Staff Report
PREPARED BY : JIM HARBIN
Facilities & Environmental Programs Manager
Reviewed by: Town Manager, Assistant Town Manager, Town Attorney, Finance Director, and Parks
and Public Works Director
110 E. Main Street Los Gatos, CA 95030 ●A 40 8 -354 -68 32
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 0 6 /1 9 /2018
ITEM NO: 8
D ATE : JUNE 12 , 2018
TO : MAYOR AND TOWN COUNCIL
FROM: LAUREL PREVETTI, TOWN MANAGER
SUBJECT: PROJECT NUMBER 821 -2008 ENERGY EFFICIENCY UPGRADES TOWNWIDE
AUTHORIZE THE TOWN MANAGER TO NEGOTIATE AND EXECUTE A
LETTER OF INTENT AND EXECUTE A N AGREEMENT FOR CONSULTANT
SERVICES WITH SYSERCO ENERGY SOLUTIONS TO P ERFORM AN
INVESTMENT GRADE AUDIT (IGA) FOR TOWN FACILITIES IN AN AMOUNT
NOT TO EXCEED $3 4 ,750
RECOMMENDATION :
A uthorize the Town Manager to negotiate and execute a Letter of Intent (Attachment 1) and
execute a n Agreement for Consultant services (Attachment 2) with Syserco Energy Solutions to
perform an Investment Grade Audit (IGA) for Town facilities in an amount not to exceed
$3 4 ,750 .
BACKGROUND :
The Fiscal Year 2017/1 8 -2021/22 Capital Improvement Program (CIP) budget includes a project
to conduct energy efficiency upgrades at Town facilities. This p ortion of the projec t would
evaluate and provide a plan to update mechanical, lighting, and other related systems to
improve energy efficiency.
PG&E offers a means for accomplishing projects that save energy through a financing
mechanism that allows for the payment of project costs on the utility bill over time , called On
Bill Financing . Individual projects would be recommended based on the ability to balance the
energy savings with the cost of the project within a ten -year payback timeframe.
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SUBJECT: PROJECT NUMBER 821 -2008 ENERGY EFFICIENCY UPGRADES TOWNWIDE
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B CKGROUNDA(cont’d):
Typically, thi s process is handled in several stages. The first stage is a preliminary facility review
to identify projects that have potential to meet the ten -year payback threshold. These projects
are then evaluated through a detailed investment grade audit that con ducts the calculations
necessary to ensure the savings will materialize. Th e audit results in a report that identifies the
projects recommended for construction and the audit is reviewed by a third party that is
approved by PG&E to ensure accuracy .
Altho ugh the potential expenditure associated with this item falls within the approval authority
of the Town Manager, staff is seeking Town Council approval given the potential for innovative
financing and future large capital improvement projects, all of which will also require Council
approval based on the projected value.
DISCUSSION :
In April 201 8 , Public Works staff completed a competitive Request for Proposals (RFP) process,
soliciting proposals from e nergy s ervices c ompanies to provide a comprehensive assessment
and turnkey solutions for potential projects (steps one and two from above). Syserco, was the
only company who proposed and was selected as the most qualified respondent. Syserco has
since completed the prel iminary facility assessment (Attachment 3) at no cost to the Town for
the Civic Center, Police Operations Building, Corporation Yard , Library , Adult Recreation Center ,
and the Youth Recreation Center.
With Council approval, Syserco will proceed with the audit and subsequent recommendations
for projects in consultation with Parks and Public Works staff . P riority w ill be given to
replacement of infrastructure that provides energy savings and meets the Towns needs for
capital maintenance.
At the conclusion of the i nvestment g rade a udit, staff estimates the development of a larger
project or series of projects with a potential construction cost between $700,000 to $900,000
that could be funded through PG&E’sA On Bill Financing program. Th e a udit results and
potential projects would be presented to Council for consideration prior to implementation.
CONCLUSION :
Authorize the Town Manager to negotiate and execute a Letter of Intent (Attachment 1) and
execute an Agreement for Consultant services (Attachment 2) with Syserco Energy Solutions to
perform an Investment Grade Audit (IGA) for Town facilities in an amount not to exceed
$34,750.
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SUBJECT: PROJECT NUMBER 821 -2008 ENERGY EFFICIENCY UPGRADES TOWNWIDE
JUNE 12 , 2018
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COORDINATION :
This report was coordinated with the Finance Department .
FISCAL IMPACT :
Funding for this project is included in the Fiscal Year 2017/18 -2021/22 CIP budget ; however ,
the cost of the audit would be incorporated into the projects costs upon future Council
approval of a construction project. If the Town decides not to move forward with a
co nstruction project, the audit would be paid for by through the CIP funding. If Syserco fails to
identify viable projects, no compensation will be due.
ENVIRONMENTAL ASSESSMENT :
The proposed agreement and the related services are not a project defined un der CEQA, and no
further action is required.
Attachment s :
1. Letter of Intent to Contract and Approval to Proceed with Detailed Engineering and Final
Project Development .
2. Agreement for Consultant Services .
3. Preliminary Facility Assessment .