HomeMy WebLinkAbout09/18/2001, B 4 - UTILIZING THE STATE'S ENERGY SERVICE COMPANY PROCUREMENT PROCESS FOR ENERGY ASSESSMENT SERVICES. i
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CITY OF SAN LUIS OBISPO
FROM: John Moss,Utilities Director n ',
Prepared By: Ron Munds,Utilities Conservation Coordinator
SUBJECT: UTILIZING THE STATE'S ENERGY SERVICE COMPANY
PROCUREMENT PROCESS FOR ENERGY ASSESSMENT
SERVICES.
CAO RECOMMENDATION
Authorize the Utilities Director to complete and submit an Energy Service Company (ESCo)
Solutions Ordering Form from the State's Department of General Services identifying the
"Specific ESCo(s) Request" as the preferred option for procuring energy auditing services.
DISCUSSION
At the July 17, 2001 City Council meeting, the Council discussed the City's role in energy
conservation and efficiency. One of the recommendations which was approved by the Council
was to evaluate the feasibility of implementing distributed generation projects on City facilities
with the assistance of a consultant if deemed necessary. After researching the options available
to the City; staff determined that using the State's Department of General Services (DGS)
procurement program for ESCo's to be the least complicated, lowest risk and most cost effective
alternative available.
To assist public agencies in selecting ESCo's, DGS Office of Energy Assessments released a
Request for Qualifications (RFQ) to establish a pool of qualified ESCo's through a Multiple
Award Agreement. The purpose of this process was to enable public agencies to contract with a
qualified ESCo that has been competitively selected by staff familiar with energy technologies
and ESCo issues.
DGS has a four step process the City must follow to utilize the DGS pool of qualified ESCo's.
The process in many ways is very similar to the City's standard Request for Proposal process.
Step 1: ESCo Ordering Form
The City must complete and sign an ESCo Solutions Ordering Form(Attachment 1). DGS offers
three options to public agencies for procuring auditing services. They are:
1. Specific ESCo(s) Service Request (recommendation): The agency selects a specific
ESCo(s) from the list to provide a Preliminary Conservation Assessment for the
identified facility(s).
2. General Service Request: The agency identifies a specific facility(s) to be included in
the audit and all ESCo's will be given the opportunity to submit a Preliminary
Conservation Assessment for the identified facility(s).
—I
Council Agenda Report—Energy Assessment Services
Page 2
3. Specific Services/Technology Request: The agency identifies a specific service or
technology and all ESCo's with this expertise are given the opportunity to submit a
Preliminary Conservation Assessment for the identified facility(s).
After discussing the City's needs with DGS, their staff recommended that the City select a few
qualified ESCo's with expertise in distributed generation technologies rather than soliciting
services from all ESCo's, so not to be overwhelmed with proposals from companies with little or
no experience in that area. The DGS staff provided the following list of companies with
distributed generation experience:
1. Siemens Building Technology, Inc.
2. Noresco
3. Chevron Energy Solutions
4. Kinetics
To confirm the State's recommendation, staff researched all the companies on the DGS list via
their websites. Based on this research, it is staff's opinion that the above listed companies are the
most qualified in distributed generation technologies and should be included in the City's request
for energy assessment services.
Step 2: Preliminary Conservation Assessment
Once DGS receives the ESCo Ordering Form, they distribute it to the companies identified by
the City. Interested ESCo's then contact the City and arrange to complete an energy survey of
the facilities selected by the City in order to develop the Preliminary Conservation Assessment.
The assessment should identify preliminary program costs and financing options and is provided
at no cost to the City. ESCo's can be asked to make a presentation explaining their potential
projects and concepts as outlined in the Preliminary Conservation Assessments. The results of
the Preliminary Conservation Assessments are used to develop a list of all facilities to be audited
in detail. Staff proposes to use a proposal review team with representatives from the Utilities and
Public Works Departments. At this point the City may then select an ESCo or decline the
services proposed by the ESCo's.
Step 3:. Conservation Audit Agreement
If the City selects an ESCo, a more detailed report using information from the Preliminary
Conservation Assessment is prepared. This report should identify more refined program costs,
financing options, completion period, monitoring and verification plans, guaranteed cost
avoidance, etc. At this point the City can add facilities not identified in the ESCo Ordering
Form. Once all the facilities have been identified and the City is satisfied with the terms of the
assessment, a Conservation Audit Agreement is then proposed. Depending on the methodology
used by the ESCo, there could be a cost associated with performing the detailed audit. Many
ESCo's combine steps 2 and 3 and do not charge for the assessment service. If there is a cost
and staff believes there is a benefit from incurring this fee at this point, staff would return to the
Council for authorization. Once Conservation Audit Agreement is negotiated and executed, the
Council Agenda Report—Energy Assessment Services
Page 3
ESCo performs the detailed energy audits of the selected facilities. This audit report is submitted
and revised as needed to create a final report that is acceptable to the City.
Step 4: Conservation Service Agreement.
The results of the detailed Conservation Audit will be the basis for the terms and conditions of a
Conservation Services Agreement which includes final costs, financing, completion period,
monitoring and verification plans and guaranteed cost avoidance. At this point, staff would bring
back to the Council the terms and conditions of the agreement for consideration and approval. If
a Conservation Services Agreement cannot be executed within 90 days from the date of the
acceptance of the final Conservation Audit. Report, the City has the option to discontinue
negotiations with the selected ESCo.
In summary, staff is requesting that the Council authorize the City's participation in the DGS
energy services procurement process. Given the complexity of the of the energy technologies the
City will be exploring for distributed generation projects, staff believes the DGS process is the
least complicated, most flexible, and potentially the most cost effective avenue for the City to
follow. Any projects or programs recommended as a result of this process will be brought back
to the Council for consideration and approval.
CONCURRENCES
The Public Works and Finance Departments concur with recommendations in this report.
FISCAL EUPACT
There is no direct fiscal impact associated with the recommended action. Once the Preliminary
Conservation Assessments are performed and program costs are identified through the previously
described DGS process, staff will return to the Council for further consideration and
authorization to proceed with a selected ESCo.
ALTERNATIVES
Council could direct staff to develop its own Request for Proposals (RFP) and solicit proposals
to other ESCo's which are not on the DGS list. Though this may broaden the spectrum of
companies that may respond, the results may not be significantly different to warrant the time
and money spent to do this. Additionally, existing staff has limited expertise in the field of
distributed generation and could require consulting assistance in developing the RFP. For these
reason, staff does not recommend this alternative.
ATTACHMENTS
Attachment 1- ESCo Solutions Ordering Form
4-3.
Attachment I
ESCo Solutions Ordering Form
1. Service Requested By: 2. Mail and Bill To: 3. Public Agency Billing Code:
4. Agency Master Agreement Order Number:
(This Number must be shown on all invoices.)
I hereby certify upon my personal knowledge that these expenditures are necessary to perform the.
functions stated, that I am authorized to sign on behalf of this agency, and that I authorize these
expenditures. I further agree to a fee of $1,000 to process this Order.
SIGNATURE OF OFFICER: S. Agency User/Project Contact:
Name:
DATE: Telephone:
E-Mail:
In accordance with the terms and conditions set forth in the ESCo Multiple Award Agreement, we
request one of the three option for ESCo services as indicated below:
Option 1 - General Service Request:
Request that all qualified ESCos be notified and requested to provide Preliminary
Conservation Assessments and/or other services covering all technologies.
Option 2 - Specific Service/Technology Request:
Request that all qualified ESCos be notified and requested to provide Preliminary
Conservation Assessments and/or other services in the following specific
services and/or technology(s)
Option 3 - SRecific ESCo Request:
Request that the following specific ESCo(s) be notified and requested to provide Preliminary
Conservation Assessments and/or other services in the following specific technology(s):
Attachment 1
Facilities to be evaluated:
Facility Name and Address Type of Occupancy
1
3
Schedule for Preliminary Conservation Audit:
Date Milestone
IGck off meeting
On-site survey of facilities
Meeting with facilities staff
Submittal of Preliminary Conservation Assessment to ordering Agency
Decision to accept Preliminary Conservation Assessment
Decision to select.ESCo for follow up surveys
Information available about the.Facilities:
.Yes No
Statement of energy goals
Statement of three year capital improvements
Utility usage
Hours of operation
Site access
Site map
Current Oualified ESCo Pool Contractors:
Aircon Energy Chevron Energy Solutions
Co Energy Company Rogers Energy Service
I Electro-Test Inc Sempra Energy
1 Energy Masters International Invensys Building Systems
Honeywell Siemens Building Technologies
Johnson Controls Southland Industries
Kuhn and Kuhn Strategic Resource Solutions
Noresco TRC Environmental Solutions
Onsite.Sycom/American States Water Company Viron Energy Services
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