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Brookings council approves $3.36M energy-savings contract with Ameresco

City of Brookings City Council · July 23, 2024
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Summary

The council authorized the city manager to sign a roughly $3.36 million energy savings performance contract with Ameresco to fund LED, HVAC, window/door, fire-alarm and roof projects, projects partially funded by expected energy-cost savings and with an estimated 15% annual energy reduction.

The Brookings City Council approved Resolution 24-022 authorizing the city manager to enter an energy savings performance contract with Ameresco, a performance contractor, using the TIPS interlocal purchasing system with an estimated contract value of $3,356,000.

Jared (presenting for the project team) outlined the scope: LED lighting conversions across city facilities, HVAC upgrades at the East Fire Station, Larson Ice Center and Dakota Bank Center, window and door replacements at the Larson Ice Center and Dakota Bank Center, a fire-alarm replacement at the Larson Ice Center to address ADA deficiencies, and an East Fire Station roof replacement. Jared said the Ameresco investment-grade audit identified energy-conservation measures and that the payment and financing structure is designed so energy-cost savings help offset financing and project costs.

When asked how much of the package represents work the city would otherwise have undertaken, Jared said about $1.7 million of the $3.356 million aligns with items already in the city’s five-year CIP, while lighting projects and other items are being advanced through this contract to accelerate completion. Jared told the council the Ameresco team projects about a 15% reduction in the city’s carbon footprint and roughly a 15% reduction in annual energy consumption from the identified scope.

Council members asked follow-up questions about project selection and whether other ideas (for example solar) were ruled out; Jared said many ideas were considered but some were not viable for this procurement approach and that remaining projects could be handled via the city’s CIP. After discussion the council voted to approve the resolution by roll call.

Council did not identify amendments to the contract during the meeting; the resolution authorizes execution of required documents and anticipates project phasing and coordination with staff and Ameresco.