11/19/2019 06I Ratifying Execution of Change Order, Contract 2016-238; LED Street Light Upgrade Completion a\'4\lyy bxk ik 1
PP1-:4d
PPP
g.
A
PPPPPP+Pd s'
lii it
tYlltYlA.\ta.
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 6.1.
For Meeting of: November 19, 2019
ITEM TITLE: Resolution ratifying the City Manager's execution of Change Order
No. 1 to City Contract 2016-238 for the completion of the City-wide
LED Street Light Upgrade Project
SUBMITTED BY: Scott Schafer, Public Works Director- (509) 576-6411
SUMMARY EXPLANATION:
The City of Yakima (City) began a City-wide effort in upgrading its high-pressure sodium street
lights to LED in order to provide the community higher quality lighting, enhanced security for our
residents, reduction in crimes of opportunity, and the reduction of energy and maintenance costs
by 50% to 60%.
The City entered into Agreement No. 2017-142 A(1)with the Washington Department of
Enterprise Services (DES). The City then selected Ameresco, a contractor providing services to
DES, to provide a detailed audit of the City's lighting system, cost estimates and project
performance and management. Approximately 4,700 lights were to be upgraded. The project
began in May, 2017 with the anticipated projected completion date of December, 2017. The
project was estimated to cost$2.4 million.
Approximately halfway into the project, it became known to Ameresco and the City that there was
an issue involving Washington State Labor and Industries (L&I). L&I advised the City and
Ameresco that full compliance with National Electric Code requirements would be required for all
work performed on all Utility-owned poles and all City-owned wooden light poles and that each of
the poles would need to have a service disconnect device installed between the transformer and
the light fixture. Pacific Power owned 1 ,400 wooden poles and the City owned approximately
900 wooden light poles. Compliance with the L&I service disconnect requirement would add
significant time and an additional $1.7 million to the cost of the project. The project came to a
complete stop. The parties to the lighting contract began extensive negotiations to attempt to
resolve the installation issues and determine how the additional costs would be allocated. It was
the City's contention that if a detailed audit had been conducted by Ameresco, as required by the
contract, the L&I issue would have been identified prior to the start of the project.
At the end of April, 2019, HB 1594 was signed by the Governor, eliminating L&I's regulatory
authority over utility poles owned by Pacific Power. This meant that no disconnects were required
2
on the utility-owned poles. This legislation saved a significant amount in additional installation time
and costs from those originally projected for the L&I compliance. However, L&I still remained the
control authority over the wood utility poles owned by the City, still requiring service disconnects
and ground wire installation work for those poles.
Ameresco submitted an estimated additional cost of$1,011 ,420 for the installation of service
disconnects and grounding conductors for approximately 900 City-owned poles. This additional
cost is associated with the L&I regulatory requirements determined to be necessary for
completing the lighting installation on the City poles. This cost in addition to the original cost of
the project outlined in the City of Yakima's agreement with DES. Through extensive negotiations
the additional cost to the City was reduced to $579,749. Furthermore DES, through an
Interagency Amendment, has waived their Project Management Fee in the amount of$60,000 to
assist in reducing the financial burden endured by the City. Applying the DES reimbursement of
its fee to the total additional cost to the City to complete the LED Upgrade project, the total
additional cost to complete the project and therefore to realize the full energy cost savings the
project will provide is further reduced to $519,749.
Attached to the Resolution is Change Order No. 1 and I nteragencyAmendment for City Council
review. The remaining project is scheduled to be completed by October 2020. The City will
issue a bond for the cost of this project using recognized energy savings to help offset the annual
debt service. To expedite the completion of this long-delayed project and get the contractor back
to work without further delay, the Change Order and Interagency Amendment were signed ahead
of the next City Council meeting and are now submitted for City Council ratification.
ITEM BUDGETED: No
STRATEGIC PRIORITY: Public Safety
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Adopt Resolution
ATTACHMENTS:
Description Upload Date Type
D Resolution 1111;2019 Resolution
D Charge Order No 1 11/112019 Contract
6 Interagency Amendment 11/1,2019 Contract
3
RESOLUTION NO. R-2019-
A RESOLUTION ratifying the City Manager's execution of Change Order No. 1 of City
Contract 2016-238 for the completion of the City-wide LED Street Light
Upgrade Project.
WHEREAS, the City of Yakima (City) began a City-wide effort in upgrading its high-
pressure sodium street lights to LED in order to provide the community better quality of lighting,
reduction in crimes of opportunity, security for our residents and the reduction of energy costs by
50% to 60%; and
WHEREAS, the City entered into Agreement No. 2017-142 A (1) with the Department of
Enterprise Services (DES) and selected Ameresco, a contractor with DES, to provide a detailed
audit of the City's lighting system, cost estimates, construction and project management; and
WHEREAS, approximately 4,700 street lights were to be upgraded with the project
beginning in May, 2017 and projected to be complete December, 2017, at an estimated cost of
$2.4 million dollars; and
WHEREAS, approximately halfway into the project, it became known to Ameresco and
the City that there was an issue involving Washington State Labor and Industries (L&I) and
National Electrical Code compliance during the lighting project; L&I required re-wiring from all
Utility-owned poles and that all City-owned wooden light poles have a service disconnect device
installed between the power source and the light fixture.; Pacific Power owned 1,400 wooden
poles and the City owned approximately 900 wooden light poles; and
WHEREAS, the L&I service disconnect requirement added significant time and an
additional $1.7 million dollars to the cost of the project, causing the project to come to a complete
stop while the parties negotiated the allocation of the additional expenses; and
WHEREAS, during the negotiation period NB 1594 was signed by the Governor near the
end of April 2019, eliminating L&I's regulatory authority over utility poles owned by Pacific Power
and thereby reducing the number of disconnects and additional wiring required, as well as the
amount in estimated additional costs; and
WHEREAS, L&I remains the control authority over the wooden utility poles owned by the
City that require the additional service disconnects and grounding requirements; and
WHEREAS, the additional cost for the required service disconnects and grounding
conductors for approximately 900 City-owned poles was estimated at $1,011,420; and
WHEREAS, through extensive negotiations with Ameresco and DES, the additional cost
to the City was reduced to $579,749; and
WHEREAS, Change Order No. 1 of City Contract 2016-238 allows for the LED Upgrade
project to proceed with a scheduled completion date of October 2020; and
WHEREAS, DES has agreed to waive their Project Management Fee in the amount of
$60,000 to assist in further reducing the financial burden endured by the City for the extra work
required to complete the project, further reducing the additional cost to $519,749; and
4
WHEREAS, to expedite this long-delayed project and to get the contractors working as
soon as possible as to complete the lighting installation and more quickly appreciate the full
potential savings in electrical costs, attached and incorporated the Change Order was signed
ahead of the next City Council meeting and now requires ratification by City Council; and
WHEREAS, the City Council finds that it is in the best interest of the City of Yakima to
proceed with completing the City-wide LED Street Light Upgrade Project and to ratify the Change
Order for the costs of the remaining lighting improvements; now, therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager's execution of Change Order No. 1, attached hereto and incorporated herein
by this reference, in the amount of Five Hundred Seventy-Nine Thousand Seven Hundred Forty
Nine Dollars ($579,749) for the completion of the City-wide LED Street Light Upgrade Project
(City Contract 2016-238) is ratified by the City Council.
ADOPTED BY THE CITY COUNCIL this 19'h day of November, 2019.
ATTEST: Kathy Coffey, Mayor
Sonya Clear Tee, City Clerk
5
,,sittpk44,
STATE F ASH1 T
T I 1
1500 Jefferson St SE,Olympia, WA 98501
PO Box 41476, Olympia,WA 95504-1476
October 23, 2019
TO: Scott Schafer, City of Yakima
FROM: Kim Obi, Contracts Specialist, (360)407-8273
RE Agreement No. 2017-142 A(1), Amendment No. 2
Project No, 2017-142 G(1-1), Change Order No. 1
City of Yakima—Street Lighting
IAA No. K1411
Ameresco, Inc.
SUBJECT: Funding Approval
The Dept. of Enterprise Services (DES), Energy Program, requires funding approval for the above
referenced contract documents. The amount required is as follows:
Total Cost of Change Order No. 1 $ 682,021.00
Existing Contingency $ (102,272.00)
Total New Funding Requested S 579,749.00
In accordance with the provisions of RCW 43.88, the signature affixed below certifies to the
DES Energy Program that the above identified funds are appropriated, allotted or that
funding will be obtained from oth• sources available to the using client/agency. The
esingteli t agent s the nab ity for any issu related to the funding for this project
By -*OA .6,44 k
P".. ate
Please sign a d return this form to E&AS. If you have any questions, please call me.
2017142Geolamd2fundko
6
INTERAGENCY Amendment Department of Enterprise Services
Date: October 24, 2019
Agreement No: K1411
Project No.: 2017-142
Amendment No: 2
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 1 of 3
7
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-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.
4.2 Deduct the ($60,000.00) Energy Project Management Fee for the work described in
Section 1.1. Project Management Fee is being waived per agreement with the City
of Yakima.
The new total Agreement value is $0.00.
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.
Interagency Agreement No.K1411 Page 2 of 3
8
DES shall invoice the CLIENT AGENCY for any remaining services within 60 days of the
termination of this Agreement.
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 Ya Department of Enterprise Services
Engineering &Architectural Services
ler e' Roger Wigfield, P.E.
Q
Energy Program Manager
Title Date Title Date
K14 1 1 IAAamd2ko
Interagency Agreement No,K1411 Page 3 of 3
9
A
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.
1. 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.
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
10
A A t -
ee Sc et le
2015-17 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
1,000,001.......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. 11,300
300,001 400,000, 24,800 ____________ 9,700
200,001 .300,000, 19,800________________. 7,700
100,001 .200,000. 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 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 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.K1411 Rev.3/12/2012
1 1
A A ...
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.
I. 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
energy quare
footage, additional energy consuming equipment and negotiate changes in baseline
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.K1411