Siemens and the Energy Performance Contract with Lake Worth

Hector Samario, who gave the presentation to the Lake Worth Commission this past Tuesday on energy performance contracting services, responded to my request for definitive/specific information regarding the financing of this $20 to $25 million dollar proposal.

Essentially I asked him if he could explain the financing aspect of his proposal because the Lake Worth City Commission told the public NOTHING.

What I asked--Is there any language in your literature or in any proposed contract to the City of Lake Worth that would explain how these capital costs are to be funded? It seems, or from what I have been told,  that Siemens is taking all of the risk for an undetermined amount of reward (at least 10%) over an undetermined length of an agreement/term.  Surely, if you have investors, the rate of return would be much higher? Does Siemens Corp take all of the risk? I am confused as to how Siemens makes its money here. Will this be done on a tax-exempt municipal lease?  I keep getting told that it won’t cost the City any money??!!

Here is an excerpt from his reply that pertains to my questions:

Regarding your request for information, and as this project is governed by Florida Statute 489.145, your best source of information would come directly from the Florida Statute on Performance Contracting (link provided below).  Florida first enacted this statute in the early 1990s, and it was last updated in 2012. 

http://www.flsenate.gov/laws/statutes/2012/489.145

Now I am more curious than ever.