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Council authorizes $700,995 contract with Schneider Electric to install citywide building automation system
Summary
Schneider Electric will design and install a building automation system (BAS) in an initial phase covering the library, venue, Fire Station 81 and part of City Hall. The city expects roughly $558,000 in utility savings over 20 years and will pursue Evergy rebates and a 179D tax‑credit rebate to offset costs.
The Derby City Council authorized an energy and construction services contract with Schneider Electric on Feb. 11 to design and install a building automation system (BAS) at several city facilities in a phased effort intended to improve comfort, extend equipment life and cut energy costs.
Assistant Public Works Director Tom Kyle and Schneider Electric representative Peter Henkel presented the plan and the council voted to authorize the contract and a project resolution providing for issuance of bonds to pay project costs. The motion passed 7‑0.
Phase 1 will focus on the library, the venue (including the pavilion), Fire Station 81 and the north side of City Hall, with later phases timed to align with planned remodeling and new construction at the police department, senior center and other City Hall spaces. Henkel described the BAS as a "foundation" that allows centralized scheduling, remote diagnostics and tailored user access so department staff can control schedules without changing underlying operational parameters.
Henkel told the council the project is a guaranteed fixed cost of about $700,995 with an expected utility‑cost savings of approximately $558,000 over 20 years. Schneider will apply for a custom incentive rebate through Evergy and pursue a 179D tax benefit; Henkel said the 179D tax‑credit value is estimated in the $65,000–$75,000 range and Schneider plans to return that value to the city as a rebate toward future phases. Schneider also will provide a one‑year warranty and ongoing remote support options after the first year at a negotiated annual service level.
Tom Kyle said the city already implemented several lower‑cost energy measures in 2024 — tankless hot water heaters at Rock River Rapids and the police department, weather stripping and lighting control updates — and that the BAS will address more complex HVAC sequencing and scheduling to reduce run times and extend equipment life. Council members asked about equipment life (Henkel estimated 15–20 years for BAS hardware) and subscription/service costs after year one; Henkel said ongoing support would be negotiated and scaled to the city's needs.
Budget and timing: Schneider's presentation estimated a phased schedule with mobilization in spring and commissioning and reporting to follow; equipment lead times and coordination with other remodel projects were identified as near‑term schedule constraints. The council motion authorized execution of Schneider Electric's contract and a resolution authorizing the public improvements and issuance of bonds to pay project costs.
