TOWN OF SOUTH KINGSTOWN PLANNING DEPARTMENT MEMORANDUM

Transcription

1 TOWN OF SOUTH KINGSTOWN PLANNING DEPARTMENT MEMORANDUM TO: Stephen A. Alfred, Town Manager Kristen Stringfellow, Superintendent of Schools FROM: Vincent Murray, Director of Planning DATE: January 19, 2011 RE: ESCO (Energy Service Company) RFP Review and Recommendation This memo is forwarded to advise of the review status of the RFP review preparatory to the engagement of an ESCO to assist the Town in reducing energy costs for our municipal and school facilities. We received ten (10) responses to our RFP solicitation, a list of the submitting entities is appended to this memorandum (the responses were due on October 8, 2010). The submittals were distributed internally to Town staff and School Department personnel for initial review and evaluation. This was done with an eye toward reducing the field to the three companies that we judge to best suit our interests and the intent of the RFP. On Monday, November 29 th we convened a meeting to review the submittals and discuss the relative merits of each. This meeting was attended by myself, Financial Controller Frank Xavier and School Department Energy Administrator David Carey. Prior to the meeting Mr. Carey consulted with John Richotte School Department Business Manager and Rory Marty School Department Facilities Manager. Based on our review and discussion on the 29 th it was our consensus to narrow the field to the following respondents. Schneider Electric, 300 Brickstone Square, Andover, MA (978) (Contact: Jon Trombley) Noresco, 1 Research Drive, Westborough, MA, (508) (Contact: John Kauppinen) Johnson Controls, 3 Salem Street, Lynnfield, MA (681) (Contact: Kathleen Stanley) Interviews were conducted with representatives from the above on Wednesday, January 5, The interview committee was comprised of myself, Frank Xavier and Ray Nickerson for municipal facilities with David Carey and Rory Marty representing the School Department. Based on these detailed interviews it was the overall consensus to rank the short-listed respondents as follows: 1. Schneider Electric Parent firm of APC in West Kingston, currently performing Investment Grade Audits (IGA, this being first stage of an ESCO agreement) for the Town of East Greenwich (Town and Schools). They presented a very enthusiastic team at the interview, the company is seeking to build its business in RI and the interview team felt that they would tend to over-perform as they seek to establish a beachhead in RI. Schneider would establish a local office (likely at APC) for the project. The review team particularly liked the software dashboard used by Schneider to evaluate the overall feasibility of different ECM s (Energy Conservation Measures). The projected cost of IGA is $37,800. Under a typical ESCO contract arrangement this would be due and payable only

2 if the Town/Schools, after the audit is completed, opt to not engage in a formalized performance contract with the energy service company. 2. Noresco The Company has done extensive work at URI and with the State of RI (Pastore Center), less so in terms of RI community level experience. They have been recently chosen for the Washington County Regional Planning Committee (WCRPC) ESCO project (9 towns and school departments). The projected cost of the IGA is $59,367. Overall, Noresco was viewed as a professional and competent firm. We did note that staffing and workload may present challenges for our project. 3. Johnson Controls The Company is one of the largest ESCO s in the world (21% market share) and has experience in work in RI (Woonsocket and North Smithfield). The firm has seven (7) projects pending in RI. The projected cost of IGA is $42,650. Johnson controls was viewed as a generally competent firm, though we noted that some project staff have been recent hires to the firm. The interviewing team felt that the staffing and workload of the company may present challenges for our project. It is requested that the Town Council authorize the Town s administration, in cooperation with the South Kingstown School Department, to notify Schneider of our intent to contract with them as the Town s ESCO contractor and develop a contractual arrangement for the performance of the IGA. It is our intent to consult with our solicitor and others as necessary to ensure that the contract reflects and protects the Town s interests in this process. The IGA is the first step in the ESCO contractual process, it generally involves the following: Detailed review of existing facilities/buildings and all energy related systems and building features Detailed review of cost history for facilities in terms of energy usage by category (HVAC, electric, fuel usage by type, etc.) Compilation of a menu of ECM s (Energy Conservation Measures) for each building or facility Financial analysis of the effect on annual cash flow (projected savings over the life of each improvement) by the ECM s Development of a guaranteed energy services program based on the installation and operation of the various ECM s Review of financing options to effectuate the program, to include utility company rebate programs, Federal assistance programs and State reimbursement programs (from Rhode Island Department of Education). Here it is noted that the Town would have a number of options to finance the energy savings program, among these are the following: self financing through existing energy budgets, bonding, use of ARRA Grant monies under the Energy Efficiency and Conservation Block Grant (EECBG) program 1, use of the Capital Improvement Program, utility grants and other State or Federal assistance programs. Development of a program to provide performance assurance support services (measurement and verification concerning projected energy savings) Project pricing for installation of each ECM by the Energy Service Company 1 The Town is in receipt of two grants under this program, as follows: Activity 1: Energy Performance Contracting $18,960 to assist with the development and management of the ESCO contracting process, and Activity 2: Base Grant Allocations, $273,067, this is a general pool of funds to be used in support of municipal energy conservation improvement efforts.

3 After the IGA is developed and accepted by the Town, we would proceed with the second general process stage involving negotiations with Schneider Electric to develop a performance contract that would implement the ECM program identified in the audit. This step formalizes and schedules the capital program for the energy improvements, provides for measurement and verification of the savings projected as well as staff training for operation and maintenance of improvements. This second process step will also be subject to Town Council approval at a later date. As noted above, the only circumstance where the Town would be obligated to pay for the IGA is if no agreement on the implementation can be arrived at. It is felt that this program has the potential to provide significant benefits to the Town and School Department with regard to savings on utility costs, reduction of the municipal carbon footprint, installation of upgraded equipment with no capital costs to the Town and access to utility and government based incentive programs and grants. The program will also underscore the Town s long term commitment to sustainability and careful stewardship of finances. In this regard and to formally initiate this process the following resolution is offered for consideration. Resolved: The Town Council hereby authorizes the Town Manager, in cooperation with the School Department s administration, to negotiate a contract with Schneider Electric Buildings Americas, Inc. of 300 Brickstone Square, Andover, MA for the performance of an IGA (Investment Grade Audit) of Town and School Facilities with regard to energy conservation and savings. Please advise as to your respective thoughts regarding this memo and recommendation concerning an ESCO arrangement with Schneider Electric. If you have questions or wish to discuss this in more detail please so advise. W/attachment cc: Mr. Richotte, Mr. Marty, Mr. Carey, Mr. Xavier, Mr. Nickerson

4 Town of South Kingstown 2010 RFP Energy Management Services (due 10/8/10) Requested RFP Contact Responded Schneider Electric 300 Brickstone Square Andover, MA x557 Jon Trombley Constellation Energy Boot Mills South 100 Foot of Johns Street Lowell, MA Con Ed Solutions 2 Burlington Woods Burlington, MA AMERESCO 111 Speen Street, Suite 410 Framingham, MA Siemens Industry, Inc. Building Technologies Division 40 Sharpe Drive, Unit 4 Cranston, RI Source One, Inc. 100 Pearl Street 14 th floor Hartford, CT Honeywell Building Solutions 2000 Plainfield Pike Cranston, RI ENE Systems, Inc Pawtucket Avenue East Providence, RI Johnson Controls 39 Salem Street Lynnfield, MA NORESCO 1 Research Drive Suite 400C Westborough, MA Marc Aronson marc.aronson@constellation.com Ken Nathanson nathansonk@conedsolutions.com Kleo Taliadouros ktaliadouros@amersco.com Jerry Drummond jerry.drummond@siemens.com Jim Koontz jkoontz@s1inc.com Doreen Hamilton doreen.hamilton@honeywell.com Michael Brickley mbrickley@enesystems.com Kathleen Stanley kathleen.stanley@jci.com John Kauppinen jkauppinen@noresco.com

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