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Memo Resolution Request for Qualifications for Energey Services CompaniesCITY COUNCIL MEMORANDUM /RESOLUTION City Council Meeting: January 12, 2010 Department: Agenda No. 5 Parks, Recreation and Community Services Subject: Request for Qualifications for Energy Services Companies BACKGROUND On November 3, 2009, the City Council approved a resolution to pursue an Energy Efficiency and Conservation Block Grant from the State of Texas. The City of Schertz has submitted its resolution and letter of intent to the State Energy Conservation Office (SECO). The City of Schertz is entitled to $86,375 from SECO. This funding is available through the American Reinvestment and Recovery Act of 2009. The City of Schertz Purchasing and Asset Management Department advertised a Request for Proposals (RFQ) for Energy Savings Performance Companies (ESPC), that can provide both auditing and the installation of retrofit devises to our existing city buildings, parks and city - owned facilities. The RFQ opened December 30, 2009. We received one Proposal from McKinstry Essention Inc., a national ESPC. Energy Savings Performance Contractors audit, identify and evaluate energy savings opportunities and then recommend a package of improvements, and provide the installation of the improvements that will be paid for through savings once these recommendations are implemented. McKinstry will provide a detailed energy audit, identifying measures the City can take to realize energy savings. After McKinstry completes the audit portion of its contract, it will make recommendations for energy savings for city buildings, facilities and parks. These recommendations will include the installation of distributed energy technologies including heating and cooling system retrofits and upgrades, the installation of new lamps, lights and renewable energy technologies on government buildings and facilities. McKinstry will then monitor its recommendations for continued savings throughout the contract term with the City. These recommendations come with guaranteed savings. If any of McKinstry's recommended retrofits or upgrades do not deliver the savings identified, McKinstry will pay the difference. :McKinstry comes highly recommended from Brandt Engineering, a local Schertz engineering company. I have called several of McKinstry's references included in its proposal and all references were positive with respect to McKinstry's energy performance contracting. FISCAL IMPACT S86,375 reimbursable grant entitlement from SECO. RECOMMENDATION Staff recommends accepting McKinstry's proposal for energy auditing, future state energy grant recommendations and energy efficient programs and project recommendations not to exceed $86,375 and recommends that the City Attorney prepare a contract documenting McKinstry's and the City's obligations for Council's approval. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ: That the above stated staff recommendations are hereby approved and authorized. PASSED AND APPROVED at a regular meeting of the City Council of the City of Schertz, Texas this 12th day of January, 2010, at which meeting a quorum was present, held in accordance with the provisions of Texas Government Code, §551.001 et seq. ATTEST: s Brenda Dennis, City Secretary ATTACHMENT Resolution # 2009RF56 McKinstry RFQ Executive Summary