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Meeting Date:	01/23/2017
Negotiations w/Schneider Electric Energy Savings Contract in accordance with Chapter 302
Submitted for:	Joe Lopez	Submitted By:	Joe Lopez
Department:	Purchasing

Subject:

Discussion and possible action to authorize County Attorney staff to negotiate with Schneider Electric Building Americas Inc. (TIPS #2032714) in accordance with Texas Local Government Code; Section 271.102 (C.), (Cooperative Purchasing Program Participation) and prior to entering into an energy savings contract in accordance with Texas Local Government Code Section 302 (Energy Savings Performance Contracts for Local Governments) and authorizing the County Judge to execute all relevant documents; and any other matters incident thereto. [Funding Source - Bond Series 2016]

Issue: Certificate of Obligation Series 2016 projects includes funding for upgrades to the Central Plant facility to replace existing chiller system and related components for downtown facilities such as the Billy Hall building, Justice Center, Court House and other County buildings currently tied into main system. The current system is over 15 years old and replacing existing system with a more energy efficient system will save the County money by reducing electricity and maintenance expenditures.

Solution: Authorize negotiations with Schneider Electric prior to awarding an energy savings contract in accordance with LGC Chapter 302. Chapter 302 is exempt from Texas Government Code; Chapter 2269 (Contracting and Procedures for Construction Projects).

Result: Authorization for staff to proceed negotiations on total project cost and to ensure all requirements are completed as mandated by Chapter 302 prior to entering into an Energy Savings Contract with Schneider Electric.

Background:

The central chiller plant and cooling towers are approaching its end of service life, it is recommended that a new chiller system be installed along with upgraded components to service the downtown County facilities. Upgrading the existing Heating, Ventilation, and Air Conditioning (HVAC) system will provide less down time, alternate chiller backup plans, multiple building connected to Central plant system providing improved operational efficiency, cost of equipment / PM maintenance will be reduced and energy savings will provide financial relief in future fiscal years.

Previous Court Action:

Approval of Investment Grade Audit agreement between Webb County and Schneider Electric on August 10, 2015, item 47 and authorization to select LGC/ Section 302 and the procurement method for this project.

Fiscal Impact

Budget Account Number:	TBD
Funding Source:	Bond Series 2016
Balance:	Est. $6.5 million
Financial Impact:
Project will be funded through Bond Series 2016 Estimated Project Cost: $6,500,000.00 (Subject to change) Account: TBD