Signed Contract_WPCP Modifications_EcoSmart Building Additional Servcies for Utility RebateMasterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Steve Sampson Brown, Project Manager A_______
DATE: January 26, 2011
INTRODUCTION
DISCUSSION
Dubuque
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AI-Amedca city
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2007
SUBJECT: Water Pollution Control Plant Modifications Project
EcoSmart Building, PC - Additional Services for Utility Rebate Verification
This memorandum is to seek approval and execution for additional construction administration
services for utility rebate verification by inspection of contractor work to ensure compliance with
utility company requirements.
The initial agreement with EcoSmart provided services for project plan review for energy
efficiency, pre- assessment of the building design including air movement and thermal bypass
analysis and assessment of renewable energy options for the WPCP in the amount of $75,000.
Their contract was then amended to include utility rebate contract specifications and
documentation submittals to achieve utility rebates from Black Hills Energy and Alliant Energy
along with enrollment of the project into Energy Star Portfolio Manager and certification for
Energy Star Compliance in the amount of $95,000.
Since construction commenced on the project, I have worked directly with EcoSmart to finalize
the utility rebate amounts offered by both Alliant and Black Hills. Both companies have
acknowledged that the WPCP project is the most difficult industrial plant they have ever
provided rebates for. Rebate negotiations with Black Hills have been even more complicated
because their process is to begin utility rebate coordination only after construction on the project
has started.
Both utility companies have recently stated that they will require visual inspection, photo
documentation and inspection reports for all installed items receiving rebates. This level of
rebate processing is well beyond EcoSmart's contracted scope of service that was envisioned
when the first amendment to the contract was negotiated. Additionally, Black Hills has
concluded that the only way to formulate a rebate of this complexity is for a computer energy
model to be submitted that profiles plant energy use prior to construction and a second energy
model that shows the plant operating after all efficiency improvements have been installed.
Black Hills has indicated that they are willing provide additional rebate compensation to offset
the cost of the required energy modeling, however EcoSmart cannot be directly compensated
by Black Hills for this work because rebates are not paid until the end of construction. A third
area of new work is Alliant Energy's recently announced renewable energy rebates. The WPCP
anaerobic digesters will qualify for $200,000 in new rebates. Processing of this rebate submittal
is proposed to be added to EcoSmart's contract.
The current estimate for total utility rebates from Alliant Energy and Black Hills Energy is
$400,000 - $600,000. Since the microturbine /cogen design is yet to be completed, this rebate
hasn't been negotiated with Black Hills and isn't included in the previous total rebate estimate.
Because it is not possible to precisely measure the exact quantity of documentation that will be
required by the utility companies, EcoSmart has formatted the attached amendment with an
estimated fee range of 860 hours to 1,290 hours ($150,500 - $225,750). Additionally EcoSmart
has agreed to progressively bill the City as actual costs are incurred. In the event that their total
effort requires less than 860 hours, the City will only be billed for services provided. The
Engineering Department will closely monitor their work to ensure the City is not billed for
excessive costs. Finally the amendment includes a guaranteed not to exceed amount of
$225,750 for all remaining work related to utility rebate processing and Energy Star certification.
ACTION TO BE TAKEN
The execution of Additional Service Agreement #2 to the March 2, 2009 EcoSmart Building
agreement is requested.
cc: Gus Psihoyos, City Engineer
Jenny Larson, Budget Director
Jonathan Brown, Water Pollution Control Plant Manager
Attachment
EC(') SMART
BUILDING, Pc
Energy StarTA Partner .
PO Box 4154 Chicago IL 60654 • 773 - 230 -4462 • info@ecosmartbuilding.tom • www.ecosmartbuilding.com
Additional Services for Construction Administration for Energy Star
Certification and Utility Rebates Administration with Final
Certification
Reference No. WWSD0510
Scope of Work
Eco Smart Building, PC will provide utility incentive rebate processing, construction administration services for utility
rebates and rebate processing and inspections and fmal tax credit certification to The City of Dubuque, IA, the Client, for
the water pollution control plant in Dubuque, IA. These services shall include:
Preliminary
• Submit all required project information to Black Hills and Alliant Energy through the custom rebate program. Black
Hills Energy provided us a list of required information that they need from the plan set to process the rebate
information.
- Review Alliant Energy rebates 20 to 30 hours $3,500.00 to $5250.00
• Construction Administration for Energy Star, Black Hills and Alliant Energy rebates:
-Black Hills requires inspection of the project in process as well as insulation and equipment cost for determining
the fmal rebate.
- Alliant Energy has not identified an exact process for certification of fmal rebate
-We have estimated construction administration at 35 hours /month x 24 to 36 months = 840 to 1,260 hours =
$147,000.00 to $220,500.00
• Final ioufaxfai • , odel changes and inspection and reports as construction proceeds on the various
plant buildings. Energy Star requires inspection during construction for air seal, insulation, lighting and mechanical
equipment.
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• Meeting with team members of the project and construction team and Dubuque city departments.
Scope Phase
• Approximate Area of Construction Work:
Total Construction: 86,000+ sq.ft.
Floor Levels Affected: Floors 1 through 3, plus exterior lighting attached to buildings.
Remodel or New Construction: New Construction and Remodeled areas.
Deliverables
• Review Documents
Review marked up drawings; if necessary provide new drawings, cut sheets as required, memos and other
communications.
Insert the project into Energy Star Portfolio Manager for energy tracking. The current Energy Star Portfolio Manager
Score as designed with the process energy use provided by Strand & Associates is 75. The current plant's Energy Star
Portfolio Manager Score is 63, based on several years of actual utility data. Energy Star Portfolio Manager will make
major changes to water pollution control plant standards for the next 2 years.
• Certification Documents
Professional engineer's report and certification for Energy Star compliance to tax credit/deduction levels.
• Utility Rebates
We will supply all of the utility required tracking documentation for the project to achieve the utility rebates for Black
Hills and Alliant for this project. The utility required paperwork should be part of the bid documents and contractor
payment should be contingent upon providing progressive paperwork as required by the tracking documents. Progress
reports to be generated as necessary on utility incentives for inspection and final certification.
Agreement for Construction Administration — Pg. 1 of 3
Client Responsibilities
1. The client shall furnish all available record and design documents either in hardcopy or in electronic form, as
available. All original paper documents furnished shall be copied or electronically recorded by us and the
originals returned in the same condition.
2. The client shall provide site access and assistance by the building engineer or maintenance staff as required to
access all areas relevant to the design work under this contract.
3. The client shall provide CAD files of proposed space plans in a timely manner for the use of the engineer. CAD
plans shall accurately show all architectural features of the area of remodeling including but not limited to, all
new and existing columns, walls, partitions, doors, windows, ceilings, soffits, stairs, elevators, plumbing
fixtures, casework, and appliances. The engineer shall not be responsible for the accuracy or completeness of
the CAD files provided. Any survey or documentation of architectural elements that must be performed by the
engineer because of deficiencies in the architectural CAD files provided shall be billed as an additional service.
This shall include survey and documentation of areas outside the nominal area of remodeling where new
mechanical, electrical, plumbing or fire protection systems must connect to existing systems or equipment and
where such connections must be shown for permitting, bidding, or construction.
4. The client shall notify and allow the engineer to participate in all pre -bid and post -bid contractor meetings,
interviews, and job meetings pertaining to the work designed and documented under this contract.
5. The client shall allow the engineer to review and comment on all bid forms and contracts pertaining to work
designed and documented under this contracts.
6. The client shall require the contractor to submit shop drawings and/or submittals to the engineer for his written
approval prior to the purchase, fabrication, or installation of any equipment or components documented under
this contract.
7. In the event that the client, the owner, or any of his agents or subordinates should discover what they believe to
be an error or omission in any of the engineer's documents, specifications, submissions, or communications,
they shall immediately notify the engineer in writing of the alleged error / omission and shall allow the engineer
reasonable opportunity to clarify, correct, or mitigate the alleged error / omission before any further work is
performed.
8. The client shall forfeit all claims to any damages resulting from failure to notify the engineer in writing of any
suspected error or omission or from the purchase of materials or installation of work prior to the engineer's
written approval of the corresponding submittals and/or shop drawings.
9. The engineer shall not be responsible for the changes necessitated by requirements of local inspectors or
authorities having jurisdiction which are undocumented at the time of design.
10. The client agrees to hold harmless, defend, and indemnify the engineer for any claims arising out of hidden or
unforeseen conditions or events which could not have been verified without performing construction or
demolition to the building, expending additional sums of money, or destroying otherwise adequate and
serviceable portions of existing structures or amenities.
11. The client shall honor the engineer's copyright of all written materials created by the engineer and shall rise all
documents provided solely for the project for which they are designated. The engineer reserves the right to
publish any of the documents in whole or in part without identifying the client, owner, or their agents without
their permission and without revealing any information which has been identified in writing by the client,
owner, or their agents as proprietary. In all cases, the engineer reserves the right to identify the client as such in
any published material and to represent the engineer's services to the client in non - specific fashion.
12. Utility data for the plan and access to all pumping station and skada data as required for proper analysis of
process energy modeling.
13. Plant process water data for quantities of water treated.
Terms and Conditions
Authority
All of the services described shall be at the direction of the Client. The Client shall have final authority on the
selection of products, methods, contractors, payment and other matters customarily within the discretion of the Owner.
Disclaimer
These services do not constitute a building code compliance review, nor do we represent that suggested actions will
comply with the building code. The Client is advised to seek the opinion of the Dubuque Building Department on specific
building code interpretations regarding compliance matters. No warranty or assurance of the cost to purchase or install,
performance, reliability, or durability of any material, equipment, or system that is a subject of this work is implied or
given.
Standards
Products and materials that are installed shall be referenced to the appropriate industry standards for safety, durability,
energy saving, and other aspects of performance. The work of contractors shall be held to a standard of best practice for
the industry and for the type of work that is performed. Where available, best practice standards shall be included in the
Agreement for Construction Administration — Pg. 2 of 3
guidance material for work, or shall be referenced in this material.
Change In Scope Of Services
No change in scope shall be permitted during this project without the prior written agreement of both parties and the
WBS being updated.
Substitution of Project Team Members
The Project Manager, partners, management, other supervisory staff and technical specialists proposed for the project
may be changed if those personnel leave the Consultant. These personnel may also be changed for other reasons however,
in either case, the City retains the right to approve or reject the replacements and no replacements shall begin working on
the project without express, prior written permission of the City of Dubuque.
Insurance
Consultant shall at all times during the performance of this Agreement provide insurance as required by the attached
Insurance Schedule.
Indemnification
To the fullest extent permitted by law, Consultant shall indemnify and hold harmless the City, its officers, agents, and
employees from and against all claims, damages, losses and expenses, including but not limited to attorneys' fees, arising
out of or resulting from performance of the Contract, provided that such claim, damages, loss or expense is attributable to
bodily injury, sickness, disease or death, or injury to or destruction of property (other than the Project itself) including loss
of use resulting there from, but only to the extent caused in whole or in part by negligent acts or omissions of the
Consultant, Consultant's subcontractor, or anyone directly or indirectly employed by Consultant or Consultant's
subcontractor or anyone for whose acts Consultant or Consultant's subcontractor may be liable, regardless of whether such
claim, damage, loss or expense is caused in part by a party indemnified hereunder.
Termination
Ciry may terminate this agreement, with or without cause, upon providing 14 days written notice to the Consultant
Payment '225 7 S0. o
The Client agrees to pay Eco Smart Building PC in the amount not to exceed °' ^^ate ,moo . e cost of our proposal v
covers consulting on design, specification and energy compliance for your project for Energy Star Certification and Utility
Incentives. Billing will be at a rate of $175.00 per hour for inspection services; $200.00 per hour for modeling of the
building shell and mechanical systems; $250.00 per hour for engineering review and compliance to Energy Star standards,
and Renewable Energy System selection and review. Travel time will be billed at a rate of $50.00 per hour. Billable hours
will be billed on a 30 day cycle against the deposit amount, after which a replenishment billing will be made. All copying,
faxing, mailing, travel (hotel, meals, transportation) and additional expenses will be billed to the client separately for
reimbursement. Client will pay all expenses within one business week of receipt of billing. Expenses not paid within one
week of receipt of billing will incur and additional 1.5% fee to the total amount due.
Limitation of Liability
Arbitration: Any dispute arising under this agreement will be submitted to binding arbitration in Chicago, Illinois in
accordance with the arbitration rules of the American Arbitration Association. Severability: If any provision of this
contract is held to be invalid or unenforceable, the remaining provisions shall remain in effect. Entire Agreement: This
writing constitutes the entire agreement between the parties relating to the work and services herein described. It shall be
governed by the laws of the State of Iowa and shall not be changed in any other manner except by bilateral agreement
executed by both Eco Smart Building and the Client.
IN WITNESS WHEREOF, the parties have signed this agreement on the day and year first below written and the
individuals signing hereto warrant that they have authority to sign for and on behalf of the respective parties.
ACCEPTED ND AGREED TO THIS
Date: � Date: C 3 t 7(
By: �_. By:
ACCEPTED AND AGREED TO THIS
uilding, PC Mr. ' ichael C. Van Milligen, City Manager
Agreement for Construction Administration — Pg. 3 of 3