On November 26, 2002, (M&C C-19369) the City Council authorized its first Detailed Energy Study with JCI. This action was taken after a competitive selection of Johnson Controls, Inc., (JCI) as the City's Energy Savings Company (ESC) of record. There were seven respondents to the City's Request for Qualifications (RFQ) for such services. Since 2003, there have been eight phases included in the resulting Energy Savings Performance Contract (ESPC), all were developed by first conducting a Detailed Energy Study.
On May 7, 2012, JCI completed a no-cost, no-obligation Preliminary Energy Assessment of select City facilities as requested by Staff. With the assistance of Staff, JCI's assessment has identified facilities management opportunities that would result in cost avoidance of $29,809,421.00 over a 10 year period. The cost to implement the new energy improvements and consolidate the previous phases would be $24,478,124.00, resulting in a net benefit of $5,331,297 over the 10 year period.
On May 8, 2012, the City's Infrastructure and Transportation Committee members were informed of Staff's interest in consolidating five previously contracted projects into one, in order to increase City service benefits and reduce City operating costs. These initial projects were implemented, and continue to be tracked, as part of the City's Energy Conservation Program under its current ESPC with JCI.
In order to finalize guaranteed costs and benefits of another potential ESPC amendment, JCI needs to conduct a Detailed Energy Study. Funding for the study is to be provided by the City's Conservation Reserve Account of utility incentives secured by the City for implementing energy efficiency. Following JCI's submission of the study, the City will not be under any obligation to continue to work toward an ESPC with JCI.
The scope of the recommended study includes, but is not limited to, the following facility management opportunities: project consolidation, lighting systems, air-conditioning systems, water conservation, building system re-commissioning, LEED® certification, energy accounting, and computer power management. The study does not include Water Department opportunities which are being considered as another separate project. There are over 100 City facilities planned as part of the study, most all of which have been included in the current ESPC.
The intent of the recommended study is to identify opportunities to increase cost savings as guaranteed to the City by JCI, and to decrease City operating budget costs, primarily through a consolidation of services included in previous ESPC phases. One known cost-saving opportunity involves refinancing of the current ESPC Phase IV municipal lease-purchase Agreement.
The planned contract consolidation includes existing services that are currently paid for through guaranteed cost avoidance to the City's operating budget. There are currently nine separate contracts that provide three types of services: Assured Performance Guarantee Services, Building Efficiency Specialist Services, and Primary Air-Conditioning Equipment Services. Consolidating all of these previous contracts into one will result in reduced administrative burden and lower costs. It is planned that Conservation Reserve Account funds would be used to fund an existing Staff position to manage implementation of such a project. Staff is evaluating other funding sources that may be available. All project costs would be offset by JCI-guaranteed cost avoidance to the City's operating budget.
The consolidated contracts shall be:
City of Fort Worth Performance Contract
City of Fort Worth - Phase II Performance Contract
City of Fort Worth - Phase III Performance Contract
City of Fort Worth - Phase IV Performance Contract
City of Fort Worth - Phase VIb Performance Contract
Johnson Controls, Inc., is in compliance with the City's MWBE ordinance by committing to 10 percent M/WBE participation. The City goal in this project is 10 percent.
The City facilities included in the study are located in ALL COUNCIL DISTRICTS.