Department of Enterprise Systems Funding Approval and Interagency AgreementWl(1) Intergovernmental Agreement ❑ (L) Lease Agreement
Z Z (S) Purchase of Services n (W) Public Works n (0) Other
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Il'- Bid/RFP Number:
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vEffective Date:
� 007/10/2020
Has the original City contract boilerplate language been modified?
I.- If yes, specify which sections have been modified:
pDescription
V of Services:
Total Arr
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Z Remarks:
LL Total Cost is $26,121,040
All to ultimately come from Wastewater Rates - Bonds to be sold in 2020
2020 Expense budget approved at $11,037,000
Date: 12/31 /2021
Authorization Level:
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CONTRACT ROUTING FORM
No. 2020-157, 2020-793
(City Clerk Use Only)
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Originator:
Phil Williams
Routed by:
Scott Passey
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Department/Division:
Date:
07/08/2020
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Name of Consultant/Contractor:
Department of Enterprise Systems
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CONTRACT TITLE:
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Funding Approval & Interagency Agreement
Type of Contract: (GR) Grants
Mayor
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1. PW Director
Q 2. Risk Management/Budget
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❑ 4. Consultant/Contractor
❑ 5. Other
✓� 6. City Council Approval
Date (if applicable)
7. Mayor
❑ 8. City Clerk
07/08/2020
State of Washington
ENERGY PROGRAM
Department of Enterprise Services
INTERAGENCY AMENDMENT
IAA No.:
K5211
P.O. Box 41476
Project No.
2020-157, 2020-793
Olympia, WA 98504-1476
Amendment No.
2 Revised
CITY OF EDMONDS
7110 210th Street SW
Date:
July 9, 2020
Edmonds, WA 98020
INTERAGENCY AMENDMENT
Between
CITY OF EDMONDS
And
WASHINGTON STATE DEPARTMENT OF ENTERPRISE SERVICES
The parties to this Amendment, the Department of Enterprise Services, Energy Program,
hereinafter referred to as "DES", and City of Edmonds, hereinafter referred to as the "CLIENT
AGENCY", hereby amend the Agreement as follows:
The purpose of this Amendment is to establish a vehicle for DES to provide future Energy/Utility
Conservation Project Management and Monitoring Services to the CLIENT AGENCY and to
authorize the development of the energy services proposal.
1. TERM. The term of the agreement commences April 5, 2018, and ending on December 31,
2021 unless altered or amended as provided herein.
2. STATEMENT OF WORK; COMPENSATION. Energy Program shall provide the
following services, for the following compensation, to Client Agency.
a. SERVICES: DES shall furnish the necessary personnel and services and otherwise do all
things necessary for or incidental to the performance of the work set forth in Attachment
"A" and Attachment "C", attached hereto and incorporated herein by reference. Unless
otherwise specified, DES shall be responsible for performing all fiscal and program
responsibilities as set forth in Attachment "A" and Attachment "C".
Energy/Utility Conservation projects shall be authorized by Amendment to this Agreement.
2a.1 City of Edmonds Energy Upgrades / Various Building outlined in the McKinstry
Essention, LLC Energy Services Proposal dated May 5, 2020. Project No. 2020-157.
2a.2 City of Edmonds WWTP Phase 6 Carbon Recovery outlined in the Ameresco,
Inc. Energy Services Proposal dated May 28, 2020. Project No. 2020-793.
Interagency Agreement No. K5211 Page I of 3
b. COMPENSATION. 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.
Project Management Services (Attachment A): For Project Management Services
provided by DES, 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".
ii. Termination Fee: If the CLIENT AGENCY after authorizing an investment grade audit
and Energy Services Proposal, 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". 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).
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 the CLIENT AGENCY, and
provided by DES under Attachment "C" of this Agreement, the CLIENT AGENCY
will pay DES $2,000.00 annually for each year that monitoring and verification
services are provided.
c. PAYMENT OF ESCO SERVICES. Compensation for services provided by the ESCO
shall be paid directly to the ESCO by the CLIENT AGENCY, after DES has reviewed,
recommended approval, and sent the invoices to the CLIENT AGENCY for payment.
2c.1 Energy Project Management Fee for the work described in Section 2a.1 is $51,600.00.
Anticipated billing date for this Amendment is December 31, 2020. Project No. 2020-
157.
2c.2 Energy Project Management Fee for the work described in Section 2a.2 is
$296,976.72 which, in lieu of lump sum, shall be broken into progress payments
of six payments of $49,496.12 every quarter. Starting from Notice to Proceed
thru project acceptance. Anticipated billing date for this Amendment is
December 31, 2021. Project No. 2020-793.
The new total Agreement value is $348,576.72.
Sections d. through e. terms and conditions of the original Agreement remain in full force and
effect.
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
Interagency Agreement No. K5211 Page 2 of 3
energy 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
60 days of the expiration or termination of this Agreement.
b. PAYMENT PROCEDURE. The CLIENT AGENCY shall pay all invoices received from the
Energy Program within 90 days of receipt of properly executed invoice vouchers. The
CLIENT AGENCY shall notify DES in writing if the CLIENT AGENCY cannot pay an
invoice within 90 days.
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
d. BILLING ADDRESS. Invoices shall be delivered to Client Agency electronically.
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 Edmonds
Title
K5211IAAamd2rw
07/13/20
Date
Department of Enterprise Services
Energy Program
Roger A. Wigfield, PE
Energy Program Manager
Title Date
Interagency Agreement No. K5211 Page 3 of 3
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 Amendment
to this Agreement.
Assist the CLIENT AGENCY in the selection of an Energy Service Company (ESCO)
consistent with the requirements of RCW 39.35A for local governments; or 39.35C for state
agencies and school districts.
2. Assist in identifying potential energy/utility conservation measures and estimated cost
savings.
3. Negotiate scope of work and fee for ESCO audit of the facility(s).
4. Assist in identifying appropriate project funding sources and assist with obtaining project
funding.
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 recommend approval of the ESCO's 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. K5211
ATTACHMENT B - Fee Schedule
2019-21 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
1, 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...................................
3 8,300................................
14,400
600,001.........
700,000...................................
3 6, 500................................
13,700
500,001.........
600,000...................................
3 3, 800................................
12,600
400, 001.........
5 00, 000...................................
3 0, 200................................
11,300
3 00,001.........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 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 energy service proposal. No termination fee will be
charged unless the CLIENT AGENCY decides 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 $25,700.00 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. K5211 Rev. 4/5/18
ATTACHMENT C - SCOPE OF WORK
Energy/Utility Conservation Projects
MEASUREMENT & VERIFICATION SERVICES
Statewide Energy Performance Contracting Program
If requested DES will provide the following measurement and verification services 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 recommend approval of 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
STATE OF WASHINGTON
DEPARTMENT OF ENTERPRISE SERVICES
1500 Jefferson St. SE, Olympia, WA 98501
PO Box 41476, Olympia, WA 98504-1476
June 9, 2020
TO: Pamela Randolph, City of Edmonds
FROM: Rachel Walters, Contracts Specialist, (360) 407-8029
RE Agreement No. 2020-793 A (1)
M&V Agreement No. 2020-793 B (2)
Contract No. 2020-793 G (1-1)
IAA No. K5211
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):
ESCO Professional Services Total $ 5,315,264.08
ESCO Measurement and Verification Total $ 647,496.00
ESCO Construction Total $19,861,303.20
DES Energy Program Project Management Services Total (IAA) $ 296,976.72
Total Funding $26,121,040.00
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/client agency bears the liability for any issues related to the funding for this project
By
N e / Title
Mike Nelson, Mayor
7/14/20
Date
Please sign and return this form to E&AS. If you have any questions, please call me.
Agreement No. 2020-793 A (1)
M&V Agreement No. 2020-793 B (2)
Contract No. 2020-793 G (1-1)
Funding Approval Detail
ESCO Professional Services
Design and Implementation of Energy Conservation Measures $ 4,813,645.00
Apprenticeship Incentive $ 905.80
Sales Tax (10.4%) $ 500,713.28
Total $ 5,315,264.08
ESCO Measurement and Verification
First Year Measurement & Verification $ 586,500.00
Sales Tax (10.5%) $ 60,996.00
Total $ 647,496.00
ESCO Construction
ESCO Contract Amount $ 17,146,690.00
Sales Tax (10.4%) $ 1,783,255.76
Contingency Amount with Tax) $ 931,357.44
Total $ 19,861,303.20
DES Energy Program Project Management Services
Project Management Fee from IAA No. K5211, Amendment No. 2 $ 296,976.72
Total $ 296,976.72
Note: Items and dollar values shown in a lighter color shade have been approved via previous
funding authorizations and are shown for informational purposes only.
2020793GconFundrw