RFP Tax-Exempt Lease Purchase

REQUEST FOR PROPOSAL
FOR A
TAX-EXEMPT LEASE PURCHASE
FOR AN ENERGY PERFORMANCE CONTRACT PROJECT
FOR THE CITY OF MUSKEGON, MICHIGAN
Proposals Due:
June 17, 2026 @ 12:00 PM Eastern Daylight Time

RFP for Financing
Scott Kuhn
Johnson Controls, Inc.
507 East Michigan Street, Milwaukee, WI 53201
Tel (858) 722-6604
REQUEST FOR PROPOSAL
Tax-Exempt Lease Purchase for a Performance Contract Project
Introduction
This is a request for proposal ("RFP") administered by Johnson Controls, Inc. ("JCI") on behalf of the City
of Muskegon, Michigan (the "Customer").
The purpose of this RFP is to solicit financing offers from qualified financial institutions (each a
"Respondent"). It is contemplated that the selected Respondent, as lessor, will enter into a tax-exempt
lease purchase ("TELP") with the Customer, as lessee, to finance the Customer's $43,296,839
comprehensive energy performance contract with JCI.
Project Background
The project involves the renovation, revitalization and reprogramming of the central Department
of Public Works facility, City Hall, and the replacement and automation of over 10,000 water meters. The
renovation of the central Department of Public Works building will enable a more streamlined and
productive delivery of services and an improved work environment. The facility, constructed in 1971, will
be outfitted with modern security, HVAC, lighting, and networking capabilities while also being brought
up to current building codes. It is anticipated that this highperformance facility will qualify for Energy Star
certification.
For city utilities specifically, the program will provide a state-of-the-art advanced metering infrastructure
(AMI) system which will allow the water/sewer utilities to streamline operations as well as bill and collect
for actual usage and eliminate revenues lost by outdated, inaccurate, manual or drive-by read meters. It
will also help the city to detect and repair leaks in the distribution system which will reduce the amount of
water loss in the system and the costs associated with that water loss.
The JCI project will improve our community's environmental impact by reducing carbon emissions
associated with inefficient HVAC, lighting and controls. The program will reduce greenhouse gas
emissions by 3,900mTons of CO2e annually, which is equivalent to removing 900 gasoline-powered
vehicles from our roadways. Furthermore, the need to "roll trucks" for meter reading, check readings,
move-in/move-out final readings, and troubleshooting will be nearly eliminated.
The attached Schedule 1 - Scope of Work (SOW) provides a detailed description of the SOW being
performed. The total cost of the project is $42,446,839 with a customer contingency of $850,000, for a
total financed cost of $43,296,839.
Lease Information
1. The TELP involves a transaction between the selected Respondent, as lessor, and the Customer,
as lessee. JCI is not a party to the TELP.
2

RFP for Financing
Scott Kuhn
Johnson Controls, Inc.
507 East Michigan Street, Milwaukee, WI 53201
Tel (858) 722-6604
2. The Customer is looking for proposals for 20-year performance period in addition to 18 months
construction term as exemplified in the Attachment A - Sample Amortization, or longest term
possible up to 20 years.
3. The TELP will be subject to the annual appropriations of funds and Lessor will be allowed a secure
interest in the equipment as recognized by a UCC-1 filing.
4. The Customer recognizes the savings guaranteed by JCI are not sufficient to service the TELP
payment and are prepared to provide sufficient capital injections each year to meet the TELP
payment. Please see Attachment B - Project Savings Cash Flows for the savings guarantees
each year.
5. The Customer is expecting to notify the successful respondent of award the week of June 22,
2026, with document reviews to follow. The financing resolution will be scheduled for the July 14,
2026, Board of Commissioners meeting with an anticipated financial close on or before July 17,
2026.
6. Respondents are allowed to use an escrow and paying agent if so desired.
7. Once installation commences, JCI will invoice the Customer on a monthly for the amount owed
for the project. The Customer will direct the lessor to pay JCI from the TELP proceeds, which
may be held in escrow. If such proceeds are not sufficient, due to a change order for scope
expansion or other reason, the Customer is responsible for funding the additional cost. The
Customer may ask the lessor to expand the credit capacity to finance the additional cost, but the
lessor is not obligated to do so.
8. Subject to change due to state and local laws, to secure the transaction, the lessor will receive a
first priority security interest in the FIMs and any money related to the project held in escrow. The
security interest will be evidenced by a UCC-1 financing statement.
9. JCI will provide a payment and performance bond for the project and will list the lessor as a dual
obligee.
10. The Customer, as lessee, is responsible for all maintenance and insurance. The Customer bears
all risk of loss. Lessor shall be named as an additional insured and loss payee on the lessee's
insurance policy, which is subject to lessor's approval.
11. Respondents shall clearly describe any prepayment rights, timing and expenses. Respondents
shall clarify if the prepayment right is in whole or in part.
12. Respondents shall describe any closing costs and if they are capitalized in the TELP.
13. Title to the FIMs shall transfer to the Customer upon installation.
14. The lessor shall have the right to assign the TELP if it first obtains permission from the Customer,
which permission shall not be unreasonably withheld.
3

RFP for Financing
Scott Kuhn
Johnson Controls, Inc.
507 East Michigan Street, Milwaukee, WI 53201
Tel (858) 722-6604
15. Respondents shall offer a fixed interest rate for the term of the TELP. Respondents shall state
the expiration date (i.e. the end of the lock period) for the offered rate and an index for how the
fixed rate would be calculated at closing after the initial expiration date.
16. Respondents should assume that this transaction will be Non-Bank Qualified.
17. Respondents shall attach a table of cash flows in their responses that includes amounts financed,
amortization of principal, interest due, payment amounts, payment dates and early termination
values.
Response Deadline
Please submit your response to this RFP no later than 12:00 PM EDT on June 17, 2026. All responses
should be emailed in "soft copy" form to Johnson Controls Structured Finance at the following addresses:
Joseph.scott.kuhn@jci.com.
Selection
All responses will be provided to the Customer for their evaluation. The Customer is responsible for
selection of the Respondent as well as the ultimate structure of the financing. Johnson Controls
Structured Finance is not providing "advice" on selection.
Questions
For questions related to the RFP, related documents, project details or other pertinent issues, please
contact JCI Structured Finance at the aforementioned contact information.
Disclaimer
Johnson Controls is not a registered Municipal Advisor with the U.S. Securities and Exchange
Commission, and is not acting as a municipal or financial advisor to the Customer. The information
provided in this document is not intended to be and should not be construed as "advice" within the
meaning of Section 15B of the Securities Exchange Act of 1934 and the municipal advisor rules of the
SEC. Johnson Controls is not acting as a broker, dealer, underwriter or placement agent with respect to
the potential transactions discussed herein. This RFP pertains to a TELP and not the issuance of
securities. JCI is issuing this RFP and collecting responses as a matter of convenience for the
Customer. All responses will be provided to the Customer for their evaluation.
4

Schedule 1
SCOPE OF WORK:
Scope of work Summary:
1. DPW Building Facility Improvement Measures (the "DPW FIMs"):
1. Public Works Building (1350 E. Keating Ave., Muskegon, MI) - Building Improvements
2. All Non-DPW FIMs:
1. City Hall - Chiller, Pump (chilled water (CHW) & hot water (HHW)), Controls
2. City Hall - Building Envelope
3. City Hall - Window Replacement
4. City Hall - Domestic Water Fixtures
5. Water Filtration Plant - Boilers, pumps, controls
6. Water Filtration Plant - Variable Refrigerant Flow (VRF) system, Window Film, Controls
7. Water Meter Replacement and Related Improvements
8. Leak Detection
9. Sewer Manhole Rehab - Infiltration
10. Cemetery - Irrigation Controller updates
11. Marina - Lighting updates
12. Marina - Domestic water heater replacement
13. Parks - Irrigation Controller updates
Performance Contract [Rev 15.4] 12/24
Johnson Controls, Inc. - Proprietary 10
(C) 2025 Johnson Controls, Inc.

Schedule 1
DPW FIMs:
Public Works Building (1350 E. Keating Ave., Muskegon, MI) - Building Improvements:
Current scope of work as briefly described below and further identified in the 25% DD drawings set
attached as file "JCI-Muskegon DPW-25% DD Set-Supporting Budget.pdf" dated 2-28-2026 is the basis
for the scope of work and pricing. JCI and our design partners will continue to work with the City to
finalize the drawings for final construction. The DPW FIMs scope described herein is preliminary and
subject to the NTP2-DPW FIMs Implementation process specified in Paragraph 1 of the Agreement.
Building General:
* Office block
o Ribbon fascia panel, soffits, and coping
o New storefront
o New Insulated Metal Panel (IMP) and coping
* Warehouse/Garage new IMP and coping
o New overhead doors - (20) 16' to 20' - sectional
o New led warehouse high-bay lighting
o Roof Replacement (TPO and R-30 continuous insulation)
* Community space
o Renovate existing vestibule
o New storefront
o New clerestory windows
o New fascia, soffit, and coping
* Site work
o (2) gas pumps relocated
o New fencing and gate - 200 linear feet (lf)
o New landscape island
o Reconfigure existing island
landscape island (final landscape by city staff, per city request)
Building Systems
* New generator - natural gas and auto transfer switch
* New HVAC system
* Tube heaters in garage
* Compressed air system
* Updated electrical service as indicated on electrical drawings and limited to areas of construction
* Security and telecom systems
* Upgrade natural gas service
* New sand/oil separator
* New drains / sewer lines in floors
Water and Sewer Department:
* ~4,000 SQFT TOTAL
o Racking for relocation of material from wares/stores and current storage (reuse of as
much racking as possible, where possible)
Performance Contract [Rev 15.4] 12/24
Johnson Controls, Inc. - Proprietary 11
(C) 2025 Johnson Controls, Inc.

Schedule 1
o (20) new gear lockers, Basis of Design: 24" X 24" X 90" with boot drawer and integral
bench seat
o Laundry: (1) Washer (1) Dryer (appliances by City)
o Gear Cleaning mop sink/mud space
o Workshop: Existing Compressed air, grinding station, drill press, workbench, sandblast
hood (equipment by City)
o New overhead door at existing location
o Relocate Water Meter Tester.
* ~600 - 700 SQFT Dispatch, Breakroom, and Offices
o (2) Supervisors' offices with entry from hallway and crew room
o (4) Hoteling Workstations
o GIS Monitor with adjacency to hoteling "mis-dig" workstations
o Full Kitchenette (appliances by City)
o Small map space. Vertical or flat file.
Highway and Traffic Department:
* ~3,000 SQFT TOTAL
o Current Space + Existing Sign Shop Space
o (23) new lockers. Basis of design 24" X 24" X 90" gear locker single tier locker, boot and
bench
o Mud space/mop sink station
o Laundry, washer + dryer. (appliances by City)
o Monitor space for GIS and/or Cartegraph management system (equipment by city)
o New Racking (reuse of as much racking as possible, where possible)
o New bench space
* ~600 - 700 SQFT Dispatch, Breakroom, and Offices
o (2) Supervisor office with entry from hallway and breakroom/crew room
o (2) Hoteling Workstations
o Monitor space for GIS and/or Cartegraph System (equipment by city)
o Full Kitchenette (appliances by City)
o Breakroom space to provide flexibility for training workshops (20-25 Max staff with
seasonal) (Monitor + presentation equipment by city)
Sign Shop Department:
* ~775 SQFT Relocated Sign Shop (More office/clean space)
o (2) Permanent Workstations open to shop
o ~20' x 10' space allocated for printer/roller/worktable signage workspace. Linear flow from
machine to machine (City provided equipment or reuse of existing)
o Whiteboard, or work monitor (monitor provided by city)
o Workbench space in Highway/Traffic
o Semi-heated space for vehicle decal work in Highway/Traffic
o Update sign blanks and horizontal storage
Salt Shed
* ~8,000 SQFT Pre-engineered Metal Building
o Lean-to's each side
o New portable ramp, Dockzilla, Basis of Design
o Pull-thru layout for salt loading under roof
o 100' x 80' with lean-to and Overhead Doors
* Provide new CMU/concrete retaining wall, epoxy coated, for cold-patch asphalt. Requires semi-
heating, located in Garage.
Performance Contract [Rev 15.4] 12/24
Johnson Controls, Inc. - Proprietary 12
(C) 2025 Johnson Controls, Inc.

Schedule 1
Mechanics Department:
* ~11,000sqft TOTAL
o Breakroom/ Office recently updated no major changes
New Large monitor for Cartegraph and training (equipment provided by City)
Storage for Manuals
* Shop Updates
o Relocate Vehicle exhaust main for fire truck access
o Updated/cleaned concrete floor
o New Lift
o Power for mobile workstations
o Consolidate tire storage
o Relocate space for tire changing equipment
o New High Volume Low Speed (HVLS) fan
o New trench drains
o Update overhead doors and operators
o New enclosed welding area with man-door access
o Parts stock storage updates
Police Shop Department:
* ~3,050 SQFT TOTAL
o Relocated police space adjacent to mechanics
o Additional Space for (6) vehicles total
o Relocate existing lifts
o Add quick hitter lift near overhead door
o Relocate fluids storage
o Relocate tire storage
o Shares mechanic breakroom
o New overhead door location and new overhead door in existing
Parks and Rec Department:
* ~6,600 SQFT TOTAL
o Relocate small engines lift for additional tractor space
o ~500 SQFT dedicated paint area with spray paint area and ventilation
o ~500 SQFT wood shop area
o Large Material Storage for wood shop
o Storage for Janitorial Supplies
o Racking storage for seasonal (Xmas) (reuse of as much racking as possible, where
possible)
o Racking for Rec Storage (reuse of as much racking as possible, where possible)
o Secure Storage Area
o Locked Key Storage
o (30) New Lockers. Basis of Design: 18" X 21" X 90" standard single tier
o Storage for Hand tool, weed whip, and etc.
* ~1,000 Dispatch, Breakroom, and Offices
o (4) Hoteling workstations
o (2) Parks Supervisor Office with office and corridor access
o Arborist Workstation (larger for laydown)
o Kitchenette (appliances by city)
o Break space flexible/expandable (for seasonal growth (30) staff)
o Monitor and Display space (equipment by city)
Performance Contract [Rev 15.4] 12/24
Johnson Controls, Inc. - Proprietary 13
(C) 2025 Johnson Controls, Inc.

Schedule 1
Forestry Department:
* ~300 SQFT TOTAL
o New enclosed space for minor maintenance of equipment; chain sharpening, etc.
Engineering Department: (incorporated into Administration space)
* (4) workstations
* (1) hoteling workstation for summer intern
* (1) Supervisor
* Lockable storage for equipment in garage
* Stand up collaborative touchdown space
Admin Department:
* ~6,800 SQFT TOTAL
o New entry and lobby with (2) station transaction window
Counter height storage for mattress bags
Space for 5-10 public to wait
o (5) Engineering workstations
o (1) Engineering Supervisor Office
o (8) Private offices
o (14) workstation open office
(10) permanent staff
(4) general hoteling
o (1) Touchdown/Kitchenette space with coffee bar, snack station, sink, fridge. Focal Point
of office (appliances by City)
o Wellness/Mother's Room
o Small mail, print, and office supply space (equipment by city)
o (2) Enclave meeting space
o (1) Medium meeting
o (1) Large Meeting
o (1) Breakroom shared with Community Space
* Standup table space
* Updated and expanded toilet rooms
* New staff entry and corridor with timeclocks and display boards
* Sound reflection mitigation via attenuation baffles, higher ceilings, and white noise
* Dedicated file storage (equipment by City)
* Permanent file storage located off corridor (equipment by City)
Community Space:
* ~6,000 SQFT TOTAL
o Renovate existing canopy and vestibule
o Add additional storefront for natural light
* ~1,000 SQFT
o Toilet rooms
o Breakroom, office use only
o Kitchen, office use can flex to public use (appliances by City)
* ~5,000 SQFT - Multi-function space
o Large storage for mobile equipment, chairs and tables, sports gear, portable partitions,
etc. (all equipment, furniture, etc. by City)
Performance Contract [Rev 15.4] 12/24
Johnson Controls, Inc. - Proprietary 14
(C) 2025 Johnson Controls, Inc.

Schedule 1
o New entry area with front desk and cubby storage area.
o Durable and versatile flooring, rubber sports floor, basis of design.
o Direct and indirect lighting for various activity types.
o Audio and Visual systems for lectures/presentations. Projectors, monitors, PA's.
(equipment by City)
General notes on DPW renovation:
* City will carry separate budget for all work related to any asbestos / lead abatement,
contaminated soils clean-up/remediation, landscaping, furniture, appliances, equipment,
workstations, monitors, technology equipment, loose furnishings, play / sports, program related
equipment.
* This plan assumes the reuse of Voice over IP (VOIP) phones, IT closet racking technology
equipment with any associated servers, switches, customer provided computers, etc.
Performance Contract [Rev 15.4] 12/24
Johnson Controls, Inc. - Proprietary 15
(C) 2025 Johnson Controls, Inc.