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HomeMy WebLinkAboutMINUTES - 10101995 - SD.10 TO: BOARD OF SUPERVISORS E SD.ICS Contra Barton J. Gilbert FROM: Costa Director of General Services ='�� .-�. _ DATE: September 19 1995 County , sri�ii` n SUBJECT. Hearing on Proposal to Enter Into Energy Service and Third Party Financing Contracts to Purchase and Install Energy Efficient Lighting Fixtures at County Buildings on Douglas Drive, Martinez SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&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 these locations in Martinez: 10 Douglas Drive, 30 Douglas Drive, 40 Douglas Drive, and 50 Douglas Drive, for the following reasons: 1)the replacement equipment will use less electricity than the existing equipment, and is estimated to save over $40,000 annually in utility costs; and 2) if the equipment is replaced prior to December 31, 1995, the County qualifies for PG&E energy conservation rebates of approximately $37,000. 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. 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. II. FISCAL IMPACT The projected costs for the purchase and installation of the fixtures in the four locations are $169,000. The project will be financed at an interest rate of approximately 7 percent. The payback period for each of these locations is slightly more than three years. PG&E rebates, which are available only through December 31, 1995, are estimated to be approximately $37,000. Annual savings of electrical usage are estimated at $40,000. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON ©��� A 9 SIS APPROVED AS RECOMMENDED _1_� 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: 1= ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. Contact: B.J.Gilbert(313-7100) Ca General Services Department ATTESTED ^- "� A • I �S Administration Purchasing PHIL BATCHELOR,CLERK OF THE BOARD OF Accounting SUPERVISORS AND COUNTY ADMINISTRATOR Auditor-Controller County Administrator M382 (10/88) 8Y ,DEPUTY Page 2 -Hearing on Proposal to Enter Energy Service Contract and Third Party Financing Contract 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 fixtures in the buildings on Douglas Drive 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 31, 1995. The Department is prepared to issue a request for bid and proceed with this project 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. This will be the third lighting retrofit which the Department has done. A total of-twelve buildings has been completed thus far, with an estimated annual PG&E energy savings of$250,000.