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City ends Johnson Controls PDA after Clean Water SRF application failed to score in priority list
Summary
After notice from EGLE that the city's Clean Water SRF application did not score high enough, the Commission voted to terminate the project development agreement with Johnson Controls and reconsider next steps for wastewater treatment plant upgrades.
The Alma City Commission voted to terminate a project development agreement (PDA) with Johnson Controls for proposed wastewater treatment plant upgrades after learning the city did not score sufficiently in the state Clean Water State Revolving Fund (CWSRF) funding cycle.
City staff told commissioners they had engaged an engineer to prepare the application and that the performance-based contracting approach Johnson Controls had proposed was unlikely to deliver sufficient value for a project of this size because expected energy-efficiency gains and guarantees would not offset costs. "We did not score high enough," a city official said, explaining the decision to end the PDA and regroup on the project scope and funding strategy.
Staff said there would be some sunk costs for preparing the application regardless of which firm was engaged, and that the city intends to return to the commission with options for future improvements to the plant.
The motion to terminate the PDA was carried by voice vote; staff said they will explore alternative approaches and return with recommendations for next steps and funding strategies.
