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April 13, 2023 City Council Regular Meeting
Title
15. Authorize the City Manager to Execute Contracts for Investment Grade Energy Audit for City buildings with NORESCO, LLC and Johnson Controls, Inc in an Amount Not to Exceed $1,510,000. These audits will analyze energy, water, and material use and operational practices at City facilities and identify improvements that can be made to increase efficiency and generate cost savings. (Sustainability)
Strategic Priority
Infrastructure
Description

This is to execute contracts for Investment Grade Energy Audit (IGEA) of the City’s drinking water, wastewater treatment, and stormwater facilities with NORESCO, LLC in the amount not to exceed $1,400,000 and of 34 City office buildings with Johnson Controls, Inc in the amount not to exceed $110,000 for a total amount not to exceed $1,510,000. These audits will analyze energy, water, and material use and operational practices at City facilities and identify improvements that can be made to increase efficiency and generate cost savings. If the City decides to implement the recommendations from the IGEA through a Guaranteed Energy Savings Performance Contract (GESPC), the cost of the audit will fall to zero. A GESPC is a state-approved, budget-neutral tool that allows the City to implement recommendations from the IGEA at no upfront cost and to pay for the capital improvements over time out of energy and other operational savings. While a DBE participation goal cannot be set until the audit is complete and project size and scope are determined, we expect any resulting GESPC to have a goal of no less than 20% overall participation with 10% of the goal being local. This agenda item will support Strategy No. 13 to improve the Efficiency of Water and Wastewater Treatment and #10 to use Energy Savings Performance Contracts to Make City Buildings More Efficient in the 100% Savannah Clean Energy Plan. 

 

Seven (7) proposals were received in response to this RFP. Of those, five (5) proposals were shortlisted and selected for interviews before a selection committee of City staff. Once scoring was completed negotiations were entered into with the highest-scoring proposer for City office buildings and City water facilities. Negotiations on City office buildings failed and negotiations were entered with the second highest-scoring proposer. The proposal was advertised, opened, and reviewed. Delivery: As needed. Terms: Net 30 days.

 

The proposers were:

B.P. NORESCO, LLC (Atlanta, GA)(D) $1,400,000
02. Johnson Controls, Inc (2305 Louisville Road Savannah, GA)(B) $110,000

A pre-proposal conference was conducted and 20 vendors attended. (B) Indicates local, non-DBE Business. (D) Indicates non-local, non-DBE business.

Recommendation

Approval

Contact
Nick Deffley, Director, Sustainability
Financial Impact
Expenditure of funds is contingent on acceptance of recommendations provided by NORESCO, LLC and Johnson Controls, Inc. at the conclusion of the energy audit.
Review Comments
Attachments
Exhibit 1: Purchasing Notes - Investment Grade Energy Audit.pdf
Agenda Plus