Title
Energy Savings Performance Contracting Services (Ordinance S-51369) - Citywide
Description
Request to authorize the City Manager, or his designee, to enter into separate agreements with five Energy Services Companies listed below to provide Energy Savings Performance Contracting Services that include Investment Grade Audits and implementation of building improvements. Further request to authorize execution of amendments to the agreements as necessary within the Council-approved expenditure authority as provided below, and for the City Controller to disburse all funds related to this item. The total fee for all services will not exceed $150 Million.
Additionally, request to authorize the City Manager, or his designee, to take all action as may be necessary or appropriate and to execute all design and construction agreements, licenses, permits, and requests for utility services related to the development, design and construction of the project. Such utility services include, but are not limited to: electrical, water, sewer, natural gas, telecommunication, cable television, railroads and other modes of transportation. Further request the City Council to grant an exception to Phoenix City Code 42-20 to authorize inclusion in the documents pertaining to this transaction of indemnification and assumption of liability provisions that otherwise should be prohibited by Phoenix City Code 42-18. This authorization excludes any transaction involving an interest in real property.
Report
Summary
The purpose of this project is to conduct Investment Grade Audits of City facilities, and implement building improvements to reduce energy and related costs in facilities such that annual cost savings are applied to annual payments for improvements.
The companies’ services include, but are not limited to: performing Investment Grade Audits (IGA), Construction, Implementation and Commissioning, and Post-Construction Guarantee/Monitoring. The IGA will identify and evaluate cost-saving measures and define the proposed project scope, cost, savings, and cash-flow over the proposed term. The Energy Savings Performance Contract will establish the project scope and costs and provide for construction and follow-up services to be provided during the term. After construction, the Energy Service Companies will offer a variety of services to ensure savings are met. This includes, but is not limited to, a savings guarantee based on International Performance Measurement & Verification Protocol, staff training, follow-up monitoring, and contract maintenance services.
Procurement Information
The selections were made using a qualifications-based selection process set forth in Section 34-105 of the Arizona Revised Statutes (A.R.S.). In accordance with A.R.S. Section 34-105 and 34-604(H), the City may not publicly release information on proposals received or the scoring results until an agreement is awarded. Six firms submitted proposals and are listed below.
Selected Firms
Rank 1: Ameresco, Inc.
Rank 2: Veregy
Rank 3: McKinstry
Rank 4: Schneider Electric
Rank 5: Johnson Controls, Inc.
Additional Proposers
Rank 6: CEG Solutions, LLC
Contract Term
The term of each agreement is five years from the issuance of the Notice to Proceed. Work scope identified and incorporated into the agreement prior to the end of the term may be agreed to by the parties, and work may extend past the termination of the agreement. No additional changes may be executed after the end of the term.
Financial Impact
The agreement value for each of the Energy Service Companies will not exceed $30 Million. The total fee for all services will not exceed $150 Million, including all subconsultant, subcontractor, and reimbursable costs.
Funding is available in the Citywide departments' Capital Improvement Program or Operating budget. The Budget and Research Department will separately review and approve funding availability prior to execution of any task orders or amendments. Payments may be made up to agreement limits for all rendered agreement services, which may extend past the agreement termination.
Department
Responsible Department
This item is submitted by Deputy City Managers Mario Paniagua and Inger Erickson, the Office of Sustainability, and the City Engineer.