Common use of Operational Cost Savings Clause in Contracts

Operational Cost Savings. The first-year amount of Savings for Operational Costs is the sum of the below listed ECMs. The Savings are based on the Customer Guarantee Practices set forth in Section C.4. The Operational Costs Savings described below and identified in Section D.1 are deemed satisfied upon execution of the Main Agreement. The Customer acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the Work included in Attachment A, and that, in doing so, it would incur Operational Costs of at least the amount per year over the Guarantee Term as presented below and in the Schedule of Guaranteed Savings. The Customer agrees that, by entering into this Agreement, it will avoid future Operational Costs in at least these amounts. Further, the Customer acknowledges that Operational Costs Savings categorized as capital cost avoidance are part of, or are causally connected to the Work specified in Attachment A (i.e., the ECMs being implemented), and are documented by industry standard engineering methodologies acceptable to the Customer. Customer agrees that the Baseline for the unit cost of Operational Costs will be adjusted each year of the Guarantee Term. This annually adjusted value of operational unit costs is stipulated as the new baseline in each succeeding year. Customer agrees that the Baseline adjustment is stipulated to be an escalation of 2% per year for Operational Costs used in the determination of Operational Costs Savings each year. The Operational Costs Savings were identified, reviewed, and agreed to by a team of Customer’s representatives including Xxxxxxx Xxxxxxx – Assistant Superintendent of Business, and Xxxx Xxxxxxxxxx – Director of Facilities. . OSD # Operational Savings Description (OSD) Att. A Ref. Cost Avoidance Category (O&M, Capital, ) 1st Year Cost Avoidance 1 LED Lighting and Lighting Controls Upgrade 1 O&M $1,482 2 Boiler Replacement 2 O&M $10,000 3 Building Management System Upgrades 3 O&M $28,493 Total $39,975 [a] O&M: operations and maintenance.

Operational Cost Savings. The first-year amount of Savings for Operational Costs is the sum of the below listed ECMs. The Savings are based on the Customer Guarantee Practices set forth in Section C.4. The Operational Costs Savings described below and identified in Section D.1 are deemed satisfied upon execution of the Main Agreement. The Customer acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the Work included in Attachment A, and that, in doing so, it would incur Operational Costs of at least the amount per year over the Guarantee Term as presented below and in the Schedule of Guaranteed Savings. The Customer agrees that, by entering into this Agreement, it will avoid future Operational Costs in at least these amounts. Further, the Customer acknowledges that Operational Costs Savings categorized as capital cost avoidance are part of, or are causally connected to the Work specified in Attachment A (i.e., the ECMs being implemented), and are documented by industry standard engineering methodologies acceptable to the Customer. Customer agrees that the Baseline for the unit cost of Operational Costs will be adjusted each year of the Guarantee Term. This annually adjusted value of operational unit costs is stipulated as the new baseline in each succeeding year. Customer agrees that the Baseline adjustment is stipulated to be an escalation of 2% per year for Operational Costs used in the determination of Operational Costs Savings each year. The Operational Costs Savings were identified, reviewed, and agreed to by a team of Customer’s representatives including Dr. Xxxxxxx Xxxxxxx Xxxxxxxx – Assistant Superintendent of Business, for Finance and Xxxx Xxxxxxxxxx – Director of Facilities. Management . OSD # Operational Savings Description (OSD) Att. A Ref. Cost Avoidance Category (O&M, Capital, ) 1st Year Cost Avoidance 1 LED Lighting and Lighting Controls Upgrade 1 O&M $1,482 3,535 2 Boiler Replacement Plant Upgrades 2 O&M $10,000 32,000 3 Building Management System Upgrades 3 O&M $28,493 37,500 Total $39,975 73,035 [a] O&M: operations and maintenance.

Operational Cost Savings. The first-year amount of Savings for Operational Costs is the sum of the below listed ECMs. The Savings are based on the Customer Guarantee Practices set forth in Section C.4. The Operational Costs Savings described below and identified in Section D.1 are deemed satisfied upon execution of the Main Agreement. The Customer acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the Work included in Attachment A, and that, in doing so, it would incur Operational Costs of at least the amount per year over the Guarantee Term as presented below and in the Schedule of Guaranteed Savings. The Customer agrees that, by entering into this Agreement, it will avoid future Operational Costs in at least these amounts. Further, the Customer acknowledges that Operational Costs Savings categorized as capital cost avoidance are part of, or are causally connected to the Work specified in Attachment A (i.e., the ECMs being implemented), and are documented by industry standard engineering methodologies acceptable to the Customer. Customer agrees that the Baseline for the unit cost of Operational Costs will be adjusted each year of the Guarantee Term. This annually adjusted value of operational unit costs is stipulated as the new baseline in each succeeding year. Customer agrees that the Baseline adjustment is stipulated to be an escalation of 2% per year for Operational Costs used in the determination of Operational Costs Savings each year. The Operational Costs Savings were identified, reviewed, and agreed to by a team of Customer’s representatives including Xxxxxxx Xxxxxxx Xxxx X. Xxxxxx – Assistant Superintendent of Businessfor Finance & Operation, Xxxxxx X. Xxxxx – School Business Auditor, and Xxxx Xxxxxxxxxx Xxx Xxxxxx – Director of Facilities. . OSD # Operational Savings Description (OSD) Att. A Ref. Cost Avoidance Category (O&M, Capital, ) 1st Year Cost Avoidance 1 LED Lighting and Lighting Controls Upgrade 1 O&M $1,482 4,045 2 Boiler Replacement Plant Upgrade 2 O&M $10,000 15,000 3 Building Management System Upgrades 3 5 O&M $28,493 30,000 Total $39,975 49,045 [a] O&M: operations and maintenance.

Operational Cost Savings. The first-year amount of Savings for Operational Costs is the sum of the below listed ECMs. The Savings are based on the Customer Guarantee Practices set forth in Section C.4. The Operational Costs Savings described below and identified in Section D.1 are deemed satisfied upon execution of the Main Agreement. The Customer acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the Work included in Attachment A, and that, in doing so, it would incur Operational Costs of at least the amount per year over the Guarantee Term as presented below and in the Schedule of Guaranteed Savings. The Customer agrees that, by entering into this Agreement, it will avoid future Operational Costs in at least these amounts. Further, the Customer acknowledges that Operational Costs Savings categorized as capital cost avoidance are part of, or are causally connected to the Work specified in Attachment A (i.e., the ECMs being implemented), and are documented by industry standard engineering methodologies acceptable to the Customer. Customer agrees that the Baseline for the unit cost of Operational Costs will be adjusted each year of the Guarantee Term. This annually adjusted value of operational unit costs is stipulated as the new baseline in each succeeding year. Customer agrees that the Baseline adjustment is stipulated to be an escalation of 2% per year for Operational Costs used in the determination of Operational Costs Savings each year. The Operational Costs Savings were identified, reviewed, and agreed to by a team of Customer’s representatives including Xxxxxxx Xx. Xxxxxx Xxxx – Superintendent, Xxxxxx Xxxxxxx – Assistant Superintendent of for Business, and Xxxx Xxxxxxxxxx Xxxxxxxx Xxxxxxx – Director of Facilities. . OSD # Operational Savings Description (OSD) Att. A Ref. Cost Avoidance Category (O&M, Capital, ) 1st Year Cost Avoidance 1 LED Lighting and Lighting Controls Upgrade 1 O&M $1,482 1,590 2 Boiler Replacement 2 O&M $10,000 3 Building Management System Upgrades 2 O&M $20,000 3 Unit Ventilator Replacements 3 O&M $28,493 30,000 4 Roof Top Unit Replacements 4 O&M $30,000 Total $39,975 81,590 [a] O&M: operations and maintenance.

Operational Cost Savings. The first-year amount of Savings for Operational Costs is the sum of the below listed ECMs. The Savings are based on the Customer Guarantee Practices set forth in Section C.4. The Operational Costs Savings described below and identified in Section D.1 are deemed satisfied upon execution of the Main Agreement. The Customer acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the Work included in Attachment A, and that, in doing so, it would incur Operational Costs of at least the amount per year over the Guarantee Term as presented below and in the Schedule of Guaranteed Savings. The Customer agrees that, by entering into this Agreement, it will avoid future Operational Costs in at least these amounts. Further, the Customer acknowledges that Operational Costs Savings categorized as capital cost avoidance are part of, or are causally connected to the Work specified in Attachment A (i.e., the ECMs being implemented), and are documented by industry standard engineering methodologies acceptable to the Customer. Customer agrees that the Baseline for the unit cost of Operational Costs will be adjusted each year of the Guarantee Term. This annually adjusted value of operational unit costs is stipulated as the new baseline in each succeeding year. Customer agrees that the Baseline adjustment is stipulated to be an escalation of 2% per year for Operational Costs used in the determination of Operational Costs Savings each year. The Operational Costs Savings were identified, reviewed, and agreed to by a team of Customer’s representatives including Xxxxxxx Xxxxxxx Xxxxxx Xxxxx – Assistant Superintendent of for Business, and Xxxx Xxxxxxxxxx Xxxxxxx – Director of Facilities. . OSD # Operational Savings Description (OSD) Att. A Ref. Cost Avoidance Category (O&M, Capital, ) 1st Year Cost Avoidance 1 LED Lighting and Lighting Controls Upgrade 1 O&M $1,482 6,438 2 Boiler Replacement 2 O&M $10,000 3 Building Management System Upgrades 3 4 O&M $28,493 5,000 Total $39,975 11,438 [a] O&M: operations and maintenance.