HomeMy WebLinkAboutC2011-122 - 4/19/2011 - ApprovedI r
I' 4
CITY OF CORPUS CHRIST
TECHNICAL ENERGY AUDIT &_PROJECT PROPOSAL CONTRACT
TABLE OF CONTLNTS
Technical Energy Audit and Project Proposal Contract
Exhibit A: Scope of Work
Exhibit B: Notice of Acceptance of Technical Energy Audit Report
Exhibit C: Elements to Include in Measurement and Verification Plan
Exhibit D: Cost and Pricing
Exhibit E: Mandatory Insurance Requirements, INDEMNIFICATION AND HOLD HARMLESS
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2011 -122
M2011 -095
04/19/11
McKinstry Essention
$
INDEXED
TECHNICAL ENERGY AUDIT AND
PROJECT PROPOSAL CONTRACT
This Technical Energy Audit & Project Proposal Contract (the "Contract ") is made and entered
into between McKinstry Essention, Inc. ( "ESCO "), having its principal offices at 13465 Midway
Road, Dallas, TX 75244, with local office at 555, N. Carancahua Street, Suite 860, Corpus
Christi, TX 784014, and the City of Corpus Christi, a Texas home rule municipal corporation,
hereinafter referred to as ( "City "), at 1201 Leopard Street, Corpus Christi, TX 78401.
WITNESSETH
WHEREAS, This Contract was created for use of the City to obtain a technical energy audit of
several facilities from a private energy service company (ESCO).
WHEREAS, Authority exists for the City to enter into this contract; and the required approval,
clearance and coordination have been accomplished from and with appropriate departments.
WHEREAS, ESCO is a company with experience and technical and management capabilities to
provide for the discovery, engineering, procurement, installation, financing, savings guarantee,
maintenance and monitoring of energy and water saving measures at facilities similar in size,
function and system type to City's facilities; and
WHEREAS, ESCO has submitted a Proposal, in response to City's Request for Proposals
(RFP), pertaining to the discovery, engineering, procurement, installation, financing, savings
guarantee, maintenance and monitoring of energy and water saving measures at City's
facilities; and
WHEREAS, City has selected ESCO to provide the services described herein; and
WHEREAS, City desires to enter into a Contract to have ESCO perform a Technical Energy
Audit and Project Proposal to determine the feasibility of entering into an Energy
Performance Contract to provide for installation and implementation of energy and water
saving measures at City's facilities.
WHEREAS, if energy and water saving measures are determined to be feasible, and if the
amount of savings can be reasonably sufficient to cover all costs, as defined by the City,
associated with an energy performance contracting project, the parties intend to negotiate an
Energy Performance Contract under which the ESCO will design, procure, install, implement,
maintain and monitor such energy and water saving measures. However, this intent does not
commit City to entering into such Energy Performance Contract,
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THEREFORE, the parties agree as follows:
1. Technical Energy Audit and Project Proposal Contract
ESCO agrees to perform a Technical Energy Audit in accordance with the Scope of Work
described below. ESCO agrees to complete the Technical Energy Audit and tender to City a
final report within 90 calendar days from the execution of this Contract.
City agrees to assist the ESCO in performing the Technical Energy Audit in accordance with
the Scope of Work described below. City agrees to work diligently to provide full and accurate
information. ESCO agrees to work diligently to assess validity of information provided and to
confirm or correct the information as needed. The parties contemplate that this will be an
iterative process and that City will have a reasonable amount of time to review and determine
acceptance, which is anticipated to not exceed 30 days, before issuing the Notice of
Acceptance (Exhibit B).
ESCO agrees to offer an Energy Performance Contract Proposal with a package of energy
and water saving measures and with details as specified in the Scope of Work below.
2. Compensation to ESCO
ESCO shall be compensated as follows:
Payment through Performance Contract. City shall have no payment obligations under this
contract provided that ESCO and City execute an Energy Performance Contract within 60
calendar days after issuance of the Notice of Acceptance (Exhibit B) of the final Technical
Energy Audit and Project Proposal Contract, but the fee indicated above shall be
incorporated into ESCO's project costs in the Energy Performance Contract and paid through
the Energy Performance Contract funding mechanisms.
Project With Insufficient Savings. City shall have no payment obligations under this Contract
in the event that ESCO's final Technical Energy Audit and Project Proposal Contract does
not contain a package of energy and water saving measures which, if implemented and as
meeting terms of Exhibit A: Scope of Work, (b) Guidelines and Requirements, will provide
the City with cash savings sufficient to fund City's payments of all costs and fees associated
with the Energy Performance Contract, including 1) the fee associated with the Technical
Energy Audit, 2) ail monthly payments on a lease purchase agreement to finance the measures,
3) any annual fees for monitoring and maintenance incurred by the ESCO. Should the ESCO
determine at any time during the Technical Energy Audit that savings cannot be attained to
meet these terms, the Technical Energy Audit will be terminated by written notice by the ESCO
to City. In this event this Contract shall be cancelled and City shall have no obligation to pay, in
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whole or in part, the amount specified in this Section 2(a). or would be contemplated by the
execution of a project proposal contract (Exhibit D).
3. Scope of Work
The Technical Energy Audit and Energy Performance Proposal Contract shall be performed as
described in Exhibit A: Scope of Work.
4. Termination
This Contract may be terminated at any time as described below by:
a. Termination for Default/Cause
1) Default.
If the ESCO refuses or fails to timely perform any of the provisions of this contract, with
such diligence as will ensure its completion within the time specified in this contract, the
City may notify the ESCO in writing of the non - performance, and if not promptly
corrected within the time specified, the City may terminate the ESCO's right to proceed
with the contract or such part of the contract as to which there has been delay or a
failure to properly perform. The ESCO shall continue performance of the contract to the
extent it is not terminated and shall be liable for excess costs incurred in procuring
similar goods or services elsewhere.
2) ESCO's Duties
Notwithstanding termination of the contract and subject to any directions from the City,
the ESCO shall take timely, reasonable and necessary action to protect and preserve
property in the possession of the ESCO in which the City has an interest.
3) Compensation
Payment for completed services delivered and accepted by City shall be according to
the Performance Contract. The City (purchasing institution) may withhold amounts due
to the ESCO as the City deems to be necessary to protect the City (purchasing
institution) against loss because of outstanding liens or claims of former lien holders and
to reimburse the City for the excess costs incurred in procuring similar goods and
services.
4) Excuse for Nonperformance or Delayed Performance
The ESCO shall not be in default by reason of any failure in performance of this contract
in accordance with its terms if such failure arises out of acts of God; acts of the public
enemy; acts of the State and any governmental entity in its sovereign or contractual
capacity; fires; floods; epidemics; quarantine restrictions; strikes or other labor disputes;
freight embargoes; or unusually severe weather. Upon request of the ESCO, the City
shall ascertain the facts and extent of such failure, and, if such officer determines that
any failure to perform was occasioned by any one or more of the excusable causes, and
that, but for the excusable cause, the ESCO's progress and performance would have
met the terms of the contract, the delivery schedule shall be revised accordingly, subject
to the rights of the City.
5) Erroneous Termination for Default
If after notice of termination of the ESCO's right to proceed under the provisions of this
clause, it is determined for any reason that the ESCO was not in default under the
provisions of this clause, or that the delay was excusable, the rights and obligations of
the parties shall be the same as if the notice of termination had been issued pursuant to
the termination for convenience clause.
b. Termination for Convenience
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1) Termination
The City may, when the interests of the City so require, terminate this contract in whole
or in part, for the convenience of the City. The City shall give written notice of the
termination to the ESCO specifying the part of the contract terminated and when
termination becomes effective. This in no way implies that the City has breached the
contract by exercise of the Termination for Convenience Clause.
2) ESCO's Obligations
The ESCO shall incur no further obligations in connection with the terminated work and
on the date set in the notice of termination the ESCO will stop work to the extent
specified. The ESCO shall also terminate outstanding orders and subcontracts as they
relate to the terminated work. The ESCO shall settle the liabilities and claims arising out
of the termination of subcontracts and orders connected with the terminated work. The
City may direct the ESCO to assign the ESCO's right, title, and interest under terminated
orders or subcontracts to the City. The ESCO must still complete and deliver to the City
purchasing institution the work not terminated by the Notice of Termination and may
incur obligations as are necessary to do so.
3) Compensation
a) The ESCO shall submit a termination claim specifying the amounts due because
of the termination for convenience together with cost or pricing data bearing on
such claim. If the ESCO fails to file a termination claim within 90 days from the
effective date of termination, the City may pay the ESCO, if at all, an amount
set in accordance with subparagraph C of this Section.
b) The City and the ESCO may agree to a settlement provided the ESCO has
filed a termination claim supported by cost or pricing data and that the
settlement does not exceed the total contract price, reduced by payments
previously made by the City the proceeds of any sales of supplies and
manufactured materials made under agreement, and the contract price of
the work not terminated.
c) Absent complete agreement, under subparagraph B of this Section, the
City shall pay the ESCO the following amounts, provided the payments
agreed to under subparagraph B shall not duplicate payments under this
subparagraph:
(1) Contract prices for supplies or services accepted under the contract;
(2) Reasonable costs for actual work completed prior to termination as outlined in
Exhibit D based on a not to exceed fee of $125,000,00 inclusive of all fees and
expenses based on the percentage of work complete based on $0.10 per s.f.,
$10,000.00 for street light audit, and an allowance of $2,000.00 for
asbestos /lead surveys.
(3) The total sum to be paid the ESCO under this subparagraph C small not
exceed the total contract price, reduced by the amount of payments otherwise
made, the proceeds of any sales of supplies and materials under subparagraph
B, and the contract price of work not terminated.
d) Cost claimed or agreed to under this section shall be in accordance with
applicable sections of the laws of the State of Texas, including procurement laws
under the Texas Local Government Code
c. Available Funds — Contingency - Remedies
The City is prohibited by law from making fiscal commitments beyond the term of its current
fiscal period. Therefore, ESCO's compensation is contingent upon the continuing availability of
City appropriations. Payments pursuant to this contract shall only be made from available funds
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encumbered for this Contract, and the City's liability for such payments shall be limited to the
amount remaining of such encumbered funds. If City or federal funds are not appropriated, or
otherwise become unavailable to fund this Contract, the City may immediately terminate the
Contract in whole or in part without further liability in accordance with the Termination for Cause
subsection of the Remedies section of this Contract. All payments are subject to the general
Remedies section of this Contract
d. At any time as described in Section 2.b above.
5. Insurance
Before commencing any Work under this Contract, ESCO shall file with City certificates of
insurance evidencing the coverages as specified below and adhere to the requirements in
Exhibit E: Mandatory Insurance Requirements:
a. It is agreed and understood ESCO shall maintain in full force and effect adequate
commercial general liability insurance and property damage insurance, as well as
workmen's compensation and employer's liability insurance pursuant to the State insurance
requirements as defined below,
b. The ESCO shall obtain, and maintain at all times during the term of this Agreement,
insurance in the following kinds and amounts.
1) Standard Workers' Compensation which complies with the Texas Workers
Compensation Act, and Employer's Liability as required by State statute, including
occupational disease, covering all employees at the work site.
2) General Liability (minimum coverage)
1) Combined single limit of $2,000,000 written on an occurrence basis.
2) The ESCO must purchase additional insurance if claims reduce the annual
aggregate below $2,000,000.
3) Automobile Liability (minimum coverage) in the amount of $1,000,000 combined
single limit
4) Excess Liability in the amount of $1,000,000 combined single limit.
5) The City shall be named as an additional insured on each commercial general
liability policy.
6) The insurance shall include provisions preventing cancellation without 30 calendar
days prior written notice, by certified mail to the Principal Representative
7) ESCO shall be responsible for all claims, damages, losses or expenses, including
attorney's fees, arising out of or resulting from the performance of the Services
contemplated in this Contract, provided that any such claim, damage, loss or
expense is caused by any negligent act, error or omission of ESCO, any Consultant
or associate thereof, or anyone directly or indirectly employed by ESCO. ESCO
shall submit a Certificate of Insurance at the signing of this Contract and also any
notices of Renewal of said Policy as they occur.
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6. Energy Performance Contract
The Parties intend to negotiate an Energy Performance Contract under which the ESCO will
design, install and implement energy and water saving measures which the Parties have agreed
to, and provide certain maintenance and monitoring services. However, nothing in this Contract
should be construed as an obligation on any of the Parties to execute such a contract. The
terms and provisions of such an Energy Performance Contract will be set forth in a separate
contract.
Extent of Agreement
This Contract represents the entire and integrated agreement between City and ESCO and
supersedes all prior negotiations, representations or agreement, either written or oral. This
Contract may be amended only by written instrument signed by the City.
The City and ESCO understand and agree the attachment and exhibits hereto are and shall be
an integral part of this Contract and the terms and provisions thereof are hereby incorporated,
made a part of and shall supplement those recited herein. The terms and provisions of RFP
NO, 2010 -06 Request for QualificationslProposals for Energy Performance Contracting
Services for the City of Corpus Christi, Issued Nov 8, 2010, and ESCO's proposal submitted in
response to same, are hereby incorporated and made a part of this contract. In the event of any
conflict, or variance, the terms and provisions of this printed Agreement shall supersede, govern
and control.
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8. Term
The term of this Contract will become effective upon approval by the City and acceptance by
ESCOs Principal Representative. The term shall end 30 days after signing of the Erie
Performance Contract by the City and the ESCO's Principal Representative or terminatio
accordance with section 4 of this agreement.
Order of Precedence
In the event of conflict or inconsistency between this contract and its exhibits or attachme
such conflicts or inconsistencies shall be resolved by reference to the documents in
following order of priority:
Contract - general terms and conditions
Other exhibits or attachments
THE PARTIES HERETO HAVE EXECUTED THIS CONTRACT
IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto subscribe the
names to this Contract on the date first written above.
City of Corpus Christi ESCO
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Authorized Signature
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Director of Engineering Date
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Assistant C4 Attorney Date
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ATTEST:
Phone /Fax/E -mail
Armando Chapa D
City Secretary
(Corporate Seal)
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EXHIBIT A
Scope of Work
a. Process
This will be an interactive approach in working with City, following these steps:
1) Preliminary Assessment of Technical and Economic Needs and Opportunities
a) Meet with City to establish
Energy Efficiency and Conservaton Committee consisting of 2 City Council
Representatives, City Manager, Assistant City Manager, Finance Manager, City
Engineer, Facilities Management, Street Light Management
• Establish communication protocols
• Establish issue resolution process
Establish peer to peer relationship matrix
• Review City Council briefing process
• Establish tennative City Coucil presentation dates
Review and establish schedule to develop and present the financial plan that will
support the implementation of this project
• Establish recurring review meeting dates for the Energy Efficiency and
Conservation Committee to occur before City Council briefing.
b) Meet with City's key stake holders to establish interests, plans, problems, etc. related
to facilities and operation of facilities.
c) Collect financial data and background to establish the funding model for the energy
savings performance contract.
d) Collect administrative data concerning current plans and strategies to implement
"green" and energy related strategies within the City.
e) Collect data and background information on buildings, equipment and facilities
operation
f) Perform a preliminary walk - through of facilities and interview staff and occupants to
identify potential measures
g) Meet with City to present prelminary findings and establish agreement on measures
to analyze
2) Preliminary Analysis of Measures
a) Establish base year consumption and reconcile with end -use consumption estimates
b) Conduct a preliminary analysis of potential measures
c) Meet with City to present preliminary findings and establish agreement on measures
to further analyze
3) Further Analysis and Audit Report
a) Further analyze measures
b) Develop a draft Technical Energy Audit Report
c) Meet with City to present results
d) Prepare final Technical Energy Audit Report
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4) Energy Performance Contract Proposal
a) Develop energy performance contract proposal
b) Meet with City to present results and negotiate final terms
Scope Guidelines and Requirements
1) Energy Performance Contract Term. The Energy Performance
Contract Terra shall have a term no greater than 25 years and no greater
than the cost - weighted average lifetime of the equipment. A typical term
is 10 -17 years and is governed by financing availability, longevity of
installed measures, and ability for savings to allow a cash -flow to pay for
the desired scope of projects. City's goal is for a term no greater than
fifteen (15) years.
2) Annual Guaranteed Energy and Cost Savings. The annual guarantee
is required for the entire financing term; however City has the option to
terminate the guarantee at any time after the first three years of the
contract term provided the annual guaranteed energy and cost savings
were achieved each prior year. The guarantee is based on cost
savings attributable to all energy saving measures, and must equal or
exceed all project costs each year during the contract period. Annual
project costs include debt service, Contractor fees, maintenance
services, monitoring services, and other services.
3) ESCO shall reserve up to 2% of annually guaranteed savings for City
to hire an independent third -party professional to review the ESCO's
measurement and verification reports and advise City of compliance in
measuring and verifying savings.
4) ESCO to provide assistance to the City in the procurement and
selection of the independent third -party professional to review the
ESCO's measurement and verification reports.
5) Excess Savings. Annual cost savings beyond the guaranteed
minimum savings will be retained by City, and will not be allocated to
shortfalls in other years.
6) Annual Savings Estimates: The annual savings estimates for all
measures must be estimated for each year during the contract period.
7) Allowable cost and savings factors approved for consideration: City
will provide ESCO with sufficient guidance to develop savings
estimates.
a) Payment sources that can be incorporated:
1 Energy and water cost savings
2 Materiallcommodity savings, including scheduled replacement of parts
(only for years that these cost savings are applicable)
3 Outside labor cost savings, including maintenance contracts
4 In -house labor costs
5 Deferred maintenance cost
6 Offset of future capital cost
7 Outside incentive funds (utility incentives, grants, etc.)
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8 Any savings related to maintenance and operation of the facilities will be
limited to those that can be thoroughly documented.
b) Payment sources that may also be considered and negotiated:
1. Utility rebates and incentives
2. Grants (as available) that relate to the scope of work identified
during the development of this project.
3. Current and future capital budgets that may be identified for the
scope of work identified during the development of this project.
c) Additional factors related to establishing savings that cover all costs:
1 Escalation rates that apply to each payment source. These are rates to be
used in cash flow projections for project development purposes.
2 Interest rates (municipal tax - exempt rates for public institutions)
d) The markup costs are presented in Exhibit D: Cost and Pricing, These
rates will be used in the Technical Energy Audit and subsequent Energy
Performance Contract.
c. Collect financiand technical data and background information from Citv concerning
facility operation and energy use for the most recent three years from the effective date of
this Contract as follows.
a) City annual budget reports
b) Department specific operating budgets and actual cost information connected with the
cost to operate and maintain existing systems.
c) Building square footage.
d) Construction data of buildings and major additions including building envelope
e) Utility company invoices
f) Occupancy and usage information
g) Description of all energy - consuming or energy - saving equipment used on the premises,
as available.
h) Description of energy management procedures utilized on the premises
i) Description of any energy - related improvements made or currently being implemented
j) Description of any changes in the structure of the facility or energy -using or water -using
equipment
k) Description of future plans regarding building modifications or equipment modifications
and replacements
I) Drawings, as available (may include mechanical, plumbing, electrical, building
automation and temperature controls, structural, architectural, modifications and
remodels)
m) Original construction submittals and factory data (specifications, pump curves, etc.), as
available
n) Operating engineer logs, maintenance work orders, etc., as available
o) Records of maintenance expenditures on energy -using equipment, including service
contracts
p) Prior energy audits or studies, if any
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City agrees to work diligently to furnish ESCO, upon request, accurate and complete data and
information as available. Where information is not available from City, ESCO will make a
diligent effort to collect such information through the facility inspection, staff interviews, and
utility companies.
ESCO agrees to work diligently to assess validity of information provided and to confirm or
correct the information as needed.
d. Identify potential measures
1) Interview the facility manager, maintenance staff, subcontractors and occupants of each
building regarding:
a) Facility operation, including energy management procedures
b) Equipment maintenance problems
c) Comfort problems and requirements
d) Equipment reliability
e) Projected equipment needs
f) Occupancy and use schedules for the facility and specific equipment.
g) Facility improvements — past, planned and desired
2) Survey major energy -using equipment, including lighting (indoor and outdoor), heating
and heat distribution systems, cooling systems and related equipment, automatic
temperature control systems and equipment, air distribution systems and equipment,
outdoor ventilation systems and equipment; exhaust systems and equipment; hot water
systems, electric motors, transmission and drive systems, special systems
(kitchen /dining equipment, etc.), renewable energy systems, other energy using
systems, water consuming systems (restroom fixtures, water fountains, irrigation
systems, etc.)
3) Perform "late- night" surveys outside of normal business hours or on weekends to
confirm building system and occupancy schedules, if deemed necessary.
4) Develop a preliminary list of potential energy and water saving measures. Consider the
following for each system:
a) Comfort and maintenance problems
b) Energy use, loads, proper sizing, efficiencies and hours of operation
c) Current operating condition
d) Remaining useful life
e) Feasibility of system replacement
f) Hazardous materials and other environmental concerns
g) City's future plans for equipment replacement or building renovations
h) Facility operation and maintenance procedures that could be affected
i) Capability to measure energy performance and verify savings
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City will allow ESCO reasonable access to facility and street lighting staff to ensure
understanding of existing systems and opportunities.
ESCO agrees to work diligently to assess validity of information provided and to confirm or
correct the information as needed.
e. Establish base year consumption and reconcile with end use consumption estimates.
1) Establish base year consumption by examining utility bills for the past three years for
electricity, gas, steam, water, etc. Present base year consumption in terms of energy
units (kWh, kW, ccf, Therms, gallons, or other units used in bills), in terms of dollars, and
in terms of dollars per square foot. Describe the process used to determine the base
year (averaging, selecting most representative contiguous 12 months, etc.). Consult
with facility personnel to account for any anomalous schedule or operating conditions on
billings that could skew the base year representation. ESCO will account for periods of
time when equipment was broken or malfunctioning in calculating the base year.
2) Estimate loading, usage and/or hours of operation for all major end uses of total facility
consumption including, but not limited to: lighting, heating, cooling, motors (fans and
pumps), plug loads, and other major energy and water using equipment. Where loading
or usage are highly uncertain (including variable loads such as cooling), ESCO will use
its best judgment, spot measurements or short-term monitoring. ESCO should not
assume that equipment run hours equal the operating hours of the building(s) or facility
staff estimates.
3) Reconcile annual end -use estimated consumption with the annual base year
consumption. This reconciliation will place reasonable "real- world" limits on potential
savings.
4) Propose adjustments to the baseline for energy and water saving measures that will be
implemented in the future.
Develop a preliminary analysis of potential energy and water saving measures.
This list shall be compiled and submitted to City within 45 calendar days of the execution of
this Contract.
1) List all potential opportunities, whether cost - effective or not. Consider technologies in a
comprehensive approach including, but not limited to: lighting systems,
heatinglventilatinglair conditioning equipment and distribution systems, controls
systems, building envelope, motors, kitchen equipment, pools, renewable energy
systems, other special equipment, irrigation systems, and water saving devices.
2) Identify measures which appear likely to be cost effective and therefore warrant detailed
analysis
3) For each measure, prepare a preliminary estimate of energy or water cost savings
including description of analysis methodology, supporting calculations and assumptions
used to estimate savings.
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g. Meet with City (Energy Efficiency and Conservation Committee Finance and Cit
Council) to Present preliminary findings prior to thorough analysis, Describe how the
projected project economics meet the City's terms for completing the Technical Energy Audit
and Proposal Contract. Discuss assessment of energy use, savings potential, project
opportunities, and potential for developing an energy performance contract. Develop a list
of recommended measures for further analysis. The City shall have the option to reject
calculations of savings, potential savings allowed, or project recommendations.
h. Analyze savings and costs (including operational and maintenance cost) for each
energy and water saving measure.
1) Follow the methodology of ASHRAE or other nationally- recognized authority following
the engineering principle(s) identified for each retrofit option
2) Utilize assumptions, projections and baselines which best represent the true value of
future energy or operational savings. Include accurate marginal costs for each unit of
savings at the time the audit is performed, documentation of material and labor cost
savings, adjustments to the baseline to reflect current conditions at the facility,
calculations which account for the interactive effects of the recommended measures.
3) Use best judgment regarding the employment of instrumentation and recording durations
so as to achieve an accurate and faithful characterization of energy use
4) Use markups and fees stated above in all cost estimates.
5) Develop a preliminary measurement and verification plan for each measure
6) Follow additional guidelines for analysis and report preparation given below
7) Include cost to provide services and complete application for Energy Star Label.
Prepare a Draft Technical Energy Audit Report The report provides an engineering
and economic basis for negotiating a potential Energy Performance Contract
between the City and the ESCO. The draft report shall be completed within 60
calendar days of the date of execution of this Contract. The report shall be
presented to the Energy Efficiency Committee, Finance and City Council. The report
shall include:
1) Overview
a) Contact information
b) Summary table of recommended energy and water saving measures, with
itemization for each measure of total design and construction cost, annual
maintenance costs, the first year cost avoidance (in dollars and energy units),
simple payback and equipment service life
c) Summary of annual energy and water use by fuel type and costs of existing or
base year condition
d) Calculation of cost savings expected if all recommended measures are
implemented and total percentage savings of total facility energy cost.
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e) Description of the existing facility, mechanical and electrical systems
f) Summary description of measures, including estimated costs and savings for each as
detailed above
g) Discussion of measures considered but not investigated in detail
h) Financial structure of the energy savings performance contract.
i) Conclusions and recommendations
2) Base year energy use
a) Description and itemization of current billing rates, including schedules and riders.
b) Summary of all utility bills for all fuel types and water
c) Identification and definition of base year consumption and description of how established
d) Reconciliation of estimated end use consumption (i.e. lighting, cooling, heating, fans,
plug loads, etc) with with base year (include discussion of any unusual findings)
3) l=ull description of each energy and water saving measure including:
a) Written description
1) Existing conditions
2) Description of equipment to be installed and how it will function
3) Include discussion of facility operations and maintenance procedures that will be
affected by installation /implementation.
4) Present the plan for installing or implementing the recommendation.
b. Savings calculations
1) Base year energy use and cost
2) Post- retrofit energy use and cost
3) Savings estimates including analysis methodology, supporting calculations
and assumptions used.
4) Annual savings estimates. The cost savings for all energy saving measures must
be estimated for each year during the contract period. Savings must be able to be
achieved each year (cannot report average annual savings over the term of the
contract).
5) Savings estimates must be limited to savings allowed by the City as
described above.
6) Percent cost - avoidance projected
7) Description and calculations for any proposed rate changes
8) Explanation of how savings interactions between retrofit options are accounted for in
calculations.
9) Operation and maintenance savings, including detailed calculations and description.
Ensure that maintenance savings are only applied in the applicable years and only
during the lifetime of the particular equipment.
10) Business Case Analysis demonstrating the overall performance of the project
including the estimated annual energy savings, utility rates, operations and
maintenance savings, lease purchase rates and project cost.
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11) If computer simulation is used, include a short description and state key input data.
If requested by City, access will be provided to the program and all assumptions and
inputs used, and/or printouts shall be provided of all input files and important output
files and included in the Technical Energy Audit with documentation that explains
how the final savings figures are derived from the simulation program output
printouts
12) If manual calculations are employed, formulas, assumptions and key data shall be
stated.
13)Conclusions, observations, caveats
c. Cost estimate -- detailed scope of the construction work needed, suitable for cost
estimating. Include all anticipated costs associated with installation and
implementation. Provide specifications for major mechanical components as well as
detailed lighting and water fixture counts.
1) Engineering /design costs
2) ESCO /vendor estimates for labor, materials, and equipment; include special provisions,
overtime, etc., as needed to accomplish the work with minimum disruption to the
operations of the facilities.
3) Permit costs
4) Construction management fees
5) Environmental costs or benefits (disposal, avoided emissions, handling of hazardous
materials, etc.)
6) Note that all markups and fees stated in this Contract shall be used in the cost
estimates, unless otherwise documented and justified due to change in scope or size of
project or other unforeseen circumstances.
7) Conclusions, observations, caveats
8) Other cost categories as defined above under "markups" in Section 3b above.
d. Other
1) Estimate of average useful service life of equipment
2) Preliminary commissioning plan
3) Preliminary measurement and verification plan, following the International Performance
Measurement and Verification Protocol (IPMVP), explaining how savings from each
measure is to be measured and verified (stipulated by Contract, utility bill analysis, end -
use measurement and calculation, etc.). The Preliminary M &V plan shall include all
elements provided in Exhibit C: Elements to Include in Measurement Verification
Plan.
4) Discussion of impacts that facility would incur after contract ends. Consider operation
and maintenance impacts, staffing impacts, budget impacts, etc., and identify who is
responsible for maintenance.
5) Compatibility with existing systems. Include the name of the existing controls system, if
new controls systems will have to be compatible with an existing brand of controls. Also
note if a sole- source vendor is established for controls systems.
Page 16 of 27
6) Complete appendices that document the data used to prepare the analyses. Describe
how data were collected.
j. Meet with Cit :
Review the recommendations, savings calculations and impact of the measures on the
operations of the facility. Describe how the projected project economics meet the City's terms
for completing the Technical Energy Audit and Performance Contract Proposal. Discuss the
willingness and capability of City to make capital contributions to the project to improve the
economics of the overall project.
k. Revise Audit as directed by City and deliver a Final Technical Energy Audit to
Finance and City Council
The final report shall be completed and delivered to City within 90 calendar days of the
date of execution of this Contract.
I. Prepare an Energy Performance Contract Proposal (Term Sheet). In
anticipation of ESCO and City entering into an Energy Performance Contract to
design, install, monitor and guarantee the performance of the energy and water
saving measures proposed in the Technical Energy Audit Report, ESCO shall
prepare a proposal for terms to be incorporated in a Energy Performance contract to
include:
1) Project Cost is the total amount City will pay for the project, ESCO's services and
the cost of funding. Costs must be consistent with maximum markups and fees
established above. Costs may include but are not limited to: engineering,
designing, packaging, procuring, installing (from Technical Energy Audit Report
results); performance /payment bond costs; construction management fees;
commissioning costs; maintenance fees; monitoring fees; training fees; legal services;
overhead and profit; other markups.
2) Include a List of Services that will be provided as related to each cost.
3) Expected term of the Energy Performance Contract.
4) Description of how the project will be financed including available interest rates
and financing terms, based on interest rates likely available to City at this time, and
based on a 60 -day and 90 -day lock option.
5) Explanation of how the savings will be calculated and adjusted due to weather
(such as heating and cooling degree days), occupancy or other factors.
Measurement and verification methods must be consistent with the International
Performance Measurement and Verification Protocol 2009.
6) Analysis of annual business case analysis for City during the contract term.
Page 17 of 27
EXHIBIT B
Notice of Acceptance of Technical Energy Audit Report
Notice of Acceptance
Date of Notice
Notice is hereby given that City accepts the Technical Energy Audit and Project
Development Proposal by ESCO, as contemplated in Section 2 of the Technical
Energy Audit and Project Proposal Contract dated
City of Corpus Christi
By
Date
When completely executed, this form is to be sent by certified mail to the ESCO by the
City of Corpus Christi.
Page 18 of 27
EXHIBIT C
Elements to Include in Measurement and Verification Plan
A: Describe the Baseline Development
B: Describe Project Specific Measurement & Verification Plan
C: Describe Post - Installation Verification
D: Describe Periodic Performance Period Verification
Page 19 of 27
EXHIBIT D
Cost and Pricing
In accordance with Exhibit A — Scope of Work, the following facilities owned by the City of
Corpus Christi will be included in the Technical Energy Audit performed by McKinstry:
In addition, there are 17,449 exterior street lights that will be included in the audit.
The total fee for this work is $125,000. This fee includes all labor, materials, travel costs,
overhead and profit required to perform the scope of work defined herein.
As described in the RFQ response, Overhead is calculated as a gross margin percentage of
10% and Profit (Earnings Before Interest and Taxes) is calculated as a gross margin percentage
of 10 %.
The above fee includes a $2,000 allowance for hazardous material assessment. Any
hazardous material assessment above and beyond $2,000 will be the responsibility of the City.
It is mutually acknowledged the City is not required to execute an Energy Performance Contract
for any or all of the facilities audits. However, if the City does not execute an Energy Service
Performance Contract to address Audit Costs for feasible projects, and the Technical Energy
Audit is not terminated in conformance with Section 4, this fee will become due and payable by
the City upon agreement as to the termination costs due.
Labor Rates, including overhead and profit used as a basis for estimate of TEA costs:
,
City Hall
152,361 s ft
Municipal CourUPolice
102,580 scift
Museum of Science and History
85,000 s ft
Central Library
78,400 scift
American Bank Center Complex
486,342 s ft
Airport Complex
177,697 s ft
Health Department
46, 876 s ft
Total:
1,129,256 sqft
In addition, there are 17,449 exterior street lights that will be included in the audit.
The total fee for this work is $125,000. This fee includes all labor, materials, travel costs,
overhead and profit required to perform the scope of work defined herein.
As described in the RFQ response, Overhead is calculated as a gross margin percentage of
10% and Profit (Earnings Before Interest and Taxes) is calculated as a gross margin percentage
of 10 %.
The above fee includes a $2,000 allowance for hazardous material assessment. Any
hazardous material assessment above and beyond $2,000 will be the responsibility of the City.
It is mutually acknowledged the City is not required to execute an Energy Performance Contract
for any or all of the facilities audits. However, if the City does not execute an Energy Service
Performance Contract to address Audit Costs for feasible projects, and the Technical Energy
Audit is not terminated in conformance with Section 4, this fee will become due and payable by
the City upon agreement as to the termination costs due.
Labor Rates, including overhead and profit used as a basis for estimate of TEA costs:
,
-
Project Director
$131.18 /hour
Account Manager
$117.75/hour
Program Manager Sr.
$104.71 /hour
Program Manager
$90.87 /hour
Energy Engineer Sr.
$98.74 /hour
Page 20 of 27
Energy Engineer
$87.73 /hour
Energy Auditor
$67.70 /hour
Commissioning /Controls Engineer
$86.61 /hour
Senior Designer /Engineer
$102.59 /hour
Professional Engineer
$102.82 /hour
Project Engineer
$70.07 /hour
Project Manager Sr.
$112.59/hour
Project Manager
$87.55 /hour
Facility Manager
$96.31 /hour
Estimator
$97.75 /hour
Admin -SR
$67.14 /hour
Admin - Support Staff
$52.45 /hour
Page 21 of 27
Exhibit E
MANDATORY INSURANCE REQUIREMENTS
FOR AIE PROFESSIONAL SERVICESICONSULTANT SERVICES
(Revised October 2010)
A. Consultant must not commence work under this agreement until all insurance
required herein has been obtained and such insurance has been approved by the
City. The Consultant must not allow any subcontractor to commence work until all
similar insurance required of the subcontractor has been obtained.
B. Consultant must furnish to the City's Risk Manager, two (2) copies of Certificates of
Insurance, showing the following minimum coverage's by insurance company(s) acceptable
to the City's Risk Manager. The City must be named as an additional insured for all liability
policies, and a blanket waiver of subrogation is required on all applicable policies.
TYPE OF INSURANCE
MINIMUM INSURANCE COVERAGE
30 -Day Written Notice of Cancellation,
Bodily Injury & Property Damage
non - renewal or material change required
Per occurrence - aggregate
on all certificates
COMMERCIAL GENERAL LIABILITY
$1,000,000 COMBINED SINGLE LIMIT
including:
1. Broad Form
2. Premises - Operations
3. Products/ Completed Operations
4. Contractual Liability
5. Independent Contractors
AUTOMOBILE LIABILITY to included
$1,000,000 COMBINED SINGLE LIMIT
1. Owned vehicles
2.. Hired — Non -owned vehicles
PROFESSIONAL LIABILITY including:
$1,000,000 per claim 1$2,000,000
Coverage provided shall cover all
aggregate
employees, officers, directors and agents
(Defense costs not included in face value
1. Errors and Omissions
of the policy)
If claims made policy, retro date must be
prior to inception of agreement; have
extended reporting period provisions and
identify any limitations regarding who is
an Insured
WORKERS' COMPENSATION
Which Complies with the Texas Workers
Compensation Act
EMPLOYERS' LIABILITY
500,0001500,0001500,000
C. in the event of accidents of any kind, Consultant must furnish the Risk Manager with copies
of all reports within (10) ten days of accident.
Page 22 of 27
D. Consultant must obtain workers' compensation coverage through a licensed insurance
company in accordance with Texas law. The contract for coverage must be written on a
policy and endorsements approved by the Texas Department of Insurance. The coverage
provided must be in amounts sufficient to assure that all workers' compensation obligations
incurred will be promptly met.
E. Consultant's financial integrity is of interest to the City; therefore, subject to
Successful Consultant's right to maintain reasonable deductibles in such amounts as are
approved by the City, Consultant shall obtain and maintain in full force and effect for the
duration of this Contract, and any extension hereof, at Consultant's sole expense, insurance
coverage written on an occurrence basis, by companies authorized and admitted to do
business in the State of Texas and with an A.M. Best's rating of no less than A -VII.
F. The City shall be entitled, upon request and without expense, to receive copies of the
policies, declarations page and all endorsements thereto as they apply to the limits required
by the City, and may require the deletion, revision, or modification of particular policy terms,
conditions, limitations or exclusions (except where policy provisions are established by law
or regulation binding upon either of the parties hereto or the underwriter of any such
policies). Consultant shall be required to comply with any such requests and shall submit a
copy of the replacement certificate of insurance to City at the address provided below within
10 days of the requested change. Consultant shall pay any costs incurred resulting from
said changes. All notices under this Article shall be given to City at the following address:
City of Corpus Christi
Attn: Risk Management
P.O. Box 9277
Corpus Christi, TX 78469 -9277
Fax: (361) 826 -4555
G. Consultant agrees that with respect to the above required insurance, all insurance policies
are to contain or be endorsed to contain the following required provisions:
i. Name the City and its officers, officials, employees, volunteers, and elected
representatives as additional insured by endorsement, as respects operations and
activities of, or on behalf of, the named insured performed under contract with the City,
with the exception of the workers' compensation and professional liability polices;
ii. Provide for an endorsement that the "other insurance" clause shall not apply to the City
of Corpus Christi where the City is an additional insured shown on the policy;
iii. Workers' compensation and employers' liability policies will provide a waiver of
subrogation in favor of the City; and
iv. Provide thirty (30) calendar days advance written notice directly to City of any
suspension, cancellation, non - renewal or material change in coverage, and not less than
ten (10) calendar days advance written notice for nonpayment of premium.
H. Within five (5) calendar days of a suspension, cancellation, or non - renewal of coverage,
Successful Consultant shall provide a replacement Certificate of Insurance and applicable
endorsements to City. City shall have the option to suspend Consultant's performance
should there be a lapse in coverage at any time during this contract. Failure to provide and
to maintain the required insurance shall constitute a material breach of this contract.
Page 23 of 27
I. In addition to any other remedies the City may have upon Consultant's failure to provide and
maintain any insurance or policy endorsements to the extent and within the time herein
required, the City shall have the right to order Consultant to stop work hereunder, and/or
withhold any payment(s) which become due to Consultant hereunder until Consultant
demonstrates compliance with the requirements hereof.
J. Nothing herein contained shall be construed as limiting in any way the extent to which
Successful Consultant may be held responsible for payments of damages to persons or
property resulting from Consultant's or its subcontractors' performance of the work covered
under this agreement.
K. It is agreed that Consultant's insurance shall be deemed primary and non - contributory with
respect to any insurance or self insurance carried by the City of Corpus Christi for liability
arising out of operations under this contract.
L. It is understood and agreed that the insurance required is in addition to and separate from
any other obligation contained in this contract.
I1. INDEMNIFICATION, OBLIGATION TO DEFEND AND HOLD HARMLESS
A. HARMLESS AND DEFEND THE CITY OF CORPUS CHRISTI, AND ITS
OFFICERS, AGENTS, SERVANTS, AND EMPLOYEES, AND EACH OF
THEM AGAINST AND HOLD IT AND THEM HARMLESS FROM ANY
AND ALL LAWSUITS, CLAIMS, DEMANDS, LIABILITIES, LOSSES
AND EXPENSES, INCLUDING COURT COSTS AND ATTORNEYS'
FEES, FOR OR ON ACCOUNT OF ANY INJURY TO ANY PERSON, OR
ANY DEATH AT ANY TIME RESULTING FROM SUCH INJURY, OR
ANY DAMAGE TO ANY PROPERTY, WHICH MAY ARISE OR WHICH
MAY BE ALLEGED TO HAVE ARISEN OUT OF OR IN CONNECTION
WITH THE WORK COVERED BY THIS CONTRACT. THE FOREGOING
INDEMNITY SHALL APPLY EXCEPT IF SUCH INJURY, DEATH OR
DAMAGE IS CAUSED BY THE SOLE NEGLIGENCE OF THE CITY OF
CORPUS CHRISTI, UNMIXED WITH THE FAULT OF ANY OTHER
PARTY.
B. The Consultant shall obtain workers' compensation insurance coverage
through a licensed insurance company or through self - insurance obtained
in accordance with Texas law. If such coverage is obtained through a
licensed insurance company\ the contract for coverage shall be written on a
policy and endorsements approved by the Texas State Board of Insurance.
If such coverage is provided through self - insurance, then within ten (10)
calendar days after the date the City requests that the Consultant sign the
contract documents, the Consultant shall provide the City with a copy of its
certificate of authority to self - insure its workers` compensation coverage, as
well as a letter, signed by the Consultant, stating that the certificate of
authority to self - insure remains in effect and is not the subject of any
revocation proceeding then pending before the Texas Workers'
Compensation Commission. Further, if at any time before final acceptance
of the Work by the City, such certificate of authority to self- insure is revoked
Page 24 of 27
c7
or is made the subject of any proceeding which could result in revocation of
the certificate, then the Consultant shall immediately provide written notice
of such facts to the City, by certified mail, return receipt requested directed
to: City of Corpus Christi, Department of Engineering Services, P. O. Box
9277, Corpus Christi, Texas 78469 - Attention: Contract Administrator.
Whether workers' compensation insurance coverage is provided through a
licensed insurance company or through self - insurance, the coverage
provided must be in an amount sufficient to assure that all workers'
compensation obligations incurred by the Consultant will be promptly met.
Page 25 of 27
rp `�
Cit
Co Ch
CI'T'Y OF CORPUS CHRISTI
DISCLOSURE OF INTEREST
City of Corpus Christi Ordinance 17112, as amended, requires all persons or firms seekingg to do bus
with the City to provide the following information. Every question must be answered. 19, questi
not applicable, answer with "NA ". See reverse side for Filing Requirements, Certifications
definitions.
COMPANY NAME: McKinstry Essention, Inc.
P. O. BOX: P. O. Box 24567, Seattle, 88124
STREET ADDRESS: 5005 3; Avenue South _ CITY-: Seattle____ ______ ____ZIP_
FIRM IS: 1. Corporation uO 2. Partnership B 3. Sole Owner [
4. Association LJ S. Other
DISCLOSURE QUESTIONS
If additional space is necessary, please use the reverse side of this page or attach separate sheet.
1. State the names of each ` employee" of the City of Corpus Christi having an "ownership inte
constituting 3% or more of the ownership in the above named "firm."
Name Job Title and City Departmen
known)
None
2. State the names of each "official" of the City of Corpus Christi having an "ownership inter
constituting 3% or more of the ownership in the above named "firm."
Name Title
None
3. State the names of each "board member" of the City of Corpus Christi having an "ownership inter
constituting 3% or more of the ownership in the above named "firm."
Name Board, Commission or Committe(
None
4. State the names of each employee or officer of a `consultant" for the City of Corpus Christi
worked on any matter related to the subject of this contract and has an "ownership inter
constituting 3 or more of the ownership in the above named "firm."
Name Consultant
None
Page 26 c
FILING REQUIREMENTS
If a person who requests official action on a matter knows that the requested action will confer an
economic benefit on any City official or employee that is distinguishable from the effect that the action
will have on members of the public in general or a substantial segment thereof, you shall disclose that fact
in a signed writing to the City official, employee or body that has been requested to act in the matter,
unless the interest of the City official or employee in the matter is apparent. The disclosure shall also be
made in a signed writing filed with the City Secretary. [Ethics Ordinance Section 2 -349 (d)]
CERTIFICATION
I certify that all information provided is true and correct as of the date of this statement, that I have not
knowingly withheld disclosure of any information requested, and that supplemental statements will be
promptly submitted to the City of C.oxpus_Christi, Texas as changes occur.
Certifying Person:
ar PrW)
Title:
Signature of Certifying Pusan: / . -1 } .. —� Date:
DEFINITIONS
a. "Board member." A member of any board, commission, or committee appointed by the City
Council of the City of Corpus Christi, Texas.
b. "Economic benefit ". An action that is likely to affect an economic interest if it is likely to have an
effect on that interest that is distinguishable from its effect on members of the public in general or a
substantial segment thereof.
c. "Employee." Any person employed by the City of Corpus Christi, Texas either on a full or part -
time basis, but not as an independent contractor.
d. "Firm." Any entity operated for economic gain, whether professional, industrial or commercial, and
whether established to produce or deal with a product or service, including but not limited to, entities
operated in the form of sole proprietorship, as self-employed person, partnership, corporation, joint
stock company, joint venture, receivership or trust, and entities which for purposes of taxation are
treated as non- profit organizations.
e. "Official." The Mayor, members of the City Council, City Manager, Deputy City Manager,
Assistant City Managers, Department and Division Heads, and Municipal Court Judges of the City of
Corpus Christi, Texas.
f. "Ownership Interest." Legal or equitable interest, whether actually or constructively held, in a
firm, including when such interest is held through an agent, trust, estate, or holding entity.
"Constructively held" refers to holdings or control established through voting trusts, proxies, or
special terms of venture or partnership agreements."
g. "Consultant." Any person or firm, such as engineers and architects, hired by the City of Corpus
Christi for the purpose of professional consultation and recommendation.
Page 27 of 27