City staff and BRG consultants presented an energy audit and a prioritized list of facility improvements intended to reduce utility and maintenance costs across city buildings.

BRG summarized work done since the city advertised for proposals in May 2024: site visits, benchmarking and an initial project list narrowed to higher‑impact measures. The recommended package in staff materials focuses on HVAC replacements and controls, lighting upgrades, building‑envelope improvements and a bore‑field geothermal system proposed for the City Hall/police/animal shelter complex.

Consultants said the total project cost in the current proposal is “a little over $7,000,000.” They estimated first‑year utility savings of about $70,000 and annual operations and maintenance savings of about $75,000, plus avoided future capital costs because aging systems would otherwise need replacement. BRG recommended a turnkey, guaranteed‑savings contracting model under Missouri Revised Statute 8.231 that lets the savings help finance the improvements.

Jason Becker and Ellie Blankenship of BRG explained that a significant federal tax‑credit opportunity under the Inflation Reduction Act (IRA) — and an extra domestic‑content bonus available to certain projects — may reduce the city’s net cost. “We really think… we have a range of 30 to 40%, but we're expecting the 40%,” Blankenship said of the expected IRA direct‑pay benefit for geothermal projects; BRG cited recent projects in Branson and Springfield where clients received multi‑million dollar direct‑pay checks after project completion.

Council members asked about payback and alternatives. One council member noted that without federal rebates the payback would be roughly 16 years and urged caution; consultants replied that some measures (lighting) provide quicker paybacks and that the HVAC work is a necessary capital replacement the city would otherwise fund. Staff said the project financing plan being explored with the city’s financial adviser could reamortize after any tax‑credit receipts arrive, lowering net debt service.

Council direction and next steps
Staff said the presentation was informational; consultants will return with financing options and an action proposal. The city’s finance adviser and BRG will refine financing to account for expected IRA direct pay or tax‑credit receipts and present a recommended funding plan in a future meeting.

Why this matters: The audit targets multi‑year operating savings and attempts to time capital replacements (HVAC, controls and lighting) to harness federal incentives that can dramatically change net costs. If approved, the package would require coordinated implementation in occupied city facilities and budget adjustments for up‑front pay‑go or financed costs.