Item Coversheet

Agenda Item - 4.d.


City of Garden Grove


INTER-DEPARTMENT MEMORANDUM

To:City Manager

From:William E. Murray
Dept.:City Manager 

Dept.: Public Works 
Subject:

Authorize the issuance of a purchase order to Siemens Industry Inc., to perform an investment grade energy audit of City facilities.  (Cost:  $66,000) (Action Item)

Date:10/10/2017

OBJECTIVE

To secure City Council approval to issue a purchase order to Siemens Industry Inc., to perform a citywide investment grade energy audit.

BACKGROUND

The Public Works Facilities Division recently developed specifications for a request for qualifications (RFQ) to secure an energy services company to perform an investment grade energy audit (IGA) of City facilities that will identify conditions and equipment that are wasting energy. The audit will evaluate opportunities to reduce utility and operating costs, produce energy at lower costs and use alternative sources of energy. Additionally, the energy services company will propose a budget neutral, design build, citywide facility modernization project.

 

The goal of the Public Works Department is to make the needed improvements to parks and facilities with zero budget impact. Ideally, the modernization project would consist of a variety of facility improvement measures impacting interior and exterior lighting, sports field lighting, solar paneling, heating, ventilation and air conditioning systems, controls, as well as overall electrical load. 

DISCUSSION

Through the RFQ process, Staff has selected Siemens Industry Inc. as the City’s energy services company. They are to perform a citywide IGA, as well as develop and propose a design build, budget neutral, facilities modernization project. Should the City decide not to move forward with the proposed modernization project, the City will be responsible for the cost of the investment grade audit. However, if the City approves the proposed modernization project, the cost of the IGA will be built into the total project cost. Costs, including financing, shall 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.      

 

               IGA performed by Siemens Industry Inc.          $66,000

FINANCIAL IMPACT

The financial impact is $66,000 to the Building Maintenance operating budget.

RECOMMENDATION

It is recommended that City Council:

 

  • Authorize the Finance Director to issue a purchase order in the amount of $66,000 to Siemens Industry Inc. to perform a citywide investment grade energy audit.  

 

 

By:  Phillip Carter

       Facilities Manager