Department of Enterprise Services Interagency Agreement for Energy ProgramState of Washington
ENERGY PROGRAM
Department of Enterprise Services
INTERAGENCY AGREEMENT
IAA No.:
K521 1
P.O. Box 41476
Olympia, WA 98504-1476
CITY OF EDMONDS
7110 210"' Street SW
Effective Date:
April 5, 2018
Edmonds, WA 98020
INTERAGENCY AGREEMENT
BETWEEN
CITY OF EDMONDS
AND
WASHINGTON STATE DEPARTMENT OF ENTERPRISE SERVICES
Pursuant to RCW Chap. 39.34, this Interagency Agreement ("Agreement") is made and entered
into by and between the State of Washington acting by and through the Energy Program of the
Department of Enterprise Services, a Washington State governmental agency ("Enterprise
Services") and the City of Edmonds a Washington State governmental agency ("Client Agency")
and is dated and effective as of April 5, 2018.
RECITALS
A. Enterprise Services, through its Energy Program ("Energy Program"), helps owners of public
facilities reduce energy and operational costs. The Energy Program is a national leader in
developing and managing energy savings performance contracts that help reduce energy and
operational costs pertaining to publicly -owned facilities.
B. Upgrading to energy efficient infrastructure helps reduce long-term operations and
maintenance costs. This allows owners to be better financial stewards while achieving their
mission, so that Washington is a better place to live, learn, and work.
C. Acting as the owner's advocate, the Energy Program delivers professional expertise and
contract management services. By leveraging capital investments, owners can achieve
efficiencies, improve facilities, and yield carbon reductions in their publicly -owned facilities.
The Energy Program also creates value to owners by managing risk through guaranteed total
project costs, equipment performance, and energy savings.
D. Client Agency, an owner of a public facility, desires to contract with Energy Program to access
and obtain certain Energy Program Services.
E. The purpose of this Agreement is to establish a vehicle for the Energy Program to provide
future energy/utility conservation project management services to Client Agency and to
authorize the development of the energy services proposal in a cost-effective, efficient manner
as set forth herein.
INTERAGENCY AGREEMENT No. K521 1 Page l
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,n
- -/�-
AGREEMENT
Now THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the
parties agree as follows:
1. TERM. The term of this Agreement commences on April 5, 2018, and ends on December
31, 2021.
2. STATEMENT OF WORK; COMPENSATION. Energy Program shall provide the following
services, for the following compensation, to Client Agency.
a. SERVICES. Upon request by Client Agency, and amendment to this Agreement to specify
the individual Energy/Utility Conservation Project(s), Enterprise Services shall furnish the
necessary personnel and services and otherwise do all things necessary for or incidental to
the performance of the Project Management Services set forth in Attachment A and the
Measurement & Verification Services set forth in Attachment C. Unless otherwise
specified, Energy Program shall be responsible for performing all fiscal and program
responsibilities as set forth herein.
COMPENSATION. Compensation under this Agreement shall be by amendment to this
Agreement for each authorized project. Each amendment shall include a payment schedule
for the specific project.
i. Project Management Services (Attachment A): For Project Management Services
provided by Energy Program, Client Agency shall pay Enterprise Services a project
management fee for services based on the total project value per the project
management fees schedule set forth in Attachment B.
ii. Termination Fee: If Client Agency, after authorizing an investment grade audit and
energy services proposal, decides not to proceed with an energy/utility conservation
project that meets Client Agency's cost effective criteria, then the Client Agency will
be charged a termination fee as set forth in Attachment B. The termination fee shall
be based on the estimated total project value outlined in the energy services proposal
prepared by the ESCO.
iii. Measurement & Verification Services (Attachment C): If Measurement and
Verification Services beyond the first three years following the Notice of
Commencement of Energy Services are requested by Client Agency, Client Agency
shall pay Energy Program $2,000.00 annually for each year that such Measurement
and Verification Services are provided.
PAYMENT FOR ESCO SERVICES. In the event that Client Agency authorizes Energy
Program to contract with an ESCO, pursuant to an Enterprise Services Master Energy
Services Agreement for ESCO Services, Client Agency shall make payment for such
contracted services directly to the ESCO, after Energy Program has reviewed, verified, and
sent such invoices to Client Agency for payment.
INTERAGENCY AGREEMENT No. K521 1 Page 2
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d. FURTHER ASSURANCES. Client Agency shall provide the Energy Services Company
(ESCO) with any additional necessary or desired contract language to comply with Client
Agency's obligations pertaining to its use of federal, state, or other grants, funding
restrictions, or unique contract/entity requirements. The ESCO and their subcontractors
are required to comply with all applicable federal regulations and reporting procedures.
e. MANAGING COMPLIANCE WITH STATE AND FEDERAL LAW. In all ESCO project agreements
pertaining to this Agreement, the Energy Program will require ESCO compliance with
applicable federal and state laws and state policies including, but not limited to, the
following:
1. RCW Title 39 and 43
2. ADA Requirements
3. Buy America
4. Davis -Bacon
5. Prevailing Wage
6. DBE Participation
7. Apprentice Participation
The Energy Program will collect and provide the weekly -certified payroll to Client
Agency. Client Agency, however, shall remain responsible for any documentation
required by Client Agency's funding source. All federal verification, investigation, survey,
reporting and enforcement requirements when there is a possible violation shall remain the
responsibility of the federal grant recipient (Client Agency) unless negotiated by the
Energy Program and added by amendment to this Agreement. In the event that the Energy
Program becomes aware of a possible violation, it will notify the Client Agency.
3. INVOICES; BILLING.
a. BILLING PROCEDURE. Energy Program 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 the notice of commencement of energy cost savings issued by
the ESCO. 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. Energy Program will invoice for any remaining services within sixty (60) days of
the expiration or termination of this Agreement.
b. PAYMENT PROCEDURE. Client Agency shall pay all invoices received from Energy
Program within ninety (90) days of receipt of properly executed invoice vouchers.
c. BILLING DETAIL. Each invoice submitted to Client Agency by Energy Program shall
include information as is necessary for Client Agency to determine the exact nature of all
expenditures. At a minimum, the invoice shall reference this Agreement and include the
following:
The date(s) such services were provided
Brief description of the services provided
Total invoice amount
INTERAGENCY AGREEMENTNO. K5211 Page 3
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d. BILLING ADDRESS. Invoices shall be delivered to Client Agency electronically to:
Email: namely.randolph(cilei.edmonds.wa.us
4. AGREEMENT MANAGEMENT. The parties hereby designate the following agreement
administrators as the respective single points of contact for purposes of this Agreement, each
of whom shall be the principal contact for business activities under this Agreement. The parties
may change administrators by written notice as set forth below. Any notices required or
desired shall be in writing and sent by U.S. mail, postage prepaid, or sent via email, and shall
be sent to the respective addressee at the respective address or email address set forth below or
to such other address or email address as the parties may specify in writing:
Enterprise Services
Attn: Todd Flynn
Energy Project Manager
Energy Program
Washington Dept. of Enterprise Services
PO Box 41476
Olympia, WA 98504-1476
Tel: (360) 407-9375
Email: todd.fl nn )des.wa. ov
Client Agency
Attn: Pamela Randolph
City of Edmonds
7110 21 1h Street SW
Edmonds, WA 98020
Tel: (425) 771-0237
Email: painela.randoloh er:ci-ednlonds.wa.us
Notices shall be deemed effective upon the earlier of receipt, if mailed, or, if emailed, upon
transmission to the designated email address of said addressee.
The Client Agency representative shall be responsible for working with Energy Program,
approving billings and expenses submitted by Energy Program, and accepting any reports from
Energy Program.
The Energy Program representative shall be the contact person for all communications
regarding the conduct of work under this Agreement.
5. RECORDS RETENTION.
a. AGREEMENT AVAILABILITY. Prior to its entry into force, this Agreement shall be posted
on the parties' websites or other electronically retrievable public source as required by
RC W 39.34.040.
b. RECORDS RETENTION. Each party shall each maintain records and other evidence that
sufficiently and properly reflect all direct and indirect costs expended by either party in the
performance and payment 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 officials authorized by law. Such
INTERAGENCY AGREEMENT No. K521 I Page 4
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records shall be retained for a period of six (6) years following expiration or termination
of this Agreement or final payment for any service placed against this Agreement,
whichever is later; Provided, however, that if any litigation, claim, or audit is commenced
prior to the expiration of this period, such period shall extend until all such litigation,
claims, or audits have been resolved.
C. PUBLIC INFORMATION. This Agreement and all related records are subject to public
disclosure as required by Washington's Public Records Act, RCW chapter 42.56. Neither
party shall release any record that would, in the judgment of the party, be subject to an
exemption from disclosure under the Public Records Act, without first providing notice to
the other party within ten (10) business days of the receipt of the request. The parties will
discuss appropriate actions to be taken, including release of the requested information,
seeking a protective order, or other action prior to the release of records. Should one party
choose to seek a protective order, it shall do so at its sole expense.
6. RESPONSIBILITY OF THE PARTIES. Each party to this Agreement assumes responsibility for
claims and/or damages to persons and/or property resulting from any act or omission on the
part of itself, its employees, or its agents. Neither party assumes any responsibility to the other
party for any third party claims.
7. DISPUTE RESOLUTION. The parties shall use their best, good faith efforts cooperatively and
collaboratively to resolve any dispute that may arise in connection with this Agreement as
efficiently as practicable, and at the lowest possible level with authority to resolve such dispute.
The parties shall make a good faith effort to continue without delay to carry out their respective
responsibilities under this Agreement while attempting to resolve any such dispute. If,
however, a dispute persists and cannot be resolved, it may be escalated within each
organization. In such situation, upon notice by either party, each party, within five (5) business
days shall reduce its description of the dispute to writing and deliver it to the other party. The
receiving party then shall have three (3) business days to review and respond in writing. In the
event that the parties cannot then agree on a resolution of the dispute, the parties shall schedule
a conference between the respective senior managers of each organization to attempt to resolve
the dispute. In the event the parties cannot agree on a mutual resolution within fifteen (15)
business days, the parties shall abide by the Governor's dispute resolution process (RCW
43.17.330), if applicable, or collectively shall appoint a third party to evaluate and resolve the
dispute and such dispute resolution shall be final and binding on the parties hereto.
8. TERMINATION FOR CONVENIENCE. Except as otherwise provided in this Agreement, either
party may terminate this Agreement upon thirty (30) calendar days prior written notification.
Upon such termination, the parties shall be liable only for performance rendered or costs
incurred in accordance with the terms of this Agreement prior to the effective date of such
termination.
INTERAGENCY AGREEMENTNo. K5211 Page 5
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9. GENERAL PROVISIONS.
a. COMPLIANCE WITH LAW. The Parties shall comply with all applicable law.
INTEGRATED AGREEMENT. This Agreement constitutes the entire agreement and
understanding of the parties with respect to the subject matter and supersedes all prior
negotiations, representations, and understandings between them. There are no
representations or understandings of any kind not set forth herein.
c. AMENDMENTOR MODIFICATION. Except as set forth herein, this Agreement may not be
amended or modified except in writing and signed by a duly authorized representative of
each party hereto.
d. AUTHORITY. Each party to this Agreement, and each individual signing on behalf of each
party, hereby represents and warrants to the other that it has full power and authority to
enter into this Agreement and that its execution, delivery, and performance of this
Agreement has been fully authorized and approved, and that no further approvals or
consents are required to bind such party.
e. No AGENCY. The parties agree that no agency, partnership, or joint venture of any kind
shall be or is intended to be created by or under this Agreement. Neither party is an agent
of the other party nor authorized to obligate it.
f. GOVERNING LAW. The validity, construction, performance, and enforcement of this
Agreement shall be governed by and construed in accordance with the laws of the State of
Washington, without regard to its choice of law rules.
g. JURISDICTION & VENUE. In the event that any action is brought to enforce any provision
of this Agreement, the parties agree to submit to exclusive in personam jurisdiction in
Thurston County Superior Court for the State of Washington and agree that in any such
action venue shall lie exclusively at Olympia, Washington.
h. EXHIBITS. All exhibits referred to herein are deemed to be incorporated in this Agreement
in their entirety.
i. CAPTIONS & HEADINGS. The captions and headings in this Agreement are for convenience
only and are not intended to, and shal l not be construed to, limit, enlarge, or affect the scope
or intent of this Agreement nor the meaning of any provisions hereof.
j. ELECTRONIC SIGNATURES. A signed copy of this Agreement or any other ancillary
agreement transmitted by facsimile, email, or other means of electronic transmission shall
be deemed to have the same legal effect as delivery of an original executed copy of this
Agreement or such other ancillary agreement for all purposes.
INTERAGENCY AGREEMENT No. K521 1
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Page 6
k. COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original and all of which counterparts together shall constitute
the same instrument which may be sufficiently evidenced by one counterpart. Execution
of this Agreement at different times and places by the parties shall not affect the validity
thereof so long as all the parties hereto execute a counterpart of this Agreement.
EXECUTED AND EFFECTIVE as of the day and date first above written.
CITY OF EDMONDS
STATE OF WASHINGTON
DEPARTMENT OF ENTERPRISE SERVICES
BY.rcrj�-By.
Name Name
Title: _t-A--' ►. U g Title:
Date: 4.
* V Date:
K5211 IAA
/
6-
Roger A. Wigfield
Energy Program Manager
INTERAGENCY AGREEMENT No. K521 1 Page 7
(7-26-2017)
ATTACHMENT A - OF WORK
Energy/Utility Conservation Projects
PROJECT MANAGEMENT SERVICES
Statewide Energy Performance Contracting Program
Energy Program will provide the following project management services for each specific project
for the Client Agency. Each individual project shall be authorized by an amendment to this
Agreement.
I . 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 an 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 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 ESCO invoice voucher(s) received for reasonableness and forward to Client Agency
for review and payment.
9. Assist with final project acceptance.
10. Review up to the first three years of the ESCO's annual Measurement and Verification (M&V)
reports for completeness and accuracy. Review any ESCO guarantee compared to reported
results and resolve differences, if needed. Review and approve ESCO invoice vouchers for
payment by the Client Agency.
11. Provide other services as required to complete a successful energy performance contract.
INTERAGENCY AGREEMENT No. K521 1 Page 8
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ATTACHMENT B — FEE SCHEDULE
i.c. `0 i 7-1 �) 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..................................
$68,800 ................................
25,700
4,000,001........
5,000,000...................................
67,700 ................................
25,400
3,000,001.......
4,000,000...................................
66,700 ................................
25,000
2,000,001.......3,000,000
...................................
62,500 ................................
23,400
l , 5 00, 001.......2,
000, 000...................................
5 8, 3 00................................
21,800
1,000,001.......
1,500,000...................................
51,600 ................................
19,300
900,001. ...
1,000,000...................................
43,800 ................................
16,400
800,001.........900,000
...................................
41,300 ................................
15,400
700,001.........
800,000...................................
39,300 ................................
14,400
600,001 .........
700,000...................................
36,500................................
13,700
5 00, 001 .........600,
000...................................
3 3, 800................................
12,600
400,001.........
500,000...................................
30,200................................
11,300
300,001.........
400,000...................................
25, 800................................
9,700
200,001...._....300,000
...................................
20,700 .................................
7,700
100, 001.........200,
000...................................
14,400 .................................
5,400
50,001.........
100,000.....................................
7,800 .................................
3,500
20,001...........
50,000.....................................
4,200 .................................
2,000
The project management fee on projects over $6,000,000 is 1.15% of the project cost. The maximum
Energy Program termination fee is $25,700.
1. These fees cover project management services for energy/utility conservation projects managed by
Enterprise Services' Energy Program.
2. Termination fees cover the selection and project management costs associated with managing an
ESCO's investment grade audit and energy services proposal. No termination fee will be charged
unless the client agency decided not to proceed to construction based on an energy services
proposal that identifies projects that met the Client Agency's cost effectiveness criteria.
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 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. K521 l Page 9
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ATTACHMENT C - SCOPE OF WORK
Energy/Utility Conservation Projects
MEASUREMENT & VERIFICATION SERVICES
Statewide Energy Performance Contracting Program
If requested, Energy Program will provide the following measurement and verification services
for each year beyond the first three years following the Notice of Commencement of Energy
Savings by the ESCO for the specific Client Agency project:
1. Review the ESCO's annual Measurement and Verification (M&V) report for completeness
and accuracy. Review any ESCO guarantee compared to reported results and resolve
differences, if needed. Review and approve any ESCO invoice vouchers for payment by the
Client Agency.
2. Where necessary, review Client Agency facility operations including any changes in operating
hours, changes in square footage, additional energy consuming equipment and negotiate
changes in baseline energy use with the ESCO and the Client Agency that may impact achieved
energy savings.
3. Attend a meeting or meetings with the Client Agency and the ESCO to review and discuss the
annual M&V report.
INTERAGENCY AGREEMENT No. K5211 Page 10
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STATE OF WASHINGTON
DEPARTMENT OF ENTERPRISE SERVICES
210 1111r Ave SW,, Dtyinpla. WA 98501
PO Hors 41019 Olympia, WA 98504- (019
April 5, 2018
TO: Pamela Randolph, City of Edmonds
FROM: Andrea Faust, Contracts Specialist, (360) 407-9365
RE Agreement No. 2018-573 A (1)
Edmonds W WTP Phase 6 Energy Project — Carbon Recovery
IAA No. K521 1
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 (see page 2 for funding detail):
Energy Audit and Energy Services Proposal $ 61,600.00
ESCO Professional Services $ 174,400.00
Total Funding $ 236,000.00
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 other sources available to the using client/agency. The
using/cli agency bears the liability for any issues related to the funding for this project
V
By t',- r E.S. I
Name / Title Date
Please sign and return this form to E&AS.
2018573Afiidaf
have any questions, please call me.
ENERGY SERVICES AUTHORIZATION NO. 2018-573 A (1)
Edmonds W WTP Phase 6 Energy Project — Carbon Recovery
City of Edmonds
April 5, 2018
MASTER ENERGY SERVICES AGREEMENT NO. 2017-193 A (1)
The Owner and the Energy Services Company (ESCO) named below do hereby enter into this
Authorization under terms described in the following sections:
Authorization to Proceed Project Conditions
Compensation for Energy Services
I. AUTHORIZATION TO PROCEED:
Energy Services Company:
Ameresco, Inc.
222 Williams Avenue South, Suite 100
Renton, WA 98057
Telephone No. (206) 522-4270
Fax No. (425) 687-3173
E-Mail gthorslandaameresco.com
Owner:
City of Edmonds
acting through the
Department of Enterprise Services
Energy Program
PO Box 41476
Olympia, WA 98504
By By
Name Name Roger A. WigrieId, P. E.
Title Title Energy Program Manger
Date Date
State of Washington Contractor's License No. AMEREI*004PZ
State of Washington Revenue Registration No. 602 062 980
Federal Tax Identification No. 04-3512838
MWBE Certification No.
II. COMPENSATION FOR ENERGY SERVICES:
COMPENSATION
Basic Services
Current
New
Previous
Energy Audit and Energy Services Proposal
$
61,600.00
$
61,600.00
$
0.00
Preliminary Design
$
174,400.00
$
174,400.00
$
0.00
Construction Management
$
0.00
$
0.00
$
0.00
Overhead and Profit
$
0.00
$
0.00
1 $
0.00
Grand Total Plus WSST as applicable)
$
236,000.00
$
236,000.00
1 $
0.00
Value of this Amendment = $236,000.00 (Plus Washington State Sales Tax)
Authorization No. 2018-573 A (1) Page l of 2
III. PROJECT CONDITIONS:
The Project Conditions contained in the Master Energy Services Agreement will be used
unless specifically changed herein. The cost effectiveness criteria for this project are per
the Ameresco, Inc. proposal dated March 10, 2018.
IV. SCOPE OF WORK:
Per the ESCO proposal dated March 10, 2018, conduct a Detailed Investment Grade Energy
Audit of City of Edmonds, Waste Water Treatment Plant, to identify cost effective energy
conservation measures and present a written Energy Services Proposal, including all energy
audit documentation. The ESCO shall prepare the final Energy Services Proposal, detailing
the actual energy services and ESCO equipment to be provided, energy savings and cost
guarantees, measurement and verification plans, and commissioning plans for the proposed
measures. Measures will include items that save energy, water and other resources. The Cost
Effectiveness Criteria for this project shall be as established in the Master Energy Services
Agreement or as modified in Section III above.
In addition, provide preliminary design of a city selected pyrolysis and dryer system as a
replacement for the existing incinerator,
V. SCHEDULE FOR COMPLETION
Final completion of Investment Grade Energy Audit and preliminary design on or before
September 1, 2018.
2018573Aagraf
Authorization No. 2018-573 A (1) Page 2 of 2
AMERESC
Green • Clean • Sustainable 941
222 Williams Avenue South, Suite 100
Renton, WA 98057
P: 206 522 4270
F_ 425 687 3171
ameresco.com
March 10, 2016
Mr. Todd Flynn
Department of Enterprise Services
1500 Jefferson Street SE
PO Box 41012
Olympia, WA 98504-1401
SUBJECT: Energy Audit Fee Proposal
City of Edmonds — Wastewater Treatment Plant Phase 6 — Incinerator Replacement
Dear Todd.
We are pleased to submit this proposal for the audit phase of the City of Edmonds Wastewater Treatment
Plant Phase 6 Energy Efficiency Upgrades. Ameresco will provide engineering services for the subject
project in accordance with the following:
Engineering Services
A. Audit Phase Services will include:
Ameresco will undertake an Energy Audit of the Facilities. The Energy Audit will identify cost
effective Energy Conservation Measures (ECM's). Ameresco will present to the Owner a written
Energy Services Proposal, including the Energy Audit Documentation. The Energy Services
Proposal will set forth at least the following:
1) A description of the systems which will receive ESCO Equipment and ESCO Services;
2) The Cost Effective ECM's to be installed or caused to be installed by Ameresco and a
description of the ECM's analyzed but disqualified under the cost effectiveness criteria;
3) The services that Ameresco will perform on or in the Facility, including but not limited to _
engineering, construction management, the operations and maintenance procedures for use
on ESCO Equipment, training for Facility personnel, providing warranty service, and equipment
maintenance;
4) The Maximum Allowable Project Cost, itemized in detail;
5) Recommendations for replacement of Existing Equipment, along with recommendations for
improvements to Existing Equipment and Operating Conditions;
6) The Baseline Energy Consumption for the identified systems, computed from monitoring
building systems for 2-4 weeks and annualizing with historical data and including the data,
methodology and variables used to compute the Baseline, and the Baseline calendar period
which will not be less than twelve (12) months;
Edmonds Wastewater Treatment Plant Phase 6 ESCO
Page 2 of 5
7) The estimated Energy Savings and Energy Cost Savings that are expected to result from the
installation of Ameresco Equipment and from Ameresco Service, and an explanation of the
method used to make the estimate;
8) The method by which Energy Savings and Energy Cost Savings will be calculated during the
term of the Energy Services Agreement;
9) A description of how Ameresco will finance its acquisition of Equipment and when title to the
Equipment will pass to the Owner;
10) A description of how the Energy Cost Savings will be guaranteed by Ameresco;
11) A description of how Ameresco proposes to be compensated;
12) The term of the Energy Services Agreement;
13) The Termination Value for each year during the term of the Energy Services Agreement;
14) The schedule for project completion;
15) The nature and extent of work and equipment that Ameresco anticipates it will receive from
other firms under sub -contract;
16) Preliminary measurement & verification (M&V) plan: Ameresco will provide on -going
measurement and verification to help ensure the predicted savings are achieved throughout
the first 1 year of the agreement. Post installation Measurement and Verification (M&V) will be
performed based on the International Performance Measurement and Verification Protocol
(IPMVP) — Option A (Retrofit Isolation -Key Parameter Measurement), and on Section IX —
Method of Calculating Energy Savings and Energy Cost Savings. Ameresco will attend one
annual meeting to review the Measurement & Verification results and reconcile energy savings.
17) Preliminary Design: Ameresco proposes to provide a preliminary design in sufficient detail to
obtain contractor cost estimates and to develop a project budget that would be used in the
Energy Services Proposal. This would provide funding to perform in-house design as well as
hire design sub -consultants for mechanical, electrical, structural, process design and regulatory
research such as Department of Ecology and PSCAA air permitting. The Preliminary Design
becomes the property of the client regardless of the decision to proceed with the construction
project. (Identified as item B in fee schedule below.)
a) Audit phase design efforts or "Phase I" design will produce a preliminary design for the
installation of the City -selected pyrolysis system, dryer, and ancillary equipment and its
integration into the existing WWTP process and incinerator room. Phase I will include the
preparation of a Basis of Design (BOD) technical memorandum and an Engineering Report
in compliance with WAC 173-240-070. The BOD technical memorandum will be included
in the Engineering Report, as well as, the code review, permit feasibility analysis, and
construction sequencing analysis as described below.
b) Developing the BOD will include review of recent plant telemetry for biosolids processing
rate in order to update plant solids loading calculations and to determine capacity/sizing of
the new system. (The plant SCADA monitoring data gathered since the Dewatering screw
presses became operational suggest higher solids loading than previously assumed.)
c) The engineering report will also include an overview of the selected technology, application
and performance at other installations, and review of testing data (from site samples) used
for sizing and verification of technological applicability to satisfy the new and developmental
technology requirement(s) for submission of data per the Orange Book.
d) Phase I will also include the preparation of pre -design drawings and review of the
Ameresco-prepared Construction Work Scope Narrative. During this phase, Coal Creek
Environmental will provide permitting assistance and coordination with applicable
permitting agencies to assess air emissions permitting requirements.
e) Preliminary design includes the development of 30% design drawings for the installation of
selected equipment within the existing WWTP incinerator room. The 30% drawings will
Edmonds Wastewater Treatment Plant Phase 6 ESCO
Page 3 of 5
show general equipment sizing, layout, and configuration within the incinerator room. The
30% drawings will include general, demolition, process mechanical, structural, electrical,
plumbing, fire suppression, and HVAC drawings.
f) In the audit phase cost budgets for the "Phase II" design services will be developed. Phase
II design would include the detailed design for the installation of the selected process
equipment and its integration into the existing WWTP process, WWTP building structure
and building mechanical systems, and WWTP building electrical systems. Phase II will also
include engineering services during construction, start-up and commissioning engineering
support, and project close-out. (Phase II design IS NOT included in this audit fee proposal.)
Conservation measures will include items that save energy, water or other resources (including
various operational cost savings measures associated with operating the existing biosolids
incinerator). The Energy Audit will provide detailed documentation of fieldwork for the audit,
calculation input and output in support of the recommendations made in the Energy Services
Proposal, economic and engineering assumptions, sketches, floor plans and any other information
developed in the course of the Audit.
Cost Effectiveness Criteria
It is understood that the cost effectiveness criteria for this project is as follows:
1. Future post -project cash flow, including utility bill savings, maintenance and operational
savings, and financing costs will be neutral or positive with respect to pre -project cash flow,
assuming a finance term of no more than 15 years and an annual energy cost escalation of
1.5%.
2. The selected Energy Conservation Measures (ECMs) will be evaluated as a bundle in
determining whether or not they meet the cost-effectiveness criteria.
3. The total cost of implementing the ECMs will include the cost of the investment grade audit,
design, labor and materials, construction management, DES fees, ESCO fees, bonding,
permits, taxes, and other costs that may be agreed to.
4. All utility rebates, State grants, or other rebates and grants associated with the proposed
bundle of ECMs will be deducted from the cost of implementing them before determining their
cost-effectiveness.
5. No more than 90% of the energy cost savings and 100% of the maintenance and operational
cost savings (purchased parts and service contracts, but not internal labor costs) will be used
for the purpose of determining cost-effectiveness. Ameresco does not guarantee the
maintenance cost savings.
6. The finance period for the proposed bundle of ECMs may not exceed their average useful
life.
If Ameresco develops a project that meets the cost effectiveness criteria, the client is responsible for
the full amount of the audit; the item A "Energy Audit" fee can either be rolled into the construction
contract or be paid in full by the client.
Edmonds Wastewater Treatment Plant Phase 6 ESCO
Page 4 of 5
Fee for Engineering Services:
A. Basis and amount: Fixed Fee for Services
A) Energy Audit: $61,600
B) Preliminary Design: $174,400
C) TOTAL: $236,000
It is understood by Ameresco that payment and terms are contingent upon the requirements set forth
in the Energy Services Proposal.
Furthermore, it is understood by Ameresco that item B "Preliminary Design" is a deliverable that
becomes the property of the City and that Ameresco shall be paid $174,400 upon delivery of the
Preliminary Design package.
Schedule for En ineerin Services:
The Energy Audit will be complete by August 15th, 2018.
Preliminary results of the audit are intended to be provided to Edmonds in mid -July so that scope and costs
can be evaluated and adjusted as necessary by early August. To meet this schedule, Ameresco would use
'working drawings' created by BHC to develop cost estimates.
The formal preliminary design drawings and engineering report by BHC for "Phase 1" will be completed by
September 1st, 2018.
We at Ameresco, Inc. appreciate the opportunity to provide these services. If this proposal for Audit
Services is satisfactory, please forward contract documents.
Sincerely,
Amer o, Inc.
Grant A. Thorsland
Regional Manager - Northwest
Attachments: Fee Proposal, Conservation Measure Lists
Exhibit A — BHC Consultants Scope of Work
Exhibit B — BHC Consultants Preliminary Design Budget
Edmonds Wastewater Treatment Plant Phase 6 ESCO
Page 5 of 5
Project: Wastewater Treatment Plant Phase 6 — Incinerator Replacement
Date: 3/10/2018
Hourly Summary:
TA5tt
Field/Audit
Analysis/Calculations
Evaluation of ECMs
Report Write-up
Customer Presentation
Travel
Total Hours:
Hourly Rate:
Estimated Fee for Services:
Project
Construction
Manager
Manager
55
18
55
0
27
27
24
0
18
18
22
11
201
73
$ 130
$ 120 $
$ 26,194 $ 8,768 $
Feld Audit
Project
Technician /
Admin.
Engineer
TAB / Cx
Assistant
Tota@ Hours
77
18
0
168
66
0
4
126
9
0
0
62
9
0
0
33
9
0
4
49
27
4
0
64
197
22
9
503
120
$ 105
$ 75
23,648
$ 2,325
$ 664
$ 61,600
Item A- Energy Audit Fee $ 61,600
Item B -Preliminary Design Services (sub -consultants) $ 1.74,400
Total Audit Fee -Energy Project: $ 236,000
Project: Wastewater Treatment Plant Phase 6—Incinerator Replacement
Pate: 3/1012018
Waste Water Treatment Plant
Mechanical Conservation Measures Rank
Ce ntri sys-Bloforcetech - Evaluate replacement of existing fluidized bed incinerator
with a gas -fired dryer and Bioforcetech Pyrolysis system for decomposition of
biosolids through a non -incineration process which yields a "green" renewable
biproduct known as Biochar.
SOLIDS-M1
-The measure will include the dewatered cake hopper, "schwing" pump, drying,
3
odor control modification, product conveyance to haul -away bin, control strategy
development and integration to scada, and staff training.
- The measure will save energy and offset operating costs associated with the current
incinerator which is aged and increasingly more costly to operate.
PAYBACK RANK NOTES:
1) Measures that are likely to pay for themselves through energy savings and utllity incentives.
2) Measures that may pay for themselves, or may require some capital infusion
3) Measures that wl11 require signiflcant(>50%1capltal Infusion