1. 1 Town of Dedham Energy Saving Performance Contracting

2. 2 Agenda  Introduction –Tom Ryan  Background on Process – Bill Keegan  What is Performance Contracting Legislated Process – M.G.L. 25a11i Guaranteed Savings  Dedham’s Project Potential Measures Greenhouse Gas Offsets Grants and Rebates  Next Steps  The Overall Process and Timeline

3. 3 Town of Dedham – Energy Management Services Contract Background & Introduction

4. 6/22/2016 4 Background Originally went out with RFP late in 2008 and abandoned the effort based upon concerns expressed by DOER and IG Consulted with Department of Energy Resources (DOER) and the Inspector General (IG) office to revamp the RFP IG’s office issued an Advisory for the Procurement of Energy Management Services- recommending towns obtain a consultant with the expertise to validate and verify the estimates

5. 6/22/2016 5 Background DOER came out and provided technical assistance and training on the benefits and details of Energy Management Services Contracts. Our research confirmed this was a promising avenue to pursue – just had to be diligent in all of our efforts

6. 6/22/2016 6 Background Obtained Town Meeting Authorization – Article 12 – May 2009 – In order to undertake this endeavor Working group formed including the Town Administrator, School Superintendent, Finance Director, Treasurer/Collector, Town’s Purchasing Agent, School Business Manager, Town & School Facility Managers and Chairman of BPCC

7. 6/22/2016 7 Background Learned that the Energy Management Services Contract has three core components: Technical, Financial and Contractual Obtained outside assistance from Source One (technical advisor), Unibank (Town’s financial advisor), and Beacon Integrated Solutions (contract & Esco advisor)

8. 6/22/2016 8 Background Issued the RFP, had informational meetings and received 8 responses The working group, with the assistance of Beacon Integrated Solutions and Source One, had presentations from 4 of the firms and selected Siemens Working Group has been working diligently over the last several months to finalize the details for your groups and Town Meeting

9. 6/22/2016 9 Background Presentation and detail information will demonstrate the excellent effort of all parties Project is a major town wide undertaking in construction and rehabilitation on most buildings Working Group believes that it makes sense from both an Energy and Financial standpoint We need you to support and endorse a recommendation to Town Meeting for a borrowing authorization for the total project Only borrow what is necessary – Town will benefit over the life of the project and thereafter

10. 10  Performance Contracting is a legislated process [MGL 25A 11i and 11c] which allows Municipalities to procure infrastructure projects without the need for any capital.  Repayment of all costs over time from the on-going utility guaranteed savings.  ESCo typically handles/coordinates all aspects of the project; develop, design, finance, construct, maintain. What is Performance Contracting Performance Contracting installs energy efficient facility improvements, paid for out of guaranteed energy savings from your existing operating budget.

11. 11 Utility related capital improvements paid from utility and operating cost savings  Guaranteed performance  Single source responsibility  Improvements can be made with minimal to no impact to taxpayers  Supported by Massachusetts enabling legislation How it works What is Performance Contracting (ESPC)? Siemens’s focus is the Total Life Cycle Cost of Ownership

12. 12 Siemens Dedham Develop DesignConstructMaintain Finance ESCo is Single-Source Provider What is Performance Contracting Source One Beacon Integrated Solutions Technical Advisor Energy Engineering, PM Technical Advisor Legislation, RFQ, Contracts

13. 13 Dedham’s Project Domestic Water Upgrades Walk-in Freezer Controls Unit Ventilators Replacements Network Controllers Infrared Heat Boiler Replacements Pool Cover Vending Machine Controllers Steam System ImprovementsBuilding Envelope Improvements Energy Management System [EMS]Lighting and Lighting Controls LED Traffic Signals Domestic Hot Water Upgrades Phase II - Energy Efficient Windows

14. 14 Dedham’s Project The Process December ‘09Siemens’ Team began Data collection February ‘10 March ‘10 April ‘10 May ‘10 January ‘10Working Group reviews initial findings Working Group reviews budgetary scope and costs Working Group reviews refined scope and costs Working Group reviews near final scope and costs Town Meeting Siemens’ Team continues to develop and refine scope, cost, and savings Siemens’ Team finalizes details for scope, cost, and savings

15. 15 Dedham’s Project Est. Project Cost Est. Utility Incentives $650,000 $382,205 Grants $500,000 $12,344,681 Guaranteed Annual Savings Phase I Summer 2010 $9,278,546

16. 16 Dedham’s Project Greenhouse Gas Offsets

17. 17 Dedham’s Project Grants and Rebates  DOER, EECBG Grant for $150,000 towards Energy Management System [EMS]  Utility Rebates $500,000 [app] in Electric and Gas incentives  Congressional Grant $500,000 for PhotoVoltaic [PV] systems at Town Hall and DPW

18. 18 Questions

19. 19 Thank You. Siemens Building Technologies