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Executive Summary Johnson 010 Controls Johnson Controls is pleased to present to the City of St. Anthony Village the results of our Infrastructure and Energy Savings Project which outlines the facility improvement measures to be implemented through a performance -based contract. Resolution 07 -065 which approved the Project Development Agreement was adopted on August 28, 2007. This action demonstrated the City's interest in taking a proactive, energy - efficient and cost- conscience approach to mission critical infrastructure improvements. At that time, we jointly agreed to develop a Business Case Analysis that would identify the City's areas of greatest concern, overall project objectives and the future vs. current financial merits of the total program. With the assistance of key City personnel, we have completed our final assessment of the City of St. Anthony Village's facilities. There are many different scenarios for the City of St. Anthony Village to consider. Each scenario would include different improvement measures, different savings calculations, and different capital contributions. The project goal has been to maximize the energy and operational savings city -wide in order to address major capital and deferred maintenance concerns at City Hall. After many working sessions with city staff we are presenting the following scenario as a starting point: • A $2.6M project will be funded with first year energy and operational savings of $70K and capital cost avoidance of $118K annually over a 15 year time period. The project will generate energy and operational savings to help offset the 15 year operating lease payment. These projects will address capital intensive issues at today's low interest rates by reallocating planned funds each year. The return on investment is approximately 184 %. The savings are a result of the use of new equipment and technology. In addition, by proactively implementing the improvements in this project, the City will avoid future costs and unplanned capital expenditures due to major equipment failures By implementing the energy conservation measures identified in this report, the City of St. Anthony will have a positive impact on the environment. Based on calculations from The Cleaner and Greener by reducing the consumption of electricity and natural gas, the following pollution emissions will be reduced by approximately: • Greenhouse Gases (CO2) by 742,086 lbs. • Nitrogen Oxides (NOx) by 1,877 lbs. • Sulfur Dioxide (S02) by 1,922 lbs. • Mercury (Hg) by 4,115 milligrams Our program offers the City of St. Anthony Village a means to supplement the existing capital improvement plan in order to address deferred maintenance concerns and complete capital projects in the most energy efficient manner. The final combinations of projects need to meet the goals of the City of St. Anthony Village. We are very excited to share the details of this project with the City Council. We appreciate this opportunity and look forward to exceeding your expectations! Page 3 City of St. Anthony Village Performance Contract Analysis RPIE My NOT TO BE RERRODUCEO ORRDISTRIBUTED WWrNDUT JOHNSON CONTROLS RERMISS,q