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Water & Resource Recovery Center Energy Management ServicesMasterpiece on the Mississippi Dubuque kital All- America City II 111! 2012 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Water & Resource Recovery Center Energy Management Consulting Request for Proposal DATE: May 23, 2013 Five responses were received to a Request for Proposals to provide the required energy management consulting services for the Water and Resource Recovery Center. Project Manager Steve Brown and the RFP Review Committee recommend City Council approval of the selection of 7th Power Sustainable, LLC for a proposed fee of $56,448 to provide the energy management consulting services for the Water & Resource Recovery Center Modification Project. I concur with the recommendation and respectfully request Mayor and City Council approval. brit44 Michael C. Van Milligen MCVM:jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager Teri Goodmann, Assistant City Manager Steve Sampson Brown, Project Manager Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Steve Sampson Brown, Project Manager Dubuque bietti All- AmedcaCiry 111111 2012 SUBJECT: Water & Resource Recovery Center (WRRC) Energy Management Consulting Request for Proposal DATE: May 22, 2013 INTRODUCTION The purpose of this memorandum is to request authorization to negotiate a contract with 7th Power Sustainable, LLC (Dubuque, Iowa) related to assisting WRRC staff in optimizing energy use by the plant's new industrial equipment and for ENERGY STAR commissioning of the administration building. BACKGROUND On March 19, 2013 the City issued a Request for Proposal (RFP) for consulting services related to analyzing energy use by the WRRC. As a heavy industrial use facility, the WRRC is expected to be one of the largest energy using facilities operated by the City. Throughout the design process, ENERGY STAR performance standards were applied as one way to help reduce operating costs for the plant. The Environmental Protection Agency (EPA) has developed a two -step process by which buildings can be certified to perform at a certain efficiency levels. The first step is through the establishment of an energy- efficient building design. The second step is to measure and verify performance of the constructed buildings through individual metering of actual HVAC equipment and analysis of energy bills before the ENERGY STAR label can be earned. As part of the RFP deliverables, the selected consultant will provide several services to the WRRC. The scope of services will be provided over a 12 -month period and will include: • Monitor, measure, and track actual energy consumption of the WRRC building's HVAC systems to determine if energy performance goals /savings are being achieved and maintained. • Recommend and facilitate implementation of energy management practices and procedures related to heavy industrial use equipment at the WRRC. • Document energy savings realized, avoided energy costs, and greenhouse gas emissions related to the various HVAC systems. Page 1 of 3 • Assist with tracking and verify documentation of energy usage so that the project qualifies for the maximum utility rebate incentives from Alliant Energy -IPL and Black Hills Energy. • Assist city staff in completing quarterly progress reports as required by the Jeld Wen -City agreement for the cogeneration microturbine project. • Complete audit of electrical power bills to allocate power used on site by the City's contractor Miron Construction. Electricity used by contractors on site is reimbursable to the City per the City -Miron contract. • In support of a stated goal for the project, for the administration building achieves the ENERGY STAR label in accordance with the program sponsored by the Environmental Protection Agency (EPA). • Educate and train city staff on energy monitoring & correct use of EPA's Portfolio Manager Software to ensure long term energy performance goals are monitored, documented and maintained by the WRRC. The timeframe for this project will be approximately 12 months following the signing of a vendor services agreement/contract. The consultant will be expected to start the contracted scope of work immediately, under the general direction and coordination of the City's Water & Resource Recovery Center and Engineering Department. DISCUSSION A Request for Proposals (RFP) was issued for the required energy management consulting services for the Project. On April 10, 2013 the City received responses from five consultants: 1. 7th Power Sustainable, LLC (Dubuque, IA) ($56,448) 2. GBA (Lenexa, KS) ($64,600) 3. Systems West Engineers (Dubuque, IA) ($68,700) 4. Shive Hattery (Moline, IL) ($65,220) 5. Sebesta Blomberg (Cedar Rapids, IA) ($57.820) The following people served on the RFP review committee: Jonathan Brown (W &RRC Manager), Tim Horsfield (Parking System Supervisor), Rich Russell (Building Services Manager), Corey Firzlaff (Electrical Inspector), and Steve Sampson Brown (Project Manager). The committee reviewed the proposals based on the following criteria: strength of the consultant's understanding of the project objectives; project approach /methodology in completing the scope of services and proven track record in the field of energy management projects. Based on review of the submitted proposals and specifically each consultant's understanding of the goals of the project, it was determined that 7th Power Sustainable, LLC had a solid understanding of the project objectives, provided the best methodology Page 2 of 3 for completing the scope of service, and had an established history of working the greater Dubuque area on energy efficiency and renewable energy projects. RECOMMENDATION It is recommended that the City retain 7th Power Sustainable, LLC to provide energy management consulting services for the Water & Resource Recovery Center Modifications Project. BUDGET IMPACT 7th Power Sustainable proposed fee is $56,448. The work will be funded from the Water Pollution Control Plant Modifications Project Capital Improvement Project (CIP 710- 1837). The City currently has an unspent line item balance of $152,000.00 for energy management consulting as part of this project. After a consultant agreement is negotiated, the remaining unspent balance of for this line item will be returned to the general contingency fund for the project. ACTION TO BE TAKEN Approval is requested to negotiate and enter into an agreement with 7th Power Sustainable to provide energy management consulting services for the Water & Resource Recovery Center Modification Project. cc: Gus Psihoyos, City Engineer Jonathan Brown, Water Pollution Control Plant Manager Jenny Larson, Budget Director F: \PROJECTS \Water Pollution Control Plant Replacement \_RFP \ESTAR \WPCP - EStar Staff Recomendation Memo.doc Page 3 of 3