Partner Updates

By: The Veregy Team

In today’s fast-evolving environments, facility managers face increasing pressure to optimize building performance, reduce operational costs, and enhance occupant comfort. However, the challenge often lies in managing many stand-alone facility systems and equipment—HVAC, lighting, security, energy monitoring, and other systems—each operating in isolation. This fragmented approach can lead to inefficiencies, deferred maintenance, and excessive energy and operational costs.

Integrated facilities management addresses these challenges by unifying multiple facility systems into a single, centralized control platform. By tying together critical building functions under one umbrella, organizations in local government, among other markets, can achieve enhanced operational efficiency, improved sustainability, and substantial energy cost savings.

GREATER FLEXIBILITY WITH VENDOR-AGNOSTIC BUILDING AUTOMATION SYSTEMS

Technology is shifting towards open, integrated solutions to remove data silos and create potential data-driven optimization. Integrating open protocol building automation systems enhances flexibility and scalability by allowing different systems and devices to communicate seamlessly, regardless of manufacturer. Original equipment manufacturers (OEMs) will try to sell you closed protocol, proprietary hardware, and software, forcing you to use only their brand of products. Conversely, vendor-agnostic solution providers give you more freedom when making future facility improvements. This approach eliminates vendor lock-in, reduces upgrade costs, and ensures facilities can adopt the latest technologies without compatibility concerns.

ENHANCED OPERATIONAL EFFICIENCY

An integrated system reduces redundancies, automates workflows, and optimizes resource allocation. Leadership and facility management teams gain real-time insights into building performance, enabling quick decision-making and reduced downtime. Additionally, when various pieces of equipment and facility systems are integrated and automated workflows are programmed, this reduces the time- consuming, manual responsibilities of your staff, freeing them up to work on higher-priority activities.

IMPROVED ENERGY EFFICIENCY & COST SAVINGS

By unifying facility systems, organizations are empowered to track and optimize energy consumption across all building assets. Predictive analytics and artificial intelligence (AI) driven automation can be programmed to ensure that facilities operate at peak efficiency, reducing waste and lowering utility costs. For example, integrating HVAC systems and lighting controls with the building automation system enables real-time adjustments based on occupancy and usage patterns. These energy-consuming systems can be automatically turned on in occupied spaces and turned off or down when these spaces are not in use. These efficiencies translate into significant cost savings by reducing energy waste, lowering utility bills, and preventing overused systems from needing to be repaired or replaced prematurely.

PROACTIVE MAINTENANCE & ASSET LONGEVITY

A centralized control system enables predictive maintenance by continuously monitoring equipment health and alerting teams before failures occur. This reduces unplanned downtime, extends asset life cycles, and minimizes repair costs. Proactive maintenance prevents costly disruptions and enhances overall safety for your building occupants.

SCALABILITY & FUTURE-READINESS

As buildings evolve with new technologies such as the Internet of Things (IoT), AI, and automation, your organization needs to remain flexible and ready to adapt. An integrated approach, especially when the building automation system is open protocol, ensures seamless adaptation and scalability. Organizations can easily incorporate new workflows and equipment without overhauling existing infrastructure. Keep in mind that control systems, much like computers, should be assessed regularly
for system updates and upgrades.

USER-FRIENDLY DASHBOARD FOR CENTRALIZED MANAGEMENT

A key component of a successful integrated facilities management approach is a single, intuitive dashboard that provides a comprehensive view of facility operations. A user-friendly interface allows facility managers to monitor and control HVAC, lighting, security, and other systems remotely and in real time. This centralized platform simplifies performance analysis, streamlines issue resolution, and enhances decision-making by providing actionable insights, ensuring that organizations can maintain efficiency with ease. Additionally, having a unified dashboard supports energy-saving initiatives by providing real-time energy consumption data, identifying inefficiencies, and enabling automated optimization strategies.

BEST PRACTICES FOR IMPLEMENTING INTEGRATED FACILITIES MANAGEMENT

• Assess Current Systems: Engage with an energy and facility improvement partner to conduct a comprehensive audit of existing facility systems to identify inefficiencies and integration opportunities.
• Choose a Platform Tailored to You: Select a platform that offers seamless integrations between all building systems, providing a user-friendly interface for monitoring and control. The platform should be non-proprietary and able to be customized aligning with your unique integration needs.
• Train Facility Teams: Equip personnel with the knowledge and skills to leverage the integrated system effectively, ensuring smooth adoption and ongoing optimization. An easy-to-use user interface is a key component in simplifying training and adoption for your staff.
• Leverage Data Analytics: Utilize advanced analytics to gain actionable insights, driving continuous improvements in energy efficiency, maintenance planning, and operational strategies.

OPERATIONAL EXCELLENCE IN ACTION

Modernizing facility management is no longer just about fixing what is broken. It is about leveraging data to overcome common municipal hurdles. For example, communities struggling with maintenance staffing gaps have found success by automating the link between equipment health and work order generation. This ensures that even with a lean team, critical infrastructure receives timely care, preventing costly emergency repairs down the road.

Furthermore, streamlining the coordination of public spaces offers a significant bottom-line benefit. For larger municipalities processing dozens of facility requests daily, manual scheduling of HVAC and lighting is a recipe for utility waste. Integrating scheduling software with building controls allows systems to “wake up” and “sleep” based on actual occupancy. This transition allows administrative staff to pivot to higher-priority core community operations while simultaneously meeting energy efficiency
goals.

As Ohio local government organizations face the dual pressures of aging infrastructure and tightening budgets, the move toward Integrated Facilities Management represents a vital path forward. By transitioning from siloed, manual processes to integrated, automated systems, municipalities can extend the life of their assets, empower their workforce, and ensure that every tax dollar spent on utilities and maintenance is optimized for the long-term health of the community.

ABOUT VEREGY

Veregy is an award-winning NAESCO-accredited decarbonization company focusing on accelerating and simplifying the Energy Transition. With offices in 13 locations across the country, Veregy provides turnkey engineering and construction services designed to reduce their clients’ energy and operating costs through the implementation of energy efficiency and infrastructure upgrades, smart building technology, fleet EV infrastructure, clean energy generation, and sustainability. The national firm has over 35 years of industry experience and has delivered $2.1B+ in energy savings projects.

To learn more about Veregy, visit their website at www.veregy.com.

How Energy Efficiency Can Help Ohio Municipalities Weather Utility and Tax Changes

Across Ohio, local governments are feeling the pinch from two directions: rising utility costs and proposed changes to property tax funding. Together, these pressures are making it harder for cities, counties, and school districts to balance budgets without cutting services. The good news is that smart energy efficiency investments can help offset these challenges, often
without increasing taxes or fees.

Rising Utility Costs
Electric and natural gas rates have climbed sharply over the past two years. Many public facilities are seeing double-digit increases in utility bills compared to pre-pandemic levels. Generation and transmission charges — not just energy usage — are major drivers. Capacity costs in the PJM power market and infrastructure upgrades by utilities have added even more pressure. These higher costs directly hit general fund budgets. A 5%–10% increase in energy expenses across dozens of buildings can easily mean hundreds of thousands of dollars in unplanned costs for a mid-sized city or county.

Property Tax Uncertainty
At the same time, state policymakers are discussing ways to reduce or replace property taxes, especially for schools and local governments. While the goal is tax relief, the transition could create short-term instability in revenue streams that fund public services, maintenance, and capital improvements. With limited flexibility to raise other taxes or fees, local leaders may face
even tighter operating budgets just as utility costs peak.

The Case for Energy Efficiency
This is where energy efficiency becomes a budget protection strategy, not just a sustainability measure. Projects such as LED lighting upgrades, HVAC system modernization, and advanced building controls can cut utility bills by 25–40%. With today’s technology, these systems are non- proprietary, easier to maintain, and built around local serviceability — no long-term vendor lock-ins or expensive software licenses. Many municipalities across Ohio have already taken this path. Upgrading to high-efficiency lighting and replacing outdated control systems in facilities of every type has produced immediate savings that offset rising utility rates. Some have achieved project paybacks of less than five years, with energy savings continuing to free up funds year after year.

Financial Tools and Partnerships
Energy projects can often be budget-neutral through energy performance contracts or financing tied to guaranteed savings. Partnering with an experienced energy services provider can help local governments navigate these opportunities, calculate realistic savings, and structure projects that pay for themselves.

The Bottom Line
While utility rates and tax structures may be outside local control, energy use is not. By cutting consumption, cities and counties can reduce exposure to rising costs and revenue uncertainty. Energy efficiency turns a problem — rising expenses — into a solution: long-term budget stability and better stewardship of public resources.

Submitted by:
Doug Trimbach
Vice President-Lighting
Energy Optimizers, USA
[email protected]
937-877-1919

Governments everywhere are experimenting with AI. Some pilots quietly stall. Others become case studies shared across city halls, CIO roundtables, and conferences. What separates the two isn’t budget size, technical sophistication, or even ambition.

It’s how the project was designed from day one.

Across agencies that have successfully deployed AI, especially in resident-facing services, clear patterns emerge. Here’s what those projects consistently get right.

1. They Start With a Real, Measurable Problem

Successful AI projects don’t begin with “Let’s try AI.” They begin with questions like:

• What repetitive work are we doing that takes up time?
• Why are call volumes increasing?
• Where are staff spending time answering the same questions?
• Which services are hardest for residents to navigate?

The most effective projects target friction points that already exist and not hypothetical future needs. AI becomes a tool to reduce backlog, improve access, or relieve staff pressure.

Pattern: Clear problem → clear success metrics (fewer calls, faster responses, higher completion rates).

2. They Focus on Public-Facing Use Cases First

Many government IT leaders assume internal AI tools are the safest place to start. In practice, the opposite is often true.

Successful projects frequently begin with resident-facing AI:

• Website chatbots
• Voice-based support lines
• Self-service tools for common questions

Why? Because these systems rely on approved, public information, which:

• Reduces privacy and security risk
• Simplifies governance
• Makes outcomes easier to measure

Pattern: Public content + public services = lower risk, faster approval.

3. They Work With Existing Systems (Not Around Them)

Successful government AI projects don’t require massive data migrations or new infrastructure. They build on what already exists:

• Website content
• FAQs
• Forms and workflows
• Published ordinances and policies
• Other software

By integrating with current systems, teams avoid creating “one more tool” staff have to manage.

Pattern: AI fits into the ecosystem instead of creating a parallel one.

4. They Make Governance Part of the Design, Not an Afterthought

The best AI projects bake governance in early:

• Clear boundaries on what AI can and cannot answer
• Defined ownership and oversight
• Transparent explanations for residents

This approach helps teams respond confidently to questions from leadership, legal teams, and the public.

Pattern: Guardrails first → confidence later.

5. They Deliver Value to Both Residents and Staff

Projects that only benefit one side tend to lose momentum.

Successful deployments:

• Improve resident access (24/7, multilingual, easier navigation)
• Reduce repetitive work for staff
• Free up human time for complex or sensitive issues

When staff feel the benefit directly, adoption follows naturally.

Pattern: Better experience outside + lighter load inside.

6. They Are Easy to Explain to Non-Technical Stakeholders

If a CIO can’t explain an AI project to:

• A city manager
• A council member
• A resident at a town hall

…it’s probably too complex.

Successful projects are simple to describe:

“This helps residents get answers faster and reduces calls to City Hall.”

That clarity builds trust and trust drives longevity.

Pattern: If you can explain it simply, you can defend it easily.

The Big Takeaway for CIOs and IT Leaders

Successful local government AI projects aren’t about cutting-edge models or experimental tech.

They are about:

• Clear problems
• Thoughtful constraints
• Practical outcomes
• Responsible deployment

When AI is treated as infrastructure for service delivery, not a science experiment, it sticks.

And that’s when it starts to matter.

To learn how Polimorphic’s AI platform can help your team solve clear problems with practical outcomes, request a demo.

Water supply in Ohio is plentiful, but the infrastructure required to produce, distribute, and generate revenue from it is costly. Meters are critical to funding the water enterprise—yet many cities are relying on inefficient legacy systems or end-of-life assets that are rapidly deteriorating. This puts both financial sustainability and economic growth at risk.

Economic development depends heavily on utility infrastructure. Along with energy availability and cost, the capacity and reliability of water systems are often deciding factors in site selection. Communities that modernize their water infrastructure not only strengthen their fiscal position but also create a foundation for new business investment, housing development, and long-term growth.

Fortunately, technology offers a clear path forward as newer smart meters are proving to be one of the most strategic and cost-effective investments available.

Four Measurable Benefits of Smart Meter Technology

1. Proactive Leak Detection to Protect Water Supply
   Older distribution and metering systems might make it hard to discover leaks or identify the source of unaccounted water. Smart meters deliver real-time data, enabling utility teams to quickly detect and address problems remotely. This reduces water loss, safeguards revenue, and supports conservation.
2. Customer-Centric Tools to Improve Accountability
   Finance and Public Works leaders need modern tools to manage consumption and customer relations. With yesterday’s technology, excessive usage is often discovered too late, which can lead to high bills, political pressure, and unpopular write-offs. Smart meters provide:
   • Usage alerts for customers and staff
   • Remote shut-off technology for delinquent accounts or high-turnover properties
   • Reduced staff confrontations and safer field operations
     
     These capabilities shift utilities from reactive to proactive, strengthening both customer service and fiscal accountability.
3. Operational Efficiency and Stronger Cash Flow
   Advanced Metering Infrastructure (AMI) delivers more accurate billing, ensuring that high-volume users pay their fair share while light users are not overcharged. Real-time usage data supports monthly data analytics, improving cash flow.
   
   Additional benefits include:
   • Elimination of manual meter reading, reducing vehicle and labor costs
   • Free-up staff capacity for higher-priority infrastructure needs
   • Accuracy guarantees and performance assurances that mitigate risk and protect long-term revenue
4. Strategic Data for Long-Term Planning
   Smart meters generate detailed consumption data that supports long-term water planning. Seasonal usage trends, peak demand periods, and neighborhood-level consumption insights allow utilities to make informed decisions about:
   • Capacity and system expansion
   • Targeted conservation programs
   • Evaluating infrastructure needs for new developments

Case Study: Aurora, Indiana – A Self-Funded $2.2M AMR Deployment

The City of Aurora improved efficiency and accuracy which translated to increase revenue by replacing its aging water meter infrastructure. Partnering with Energy Systems Group (ESG), the City implemented a $2.2M self-funded project that included:

• 2,547 water meter replacements with Badger Meters and Itron ERTs
• 1,615 gas meter retrofits/replacements with Itron ERTs
• 900 Itron leak sensors
  
  The city now enjoys a $3 million guarantee in financial benefit over the life of the project. This makes smart meters the clear choice for investment that produces new revenue without risks, providing financial certainty and operational confidence to City leaders.

Smarter Procurement and Financing Options

The biggest barrier to smart meter deployment is not technology—it is capital. Off-the-shelf purchases often result in piecemeal implementations that fail to address community-wide needs.

ESG helps communities in Ohio and beyond overcome procurement and financial barriers through:

• Energy Services Performance Contracting (ESPC): ESPC as codified in ORC 717.02 Section 717.02 – Ohio Revised Code | Ohio Laws specifically outlines a qualification based procurement for AMI projects. A design-build approach with performance guarantees that it pays for improvements over time.
• Cooperative Purchasing (e.g., Sourcewell): Streamlined procurement with accountability and speed.
• Metering as a Service (MaaS): More and more utilities are moving to service-based delivery models to make business processes more flexible, reduce technology risks, and minimize costs. A financially structured, subscription-based model where utilities access smart metering hardware, software, and support without significant upfront costs.
• Funding Strategies: Assistance in sourcing grants, rebates, and other funding opportunities.
  
  By combining procurement flexibility with multiple financing options, municipalities can modernize infrastructure today while spreading costs across future revenue streams.

The Right Partner Makes it Possible

Aging water infrastructure continues to accelerate in Ohio communities. Smart meters are more than a technology upgrade—they are comprehensive tools that enable conservation, revenue optimization, operational efficiency, and long-term growth.

Partnering with ESG gives communities the expertise, resources, and financing options needed to move forward quickly and begin reaping the rewards of modern infrastructure in your community.

Contact Keith Valiquette at [email protected] about how ESG can help your community modernize water infrastructure without straining budgets.

When most people think about government, they don’t think of customer service. But the reality is, every city, county, and state agency is in the business of serving its residents. From answering simple questions about trash pickup to processing complex public records requests, government touches people’s lives daily. And it’s not easy.

As Parth Shah, CEO of Polimorphic, put it on the PIO Podcast:

“Government might be the most complicated customer service organization in the world.”

Why It’s So Complicated

Even the smallest city is running multiple “businesses” at once. Utilities, public works, planning and zoning, public safety, the list goes on. Unlike a laundromat or a single retail shop, government agencies must manage completely different operations under one roof. The only thing tying it all together? Customer service.

Parth explained that when he studied how front desks operated, half of staff time was spent on repeat questions and residents calling because they couldn’t find information online. Another 25% was just status updates (“Where is my request in the process?”). That leaves little time for staff to handle the complex, high-value work that really needs their attention.

He framed it perfectly with a metaphor:

“Most time is being spent on laundry and dishes—the laundry and dishes of customer service.”

The Impact on Residents

This complexity has a direct impact on the public. When websites are outdated, when forms fall through the cracks, or when staff can’t keep up with requests, residents lose trust in government. Misinformation can spread quickly, and staff are left juggling phone calls, emails, and walk-ins without the tools to keep up.

Residents today expect the same service from their government as they do from Amazon or Domino’s—24/7 access, clear status updates, and the ability to interact in their own language. Meeting those expectations with shrinking staff sizes and outdated processes is a massive challenge.

How to Fix It

The good news? Solutions exist. Polimorphic is working with agencies across the country to streamline communications and automate repetitive tasks. Our AI-powered tools that:

• Answer resident questions through chat, voice, SMS, and email—using only official, controlled content.
• Handle 75+ languages, ensuring access for communities who have historically been underserved.
• Automate workflows for requests like FOIA/public records, so deadlines are met and tasks don’t get lost in email chains.
• Provide internal staff with analytics and audit trails, helping them spot bottlenecks and improve processes.

By offloading “laundry and dishes” tasks to AI, government staff can focus on the work that truly matters: solving problems, building trust, and offering their communities the highest level of service.

Don’t Be Last

Shah offers a final piece of advice for agencies still hesitant about embracing AI:

“Now is the time to be second—don’t be last.”

With 30 million Americans already served by governments using AI tools like Polimorphic, the shift is well underway. The question is no longer whether AI will be part of government customer service. It’s how quickly agencies will adapt.

Ready to learn more? Request a demo of Polimorphic’s AI for the public sector.

Cybersecurity is no longer a “nice to have” for local governments—it’s now a legal and operational requirement. The State of Ohio has officially released new cybersecurity standards for local government entities, signaling a major shift in how municipalities must secure their systems, data, and digital services.

Whether you’re managing a township, a city, a county agency, or a school district, these new standards apply to you. And the clock is ticking.

🚨 What’s Changing?

The new rules—issued by the Ohio Department of Administrative Services (DAS)—establish minimum cybersecurity requirements for public-facing systems and networks used by local government organizations. They are designed to address the growing number of cyberattacks targeting public sector agencies and critical infrastructure.

Key areas covered in the standards include:

• Encryption of data at rest and in transit
• Multi-Factor Authentication (MFA) for system access
• Patch management to reduce known vulnerabilities
• Logging and monitoring of network activity
• Vendor oversight with security requirements in third-party contracts
• Incident response planning and documentation
• Annual compliance attestation to the state

This is not a recommendation—it’s a mandate.

🧩 Why It Matters

Ransomware, phishing, and nation-state cyber threats are increasingly targeting local government systems. With limited resources and outdated infrastructure, many local entities are struggling to keep up. The new standards provide a clear roadmap for improving cyber hygiene and reducing risk—but they also bring accountability.

Non-compliance can lead to:

• Audit findings and funding consequences
• Insurance policy limitations or denial of coverage
• Increased risk of operational downtime and data breaches
• Legal liability following a cyber incident

🛠️ What Should Local Governments Do Now?

Here’s where to begin:

1. Assess Your Current Posture
   Conduct a cybersecurity assessment to determine where you stand against the new standards.
2. Implement the Essentials
   Prioritize MFA, patch management, encryption, and centralized logging. These controls reduce the majority of threats.
3. Update Policies and Plans
   Ensure your incident response plan, vendor agreements, and user access policies align with the new requirements.
4. Prepare for Reporting
   DAS will require annual attestations of compliance and may request documentation in the event of an incident.
5. Engage a Trusted Partner
   If you don’t have internal cyber expertise, don’t go it alone. SecureCyber offers a tailored “Ohio Cyber Compliance Kit” to help you fast-track your readiness and simplify compliance.

🎙️ Hear More on the Podcast

Want to dive deeper? Listen to our latest episode of “Securing Local Government”, where we break down the new Ohio cyber rules in plain language and share advice for compliance:

▶️ Listen on Apple Podcasts
▶️ Listen on Spotify

📅 Upcoming Free Webinar

We’re hosting a live webinar to help Ohio’s local leaders understand the new standards, what they mean, and how to comply quickly and affordably.

🗓️ Date: July 10, 2025
⏰ Time: 11:00 AM – 12:00 PM Eastern
📍 Location: Microsoft Teams
🎟️ Register Here: https://events.teams.microsoft.com/event/9d8c97da-efbc-4bd3-b1ab-1e115897c450@ce23d004-c83c-410f-9ac4-e889772351dc

Questions? Reach out today at www.secdef.com or call 937-388-4405.

Together, let’s protect Ohio’s local governments from the threats that put our communities at risk.

Government teams all face the same challenge: constant office visits from residents, ringing phones, and residents just trying to get help. It’s not for lack of effort. Governments are doing more than ever with fewer staff, tighter budgets, and increasingly complex demands. Traditional chatbots provide some relief, but there is still work to be done.

That’s why the future of local government customer service isn’t just a chatbot. It’s an AI Concierge—a multichannel assistant designed to meet residents where they are, on every platform they use.

From Historical Chatbots to Generative AI

Early government chatbots were static and rigid. They helped filter questions but rarely resolved them. Then came generative AI. With it came smarter systems that could interpret nuance, handle unstructured requests, and integrate with real-time data sources. 

But the potential is still largely untapped — because too many solutions still live only on the web.

The Pain Points in Local Government Customer Service

Residents don’t think in “channels.” They send an email, call a hotline, or walk into city hall expecting the same level of service. Governments, on the other hand, often have siloed systems: web chat here, phone tree there, and a disconnected kiosk somewhere else. Plus, most support is only available during office hours. Staff scramble to respond, data gets lost, and trust erodes.

We don’t need more interfaces. We need a single, intelligent system that can speak all the languages of modern communication 24/7.

The Promise of an AI Concierge

An AI Concierge brings consistency, intelligence, and accuracy to every platform your residents already use. That means:

• For counties, large cities, and state agencies: Seamless integration with complex systems, scalable across millions of interactions.

• For small cities: A powerful assistant that makes a team of five feel like a team of fifty.

• For everyone: A smarter interface that doesn’t just answer questions — it understands needs, initiates workflows, and resolves issues. Plus, connect AI Concierges across neighboring agencies so residents truly have one front door for services.

And it’s not just on your website. An AI Concierge works across all mediums:

• Chatbot – for web and mobile visitors

• Search – embedded in your site to surface the right info, fast

• Voice – powering phone trees with AI instead of menus

• SMS – giving residents answers via text

• Email – Automatically triaging and drafting responses

• Social Media – handling DMs, comments, and questions

• Kiosk – for in-person service in lobbies and public buildings

• Other – integrations with apps and services unique to your city

This is what makes it more than a chatbot. It’s a true concierge—wherever, whenever, however your residents reach out.

Why Accuracy is the Game-Changer

Breadth of support is powerful. But once you’ve enabled all the mediums, what matters most is:

1. Accuracy – Can the AI give a correct, confident response 99% of the time?

2. Agentic capabilities – Can it take action on the resident’s behalf?

Let’s talk about accuracy. Polimorphic’s AI is built on government-specific language models trained on city documents, forms, and workflows. It doesn’t just guess, it knows. It connects to your internal data sources, provides transparent answers, and keeps improving over time.

The Vision: AI Agents for Government Customer Service

Today, we’re automating responses. Tomorrow, we’re automating action. The AI Concierge is the first step toward a fully empowered digital agent that can answer questions, file forms, book appointments, and resolve issues end-to-end.

It’s not science fiction. It’s happening right now in local governments using Polimorphic.

Let’s stop asking whether we need a chatbot.
The question is: Can your residents get the help they need, anywhere they show up?

Because the future of public service is proactive, personalized, and platform-agnostic.

It’s more than a chatbot. It’s an AI Concierge.

To learn more about giving your residents 24/7, multilingual access to your government services, request a demo here.

As a city manager responsible for preparing the budget, unknowns are inevitable. Sure, you make plans and projections, but events beyond your control create challenges for you as the top operating official in a local government. Yet, some things are certain – the need for: jobs and economic development, planning for the future needs of the community, maintenance of current facilities, and the dreaded infrastructure renewal. How do you meet those needs while balancing an operating budget with minimal cushion to absorb fiscal challenges that could impact the City’s short and long term financial condition?

A recent example of a fiscal challenge is the drying up of monies from the federal government passage of two huge spending bills – the CARES Act and ARPA – as part of the response to the COVID-19 Pandemic. Many communities benefited from this funding for operating expenses, capital budgets, and maintaining staffing levels but this supplement is rapidly concluding, the band-aid is slowly coming off, so to speak. Is there a plan in place to address this challenge?

This phrase has been used in the past that, as a city manager, you deal with it and gain experience by learning to pivot. After all, the ‘to-do’ list of capital needs extends well beyond supplemental funding.

Energy Systems Group® (ESG) can assist with the pivot. We help our clients uncover opportunities to improve their bottom line so they can invest in and maintain their facility and utility infrastructure in a manner that levels out the fiscal unknowns.

Optimize Budgets, Minimize Costs

When times are tough, people find ways to scrimp. However, when cities put off essential infrastructure projects, it can lead to safety risks, a decline in resident and business confidence, increases in energy and insurance costs, and inflationary impacts later. But what can be done when budgets decline due to federal monies drying up or other reasons? There’s cost-cutting, which is always painful, or raising taxes/passing levies, a last resort, especially when inflation has left many families struggling.

ESG can find ways to reduce operating expenses, support your capital budget, and identify new sources of revenue.  Our strategy is to develop an understanding of your needs, challenges, and objectives and then dig through the budget to find pockets of money, locate areas of potential savings, and align solutions with your objectives.

ESG’s expertise goes beyond cost-reduction strategies. Our methods promote efficient decision- making so our customers can move rapidly from concept to engineering to procurement to project execution. We get customers to cost certainty on projects quickly.

Certainty includes something we deliver called performance assurances. ESG believes there is an increasing gap between what works in theory and what works in the real world. We deliver capital improvements that will operate as designed with intended contractual outcomes relating to system performance and achieving projected savings. So, if the project does not perform as we projected, ESG has a contractual obligation to make it right.

Simplifying the Procurement Process

At ESG, we aim to make the procurement process as seamless as possible for our clients. Local governments and organizations can easily advance projects through qualification-based selection methods without being tied to the low-bid process. For instance, in Ohio, local governments can contract for projects using a qualifications-based process. This allows them to select a partner based on professional expertise rather than the lowest bid. Additionally, as a qualified partner through Sourcewell, customers can directly procure our services without going through the formal, time-consuming bidding process because Sourcewell has already done the work. This streamlined approach saves time and ensures that the most qualified professionals handle projects.

There are other procurement channels, such as TIPS, offering even more flexibility for cities seeking to simplify project procurement. By leveraging these alternative procurement options, you can avoid the limitations of traditional low-bid methods, ensuring high-quality results and smoother project execution.

Let us handle the heavy lifting in finding the best ways to make your procurement process efficient and effective.

Ohio Success Stories

We’ve worked with multiple cities throughout Ohio. Because ESG orchestrates much of the heavy lifting involved with the projects, it makes it easy for local governments. With limited staff and resources, our turnkey solution with a single point of contact means a limited staff does not limit the possibilities. Check out these two success stories.

Infrastructure Renewal without Raising Taxes

Facing a range of complex challenges, the City of Huber Heights needed to modernize critical infrastructure, honor its commitments to taxpayers, but contend with 84% of unvoted debt spoken for from previous economic development investments. Aging HVAC equipment made it difficult for the city to maintain comfortable and healthy indoor environments, a critical need elevated during the COVID-19 pandemic. The typical, lengthy procurement process for capital improvements hindered its ability to address urgent modernization needs efficiently and keep up with growing demands. ESG was able to bring expertise to the table to expedite implementation through our direct procurement and project management capabilities.

We provided engineering, design, financing, construction, and project management services for the following project scope:

• Infrastructure renewal at eight buildings and several parks
• HVAC improvements
• Installing a city-wide Energy Management System
• Indoor Air Quality (IAQ) upgrades at multiple facilities
• Rebuild of two major intersections including drop lane
• Citywide interior lighting upgrade
• Replacement of emergency generators at two fire stations.

Through the solutions implemented by ESG, the City of Huber Heights was able to modernize eight buildings while also realizing savings of $949,000 in operational costs and $677,000 in energy costs over 15 years. The $3.3 million project capital improvement project was completed without new taxes.

Facility Renewal Results in Significant Savings on Operating Expenses

The City of Vandalia was seeking a partner to help them create a vibrant community, maintain sustainable fiscal practices, and leverage technology across the city. With original equipment in most major buildings, failure of A/C on the hottest week of the year made it clear that phasing the project over multiple years was off the table.

ESG supported the heavy lifting required to deliver fact-based recommendations to Council on “what now” and “what could wait”. ESG expedited engineering and development to lock down prices early in very volatile markets. Once implementation was complete, ESG developed a comprehensive plan so that future needs are identified, quantified and become part of the capital budget process.

The City was then able to understand its needs rather than be limited by an arbitrary budget placeholder. The results were a comprehensive facility renewal program.  It included:

• 100,000 sq ft of Roof Replacements
• HVAC System Upgrades
• LED Building and Street Lighting Retrofit
• Traffic Signal Maintenance and Interconnectivity
• Illuminated Overhead Street Signage
• Solar-powered walking path lighting
• Emergency generator for Municipal Building’s
• Emergency Operations Center (EOC)
• Comprehensive facility plan
• HVAC duct cleaning

Moving Projects Forward

As a City Manager, you’re constantly juggling the demands of the city and the available budget. While funding sources shrink or dry up, facility and utility infrastructure needs don’t. ESG helps cities overcome the financial barriers that block essential projects and achieve cost surety. Get ahead of what you are behind on, and invest in solutions that improve livability, workability, and resiliency with our unique funding strategy.

Many months of hard work, planning, and collaboration among various partners have been rewarded this spring as the DeWine Administration announced the results of the long-anticipated Appalachian Community Grant (ACG) Program.

Last week, Governor Mike DeWine, Lt. Gov. Jon Husted, and Ohio Department of Development (ODOD) Director Lydia Mihalik toured eastern and southeastern Ohio announcing $204 million in grants to 39 communities in the final awards of the ACG Program. The bulk of last week’s awards were part of $152 million to Ohio’s Wonderful Waterfronts Initiative with $52 million coming at the end of the week for a collection of waterfront, downtown, and recreational projects. A week earlier, the same leaders toured southern Ohio awarding $154 million for the Appalachian Downtowns and Destinations Initiative.

In March, the state announced that 28 ACG projects were funded through a $64-million award for the Appalachian Children’s Health Initiative that will create or expand school-based health clinics and launch healthcare-focused workforce development programs.

All in total, 97 project awards have been announced this year. These awards are on top of $80 million that was awarded during 2023 to a small batch of shovel-ready projects.

Collectively, the $500-million ACG should spark transformational developments across the 32 Appalachian Ohio counties through enhancements to recreation, tourism, downtown revitalization, healthcare, and workforce development. In addition to Administration officials, the Governor’s Office of Appalachia (GOA), the four Appalachian Local Development Districts (LDDs), procured planners, local officials, and applicants alike should all take some time to relish the unprecedented magnitude of these awards.

For the applicants, the real hard work starts now. What are the implications for the eligible winners?

1. With the American Rescue and Recovery (ARPA) clock ticking—all such funds must be fully spent by fall 2026—there is no time to rest as deadlines loom to complete projects. Planning all action steps now will save time, money, and avoid pitfalls.
2. Grant and subrecipient agreements will need to be executed.
3. If not already under contract, design professionals will need to be legally procured, and full designs will need to be completed. Permits may need to be secured and bidding documents will need to be drafted.
4. Construction contracts (traditional bid, design-build, or construction-manager-at-risk) will need to be executed. Plans will need to be made for construction supervision and fiscal oversight and controls.
5. Having a plan for prevailing wage compliance will be important.
6. If any hiring is required, appropriate HR policies and procedures will need to be in place.
7. Once built, required reporting must be administered to ensure the projects yield the public benefits promised.

As a long-time legal partner to many communities across Ohio, including many Appalachian counties, Bricker Graydon offers well-earned congratulations to all of the ACG project winners.

The Ohio Attorney General (OAG) released an opinion in March 2024, Opinion No. 2024-003, to clarify the kinds of services that may be procured under R.C. 9.48. The March 2024 opinion specifically references an OAG opinion released in August 2019, Opinion No. 2019-028, in which the OAG opined on the authority of a political subdivision to contract for construction services through joint purchasing programs under R.C. 9.48. With the August 2019 opinion, the OAG declared that a political subdivision cannot procure construction services pursuant to R.C. 9.48. Since its issuance, this opinion has had a significant limiting effect on joint purchasing programs that rely on procurements from out-of-state government entities, and it has had a corresponding limiting effect on political subdivisions within the state that have historically relied on those programs for procurement of construction services.  

In general, R.C. 9.48 allows political subdivisions to participate in (1) contracts entered into by another political subdivision, (2) joint purchasing programs, and (3) contract offerings from the federal government. Procurement pursuant to R.C. 9.48 is attractive to political subdivisions because such procurement is exempt “from any competitive selection requirements otherwise required by law if the contract in which it is participating was awarded pursuant to a publicly solicited request for a proposal or a competitive selection procedure of another political subdivision within this state or in another state.” Stated another way, a political subdivision can procure equipment, materials, supplies, or services pursuant to R.C. 9.48 without adhering to its own competitive procurement requirements, because another political subdivision has already done so.  

In the August 2019 opinion, however, the OAG determined that R.C. 9.48 could not be used to procure “construction services.” In making its determination, the OAG focused on 9.48(B)(1), which provides that a political subdivision may, for a fee, participate in a contract entered into by another political subdivision for “equipment, materials, supplies, or services.” The opinion notes that although the General Assembly had used the terms “construction” and “construction services” in other locations within the Revised Code, the General Assembly did not use those terms in the list of items that can be procured pursuant to R.C. 9.48. Due to this omission, the OAG determined that “construction services” cannot be procured under R.C. 9.48. The OAG opined that “[i]f the legislature intended to include ‘construction services’ in R.C. 9.48, it would have used the language to do so.” Id. at 4. Thus, according to the OAG, R.C. 9.48 does not provide an exception to the bidding statutes for construction services contracts.   

In the last five years following the August 2019 opinion, there has been little guidance as to what services are considered “construction services.” Based on the August 2019 opinion, a conservative interpretation of what would constitute “construction services” would include any typical construction-type improvements to facilities, such as roofs, flooring, HVAC, or lighting improvements. The March 2024 opinion clarifies that this is not always the case.    

Specifically, in the March 2024 opinion, the OAG considered what the General Assembly intended to be included under the term “services” contained within R.C. 9.48. The OAG concluded that “installation, maintenance, repairs and the like” are appropriately considered permissible “services” under R.C. 9.48, especially when they are procured with equipment, materials, and supplies under the program. By contrast, the OAG stated the word “construction” is commonly defined as “the process or art of constructing; act of building; erection; act of devising and forming; fabrication composition; also, a thing constructed; a structure.”   

Thus, the syllabus for the March 2024 opinion lands with a cautionary note, stating: “[w]hether any particular service acquired under R.C. 9.48, including any repair, maintenance, replacement, installation, or upgrade constitutes ‘construction’ or ‘construction services’ is a question of fact beyond the opinion-rendering function of the Attorney General.” Therefore, if you are a political subdivision in Ohio and plan to use a joint purchasing program to procure services for a building improvement project, you will want to work with legal counsel to determine whether the services sought are construction services and therefore prohibited from being obtained through a joint purchasing program, or rather, services limited to the “installation, maintenance, repair, and the like,” and ultimately permissible through a joint purchasing program.

Access the original article here.