HomeMy WebLinkAboutContract 45069 (2)CITY
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U.S. DEPARTMENT of ENERGY
Partnership Agreement
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PERFORMANCE CONTRACTING ACCELERATOR
The Better Buildings Initiative is a national leadership initiative calling on state and local officials,
corporate chief executive officers, university presidents, utilities, and other leaders to make substantial
commitments to improve the energy efficiency of thew buildings and plants, save money, and increase
competitiveness. The cornerstones are a commitment to a 20% or more savings target across the
organizations' portfolios and a commitment to share strategies that work, substantiated by energy data
across the portfolios. The U1S Department of Energy (DOE) is expanding this initiative to engage
leaders in a set of Better Buildings Accelerators designed to demonstrate specific innovative
approaches, which, upon successful demonstration, will accelerate investment in energy efficiency(
The Performance Contracting Accelerator is designed to expand the use of performance contracting
by federal, state, and local governments, K 12 schools, and others. The Performance Contracting
Accelerator aims to catalyze public sector energy efficiency investments of S2 billion from January 2013
to December 2016 through the use of innovative and best practice approaches to enhance performance
contracting programs, It will establish these approaches over this period and maintain them for the long
term. Focus areas include: contract design, energy measurement and verification (M&V), performance
benchmarking, reporting of successful outcomes, streamlined project processes, and approaches for
deep -energy and small building retrofits.
The goals of the Performance Contracting Accelerator include:
► Demonstrate best practice approaches for performance contracting and yield road-tested examples for other
public sector organizations to use.
► Develop standardized methods for energy savings measurement and reporting.
Design approaches for tracking and benchmarking energy savings performance corntract'(ES1 (i).projects
through aggregating national Data from projects and for improving collection of project data.
► Document and share best practices for deep -energy retrofits in pudic buildings and energy retrofits in smaller
buildings, and lowering the cost of capital.
Develop recommendations for post -Accelerator next steps.
•
Performance Contracting Accelerator Partners, in collaboration with DOE, will demonstrate practical
and effective best practices to accelerate the use of performance contracting. Accelerator Partners and
DOE enter into this partnership agreement to improve performance contracting processes across public
facilities at all levels of government.
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OFFICIAL RECORD
CITY SECRETARY
WoRrir TY
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Learn more at betterbuildings.energy.gov
RECEIVED NOV 012013
ENERGY
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Performance C n ;r .ctinc Acte °ator
Partner Agrees to:
Appoint an Accelerator partnership lead.
Pledge a financial commitment to implement
ESPCs for the next three years.
Work w i t i.. DOE to identify one or more barriers in
their performance contracting program or project
within 4 months of joining; and work with DE and
other Accelerator Partners to find solutions within
18 months.
Participate in technical assistance forums.
t> Share materials, results, and lessons learned from
their innovative approaches.
Participate in the development of and provide data
for national ESPC project database.
Report on progress towards the goal semi-
annually.
re r e nt
The az s Department c Enemy Agrees to:
Appoint a DOE point of contact for each partnership.
v-fr Facilitate the development of best practice
approaches in collaboration with Accelerator Partners,
including standardized model contracts, deep -energy
retrofit approaches, and pathways to completing
energy retrofits in smaller buildings.
Share information and provide tochnical assistance
(vebinars and tailored training) on federal, state, and
local government, K- i 2, and other performance
contracting programs ano approaches,
-stab iGh a central repository and standard 1'
process o report data a:, the project,'and
building, i g,
Emergy conservation level in collaboration with
Partners, industry, and stakeholders, and proviae
access to Partners,
Provide public recognition to Accelerator Partners
for achieving milestones and commitment.
My organization is committed to the goals of this Better Buildings Accelerator and pledges to lead in the use
of performance contracting.
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Senior Executive Officer Date
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Contact Information
Orcanization:(-ice`fiPf L3d1TW lt)C% Address: 1000 1J Xitsfa-C S&-r- (N
Name: 4Pv.#s.$)t,Ls (,, 'V4- kr: Title: ACKNaS Phone:eaa, 3_ 1.Z • L.21(oE-maid: 51 • seittia--
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Performance Contracting Goal (dollars committed over the next 3 years): I o 9 J5.S 45Q • 00
General Ter` s
r All parties concur that this agreement is wholly voluntary and may be terminated by any party at any time, and for
any reason, with no penalty.
Partner will not construe, claim, or imply that its participation in the Better Buildings Initiative constitutes Federal
Government approvals acceptance, or endorsement of anything other than Partners commitment to the initiative,
Partner understands its participation in the Better Buildings Initiative does not constitute Federal Government
endorsement of Partner.
Partner understands th
ano not intended to
to any federal ag
The Better Build
Attested by:
erne
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it undertakes in connection with the Better Buildings Initiative are voluntary
lie Federal Government, Partner will not submit a claim for compensation
equests to keep the Pa-rtner's information and data confidential.
APPROVE:! / l-J FU /1 A N a ► FPJA I ITV
CITY Al ' RNEY
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ENERGY
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The Better Buildings initiative is a national
leadership initiative calling on state and local
officials, corporate chief executive officers,
university presidents, utilities, and other `eaders
to make substantial commitments to improve the
energy efficiency of their buildings and plans,
v 1
t
save money, and increase competitiveness. The
cornerstones are a commitment to a 20% or
more savings target across the organizations'
portfolios and a commitment to share strategies
that work, substantiated by energy data across the
portfof os. The U.S. Department of Energy (DOE)
s expanding this initiative to engage leaders in a .
set of Better Buildings Accelerators designed
r
to demonstrate specific innovative approaches,
which, upon successful demonstration, wi l
r
accelerate investment in energy efficiency.
The Performance ContractingAccelerator
is designed to expand the use of performance
contracting by federal, state, and local
governments, K-12 schools, and others. The
Performance Contracting Accelerator aims to
catalyze public sector energy efficiency
investments of $2 billion from January 2013 to
December 2016 through the use of innovative and
best practice approaches to enhance performance
contracting programs. It will establish these
approaches over this period and maintain them
for the long term.
The Accelerator will bring together participants
working to meet energy efficiency investment
targets around a number of approaches
for enhancing and expanding performance
contracting programs. Focus areas induce:
contract design, eneroy measurement and
verification (MEW), performance benchrnarking,
reporting of successful outcomes, streamlined
project processes, approaches for deep -energy
and small building retrofits, and approaches for
lowering the cost of capital.
Results will include $2 billion in performance
contracting, commensurate energy savings, and
a suite of demonstratec performance contracting
tools and resources for the public sector to use to
c rive energy efficiency retrofits.
Learn more at betterbuiidings.energy.gov
ill
114 ibi. id li i I 1 1 .1
Fact Sheet
PERFORMANCE CONTRACTING ACCELERATOR
Accelerator Goals:
Demonstrate best practice approaches for
performance contracting and yield road-tested
examples for other public sector organizations to use.
0- Develop standardized methods for energy savings
measurement and reporting.
0- Design approaches for tracking and benchmarking
energy savings performance contract (ESPC) projects
through aggregating national data from projects and
for improving collection of project data.
Document and share best practices for deep -energy
retrofits in public buildings, energy retrofits in smaller
buildings, and lowering the cost of capital,
ow Develop recommendations for post -Accelerator next
steps,
Why Performance Contracting?
Many puolic sector organizations are striving to
reduce their energy and water use and costs ano
meet other "lead -by -example" goals while facing
limited budgets. Energy performance contracting
can provide a one -stop procurement process that
allows building owners to use future cost savings
to pay for new efficient equipment ano services,
while guaranteeing that COST_ savings will meet or
exceed payments for equipment and services over
the contract per od.
The potential for performance contracts to help
public sector organizations realize savings is
significant. It is estimated that $60 to $ i 15 billion
n private sector financing could be available
to help in achieving annual energy and water
savings.
While performance contracting has grown in
use in recent years, facilitated in part by the
Federal Performance Contracting Challenge and
Recovery Act funding, and has been shown to
reliably reduce energy use by 15% to 35%, there
remains a number of opportunities for improving
and expanding the use of these contracts so as
to capture their potential. Opportunities include,
streamlining current processes, improving data
collection and analysis, linking federal and state
and local best practices where appropriate,
extending performance contracts to small
building projects, and finding approaches for
lowering:the cost of capital.
U.S.raGiAisareaRal
DEPARTMENT OF
CITY SECRETARY ENERGY
FT. WORTH, TX
•
What Are the Benefits to Accelerator Partners?
► Help your organization finance energy efficiency
and water savings retrofits through new innovative
approaches to drive deeper retrofits and access new
markets
For Instance, DOE will work with Partners using energy
performance contracting in areas that are typically
dlf cult io finance. DOE will 'ark with Partners to
dove pathways for using performance contracting for
small bu !ding retrof is and enhancing the mechanism to
capture energy savings in uncerserved market`.., such as
wastewater r i
treatpent facilities, hospitals, and supporting
ens -users with fleet Conversion LO L NG/CNG.
► Gain expertise in standard approaches
a
Enhanced Data Collection anc. Reporting: DOE is
supporting the development of a central repository
and standard process to report ESPC cats. This will
allow for betier data tracking and benchrnarking
or projects across the nation. Accelerator" Pc rtners
will play a key role n the development of a national
database by identifying reporting fields, testing the
database, and determ nine the most meaningful
reporting outputs to help with project tracking and
rnanacrernent.
Model -templates: Using model templates adds
value by helping to streamline the ESPC process
for all stakeholders, including developing
consistent use of terms and conditions, reporting;
I""t=r1uirernents, financial calculations, and contract
structures. DC E will work with Accelerator Partne
to develop a set of robust model contract templates
for he public sector, anc work with Accelerator
,:participants to field-test hese tools.
► Receive tailored assistance and tools and work with
state and local experts in developing solutions to
common barriers
DOE provices comprehensive performance contracting
training across the country several times per year as well
as on-oeinand viebinar training covering all elements of
the ESPC process. These materials will be updated as
part of the Accelerator, as necessary, for a broad public
sector aucience anc the availability of trainings will be
wicely snared.
DOE will bring together ESPC Accelerator Partners
annual!} to facilitate n-person peer exchanges and
induce national subject matter experts to ensure robust
tecrin cal exchange and learning opportunities, The first
meeting is tentatively scheduled for May 2014 as part of
the Better Buildings annual sumrnit,
► Receive public recognition from DOE as a national
leader in performance contracting
Receive national recognition from DOE for
demonstrating our commitment to reducing energy u_
through performance contracting. Raise the visibility of
your efficiency efforts with your employees, con,rnunity,
and stakeholders.
DOE Commitment to Accelerator Partners
► Appoint a DOE point of contact for each l artnersiiip,
► Facilitate the development of best practici proack es
in collaboration viih Accelerator Partners, it dueling
standard zed model contracts, deep -energy retrofits
approacnes, anc pathways to completing energy
retrofits in smaller buildings.
► Share information and provice technical assistance
(webinars and tailored training) about feceral, state
and local government, K-12, and other performance
contracting proc4ran-is anc approaches.
► Establish a central repository and standard process
to report data at the project, building, and energy
conservation level in collaboration with Partners,
industry and stakeholders, arid provice access to
Partners.
► Provide public recognition to Accelerator Partners for
achieving milestones and cornmi rnent.
Accelerator Partner Commitment
The public sector Partner is committed to meeting
a financial investment target for energy savings
performance contracting for the next three years
and to:
► Work with DOE to identify one or more barriers in their
performance contracting program or project within
4 months of joining; and work with DOE and other
Accelerator Partners to find solutions within 18 months.
► Participate
technical assistance forums.
► Share materials, results, anc lessons Iearneo from their
innovative approaches.
► Participate in the development of anc provide data •
national ESPC project database.
► Report on progress towarcs the goal semi-annually.
Learn more at betterbuildings.energy.gov
DEPARTMENT OF
M&C Review
Page 1 of 3
CITY C NCR. _ EN A
site
COUNCIL ACTION: Approved on 5/21/2013 - Ordinance No. 20764-05-2013
of Fort Worth , Texas
For
DATE: 5/21/2013 REFERENCE NO.: C-26273 LOG NAME: 20ESPC7
CODE: C TYPE NON -CONSENT PUBLIC HEARING: NO
SUBJECT: Authorize Execution of a Master Municipal Equipment Lease -Purchase Agreement with All
American Investment Group, LLC, in the Amount of $18,443 309.30, Authorize Execution
of an Escrow Agreement with All American Investment Group, LLC, and SunTrust Bank,
Authorize Execution of Amendment No. 8 to City Secretary Contract No. 29110 with
Johnson Controls, Inc., in the Amount of $10,955,452.00 to Support the Refinance of
Phase 4 of the City's Energy Savings Performance Contract and the Finance and
Implementation of Phase 7 of the City s Energy Savings Performance. Contract at Selected
City -Owned Facilities, Provide for Project Costs and Contingencies in the Amount of
$140,000.00 for a Total Project in the Amount of $11,095,452.00 and Adopt Appropriation
Ordinance (ALL COUNCIL DISTRICTS)
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize the execution of a Master Municipal Equipment Lease -Purchase Agreement with All American
Investment Group, LLC (AAIG) in the amount of $18,443,309 30 to refinance Phase 4 $7,487,857.30 of the
City's Energy Savings Performance Contract (ESPC) with Johnson Controls, Inc. (JCI) and to finance
implementation of ESPC Phase 7, in the amount of $10,955,452.00 with JCI;
2. Authorize the execution of an Escrow Agreement with AAIG and SunTrust Bank as required by the
Master Municipal Equipment Lease -Purchase Agreement;
3. Adopt the attached Appropriation Ordinance increasing Fiscal Year 2013 estimated receipts and
appropriations in the Special Trust Fund in the amount of $11,095,452 00 from available funds to fund
implementation of ESPC Phase 7, in the amount of $10,955,452.00 with JCI and construction inspection
and contingencies in the amount of $140,000.00; and
4. Authorize execution of Amendment No. 8 to City Secretary Contract No. 29110 with JCI in the amount of
$10,955,452.00 to implement ESPC with JCI for selected City -owned and operated facilities.
DISCUSSION:
The purpose of this Mayor and Council Communication is to authorize the following three actions:
1. Consolidate all previous phases of the existing City General Fund Energy Savings Performance
Contract projects into a single ESPC Phase 7 project.
2. Implement $10,955,452.00 in new energy efficient infrastructure improvements in ESPC Phase 7 as
recommended by a detailed energy study conducted by Johnson Controls, Inc., as a result of M&C C-
25751 approved on July 24 2012.
3. Refinance ESPC Phase 4 from an effective interest rate of 4.48 percent to 2.236 percent.
Scope of Work
The Phase 7 project includes the following new facility improvements• Lighting; Air Conditioning and
Controls; Retro-Commissioning; Window Film and Sealing Water Conservation; and Power Factor
Correction. This work is planned variously at the following facilities: City Hall and Service Building; Monroe
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M&C Review Page 2 of 3
Street and Zipper Annexes Public Safety and Courts; Animal Care and Control Center; Fort Worth Water
Gardens; Central, East and Southwest Regional Libraries; Fort Worth Convention Center; Commerce
S treet Parking Garage* and James Avenue, Southside, and Brennan Avenue Service Centers. Altogether,
over 100-city-owned and -operated facilities are included in Phase 7's consolidation of ESPC Phases 1, 2, 3,
4, and 6b Phases 5 and 6a were implemented with separate funding from the Water Department and are
not part of this consolidated Phase 7.
P roiect Funding
Funding Source
Master Municipal Lease Purchase Agreement
S pecial Trust Fund Energy Conservation Reserve Account
Total
$ 18,443,309.30
$ 140,000.00
$ 18,583,309.30
Costs
N ew Energy Efficient Infrastructure Improvements - Phase $ 10,955,452.00
7
P revious Phase 4 improvements being refinanced $ 7,487,857.30
Contingency $ 100,000.00
Staff costs $ 40.000.00
Total $ 18,583,309.30
P roject funding primarily relies on a Master Equipment Lease -Purchase Agreement that will be repaid
through guaranteed utility cost avoidance from previous phases and from implementation of new Phase 7
work elements. Cost avoidance from two current loans and one lease that would have been paid down
from previous phases in Fiscal Years 2014, 2015, and 2018 will be used to financially support the new
facility improvements. Funding for Staff construction inspection services and potential project contingencies
is provided from previously secured utility incentives received by the City from participation in Oncor Electric
Delivery's energy efficiency programs These incentive funds were deposited into the Special Trust Fund's
Energy Conservation Reserve Account, and any incentive revenues secured through implementation of
P hase 7 will be deposited back into this same account
U tility Cost Avoidance
U tility Cumulative Cost Avoidance over 14 years
Project Costs over 14 years
Project Financing Principal and Interest
Annual Service Agreements
Total Cumulative Project Costs
N et Cumulative Cost Avoidance over 14 years
$ 41,723,130.00
$ 27,962,176.00
$ 2,907,600.00
$ 30,869,776.00
$ 10,853,354.00
M/WBE Office - Johnson Controls, Inc , is in compliance with the city's Business Diversity Enterprise
Ordinance by committing to 10 percent Minority Business Enterprise participation on this project. The city's
Minority Business Enterprise goal on this project is 10 percent.
ESPC Phase 7 involves improvements to city facilities located in ALL COUNCIL DISTRICTS.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that upon approval of the above recommendations
and adoption of the attached appropriation ordinance, funds will be available in the capital budget, as
appropriated, of the Special Trust Fund.
TO Fund/Account/Centers
5)FE72 488302 020543008000
5)FE72 531200 020543008000
5)FE72 511080 020543008000
$140, 000.00
$100,000.00
$40.000.00
FROM Fund/Account/Centers
3) FE72 531200 020543008000
3)FE72 511080 020543008000
$100.000.00
$40,000.00
5) FE72 539120 020543009000 $10.955,452.00
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M&C Review Page 3 of 3
3) FE72 485700 020543009000 $10.955.452.00
3) FE72 539120 020543009000 $10.955.452.00
Submitted for City Manager's Office bv:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
20ESPC7 FE72 A013 (11M REV 051413).doc
Fernando Costa (6122)
Jay Chapa (8517)
Douglas W. Wiersig (7801)
Samuel C. Steele (1276)
Glenn Balog (2028)
http://apps.cfwnet org/couneil_packet/me_review.asp9ID=18448&couneildate=5/21/2013 10/28/2013
A Resolution
NO. 4089-05-2012
AUTHORIZING THE CITY MANAGER TO ENTER INTO A
COMMUNITY PARTNERSHIP AGREEMENT WITH THE U.S. DEPARTMENT OF
ENERGY FOR THEIR BETTER BUILDINGS CHALLENGE
WHEREAS, the City of Fort Worth has adopted a Sustainability Action Plan as
recommended by its Sustainability Task Force; and
WHEREAS, pursuant to that plan, the City's Energy Conservation Program is
completing over $58 million in improvements to municipal facilities which will result in
annual cost avoidance of over $5 9 million and the removal of over 40,000 tons of
greenhouse gases from the atmosphere; and
WHEREAS, 62 public, private, and non-profit organizations are currently
working together nationally on the President's Better Buildings Initiative to make
buildings more energy efficient and better places in which to live and work; and
WHEREAS, the City of Fort Worth now has the opportunity to join the cities of
Atlanta, Denver; Houston, Los Angeles, Sacramento, Seattle, and Washington, D.C., as
Community Partners in the U.S. Department of Energy's Better Buildings Challenge; and
WHEREAS, under the attached Community Partnership Agreement, the City of
Fort Worth would commit to assigning leadership, pledging a goal to improve facility
energy intensity by at least 20 percent by 2020 and working with local organizations to
develop an organization -wide plan to achieve the goal;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEXAS, THAT:
1. The City Council authorizes the City Manager to enter into the attached
Community Partnership Agreement with the U.S. Department of Energy for
their Better Buildings Challenge; and
Resolution No. 4089-05-2012
2. The City Council encourages local businesses, universities, and other
organizations to join the City in making Fort Worth municipal, commercial,
and industrial buildings 20 percent more energy -efficient by the year 2020
Adopted this 15` 1 day of May, 2012.
ATTE$T:
By: 6L
Ronald P. Gonzales, As' ant City Secretary