TRANSMITTAL LETTER FOR BOARD MEETING OF APRIL 18, 2019
COMMITTEE ON PROCUREMENT
Mr. Brian A. Perkovich, Executive Director
Title
Issue a purchase order and enter into an agreement with the Public Building Commission of Chicago to Implement Energy Efficiency Projects at Various Locations, in an amount of $5,412,680.00, Account 401-50000-645680, Requisition 1513383 (Deferred from the April 4, 2019 Board Meeting)
Body
Dear Sir:
On November 15, 2012, the Board of Commissioners authorized the District to enter into an agreement with the Public Building Commission of Chicago (PBC) to conduct an Energy Audit of all buildings and to participate in the Multi-Agency Guaranteed Energy Performance Contracting Program.
On March 6, 2014, the Board of Commissioners authorized the PBC to conduct an Investment Grade Energy Audit, as part of the Intergovernmental Agreement. The Investment Grade Audit was completed by Noresco, an Energy Service Company (ESCO) chosen by the District as best qualified for this task.
On February 18, 2016, the Board of Commissioners authorized energy efficiency work at the Stickney Storeroom and Calumet Water Reclamation Plants. The scope of work included steam blanket insulation, HVAC control work and lighting upgrades. Work was completed in 2017 for the total amount of $4,069,818.85.
On May 3, 2018, the Board of Commissioners authorized energy efficiency work at the O’Brien, Kirie, Egan and Hanover Park WRPs along with 14 remote sites. The scope of work included steam blanket insulation, HVAC control upgrades and upgrading the interior lighting with LED fixtures. Work will be completed in June 2019 under the total estimated amount of $3,456,675.00.
With the input and approval of the District as to terms and conditions, the PBC will enter into a contract directly with Noresco to implement the last phase of the work included in the Investment Grade Energy Audit report. The scope of this work includes upgrading the HVAC controls at the Mainstream Pumping Station, the Stickney, O’Brien, Kirie, Egan and Calumet WRPs, and upgrading the interior lighting with LED fixtures at the Mainstream Pumping Station and the Stickney WRP. The total estimated cost of the work is $5,412,680.00. This will complete all the work identified in the 2015 Investment Grade Audit. It is estimated that the District will save approximately $325,000.00 annually, resulting in a simple payback of 16.7 years. The estimated annual electric savings is 3,784,000 kWh. The annual natural gas savings is estimated to be 114,000 therms. Noresco will work with the District to apply for utility rebates with NICOR, which may be up to $40,000.00.
The total cost of this project is $5,412,680.00. Funds are available in Account 401-50000-645680.
The Affirmative Action Ordinance Revised Appendix D will be included. The type of work to be performed under the agreement is within the “Mechanical” category for establishing Minority-owned Business Enterprises (MBE), Women-owned Business Enterprises (WBE), Small Business Enterprises (SBE) AND Veteran-Owned Business Enterprise (VBE) utilization goals. The WBE, MBE, SBE and VBE utilization goals for this contract are: 20%, 10%, 10% and 3%, respectively.
It is recommended that the Board of Commissioners authorize the Director of Procurement and Materials Management to issue a purchase order and enter into agreement with Public Building Commission of Chicago to implement energy efficiency projects in an amount not to exceed $5,412,680.00.
Requested, John P. Murray, Director of Maintenance and Operations, EJS:SO’C:MAG:JR:SS:PD:JL
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 18, 2019
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