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Meeting Date:
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5/25/2017 - 6:30 PM
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Category:
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Report of the Committee on Accountability, Finance, and Personnel
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Type:
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Action
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Subject:
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9. Action on a Request to Enter into Phase Two of Performance Contracts for Energy-Efficiency Projects at Twenty-Six MPS Sites
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Strategic Plan Compatibility Statement:
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Goal 3 Effective and Efficient Operations
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Attachments
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Action on a Request to Enter into Phase Two of Performance Contracts for Energy-Efficiency Projects at Twenty-Six MPS Sites: Proposed Contracts and Supporting Documents
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File Attachment:
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Background:
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At the March 24, 2016, regular meeting of the Milwaukee Board of School Directors, the Board approved three firms - Johnson Controls, Performance Services, and Trane - as energy savings performance contracting service providers and authorized the Administration to enter into project development agreements with one or more of these qualified providers.
At the June 30, 2016, regular meeting of the Milwaukee Board of School Directors, the Board approved a contract with Cooperative Educational Service Agency (CESA) 10 to provide owner’s representative services for performance contracting energy savings and infrastructure improvements. CESA 10 will represent the district’s interests by providing the district guidance and professional opinions pertaining to constructability, coordinating major project work, verifying energy-reduction measurements, and assuring compliance with contracted guaranteed energy savings associated with infrastructure improvements.
At the July 28, 2016, regular meeting of the Milwaukee Board of School Directors, the Board authorized the Administration to work with the City and its Financing Team (Piper Jaffray, Katten Muchin Roseman, LLP, Hurtado, S.C. and Public Financial Management ) to issue adequate bonds at the lowest-cost borrowing to fund the anticipated energy-efficiency projects.
At the September 29, 2016, regular meeting of the Milwaukee Board of School Directors, the Board approved entering into a three-year performance contract under §66.0133 with Johnson Controls and a two-year performance contract under §66.0133 with Performance Services, Inc., for $27 million of energy-efficiency Phase I projects at Vincent High School, Wisconsin Conservatory of Lifelong Learning, and River Trail.
At the March 30, 2017, regular meeting of the Milwaukee Board of School Directors, the Board approved the Financing Team (Underwriter, Bond Counsel, and Financial Advisor) to work with the City and Financing Team for the purpose of developing a plan of finance to borrow for the costs of energy-efficiency projects for Phase II.
For Phase II, Johnson Controls, Performance Services, and Trane were asked to provide formal proposals detailing the proposed scope of work along with expected total cost and projected savings for major infrastructure improvements at three (3) sites and corridor lighting upgrades at twenty-three (23) sites, which will result in significant energy savings and a reduction in deferred maintenance.
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Fiscal Impact Statement:
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Facilities and Maintenance Services has worked closely with the Office of Finance to ensure that the performance contracts requesting approval within this Board item meet the requirements of Wis. Statute §66.0133, Energy Savings Performance contracting, as referenced in the Revenue Limit Exemption for Energy Efficiency, Wis. Statute §121.914(4)(o).
The Administration continues to work with the City and Financing Team to finalize the most advantageous debt structure and anticipates that bonds will be issued prior to June 30, 2017. The Administration will separately request Board approval of a resolution for Revenue Limit Exemptions for Energy Efficiencies, as required by Wis. Statute §121.914(4)(o).
The breakdown of contract costs for each project is identified in the attachments.
The Administration will seek further action by the Board for additional costs, including abatement of asbestos-containing materials (ACM) and debt-issuance costs. Those cost are currently estimated at $2,841,600. The total estimated project cost is expected to be $34,289,927.
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Implementation and Assessment Plan
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Working closely with CESA 10, Facilities and Maintenance Services will oversee the projects going forward to ensure that each project meets MPS building standards and contract requirements.
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Recommendation:
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Your Committee recommends that the Board approve the performance contracts for energy-efficiency projects as described above and attached to this item.
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Approvals:
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Recommended By:
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Signed By:
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Jacqueline M. Mann, Ph.D. - Board Clerk/Chief Officer
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