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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 06 302 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 Yea CI CLOBR Y 06-30I 0 g0gg ffgf"j..nonnag NegotLtiooe v t4 H po e 1 Corplorat �Eoeru Bait aad goer" performance Services 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. 06 303 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