HomeMy WebLinkAbout08837ORDINANCE NO. 8837
AN ORDINANCE APPROVING ADDENDUM NO. 1 TO AN
AGREEMENT MADE BETWEEN THE CITY OF PUEBLO
AND MCKINSTRY ESSENTION, LLC FOR A
PRELIMINARY TECHNICAL ENERGY AUDIT FOR THE
JAMES R. DIIORIO WATER RECLAMATION FACILITY,
BUDGETING AND APPROPRIATING A SUM OF $478,170
FROM THE SEWER USER FUND RESERVES, CREATING
PROJECT WW1501 TO PRESERVE THE APPROPRIATED
AMOUNT THROUGH THE END OF THE AUDIT PERIOD,
AND AUTHORIZING THE PRESIDENT OF THE CITY
COUNCIL TO EXECUTE SAME
WHEREAS, the City operates the James R. DiIorio Water Reclamation Facility
for the purpose of treating municipal wastewater; and
WHEREAS, electric energy cost is the largest component of wastewater
treatment costs; and
WHEREAS, the City desires to minimize the use of electricity in wastewater
treatment in order to control wastewater rates; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Addendum No. 1 to the Contract for Technical Energy Audit and Project Proposal
between the City of Pueblo, a Municipal Corporation, and McKinstry Essention, LLC for
conducting technical energy audits for the James R. DiIorio Water Reclamation Facility,
a copy of which is attached hereto, having been approved as to form by the City
Attorney, is hereby approved. The President of the City Council is authorized to
execute and deliver Addendum No. 1 to the Contract for Technical Energy Audit and
Project Proposal in the name of the City and the City Clerk is directed to affix the seal of
the City and attest same.
SECTION 2.
Work performed under this contract shall include the following items:
1. Data and information collection;
2. Identification of potential energy savings measures;
3. Analysis of base-year electric power consumption;
4. Preliminary analysis of potential energy saving measures;
5. Savings and cost analysis;
6. Completion and presentation of a technical energy audit report; and
7. Engineering assistance with an SRF Loan Application.
SECTION 3.
The sum of $478,170 is hereby budgeted and appropriated from the Sewer User
Fund Reserves to fund the preliminary and final technical energy audits and engineering
assistance in applying for an SRF Loan.
SECTION 4.
Project no. WW1501 is to be created by the Finance Department to preserve the
budgeted and appropriated amount through completion of the audit period and SRF
Loan application process.
SECTION 5.
The President of the City Council is hereby authorized to execute said
Addendum on behalf of Pueblo, a Municipal Corporation, and the City Clerk shall affix
the Seal of the City thereto and attest the same.
SECTION 6.
Funds for work performed under this Addendum shall be from the Sewer User
Fund.
SECTION 7.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Ordinance and the attached Addendum to
effectuate the transactions described therein.
SECTION 8.
This Ordinance shall become effective immediately upon passage and approval.
INTRODUCED: _ January 26, 2015
BY: Chris Nicoll
PASSED AND APPROVED: February 9, 2015
City Clerkâs Office Item # R-2
Background Paper for Proposed
O
RDINANCE
COUNCIL MEETING DATE: January 26, 2015
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Gene Michael, Wastewater Director
SUBJECT:
AN ORDINANCE APPROVING ADDENDUM NO. 1 TO AN AGREEMENT
MADE BETWEEN THE CITY OF PUEBLO AND MCKINSTRY
ESSENTION, LLC FOR A PRELIMINARY TECHNICAL ENERGY AUDIT
FOR THE JAMES R. DIIORIO WATER RECLAMATION FACILITY,
BUDGETING AND APPROPRIATING A SUM OF $478,170 FROM THE
SEWER USER FUND RESERVES, CREATING PROJECT NO. WW1501
TO PRESERVE THE APPROPRIATED AMOUNT THROUGH THE END
OF THE AUDIT PERIOD, AND AUTHORIZING THE PRESIDENT OF
THE CITY COUNCIL TO EXECUTE SAME
SUMMARY:
Attached is an Ordinance accepting Addendum No. 1 to an agreement made in July of
2014 with McKinstry Essention, LLC to perform preliminary and final technical energy
audits at the James R. DiIorio Water Reclamation Facility. These audits will serve as a
basis for capital projects aimed at reducing electric energy consumption at the Water
Reclamation Facility and will assist in the SRF Loan application process.
PREVIOUS COUNCIL ACTION:
In July 2014, City Council approved an agreement, via Ordinance No. 8762, with
McKinstry Essention, LLC to perform preliminary and final technical energy audits. At
this time funds were budgeted and appropriated but expired at year end.
BACKGROUND:
The City of Pueblo operates the James R. DiIorio Water Reclamation Facility to provide
treatment of municipal wastewater. Electric energy cost is the largest single component
of treatment costs. The Water Reclamation Facility was constructed in the mid-1980s
and came on line in 1987. Many pieces of electrical equipment are more than 25 years
old and in need of replacement. Many pieces of electrical equipment are also obsolete
and have been replaced by more efficient designs. By targeted replacement of selected
equipment, as well as modifications to work schedules and exploration of options to
generate energy, the Wastewater Department may be able to reduce electric energy
consumption. Reduced electricity consumption may be able to assist the City in
controlling future wastewater rate increases.
The final technical energy audit, which involves identification of replacement equipment,
changes in work schedules, and examination of options for generating electricity at the Water
Reclamation Facility, is expected to cost approximately $348,170, additional engineering fees to
be used in the assistance of applying for an SRF Loan is estimated to cost an additional
$130,000. This Ordinance budgets and appropriates the total sum of $478,170 from the Sewer
User Fund Reserves to complete the final audit.
McKinstry Essention, LLC is an energy service company that has been qualified through
competitive bidding by the State of Colorado to perform industrial energy audits in Colorado.
McKinstry intends to subcontract with Tetra Tech, a consulting engineering firm, to assist with
the wastewater treatment-related technical aspects of the energy audits.
FINANCIAL IMPLICATIONS:
Both the preliminary and final technical energy audits, and completion of an SRF Loan
Application are estimated to cost a maximum amount of $478,170. Funds are available
from the Sewer User Fund Reserves.
BOARD/COMMISSION RECOMMENDATION:
None.
STAKEHOLDER PROCESS:
None.
ALTERNATIVES:
The alternative to performing energy audits is to continue replacing electrical equipment
as it fails, and continue using historical operating practices despite rising electric costs.
RECOMMENDATION:
The Wastewater Department recommends approval of this Ordinance.
PROPOSED MOTION:
Attachments:
Addendum No. 1 to Contract for Technical Energy Audit and Project Proposal