District 99 hears Honeywell presentation on energy-savings contract; investment-grade audit eyed Jan. 26

District 99 operations staff and Honeywell representatives presented a high-level proposal Dec. 15 for an energy savings performance contract (ESPC) that would combine energy conservation measures and capital improvements with a tax-exempt lease financing structure.

District presenters said Honeywell’s preliminary analysis identified guaranteed savings that could offset lease payments, reducing or eliminating upfront capital outlay. The district estimated potential annual savings in the $100,000–$200,000 range (with larger amounts possible depending on scope) and noted that Honeywell’s proposal could include up to $2.5 million in additional capital improvements such as security-camera hardware, PA-system upgrades and auditorium remediation.

District staff explained a timing consideration tied to federal clean-energy incentives: to qualify for certain direct payment credits, construction must begin before July 5, 2026, and an interconnection application with ComEd (30–60 days processing) and a 5% spend threshold will be required. Honeywell representatives said an investment-grade audit (IGA) would produce a detailed list of projects, guaranteed savings and construction costs; Honeywell estimated the IGA cost at about 2.5% of total project cost and said that cost can be built into the project if the board proceeds.

Honeywell emphasized performance guarantees: if actual savings fall short of guaranteed amounts, Honeywell would reimburse the district for the difference per the contract structure presenters described. Staff said Honeywell’s IGA will be presented to the board for consideration on Jan. 26, with final project numbers anticipated in March and a final board decision in April.

Board members asked about project risk, scope flexibility and how capital improvements would be selected; presenters said the IGA would provide the detailed menu of projects and financials for board consideration.