TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 23, 2015
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Issue a purchase order and enter into an agreement with AECOM for Contract 15-119-2C, Professional services for the Development of a Sustainable Energy Management Strategy for the Stickney Water Reclamation Plant in an amount not to exceed $75,000.00, Account 201-50000-601410, Requisition 1396922
Body
Dear Sir:
Authorization is requested to issue a purchase order and enter into an agreement with AECOM for Contract 15-119-2C, Professional services for the Development of a Sustainable Energy Management Strategy for the Stickney Water Reclamation Plant.
As with all energy customers, the District pays a portion of its gas and electric bills to support energy efficiency programs that are administered by investor owner utilities and the Department of Commerce and Economic Opportunity (DCEO). The annual statewide budget for these programs was approximately $340 million in 2013.
While the District pays into these programs it has received only limited benefits, in part due to program designs that do not adequately address the District's operations. Increasingly, organizations like the District are working with state agencies and utilities to develop better program designs that are tailored to the specific needs of large energy customers. This approach helps utilities and the state meet energy reduction mandates and ensures that large, energy intensive customers get their fair share of program dollars.
AECOM will assist District staff to develop a strategy to provide the District with the opportunity to recover energy costs paid into the efficiency programs. The project work will also include development of energy performance metrics, benchmarking and, ultimately, a funding strategy to support energy efficiency initiatives in support of the District's strategic goal to become energy neutral by 2023.
The energy efficiency programs are likely to be in flux because of recent action by the USEPA to regulate carbon dioxide pollution from existing coal fired power plants. Last June, USEPA issued a proposed rule to limit carbon dioxide emissions from the electric power sector. The June proposal included proposed emission limitations for each state's power sector, which must be met between 2020 and 2030. USEPA plans to finalize these rules by June 2015. After the rules are final, Illinois and other states are expected to move quickly to develop plans to meet the emission limitations.
Inasmuch as AECOM possesses a high degree of professional skill and the work prescribed herein is time sensitive, it is recommended that the Director of Procurement and Materials Management be authorized to issue a purchase order and enter into an agreement without advertising, per Section 11.4 of the Purchasing Act, in an amount not to exceed $75,000.00
Funds are available in Account 201-50000-601410.
Requested, Catherine A. O'Connor, Director of Engineering, MVL:ECB
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for April 23, 2015