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HomeMy WebLinkAboutCOW 2011-02-14 Item 4C - Agreement - Energy and Lighting Upgrades with WA Department of General Administration COUNCIL AGENDA SYNOPSIS ,1Lq y, Initials ITEM IVO. V (1X Meeting Date 1 Prepared by 1 M. ,i eview Council review O 1' t t 6 1 02/14/11 1 BM I 1 i. 1 a 02/22/11 I BM I I 1 1 4. a: I� O. ITEM INFORMATION CAS NUMBER: 11-014 I STAFF SPONSOR: BRANDON MILES I ORIGINAL AGENDA DATE: 2/14/11 END;\ TI'I ?ICI TITLE Authorize the Mayor to sign an Interagency Agreement with Washington State Department of General Administration to utilize Performance Contracting for lighting upgrades to City facilities. CA i I?GORY Discussion N Motion Resolution Ordinance Bid Award Public Hearing n Other Mtg Date 02/14/11 Mtg Date 02/22/11 Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date SPONSOR Council Mayor Achy Svcs DCD Finance Fire Legal P&R Police NV SPONSOR'S In 2010 the City accepted a grant in the amount of $129,500 from the Washington State SUMMARY Department of Commerce to complete energy upgrades to various city facilities. The proposed energy upgrades are basic improvements to lighting and installation of motion sensors that will reduce energy use and costs. The work will occur at City Hall, 6300 Building, the Community Center and the parking lot lights at Fort Dent. Staff proposes to contract with the State for peformance contracting to complete the work. Ri ?\'tK\VI?D BY U COW Mtg. CA &P Cmte F &S Cmte Transportation Cmte n Utilities Cmte Arts Comm. Parks Comm. Planning Comm. DATE: 2/14/11 COMMITTEE CHAIR: VERNA SEAL RECOMMENDATIONS: SPONSOR /ADMIN. Department of Community Development COMMITTEE Unanimous Approval; Forward to Committee of the Whole COST°IMPACT FUND SOURCE ExPI REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $15,387 $58,153 $0 Fund Source: GREEN INITATIVES, MAYOR'S OFFICE Comments: The City's contribution will be offset by any additional utility rebates the City receives MTG. DATE RECOR D_OF COUNCIL ACTION 2/14/11 2/22/11 MTG. ATTACHMENTS 2/14/11 Interagency Agreement, with Attachments A, B, and C Scope of Work 2/22/11 29 30 fLq s City of Tukwila f,4 Jim Haggerton, Mayor o. ='r INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Community Affairs and Parks Committee FROM: Brandon Miles, Senior Planner DATE: February 7, 2011 SUBJECT: Lighting Upgrades to City Facilities Interagency Agreement with Washington State Department of General Administration ISSUE Authorizing the Mayor to enter into an interagency agreement with Washington State Department of General Administration (GA) for the completion of energy upgrades to City Hall, the 6300 Building, parking lot lights at Fort Dent and lighting upgrades at the Community Center. BACKGROUND In 2010, the Mayor, with authorization from the City Council, accepted a grant in the amount of $129,500 from the Washington State Department of Commerce to complete energy upgrades to various city facilities. The proposed energy upgrades are basic improvements to lighting and installation of motion sensors that will reduce energy use and costs. The work will occur at City Hall, 6300 Building, the Community Center and the parking lot lights at Fort Dent'. In order to complete the energy upgrades, City staff is proposing that the City utilize performance contracting with the State of Washington Department of General Administration (GA). Performance contracting is a cost effective method of completing energy upgrades to city facilities. The method combines the design /build process typically used by the City into a streamlined process. The City will select an Energy Service Company (ESCO), preapproved by the State, to complete the energy upgrades. The ESCO is then responsible for designing and completing the energy upgrades at a guaranteed price. Any cost overruns above the contingency are borne by the ESCO and not the City. The ESCO will also provide guaranteed energy savings to the City. Many cities lack the funds to complete energy upgrades and use performance contracting as way to address this issue. In these situations the ESCO completes the energy upgrades and then the energy savings from the project are used to pay for the energy upgrades. If the energy upgrades do not materialize, the ESCO is responsible for making up the difference. City staff has met with Ameresco /Quantum, an ESCO, to look at completing the City's energy upgrade project. They have projected the following energy and financial savings for the City projects: Per our agreement with Starfire Sports, the City is responsible for the parking lot, including lighting. 31 INFORMATIONAL MEMO Page 2 Location Energy Savings (in Annual Dollar kWh Savings City Hall and 109,634 $9,846 6300 Building Fort Dent Parking 25,623 $2,280 Lot Community 65,011 $4,244 Center, Parking Lot and Internal Totals 200,268 1 $16,372 The total project cost, with contingency, is $163,904. The table below shows the sources of funds for the project. Over 90 percent of the costs will be paid for by our grant or energy rebates from Puget Sound Energy and Seattle City Light. The City will provide $15,387 of budgeted funds to complete the project. Total Project Cost 1 EEBCG Grant Funds 1 Utility Rebate 1 City Funds 1 1 $163,904 1 $129,500 1 $19,017 1 $15,387 1 We have conservatively estimated that the City will receive a 20% utility rebate for construction related activities. If we receive more than anticipated, the additional funds would go to reduce the City's match. Thus, no more than $15,387 of City funds would be expended for this project. This would represent 26% of funds budgeted for this project in 2011 (Budget Line Item #000.03.513.100.45.56). The City will not be contracting directly with Ameresco /Quantum to complete the project, but instead will be contracting with GA. GA will provide contract administration and project management for the City's energy upgrade project. GA will also assist the City in completing an energy savings review one -year from the date that our project is completed. This will help us to determine if the energy savings forecasted are being realized. DISCUSSION Contracting with the State of Washington allows the City to quickly complete our energy upgrades while at the same time ensuring that we realize the predicted financial savings. As noted, the City will be providing a cash match of $15,387 to complete the energy upgrade project. Based on the projected energy savings listed above, the City will recoup its initial investment in approximately 11 months. After that the City will see a positive cash flow from the completed energy upgrade project. If we looked at this as an investment opportunity the City will see 106% return on our $15,387 investment. The performance contracting method is a new tool that the City could use in the future for energy upgrades to City facilities. If this project proves to be successful, staff hopes to work with GA to upgrade other City facilities and use the energy savings from those projects to pay for the improvements. 2 Funds will come from the Green Initiatives Fund in the Mayor's Office Budget 3 The City will be providing an additional $14,500 of "In- Kind" services for the project. The "In- Kind" includes using existing staffing to administer that grant and to complete the work. 3 2 W:12011 Info MemoslEnergyGrant.doc INFORMATIONAL MEMO Page 3 The lighting improvements being completed will also be an upgrade at all the facilities. Both the Community Center and Fort Dent have light level deficiencies that will be addressed as part of this project. Finally, completing the energy upgrades allows the City to meet the greenhouse gas reduction goals set by City Council Resolution #1649 which calls for a 50 percent reduction of City emissions by 2020. RECOMMENDATION The Council is being asked to approve the contract and consider this item at the February 14, 2011 Committee of the Whole meeting and subsequent February 22, 2011 Regular Meeting. The item has been placed on tonight's Committee of the Whole meeting, and can be withdrawn if the Committee has concerns. Staff is asking to move this to the Committee of the Whole tonight because the Department of Commerce wants the City to expend our funds by the end of May. If the Council acts at the February 22, 2011 Regular meeting we can start construction as early as March 1. ATTACHMENTS Interagency Agreement, with Attachments A, B, and C Detailed Scope of Work to be performed W:12011 Info MemoslEnergyGrant.doc 33 34 Interagency Agreement Department of General Administration Date: January 12. 2011 Interagency Agreement No: 2011- ERG -560 Interagency Agreement Between the Department of General Administration and City of Tukwila This Agreement, pursuant to Chapter 39.34 RCW, is made and entered into by and between the Department of General Administration, Facilities Division, Engineering Architectural Services, hereinafter referred to as "GA and City of Tukwila, hereinafter referred to as the "CITY The purpose of this Agreement is to establish a vehicle for GA to provide future Energy/Utility Conservation Project Management and Monitoring Services to the CITY and to authorize the development of the energy services proposal. Now therefore, in consideration of the terms and conditions contained herein, or attached and incorporated by reference and made a part hereof, the above -named parties mutually agree as follows: 1. Statement of Work GA shall furnish the necessary personnel and services and otherwise do all things necessary for or incidental to the perfolnrance of the work set forth in Attachment "A" and Attachment "C attached. hereto and incorporated herein by reference. Unless otherwise specified, GA shall be responsible for performing all fiscal and program responsibilities as set forth in Attachment "A" and Attachment "C Energy/Utility Conservation projects shall be authorized by Amendment to this Agreement. 2. Terms and Conditions All rights and obligations of the parties to this Agreement shall be subject to and governed by the teuris and conditions contained in the text of this. Agreement. The CITY shall provide the Energy Services Company (ESCO) with any additional contract language necessary to comply with federal requirements under the American Recovery Reinvestment At of 2009 (ARRA) and the Energy Efficiency and Conservation Block Grant (EECBG). The ESCO and their subcontractors are required to comply with all applicable federal regulations and reporting procedures. 3. Period of Performance Subject to its other provisions, the period of perfonnance of this master Agreement shall commence when this Agreement is properly signed, and be completed on December 31, 2013 unless altered or amended as provided herein. 4. Consideration Compensation under this Agreement shall be by Amendment to this Agreement for each authorized project. Each Amendment will include a payment schedule for the specific project. Interagency Agreement No. 2011- ERG -560 Page 1 of 4 35 For Project Management Services provided by GA under Attachment "A" of this Agreement, the CITY will pay GA a Project Management Fee for services based on the total project value per Project Management Fees Schedule set forth in Attachment "B If the CITY decides not to proceed with an Energy /Utility Conservation project that meets CITY's cost effective criteria, then the CITY will be charged a Termination Fee per Attachment `B The Termination Fee will be based on the estimated Total Project Value outlined in the Energy Audit and Energy Services Proposal prepared by the ESCO. If monitoring and verification services are requested by the CITY and provided by GA under Attachment "C" of this Agreement, the CITY will pay GA $2,000.00 annually for each year of monitoring and verification services requested. Compensation for services provided by the ESCO shall be paid directly to the ESCO by the CITY, after GA has reviewed, approved and sent the invoices to the CITY for payment. 5. Billing Procedure GA shall submit a single invoice to the CITY upon completion of each authorized project, unless a project specifies a Special Billing Condition in the Amendment. Each invoice will indicate clearly that it is for the services rendered in performance under this Agreement and shall reflect the Agreement number. GA will invoice for any remaining. services within 60 days of the termination of this Agreement. 6. Payment Procedure The CITY shall pay all invoices received from GA within 90 days of receipt of properly executed invoice vouchers. The CITY shall notify GA in writing if the CITY cannot pay an invoice within 90 days. 7. Non Discrimination In the performance of this Agreement, GA shall comply with the provisions of Title VI of the Civil Rights Act of 1964 (42 USC 200d), Section 504 of the Rehabilitation Act of 1973 (29 USC 794), and Chapter 49.60 RCW, as now or hereafter amended. GA shall not discriminate on the grounds of race, color, national origin, sex, religion, marital status, age, creed, Vietnam -Era and Disabled Veterans status, or the presence of any sensory, mental, or physical disability in: a) Any terns or conditions of employment to include taking affirmative action necessary to accomplish the objectives of this part and b) Denying an individual the opportunity ity to participate in any program provided by this Agreement through the provision of services, or otherwise afforded others. In the event of GA's non compliance or refusal to comply with the above provisions, this Agreement may be rescinded, canceled, or terminated in whole or in part, and GA declared ineligible for further Agreement with the CITY. GA shall, however, be given a reasonable time in which to cure this noncompliance. Any dispute may be resolved in accordance with the "Disputes" procedure set forth therein. 8. Records Maintenance The CITY and GA shall each maintain books, records, documents, and other evidence that sufficiently and properly reflect all direct and indirect costs expended by either party in the performance of the services described herein. These records shall be subject to inspection, review, or audit by personnel of both parties, Interagency Agreement No. 2011- ERG -560 Page 2 of 4 36 other personnel duly authorized by either party, the Office of the State Auditor, and federal officials so authorized.by law. GA will retain all books, records, documents, and other material relevant to this agreement for six years after expiration; and the Office of the State Auditor, federal auditors, and any persons duly authorized by the parties shall have full access and the right to examine any of these materials during this period. 9. Contract Management a. The CITY Representative on this Agreement shall be: Brandon 3. Miles, Senior Planner City of Tukwila Department of Connnnmity Development 6300 Southcenter Blvd., Suite 100 Tukwila, WA 98188 -8548 Telephone (206) 431 -3684 The Representative shall be responsible for working with GA, approving billings and expenses submitted by GA, and accepting any reports from GA. b. The GA Project Manager on this Agreement shall be: Todd Flynn, P.E. Dept. of General Administration Fadilities Division Engineering and Architectural Services PO Box 41012 Olympia, WA 98504 -1012 Telephone (360) 902 -7251 Todd Flynn will be the contact person for all communications regarding the conduct of work under this Agreement. 10. Hold Harmless Each party to this Agreement shall be responsible for its own acts and /or omissions and those of its officers, employees and agents. No party to this Agreement shall be responsible for the acts and/or omissions of entities or individuals not a party to this Agreement. 11. Agreement Alterations and Amendments The CITY and GA may mutually amend this Agreement. Such Amendments shall not be binding unless they are in writing and signed by personnel authorized to bind the CITY and GA or their respective delegates. 12. Termination Except as otherwise provided in this Agreement, either party may terminate this Agreement upon thirty (30) days written notification. If this Agreement is so terminated, the terminating party shall be liable only for performance in accordance with the terms of this Agreement for performance rendered prior to the effective date of tennination. Interagency Agreement No. 2011- ERG -560 Page 3 of 4 37 13. Disputes If a dispute arises under this Agreement, it shall be determined in the following manner: The CITY shall appoint a member to the Dispute Board. The Director of GA shall appoint a member to the Dispute Board. The CITY and GA shall jointly appoint a third member to the Dispute Board. The Dispute Board shall evaluate the dispute and make a determination of the dispute. The determination of the Dispute Board shall be final and binding on the parties hereto, 14. Order of Precedence In the event of an inconsistency in this Agreement, unless otherwise provided herein, the inconsistency shall be resolved by giving precedence in the following order: a) Applicable Federal and State Statutes and Regulations b) Terms and Conditions c) Attachment "A Project Management Scope of Work; Attachments "B Project Management Fees; and Attachment "C Monitoring Services Scope of Work, and d) Any other provisions of the Agreement incorporated by reference. 15. All Writings Contained Herein This Agreement contains all the terms and conditions agreed upon by the parties. No other understandings, oral or otherwise, regarding the subject matter of this Agreement shall be deemed to exist or to bind any of the parties hereto. AUTHORIZATION TO PROCEED Agreed to and signed by: City of Tukwila Department of General Administration Facilities Division Engineering Architectural Services Signature Signature Roger Wiefield. P.E. Name Name Energy Program Manager Title Title Date Date The Department of General Administration provides equal access for all people without regard to race, creed, color, religion, national origin, age, gender, sex, marital status, or disability. Contract information is available in alternative formats. For more information, please call Eddie Miller at (360) 902-7219. 2011560IAAem REVIEWED BY GA CFO 1/10/11 Interagency Agreement No. 2011 ERG -560 Page 4 of 4 38 ATTACHMENT A Scope of Work Energy/Utility Conservation Projects Management Services Statewide Energy Performance Contracting Program Master Energy Services Agreement No. 2009 -151 GA will provide the following project management services for each specific project for the CITY. Each individual project shall be authorized by Amendment to this Agreement. 1. Assist the CITY in the selection of an Energy Service Company (ESCO) consistent with the requirements of RCW 39.35A for local governments; or 39.35C for state agencies and school districts. 2. Assist in identifying potential energy /utility conservation measures and estimated cost savings. 3. Negotiate scope of work and fee for ESCO audit of the facility(s). 4. Assist in identifying appropriate project funding sources and .assist with obtaining project funding. 5. Negotiate the technical, financial and legal issues associated with the ESCO's Energy Services Proposal. 6. Review and recommend approval of ESCO energy/utility audits and Energy Services Proposals. 7. Provide assistance during the design, construction and commissioning processes. 8. Review and approve the ESCO invoice vouchers for payment. 9. Assist with final project acceptance. 10. Provide other services as required to complete a successful energy performance contract. Interagency Agreement No. 2411 -IRG -560 39 ATTACHMENT B 2009-11 Interagency Reimbursement Costs for Project Management Fees to Administer Energy/Utility Conservation Projects PROJECT TOTAL PROJECT VALUE MANAGEMENT FEE TERMINATION $5,000,000 or more. 1.1% of project cost $25,500 Below 5,000,000 $68,800 $25,500 fl 4,000,000 64,900 23,600 3,000,000 59,900 21,700 2,000,000 52,800 19,600 1,500,000 47,800 17,150 1,000,000 40,800 16,150 900,000 38,900 15,000 800,000 36,900 13,950 700,000 34,600 12,800 600,000 31,900 11,500 500,000 28,700 10,100 400,000 24,800 8,800 300,000 19,800 7,300 200,000 10,500 4,400 100,000 6,500 3,000 50,000 4,000 2,000 20,000 2,000 1,000 1. These fees cover project management services for energy /utility conservation projects managed by GA's Energy Program. 2. Termination fees cover the selection and project management costs associated with managing the ESCO's investment grade audit and proposal that identifies cost effective conservation measures if the CITY decides not to proceed with the project through GA. 3. If the project meets the CITY' s cost effectiveness criteria and the CITY decides not to move forward with a project, then the CITY will be invoiced per Attachment B Telluination or $25,500.00 whichever is less. If the CITY decides to proceed with the project then the Agreement will be amended per Attachment B for Project Management Fee, 4. If the audit fails to produce a project that meets the CITY's established Cost Effectiveness Criteria, then there is no cost to the CITY and no further obligation by the CITY. Interagency Agreement No. 2011 -ERG -560 40 ATTACHMENT C Scope of Work Energy /Utility Conservation Projects Monitoring Services Statewide Energy Performance Contracting Program Master Energy Services Agreement No. 2009 -151 If requested GA will provide the following monitoring services for each specific project for the CITY. 1. Monitor actual energy use and dollar costs, compare with the ESCO's annual Measurement. and Verification (M &V) report and any ESCO guarantee, resolve differences, if needed, and approve any vouchers for payment. 2. Monitor facility operations including any changes in operating hours, changes in square footage, additional energy consuming equipment and negotiate changes in baseline energy use which may impact energy savings. 3. Provide annual letter report describing the ESCO's performance, equipment perfounance and operation, energy savings and additional opportunities, if any, to reduce energy costs. Interagency Agreement No. 2011- ERG -560 41 SCOPE OF WORK City Hall Energy Upgrades Retrofit approximately 460 fluorescent fixtures with reduced wattage lamps and ballasts. Install approximately 16 occupancy sensors in areas of sporadic use. Fort Dent Park Lot Replace approximately 57 metal halide fixtures in the parking lot with new fixtures including T -5 lamps and electronic ballasts. Tukwila Community Center Park Lot Liahts Replace approximately 27 metal halide fixtures in the parking lot with new fixtures including T -5 lamps and electronic ballasts. 6300 Building Energy Upgrades Retrofit three fluorescent fixtures with T -8 lamps and electronic ballasts. Replace the fluorescent fixture in the elevator with new including T -8 lamps and ballasts. Install approximately 23 occupancy sensors in areas of sporadic use. Replace four exit signs with LED fixtures. Tukwila Community Center (Optional) OPTIONAL Continaent on Bids and on receiving rebates from utility providers. We propose doing additional energy upgrades at the City's Community Center. The work would include all or some of the items listed below: Replace 26 metal halide fixtures in the gymnasium and corridor with six lamp T -8 fixtures and high output ballasts. Replace eight incandescent lamps and five metal halide fixtures near the rear entry with compact fluorescent. De- commission seven metal halide fixtures near the rear entry. The total amount of work to be completed will be determined by any remaining grant funds once the initial scope of work is complete. 42