Sponsor: Property Management
Title
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Agreement with inBYLT, LLC for Guaranteed Energy Saving Project
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Recommendation
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1. Approve the selection of and agreement with inBYLT, LLC, 3495 Northdale Blvd. NW, Suite 230, Coon Rapids, MN 55448, for the guaranteed energy savings project across multiple county facilities upon execution of the agreement and for the duration of the agreement and subject to the county’s right to extend the agreement to renew the measurement and verification service provided by inBYLT, LLC for up to an additional 20 years, in accordance with the rates established in the agreement.
2. Authorize the Chair and Chief Clerk to execute the agreement.
3. Authorize an initial loan from the general fund to the Property Management Department for the guaranteed energy savings project of up to $8,450,000 to finance energy investments and approve the associated loan repayment schedule.
4. Authorize the County Manager to establish a project budget of $8,450,000 for the guaranteed energy savings project in the Property Management budget.
5. Authorize the County Manager to execute amendments to the agreement and to exercise the extension rights provided in the agreement, in accordance with the county’s procurement policies and procedures, and provided that amounts are within the limits of available funding.
6. Authorize Property Management to provide a copy of the agreement to the Commissioner of Commerce within 30 days of the effective date of the agreement, as required by Minnesota Statutes, section 471.345, subdivision 13.
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Background and Rationale
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Ramsey County’s 2017 Strategic Energy Plan identifies a goal of 30% reduction (against a 2008 baseline) in energy use and carbon emissions by 2025, and an 80% reduction by 2050. Property Management has tracked energy consumption in its directly managed facilities since 2008 and began intensive departmentwide energy reduction initiatives for the buildings in 2015. As of year-end 2024, Property Management has achieved a 43.8% reduction in energy consumption from the 2008 baseline.
The proposed project represents an innovative and cost-effective approach to implementing additional energy savings measures across county facilities, that would serve towards attaining the 80% energy reduction goal for 2050. inBYLT (formerly Apex Facility Solutions) has performed a directed engineering study of county facilities to review existing systems and equipment to determine the actual energy savings and return on investment that will result from the specific improvements identified in the agreement. The guaranteed energy savings project offers an alternative funding solution for major projects that reduces the need for county Capital Improvement Program funding. Section 471.345 of Minnesota Statutes includes provisions for energy efficiency projects and guaranteed energy savings contracts. This agreement was developed in compliance with that statute.
At the conclusion of the directed engineering study, inBYLT provided reporting detailing the variety of improvement options that the county could pursue, while identifying the amount that Ramsey County could spend on energy conservation measures while guaranteeing that the amount spend would be saved in energy and operation costs over a 20 year period from the date of project completion. The specific improvements to be implemented with the project include:
• LED Lighting
• Building Envelope
• Water Conservation
• Heating, Ventilation, Air Conditioning Modifications
• Solar
• Roofing Replacements
In the agreement, inBYLT has provided a written guarantee that the energy or operating cost savings will meet or exceed the costs of the improvements, as required and authorized by Section 471.345, Subdivision 13 of Minnesota Statutes. Section 471.345 of Minnesota Statutes includes provisions for energy efficiency projects and guaranteed energy savings contracts. This agreement was developed in compliance with that statute.
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County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☐ Opportunity ☒ Accountability
Racial Equity Impact
The contract includes workforce inclusion goals of 32% minority and 20% women, as well as a goal of utilizing 32% certified small businesses (SBEs) found in the Central Certification (CERT) Program directory recognized by the county as the acceptable source for SBE subcontractors and suppliers in conformance with the county's approved policy on workforce inclusion and contracting goals.
Efforts to reduce carbon emission and conserve energy provide for incremental progress in the ongoing efforts to combat climate change, which has a disparate impact on racially and ethnically diverse communities.
Community Participation Level and Impact
The guaranteed energy savings program investment was presented to the Capital Improvement Program Advisory Committee as part of the 2026-2027 capital budget process and received their support.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Property Management will borrow an initial amount up to $8,450,000 from the county general fund, fund balance to finance phase 1 energy investments outlined in the agreement. Subsequently, Property Management will seek approval from the Ramsey County Board of Commissioners for additional loan amounts from the county general fund, fund balance or other sources to finance phase 2 and phase 3 of the energy investments outlined in the agreement.
The Property Management operating budget will pay back the general fund, fund balance over the course of the 20-year payback period through a combination of guaranteed energy savings, solar credits, Inflation Reduction Act credit, and other utility rebates. Should the actual energy savings fall short of the guarantee in any given year of the payback period, the contractor will be responsible for paying the county difference.
Last Previous Action
On November 5, 2024, the Ramsey County Board of Commissioners approved the agreement with Apex Facility Solutions for the Guaranteed Energy Savings Project Directed Engineering Study (Resolution B2024-218).
Attachments
1. Agreement with inBYLT, LLC.
2. Financing Plan