The City of Billings has significant energy usage in various facilities and the potential exists to save energy and money if efficiency upgrades can be implemented. However, the City needed an integrated process for identifying energy saving opportunities in City facilities and more importantly, a method to finance the construction of the energy saving measures. Energy Performance Contracting is a way to accomplish these tasks that is favored by the State of Montana and the City's Energy and Conservation Commission and this Energy Investment Grade Audit Contract is the first stage of the process.

The Energy Performance Contracting Committee prepared a Request for Proposals (RFP) for Energy Performance Contracting services. The RFP was issued to qualified Energy Service Companies (ESCOs) pre-selected by the State of Montana through a Request for Qualifications process. Seven ESCOs were invited to participate in the RFP process, and the City received three responses. The selection committee consisted of Mark Evangeline, Airport Facilities Superintendent, Saree Couture, Facilities Manager, Liz Kampa-Weatherwax, Purchasing Agent, Boris Krizek, Public Works Engineer, and Dave Fishbaugh, a member of the City’s Energy and Conservation Commission. The following proposals were received:

• McKinstry
• Johnson Controls
• Burns & McDonnell

The committee evaluated the proposals, interviewed all three firms and selected the proposal from McKinstry. The following important information was considered: Proposal Compliance, Comprehensiveness of Services Provided, Related Experience, Firm Stability, Prior Municipal Experience, Assigned Individuals, Account Analysis, Charges for Services, and Service Enhancements.

City Council may:

• Approve the Energy Investment Grade Audit Contract; or
• Not approve the Energy Investment Grade Audit Contract.

• Cost for the Energy Investment Grade Audit Contract is $288,350.
• ARRA stimulus grant funding applicable to this audit is $237,500.
• Remaining balance of $50,850:

•  will be applied to an Energy Performance Contract that will implement the audit designs and be paid by the savings achieved with the reduction of energy and resources, utility rebates and grants;
• or paid for from operating budgets from the departments at the City’s option.

Staff recommends that Council approve the Investment Grade Audit Contract with McKinstry.