HomeMy WebLinkAbout05/16/2017 14 Washington State Department of Enterprise Services Agreement, Amendment 1BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDASTATEMENT
Item No. 14.
For Meeting of: May 16, 2017
ITEM TITLE: Resolution authorizing an amendment to interagency agreement
with the Washington Department of Enterprise Services for Project
Management Services on the Citywide LED Streetlight Upgrade
Project
SUBMITTED BY: Joseph Rosenlund, Streets & Traffic Operations Manager, (509)
576-6430
Scott Schafer, Public Works Director
SUMMARY EXPLANATION:
A project to replace approximately 4,000 High Pressure Sodium (HPS) streetlights with LED
streetlights was approved as a Strategic Initiative in the 2017 City of Yakima Budget. The
purpose of this project is to reduce on-going energy and maintenance costs associated with the
City's streetlight system with the added benefit of improved lighting levels that will add to the
safety and security of our City residents.
The Interagency Agreement between the City of Yakima and Washington State Department of
Economic Services (DES) obtains expertise and project management resources that the City
does not have for such a project. As part of this Agreement, the DES will also assist the City in
management of the project as well as monitoring of the energy savings; ensuring that the City
receives the full value of its services from the Energy Services Consultant from project start to
the end of the warranty period.
The Energy Services Consultant selected through DES's contracting process has conducted an
audit of our existing streetlight system and developed a scope of work to implement the project.
They have assisted the City in selecting components for the streetlight upgrades, developed a
cost estimate for the project and funding strategy for implementation, and will assist in obtaining
grants, rebates and other outside funding sources.
The proposed amendment to the I nteragency Agreement is to reflect a cost savings of $4,000
due to a more refined scope of work and the reduction in material costs since the project was
originally proposed by DES back in 2013 (Attached). The cost for DES to provide project
management was reduced from $64,000 to $60,000. This fee was included in the estimated
project cost of $2.1 million as presented in the 2017 Strategic Budget Initiative approved by the
City Council. The actual total cost of this project to upgrade City-wide streetlights to LED is not
O
to exceed $2,886,118.
Attached for City Council review is the amendment to I nteragency Agreement K1411.
with Exhibit "A-1 ", "B-1" and "C-1 "). Exhibit "A-1" of the Agreement describes the Scope of Work
for Management Services in more detail. Exhibit "13-1" of the Agreement describes the Fee
Schedule in more detail. Exhibit "C-1" of the Agreement describes the Scope of Work for
Monitoring Services in more detail.
ITEM BUDGETED:
STRATEGIC PRIORITY:
Yes
Public Safety
APPROVED FOR ,,,
SUBMITTAL: ~City Manager
STAFF RECOMMENDATION:
Adopt resolution
BOARD/COMMITTEE RECOMMENDATION:
ATTACHMENTS:
Description
d Resolution - Interagency Agreement Streetlighting
Upgrade
D Original Interagency Agreement & Resolution
Upload Date
51812017
51412017
Type
RESOLUTION NO. R -2017-
A RESOLUTION authorizing an Amendment to the Interagency Agreement K1411,
(Resolution No. R-2013-047) with the Department of Enterprise Services,
not to exceed $60,000, for project management services on the Citywide
Streetlight Upgrade project.
WHEREAS, the City of Yakima desires to upgrade streetlights throughout the City to
improve public safety and to reduce energy costs; and
WHEREAS, the streetlight upgrade program is identified within the City's adopted 2017
budget; and
WHEREAS, the City does not have the staffing resources or expertise to fully manage a
project of this scope and technicality; and
WHEREAS, under this agreement, the Department of Enterprise Services (DES) will
provide Project Management Services to oversee the lighting upgrades as outlined in
Attachment "A-1" of the amended agreement; and
WHEREAS, the Scope of Work and Budget included in this supplement meet the needs
and requirements of the City of Yakima for this project, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized to execute the Amendment to Interagency
Agreement K1411 with the Department of Enterprise Services, attached hereto and
incorporated herein by this reference, not to exceed Sixty Thousand Dollars ($60,000) to
provide the Project Management Services for the Citywide Streetlight Upgrade Project, as
described in the Agreement.
ADOPTED BY THE CITY COUNCIL this 16th day of May, 2017.
Kathy Coffey, Mayor
ATTEST:
Sonya Claar Tee, City Clerk
INTERAGENCY Amendment Department of Enterprise Services
Date: April 11, 2017
Agreement No: K1411
Project No.: 2017-142
Amendment No: 1
Interagency Agreement Between the
State of Washington
Department of Enterprise Services
and
City of Yakima
The parties to this Agreement, the Department of Enterprise Services, Engineering & Architectural
Services, hereinafter referred to as "DES", and City of Yakima, hereinafter referred to as the
"CLIENT AGENCY", hereby amend the Agreement as follows:
1. Statement of Work
DES shall furnish the necessary personnel and services and otherwise do all things necessary for or
incidental to the performance of the work set forth in Attachment "A-1" and Attachment "C-1",
attached hereto and incorporated herein by reference. Unless otherwise specified, DES shall be
responsible for performing all fiscal and program responsibilities as set forth in Attachment "A-1"
and Attachment "C-1".
Energy/Utility Conservation projects shall be authorized by Amendment to this Agreement.
1.1 City of Yakima — Street Lighting outlined in the Ameresco Energy Services Proposal dated
March 8, 2017.
Attachment "A" Scope of Work Energy/Utility Conservation Projects Management Services is
revised to Attachment "A-1" and Attachment "C" Scope of Work Energy/Utility Conservation
Projects Monitoring Services is revised to Attachment "C-1" to update the Statewide Energy
Performance Contracting Program Master Energy Services Agreement number from Agreement No.
2011-169 to Agreement No. 2015-181, attached hereto and incorporated herein by reference.
3. Period of Performance
Subject to its other provisions, the period of performance of this Agreement shall commence on
April 17, 2013, and be completed on December 31, 2021, unless altered or amended as provided
herein. Interagency Agreement No. K1411 Page 2 of 3
Interagency Agreement No. K 1411 Page 1 of 3
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 proj ect.
For Project Management Services provided by DES under Attachment "A-1" of this Agreement, the
CLIENT AGENCY will pay DES a Project Management Fee for services based on the total project
value per Project Management Fees Schedule set forth in Attachment "B-1".
If the CLIENT AGENCY decides not to proceed with an Energy/Utility Conservation project that
meets the CLIENT AGENCY's cost effective criteria, then the CLIENT AGENCY will be charged a
Termination Fee per Attachment "B-1". The Termination Fee will be based on the estimated Total
Project Value outlined in the Energy Audit and Energy Services Proposal prepared by the Energy
Services Company (ESCO).
If measurement and verification services are requested by the CLIENT AGENCY and provided by
DES under Attachment "C-1" of this Agreement, the CLIENT AGENCY will pay DES $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 CLIENT
AGENCY, after DES has reviewed, approved and sent the invoices to the CLIENT AGENCY for
payment.
4.1 Energy Project Management Fee for the work described in Section 1.1 is $60,000.00.
Anticipated billing date for this Amendment is May 1, 2018.
The new total Agreement value is $60,000.00.
This Amendment also revises the Interagency Reimbursement Costs outlined in Attachment "B" of
the Agreement to reflect the current DES project management fees. A new Attachment `B-1" is
included with this Amendment.
5. Billing Procedure
DES shall submit a single invoice to the CLIENT AGENCY upon substantial completion of each
authorized project, unless a project specified a Special Billing Condition in the Amendment.
Substantial completion of the project will include the delivery and acceptance of closeout documents
and commencement of energy savings notification. Each invoice will clearly indicate that it is for the
services rendered in performance under this Agreement and shall reflect this Agreement and
Amendment number.
DES shall invoice the CLIENT AGENCY for any remaining services within 60 days of the
termination of this Agreement. Interagency Agreement No. K 1411 Page 3 of 3
Interagency Agreement No. K 1411 Page 2 of 3
All sections above have been fully amended and are shown in their entirety.
All other terms and conditions of this Agreement remain in full force and effect. The requirements of
RCW 39.34.030 are satisfied by the underlying Agreement and are incorporated by reference herein.
Each party signatory hereto, having first had the opportunity to read this Amendment and discuss the
same with independent legal counsel, in execution of this document hereby mutually agree to all
terms and conditions contained herein, and as incorporated by reference in the original Agreement.
City of Yakima
Title
K1411IAAamdlcr
Interagency Agreement No. K 1411
Date
Department of Enterprise Services
Engineering & Architectural Services
Roger Wigfield, P. E.
Energy Pro gram Manager
Title Date
Interagency Agreement No. K 1411 Page 3 of 3
ATTACHMENT A-1
Scope of Work
Energy/Utility Conservation Projects
Management Services
Statewide Energy Performance Contracting Program
Master Energy Services Agreement No. 2015-181
DES will provide the following project management services for each specific project for the
CLIENT AGENCY. Each individual project shall be authorized by Amendment to this Agreement.
Assist the CLIENT AGENCY 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.
Assist in negotiating 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. K 1411
8
ATTACHMENT B-1
Fee Schedule
2015-17 Interagency Reimbursement Costs
for Project Management Fees to Administer
Energy/Utility Conservation Projects
The project management fee on projects over $6,000,000 is 1.1% of the project cost. The maximum
DES termination fee is $25,700.
1. These fees cover proj ect management services for energy/utility conservation proj ects managed by
DES'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 CLIENT AGENCY decides not to proceed with the project through DES.
3. If the project meets the CLIENT AGENCY's cost effectiveness criteria and the CLIENT
AGENCY decides not to move forward with a project, then the CLIENT AGENCY will be
invoiced per Attachment B Termination or $25,700.00 whichever is less. If the CLIENT
AGENCY 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 CLIENT AGENCY's established Cost
Effectiveness Criteria, then there is no cost to the CLIENT AGENCY and no further obligation by
the CLIENT AGENCY.
Interagency Agreement No. K 1411
PROJECT
TOTAL PROJECT VALUE
MANAGEMENT FEE
TERMINATION
5,000,001 .......
6, 000, 000 ..................................
$66,000 ................................
25,700
4,000,001 .......
5,000,000 ....................................
65,000 ................................
25,400
3,000,001 .......
4, 000, 000 ....................................
64,000 ................................
25,000
2,000,001 .......
3,000,000 ....................................
60,000 ................................
23,400
1,500,001 .......
2,000,000 ....................................
56,000 ................................
21,800
1,000,001 .......
1, 500, 000 ....................................
49,500 ................................
19,300
900,001......
1,000,000 ....................................
42,000 ................................
16,400
800,001 .........
900,000 ....................................
39,600 ................................
15,400
700,001 .........
800,000 ....................................
36,800 ................................
14,400
600,001 .........
700,000 ....................................
35,000 ................................
13,700
500,001 .........
600, 000 ....................................
32,400 ................................
12,600
400,001 .........
500,000 ....................................
29,000 ................................
11,300
300,001 .........
400, 000 ....................................
24,800 ..................................
9,700
200,001 .........
300,000 ....................................
19,800 ..................................
7,700
100,001 .........
200, 000 ....................................
13,800 ..................................
5,400
50,001 .........
100, 000 ......................................
7,500 ..................................
3,500
20,001 ...........
50, 000 ......................................
4,000 ..................................
2,000
0 ...........
20,000 .....................................
2,000 ..................................
1,000
The project management fee on projects over $6,000,000 is 1.1% of the project cost. The maximum
DES termination fee is $25,700.
1. These fees cover proj ect management services for energy/utility conservation proj ects managed by
DES'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 CLIENT AGENCY decides not to proceed with the project through DES.
3. If the project meets the CLIENT AGENCY's cost effectiveness criteria and the CLIENT
AGENCY decides not to move forward with a project, then the CLIENT AGENCY will be
invoiced per Attachment B Termination or $25,700.00 whichever is less. If the CLIENT
AGENCY 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 CLIENT AGENCY's established Cost
Effectiveness Criteria, then there is no cost to the CLIENT AGENCY and no further obligation by
the CLIENT AGENCY.
Interagency Agreement No. K 1411
ATTACHMENT C-1
Scope of Work
Energy/Utility Conservation Projects
Monitoring Services
Statewide Energy Performance Contracting Program
Master Energy Services Agreement No. 2015-181
If requested DES will provide the following monitoring services for each specific project for the
CLIENT AGENCY.
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 performance and
operation, energy savings and additional opportunities, if any, to reduce energy costs.
Interagency Agreement No. K 1411
IN
RESOLUTION NO. R-2013-047
A RESOLUTION authorizing the execution of an Interagency Agreement with Washington
State Department of Enterprise Services.
WHEREAS, the City of Yakima wishes to upgrade streetlights throughout the City to
improve public safety and reduce energy costs, and
WHEREAS, the streetlight upgrade project is identified within the City's adopted 2013
business plan, and
WHEREAS, the City does not have the resources or expertise to fully manage a project
of this scope and technicality; and
WHEREAS, under this agreement, the Department of Enterprise Services (DES) will
assist the City in selection of an Energy Services Consultant, provide
project management and monitoring services. Now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager and City Clerk of the City of Yakima are hereby authorized and
directed to execute an agreement with the Washington State Department of Enterprise
Services for the purpose mentioned above, a copy of which agreement, entitled
"Interagency Agreement,- Department of Enterprise Services Number K1411" is
attached hereto and by reference made a part hereof, now, therefore,
ADOPTED BY THE CITY COUNCIL this 16th day of April, 2013.
ATTEST:
ity Clerk
Micah CaAley, Mayor
Interagency Agreement Department of Enterprise Services
Date: March 21, 2013 Interagency Agreement No: K1411
Interagency Agreement Between the
Department of Enterprise Services
and
City of Yakima
This Agreement, pursuant to Chapter 39.34 RCW, is made and entered into by and between the
Department of Enterprise Services, Facilities Division, Engineering & Architectural Services,
hereinafter referred to as "DES", and City of Yakima, hereinafter referred to as the "CITY".
The purpose of this Agreement is to establish a vehicle for DES 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
DES shall furnish the necessary personnel and services and otherwise do all things necessary
for or incidental to the performance of the work set forth in Attachment "A" and Attachment
"C", attached hereto and incorporated herein by reference. Unless otherwise specified, DES
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 terms 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 the requirements established under federal grants, the
American Recovery & Reinvestment Act 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.
Interagency Agreement No. K 1411 Page 1 of 5
IN
3. Period of Performance
Subject to its other provisions, the period of'performance of this master- Agreement shall
commence when this Agreement is properly signed, and be completed on December 31,
2017 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.
For Project Management Services provided by DES under Attachment "A" of this
Agreement, the CITY will pay DES 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 DES
under Attachment "C" of this Agreement, the CITY will pay DES $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 DES has reviewed, approved and sent the invoices to the CITY for payment.
5. Billing Procedure
DES shall submit,a single invoice to the CITY upon substantial completion of each
authorized project, unless a project specified a Special Billing Condition in the Amendment.
Substantial completion of the project will include the delivery and acceptance of closeout
documents and commencement of energy savings notification. Each invoice will clearly
indicate that it is for the services rendered in performance under this Agreement and shall,
reflect this Agreement and Amendment number.
DES 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 DES within 90 days of receipt of properly
executed invoice vouchers. The CITY shall notify DES in writing if the CITY cannot pay an
invoice within 90 days.
Interagency Agreement No. K1411 Page 2 of 5
13
7. Non -Discrimination
In the performance of this Agreement, DES 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. DES 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 terms or conditions of employment to include taking affirmative action necessary to
accomplish the objectives of this part and
b) Denying an individual the opportunity to participate in any program provided by this
Agreement through the provision of services, or otherwise afforded others
In the event of DES'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 DES declared
ineligible for further Agreement with the CITY., -DES 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 DES 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, other personnel duly authorized by either party,
the Office of the State Auditor, and federal officials so authorized by law. DES 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:
Sue Ownby, Purchasing Agent
City of Yakima
129 North 2°d Street
Yakima, WA 98901
Telephone (509) 576-6695
The Representative shall be responsible for working with DES, approving billings and
expenses submitted by DES, and accepting any reports from DES.
Interagency Agreement No. K 1411 Page 3 of 5
14
b. The DES Project Manager on this Agreement shall be:
Todd Flynn, P.E.
Department of Enterprise Services
Facilities Division
Engineering and Architectural Services
PO Box 41476 ,
Olympia, WA 98504-1476
Telephone (360) 407-9375
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 DES 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
DES 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 termination.
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 DES shall appoint a
member to the Dispute Board. The CITY and DES 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:
Interagency Agreement No. K 1411 Page 4 of 5
W
a) Applicable Federal and State Statutes and Regulations
b) Terms and Conditions
c) Attachment "A", Protect 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.
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 Yakima
Title
g101r�
Date
Department of Enterprise Services
Facilities Division
:E:ngineerin
e & Architectural Services
Signature
Bill Phillips, P.E.
Name
E&AS Program Manager
Title
D e
The Department of Enterprise Services 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) 407-9363.
K1411CityofYakimaem
CITY CONTRAC r N0:X
RESOLUTION N0:
Interagency Agreement No. K 1411 Page 5 of 5
IR
ATTACHMENT A
Scope of Work
Energy/Utility Conservation Projects
Management Services
Statewide Energy Performance Contracting Program
Master Energy Services Agreement No. 2011-169
DES 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 theselection 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. Assist in negotiating 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. K1411
17
ATTACHMENT B
Fee Schedule
The project management fee on projects over $6,000,000 is 1.1% of the project cost. The
maximum DESAermination fee is $25,700.
1. These fees cover project management services for energy/utility conservation projects managed
by DES'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 DES..
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 Termination or
$25,700 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. K1411 Revised 3/12/2012
2011-13 Interagency Reimbursement Costs
for Project .Management Fees to Administer
Energy/Utility Conservation Projects
PROJECT
TOTAL PROJECT VALUE MANAGEMENT FEE TERMINATION
5,000,001......6,000,000
................................. $66,000 ....................... ........
25,700
4,000,001......
5,000,000
.................................. 65,000 ...............................
25,400
3,000,001......4,000,000
.................................. 64,000 ...............................
25,000
2,000,001......
3,000,000
.................................. 60,000 ...............................
23,400
1,500,001......
2,000,000
....................... :........... 56,000 ...............................
21,800
1,000,00
1,500,000
.................................. 49,500 ...............................
19,300
900,001.....
1,000,000
.................................. 42,000 ...............................
16,400
800,001
...... .. 900,000
.................................. 39,600 ...............................
15,400
700,001...:....
800,000
.................................. 36,800 ...............................
14,400
600,001
........ 700,000
.................................. 35,000 ...............................
13,700
500,001
........ 600,000
.................................. 32,400 ...............................
12,600
400,001
...... .. 500,000
................................... 29,000 ...............................
11,300
300,001
........ 400,000
.................................. 24,800 ...............................
9,700
200,001........
300,000
.................................. 19,800 ........ :............ ...........
7,700
100,001........
200,000
.................................. 13,800 ................................
5,400
'50,001
....... . 100,000
.................................... 7,500 ................................
3,500
20,001..........
50,000
.................................... 4,000 ................................
2,000
0
.......... 20,000
................................... 2,000 ................................
1,000
The project management fee on projects over $6,000,000 is 1.1% of the project cost. The
maximum DESAermination fee is $25,700.
1. These fees cover project management services for energy/utility conservation projects managed
by DES'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 DES..
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 Termination or
$25,700 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. K1411 Revised 3/12/2012
18
ATTACHMENT C
Scope of Work
Energy/Utility Conservation Projects
Monitoring Services
Statewide Energy Performance Contracting Program
Master Energy Services Agreement No. 2011-169
If requested DES 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 performance and
operation, energy savings and additional opportunities, if any, to reduce energy costs.
Interagency Agreement No. K 1411
ID
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENTf
Item No. `
For Meeting of: April 16, 2013
ITEM TITLE: Resolution authorizing an Interagency Agreement with
Washington State Department of Enterprise Services. DES
Agreement No. K1411.
SUBMITTED BY: Joseph Rosenlund, Streets & Traffic Operations Manager
Sue Ownby, Purchasing Manager
CONTACT Susan Knotts, Buyer II
PERSON/TELEPHONE: 575-6095
or
Joseph Rosenlund, Streets & Traffic Operations Manager
(Project Manager)
576-6430
SUMMARY EXPLANATION:
The City of Yakima included a project to replace approximately 4,000 High Pressure Sodium
(HPS) streetlights with Light -Emitting Diodes (LED) fixtures as a high priority in the adopted
2013 Business Plan. The purpose of this project is reduce annual energy and maintenance
costs associated with the City's streetlight system. An added benefit to the upgrade project
will be improved lighting levels that will add to safety and security of City residents. The City
has already replaced over 400 higher wattage streetlights using Federal American Recovery
Reinvestment Act (ARRA) grant funds.
The purpose for the Interagency Agreement between the City of Yakima and Washington
State Department of Enterprise Services (DES) is to obtain expertise and project
management resources that the city does not have for such a project. The DES will assist
the City in selecting an Energy Service Consultant from their prequalified list of companies.
The Energy Services Consultant is needed to conduct an audit of our existing streetlight
system, assist the City in selecting the best components for the streetlight upgrades,
develop a cost estimate for the project, develop a funding strategy for implementation, and
assist in obtaining grants, power company rebates and other outside funding sources. The
2012 power bill for street lighting was about $325,000. Part of the financing strategy will be
to use estimated power savings to pay debt service.
If so authorized, this agreement also allows DES to assist the City in management of the
construction; monitoring of energy savings; and making sure that the City receives the full
value of its services from the Energy Services Consultant from project start through to the
end of the warranty period.
N9
The anticipated cost of the DES agreement is based on the project value (estimated at $2 to
$4 million) and is expected to be in range of $56,000 to $64,000 (Attachment B). If the
streetlight system audit does not meet established cost effectiveness criteria, there will be
no cost or further obligation to the City.
Over the life of this project, Council will be asked to authorize transactions at three different
times. The first is today's agreement, which engages DES to begin the process. The second
will be to select and Energy Services Consultant and contract for the initial energy audit.
The third will be to authorize a project, and will include necessary legislation to complete the
project and the financing plan.
Resolution X Ordinance
Other Interagency
(specify) Agreement
Contract: X Mail to: Todd Flynn, P.E., DES Facilities Div, PO Box 41476,
Olympia, WA 98504-1476
Contract Term: 04/16/13 to Amount: TBD - See Fee Expiration Date: Completion
12/31/17 Schedule Date 12/31/17
Insurance Required? No
Funding Possible grant and project energy
Source: savings. Agreement must precede grant Phone: 360-407-9375
request.
APPROVED FOR
SUBMITTAL: City Manager
STAFF RECOMMENDATION:
Adopt Resolution.
BOARD/COMMISSION RECOMMENDATION:
ATTACHMENTS:
Click to download
❑ Resolution for DES agreement
❑ DES Interagency Agreement K1411