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January 9, 2025 City Council Regular Meeting
Title
20. Authorize The City Manager To Execute A Contract for Guaranteed Energy Savings With McKinstry in an Amount Not to Exceed $1,875,000. The Office of Sustainability, Real Estate Services Department, Finance Department, and Office of Capital Projects Management have collaborated to procure and negotiate a guaranteed energy savings performance contract with McKinstry. The contract will involve the replacement of old, energy inefficient lighting fixtures with new LED energy efficient fixtures as well as improvements to cure building envelope leakage and penetration issues contributing to energy loss.(Real Estate Services)
Strategic Priority
Good Government
Description

This is for a contract for Guaranteed Energy Savings with McKinstry in the amount of $1,875,000.

The Office of Sustainability, Real Estate Services Department, Finance Department, and Office of Capital Projects Management have collaborated to procure and negotiate a guaranteed energy savings performance contract with McKinstry. The contract will involve the replacement of old, energy-inefficient lighting fixtures with new LED energy-efficient fixtures as well as improvements to cure building envelope leakage and penetration issues contributing to energy loss.   Twenty-seven City facilities are involved across six aldermanic districts.  Twelve of the facilities are community centers and fire stations. The $1.875 Million cost will generate more than $3.48 Million in savings over twenty years and pay back the initial investment in approximately eleven years. This effort reduces energy consumption, cures deferred maintenance, and contributes a big step toward Sustainability objectives.

This scope directly aligns with the ‘Energy Efficiency’ core tenant of the 100% Savannah Plan. By improving city operations, the City can continue to lead by example, showcasing the financial and environmental benefits of performing energy efficiency measures.

Since January 8, 2024, McKinstry has conducted weekly check-ins and numerous site visits, working closely with staff and our owner’s rep, 2KB, to audit facilities and design the final project for construction. McKinstry evaluated 17 different scopes of work but is recommending two key scopes for investment at this time: facility lighting and building envelope improvements. McKinstry has maintained a strong focus on engaging the LDBE community in Savannah, hosting or sponsoring three events to create future engagement. 


 

Recommendation

Approval

Contact
David Keating, Senior Director, Real Estate Services
Financial Impact
Expenditure of $1,875,000 from the General Fund
Review Comments
Attachments
Exhibit 1: Funding Verification- Guaranteed Energy Savings.pdf
Exhibit 2: Purchasing Notes- Guaranteed Energy Savings.pdf
Agenda Plus