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Request for Proposals Historic Millwork District Energy AnalysisTO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Approval of RFP for a District Energy Analysis for the Dubuque Historic Millwork Di4TE: March 10, 2009 Economic Development Director Dave Heiar is recommending approval of a Request for Proposals for a District Energy Analysis for the Historic Millwork District. I concur with the recommendation and respectfully request Mayor and City Council approval. ~ t , Michael C. Van Milligen ~,,, MCVM/jh Attachment cc: Barry Lindahl, City Attorney Cindy Steinhauser, Assistant City Manager David J. Heiar, Economic Development Director March 9, 2009 TO: Michael C. Van Milligen, City Manger FRONT: David J. Heiar Economic Develo ment Director E~ ~ t p RE: Approval of RFP for a District Energy Analysis for he Dubuque Historic IVlillwork INTRODUCTION The purpose of this memorandum is to request City Council approval of a Request for Proposals (RFP) for consulting services to provide a district Energy Analysis for the redevelopment of the Dubuque Historic Millwork District. The proposed RFP is attached to this memo. BACKGROUND As an outgrowth of the Envision 2010 process, members of the committee saw the need to define the Warehouse District through a master plan process. Both the public and private partners have sensed the need to define the long range plan for the district, to anticipate and guide future investment and to ensure quality development. The committee also prepared the Warehouse District Revitalization Strategy that was approved by the Dubuque City Council on August 6, 2007. The first goal of that strategy was to develop a Master Plan for the Warehouse District. The City Council authorized a contract with the Cunningham Group of Minneapolis to prepare a Master Plan for Warehouse District. The Cuningham Group work began with a two day (June 25-27) visit to the community where several focus groups were conducted to quickly learn about the Historic Millwork District and to get community input. The consultants met with the business community, city staff, the City Council, property owners, the Envision 2010 committee, Dubuque Main Street, a general public meeting inviting the entire community and other stakeholders for their input. Cuningham then gave a presentation to the steering committee to outline what they had learned from the visit and gave a rough design of what they considered to be the next steps to developing the plan. City staff then provided direction over the next few months to prepare for the second input trip held October 7-8, 2008. The same focus groups met again with the consultants to be exposed to the work to date and a preliminary development summary for the district. A draft of the Master Plan was delivered to City Staff and the Steering committee for their review at the end of December 2008. The committee met and gave their comments on the plan to the consultants and those comments have been incorporated into the plan. The City Council held a worksession on February 2, 2009, to discuss the plan. Andrew Dresdner of the Cuningham Group, and Chris Brewer of ERA gave a presentation of the key components of the plan. Comments were received and changes were made to the document reflecting those comments. The Council adopted the Master Plan on February 16, 2009. One of the recommendations of the Historic Millwork Master Plan was to analyze the district for the potential development of a district wide energy system. DISCUSSION Services are being sought to analyze a District Energy System for the Dubuque Historic Millwork District, defined by 12t" Street on the north to 5t" Street on the south, White Street on the west and the Hwy 61-151 corridor on the east. As identified in the RFP, the committee will be seeking a consultant or two consultants that have experience in several disciplines. The study is broken into two major elements as follows: A. Technical Assessment • Demand Forecast • Business as Usual Analysis • Potential Heat Source • Energy Distribution System • Metering Technology B. Business and Economic Analysis • Ownership and Operating Model • Project Financing • Pricing Structure, Developer Participation and Flexibility Mechanisms • Financial Projections • Legal and Regulatory Issues • Risk Management Plan • Work Plan for Phase I of Energy System • Assessment of Sustainable Benefits A more detailed description of the scope of services being sought is available in the attached RFP. Those chosen to serve on the selection committee are as follows: ® Aaron DeJong, Economic Development ® David Heiar, Economic Development ® Cindy Steinhauser, City Manager's Office ® Laura Carstens, Planning Services ® Paul Schultz, Public Works ® Steve Brown, Engineering, Project Manager ® Sheila Samuelson, Sustainability Coordinator ® Jill Connors, Property Owner Representative The City funding for the consultant is included for the FYE 2010 budget adopted by the City Council on March 9, 2009. RC®MMEND,4TION On behalf of the committee, I recommend approval of this RFP for consulting services. A recommendation on the consultant will be presented to the City Council at a future date for final approval. ACTI®N STEP The City Council is requested to approve the RFP and authorize that the RFP to be made available to prospective consultants. F:\USERS\DHeiar\Warehouse District\Approval of RFP for District Energy Analysis memo.docx CITY O DU UQU ,IOWA R QUEST FOR PROPOSALS DISTRICT NERDY INITIAL ANALYSIS FOR THE HISTORIC MILLWORK DISTRICT INTRODUCTION The City of Dubuque, Iowa is soliciting proposals from qualified individuals or firms to conduct a study of the feasibility of district energy in the Historic Millwork District from a technical and financial perspective. The City has adopted as a priority the mission to become a more Sustainable Dubuque. Our vision is to be a viable, livable, and equitable community, creating a sustainable legacy for generations to come. Information regarding our Sustainable Dubuque initiative can be found at www.sustainabledubugue.org . In order to achieve this vision, the City and its partners seek to improve their activities in areas including smart energy use, resource management, green buildings, community design, healthy air, clean water, regional economy, community design, and community knowledge, Achieving energy efficiency and reducing greenhouse gas emissions are important priorities within this plan. The Historic Millwork District was selected as one of the Top 10 community projects through the Envision 2010 process. This collaborative community process engaged 12,000-15,000 area citizens in identifying the top 10 projects for the Dubuque area. The District has over 1 million square feet of underdeveloped space which has the potential to be a neighborhood where citizens can live, work, and play all in one area. The space is primarily owned by four property owners who are actively engaged in the revitalization of the district. There are a number of creative industries that are located in the warehouse district as well as technology based companies. There is also a millwork master plan committee that meets regularly as well as a millwork district Envision 2010 committee that meets to stay updated on the progress of the Millwork district. In addition, the city of Dubuque is working collaboratively with key local partners and the National Trust for Historic Preservation to create a Preservation Green Lab in the Millwork District. This Green Lab will provide best management practices for the blending of sensitive restoration with smart energy systems and sustainable infrastructure design. A Master Plan for the area was developed and recommends maximizing community, environmental and economic benefits through cooperation between the public and private sectors. The City seeks a consultant to assist in the analysis of a potential district energy solution and analysis on the merits of a combined heat and power system. i4CKGROUN® The Historic Millwork District borders on the larger downtown area including the central business district, transitional mixed-use neighborhoods north, west and east of downtown, and the Port of Dubuque east of downtown. The District is bordered by White Street to the west, 12t" Street to the north, and Hwy 151/61 to the east and south, and contains many underutilized industrial buildings ready for redevelopment. Under current practices, each building development bears responsibility to provide for its own space heating and cooling and hot water requirements, most of which are met by using electricity or natural gas. Such energy systems typically are installed by developers and operated by individual building owners, frequently using standard efficiency equipment. Local utilities provide regular electricity and gas service to individual buildings. Typically, electricity is metered in individual suites and businesses, and gas is metered at the building level. The City of Dubuque has a commitment to sustainable development, and is taking steps to understand the potential for addressing energy use for space conditioning (i.e., heating and cooling) and domestic hot water. The City is seeking to explore the feasibility of a district energy system and combined heat and power to serve the District, and with the potential to expand to the surrounding neighborhood. The resulting analysis will determine the respective heating and cooling service areas, as appropriate, given energy demand, technical considerations and economics of energy production. Consideration of whether to pursue implementation of a district energy system development will be based on the following objectives: ® Economic performance o Cost of service comparable to customer alternatives o Long-term energy price competitiveness and stability to residents and businesses o Return on investment commensurate with debt costs, risk and community benefits • Sustainable development objectives for Dubuque Potential for greenhouse gas (GHG) emission reductions, through advanced energy efficiency and clean energy . Contribution to local energy efficiency and security by shifting from gas and electric heating/cooling to alternative energy sources . Establishment of infrastructure to provide utility services that support superior ecological performance SCOPE OF WORK The City of Dubuque Economic Development Department (City) is seeking proposals from individuals, firms, teams or consultants, hereafter called 2 "Proposer(s)," with demonstrated experience in conducting analysis and preparing reports on the technical and business issues associated with the creation of a district energy system, and the City proposes to engage the successful Proposers) to provide preliminary technical and financial/legal/organizational analysis to the City as it works to prepare a phased, detailed business case and development plans for the Historic- Millwork Distrcit, all as described in this RFP. This RFP encompasses two components, which are described briefly here and in more detail throughout this RFP. While the City is inviting proposals that address one or both of the work components, City staff will insist on and ensure effective communication between consultants working on the respective components. Proposing consultants should demonstrate how they would work to facilitate communications across the work components. a. A Preliminary Technical Assessment is required to address technical issues related to energy demand; status quo system costs and performance; neighborhood system infrastructure; alternative heating and cooling technologies; and monitoring, metering and control technologies. b. A Business and Economic Initial Analysis is required to provide the basis for evaluating the business case for the utility. This work will rely on information produced through the technical assessment component and assumptions when detailed information is not readily available. Key business issues include ownership, governance, and operating options and implications; pricing options; financial, environmental and social performance; risks and risk mitigation strategies; strategic issues; and near-term action plans. A detailed summary of the Scope of Work for each component is provided below. Proposers may submit bids for one or both components. Proposers must submit separate work plans and budgets for each component. No preference will be given for combined bids, and the City reserves the right to award each component separately. The City also reserves the right to request modifications to consultant teams, if the review of proposals indicates that such modifications would contribute to improved performance with regard to the RFP objectives. The successful bidder for the business and economic analysis will be expected to participate in key workshops and review of interim and final deliverables from the technical assessment, in order to ensure the assessment answers issues critical to the business analysis and to ensure consistency in key assumptions. PROJECT FUNDING The City anticipates the total cost for all services requested herein to be approximately $65,000. However, the Proposer's proposal shall include the Proposer's true estimated cost to perform the work irrespective of the City's budgeted funds for this work. 3 TIMELINE FOR SELECTION The following dates are proposed as a timeline for this project: Written proposals due at 1:00 p.m. April 2, 2009 Interviews of short-listed proposers, if deemed necessary April 8 & 9, 2009 Selection committee recommendation to City Council April 20, 2009 The City reserves the right to make adjustments to the above noted schedule as necessary. TECHNICAL OR REQUIRED SERVICES The successful Proposer shall perform the tasks listed below for this project, and shall be expected to work closely with designated City personnel to accomplish these goals: A. Technical Assessment The technical assessment is required to address technical issues in order to support a full business case. Key technical issues include demand forecasts, business as usual energy systems, a full inventory and characterization of feasible heat sources and basic design considerations for the community heat loops. 1. Demand Forecast Working with the City and land owners, the consultant will develop three plausible scenarios for the rate, pattern and type of development and maximum potential energy loads within the precinct area, the precise boundaries of which will be determined by City staff in consultation with the consultant, between 2010 and 2025: 1) an expected demand scenario; 2) a low demand scenario; and 3) a high demand scenario. Load forecasting may include opportunities to reduce or "flat" line peak demand based upon sustainable practices such as layered pricing. Load forecast should consider both new development and existing developments that could realistically be served by the district energy system at some point. The consultant should be prepared to consider demand based on both scenarios of mandatory and voluntary participation by developers and businesses in the district energy system. Load forecast should be based on estimates of building numbers /area representative load profiles for different types of buildings /uses. City staff should be consulted on appropriate assumptions for building energy efficiency, and forecasts should also reflect likely changes in efficiency over the entire development timeframe. 4 The consultant should establish logical sub-areas for preparing and presenting load forecasts. Sub-areas should reflect meaningful boundaries based on some combination of development timeframes, planning areas, ownership, use, and/or other spatial features that may be most relevant for analyzing demand and planning system configuration and staging. Load forecast should evaluate demand for: . Space heating; Space cooling (current and emerging practices); . Domestic hot water; and Where relevant, forecast should include: . Monthly and annual demands (total and by sub-area and sub-sector); Monthly and annual peak demands (total and by sub-area and sub- sector); and . Representative average and peak daily load profiles by month (total and by sub-area and sub-sector). Peak demand forecasts should consider coincidence among load profiles. Load forecasts should be structured to allow summaries by sub-area and sector (e.g., commercial, residential, etc.). Sub-areas will be based on the development phases identified in the Historic Millwork District Master Plan. In addition to three demand scenarios, the consultant will be expected to identify significant potential extensions of service to neighboring loads. All major assumptions in the load forecast should be clearly stated, with the forecast model designed in such a way so that future sensitivity analysis can be performed if the City so chooses. 2. Business as Usual (BAU) Analysis This analysis will provide the City with a projection of the likely form, costs (capital and operating costs) and environmental performance (e.g., GHG emissions) of BAU energy system (for each demand scenario). The purpose of the BAU analysis will be for comparison with district energy, and should provide reference information on cost and performance as it relates to: ® Potential partner(s) in a district energy system (or systems if separate systems for heating and cooling are warranted); . Developers and building owners; and . Energy service end-users. The BAU analysis should provide information on individual sub-areas, as determined in the "Demand Forecast" analysis. The BAU analysis should account for uncertainties related to energy demand and price forecasts. The BAU 5 scenario must consider current and forecast prices of conventional energy sources, and provide a price range to reflect uncertainty over future prices. 3. Potential Heat Sources The consultant will identify and provide: (a). Location and size of potential local or neighboring heat sources including: ® Waste heat sources (e.g., from industrial facilities, space cooling); ® Geo-exchange and sewer heat exchange resources; • High-efficiency natural gas boilers and/or co-generation systems (located in one or more mini-plants within the service area); ® Geothermal resources; and . Significant neighboring resource options. (b). Maintenance and operations protocol and issues for heat energy. systems. (c). Construction advantages/disadvantages for heat energy options. (d). Capital, construction, and operating costs for available heat energy options. In addition, the consultant will be expected to recommend a preferred set of heat sources (with rationale) to meet anticipated heating demands under the high, expected and low demand scenarios. 4. Energy Distribution System The consultant will identify the most cost-effective technology and conceptual layout for energy distribution loop(s) within the precinct, taking into account likely pattern and staging of development (expected case), most likely heating and cooling sources, and location /installation of other municipal infrastructure (e.g., roads, water mains, etc.). This element of work should include: • Staging and characteristics of installation, including possible synergies with installation of other municipal infrastructure; • Pipe technology, size and placement; • Operating temperatures and flows; • Key technical specifications for energy sources and loads that interconnect to the system (ensure compatibility of system with a variety potential energy sources); . Building distribution systems (options available); ® System monitoring, control and access requirements; ® Capital and operating costs; and . Maintenance and operations requirements. This work also must identify any significant changes in system design that may be required or beneficial under the high or low demand scenarios. 6 5. Metering Technology The consultant will conduct an assessment of options for metering energy sources and sinks, and will identify reliability, acceptability and costs of each option, including compatibility with existing and anticipated third party standards. Of available metering technology, recommend a preferred approach with rationale. B. Business and Economic Analysis Building on the preliminary technical assessment above, the business and economic analysis will assess the feasibility of establishing a district energy system, to determine the potential benefits of this undertaking, and to evaluate various ownership, governance and operating options. The business analysis will be separated into two stages. 1st Stage (Section 1-3): Strategic evaluation of possible ownership and operating structures for a district energy system, including a partnership approach (i.e., mixed ownership and/or operating partnership). 2nd Stage (Sections 4 - 8): Using the evaluation from the 1st Stage, the City will select one ownership and operating model as .available budget permits, for more detailed analysis, including detailed financial projections and risk assessment. The detailed analysis also will consider different options for financing and governance. The business analysis must include information relevant to multiple stakeholder perspectives, including: The City of Dubuque; . Potential partner(s) in a district energy system; • Developers and building owners; and Energy service end-users. 1. Ownership and Operating Model (a) The consultant is to deliver an analysis of the various ownership and operating options for a district energy system, including partnership options. This analysis should provide for an early review of all viable options in order to reduce the number of options for detailed analysis. (b) The comparison of ownership and operating options should include an assessment of the following, from each of the potential ownership and operating partners' point of view: 7 ® Financing implications (cost and . Legal liability implications; ® Financial implications (capital availability of capital); spending, operating costs, operating revenues); ® Financial, operational, hazard and strategic risk implications (to be coordinated with the Risk Management discussion in Section 6); ® Potential for third-party funding (e.g., capital and/or operating grants); • Tax implications (e.g., income tax, property tax, any applicable energy or utility levies. ® Tax credit or grant implications (c) The discussion of operating options should include an evaluation of whether the City or another entity should operate all or selected components of the energy system. The main components of the system are: • Ownership of the distribution assets (e.g., heat loops); . Ownership of the non-distribution assets (e.g., heat sources); . Design and construction of system components; • Operations and maintenance of system components; and ® Billing and customer service. Based on the completion of this task, the City's project committee will determine a preferred ownership and operating model to form the basis for the remainder of the business analysis. 2. Project Financing The consultant should include a detailed discussion about financing options available for the implementation and operation of a district energy system, including access to financing options available through government grants or loans. Financing options should be reflected in the financial projections above. 3. Legal and Regulatory Issues The consultant should provide a thorough discussion of the legal and regulatory issues that the City or another ownership entity would have to address in developing a district energy system. (a) Identify what changes to existing City charter, code or other policy documents would be required to achieve the desired objectives. (b) Address in detail the legal and regulatory issues surrounding the contemplated ownership and operating model. (c) Discuss the legal and regulatory implications related to the ownership of the various energy sources (e.g., earth energy, sewer energy and waste heat). 8 (d) Discuss the legal and regulatory implications of ownership, sale or purchase of GHG emissions credits and other environmental credits. (e) Identify and address all major regulatory issues a district energy system utility would face (e.g., air quality, Iowa Utility Board). (f) Discuss legal and regulatory mechanisms for encouraging and/or requiring participation by developers and/or building owners in the district energy system. 4. Pricing Structure, Developer Participation & Flexibility Mechanisms (a) The consultant should deliver a thorough analysis of pricing options for all services to be offered, including pricing for energy sources. (b) This analysis should include a discussion as to whether participation in the district energy system should be optional or mandatory, for both privately-owned and publicly-owned land. (c) This analysis should tie into the Financial Projections described in Section 3 below, with the revenue implications of various possible pricing schemes for the system. (d) This analysis also should include an assessment of the impacts on customers of various pricing schemes, as compared to their costs under the BAU scenario (as defined in the technical assessment). This assessment should include a discussion of the business case for individual developers to participate in the district energy system, as they may bear some of the upfront costs. (e) This analysis should identify and discuss appropriate mechanisms for maximizing flexibility for the district energy system (e.g., to respond and adapt to changes in technologies, fuel prices and load growth over time). 5. Financial Projections (a) The consultant will be expected to deliver a detailed analysis of the projected financial performance of a district energy system. This work should include pro forma balance sheets, cash flows and income statements, as well as projected rates of return (e.g., return on investment, net present value, payback periods, plus other relevant performance measures). (b) The term of these projections should be 25 years. (c) Financial projections should be provided for at least four scenarios that reflect the range of high, expected and low financial performance for the City. These 9 scenarios should reflect the three demand forecasts, as well as the BAU scenario, developed in the technical assessment. (d) All major assumptions used in the development of these projections should be clearly stated, with the financial models designed in such as way so that future sensitivity analyses can be performed if the City so chooses. (e) A rationale for the discount rate(s) used in the analysis should be included. (f) The financial evaluation should be provided in an Excel spreadsheet model. The City will retain ownership of this model to allow for future sensitivity analyses. 6. Risk Management Plan Consultant's report should include a thorough analysis of all major risks to the City associated with the implementation, ownership and operation of a district energy system, as well as a discussion of mitigation and/or risk transfer options for each risk identified. (a) This discussion should include, but not be limited to, the following types of risk: ® Financial risks (e.g., capital and/or operating cost overruns, revenue generation, size, rate of growth, and stability of customer base, ability to set rates appropriately, exposure to energy commodity prices); • Operational risks (e.g., quality of service delivery, technological risk, coordination with private-sector developers and mechanical engineers, establishment of a new business area for the City); ® Hazard risks (e.g., legal liability); and • Strategic risks (political risk, reputation). (b) In addition to discussing risks to the City this section of the consultant's report should include a discussion of risks and associated mitigation strategies for all other major stakeholders (e.g., potential ownership and/or operating partners, building owners, energy customers, competing energy utilities, etc.). 7. Work Plan for Phase '1' of Energy System The consultant's report should include a detailed work plan for the creation and development of a Historic Millwork District energy system, with emphasis on the first three years of the development. This work plan should include, but not be limited to, the following elements: . Any immediate changes in zoning required; 10 Implementation of best practices model developed in cooperation with the city's national partners including ICLEI and National Trust for Historic Preservation; ® Implications for near-term infrastructure plans (e.g., roads, water, sewer and parks in the service area); ® Required changes to existing City charter, code or other policy documents, and City Council action to implement these changes; . Technical specifications to be delivered to developers; ® Mechanisms for effectively communicating the technical specifications to the developers who undertake -and the mechanical engineers who design - construction projects within the boundaries of the proposed district energy system; and ® The implementation steps to develop an operations and management program. 8. Assessment of Sustainability Benefits Drawing on the outputs of the technical assessment, the consultant will deliver a comprehensive analysis of the economic, and environmental aspects of the proposed district energy system consistent with the final business plan. This analysis should complement the financial performance projection work described above, and should encompass at least the same time horizon (i.e., 25 years). (a) A "business-as-usual" scenario should be used as the baseline against which sustainability benefits are measured. (b) The following should be included in the economic impact analysis of the proposed district energy system: ® Economic development potential, such as the creation of new jobs and business opportunities; and ® The possible economic value of GHG emissions reductions as a result of the system. (c) The environmental impact analysis of the proposed district energy system should address the system's impact on. overall GHG emissions as well as other environmental impacts, both positive and negative. Compliance with the ICLEI milestone software in measuring this impact is desirable. (d) The following should be included in the social impact analysis of the proposed district energy system: ® Local content in sourcing materials for the construction and operation of the system; • The quality of service delivered to end users; • The value of the district energy system as a learning and interpretation center; and 11 ® The value of the district energy system as a model that could be replicated in other communities. WORK PEFZFORf~E® BY THE CITY The City has assigned a project manager to oversee the successful Proposer's work and provide support as needed. Proposers should articulate all assumptions underlying their proposal in terms of the amount of project management and other project resources that the Proposer would require from the City project manager in the performance of their services. The City will provide the successful Proposer with a detailed list of all data and information required from the City to undertake the scope of services. ®ELIVERABLES AN® SCHE®ULE Deliverables shall be considered those tangible resulting work products that are to be delivered to the City such as reports, draft documents, data, interim findings, drawings, schematics, training, meeting presentations, final drawings and reports. Deliverables and schedule for this project shall include: A. Technical Assessment - Submit a written report (PDF and Word formats) that addresses all information requested above in the description of Technical or Required Services. The report shall set forth the analysis used to arrive at the conclusions reached, and shall clearly identify all assumptions and provide sources for all data utilized in the analysis. In addition, submit all models in Excel format, together with data files, and submit the following deliverables with respect to the following specific issues: 1. Demand Forecast -GIS database of the load forecast inputs and outputs by sub-area (May 10, 2009) 2. Potential Heat Sources -GIS database of the heat source inventory (May 10, 2009) 3. Energy Distribution System -GIS map of the conceptual heat loop design (May 10, 2009) B. Business Economic Assessment - Submit a written report (PDF and Word formats) that addresses all information requested above in the description of Technical or Required Services. The report shall set forth the analysis used to arrive at the conclusions reached, and shall clearly identify all assumptions and provide sources for all data utilized in the analysis. In addition, submit all models in Excel format, together with all data files. Tentative partial completion dates include: 12 May 10, 2009 Ownership and Operating Model May 10, 2009 Legal & Regulatory Issues and Project Financing June 1, 2009 Pricing Structure, Developer Participation & Flexibility Mechanisms, Financial Projects, and Risk Management Plan July 1, 2009 Business and Economic Analysis All deliverables and resulting work products from this contract will become the property of the City of Dubuque. 4. PLACE OF PERFORMANCE Contract performance will take place primarily at the Proposer's facility. On occasion and as appropriate, work will be performed at City facilities, athird-party location or any combination thereof. 5. PERIOD OF PERFORMANCE The City anticipates having the successful Proposers) begin work immediately upon contract execution with submittal of final deliverables to the City provided by May 10, 2009, for the Technical Assessment and by July 1, 2009, for the Business and Economic Analysis. Proposers are encouraged to develop work plans with interim deliverables to allow review and feedback by the City. Regular interaction with the City's project manager is encouraged. PROPOSAL PREPARATION AND SUBMITTAL An unbound original plus 4 double-sided copies and a PDF version of the submission shall be received in the City Clerk's Office of the City of Dubuque, 50 West 13t" Street, Dubuque, Iowa 52001 by 1:00 p.m. CST on Thursday, April 2, 2009. Proposals should be addressed to Steve Brown, Project Manager, at the above address. Questions and requests for clarification regarding this Request for Proposal can be directed to Steve Brown by telephone at (563) 589-4272, or by e-mail at sbrown(c~cityofdubugue.org. Each consultant assumes full responsibility for delivery and deposit of the completed proposal package on or before the deadline. The City of Dubuque is not responsible for any loss or delay with respect to delivery of the proposals. The City of Dubuque reserves the right to reject any and all proposals and to negotiate changes with any consultant. The City of Dubuque is not liable for any cost incurred by any consultant prior to the execution of an agreement or contract. Nor shall the City of Dubuque be liable for any costs incurred by the consultant that are not specified in any contract. The City of Dubuque is an Equal Employment Opportunity Employer. 13 Proposals must be clear, succinct and not exceed fifteen (15) pages. In a proposal for both components, neither the proposal for the Technical Assessment nor the proposal for the Business and Socioeconomic Analysis may exceed fifteen (15) pages, and the combined proposal may not exceed thirty (30) pages. Proposers who submit more than the pages indicated may not have the additional pages of the proposal read or considered. All submittals will be evaluated on the completeness and quality of the content. Only those proposers providing complete information as required will be considered for evaluation. The ability to follow these instructions demonstrates attention to detail. Proposers must provide all information as requested in this Request for Proposal (RFP). Responses must follow the format outlined in this RFP. Additional materials in other formats or pages beyond the stated page limit may not be considered. The City may reject as non-responsive at its sole discretion .any proposal or any part thereof, which is incomplete, inadequate in its response, or departs in any substantive way from the required format. Proposal responses shall be organized in the following manner: Letter of Transmittal Provide a letter of transmittal briefly outlining the consultant's understanding of the work and the name, address, telephone number, fax number and email address of the consultant's primary contact person. Profile of Firm Provide general information about the firm and its area of expertise as regards this RFP, including the qualifications of the project manager and other key personnel who would be assigned to the project. Proposal Qualifications • List the names of the anticipated project manager and other key personnel associated with the project and their qualifications and experience. • Describe the experience of the firm in performing similar projects for cities comparable to Dubuque. Describe the name and location of other sub-consulting firms that would be used by the firm in the project and the approximate percentage of the work that would be performed by each of these firms. Include the experience and qualifications of the sub-consultant firm and its key personnel in working on similar projects. Discuss the firm's ability to integrate this project into the firm's present workload. 14 Scope of Services Describe the means or strategy by which the consultant would satisfy the scope of services within the proposed schedule. Fees and Compensation Provide a proposed cost plus expenses budget for completion of the proposed scope of services with cost breakdowns by scope element. Quotation of fees and compensation shall remain firm for a period of at least 90 days from the submission deadline. Please separate the proposed budget from the other portion of the RFQ submittal. Initial screening will be done without knowing the consultant's proposed fee for services. References Include a project list with contacts for all similar projects that have been completed in the past five years. Identify the key personnel who worked on the referenced projects and who are expected to work on this project Certificate of Insurance The selected firm will be required to meet the City's insurance requirements for professional services (see attached Insurance Schedule). El~ALUATION CRITERIA Proposals will be screened to ensure that they meet the minimum requirements of the proposal format. A selection committee will review qualifying proposals, and may interview the short-listed firms. Factors to be considered by the committee may include the following: X Qualifications and experience of the firm and any sub-consultants. X Qualifications and experience of the principal consulting staff and sub- consulting staff that will work on the project. X Qualifications of firm in implementing successful, sustainable smart energy systems. X Information from references. X Grasp of project requirements and level of interest. X Design approach/methodology in completing scope of services, including sustainability; creativity and problem solving ability. X Responsiveness and compatibility between consultants and City; general attitude and ability to communicate. X Proposed schedule required to complete project. X Proposed cost to complete project. Consultants may be invited to an interview with the selection committee F:\USERS\DHeiar\Warehouse District\District Energy RFP.doc 3/11/2009 4:43 PM 15 IN511RANCE SCHEDULE C INSURANCE REf~UIREMENTS FOR PROFESSIONAL SERVICES TO THE CITY OF DUBUQUE 1. All policies of insurance required hereunder shall be with an insurer authorized to do business in laws, All insurers shall have a rating of A better in the current A.M. Best Rating Guide. 2. All Certificates of Insurance required hereunder shall provide a thirty (3a) day notice of cancellation to the Ci#y of Dubuque, except far a ten {10) day native for non- payment, if oancellation is prior to the expiration date. 3. shall furnish a signed Certificate of Insurance to the City of Dubuque, Iowa for the coverage required in Paragraph 6 below. Such Certificates shall include copies of the following endorsements: a) Commercial General Liability policy is primary and non-eontribu#ing. b) Commercial General Liability additional insured endorsements c) Governmental Immunities Endorsement. ~~ ,shall upon request, provide Certificates of Insurance for all subcontractors and sub-sub contractors who perform work or services pursuant to the provisions of this contract. Said certificates shall meet the insurance requirements as required of 4. Each certificate shall be submitted to the contracting department of the City of Dubuque. 5. Failure to provide minimum coverage shall not be deemed a waiver of these requirements by the Ci#y of Dubuque. Failure to obtain or maintain the required insurance shall be considered a material breach of this agreement. 6. Contractor shall be required to carry the following minimum coveragellimiis or greaser if required by law or other legal agreement: a) COMMERCIAL GENERAL LIABILITY General Aggregate Limit Products-Completed C7perations Aggregate Limit Personal and Advertising Injury Limit Each Occurrence Limit Fire Damage limit {any one occurrence) Medical Payments 1 c~P? $2,aQa,aOa ~1,aaa,ooa $1,aaa,0aa $1,aao,aoa ~ 5a,oao ~ 5,0aa January 2008 16 M~~llFtANG~ NCH ~U~E C (continued) IPI~l1FEA~GE C;~L1IRE~EN1'~ FGR PR~FE~~IC?NAt~ ~ERt/fCE~ TG T HF CITY GF I~U~t)t~tJE This coverage shat( be written on an occurrence form, not claims made form. All deviations or exclusions from the standard l~C} commercial general liability form CG Ob01 or Business owners BP OfltI2 shall be clearly identified. Form CG ~5 04 0~ g7 'Designated Location (s} General Aggregate limit' shall be included. Governmental Immunity endorsement identical or equivalent to farm attached. Additional Insured Requirement: The City of Dubuque, including ail its elected and appointed officials, all its employees and volunteers, all its boards, commissions andJor authorities and their board members, employees and volunteers shall be named as an additional insured on General Liability including "ongoing operations° coverage equivalent to ISC~ CG 2Q 10 Q7 04. b} Automobile 9 OOO,~OOQ combined sin~ie limit. c} I~C4RK~RS CflIt~PENSAT'IUId +& ~MPL®YERS LIABILITY Statutory for Coverage A Employers Liability: Each Accident $ ~ OO,OQO Each Employee Disease $ 10C?,OOQ Policy Limit Disease ~ bQQ,UCIU d} I~RC3FESSIQNAL LIABILITY a1,000,DOt7 e} UIVII~RFLLAIEKC~SS LIABILITY 'Coverage andJor limit of liability to be determined on a case-by-case basis by Finance Director. Completion Checklist ^ Certificate of Liability insurance (2 pages} ^ Designated Locations} General Aggregate Limit CG 25 04 03 97 (2 pages) ^ Additional Insured GG 2t} 10 07 04 ^ Govemmental Immunities Endorsement 2 aI'? January ~4Q~