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Home My WebLink About2009 CON Honeywell - Energy Retrofit ProgramMayor Ron Morrison . CALIFORNIA --(+ Director Joe H A Smith Councrlmember s Alejandra Sotelo-Solis Frank Parra Jess Van Deventer Rosalie Zarate NATIONAL CIS" n�3�34 ZIVCORPORATEp Department of Public Works Street Maintenance & Wastewater. Superintendent Jeff Servatius Park Super,nte, de,t Miguel Diaz City Manager Facilities Maintenance Chris Zapata Supervisor Rick Hernandez May 19, 2009 To: Honeywell Building Solutions 3949 Ruffin Road, Suite D San Diego, CA 92123 Attention: Nathalie Osborn Eq:uprnent Maintenance Supervisor David Pease Subject: Memorandum of Understanding Regarding Grant Dependent Scope of Honeywell Comprehensive Energy Retrofit Program Dear Ms. Osborn: This Memorandum of Understanding ("MOU") is between the City of National City, CA (National City) located at 1243 National City Blvd, National City, CA 91950 and Honeywell Building Solutions, a Division of Honeywell International Inc. (Honeywell) having an office at 3949 Ruffin, Rd. Ste. D, San Diego CA 92123. National City, CA and Honeywell intend to work collaboratively toward upgrades to the city's existing irrigation system and the installation of a new municipal wi-fi system with funding coming from available grants that may include but are not limited to the American Recovery and Re -Investment Act (ARRA) Energy Block Conservation Grant, the ARRA Broadband Deployment Grant and Metropolitan Water District (MWD) grant programs. Specific grant amounts are subject to grant application and approval. National City is eligible to receive $561,700 in ARRA Energy Conservation Block Conservation Grant (EECBG) funding and has in good faith elected to allocate secured funding to the energy retrofit program currently under development under a separate Letter of Intent (LOI). ARRA Broadband Deployment Grant, administered by the National Telecommunications and Information Administration (NTIA) and MWD grant programs could potentially fund 100% of the desired enhanced scope. Honeywell and National City agree to work in good faith to pursue and secure EECBG, NTIA and MWD grants for the energy retrofit program and desired enhanced scope. 1 _43 \alinnal ( It ,ulo:rrd: National (it , ( 91950 1 c1.: ((619) 336.4236 1.:n: (619) 336.4239 This MOU shall be effective for a period of one hundred twenty (120) days from the date of signature or until superseded by an executed contract between the parties, or until canceled by either party's providing written notice to the other at least five (5) business days in advance of the intended cancellation date, whichever shall first occur. Parties may extend the term in writing by mutual agreement. During the time this MOU remains in effect, National City shall not negotiate with any party other than Honeywell concerning the irrigation and municipal wi-fi system projects. Pending secured grants, National City may decide to finance these improvements through conduit financing or other financial instrument which may be secured with Honeywell's assistance. It is understood that Honeywell may, at its discretion and option, undertake certain preparatory activities including, but not limited to an Investment Grade Audit (IGA) for the expanded scope. In the event Honeywell and National City cannot secure the necessary grant funding for the enhanced scope, National City is not obligated to contract with Honeywell for the enhanced program scope. In the event the grant funding is secured, National City and Honeywell both agree to negotiate in good faith toward a mutually acceptable agreement for installation of the described systems. This MOU does not constitute an offer to contract at this time. It is understood and agreed between Honeywell and the City of National City that there is no obligation on either party to reach agreement on a contract. It is further understood that except as specifically set forth in this MOU, no agreement or obligation, express or implied, is created or intended between Honeywell and the City of National City, CA. HON By: Name: Klaktudfc Title: 14-'week- l�xeCU Date: l � ��lR,(�- 02op CITY O . ' ; ION • CITY, CA By: Name: Mayor Ron Morrison Title: Mayor City of National City, CA Date: June 2, 2009 1243 National ( Buulc%aril: National (( alifornia 91950 1 el.: (619) 336.4236 Fax: (619) 336.4239 Mayor Ron Morrison -0-• CALIFORNIA +-f+- Director Joe H A Smith Councitmembers Alejandra Sotelo-Solis Frank Parra Rosalie Zarate Jess Van Deventer City Manager Chris Zapata June 2, 2009 NATI011TAL CiTV INCORPORATED Department of Public Works Nathalie Osborn Honeywell Building Solutions 3949 Ruffin Road Suite D San Diego, CA 92123 Subject: Letter of Intent Regarding Honeywell Comprehensive Energy Retrofit Program Dear Ms. Osborn: Street Maintenance & Wastewater Superintendent Jeff Servatius Park Superintendent Miguel Diaz Facilities Maintenance Supervisor Rick Hernandez Equipment Maintenance Supervisor David Pease Please accept this Letter of Intent that the City of National City ("City") intends to proceed with Honeywell Building Solutions ("Honeywell") toward finalizing a contract for the energy retrofit program currently under discussion and outlined in the presentation made to the City Council ("Council") on April 21, 2009. Under the proposed energy retrofit program, facility upgrades may include, but are not limited to, energy -efficient lighting, boiler and chiller installations, cooling tower, VAV and other HVAC retrofits, solar thermal installation, building automation system, and a street lighting retrofit. Details of these retrofits and improvements will be generated through Honeywell's Investment Grade Audit Phase, and specified in contract documents to be submitted at a later date. This Letter of Intent shall be effective for a period of ninety (90) days from the date of signature or until superseded by an executed contract between the parties, or until canceled by either party providing written notice to the other at least five (5) business days in advance of the intended cancellation date, whichever shall first occur. During the time this Letter of Intent remains in effect, National City shall not negotiate with any party other than Honeywell concerning this energy retrofit program. National City anticipates a total installed cost for the energy retrofit program to be approximately $2,100,000, with approximately $53,000 in utility incentives from San Diego Gas & Electric. The project is projected to generate approximately $148,265 in annual energy savings based on energy cost data supplied to Honeywell by National City. An additional $38,625 has been identified annually and agreed to by the City as 2100 IIon%cr %ccntoe: National (lh. California 91951) Tel.: (619) 336.45X)) Fax: (619) 336.4594 legitimate operations/maintenance and other cost savings. National City intends to finance these improvements through a tax-free municipal leasing instrument that will be secured with Honeywell's assistance. It is understood that Honeywell may, at its discretion and option, undertake certain preparatory activities including, but not limited to, an Investment Grade Audit (IGA) of our existing lighting, HVAC and other systems within our facilities. It is further understood and agreed that Honeywell's IGA may result in changes in project scope, cost, and savings. National City commits to enter into agreement with Honeywell to perform the retrofit improvements if the IGA and corresponding final contract documents provide for a self -funded solution not to exceed 15 years, including interest expense. In the event Honeywell adheres to the aforementioned criteria and National City does not enter into agreement with Honeywell within a reasonable timeframe, or if National City terminates this Letter of Intent, National City shall reimburse Honeywell for all real costs incurred by Honeywell in undertaking said activities, not to exceed $42,000. In the event Honeywell cannot deliver an energy retrofit program to National City with a self -funded solution not to exceed 15 years, National City is not obligated to contract with Honeywell for the retrofit program and is not required to reimburse Honeywell's development costs. National City understands that Honeywell has performed preliminary energy and infrastructure audits on -site and some modeling in development of the project scope, costs, and savings. However, due to the nature of these systems, and additional surveys and modeling that is required to finalize specific program details, it is understood that the proposed pricing and savings presented to date are estimates, and can not be submitted as an offer to contract at this time. National City accepts the price and savings as reliable for any economic decisions required to assess the viability of proceeding with Honeywell in the development of this energy retrofit and infrastructure improvement program. It is understood and agreed between Honeywell and the City of National City that there is no obligation on either party to reach agreement on a contract. It is further understood that except as specifically set forth in this Letter of Intent, no agreement or obligation, express or implied, is created or intended between Honeywell and the City of National City. Sinc Xt•—,—,---- R. n Morrison Mayor RESOLUTION NO. 2009 — 132 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE A LETTER OF INTENT AND MEMORANDUM OF UNDERSTANDING WITH HONEYWELL BUILDING SOLUTIONS TO PERFORM AN INVESTMENT GRADE AUDIT OF CITY -OWNED FACILITIES WORKING TOWARDS FINALIZING A CONTRACT FOR A SELF -FUNDED COMPREHENSIVE CITY ENERGY RETROFIT PROGRAM WHEREAS, at the April 21, 2009 City Council meeting, Honeywell Building Solutions ("Honeywell ") gave a presentation regarding a budget neutral solution for energy conservation and comprehensive facilities improvements; and WHEREAS, the City Council directed staff to proceed with a Letter of Intent and Memorandum of Understanding with Honeywell to perform an Investment Grade Audit of City - owned facilities working towards finalizing a contract for a self -funded Comprehensive City Energy Retrofit Program. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of National City hereby authorizes the Mayor to execute a Letter of Intent and a Memorandum of Understanding with Honeywell Building Solutions to perform an Investment Grade Audit of City - owned facilities working towards finalizing a contract for a self -funded Comprehensive City Energy Retrofit Program. Said Memorandum of Understanding and a copy of the Letter of Intent are on file in the office of the City Clerk. PASSED and ADOPTED this 2nd day of June, 20, Ron Morrison, Mayor ATTEST: Michael R. Da la, 'City Clerk APPROVED AS TO FORM: 7 /7 2 George H. Eiser, III City Attorney Passed and adopted by the Council of the City of National City, California, on June 2, 2009 by the following vote, to -wit: Ayes: Councilmembers Parra, Sotelo-Solis, Van Deventer, Zarate. Nays: None. Absent: Councilmember Morrison. Abstain: None. AUTHENTICATED BY: RON MORRISON Mayor of the City of National City, California 4 City C/erk of the City of National City, California By: Deputy I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of RESOLUTION NO. 2009-132 of the City of National City, California, passed and adopted by the Council of said City on June 2, 2009. City Clerk of the City of National City, California By: Deputy City of National City, California COUNCIL AGENDA STATEMENT ti,,. MEETING DATE June 02, 2009 AGENDA ITEM NO. 10 ITEM TITLE Resolution of the City Council of the City of National City authorizing Mayor to execute a Letter of Intent and Memorandum of Understanding with Honeywell Building Solutions to perform an investment grade audit of City -owned facilities working towards finalizing a contract for a self -funded comprehensive City energy retrofit program. The program's cost is $2,100,000 and will be funded for a term of 15 years by $53,000 in utility incentives and $148,265 of annual energy savings. PREPARED BY Joe Smith, Director DEPARTMENT Public Works (Ext. 4587) � .� EXPLANATION At a regular Council meeting on April 21, 2009, Council was given a presentation by Honeywell Building Solutions regarding a budget neutral solution for energy conservation and comprehensive facilities improvement. This presentation outlined how the City could retrofit aging infrastructure, lower operating costs, improve energy efficiency, and fund the retrofit program with the energy cost savings. Council then directed staff to move forward with a Letter of Intent and Memorandum of Understanding to complete an Investment Grade Audit. The attached Letter of Intent and Memorandum of Understanding outlines the scope of Honeywell's Investment Grade Audit and comprehensive energy retrofit program. Environmental Review 1 N/A Financial Statement Approved By: t Financ irector Potential reimburse ofl-loneywell real costs to perform the audit of $42,000 should National City terminate the letter of intent without cause. Account No. STAFF RECOMMENDATION Adopt Resolution and execute Letter of Intent and Memorandum of Understanding BOARD / COMMISSION RECOMMENDATION N/A ATTACHMENTS ( Listed Below) Resolution No. Letter of Intent Regarding Honeywell Comprehensive Energy Retro Program. Memorandum of Understanding and Scope of Energy Retrofit Program. A-200 (9/99) City of National City Office of the City Clerk 1243 National City Boulevard, National City, CA 91950-4397 Michael R. Dalla, CMC - City Clerk (619) 336-4228 Fax: (619) 336-4229 June 9, 2009 Ms. Nathalie Osborn Honeywell Building Solutions 3949 Ruffin Road, Suite D San Diego, CA 92123 Dear Ms. Osborn, On June 2nd, 2009, Resolution No. 2009-132 was passed and adopted by the City Council of the City of National City, authorizing execution of a Letter of Intent (LOI) and Memorandum of Understanding (MOU) with Honeywell Building Solutions. We are forwarding for your records a certified copy of the above Resolution and a copy of the LOI and MOU. Michael R. Dalla, CMC City Clerk Enclosures cc: Public Works Dept. ® Recycled Paper