HomeMy WebLinkAboutMINUTES - 11081994 - H.2 TO: BOARD OF SUPERVISORS
Contra
FROM: Barton J. Gilbert ,
Director of General Services �` <
Costa
.�. 1; *
DATE: October 25, 1994 �fCounty
SUBJECT: Hearing on Proposal to Enter Into Energy Service and Third Party
Financing Contracts to Purchase and Install Energy Efficient
Lighting Fixtures at Various County Buildings .
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)d BACKGROUND AND JUSTIFICATION
I . RECOMMENDATIONS
1 . FIND that it is in the best interest of the County to negotiate
an energy service contract, pursuant to California Government
Code Section 4717 . 12, to replace existing lighting fixtures at
the Richmond Administration Building, 100 37th Street, Richmond;
Central Library, 1750 Oak Park Boulevard, Pleasant Hill; and
Casey Library, 2661 Oak Grove Road, Walnut Creek, for the
following reasons : 1) the replacement equipment will use less
electricity than the existing equipment, and is estimated to
save over $46, 000 annually in utility costs; 2) the existing
fixtures in all three buildings are old, with histories of high
maintenance and repair costs; and 3) if the equipment is
replaced prior to December 15, 1994, the County qualifies for
PG&E energy conservation rebates of over $38, 000 .
2 . FURTHER FIND that third party funding is available for this
project, and savings in utility costs and ongoing building
maintenance costs will be applied toward the repayment of funds,
and that the Friends of the Casey Library will pay the initial
costs for the lighting retrofit at the Casey Library, to be
reimbursed from energy savings .
3 . DIRECT, at the conclusion of the hearing, that the Director of
General Services proceed with the energy services contract and
financing agreement to complete these projects .
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON RTS
Z' Gt APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
CC -
Contact: B. J. Gilbert ( 313-7100) ATTESTED NOV 8 J9
General Services Department PHIL BATCHELOR,CLERK OF THE BOARD OF
Administration SUPERVISORS AND COUNTY ADMINISTRATOR
Purchasing
Accounting
:M382 budAtor-Controller BYLAAJa;&z ,DEPUTY
County Administrator
Page 2 - Hearing on Proposal to Enter Energy Service Contract and Third
Party Financing Contract
III . FISCAL IMPACT
The projected costs for the purchase and installation of the
fixtures in the three locations are $194 ,000 . Casey Library
costs are estimated to be $31,700, and will be financed by the
Friends of the Library. The balance of the projects will be
financed at an interest rate of approximately 7 percent.
PG&E rebates, which are available only through December 15,
1994 , are estimated to be over $38, 000 . Annual savings of
electrical usage are estimated at approximately $46 , 000 .
If this project is not approved and completed by December 15,
1994, the rebates will not be available, and the existing
equipment will continue to malfunction, resulting in high
maintenance and repair costs . The payback period for each of
these locations is slightly more than three years .
III . BACKGROUND
California Government Code 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 costs associated with the design and construction of
projects may be minimized" . The replacement of the old fixtures
in the Richmond Administration Building and the Central Library
and the Casey Library meets the conditions of these Code
sections and qualifies for PG&E energy conservation rebates if
the work can be bid and completed by December 15, 1994 . The
Department is prepared to issue a request for bid and proceed
with these projects as soon as possible after Board approval .
General Services continues to pursue available grants, rebates,
and other sources of revenue to offset County costs 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 . These three projects will do all of these things and
will qualify for an energy conservation rebate from PG&E.