The URL can be used to link to this page

Home My WebLink AboutMINUTES - 08101999 - SD4 SD TO: BOARD OF SUPERVISORS FRaM: Barton J. Gilbert, Director of General Services a Contra Costa DATE: August 10, 1999 County SUBJECT: Hearing on Proposal to Eater Into Energy Service Contracts to Purchase and Install Energy Efficient Lighting and HVAC Uwades at Summit Centre SPECIFIC REQUESTS OR RECOMMENDA T ION(S)&BACKGROUND AND JUSTIFICATION I. CC3iVIlVIENDA` ION: 1. FIND that it is in the best interest of the County to negotiate energy service contracts, pursuant to California Government Code Section 4217.12, to .replace existing lighting futures, energy management HVAC control system.,premium efficient motors, variable frequency drives, and spring isolators at the newly acquired Summit Centre Building, 2530 Arnold Drive, Martinez. The replacement equipment will use less electricity and gas than the existing equipment, and is estimated to save over $55,000 annually in utility costs. If the equipment is replaced prior to December 31, 1999, the County qualifies for PG&E energy conservation rebates to be determined after pre-fielding with PG&E. 2. FURTHER FIND that funding is available for this project, and savings in utility costs and ongoing building maintenance costs will be lower in subsequent years as a result of these energy service contracts, and tenants' comfort for air conditioning/heating will improve. 3. DIRECT, at the conclusion of the hearing, that the Director of General Services proceed with the energy services contracts to complete the work as soon as possible to take advantage of the energy savings. II, FISCAL IMPACT; The projected costs for the purchase and installation of the fixtures and equipment upgrades are projected to cost approximately $260,000. The average payback period for these projects is less than five years. PG&E rebates, which are available only through December 31, 1999, are to be determined after the pre- field meeting with PG&E. Annual savings of electrical and gas usage plus reduction of maintenance costs are estimated at$60,000. CONTINUED ON ATTACHMENT: -_x--YES SIGNATURE:XY— RECOMMENDAT€ON OF COUNTY ADMINISTRATOR RECOMMENDATION 0: BOARD C0MMr7E W APPROVE —OTHER SIGNATURE(S): ACTION OF BOARD ON August 10 , 1999 APPROVED AS RECOMMENDED XX OTHER This is the time noticed for the hearing regarding the proposed negotiated energy service contracts on the above matter; the public hearing was OPENED; no one desiring to speak, the hearing was CLOSED; and the Board took the following action. APPROVED the staffs recommendations set forth above. VOTE OF SUPERVISORS UNANIMOUS(ABSENT – – ) AYES: NOES: ABSENTS: ABSTAIN: MEDIA CONTACT: Barton;J.Gilbert (925)313-7100 CC: Genesi Services Department I HEREBY CERTIFY THAT THIS IS A TRUE Administration AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON THE MINUTES'OF THE BOARD Purchasing OF SUPERVISORS ON THE DATE SHOWN. Accounting Capital Facilities ATTESTED Aug I s t 10, 1999 PHIL BATCHEL R,CLERK OF THE BOARS?OF SUPERVIS(rS ND OU?NTYADMINISTRATOR BY DEPUTY r F:\Board Orders\Hearing Energy Summit Cantre799.doc Page 1 of 2 M382(10188) . ............ ........... ............... . Vie: Hearing on proposal to Enter Into Energy Service Contracts to purchase and Install Energy Efficient bighting and HVAC Upgrades at Summit Centre III. BACKGROUND: California Government Cade Sections 4217.12 and 4217.13 permit public agencies the authority to enter into energy service contracts and financing contracts without a formal bid process so that "economic benefits may be maximized and financing and other casts associated with the design and construction of projects may be minimized." The replacement of the fixtures and energy upgrades in the building listed meets the conditions of these Code sections and qualifies for PG&E energy conservation rebates if the work can be completed by Decernber 31, 1999. General Services Department continues to pursue available grants, rebates, and other sources of revenue to offset County casts for equipment and fixtures which reduce energy consumption, reduce maintenance and operational costs to customer departments, realize annual utility savings to the County, and meet the requirements of Federal, State, and local laws, ordinances; and mandates. Rlaoard OrdaraWearing Energy Surnmit Centre789.doo Page 2 of 2 M382(10168) „.RNMENT CODE GOVERNMENT CODE § 4217.16 § 4217.12. Energy service contracts and facility ground leases; authorization; findings n this section, except (a) Notwithstanding any other provision of law, a public agency -nay enter into an energy service contract and * * * any necessarily related facility ground 'lease on * * * terms that its governing body �fsion of energy frorn determines are in the best interests of the public agency if the determination is made at a regularly Ima',, hydroelectricity scheduled public hearing, public notice of which is given at least two weeks in advance, and if the ,ed reserves Der mile governing body finds: i Thennal (nits per (l) That the anticipated cost to the public agency for thermal, or electrical energy or conservation .duce the use of fossil services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the public agency of thermal, electrical, or other energy that would have been consumed Section 218.5 of the by the public agency in the absence of those purchases. (2) That the difference, if any, between the fair rental value for the real property subject to the facility :echnicues and equip- ground lease and the agreed rent, is anticipated to be offset by below-market energy purchases or other ergy, benefits provided under the energy service contract. ,vings resulting frorn (b) State agency heads may make these findings w tt out holding a public hearing, (Amended by Stat—Q.1998, c.328(5,1 .1589), § 7,eff.Aug.21, 1998.) ration equipment, or Historical and Statutory Notes icy with any person, 1998 Legislation Budget Act of 1998 relative to state government admims- Section I of Stats-1998,c.328,provides: tration.” )n services to a Dub-1, is "It is the intent of the Legislature in enacting tits act to make the necessary statutory changes to implement the 'Uh any person nge for repayment of § 4217.13. Terms of contracts and leases A facility financing ie any combination of Notwithstanding any other provision of law, a public agency may enter into a facility financing contract )r—servatior. facility in and a facility ground'Lease on terms that its governing body determines are in the best interest of liment, sale purchase, the public agency if the determination is made at a regularly scheduled public hearing, public notice of # the public agency. which is given at least two weeks in advance, and if the governing body -finds that funds for the repayment of the financing or the cost of design, construction and operation o e energy conservation building owned by, n ti f th e e gy o contract or a facility facility, or both, as required by the contract, are projected to be available frorr. revenues resulting from nd on which energy sales of electricity or thermal energy from the facility or from funding that otherwise would have been its of access, for the used for purchase of electrical, thermal, or other energy required by the public agency in the absence of y lines not owned or I the energy conservatior facility, or both. State agency heads may make these findip o. A facil' public hearing. _p__wltb out hold�a ty grouna .ment owned by the (Amended by Stats.1998, c. 328(S.13.1589), § 8,eff.Aug. 21, 1998.) utility and an energy Historical and Statutory Notes partnership, limited 1998 Legislation Budget Act of 1998 relative to state government adminis- re, or other entity or Section I of Stats.1998,a.328,provides; tration." . "It is the intent of the Legislature in enacting this act :unity college district, to make the necessary statutory changes to implement the i political subdivision ;lie corporation in the 4217.15. Basis for findings required as to financing and sales contracts and facility leases i a public agency is Historical and Statutory Notes sr facilities, including 1995 Legislation Code § 12080.6 and Senate Resolution No. 30 of the .y,. or -work, and also Governor's Reorganization Plan No. 2 of 1995, amend- 1996-96 Regular Session,adopted July 26, 1995. necessary for its Pail ing this section, did not take effect. See Government § 4217.16. Agreement or lease proposals; requests; evaluations; basis for contract awards Prior to awarding or entering into an agreement or lease, the public agency may request proposals ,.Lre in enacting Uhis act from qualified persons. After evaluating the proposals, the public agency may award the contract on the 'ranges t to implement the to government adminis- basis of the experience of the contractor, the type of technology employed by the contractor, the cost to the local agency, and any other relevant considerations. The public agency may utilize the pool of gualffied enemy service companies establish 'he Publ; Utilities Code and established to Section 388 of t W the procedures contained in that section in awarding the contract. aka (Amended by Stats.1998,a.328(S.B.1589), § 9, eff.Aug. 21, 1998.) Additions or changes Indicated by underline; deletions by asterisks 3