HomeMy WebLinkAboutPR 15416: ENTERGY TEXAS, INC. ENERGY AUDITInteroffice MEMORANDUM To: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney ~Y„i~ ~~j~-~ Date: August 7, 2009 Subject: P. R. No. 15416 • The Entergy Executive Summary states that Texas Senate Bill 7 deregulated the electricity market in Texas and current Texas Legislation requires investor-owned utilities to offset 20~ of projected annual load growth through energy efficiency programs. As a matter of clarification, Southeast Texas is not deregulated at this time. • It states that the City will allow Texas City Smart Program to use the City's name to promote its participation in the program. I discussed this matter with Kelley Carson of Entergy Texas. He indicated that Entergy plans to pay the City approximately $165 per KW saved until November 2009 which may be extended until next year. Entergy plans to assist the City with business plans and cost analysis for improvements, if we so desire to make them. As we receive monetary incentives from Entergy or as we implement recommendations that Entergy suggested, they would like to notify other Cities thereof. • It states that the City will use its best efforts to implement the recommendations. They do understand that the implementation is based on the availability of funds and the City will have the choice as to who they will use to make the improvements and when those improvements will be made. CLEAResult is being hired by Entergy to make the recommendations and is not one of the vendors as to install the improvements. Copy to: Kelley Carson Entergy Texas Assistant City Manager/Operations John Comeaux MTS:ts z.pr154i6_memo_confidential PUBLIC WORKS DEPARTMENT COUNCIL ACTION MEMO TO Stephen B. Fitzgibbons, City Manager FROM John A. Comeaux, P.E., Assistant City Manager/Operations SUBJECT P.R. #15416 Entergy Texas, Inc. -Energy Audit DATE August 3, 2009 RECOMMENDATION: I recommend that the City Council approve Proposed Resolution No. 15416, authorizing the City Manager to execute an agreement with Entergy Texas, Inc. to conduct an energy audit of City facilities. BACKGROUND: Entergy Texas, Inc. sponsors the "Texas City Smart Program" wherein Entergy provides manpower to audit facilities at no costs to participating local governments. The program is designed to help participants identify energy efficiency opportunities and to provide monetary incentives to implement the projects. BUDGETARY/FISCAL EFFECT: The audit will be conducted at no cost to the City. Future costs/savings will be determined at a later date. EMPLOYEE/STAFF EFFECT: None. SUMMARY I recommend that the City Council approve Proposed Resolution No. 15416, authorizing the City Manager to execute an agreement with Entergy Texas, Inc. to provide an energy audit of City facilities. ~~~ e.~_ Jo n A. Comeaux, P.E. Assistant City Manager/Operations JAC/psb Z:\katherine/cams/entergy audit 2009 P.R.15416 Page 1 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH ENTERGY TEXAS, INC. TO PROVIDE A CUSTOMIZED ENERGY AUDIT OF CITY FACILITIES. WHEREAS, there is a recognition of increasing energy costs; and, WHEREAS, there is a desire by the City to reduce energy costs; and, WHEREAS, Energy Texas, Inc. provides subject audit on a no cost basis; and, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT, the City Manager is hereby authorized to execute an agreement with Entergy Texas, Inc. (See attached Exhibit A) to execute an energy audit; and THAT, a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED, AND APPROVED this the _ day of . A.D. 2009 at a meeting of the City of Port Arthur, Texas by the following vote: AYES: Mayor, Councilmembers: Mayor Z:\kafherine/resolutions/Entergy Audit 2009 P.R. 15416 Page 2 ATTEST: City Secretary APPROVED FOR ADMINISTRATION: APPROVED AS TO FORM: City Attorney Stephen B. Fitzgibbons City Manager ~'~John A. Comeaux, P.E. o ' Assistant City Manager/Operations Z: \katherine/resolutions/Entergy Audit 2009 „d~. lI8IHX3 .Entr exrEecv rExas, IIpG TEXAS CITY SMART EXECUTIVE SUMMARY Thank you for your interest in the Entergy Texas City Smart Program. The City Smart program provides free support to participating local governments (cities/counties) through energy performance benchmarking, energy master planning, and cash incentives for City Smart participants who complete projects that result in peak demand savings. Texas Senate Bill 7 deregulated the electricity market in Texas and current Texas Legislation requires investor-owned utilities to offset 20% of projected annual load growth through energy efFcienty programs. Given this mandate, Entergy Texas has developed several programs to help customers faced with rising energy prices and resource constraints. The City Smart program is designed to help participants identify energy efficiency opportunities in existing and newly planned facilities and to provide monetary incentives to implement the projects. The program is funded by Entergy Texas and is being offered at no cost to participants. Texas City Smart is a voluntary orocram that offers objective, third party consulting on best practices in the areas of energy usage and energy efficiency. It is important to note that no products or services are sold through the City Smart Program. Based on partner needs, the City Smart Program will provide customized energy efficienty solutions for each partner using the following list/menu of options: • Energy Performance Benchmarking for existing buildings. • Energy Master Planning Workshops that allow financial and facilities personnel to learn about industry best practices and determine where best to focus short and long term resources. • Technical Assistance to help identify and evaluate energy-efficienty opportunities. • Cash Incentives ($165 per kW) are available for new construction and renovation projects the partner elects to implement that reduce peak demand. • Communications Support to help publicize the local governments leadership and accomplishments in energy efficiency. Please do not hesitate to contact CLEAResult or Entergy Texas should you have any questions or need additional information. We look forward to working with you to launch the Texas City Smart program and achieve energy and cost savings for local governments. Sincerely, Kelley Carson Entergy Texas, Inc. 281-362-4033 jcarsol@entergy.com Phil Lanier CLEAResult Consulting, Inc. (936)494-9595 pla nier@ CLEAResult.com * Please note that City Smart is a market transformation program and is currently in its pilot phase. At this time, the program is only offered to a limited number of participants. * CLEAResult Consulting, Inc. is the implementation contractor for the Eneergy Texas, Inc. City Smart Program. Erttergy Et~RERGY TEXAS, IHG 2009 Texas City Smart Program Sponsored by Entergy Texas, Inc. MEMORANDUM OF UNDERSTANDING City and County Governments in Texas aze feeling the pinch of high energy costs now more than ever. Entergy Texas, Inc. is committed to providing leadership to assist local government in coping with their rising energy costs. Entergy Texas is proud to introduce the City Smart Pilot Program, aimed at improving the energy efficiency of municipaUgovernment buildings located within its service territory. Entergy Texas has contracted with CLEAResult, Ina (CLEAResult) to sponsor, promote, and administer the Program. The City/County of (herein referred to as the "City" or "County") recognizes that it is among the select few participants in this limited, pilot program designed to reduce government's energy costs, reduce operating budgets freeing additional dollars for other tax payers needs, and provide improved working environments for employees. This Memorandum of Understanding reflects the voluntary collaboraflve effort between your city/county and the Texas City Smart Program, and details the commitments of each party in order to improve energy efficiency in your facilities. The Texas CitySmart Program agrees to provide these services at no cost to the partner with the understanding that the City/County will exert its best e,~Jorts to complete the steps below and implement cost-effective energy efficiency recommendations by November 30, 2009. Description of Commitments The Texas City Smart Program will provide customized energy efficiency solutions for each Partner's individual needs, using the following list/menu of options: • Analyze utility data for the Partner in order to identify the potential for energy savings, • Identify and assess energy efficiency measures, • Develop and adhere to an Energy Master Plan that outlines administrative and financial decision-making criteria for energy efficiency improvements, installation of energy efficiency measures, and maintenance and operation procedures in order to succeed in implementing acost-effecfive energy program in a timely manner, • Identify and assess capital-intensive energy projects which will produce energy cost savings, • Implement energy-efficient operations and maintenance practices and procedures identified during walk- through energy assessments of specific faciliTy(s), subject to available funding. • Locate funding sources to enable the partner to complete capital projects, • Use utility incentives to buy-down the capital cost of energy~fficient systems. Ct.EAResuh, Inc. is the implementation contrador for Entergy Texas, Inc. Ciiy Smart Program Principles of Agreement Specific responsibilities of the Government Partner and the Texas City Smart Program in this agreement are listed below. • Government Partner will set milestones for progress within the first two weeks of participation in the Program and will make every best effort to adhere to them throughout the program process. • Government Partner will select a contact person from both the Facilities or Energy Management Department and the Finance or Business Department to work with the Texas City Smart Program throughout the term of the Partnership. • Government Partner agrees to provide the needed information to the Texas City Smart Program in order to allow the Program to provide benchmazking information to the Government Partner. The Texas City Smart Program will develop a benchmazking report for the Government Partner illustrating the specified facilities' energy use in terms of several units of measure that will be used to measure current and potential energy performance. • Government Partner will establish an Energy Master Plan and set realistic energy efficiency goals. The Texas City Smart Program will provide a sample Energy Master Plan to the Government Partner to serve as a guide to the Government Partner. The Texas City Smart Program will also commit to act as a facilitator for the Government Partner in the development and adoption of the Energy Master Plan. • The 2009 Texas City Smart Program will pay to Government Partner monetary incentives, as discussed in program materials, for energy efficiency achieved by projects that aze completed no later than November 30, 2009. • Texas City Smart Pilot Program is offered solely for Cities, Counties and local governments and awazded cash incentives are paid directly to the City Smart partner. Commercial Solufions program sponsored by Entergy Texas is not available to Cifies, higher education and local governments therefore projecUpartner cannot receive double incentives from the utility per Public Utility Commission of Texas guidelines. One exception is that partners are allowed to participate in the Entergy Texas Load Management program. • Government partner will promote, and allow the Texas City Smart Program to use the Government Partner's name to promote, its participaflon in fire Program to entities such as other school districts, utilities, federal, state, or local entities, and the general public. Acceptance of Agreement By endorsing below, your local government accepts this agreement with the 2009 Texas City Smart Program, sponsored by Entergy Texas, and conducted by CLEAResult. This agreement should be signed by your City Manager, County Judge, Assistant Manager, Public Works Drrector, other upper management staff, or council member. Government Partner Signature: Printed Name: Enterev Texas Signature: Kelley Cazson Organization: SCORE/City Smart Program Manager Entergy Texas, Inc. 9425 Pinecroft Dr. Phone: The Woodlands, TX 77380 CLEAResult, Inc. is the implementation contractor for the Entergy Texas, Inc. City Smart Program Date: Please identify 1 individual from both the Facilities/ Energy Management Department and from the Business/ Finance Department who will be the main points of contact while working with the Texas City Smart Program. Facilifies/Energy Management Point of Contact: Name (Mr./Ms./Dr.): Organization: Title: Address: E-Mail: Business/Finance Point of Contact: Name (Mr./Ms./Dr.): Fax: Please sign and mail or fax to: CI,EAResult, Inc. 2211 S. IH 35, Suite 401 Austin, TX 78741 Phone: (512) 327-9200 Toll-Free Fax: (866) 236-9505 CLEAResutt, Inc. is the implementation contractor for the Entergy Texas, Inc. City Smart Program