| | | | | | | | Agenda Item - 3.h.
City of Garden Grove
INTER-DEPARTMENT MEMORANDUM
| To: | Scott C. Stiles
| From: | William E. Murray
| | Dept.: | City Manager
| Dept.: | Public Works
| | Subject: | Approval of an agreement with Siemens Industry, Inc., to perform an investment grade energy audit on water production facilities. (Cost: $70,000) (Action Item) | Date: | 6/11/2019 |
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| | | | | | | | OBJECTIVE
For the City Council to approve an agreement with Siemens Industry Inc., to perform an investment grade energy audit on various water production facilities. |
| | | | | | | | BACKGROUND
In the fall of 2017, the Public Works Facilities Division secured Siemens Industry Inc., through a Request For Qualifications process, to perform an Investment Grade Audit (IGA) on City facilities. The Water Division is piggybacking on the qualification process to use this vendor. The audit will evaluate opportunities to reduce utility and operating costs and include the feasibility for the use of alternative sources of energy. Siemens will propose budget-neutral facility modernization project(s).
The goal for the Water Division is to make needed improvements to facilities, with a zero-budget impact, through Siemens performance contracting. Ideally, a modernization project would consist of a variety of facility improvement measures impacting interior and exterior lighting, solar paneling, heating, ventilation, and air conditioning systems and controls.
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| | | | | | | | DISCUSSION
There is a cost associated with a comprehensive IGA. However, if the Water Division approves any of the projects that may be proposed as a result of the IGA, the cost of the IGA will be built into the total project(s) costs, which will be offset by total energy cost savings over the term of the project. Moreover, Siemens will provide a written guarantee of the projected utility savings and reduced operating costs.
The Water Division staff has selected Siemens to perform an IGA on various water production facilities, as well as develop budget-neutral facility modernization project(s). Should the Water Division decide not to move forward with the proposed modernization project(s), it will be responsible for the cost of the investment grade audit.
IGA performed by Siemens Industry Inc. $70,000 |
| | | | | | | | FINANCIAL IMPACT
The financial impact is $70,000 to the Water Division operating budget and funds are available in the current FY 2018-19 budget. |
| | | | | | | | RECOMMENDATION
It is recommended that the City Council:
- Approve an agreement with Siemens Industry, Inc., in the amount of $70,000, to perform an investment grade energy audit on various water production facilities; and
- Authorize the City Manager to execute the agreement on behalf of the City including any minor modifications as needed.
By: Robert Bermudez, Water Production Supervisor
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