COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

June 5, 2008

BOARD MEETING DATE:

June 17, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

SETTING A HEARING ON JULY 8, 2008 AT 9:00 A.M. TO CONSIDER AN ENERGY SERVICE CONTRACT WITH ABAG ENERGY WATCH DIRECT INSTALL LIGHTING PROGRAM CONTRACTOR, ABI SERVICES, INC. TO RETROFIT LIGHT FIXTURES IN SEVENTEEN COUNTY OWNED AND LEASED FACILITIES

RECOMMENDATION:

Adopt a resolution:

1.

Setting a public hearing on July 8, 2008 at 9:00 a.m. to consider entering into an energy service contract (Lighting Vendor Agreement) with ABAG Energy Watch Direct Install Lighting Program contractor ABI Services, Inc. to retrofit light fixtures in seventeen various County owned and leased facilities; and

2.

Directing the Director of Public Works to cause notice of said public hearing to be published once in the Independent Newspaper Group, a newspaper of general circulation.

VISION ALIGNMENT:

Commitment: Responsive, effective, and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

Commitment: Ensure basic health and safety for all.

Goal 7: Maintain and enhance the public safety of all residents and visitors.

Your Board’s adoption of the proposed resolution will result in cost savings and a net reduction in carbon dioxide emission associated with providing lighting in seventeen various County own and lease facilities, and will further demonstrate your Board’s continuing commitment to conserve energy and practice environmental stewardship.

BACKGROUND:

Previous Board Action

Authorized:

1.

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 more energy efficient lighting systems.

2.

The County’s participation in the Sustainable Silicon Valley Initiative and commitment to reducing carbon dioxide (CO2) emissions.

3.

The Cool Counties Declaration in October of 2007. The Declaration committed the County to developing a greenhouse gas emissions (GHG) inventory for County operations and an emissions reduction action plan. The County also committed to supporting regional GHG reduction targets, measuring our progress toward those goals and advocating for federal action on climate change.

Lighting retrofit projects are a widely accepted method of reducing energy costs. The County has recently completed lighting retrofit projects at County Office Building I, County Office Building II, and the East Palo Government Center Building. The Energy Watch Direct Install Program confirmed that retrofitting lights at the other seventeen facilities identified for the project would be cost effective and have a payback period of less than twelve months.

DISCUSSION:

Government Code Section 4217.12 provides that notwithstanding any other provision of law, a public agency may enter into an energy service contract on terms that its governing body determines are in the best interests of the public agency. The term “energy service contract” includes "conservation measures," which include maintenance, load management techniques and equipment, or other measures to reduce energy use or provide for a more efficient use of energy. The decision must be made at a regularly scheduled public hearing, public notice of which is given at least two weeks in advance. The agreement will require a finding that the cost for energy under the contract will be less than the anticipated marginal cost of energy that would otherwise have been consumed.

We are recommending that your Board set a date for a public hearing to consider entering into an agreement with ABI Services, Inc. ABI Services, Inc. has been selected through the ABAG Energy Watch Direct Install Lighting Program, under which ABAG provides financial incentives for local entities to implement conservation measures by contracting with pre-selected contractors. Under the terms of the proposed agreement, ABI Services, Inc. will agree to audit, design, and install lamps and ballasts at various County building as follows:

Child Care Center

Weights & Measures

Glenwood Boys Ranch

Fair Oaks Library

Ag Bldg (Heller Street)

Maintenance Services Facility

North County Probation

Elections Registration Building

Grant Corporation Yard

HSA 2500 Middlefield

HSA 264 Harbor

HSA 310 Harbor

HSA 400 Harbor

Vocational Rehab Building

North Courts

Central Courts

Coyote Point Museum

By participating in the Direct Install Lighting Program, the County will maximize the PG&E rebate/incentives by four (4) times the normal amount for lighting retrofit projects. The County is also saving on the installation cost by utilizing the program vendor. In the County’s case, the program vendor, ABI Services, Inc. has been the low bidder for three (3) previous lighting projects, in the process of which we have verified that ABI Services does pays its workers prevailing wage.

Estimated annual energy cost savings are projected to be $101,462. In terms of environmental benefits, the increased efficiency of the proposed lamps and ballasts will offset approximately 172 tons of carbon-dioxide emissions each year.

A resolution has been approved as to form by County Counsel.

FISCAL IMPACT:

The County cost for these projects is estimated to be $445,887. This project is included in the 2007-08 and 2008-09 Capital Projects Budget. Based on the projected energy cost savings, the County will recover it’s investment in 4.4 years.

The project qualifies for approximately $140,549 in energy rebates from
Pacific Gas and Electric Company (PG&E), which will be paid directly to ABI Services, Inc. The County will be responsible for the balance owed to the Contractor after the rebate amount is paid. The Court will reimburse the County for their portion of the projects.

There is a positive impact to the General Fund, as energy savings will continue after the twelve (12) months pay back period based on the current cost of kilowatt-hours.