Municipal Projects

When considering a guaranteed energy savings contract for state or local government, consider the following factors:

• More than 40,000 square feet of floor area
• More than $40,000 in annual energy costs
• Aging buildings or equipment
• Recurring maintenance problems or high maintenance costs
• Comfort complaints
• Scarce budget resources
• Limited energy management expertise
• Too many demands on maintenance staff
• Old or failing HVAC equipment, controls, or lighting

State legislation in many states affords government entities the ability to negotiate for energy or water-related building improvements. This enabling legislation is a more attractive procurement option than the traditional process which requires low-bidder awards.

Our guaranteed energy savings contracts are self-funded and enable owners to choose best value products and equipment, including the selection of quality subcontractors. Building improvements can include products and services for HVAC systems and controls, lighting, windows, roofs, doors, plumbing, wastewater systems, life safety systems, and even renewable energy systems.

There are currently two primary financing options for organizations looking to utilize solar power for their facilities:

1. Direct Ownership: A public entity finances and owns the solar system outright
2. Third-Party Financing: Available in some states, an investor owns and operates the solar system but enters a contract with the organization for a predetermined electric rate.

Depending on the organization’s financial capacity, bonds, leases, and Power Purchase Agreements are the most viable vehicle to finance solar power.

In addition, Performance Services provides classroom learning grants with every solar project.

Water management can offer many benefits to state and local government. Some of these benefits include:

1. Reduced water and sewer costs: Low flow water conservation devices reduce water usage and costs as well as sewer costs.
2. Weather-based irrigation controls: This type of control system saves water usage and cost especially during the hot summer months.
3. Reduced energy usage: Low flow water devices reduce the amount of hot water used which, in turn, reduces the amount of energy used to heat the water.
4. Reduction of unbilled water: Replacing old, inaccurate water meters and distribution piping can result in increased revenues for the water district.
5. Wastewater treatment energy usage: Wastewater treatment plants are one of the largest users of energy within a city. Plant upgrades and aeration optimization can dramatically reduce energy usage and save money.

A comprehensive water meter replacement project not only benefits the water distribution system by creating a more efficient operation but allows a municipality to maintain the lowest possible water rates for Clients. In general, smart water meter replacement projects can provide:

• More accurate water usage data: Newer water meters can provide real-time water consumption data to both the utility and Clients.
• More accurate billing process: Hard water, debris, age, and deterioration can reduce the accuracy of analog meters over time, leading to lower measurements and the possibility of unbilled water use. With more precise meter readings, municipalities can bill more accurately.
• Increased revenue: Reducing the amount of unbilled water due to better distribution and more accurate meter readings can increase utility revenue.
• Reduced wear and tear: Real-time water consumption data can provide more proactive service in identifying and resolving issues and leaks.

As LED technology forges ahead, this alternative lighting solution continues to become an attractive retrofit option as the benefits of LEDs outweigh the potential for higher costs.

LEDs are becoming the energy efficient, high-quality lighting choice of schools, hospitals, and municipal buildings. LED’s main application as outdoor lighting provides:

• Extra security
• Increased efficiency
• Improved performance in any weather
• Little to no warm-up time for the fixtures
• Longer life-cycle (the average LED light has a general life expectancy of over 10 years if applied efficiently)

Performance Contracting Legislation By State

Performance contracting, also known as energy savings performance contracting or guaranteed energy savings contracting, is a public construction procurement and financing arrangement commonly used for implementing energy efficiency-focused infrastructure improvement projects. It allows government entities to finance such projects with energy savings, which are guaranteed over a specific period of time by the qualified provider installing the energy-focused improvements.

As performance contracting is defined by state statute, the specific regulations and policies vary by state and, potentially, by type of government entity. To help cut through the clutter, we’ve compiled a quick list of performance contracting legislation for the states we work in.

If you’re interested in learning more about how performance contracting could benefit you, reach out to us today, and our team of experts can help guide you through the process.

Alabama

• Who can use it:
  • State agencies, local governments (cities and counties), school districts, community colleges, and universities: Code of Alabama § 41-16-140 through 144
• Helpful links:
  • Alabama Energy Savings Performance Contracting Guide
  • Performance Contracting Fact Sheet

Arkansas

• Who can use it:
  • Municipalities and counties: AR Code § 14-164-804 through 821
  • State agencies and institutions of higher education: AR Code § 19-11-1201 through 1208
  • School districts: AR Code § 6-20-405
• Helpful links:
  • Arkansas Energy Performance Contracting Office (AEPC) offers assistance to public agencies implementing performance contracts

Colorado

• Who can use it:
  • School Districts and Local Governments: 29-12.5-101
  • State Agencies: 24-30-2001
• Helpful links:
  • Colorado Energy Office’s Performance Contracting Resources

Florida

• Who can use it:
  • State agencies, municipalities (cities and counties), school districts, higher education (universities, colleges, and technical colleges): Statute 489.145

Georgia

• Who can use it:
  • Public schools (K-12), local governments (cities and counties), public higher education, state agencies: C.G.A. 50-37-1

Illinois

• Who can use it:
  • Public school districts: 105 ILCS 5/19b
  • Counties, townships, municipalities, or park districts: 50 ILCS 515/1
  • Public universities: 110 ILCS 62/1

Indiana

• Who can use it:
  • School districts, municipalities (cities and counties libraries, and municipal water or wastewater utilities: Indiana Code 36-1-12.5
  • State agencies: Indiana Code 4-13.6-8
  • State educational institutions: Indiana Code 21-33-4

Kentucky

• Who can use it:
  • Cities, counties, urban counties, consolidated local governments, school districts, and special districts: 45A.352
  • State agencies: KRS 56.770 to 56.784
• Helpful links:
  • KPC Price Contract: A Method That Works

Missouri

• Who can use it:
  • State agencies, colleges, universities, technical schools, counties, municipalities, public school districts: State Legislation 8.231
• Helpful links:
  • Performance Contracting in Missouri: A Guide for K-12 Schools

Tennessee

• Who can use it:
  • Counties, cities, metropolitan governments, towns, and utility districts: State Legislation 12-4-118

Texas

• Who can use it:

• • Public Schools (K-12): Title 2, Education Code §44.901
  • Local Governments (Cities & Counties): Title 9, Local Government Code §302
  • Public Higher Education:  Title 3, Education Code §51.927
  • State Agencies: Title 10, Texas Government Code §2166.406
  • Public hospitals fall within the State or Local jurisdiction of the above codes
• Helpful links:
  • How to Complete an Energy Savings Performance Contract in Texas

A comprehensive water meter replacement project not only benefits the water distribution system by creating a more efficient operation but allows a municipality to maintain the lowest possible water rates for Clients. In general, smart water meter replacement projects can provide:

• More accurate water usage data: Newer water meters can provide real-time water consumption data to both the utility and Clients.
• More accurate billing process: Hard water, debris, age, and deterioration can reduce the accuracy of analog meters over time, leading to lower measurements and the possibility of unbilled water use. With more precise meter readings, municipalities can bill more accurately.
• Increased revenue: Reducing the amount of unbilled water due to better distribution and more accurate meter readings can increase utility revenue.
• Reduced wear and tear: Real-time water consumption data can provide more proactive service in identifying and resolving issues and leaks.

Across decades of the life of any facility, an extra and avoidable expense of facility ownership is incurred through:

• Underperforming equipment
• Inefficient control programming sequences
• Expensive and time-consuming repair processes

To better control the cost of ownership, Performance Services addresses these issues, starting at the design and construction stage. We are not a manufacturer of equipment or tied to any single building automation system, so we can recommend equipment and controls platform based on high-performance standards. We write control system code ourselves to assure accuracy, energy efficiency and an optimal environment.

Our holistic and integrated approach to projects enables lower total cost of ownership for the life of the facility. Accurate controls and location-specific programming ensures environmental quality. Vendor independence means access to a wider pool of maintenance partners, allowing owner control, flexibility on future changes, service options, and lower total cost of ownership.