HomeMy WebLinkAbout8.3 Energy Improvmt ProjectG~~y OF DU~~G
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STAFFREPORT CITY CLERK
DUBLIN CITY COUNCIL File # ^~~~]-~~
DATE: December 21, 2010
TO: Honorable Mayor and City Councilmembers
FROM: Joni L. Pattillo, City Manager
SUBJE : Authorizing Consultant Services for Energy Improvement Projects
Prepared By: Roger Bradley, Senior Administrative Analyst
EXECUTIVE SUMMARY:
The City Council will consider authorizing Staff to solicit bids for consultant services to perform
an energy audit on City facilities and make recommendations on cost-effective energy
improvement options that the City should consider implementing. In addition, the selected
consultant will assist the City in considering financing options to pursue any specific
improvements.
FINANCIAL IMPACT:
The City spent $676,649 on energy to conduct municipal operations in Fiscal Year 2009-2010.
It is estimated that an energy improvement program could result in 10-20% savings ($67,000-
$135,000). The cost of auditing the City facilities to determine viable improvements and
establish a replacement plan is estimated at $0.22 per square foot of office space (Dublin has
approximately 165,000 sq ft.), which equates to a budget of $40,000 with a 10°/a contingency
included.
RECOMMENDATION:
Staff recommends that the City Council: 1) authorize Staff to prepare a Request for ~
Qualification (RFQ) for an Energy Service Company to conduct an energy audit on the City's
facilities and produce an Energy Action Plan; 2) authorize Staff to solicit bids for said consultant
services; 3) authorize the City Manager to enter into an agreement for consultant services; and
4) approve a Budget Change for consultant services in the amount of $40,000.
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Submit ed By Reviewed By Revie ed y
Sr. Admini rative Analyst Administrative Services Director Assistant C anager
P 1 f 3 ITEM NO g~~
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DESCRIPTION:
The purpose of this report is to inform the City Council of an energy savings opportunity that
Staff would propose undertaking to reduce the City's annual energy costs. Specifically, the City
of Dublin spent $676,649 on energy expenses in Fiscal Year 2009-2010. For City buildings,
electrical and gas expenses account for approximately $400,000 annually. An additional
$275,000 is spent annually on City-wide energy uses such as streetlights, pumps and irrigation
controls. While the City has implemented a number of energy improvement projects over the
years to reduce costs and, promote sustainability, the City, to this point, has yet to conduct a
comprehensive review of retrofit opportunities, which would increase the energy efficiency of
municipal operations and more fully introduce renewable energy production into City practices.
The principal objectives of such a project would be to:
• Increase the energy efficiency of City buildings and facilities;
• Reduce the City's energy consumption;
• Reduce utility and operating expenses;
• Mitigate the costs of future utility rate increases;
• Reduce the City's peak electricity demand;
• Reduce the City's dependence on grid-based power by developing alternative energy
sources;
• Reduce pollutants and greenhouse gas emissions as a result of the City's consumption
of the energy produced from fossil fuels; and
• Upgrade equipment and improve building operations and maintenance.
By implementing energy improvement projects, the City would not only be able to save money
over the pervious year's expenses, but it would also be able to mitigate the impact of utility cost
increases in the future. For example, from 1970-2006, the historical energy growth for PG&E
commercial rates has averaged 6% per year. Based on this average, the City could expect to
pay more than $460,000 in additional energy costs over the next 10 years. Thus, actions taken
to improve energy usage will make Dublin a more sustainable community both environmentally
and financially now and in the future. --
Energy Action Plan
In order to curtail the high cost of energy and to promote greater sustainability within the City,
Staff is proposing that the City initiate a Request for Qualification (RFQ) process to engage an
Energy Consultant to comprehensively review the City's energy usage to identify financially
viable energy saving improvements and produce an energy-upgr.ade or energy-action plan. If
hired, an Energy Consultant would conduct an energy audit to examine the consumption of
energy associated with the City's municipal operations and provide recommendations for
projects, which incorporate energy conservation measures as well.as renewable energy options.
Specifically, it is anticipated that a consultant's evaluation would cover the following types of
energy efficiency and alternative energy measures:
• Lighting fi~ures and controls;
• Building automation and controls;
• Air handling systems;
• Equipment modifications;
• Heating, cooling, and ventilation (HVAC) replacement and/or upgrades; and
• Alternative energy production including photovoltaic systems and fuel cells.
Page 2 of 3
Additionally, an analysis would be conducted of the City's electrical service accounts to ensure
that each account is enrolled in the most cost-effective rate plan.
The proposed Energy Action Plan would provide the City with a detailed implementation
strategy, which highlights those energy efficiency upgrades and renewable energy production
projects that could be effectively implemented; i.e., it would identify those projects that generate
sufficient savings to justify implementation. .
The development of a plan would allow the City to be better situated to make informed
decisions about, which energy improvement projects should be implemented and when they
should be given priority. After completing the audit and providing the City with the Energy Action
Plan, the consultant could then assist the City with the development of a scope of work to
design a project and an evaluation of funding options. The City Council would then be
presented with a recommended implementation plan.
NOTICING REQUIREMENTS/PUBLIC OUTREACH:
None.
ATTACHMENTS: 1. Budget Change
Page 3 of 3
CITY OF DUBLIN . l 0~ I
BUDGET CHANGE FORM FY 2010 / 2011
CHANGE FORM #
New Appropriations (City Council Approval Required): Budget Transfers:
X From Unappropriated Reserves (`) __ From Budgeted Contingent Reserve (1001.1901.81101)
(General Fund: Innovations 8~ New Opportunities)
From New Revenues
Other
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Within Same Department Activity
__ Between Departments (City Council Approval Required)
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Name: EXPENSE - GENERAL
FUND - Environmental Programs -
Contract Services
GL Account # 1001.5201.64001
$ 40,000
REASON FOR BUDGET CHANGE ENTRY: As presented to the City Council on December 21, 2010,
Staff have proposed to undertake an Energy Audit to develop a prioritized list of improvements that will
generate long term energy savings. The study will also evaluate financing options. This project was not
funded when the Budget was adopted. The General Fund has a reserve designated for Innovations and
New Opportunities, which would be reduced to reflect this appropriation.
Fin Mgr/ASD:
City Man er: `
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Mayor:
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