AgdaPkt 2000-12-18 - Laserfiche WebLink

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� �, REPORT � To the Honorable Mayor and City Council From the City Manager December 18, 2000 Subject _ Contract for an Energy Conservation Project for Various City Facilities including Traffic Signal Green Light Conversion to LED Lamps. Recommendation Adopt a resolution approving the Contract Agreement with NORESCO of South San Francisco for the purchase and installation of lighting and mechanical upgrades for various facilities in the amount of $680,792. Background � The Bay Area, like other areas in the country, is suffering from high demands placed on the currently available energy. The result is higher prices for energy and higher costs to us, the users. In an effort to reduce current and future operating expenses, while significantly improving the quality of our existing equipment, we learned of a program available through the State of California Department of General Services. The State program defined in the Government Code Section 4217.11 through 4217.17 greatly simplified the process for implementing energy conservation projects. Through the new program, the State provides the City with a list of selected pre-qualified energy professionals known as Energy Services Companies or ESCo's. The process allows the City to easily hire an ESCo for the purpose of evaluating, designing and installing various facility upgrades resulting in effective energy savings. The City of Redwood City was the first city to apply for and receive the approval to proceed with the new State program. A Request for Proposals (RFP) was distributed and a selection committee was formed with representatives from Facility Maintenance, Finance and Engineering staff: The RFP defined a very specific scope of work for three of our existing facilities so that the Committee could compare all proposals equally. The firms interviewed by the Committee included SEMPRA Energy Solutions, Aircon Energy and NORESCO. Following the interview, the Committee contacted various references and ultimately selected NORESCO as the preferred company. As you may recall, NORESCO is the company that successfully completed the conversion of the City's traffic signals from red incandescent lamps to red Light Emitting Diodes (LED). That project has led to significant energy savings. The Public Works Services Department is very satisfied with NORESCO's work and supports the green light conversion portion of this project. As planned, following the selection of a firm, the Committee expanded the scope to include other facilities that would result in further energy savings for the City. NORESCO has completed their final assessment and has presented a project showing substantial savings in the City's annual operating costs. In developing their initial recommendation, NORESCO looked at many aspects of our facilities. One feature, initially desired, was a remotely accessible energy management system including the upgrading some of controls systems in several of our buildings. In the final analysis, staff deleted eight of these initial recommendations because of their high cost and extended pay back period. _ _, _ T .___ . ....._, . _ _