HomeMy WebLinkAbout2006-08-14 06-301 ORDERItem Ro, 06 301
Date: 8-1406
Item/Subject: Order, Authorizing Negotiationswith Honeywell Corporation or Energy Auck and
Energy Performance Services.
Responsible Department: City Manager
Earlier this year, the City issued a Request for Proposals for energy periamance contmOng
services. These services would lmlude energy audidng of various Cary fadlides thatwauld produce
a list of potential energy conservation projects. The selected firm would men implement those
projects approved bythe City with their toed: to be covered through the company guaranteed energy
savings m be realized. Three responses were received, and a sizeable selection panel was
organized including represeritadves of various City departments, the School CepartmeM, Bangor
Hydro, and me Coundl Chair. This committee than interviewed the three proposers.
The Committee recommendetl that the CM select Honeywell as the firm to undertake oris project.
Please seethe attached memo that provides greater detail on the panel, the selection criteria, and
the reasons the panel recommends Honeywell.
This recommendation was presented to the finance Committee at As last meeting. The Committee
votetl to endorse the selection panel's recommendation.
The attactretl artier will authorize negotiations with Honeywell for this project and authorize the
Finance Committee o approve the final Energy Audit and Energy Performance Services Contracts
once they are negotiated.
This has been a prior ty for the Council on me basis of both the rapidly escalating costs of energy
and environmental considerations. I recommend your approval. !
Department Head
Associated Information: Background Memorandum from Ed Barrett
City Manager
"gal Approval:
Solicitor
Introduced far
_1_ Passage
_ First Reading Page _ of _
Refenral
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AssiRIWrOCOWCi1W O'Lxcico Ana,ut 16, 2006
CITY OF BANGOR
(TITLE.) Order, Authorizing Negotiations with Honeywell Corporation for Energy Audit and
Energy Performance Services.
WHEREAS, over recent years, the City has experknced a dramatic Increase In Me cost of
energy which has placed a strain an the CWs operating budge, and
WHEREAS, improved energy elficency provides signficant environmental benefits by reducing
the use of non-renewable resource and the negative environmental impacts
associated with them; and
WHEREAS, energy performance service companies will undertake a comprehensive energy
audit, idemify energy conservation projects and their associated savings, and
guarantee a level of savings suficient to pay for these projects; and
WHEREAS, Me City Council has established a priority to reduce the CKs energy use; and
WHEREAS, toward that end, -the City Issued a Request for Proposals for Energy Performance
Services; and
WHEREAS, a selection panel has reviewed the three oxnpanies that have responded and he
recommended that wnhacts for such services be negotiated with Honeywell, a
recommendation that has been endorsed by the Finance Committee; and
WHEREAS, it is essential to move this project forward In order to obtain the potential
economic and environment! benefits;
NOW, THEREFORE, BE IT ORDERED BY THE CRY COUNCIL OF THE CRY OF BANGOR
THAT
City staff Is hereby authorized to negotiate contacts with Honeywell Corporation for energy
audit and performance services and to execute such contracts subject to final review and
approval by the Finance Committee of the City Council and the Cry Solicitor or his designee.
IN CITY f CIL
August 16. 2006
Motion Mede and Seconded
for p sage
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06 301
August 1, 2006
To: Members of the Prance Committee
R. Edward A. Barrett
Su: Energy Audit and Energy Performance Contract Services
BACKGROUND
As you are aware, Me City's energy costs have increased dramatically In recent years.
In an effort to both control costs and improve our environmental impacts, staff and Me
Council have expressed an interest in undertaking a city-wide energy audit Mat would
identify projects that will reduce Me City's energy use, particularly in regard to electricity
and heating fuel used in City buildings/facilities.
Toward that end, Me City Issued a Request for Proposals in May of this year seeking
Energy Performance Contracting Services. Under such an approach, a company would
be selected to pertorm an energy audit. This audit would result in a list of potential
energy conservation projects Mat could be undertaken along with information on the
estimated cost of the project, the amount of energy to be saved, and the pay bark
leanest needed M recover the City's investment through Me savings that are generated.
The company and City would Men enter into a Performance Contract under which Me
company would Implement the projects selected by Me CM and guarantee the annual
energy savings necessary to (at least) cover Meir coal,
The City received three responses to the RFV. These responses were from Ameresco,
Honeywell, and Slemens.
A selection panel composed of Council Chair Cantwell, myself, David Keep of Bangor
Hydro, Alan Kachis of the School Department, Wendy Warren, our Environmental
Coordinator, Terry Caruso representing the Airport, Brad Moore of the Treatment Plant,
Stan Moses of Community Development, and Phil Drew of Assessing reviewed Me
responses, checked references, and met with each of Me proposers. These
presentations were held on July 2r.
SELECTION CRITERIA
The Request for Proposals set forth Me selection criteria used by the panel. These
included Me fallowing:
❑ Qualifications and Capability
Sin, stabil'M, financial strength, personnel qualifications, ability W meet
schedule, quality of partners
❑ Experience and Expertise
History of similar work Including extent of savings, qualifications of personnel to
be assigned!
06 301
❑ Technical Approach
The approach prop out! for the various project phases and overall quality of the
submitted proposal
❑ Perfandial Contracdal Approach
Approach proposed, ability to deal with carhstruction schedules and issues,
services offered, acceptance of City's proposed! contracts
❑ Site Specific Approach
Scope and schedule of project, experience with similar organizations In New
England, project management approill ability to deal with issues
specific to the City
❑ Cast and Pricing
Cost of audk markups, other costs, ease of project cost verification, greatest long
term savings at lowest cost
SELECRON PANEL RECOMMENDATION
After reviewing the responses to the RFP, checking references, and meeting with the
three proposers, the selection panel concluded! that all three limes were tapable of
undertaMng this project and that the City was reviewing three quality companies. The
panel then focused on selecting a company that would best meet the CSty's needs and
capabilities. After considerable disasssion, the panel recommence that Honeywell be
selectetl to undertake this project. In ranking the three companies, the majority of the
panel members ranked Honeywell first. Those that did not, ranked Honeywell second.
The major reasons for recommending Honeywell include:
❑ Be status as a major publicly owned firm whin a stung presence in Maine and a
local service office in Brewer;
❑ The availability of Its Airport Systems and Waste Water Solutions groups. The
Airport and Wastewater Treatment plant are the CWs two largest energy
consumers;
❑ Its strong history, in undertaking energy performance contracts;
❑ The emphasis of the co nparry on the energy audit portion of the contact as a
crucial element in overall success, including their recommendation that the audit
Period include some winter heading months to provide a complete picture of facility
energy demands;
❑ Its ability to directly provide project engineering and in-house installation on
heating, ventilation, and air conditioning upgrades, thus reducing the number of
subcenbactas
Involved! and simplifying the Cit(s project management
respor�bilities; (NOTE: While the company is a manufacturer of certain equipment
that may be used in the project, Honeywell indicated Mat it will purchase o r
vendors' equipment if appropriate/desired.)
❑ In disussing potential opportunities for savings, Honeywell offered a balanced mix
of proven projects and Innovative alternatives.
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O Strong experience In New England.
In act idan, the City has had direct experience worlung with Honeywell. The company
has provided services to Bangor IMematkonal Alrport for many years, and the AMM
has been very satisfied with Its per ormance.
COMMITTEE/Cd1NC AMON
At this point, we would recommend that the Finance Committee authorize staff to
undertake negotiators with Honeywell for an energy audit and subsequent energy
performance contract. I would note that since these contracts have the potential to
involve sigrdficant expenditures, It Is appropriate that the full Council also act on this
recommendation. 1 plan to prepare an order authorizing these negotiations and
authorizing the Finance Committee to grant final approval of any agreement(s) with
Honeywell. I would note ti MIs project has the potenti once fully implemented, to
have a total cost in the range of several million dollars.
CONCUISION
Should you have any questions regarding this process and recommendation, please feel
free to contact me.
Edward A. Barrett