DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City Wide
SUBJECT:
Municipal Facilities Lighting Retrofit Project
SUMMARY:
This ordinance authorizes acceptance of a contract with Facilities Solutions Group to provide the Office of Sustainability with a contractor to perform energy efficient lighting retrofits at up to 16 municipal facilities located throughout the City for a total cost of $321,672.50. This purchase is funded through the Office of Sustainability's Energy Efficiency Fund.
BACKGROUND INFORMATION:
Submitted for City Council consideration and action is the attached tabulation of six bid responses received to provide energy retrofits at up to 16 municipal facilities located throughout the City for a total cost of $321,672.50. The low responsive bid was submitted by Facilities Solutions Group.
Based upon lighting audits performed through the Office of Sustainability's consultant, opportunities for energy efficient lighting upgrades at 16 municipal facilities were identified. Current lighting technologies in place operate inefficiently, thereby causing added financial cost to the City and a negative impact on the environment. All work will be conducted as described in the Scope of Services.
ISSUE:
This contract will provide the Office of Sustainability with a contractor to perform energy efficiency retrofits for up to 16 municipal facilities located throughout the City. The contractor will provide all labor, materials, equipment and supplies to install energy efficient lamps, ballast, fixtures, lighting controls, and other items necessary to improve the efficiency and light quality of existing infrastructure. The retrofit implementation is to be completed for all municipal facilities by September 30, 2014.
Annual savings are estimated at approximately $66,000.00 and 730,000 kilowatt hours (kWh), representing a 4.9 year simple payback before possible utility rebates. The contractor will also ensure the equipment is operating properly and provide photographic documentation of the pre and post-retrofit lighting quality at each location.
This project is proposed within the Municipal Facility Retrofit Program, which has funded energy retrofits in 158 City facilities to date, including the following projects: improving lighting fixture efficiency and installing lighting controls; installing solar window film to repel solar radiation and reduce air conditioning demand; replacing existing heating, ventilation, and air conditioning (HVAC) equipment with high efficiency models; "retro-commissioning" (equipment tuning, calibration, and optimization) facilities with building automation systems; installing pool pump controls to reduce over-circulation and energy waste at public pools; and installing programmable thermostats to conserve energy use by optimizing use of the HVAC equipment. Avoided costs of utilities, as well as CPS Energy rebate monies associated with this project, will be appropriated into the Energy Efficiency Fund.
All warranties are for a minimum period of 12 months. The warranty shall begin on the date the items are installed and accepted by City.
This contract will be awarded in compliance with the Small Business Economic Development Advocacy (SBEDA) Program, which requires contracts be reviewed by a Goal Setting Committee to establish a requirement and/or incentive unique to the particular contract in an effort to maximize the amount of small, minority, and women-owned business participation on the contract. The Goal Setting Committee set a 5% Minority/Women Business Enterprise (M/WBE) subcontracting goal. Facilities Solutions Group (FSG) has committed to 10% S/M/WBE subcontractor participation.
The recommended award is to the lowest responsive bidder, who is also a local business; therefore application of the Local Preference Program was not required.
The Veteran-Owned Small Business Preference Program does not apply to non-professional service contracts, so no preference was applied to this contract.
ALTERNATIVES:
Should this contract not be approved, these municipal facilities may not receive energy retrofits by September 30, 2014. Any delay in an energy retrofit to municipal facilities may affect the daily operations and result in an additional cost to the City in increased electrical and equipment maintenance costs. There will also be a negative impact on the environment as the retrofits are intended to decrease energy resources utilized by the facilities.
FISCAL IMPACT:
The purchase of energy retrofits for up to 16 municipal facilities located throughout the City is for the amount of $321,672.50. Funds are available for this purchase within the FY 2014 Energy Efficiency Fund Adopted Budget.
RECOMMENDATION:
Staff recommends the approval of contract with Facilities Solutions Group for energy retrofits for up to 16 municipal facilities located throughout the City for a total cost of $321,672.50.
This contract is procured on the basis of low bid, and a Contracts Disclosure Form is not required.