Resolution No 35-2021 - Ameresco Inc. Qualified Provider Approval Guaranteed Energy Savings Contract Morris

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Confidential & Proprietary Information of Ameresco, Inc. Page 48 of 54 OPERATING COST SAVINGS Operating Cost Savings includes avoided related capital expenditures for equipment replacement and/or capital funds for projects that, because of the Scope of Services of this project, will not be necessary. Sources of Operating Cost savings may include: i) avoided current or planned capital expense, ii) avoided O&M and/or equipment repair and replacement expense, and, iii) avoided renovation, renewal, or repair costs as a result of the project. Deferring the related capital expenditure Scope of Services items included in this Agreement will result in increased costs in the future when implemented. Ameresco uses RS Means construction data, as well as recent project cost information (including data from bids for work to be performed), to determine approximate replacement values for the various building systems impacted by this Project. The current costs are then modified for performing this work in the future utilizing inflation, cost of money, economies of scale, and other factors as applicable. The increased future costs are then annualized, based on a project term, to determine the Year 1 Operating Cost Savings value. From the Scope of Services related to the installation of the ECMs, the Customer will have a Year 1 Operating Cost Savings (related capital expenditures) of $199,866 Table G6: Year 1 Operating Costs Savings Year Related Capital Expenditures Savings 1 $199,866 The Customer has identified the need for improving its existing facilities in order to address known building deficiencies, extend the building / systems useful life, and address occupant comfort issues. As a result, the Customer has developed estimates for the costs of the Scope of Services included in the ECMs if a separate project had to be performed to complete such Scope. The Customer desires to incorporate the Scope of Services into this Agreement in order to ensure such Scope is completed within the schedule and cost agreed to with Ameresco. The Customer finds that the Year 1 Operating Cost Savings identified in Table G6 are reasonable estimates of the costs avoided by incorporating the Scope of Services into the Agreement and agrees and accepts these Year 1 Operating Cost Savings subject to completion of the M&V Services set forth in this Attachment G. In each subsequent Guarantee Year, the Year 1 Operating Cost Savings determined for the First Guarantee Year shall be escalated at a rate of 3.0% per year to determine the total Operating Cost Savings.