HomeMy WebLinkAbout2015 CON Ameresco - Energy AuditAGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
AMERESCO, INC.
THIS AGREEMENT is entered into this 15 day of December, 2015, by and between the
CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and AMERESCO, INC., a
Delaware corporation ("Ameresco" or the "CONTRACTOR").
RECITALS
WHEREAS, the CITY desires to employ a CONTRACTOR to perform an Energy Audit
at the facilities listed in Exhibit "B".
WHEREAS, the CITY has determined that the CONTRACTOR is a provider of
comprehensive energy efficacy and renewable energy solutions and is qualified by experience
and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to
perform such services.
Whereas, performance of the Energy Audit constitutes the first phase ("Phase 1 ") of an
energy conservation project (the "Project").
Whereas, if Ameresco is directed by The CITY to proceed with the implementation of the
recommendations following the Energy Audit, the second phase of the Project ("Phase 2") will
consist of the design and installation of energy conservation measures described and
recommended in the Energy Audit Report (defined in Exhibit "A").
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
FOLLOWS:
1. ENGAGEMENT OF CONTRACTOR. The CITY agrees to engage the
CONTRACTOR, and the CONTRACTOR agrees to perform the services set forth here in
accordance with all terms and conditions contained herein.
The CONTRACTOR represents that all services shall be performed directly by
the CONTRACTOR or under direct supervision of the CONTRACTOR.
2. SCOPE OF SERVICES The CONTRACTOR will perform services as set forth
in the attached Exhibit "A".
The CONTRACTOR shall be responsible for all research and reviews related to
the work and shall not rely on personnel of the CITY for such services, except as authorized in
advance by the CITY. The CONTRACTOR shall appear at meetings specified in Exhibit "A" to
keep staff and City Council advised of the progress on the Project.
The CITY may unilaterally, or upon request from the CONTRACTOR, from time
to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under
this Agreement. Upon doing so, the CITY and the CONTRACTOR agree to meet in good faith
and confer for the purpose of negotiating a corresponding reduction or increase in the
compensation associated with said change in services, not to exceed a factor of 25% from the
base amount. If the CITY adds additional facilities to the scope of the Energy Audit, the CITY
shall compensate Ameresco for the Special Energy Audit at a mutually agreed upon price, which
will be reflected as an increase to the Energy Audit Price
3. PROJECT COORDINATION AND SUPERVISION. Kuna Muthusamy,
hereby is designated as the Project Coordinator for the CITY and will monitor the progress and
execution of this Agreement. The CONTRACTOR shall assign a single Project Director to
provide supervision and have overall responsibility for the progress and execution of this
Agreement for the CONTRACTOR. Nancy Rorabaugh, thereby is designated as the Project
Director for the CONTRACTOR.
4. COMPENSATION AND PAYMENT. The compensation for the
CONTRACTOR shall be based on the billing and payment schedule outlined in Exhibit "A" and
is agreeable between the parties.
Billings shall include labor classifications, respective rates, hours worked and also
materials, if any. The total cost for all work described in Exhibit "A" shall not exceed the
schedule given in Exhibit "A" (the Base amount) without prior written authorization from the
CITY. Monthly invoices will be processed for payment and remitted within thirty (30) days from
receipt of invoice, provided that work is accomplished consistent with Exhibit "A"", as
determined by the CITY, unless the Parties proceed to Phase 2, as described in section 1.3 of
Exhibit "A".
The CONTRACTOR shall maintain all books, documents, papers, employee time
sheets, accounting records, and other evidence pertaining to costs incurred, and shall make such
materials available at its office during normal business hours upon reasonable prior notice during
the term of this Agreement and for three (3) years from the date of final payment under this
Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested.
5. ACCEPTABILITY OF WORK. The City shall decide any and all questions
which may arise as to the quality or acceptability of the services performed and the manner of
performance, the acceptable completion of this Agreement, and the amount of compensation due.
In the event the CONTRACTOR and the City cannot agree to the quality or acceptability of the
work, the manner of performance and/or the compensation payable to the CONTRACTOR in
this Agreement, the City or the CONTRACTOR shall give to the other written notice. Within ten
(10) business days, the CONTRACTOR and the City shall each prepare a report which supports
their position and file the same with the other party. The City shall, with reasonable diligence,
determine the quality or acceptability of the work, the manner of performance and/or the
compensation payable to the CONTRACTOR.
6. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement
will become effective on DECEMBER 15, 2015. The duration of this Agreement is for the
2 City's Standard Agreement —2014 revision
period of December 15, 2015 through December 15, 2017. With mutual agreement of the parties,
this Agreement may be extended for an additional year.
7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda,
Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the
CONTRACTOR for this Project, whether paper or electronic, shall become the property of the
CITY for use with respect to this Project, and shall be turned over to the CITY upon completion
of the Project, or any phase thereof, as contemplated by this Agreement.
Contemporaneously with the transfer of documents, the CONTRACTOR hereby
assigns to the CITY, and CONTRACTOR thereby expressly waives and disclaims any copyright
in, and the right to reproduce, all written material, drawings, plans, specifications, or other work
prepared under this Agreement, except upon the CITY'S prior authorization regarding
reproduction, which authorization shall not be unreasonably withheld, and as may be necessary in
furtherance of the CONTRACTOR's implementation of Phase 2 hereof, if applicable. The
CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to
further effectuate this waiver and disclaimer.
The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce,
modify, assign, transfer, or in any other way, medium, or method utilize the CONTRACTOR' S
written work product for the CITY'S purposes, and the CONTRACTOR expressly waives and
disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to
intellectual property and artistic works.
Any modification or reuse by the CITY of documents, drawings, or specifications
prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section
14, but only with respect to the effect of the modification or reuse by the CITY, or for any
liability to the CITY should the documents be used by the CITY for some project other than what
was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed.
8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of
this Agreement will be acting in an independent capacity and not as agents, employees, partners,
or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S
employees are employees of the CITY, and are not entitled to any of the rights, benefits, or
privileges of the CITY'S employees, including but not limited to retirement, medical, unemploy-
ment, or workers' compensation insurance.
This Agreement contemplates the personal services of the CONTRACTOR and
the CONTRACTOR'S employees, and it is recognized by the parties that a substantial
inducement to the CITY for entering into this Agreement was, and is, the professional reputation
and competence of the CONTRACTOR and its employees. Neither this Agreement nor any
interest herein may be assigned by the CONTRACTOR without the prior written consent of the
CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or
hiring as many employees, or SUBCONTRACTORS, as the CONTRACTOR may deem
3 City's Standard Agreement —2014 revision
necessary for the proper and efficient performance of this Agreement. All agreements by
CONTRACTOR with its SUBCONTRACTOR(S) shall require the SUBCONTRACTOR(S) to
adhere to the applicable terms of this Agreement.
9. CONTROL. Neither the CITY nor its officers, agents, or employees shall have
any control over the conduct of the CONTRACTOR or any of the CONTRACTOR'S
employees, except as herein set forth, and the CONTRACTOR or the CONTRACTOR'S agents,
servants, or employees are not in any manner agents, servants, or employees of the CITY, it
being understood that the CONTRACTOR its agents, servants, and employees are as to the
CITY wholly independent CONTRACTOR, and that the CONTRACTOR'S obligations to the
CITY are solely such as are prescribed by this Agreement.
10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the
performance of the services to be provided herein, shall comply with all applicable state and
federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City
of National City, whether now in force or subsequently enacted. The CONTRACTOR and each
of its SUBCONTRACTOR(S), shall obtain and maintain a current City of National City business
license prior to and during performance of any work pursuant to this Agreement.
11. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants
that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally
required to practice its profession. The CONTRACTOR represents and covenants that the
CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of
this Agreement, any license, permit, or approval which is legally required for the
CONTRACTOR to practice its profession in the State of California.
12. STANDARD OF CARE.
A. The CONTRACTOR, in performing any services under this Agreement,
shall perform in a manner consistent with that level of care and skill ordinarily exercised by
members of the CONTRACTOR'S trade or profession currently practicing under similar
conditions and in similar locations. The CONTRACTOR shall take all special precautions
necessary to protect the CONTRACTOR'S employees and members of the public from risk of
harm arising out of the nature of the work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this Agreement, the
CONTRACTOR warrants to the CITY that it is not now, nor has it for the five (5) years
preceding, been debarred by a governmental agency or involved in debarment, arbitration or
litigation proceedings concerning the CONTRACTOR'S professional performance or the
furnishing of materials or services relating thereto.
C. The CONTRACTOR is responsible for identifying any unique products,
treatments, processes or materials whose availability is critical to the success of the project the
CONTRACTOR has been retained to perform, within the time requirements of the CITY, or,
when no time is specified, then within a commercially reasonable time. Accordingly, unless the
CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all
products, materials, processes or treatments identified in the project documents prepared for the
CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due
diligence under this sub -paragraph will render the CONTRACTOR liable to the CITY for any
4 City's Standard Agreement-2014 revision
increased costs that result from the CITY'S later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time frame
specified or, when not specified, then within a commercially reasonable time.
13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not
discriminate against any employee or applicant for employment because of age, race, color,
ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or
medical condition. The CONTRACTOR will take positive action to insure that applicants are
employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation,
marital status, national origin, physical handicap, or medical condition. Such action shall include
but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. The CONTRACTOR agrees to post in
conspicuous places available to employees and applicants for employment any notices provided
by the CITY setting forth the provisions of this non-discrimination clause.
14. CONFIDENTIAL INFORMATION. The CITY may from time to time
communicate to the CONTRACTOR certain confidential information to enable the
CONTRACTOR to effectively perform the services to be provided herein. To the extent
permitted by law, the CONTRACTOR shall treat all such information as confidential and shall
not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR
shall limit the use and circulation of such information, even within its own organization, to the
extent necessary to perform the services to be provided herein. The foregoing obligation of this
Section 14, however, shall not apply to any part of the information that (i) has been disclosed in
publicly available sources of information; (ii) is, through no fault of the CONTRACTOR,
hereafter disclosed in publicly available sources of information; (iii) is already in the possession
of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter
rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or
disclosure thereof has been or is rightfully authorized by that third party.
The CONTRACTOR shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CITY. In its performance hereunder, the
CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting
the information or other property of any other person, firm or corporation.
The CONTRACTOR shall be liable to the CITY for any damages caused by
breach of this condition, pursuant to the provisions of Section 14.
If the CITY receives a request under the California public records laws for a copy
of any information or documentation which the CONTRACTOR has indicated, by written notice
to the City, the CONTRACTOR considers confidential and proprietary, the CITY shall notify the
CONTRACTOR so that the CONTRACTOR may, at the CONTRACTOR'S sole cost and
expense, seek relief from compliance with such request.
15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to
defend, indemnify and hold harmless the City of National City, its officers and employees,
5 City's Standard Agreement -2014 revision
against and from any and all liability, loss, damages to property, injuries to, or death of any
person or persons, and all claims, demands, suites, actions, proceedings, reasonable attorneys'
fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by
anyone whomsoever, resulting from or arising out of the CONTRACTOR'S performance or
other obligations under this Agreement; provided, however, that this indemnification and hold
harmless shall not include any claims or liability arising from the established sole negligence or
willful misconduct of the City, its agents, officers, or employees. The indemnity, defense, and
hold harmless obligations contained herein shall survive the termination of this Agreement for
any alleged or actual omission, act, or negligence under this Agreement that occurred during the
term of this Agreement.
16. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all
of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of
California, the applicable provisions of Division 4 and 5 of the California Government Code and
all amendments thereto; and all similar State or federal acts or laws applicable; and shall
indemnify, and hold harmless the CITY and its officers, and employees from and against all
claims, demands, payments, suits, actions, proceedings, and judgments of every nature and
description, including reasonable attorney's fees and defense costs presented, brought or
recovered against the CITY or its officers, employees, or volunteers, for or on account of any
liability under any of said acts which may be incurred by reason of any work to be performed by
the CONTRACTOR under this Agreement.
17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase
and maintain, and shall require its SUBCONTRACTOR(S), when applicable, to purchase and
maintain throughout the term of this Agreement, the following checked insurance policies:
A. ® If checked, Professional Liability Insurance (errors and
omissions) with minimum limits of $1,000,000 per occurrence.
B. Automobile Insurance covering all bodily injury and property damage
incurred during the performance of this Agreement, with a minimum coverage of $1,000,000
combined single limit per accident. Such automobile insurance shall include owned, non -owned,
and hired vehicles ("any auto"). The policy shall name the CITY and its officers, agents and
employees as additional insureds, and a separate additional insured endorsement shall be
provided.
C. Commercial General Liability Insurance, with minimum limits of
$2,000,000 per occurrence and $4,000,000 aggregate, covering all bodily injury and property
damage arising out of its operations under this Agreement. The policy shall name the CITY and
its officers, agents and employees as additional insureds, and a separate additional insured
endorsement shall be provided. The general aggregate limit must apply solely to this"project" or
"location".
6 City's Standard Agreement —2014 revision
D. Workers' Compensation Insurance in an amount sufficient to meet
statutory requirements covering all of CONTRACTOR'S employees and employers' liability
insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed
with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to
commencement of work under this Agreement.
If CONTRACTOR has no employees subject to the California Workers'
Compensation and Labor laws, CONTRACTOR shall execute a Declaration to that effect. Said
Declaration shall be provided to CONTRACTOR by CITY.
E. The aforesaid policies shall constitute primary insurance as to the CITY,
its officers, employees, and volunteers, so that any other policies held by the CITY shall not
contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior
written notice to the CITY of cancellation or material change.
F. If required insurance coverage is provided on a "claims made" rather than
"occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years
after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date
must be on or before the date of this Agreement.
G. Insurance shall be written with only California admitted companies that
hold a current policy holder's alphabetic and financial size category rating of not less than A
VIII according to the current Best's Key Rating Guide, or a company equal financial stability
that is approved by the CITY'S Risk Manager. In the event coverage is provided by non -
admitted "surplus lines" carriers, they must be included on the most recent California List of
Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements.
H. This Agreement shall not take effect until certificate(s) or other sufficient
proof that these insurance provisions have been complied with, are filed with and approved by
the CITY'S Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in
full force and effect at all times during the terms of this Agreement, the CITY may elect to treat
the failure to maintain the requisite insurance as a breach of this Agreement and terminate the
Agreement as provided herein.
I. All deductibles and self -insured retentions in excess of $10,000 must be
disclosed to and approved by the CITY.
18. LEGAL FEES. If any party brings a suit or action against the other party
arising from any breach of any of the covenants or agreements or any inaccuracies in any of the
representations and warranties on the part of the other party arising out of this Agreement, then
in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -
court settlement, shall be entitled to have and recover of and from the other party all costs and
expenses of suit, including attorneys' fees.
For purposes of determining who is to be considered the prevailing party, it is
stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not
be considered in determining the amount of the judgment or award. Attorney's fees to the
prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's
fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual
amount of attorney's fees incurred by the prevailing party.
7 City's Standard Agreement —2014 revision
19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this
Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute
by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of
the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of
mediation shall be borne equally by the parties. If any controversy or claim arising out of, or
relating to, this Agreement, or breach thereof, is not resolved by mediation then either or any
party hereto may resort to any and all available judicial proceedings in a court of competent
jurisdiction.
20. TERMINATION.
A. This Agreement may be terminated with or without cause by the CITY.
Termination without cause shall be effective only upon 60-day's written notice to the
CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in
accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CITY for
cause in the event of a material breach of this Agreement, misrepresentation by the
CONTRACTOR in connection with the formation of this Agreement or the performance of
services, or the failure to perform services in accordance with this Agreement. Notwithstanding
the foregoing, the CITY shall not have the right to terminate this Agreement for cause as
provided in this Section 20B unless the CITY has first given the CONTRACTOR prior notice of
any such breach and a period of ten (10) business days, in the case of a monetary breach, and
thirty (30) calendar days (plus such additional reasonable time as may be required if any such
breach cannot reasonably be cured within such 30-day period) in the case of a non -monetary
breach.
C. This Agreement may also be terminated immediately by the
CONTRACTOR for cause in the event of a material breach of this Agreement, misrepresentation
by the CITY in connection with the formation of this Agreement or the performance of the
CITY' s obligations hereunder, or the failure of the CITY to perform its obligations in
accordance with this Agreement. Notwithstanding the foregoing, the CONTRACTOR shall not
have the right to terminate this Agreement for cause as provided in this Section 20C unless the
CONTRACTOR has first given the CITY prior notice of any such breach and a period of ten
(10) business days, in the case of a monetary breach, and thirty (30) calendar days (plus such
additional reasonable time as may be required if any such breach cannot reasonably be cured
within such 30-day period) in the case of a non -monetary breach.
D. Termination with or without cause shall be effected by delivery of written
Notice of Termination to the defaulting party by the non -defaulting party as provided for herein.
E. In the event of termination, all finished or unfinished Memoranda Reports,
Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR,
whether paper or electronic, shall immediately become the property of and be delivered to the
CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for
any work satisfactorily completed on such documents and other materials up to the effective date
of the Notice of Termination, not to exceed the amounts payable hereunder, and less any
damages caused the CITY by the CONTRACTOR'S breach, if any. Thereafter, ownership of
said written material shall vest in the CITY all rights set forth in Section 7.
8 City's Standard Agreement —2014 revision
F. The CITY further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a
reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business
reorganization or change in business status of the CONTRACTOR, or an assignment of this
Agreement as a result of a sale of the assets of the CONTRACTOR which assignment has not
been approved by the City in accordance with Section 8 hereof.
21. NOTICES. All notices or other communications required or permitted hereunder
shall be in writing, and shall be sent by overnight mail (Federal Express or the like); or sent by
registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail,
postage prepaid; or delivered or sent by telecopy, facsimile or fax; and shall be deemed
received upon the earlier of (i) if sent by overnight mail, the business day following its deposit in
such overnight mail facility, (ii) if mailed by registered, certified or ordinary mail, five (5) days
(ten (10) days if the address is outside the State of California) after the date of deposit in a post
office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal
Service, or (iii) if given by telecopy, facsimile or fax, when sent. Any notice, request, demand,
direction or other communication delivered or sent as specified above shall be directed to the
following persons:
To CITY: Kuna Muthusamy, P.E.
Assistant Director of Engineering and Public Works
Engineering and Public Works Department
City of National City
1243 National City Boulevard
National City, CA 91950-4301
To CONTRACTOR:
Nancy Rorabaugh
Business Development
Ameresco, INC.
60 Rio Salado Parkway, Suite 1001
Tempe, AZ 85281
With a copy to:
General Counsel
Ameresco, Inc.
111 Speen Street, Suite 410
Framingham, MA 01701
Notice of change of address shall be given by written notice in the manner
specified in this Section. Rejection or other refusal to accept or the inability to deliver because of
changed address of which no notice was given shall be deemed to constitute receipt of the notice,
demand, request or communication sent. Any notice, request, demand, direction or other
communication sent by telecopy, facsimile or fax must be confirmed within forty-eight (48)
hours by letter mailed or delivered as specified in this Section.
9 City's Standard Agreement —2014 revision
22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. The CONTRACTOR agrees not to specify any product, treatment, process or
material for the project in which the CONTRACTOR has a material financial interest, either
direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all
times comply with the terms of the Political Reform Act and the National City Conflict of
Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its
official position to influence in any way any matter coming before the CITY in which the
CONTRACTOR has a financial interest as defined in Government Code Section 87103. The
CONTRACTOR represents that it has no knowledge of any financial interests that would require
it to disqualify itself from any matter on which it might perform services for the CITY.
❑ If checked, the CONTRACTOR shall comply with all of the reporting
requirements of the Political Reform Act and the National City Conflict of Interest Code.
Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City
Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall
obtain from the City Clerk.
The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or
expenses the CITY may suffer by virtue of any violation of this Paragraph 22 by the
CONTRACTOR.
23. PREVAILING WAGES. State prevailing wage rates may apply to work
performed under this Agreement. State prevailing wages rates apply to all public works contracts
as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3,
1720.4, and 1771. CONTRACTOR is solely responsible to determine if State prevailing wage
rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and
regulations.
24. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in
this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date
shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a
Saturday, Sunday or federal, state, or legal holiday.
B. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute but one and
the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of
this Agreement are solely for the convenience of the parties hereto, are not a part of this
Agreement, and shall not be used for the interpretation or determination of the validity of this
Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided
herein, the execution and delivery of this Agreement shall not be deemed to confer any rights
upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are
hereby incorporated herein by this reference for all purposes.
10
City's Standard Agreement —2014 revision
F. Amendment to this Agreement. The terms of this Agreement may not be
modified or amended except by an instrument in writing executed by each of the parties hereto.
G. Waiver. The waiver or failure to enforce any provision of this Agreement
shall not operate as a waiver of any future breach of any such provision or any other provision
hereof.
H. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
I. Audit. If this Agreement exceeds ten -thousand dollars ($10,000), the
parties shall be subject to the examination and audit of the State Auditor for a period of three (3)
years after final payment under the Agreement, per Government Code Section 8546.7.
J. Entire Agreement. This Agreement supersedes any prior agreements,
negotiations and communications, oral or written, and contains the entire agreement between the
parties as to the subject matter hereof. No subsequent agreement, representation, or promise
made by either party hereto, or by or to an employee, officer, agent or representative of any party
hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.
K. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the parties hereto.
L. Construction. The parties acknowledge and agree that (i) each party is of
equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and
negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity
to consult with its own, independent counsel and such other professional advisors as such party
has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv)
each party and such party's counsel and advisors have reviewed this Agreement, (v) each party
has agreed to enter into this Agreement following such review and the rendering of such advice,
and (vi) any rule or construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or
any amendments hereto.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year
first above written.
CITY OF NATIONAL CITY AMERES
B
•
By:
rrison, ayor Robert Georgeoff, Vice resident
APPROVED AS TO FORM:
By:
Dom
alma, Director of Project Accounting
11
City's Standard Agreement —2014 revision
Claudia Gaci ua Silva
City Atto ey
12
City's Standard Agreement-2014 revision
EXHIBIT A — Scope of Work
ARTICLE 1
PHASES OF PROJECT
1.1 Phase I -- Energy Audit.
After execution of this Agreement, Ameresco will conduct an Energy Audit at the Premises. As
used in this Agreement, "Energy Audit" means a process including (i) the collection of data
related to the CITY's use and operation of the Premises, observations of the Premises,
determination of base year energy consumption, financial analysis of the cost and benefit of
energy and water conservation measures and renewable energy projects that are recommended to
be installed at the Premises, and (ii) the preparation of a detailed Energy Audit Report, which
analyzes current energy consumption at the Premises, recommendations for energy efficient
equipment upgrades, energy conservation measures and a detailed analysis of implementation
costs, anticipated energy savings resulting from such improvements and assumptions upon which
the projected savings are based. The Energy Audit Report is intended to provide the CITY with
the information necessary for the evaluation of the costs and benefits of proceeding with the
second phase of the Project, and (iii) development of a Guaranteed Savings Solution which
includes a Project scope and plan to finance 100% of upfront costs to the City (or a lower
percentage if the City chooses to contribute funds towards upfront costs) and for which
CONTRACTOR guarantees that annual savings will be in excess of all financing payments over
a period not to exceed the lesser of (i) 20 years or (ii) a period of time equal to the average of the
useful lives of the measures, and be sufficient to pay back any upfront costs contributed by the
City, over the same period, not to exceed the lesser of (i) 20 years or (ii) a period of time equal to
the average of the useful lives of the measures, provided Contractor executes construction.
(a) Should Ameresco determine, in its sole discretion, at any time before the
completion of the Energy Audit Report that the anticipated energy and water conservation savings cannot
be achieved at the Premises in compliance with the financial criteria mandated herein or by federal or
state laws pertaining to energy conservation programs, Ameresco will provide written notice to the CITY
and cease all further Energy Audit activities, in which case the CITY will not be charged for any Energy
Audit activities performed by Ameresco.
(b) The Energy Audit will be an investment grade audit, which at minimum
conforms to ASHRAE level II standards, and will include the following components:
• Collect and record electric, gas, and water usage and cost data to determine utility
baseline per site.
• Survey the existing mechanical, electrical, and water systems for design, installed
condition, maintenance practices, and operating methods.
• Analyze the energy and water using systems of the building, resulting from on -site
observation, measurements, and engineering calculations.
• Review existing Operations and Maintenance problems and logs.
• Measure lighting and HVAC operating parameters on a spot basis or logged over a 2-3
week time period.
• List all possible modifications to equipment and operations that will save energy and
water. Select those that might be considered practical by the City. Perform preliminary cost and
savings estimates on practical measures.
• Develop energy and water savings based on baseline and time of use rates.
• Develop preliminary Measurement and Verification procedures for each energy and
water conservation measure.
• Develop implementation costs based on the selected measures scope of work and selected
measurement and verification methodology.
• Create financial grade operational cost and savings bundles to achieve different levels of
whole building energy and water use reduction and financial performance.
• Incorporate measures into final energy audit including the following sections:
- Executive Summary including list of recommended conservation measures,
installation costs, projected savings, estimated rebates, and simple payback of the project.
site.
- Measures considered but not recommended for the project.
- Utility Baseline Analysis including energy and water consumption and cost per
- Energy and Water Rates including energy and water rate schedules.
Facility Descriptions including Building Construction, HVAC systems, Lighting
Systems, Plug Loads, Domestic Water Systems, and Landscaping Water Systems.
- Energy/Water Conservation Measure Descriptions including existing conditions,
proposed solution, detailed scope of work, clarifications, service life, warranty, energy savings
calculations.
- Asset Sustainability Analysis including life cycle costing of the buildings.
- Measurement and Verification Plan
- Conclusion
(c) The Energy Audit will also include an Asset Sustainability Assessment.
This assessment includes the analytical survey of the City facilities using a database model to
determine the future operational costs of the buildings beyond just energy efficiency. The asset
sustainability assessment reviews the conditions of many different components of the building to
determine the overall life cycle costs for operating and maintaining the building infrastructure.
Ameresco utilizes a custom developed assessment tool that draws from a large database of
infrastructure life expectancy and replacement costs to help develop a site specific analysis that
will provide the City with information of how much the buildings will cost the City over a 20-30
year time period.
The expected duration for this assessment is 50 working days based on 15 days for site
surveying, 10 days for data input and analysis, 5 days for report preparation, 5 days for internal
review and editing, 10 days for customer review and comment, and 5 days for report finalization.
(d) Findings from the Energy Audit and Guaranteed Savings Solution will be
delivered by CONTRACTOR to CITY in writing as well as via in -person presentations.
CONTRACTOR shall present findings, at minimum, at the following milestones;
(i) Completion of the utility analysis;
(ii) Completion of the site surveys;
(iii) Completion of the detailed energy project and funding sources
identification;
(iv) Review of energy project scenarios with alternative Guaranteed
Savings Solutions based on the City's feedback (scenarios shall include without limitation
several different energy conservation programs based on energy measures included and payback
of those measures); Review Measurement and Verification (M&V) Methodology for Energy
Projects
(v) Final project identification and Guaranteed Saving Solution,
including but not limited to conservation measures, financial analysis, funding sources, M&V
plan, and implementation plan.
Presentations shall give CITY the opportunity to provide feedback and direction at various stages
of completion. As part of the CITY's decision -making process, the CITY may provide direction
to CONTRACTOR that requires CONTRACTOR to revise the proposed construction scope or
financing plan or conduct further analysis. Notwithstanding the provisions of section 1.2 (b) of
this Exhibit, such direction and revisions shall not increase the Energy Audit Price or result in
additional charges by CONTRACTOR to CITY. The complete Energy Audit, Asset
Sustainability Assessment and Guaranteed Savings Solution shall be delivered to CITY within
The expected duration of the energy audit, sustainability assessment, and guaranteed savings
solution is 140 working days based on 50 days for sustainability assessment, 20 days for baseline
and rate analysis, 15 days for site surveying, 5 days for facility description write ups, 15 days for
preliminary conservation measure analysis, 30 days for financial grade cost and savings analysis,
5 days for M&V preparation, 15 days of data logging, 10 days of draft energy audit preparation,
5 days for City review of baseline and preliminary analysis, 5 days for City review of M&V
plan, 5 days for City review of final costs and savings, 5 days for City review of draft energy
audit, 10 days for final energy audit and guaranteed solution.
(e) Unless otherwise specified in this Agreement, services performed by
CONTRACTOR shall be carried out in accordance with Exhibits D and E.
1.2 Energy Audit Price.
(a) The CITY shall compensate Ameresco for the Energy Audit by paying Ameresco a fee of
$70,639.17 which is based on a per square foot price of $ 0.21 / Sqft. ("Energy Audit Price").
(b) In the event the CITY instructs Ameresco to prepare a detailed analysis of water and/or waste
water treatment facilities, co -generation projects, street lighting beyond the scope provided herein, park
and sports lighting beyond the scope provided herein, manufacturing or production analyses, or
renewable energy projects beyond the scope provided herein, which require pre -design activities in order
to determine the implementation costs for such improvements ("Special Energy Audit"), or if the CITY
adds additional facilities to the scope of the Energy Audit ("Additional Work"), the CITY shall compensate
Ameresco for the Special Energy Audit or Additional Work at a mutually agreed upon price, which will be
reflected as an increase to the Energy Audit Price.
1.3 Phase 2 — Implementation.
(a) If the CITY decides to proceed with the design and implementation of the energy conservation
measures described in the Energy Audit Report or identified as part of the Special Energy Audit, the
Parties shall execute a mutually -acceptable energy services agreement (the "ESA"). If the Parties enter
into an ESA which includes the scope of work in the Energy Audit Report, Ameresco will not bill the CITY
for the Energy Audit Price, but will include such Energy Audit Price in the cost of the work to be performed
under the ESA.
(b) In the event the CITY decides not to proceed with the implementation of the energy
conservation measures or the CITY has not executed an ESA with Ameresco within a reasonable time
period after receiving the Energy Audit Report and a Guaranteed Savings Solution, the CITY shall pay
Ameresco the Energy Audit Price within thirty (30) calendar days from receipt of a proper invoice. Late
payments shall accrue interest daily at a rate of twelve percent (12%) per annum, or the maximum
interest rate permitted by law, whichever is less, for each calendar day following the due date until
payment is made.
(c) The CITY acknowledges that the price for the Project is based on the market cost, as of the
date of the Energy Audit Report, for steel, copper and similar raw materials incorporated into equipment
and material used for the Project. Price increases for such equipment and materials after the Audit Report
was issued may either result in a project price increase or a corresponding decrease in the project size.
1.4 Other Terms and Conditions.
(a) Ameresco's receipt of an executed copy of this Agreement shall serve as notification to
Ameresco to proceed with the Energy Audit. Ameresco will thereafter promptly initiate the Energy Audit.
(b) Ameresco does not assume responsibility to the CITY for the anticipated energy savings
projected in the Energy Audit Report if the CITY selects another firm for the design and implementation of
the energy conservation measures or chooses to implement the energy conservation with its own forces.
(c) The CITY hereby agrees to provide timely and complete access to all necessary property
and energy consumption cost records for the three years preceding the commencement of Ameresco's
services.
EXHIBIT B
Facilities List
Bldg.
1
Building Name
Civic Center
Building Area
(sqft)
56,934
Building Address
1243 National City
Blvd.
2
Martin Luther Kin• Jr Community Center
18,900
140 E 12th St
3
Kimball Senior Center
4,976
1221 D Ave.
4
Kimball Recreation Center
5,137
148 E 12th St
5
El Toyon Recreation Center/Park
5,454
2005 E 4th St.
6
Camacho Gym, Recreation Center
17,968
1800 E 22nd St
7
Casa de Salud
7,054
1408 Harding Ave.
8
Public Library
49,000
1401 National City
Blvd.
9
Police Station
46,288
1200 National City
Blvd.
10
Fire Station 34
18,500
343 E 16th St.
11
Fire Station 31
5,667
2333 Euclid Ave.
12
Kimball Park Arts Center
13,000
200 E 12th ST
13
Kimball Park/Community Center/Ball park
42,000
140 E 12th St.
14
Boys and Girls Club
3,504
1430 D Ave.
15
Las Palmas Park/Rec Center/Ball Park
21,700
2101 Palm Ave.
16
Las Palmas Pool
14,095
1800 E 22nd St
17
Santa Fe Depot
6,200
860 W. 24th St.
Total sq. ft.
336,377
EXHIBIT C
List of Energy Conservation Measures to be developed:
The energy audit will include energy and water conservation project development. The Priority Energy
Conservation measures are listed below and include items that have been identified by the City as high
priority replacements and upgrades. The City -identified funding associated with the Priority measures as
well as any state and/or federal grants, and utility rebates may be utilized to pay for the improvements.
The energy and water conservation measures are also listed below and will be developed in parallel with
the Priority measures.
Priority Energy Conservation Measures
1. Casa de Salud: Heat Pump and A/C unit
2. Civic Center: Chiller Retrofits, Air System Retrofit, Lighting Upgrades
3. Fire Station 31: A/C Unit
4. Police Department: Backup Generator & Electrical
5. El Toyon Park: Park Lighting and Water Conservation
6. Kimball Park: Park Lighting and Water Conservation
7. Las Palmas Park: Park Lighting Upgrades and Irrigation Controls
8. Kimball Park Art Center: Roof Replacement
Energy and Water Conservation Measures
1. Building Sustainability Assessment
2. Renewable power at all City facilities, including but not limited to solar photovoltaics at MLK
Community Center for Art Center, MLK Community Center, City Library, Police Station
3. Solar thermal systems, including review and recommendations for the current system at Las
Palmas pool
4. Microgrid for Kimball Park area
5. Demand Reduction and peak load shaving
6. Energy Storage
7. Sports Lighting, park and parking lot lighting
8. Interior and Exterior Lighting Upgrades
9. HVAC Equipment Replacements
10. HVAC Controls Upgrades
11. Fleet Replacement with Hybrid, Electric or CNG
12. Bulk Fuel Purchasing
13. Electric Vehicle Charging Stations
14. Domestic Water Conservation
15. Landscape Water Conservation,
16. Storm and Rain Water Capture, Re -use and Recycling
17. PC Power Management
18. Re -commissioning
19. Energy Education
20. Other Measures Identified on Site
EXHIBIT D
Funding Sources
During the IGA process, Ameresco will explore all available funding sources. These sources include
utility incentives, state and federal grants, as well as low -interest and zero -interest loans. An example of
some of the funding sources that will be explored are listed below.
1. Federal and/or State Grants
During the IGA, Ameresco's dedicated structured finance division will work diligently to identify any
potential federal and/or state grants that might be available for the energy conservation measures
identified for the City of National City energy conservation project. Ameresco has a strong history of
identifying and securing tens of millions of dollars in grants for its customers.
2. San Diego Gas and Electric (SDG&E)
SDG&E provides financial incentives for the completion of energy reduction programs. These incentive
programs vary from year to year and currently include:
A. SDG&E Energy Efficiency Business Rebates
1) Lighting Retrofits - SDG&E currently provides rebates for installing new LED fixtures
ranging from $5/fixture up to $125/fixture. The rebate is calculated based on the
number of fixtures and is determined using a prescriptive approach.
2) PC Power Management — SDG&E currently provides rebates for installing computer
power management software at $15/computer.
3) Vending Machine Controls —SDG&E currently provides rebates for installing vending
machine controls at $100/ vending machine.
4) Variable Frequency Drives —SDG&E currently provides rebates for installing variable
frequency drives at $110/hp.
5) Window Film — SDG&E currently provides rebates for installing reflective window
film at $1.35/square foot.
6) Space Heating Boiler — SDG&E currently provides rebates for installing space heating
boilers at $0.25/MBtuh.
7) Instantaneous Water Heaters —SDG&E currently provides rebates for installing
instantaneous water heaters at $0.50 - $2.00/MBtuh depending on the capacity of
the water heater.
8) Pipe Insulation — SDG&E currently provides rebates for installing steam or hot water
piping insulation at $3.00 - $4.00 per linear foot.
B. SDG&E Energy Efficiency Business Incentives
1) Targeted Lighting — For more advanced lighting retrofits, SDG&E provides $0.08/kWh
+ $100/kW for LED retrofits / replacements and multi -level lighting controls, such as
incorporating dimming, occupancy, and scheduling with one control system.
2) Basic Non -Lighting — For HVAC equipment controls such as programmable
thermostats and energy management systems, SDG&E provides $0.08 / kWh and
$100 / kW for the usage and demand savings achieved.
C. On -Bill Financing
On -Bill Financing (OBF) is an energy efficiency financing program administered by San Diego Gas &
Electric (SDG&E®) that offers zero -percent, unsecured financing to eligible customers for the installation
of qualifying energy -efficient business improvements. Eligible equipment for OBF includes measures
that qualify for incentives and/or rebates in SDG&E's energy efficiency programs. OBF only finances new
energy efficiency equipment that qualifies for a rebate or incentive in an SDG&E program or an SDG&E-
funded 3rd-party program.
The loan maximum per premises/location will be determined by the number of meters at the
premises/location. Each government -funded customer meter may qualify for up to $250,000 per meter
and a maximum loan term of 120 months.
3. Guaranteed Energy Savings
As an integral part of its contract with the City of National City, Ameresco will guarantee the energy
savings over the full term of the contract. Ameresco's guarantee provides assurance to the City that the
cash inflows from the project, will exceed the City's cash requirements for the project, the lease
payments if any, and, if applicable and/or desired by the City, any on -going payments for the provision
of O&M services.
Ameresco's projects achieve 103 percent of all performance guarantees on a portfolio wide basis. Any
energy savings that exceed the guarantee will be retained by the City of National City. The savings will
not be allocated to shortfalls in other years. Savings that begin to accumulate throughout the
construction period will be retained by the City as well and not counted towards future savings
guarantees.
4. Financing
Ameresco has sourced and raised over $1.4 billion in project financing from lending sources over the past
14 years, including John Hancock, Bayerische Landesbank, Bank of America, Capital One, Chase Bank,
Crews and Associates and several other financial institutions. We have secured or assisted customers in
securing financing for various types of utility efficiency projects ranging in size from less than $1 million to
over $180 million. Pricing varies by size, term, credit quality and structure —from 10 to over 20 years with
tax-exempt interest rates from 0 to 5 percent.
Most importantly, Ameresco will work with the City to structure a business plan that aligns with its unique
goals and needs. Financing vehicles typically employed by our clients include:
• Tax-exempt lease financing
• Capital lease financing
• Installment payment financing
EXHIBIT E
The information listed below was taken from Ameresco's SOQ Sections 6 through 15.
6. Technical Approach
a. Identify/Design Measures to Meet the RFP Objectives, Work Economically, Maximize
Energy Water, Emissions, & Costs Saved
Ameresco identified the following measures as potential improvement projects to reduce the City's operational expenses and
greenhouse gas footprint. They were developed from the site walk visit, Energy Roadmap documentation, and from Ameresco's
previous municipal project experience. The measures range from typical energy retrofits to vehicle fleet upgrades.
Table 6.0 Conservation Measure Site Matrix
ECM
1
a-
i
s
—
—
a
Description °
a
Interior Li • htin . Retrofits X
M
C
—
tr
.
s
X
:t
4
c.
_
E
:G
d
v
L
a
I
u
-a c
a
>.
m
2
Sports Li : hting Upgrades __
X
3
HVAC Occupancy Sensors
X
4
Landsca.e Water Reduction
5
Bulk Fuel Purchasing
____
X
6
Renewable Power Generation
X
7
Peak Demand Reduction
X
8
Vehicle Reslacement Program
____
X
9
Irritation Controls
X
10
Asset Sustainabilit
___
X
11
PC Power Mana: ement
X
Many of the buildings were not evaluated for further energy upgrades, as it is our understanding that all of the buildings except the
Public Library and Fire Station 34 were recently upgraded through an energy performance contract that was completed within the
last two years. Even so, one of the measures listed above, Asset Sustainability, is recommended as a tool that will provide the City a
snapshot of the life cycle and expected performance of all City buildings.
A brief description of each measure is included in the following pages of the document.
ECM1 Interior Lighting Retrofit: This measure includes replacing the existing standard efficiency T8 lighting systems with new high
efficiency 25 watt T8 lamps and energy efficient ballasts. Some of the more important retrofits that should be highlighted are:
• Replacing the 7 lamp compact fluorescent fixtures located in the Fire Station 34
equipment bay with new LED fixtures
• Installing new library book stack style lighting on the 8 book stacks that do not
currently have stack lighting
• Replacing the library window mounted metal halide fixtures with new LED
technology
• Replacing the existing 2 lamp 2'x2' biaxial fixtures with LED fixtures
• Replacing the existing 175 and 400 watt metal halide exterior fixtures with LED
technology
• Installing daylighting and occupancy sensors to comply with Title 24 regulations
and reduce energy consumption
Public L ibra j Books be f Lighting System
This measure includes energy rebates from SDG&E's energy efficiency business rebates program. 25
watt T8 lamps receive $1.50/lamp, LED integral lamps receive $5.00/lamp, interior LED fixtures
receive $70.00 - $125.00 / fixture depending on wattage.
[rotation of tight tontml
Sports Lighting Technology Evolution
Rebates and/or incentives for occupancy sensors and dimming controls that are required by the new 2013 Title 24 Energy Code are
no longer allowable.
ECM2 Sports Lighting Upgrades: This measure replaces the light fixtures and poles located at the Kimball Park baseball field with a
new energy efficient Musco Lighting System, including 6 new light poles with 4-6 fixtures per pole.
The lights come with a 25 year warranty including all parts and labor warranty from the bottom of
the base to the top of the pole, Control -Link Lighting Controls System, guaranteed light level for 25
years, guaranteed kilowatt power demand for 25 years, group re -lamps at the end of the lamps
rated life, 5,000 hours, and individual lamp outage replacement. The new system will require only
half the number of light fixtures due to the improved reflector technology.
ECM3 HVAC Occupancy Sensors: During the walkthrough of the Fire Station 34, Ameresco observed
rooms that were empty but still had the HVAC systems in operation. Leaving the systems running
wastes energy when they could be turned off and on based on occupancy. This measure will replace
the existing programmable thermostats in Fire Station 34 with new occupancy sensor compatible
thermostats so that the HVAC equipment will shut off when the rooms are unoccupied. The signal
for occupancy will come from the new lighting sensors installed as part of ECM 1. The energy savings for this measure result from
reducing the heating and cooling energy use during unoccupied periods.
Turf Replacement Area
131.
ECM4 Landscape Water Reduction: This measure replaces the turf behind and next to
the Kimball Park Recreation Center, approximately 50,000 square feet, with native
landscaping, that is drought tolerant and requires little to no water to grow. The new
landscaping will be installed with a drip type watering system and include time clock
controllers to manage the watering schedules.
With the ongoing drought, many water agencies are offering incentives to replace turf.
Included in the project is a $2/sqft. rebate from the SoCal Water$mart Program to
help reduce the overall cost impact of the replacement.
Another option to consider for the turf replacement project would be to replace the
turf behind the Recreation Center with an ornamental type landscape / hardscape
enclosure that could be dedicated to different groups or individuals, such as veterans, citizens of the year, youth organizations, etc.
and include city information kiosks, covered walkways, shaded meeting areas, and memorials. This type of project would require
community and city staff input to make sure that the new area serves the needs of the city and the community.
ECMS Bulk Fuel Purchasing: This measure includes the purchase of a new diesel and gasoline fuel station to allow the City to
purchase fuel at bulk costs instead of retail. The City uses about 9,500 gallons of fuel per month at a total annual cost of $400,000.
Purchasing fuel directly could save the City $0.20 - $0.25 cents per gallon, depending on quantity and distance from sources.
Included in the project is the installation of a 10,000 gallon above ground split tank, fuel pumps, and electronic card reader.
ECM6 Renewable Power Generation: This measure proposes to install a new solar power carport at the Public Library parking lot.
The solar power system capacity proposed is a 106 kW DC solar power array with a 32 degree tilt facing due south. The total
generation for the year is estimated to be 160,000 kWh, which is 20% of the Public Library energy consumption.
Included in the project are all interconnection equipment needed to connect to the
SDG&E utility grid. Also included is an annual 5 year incentive of $0.114/kWh from
the California Solar Initiative.
ECM7 Peak Demand Reduction: This measure involves the installation of a 60 kW
battery storage system at the Public Library to reduce the demand charges for the
on peak periods. The SDG&E ALTOU rate is heavily weighted to the demand charges
and managing those charges is one method
to reduce the costs of energy.
The battery storage system includes an
automatic controller that will monitor the
demand of the building and continually adjust the demand setpoint to maintain the lowest
monthly total and keep the battery system charged throughout the on peak demand period.
Example Solar Carport Installed by Ameresco
Battery Storage System
The space required for the battery system is a 2' x 4' size space and can be located indoors or outdoors.
Depending on the selection of measures, this battery storage system could be integrated with the solar power generation system to
create additional cost reductions as part of a local smart grid. This measure includes a $1.62/watt rebate to help reduce the cost of
the installation.
ECM8 Vehicle Replacement Program: This measure includes replacement of six
City cars and eight City trucks with hybrid electric vehicles. The City cars will be
replaced with new Toyota Prius vehicles that have more than double the city
mileage than the current vehicles. The new Toyota Prius models are hybrid
electric vehicles that will reduce the fuel consumption of the City fleet. Included in
the project financials are a $1,500/vehicle Clean Vehicle Rebate Project
administered by the Center for Sustainable Energy for the California Air Resources
Board.
Also included in this project is the replacement of eight City trucks with hybrid electric vehicles. The proposed replacement is an
extended range electric truck by VIA Motors. The truck runs on battery power up to 40 miles and then switches to gasoline for an
extended range of 400 miles.
Table 6.1 Vehicle Re; L,
Scan;Mar
Year
Make
Model
Annual
Mileage
Existing
mpg -city
Proposed
mpg -city
2001
Toyota
Camry
16,000
22
51
2011
Nissan
Altima
18,000
20
51
2001
Ford
Taurus
13,600
19
51
2001
Saturn
L
10,000
20
51
1995
Pontiac
G. Prix
7,500
19
51
2001
Saturn
L
10,000
20
51
Two valuable features of the truck are two power outlets, 120 volt and 240 volt, that can be used to provide emergency or toll
power by using the truck engine as a generator. The power output is rated at 14.4 kW and 50 amps. This truck can serve both as
transportation and as a mobile generator for City use during emergencies.
The following are the City trucks that are included in the project.
Table 6,2've
ie Replace
ent Progran-i - Proposed Truck Replacement
Year
Make
Model
Annual
Mileage
Annual
Fuel Use
2003
Ford
F150
8,200
547
2003
Ford
F150
6,800
453
2003
Ford
F150
8,200
547
2003
Ford
F150
6,800
453
2003
Ford
F450
10,500
1,050
2003
Ford
F450
5,300
530
2003
Ford
F450
10,500
1,050
2003
Ford
F450
5,300
530
Assuming 250 work days and the annual mileage shown above, the trucks will primarily be used in the electric mode. With the
extended range capability, the vehicles will still be able to pick up parks or equipment that fall within the 200 mile range.
Included in the project financials is an $8,000 per vehicle rebate from the Hybrid Truck Voucher Incentive Project under the
California Air Resources Board Air Quality Improvement Program. Ameresco assumed that the eight trucks were going to be replaced
by the City, therefore, a $39,000 per F150 contribution and a $55,000 per F450 contribution were included in the payback analysis.
ECM9 Irrigation Controls: This measure includes the installation of a smart irrigation control system for the (4) Kimball Park baseball
fields and the open grass area between each. The irrigation control system will include evapotranspiration (ET) based controllers,
rain sensors, and other hardware to optimize water use. Daily water demand will be determined based upon landscape parameters
such as geographical location, amount and type of grass/shrubbery, and ET rates, which are affected by rainfall, outdoor
temperatures, humidity, wind, and solar radiation. Ameresco included a $35/station rebate from the SoCal Water$mart Program.
ECM10 Asset Sustainability: This measure includes the analytical survey of the City facilities using a database model to determine
the future operational costs of the buildings. Beyond just energy efficiency, the asset sustainability assessment reviews the
conditions of many different components of the building to determine the overall life cycle costs for operating and maintaining the
building infrastructure. Some of the parameters analyzed are: foundations, walls, roofing, windows, wall finishes, floor finishes,
plumbing, electrical, mechanical, fire alarm, landscaping, walkways, and parking lots.
Ameresco utilizes a custom developed assessment tool that draws from a large database of infrastructure life expectancy and
replacement costs to help develop a site specific analysis that will provide the City with information of how much the buildings will
cost the City over a 20-30 time period.
By inputting some site specific data and the age of the building, Ameresco analyzed the Public Library and Fire Station 34. The result
of the analysis shows that the City will be facing significant infrastructure repair and/or replacement costs beginning in 2025. The
proceeding charts demonstrate the potential costs and unfunded liability associated with the two buildings.
AssetPlanne)
u,wwes
(•I
�.. Panty Types
:.. 7 Fre Static, (2)
y Fre 5tatimi 3a
. Fire Statim 3a - Sre
:3Ubrary (2)
ai PPbac Library
:d ♦ °WPM Lkrery - sae
Asset Ptenrany Nome Page
t.a., n<.,.ee
NATIONAL CITY CALIFORNIA
52 AN,
st eM
Figure 6,0 National City Asset Sustainability Dashboard
S54 K
$9M
$ 7.3M
$5,41.1
S3 5M
$1.8M
3i;
Cost by Discipline
Years 2014 - 2043
EC222
end di She
6Wlding
S.ter.ork
Services •
Elects cel
Figure 6.1 Library and Fire Station Future Replacement Costs per Discipline
Unfunded Liability ILnpacts
Years 2014 - 2043
Unfunded Co.
Figure 6.2 Library and Fire Station Unfunded Liability
ECM 11 PC Power Management: Reduce personal computer (PC) power consumption with the installation of software that provides
network -level control over the power settings of individual units. The software will also monitor electrical savings on a daily basis to
verify success. This software offers the flexibility to work seamlessly with the facility's current IT/network system, and can be
incorporated with the public workstations as well as individual employee machines in administrative and management areas. This
measure qualifies for an Energy Efficiency Business rebate of $15/unit through SDG&E.
Attachment B Measures Not Included in the Project
As part of the solicitation document, there were several items listed in Attachment B that were not fully evaluated by Ameresco,
primarily due to the fact that was a limited amount of time and information available. In order to provide the City with relevant
information, additional time would be needed to conduct the appropriate level of in-depth design development, warranted by the
measures. Thus, all of these items should be designed in detail before being presented to the City for evaluation, most specifically
the electrical upgrades, security system, and micro -grid projects.
Police Department Electrical System Assessment: Based on the documentation, the City requested an electrical system
assessment of the Police Department, including surveying, metering, designing, and cost estimating a replacement system from
the utility meter down to the branch circuit panel boards, including 3 days of load readings.
In order to provide the most appropriate solution, this level of design and cost estimating requires more time than was
allocated for this response. Ameresco proposes providing this assessment along with the other measures following the selection
process.
Civic Center Improvements: There are three HVAC units listed in the Attachment B for replacement, one condenser at the Civic
Center and two 7.5 ton rooftop heat pump units at the Community Center. Ameresco suggests providing full replacement
recommendations as part of the overall program to the City.
Kimball Tower Boiler Replacement: Attachment B lists many items to be included in the boiler project at Kimball Tower.
Ameresco proposes evaluating this measure further to allow time for factors such as boiler sizing, pump capacity, valve
locations, piping sizes, equipment access, central plant controls points lists, electrical panel locations, etc. w to be adequately
considered and the best replacement option(s) to be recommended to the City.
Security Camera System throughout the City Public Facilities: In order to provide the best recommendation for "installing
cameras at certain city owned facilities", Ameresco proposes meeting with appropriate City personnel to discuss the near- and
long-term objectives of this measure and to fully understand the desired functionality of the security system. Significant
advancements have been made in security capabilities and the wide array options available should be vetted before an
appropriate recommendation and associated cost development can begin.
Micro Grid: Designing a microgrid system at Kimball Park that would connect to the surrounding City owned buildings would
require significant development resources to understand the potential costs and savings associated with the small scale power
generation system.
The first step in evaluating the technology would be to determine the electrical load profiles of the buildings. To provide the
best recommendation, Ameresco suggests a thorough review of the 15 minute demand data, which was not included in the
documentation provided by the City. The load profiles would help in determining when and how much power would be required
of the generators, and would also help in selecting the best mix of technologies to use for generators. Typically natural gas,
solar, fuel cells, and wind generators are the best candidates for local power generation.
The next step would be to determine the cost per kWh, including maintenance and operation, of the different types of
generators and compare them to the cost of power provided by San Diego Gas & Electric. Currently the major buildings around
Kimball Park are on the ALTOU rate, which breaks down its energy costs as follows:
Table 6.3 SOG&E TOU Rates Table
TOU period Summer kWh rate Winter kWh rate
On Peak
Semi Peak
Off Peak
$0.12/kWh
$0.11/kWh
$0.08/kWh
$0.11/kWh
$0.09/kWh
$0.07/kWh
Depending on the time of day and the type of technology, Ameresco would need to determine if the utility grid or the micro grid
could provide cheaper power; Some small generator technologies cost between $0.10 / kWh - $0.18 /kWh. To provide an
appropriate solution to the City, Ameresco would need to design the actual system including equipment selection, design,
layouts, permitting requirements, incentive valuations, and cost estimation.
Solar Thermal Water Heating: Fire Station 34 was surveyed to determine if an opportunity for a solar hot water heating system
exists. Based on the natural gas consumption data provided in the Energy Report Card, it was determined that relatively little
energy was being used to heat domestic water (showers, cooking, etc.) to economically justify a new system. The report card
shows that the facility uses 1,841 therms per year, with only 492 therms being used to heat water (26.7%).
b. Provide Estimates for the Total Project Size in Dollars, the Annual Savings Anticipated from
Water, Electricity, Gas, and Other Sources
The following table summarizes the project costs and savings.
Table 6.4 National City Project Cost and Savings Summary Table
Measure
1
Name
Interior Lighting Retrofits
Electric
Cost
Savings
$19,120
Natural
Gas
Cost
Savings
$0
Water
Cost
Savings
$0
O&M
Savings
$2,066
Total
Cost
Savings
$ 21,186
Project
Cost
$341,901
2
Sports Lighting Upgrades
$4,386
$0
$0
$1,483
$ 5,869
$317,638
3
HVAC Occupancy Sensors
$1,046
$152
$0
$0
$ 1,198
$11,930
4
Landscape Water Reduction
$0
$0
$6,787
$0
$ 6,787
$246,058
5
Bulk Fuel Purchasing
-$3,532
$0
$0
$22,800
$ 19,268
$408,942
6
Renewable Power Generation
$18,890
$0
$0
$0
$ 18,890
$555,867
7
Peak Demand Reduction
$8,000
$0
$0
$0
$ 8,000
$186,408
8
Vehicle Replacement Program
$0
$0
$0
$26,220
$ 26,220
$901,435
9
Irrigation Controls
$0
$0
$10,657
$0
$ 10,657
$80,528
10
Asset Sustainability
$0
$0
$0
$0
$
-
$14,070
11
PC Power Management
$1,447
$0
$0
$0
$1,447
$1,761
Total
$49,357 $152 $17,444 $52,569 $119,522 $3,066,538
c. Provide Estimate for the Amount of Grants, Rebates, and Incentives, and Other funding to
Offset Project Costs
The following table summarizes the project rebates and incentives.
Table 6.5 ;National City Project Rebates and Incentives Taoie
Measure
1
Name
Interior Lighting Retrofits
Rebates / Incentives / Capital Contributions
$15,837
2
Sports Lighting Upgrades
$0
3
HVAC Occupancy Sensors
$0
4
Landscape Water Reduction
$100,000
5
Bulk Fuel Purchasing
$0
6
Renewable Power Generation
$89,627
7
Peak Demand Reduction
$48,600
8
Vehicle Replacement Program
$446,000
9
Irrigation Controls
$105
10
Asset Sustainability
$0
11
PC Power Management
$885
Total
$701,054
The sources of the rebates and incentives are as follows:
• Lighting: SDG&E Energy Efficiency Business Rebates
o 25 watt T8 lamps = $1.50/1amp
o LED integral lamps = $5.00/1amp
o Interior LED fixtures = $70.00 - $125.00 / fixture depending on wattage.
• Landscape Water Reduction: SoCal Water$mart Program
o $2.00/square foot of turf removed
• Renewable Power Generation; California Solar Initiative
o $0.114/kWh per year for five years
• Peak Demand Reduction: Self Generation Incentive Program
o $1.62 / watt
• Vehicle Replacement Program: California Air Resources Board Clean Vehicle Rebate Project
o $1,500 / car
• Vehicle Replacement Program: California Air Resources Board Air Quality Improvement Program
o $8,000 / truck — hybrid
• Irrigation Controls: So Cal Water $mart Program
o $35/station
• PC Power Management: SDG&E Energy Efficiency Business Rebates
o $15/computer
d. Provide List of Measures Your Firm Anticipates Utilizing
The following table summarizes the list of measures.
Table 6.6 National City Conservation Measures
1
Interior Lighting Retrofits
Measure
7
Name
Peak Demand Reduction
2
Sports Lighting Upgrades
8
Vehicle Replacement Program
3
HVAC Occupancy Sensors
9
Irrigation Controls
4
Landscape Water Reduction
10
Asset Sustainability
5
Bulk Fuel Purchasing
11
PC Power Management
6
Renewable Power Generation
e. Provide Estimates for Size and Location of Renewable Systems your Firm Anticipates
Installing
The following table summarizes the locations of renewable power systems.
Table 6.7 National City Renewable Systems Table
Location
Description
Public Library
Install a new 106.5 kW DC solar power carport. Connect solar power system to Public Library
electrical distribution system.
f. Explain Your Firms Basis for b Through e
The measures included in the project were based on providing the City with the most economical and operational improvements. All
of the measures require detailed analysis before determining final costs and savings, however, the estimates used in the analysis
should provide the City a general idea of the scale of improvements possible at the City facilities.
From a financial perspective, the projects combined have a simple payback of 17.8 years, which could be included in a financing
program such as a tax exempt lease purchase, on -bill financing, power purchase agreement, or lease -lease back. The final mix of
measures and the City's willingness to finance will determine the best measures to include.
With regards to emissions reductions, the measures included in the project will cause a significant reduction to the City's carbon
footprint. The electrical and natural gas measures alone will save over 320,000 lbs of CO2. The greenhouse gas reduction from the
vehicle replacement program will be over 150,000 lbs of CO,. When combined with the electrical and natural gas amounts, the total
project will save over 470,000 lbs of CO2.
The table below summarizes the environmental impact of the electrical and natural gas measures.
Table 6.8 Emissions Reductions Summary Table
Type Of Pollution
Carbon Dioxide
(CO2)
Methane (CH4)
Effect
Health
Can cause
respiratory and other
health problems,
particularly in
children and the
elderly
Respiratory and
other health
problems,
particularly in
children and the
Environmental
Climate change on a global scale has
been attributed to increased
emissions of carbon dioxide
Climate change on a global scale has
been attributed to increased
emissions of carbon dioxide
Reduction (found)
Ihs / kWh
1.106
0.00004261
Ihs / Therm
Pollutants
(Ihs)
11.76
0.0023
324,859.68
12.89
elderly
Nitrous Oxides
(N2O)
Respiratory and
other health
problems,
particularly in
children and the
elderly
Climate change on a global scale has
been attributed to increased
emissions of carbon dioxide
0.000005137
0.0002
1.54
Sulfur Dioxides
(SO2)
Respiratory illness,
breathing problems,
may cause
permanent damage to
lungs
Precursor of acid rain, which can
damage trees, lakes, and soil;
aerosols can reduce visibility
0.000181
0.00006
52.79
Nitrogen Oxides
(NOx)
Lung damage,
respiratory illness,
ozone (smog) effects
Acid rain also causes buildings,
statues and monuments to
deteriorate.
0.000379
0.0098
112.49
The above values are equivalent to removing 44 cars from the road, planting 5,188 trees, or powering 18 typical American homes.
7. Project Approach
Ameresco's comprehensive approach to managing an ESPC is designed to ensure that we deliver the maximum value for the lowest
possible cost. A key aspect of this approach is our project management philosophy. Ameresco has one of the most experienced project
management teams in the country. These professionals understand that any successful energy project begins with up -front setting of
expectations, planning, and organization. Our ability to inform and strengthen project development with proven infrastructure life -
cycle assessments distinguishes us in the energy services sector. Our approach ensures that the City will be able to identify and
prioritize the full list of potential energy conservation measures and existing necessary building and systems improvements; and that
City Finance and Facilities leaders and other decision -makers will have access to information that will demonstrate future
infrastructure renewal and budget requirements. In turn, this process will ensure that Ameresco delivers a targeted and cost-effective
project.
Our project teams are on -site, local, empowered and encouraged to make all site -specific decisions on every aspect of project
performance. Ameresco's approach to implementing an innovative ESPC partnership with our clients is a four -phase process. We will
be National City's partner for the entire process and for the long term thereafter.
Project
Development
Phase l: Project Development
> Step 1: Customer Needs Identification
Ameresco will partner with National City's staff to coauthor customized solutions that advance the City's fiscal, environmental, and
social goals and objectives. The methodologies used to determine these factors, and to identify the types and tiers of needs within the
City are centered on the development of multiple streams of different, but connected data in order to fund and facilitate decision
making. Our expert engineering and technical capabilities will provide comprehensive, mutually agreed upon solutions that maximize
value, ensure the greatest reduction in operating costs for the lowest possible cost.
Design and
Engineering
Implementation
Performance
Period Services
Figure .0 Long -Term Energy Solution; P
Commitment
> Step 2: Infrastructure / Asset Assessment
Using existing basic building and system details the City can provide, along with data gathered in the preliminary audit and in
interviews with City staff, Ameresco will develop first -stage life -cycle profiles of all specified City assets — buildings, facilities,
mechanical/electrical and building automation systems, other equipment including vehicles, and linear systems such as
water/wastewater piping, roadways, etc.
Details gathered in the asset assessment will provide the City with a comprehensive data set from which they can select the energy
conservation and renewable measures that will provide the greatest return on investment, and those that address risks and liabilities
associated with aging buildings, systems, equipment, architectural components, etc.
Prioritization via Identification of Risks and Liabilities associated with Aging Assets
• As various major building systems and components age, the remaining useful and serviceable life decreases. Capital
renewal needs of the City's portfolio will be established using the life -cycle profiles developed in the asset assessment initiated in
Step 1. Overall renewal needs are compared with available renewal funding to identify the City's "unfunded liability".
• Another metric our team utilizes to assess building conditions is the Facility Condition Index or FCI which helps predict the
physical / infrastructure and capital risks associated with each asset. Various analyses related to funding and risk will also be used in
the process.
• Based on the life -cycle profiles, unfunded liability findings, FCI ratings, and other relevant industry metrics, Ameresco will
then work with the City to prioritize identified energy efficiency and general building upgrades in order develop a project that will
accomplish the City's energy efficiency, renewables and environmental goals while significantly reducing the level of unfunded
liability from deferred maintenance.
Our approach incorporates state-of-the-art business processes designed to manage current capital costs and predict future capital
needs. In summary, in this first phase of project development, the City will be able to:
• Assess various options or strategies for phased implementation of required energy/renewable and asset/infrastructure
upgrades;
• Establish clear and defensible infrastructure needs; and
• Define practical strategies directly applicable to a multi -site portfolio.
To assist National City with ongoing upgrade prioritization and facility renewal planning, Ameresco will develop an asset planning
framework that reviews and optimizes the capital and operating needs by applying a series of business strategies to develop
proactive and practical business plans. Using a proven life cycle management approach, the City's strategic business objectives will
be clearly articulated and incorporated into the plan(s).
> Step 3: Field Data Acquisition
Ameresco engineers gather data on utility rates, historical consumption, and facilities. This information provides the foundation
needed to evaluate the technological and economic feasibility of various ECMs and to provide insight into the greatest energy and
cost savings opportunities. Ameresco's engineers are quickly able to evaluate the feasibility of various ECMs, based on factors
including utility rate structures, existing equipment and their controls, annual operating parameters and the age and condition of
the building envelope. Engineers contributing to the preliminary audit will also be assigned to the detailed Investment Grade Audit
(IGA). To gain an accurate picture of existing conditions at the client's facilities, Ameresco will:
1. Perform on -site surveys with our designers, engineer(s) (PE, CEM, CEA, etc.)
2. Interview National City's facility/maintenance director and staff, administration, and any other stakeholders
3. Incorporate the City's commitment to the ENERGY STAR program and include these efforts into your final project (if
applicable)
4. Analyze recent utility data provided by the City, operation schedules, demand, usage, possible rate structure modification
opportunities, and areas of excessive energy or water use
5. Understand the City's perspective on current carbon footprint and the potential value of reducing and tracking of its current
and future carbon emissions
6. Review recent operational and capital expenditures by the City to determine areas that may require further investigation
7. Update and/or review any other previous energy audits or feasibility studies recently conducted by/for the City
8. Review as -built drawings for existing buildings
9. Analyze any available submeter data
> Step 4: Energy Analysis, Costing, ECM Definition
Information gathered during the infrastructure assessments and field data acquisition is analyzed at this step and individual ECMs
are specified. The savings potential of each ECM is determined and preliminary energy baselines are established.
In a parallel effort, the cost estimating for all of the identified ECMs is begun using a combination of contractor quotes and pricing
databases. The ECMs are then subjected to further analysis, resulting in conceptual design, firm savings and implementation price.
The individuals involved in the data gathering and evaluations perform the majority of the analysis. Senior Project Managers (SPMs)
are also heavily involved in the cost estimating. The task of verifying and approving project implementation costs at this project
development stage will typically be the responsibility of Ameresco's Director of Construction.
Client
Kick -Off
Meeting
Site Survey
Outline Process
Points of Contact/Communication Flow
M&V Methodology
Contract Requirements
Engineering Specifications
Safety Requirements
Drawing Requirements/Format
Subcontractor -Selection
Analysis Methodology
System Drawings
- Nameplate lnformation
esistiny [p'.ipment Performance Sub, salt
- Update 2alYRme Scbe0.5
- Operotionai Dote
Existing Metered Data Obtained
(flow, temperature, load and demand)
Establish
Baseline
Measurement
Requirements
Client
Baseline
Meeting
Subcontractor Selected
Data Required
rme span
MMerroq Mec t-P.16 ugs
Basefine Measurements Conducted
Baseline Data Reviewed
Client's Approval on Baseline Information
(existing parameters)
M&V Methodology Finalized
stipulated
One irne of Acceptance
• Ongoing
— General Scope Documentation
— Client's Confirmation on Scope
— Construction Manager Assigned
• Site Evaluation
• Submittal Requirements
• Schedule
• Cast Breakdown
• Design Requirements
• Equipment Performance Parameters
Figure 7.1 Technical Energy Audit Delivery Process Steps 1-5
> Step 5: Financial Modeling
The financial analysis will incorporate the cost and savings developed in the third step into the appropriate financial model(s) for the
project. These models incorporate requests from National City and applicable interest rates and terms to produce a financial
scenario that supports the required investment and debt service.
Ameresco reviews key infrastructure risk management criteria to identify and prioritize the most important renewal and replacement
projects. The process provides valuable data to help City decision -makers define Long-term capital planning strategies which leverage
available funds to maximize project value in the long-term.
> Step 6: Investment Grade Audit
While the goal of the preliminary audit is to identify the potential opportunity and the ability to finance an ESPC, the detailed IGA
serves to more firmly define the scope of work and final cost. The IGA is a much deeper dive into the costs and savings associated
with the project to ensure that Ameresco has an accurate and complete understanding of all of the impacts associated with the
project.
> Step 7: Permanent Financing
Once there is agreement between National City and Ameresco on the ECMs that will be included in the project, the project can then
be bid out to the financing community. This will ensure that the City secures the lowest interest rate for its loan. Our finance team
will work throughout the detailed IGA process to facilitate an easy transition from audit to construction with minimal lag time and
disruption. Over the past 14 years, Ameresco personnel have financed a variety of ESPCs using vehicles such as:
• Tax-exempt lease financing
• Capital lease financing
• Off -balance, pay -from -savings financing
• Installment payment financing
Based on National City's needs and objectives, a selection will be made from a variety of financing options that will be supported by
Ameresco's savings guarantee, insuring that payments will be made from the savings of the project. Please reference Section 11 for
additional information on Ameresco's Financing Approach.
> Step 8: Contract Execution
During this step, the final detailed IGA report will be presented to National City. This report will include a detailed description of the
scope of work, energy calculations, M&V protocols, financing terms and conditions, and facilities to be upgraded.
The resultant Energy Services Agreement (ESA) will ensure that the City's facilities will be upgraded, occupants' health and safety
improved, and sustainability goals advanced with no up -front capital expenditure. The guaranteed energy savings will pay for the
project, reduce operating costs and allow the City to allocate more of its finite resources towards other priorities.
Phase II:
> Step 1:
Development of
Final Project
Scope of Work
and
Costs
Project Financial
Analysis
- Construction Management Review/
Field Audit
- Submittals Evaluated
- Cost/Scope Negotiations
- Validate Equipment Performance vs.
Savings Projections
• Perrornware G aaramees
Warranties
- Implementation Schedule
- Fixed Fee
- Risk Analysis
- Operations Manager Input and Review
- Finalized and Communicate
Implementation of Cost/Savings/
Construction Schedule
Energy Audit
Report
Compilation
- Report Generation
- Savings Projections
- Submittals
p oalinition
- Imakanentotier Schedule
- warranties
Equipment Cutsheets
• ORM sperifirmwns
- Savings Acceptance Procedures
- M&V Methodology
Report Requirements
Respond to the Client's
Questions and Inquiries
Figure 7.2 Technical Energy Audit Delivery Process Steps 6-8
Design and Engineering
Detailed ECM Design
At this step, professional engineers with many years of energy industry experience will complete the conceptual designs. The
Ameresco engineering team will be in charge of the design and engineering work and will ensure that any intermediate design
submittals are prepared for National City's review in a timely fashion.
> Step 2: Equipment Specification
The final equipment selections, subject to the City's approval, will ensure that the guaranteed equipment performance and energy
savings will be achieved and sustained for the full contract term.
> Step 3: Submittals, Construction Schedule, Client Approval
Following National City's final review and approval of submittals, the submittals will become formal project documents. The
equipment and materials will be installed in accordance with these plans, drawings, schedules and specifications. All submittals are
prepared by Ameresco's professional engineering staff, or reviewed in the event that consultants supplemented the firm's in-house
resources. A construction schedule will also be included in the submittals.
Phase III: Implementation
> Step 1: Implementation, Customer Coordination, Pre -Construction Meetings
Once the City has reviewed and approved all of the final submittals and issued a Notice to Proceed, pre -construction meetings can
be held. At these meetings, National City personnel and Ameresco's SPM will confirm all of the details needed to ensure smooth
implementation of the improvements at each facility including any and all site safety, security, background checks, and badging
requirements.
Ameresco's SPM will be responsible for the successful construction of the project, on schedule and within budget. Two critical roles
that Ameresco's SPM fulfills are customer service and quality assurance. The SPM will ensure a smooth and well -coordinated
implementation that minimizes any negative impacts on the City's personnel, educational mission, and building constituents.
As is standard practice in all Ameresco's construction efforts, the SPM reports directly to Ameresco's Director of Construction. The
Director of Construction will retain ultimate responsibility for all implementation period activities. These activities include, but are
not limited to, oversight of procurement and subcontracting, construction budgets and cost control, installation progress,
completion, training, commissioning, project close, and ensuring a smooth transition into the long-term performance period.
> Step 2: Equipment Procurement
The procurement process begins as soon as Ameresco has received the Notice to Proceed. Any equipment and materials that
Ameresco will furnish for installation will be purchased in a timely manner in order to be available for the coordinated construction
efforts. Ameresco's SPM will be responsible for procurement logistics to ensure that all of the equipment and materials meet
contract specifications and that procurement is accomplished in the most cost-effective manner possible. Ameresco is not bound by
low -bid requirements; therefore, equipment can be acquired that provides the best value while meeting guaranteed performance
levels. Competitive procurement solicitations are the favored and typical means of ensuring cost-effectiveness while maintaining
best value.
> Step 3: Subcontract Solicitations/Executions
Similar to Ameresco's material procurement practice, the primary focus is on the proven track record and capabilities of the firms
hired to perform work at National City facilities, whether it is installation labor only or complete turnkey service. Again, low -bid is
not the deciding factor in Ameresco's selection and award process: Subcontractors are chosen based on an evaluation of their ability
to add value and enhance the service provided to the City. All subcontractors must be able to accomplish the specified work on time
within the budget.
Ameresco maintains detailed subcontracting procedures that help reduce the financial and legal risks associated with
subcontracting. By using standard subcontracting documents, internal review and authorization procedures, holding retainage
through completion (including punch -list), requiring National City's review and sign -off on subcontracted work during the
construction period, and compensating our subcontractors in a timely manner, Ameresco is well-equipped to manage the inherent
risks associated with subcontracting. In this manner, Ameresco assumes all of the performance and liability risks of its
subcontractors; thereby, the City is sheltered from those same risks.
> Step 4: ECM Construction
As noted previously, two critical responsibilities that the SPM assumes are quality assurance and customer satisfaction. To fulfill the
quality assurance responsibilities, Ameresco's SPM must ensure that equipment and materials meet the contract specifications and
all work is accomplished in a timely and professional manner. To fulfill the service responsibilities, Ameresco's SPM will oversee all
subcontractor and supply vendor activities to ensure minimal disruption. He will also serve as the primary point of contact
throughout the implementation phase. All issues or concerns that arise will be addressed immediately and resolved to the City's
satisfaction. Any support that Ameresco's SPM requires to accomplish this level of service will be readily available, and efforts can be
supplemented as needed from the reservoir of talent on Ameresco's staff.
Ameresco's SPM also serves as the project safety officer and is responsible for a safe environment for all tradesmen and facility
occupants. He will oversee construction -related activities to ensure compliance with all applicable OSHA, state and local codes and
regulations.
- final Design/Construction
Budgets Submitted
- Design/Build Contracts Finalized
• ream
• utesof to and.kmh.ron
• rued ree
.wol Resew
- Performance Partner Meeting/
Construction Review
- Subcontractor Budgets Submitted
- Implementation Plan
- Final Design Schedule
- Implementation Schedule
- Site -Specific Review
- Client's Requirements/Guidelines
Final Design Milestones
- FRuipniera ReY*S
wing Revew Schedule
Poore, Meetings
Project Schedule
Construction Drawings Issued
Site Mobilization
- Onslte Progress Meetings
- Meeting Minutes Issued
- Weekly Quality Checks
- Updates Scheduled
- Contract Milestones
- Invoice Review/Approval
- Projections Updates
- Change Order Documentation
Project COSt Management
Commissioning
Figure 7.3 Construction Process
> Step 5: Commissioning, Testing, Client Acceptance
When the installation of an ECM, a whole facility, or logical grouping of ECMs is completed satisfactorily, Ameresco staff and the
installation contractor will commission and test the systems in accordance with the detailed plan described in the ECM write-ups in
the detailed IGA. The development and design engineering staff responsible for the conception and finalization of these measures
will also assist in the commissioning phase. National City's facilities and maintenance staff will be invited to the commissioning
events to ensure their complete understanding of the new equipment and recently installed systems. Ameresco's operations
manager will also be intimately involved in this process as part of his responsibility for long-term M&V activities.
A significant amount of responsibility is placed upon Ameresco's SPM. For that reason, the individuals who perform these services
for Ameresco are extremely experienced and selected for particular projects based upon their unique skill sets and base of
operations. In light of the responsibility placed on Ameresco's SPMs, they are vested with a corresponding level of authority to
control the project's progress and all related activities and provided with all the support that is required to successfully accomplish
their tasks.
Training
tart-Upg Procedures
Mechanical/Electrical Completion and -resting
Cleaning and flushing
- test and Balance
otC tkal/Major Pun
traeors. atlule
mennennn
ante al Performance-res..
Equipment/ onnanual u n d
System Functional .m andvwlneadnn commiaslonina
Pert orman.e
Testing D mcnw i NC, rim n..non,.s,:,ion
teria
- 'Maintenance on Requirements/nest.
ar IVIMurrmation
- en art nOnnetien
- Commissioning Data
belay
Chent Renew/Acceptance
Beg, wnh Performance Perim
- CIDAll PuOhI Activities
na Intl
nch list
Project Reconcigation
pemov,ha
Client's Review/Ar<eptanee.
acing to Bart date at sutmanhal complwlnn
Figure 7.4 Commissioning Process
Phase IV: Performance Period Services
> Step 1: Client Training
Training of City's staff involved in the long-term operation of the new equipment and systems is of paramount importance. A strong
focus on energy savings strategies and maintenance schedules will be provided to those individuals. Familiarity gained with the
systems, facilities and client's personnel during the implementation phase make the SPM the perfect candidate to supervise those
training efforts. By providing training in the proper operation and maintenance of the newly installed ECMs, both Ameresco and the
City are assured of sustained performance of the equipment and persistency of energy savings.
Training typically commences during the commissioning phase when the City's staff will be acquainted with the new equipment and
systems. Training will be conducted in a classroom setting at National City facilities, and will be documented on video to ease
training of newly acquired staff or provide refresher courses for veterans. The basic format includes an introduction to the overall
installation so everyone understands the benefits of the equipment and systems. Each ECM will be explained in detail, including how
to operate, maintain and troubleshoot. Documentation will include review of O&M manuals, drawings, and equipment specification
literature. A hands-on approach will be encouraged to ensure understanding of all presented material. The training will emphasize
equipment users' essential role in energy conservation, as poorly maintained equipment will not perform as efficiently as possible.
Ameresco will make provisions with the City to conduct training sessions at remote sites if needed. Informal training can also be
provided throughout the contract term and may be accomplished in conjunction with an O&M contract.
> Step 2: Long -Term Measurement and Verification, Annual Reconciliation
Long-term M&V services and annual reconciliation of performance and savings will be carried out in accordance with the site -
specific M&V plan. The M&V plan presented in the proposal will be written in accordance with the International Performance
Measurement and Verification Protocol (IPMVP), the industry -standard international guideline established to aid agencies in
understanding M&V procedures. The M&V specialist will be instrumental in creating the M&V plans for the City's project and will
finalize these plans as part of the detailed IGA process. With his responsibility for satisfactory long-term M&V and project
performance, the M&V specialist will oversee the M&V of this project in conjunction with local personnel.
Develop M&V
Pre -Installation
M&V Activities
Submit Pre -Installation
M&V Report
ECM Installation
Adjustments to Baseline
Client
Review and Feedback
Client
view and Feedback
Perform Post -Installation
M&V Activities
Submit Post -Installation
M&V Report
Begin Regular Internal
Reporting Phase
Submit Regular
Internal Reports
Client
Review and Feedback
Client
1. Review and Feedback
Figure 7,5 Measurement and Verification Process
Variances between baseline energy consumption and post -retrofit energy consumption and its associated cost can sometimes be
attributed to changes to the unit price of energy, rate schedules, weather, occupancy, building utilization, and other factors not
attributable to the performance of the installed ECMs. Such changes can include, but are not limited to, the following:
• Changes in the manner or frequency of use of the facilities
• Changes in occupancy levels
• Changes in the amount of square footage served by any heating or cooling plant or other major system under this
agreement
• Changes in the hours of operation of any equipment contained in the facilities
• Changes in, additions or deletions of equipment utilizing fuel being monitored under this agreement
These types of changes may require a baseline adjustment. Adjustments to the baseline are intended to account for changes that could
adversely affect the ability to accurately measure savings. As paid from savings projects, any adjustments made to the baseline must
be transparent and clearly documented. Typical baseline adjustments made during the audit include:
• Monthly consumption and/or cost where utility -recorded data is unreliable
• Compelling evidence of service deprivation (broken lighting fixtures, lack of hot water, etc.)
• Vacancy rates, if not indicative of post -retrofit patterns
• Areas of the development will be employed for different purposes pre- and post -retrofit
Other adjustments are occasionally required during the performance period for equipment and operational changes made at a facility.
Changes that are long-term or permanent will be reflected in a change to the energy baseline. Temporary changes that affect energy
use will be calculated and added to the corresponding month's savings.
A sample calculation appears below which would adjust the baseline for changes in occupancy levels
[Adjusted baseline] = [Baseline usage] x ([Current occupancy] / [Baseline occupancy])
If the new occupancy level is 95 percent and the baseline occupancy level was 90 percent, the following formula would be used:
Adjusted Baseline = Baseline Usage x (0.95 / 0.90), or Adjusted Baseline = Baseline Usage x 1.06
Adjustments of baselines must be performed during the performance period to account for heating degree days and billing days.
Ameresco adjusts the weather -sensitive portion of the usage with daily weather data for each specific billing period.
The client is responsible for notifying Ameresco of material changes that affect the energy baseline as established in the final ESA.
Ameresco will determine the effect that any such change will have on energy conservation savings and present a written analysis to
the client of the effects of the changes. Any changes will be specifically documented in writing and mutually agreed to by the client
and Ameresco prior to any adjustment that will impact the savings guarantee.
Unfortunately, it is not possible to produce a generic formula to account for every adjustment that could be encountered during the
term of a project. Generally, adjustments reflect the "what if the system was operating like this in the base year" view. Therefore, it is
crucial to establish the baseline conditions very clearly during the audit process in order to help identify the causes of any substandard
ECM performance.
General effects of changes to baseline conditions on each of the four IPMVP options are as follows:
• Option A allows for the stipulation of many of the factors; therefore, minimal baseline adjustments are usually required.
Consequentially, Option A can be easier and less expensive to implement.
• Option B involves metering techniques. Baseline performance data is not changed, but baseline -operating variables
(primarily run time) can be changed by use of metered data obtained during the post -installation performance period.
• Option C is primarily based on a billing analysis. Unless adjustment factors are pre -defined in the M&V plan, arriving at a
mutually agreed upon adjustment may be difficult. Buildings typically don't have sub metering systems that would be able to
breakout the utility consumption for individual systems. Multiple adjustments may be required at one time, causing breakout
of the individual adjustments to be nearly impossible.
• Option D is characterized by calibrated simulation, which can be easy or difficult to adjust, depending on the details of the
calibrated simulation and the variables used in the calibration. If baseline adjustments are possible, no matter how unlikely,
adjustment factors will be defined.
While the specific algorithms vary from measure to measure, they can all be broken down into usage pre- and post -installation of the
ECM. Sometimes the baseline usage is fixed, while in other cases the baseline is calculated based on the post -installation usage,
depending on the specific plan used to verify the performance of the measure. All specific protocols must be explained to and
accepted by the client before project construction can begin.
Measurement & Verification
Ameresco will coauthor the development of a detailed and comprehensive M&V plan with t National City during the audit. This will
include ongoing monitoring to ensure actual ongoing savings are attained. This is a critical element of the performance contract
because it provides the basis for the energy savings guarantee and debt -service payment. The specific M&V plan will be submitted
with the final IGA and will be included as a Schedule in the ESA. The frequency of M&V reporting —quarterly, biannually, or
annually —will be at the option of the City. All specific protocols must be explained to, and accepted by, National City before project
construction can begin. M&V involves two essential components:
1. Verifying the ability of the project to generate all the projected and/or guaranteed savings
2. Measuring actual, periodic performance of the project against the established baseline(s)
While there are a variety of ways to accomplish the two primary M&V tasks, a critical prerequisite is to establish the aforementioned
baseline(s). These baselines are developed from a rigorously derived end -use analysis, on -site measurements and historical energy
consumption data. Techniques range from stipulating all factors affecting ECM performance to installing extensive, highly accurate
metering systems. When deciding the appropriate level of sophistication for a particular plan, factors such as complexity of the
measure, expected magnitude of savings from the measure, and the client's aversion to risk all affect the decision. In an effort to aid
agencies in gaining an understanding of M&V, the IPMVP was established.
The general approach to determining energy savings in these plans involves comparing the energy use associated with a facility or
certain energy consuming systems within a facility before installation of the ECM (baseline) and after installation of the ECM (post -
installation). In general:
Energy Savings = (Baseline Energy Use) — (Post Installation Energy Use).
The specific algorithms vary from measure to measure, but can all be broken down into baseline and post -installation usage.
Sometimes the baseline usage is fixed, while in other cases the baseline is calculated based on the post -installation usage depending on
the specific plan used to verify the performance of the measure.
The long-term success of any comprehensive energy efficiency program depends on the development of an accurate, successful M&V
plan. The main objective is to develop a cost effective plan that quantifies and verifies the performance results of the ECMs.
Ameresco applies industry standard M&V protocols that have been developed in response to the need for reliable and consistent
measurement practices.
The following reference is used for the development of M&V procedures:
• Efficiency Valuation Organization. International Performance Measurement & Verification Protocol (IPMVP). September
2010.
• The protocols also help to allocate various risks associated with achieving energy cost savings and allowing risk reduction
and better risk management. The M&V options description, provided herein, was developed by summarizing the IPMVP and
contains excerpts taken from that document. The benefits of the protocols include:
- Defining the role of verification in energy contracts and implementation
Discussing procedures, with varying levels of accuracy and cost, for verifying:
• Baseline and project installation conditions
• Long-term energy savings performance
Providing techniques for calculating "whole -facility" savings, individual technology savings, and stipulated savings
Providing procedures that are consistent, industry accepted, impartial and reliable
- Providing procedures for the investigation and resolution of disagreements related to performance issues
The IPMVP protocols have defined four M&V options (Options A through D) that meet the needs of a wide range of performance
contracts and provide suggested procedures for baseline development and post -retrofit verification. These M&V options are flexible
and reflect the considerations previously mentioned.
Project Team Resumes
Brief resumes for key project team members can be found within Section 4.
8. Methodology of Determining & Guaranteeing Energy Savings
As an integral part of its contract with t National City, Ameresco will guarantee a minimum level of energy savings over the full term
of the contract. Ameresco's guarantee provides assurance to the City that the cash inflows from the project, which include both energy
and operational cost savings, if applicable, will exceed the City's cash requirements for the project, the lease payments and, if
applicable and/or desired by the City, any on -going payments for the provision of O&M services. The City will retain actual annual
energy cost savings that exceed Ameresco's guarantee.
Ameresco believes that it is in our clients' best interest to require a savings guarantee from its energy service company partner. The
chief objective of an ESPC is to use future reductions to the operating budget to amortize the cost of the energy savings performance
contract over the term of the financing. Without the guarantee, the City would have no recourse against the energy service company in
the event of a savings shortfall.
Typically, Ameresco clients, subject to local statutes, terminate the guarantee and the associated M&V requirements after the third
year of performance, as long as the savings have been achieved.
Any O&M savings applied to the project will be stipulated between the two parties. Ameresco will provide detailed calculations and
supporting documentation for any O&M savings to National City for review and approval in the IGA. Additionally, the guarantee can
be structured to cover the annual M&V and maintenance costs.
At any time during the contract term, should there be a shortfall in energy cost savings identified during the annual reconciliation and
correction process; Ameresco will make a payment to the City in the full amount of the shortfall. Payments can be in the form of a
check or a credit against future billings from Ameresco, National City's option.
Ameresco's guarantee language included in a standard Energy Services Agreement (ESA) is provided below.
SECTION XX: Guarantee of Energy Savings
(a) Ameresco hereby represents and warrants to Customer that the amount of the Annual Energy Cost Savings (as defined in Attachment E) shall
equal or exceed the "Guaranteed Savings" (as specified in Table 6(a) below), over the Term (the "Guarantee of Energy Savings").
Table 6(a)
Year Guaranteed Saim�s
2
3
4
5
6
7
8
9
I0
1i
12
13
14
15
For purposes of the Guarantee of Energy Savings, the following assumptions and provisions shall apply:
(i)
Calculation of the Annual Energy Cost Savings, inclusive of energy savings and operational and maintenance cost savings, shall be
performed under, and governed by, the methods, formulas and procedures described in Attaclunent X.
(ii) As it relates to the Annual Energy Cost Savings and the Guarantee of Energy Savings, the term "year" shall mean the consecutive 12-
month month period beginning with the fust day of the month following the date of the Final Delivery and Acceptance Certificate (the
Anniversary Date), and each similar 12-month period thereafter.
(iii) The unit prices, including the escalation thereof, to be used to calculate the Annual Energy Cost Savings for the purposes of the
Guarantee of Energy Savings are described in Attachment X.
(iv) The Guarantee of Energy Savings herein is subject to Customer performing its maintenance and other obligations under this
Agreement. If Customer fails to perform, or fails to properly perform, its obligations under this Agreement or interferes with, or
permits any person to take any action which, in the reasonable opinion of Ameresco, prevents the achievement of the Annual Energy
Cost Savings under the Guarantee of Energy Savings, then Ameresco may equitably adjust the Annual Energy Cost Savings during the
period wherein savings were affected to reflect the same. Ameresco's rights in this section shall not be in limitation of any other rights
it possesses under this Agreement.
(b) Ameresco will perform and submit to Customer a guarantee reconciliation (Guarantee Reconciliation) upon the later of (i) 120 days after each
Anniversary Date and (ii) 60 days after Customer delivers to Ameresco all utility billing and other data necessary for Ameresco's completion of
the Guarantee Reconciliation. The Guarantee Reconciliation will include a calculation of the cumulative Annual Energy Cost Savings achieved in
relation to the cumulative Guaranteed Savings for the period being reconciled.
(c) Ameresco hereby guarantees that if the cumulative Annual Energy Cost Savings realized by Customer as of any Anniversary Date, as detailed in
the Guarantee Reconciliation, is less than the cumulative Guaranteed Savings as of such Anniversary Date, then Ameresco will pay to Customer
that amount by which the cumulative Guaranteed Savings exceeds the cumulative Annual Energy Cost Savings, such payment to be made within
60 days after the date of the Guarantee Reconciliation. Any such payments made by Ameresco shall be included in the cumulative Annual Energy
Cost Savings total for purposes of future Guarantee Reconciliation calculations.
• Ameresco follows the IPMVP guidelines as specified in detail in Section 7.
9. Performance Capabilities
As an integral part of its contracts, Ameresco will guarantee a minimum level of energy and water savings over the full term of the
contract. These provisions guarantee that the cash inflows from the project (e.g., energy and operational cost savings [as applicable]
and utility rebates) will exceed any cash requirements, lease payments, and the cost of any operations and maintenance services
required. National City will retain actual annual energy cost savings that exceed Ameresco's guarantee. In this way, Ameresco's
clients are assured that a performance contract with Ameresco will reduce utility costs; improve infrastructure; and enhance the safety,
comfort, and health of facility occupants without a capital expenditure.
All of Ameresco's performance contracts include long-term assurances which guarantee that the project will achieve or exceed the
levels of projected savings. In fact, projects with Ameresco typically achieve 103 percent of our guarantees. From our inception
through December 31, 2013, total payment to clients and incurred costs under our energy reduction commitments have been less than
0.5 percent of the guaranteed annual savings for all contracts with savings guarantees.
Ameresco's savings guarantees are conducted in accordance with the IPMVP, which established industry -leading practices
performance verification. Ameresco assures that National City will receive the savings guarantees and achieve similar levels of
projects savings that all of our clients have come to expect throughout our 14 plus years in the industry.
With 2013 revenues of over $574 million and a construction backlog exceeding $1.35 billion, Ameresco is one of the largest
independent energy services companies in United States. We maintain a $1.4 billion surety credit facility through two corporate
providers, both with an AM Best Rating of "A Excellent." Using its significant resources, Ameresco has the financial fortitude to be a
long-term partner with National City, ensuring a successful development execution, project implementation, and operations.
Please reference Appendix A for Ameresco's 2013 Audited Financial Statement, which includes financial information for the previous
three years.
10. Time Specified in the Qualifications for the Performance of the
Contract
Ameresco has carefully reviewed the requirement for National City's Energy Services Contract for Sustainability Improvement to City
Facilities and is confident that we can perform the audit of the identified National City facilities within City's anticipated timeframe
of four months after the date of issuance of the letter of intent.
11. Financing Approach
Ameresco has sourced and raised more than $1.5 billion of project financing over the past 14 years from various lending sources
including John Hancock, Bayerische Landesbank, Bank of America, Capital One, Chase Bank, Crews and Associates, Union Bank,
Green Campus Partners and several other financial institutions. Using existing cash resources, cash flows from Ameresco's operating
activities, and access to credit through multiple lending relationships, Ameresco has the resources necessary to develop, implement,
and finance clients' energy projects of nearly any size of scope. We have secured or assisted clients in securing financing for various
types of utility efficiency projects ranging in size from less than $1 million to over $180 million. Pricing varies by size, term, credit
quality and structure —from 10 to over 20 years with tax-exempt interest rates from 0.0 to 5.0 percent.
The structured finance group is highly engaged in the financial markets and continuously strengthens its relationships with lenders.
Through these relationships, the team is able to provide an independent and transparent bidding process to determine the right
financing partner on all types of projects. We work with lenders that provide interest rate locks, low interest rates, and have a high
level of understanding of energy conservation and renewable energy projects.
Ameresco maintains a commercial banking relationship with Bank of America. John Lynch, Senior Vice President manages
Ameresco's relationship. Ameresco has a $100 million revolving credit facility with Bank of America.. Contact information is as
follows:
Bank of America
C/O: John Lynch, Senior Vice President
100 Federal Street, Boston, MA 02110
P: 617.434.7760
Additional lenders with whom Ameresco has established relationships with include:
Capital One
C/O: Jeff Sharp
11663 South Parkwood Drive
Olathe, KS 66061
P: 877.890.8509
Green Campus Partners
C/O: Neal Skiver
215 Lincoln Avenue
Santa Fe, NM 87501
P: 732.917.2311
Zions Bank Corporation
CIO: Alan Westenskow
One South Main Street, 18th Floor
Salt Lake City, UT 84133-1109
P: 801. 844.7377
Crews and Associates, Inc.
C/O: Edmond Hurst
521 President Clinton Avenue, Suite 800
Little Rock, AR 72201
P: 510.978.7941
SunTrust Leasing Corporation
C/O: Doug Dillon
300 East Joppa Road, Suite 700
Towson, MD 21286
P: 410.307.6640
Ameresco is dedicated to working with public utilities; local, state, and federal agencies; and other pertinent organizations to keep
abreast of the latest incentive program offerings and guidelines to help maximize the amount of additional funding clients can expect
to receive. The financial team will work closely with project developers to ensure the final solution meets all incentive requirements
from state and federal sources.
Specific steps taken to secure and utilize rebates include the following:
• Assemble the production -based or prescriptive incentive applications,
• Submit those applications to the pertinent agency on behalf of National City
• Follow-through with any required reporting and analysis necessary to secure all available rebates, including the processing
of rebate -related documents during system installation and commissioning
• Provision of on -going monitoring and verification services and required documentation in order to access rebate funds
earmarked for the relevant project
All of the members of the project team have experience working with the utility companies throughout California to secure rebates for
projects. This experience includes completing rebate applications, conducting pre and post construction site visits with inspectors, and
responding to inquiries from utility company staff regarding savings calculations. Table 11.0 includes an overview of grants secured by
members of the project team on behalf of their California clients.
Table 11.0 Representative List of Grants and Rebate Experience for California Clients
Client Funding Type Amount
San Francisco Housing Authority
Santa Clara, City of, Forward Power
Santa Clara, City of, Vasco Road Power
Salinas Valley Solid Waste Authority, Johnson Canyon Power
San Joaquin County, Foothill Power
Butte County Neal Road Waste
Chula Vista Elementary School District, CA
ARRA
State of CA
State of CA
State of CA
State of CA
State of CA
QZAB (2)
Utility Rebates
11,700,000
196,028
160,882
67,434
151,667
95,529
$ 17,000,000
$ 500,00
Sweetwater Union High School District, CA
South Bay Union School District, CA
National School District, CA
Fullerton School District, CA
Bakersfield City School District, CA
Washington Unified School District, CA
Utility Rebates
Utility Rebates
Utility Rebates
$ 800,000
$ 300,000
$ 250,000
QZAB
Utility Rebates
Utility Rebates
QSCB
Utility Rebates
$ 2,500,000
$ 500,000
$ 300,000
$ 3,600,000
$ 200,000
Please note that these projects were contracted under Innovative Energy Services, Inc.
Notes:
ARRA = American Recovery and Reinvestment Act
EECBG Energy Efficiency and Conservation Block Grant
State of CA = Sales Tax Exemption under SB71
QSCB = Qualified School Construction Bond
QZAB = Qualified Zone Academy Bond
whose entire team joined Ameresco in January 2013.
Ameresco was one of the first energy services companies in the nation to successfully integrate American Recovery and
Reinvestment Act (ARRA) funds in the form of federal Energy Efficiency and Conservation Block Grants (EECBG), Clean Renewable
Energy Bonds (CREBs), Recovery Zone Economic Development Bonds (RZEDBs), Qualified Energy Conservation Bonds (QECBs) and
utility rebates to create a fully self -funding project for the City of Reno, Nevada.
Ameresco has successfully secured $52 million in solar incentives on behalf of Arizona State University from the two local public
utilities. In fact, the ASU Polytechnic Campus 598 kW -DC ground mount array alone received an incentive award totaling $2,902,321
over the 20-year lifespan of the system.
Combined, Ameresco, its antecedent companies, and the IES team members have been assisting clients in securing low interest
financing for energy projects for nearly three decades. This funding assistance and oversight is managed and allocated by the
California Energy Commission and often assists our clients in securing funding for energy conservation and efficiency projects.
12. Methods Proposed to Accomplish the Work
a. Capabilities for Developing and Innovative/Advanced Techniques for Project Delivery
The Ameresco Asset Sustainability tool helps clients develop strategies to manage the funding gaps associated with aging
infrastructure. Asset Sustainability reviews key risk management criteria to identify and prioritize the most important renewal and
replacement projects. The program provides valuable data to help decision -makers define long-term capital planning strategies which
leverage available funds to maximize project value in the long-term.
Our approach incorporates state-of-the-art business processes designed to manage current capital costs and predict the future capital
needs for multi -facility public and private property owners, including municipalities, K-12 schools, institutions of higher education,
public housing, healthcare, hospitality, property management, condominiums and commercial clients. In summary, the tool:
• Helps establish clear and defensible infrastructure needs
• Defines practical strategies directly applicable to a multi -site property owners needs
• Allows a comprehensive assessment of the phased implementation of various options or strategies
/
/ \
/ \
/ \
/ NEEDS
/ 5 \
/ \
/STRATEGIES \
44
PHASED
IMPLEMENTATION
• Develop fac kly planning framework
• Collect facility data on current costs component II
• Pattern facility renewal reeds over 30 years
• Validate 5-year needs and cos; data
• Develop 30-year vision and S year capital Oar
I ose and operat»ons
• Estableas renewal targets and strategies
• Identify facility -refuted swings potential
• Evaluate long-term capital funding options
• Develop and present capital plan business case
• Select facility's software tools
• Underake engineering feasibility
• Tender for materials and measures
• Manage organg phased implementation
• Commission renewer facility systems
• Monitoring renewal and savings results
• Revisit catxtal plan for ltfesycle changes
Figure 12.0 Asset Puri u g Prueess
b. Managerial Approach to Ensuring High Quality Service
Our quality assurance policy states that, "Ameresco will attain 100 percent customer satisfaction by providing value-added innovative
solutions that perform to their requirements every time." Thus, quality is a core goal to be addressed in an ongoing manner instead of
simply addressed at the completion of a project.
To ensure that the newly installed measures are fully functional and operating to the City's satisfaction by any deadlines developed at
the inception of the project, Ameresco's SPM will collaborate with the City's staff to define and mutually agree upon construction
milestones. These milestones will both meet the needs of the City and ensure timely project completion. Because client satisfaction is
Ameresco's primary goal, it is the responsibility of every staff member and subcontractor to deliver a quality product.
Throughout the construction phase and before the date of substantial completion, the SPM will require a City representative to
formally sign -off on the work completed before the next phase of work can continue. If an issue is discovered, the project manager
and Ameresco's leadership team will work together to identify the root cause, analyze the consequences, and establish guidelines or
other risk mitigation measures, to ensure that a similar problem does not reoccur. It is Ameresco's responsibility to work with the
contracting entity to determine how the issue will be resolved. It will be addressed immediately to mitigate project delays and avoid
additional complications.
Ameresco's Quality Assurance Plan has the following core components:
• Client Satisfaction Teams: These teams are composed of a branch or department manager and select staff members. The
teams' primary objective is to keep each operating unit focused on providing systems and services that result in 100
percent customer satisfaction.
• Quality Awareness and Communication: Special efforts are expended on an ongoing basis to keep the quality assurance
plan in the forefront in all client relationships. Because we define quality improvement as a process as opposed to a
program, associated activities are a continuous part of Ameresco's everyday operation philosophy.
• Requirements: A key element of successful project is to clearly understand the client, as well as their goals, challenges, and
objectives. As a company, we work to develop long-term trust relationships with individual clients as we service their needs.
Only through close, constant contact with our clients can we understand their changing requirements and exceed
performance expectations.
• Measurement: By measurement, we track our ability to meet the unique needs of our clients. Measurements make the
quality process real as opposed to simply a philosophy.
• Corrective Action: Corrective action is a systematic method of identifying problems and addressing their causes. Our client
satisfaction teams take corrective action by identifying the root of an issue and establishing measures to ensure that the
particular problem will not reoccur. Clients are often requested to be members of a corrective action team to help define
the solution and resolve the issue.
• Recognition: We formalize our appreciation of those Ameresco staff members who contribute to client satisfaction. We
have several channels through which we recognize employees who deliver exemplary service to our clients.
Clients who select Ameresco as their energy partner can be certain they are dealing with a company who recognizes the importance of
delivering high -quality products, systems, and services. Our experience has taught us that the long-term success of any project or
relationship requires adherence to the quality process as a number -one priority and must be recognized as such at all levels in the
organization. All Ameresco projects regardless of size or scope receive the same level quality and dedication.
c. Methods Proposed to Ensure On -Time & Within Budget Project Delivery
Ameresco's projects are specifically designed from inception through the term of the contract to mitigate client risk. In fact, with
established performance assurances back by long-term financial solvency and longevity, clients are inherently sheltered from the risks
that are often associated with capital improvement projects. Additional risk mitigation strategies include:
• Industry -leading commitment to safety
• Proven methodologies for subcontractor selection and management to ensure subcontractors perform to the same level of
quality and accountability as direct Ameresco employees
• Project scheduling designed to minimize any interruptions to normal business operations
These strategies are supported by a Quality Assurance Plan established to recognize, understand, and rectify any issues of concern
that arise during the contract term.
Ameresco's custom approach to system design and engineering extends beyond project development and through the implementation
phase. The vast majority of our energy projects have been constructed on active, publically-managed spaces utilized by members of
the public, including municipalities, educational institutions, and the federal government. We work in close collaboration with our
clients to ensure construction does not interfere with a site's normal operational needs while maintaining a safe and secure
environment for the public.
The Ameresco team will work in close coordination with National City's staff to understand the facilities' operational requirements so
that the project can be implemented in a way which mitigates any potential impacts to daily operations. Once the project has been
designed and operational requirements identified, implementation tasks will be entered into Microsoft® Project software to develop a
project schedule. Microsoft Project will convey the total project timeline, estimating the manpower loading, and ensure that there are
no overlapping critical activities that will affect the implementation schedule.
Following final approval by Ameresco and the City, the timeline will be used diligently by the field staff to track construction
progress. The project schedule will be a living document and will be constantly updated throughout the life of the project. Any
changes to the project schedule will be communicated immediately to the City's staff in the manner most useful to the individual
client, such as via email, hard copy, phone, or in -person.
System delivery will be overseen by the SPM who will manage all aspects of the project's implementation. This dedicated, in-house
staff member will serve as the single point of contact during construction, including equipment procurement, and subcontractor
selectionand management. He or she is responsible for ensuring that both direct Ameresco employees and subcontracts achieve
established project milestones safely, efficiently, and in accordance with design specifications.
During the construction phase, the SPM will conduct weekly construction meetings with subcontractors and City staff to monitor
progress and review a two week "look ahead" construction schedule. Additionally, Ameresco will assist in the notification of site staff
members, administrators, and the public, as applicable, in advance of the upcoming work to minimize and avoid any impacts to
normal facility operation.
Nearly all of Ameresco's clients are those in the public sector and are located in publicly occupied facilities where specific
coordination is required with the client, local utilities, subcontractors, equipment suppliers, and facility personnel to best accommodate
the needs of its staff and visitors and cause minimal, if any, disruption. In many cases, major project installations are scheduled on
weekends and holidays when educational facilities are typically not in use. Recent project examples where Ameresco successfully
overcame challenging installation requirements include:
• Maricopa County's $30.2 million performance contract included upgrades to secure justice facilities (including correctional
facilities and the courthouse) in and around Phoenix, Arizona, including the installation of 1.27 MW of solar PV at three
sites and 120,727 therms of solar thermal at seven correctional facilities. Ameresco closely coordinated with County staff
throughout all phases of the project, including grid interconnection, to ensure that in the projects were installed while
maintaining a safe and secure environment. Through an effective and well -coordinated communications strategy,
construction was completed on -time without any interruptions to the County's daily operations.
• Lake Havasu City required extensive coordination between the client and Ameresco in order to achieve project milestones
without interruption to the City's daily business operations; in particular, City Hall, the Police Department, and Aquatics
Center are areas of high public traffic. Construction managers established goals on a two week look -ahead basis, and met
with City and site -specific administrators on a weekly basis to understand each site's requirements so that daily milestones
could be shifted accordingly. Installation contractors often worked ten to twelve hour days to ensure goals were completed
in accordance with the mutually -agreed -upon schedule. Work was conducted over weekends, holidays, and other breaks
while the facilities were closed to the public.
• The City of Henderson Justice Facility (ESPC Phase I) project included three boiler change outs during the winter with no
adverse effect on building heating requirements for jail cells, judge's chambers or clerk offices, and with no occupant
complaint.
13. Financing Management & Account System
Performance contracts are invoiced monthly on a percent complete basis. Each month, the Senior Project Manager (SPM)
provides a project update to Accounting Department. The client is then invoiced based on a pre -approved Schedule of Values.
Please reference Figure 13.0 for a process map of Ameresco's invoicing procedures.
Senior Project
Manager
Ameresco
Figure 13.0 Invoicing Procedures Process Map
Invoices are provided electronically via email or by hard copy. Upon client request and when geographically appropriate, invoices
can be provided in -person. Ameresco's standard payment terms are net 30 days.
Ameresco's SPMs strictly comply with the procedures provided. Ameresco maintains regular communication with all clients, and
will rapidly address any procedural issues that may arise if the established invoicing procedures do not meet the needs,
requirements, or preferences of the client.
As a turnkey energy services provider, Ameresco's only business is working with clients to continually lower operating costs
through supply- and demand -side solutions. We offer the technical expertise, as well as the dedication required to develop and
institute a holistic program that targets the conservation of all major utilities and equipment. Ameresco's only business is
resource conservation, generation, and management, including energy and water conservation measures, renewable energy
solutions, and energy information systems, coupled with the financial expertise to identify creative funding solutions to meet each
client's unique budgetary, administrative, regulatory, or other requirements.
We offer experience and knowledge of the a broad portfolio of opportunities that support fiscal responsibility; renew asset
infrastructure; reduce facilities' environmental impacts; and provide a healthier, more comfortable, and safer environment for our
clients and their staff, administration, and other constituents. Our ability to impact long-term savings is driven by a combination
of installed supply- and demand -side energy solutions, as well as a focus on the long-term ability of the equipment and systems to
continue to generate savings over time.
Ameresco's financial management and accounting system will operate in compliance with Parts 16.301-3, 18, and 31 of Title 48
of the CFR.
14. Competitive Procurement, Open Book Pricing & Overhead
a. Process for Obtaining Competitive Subcontractor Bids, Selecting Subcontractors, and Assuring
Competitive Pricing
Ameresco will establish subcontractor alliances for the City on a case -by -case basis for the installation portion of the project, as we do
for virtually all of our clients. This process keeps us vendor neutral and ensures that we are able to meet the financial, operational,
D/M/WBE utilization, and other goals identified by the City.
Ameresco casts a wide net to national and local suppliers and contractors for all goods and services, and works directly with several
major manufacturers. Ameresco will confer with the City to select preferred vendors, and pricing will be compared with what the City
is accustomed to paying for all goods and services similar to those required by this project.
Construction scope is typically put out for preliminary quotation during the IGA using conceptual design schematics, unit counts,
equipment preferences, and other details developed for the audit report. These quotations are compared with other similar Ameresco
municipal installations and applied to the pricing contained in the IGA. After the Energy Services Agreement (ESA) is executed,
designs are developed and quotations are again solicited on the refined scope of work.
Ameresco typically solicits a minimum of three contractor quotations on all measures, in an effort to assure that the client receives the
best goods and services are delivered for the lowest price. An additional key benefit of Ameresco's independent position in this
marketplace is that we have no pull -through product or service goals. Our only product is performance contracting, and we have no
larger manufacturing or service -providing corporation influencing our offering. Technology and products are recommended based on
their ability to best meet the needs of our clients for the lowest possible cost.
Ameresco's success depends upon timely, professional quality workmanship performed by qualified subcontractors who are proficient
in the specific technologies required to implement the project scope. As it is with price and technical proficiency, a premium is placed
on the ability of the contractor to work cooperatively in a non -disruptive fashion within occupied municipal facilities. To this end, it is
generally beneficial to engage local subcontractors who have a proven track record of success in City facilities, and an established
relationship with the facility personnel. Ameresco will look favorably to contractors that have had positive experience with the City.
When Ameresco uses a subcontractor to perform a service required by the contract or to provide materials and supplies for use on the
contract, we insist that the subcontractor perform to the same standards and meet the same requirements that we are required to meet.
The use of subcontractors to accomplish elements of this contract will be transparent to the City. If a quality issue arises, we will
resolve it as if the cause existed within the Ameresco organization. Each agreement will contain the same flow -down clauses and
include all requirements that are part of the contract between Ameresco and the National City, as well as the additional terms and
conditions provided by the City.
Ameresco will inspect all goods delivered and services performed. If so desired or as necessary, Ameresco or the City's staff may
require inspection of any vendor's operation.
Determining Responsive, Responsible Bidders
Ameresco understands that the use of local subcontractors is expected and paramount to this project, and we will make it our goal to
meet and exceed those expectations, as we did for the City of Reno where we utilized 93 percent local labor.
Responsible bidder shall:
• Provide sufficient financial resources to complete the order
• Meet quoted delivery considering all other business commitments
• Provide satisfactory integrity and record of performance and safety
• Comply with all terms and conditions not individually waived
• Have the necessary production and technical equipment and facilities (or the ability to obtain them)
• Have the necessary organization experience, operational controls and technical skills (or ability to readily obtain them)
• Be an authorized distributor or vendor for the requirement
• Be otherwise qualified and eligible to receive an award under applicable laws and regulations and accepted procurement
practice
• Submit a bid within a competitive range
Responsive bidder shall:
• Meet all requirements of the solicitation (delivery, quality, quantity and price)
• Compete in the market for the furnishing of the items to be procured as a normal course of business
• Arrive at the price independently
• Provide methods for selection and evaluation of subcontractors
When subcontracting is used, Ameresco will:
• Define the scope of work
• Prepare a recommended slate of qualified vendors
• Seek bids from approved offers
• Review bids or offers for compliance and cost
• Conduct a pre -award survey, if necessary, to confirm capability
• Provide a recommendation for award to the City for review and approval
• Award the subcontract
Plan to Attract DBE Subcontractors
Ameresco's Small Business Utilization Plan describes how the Ameresco team will identify and notify D/M/WBE firms about
opportunities to participate in the City of National City project. Our Plan includes:
• Hosting D/M/WBE Contractor Outreach Events offering the M/WBE contracting community opportunities to meet
Ameresco's decision makers and learn first-hand about the project and contracting opportunities;
• Establishing and maintaining communications and relationships with business and trade organizations that have
member constituents able to supply professional services, contracts and supplies.;
• Identifying qualified D/M/WBEs for the project through research by NIGPS and NAICS Codes of public databases
operated by federal, state, and local governments, state transportation departments as well as national organizations
that are certifying authorities
• Collecting, tracking and monitoring D/M/WBE expenditures from all higher -tier contractors on a monthly basis
• Collecting, tracking and monitoring D/M/WBE expenditures from subcontractors with contract values totaling five
thousand dollars ($5,000) or more on a monthly basis
• Reporting D/M/WBE contract award and expenditure participation in a timely and accurate manner, monthly and/or in
real-time as requests are received
b. Commitment/Experience with Open -Book Pricing
Ameresco has performed a large number of projects on an "open book" cost basis. We will request proposals from multiple
subcontractors and equipment vendors to ensure that National City receives the best value for each project dollar and will present the
proposals to the City for review. Ameresco's fees will be determined as a percentage of these direct project costs. All subcontracts,
design, engineering, project management and finance costs will be disclosed during the final program development phase. Ameresco
has found that this process fosters the development of an open, communicative relationship that serves as a foundation for a long-term
partnership.
This same open book, cost plus approach is currently being implementing at a number of projects for municipalities, correctional
facilities, school districts, and institutions of higher education throughout the U.S. For example, Ameresco is an awardee under
several of the U.S. Department of Energy Regional "Super ESPC" contracts, including the U.S. Army Corps of Engineers in
Huntsville, Alabama and the U.S. Department of Army Medical Command. As part of both selection processes, Ameresco agreed to a
not -to -exceed mark-up on typical energy conservation measures.
c. Overhead Rate
Ameresco will apply markups listed to all projects implemented. Ameresco proposes that all project related costs incurred by
Ameresco shall be applied a markup in order to recover overhead and recognize profit.
Table 14,0 Mark up on Project,
Category
Overhead
Profit
Percent Markup and Fees
Typically range between 9 - 12% of Direct Project Costs. (These costs vary with the size and complexity of the project.
Typically 6%
15. Exceptions to this Request for Statement of
Qualifications
Ameresco takes no exceptions to this Request for Statement of Qualifications.
RESOLUTION NO. 2015 — 189
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH AMERESCO, INC.,
TO CONDUCT AN ENERGY AUDIT OF CITY FACILITIES (PHASE I), DEVELOP
A PROJECT SCOPE OF ENERGY AND WATER SAVING MEASURES TO FUND
CAPITAL COSTS, FORECAST SAVINGS, AND PRESENT A FINANCING SOLUTION
WHEREAS, on June 3, 2014, in accordance with the City's Energy Roadmap
and Climate Action Plan, the City Council directed staff to solicit proposals pursuant to California
Government Code 4217, to design, install, and finance sustainability improvements within
municipal facilities; and
WHEREAS, in July 2014, the Engineering and Public Works Department
advertised a Request for Statement of Qualifications ("SOQ") for an energy services contract to
make sustainability improvements to City facilities under a guaranteed energy savings contract
that would provide energy -related capital improvement services through performance -based
contracting; and
WHEREAS, these services would include design, installation, maintenance, and
monitoring of energy and water saving upgrades at City facilities with a guarantee that monetary
savings will cover the cost of the upgrades; and
WHEREAS, of the two responses received, Ameresco Inc., received the highest
overall rating from a five -member selection committee; and
WHEREAS, the City desires to enter into an Energy Audit Agreement (Phase 1)
with Ameresco to conduct an Energy Audit of City facilities, develop a project scope of energy
and water saving measures, forecast savings, present a financing solution, and offer a
guarantee that cost savings will cover project costs; and
WHEREAS, in the event Ameresco is unable to identify enough savings to cover
the project costs, they will notify the City and cease activities under this contract at no charge to
the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute an Energy Audit Agreement (Phase 1)
with Ameresco to conduct an Energy Audit of City facilities, develop a project scope of energy
and water saving measures, forecast savings, present a financing solution, and offer a
guarantee that cost savings will cover project costs.
PASSED and ADOPTED this 15th day of December 2015.
ATTEST:
Michael R. Dalla, City Clerk
on Morrison, Mayor
APROVED S TO FORM:
CI 'hia a
City Attorney
Passed and adopted by the Council of the City of National City, California, on
December 15, 2015 by the following vote, to -wit:
Ayes: Councilmembers Cano, Mendivil, Morrison, Rios, Sotelo-Solis.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
City Clerk of the City of tional City, California
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2015-189 of the City of National City, California, passed and
adopted by the Council of said City on December 15, 2015.
City Clerk of the City of National City, California
By:
Deputy
CITY OF NATIONAL CITY, CALIFORNIA
COUNCIL AGENDA STATEMENT
cs-rlo
MEETING DATE: December 15, 2015
AGENDA ITEM NO. 17
ITEM TITLE:
Resolution of the City Council of the City of National City authorizing the Mayor to execute an Agreement with
Ameresco, Inc., to conduct an Energy Audit of City facilities (Phase I), develop a project scope of energy and
water saving measures to fund capital costs, forecast savings, and present a financing solution.
/i9
PREPARED BY: Jose Loiez, Civil Engineering Tech DEPARTMENT: Engineering/Public Works
PHONE: Ext. 4312
EXPLANATION:
See attached.
APPROVED BY:
FINANCIAL STATEMENT:
APPROVED: Finance
ACCOUNT NO. APPROVED: MIS
No financial impact at this time. However, if the City declines to enter into an agreement with Ameresco,
Inc. for Phase II pending completion of Phase I, the City will be required to reimburse Ameresco, Inc.,
the Energy Audit cost of $70,639.00.
ENVIRONMENTAL REVIEW:
N/A
ORDINANCE: INTRODUCTION:
FINAL ADOPTION:
STAFF RECOMMENDATION:
Adopt proposed resolution
BOARD / COMMISSION RECOMMENDATION:
N/A
ATTACHMENTS:
1. Explanation
2. Standard Services Agreement
3. Resolution
t opt
BACKGROUND INFORMATION:
In accordance with the City's Energy Roadmap and Climate Action Plan, Council directed
staff on June 3, 2014 to "solicit proposals pursuant to California Government Code 4217,
to design, install, and finance sustainability improvements within municipal facilities."
in July 2014, the City's Engineering and Public Works Department advertised a Request
for Statement of Qualifications (SOQ) for an energy services contract to make
sustainability improvements to City facilities under a guaranteed energy savings contract.
Proposals were solicited to provide energy -related capital improvement services through
performance -based contracting. These services would include design, installation,
maintenance, and monitoring of energy and water saving upgrades at City facilities (see
list of City sites per attached Exhibit "C") with a guarantee that monetary savings will cover
the cost of the upgrades. The City received two responses which were evaluated by a 5
member selection committee consisting of city staff, councilmembers and outside
consultants. The panel gave Ameresco Inc. the highest overall rating.
Accordingly City staff and Ameresco negotiated an Energy Audit Agreement (Phase 1)
and staff seeks authorization from Council for the Mayor to execute it. Following execution
of the Energy Audit Agreement, Ameresco will conduct an Energy Audit of City facilities,
develop a project scope of energy and water saving measures, forecast savings, present
a financing solution, and offer a guarantee that cost savings will cover project costs. In
the event Ameresco is unable to identify enough savings to cover the project costs, they
will notify the City and cease activities under this contract at no charge to the City.
The total project size, anticipated savings, and scope will not be known until Phase 1 is
complete_ However the City required firms to include a preliminary scope of measures
and project estimates in their SOQ responses in order to gain insight into respondent's
technical approach to project development. Sample figures from Ameresco's response
are included below, for discussion purposes only.
• Total Project Size: $3-5 million*
Sample of conservation measures from Ameresco's SOQ response:
• Equipment replacement*
• interior lighting upgrades*
E, Outdoor and ballpark lighting replacement*
• Energy efficient heating system at the Municipal Pool*
• Solar PV systems (including a 106KW system and new roof for the ARTS Center)*
• Water conservation (including water efficient irrigation and landscaping for Kimball
Park)*
E Vehicle replacement with hybrid cars and trucks*
• Sports lighting upgrades (including Kimball Park Baseball Field)*
*Note that the above conservation measures and estimates were prepared during a short
period of time from the very limited data and facility access the City provided to SOQ
respondents and are not reliable indicators of what the actual Energy Audit will
recommend. The Energy Audit process will include much deeper and wider analysis of
City facilities to flush -out the technical and financial feasibility of the preliminary
conservation measures identified in the SOQ and many more.
Per the Energy Audit agreement, Ameresco will:
1. Conduct an energy and water audit of City facilities, including utility consumption
and bill analysis, facility assessments, and energy modeling.
2. Recommend a set of conservation measures, which may include improvements
to water, irrigation, landscaping, lighting, heating, ventilation, and air-conditioning
systems, as well as building envelope upgrades such as roof replacement,
renewable energy systems such as solar panels, and energy management
systems.
3. Quantify total energy, water, and cost savings expected from the project.
4. Present a plan to finance up to 100% of the upfront project costs (a lower portion
if the City chooses to contribute CIP funds) that maximizes use of rebates, grants,
and other incentives, utilizing low -interest and zero -interest financing where
available.
5. Offer a guarantee that that annual cost savings from the project will be sufficient
to cover all financing costs and payback any capital investment over the life of the
project (either 20 years or the expected useful -life of the measures, whichever is
less). If the savings in a given year are not sufficient to cover these costs,
Ameresco will be obligated to reimburse the City for the shortfall.
6. Deliver an Asset Sustainability Assessment, a survey of the City facilities to
determine the future operational costs of the buildings beyond energy efficiency,
which will assist the City in making future asset management decisions.
Upon completion of the Energy Audit, City staff will evaluate the recommended
improvement scope and work with Ameresco to make revisions. Staff will then bring the
proposed project before City Council to seek approval and authorization to execute an
Energy Services Agreement (ESA) under California Government Code Section 4217. The
ESA (Phase 2) will cover further engineering design, permitting, project management,
construction management, equipment installation, commissioning, and measurement and
verification of energy savings.
California Government Code Section 4217 facilitates public agencies' energy
conservation efforts by authorizing them to enter into an ESA to develop and conduct
energy efficiency and renewable energy projects at public facilities. Under 4217, the
governing body of a public agency shall make certain findings that the contract is in the
public's best interest and pays for itself out of the savings.
The Energy Audit will provide the City with the information it needs to evaluate the costs
and benefits of proceeding with wide ranging sustainability improvements for municipal
-2-
facilities in Phase 2 through an ESA. It is important to note that the City is not obligated
to enter into Phase 2. In the event that the City decides not to implement the project, or
chooses to proceed with a provider other than Ameresco, the City will be required to
reimburse Ameresco the total cost of the Energy Audit report of $70,639. If the City
decides to proceed with implementation and enter into an ESA with Ameresco, the Energy
Audit cost will be included in the project cost.
Staff recommends the City Council of the City of National City authorize the Mayor to
execute an Agreement with Ameresco, Inc., to conduct an Energy Audit of City facilities
(Phase I), develop a project scope of energy and water saving measures to fund capital
costs, forecast savings, and present a financing solution.
-3-
AGREEMENT
BY AND BETWEEN
THE CITY OF NATIONAL CITY
AND
AMERESCO, INC.
THIS AGREEMENT is entered into this 15th day of December, 2015, by and between
the CITY OF NATIONAL CITY, a municipal corporation (the "CITY"), and AMERESCO,
INC., a Delaware corporation ("Ameresco" or the "CONTRACTOR").
RECITALS
WHEREAS, the CITY desires to employ a CONTRACTOR to perform an Energy Audit
at the facilities listed in Exhibit "B".
WHEREAS, the CITY has determined that the CONTRACTOR is a provider of
comprehensive energy efficacy and renewable energy solutions and is qualified by experience
and ability to perform the services desired by the CITY, and the CONTRACTOR is willing to
perform such services.
Whereas, performance of the Energy Audit constitutes the first phase ("Phase 1") of an
energy conservation project (the "Protect").
Whereas, if Ameresco is directed by The CITY to proceed with the implementation of the
recommendations following the Energy Audit, the second phase of the Project ("Phase 2") will
consist of the design and installation of energy conservation measures described and
recommended in the Energy Audit Report (defined in Exhibit "A").
NOW, THEREFORE, THE PARTIES HERETO DO MUTUALLY AGREE AS
FOLLOWS:
1. ENGAGEMENT OF CONTRACTOR. The CITY agrees to engage the
CONTRACTOR, and the CONTRACTOR agrees to perform the services set forth here in
accordance with all terms and conditions contained herein.
The CONTRACTOR represents that all services shall be performed directly by
the CONTRACTOR or under direct supervision of the CONTRACTOR.
2. SCOPE OF SERVICES The CONTRACTOR will perform services as set forth
in the attached Exhibit "A".
The CONTRACTOR shall be responsible for all research and reviews related to
the work and shall not rely on personnel of the CITY for such services, except as authorized in
advance by the CITY. The CONTRACTOR shall appear at meetings specified in Exhibit "A" to
keep staff and City Council advised of the progress on the Project.
-4-
The CITY may unilaterally, or upon request from the CONTRACTOR, from time
to time reduce or increase the Scope of Services to be performed by the CONTRACTOR under
this Agreement. Upon doing so, the CITY and the CONTRACTOR agree to meet in good faith
and confer for the purpose of negotiating a corresponding reduction or increase in the
compensation associated with said change in services, not to exceed a factor of 25% from the
base amount. If the CITY adds additional facilities to the scope of the Energy Audit, the CITY
shall compensate Ameresco for the Special Energy Audit at a mutually agreed upon price, which
will be reflected as an increase to the Energy Audit Price.
3. PROJECT COORDINATION AND SUPERVISION. Kuna Muthusamy,
hereby is designated as the Project Coordinator for the CITY and will monitor the progress and
execution of this Agreement. The CONTRACTOR shall assign a single Project Director to
provide supervision and have overall responsibility for the progress and execution of this
Agreement for the CONTRACTOR. Nancy Rorabaugh, thereby is designated as the Project
Director for the CONTRACTOR.
4. COMPENSATION AND PAYMENT. The compensation for the
CONTRACTOR shall be based on the billing and payment schedule outlined in Exhibit "A" and
is agreeable between the parties.
Billings shall include labor classifications, respective rates, hours worked and also
materials, if any. The total cost for all work described in Exhibit "A" shall not exceed the
schedule given in Exhibit "A" (the Base amount) without prior written authorization from the
CITY. Monthly invoices will be processed for payment and remitted within thirty (30) days from
receipt of invoice, provided that work is accomplished consistent with Exhibit "A"", as
determined by the CITY, unless the Parties proceed to Phase 2, as described in section 1.3 of
Exhibit "A".
The CONTRACTOR shall maintain all books, documents, papers, employee time sheets,
accounting records, and other evidence pertaining to costs incurred, and shall make such
materials available at its office during normal business hours upon reasonable prior notice during
the term of this Agreement and for three (3) years from the date of final payment under this
Agreement, for inspection by the CITY, and for furnishing of copies to the CITY, if requested.
5. ACCEPTABILITY OF WORK. The City shall decide any and all questions
which may arise as to the quality or acceptability of the services performed and the manner of
performance, the acceptable completion of this Agreement, and the amount of compensation due.
In the event the CONTRACTOR and the City cannot agree to the quality or acceptability of the
work, the manner of performance and/or the compensation payable to the CONTRACTOR in
this Agreement, the City or the CONTRACTOR shall give to the other written notice. Within ten
(10) business days, the CONTRACTOR and the City shall each prepare a report which supports
their position and file the same with the other party. The City shall, with reasonable diligence,
determine the quality or acceptability of the work, the manner of performance and/or the
compensation payable to the CONTRACTOR.
6. EFFECTIVE DATE AND LENGTH OF AGREEMENT. This Agreement
will become effective on DECEMBER 15, 2015. The duration of this Agreement is for the
2 City's Standard Agreement —2014 revision
-5-
period of December 15, 2015 through December 15, 2017. With mutual agreement of the parties,
this Agreement may be extended for an additional year.
7. DISPOSITION AND OWNERSHIP OF DOCUMENTS. The Memoranda,
Reports, Maps, Drawings, Plans, Specifications, and other documents prepared by the
CONTRACTOR for this Project, whether paper or electronic, shall become the property of the
CITY for use with respect to this Project, and shall be turned over to the CITY upon completion
of the Project, or any phase thereof, as contemplated by this Agreement.
Contemporaneously with the transfer of documents, the CONTRACTOR hereby
assigns to the CITY, and CONTRACTOR thereby expressly waives and disclaims any copyright
in, and the right to reproduce, all written material, drawings, plans, specifications, or other work
prepared under this Agreement, except upon the CITY'S prior authorization regarding
reproduction, which authorization shall not be unreasonably withheld, and as may be necessary in
furtherance of the CONTRACTOR's implementation of Phase 2 hereof, if applicable. The
CONTRACTOR shall, upon request of the CITY, execute any further document(s) necessary to
further effectuate this waiver and disclaimer.
The CONTRACTOR agrees that the CITY may use, reuse, alter, reproduce,
modify, assign, transfer, or in any other way, medium, or method utilize the CONTRACTOR'S
written work product for the CITY'S purposes, and the CONTRACTOR expressly waives and
disclaims any residual rights granted to it by Civil Code Sections 980 through 989 relating to
intellectual property and artistic works.
Any modification or reuse by the CITY of documents, drawings, or specifications
prepared by the CONTRACTOR shall relieve the CONTRACTOR from liability under Section
14, but only with respect to the effect of the modification or reuse by the CITY, or for any
liability to the CITY should the documents be used by the CITY for some project other than what
was expressly agreed upon within the Scope of this project, unless otherwise mutually agreed.
8. INDEPENDENT CONTRACTOR. Both parties hereto in the performance of
this Agreement will be acting in an independent capacity and not as agents, employees, partners,
or joint venturers with one another. Neither the CONTRACTOR nor the CONTRACTOR'S
employees are employees of the CITY, and are not entitled to any of the rights, benefits, or
privileges of the CITY'S employees, including but not limited to retirement, medical, unemploy-
ment, or workers' compensation insurance.
This Agreement contemplates the personal services of the CONTRACTOR and
the CONTRACTOR'S employees, and it is recognized by the parties that a substantial
inducement to the CITY for entering into this Agreement was, and is, the professional reputation
and competence of the CONTRACTOR and its employees. Neither this Agreement nor any
interest herein may be assigned by the CONTRACTOR without the prior written consent of the
CITY. Nothing herein contained is intended to prevent the CONTRACTOR from employing or
hiring as many employees, or SUBCONTRACTORS, as the CONTRACTOR may deem
3 City's Standard Agreement —2014 revision
-6-
necessary for the proper and efficient performance of this Agreement. All agreements by
CONTRACTOR with its SUBCONTRACTOR(S) shall require the SUBCONTRACTOR(S) to
adhere to the applicable terms of this Agreement.
9. CONTROL. Neither the CITY nor its officers, agents, or employees shall have
any control over the conduct of the CONTRACTOR or any of the CONTRACTOR'S
employees, except as herein set forth, and the CONTRACTOR or the CONTRACTOR'S agents,
servants, or employees are not in any manner agents, servants, or employees of the CITY, it
being understood that the CONTRACTOR its agents, servants, and employees are as to the
CITY wholly independent CONTRACTOR, and that the CONTRACTOR'S obligations to the
CITY are solely such as are prescribed by this Agreement.
10. COMPLIANCE WITH APPLICABLE LAW. The CONTRACTOR, in the
performance of the services to be provided herein, shall comply with all applicable state and
federal statutes and regulations, and all applicable ordinances, rules, and regulations of the City
of National City, whether now in force or subsequently enacted. The CONTRACTOR and each
of its SUBCONTRACTOR(S), shall obtain and maintain a current City of National City business
license prior to and during performance of any work pursuant to this Agreement.
11. LICENSES, PERMITS, ETC. The CONTRACTOR represents and covenants
that it has all licenses, permits, qualifications, and approvals of whatever nature that are legally
required to practice its profession. The CONTRACTOR represents and covenants that the
CONTRACTOR shall, at its sole cost and expense, keep in effect at all times during the term of
this Agreement, any license, permit, or approval which is legally required for the
CONTRACTOR to practice its profession in the State of California.
12. STANDARD OF CARE.
A. The CONTRACTOR, in performing any services under this Agreement,
shall perform in a manner consistent with that level of care and skill ordinarily exercised by
members of the CONTRACTOR'S trade or profession currently practicing under similar
conditions and in similar locations. The CONTRACTOR shall take all special precautions
necessary to protect the CONTRACTOR'S employees and members of the public from risk of
harm arising out of the nature of the work and/or the conditions of the work site.
B. Unless disclosed in writing prior to the date of this Agreement, the
CONTRACTOR warrants to the CITY that it is not now, nor has it for the five (5) years
preceding, been debarred by a governmental agency or involved in debarment, arbitration or
litigation proceedings concerning the CONTRACTOR'S professional performance or the
furnishing of materials or services relating thereto.
C. The CONTRACTOR is responsible for identifying any unique products,
treatments, processes or materials whose availability is critical to the success of the project the
CONTRACTOR has been retained to perform, within the time requirements of the CITY, or,
when no time is specified, then within a commercially reasonable time. Accordingly, unless the
CONTRACTOR has notified the CITY otherwise, the CONTRACTOR warrants that all
products, materials, processes or treatments identified in the project documents prepared for the
CITY are reasonably commercially available. Any failure by the CONTRACTOR to use due
diligence under this sub -paragraph will render the CONTRACTOR liable to the CITY for any
4 City's Standard Agreement-2014 revision
-7-
increased costs that result from the CITY' S later inability to obtain the specified items or any
reasonable substitute within a price range that allows for project completion in the time frame
specified or, when not specified, then within a commercially reasonable time.
13. NON-DISCRIMINATION PROVISIONS. The CONTRACTOR shall not
discriminate against any employee or applicant for employment because of age, race, color,
ancestry, religion, sex, sexual orientation, marital status, national origin, physical handicap, or
medical condition. The CONTRACTOR will take positive action to insure that applicants are
employed without regard to their age, race, color, ancestry, religion, sex, sexual orientation,
marital status, national origin, physical handicap, or medical condition. Such action shall include
but not be limited to the following: employment, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff or termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. The CONTRACTOR agrees to post in
conspicuous places available to employees and applicants for employment any notices provided
by the CITY setting forth the provisions of this non-discrimination clause.
14. CONFIDENTIAL INFORMATION. The CITY may from time to time
communicate to the CONTRACTOR certain confidential information to enable the
CONTRACTOR to effectively perform the services to be provided herein. To the extent
permitted by law, the CONTRACTOR shall treat all such information as confidential and shall
not disclose any part thereof without the prior written consent of the CITY. The CONTRACTOR
shall limit the use and circulation of such information, even within its own organization, to the
extent necessary to perform the services to be provided herein. The foregoing obligation of this
Section 14, however, shall not apply to any part of the information that (i) has been disclosed in
publicly available sources of information; (ii) is, through no fault of the CONTRACTOR,
hereafter disclosed in publicly available sources of information; (iii) is already in the possession
of the CONTRACTOR without any obligation of confidentiality; or (iv) has been or is hereafter
rightfully disclosed to the CONTRACTOR by a third party, but only to the extent that the use or
disclosure thereof has been or is rightfully authorized by that third party.
The CONTRACTOR shall not disclose any reports, recommendations,
conclusions or other results of the services or the existence of the subject matter of this
Agreement without the prior written consent of the CITY. In its performance hereunder, the
CONTRACTOR shall comply with all legal obligations it may now or hereafter have respecting
the information or other property of any other person, firm or corporation.
The CONTRACTOR shall be liable to the CITY for any damages caused by
breach of this condition, pursuant to the provisions of Section 14.
If the CITY receives a request under the California public records taws for a copy
of any information or documentation which the CONTRACTOR has indicated, by written notice
to the City, the CONTRACTOR considers confidential and proprietary, the CITY shall notify the
CONTRACTOR so that the CONTRACTOR may, at the CONTRACTOR'S sole cost and
expense, seek relief from compliance with such request.
15. INDEMNIFICATION AND HOLD HARMLESS. The CONTRACTOR agrees to
defend, indemnify and hold harmless the City of National City, its officers and employees,
5 City's Standard Agreement —2014 revision
-8-
against and from any and all liability, loss, damages to property, injuries to, or death of any
person or persons, and all claims, demands, suites, actions, proceedings, reasonable attorneys'
fees, and defense costs, of any kind or nature, including workers' compensation claims, of or by
anyone whomsoever, resulting from or arising out of the CONTRACTOR'S performance or
other obligations under this Agreement; provided, however, that this indemnification and hold
harmless shall not include any claims or liability arising from the established sole negligence or
willful misconduct of the City, its agents, officers, or employees. The indemnity, defense, and
hold harmless obligations contained herein shall survive the termination of this Agreement for
any alleged or actual omission, act, or negligence under this Agreement that occurred during the
term of this Agreement.
16. WORKERS' COMPENSATION. The CONTRACTOR shall comply with all
of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of
California, the applicable provisions of Division 4 and 5 of the California Government Code and
all amendments thereto; and all similar State or federal acts or laws applicable; and shall
indemnify, and hold harmless the CITY and its officers, and employees from and against all
claims, demands, payments, suits, actions, proceedings, and judgments of every nature and
description, including reasonable attorney's fees and defense costs presented, brought or
recovered against the CITY or its officers, employees, or volunteers, for or on account of any
liability under any of said acts which may be incurred by reason of any work to be performed by
the CONTRACTOR under this Agreement.
17. INSURANCE. The CONTRACTOR, at its sole cost and expense, shall purchase
and maintain, and shall require its SUBCONTRACTOR(S), when applicable, to purchase and
maintain throughout the term of this Agreement, the following checked insurance policies:
A. If checked, Professional Liability Insurance (errors and
omissions) with minimum limits of $1,000,000 per occurrence.
B. Automobile Insurance covering all bodily injury and property damage
incurred during the performance of this Agreement, with a minimum coverage of $1,000,000
combined single limit per accident. Such automobile insurance shall include owned, non -owned,
and hired vehicles ("any auto"). The policy shall name the CITY and its officers, agents and
employees as additional insureds, and a separate additional insured endorsement shall be
provided.
C. Conunercial General Liability Insurance, with minimum limits of
$2,000,000 per occurrence and $4,000,000 aggregate, covering all bodily injury and property
damage arising out of its operations under this Agreement. The policy shall name the CITY and
its officers, agents and employees as additional insureds, and a separate additional insured
endorsement shall be provided. The general aggregate limit must apply solely to this"project" or
"location".
6 City's Standard Agreement —2014 revision
-9-
D. Workers' Compensation Insurance in an amount sufficient to meet
statutory requirements covering all of CONTRACTOR'S employees and employers' liability
insurance with limits of at least $1,000,000 per accident. In addition, the policy shall be endorsed
with a waiver of subrogation in favor of the City. Said endorsement shall be provided prior to
commencement of work under this Agreement.
If CONTRACTOR has no employees subject to the California Workers'
Compensation and Labor laws, CONTRACTOR shall execute a Declaration to that effect. Said
Declaration shall be provided to CONTRACTOR by CITY.
E. The aforesaid policies shall constitute primary insurance as to the CITY,
its officers, employees, and volunteers, so that any other policies held by the CITY shall not
contribute to any loss under said insurance. Said policies shall provide for thirty (30) days prior
written notice to the CITY of cancellation or material change.
F. If required insurance coverage is provided on a "claims made" rather than
"occurrence" form, the CONTRACTOR shall maintain such insurance coverage for three years
after expiration of the term (and any extensions) of this Agreement. In addition, the "retro" date
must be on or before the date of this Agreement.
G. Insurance shall be written with only California admitted companies that
hold a current policy holder's alphabetic and financial size category rating of not less than A
VIII according to the current Best's Key Rating Guide, or a company equal financial stability
that is approved by the CITY' S Risk Manager. In the event coverage is provided by non -
admitted "surplus lines" carriers, they must be included on the most recent California List of
Eligible Surplus Lines Insurers (LESLI list) and otherwise meet rating requirements.
11. This Agreement shall not take effect until certificate(s) or other sufficient
proof that these insurance provisions have been complied with, are filed with and approved by
the CITY'S Risk Manager. If the CONTRACTOR does not keep all of such insurance policies in
full force and effect at all times during the terms of this Agreement, the CITY may elect to treat
the failure to maintain the requisite insurance as a breach of this Agreement and terminate the
Agreement as provided herein.
I. All deductibles and self -insured retentions in excess of $10,000 must be
disclosed to and approved by the CITY.
18. LEGAL FEES. If any party brings a suit or action against the other party
arising from any breach of any of the covenants or agreements or any inaccuracies in any of the
representations and warranties on the part of the other party arising out of this Agreement, then
in that event, the prevailing party in such action or dispute, whether by final judgment or out -of -
court settlement, shall be entitled to have and recover of and from the other party all costs and
expenses of suit, including attorneys' fees.
For purposes of determining who is to be considered the prevailing party, it is
stipulated that attorney's fees incurred in the prosecution or defense of the action or suit shall not
be considered in determining the amount of the judgment or award. Attorney's fees to the
prevailing party if other than the CITY shall, in addition, be limited to the amount of attorney's
fees incurred by the CITY in its prosecution or defense of the action, irrespective of the actual
amount of attorney's fees incurred by the prevailing party.
7 City's Standard Agreement-2014 revision
-1 0 -
19. MEDIATION/ARBITRATION. If a dispute arises out of or relates to this
Agreement, or the breach thereof, the parties agree first to try, in good faith, to settle the dispute
by mediation in San Diego, California, in accordance with the Commercial Mediation Rules of
the American Arbitration Association (the "AAA") before resorting to arbitration. The costs of
mediation shall be borne equally by the parties. If any controversy or claim arising out of, or
relating to, this Agreement, or breach thereof, is not resolved by mediation then either or any
party hereto may resort to any and all available judicial proceedings in a court of competent
jurisdiction.
20. TERMINATION.
A. This Agreement may be terminated with or without cause by the CITY.
Termination without cause shall be effective only upon 60-day's written notice to the
CONTRACTOR. During said 60-day period the CONTRACTOR shall perform all services in
accordance with this Agreement.
B. This Agreement may also be terminated immediately by the CITY for
cause in the event of a material breach of this Agreement, misrepresentation by the
CONTRACTOR in connection with the formation of this Agreement or the performance of
services, or the failure to perform services in accordance with this Agreement. Notwithstanding
the foregoing, the CITY shall not have the right to terminate this Agreement for cause as
provided in this Section 20B unless the CITY has first given the CONTRACTOR prior notice of
any such breach and a period of ten (10) business days, in the case of a monetary breach, and
thirty (30) calendar days (plus such additional reasonable time as may be required if any such
breach cannot reasonably be cured within such 30-day period) in the case of a non -monetary
breach.
C. This Agreement may also be terminated immediately by the
CONTRACTOR for cause in the event of a material breach of this Agreement, misrepresentation
by the CITY in connection with the formation of this Agreement or the performance of the
CITY's obligations hereunder, or the failure of the CITY to perform its obligations in
accordance with this Agreement. Notwithstanding the foregoing, the CONTRACTOR shall not
have the right to terminate this Agreement for cause as provided in this Section 20C unless the
CONTRACTOR has first given the CITY prior notice of any such breach and a period of ten
(10) business days, in the case of a monetary breach, and thirty (30) calendar days (plus such
additional reasonable time as may be required if any such breach cannot reasonably be cured
within such 30-day period) in the case of a non -monetary breach.
D. Termination with or without cause shall be effected by delivery of written
Notice of Termination to the defaulting party by the non -defaulting party as provided for herein.
E. In the event of termination, all finished or unfinished Memoranda Reports,
Maps, Drawings, Plans, Specifications and other documents prepared by the CONTRACTOR,
whether paper or electronic, shall immediately become the property of and be delivered to the
CITY, and the CONTRACTOR shall be entitled to receive just and equitable compensation for
any work satisfactorily completed on such documents and other materials up to the effective date
of the Notice of Termination, not to exceed the amounts payable hereunder, and less any
damages caused the CITY by the CONTRACTOR'S breach, if any. Thereafter, ownership of
said written material shall vest in the CITY all rights set forth in Section 7.
8 City's Standard Agreement- 2014 revision
-11-
F. The CITY further reserves the right to immediately terminate this
Agreement upon: (1) the filing of a petition in bankruptcy affecting the CONTRACTOR; (2) a
reorganization of the CONTRACTOR for the benefit of creditors; or (3) a business
reorganization or change in business status of the CONTRACTOR, or an assignment of this
Agreement as a result of a sale of the assets of the CONTRACTOR which assignment has not
been approved by the City in accordance with Section 8 hereof.
21. NOTICES. All notices or other communications required or permitted hereunder
shall be in writing, and shall be sent by overnight mail (Federal Express or the like); or sent by
registered or certified mail, postage prepaid, return receipt requested; or sent by ordinary mail,
postage prepaid; or delivered or sent by telecopy, facsimile or fax; and shall be deemed
received upon the earlier of (i) if sent by overnight mail, the business day following its deposit in
such overnight mail facility, (ii) if mailed by registered, certified or ordinary mail, five (5) days
(ten (10) days if the address is outside the State of California) after the date of deposit in a post
office, mailbox, mail chute, or other like facility regularly maintained by the United States Postal
Service, or (iii) if given by telecopy, facsimile or fax, when sent. Any notice, request, demand,
direction or other communication delivered or sent as specified above shall be directed to the
following persons:
To CITY: Kuna Muthusamy, P.E.
Assistant Director of Engineering and Public Works
Engineering and Public Works Department
City of National City
1243 National City Boulevard
National City, CA 91950-4301
To CONTRACTOR:
Nancy Rorabaugh
Business Development
Ameresco, INC.
60 Rio Salado Parkway, Suite 1001
Tempe, AZ 85281
With a copy to:
General Counsel
Ameresco, Inc.
111 Speen Street, Suite 410
Framingham, MA 01701
Notice of change of address shall be given by written notice in the manner
specified in this Section. Rejection or other refusal to accept or the inability to deliver because of
changed address of which no notice was given shall be deemed to constitute receipt of the notice,
demand, request or communication sent. Any notice, request, demand, direction or other
communication sent by telecopy, facsimile or fax must be confirmed within forty-eight (48)
hours by letter mailed or delivered as specified in this Section.
9 City's Standard Agreement-2014 revision
_12_
22. CONFLICT OF INTEREST AND POLITICAL REFORM ACT
OBLIGATIONS. The CONTRACTOR agrees not to specify any product, treatment, process or
material for the project in which the CONTRACTOR has a material financial interest, either
direct or indirect, without first notifying the CITY of that fact. The CONTRACTOR shall at all
times comply with the terms of the Political Reform Act and the National City Conflict of
Interest Code. The CONTRACTOR shall immediately disqualify itself and shall not use its
official position to influence in any way any matter coming before the CITY in which the
CONTRACTOR has a financial interest as defined in Government Code Section 87103. The
CONTRACTOR represents that it has no knowledge of any financial interests that would require
it to disqualify itself from any matter on which it might perform services for the CITY.
If checked, the CONTRACTOR shall comply with all of the reporting
requirements of the Political Reform Act and the National City Conflict of Interest Code.
Specifically, the CONTRACTOR shall file a Statement of Economic Interests with the City
Clerk of the City of National City in a timely manner on forms which the CONTRACTOR shall
obtain from the City Clerk.
The CONTRACTOR shall be strictly liable to the CITY for all damages, costs or
expenses the CITY may suffer by virtue of any violation of this Paragraph 22 by the
CONTRACTOR.
23. PREVAILING WAGES. State prevailing wage rates may apply to work
performed under this Agreement. State prevailing wages rates apply to all public works contracts
as set forth in California Labor Code, including but not limited to, Sections 1720,1720.2, 1720.3,
1720.4, and 1771. CONTRACTOR is solely responsible to determine if State prevailing wage
rates apply and, if applicable, pay such rates in accordance with all laws, ordinances, rules, and
regulations.
24. MISCELLANEOUS PROVISIONS.
A. Computation of Time Periods. If any date or time period provided for in
this Agreement is or ends on a Saturday, Sunday or federal, state or legal holiday, then such date
shall automatically be extended until 5:00 p.m. Pacific Time of the next day which is not a
Saturday, Sunday or federal, state, or legal holiday.
B. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, but all of which, together, shall constitute but one and
the same instrument.
C. Captions. Any captions to, or headings of, the sections or subsections of
this Agreement are solely for the convenience of the parties hereto, are not a part of this
Agreement, and shall not be used for the interpretation or determination of the validity of this
Agreement or any provision hereof.
D. No Obligations to Third Parties. Except as otherwise expressly provided
herein, the execution and delivery of this Agreement shall not be deemed to confer any rights
upon, or obligate any of the parties hereto, to any person or entity other than the parties hereto.
E. Exhibits and Schedules. The Exhibits and Schedules attached hereto are
hereby incorporated herein by this reference for all purposes.
10
City's Standard Agreement -2014 revision
-13-
F. Amendment to this Agreement. The terms of this Agreement may not be
modified or amended except by an instrument in writing executed by each of the parties hereto.
G. Waiver. The waiver or failure to enforce any provision of this Agreement
shall not operate as a waiver of any future breach of any such provision or any other provision
hereof.
H. Applicable Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of California.
I. Audit. If this Agreement exceeds ten -thousand dollars ($10,000), the
parties shall be subject to the examination and audit of the State Auditor for a period of three (3)
years after final payment under the Agreement, per Government Code Section 8546.7.
J. Entire Agreement. This Agreement supersedes any prior agreements,
negotiations and communications, oral or written, and contains the entire agreement between the
parties as to the subject matter hereof. No subsequent agreement, representation, or promise
made by either party hereto, or by or to an employee, officer, agent or representative of any party
hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.
K. Successors and Assigns. This Agreement shall be binding upon and shall
inure to the benefit of the successors and assigns of the parties hereto.
L. Construction. The parties acknowledge and agree that (i) each party is of
equal bargaining strength, (ii) each party has actively participated in the drafting, preparation and
negotiation of this Agreement, (iii) each such party has consulted with or has had the opportunity
to consult with its own, independent counsel and such other professional advisors as such party
has deemed appropriate, relative to any and all matters contemplated under this Agreement, (iv)
each party and such party's counsel and advisors have reviewed this Agreement, (v) each party
has agreed to enter into this Agreement following such review and the rendering of such advice,
and (vi) any rule or construction to the effect that ambiguities are to be resolved against the
drafting party shall not apply in the interpretation of this Agreement, or any portions hereof, or
any amendments hereto.
1N WITNESS WHEREOF, the parties hereto have executed this Agreement on the date and year
first above written.
CITY OF NATIONAL CITY AMERESCO, INC.
By:
Ron Morrison, Mayor
APPROVED AS TO FORM:
By:
Dom Palma, Director of Project Accounting
11
City's Standard Agreement 2014 revision
_14_
Claudia Gacitua Silva
City Attorney
12
City's Standard Agreement —2014 revision
-15-
EXHIBIT A — Scope of Work
ARTICLE 1
PHASES OF PROJECT
1.1 Phase I — Enerav Audit.
After execution of this Agreement, Ameresco will conduct an Energy Audit at the Premises. As
used in this Agreement, "Energy Audit" means a process including (i) the collection of data
related to the CITY' s use and operation of the Premises, observations of the Premises,
determination of base year energy consumption, financial analysis of the cost and benefit of
energy and water conservation measures and renewable energy projects that are recommended to
be installed at the Premises, and (ii) the preparation of a detailed Energy Audit Report, which
analyzes current energy consumption at the Premises, recommendations for energy efficient
equipment upgrades, energy conservation measures and a detailed analysis of implementation
costs, anticipated energy savings resulting from such improvements and assumptions upon which
the projected savings are based. The Energy Audit Report is intended to provide the CITY with
the information necessary for the evaluation of the costs and benefits of proceeding with the
second phase of the Project, and (iii) development of a Guaranteed Savings Solution which
includes a Project scope and plan to fmance 100% of upfront costs to the City (or a lower
percentage if the City chooses to contribute funds towards upfront costs) and for which
CONTRACTOR guarantees that annual savings will be in excess of all financing payments over
a period not to exceed the lesser of (i) 20 years or (ii) a period of time equal to the average of the
useful lives of the measures, and be sufficient to pay back any upfront costs contributed by the
City, over the same period, not to exceed the lesser of (i) 20 years or (ii) a period of time equal to
the average of the useful lives of the measures, provided Contractor executes construction.
(a) Should Ameresco determine, in its sole discretion, at any time before the
completion of the Energy Audit Report that the anticipated energy and water conservation savings cannot
be achieved at the Premises in compliance with the financial criteria mandated herein or by federal or
state laws pertaining to energy conservation programs, Ameresco will provide written notice to the CITY
and cease all further Energy Audit activities, in which case the CITY will not be charged for any Energy
Audit activities performed by Ameresco.
(b) The Energy Audit will be an investment grade audit, which at minimum
conforms to ASHRAE level II standards, and will include the following components:
• Collect and record electric, gas, and water usage and cost data to determine utility
baseline per site.
• Survey the existing mechanical, electrical, and water systems for design, installed
condition, maintenance practices, and operating methods.
• Analyze the energy and water using systems of the building, resulting from on -site
observation, measurements, and engineering calculations.
• Review existing Operations and Maintenance problems and logs.
-16-
• Measure lighting and HVAC operating parameters on a spot basis or logged over a 2-3
week time period.
• List all possible modifications to equipment and operations that will save energy and
water. Select those that might be considered practical by the City. Perform preliminary cost and
savings estimates on practical measures.
• Develop energy and water savings based on baseline and time of use rates.
• Develop preliminary Measurement and Verification procedures for each energy and
water conservation measure.
• Develop implementation costs based on the selected measures scope of work and selected
measurement and verification methodology.
• Create financial grade operational cost and savings bundles to achieve different levels of
whole building energy and water use reduction and financial performance.
• Incorporate measures into final energy audit including the following sections:
- Executive Summary including list of recommended conservation measures,
installation costs, projected savings, estimated rebates, and simple payback of the project.
site.
- Measures considered but not recommended for the project.
- Utility Baseline Analysis including energy and water consumption and cost per
- Energy and Water Rates including energy and water rate schedules.
- Facility Descriptions including Building Construction, HVAC systems, Lighting
Systems, Plug Loads, Domestic Water Systems, and Landscaping Water Systems.
- Energy/Water Conservation Measure Descriptions including existing conditions,
proposed solution, detailed scope of work, clarifications, service life, warranty, energy savings
calculations.
- Asset Sustainability Analysis including life cycle costing of the buildings.
- Measurement and Verification Plan
Conclusion
(c) The Energy Audit will also include an Asset Sustainability Assessment.
This assessment includes the analytical survey of the City facilities using a database model to
determine the future operational costs of the buildings beyond just energy efficiency. The asset
sustainability assessment reviews the conditions of many different components of the building to
determine the overall life cycle costs for operating and maintaining the building infrastructure.
-17-
Ameresco utilizes a custom developed assessment tool that draws from a large database of
infrastructure life expectancy and replacement costs to help develop a site specific analysis that
will provide the City with information of how much the buildings will cost the City over a 20-30
year time period.
The expected duration for this assessment is 50 working days based on 15 days for site
surveying, 10 days for data input and analysis, 5 days for report preparation, 5 days for internal
review and editing, 10 days for customer review and comment, and 5 days for report finalization.
(d) Findings from the Energy Audit and Guaranteed Savings Solution will be
delivered by CONTRACTOR to CITY in writing as well as via in -person presentations.
CONTRACTOR shall present findings, at minimum, at the following milestones;
(i) Completion of the utility analysis;
(ii) Completion of the site surveys;
(iii) Completion of the detailed energy project and funding sources
identification;
(iv) Review of energy project scenarios with alternative Guaranteed
Savings Solutions based on the City's feedback (scenarios shall include without limitation
several different energy conservation programs based on energy measures included and payback
of those measures); Review Measurement and Verification (M&V) Methodology for Energy
Projects
(v) Final project identification and Guaranteed Saving Solution,
including but not limited to conservation measures, financial analysis, funding sources, M&V
plan, and implementation plan.
Presentations shall give CITY the opportunity to provide feedback and direction at various stages
of completion. As part of the CITY's decision -making process, the CITY may provide direction
to CONTRACTOR that requires CONTRACTOR to revise the proposed construction scope or
financing plan or conduct further analysis. Notwithstanding the provisions of section 1.2 (b) of
this Exhibit, such direction and revisions shall not increase the Energy Audit Price or result in
additional charges by CONTRACTOR to CITY. The complete Energy Audit, Asset
Sustainability Assessment and Guaranteed Savings Solution shall be delivered to CITY within
The expected duration of the energy audit, sustainability assessment, and guaranteed savings
solution is 140 working days based on 50 days for sustainability assessment, 20 days for baseline
and rate analysis, 15 days for site surveying, 5 days for facility description write ups, 15 days for
preliminary conservation measure analysis, 30 days for financial grade cost and savings analysis,
5 days for M&V preparation, 15 days of data logging, 10 days of draft energy audit preparation,
5 days for City review of baseline and preliminary analysis, 5 days for City review of M&V
plan, 5 days for City review of final costs and savings, 5 days for City review of draft energy
audit, 10 days for final energy audit and guaranteed solution.
(e) Unless otherwise specified in this Agreement, services performed by
CONTRACTOR shall be carried out in accordance with Exhibits D and E.
-18-
1.2 Energy Audit Price.
(a) The CITY shall compensate Ameresco for the Energy Audit by paying Ameresco a fee of
$70,639.17 which is based on a per square foot price of $ 0.21 / Sqft. ("Energy Audit Price").
(b) in the event the CITY instructs Ameresco to prepare a detailed analysis of water and/or waste
water treatment facilities, co -generation projects, street lighting beyond the scope provided herein, park
and sports lighting beyond the scope provided herein, manufacturing or production analyses, or
renewable energy projects beyond the scope provided herein, which require pre -design activities in order
to determine the implementation costs for such improvements ("Special Energy Audit"), or if the CITY
adds additional facilities to the scope of the Energy Audit ("Additional Work"), the CITY shall compensate
Ameresco for the Special Energy Audit or Additional Work at a mutually agreed upon price, which will be
reflected as an increase to the Energy Audit Price.
1.3 Phase 2 — Implementation.
(a) if the Ci i f decides to proceed with the design and implementation of the energy conservation
measures described in the Energy Audit Report or identified as part of the Special Energy Audit, the
Parties shall execute a mutually -acceptable energy services agreement (the "ESA"). If the Parties enter
into an ESA which includes the scope of work in the Energy Audit Report, Ameresco will not bill the CITY
for the Energy Audit Price, but will include such Energy Audit Price in the cost of the work to be performed
under the ESA.
(b) In the event the CITY decides not to proceed with the implementation of the energy
conservation measures or the CITY has not executed an ESA with Ameresco within a reasonable time
period after receiving the Energy Audit Report and a Guaranteed Savings Solution, the CITY shall pay
Ameresco the Energy Audit Price within. thirty (30) calendar days from receipt of a proper invoice. Late
payments shall accrue interest daily at a rate of twelve percent (12%) per annum, or the maximum
interest rate permitted by law, whichever is less, for each calendar day following the due date until
payment is made.
(c) The CITY acknowledges that the price for the Project is based on the market cost, as of the
date of the Energy Audit Report, for steel, copper and similar raw materials incorporated into equipment
and material used for the Project. Price increases for such equipment and materials after the Audit Report
was issued may either result in a project price increase or a corresponding decrease in the project size.
1.4 Other Terms and Conditions.
(a) Ameresco's receipt of an executed copy of this Agreement shall serve as notification to
Ameresco to proceed with the Energy Audit. Ameresco will thereafter promptly initiate the Energy Audit.
(b) Ameresco does not assume responsibility to the CITY for the anticipated energy savings
projected in the Energy Audit Report if the CITY selects another firm for the design and implementation of
the energy conservation measures or chooses to implement the energy conservation with its own forces.
(c) The CITY hereby agrees to provide timely and complete access to all necessary property
and energy consumption cost records for the three years preceding the commencement of Ameresco's
services.
-19-
EXHIBIT B
Facilities List
Bldg.
Building Name
Civic Center
Building Area
(sqft)
56,934
Building Address
1243 National City
Blvd.
1
2
Martin Luther King Jr Community Center
18,900
140 E 12th St
3
Kimball Senior Center
4,976
1221 D Ave.
4
Kimball Recreation Center
5,137
148 E 12th St
5
El Toyon Recreation Center/Park
5,454
2005 E 4th St.
6
Camacho Gym, Recreation Center
17,968
1800 E 22nd St
7
Casa de Salud
7,054
1408 Harding Ave.
8
Public Library
49,000
1401 National City
Blvd.
9
Police Station
46,288
1200 National City
Blvd.
10
Fire Station 34
18,500
343 E 16th St.
11
Fire Station 31
5,667
2333 Euclid Ave.
12
Kimball Park Arts Center
13,000
200 E 12th ST
13
Kimball Park/Community Center/Ball park
42,000
140 E 12th St.
14
Boys and Girls Club
3,504
1430 D Ave.
15
Las Palmas Park/Rec Center/Ball Park
21,700
2101 Palm Ave.
16
Las Palmas Pool
14,095
1800 E 22nd St
17
Santa Fe Depot
6,200
860 W. 24th St.
Total sq. ft.
336,377
-20-
EXHIBIT C
List of Energy Conservation Measures to be developed:
The energy audit will include energy and water conservation project development. The Priority Energy
Conservation measures are listed below and include items that have been identified by the City as high
priority replacements and upgrades. The City -identified funding associated with the Priority measures as
well as any state and/or federal grants, and utility rebates may be utilized to pay for the improvements.
The energy and water conservation measures are also listed below and will be developed in parallel with
the Priority measures.
Priority Energy Conservation Measures
1. Casa de Salud: Heat Pump and A/C unit
2. Civic Center: Chiller Retrofits, Air System Retrofit, Lighting Upgrades
3. Fire Station 31: A/C Unit
4. Police Department: Backup Generator & Electrical
5. El Toyon Park: Park Lighting and Water Conservation
6. Kimball Park: Park Lighting and Water Conservation
7. Las Palmas Park: Park Lighting Upgrades and Irrigation Controls
8. Kimball Park Art Center: Roof Replacement
Energy and Water Conservation Measures
1. Building Sustainability Assessment
2. Renewable power at all City facilities, including but not limited to solar photovoitaics at MLK
Community Center for Art Center, MLK Community Center, City Library, Police Station
3. Solar thermal systems, including review and recommendations for the current system at Las
Palmas pool
4. Microgrid for Kimball Park area
5. Demand Reduction and peak Toad shaving
6. Energy Storage
7. Sports Lighting, park and parking lot lighting
8. Interior and Exterior Lighting Upgrades
9. HVAC Equipment Replacements
10. HVAC Controls Upgrades
11. Fleet Replacement with Hybrid, Electric or CNG
12. Bulk Fuel Purchasing
13. Electric Vehicle Charging Stations
14. Domestic Water Conservation
15. Landscape Water Conservation,
16. Storm and Rain Water Capture, Re -use and Recycling
17. PC Power Management
18. Re -commissioning
19. Energy Education
20. Other Measures Identified on Site
-21-
EXHIBIT D
Funding Sources
During the IGA process, Ameresco will explore all available funding sources. These sources include
utility incentives, state and federal grants, as well as low -interest and zero -interest loans. An example of
some of the funding sources that will be explored are listed below.
1. Federal and/or State Grants
During the IGA, Ameresco's dedicated structured finance division will work diligently to identify any
potential federal and/or state grants that might be available for the energy conservation measures
identified for the City of National City energy conservation project. Ameresco has a strong history of
identifying and securing tens of millions of dollars in grants for its customers.
2. San Diego Gas and Electric (SDG&E)
SDG&E provides financial incentives for the completion of energy reduction programs. These incentive
programs vary from year to year and currently include:
A. SDG&E Energy Efficiency Business Rebates
1) Lighting Retrofits - SDG&E currently provides rebates for installing new LED fixtures
ranging from $5/fixture up to $125/fixture. The rebate is calculated based on the
number of fixtures and is determined using a prescriptive approach.
2) PC Power Management — SDG&E currently provides rebates for installing computer
power management software at $15/computer.
3) Vending Machine Controls —SDG&E currently provides rebates for installing vending
machine controls at $100/ vending machine.
4) Variable Frequency Drives —SDG&E currently provides rebates for installing variable
frequency drives at $110/hp.
5) Window Film — SDG&E currently provides rebates for installing reflective window
film at $1.35/square foot.
6) Space Heating Boiler—SDG&E currently provides rebates for installing space heating
boilers at $0.25/MBtuh.
7) Instantaneous Water Heaters —SDG&E currently provides rebates for installing
instantaneous water heaters at $0.50 - $2.00/MBtuh depending on the capacity of
the water heater.
8) Pipe Insulation —SDG&E currently provides rebates for installing steam or hot water
piping insulation at $3.00 - $4.00 per linear foot.
B. SDG&E Energy Efficiency Business incentives
1) Targeted Lighting — For more advanced lighting retrofits, SDG&E provides $0.08/kWh
+ $100/kW for LED retrofits / replacements and multi -level lighting controls, such as
incorporating dimming, occupancy, and scheduling with one control system.
-22-
2) Basic Non -Lighting — For HVAC equipment controls such as programmable
thermostats and energy management systems, SDG&E provides $0.08 / kWh and
$100 / kW for the usage and demand savings achieved.
C. On -Bill Financing
On -Bill Financing (OBF) is an energy efficiency financing program administered by San Diego Gas &
Electric (SDG&E®) that offers zero -percent, unsecured financing to eligible customers for the installation
of qualifying energy -efficient business improvements. Eligible equipment for OBF includes measures
that qualify for incentives and/or rebates in SDG&E's energy efficiency programs. OBF only finances new
energy efficiency equipment that qualifies for a rebate or incentive in an SDG&F program or an SDG&E-
funded 3rd-party program.
The loan maximum per premises/location will be determined by the number of meters at the
premises/location. Each government -funded customer meter may qualify for up to $250,000 per meter
and a maximum loan term of 120 months.
3. Guaranteed Energy Savings
As an integral part of its contract with the City of National City, Ameresco will guarantee the energy
savings over the full term of the contract. Ameresco's guarantee provides assurance to the City that the
cash inflows from the project, will exceed the City's cash requirements for the project, the lease
payments if any, and, if applicable and/or desired by the City, any on -going payments for the provision
of O&M services.
Ameresco's projects achieve 103 percent of all performance guarantees on a portfolio wide basis. Any
energy savings that exceed the guarantee will be retained by the City of National City. The savings will
not be allocated to shortfalls in other years. Savings that begin to accumulate throughout the
construction period will be retained by the City as well and not counted towards future savings
guarantees.
4. Financing
Ameresco has sourced and raised over $1.4 billion in project financing from lending sources over the past
14 years, including John Hancock, Bayerische Landesbank, Bank of America, Capital One, Chase Bank,
Crews and Associates and several other financial institutions. We have secured or assisted customers in
securing financing for various types of utility efficiency projects ranging in size from less than $1 million to
over $180 million. Pricing varies by size, term, credit quality and structure —from 10 to over 20 years with
tax-exempt interest rates from 0 to 5 percent.
Most importantly, Ameresco will work with the City to structure a business plan that aligns with its unique
goals and needs. Financing vehicles typically employed by our clients include:
• Tax-exempt lease financing
• Capital lease financing
• Installment payment financing
-23-
EXHIBIT E
The information listed below was taken from Ameresco's SOQ Sections 6 through 15.
-24-
6. Technical Approach
a. Identify/Design Measures to Meet the RFP Objectives, Work Economically, Maximize
Energy Water, Emissions, & Costs Saved
Ameresco identified the following measures as potential improvement projects to reduce the City's operational expenses and
greenhouse gas footprint. They were developed from the site walk visit, Energy Roadmap documentation, and from Ameresco's
previous municipal project experience. The measures range from typical energy retrofits to vehicle fleet upgrades.
Table 6.0
1
Interior Lighting Retrofits
X
r.
X
-
y
.,
2
Sports Lighting Upgrades
X
3
HVAC Occupancy Sensors
X
4
Landscape Water Reduction
X
5
Bulk Fuel Purchasing
X
6
Renewable Power Generation
X
7
Peak Demand Reduction
X
8
Vehicle Replacement Program
X
9
Irrigation Controls
X
10
Asset Sustainability
X
11
PC Power Management
X
Many of the buildings were not evaluated for further energy upgrades, as it is our understanding that all of the buildings except the
Public Library and Fire Station 34 were recently upgraded through an energy performance contract that was completed within the
last two years. Even so, one of the measures listed above, Asset Sustainability, is recommended as a tool that will provide the City a
snapshot of the life cycle and expected performance of all City buildings.
A brief description of each measure is included in the following pages of the document.
ECM1 Interior Lighting Retrofit: This measure includes replacing the existing standard efficiency T8 lighting systems with new high
efficiency 25 watt T8 lamps and energy efficient ballasts. Some of the more important retrofits that should be highlighted are:
• Replacing the 7 lamp compact fluorescent fixtures located in the Fire Station 34
equipment bay with new LED fixtures
• Installing new library book stack style lighting on the 8 book stacks that do not
currently have stack lighting
• Replacing the library window mounted metal halide fixtures with new LED
technology
• Replacing the existing 2 lamp 2'x2' biaxial fixtures with LED fixtures
= Replacing the existing 175 and 400 watt metal halide exterior fixtures with LED
technology
• installing daylighting and occupancy sensors to comply with Title 24 regulations
and reduce energy consumption
PubllcLibra° Book.sbefLighting Sjstem
This measure includes energy rebates from SDG&E's energy efficiency business rebates program. 25
watt T8 lamps receive $1.50/lamp, LED integral lamps receive $5.00/1amp, interior LED fixtures
receive $70.00 - $125.00 / fixture depending on wattage.
Spats Liming Tecvnolog Evolution
-25-
Rebates and/or incentives for occupancy sensors and dimming controls that are required by the new 2013 Title 24 Energy Code are
no longer allowable.
ECM2 Sports Lighting Upgrades: This measure replaces the Tight fixtures and poles located at the Kimball Park baseball field with a
new energy efficient Musco Lighting System, including 6 new light poles with 4-6 fixtures per pole.
The lights come with a 25 year warranty including all parts and labor warranty from the bottom of
the base to the top of the pole, Control -Link Lighting Controls System, guaranteed light level for 25
years, guaranteed kilowatt power demand for 25 years, group re -lamps at the end of the lamps
rated life, 5,000 hours, and individual lamp outage replacement. The new system will require only
half the number of light fixtures due to the improved reflector technology.
ECM3 HVAC Occupancy Sensors: During the walkthrough of the Fire Station 34, Ameresco observed
rooms that were empty but still had the HVAC systems in operation. Leaving the systems running
wastes energy when they could be turned off and on based on occupancy. This measure will replace
the existing programmable thermostats in Fire Station 34 with new occupancy sensor compatible
thermostats so that the HVAC equipment will shut off when the rooms are unoccupied. The signal
for occupancy will come from the new lighting sensors installed as part of ECM 1. The energy savings for this measure result from
reducing the heating and cooling energy use during unoccupied periods.
Txrf ReplacemerrtArea
Kimball Park_ Baseball Field
ECM4 Landscape Water Reduction: This measure replaces the turf behind and next to
the Kimball Park Recreation Center, approximately 50,000 square feet, with native
landscaping, that is drought tolerant and requires little to no water to grow. The new
landscaping will be installed with a drip type watering system and include time clock
controllers to manage the watering schedules.
With the ongoing drought, many water agencies are offering incentives to replace turf.
Included in the project is a $2/sqft. rebate from the SoCal Water$mart Program to
help reduce the overall cost impact of the replacement.
Another option to consider for the turf replacement project would be to replace the
turf behind the Recreation Center with an ornamental type landscape / hardscape
enclosure that could be dedicated to different groups or individuals, such as veterans, citizens of the year, youth organizations, etc.
and include city information kiosks, covered walkways, shaded meeting areas, and memorials. This type of project would require
community and city staff input to make sure that the new area serves the needs of the city and the community.
ECM5 Bulk Fuel Purchasing: This measure includes the purchase of a new diesel and gasoline fuel station to allow the City to
purchase fuel at bulk costs instead of retail. The City uses about 9,500 gallons of fuel per month at a total annual cost of $400,000.
Purchasing fuel directly could save the City $0.20 - $0.25 cents per gallon, depending on quantity and distance from sources.
Included in the project is the installation of a 10,000 gallon above ground split tank, fuel pumps, and electronic card reader.
ECM6 Renewable Power Generation: This measure proposes to install a new solar power carport at the Public Library parking lot.
The solar power system capacity proposed is a 106 kW DC solar power array with a 32 degree tilt facing due south. The total
generation for the year is estimated to be 160,000 kWh, which is 20% of the Public Library energy consumption.
Included in the project are all interconnection equipment needed to connect to the
SDG&E utility grid. Also included is an annual 5 year incentive of $0.114/kWh from
the California Solar Initiative.
ECM7 Peak Demand Reduction: This measure involves the installation of a 60 kW
battery storage system at the Public Library to reduce the demand charges for the
on peak periods. The SDG&E ALTOU rate is heavily weighted to the demand charges
and managing those charges is one method
to reduce the costs of energy.
The battery storage system includes an
automatic controller that will monitor the
demand of the building and continually adjust the demand setpoint to maintain the lowest
monthly total and keep the battery system charged throughout the on peak demand period.
Example Solar Carport Installed ID Arrreresco
Batter) Storage S)stem
-26-
The space required for the battery system is a 2' x 4' size space and can be located indoors or outdoors.
Depending on the selection of measures, this battery storage system could be integrated with the solar power generation system to
create additional cost reductions as part of a local smart grid. This measure includes a $1.62/watt rebate to help reduce the cost of
the installation.
ECM8 Vehicle Replacement Program: This measure includes replacement of six
City cars and eight City trucks with hybrid electric vehicles. The City cars will be
replaced with new Toyota Prius vehicles that have more than double the city
mileage than the current vehicles. The new Toyota Prius models are hybrid
electric vehicles that will reduce the fuel consumption of the City fleet. Included in
the project financials are a $1,500/vehicle Clean Vehicle Rebate Project
administered by the Center for Sustainable Energy for the Califomia Air Resources
Board.
Also included in this project is the replacement of eight City trucks with hybrid electric vehicles. The proposed replacement is an
extended range electric truck by VIA Motors. The truck runs on battery power up to 40 miles and then switches to gasoline for an
extended range of 400 miles.
Table 6.1 Vehicle Replacement Program — C
1 car
\i,iIt
\lrlcl
..........v_..
lnnuul
Mileage
16,000
rw. ,PVC
I ‘ititin_
mpg -city
22
PtlroScd
mpg -city
51
2001
Toyota
Camry
2011
Nissan
Altima
18,000
20
51
2001
Ford
Taurus
13,600
19
51
2001
Saturn
L
10,000
20
51
1995
Pontiac
G. Prix
7,500
19
51
2001
Saturn
L
10,000
20
51
Two valuable features of the truck are two power outlets, 120 volt and 240 volt, that can be used to provide emergency or toll
power by using the truck engine as a generator. The power output is rated at 14.4 kW and 50 amps. This truck can serve both as
transportation and as a mobile generator for City use during emergencies.
The following are the City trucks that are included in the project.
Table 6.2 Vehicle Replacement Proeram —
lcar 1Ia1.c \ledul lnnual
__—•
2003 Ford FI50 8,200
annual
Fuel Use
547
2003
Ford
F150
6,800
453
2003
Ford
F150
8,200
547
2003
Ford
F150
6,800
453
2003
Ford
F450
10,500
1,050
2003
Ford
F450
5,300
530
2003
Ford
F450
10,500
1,050
2003
Ford
F450
5,300
530
Table
Assuming 250 work days and the annual mileage shown above, the trucks will primarily be used in the electric mode. With the
extended range capability, the vehicles will still be able to pick up parks or equipment that fall within the 200 mile range.
-27-
Included in the project financials is an $8,000 per vehicle rebate from the Hybrid Truck Voucher Incentive Project under the
California Air Resources Board Air Quality Improvement Program. Ameresco assumed that the eight trucks were going to be replaced
by the City, therefore, a $39,000 per F150 contribution and a $55,000 per F450 contribution were included in the payback analysis.
ECM9 Irrigation Controls: This measure includes the installation of a smart irrigation control system for the (4) Kimball Park baseball
fields and the open grass area between each. The irrigation control system will include evapotranspiration (ET) based controllers,
rain sensors, and other hardware to optimize water use. Daily water demand will be determined based upon landscape parameters
such as geographical location, amount and type of grass/shrubbery, and ET rates, which are affected by rainfall, outdoor
temperatures, humidity, wind, and solar radiation. Ameresco included a $35/station rebate from the SoCal Water$mart Program.
ECM10 Asset Sustainability: This measure includes the analytical survey of the City facilities using a database model to determine
the future operational costs of the buildings. Beyond just energy efficiency, the asset sustainability assessment reviews the
conditions of many different components of the building to determine the overall life cycle costs for operating and maintaining the
building infrastructure. Some of the parameters analyzed are: foundations, walls, roofing, windows, wall finishes, floor finishes,
plumbing, electrical, mechanical, fire alarm, landscaping, walkways, and parking lots.
Ameresco utilizes a custom developed assessment tool that draws from a large database of infrastructure life expectancy and
replacement costs to help develop a site specific analysis that will provide the City with information of how much the buildings will
cost the City over a 20-30 time period.
By inputting some site specific data and the age of the building, Ameresco analyzed the Public Library and Fire Station 34. The result
of the analysis shows that the City will be facing significant infrastructure repair and/or replacement costs beginning in 2025. The
proceeding charts demonstrate the potential costs and unfunded liability associated with the two buildings.
Asseff'Immor
6 ■*• iiwahoom e•
a9o�r let• Men Pim* None e
i utst •
awns
CL tMerAA.
FA=;nr_vu.
3 FeaNry TNe
, Fro Pat. t2)
M $ he S _.,,',A
AI Fro sow st.
ut00Pi C
i Al D A40c IRmT
it lb: eak .<tknn stn
NATIONAL CRY CALwORNIA
s. oPre krz .•
- o Mersa. Fu sxe.e.. ,a
Figure 6.0 National City Asset Sustainability Dashboard
-28-
51 6
51.285
59601
$ 32J?'
sc
59M
17 2,1
55 4'•'
S3 6c'
Sl 8.1
Cost by Dtscfptine
Years 2014 - 2043
R?ia1
, n�> ' "}
1,55
Semites • li. inten0 3 ;i Ecmnment and d. Shefi
Mechanical r)Ir Building
Site rerk
Fumish,n;s
ltr Services -
Electrmal
Figure 6.1 Library and Fire Station Future Replacement Costs per Discipline
Unfunded liability Impacts
Years 2014 2043
0 J
Unfunded Cost
Figure 6.2 Library and Fire Station Unfunded Liability
ECM 11 PC Power Management: Reduce personal computer (PC) power consumption with the installation of software that provides
network -level control over the power settings of individual units. The software will also monitor electrical savings on a daily basis to
verify success. This software offers the flexibility to work seamlessly with the facility's current IT/network system, and can be
incorporated with the public workstations as well as individual employee machines in administrative and management areas. This
measure qualifies for an Energy Efficiency Business rebate of $15/unit through SDG&E.
Attachment B Measures Not Included in the Project
As part of the solicitation document, there were several items listed in Attachment B that were not fully evaluated by Ameresco,
primarily due to the fact that was a limited amount of time and information available. In order to provide the City with relevant
information, additional time would be needed to conduct the appropriate level of in-depth design development, warranted by the
-29-
measures. Thus, all of these items should be designed in detail before being presented to the City for evaluation, most specifically
the electrical upgrades, security system, and micro -grid projects.
Police Department Electrical System Assessment: Based on the documentation, the City requested an electrical system
assessment of the Police Department, including surveying, metering, designing, and cost estimating a replacement system from
the utility meter down to the branch circuit panel boards, including 3 days of load readings.
In order to provide the most appropriate solution, this level of design and cost estimating requires more time than was
allocated for this response. Ameresco proposes providing this assessment along with the other measures following the selection
process.
Civic Center Improvements: There are three HVAC units listed in the Attachment B for replacement, one condenser at the Civic
Center and two 7.5 ton rooftop heat pump units at the Community Center. Ameresco suggests providing full replacement
recommendations as part of the overall program to the City.
Kimball Tower Boiler Replacement: Attachment B lists many items to be included in the boiler project at Kimball Tower.
Ameresco proposes evaluating this measure further to allow time for factors such as boiler sizing, pump capacity, valve
locations, piping sizes, equipment access, central plant controls points lists, electrical panel locations, etc. w to be adequately
considered and the best replacement option(s) to be recommended to the City.
Security Camera System throughout the City Public Facilities: In order to provide the best recommendation for "installing
cameras at certain city owned facilities", Ameresco proposes meeting with appropriate City personnel to discuss the near- and
long-term objectives of this measure and to fully understand the desired functionality of the security system. Significant
advancements have been made in security capabilities and the wide array options available should be vetted before an
appropriate recommendation and associated cost development can begin.
Micro Grid: Designing a microgrid system at Kimball Park that would connect to the surrounding City owned buildings would
require significant development resources to understand the potential costs and savings associated with the small scale power
generation system.
The first step in evaluating the technology would be to determine the electrical load profiles of the buildings. To provide the
best recommendation, Ameresco suggests a thorough review of the 15 minute demand data, which was not included in the
documentation provided by the City. The load profiles would help in determining when and how much power would be required
of the generators, and would also help in selecting the best mix of technologies to use for generators. Typically natural gas,
solar, fuel cells, and wind generators are the best candidates for local power generation.
The next step would be to determine the cost per kWh, including maintenance and operation, of the different types of
generators and compare them to the cost of power provided by San Diego Gas & Electric. Currently the major buildings around
Kimball Park are on the ALTOU rate, which breaks down its energy costs as follows:
Table 6.3 SDG&E TOU Rates Table
TOU period
Summer kWh rate Winter kWh rate
On Peak $0.12/kWh $0.11/kWh
Semi Peak $0.11/kWh $0.09/kWh
Off Peak
$0.08/kWh
$0.07/kWh
Depending on the time of day and the type of technology, Ameresco would need to determine if the utility grid or the micro grid
could provide cheaper power; Some small generator technologies cost between $0.10 / kWh - $0.18 /kWh. To provide an
appropriate solution to the City, Ameresco would need to design the actual system including equipment selection, design,
layouts, permitting requirements, incentive valuations, and cost estimation.
Solar Thermal Water Heating: Fire Station 34 was surveyed to determine if an opportunity for a solar hot water heating system
exists. Based on the natural gas consumption data provided in the Energy Report Card, it was determined that relatively little
energy was being used to heat domestic water (showers, cooking, etc.) to economically justify a new system. The report card
shows that the facility uses 1,841 therms per year, with only 492 therms being used to heat water (26,7%).
-30-
b. Provide Estimates for the Total Project Size in Dollars, the Annual Savings Anticipated from
Water, Electricity, Gas, and Other Sources
The following table summarizes the project costs and savings.
Table 6.4 National Crty Project Cost and Savi
iteasure
1
"same
Interior Lighting Retrofits
Hi crib:
Cost
Sasiu2s
$19,120
Natural
(;ae,
(or t
S.i ins
S0
A\ at,.r
( ost
'so vin2s
$0
OS\I
S;a‘iulis
$2,066
iota)
Cost
Savint[S
$ 21,186
Project
Cost
$341,901
2
Sports Lighting Upgrades
$4,386
$0
$0
S1,483
$ 5,869
$317,638
3
HVAC Occupancy Sensors
$1,046
$152
$0
S0
$ 1,198
$11,930
4
Landscape Water Reduction
$0
$0
$6,787
$0
$ 6,787
$246,058
5
Bulk Fuel Purchasing
-$3,532
$0
$0
$22,800
$ 19,268
$408,942
6
Renewable Power Generation
$18,890
$0
$0
$0
$ 18,890
$555,867
7
Peak Demand Reduction
$8,000
$0
$0
$0
$ 8,000
$186,408
$901,435
8
Vehicle Replacement Program
$0
$0
$0
$26,220
$ 26,220
9
Irrigation Controls
$0
$0
$10,657
$0
$ 10,657
$80,528
10
Asset Sustainability
$0
$0
$0
$0
$
$14,070
1I
PC Power Management
$1,447
$0
$0
$0
$1,447
$1,761
$49,357 $152 $17,444 $52,569 51 19,522 $3,066,538
c. Provide Estimate for the Amount of Grants, Rebates, and Incentives, and Other funding to
Offset Project Costs
The following table summarizes the project rebates and incentives.
Table 6.5 National City Pr
\Icavrrc
i
Aamc
Interior Lighting Retrofits
Rebates! Iticenti%es: Capital Contributions K
$15,837
2
Sports Lighting Upgrades
$0
3
HVAC Occupancy Sensors
$0
4
Landscape Water Reduction
$100,000
5
Bulk Fuel Purchasing
$0
6
Renewable Power Generation
$89,627
7
Peak Demand Reduction
$48,600
8
Vehicle Replacement Program
$446,000
9
Irrigation Controls
$105
10
Asset Sustainability
$0
11
PC Power Management
Tnt.. e
5885
$701.054
The sources of the rebates and incentives are as follows:
• Lighting: SDG&E Energy Efficiency Business Rebates
o 25 watt TB lamps = $1.50/lamp
o LED integral lamps = $5.00/1amp
o Interior LED fixtures = $70.00 - $125.00 / fixture depending on wattage.
Landscape Water Reduction: SoCaI Water$mart Program
o $2.00/square foot of turf removed
• Renewable Power Generation; California Solar Initiative
c $0.114/kWh per year for five years
• Peak Demand Reduction: Self Generation Incentive Program
o $1.62 / watt
• Vehicle Replacement Program: California Air Resources Board Clean Vehicle Rebate Project
o $1,500 / car
• Vehicle Replacement Program: California Air Resources Board Air Quality improvement Program
-31-
c $8,000 / truck — hybrid
• Irrigation Controls: So Cal Water $mart Program
c $35/station
• PC Power Management: SDG&E Energy Efficiency Business Rebates
o $15/computer
d. Provide List of Measures Your Firm Anticipates Utilizing
The following table summarizes the list of measures.
Table 6.6 National City Conservation Measures
1
Interior Lighting Retrofits
kleasure
7
\aim'
Peak Demand Reduction
2
Sports Lighting Upgrades
8
Vehicle Replacement Program
3
HVAC Occupancy Sensors
9
Irrigation Controls
4
Landscape Water Reduction
10
Asset Sustainability
5
Bulk Fuel Purchasing
11
PC Power Management
6
Renewable Power Generation
e. Provide Estimates for Size and Location of Renewable Systems your Firm Anticipates
Installing
The following table summarizes the locations of renewable power systems.
Table 6.7 National City Renewable S stems Table
Locution
Description
Public Library
Install a new 106.5 kW DC solar power carport. Connect solar power system to Public Library
electrical distribution system.
f. Explain Your Firms Basis for b Through e
The measures included in the project were based on providing the City with the most economical and operational improvements. All
of the measures require detailed analysis before determining final costs and savings, however, the estimates used in the analysis
should provide the City a general idea of the scale of improvements possible at the City facilities.
From a financial perspective, the projects combined have a simple payback of 17.8 years, which could be included in a financing
program such as a tax exempt lease purchase, on -bill financing, power purchase agreement, or lease -lease back. The final mix of
measures and the City's willingness to finance will determine the best measures to include.
With regards to emissions reductions, the measures included in the project will cause a significant reduction to the City's carbon
footprint. The electrical and natural gas measures alone will save over 320,000 lbs of CO,. The greenhouse gas reduction from the
vehicle replacement program will be over 150,0001bs of CO,. When combined with the electrical and natural gas amounts, the total
project will save over 470,000 lbs of CO,.
The table below summarizes the environmental impact of the electrical and natural gas measures.
Table 6.8 Emissions Reductions Summary Table
T} pc Of Pollution
Carbon Dioxide
(CO2)
health
Can cause
respiratory and other
health problems,
particularly in
children and the
elderly
ru
t II' irnnmunta}
Climate change on a global scale has
been attributed to increased
emissions of carbon dioxide
Methane (CH4)
Respiratory and
other health
problems,
particularly in
children and the
Climate change on a global scale has
been attributed to increased
emissions of carbon dioxide
lb. hNh
1.106
Reduction (pound)
Pullutt'it�
lhs herrn
tlh.h
11.76
324,859.68
0.00004261
0.0023
12.89
-32-
elderly
Nitrous Oxides
(N2O)
Respiratory and
other health
problems,
particularly in
children and the
elderly
Climate change on a global scale has
been attributed to increased
emissions of carbon dioxide
0.000005137
0.0002
1 54
Sulfur Dioxides
(SO2)
Respiratory illness,
breathing problems,
may cause
permanent damage to
Precursor of acid rain, which can
damage trees, lakes, and soil;
aerosols can reduce visibility
0.000181
0.00006
52.74
Nitrogen Oxides
(NOx)
i
Lung damage,
respiratory illness,
ozone (smog) effects
Acid rain also causes buildings,
statues and monuments to
deteriorate.
0.000379
0.0098
112.49
The above values are equivalent to removing 44 cars from the road, planting 5,188 trees, or powering 18 typical American homes.
-33-
Project Approach
Ameresco's comprehensive approach to managing an ESPC is designed to ensure that we deliver the maximum value for the lowest
possible cost. A key aspect of this approach is our project management philosophy. Ameresco has one of the most experienced project
management teams in the country. These professionals understand that any successful energy project begins with up -front setting of
expectations, planning, and organization. Our ability to inform and strengthen project development with proven infrastructure life -
cycle assessments distinguishes us in the energy services sector. Our approach ensures that the City will be able to identify and
prioritize the full list of potential energy conservation measures and existing necessary building and systems improvements; and that
City Finance and Facilities leaders and other decision -makers will have access to information that will demonstrate future
infrastructure renewal and budget requirements. In turn, this process will ensure that Ameresco delivers a targeted and cost-effective
project.
Our project teams are on -site, local, empowered and encouraged to make all site -specific decisions on every aspect of project
performance. Ameresco's approach to implementing an innovative ESPC partnership with our clients is a four -phase process. We will
be National City's partner for the entire process and for the long term thereafter.
Proic,:t
Development
Phase I:Project Development
> Step 1: Customer Needs Identification
Ameresco will partner with National City's staff to coauthor customized solutions that advance the City's fiscal, environmental, and
social goals and objectives. The methodologies used to determine these factors, and to identify the types and tiers of needs within the
City are centered on the development of multiple streams of different, but connected data in order to fund and facilitate decision
making. Our expert engineering and technical capabilities will provide comprehensive, mutually agreed upon solutions that maximize
value, ensure the greatest reduction in operating costs for the lowest possible cost.
> Step 2: Infrastructure / Asset Assessment
Using existing basic building and system details the City can provide, along with data gathered in the preliminary audit and in
interviews with City staff, Ameresco will develop first -stage life -cycle profiles of all specified City assets — buildings, facilities,
mechanical/electrical and building automation systems, other equipment including vehicles, and linear systems such as
water/wastewater piping, roadways, etc.
Details gathered in the asset assessment will provide the City with a comprehensive data set from which they can select the energy
conservation and renewable measures that will provide the greatest retum on investment, and those that address risks and liabilities
associated with aging buildings, systems, equipment, architectural components, etc.
Prioritization via Identification of Risks and Liabilities associated with Aging Assets
• As various major building systems and components age, the remaining useful and serviceable life decreases. Capital
renewal needs of the City's portfolio will be established using the life -cycle profiles developed in the asset assessment initiated in
Step 1. Overall renewal needs are compared with available renewal funding to identify the City's "unfunded liability".
• Another metric our team utilizes to assess building conditions is the Facility Condition Index or FCI which helps predict the
physical / infrastructure and capital risks associated with each asset. Various analyses related to funding and risk will also be used in
the process.
Performance
Period Service,
Frgure . Long-term;11111gyUonsP
p Commitment
• Based on the life -cycle profiles, unfunded liability findings, FCI ratings, and other relevant industry metrics, Ameresco will
then work with the City to prioritize identified energy efficiency and general building upgrades in order develop a project that will
accomplish the City's energy efficiency, renewables and environmental goals while significantly reducing the level of unfunded
liability from deferred maintenance.
Our approach incorporates state-of-the-art business processes designed to manage current capital costs and predict future capital
needs. In summary, in this first phase of project development, the City will be able to:
• Assess various options or strategies for phased implementation of required energy/renewable and asset/infrastructure
upgrades;
Design and
Engineering
-34-
• Establish clear and defensible infrastructure needs; and
• Define practical strategies directly applicable to a multi -site portfolio.
To assist National City with ongoing upgrade prioritization and facility renewal planning, Ameresco will develop an asset planning
framework that reviews and optimizes the capital and operating needs by applying a series of business strategies to develop
proactive and practical business plans. Using a proven life cycle management approach, the City's strategic business objectives will
be clearly articulated and incorporated into the plan(s).
> Step 3: Field Data Acquisition
Ameresco engineers gather data on utility rates, historical consumption, and facilities. This information provides the foundation
needed to evaluate the technological and economic feasibility of various ECMs and to provide insight into the greatest energy and
cost savings opportunities. Ameresco's engineers are quickly able to evaluate the feasibility of various ECMs, based on factors
including utility rate structures, existing equipment and their controls, annual operating parameters and the age and condition of
the building envelope. Engineers contributing to the preliminary audit will also be assigned to the detailed Investment Grade Audit
(IGA). To gain an accurate picture of existing conditions at the client's facilities, Ameresco will:
1. Perform on -site surveys with our designers, engineer(s) (PE, CEM, CEA, etc.)
2. Interview National City's facility/maintenance director and staff, administration, and any other stakeholders
3. Incorporate the City's commitment to the ENERGY STAR program and include these efforts into your final project (if
applicable)
4. Analyze recent utility data provided by the City, operation schedules, demand, usage, possible rate structure modification
opportunities, and areas of excessive energy or water use
5. Understand the City's perspective on current carbon footprint and the potential value of reducing and tracking of its current
and future carbon emissions
6. Review recent operational and capital expenditures by the City to determine areas that may require further investigation
7. Update and/or review any other previous energy audits or feasibility studies recently conducted by/for the City
8. Review as -built drawings for existing buildings
9. Analyze any available submeter data
> Step 4: Energy Analysis, Costing, ECM Definition
Information gathered during the infrastructure assessments and field data acquisition is analyzed at this step and individual ECMs
are specified. The savings potential of each ECM is determined and preliminary energy baselines are established.
In a parallel effort, the cost estimating for all of the identified ECMs is begun using a combination of contractor quotes and pricing
databases. The ECMs are then subjected to further analysis, resulting in conceptual design, firm savings and implementation price.
The individuals involved in the data gathering and evaluations perform the majority of the analysis. Senior Project Managers (SPMs)
are also heavily involved in the cost estimating. The task of verifying and approving project implementation costs at this project
development stage will typically be the responsibility of Ameresco's Director of Construction.
- putthe Process
- Ppmpd cntt,Nfnmrtwmcaion flow
- MIV MCNwdotgt.
- Canova va R,Vwemenn
Engineering Specifications
- S itimmtements
- °caring Requirements/Forma:
- Sobmntrecror Se1Mgn
Cr;Uxn.e'. ae/ammo
uMa. Ptiz/ab.�
dyer-y.ed W:a
- basting g Mewed pate Memel
Boa, hmeieearme. bad and demand)
- StbmlWgprieMc ad
uxe traded
was
r..ees
etete, ne MrVvdnaae
Swam Measurements Conducted
- Gamine pet. Reviewed
- Ww's Appro.; m Beeline In/amaoon
t ,. petameten)
- MIV Methodology Mahacd
9eecone ot At n.aa_.
- General Scope pocumentat.un
- Cheers Confirmation on score
- Connrucoon Manager Assigned
e Er,w:rn
Fh dule
9te
Aa CPl »n Le.-��pnaepugrn.em5
IW.mn'cm hyw±.mce Ar nr.:
Figure 7.1 Technical Energy Audit Delivery Process Steps 1-5
> Step 5: Financial Modeling
The financial analysis will incorporate the cost and savings developed in the third step into the appropriate financial model(s) for the
project. These models incorporate requests from National City and applicable interest rates and terms to produce a financial
scenario that supports the required investment and debt service.
-35-
Ameresco reviews key infrastructure risk management criteria to identify and prioritize the most important renewal and replacement
projects. The process provides valuable data to help City decision -makers define long-term capital planning strategies which leverage
available funds to maximize project value in the long-term.
> Step 6: Investment Grade Audit
While the goal of the preliminary audit is to identify the potential opportunity and the ability to finance an ESPC, the detailed IGA
serves to more firmly define the scope of work and final cost. The IGA is a much deeper dive into the costs and savings associated
with the project to ensure that Ameresco has an accurate and complete understanding of ail of the impacts associated with the
project.
> Step 7: Permanent Financing
Once there is agreement between National City and Ameresco on the ECMs that will be included in the project, the project can then
be bid out to the financing community. This will ensure that the City secures the lowest interest rate for its loan. Our finance team
will work throughout the detailed IGA process to facilitate an easy transition from audit to construction with minimal lag time and
disruption. Over the past 14 years, Ameresco personnel have financed a variety of ESPCs using vehicles such as:
• Tax-exempt lease financing
• Capital lease financing
• Off -balance, pay -from -savings financing
• Installment payment financing
Based on National City's needs and objectives, a selection will be made from a variety of financing options that will be supported by
Ameresco's savings guarantee, insuring that payments will be made from the savings of the project. Please reference Section 11 for
additional information on Ameresco's Financing Approach.
> Step 8: Contract Execution
During this step, the final detailed IGA report will be presented to National City. This report will include a detailed description of the
scope of work, energy calculations, M&V protocols, financing terms and conditions, and facilities to be upgraded.
The resultant Energy Services Agreement (ESA) will ensure that the City's facilities will be upgraded, occupants' health and safety
improved, and sustainability goals advanced with no up -front capital expenditure. The guaranteed energy savings will pay for the
project, reduce operating costs and allow the City to allocate more of its finite resources towards other priorities.
— Construction Wanagemem Pewaw(
Reid Audit
— Submittals Evaluated
— Cmt/StoOeIkbotastons
— Validate EpuMmaem Perfoamance vs.
Wank Protections
Pete, mar a eoa>ra
wanvnra r
— Implemwnatisa &Module
— Fhad ha
—RWMalaria
— Opepaes b9Ru{er ayut osd Rewew
Ind Co n nunicate
Impkmentattoo o' Cost/Sarkis/
Combustion Scisedulr
Spore.' aces,'anc<:
— Respond to the akars
Ous>• — and Ynpddos
Figure ?.2 Technical Energy Audit Delivery Process Steps 6-8
Phase II: Design and Engineering
> Step 1: DetailedECM Design
At this step, professional engineers with many years of energy industry experience will complete the conceptual designs. The
Ameresco engineering team will be in charge of the design and engineering work and will ensure that any intermediate design
submittals are prepared for National City's review in a timely fashion.
> Step 2: Equipment Specification
The final equipment selections, subject to the City's approval, will ensure that the guaranteed equipment performance and energy
savings will be achieved and sustained for the full contract term.
-36-
> Step 3: Submittals, Construction Schedule, Client Approval
Following National City's final review and approval of submittals, the submittals will become formal project documents. The
equipment and materials will be installed in accordance with these plans, drawings, schedules and specifications. All submittals are
prepared by Ameresco's professional engineering staff, or reviewed in the event that consultants supplemented the firm's in-house
resources. A construction schedule will also be included in the submittals.
Phase 111: Implementation
> Step 1: implementation, Customer Coordination, Pre -Construction Meetings
Once the City has reviewed and approved all of the final submittals and issued a Notice to Proceed, pre -construction meetings can
be held. At these meetings, National City personnel and Ameresco's SPM will confirm all of the details needed to ensure smooth
implementation of the improvements at each facility including any and all site safety, security, background checks, and badging
requirements.
Ameresco's SPM will be responsible for the successful construction of the project, on schedule and within budget. Two critical roles
that Ameresco's SPM fulfills are customer seriica and quality assurance. The SPM will ensure a smooth and well -coordinated
implementation that minimizes any negative impacts on the City's personnel, educational mission, and building constituents.
As is standard practice in all Ameresco's construction efforts, the SPM reports directly to Ameresco's Director of Construction. The
Director of Construction will retain ultimate responsibility for all implementation period activities. These activities include, but are
not limited to, oversight of procurement and subcontracting, construction budgets and cost control, installation progress,
completion, training, commissioning, project close, and ensuring a smooth transition into the long-term performance period.
> Step 2: Equipment Procurement
The procurement process begins as soon as Ameresco has received the Notice to Proceed. Any equipment and materials that
Ameresco will furnish for installation will be purchased in a timely manner in order to be available for the coordinated construction
efforts. Ameresco's SPM will be responsible for procurement logistics to ensure that all of the equipment and materials meet
contract specifications and that procurement is accomplished in the most cost-effective manner possible. Ameresco is not bound by
low -bid requirements; therefore, equipment can be acquired that provides the best value while meeting guaranteed performance
levels. Competitive procurement solicitations are the favored and typical means of ensuring cost-effectiveness while maintaining
best value.
> Step 3: Subcontract Solicitations/Executions
Similar to Ameresco's material procurement practice, the primary focus is on the proven track record and capabilities of the firms
hired to perform work at National City facilities, whether it is installation labor only or complete turnkey service. Again, low -bid is
not the deciding factor in Ameresco's selection and award process: Subcontractors are chosen based on an evaluation of their ability
to add value and enhance the service provided to the City. All subcontractors must be able to accomplish the specified work on time
within the budget.
Ameresco maintains detailed subcontracting procedures that help reduce the financial and legal risks associated with
subcontracting. By using standard subcontracting documents, internal review and authorization procedures, holding retainage
through completion (including punch -list), requiring National City's review and sign -off on subcontracted work during the
construction period, and compensating our subcontractors in a timely manner, Ameresco is well-equipped to manage the inherent
risks associated with subcontracting. In this manner, Ameresco assumes all of the performance and liability risks of its
subcontractors; thereby, the City is sheltered from those same risks.
> Step 4: ECM Construction
As noted previously, two critical responsibilities that the SPM assumes are quality assurance and customer satisfaction. To fulfill the
quality assurance responsibilities, Ameresco's SPM must ensure that equipment and materials meet the contract specifications and
all work is accomplished in a timely and professional manner. To fulfill the service responsibilities, Ameresco's SPM will oversee all
subcontractor and supply vendor activities to ensure minimal disruption. He will also serve as the primary point of contact
throughout the implementation phase. All issues or concerns that arise will be addressed immediately and resolved to the City's
satisfaction. Any support that Ameresco's SPM requires to accomplish this level of service will be readily available, and efforts can be
supplemented as needed from the reservoir of talent on Ameresco's staff.
Ameresco's SPM also serves as the project safety officer and is responsible for a safe environment for all tradesmen and facility
occupants. He will oversee construction -related activities to ensure compliance with all applicable OSHA, state and local codes and
regulations.
-37-
ru, Otl4IVOreuirucdnn
Muds. Su
-r,ye,.dCon, Pral,ed
- Fsh mina PAM.' Mee , /
Cemouctrot Renew
Su wm, � ess4cts Sulam lord
Main..
•w Uc.r1 Selwdule
- trf emmutoonxrrtdi,c
Conmrss+onmg
Figure 7.3 Construction Process
> Step 5: Commissioning, Testing, Client Acceptance
When the installation of an ECM, a whole facility, or logical grouping of ECMs is completed satisfactorily, Ameresco staff and the
installation contractor will commission and test the systems in accordance with the detailed plan described in the ECM write-ups in
the detailed IGA. The development and design engineering staff responsible for the conception and finalization of these measures
will also assist in the commissioning phase. National City's facilities and maintenance staff will be invited to the commissioning
events to ensure their complete understanding of the new equipment and recently installed systems. Ameresco's operations
manager will also be intimately involved in this process as part of his responsibility for Tong -term M&V activities.
A significant amount of responsibility is placed upon Ameresco's SPM. For that reason, the individuals who perform these services
for Ameresco are extremely experienced and selected for particular projects based upon their unique skill sets and base of
operations. In light of the responsibility placed on Ameresco's SPMs, they are vested with a corresponding level of authority to
control the project's progress and all related activities and provided with all the support that is required to successfully accomplish
their tasks.
"anSlan tha�n
System StrPUF-sl.we,a+a rsnx:y
Pund Wt-ta.Waw.elC•-�k.yehp.AnvA=xne+n
- Jrzfv.! eriM.naie tal ^i
STstan Weterd - .ecwn..r.....7
Prfotmena
Tasting
O&M Maas
- r taM«we.vr,ci. a
-,..a.a„ es,
Figure 7.4 Commissioning Process
Phase IV: Performance Period Services
> Step 1: Client Training
Training of City's staff involved in the Tong -term operation of the new equipment and systems is of paramount importance. A strong
focus on energy savings strategies and maintenance schedules will be provided to those individuals. Familiarity gained with the
systems, facilities and client's personnel during the implementation phase make the SPM the perfect candidate to supervise those
training efforts. By providing training in the proper operation and maintenance of the newly installed ECMs, both Ameresco and the
City are assured of sustained performance of the equipment and persistency of energy savings.
Training typically commences during the commissioning phase when the City's staff will be acquainted with the new equipment and
systems. Training will be conducted in a classroom setting at National City facilities, and will be documented on video to ease
training of newly acquired staff or provide refresher courses for veterans. The basic format includes an introduction to the overall
-38-
installation so everyone understands the benefits of the equipment and systems. Each ECM will be explained in detail, including how
to operate, maintain and troubleshoot. Documentation will include review of O&M manuals, drawings, and equipment specification
literature. A hands-on approach will be encouraged to ensure understanding of all presented material. The training will emphasize
equipment users' essential role in energy conservation, as poorly maintained equipment will not perform as efficiently as possible.
Ameresco will make provisions with the City to conduct training sessions at remote sites if needed. Informal training can also be
provided throughout the contract term and may be accomplished in conjunction with an O&M contract.
> Step 2: Long -Term Measurement and Verification, Annual Reconciliation
Long-term M&V services and annual reconciliation of performance and savings will be carried out in accordance with the site -
specific M&V plan. The M&V plan presented in the proposal will be written in accordance with the International Performance
Measurement and Verification Protocol (IPMVP), the industry -standard international guideline established to aid agencies in
understanding M&V procedures. The M&V specialist will be instrumental in creating the M&V plans for the City's project and will
finalize these plans as part of the detailed IGA process. With his responsibility for satisfactory Tong -term M&V and project
performance, the M&V specialist will oversee the M&V of this project in conjunction with local personnel.
Adjustments to Baseline
Client
Review and Feedback
Client
4. Review and Feedback
client
Review and Feedback
Client
Review and Feedback
Figure 7.5 Measurement and Verification Process
Variances between baseline energy consumption and post -retrofit energy consumption and its associated cost can sometimes be
attributed to changes to the unit price of energy, rate schedules, weather, occupancy, building utilization, and other factors not
attributable to the performance of the installed ECMs. Such changes can include, but are not limited to, the following:
• Changes in the manner or frequency of use of the facilities
• Changes in occupancy levels
• Changes in the amount of square footage served by any heating or cooling plant or other major system under this
agreement
• Changes in the hours of operation of any equipment contained in the facilities
• Changes in, additions or deletions of equipment utilizing fuel being monitored under this agreement
These types of changes may require a baseline adjustment. Adjustments to the baseline are intended to account for changes that could
adversely affect the ability to accurately measure savings. As paid from savings projects, any adjustments made to the baseline must
be transparent and clearly documented. Typical baseline adjustments made during the audit include:
• Monthly consumption and/or cost where utility -recorded data is unreliable
• Compelling evidence of service deprivation (broken lighting fixtures, lack of hot water, etc.)
• Vacancy rates, if not indicative of post -retrofit patterns
• Areas of the development will be employed for different purposes pre- and post -retrofit
Other adjustments are occasionally required during the performance period for equipment and operational changes made at a facility.
Changes that are long-term or permanent will be reflected in a change to the energy baseline. Temporary changes that affect energy
use will be calculated and added to the corresponding month's savings.
A sample calculation appears below which would adjust the baseline for changes in occupancy levels
[Adjusted baseline] = [Baseline usage] x ([Current occupancy] /[Baseline occupancy])
If the new occupancy level is 95 percent and the baseline occupancy level was 90 percent, the following formula would be used:
Adjusted Baseline = Baseline Usage x (0.95 / 0.90), or Adjusted Baseline = Baseline Usage x 1.06
Adjustments of baselines must be performed during the performance period to account for heating degree days and billing days.
Ameresco adjusts the weather -sensitive portion of the usage with daily weather data for each specific billing period.
-39-
The client is responsible for notifying Ameresco of material changes that affect the energy baseline as established in the final ESA.
Ameresco will determine the effect that any such change will have on energy conservation savings and present a written analysis to
the client of the effects of the changes. Any changes will be specifically documented in writing and mutually agreed to by the client
and Ameresco prior to any adjustment that will impact the savings guarantee.
Unfortunately, it is not possible to produce a generic formula to account for every adjustment that could be encountered during the
term of a project. Generally, adjustments reflect the "what if the system was operating like this in the base year" view. Therefore, it is
crucial to establish the baseline conditions very clearly during the audit process in order to help identify the causes of any substandard
ECM performance.
General effects of changes to baseline conditions on each of the four IPMVP options are as follows:
® Option A allows for the stipulation of many of the factors; therefore, minimal baseline adjustments are usually required.
Consequentially, Option A can be easier and less expensive to implement.
Option B involves metering techniques. Baseline performance data is not changed, but baseline -operating variables
(primarily run time) can be changed by use of metered data obtained during the post -installation performance period.
Option C is primarily based on a billing analysis. Unless adjustment factors are pre -defined in the M&V plan, arriving at a
mutually agreed upon adjustment may be difficult. Buildings typically don't have sub metering systems that would be able to
breakout the utility consumption for individual systems. Multiple adjustments may be required at one time, causing breakout
of the individual adjustments to be nearly impossible.
Option D is characterized by calibrated simulation, which can be easy or difficult to adjust, depending on the details of the
calibrated simulation and the variables used in the calibration. If baseline adjustments are possible, no matter how unlikely,
adjustment factors will be defined.
While the specific algorithms vary from measure to measure, they can all be broken down into usage pre- and post -installation of the
ECM. Sometimes the baseline usage is fixed, while in other cases the baseline is calculated based on the post -installation usage,
depending on the specific plan used to verify the performance of the measure. All specific protocols must be explained to and
accepted by the client before project construction can begin.
Measurement & Verification
Ameresco will coauthor the development of a detailed and comprehensive M&V plan with t National City during the audit. This will
include ongoing monitoring to ensure actual ongoing savings are attained. This is a critical element of the performance contract
because it provides the basis for the energy savings guarantee and debt -service payment. The specific M&V plan will be submitted
with the final IGA and will be included as a Schedule in the ESA. The frequency of M&V reporting —quarterly, biannually, or
annually —will be at the option of the City. All specific protocols must be explained to, and accepted by, National City before project
construction can begin. M&V involves two essential components:
1. Verifying the ability of the project to generate all the projected and/or guaranteed savings
2. Measuring actual, periodic performance of the project against the established baseline(s)
While there are a variety of ways to accomplish the two primary M&V tasks, a critical prerequisite is to establish the aforementioned
baseline(s). These baselines are developed from a rigorously derived end -use analysis, on -site measurements and historical energy
consumption data. Techniques range from stipulating all factors affecting ECM performance to installing extensive, highly accurate
metering systems. When deciding the appropriate level of sophistication for a particular plan, factors such as complexity of the
measure, expected magnitude of savings from the measure, and the client's aversion to risk all affect the decision. In an effort to aid
agencies in gaining an understanding of M&V, the IPMVP was established.
The general approach to determining energy savings in these plans involves comparing the energy use associated with a facility or
certain energy consuming systems within a facility before installation of the ECM (baseline) and after installation of the ECM (post -
installation). In general:
Energy Savings = (Baseline Energy Use) — (Post Installation Energy Use).
The specific algorithms vary from measure to measure, but can all be broken down into baseline and post -installation usage.
Sometimes the baseline usage is fixed, while in other cases the baseline is calculated based on the post -installation usage depending on
the specific plan used to verify the performance of the measure.
The long-term success of any comprehensive energy efficiency program depends on the development of an accurate, successful M&V
plan. The main objective is to develop a cost effective plan that quantifies and verifies the performance results of the ECMs.
Ameresco applies industry standard M&V protocols that have been developed in response to the need for reliable and consistent
measurement practices.
The following reference is used for the development of M&V procedures:
- 40 -
• Efficiency Valuation Organization. International Performance Measurement & Verification Protocol (IPMVP). September
2010.
• The protocols also help to allocate various risks associated with achieving energy cost savings and allowing risk reduction
and better risk management. The M&V options description, provided herein, was developed by summarizing the IPMVP and
contains excerpts taken from that document. The benefits of the protocols include:
- Defining the role of verification in energy contracts and implementation
- Discussing procedures, with varying levels of accuracy and cost, for verifying:
• Baseline and project installation conditions
• Long-term energy savings performance
- Providing techniques for calculating "whole -facility" savings, individual technology savings, and stipulated savings
- Providing procedures that are consistent, industry accepted, impartial and reliable
- Providing procedures for the investigation and resolution of disagreements related to performance issues
The IPMVP protocols have defined four M&V options (Options A through D) that meet the needs of a wide range of performance
contracts and provide suggested procedures for baseline development and post -retrofit verification. These M&V options are flexible
and reflect the considerations previously mentioned.
Project Team Resumes
Brief resumes for key project team members can be found within Section 4.
-41-
Methodology of Determining & Guaranteeing Energy Savings
As an integral part of its contract with t National City, Ameresco will guarantee a minimum level of energy savings over the full term
of the contract. Ameresco's guarantee provides assurance to the City that the cash inflows from the project, which include both energy
and operational cost savings, if applicable, will exceed the City's cash requirements for the project, the 1Pase payments and, if
applicable and/or desired by the City, any on -going payments for the provision of O&M services. The City will retain actual annual
energy cost savings that exceed Ameresco's guarantee.
Ameresco believes that it is in our clients' best interest to require a savings guarantee from its energy service company partner. The
chief objective of an ESPC is to use future reductions to the operating budget to amortize the cost of the energy savings performance
contract over the term of the financing. Without the guarantee, the City would have no recourse against the energy service company in
the event of a savings shortfall.
Typically, Ameresco clients, subject to local statutes, terminate the guarantee and the associated M&V requirements after the third
year of performance, as long as the savings have been achieved.
Any O&M savings applied to the project will be stipulated between the two parties. Ameresco will provide detailed calculations and
supporting documentation for any O&M savings to National City for review and approval in the IGA. Additionally, the guarantee can
be structured to cover the annual M&V and maintenance costs.
At any time during the contract term, should there be a shortfall in energy cost savings identified during the annual reconciliation and
correction process; Ameresco will make a payment to the City in the full amount of the shortfall. Payments can be in the form of a
check or a credit against future billings from Ameresco, National City's option.
Ameresco's guarantee language included in a standard Energy Services Agreement (ESA) is provided below.
SECTION XX: Guarantee of Energy Savings
(a) Ameresco hereby represents and warrants to Customer that the amount of the Annual Energy Cost Savings (as defined in Attachment E) shall
equal or exceed the "Guaranteed Savings" (as specified in Table 6(a) below), over the Term (the "Guarantee of Energy Savings").
Treble h(e)
A.uar inlud Qavit s
2
3
4
5
6
7
8
9
10
11
12
13
14
15
For purposes of the Guarantee of Energy Savings, the following assumptions and provisions shall apply:
(i) Calculation of the Annual Energy Cost Savings, inclusive of energy savings and operational and maintenance cost savings, shall be
performed under, and governed by, the methods, formulas and procedures described in Attachment X.
(G) As it relates to the Annual Energy Cost Savings and the Guarantee of Energy Savings, the term `year" shall mean the consecutive 12-
month month period beginning with the first day of the month following the date of the Final Delivery and Acceptance Certificate (the
Anniversary Date), and each similar 12-month period thereafter.
till) The unit prices, including the escalation thereof, to be used to calculate the Annual Energy Cost Savings for the purposes of the
Guarantee of Energy Savings are described in Attachment X.
(iv) The Guarantee of Energy Savings herein is subject to Customer performing its maintenance and other obligations under this
Agreement. If Customer fails to perform, or fails to properly perform, its obligations under this Agreement or interferes with, or
permits any person to take any action which, in the reasonable opinion of Ameresco, prevents the achievement of the Annual Energy
Cost Savings under the Guarantee of Energy Savings, then Ameresco may equitably adjust the Annual Energy Cost Savings during the
period wherein savings were affected to reflect the same. Ameresco's tights in this section shall not be in limitation of any other rights
it possesses under this Agreement.
(b) Ameresco will perform and submit to Customer a guarantee reconciliation (Guarantee Reconciliation) upon the later of (i) 120 days after each
Anniversary Date and (ii) 60 days after Customer delivers to Ameresco all utility billing and other data necessary for Ameresco's completion of
the Guarantee Reconciliation. The Guarantee Reconciliation will include a calculation of the cumulative Annual Energy Cost Savings achieved in
relation to the cumulative Guaranteed Savings for the period being reconciled.
(c) Ameresco hereby guarantees that if the cumulative Annual Energy Cost Savings realized by Customer as of any Anniversary Date, as detailed in
the Guarantee Reconciliation, is less than the cumulative Guaranteed Savings as of such Anniversary Date, then Ameresco will pay to Customer
that amount by which the cumulative Guaranteed Savings exceeds the cumulative Annual Energy Cost Savings, such payment to be made within
-42-
60 days after the date of the Guarantee Reconciliation. Any such payments made by Ameresco shall be included in the cumulative Annual Energy
Cost Savings total for purposes of future Guarantee Reconciliation calculations.
• Ameresco follows the IPMVP guidelines as specified in detail in Section 7.
-43-
9. Performance Capabilities
As an integral part of its contracts, Ameresco will guarantee a minimum level of energy and water savings over the full term of the
contract. These provisions guarantee that the cash inflows from the project (e.g., energy and operational cost savings [as applicable]
and utility rebates) will exceed any cash requirements, lease payments, and the cost of any operations and maintenance services
required. National City will retain actual annual energy cost savings that exceed Ameresco's guarantee. In this way, Ameresco's
clients are assured that a performance contract with Ameresco will reduce utility costs; improve infrastructure; and enhance the safety,
comfort, and health of facility occupants without a capital expenditure.
All of Ameresco's performance contracts include long-term assurances which guarantee that the project will achieve or exceed the
levels of projected savings. In fact, projects with Ameresco typically achieve 103 percent of our guarantees. From our inception
through December 31, 2013, total payment to clients and incurred costs under our energy reduction commitments have been less than
0.5 percent of the guaranteed annual savings for all contracts with savings guarantees.
Ameresco's savings guarantees are conducted in accordance with the IPMVP, which established industry -leading practices
performance verification. Ameresco assures that National City will receive the savings guarantees and achieve similar levels of
projects savings that all of our clients have come to expect throughout our 14 plus years in the industry.
With 2013 revenues of over $574 million and a construction backlog exceeding $1.35 billion, Ameresco is one of the largest
independent energy services companies in United States. We maintain a $1.4 billion surety credit facility through two corporate
providers, both with an AM Best Rating of "A Excellent." Using its significant resources, Ameresco has the financial fortitude to be a
long-term partner with National City, ensuring a successful development execution, project implementation, and operations.
Please reference Appendix A for Ameresco's 2013 Audited Financial Statement, which includes financial information for the previous
three years.
-44_
10. Time Specified in the Qualifications for the Performance of the
Contract
Ameresco has carefully reviewed the requirement for National City's Energy Services Contract for Sustainability Improvement to City
Facilities and is confident that we can perform the audit of the identified National City facilities within City's anticipated timeframe
of four months after the date of issuance of the letter of intent.
-45-
11. Financing Approach
Ameresco has sourced and raised more than $1.5 billion of project financing over the past 14 years from various lending sources
including John Hancock, Bayerische Landesbank, Bank of America, Capital One, Chase Bank, Crews and Associates, Union Bank,
Green Campus Partners and several other financial institutions. Using existing cash resources, cash flows from Ameresco's operating
activities, and access to credit through multiple lending relationships, Ameresco has the resources necessary to develop, implement,
and finance clients' energy projects of nearly any size of scope. We have secured or assisted clients in securing financing for various
types of utility efficiency projects ranging in size from less than $1 million to over $180 million. Pricing varies by size, term, credit
quality and structure —from 10 to over 20 years with tax-exempt interest rates from 0.0 to 5.0 percent.
The structured finance group is highly engaged in the financial markets and continuously strengthens its relationships with lenders.
Through these relationships, the team is able to provide an independent and transparent bidding process to determine the right
financing partner on all types of projects. We work with lenders that provide interest rate locks, low interest rates, and have a high
level of understanding of energy conservation and renewable energy projects.
Ameresco maintains a commercial banking relationship with Bank of America. John Lynch, Senior Vice President manages
Ameresco's relationship. Ameresco has a $100 million revolving credit facility with Bank of America.. Contact information is as
follows:
Bank of America
C/O: John Lynch, Senior Vice President
100 Federal Street, Boston, MA 02110
P: 617.434.7760
Additional lenders with whom Ameresco has established relationships with include:
Capital One
C/O: Jeff Sharp
11663 South Parkwood Drive
Olathe, KS 66061
P: 877.890.8509
Green Campus Partners
C/O: Neal Skiver
215 Lincoln Avenue
Santa Fe, NM 87501
P: 732.917.2311
Zions Bank Corporation
C/O: Alan Westenskow
One South Main Street, 18th Floor
Salt Lake City, UT 84133-1109
P: 801. 844.7377
Crews and Associates, Inc.
C/O: Edmond Hurst
521 President Clinton Avenue, Suite 800
Little Rock, AR 72201
P: 510.978.7941
SunTrust Leasing Corporation
C/O: Doug Dillon
300 East Joppa Road, Suite 700
Towson, MD 21286
P: 410.307.6640
Ameresco is dedicated to working with public utilities; local, state, and federal agencies; and other pertinent organizations to keep
abreast of the latest incentive program offerings and guidelines to help maximize the amount of additional funding clients can expect
to receive. The financial team will work closely with project developers to ensure the final solution meets all incentive requirements
from state and federal sources.
Specific steps taken to secure and utilize rebates include the following:
• Assemble the production -based or prescriptive incentive applications,
• Submit those applications-tothe pertinent agency on behalf of National City
• Follow-through with any required reporting and analysis necessary to secure ail available rebates, including the processing
of rebate -related documents during system installation and commissioning
• Provision of on -going monitoring and verification services and required documentation in order to access rebate funds
earmarked for the relevant project
All of the members of the project team have experience working with the utility companies throughout California to secure rebates for
projects. This experience includes completing rebate applications, conducting pre and post construction site visits with inspectors, and
responding to inquiries from utility company staff regarding savings calculations. Table11.0 includes an overview of grants secured by
members of the project team on behalf of their California clients.
Table 11.0 Representative List of Grants and Rebate Experience for California Clients
-46-
!e .,
San Francisco Housing Authority
Santa aara, City of, Forward Power
Santa Clara, City of, Vasco Road Power
Salinas Valley Solid Waste Authority, Johnson Canyon Power
San Joaquin County, Foothill Power
Butte County Neal Road Waste
Chula Vista Elementary School District, CA
Funding Type
ARRA
Amount
$ 11,700,000
State of CA
$ 196,028
State of CA
$ 160,882
State of CA
$ 67,434
State of CA
$ 151,667
State of CA
$ 95,529
QZAB (2)
$ 17,000,000
Utility Rebates
$
Sweetwater Union High School District, CA
Utility Rebates
500 00
$
South Bay Union School District, CA
National School District, CA
Utility Rebates
800,p00
$ 300,000
Utility Rebates
Fullerton School District, CA
Bakersfield
QZAB
$
$ 250,000
$ 2,500,000
Utility Rebates
$
City School District, CA
Utility Rebates
500 000
$
Washington Unified School Di riot, CA
QSCB
300,000
$ 3,600,000
Please note that these orniprtc war-* 1,nntrn,,,,,1 .....!„- I_.__.._ r.
Utility Rebates
$ 200,000
Notes:
ARRA = American Recovery and Reinvestment Act
EECBG = Energy Efficiency and Conservation Block Grant
State of CA = Sales Tax Exemption under SB71
QSCB Qualified School Construction Bond
QZAB = Qualified Zone Academy Bond
rgyServwces, Inc. whose entire team joined Ameresco in Jonuary 2013
Ameresco was one of the first energy services companies in the nation to successfully integrate American Recovery and
Reinvestment Act (ARRA) funds in the form of federal Energy Efficiency and Conservation Block Grants (EECBG), Clean Renewable
Energy Bonds (CREBs), Recovery Zone Economic Development Bonds (RZEDBs), Qualified Energy Conservation Bonds (QECBs) and
utility rebates to create a fully self -funding project for the City of Reno, Nevada.
Ameresco has successfully secured $52 million in solar incentives on behalf of Arizona State University from the two local public
utilities. In fact, the ASU Polytechnic Campus 598 kW -DC ground mount array alone received an incentive award totaling $2,902,321
over the 20-year iifespan of the system.
Combined, Ameresco, its antecedent companies, and the IES team members have been assisting clients in securing low interest
financing for energy projects for nearly three decades. This funding assistance and oversight is managed and allocated by the
California Energy Commission and often assists our clients in securing funding for energy conservation and efficiency projects.
-47-
12. Methods Proposed to Accomplish the Work
a. Capabilities for Developing and Innovative/Advanced Techniques for Project Delivery
The Ameresco Asset Sustainability tool helps clients develop strategies to manage the funding gaps associated with aging
infrastructure. Asset Sustainability reviews key risk management criteria to identify and prioritize the most important renewal and
replacement projects. The program provides valuable data to help decision -makers define long-term capital planning strategies which
leverage available funds to maximize project value in the long-term.
Our approach incorporates state-of-the-art business processes designed to manage current capital costs and predict the future capital
needs for multi -facility public and private property owners, including municipalities, K-12 schools, institutions of higher education,
public housing, healthcare, hospitality, property management, condominiums and commercial clients. In summary, the tool:
• Helps establish clear and defensible infrastructure needs
• Defines practical strategies directly applicable to a multi -site property owners needs
• Allows a comprehensive assessment of the phased implementation of various options or strategies
/ \
/ \
/ \
/ \
/
/ NEEDS
/ \
STRATEGIES
PHASED
IMPLEMENTATION
• Develop facility planning trivrie crk
• Collect featty data on airmen costs confpar !Recycles and operabons
• Pattern %cllay renewal needs over 30 years
• Validate 5.year needs and cost data
• Develop 30-year vision and 5-year capital ptar
• Establish renewal targets and strategies
• Identify facility. related savings potential
• Evaluate long -tam capital funding opaums
• Develop and present capital plan business case
• Saks facky'n software tads
• Undertake engineering leasibAey
• Termer for materiels and measures
• Manage ongoing phased implementation
• Cornnassran renewed beaky systems
• Monitoring renewal and savings more,
• Revisit ethical plan for Ida -cycle changes
Figure 12.0 Asset Planning Process
b. Managerial Approach to Ensuring High Quality Service
Our quality assurance policy states that, "Ameresco will attain 100 percent customer satisfaction by providing value-added innovative
solutions that perform to their requirements every time." Thus, quality is a core goal to be addressed in an ongoing manner instead of
simply addressed at the completion of a project.
To ensure that the newly installed measures are fully functional and operating to the City's satisfaction by any deadlines developed at
the inception of the project, Ameresco's SPM will collaborate with the City's staff to define and mutually agree upon construction
milestones. These milestones will both meet the needs of the City and ensure timely project completion. Because client satisfaction is
Ameresco's primary goal, it is the responsibility of every staff member and subcontractor to deliver a quality product.
Throughout the construction phase and before the date of substantial completion, the SPM will require a City representative to
formally sign -off on the work completed before the next phase of work can continue. If an issue is discovered, the project manager
and Ameresco's leadership team will work together to identify the root cause, analyze the consequences, and establish guidelines or
other risk mitigation measures, to ensure that a similar problem does not reoccur. It is Ameresco's responsibility to work with the
contracting entity to determine how the issue will be resolved. It will be addressed immediately to mitigate project delays and avoid
additional complications.
Ameresco's Quality Assurance Plan has the following core components:
• Client Satisfaction Teams: These teams are composed of a branch or department manager and select staff members. The
teams' primary objective is to keep each operating unit focused on providing systems and services that result in 100
percent customer satisfaction.
• Quality Awareness and Communication: Special efforts are expended on an ongoing basis to keep the quality assurance
plan in the forefront in all client relationships. Because we define quality improvement as a process as opposed to a
program, associated activities are a continuous part of Ameresco's everyday operation philosophy.
• 48-
• Requirements: A key element of successful project is to clearly understand the client, as well as their goals, challenges, and
objectives. As a company, we work to develop long-term trust relationships with individual clients as we service their needs.
Only through close, constant contact with our clients can we understand their changing requirements and exceed
performance expectations.
• Measurement: By measurement, we track our ability to meet the unique needs of our clients. Measurements make the
quality process real as opposed to simply a philosophy.
• Corrective Action: Corrective action is a systematic method of identifying problems and addressing their causes. Our client
satisfaction teams take corrective action by identifying the root of an issue and establishing measures to ensure that the
particular problem will not reoccur. Clients are often requested to be members of a corrective action team to help define
the solution and resolve the issue.
• Recognition: We formalize our appreciation of those Ameresco staff members who contribute to client satisfaction. We
have several channels through which we recognize employees who deliver exemplary service to our clients.
Clients who select Ameresco as their energy partner can be certain they are dealing with a company who recognizes the importance of
delivering high -quality products, systems, and services. Our experience has taught us that the long-term success of any project or
relationship requires adherence to the quality process as a number -one priority and must be recognized as such at all levels in the
organization. All Ameresco projects regardless of size or scope receive the same level quality and dedication.
c. Methods Proposed to Ensure On -Time & Within Budget Project Delivery
Ameresco's projects are specifically designed from inception through the term of the contract to mitigate client risk. In fact, with
established performance assurances back by long-term financial solvency and longevity, clients are inherently sheltered from the risks
that are often associated with capital improvement projects. Additional risk mitigation strategies include:
• Industry -leading commitment to safety
• Proven methodologies for subcontractor selection and management to ensure subcontractors perform to the same level of
quality and accountability as direct Ameresco employees
• Project scheduling designed to minimize any interruptions to normal business operations
These strategies are supported by a Quality Assurance Plan established to recognize, understand, and rectify any issues of concern
that arise during the contract term.
Ameresco's custom approach to system design and engineering extends beyond project development and through the implementation
phase. The vast majority of our energy projects have been constructed on active, publically-managed spaces utilized by members of
the public, including municipalities, educational institutions, and the federal government. We work in close collaboration with our
clients to ensure construction does not interfere with a site's normal operational needs while maintaining a safe and secure
environment for the public.
The Ameresco team will work in close coordination with National City's staff to understand the facilities' operational requirements so
that the project can be implemented in a way which mitigates any potential impacts to daily operations. Once the project has been
designed and operational requirements identified, implementation tasks will be entered into Microsoft® Project software to develop a
project schedule. Microsoft Project will convey the total project timeline, estimating the manpower loading, and ensure that there are
no overlapping critical activities that will affect the implementation schedule.
Following final approval by Ameresco and the City, the timeline will be used diligently by the field staff to track construction
progress. The project schedule will be a living document and will be constantly updated throughout the life of the project. Any
changes to the project schedule will be communicated immediately to the City's staff in the manner most useful to the individual
client, such as via email, hard copy, phone, or in -person.
System delivery will be overseen by the SPM who will manage all aspects of the project's implementation. This dedicated, in-house
staff member will serve as the single point of contact during construction, including equipment procurement, and subcontractor
selection and management. He or she is responsible for ensuring that both direct Ameresco employees and subcontracts achieve
established project milestones safely, efficiently, and in accordance with design specifications.
During the construction phase, the SPM will conduct weekly construction meetings with subcontractors and City staff to monitor
progress and review a two week "look ahead" construction schedule. Additionally, Ameresco will assist in the notification of site staff
members, administrators, and the public, as applicable, in advance of the upcoming work to minimize and avoid any impacts to
normal facility operation.
Nearly all of Ameresco's clients are those in the public sector and are located in publicly occupied facilities where specific
coordination is required with the client, local utilities, subcontractors, equipment suppliers, and facility personnel to best accommodate
the needs of its staff and visitors and cause minimal, if any, disruption. In many cases, major project installations are scheduled on
-49-
weekends and holidays when educational facilities are typically not in use. Recent project examples where Ameresco successfully
overcame challenging installation requirements include:
• Maricopa County's $30.2 million performance contract included upgrades to secure justice facilities (including correctional
facilities and the courthouse) in and around Phoenix, Arizona, including the installation of 1.27 MW of solar PV at three
sites and 120,727 therms of solar thermal at seven correctional facilities. Ameresco closely coordinated with County staff
throughout all phases of the project, including grid interconnection, to ensure that in the projects were installed while
maintaining a safe and secure environment. Through an effective and well -coordinated communications strategy,
construction was completed on -time without any interruptions to the County's daily operations.
• Lake Havasu City required extensive coordination between the client and Ameresco in order to achieve project milestones
without interruption to the City's daily business operations; in particular, City Hall, the Police Department, and Aquatics
Center are areas of high public traffic. Construction managers established goals on a two week look -ahead basis, and met
with City and site -specific administrators on a weekly basis to understand each site's requirements so that daily milestones
could be shifted accordingly. Installation contractors often worked ten to twelve hour days to ensure goals were completed
in accordance with the mutually -agreed -upon schedule. Work was conducted over weekends, holidays, and other breaks
while the facilities were closed to the public.
The City of Henderson Justice Facility (ESPC Phase I) project included three boiler change outs during the winter with no
adverse effect on building heating requirements for jail cells, judge's chambers or clerk offices, and with no occupant
complaint.
-50-
13. Financing Management & Account System
Performance contracts are invoiced monthly on a percent complete basis. Each month, the Senior Project Manager (SPM)
provides a project update to Accounting Department. The client is then invoiced based on a pre -approved Schedule of Values.
Please reference Figure 13.0 for a process map of Ameresco's invoicing procedures.
Senior Project
Manager
Ameresco
Figure 13.0 invoicing Procedure, Proccs,, Rap
Invoices are provided electronically via email or by hard copy. Upon client request and when geographically appropriate, invoices
can be provided in -person. Ameresco's standard payment terms are net 30 days.
Ameresco's SPMs strictly comply with the procedures provided. Ameresco maintains regular communication with all clients, and
will rapidly address any procedural issues that may arise if the established invoicing procedures do not meet the needs,
requirements, or preferences of the client.
As a turnkey energy services provider, Ameresco's only business is working with clients to continually lower operating costs
through supply- and demand -side solutions. We offer the technical expertise, as well as the dedication required to develop and
institute a holistic program that targets the conservation of all major utilities and equipment. Ameresco's only business is
resource conservation, generation, and management, including energy and water conservation measures, renewable energy
solutions, and energy information systems, coupled with the financial expertise to identify creative funding solutions to meet each
client's unique budgetary, administrative, regulatory, or other requirements.
We offer experience and knowledge of the a broad portfolio of opportunities that support fiscal responsibility; renew asset
infrastructure; reduce facilities' environmental impacts; and provide a healthier, more comfortable, and safer environment for our
clients and their staff, administration, and other constituents. Our ability to impact long-term savings is driven by a combination
of installed supply- and demand -side energy solutions, as well as a focus on the long-term ability of the equipment and systems to
continue to generate savings over time.
Ameresco's financial management and accounting system will operate in compliance with Parts 16.301-3, 18, and 31 of Title 48
of the CFR.
-51-
. Competitive Procurement, Open Book Pricing & Overhead
a. Process for Obtaining Competitive Subcontractor Bids, Selecting Subcontractors, and Assuring
Competitive Pricing
Ameresco will establish subcontractor alliances for the City on a case -by -case basis for the installation portion of the project, as we do
for virtually all of our clients. This process keeps us vendor neutral and ensures that we are able to meet the financial, operational,
D/M/WBE utilization, and other goals identified by the City.
Ameresco casts a wide net to national and local suppliers and contractors for all goods and services, and works directly with several
major manufacturers. Ameresco will confer with the City to select preferred vendors, and pricing will be compared with what the City
is accustomed to paying for all goods and services similar to those required by this project.
Construction scope is typically put out for preliminary quotation during the IGA using conceptual design schematics, unit counts,
equipment preferences, and other details developed for the audit report. These quotations are compared with other similar Ameresco
municipal installations and applied to the pricing contained in the IGA. After the Energy Services Agreement (ESA) is executed,
designs are developed and quotations are again solicited on the refined scope of work.
Ameresco typically solicits a minimum of three contractor quotations on all measures, in an effort to assure that the client receives the
best goods and services are delivered for the lowest price. An additional key benefit of Ameresco's independent position in this
marketplace is that we have no pull -through product or service goals. Our only product is performance contracting, and we have no
larger manufacturing or service -providing corporation influencing our offering. Technology and products are recommended based on
their ability to best meet the needs of our clients for the lowest possible cost.
Ameresco's success depends upon timely, professional quality workmanship performed by qualified subcontractors who are proficient
in the specific technologies required to implement the project scope. As it is with price and technical proficiency, a premium is placed
on the ability of the contractor to work cooperatively in a non -disruptive fashion within occupied municipal facilities. To this end, it is
generally beneficial to engage local subcontractors who have a proven track record of success in City facilities, and an established
relationship with the facility personnel. Ameresco will look favorably to contractors that have had positive experience with the City.
When Ameresco uses a subcontractor to perform a service required by the contract or to provide materials and supplies for use on the
contract, we insist that the subcontractor perform to the same standards and meet the same requirements that we are required to meet.
The use of subcontractors to accomplish elements of this contract will be transparent to the City. If a quality issue arises, we will
resolve it as if the cause existed within the Ameresco organization. Each agreement will contain the same flow -down clauses and
include all requirements that are part of the contract between Ameresco and the National City, as well as the additional terms and
conditions provided by the City.
Ameresco will inspect all goods delivered and services performed. If so desired or as necessary, Ameresco or the City's staff may
require inspection of any vendor's operation.
Determining Responsive, Responsible Bidders
Ameresco understands that the use of local subcontractors is expected and paramount to this project, and we will make it our goal to
meet and exceed those expectations, as we did for the City of Reno where we utilized 93 percent local labor.
Responsible bidder shall:
• Provide sufficient financial resources to complete the order
• Meet quoted delivery considering all other business commitments
• Provide satisfactory integrity and record of performance and safety
• Comply with all terms and conditions not individually waived
• Have the necessary production and technical equipment and facilities (or the ability to obtain them)
• Have the necessary organization experience, operational controls and technical skills (or ability to readily obtain them)
• Be an authorized distributor or vendor for the requirement
• Be otherwise qualified and eligible to receive an award under applicable laws and regulations and accepted procurement
practice
• Submit a bid within a competitive range
Responsive bidder shall:
• Meet all requirements of the solicitation (delivery, quality, quantity and price)
• Compete in the market for the furnishing of the items to be procured as a normal course of business
• Arrive at the price independently
• Provide methods for selection and evaluation of subcontractors
When subcontracting is used, Ameresco will:
• Define the scope of work
-52-
• Prepare a recommended slate of qualified vendors
• Seek bids from approved offers
• Review bids or offers for compliance and cost
• Conduct a pre -award survey, if necessary, to confirm capability
• Provide a recommendation for award to the City for review and approval
• Award the subcontract
Plan to Attract DBE Subcontractors
Ameresco's Small Business Utilization Plan describes how the Ameresco team will identify and notify D/M/WBE firms about
opportunities to participate in the City of National City project. Our Plan includes:
• Hosting D/M/WBE Contractor Outreach Events offering the M/WBE contracting community opportunities to meet
Ameresco's decision makers and learn first-hand about the project and contracting opportunities;
• Establishing and maintaining communications and relationships with business and trade organizations that have
member constituents able to supply professional services, contracts and supplies.;
• Identifying qualified D/M/WBEs for the project through research by NIGPS and NAICS Codes of public databases
operated by federal, state, and local governments, state transportation departments as well as national organizations
that are certifying authorities
• Collecting, tracking and monitoring D/M/WBE expenditures from all higher -tier contractors on a monthly basis
• Collecting, tracking and monitoring D/ M/WBE expenditures from subcontractors with contract values totaling five
thousand dollars ($5,000) or more on a monthly basis
• Reporting D/M/WBE contract award and expenditure participation in a timely and accurate manner, monthly and/or in
real-time as requests are received
b. Commitment/Experience with Open -Book Pricing
Ameresco has performed a large number of projects on an "open book" cost basis. We will request proposals from multiple
subcontractors and equipment vendors to ensure that National City receives the best value for each project dollar and will present the
proposals to the City for review. Ameresco's fees will be determined as a percentage of these direct project costs. All subcontracts,
design, engineering, project management and finance costs will be disclosed during the final program development phase. Ameresco
has found that this process fosters the development of an open, communicative relationship that serves as a foundation for a long-term
partnership.
This same open book, cost plus approach is currently being implementing at a number of projects for municipalities, correctional
facilities, school districts, and institutions of higher education throughout the U.S. For example, Ameresco is an awardee under
several of the U.S. Department of Energy Regional "Super ESPC" contracts, including the U.S. Army Corps of Engineers in
Huntsville, Alabama and the U.S. Department of Army Medical Command. As part of both selection processes, Ameresco agreed to a
not -to -exceed mark-up on typical energy conservation measures.
C. Overhead Rate
Ameresco will apply markups listed to all projects implemented. Ameresco proposes that all project related costs incurred by
Ameresco shall be applied a markup in order to recover overhead and recognize profit.
Table 14.0 Mark-up on Projects
Category 1 Percent Markup and Fees
Overhead Typically range between 9 - 12% of Direct Project Costs. (These costs vary with the size and complexity of the project.)
Profit Typically 6%
-53-
15. Exceptions to this Request for Statement of
Qualifications
Ameresco takes no exceptions to this Request for Statement of Qualifications.
-54-
RESOLUTION NO. 2015 —
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY
AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH AMERESCO, INC.,
TO CONDUCT AN ENERGY AUDIT OF CITY FACILITIES (PHASE I), DEVELOP
A PROJECT SCOPE OF ENERGY AND WATER SAVING MEASURES TO FUND
CAPITAL COSTS, FORECAST SAVINGS, AND PRESENT A FINANCING SOLUTION
WHEREAS, on June 3, 2014, in accordance with the City's Energy Roadmap
and Climate Action Plan, the City Council directed staff to solicit proposals pursuant to California
Government Code 4217, to design, install, and finance sustainability improvements within
municipal facilities; and
WHEREAS, in July 2014, the Engineering and Public Works Department
advertised a Request for Statement of Qualifications ("SOQ") for an energy services contract to
make sustainability improvements to City facilities under a guaranteed energy savings contract
that would provide energy -related capital improvement services through performance -based
contracting; and
WHEREAS, these services would include design, installation, maintenance, and
monitoring of energy and water saving upgrades at City facilities with a guarantee that monetary
savings will cover the cost of the upgrades; and
WHEREAS, of the two responses received, Ameresco Inc., received the highest
overall rating from a five -member selection committee; and
WHEREAS, the City desires to enter into an Energy Audit Agreement (Phase 1)
with Ameresco to conduct an Energy Audit of City facilities, develop a project scope of energy
and water saving measures, forecast savings, present a financing solution, and offer a
guarantee that cost savings will cover project costs; and
WHEREAS, in the event Ameresco is unable to identify enough savings to cover
the project costs, they will notify the City and cease activities under this contract at no charge to
the City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
National City hereby authorizes the Mayor to execute an Energy Audit Agreement (Phase 1)
with Ameresco to conduct an Energy Audit of City facilities, develop a project scope of energy
and water saving measures, forecast savings, present a financing solution, and offer a
guarantee that cost savings will cover project costs.
PASSED and ADOPTED this 15th day of December, 2015.
Ron Morrison, Mayor
ATTEST: APPROVED AS TO FORM:
Michael R. Dalla, City Clerk Claudia Gacitua Silva
City Attorney
CITY OF NATIONAL CITY
Office of the City Clerk
1243 National City Blvd., National City, California 91950
619-336-4228 phone / 619-336-4229 fax
Michael R. Dalla, CMC - City Clerk
AMERESCO, INC.
Energy Audit
Kathy Guzman (Public Works) Forwarded Copy
of Agreement to Ameresco, Inc.