The Billings Operations Center (BOC) garage is a 100,000 sq. ft. facility used for storing City vehicles as well as containing some shop areas for the Solid Waste, Streets, and Parks Departments.  NorthWestern Energy's (NWE) E+ Commercial Lighting Program grants rebates for high efficiency lighting retrofits.   The BOC garage has low efficiency lighting and staff requested bids for its replacement.  This rebate program requires that a building owner convert 100% of the facility lighting to the 2009 IECC Code, including automatic lighting controls.  This opportunity to save electric energy and cost is substantial. It will reduce electric cost at least $8,000  per year and an estimated annual 183,000 kwh of electric power.  The rebate for this project is $40,000.  Engineering for the project cost $6,000.  If the City Council accepts the low project bid of $37,685, the payback on this project is 0 years because the rebate will almost cover the project costs and previously awarded USB credits will cover the remainder.

The City Council may approve or disapprove awarding a contract for this lighting retrofit project.  The project was recommended by the Investment Grade Audit conducted by McKinstry in 2011 and is recommended by staff.  Not awarding the contract will forfeit the rebates and will leave the facility with less efficient lighting than is available. 

Three (3) qualified contractors submitted bids for the project: I. D. Corporation bid $37,685; Ace Electric bid $38,651, and; Yellowstone Electric bid $46,700.  Of the $ 43,685 total project cost, $40,000 will be covered by the NWE Rebate and $3,685 will be covered by the USB monies already deposited to the City.  The project payback is 0 since rebates and USB Credits will fund the entire project.  The City will also save an estimated $8,000 per year in energy costs. 

Staff recommends that the City Council accept the low bid and award a contract for $37,685 to I.D. Corporation for the BOC garage lighting retrofit project.