REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Patrick Bannon, Capital Projects Administrator
Subject:
title
Approve and authorize execution of Professional Service Agreements with PacificWest Energy Solutions, Inc. and Alliance Building Solutions, LLC to conduct Investment Grade Audits (IGAs) of City Facilities
body
Statement of Issue:
The purpose of the Investment Grade Audits (IGAs) is to identify energy conservation measures (ECMs) with the highest potential for cost savings and operational improvements within City Facilities.
Financial Impact:
The financial structure for the proposed lGAs is based on a per-square-foot rate, contingent upon the City's decision to implement recommended ECMs:
• PacificWest Energy Solutions, Inc.: $0 per square foot if recommendations are enacted; up to $0.05 per square foot if recommendations are not enacted.
• Alliance Building Solutions, LLC: $0 per square foot for the initial audit.
• Funding Cap: The maximum financial commitment for this phase is capped at $75,000, which will be funded through the City’s existing budget for facility improvements.
Recommended Action:
recommendation
A) Approve and authorize the Mayor and City Clerk to execute the “Professional Services Contract between the City of Huntington Beach and PacificWest Energy Solutions, Inc. for a Comprehensive Investment Grade Audit (IGA) of City Facilities;” and,
B) Approve and authorize the Mayor and City Clerk to execute the “Professional Services Contract between the City of Huntington Beach and Alliance Building Solutions, LLC for a Comprehensive Investment Grade Audit (IGA) of City Facilities.”
end
Alternative Action(s):
Do not approve the recommended action, and direct staff accordingly.
Analysis:
On July 15, 2024 staff released a Request for Proposal for qualified energy services companies (ESCOs) to undertake comprehensive planning and consulting services. This includes conducting technical and economic analyses, also known as investment grade audits, on specified facilities and systems to implement one or more energy performance projects. ESCOs are expected to offer full turn-key services ranging from energy audits and savings analysis to the design and construction of capital improvements. Staff received 3 proposals from Pacific West Energy Solutions, Alliance Building Solutions, and Ameresco, Inc. Based on their proposals, the interviews, and zero-cost options, staff has selected two firms to conduct Investment Grade Audits (IGAs) from PacificWest Energy Solutions, Inc. and Alliance Building Solutions, LLC.
These firms will identify energy conservation measures (ECMs) that will improve efficiency and reduce costs across 1.5 million square feet of city facilities. IGAs provide a detailed analysis of the City’s facilities, pinpointing where energy efficiency upgrades can be made to generate long-term savings and operational benefits. Key benefits include:
• Cost Savings: ECMs can reduce energy costs, freeing up funds for other City needs.
• Operational Efficiency: Facility upgrades identified through IGAs can reduce maintenance and improve system performance.
• Environmental Impact: The City can reduce its carbon footprint, aligning with state and federal sustainability goals.
• Data-Driven Decisions: The lGAs establish an energy baseline, supporting strategic, data- based facility planning.
Engaging Energy Service Companies (ESCOs) like PacificWest and Alliance provides access to specialized expertise and financing options that reduce the City’s risk and financial burden:
• Turnkey Solutions: ESCOs manage all project phases, from audit to implementation, reducing City administrative overhead.
• Performance-Based Financing: ESCOs offer performance-based contracts, where payment is tied to achieved savings, ensuring accountability.
• Technology and Expertise: ESCOs bring the latest technology and efficiency insights, helping the City optimize ECM choices.
By conducting these audits and partnering with ESCOs, the City can pursue significant operational and financial improvements across City facilities, ensuring lasting energy efficiency gain.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 6 - Infrastructure Investment, Strategy C - Conduct an assessment of all City facilities to determine priorities for upgrades and repairs, implementation and financial priority.
For details, visit www.huntingtonbeachca.gov/strategicplan.
Attachment(s):
1. PacificWest Energy Solutions, Inc. Contract
2. Alliance Building Solutions, LLC Contract
3. PowerPoint Presentation