Moab Council awards $1.96 million energy‑savings contract to McKinstry

Moab City Council on Dec. 10 approved an energy‑savings performance contract with McKinstry LLC with a guaranteed maximum price of $1,958,510 and authorized staff to finalize contract language and the mayor to sign.

City staff and McKinstry presented a package of facility improvements that combined deferred mechanical replacements (including a ground‑loop fluid cooler and several air handlers), weatherization, control retuning, pool covers, removal of orphaned utility meters, a chlorine generator for the aquatic center, and an LED streetlight conversion financed under the ESPC. Staff told the council the measures were selected to address long‑standing maintenance needs while also producing energy and operational savings.

At the meeting McKinstry described the financials and scope. “We’re presenting to you a project with a guaranteed maximum cost of $1,958,510,” Michael Reynolds said. McKinstry representatives said the proposal includes a guaranteed annual savings figure and that utility incentives (estimated about $50,000) remained subject to final measurement and verification by Rocky Mountain Power and Enbridge.

Staff framed the project as a combined capital repair and efficiency investment. City staff recommended paying the contract upfront rather than issuing debt, saying the cash option reduced interest expense and produced a projected payback in the city’s life‑cycle analysis of about 13.5 years; staff estimated avoiding roughly $600,000 in interest compared with a financed option.

Council discussion repeatedly emphasized that several measures are addressing equipment at or near end‑of‑life and that energy savings are an additional community benefit. Councilmembers also asked for clear public communication; McKinstry said the project will include community outreach materials such as banners and flyers for the MRAC work.

Councilmember Tawny moved to award the contract, seconded by Councilmember Colin. A roll‑call vote recorded affirmative votes from Colin, Connie, Luke and Jason; the motion passed and the mayor authorized staff to finalize contract terms consistent with city templates before signature.

The contract language in the meeting packet was adjusted at the council’s request to add an explicit delegation authorizing staff and the mayor to finalize details consistent with the city’s contract template prior to signature. The contract includes approximately $56,909 in city‑controlled contingency and an added preventive‑maintenance warranty for major mechanical equipment.

Next steps: staff will finalize contract text with the vendor and process the paperwork for signature; McKinstry and the city anticipate about six months for construction and commissioning of the measures that have guaranteed savings.