract included one year of free service; that free year lapsed and the current proposal would cover the last six months of the fiscal year. Staff reported the service agreement cost is not currently in the general fund’s contractual services line; a city staff member (Berkeley) said they will absorb the expense within an available budget line rather than request additional general fund appropriation. Committee members confirmed the contractor is not requesting retroactive payments for 2024.

Vote and next steps A committee member moved to authorize the mayor to sign the service agreement; Jody seconded. The motion passed 3-0. Committee members said the item will be on the committee’s account for the next Monday night meeting cycle and that staff will circulate the contractor’s savings report and the service agreement to committee members.

Ending Committee members asked staff to provide the contractor’s data and the proposed service agreement to committee members and to return any material updates in subsequent meetings.