Title
Approval of Interagency Agreement with State of Washington Department of Enterprise Services for Energy Project Management
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve the Interagency Agreement with the Department of Enterprise Services (“DES”) and authorize the Mayor to sign the agreement, which allows staff to provide the necessary funding authorization to DES to perform investment grade audits on City facilities.
Report
Issue:
Whether to approve the Interagency Agreement with DES that allows them to manage energy and utility conservation projects and provide energy monitoring services for the City.
Staff Contact:
Debbie Sullivan, Deputy Public Works Director, 360.753.8494
Presenter(s):
None - consent calendar.
Background and Analysis:
The City entered into an Interagency Agreement with Washington State General Administration (now DES) in 2010 to provide management services for energy and utility conservation projects and energy monitoring services on behalf of the City. Public Works completed several projects under that Agreement, including the building energy and water conservation projects, streetlight LED project, Library solar project, and City Hall solar projects. The agreement must be updated to reflect changes in state government, notably the change from General Administration to Department of Enterprise Services. This will allow the City to continue to pursue energy efficiency projects utilizing DES’ project management services.
Water Resources wants to work with DES to utilize the Energy Savings Performance Contracting program to evaluate opportunities for energy savings on drinking water and wastewater pump stations. The pump stations are one of the largest energy consumers in the City accounting for over a half a million dollars per year.
By entering into this agreement, Water Resources can start the process of working with an Energy Savings Conservation consultant to perform an investment grade energy audit on the pump stations. The audit will identify energy saving opportunities. The goal is to complete the audit in time to apply for a Department of Commerce’s Energy Efficiency Grant Program by September 18, 2014. If successful, the grant program could provide up to $500,000 in funding towards Water Resources’ energy efficiency projects.
The audit will cost approximately $150,000 and will be funded through the Drinking Water Utility. Once the audit is complete, a scope of work and a project estimate will be finalized. After review of the energy audit results, Water Resources will determine which, if any, projects to proceed with and will return to Council for authorization to move forward. Staff will return to Council requesting authorization to apply for the Department of Commerce Grant in early September.
Neighborhood/Community Interests (if known):
None known.
Options:
1. Move to approve the Interagency Agreement with DES and authorize the Mayor to sign. Utilizing DES’ services is the most cost-effective and expeditious method to complete energy savings projects. Signing the agreement allows staff to perform the energy audit which positions the City to apply for up to $500,000 in funding from Department of Commerce.
2. Do not approve the Interagency Agreement with DES. City staff does not have the necessary expertise and capacity to perform an investment grade audit and manage energy savings projects. In order to implement future energy projects, the City would need to hire outside expertise, which would take additional staff time and money.
Financial Impact:
Signing the Interagency Agreement does not have a significant financial impact. It does, however, allow DES to start work on the energy audit, which is necessary to apply for the Commerce grant. The audit will cost approximately $150,000 and will be funded through the Drinking Water Utility. Once the Agreement is signed, staff will be able to authorize funding to DES to commence the audit.
Attachment:
DES Interagency Agreement