Operational Cost Savings Sample Clauses
The Operational Cost Savings clause defines how any reductions in operational expenses are identified, calculated, and potentially shared between parties in a contract. Typically, this clause outlines the types of costs considered operational, the methods for measuring savings, and the process for verifying and distributing those savings, such as through periodic audits or agreed-upon benchmarks. Its core function is to incentivize efficiency and ensure that both parties benefit fairly from cost-saving measures implemented during the contract term.
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 ▇▇▇▇ ▇. ▇▇▇▇▇▇ – Assistant Superintendent for Finance & Operation, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ – School Business Auditor, and ▇▇▇ ▇▇▇▇▇▇ – Director of Facilities. 1 LED Lighting and Lighting Controls Upgrade 1 O&M $4,045 2 Boiler Plant Upgrade 2 O&M $15,000 3 Building Management System Upgrades 5 O&M $30,000 Total $49,045 [a] O&M: operations and maintenance.
Operational Cost Savings. The annual guarantee of operational cost avoidance strategies are listed below. The Savings are based on the listed Energy and Operational Cost Avoidance Guarantee Practices described herein. The operational cost savings described below and identified in the Schedule of Savings table above are deemed satisfied upon contract execution. The Customer acknowledges and agrees that, if it did not enter into this Contract, it would have to take future steps to achieve the same ends as does the work included in Schedule A of this contract, and that, in doing so, it would incur operational costs of at least the amount per year over the life of the performance period as presented below and in the Schedule of Savings. The Customer agrees that, by entering into this Contract, it will avoid future operational costs in at least these amounts. Customer agrees that the baseline for the unit cost of operations will be adjusted each year of the guarantee term. This annually adjusted value of operational unit cost is stipulated as the new baseline in each succeeding year. Customer agrees that baseline adjustment is stipulated to be an escalation of 2% per year for operational costs used in the determination of operational cost avoidance each year. The operational cost avoidance values were identified, reviewed, and agreed to by a team of Customer’s representatives including ▇▇. ▇▇▇▇ ▇▇▇▇▇▇, Sustainability Manager. 1 Lighting Upgrades O & M $23,682 2 Building Envelope O & M $0 3a Mechanical DX Replacements O & M $3,304 3b Mechanical DX Coil Rejuvenation O & M $275 3c Programmable Thermostats O & M $0 4 Street Lights O & M $4,039 5 Water Conservation O & M $0 6 Submetering O & M $0 Total $31,300
Operational Cost Savings. The annual guarantee of operational cost avoidance strategies are listed below. The Savings are based on the listed Energy and Operational Cost Avoidance Guarantee practices contained in Section 1.3 herein. The operational cost savings identified below are deemed satisfied upon contract execution. HVAC Replacement at RSC – savings of calls for repairs, comfort issues and maintenance on the HVAC systems, reduction of annual service agreement costs = $
Operational Cost Savings. The annual guarantee of operational cost avoidance strategies are listed below. The Savings are based on the listed Energy and Operational Cost Avoidance Guarantee Practices contained in Section
Operational Cost Savings. The annual guarantee of operational cost avoidance strategies are listed below. The Savings are based on the practices contained in Section 6.5 below and in the IGA Report. The operational cost savings described below and identified in this Section 6 are deemed satisfied upon contract execution. 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 of this contract, and that, in doing so, it would incur operational costs of at least the amount per year over the life of the performance period as presented below and in the Schedule of Savings. The Customer agrees that, by entering into this agreement, it will avoid future operational costs in at least these amounts. The operational cost avoidance values were identified, reviewed, and agreed to by a team of Customer’s representative. OSD # Operational Savings Description (OSD) ESM # Cost Avoidance Category (O&M) 1st Year Cost Avoidance 1 Lighting and Lighting Controls (LED) 1 $ 11,962 $ 11,962 2 Street Lighting Upgrades 2 $ 69,751 $ 69,751 3 Boiler Replacements &Pump Upgrades 3 $ 13,925 $ 13,925 4 Replace Multi-Zone AHU & Cooling System 4 $ 12,680 $ 12,680 5 Building Management System Upgrades 5 $ 9,315 $ 9,315 6 Building Envelope Improvements 6 $ 0 $ 0 7 Water Conservation 7 $ 1,152 $ 1,152 8 Walk-In Cooler/Freezer Controls 8 $ 0 $ 0 9 Desktop Computer Power Management 9 $ 0 $ 0 10 Computer Peripheral Power Management 10 $ 0 $ 0 11 Plug Load Power Management 11 $ 0 $ 0 12 Pipe Insulation 12 $ 0 $ 0 Total $ 118,786 $ 118,786 [a] O&M: operations and maintenance.
Operational Cost Savings. 1030 (i) Following the date of Substantial Completion and subject to Section 1031 7.3.3, to the extent Developer’s NOI exceeds one-hundred and ten percent (110%) of Projected 1032 NOI for the same semi-annual period as established in Exhibit E, Developer agrees to make a 1033 payment to the City in an amount equal to the amount set forth in Section 7.3.2(ii). 1034 (ii) The distribution to the City will be equal to 100% of the first 1035 $750,000 of any such annual surplus (over 100% of Projected NOI) and 90% of any additional 1036 annual surplus (over 100% Projected NOI), with the remaining 10% of such annual surplus 1037 retained by Developer. 2 The final Agreement will include an exhibit identifying additional details. 1038 Section 7.3.3. Changed Conditions Costs. If as a result of the occurrence of a 1039 Changed Condition the Developer (a) incurs, or will incur, additional costs or (b) will be 1040 required to make any payments to any Financing Party prior to the achievement by the 1041 Developer of Substantial Completion (“Changed Condition Costs”), the City may elect in its 1042 sole discretion to fund the Changed Condition Costs. If City declines to do so, Developer may 1043 elect to advance required amounts to the Construction Contractor or other third parties (including 1044 any Financing Party) (“Changed Condition Loans”). The Changed Condition Loans shall be 1045 repaid pursuant to a schedule agreed to by the Parties. The repayment to the Developer of the 1046 Changed Condition Loans shall be made from first, to the extent any exist, any Parking Fees that 1047 exceed 110% of Projected NOI (for the avoidance of doubt, before any distribution to the City 1048 pursuant to Section 7.2); second from an increase to the Support Payments as agreed to by the 1049 Parties; and third from the proceeds of any sale or transfer of the Project as contemplated herein. 1050 Where neither Party funds the Changed Condition Costs, Section 11.7 shall apply. Upon 1051 termination of the Agreement for any reason, any amount outstanding under any Changed 1052 Condition Loan shall be immediately due and payable by the City to Developer. Any extensions 1053 to the milestones or dates referenced in Section 5.6.2 arising from a Changed Condition shall be 1054 dealt with in accordance with Section 5.6.2. 1055 Section 7.4. Annual Reporting for Calculations. The calculation of Stabilization 1056 Payments and Cost Savings reimbursement mechanisms will be referenced against Dev...