1 / 7

Town of Merrimac Performance Contracting Initiative

h. Town of Merrimac Performance Contracting Initiative. Briefing for Pentucket Regional Schools March 21, 2013 Steven Weisman, Vice President Peregrine Energy Group, Inc., Owner ’ s Agent. Why use performance contracting?.

tyrone
Télécharger la présentation

Town of Merrimac Performance Contracting Initiative

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. h Town of MerrimacPerformance Contracting Initiative Briefing for Pentucket Regional Schools March 21, 2013 Steven Weisman, Vice PresidentPeregrine Energy Group, Inc., Owner’s Agent

  2. Why use performance contracting? • Town and District lack resources to take on necessary energy infrastructure improvements • Town wants to avoid CIP spending and tax increases • Normal processes for capital project budgeting do not address problems in timely fashion • Town and District want performance protection

  3. Who is using performance contracts? • State of Massachusetts in state buildings • MA regional schools: Blue Hill Regional Tech., Franklin Regional Tech., Greater New Bedford Voc. Tech., So. Middlesex Voc. Tech., Southeastern Regional Tech. • MA cities and towns, including: North Andover, Lawrence, Georgetown, Lowell, Revere, Swampscott, Chelsea, Springfield, Melrose, Worcester, Greenfield, Sudbury, Somerville, Newton, Framingham, West Springfield, Sunderland, Reading, Hamilton, Fall River, Orange, Wakefield…

  4. Performance contracting overview • Strategy for infrastructure renewal andenergy efficiency • Ch. 25A allows an alternative to Ch. 149 bid/design/bid/build • Allows a single contract for many projects in multiple buildings • Guaranteed annual energy savings must exceed project costs • Delivered by specialized energy services companies (ESCOs) • Integrated engineering, design, purchasing, construction, and commissioning improves project quality • Financing is arranged by Municipality • ESCO paid at the completion of construction and commissioning • Debt paid from energy savings retained in operating budget • No increase in tax rates necessary to fund projects

  5. Project Funding / Savings Guarantee • Town and District agree on cost sharing approach • Town authorizes project and secures financing • ESCO paid as sub-projects completed / commissioned • Financing repaid out of utility account using savings • Guarantee: Energy saved meets or exceeds projections • Actual savings analyzed and reconciled by ESCO annually against guarantee • Savings verified by Peregrine as Owner’s Agent

  6. Two Step Contracting Process • Step One: • Investment Grade Audit (“IGA”) agreement was executed by Town and Ameresco in 2011 • Ameresco completed preliminary assessment of potential projects for Town’s consideration • Town picked projects for detailed study • Ameresco prepared study and proposal for Town • Peregrine critiqued Ameresco proposal in detail

  7. Contracting Process [continued] • Step Two: • Town decides whether to proceed to construction or end relationship andpay for the detailed study • If Town wants to proceed • Finalizes Energy Services Agreement (ESA) scope, terms • Secures project financing (e.g., bond or lease) • Signs ESA with Ameresco • Ameresco begins design/construction, collaborating with Town and Peregrine (as owner’s agent)

More Related