Title
Strategic Energy Management Program Development and Implementation - Assessment Services - WS85450021, WS85230051, WS90450007 and 8425302000 (Ordinance S-44649)
Description
Request to authorize the City Manager, or his designee, to enter into an agreement with Cascade Energy, Inc. to provide Assessment Services to develop and implement a Strategic Energy Management (SEM) program for the Water Services Department's (WSD) water and wastewater treatment plants. Further request the City Controller to disburse all funds related to this item. The fee for services will not exceed $700,000.
Additionally, request authorization for the City Manager, or his designee, to take all action deemed necessary to execute all utilities-related design and construction agreements, licenses, permits, and requests for utility services related to the development, design and construction of the project and to include disbursement of funds. Utility services include, but are not limited to: electrical, water, sewer, natural gas, telecommunication, cable television, railroads and other modes of transportation. This authorization excludes any transaction involving an interest in real property.
Report
Summary
WSD provides water and wastewater services in an area of approximately 540 square miles to a population of approximately 1.5 million people. WSD is the City's largest energy consumer, accounting for 36 percent of the City's electricity and natural gas usage as a whole. The majority of WSD's energy is used for water production, wastewater collection, and wastewater treatment. The Water Production Division includes five water treatment plants and more than 200 remote facilities, the Wastewater Collection Division operates and maintains approximately 30 lift stations, and the Wastewater Treatment Division includes three treatment plants. In 2016, WSD used approximately 254 million kWh of electricity for its operations at a cost of about $22 million.
WSD has implemented an aggressive program to improve energy efficiency and reduce carbon emissions through the use of new technologies, alternative energy resources, and innovative management techniques to achieve the International Organization for Standardization ISO 500001 certification.
Cascade Energy, Inc. will provide phased assessment services that include, but are not limited to, planning, energy review, training, continual improvement, and program management. The Cascade Energy, Inc. team will assist WSD staff in completing the 25 steps outlined in the Department of Energy's 50001 Ready toolbox and will substantially achieve ISO 50001 Ready Status by the end of the second year of the contract.
Procurement Information
Cascade Energy, Inc. was selected for this project using a qualifications-based selection process according to section 34-603 of the Arizona Revised Statutes (A.R.S.). Pursuant to A.R.S. title 34, the City may not release the scoring of proposers until a contract has been awarded. Three firms submitted proposals. The rankings follow:
Cascade Energy, Inc.: Rank 1
Lincus, Inc.: Rank 2
Oz Engineering, LLC: Rank 3
Contract Term
The term for services is expected to be three years after issuance of the Notice to Proceed. Contract work scope identified and incorporated into the contract prior to the end of the contract may be agreed to by the parties and work may extend past the termination of the contract. No additional contract work scope may be executed after the end of the contract term.
Financial Impact
Cascade Energy, Inc.'s total fee for contract services will not exceed $700,000, including all subconsultant and reimbursable costs. The total amount of $700,000 is available in the Water Services Department's Operating and Capital Improvement Program budgets. Contract payments may be made up to the contract limits for all rendered contract services, which may extend past the contract termination.
Department
Responsible Department
This item is submitted by Deputy City Managers Karen Peters and Mario Paniagua, the Water Services Department, and the City Engineer.