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HomeMy WebLinkAbout14-192 GESP Honeywell Contract 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 14-192 ENTERING INTO A CONTRACT WITH HONEYWELL ESG FOR A GUARANTEED ENERGY SAVINGS PERFORMANCE (GESP) CONTRACT, ENTERING INTO A LEASE AGREEMENT WITH US BANK, AND TERMINATING THE JOINT POWERS AGREEMENT WITH THE STATE OF MINNESOTA RELATED TO ENERGY PERFORMANCE CONTRACTING Motion By: KEENEY Second By: MCGUIRE WHEREAS, Under Minnesota Statues §471.59, the city is empowered to enter in agreements with other governmental units to jointly or cooperatively exercise any power common to the contracting powers or similar powers, as deemed necessary; and WHEREAS, The City of Prior Lake entered into a Joint Powers Agreement to utilize the Minnesota Department of Commerce’s Guaranteed Energy Savings Program (the State’s Program) under Minnesota Statue §16C.144 as a contracting option for guaranteed energy savings projects; and WHEREAS, The City of Prior Lake entered into a work order contract with Honeywell ESG under the State’s program to complete an Investment Grade Audit of the facilities within the City ; and WHEREAS, The Investment Grade Audit identified a suite of projects (the Project) that have energy savings associated with them; and WHEREAS, Under Minnesota Statues §471.345, Subdivision 13, the city is empowered to enter into a guaranteed energy-savings contract with a qualified provider to significantly reduce energy or operating costs; and WHEREAS, The City wishes to implement the Project under the authority granted to the city under Minnesota Statue §471.345, Subdivision 13; and WHEREAS, The City has prepared a Guaranteed Energy Savings Contract with Honeywell ESG incorporated by reference; and WHEREAS, In accordance to the MS §471.345, Subdivision 13, notice was published in the Prior Lake American on December 6, 2014 of the City’s intent to enter into a Guaranteed Energy Savings Contract; and WHEREAS, The City has solicited proposals for financing the project with a lease agreement; and WHEREAS, The City has prepared a lease agreement with US Bank to provide financing for the project. NOWTHEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1.The recitals set forth above are incorporated herein. 2.The City Council hereby terminates the Joint Powers Agreement with the State of Minnesota to utilize the State’s Program and directs staff to provide notice of the termination to the State as required by the JPA. 3.The City Council hereby approves a contract with Honeywell ESG for the completion of a Guaranteed Energy Savings Contract for the amount of $2,667,924. 4.The City Council hereby approves a lease agreement with US Bank for an amount of $2,667,924 to be financed over 10 years at an interest rate of 2.119% with payments to be made semiannually with such changes as are approved by the officers executing the document. 5.The Mayor and City Manager are hereby authorized to sign the above mentioned agreements on behalf of the City of Prior Lake. 6.Project costs will be recorded in the Facilities Management Fund for the Project. 7.Proceeds from the lease agreement will be deposited in the Facilities Management Fund. PASSED AND ADOPTED THIS 8 DAY OF DECEMBER 2014. TH VOTE Hedberg Keeney McGuire Morton Soukup Aye ☒☒☒☒☒ Nay ☐☐☐☐☐ Abstain ☐☐☐☐☐ Absent ☐☐☐☐☐ ______________________________ Frank Boyles, City Manager 2