#2 Award of performance contract for Municipal Building
PUBLIC WORKS DEPARTMENT MEMORANDUM
December 27, 2010
TO: City Council
FROM: Carl J. Weber P.E., Director of Public Works
SUBJECT: COMPREHENSIVE ENERGY SAVINGS PERFORMANCE
AGREEMENT FOR THE CITY OF JANESVILLE MUNICIPAL
BUILDING
Staff Recommendation
Staff recommends that the City Council award a performance contract to Johnson
Controls, Inc. for energy conservation and facility improvement measures for the
City of Janesville Municipal Building, to authorize the City Manager to negotiate
the final terms and measures to be included in the contract and to authorize the
direct purchase of a chiller for the Municipal Building.
City Manager’s Recommendation
The City Manager supports the Public Works department recommendation.
Suggested Motion
I move to award a performance contract to Johnson Controls, Inc. in accordance
with their Proposal and Qualifications for a Comprehensive Energy Savings
Performance Agreement for the City of Janesville Municipal Building dated
12/10/2010 and that the City Manager be authorized to negotiate the final terms
and measures to be included in the contract. Further to authorize staff to direct
purchase the replacement chiller identified in the proposal.
Request
The City Council has previously allocated funding for City building maintenance
and directed staff to prepare a comprehensive building maintenance plan. Staff
had previously reported that the HVAC equipment in the City Municipal Building
needed to be evaluated and repaired or replaced. A performance contract is a
process authorized by the State of Wisconsin Statute 66.0133 which accomplishes
both evaluation and implementation of energy conservation and facility
improvement measures. This proposal has been planned to allow for addressing
the Municipal Building HVAC issues prior to the 2011 summer cooling season.
Background
Solicitation of proposals:
Staff, thru direct solicitation of known energy savings performance contractors
and thru public notice, sought statements of qualification and proposals for a
performance contract for the Municipal Building. Five firms toured the building
and two submitted proposals:
Honeywell International Inc. - Oak Creek, WI
Johnson Controls – Madison, WI
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Ranking
Staff reviewed the proposals evaluating each of the firm’s qualifications,
experience on similar projects, technical quality and range of services, ability to
implement the proposals and financial considerations. Both firms are well
qualified and have significant experience on similar projects for several public
institutions in Wisconsin. To compare the cost and energy savings potential of
the two proposals, staff compared a number of energy conservation measures
side by side. Based on this comparison, staff finds and recommends that the
proposal of Johnson Controls, Inc. is in the best interest of the City of
Janesville.
Proposed Improvements
The proposed improvements include:
Chiller Replacement
o
Lighting Upgrades
o
HVAC Control System Upgrade
o
Installation of Variable Frequency Drives on water pumps and exhaust
o
fans
Retuning of existing thermostat controls
o
Replacement of Coils in Air Handler Unit 1
o
The proposal cost submitted by the two firms for the above improvements,
including a contingency amount, is:
Johnson Controls $350,048
o
Honeywell $379,748
o
Local Contractor Opportunities
The selected performance contractor will need the assistance of
subcontractors for the installation of the recommended improvements. The
Request for Proposals required that such assistance be openly bid to allow for
competition. The RFP stated that utilization of local trades and labor would be
given consideration in the selection process. Both firms have made efforts to
contact local firms and are confident that local contractors will be available for
completion of electrical, demolition, hoisting and other related trade work.
Funding
Funding for this project is available from the following resources:
1. EECBG grant - $90,000 designated for lighting improvements
2. 2008-09 CIP - $100,000 designated for energy audits
3. 2008-09 CIP - $145,000 designated for Municipal Building HVAC
improvements
4. Focus on Energy Grants - $15,000 or more as stated in the proposal
Total $350,000
Costs
The costs for the recommend improvements as indicated in the recommended
proposal total about $350,000. This cost may be reduced by bidding of
subcontracts. Other energy conservation and/or facility improvement measures
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may be identified through more thorough investigation during final contract
negotiation or project implementation. In no event shall costs exceed the
available funds identified above.
Energy Savings
Energy savings, as identified in the proposal, are guaranteed by the
performance contractor. After a full year of implementation of the repairs,
replacements and improvements an energy use audit will be completed. The
audit will compare actual energy costs pre and post implementation (adjusted
for variances in weather). Should the guaranteed energy cost savings not be
realized, the performance contractor will refund the difference to the City.
Purchase of Chiller
Because of the long lead time required for delivery of a chiller, it is
recommended that staff be authorized to directly order and purchase a chiller
prior to the execution of the performance contract. This will allow for timely
installation of the unit and eliminate the sales tax cost to the City.
cc: Eric Levitt, City Manager
Jacob J. Winzenz, Assistant City Manager/Dir. of Administrative Services
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