Memorandum

City of Lawrence

City Manager’s Office

TO:	Diane Stoddard, Interim City Manager
CC:	Casey Toomay, Bryan Kidney, Chuck Soules, Mark Hecker
FROM:	Eileen Horn, Sustainability Coordinator
DATE:	December 30, 2015
RE:	Energy Efficiency and Facilities Conservation Improvement Program

Background

At the December 1, 2015 City Commission meeting, the Commission voted to authorize staff to issue a Request for Qualification (RFQ) to select an energy management company to assist city staff with energy analyses, calculation of savings, and project implementation.

Upon further discussion with staff from the Kansas Corporation Commission, City staff became aware of a program offered by the state that can streamline many of these steps, and provide additional energy efficiency expertise.  The Facility Conservation Improvement Program (FCIP) helps school districts, local governments, and other public entities implement energy efficiency projects with no upfront capital expenditures. 

This longstanding State program uses an innovative approach known as Energy Savings Performance Contracting (ESPC) to improve public facilities. ESPC offers a budget-neutral way to make energy-efficiency and deferred maintenance improvements—and then repay all project costs with the money saved on energy and O&M costs.

City of Lawrence staff recommend signing up for the State’s FCIP program, as it will achieve the same goals as the independent RFQ process we initially outlined in the memo from December 1st, but it will also confer the following benefits:

ü The KCC Energy Division has established partnerships with 13 private-sector Energy Service Companies (ESCOs). Rates for audits and services have already been pre-negotiated.  We can choose from any of the pre-selected ESCOs, eliminating the need for an RFQ process.  Staff have reviewed this list, and are confident that the selected vendors will meet our needs.  We will interview several ESCOs and come back to the Commission with our recommendation.

ü KCC FCIP staff will assist City staff throughout the process by evaluating the proposals from the ESCOs, designing the project scope, and reviewing any contract with the ESCO to ensure that the energy savings are being met.

ü The FCIP project allows us the flexibility throughout the process to re-evaluate and ensure that the program is meeting our needs.  We do not have to commit at the outset to an entire ESPC, and will have multiple opportunities to update the Commission at various decision points.

Therefore, staff are requesting that the Commission authorize us to participate in the KCC’s FCIP program to assess and implement energy saving opportunities for our City buildings and facilities.

Action

Authorize staff to sign up for the Facilities Conservation Improvement Program hosted by the Kansas Corporation Commission Energy Division to initiate an energy savings program for city buildings and facilities.