Title
Owner Representative for Energy Performance Contracts
Description
Request the Water, Wastewater, Infrastructure and Sustainability Subcommittee recommend Council authorization for the City Manager, or his designee, to increase the payment authority with Celtic Energy who is providing third-party consulting and acting as Owner's Representative for Energy Performance Contracts with Job Order Contract (JOC) vendors. The requested authority is for an additional $220,000 (including applicable taxes) increasing the total contract value to $400,000. Further request authorization for the City Treasurer to accept, and for the City Controller to disburse, all funds related to this item.
THIS ITEM IS FOR CONSENT ACTION ONLY.
Report
Summary
The City entered into contracts last year with five Energy Service Companies (ESCOs) under the Job Order Contracting program to install energy efficiency measures on a large number of City facilities, totaling approximately 11.5 million square feet of space. The Owner's Representative acts as a Project Facilitator, working with all ESCOs to achieve the City's energy reduction goal of 20 percent by 2020 following all phasing with complete oversight requirements as mandated by U.S. Department of Energy: Energy Services Performance Contracts must include ESCO review, project development, project implementation and construction, post-completion performance/first year and subsequent Measurement and Verification (M&V) reviews.
Progress to Date
The Owner Representative assisted with development of the initial job order agreements for each of the ESCO vendors and with the walk-through assessments of facilities in Aviation and the Convention Center. As the City enters into the next phase of the project requiring investment grade audits of these facilities and corresponding Job Order Agreements (JOA) for each project, additional funding is needed for the Owner Representative to review the terms of each contract and assist in developing measurement and verification protocols. While the initial funding to set up the project and contracts was paid out of the Public Works budget, Owner Representative costs for specific projects will be included in the business case for each project--where project costs, including the costs of review by the Owner Representative, will be paid by the participating department out of the energy savings. As required under the terms of the JOC, each project will result in a positive cash flow for each year and over the life of the program.
Contract Term
The initial one year contract term began on or about Nov. 1, 2017, and was renewed on Oct. 31, 2018, followed by three one-year options.
Financial Impact
The aggregate contract value including all option years will not exceed $400,000 (including applicable taxes). Funds are available in the Public Works Department's budget based on the initial $180,000 authorization, however, the Investment Grade Audits and the corresponding implementation will be paid out of the energy savings by the department in which upgrades are made.
Concurrence/Previous Council Action
Ordinance S-44026 was approved by City Council on Nov. 1, 2017.
Department
Responsible Department
This item is submitted by Deputy City Manager Karen Peters, the Office of Sustainability, and the Public Works Department.