SUBJECT/RECOMMENDATION:
Title
City’s Energy Savings Program Update - Cenergistic. (WSO)
Body
SUMMARY:
To reduce its greenhouse gas (GHG) emissions and meet the goals laid out in city’s Sustainability Action Plan, Greenprint 2.0, the City pledged to increase energy efficiency in its facilities. On February 17, 2022, the City Council approved a 60-month contract with the consulting firm Cenergistic, to reduce municipal electricity, water and natural gas consumption by 20 percent over five years. Water was not initially included by added by an addendum, effective December 15, 2022.
This program is an organizational behavior-based energy conservation program. A dedicated energy specialist works on site to conduct regular energy audits, find and fix faults and help find opportunities for cost avoidance. Monthly meetings between Cenergistic and city staff (Public Works Sustainability Team and General Services) review data including audit, energy consumption and bill flag reports and more. This presentation will provide a summary of the first two years of the program.
The contract has a savings guarantee in which Cenergistics will reimburse the City for the difference if the City’s program costs exceed its total cost avoidance, calculated from the starting date to the end of any performance year during the term.
The fee payable to Cenergistics as outlined in the contact varies based on the contract year. The current contract fee is $50,441.67 for each month during the third year of the agreement. An annual purchase of $16,900.00 for a third-party software, EnergyCAP, is also required to objectively report any experienced cost avoidance for energy costs.
Should council wish to termination this contract for convenience, the City would need to provide Cenergistics 60-days written notice and pay approximately $1,056,147.00 to Cenergistics (12 times the average monthly fee, plus the unpaid monthly fees through cancellation, plus the average monthly fee times the number of months from start date through the termination effective date minus the sum of the monthly fees received by Cenergistics)
STRATEGIC PRIORITY:
High Performing Government
1.1 Provide evidence-based measurement tools to continually guide municipal performance and promote accountable governance.
1.5 Embrace a culture of innovation that drives continuous improvement and successfully serves all our customers.
Environmental Stewardship
4.1 Support proactive climate resiliency strategies based in science to protect natural and built environments from impacts associated with sea level rise.
4.2 Adopt renewable resource usage and waste reduction practices to ensure a vibrant City for current and future generations.
