HomeMy WebLinkAboutMINUTES - 03071995 - H.1 000-9005/C. 1. 1
TO:'' BOARD OF SUPERVISORS
Contra
FROM: Barton J. Gilbert, Director of General Services COSta
County
DATE: March 7, 1995
Hearing on Proposal to Enter Into an Energy Service Contract and Third
SUBJECT:
Party Financing Contract to Purchase and Install Heating, Ventilating,
and Air Conditioning (HVAC) Equipment at Juvenile Hall Facility, 202
Glacier Drive, Martinez
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
I . RECOMMENDATIONS
A. 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 an air conditioning chiller and cooling
tower at Juvenile Hall, 202 Glacier Drive, Martinez, for the
following reasons : 1) the replacement equipment will use less
electricity and less water than the existing equipment, and is
therefore an energy conservation project; 2) the proposed
replacement equipment will use a refrigerant that does not contain
chlorofluorocarbons (CFCs) , the production of which has been banned
under the 1992 Federal Clean Air Act, and is an environmental
conservation measure; and 3) the existing equipment is over 20
years old, with histories of high maintenance and repair costs, and
if the equipment is replaced before December 15, 1995, the County
qualifies for PG&E energy conservation rebates of over $47,500; and
B. 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
C. DIRECT, at the conclusion of the hearing, that the Director of
General Services proceed with the energy services contract and
financing agreement to complete this project.
CONTINUED ON ATTACHMENT: --X-YES SIGNATURE: �V
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S):
ACTION OF BOARD ON - March 7, 1995 APPROVED AS RECOMMENDED X OTHER
The Board held the hearing as noticed, and APPROVED the above
recommendations.
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: AQSJ/�INe:�_ - ) OF SUPERVISORS ON THE DATE SHOWN.
Contact: Barton 1
CC: Office of the County Administrator ATTESTED March 7, 1995
Auditor-Controller Department PHIL BATCHELOR,CLERK OF THE BOARD OF
General Services Department
Purchasing Division SUPERVISORS AND COUNTY ADMINISTRATOR
Accounting
00005B02 . 01B E
M�: 111588) BY ffplV
ffearing on Proposal to Enter Into an 000-9005/C. 1 . 1
Energy Service Contract and Third March 7, 1995
Party Financing Contract to Purchase
and Install Heating, Ventilating, and
Air Conditioning (HVAC) Equipment at
Juvenile Hall, 202 Glacier Drive, Martinez
II . FISCAL IMPACT
A. The estimated cost for the purchase and installation of the
equipment is $242,044 . Proposition 86 funds will provide
$51,291 . There is an additional $140,000 budgeted in this
fiscal year to complete this project. The balance of $50,753
will be financed at an interest rate of approximately 7% .
B. PG&E rebates, which are available only through December 15,
1995, are estimated to be over $47,500 . Annual savings of
electrical usage is estimated at approximately $10,600, and
savings in water usage is projected to be $4,000 . Annual
savings to avoid purchase of refrigerants with CFCs is
estimated to be $5,000 .
C. If this project is not approved and completed by December 15,
1995, the rebates may not be available, and the existing
equipment will continue to malfunction, resulting in high
maintenance and repair costs . The likelihood of the unit
failing is high, and then no air conditioning will result.
Staff will not be able to work in the building if this occurs
in the summer. The cost for CFC refrigerant is expected to
rise dramatically because it will no longer be produced, so
the existing inventories will become the only source of
refrigerants for older heating, ventilating, and air
conditioning (HVAC) equipment. New laws require more
stringent requirements for HVAC equipment, including safety
precautions in equipment rooms, such as alarm and ventilation
systems . Units using CFCs require even greater controls to
prevent CFCs from entering the atmosphere and these controls
are expensive.
III . BACKGROUND
A. 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,
obsolete, malfunctioning HVAC equipment in the Juvenile Hall
meets the conditions of these code sections and qualifies for
PG&E energy conservation rebates if the work is completed by
December 15, 1995 .
B. An engineering study has been completed which specifies the
type and size of equipment needed to provide the HVAC service
required to the buildings and to maximize the energy savings
in electricity and water usage. The Department is prepared to
proceed with the energy services contract and financing
agreement for this project immediately after Board approval .
C. 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 project will do all of these and will qualify
for an energy conservation rebate from PG&E.
00005B02 . 01B
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