COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

February 20, 2002

BOARD MEETING DATE:

March 5, 2002

TO:

Honorable Board of Supervisors

FROM:

Neil R. Cullen, Director of Public Works

SUBJECT:

Hearing to Consider an Agreement to Upgrade Building Lighting and Mechanical Systems to Reduce Energy Costs - County Buildings

Recommendation

Adopt a resolution setting a time and date for a public hearing to consider an agreement to upgrade building lighting and mechanical systems, the costs of which can be offset by energy savings.

Previous Board Action

1.

Approved the County's participation in the Environmental Protection Agency's Green Lights Program, a Federal program which commits the participating agencies to replace existing building lighting systems with energy efficient lighting systems.

2.

Approved a project in June 1999, which upgraded lighting in various County buildings, which is being paid for by the energy savings realized by using more energy efficient lighting.

3.

Approved a similar building lighting/mechanical systems project in July of 2000 which upgraded some of the building lighting and mechanical systems of the main County facilities (i.e., Hall of Justice, 455 County Center, etc.). This project is now complete.

4.

In April of 2001, authorized the Director of Public Works to negotiate and execute an agreement with Invensys Building Systems (Invensys) to conduct a detailed analysis of specific building lighting and mechanical systems and to draft a performance based contract agreement.

Key Facts

1.

Some additional components of facility lighting or mechanical systems (heating, ventilation, air conditioning, et. al.) of both the main County buildings and some of our outlying buildings should be replaced as they are either nearing the end of their economic life or it may be cost-effective to replace these systems to take advantage of more modern energy saving components.

2.

Invensys has performed a detailed inspection and analysis of these building systems on the premise that lighting or other mechanical systems can be replaced with the capital costs paid for by energy savings. They have recommended projects totaling $2,067,389, the costs of which can be offset by energy savings over a ten to fifteen year period.

3.

Section 4217.10 et sec. of the Government Code provides that a governmental agency may enter into an agreement to install energy saving systems after considering said agreement during a regularly scheduled public hearing.

4.

We are recommending that your Board set a date for a public hearing to consider entering into an agreement with Invensys, a State of California pre-qualified Energy Service Company, which will provide for the various project upgrades on a turnkey basis. Invensys would supervise the design, procurement, and installation of all the proposed upgrades shown on the attached list.

Discussion

We have just completed a $1.6 Million lighting and mechanical system upgrade project on 12 of the larger County facilities that is estimated to reduce our energy costs by approximately $150,000 annually. We have realized a reduction in energy in these buildings of 1,031,378 kilowatt hours of electricity and 24,965 therms of natural gas in the first four months since the completion of the project as compared to the same four months in 2000.

We have also realized additional energy savings of 35,997 kilowatt hours of electricity and 1,939 therms of natural gas with the Friday closure of the County Office Building at 455 County Center during the same four month period. The combination of the retrofit project and Friday closure equates to a 26% reduction in electrical usage and an 18% reduction in natural gas usage for the same four month period.

An important additional benefit of this completed project has been the reduction of the following amounts of pollutants from the atmosphere by reducing the energy consumption in our buildings:

¬

383 tons of Carbon Dioxide annually (equivalent to planting 253 trees annually)

¬

2,247 pounds of Nitrous Oxide annually

¬

1,347 pounds of Sulfur Dioxide annually

We have evaluated the information recently developed of the various building lighting and mechanical systems in the following listed County facilities and have developed a proposed list of projects which will improve lighting systems that were not included in previous lighting upgrades, replace and improve inefficient mechanical systems, and add facility management control systems to aid the engineering staff in monitoring and controlling building temperatures. Marginally functional systems will be replaced resulting in operational efficiencies and improved control for occupant comfort. The facilities and system evaluated were:

a)

lighting systems at the various Public Works corporation yards, San Carlos Airport, the Health Services Building, Cordilleras Center, the Weights and Measures Building, the Expo Center, Forestry Stations; and

b)

mechanical system upgrades at the University Avenue Building in East Palo Alto, Maguire Detention Facility, Hall of Justice and Records, and some outlying buildings.

The project is also expected to result in the reduction of the following amounts of pollutants from the atmosphere by reducing the energy consumption in these facilities:

¬

443 tons of Carbon Dioxide annually (equivalent to planting 293 trees annually)

¬

2,605 pounds of Nitrous Oxide annually

¬

1,562 pounds of Sulfur Dioxide annually

In addition the project may qualify for utility company rebates based on the reduction in the energy consumption in the facilities, and the project will also qualify some of our facilities for EPA Energy Star recognition.

Vision Alignment

We believe our recommendation is consistent with Goal Number 20, "Government Decisions are Based on Careful Consideration of Future Impact, Rather than Temporary Relief or Immediate Gain," of the Shared Vision Commitment to provide a "Responsive, Effective and Collaborative Government," as the short term costs are offset by long term savings while reducing pollutants into the atmosphere.

Fiscal Impact

The total cost of all the improvements is estimated at $2,067,389 with energy costs expected to be reduced by approximately $250,000 per year based on current utility rates for gas and electricity. There is no impact to the General Fund or any fund by setting the public hearing. An appropriation for the various system upgrades is included in the proposed 2001-02 Capital Projects budget and is proposed to be financed by a combination of General Funds, Proposition 172 Funds, and Courthouse Construction Funds. The savings from these systems can then be used to offset future facilities maintenance cost increases to tenants and/or augment future facilities capital project needs. We will also coordinate any proposed work with the Real Property Division of the County Manager's Office and with the Departments occupying the facilities where upgrades are proposed, to insure that the proposed work is not in conflict with future short term uses of these facilities.

A form of resolution has been approved by County Counsel.