HomeMy WebLinkAboutContract 33530 AMENDMENT NO. 1 CITY SECRETARY /,2,
CONTRACT NO.
TO
LOAN NO. 03-001814-028-0
BETWEEN
City of Fort Worth, ("Borrower")
319 West 10th Street
Fort Worth, Texas 76102
AND
The Comptroller of Public Accounts, ("Agency")
State Energy Conservation Office
111 E. 17 Street, Room 1114
Austin, Texas 78774
Recitals
WHEREAS,the State Energy Conservation Office ("SECO")of Agency and Borrower entered into a Loan
Agreement No. 03-001814-028-0 (CL181), ("Loan Agreement") effective August 5, 2003 for a Loan to
public sector institutions for energy efficient projects related to the LoanSTAR Revolving Loan Program.
WHEREAS, Agency and Borrower desire to execute an Amendment No. 1 to amend the Loan Agreement
by modifying the Budget and extending the construction completion date to March 1, 2007 and making
other changes as set forth below;
Agency and Borrower hereby agree as follows:
Amendment Agreement
The terms set forth in this Amendment No.l shall be in addition to and construed together with the terms of
the Loan Agreement between Borrower and Agency.
The parties acknowledge that amendments are subject to the terms and conditions of the Loan Agreement.
In the event of conflicting language between the Loan Agreement and this Amendment No. 1,the language
in this Amendment No. 1 shall control as follows:
1. This Amendment modifies Attachment A, Budget adding $2,395,659.00 to the loan agreement for
a new total of $4,992,128.00 and extends the construction period to 3/1/2007. The revised
Attachment B is attached hereto and incorporated herein.
All other provisions of the Loan Agreement shall remain the same.
II. Incorporation of Amendments
Upon and after the date of execution of this Amendment No. 1 to the Loan Agreement, all references to the
Loan Agreement in that document and any related document shall mean the Loan Agreement as modified
by this document and previous amendments. That Loan Agreement shall consist of the original Loan
Agreement, together with all documents incorporated therein, executed on or about August 5, 2003; and
this Amendment No. 1, together with all documents incorporated herein. These documents shall constitute
the entire agreement of the parties.
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Except as provided in this Amendment No. 1, execution and delivery of this Amendment No. 1 shall not
amend, modify, or supplement any provision of, or constitute a consent to, or waiver of, any
noncompliance with the provisions of the original Loan Agreement and except as specifically provided in
this Amendment No. 1,the Loan Agreement shall remain in full force and effect.
AGENCY: BORROWER:
Comptroller of Public Accounts City of Fort Worth
By By4
Billy C. H ilto 4Ott
Deputy C ptroller Assistant City Manager
Date I/ "/� Date 7
H:\Ioanstar\loan documents\city of fort worth amendment# 1 (CL 181)2-06
Revised 07/25/2001
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Marty HendriT;
City Secretary
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ATTACHMENT A,Loan No. 03-00181-4-028-0
LOAN APPROVAL STATEMENT
For Energy Conservation Measures
Agency: City of Fort Worth
Address: 319 West 10th Street
City: Fort Worth,Texas 76102
Loan Coordinator: Sam Steele
Title: Conservation Specialist
Phone: (817)392-1276
E Description of Estimated Annual Pay- ECM
C Energy Conservation Measure ECM Energy Cost back Loan
Building a M ECM b Cost c Savings (yrs) Amount d
City of Fort Total from original loan $2,596,469.00 $259,647.00 0.0 $2,596,469.00
Worth
Will Rogers 1 DD C Control System $342,322.00 $205,073.00 1.7 $342,322.00
Memorial Improvements
Center
Will Rogers 2 Power Factor Correction $46,628.00 $15,935.00 2.9 $46,628.00
Memorial
Center
Will Rogers 3 Central Plan,New Cillers& $608,197.00 $26,272.00 23.2 $608,197.00
Memorial Pumps
Center
Central Library 4 DDC Control System $222,278.00 $35,993.00 6.2 $222,278.00
Improvements
Central Library 5 Power Factor Correction $16,219.00 $5,935.00 2.7 $16,219.00
Central Library 6 Cenral Plan,New Chillers& $643,951.00 $32,016.00 17.9 $643,951.00
Pumps
Fort Worth 7 Power Factor Correction $52,508.00 $17,985.00 2.9 $52,508.00
Convention
Center
Ci Hall 8 Pwer Factor Correction $12,840.00 $3,646.00 3.5 $12,840.00
$4,541,412.00 $602,502.00 7.6 $4,541,412.00
Engineering Audit Expense $133,766.00
Metering and Monitoring $40,130.00
Construction Bonding,Construction $276,820.00
Monitoring&Training,and Final Design&
Engineering
TOTAL LOAN $4,992,128.00
Anticipated Substantial Completion Time 12 months
Payback(with allowance) 8.3 years
Comments: This loan is beinp,amendment to add an additional$2,395,659 to the existing loan amount of
$2,596,469.00. Borrowers agrees to start repaying the loan based on the amount
reimbursed to date.
(a) A description of the building/facility and individual ECM is contained in the engineering report whme
incorporated herein by reference and included as a part of this Attachment A.
Page 3 of 4
(b) No ECMs may be canceled after loan is granted without prior written Lender approval.
(c) ECM includes cost of detail engineering design, labor,and materials to implement retrofit.
Cost of individual ECM projects may not exceed 120%of approved loan amount.Any individual variance exceeding
this amount must be submitted in a change of scope and receive written approval from Lender.
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City of Fort Worth, Texas
Mayor and Council Communication
COUNCIL ACTION: Approved on 2/7/2006
DATE: Tuesday, February 07, 2006
LOG NAME: 20ESPCII REFERENCE NO.: C-21289
SUBJECT:
Authorize Execution of a Loan Agreement with the Texas State Energy Conservation Office (SECO)
to Finance the Implementation of the City's Phase II Energy Savings Performance Contract (ESPC)
with Johnson Controls, Inc., and Authorize Amendment Number 1 to the Existing ESPC with JCI to
Included the Scope of the Phase II Project
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the City Manager to execute a loan agreement in the amount of $2,395,659 from the Texas
State Energy Conservation Office (SECO) to finance the implementation of Phase II of the City's Energy
Savings Performance Contract (ESPC) with Johnson Controls, Inc. pending approval of the SECO
LoanSTAR Loan Application; and
2. Authorize the City Manager to execute amendment number 1 to City Secretary Contract No.29110 with
Johnson Controls, Inc., in the amount of$2,375,659 for the implementation of the ESPC's Phase II.
DISCUSSION:
On September 2, 2003, (M&C C-19739) the City Council authorized execution of a contract with Johnson
Controls Inc., to implement a Phase I ESPC. Completed in September 2004, that initial phase resulted in
the implementation of a $3,063,090 project at the City's downtown Municipal Complex (City Hall, Public
Safety Building, Municipal Annex) and Meacham International Airport's Terminal Building. To date, the
City's ESPC Phase I energy savings guarantee has been exceeded based on the latest available
Measurement and Verification report from Johnson Controls, Inc. Additionally, the City received a utilities
incentive rebate from TXU of approximately $300,000 as a result of the ESPC Phase I project. The contract
for Phase I allows for the execution of subsequent phases of work with Johnson Controls, Inc., as the City's
competitively selected energy services company via contract amendment.
On July 26, 2005, (M&C C-20867) the City Council authorized the execution of a contract with Johnson
Controls, Inc., to conduct a detailed energy audit and engineering evaluation of the City's Will Rogers
Memorial Center (WRMC), Fort Worth Convention Center (FWCC), Police Administration Building and
Central Library in development of energy savings equipment retrofits to develop Phase II project under the
existing ESPC. The resulting Utility Assessment Report (UAR) has been submitted to the City, reviewed
and approved by City staff. The UAR recommends a $2,395,659 infrastructure improvement project that, if
implemented through an ESPC, would pay for itself from the estimated energy cost savings generated in
less than the 10-year simple-payback term required by SECO and the City. The project scope includes
HVAC, Energy Management Control and Power Factor (PF) Correction system measures. The cost also
includes $20,000 for City staff management of the project. City facilities affected include WRMC, FWCC,
Central Library and City Hall. The UAR has also been reviewed and endorsed by Kinsman and Associates,
an independent engineering firm, retained by the City under a separate professional services
agreement. Johnson Controls Inc., guarantees the City energy savings of $342,855 in Year 1 after
implementation of the Phase II ESPC.
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 7/31/2006
Page 2 of 2
Upfront financing for this project will come through SECO's LoanSTAR program. LoanSTAR's revolving
fund offers financing of such projects that indicate a maximum 10-year simple payback at an interest rate of
3%. The annual loan payment is estimated to be $278,185, payable quarterly in arrears, with the first
payment due after project completion, probably in the first quarter of the City's next fiscal year, FY2006-07.
In addition to turnkey design, installation and management, the ESPC incorporates two annual service
agreements in support of the project. The first agreement is for Johnson Controls, Inc., to provide the City
Measurement & Verification (M&V) Services for reporting of actual energy savings, as required by law for
such projects. The first year cost for the ESPC M&V Services contract is $42,500. The second agreement
is for Johnson Controls, Inc., to provide the City Preventative Maintenance (PM) Services for the Chiller
Equipment installed as part of the project at a first year cost of$9,030.
Johnson Controls, Inc., is in compliance with the City's M/WBE ordinance by committing to 13% M/WBE
participation from the total award for construction and supplies.
The City facilities involved in this project are in COUNCIL DISTRICTS 7 and 9, but serve the entire City.
FISCAL INFORMATION/CERTIFICATION:
The Finance Director certifies that this action will have no material effect on City funds at this
time. However, sufficient funds will be available in future operating budgets, as appropriated from the City's
General Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
Submitted for City Manger's Office by: Marc Ott (6122)
Originating Department Head: Robert Goode (7801)
Additional Information Contact: Greg Simmons (7862)
http://www.cfwnet.org/council_packet/Reports/mc_print.asp 7/31/2006