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STAFF REPORT
AGENDA ITEM: Resolution Approving a One (1) Year Professional Services Agreement with Noresco LLC and Authorizing the City Manager to Execute Agreement.
MEETING DATE: May 1,2018
PREPARED BY: Odi Ortiz, Assistant City Manager/Finance Director
REVIEWED BY: Jose Antonio Ramirez, City Manager
RECOMMENDATION:
Adopt Resolution 2018- , authorizing the City Manager to execute a one (1) year professional
services agreement with Noresco LLC to provide owner’s representation assistance services for an Energy/Water Resources Audit and Implementation of Energy and Water Resources Efficiency hnprovements Projects.
BACKGROUND:
The City of Livingston has been active in identifying, evaluating and implementing cost savings measures in recent years. These cost saving measures include minor energy audits and projects to reduce operational costs and improve efficiencies. Energy audits and minor improvements have been completed in several City-owned facilities like city hall, police building, council chambers, public works building, water well sites and public street lighting fixtures. Facility and public street lighting fixtures along with several water well equipment units have been retrofitted with energy efficient units. Management feels there’s other alternatives to consider to further improve energy related cost efficiencies.
For several years, the City has been considering solar projects at certain City facilities and in recent years, the interest in water use measures has become more important due to the State’s water conservation mandate and to improve Livingston’s water use efficiencies. Protecting the City’s water resources is one of Livingston’s priorities.
On December 18, 2017, Livingston distributed a Request for Proposals (RFP) for an Energy/Water Resources Audit and Implementation of Energy and Water Resources Efficiency Improvement Projects. This RFP called for qualified firms to perform an audit of all City facilities to identify and then to ultimately implement a full range of energy services, energy generation and water-related improvements and related programs.
In response to the RFP, the City received proposals from the following firms: Climatec Energy Services, Trane, Valley Solar, and Engie Services U.S., Inc.
At the regular City Council meeting of April 17, 2018, the City Council considered the attached agreement with NOR for professional services. The City Council continued the item in order to have further time to consider the services provided under the attached agreement.
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Due to the unique skills and experience needed and the current gaps in management positions, additional services are needed in evaluating the proposals to the RFP. Noresco LLC a well experienced firm in the areas of interest, has submitted a proposal which would include the following tasks:
1.) Review, Interview and Select (recommend) a Vendor: (see proposal for specific functions). 2.) Energy and Water Audit functions(phase D: A) Attend kick-off, progress and close-out
meetings/presentations; B) Review recommended measures, provide assessment of costs, savings, and stipulate financial returns for energy conservation measures developed by selected vendor; C) Assist City of Livingston with selection of Energy Conservation Measures for implementation; D) Review and discuss measurement and verification options for each Energy Conservation Measure; E) Assist with technicality of the energy service agreement.
3.) Project Development, Design and Financial Solutions (Phase ID: A) Attend interim design update meetings; B) Review final design packages; C) Review bid processes used by the ESCO.
The City has no current interest in Phase III and the M & V Phase of the proposal and they are excluded from this contract engagement.
Per Livingston’s purchasing policies, professional contract services are exempt from bidding procedures.
DISCUSSION:
Approval of a one (1) year professional services agreement with Noresco LLC to provide owner’s representation assistance services for an Energy/Water Resources Audit and Implementation of Energy and Water Resources Efficiency Improvements Projects.
FISCAL IMPACT:
Annual expenditure limit of $44,000 budgeted and be funded by the general fund, water, and several other special revenue funds. A possible allocation of service cost would be 30-50% general fund, 30-50% water fund, 5-20% sewer and other special revenue funds (CFDs). Actual cost allocation of services will vary on facilities included on assessment.
ATTACHMENTS:
1. Resolution 2018-
2. Professional Services Agreement with Noresco LLC (Exhibit A)
3. Noresco LLC Service Proposal (Exhibit B)
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RESOLUTION 2018-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE A ONE (1) YEAR PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LIVINGSTON AND NORESCO LLC
WHEREAS, the City of Livingston (“City”) has been proactive in evaluating operational costs and evaluating alternatives to save cost and improve efficiencies throughout the City; and
WHEREAS, the City in recent years has completed energy efficiency audits, and a series of energy efficient projects on City owned facilities, including street lighting :fixtures; and
WHEREAS, the City has identified water use as an area to improve energy efficiency and cost savings; and
WHEREAS, the City distributed a Request for Proposals for an Energy/Water Resources Audit and Implementation of Energy and Water Resources Efficiency Improvement Projects on December 18, 2017, (“RFP”); and
WHEREAS, the City received four proposals in response to the RFP from: Climatec Energy Services; Trane; Valley Solar; and Engie Services U.S., Inc.; and
WHEREAS, due to the complex nature of the RFP and current staffing vacancies, the City requires professional assistance in reviewing, evaluating, and selecting a contractor, as well as prioritizing proposed projects; and
WHEREAS, the City contacted Noresco LLC for a proposal to provide professional support services; and
WHEREAS, Noresco LLC submitted a professional service proposal for Owner’s Representation Assistance regarding Energy/Water Resources Audit and Implementation of Energy and Water Resources Efficiency Improvement Projects (“Proposal”); and
WHEREAS, City management recommends approving professional support for RFP review, interviews, vendor selection, and Phase 1 and 2, of the Proposal; and
WHEREAS, City management recommends excluding Proposal Phases 3 and M & V from the final professional services agreement with Noresco LLC; and
WHEREAS, the total cost of proposed accepted professional services is $44,000; and WHEREAS, per the City’s purchasing policies, professional support service agreements are exempt from public bidding procedures; and
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WHEREAS, the City wishes to approve a one (1) year professional services agreement with Noresco LLC.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Livingston hereby approves a one (1) year professional services agreement with Noresco LLC to provide Owner’s Representation Assistance regarding the City’s Request for Proposals (RFP) for Energy/Water Resources Audit and Implementation of Energy and Water Resources Efficiency Improvement Projects and authorizes the City Manager to execute agreement in a form approved by legal counsel.
Passed and adopted this 1st day of May, 2018, by the following vote: AYES:
NOES:
ABSENT:
ABSTAIN:
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Jim Soria, Mayor
of the City of Livingston
ATTEST:
I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a regular meeting of the City Council of the City of Livingston this 1st day of May, 2018.
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Antonio Silva, City Clerk of the City of Livingston
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