[00:00:05]
>> GOOD AFTERNOON. WE HAVE A SPECIAL WORK SESSION TODAY FOR MONDAY,
[1. Call to Order]
MAY 13, AND WE WILL CALL THIS MEETING TO ORDER AT 4:45 P.M.>> THANK YOU. APPRECIATE THIS.
I'M GOING TO TURN IT DIRECTLY OVER TO KEVIN JOLMA,
[2. Work Session]
OUR EXECUTIVE DIRECTOR OF FACILITIES AND OPERATIONS.KEVIN HAS A GUEST WITH HIM REPRESENTING AMERESCO WHO WE'RE DOING BUSINESS WITH, BRIAN JEWETT. KEVIN?
>> I APPRECIATE IT. THIS IS A FAIRLY COMPLICATED LITTLE PROCESS.
I COULD HAVE TAKEN FIVE PAGES TO WRITE IT UP AND THERE'D STILL BE QUESTIONS, SO I THOUGHT IT'D BE BEST TO HAVE A WORK SESSION, BE ABLE TO LISTEN AND TALK AND ASK QUESTIONS.
THE REASON THIS IS A LITTLE MORE COMPLICATED IS I'M TRYING TO TIE UP THREE SEPARATE ENTITIES INTO ONE FUTURE CONTRACT.
WE'RE GOING TO TALK ABOUT THE CLEAN BUILDINGS ACT, WHICH IS PART OF WHAT AMERESCO WILL BE HELPING US OUT WITH.
WE'RE GOING TO TALK ABOUT THE SECOND PHASE OF THE CBS WHERE WE'RE CREATING A PLAN OF HOW TO COMPLY TO THAT LAW.
WE'RE ALSO GOING TO TALK ABOUT A POTENTIAL ESCO PROJECT, WHICH IS AN ENERGY SAVING CONTRACTOR OPTION.
WE'LL GET INTO MORE OF WHAT THAT IS BECAUSE I KNOW YOU FOLKS HAVEN'T DONE THAT, AND I'VE DONE THIS.
MY FOURTH, I BELIEVE, OVER THE LAST 20 YEARS.
THEY'VE BEEN VERY SUCCESSFUL AND EVERY ONE OF THEM HAS GONE AS PREDICTED.
BRIAN, I'LL JUST START OUT WITH HOW THIS PROCESS STARTED.
THE CLEAN BUILDINGS ACT WAS INITIATED IN 2019.
YOU'VE READ MY COVER SHEET TO WHAT IT'S FOR.
IT'S TO CREATE A ENERGY USAGE INDEX INTENSITY SCORE FOR EACH BUILDING, WHICH SIMPLY PUT, THIS SIZE BUILDING SHOULD TAKE THIS MUCH ENERGY.
ARE YOU ABOVE IT OR BELOW IT? IF YOU'RE ABOVE IT, HOW DO YOU GET BELOW IT? THAT'S WHAT WE'RE DOING, TRYING TO ESTABLISH AN ENERGY USAGE FOR EACH BUILDING.
IT'S GOING TO BE VERY DIFFICULT ON MANY OF HARD BUILDINGS.
THE ONE WE'RE TALKING ABOUT IS BATTLE GROUND HIGH SCHOOL, WHICH WAS BUILT IN THE '50S, '60S, '70S, '80S '90S, AND THEY'VE STILL GOT ORIGINAL WINDOWS AND PORTIONS.
WE'RE GOING TO NEED TO GET THAT UP INTO TODAY'S ENERGY STANDARDS.
THAT IS THE END RESULT IS WE HAVE TO COME UP WITH A PLAN TO DO THAT, WHETHER THAT'S ACHIEVABLE IS ANOTHER THING.
IN THAT PROCESS, STEP NUMBER 1 IS TO CREATE A BASELINE, IS TO PUT ALL OF OUR UTILITY BILLS.
HOW MANY YEARS BACK DO WE GO? JUST A COUPLE OF YEARS BACK.
WE'LL PUT IN ALL OF OUR ENERGY USAGE FOR THAT BUILDING, OF COURSE, GIVEN THE SIZE, THE TYPE OF BUILDING IT IS, AND OTHER PARAMETERS.
THE STATE IN THE CBS CLEAN BUILDINGS ACT, CBA CLEAN BUILDING STANDARDS, THERE'S A WACK IN A HOUSE BILL.
THAT'S WHY THERE'S A S AND AND A B.
THE FIRST THING TO DO IS, LIKE I SAID, TO GET THOSE IN THERE, ESTABLISH YOUR TARGET.
I STARTED TO TALK WITH AMERESCO WHO HAD DONE MULTIPLE ESCOS IN THE PAST, TO ASSIST US IN THAT.
THERE'S A LOT OF RESEARCH IN WHAT THE BILLS WERE, PUT IT INTO THE ENERGY STAR SYSTEM.
THAT IS PART OF THE LAW, CORRECT BRIAN, THAT WE HAVE TO HAVE ALL OF OUR INFO INTO THE ENERGY STAR? IT'S PART OF THE LAW.
WE WILL DO THAT WITH THE ASSISTANCE OF AMERESCO.
THE ONLY SCHOOL THAT CURRENTLY MEETS THAT WE HAVE TO LOOK AT RIGHT NOW IS BATTLE GROUND HIGH SCHOOL BECAUSE OF ITS SIZE.
FOLLOWING YEAR AFTER IS [INAUDIBLE], FOLLOWING YEARS AFTER IS SOME OTHER SCHOOLS.
THIS IS THE FIRST STEP IN EVERY SCHOOL DISTRICT AND EVERY COMPANY IN WASHINGTON. ANYBODY WITH A BUILDING?
IT'S GOING TO COST A LITTLE MONEY, BUT WE HAVE TO.
WE'RE GOING TO GET OUR BASELINES ON ALL OF OUR BUILDINGS PUT IN.
THAT'S OUR FIRST PORTION OF WORK THAT I DESCRIBED.
THEN THE SECOND PORTION OF WORK, AMERESCO IS GOING TO TRY TO FIND AN ENERGY MANAGEMENT PLAN TO GET US THERE. THAT WILL BE ESTABLISHED.
THE THIRD PORTION I'VE TALKED ABOUT IS THE ESCO PORTION.
AS WE'RE DOING THIS, WE'RE GOING TO ALSO LOOK AT WAYS WE CAN CUT ENERGY IN ALL OF OUR BUILDINGS.
THAT IS OBVIOUSLY WHAT HE'S DOING.
IF WE'RE ABLE TO TIE SOME OF THOSE PROJECTS TOGETHER WITH SOME OF OUR CAPITAL LEVY PROJECTS, WE MAY BE ABLE TO BUNDLE THEM INTO A LARGER PROJECT WITH THE STATE.
[00:05:02]
THAT GIVES A LOT OF FLEXIBILITY AND ABILITY TO LEVERAGE OUR MONEY.IN THE PAST I'VE PASSED ON ONE OF THESE, I GOT US A FREE MILLION DOLLARS BY LEVERAGING THE PROJECTS WE DID.
I PULLED THE BOARD AGENDA ITEM BECAUSE IT IS A LITTLE CONFUSING.
IF ALL GOES WELL TODAY, NEXT BOARD MEETING, I'M GOING TO BRING A VERY SIMILAR ONE, COVER AGENDA BACK ITEM TO YOU.
THAT WILL BE MORE REWORDED TO, WE'RE GOING TO COMMIT TO THIS.
WE'RE NOT APPROVING THESE FEES, WE'RE GOING TO COMMIT TO PAYING THEM.
AFTER WE DO THAT, THE STATE WITHIN A WEEK OR TWO WILL CREATE THE DOCUMENTS WITH THESE DOLLAR AMOUNTS, OUTLINING THAT PROJECT.
IT'S US, THE STATE DEPARTMENT OF ENERGY SERVICES, AND AMERESCO.
BUT WHAT THE STATE WANTS TO SEE IS MEETING MINUTES THAT ACKNOWLEDGE THE BOARD IS WILLING TO PROCEED WITH THESE PORTIONS OF WORK NOW.
THEN THEY'LL CREATE A CONTRACT.
I'LL BRING IT BACK TO YOU FOR SIGNATURE AND PROCEED.
THAT'S MY BACKGROUND OF WHAT WE'VE DONE HERE.
I'LL STOP RIGHT THERE TO SEE IF THERE'S ANY QUICK QUESTIONS, IF I HAVE NOT DESCRIBED WHAT I SHOULD HAVE.
>> WELL, I JUST WANT TO MAKE SURE I UNDERSTAND THIS CORRECTLY.
THE FIRST PHASE OF THIS IS TO ESTABLISH BASELINES IN EACH BUILDING.
>> THAT'S THE CURRENT CONTRACT WE'RE TALKING ABOUT, IS TO ESTABLISH THAT.
BASICALLY JUST DO THE ENERGY AUDIT.
>> DO THE ENERGY AUDIT, GET IT PUT INTO THE SYSTEM LIKE THE STATE IS REQUIRING.
THAT'S THE FIRST PART, THE 49816, AND THAT'S DISTRICT-WIDE.
>> I GUESS I'M CONFUSED, IS IT BEING REIMBURSED BY THE STATE, OR IT'S COMING OUT OF [INAUDIBLE]?
>> THIS IS AN UNFUNDED MANDATE.
>> THIS IS AN UNFUNDED MANDATE.
BUT WHAT I HOPE TO DO WITH THE ESCO IS TO ACTUALLY GET SOME OF THAT MONEY BACK.
>> OUR HOPE IS THAT WHILE IT'S AN UNFUNDED MANDATE UPFRONT, THAT THE SAVINGS THAT RESULT FROM THE ESCO SERVICES WILL MAKE IT COST EFFICIENT FOR US MOVING FORWARD.
>> ALONG WITH TED'S QUESTION, IS THERE SOMEBODY ELSE?
>> I APPRECIATE ALL THOSE QUESTIONS.
THEN THE ONLY THING THAT I SEE IN WHAT YOU SAID THAT MIGHT BE CONSIDERED WOULD BE YOU SAID THAT WE'RE GOING TO DO THIS NOW AS OPPOSED TO MAYBE NOT DOING IT NOW.
ARE YOU THINKING THAT THIS IS REALLY NOW A REALLY GOOD TIME TO DO THIS YOURSELF?
>> WELL, WE HAVE TO BE IN COMPLIANCE BEFORE JUNE 26, IF I RECALL, ON THE BATTLE GROUND HIGH SCHOOL.
I HAVE TO HAVE A PLAN IN PLACE AND BE MOVING FORWARD TO IT, SO IT NEEDS TO BE DONE.
>> THAT DIDN'T ANSWER MY QUESTION, REALLY.
DO YOU THINK NOW IS THE RIGHT TIME OR ARE YOU SUGGESTING MAYBE ANOTHER TIME MIGHT BE A BETTER TIME?
>> NO, WE NEED TO GET THE PLAN OUT BY THEN.
>> WE'RE NOT LATE, BUT WE'RE NOT OVER.
>> IS THERE A FINE ASSOCIATED WITH MISSING THE DEADLINE?
>> I HAVE NO IDEA. I'M SURE THERE WILL BE.
>> IF WE DON'T GET THE STUFF IN.
>> CORRECT. IF YOU DON'T SUBMIT OR YOU'RE NOT IN COMPLIANCE, THERE'S A $5,000 FEE A YEAR, PLUS $1 A SQUARE FOOT PER BUILDING.
>> THAT'S 250,000 FOR BATTLE GROUND HIGH SCHOOL, PLUS FIVE. THAT'S A PENALTY.
THAT'S IF WE DON'T GET THE INFORMATION IN, WHICH IS A SEPARATE CONCEPT OF WHETHER WE MEET OUR ENERGY USAGE INTENSITY TARGET.
THAT'S ANOTHER CONVERSATION. THANK YOU.
>> VERY IMPORTANT FOR US TO KNOW THOSE REPERCUSSIONS.
>> DID YOU SAY 1,000 PER SQUARE FOOT? BRIAN, WHEN YOU RESPOND, IF YOU COULD LEAN INTO THAT MIC A LITTLE BIT TO SHARE WITH HIM.
OR WE CAN GIVE YOU YOUR OWN PORTABLE.
[INAUDIBLE]. [LAUGHTER] IT'S PICKING YOU UP, BUT IT WON'T TRANSLATE WELL TO THE TAPE.
IS THAT THE ONLY QUESTION WE HAVE? THANKS FOR ME, ANYWAY, SORRY.
HOW MANY MORE YEARS DOES BATTLE GROUND HIGH SCHOOL HAVE TO SERVE THE STUDENTS, WOULD YOU SAY, IN AN ESTIMATION? THAT'S ALWAYS [INAUDIBLE].
I HAVE NO IDEA HOW LONG IT WOULD BE THERE.
I MEAN AS FAR AS THE CONDITIONS,
[00:10:01]
KNOWING ALL THE THINGS THAT IT NEEDS.WELL, THE STATE SAYS AFTER 30 YEARS YOU CAN REPLACE IT.
IT'S 70 YEARS OLD NOW AND WE ADD ON AND WE IMPROVE.
IT'S NOT IN MY PLANS TO REPLACE IT.
DOES THIS AUDIT AND EVERYTHING INVOLVE ALLOWANCES FOR VERY OLD BUILDINGS THAT AREN'T IN COMPLIANCE? THE MEASUREMENTS COME OUT DIFFERENTLY IN YOUR PROPOSAL WHEN YOU MAKE IT.
IT TAKES INTO ACCOUNT AGE OF BUILDING AND LIFE CYCLE OF EQUIPMENTS.
IF YOUR BUILDING IS NOT MEETING YOUR TARGET, YOU HIRE AN EUI.
THERE'S CONDITIONAL COMPLIANCE SAYING, HEY, THIS EQUIPMENT HAS LIFE LEFT.
WE'RE NOT GOING TO REPLACE THIS EQUIPMENT FOR ANOTHER FIVE YEARS BECAUSE IT DOESN'T FINANCIALLY MAKE SENSE, BUT YOU HAVE TO MAKE THAT CASE TO THE DEPARTMENT OF COMMERCE SO THAT'S A COMPLIANCE PATHWAY.
EITHER EUI REDUCTIONS, CONDITIONAL COMPLIANCE, ALL OF WHICH IS ALLOWED.
IT'S JUST A MATTER OF DOCUMENTING THAT.
WE'RE NOT GOING TO BE PENALIZED BECAUSE IT'S A REAL OLD BUILDING OR SOMETHING, AND OH, MY GOSH, NOW AND THEN WE TEAR IT DOWN AND WE BUILD A NEW ONE IN TWO YEARS OR WHAT? NO, THAT'S NOT THE INTENTION OF THE BUILD.
THE INTENTION IS TO UNDERSTAND WHERE YOU FALL WITH YOUR ENERGY USE.
COMMERCE IS REALLY WORKING WITH SCHOOL DISTRICTS, STATE AGENCIES, PUBLIC ENTITIES THAT THEIR HANDS ARE FORCED WITH LIMITED FUNDS.
I THINK IT IS IMPORTANT AND I WANT TO MAKE CLEAR TO THE BOARD THAT THERE ARE NO PLANS NOW OR IN THE NEAR FUTURE TO REPLACE EITHER BATTLE GROUND HIGH SCHOOL OR PRAIRIE HIGH SCHOOL.
I WAS THINKING MORE IN TERMS OF WARREN AND PLEASANT VALLEY, WE'RE GOING TO HAVE TO COMPLY WITH THOSE BUILDINGS, BUT THEY'RE VERY OLD AND THEY'RE GOING TO BE REPLACED SO THE PENALTY IF YOU KNOW.
AGAIN, WE JUST PASSED A CAPITAL LEVY THAT WE AGREED THAT WE WOULD NOT GO AFTER A BOND FOR AT LEAST FOUR YEARS AND THEN WE'RE LOOKING AT A BOND POTENTIALLY AFTER THAT OR RENEWING A CAPITAL LEVY.
IT'S JUST I THINK IT'S WE HAVE TO BE CAREFUL BECAUSE WE KNOW THE DIFFICULTY ASSOCIATED WITH PASSING A BOND AND WE ALSO KNOW A LOT OF THE ISSUES ASSOCIATED FOR OUR COMMUNITY IN TERMS OF COSTS AND TAXES RELATED TO PASSING A BOND.
SO WE MAY END UP HAVING TO WORK THE BEST WE CAN WITH THE FACILITIES THAT WE CURRENTLY HAVE.
THANKS FOR POINTING THAT OUT. THAT MAKES A LOT OF SENSE.
HOW LONG WOULD YOU EXPECT BEFORE WE ACTUALLY START IMPLEMENTING YOUR PROPOSALS THAT YOU'RE GOING TO BE MAKING? THEY TAKE YEARS, RIGHT? WELL, THIS DOCUMENT WILL TAKE ABOUT SIX MONTHS TO DELIVER THE DOCUMENTATION AND SHOVEL READY PROJECT.
THAT'LL TAKE HOW LONG? I THINK WE'RE GOING TO GET TO THAT, TERRY.
I EXPECT THIS TAKES SOME YEARS.
I WANT TO GO BACK AND INTRODUCE AMERESCO, INTRODUCE DES, DEPARTMENT OF ENTERPRISE SERVICES, ENERGY PROGRAM AND REALLY BREAK OUT WHAT WE'RE DOING HERE BECAUSE THERE'S OBVIOUSLY LIKE KEVIN SAID NUMBER OF THINGS BUNDLED INTO ONE CONTRACT.
AMERESCO IS AN ENERGY SERVICES COMPANY.
WE ARE PRE QUALIFIED WITH THE STATE THROUGH DEPARTMENT OF ENTERPRISE SERVICES ENERGY PROGRAM, WHERE ONE OF MANY [INAUDIBLE] HERE IN THE STATE THAT ARE PRE QUALIFIED.
THE DES ENERGY PROGRAM ALLOWS FOR PUBLIC ENTITIES TO DIRECT SELECT AN ESCO AND AMERESCO IN THIS CASE, BY SIGNING AN INTER AGENCY AGREEMENT WITH THE STATE.
THE STATE FACILITATES THE CONTRACT SO NOW IT'S A THREE LEGGED STOOL BETWEEN AMERESCO, DEPARTMENT OF ENTERPRISE SERVICES ENERGY PROGRAM AND BATTLEGROUND PUBLIC SCHOOLS.
DES WILL CONTRACT WITH THE DISTRICT, DES WILL CONTRACT WITH AMERESCO AND NOW AMERESCO AND THE DISTRICT GET TO WORK TOGETHER WITH A DES PROJECT MANAGER REPRESENTATIVE ALONG FOR THE RIDE WITH OUR PROJECT SO MAKING SURE WE'RE WORKING CORRECTLY TO THE CONTRACT AND THE DISTRICT IS GETTING WHAT THEY EXPECTED AND EVERYTHING IS ABOVE BOARD.
SO IT'S A VERY FACILITATED PUBLIC FACING CONTRACT, AND THEY HANDLE ALL OF THE DOCUMENTS FOR FUTURE AUDITORS.
IF THE DISTRICT WERE EVER TO GET AUDITED IN THIS PROJECT, YOU CAN CALL DES AND THEY WILL HAVE THOSE CONTRACTS THAT INFORMATION, EVERYTHING YOU CAN IMAGINE.
IT DOES PROTECT THE DISTRICT FROM A LOT OF RISKS OF CONSTRUCTION.
THE CONTRACTUAL AGREEMENT IS BETWEEN DES AND AMERESCO NOT AMERESCO AND THE DISTRICT? CONTRACTUALLY, YES, BUT IT'S A THREE LEGGED STOOL.
YOU'RE GOING TO CLAIM THAT YOU'RE WORKING WITH AMERESCO, AMERESCO WILL CONTRACT WITH DES, DES WILL CONTRACT WITH THIS DISTRICT, AND THEN WE THE DISTRICT AND AMERESCO WORK TOGETHER.
I GUESS I WAS THINKING MORE IN TERMS OF, LIKE TS AND CS, LIABILITIES, THINGS LIKE THAT.
LIKE, WHERE'S THAT CONTRACTUAL?
[00:15:02]
WE HOLD THOSE.THE RISK IS ON US, AND THE DISTRICT IS CONTRACTING US THROUGH THE STATE.
BUT WE ACT AS A NORMAL CONTRACTOR HAVING INSURANCES, BONDING INSURANCES, EVERYTHING IN BETWEEN.
AS WE MOVE THROUGH THIS AND WE GET INTO THE ESCO, ONE ONE OF THE THINGS ABOUT THE ESCO PROJECTS IS YOU FIND PROJECTS THAT YOU CAN PERFORM THAT WILL SHOW PROOF POSITIVE THAT THEY'VE SAVED ENERGY AND IF THEY HAVEN'T DONE THAT AMERESCO PAYS THE DIFFERENCE.
IT PUTS THE ONUS ON THE CONTRACTOR TO PROVE THEY'RE GETTING OUR ENERGY SAVINGS AND THOSE ARE DONE BY FOLLOW UP AUDITS, AND WE'VE HAD, LIKE I SAY, THREE OF THESE, AND THEY'VE ALL GONE FLAWLESSLY, WE'VE SAVED FAR MORE THAN EXPECTED.
WHEN IT CAME TO THIS RELATIONSHIP, WAS IT THE STATE? I JUST WANT TO UNDERSTAND THIS.
I JUST WANT TO FULLY UNDERSTAND HOW THIS RELATIONSHIP ORIGINATED.
BUT WAS IT THE STATE THAT CHOSE AMERESCO OR IS IT THE DISTRICT THAT CHOSE AMERESCO? ACTUALLY IT WAS QUANTUM ENGINEERING, GRANT THORNTON AND AMERESCO PURCHASED QUANTUM.
I STARTED OUT WITH QUANTUM ENGINEERING. GREAT FIRM.
>> BUT I GUESS MY POINT WAS IS THIS WASN'T LIKE A COMPETITIVE BID THAT WE PUT OUT TO.
LIKE I SAY, BACK IN AS I PUT IN MY EXHIBIT, WE AGREED WITH THE STATE BACK IN 2019 TO GO AHEAD AND RE ENTER INTO THAT. PROCESS.
>> THE INTERAGENCY AGREEMENT DOES FULFILL YOUR PUBLIC PROCUREMENT REQUIREMENT.
THAT IS THAT IS PUBLIC FACING.
ANY SUBCONTRACTOR THAT WE USE UNDERNEATH AMERESCO IS ALSO PROCURED WITHIN THIS CONTRACT.
WE CAN ALSO AVOID LOW BID, CHOOSE BEST VALUE, LOCAL CONTRACTORS, PEOPLE WHO YOU LIKE TO WORK WITH.
AGAIN, ALL BOB BOARD AND TRANSPARENT.
>> IN A WAY SIMILAR IN CASE OF DA.
>> THE CONTRACT HAS BROKEN OUT INTO TWO THREE PIECES.
THE FIRST IS THIS AUDIT DEVELOPMENT.
THIS IS AN INVESTMENT GRADE AUDIT, OBVIOUSLY, WITH NUMEROUS DIFFERENT SCOPES OF CONSULTING, PROJECT DEVELOPMENT, AND AUDITING.
THOSE ARE THE THREE BUCKETS THAT WE'RE DOING.
THE DELIVERABLE IS A SHOVEL READY PROJECT, DETERMINING SCOPES AND MORE OR LESS A MENU OF WHAT YOU WOULD LIKE TO CHOOSE.
ON THE BACK OF THE PROPOSAL, YOU CAN SEE A NUMBER OF LINE ITEMS AND SCOPES SAYING LIGHTING RETROFITS AND ROOFINGS AT AMBOY MIDDLE SCHOOL AS AN EXAMPLE.
THOSE ARE ALL OF THE MENUS OR THE MENU THAT YOU'LL HAVE A LIST.
THEY'LL BE GUARANTEED PROJECT COSTS ASSOCIATED WITH EACH LINE ITEM.
THAT'S A GUARANTEED PROJECT AT.
THAT'S OPEN BOOK FINANCIALS, SOMETHING YOU DON'T USUALLY SEE FROM CONTRACTORS.
YOU'LL SEE OUR OVERHEAD AND PROFIT, YOU'LL SEE OUR BONDING INSURANCES, YOU'LL SEE OUR DESIGN FEES, YOU'LL SEE EVERYTHING COMPARED TO A BLACK BOX WITH 3% ON TOP.
PEOPLE ARE MARKING UP PENS FOR 20%.
JUST A DIFFERENT CONTRACTING VEHICLE.
AT THE END OF THIS AUDIT AND DEVELOPMENT, WE WOULD ASK YOU TO CHOOSE YOUR CHOOSE YOUR POISE AND CHOOSE YOUR SCOPE, WHAT FITS WITHIN THE BUDGET, WHAT MAKES SENSE FINANCIALLY, AND WHAT DO YOU NEED RELATED TO THE CLEAN BUILDINGS PERFORMANCE STANDARD.
BECAUSE OF LEGISLATION. AS YOU MOVE FORWARD WITH CONSTRUCTION, WE WOULD REFINE AND WRITE AN ENERGY SERVICES PROPOSAL, SIMILAR TO WHAT THIS IS.
IT IS A VERY LONG TECHNICAL DOCUMENT THAT IS A TEMPLATE FOR THE PROJECT DESCRIBING SCOPE, WHAT WE'RE DOING, THE EXCLUSIONS, WHERE WE'RE DOING IT, WHEN WE'RE DOING IT, ALL OF THE DOCUMENTS REQUIRED TO CONSTRUCTION, AND THEN THE PREROGATIVE IS FOR THE DISTRICT AGAIN TO APPROVE THAT DOCUMENT.
DES WOULD THEN CONTRACT AGAIN, SAME PROCESS, A CONSTRUCTION CONTRACT, USING ALL OF THE OPEN BOOK FINANCIALS AND SCOPES WE'VE DECIDED.
THEN WE WOULD ACT AS A GENERAL CONTRACTOR IMPLEMENTING THAT WORK ON YOUR BEHALF.
WE'RE SITTING ON YOUR SIDE OF THE TABLE HELPING FACILITATE CONTRACTORS, SCHEDULES, WORKING OFF HOURS.
WE WANT TO MAKE SURE THAT WE'RE NOT, YOU KNOW, OBSTRUCTING SCHOOL DISTRICT HOURS.
JUST TO BREEZE THROUGH THIS, AS WE FINISH CONSTRUCTION, WE WILL GIVE YOU ALL THE [INAUDIBLE] DRAWINGS, EVERYTHING YOU NEED TO CLOSE OUT THE PROJECT.
BUT A YEAR AFTER CONSTRUCTION, WE FOLLOW UP WITH A MEASURE AND VERIFICATION REPORT, WHICH IS A FOLLOW UP AUDIT THAT KEVIN WAS SPEAKING TO THAT IS ENSURING THAT THE PROJECTS WE INSTALLED MET THE GUARANTEED ENERGY SAVINGS THAT WE SAID UP FRONT.
IF AMERESCO DOES NOT MEET THOSE GUARANTEED ENERGY SAVINGS,
[00:20:01]
WE COME BACK MAKE ADJUSTMENTS TO THE FACILITY TO ACHIEVE MORE SAVINGS.YOU CAN LOWER YOUR EUI AND BE COMPLIANT WITH THE CLEAN BUILDINGS PERFORMANCE STANDARD, OR IF YOU ARE BORROWING LEVERAGING YOUR SAVINGS TO PAY FOR A PROJECT, AMERESCO WOULD PAY THE DIFFERENCE.
IF WE SAID YOU WOULD SAVE 100%, BUT YOU ONLY SAVED 95 AND THERE'S A FINANCIAL GAP, AMERESCO WILL PAY THAT GAP SO THAT YOU ARE SEEING A SELF FUNDED PROJECT.
THAT'S THE GUARANTEES THAT WE STAND BEHIND.
IT'S REALLY ADVANTAGEOUS FOR US TO BE THOROUGH UPFRONT TO ENSURE THAT WE'RE NOT MISSING A BEAT, NOT MISSING AN OPPORTUNITY OR OVERSTATING THE PERFORMANCE OF THE EQUIPMENT.
AGAIN, THAT RISK IS REALLY TRANSFERRED ONTO AMERESCO AND IN ALL CAPACITY IF WE DESCRIBE THE SCOPE AND DO THE WORK, AND THE COST IS OVER THE GUARANTEED PROJECT COST.
THAT RISK IS ON AMERESCO AND IS NOT PASSED TO THE DISTRICT.
THE INTENT IS SAYING IF THIS PROJECT COSTS $100, BUT IT TRULY COSTS 120, WE WOULD PAY THAT $20 AND NOT ASK THE DISTRICT FOR MORE MONEY.
THE GOAL, THE INTENT OF THIS CONTRACT IS NOT TO HAVE CHANGE ORDERS.
THERE'S NO CHANGE ORDERING EQUIPMENT.
THERE'S NO LIL BIDDING, SO WE CAN GET MORE LATER.
THE ONLY CHANGE ORDERS WOULD BE AGREED UPON SCOPE CHANGE.
MAYBE WE'RE UPGRADING TO A BIGGER SYSTEM.
MAYBE WE'RE ADDING A FENCE THAT WE ORIGINALLY DIDN'T DISCUSS OR MAYBE THE DESIGN ASKED FOR THE EQUIPMENT TO BE ON THE GROUND AND NOT THE ROOF.
THERE'S THINGS THAT COULD CHANGE.
BUT AGAIN, WE'RE TRANSPARENT AND NOT PURSUING CHANGE ORDERS.
WE'RE NOT A LOW BID CONTRACTOR. IN THE SCOPE.
SORRY. IN THE SCOPE, THERE'S A NUMBER OF DIFFERENT ECMS OR ENERGY CONSERVATION MEASURES AND EXPECTATIONS.
AGAIN, CONSULTING FOR THE CLEAN BUILDINGS PERFORMANCE STANDARD, SETTING UP ENERGY STAR PORTFOLIO MANAGER, GETTING A BASELINE FOR EACH FACILITY, COORDINATING WITH THE UTILITY TO GET UTILITY BILLS HISTORICALLY, AND REALLY SETTING YOU UP FOR SUCCESS FOR COMPLIANCE.
THE CLEAN BUILDINGS PERFORMANCE STANDARD HAS DIFFERENT TIERS.
THE FIRST TIER IS THE BIGGEST BUILDINGS FIRST, 220,000 SQUARE FEET AND UP.
THAT'S BATTLE GROUND HIGH SCHOOL.
THEN IT STEPS DOWN TO 90,000 AND UP.
THAT'S A BUNDLE OF BUILDINGS THAT WE'LL PURSUE IN THE NEXT PHASE.
THEN FINALLY PHASE 3 IS 50,000 AND UP.
THAT'S ALL COMING SOON, 2026, 27 AND 28.
THOSE ARE COMPLIANCE DEADLINES.
YOU NEED TO PROVE YOUR EUI A YEAR BEFORE THAT.
ALL OF A SUDDEN DEADLINES ARE PUSHED UP TILL 2025.
IF YOU'RE MAKING IMPROVEMENTS, YOU NEED THAT MEASURE AND VERIFICATION REPORT IN HAND.
AS KEVIN SAID, THIS IS A VERY TIMELY TIME TO DO THIS PROJECT.
IT DOES GIVE YOU SOME TIME TO MAKE IMPROVEMENTS BEFORE THE COMPLIANCE DATE.
WE ARE A CONSULTANT AND CONSTRUCTION MANAGER BUNDLED ALL INTO ONE AND FACILITATED THROUGH THE STATE.
I HOPE I SIMPLIFIED THAT AS MUCH AS I COULD.
I GAVE YOU A LOT OF INFORMATION.
>> EVERYBODY'S LOOKING AT YOU.
>> I WOULD JUST ADD FOR OUR BOARD MEMBERS.
THREE OF US WERE ON THE BOARD WHEN WE PASSED THIS BACK IN 2022.
FOR OUR NEWER BOARD MEMBERS OR POSSIBLY THE THREE WHO WERE HERE AT THE TIME, GO BACK AND READ THE INTERAGENCY AGREEMENT.
IT'S ON BOARD DOCS AND AVAILABLE.
I THINK THAT WOULD BE HELPFUL.
HISTORICAL INFORMATION IS TO SEE WHAT WAS THERE AT THE TIME.
ANYTIME SOMETHING'S REFERENCED, YOU CAN ALWAYS FIND IT ON BOARD DOC.
PLEASE RESEARCH THAT WHEN YOU'RE DOING YOUR BOARD.
I DIDN'T INCLUDE THE INFO BECAUSE IT'S REALLY JUST A BOILER IT'S REAL IT'S EIGHT PAGES OF BOILER PLATE, BUT IT DOES IS IT DESCRIBES THE INTERAGENCY AGREEMENT PROCESS.
I DID GIVE THE COVER SHEET FOR THAT.
I ALSO WANT TO REMIND YOU FOLKS THAT SO I KNEW THESE DOLLAR AMOUNTS BACK WHEN I WAS PUTTING A CAPITAL LEVY TOGETHER, AND THERE IS A LINE ITEM IN THERE FOR ESCO DISTRICT WIDE LIGHTING ESCO WITH A $200,000 BUDGET IN IT.
THIS IN ESSENCE, WELL, I DON'T HAVE THE MONEY FROM THAT YET, BUT IT IS IT WAS OUTLINED IN THE CAPITAL LEVY.
>> WELL, I THINK THAT'S THE WE TALKED ABOUT THE TIMING AND NOW IT WORKS AND IT'S GOOD TIMING FOR US IN ORDER TO MEET COMPLIANCE WITH THE CLEAN BUILDINGS ACT.
BUT IT ALSO IS GOOD TIMING FOR US IN TERMS OF IT'S FORTUNATE THAT WE ALSO HAVE SOME CAPITAL LEVY IMPROVEMENTS.
IF YOU'LL SEE SOME OF THE CONSERVATION MEASURES ARE ALSO RELATE TO HVAC UNITS.
THEY RELATE TO ROOFS IN THE RECODING OR REPLACEMENT OF ROOFS.
THEY RELATE AS KEVIN SAID TO LIGHTING, WHICH WE HAVE A BUNCH OF ALL OF THOSE THINGS ARE ALSO PART OF OUR CAPITAL LEVY.
FOR US TO BE ABLE TO DO THOSE THINGS AND TO COME IN POTENTIAL SAVINGS, IF WE WERE TO DO THESE THINGS IN ISOLATION,
[00:25:03]
INSTEAD OF BUNDLING THESE THREE THINGS AT ONCE, IS AN ADVANTAGE TO US IN TERMS OF BEING ABLE TO MEET ALL OF OUR AGREED UPON THINGS THAT WE SAID WE WERE GOING TO ACCOMPLISH AS PART OF THE CAPITAL LEVY.>> ON THE MENU THAT BRIAN WAS REFERRING TO THOUGH THAT ULTIMATELY WE'LL COME TO PICKING MENU, THERE'S WHAT WE CALL LOW HANGING FRUIT THAT OBVIOUSLY IT PAYS FOR ITSELF, LIGHTING WILL BE ONE OF THOSE.
BUT IT ALSO ALLOWS YOU TO TO WORK IN ONE OF THOSE THAT MIGHT NOT BE A LOW HANGING FRUIT THAT IT'S A PROJECT YOU NEED, BUT IT'S NOT NECESSARILY MAKING.
YOU'RE NOT SAVING AS MUCH, SO YOU MIGHT NOT DO THAT ONE ON ITS OWN.
BUT IF YOU BUNDLE IT TOGETHER WITH A BUNCH MORE PROJECTS AND LOOK AT A SEVEN TO TEN YEAR PAYBACK, IT ALLOWS YOU TO DO SOME OTHER PROJECTS THAT WOULDN'T IF YOU DID THEM INDIVIDUALLY.
>> IN A SENSE, BIGGER BANG FOR OUR BUCK.
BUT JUST TO BE CLEAR, I'M SAYING THIS FOR THE GOOD OF THE ORDER.
THERE'S NO STATE FUNDINGS OR REIMBURSEMENTS OF ANY KIND THROUGH THIS PROGRAM.
>> YEAH. 100% MANDATED, THERE IS EARLY ADOPTION MONEY, BUT IT'S $0.85 A SQUARE FOOT AND YOU NEED TO COMPLY BEFORE THE DEADLINE, WHICH IS COMING FAST, AND IF YOU ARE ALREADY NOT MEETING YOUR TARGET, YOU'RE NOT GOING TO MAKE THOSE FUNDS.
I DO WANT TO ALLUDE THAT AMERESCO DOES HAVE A FULL TIME GRANT RIDER ON OUR TEAM.
IF WE ENGAGE IN THIS PROCESS AND IDENTIFY A GRANT THAT'S BATTLEGROUND IS ELIGIBLE FOR, WHETHER IT'S ENERGY SAVINGS OR RENEWABLE ENERGY OPPORTUNITY, WE COULD EASILY JUST TAKE WHAT WE HAVE AND WRITE A GRANT ON YOUR BEHALF.
KEVIN OR TEAM WOULD WOULD SUBMIT THAT GRANT FROM THE DISTRICT.
WE'RE NOT APPLYING FOR YOU, BUT WE CAN WRITE IT FOR YOU AND SAY, GIVE YOU A NICE DELIVERED GRANT APPLICATION.
WE ARE ALWAYS LOOKING FOR GRANTS, UTILITY INCENTIVES WILL BE INCORPORATED INTO THIS PROJECT.
EVERY SAVINGS DOLLAR, EVERYTHING WE CAN FIND FOR YOU IS REALLY THE GOAL TO OFFSET THE COSTS.
>> YEAH. WE USED THE PD, MANY OF THEIR INCENTIVES THE LAST TIME WE DID THIS A LOT OF KICKBACK REBATES FOR UPGRADING LIGHTING, BUT PD HAS IN THE PAST, GIVEN MONEY ON THESE [INAUDIBLE] FOR US.
>> FULL LIST OF CURRENT REBATES AVAILABLE ONLINE.
PLEASE, EXCUSE ME. I DON'T NEED A BIG ANSWER.
I'M LOOKING AT THESE THREE ITEMS, INVESTMENT GRADE LIGHTING, BGS, ASTRA, CBPS, COMPLIANCE WORK.
I'M LOOKING AT A VARIETY OF PHASES, THE PROPOSAL, A MANAGEMENT PLAN, IMPROVEMENT COSTS, FOLLOW UP AUDIT.
I'M JUST WONDERING WHEN THIS IS ALL DONE, DO WE HAVE ANY IDEA HOW MUCH THE MANDATE IS GOING TO BE? HOW MUCH OF THAT MONEY IS ACTUALLY IN OUR LEVY?
>> THE MANDATE OF WHAT? I'M SORRY.
>> WHAT ARE WE HAVING TO DO. WE HAVE TO DO ALL THIS STUFF BECAUSE IT'S MANDATED AND THERE'S NO MONEY COMING FROM THE STATE TO DO IT.
HOW MUCH IS IT GOING TO COST US TO DO ALL OF THIS STUFF?
>> WELL, YOU'RE LOOKING AT IT.
THE ONLY ITEM IN HERE THAT WE'RE MAKING OUR ENERGY MANAGEMENT PLAN ON, IS BELTON HIGH SCHOOL.
NEXT YEAR, I'M GOING TO HAVE TO DO PRAIRIE.
I'M GUESSING NOW WILL BE 42,000.
>> THERE YOU GO. THAT'S WHAT I'M WONDERING, DOWN THE ROAD.
>> 20-40,000 PER BUILDING JUST TO MAKE A PLAN.
>> HAVE WE FIGURED OUT WHAT WE MAKE? $200,000 IS THAT WHAT WE'RE LOOKING AT?
>> YOU AVERAGE 30,000 TIMES 18.
>> I'M NOT A MATH TEACHER. I DON'T KNOW WHAT THAT IS.
>> NO. PROBABLY JUST A HALF OF THAT.
>> THEY'RE MANDATING THROUGH A SERIES OF THINGS THAT WE'RE GOING TO BE SPENDING ALMOST HALF A MILLION OR MORE.
>> WHAT THE STATE WOULD SAY, IS THAT YOU WILL OVER TIME RECOUP THOSE COSTS BECAUSE YOU'D BE HAVING ENERGY SAVINGS.
THAT'S HOW THEY WOULD EXPLAIN IT.
>> ONE OF THE OTHER THINGS THAT I FIND IT MAKES US DO
[00:30:01]
IS THE STATE WILL NOW BE MONITORING EVERYBODY'S ENERGY BILLS OF WHAT'S GOING AND COMPARING YOU, BECAUSE THEY MAKE US PUT IT INTO THIS ENERGY STAR.THEY'RE GOING TO BE LOOKING AT OUR ENERGY.
>> I WANT TO ADD, YOU'RE NOT THE ONLY DISTRICT THAT'S REELING WITH THIS UNFUNDED MANDATE.
I THINK IT'S A BIG CHALLENGE, AND THERE'S A LOT OF LEGISLATION TALK OF HOW TO HELP SCHOOL DISTRICTS, HIGHER END ORGANIZATIONS, PROBABLY, PUBLIC ORGANIZATIONS.
I'M NOT HOLDING BREATH, BUT I THINK THERE COULD BE AN OPPORTUNITY FOR FUNDING TO COME DOWN THE ROAD.
ESPECIALLY LIKE KEVIN SAID, QUANTIFYING THE ENERGY USE AND NEED COULD ALLOW FOR STATE ALLOCATIONS FOR SPECIFIC SCHOOL DISTRICTS.
THE ONES THAT ARE HIGHLY INEFFICIENT OR UNABLE TO PASS BONDS AND LEVIES.
TRYING TO SPREAD THE WEALTH, I GUESS.
>> I JUST WISH THE STATE WOULD MAYBE NOT PUT THE CART BEFORE THE HORSE IN THESE CASE AS THEY CONTINUE TO MANDATE THINGS THAT COST DISTRICTS MONEY, BUT THEN DON'T EVER COME UP WITH A SOLUTION TO HOW WE'RE SUPPOSED TO COVER THESE INCREASED COSTS EVERY TIME THEY DO THAT AND THEN THEY JUST KEEP PILLING THEM ON, PILLING THEM ON, BUT MAYBE NEXT TIME THEY COULD SAY, WELL, LET'S FIGURE OUT HOW TO PAY FOR IT AND THEN MANDATE IT.
>> AND THIS IS EVERY BUILDING IN THE STATE.
>> SURE. THAT'S A LOT OF MONEY.
>> AND WE OWN ABOUT 20 OF THEM.
>> WELL, WE'RE ALMOST TOGETHER.
>> I DON'T HEAR A LOT OF QUESTIONS, BUT AS I SAID, I'LL REVISE THIS COVER SHEET A LITTLE BIT FOR NEXT BOARD MEETING, BUT THE STATE IS GOING TO WANT TO SEE THAT THE BOARD UNDERSTANDS THIS, IS WILLING TO MOVE FORWARD.
THEY'LL CREATE DOCUMENTS AND THEN WE'LL SIGN THEM.
I KNOW IT WAS A LITTLE CONFUSING.
I'M ACTUALLY GLAD WE PULLED IT TONIGHT, AND I'M GLAD WE HAD THIS WORK SESSION.
I'VE BEEN IN IT KNEE DEEP FOR A COUPLE OF YEARS NOW, BUT I FELT EVERYBODY NEEDED TO KNOW WHAT'S COMING AND WHY.
I'D BE GLAD TO ANSWER ANY MORE SPECIFIC QUESTIONS.
>> I JUST HAVE A QUESTION ABOUT, I GUESS THE ATTACHMENT THAT'S DONE BY AMERESCO TO DEPARTMENT OF ENTERPRISE SERVICES.
I GUESS OUR SCHOOL IS GOING TO BE UPDATED.
>> YEAH, THAT'S WHY WE PULLED IT.
>> THERE'S SOME TYPOS. WE'LL REVISE THIS AND I'LL REVISE MY COVER SHEET A LITTLE BIT, THEN I'LL BRING IT TO THE NEXT BOARD MEETING.
>> CAN I ASK A QUICK QUESTION ABOUT A COUPLE OF ACRONYMS THAT WERE USED, JUST FOR MY OWN LEARNING.
>> DEPARTMENT OF ENTERPRISE SERVICES.
EUI IS THE BENCH-MARKING NUMBER YOU WILL GET FOR YOUR BUILDING.
IT'S BASICALLY ENERGY IN, DIVIDED BY SQUARE FOOT.
>> I KNOW. IT'S LIKE A LITTLE MAGIC NOTE PEN.
>> ANY OTHER QUESTIONS, COMMENTS FROM THE BOARD?
>> I DO WANT TO ADD ONE THING JUST TO CLARIFY, IF YOU WOULDN'T MIND.
THIS DOCUMENT ADDRESSED TO BERNARD JACKSON AT DEPARTMENT OF ENTERPRISE SERVICES.
THIS IS THE TEMPLATE FOR THE CONTRACT THAT DES WILL THEN PRODUCE.
THIS IS REALLY THE DOCUMENT THAT YOU ARE APPROVING.
THE CONTRACTS WILL REFLECT ALL OF THE INFORMATION PROVIDED HERE.
AGAIN, IT'S ADDRESSED TO BERNARD AT DES BECAUSE WE CONTRACT WITH DES.
JUST TO CLARIFY THAT THE REASON WHY IT'S NOT ADDRESSED TO BATTLEGROUND PUBLIC SCHOOLS DIRECTLY AND HOW THAT WORKS.
IF YOU WOULD LIKE TO TALK WITH BERNARD AT DES, WE CAN CERTAINLY GET YOU IN CONTACT.
>> YEAH. I FORGOT TO MENTION THAT IT'LL WORK ON A FEW TYPOS AND SOME SCHOOL SPELLINGS AND REVISE IT.
THAT'LL BE BASICALLY THE GUTS OF THE CONTRACT FROM DES.
>> I APPRECIATE THE BOARD SETTING THIS UP AT THE LAST MINUTE.
IT'S JUST THERE'S A COMPLICATING.
WE THOUGHT IT WOULD BE EASIER TO JUST GO THROUGH THIS AND JUST BE DONE A LITTLE EARLY.
[00:35:01]
>> MEETING ADJOURNED 5:20. THANK YOU.
>> YOU'RE WELCOME.
* This transcript was compiled from uncorrected Closed Captioning.