County of Santa Clara
General Services Agency
Administration
701 Miller Street

San Jose,Califomia 95110

(408)993-4700 FAX 993-4777

Finance and Government Operations Committee
May 23,2003
Agenda Item # 21

Prepared by: Cindy Fosi,Project
Control Specialist

Reviewed by: Steve Black, Manager
Building Operations Division
Larry Jinkins
Director, Facilities Department

Date:

May 23,2003

To:

Supervisor Pete McHugh,Chairperson
Supervisor Jim T,Beall, Jr., Vice-Chairperson

Finance and Goygroment Operations Committee

From:

G.l^evin Carruth, Director

General Services Agency

Subject:

ENERGY SERVICE CONTRACT WITH CHEVRON ENERGY
SOLUTIONS

RECOMMENDED ACTION

It is recommended that the Finance and Government Operations Committee(FGOC)

recommend that the Board of Supervisors,following a public hearing as required by
Califomia Government Code section 4217.13, take the followmg actions:
Page 1 of 5

1.

Adopt Resolution No.

relating to the proposed Energy Service Contract with
Chevron Energy Solutions Company,a Division of Chevron U.S.A., Inc.(Chevron),
Attachment D, with findings as required by California Government Code sections
4217.10-4217.18.

2.

Approve and authorize the Chairperson to execute the proposed Energy Service
Contract with Chevron to design and construct energy conservation measures
(ECM)identified during Chevron's energy audits of Coimty owned facilities,

following the approval of the Contract by County Counsel as to form and legality,

in the amount of $463,658 for Energy Conservation Projects as indicated in the
"Energy Conservation Measures- Groups One and Two", Attachment A.
3.

Approve an additional encumbrance of $46,366 as Supplemental Work Allowance
(SWA)for a total encumbered amount of $510,024.

4.

Approve delegation of authority to the General Services Agency(GSA)Building
Operations Manager or designee to execute time extensions and Change Orders, as
necessary, against the SWA.

5.

Authorize GSA Building Operations to roll over FY03 Energy Fxmds into FY04
Energy Funds in the amount of $324,508 for'use in future Energy Audit ECM's for
remaining Groups three through six.

6.

Approve extension of the Energy Audit Contract with Chevron Energy Solutions,
L.P., a subsidiary of Chevron U.S.A., Inc.(Trans-ID GSA04-110601 approved
November 6, 2001)from June 30,2003 to December 31, 2003 with no change in
compensation.

7.

Direct GSA to prepare a transmittal to take recommendations to a June Board of
Supervisors meeting.

FISCAL IMPLICATIONS

There is no impact to the General Fund as a result of this action. Funds identified and
appropriated for energy conservation projects are available in Capital Fund 50,Index 2412,
ESBJ 2329, FABC 303.
CONTRACT HISTORY

On November 6, 2001, the Board delegated authority to the GSA Director (Transmittal ID
GSA04-110601 - Chevron Energy Contract) to enter into a contract with Chevron for the
performance of energy audits of County owned facilities. The energy audit contract
Page 2 of 5

commenced on February 27, 2002 and is scheduled for completion by June 30,2003. A
contract extension to December 31, 2003 to ensure completion of the energy audits is
included within this transmittal. The energy audit contract has a compensation limit not to
exceed $335,000. The Energy Contract for the audits is the first of a two-phase process; the

Energy Service Contract for project implementation is the second phase, recommended in
this transmittal. This contract covers Groups One and Two (of six groups) that will be

presented to the Board of Supervisors for approval.
REASONS FOR RECOMMENDATION

As a direct result of the Board's Emergency Energy Task Force (EETF), xmder the

leadership of Supervisors Pete McHugh and Liz Kniss, the Board directed that GSA
Building Operations negotiate the Energy Service Contract. The purpose of this action is
to implement energy conservation measures resulting from the Chevron audits. A list of
recommended ECMs are identified in the Energy Conservation Measures - Groups One
and Two,Attachment A.

This Contract will allow the County to expedite implementation of the self-funding energy
conservation measures, to take full advantage of the possibility of earning various
available rebates and incentives, and to reduce overall energy consumption and costs. This
Board action and the terms of the Contract comply with the requirements of California
Government Code sections 4217.10 through 4217.18. Pursuant to the California
Government Code section 4217.13, before awarding the Contract the Board must make

certain findings (set forth in the attached Resolutions). A public hearing will be noticed
(two week notice must be provided to the public) and conducted before the Board can take
the recommended actions.

During the process of _establishmg the contract to perform and implement energy audits,
the County identified a particular statutory process set forth in the California Government
Code sections 4217.10 - 4217.18 which enables the County to expedite contracting for

energy audits of County owned facilities and implementation of energy conservation

measures. California Government Code sections 4217.10 - 4217.18 provide checks and

balances that ensure the County will be the decision maker and receive value for the ECMs

designed and installed pursuant to this approach. The California Government Code also

authorizes the County to arrange for third party financing for the purposes of funding and

implementing ECMs. The County initiated an RFP process to select one firm to conduct

audits, as well as, design and implement ECMs. After evaluating several firms in response

to an RFP, the County selected Chevron.
California Government Code sections 4217.10 - 4217.18 were enacted in 1984 as a result of

an energy crisis to assist public agencies in expediting and financing energy conservation
measures. This statutory procedure eliminates the necessity to separately contract for the
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design and construction phases of a project, as well as eliminates the public bidding

process. Chevron will use a competitive selection process to choose its subcontractors

ensuring that the anticipated cost to the County for thermal or electrical energy or
conservation services provided by the energy conservation facility improvements

pursuant to the Contract will be less than the anticipated marginal costs to the County for
thermal, electrical, or other energy that would be consumed by the County in the absence
of those improvements

It is estimated that the one time rebates will be in excess of $50,000. GSA will report
received rebates to the Board after the work is completed.
BACKGROUND

The EETF directed GSA to conduct energy audits of County owned facilities to identify
potential ECM's. On November 6, 2001 the Board of Supervisors delegated authority to the
GSA Director to execute the Energy Audit Agreement between the County and Chevron.
The Energy Audit Agreement is the first of a two-phase program outlined by GSA
Building Operations to identify and implement energy conservation measures. The Scope
of Phase One is to perform energy audits and identify energy conservation measures.

These audits are being conducted in six groups with contract completion date of June 30,
2003. A contract extension to December 31,2003 to ensure completion of the energy audits
is included within this transmittal. The Scope of Phase Two is to implement
recommended ECM's.

Phase One generates two key reports that result from the energy audits:

1. Preliminary Audit Report. This report lists all of the measures identified by
Chevron during the initial audit assessment. It provides a high-level feasibility
analysis of each identified energy conservation measure. GSA Building Operations
selects the ECMs that are deemed practical and economically plausible as well as

self-funding and refers them back to Chevron to conduct a detailed audit.
Preliminary Audit Reports have been completed and received for audit Groups One
and Two; and are being prepared for audit Groups Three through Six.

2. Detailed Audit Report. This report provides a more in depth analysis of each
identified ECM that was selected by GSA Building Operations. Included in this
detailed report are ECM implementation costs, calculated savings, return on
investments, and rebate incentives offered by the various utility agencies. It also

includes the Scope of Work and the estimated energy savings for each ECM. The
Detailed Audit Reports for audit Groups One and Two have been completed, and
Attachment A lists the EMCs identified for implementation for these two groups.
Page 4 of 5

Phase two, which addresses the implementation of the identified ECM's, will commence

upon Board approval of the attached Resolutions and Energy Service Contract for Groups
One and Two. Future Resolutions and Energy Service Contracts for Groups Three

through Six will be presented to the Board for approval once detailed audit reports are
finalized and reviewed by Building Operations.
CONSEQUENCES OF NEGATIVE ACTION

Without this Contract, GSA will not implement the Chevron recommendations that will
result in energy savings.
ATTACHMENTS

Attachment A. Energy Conservation Measures -Groups One and Two
Attachment B. Energy Service Contract
Attachment C. California Government Code sections 4217.10-4217.18
Attachment D. Resolution No.

^ Energy Services Contract with Chevron Energy

Solutions Company

Page 5 of 5

ATTACHMENT A

ENERGY CONSERVATION MEASURES - GROUPS ONE AND TWO

Identified Energy Conservation Measures meeting criteria as reviewed and recommended by
GSA Building Operations staff following Chevron energy audits:
Projected
Projected
Costs

Juvenile Hall- Gymnasium
Lighting Retrofit
Sheriff Department/EOC -

Annual

Projected Projected

Savings

Rebates

Payback

$26,476

$3,866

$1,652

6.4

$76,526

$18,214

$16,486

3.3

$149,038

$18,699

$22,375

6.8

$197,127

$29,212

$11,794

6.3

$69,991

$52,307

5.9

First Floor Isolation

CCOB - West Wing Chiller VFD

Parking Garage - Lighting
Replacement

$14,491

Project Management
TOTAL

$463,658

Audited Buildings - Groups 1 and Group 2:
Main Jail North
Main Jail South
Hall of Justice
San Jose Court
Juvenile Probation

Juvenile Detention - New

Juvenile Hall- Gymnasium
Juvenile Hall- Kitchen/Shop
Sheriff Department/EOC
CCOB - East Wing
CCOB - West Wing
Parking Garage

BOS Agenda Date:fylay 4,2004
Agenda Item No. 72

County of Santa Clara
General Services Agency
Facilities Department
Building Operations Division

GSA03 050404

Prepared by: Cindy Fosi
Project Control Specialist
Reviewed by: Bert Hildebrand
Acting Administrative
Services Manager III
DATE:

May 4, 2004

TO:

Board of Supervisors
jrr

FROM:

Larry Jinkins
Acting Director General Services Agency
SUBJECT:

Acceptance of Work and Notice of Completion of the Energy Conservation Measures performed pursuant
to the Energy Service Contract and the First Amendment to the Energy Service Contract with Chevron
Energy Solutions.

RECOMMENDED ACTION

Accept the Energy Conservation Measures(ECMs)as complete and authorize the Clerk of the Board to execute Notice
of Completion and Acceptance of Work for Groups One and Two,and Group 4, Project Number 263-BL03132, and

Elmwood Conservation Measures M4 & M5,Project Number 263-BL03133.

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.

1

BOS Agenda Date: PJlay 4,2004
Agenda Item No. 72

FISCAL IMPLICATIONS
There is no net impact to the General Fund as a result of this action. Funds for the Energy Conservation Projects were
allocated through Capital Fund 50, Superior Fund Center 0263, Cost Center 2516, GL Account 5530200,Project
Number 263-BL03132 and Capital Fund 50, Superior Fund Center 0263, Cost Center 2516, GL Account 5530200,
Project Number 263-BL03133.

Per County Policy, the balance of unspent funds of $63,746.00 will be transferred to the GSA Energy BIP Holding
Account(263-ENHOLD)for future use as directed by the Board of Supervisors.
CONTRACT HISTORY

On June 24, 2003, the Board of Supervisors approved the Energy Service Contract with Chevron Energy Solutions for
Energy Conservation Measures — Groups One and Two in the sum of $463,658. An additional $46,366 was encumbered
as a supplemental work allowance(SWA)for a total encumbered sum of $510,024.

The approved ECM included the Juvenile Hall Gymnasium Lighting Retrofit; the Sheriff Department/EOC First Floor
Isolation; the CCOB-West Wing Chiller VFD; the Civic Center Parking Garage Lighting Replacement; and project
management. Deductive Change Order No. 1 reduced base costs by <$5,145>. Deductive Change Order No. 2 reduced
base costs by an additional <$12,235>.

On December 16, 2004, the Board of Supervisors approved the First Amendment to the Energy Service Contract with
Chevron Energy Solutions to increase the fixed fee compensation from $463,658 to $788,166 and revise the Scope of
Work to add Energy Conservation Measure Group 4 Elmwood Conservation Measures M4 & M5. The supplemental
work allowance(SWA)in the sum of $46,366 remained unspent from the original contract award and was available for
the cost of the First Amendment Scope of Work, if necessary. The total contract appropriation was amended to $834,532
based on this Board action.

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, Jim Beall, Liz Kniss
Count/ Executive; Peter Kutras Jr.

2

BOS Agenda Date: May 4,2004
Agenda Kem No. 72

Original Contract(Groups One and Two):
1. Base contract amount: $463,658
2. SWA encumbrance: $46,366
A. Total encumbrance: $510,024

Amended Contract (First Amendment):
1. Base contract amount: $788,166
2. SWA encumbrance: $46,366
B. Total encumbrance: $834,532

Final Contract(Deductive Change Orders No. 1 and No. 2):
1. Base contract amount: $770,786
2. SWA encumbrance: $0

C. Total encumbrance: $770,786

Encumbrance balance(B—C)$63,746 (includes unspent SWA and deductive change order).
REASONS FOR RECOMMENDATION

All work has been completed for the ECMs within the scope of the Energy Service Contract and the First Amendment.
BACKGROUND

On June 24, 2003, the Board of Supervisors approved the Energy Service Contract with Chevron Energy Solutions and
the first four energy conservation measures(ECM)identified from the Energy Audits were performed by Chevron
Energy Solutions.

The first four projects consisted of the following:

ECM 1 - Juvenile Hall Gymnasium Lighting Replacement: The scope of this ECM was to replace the existing
thirty-five 400 watt metal halide fixtures with new fluorescent fixtures on a one for one replacement basis.

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.

3

BOS Agenda Date: May 4,2004
Agenda ttem No. 72

ECM 2- Sheriff Department/EOC First Floor HVAC Isolation; The scope of this ECM was to include the
modification of the existing Andover control system to shut the VAV boxes serving the upper floors of the
building during unoccupied hours.

ECM 3 - CCOB West Wing Chiller VFD: The scope of this ECM was to install a variable frequency drive

(VFD)and any necessary modifications to an existing Trane Centravac chiller.

ECM 4 - West Hedding Parking Garage Lighting Replacement: The scope of this ECM was to replace the
existing 461 (four hundred sixty one) 150-watt high pressure lighting fixtures with new fluorescent fixtures on a
one for one replacement basis.

Final inspection of these projects was held on February 25, 2004. There were no items left to be corrected. The contract
requires a one-year warranty, which begins with the Board's Acceptance of these ECMs as complete.

On December 16, 2003, the Board of Supervisors approved the First Amendment to the Energy Service Contract with

Chevron Energy Solutions. When completed, the ECM identified in the First Amendment would reduce water use from
three hundred and eighty-four (384) toilets and thirty-two (32) showers in Barracks M4 and M5 at Elmwood
Correctional Facility by replacing the existing flush valves and showerheads with low flow versions.

Final inspection of this project was held on March 15, 2004. There were no items left to be corrected. The contract
requires a one-year warranty, which begins with the Board's Acceptance of these ECMs as complete.

The Energy Service Contract term expires on June 24, 2006, three years after it commenced. Staff recommends that no

action be taken to terminate this Contract at this time. By allowing the Contract to remain in effect, the County maintains

the procedural option for future ECMs. Since the bonds were issued based on the specific Scopes of Work(ECMs),
should new projects be authorized by the Board through subsequent Contract amendments, new bonds will be provided
by Chevron.

Board of Supervisors; Donald F. Gage, Blanca Alvarado, Pete McHugh,Jim Beall, Liz Kniss
County Executive: Peter Kutras Jr.

4

BOS Agenda Date: May 4,2004
Agenda Item No.72

CONSEQUENCES OF NEGATIVE ACTION

Without acceptance of this work as complete and the recording of the Notice of Completion and Acceptance of Work by
the Office of the County Recorder, the County cannot release the 10% contract retention of funds due to Chevron
Energy Solutions. Also, the one-year warranty period cannot begin without the Board's Acceptance of these ECMs as
complete.

STEPS FOLLOWING APPROVAL
Upon Board approval, the Clerk of the Board shall:
1.

Send one executed copy of the Notice of Completion of Contract and Acceptance of Work to the Office of the
County Recorder for recording within ten (10) days from the Board action date in order to comply with contract
law.

2.

Send one executed copy of the Notice of Completion of Contract and Acceptance of Work to Chevron Energy
Solutions, Attn; Legal Department, 345 California Street, 32nd Floor, San Francisco, CA 94104.

ATTACHMENTS

(Transmittal submitted on Apr 22, 2004 8:34:22 AM - PDF Version)
NOTICE OF COMPLETION OF CONTRACT AND ACCEPTANCE OF WORK

(Miscellaneous)
FORM OF WARRANTY/GUARANTEE (Miscellaneous)

Board of Supervisors: Donald F. Gage, Blanca Alvarado, Pete McHugh, Jim Beall, Liz Kniss
Count/ Executive; Peter Kutras Jr.

5