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City approves guaranteed-savings pact with Noresco for $6.5M energy upgrades; financing authorized
Summary
The commission approved a guaranteed-savings energy performance contract with Noresco to retrofit lighting, HVAC and building-automation systems across 27 city buildings and parks. The city also authorized lease-purchase financing through Bank of America for about $6.6 million.
The City Commission unanimously approved an energy performance contract with Noresco (audit/implementation) on June 18, 2025 that will retrofit lighting, HVAC systems and controls across multiple municipal buildings and parks. The work is structured as a guaranteed-savings project and includes a companion financing package.
What was proposed
Noresco presented a set of measures developed after a year-long audit of 27 buildings representing roughly 7,000 fixtures, three parking garages (with bi-level lighting and motion detection), sports-field lighting conversions, building automation software upgrades and replacement of aging HVAC systems.
Financials and guarantees
- Estimated implementation cost: approximately $6.5 million. - Guaranteed first-year annual savings were presented at about $388,000, including operations and maintenance reductions. - Noresco described warranties covering fixtures (10-year parts warranties; several systems with longer expected useful lives) and performance guarantees. - The commission unanimously approved a construction work order to Noresco and authorized a master equipment lease and purchase agreement with Bank of America Capital for up to $6.6 million to finance the project.
Why the Commission approved it
Commissioners cited reduced energy bills, long-term operational savings, and improved longevity of municipal systems as reasons to move forward; several members asked about light glare for beach-area sports lighting and were reassured that fixture selection and aiming would minimize glare to nearby residents. Several commissioners requested care to preserve neighbors’ sight lines and to ensure sports lighting is specified to avoid blinding players or the public.
Implementation and schedule
Noresco and city staff said permitting and submittal review would take several weeks to a few months; actual field work was estimated at roughly six to seven months once materials and permits are in hand. Noresco noted the importance of fixture manufacturer selection and an extended warranty/maintenance program for fielded equipment.
Ending
The unanimous vote authorizes the city to proceed with guaranteed-savings upgrades and to finance implementation through a lease-purchase arrangement with Bank of America; staff will bring procurement and project schedules to the Commission as the subcontracting and permitting process advances.
