AgdaPkt 2008-10-13 - Laserfiche WebLink

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8A < , _ _ 9 � _ - ; a _ ' _ : ��- ' - ��-��e=#��r��rr��-��a�� - ..;� - :�.��:� _�� : October 13, 20�8 SUBJECT Energy Service Contract with RC Construction to Retrofif Lighf Fixtures in 16 City Owned Facilities RECOMMENDATION 1) Conduct a Pubiic Hearing pursuant to Government Code Sections 4217.11 through 4217.17, 2 j By Reso{t�tian, approve an am��dme�►t to the Fiscai Year 20Q8-09 Capi�i Improvement Program ta add an "Energy Lighting Retro�Y' project, appropriating funding from the unbudgeted fund balance of the Capita! Improvement Projects into the Capital Project Funds in the amount of$250,�OQ.40. 3) Authorize the execution of an energy ser�ices contract with ftC Construction to retrofit light fixtures in sixteen City owned facilities for $201,712 and authorize the City Manager to increase the contract amount, if necessary, up to 15% of the amount awarded. BACKGROUND Redwood City has been at the forefronf for saving energy. Ir� 20�0 the City upgraded various facilities to make them more energy efficient. Brian Ponty, Finance Director, used the Cit�'s opportunity cost of capital (increased for project risk) as the yardstick for determining which projects the City should pursue. The "NORESCO" project was recognized as a success four months after completion when PG&E informed the City that 582,112 kilowatt hours (Kwh} had already been saved toward an annua{ goal of 863,800 Kwh. The City joined the Association of Bay Area Govemments (ABA�) �nergy Watch Partnership in 2007. The joint partnership wifh PG&E and Energy Solutions of Oakiand, Califomia was designed to assist cities, counties and special districts to compfete energy efficient projects in public facilities. Govemment Code Sections 4217.�1 through 4217.17 provides that notwithstanding any other provisions of law, a public agency may enter into an energy service contract on terms that ifs goveming body determines are in the best interests af the pubiic agency. The decision must be made at a reguiariy scheduled pubtic hearing, public nofice of which is g'rven at ieast two weeks in advance. Under the prvpased agreement with RC Construction with the contribu�ion by PG&E of $53,640, the cast of energy and the amortizing of the cap'rtal expense will be less than the a�ticipated margir�at cost of energy that would have atherwise been consumed. It is anticipated that the City will fully recover its financial investment in 3.2 years. The contract with RC Construction includes either retrofitting or replacing over 2,900 light flxtures in the sixteen City facilities for an estimated annual energy savings of $46,090. The list of the City facilities being re#rofitted including the total project cost and associated savings are tisted below: