HomeMy WebLinkAbout2009-183 PE 3 ORIGINAt
CHANGE ORDER NUMBER : 1
FORM OF CONTRACT CHANGE
CUSTOMER : Indian River County
CONTRACTOR: FPL Energy Services Inc
PROJECT : Phase I HVAC Improvements
DATE OF THIS CHANGE ORDER: 5 / 12!09 ("Contract Change Effective Date
CHANGE ORDER NUMBER : 1
This contract change order (" Contract Change' ) is dated and effective as of the Contract Change Effective
Date issued pursuant to the above referenced Release .
The Customer hereby authorizes the following modifications and changes to the Contract Documents :
( 1 ) ADDITIONAL SERVICES AUTHORIZED . The Customer hereby authorizes Contractor to perfonm
the following additional items of work (in addition to all other Services described in the
Contract
Documents ) and the Contract Price is increased accordingly by the amount set forth in the table made a part
of this Contract Change (the "Additional Compensation ') : (describe additional work fully ) .
ADD
Replace and install ( 1 ) 30 ton DX unit and ( 1 ) 20 ton DX unit at the North County library .
Demo existing 20 ton unit and 30 ton unit, condenser and ahu and dispose of off site .
Furnish and install new Trane 20 ton split system and Trane 30 ton spilt system .
Condensing to be factory coated coil .
New zone dampers and heat strip .
Fabricate and install ductwork as needed .
Replace expansion valves .
Replace drier cores .
Evacuate system .
Perfonm start up and check system operation .
Disconnect and reconnect to existing electrical .
Reuse existing disconnects .
Disconnect and reconnect existing controls .
Provide crane service .
Provide test and balance for both units .
Excluded Items : Anything not listed above .
No temporary cooling will be provided by FPL. ES .
(the " Additional Services' )
The Guaranteed Substantial Completion Date and the Guaranteed Final Acceptance Date are hereby
extended for a period of n,1a Days in order for the Contractor to perforin the Additional Services . The
extension applies only to the " Additional Services The Original Guaranteed Substantial Completion Date
and Guaranteed Final Acceptance Date remains in effect for the Original Scope of Services .
( 1 ) WORK DELETED FROM CONTRACTOR ' S SERVICES , The Customer hereby authorizes the
Contractor to delete and remove the following items of work from the Services authorized under
the
Contract Documents , and the Contractor is no longer authorized to perforin such work , and shall not
be
compensated for such work and the Contract Price is decreased accordingly by the amount set forth in the
table made a part of this Contract Change ( the " Compensation Reduction " ) : ( describe deleted work fullv ) .
DELETE
( the " Deleted Services" )
The Guaranteed Substantial Completion Date and the Guaranteed Final Acceptance Date are hereby
reduced by 0 Days as a result of the Deleted Services , TIME IS OF THE ESSENCE ,
ORIGINAL CONTRACT PRICE AMOUNT : 5687 . 396
AMOUNT OF PRIOR CONTRACT CHANGES : SO
CONTRACT CHANGE ADDITIONAL. COMPENSATION : $ 152 . 539
CONTRACT CHANGE COMPENSATION REDUCTION : SO
REVISED CONTRACT PRICE : 5839 , 935
The adjustment in the Guaranteed Substantial Completion Date and the Guaranteed Final Acceptance Date
shall apply only to the scope of work outlined by this Contract Change Order . The Original Guaranteed
Substantial Completion Date ( n.a ) and the Original Final Acceptance Date (ri'a ) shall remain in effect for
the Original Scope of' Services as defined in the release dated (n/a) . It is hereby understood
that , upon
authorization of this Contract Change by the Customer, the Contractor shall implement the above -
referenced Change( s ) . The above adjustments to the Guaranteed Substantial Completion Date , the
Guaranteed Final Acceptance Date , and/or Contract Price will constitute a full and complete settlement for
the Change( s ) and all issues related thereto . Except as set forth in this Contract Change , and in any other
contract chanes and written amendments signed by the Contractor, the Contract Documents remain in full
force and effect .
Changes in the Services . Contract Price , Guaranteed Substantial Completion Date or the Guaranteed Final
Acceptance Date may be authorized only by a Contract Change duly executed by the Customer
Representative .
In the event a revised contract price cannot be agreed to by both parties, the changes contained
in this
change order shall be billed/credited at the time and material rates provided below :
Time and Material Rate for Additional Scope Changes ( if applicable ) : N /A
Acknowledged by the Contractor : Authorized by the Customer :
FPL Energy Services , Inc . , INDIAN RIVER COUNTY
a Florida Corporation BOARD OF COUNTY COMMISSIONERS
BY : r ' / B :
NAME : Gregory I ffanlon Wesley S . Davis , Chairman
TITLE : Vice President & General Manager, Approved by BCC : June ? 3 , 2009
Florida Power & Li ht Energy Services , Inc . Attest : J . K . Barton, Clerk
DATE :
By
Deputy Clerk
Approved :
oseph A . 6aird, County Administrator
Approved as to form and legal sufficiency :
Marian E . Fell ,
Senior Assistant County Attorney
Indian River Co . r ved D . te
Administration
Legal GL
Budget
Department
Risk Managment
ENERGY SAVINGS GUARANTEE
FPL ENERGY SERVICES , INC , herein after referred to as "The COMPANY" , guarantees that , during each
Guarantee Report period during the Savings Guarantee Term , the Equipment shall be capable of producing
Annual Energy Cost Savings (defined below) in an amount equal to or greater than Annual Guaranteed
Savings ( defined below) for such annual period , subject to the OWNER ' s , herein after referred to as " OWNER " ,
operation of the Equipment per the Operating Plan , adjustments which the COMPANY is entitled to make per
the terms of this Savings Guarantee , and all other terms of this Savings Guarantee ,
This Savings Guarantee only applies to the designated Equipment specified in this Savings Guarantee
.
Attachments and Exhibits to this Savings Guarantee are incorporated by reference .
SECTION 1 . BASIC REQUIREMENTS OF THIS SAVINGS GUARANTEE
(A) DEFINITIONS .
Initially capitalized terms in this Savings Guarantee have the meaning described in Section 2 ,
and in the
absence of such definition , as the context reasonably requires .
( B ) OWNER CONTROLLED VARIABLES AND OPERATING PLAN
( 1 ) For purposes of this Savings Guarantee , the OWNER represents , warrants , and agrees to
operate the Equipment as required in the Operating Plan , to properly maintain ( and replace , when necessary)
the Equipment , to protect against and replace in the event of any casualty , and not to undertake any Changes
which would adversely affect or reduce the Annual Energy Cost Savings
(2 ) In the event of any failure of the OWNER to operate per the Operating Plan or in the event of
any Changes , the OWNER agrees to notify the COMPANY in writing within five ( 5 ) business days of any actual ,
anticipated , or intended variation from the Operating Plan or other Changes , whether before Substantial
Completion or during the Savings Guarantee Term , which could impact any facility or Equipment to which this
Savings Guarantee applies Upon receipt of such a notice , or in any event if the COMPANY independently
learns of any such Changes , COMPANY shall be entitled to adjust the Annual Energy Cost Savings to reflect
Annual Energy Cost Savings to exclude any adverse impact of any such Changes .
( 3 ) Subject to the COMPANY preparing and submitting the annual Guarantee Report to the
OWNER (with adjustments as described in this Savings Guarantee ) , this Savings Guarantee is based upon
M &V Option A as detailed in this Guarantee .
( C ) UNDERSTANDING UTILITY BILLS
( 1 ) This Savings Guarantee and the Annual Energy Cost Savings in any Guarantee Report is not
a representation , guarantee , or warranty that the actual dollar amount of utility bills of the
OWNER will be
reduced or lower than before , as so many other factors affect utility bills This is only a guarantee
that the
Annual Energy Cost Savings will meet or exceed the Annual Guaranteed Savings during each respective
annual measurement period during the Savings Guarantee Term if the Equipment is operated as required by
the Operating Plan . As the OWNER has sole custody and control over the Equipment and any Changes , the
COMPANY is permitted to adjust the Annual Energy Cost Savings so that the impact of any Changes are not
attributed against COMPANY and so that the Annual Energy Cost Savings calculation is not adversely affected
by Changes .
( 2 ) Cost savings , and actual utility bills , are two completely different concepts . Actual utility bills
can be affected by many different reasons in the sole control of the OWNER , such as the OWNER changes in
building occupancy , hours or times of day of use , the way that Equipment ( or equipment not installed by
the
COMPANY) is operated ( hours , load level , environmental conditions , etc . ) , and maintenance . Actual utility bills
can also be affected by increases in utility rates and government imposed taxes .
Indian River County , Florida 1 Indian River County Phase 1
Phase I Rev . 06/09
( 3 ) This Savings Guarantee and any achievement of the Annual Guaranteed Savings does not
directly represent nor depend upon the OWNER actual utility bills , and is not a guarantee of a lower utility bill
in
terms of absolute dollars .
( D ) SAVINGS DETERMINATION METHODOLOGY
( 1 ) The 2000 Federal Energy Management Program ( FEMP ) M &V Guidelines Version 2 . 2 and 2002
International Performance Measurement and Verification Protocol ( " IPMVP " ) are voluntary consensus
documents written by and for technical , procurement and financial personnel in government , commerce , and
industry . The FEMP M &V Guideline and IPMVP provide an overview of current measurement & verification
( M &V) techniques and set the framework for verifying third - party-financed energy projects for public
( including Federal ) and private-sector projects . They dictate that energy ( or water) savings are determined
by comparing the energy ( or water) use associated with a facility or certain systems within a facility before
and after the installation of an energy conservation measure ( ECM ) or other measure . The " before " case is
called the baseline . The " after" case is called the post- installation , or performance , period . Baseline and
post- installation energy use measurements or estimates can be constructed using the methods associated
with M &V Options as described in these guidelines . The challenge of M &V is to balance
M &V costs ,
accuracy , and repeatability with the value of the ECM ( s ) or systems being evaluated , and to increase
the
potential for greater savings by careful monitoring and reporting . Therefore , the Protocol recommends
Options A ( Partially Measured Retrofit Isolation ) for the measured savings portion or non - stipulated/ non -
calculated portion . Attachment 7 contains a detailed summary of both verification methods .
(2 ) THE ANNUAL GUARANTEE REPORT . Commencing upon the anniversary of the Final
Acceptance Date , and upon each anniversary thereafter occurring during the Savings Guarantee Term ( subject
to a reasonable amount of preparation time for the COMPANY) , the COMPANY shall deliver an
annual
Guarantee Report to the OWNER . Such annual Guarantee Report shall provide the results and supporting
information of the COMPANY' S calculation of the Annual Energy Cost Savings and compare the
Annual
Energy Costs Savings to the Annual Guaranteed Savings .
( 3 ) This savings guarantee has been structured to comply with provisions of F . S 1013 . 23 ( 2 )c2 which
provides that the amount of annually guaranteed savings must , . . meet or exceed total annual
contract
payments made by the county . . . " . Total annual contract payments , as determined by a separate third
party
finance agreement, are inclusive of all costs associated with this program to include all development
and
implementation , financing and interest, bonding , and feasibility study costs .
SECTION 2 . DEFINITIONS : References in this Savings Guarantee to exhibits or other attachments
serves to incorporate by reference such exhibits and other attachments into this Savings Guarantee .
The following initial capitalized terms in this Savings Guarantee have the meaning set forth below .
"Agreement" means the Energy Services Agreement entered into between INDIAN RIVER COUNTY ,
FLORIDA and FPL ENERGY SERVICES , INC .
"Annual Energy Cost Savings " means , for each respective annual Guarantee Report period , the
total of ( 1 ) the Measured Load Reduction times the Contract Utility Rates calculated for such period ,
plus (2 )
the Measured Load Shift times the difference between the applicable On Peak Rate Categories and Off Peak
Rate Categories , calculated for such period , plus ( 3 ) any Calculated Savings for such period .
"Annual Guaranteed Savings " means such level of Annual Energy Cost Savings to be exactly equal
to the amount of the regularly scheduled payments to be made by the OWNER for the Equipment under the
Agreement for the respective annual Guarantee Report time period , as calculated by the COMPANY .
" Changes " means any deviation , modification , alteration , or change from ( 1 ) OWNER operation of the
Equipment as required in accordance with the Operating Plan and/or ( 2 ) OWNER use or operation
of its
facilities as observed by the COMPANY at the time of its inspections . Without limitation , changes include any
conditions which may , do , or are reasonably expected to alter the use of any Equipment or to
impact the
Indian River County , Florida 2 Indian River County Phase 1
Phase I Rev . 06/09
Annual Energy Cost Savings , and include (without limitation ) changes in the primary use of any facility covered
by this Savings Guarantee , changes to operating hours , levels of use , occupancy , changes to utility suppliers ,
method of utility billing or utility purchasing , any casualty , loss , destruction of Equipment, any changes
to the
Equipment or any facility , any failure to adequately or properly maintain Equipment. For purposes of clarity ,
conditions that are deemed to be Changes need not be specifically identified as an underlying assumption or
baseline by COMPANY .
" Contract Utility Rates " means the rates set forth in Attachment 2 ( applicable for the entire Savings
Guarantee Term ) . The rates shall be the prevailing utility rates plus all surcharges and taxes in
effect and
applicable to the OWNER as in effect on the date of this Guarantee .
" COMPANY" has the meaning in the Agreement, FPL ENERGY SERVICES , INC .
" Equipment" means the Load Reduction Equipment and the Load Shift Equipment .
" Final Acceptance Date " means the date that the COMPANY and the OWNER designate all work
associated with the Equipment/Project is complete
"Guarantee Report" means the respective annual report issued by the COMPANY to the OWNER ,
during each calendar year anniversary occurring during the Savings Guarantee Term which provides
the
results and supporting information of the COMPANY' S calculation of the Annual Guaranteed Savings ,
conducted per the Post Installation Measurement( s ) , and as adjusted by the COMPANY in accordance with this
Savings Guarantee .
" Load Reduction Equipment" means those items of Equipment , which are to achieve load reduction
as designated by the COMPANY in the Guarantee Report .
" Load Shift Equipment" means those items of Equipment, which are to achieve load shift as
designated by the COMPANY in the Guarantee Report,
" Measured Load Reduction " means the difference between the OWNER electric energy load from
(A) the pre-existing equipment which was retrofitted and/or replaced by the COMPANY with the Load
Reduction Equipment, and ( B ) the greater of ( 1 ) OWNER actual use of the Load Reduction Equipment or (
2 )
the agreed upon level of use of the Load Reduction Equipment in accordance with the Operating Plan .
" Measured Load Shift" means the amount of the OWNER electric energy load shifted from (A) the
use of non- Load Shift Equipment ( identified at the time of the Pre- Installation Measurement) during the
On
Peak Rate Categories to ( B ) the greater of ( 1 ) OWNER actual use of the Load Shift Equipment
or (2 ) the
agreed upon level of use of the Load Shift Equipment in accordance with the Operating Plan .
" Measured Savings " means ( 1 ) the Measured Load Reduction times the Contract Utility Rates
calculated for such period , plus ( 2 ) the Measured Load Shift times the difference between the applicable
On
Peak Rate Categories and Off Peak Rate Categories , calculated for such period .
" Off Peak Rate Categories " means the lower of ( 1 ) any applicable off peak rate categories or non -
prime rate categories of the utility providing service to the OWNER as in effect on the date of the Agreement, or
(2 ) any applicable off peak rate categories or non -prime rate categories of the utility providing service
to the
OWNER as in effect on the date of the COMPANY' S delivery of the respective annual Guarantee Report to the
OWNER . The COMPANY' S calculation of the Off Peak Rate Categories shall include and be based upon a
calculated and imputed escalation rate set forth in the Exhibits to this Savings Guarantee , which the
COMPANY and the OWNER agree to be a reasonable rate of historic increase for purposes of calculating this
Savings Guarantee ( and for no other purpose ) .
" On Peak Rate Categories " means the greater of ( 1 ) any applicable on peak rate categories or prime
rate categories of the utility providing service to the OWNER as in effect on the date of the Agreement, plus
all
surcharges and taxes applicable thereto , or (2 ) any applicable peak rate categories or prime rate categories of
Indian River County , Florida 3 Indian River County Phase 1
Phase I Rev . 06/09
the utility providing service to the OWNER as in effect on the date of the COMPANY' S delivery of the respective
annual Guarantee Report to the OWNER , plus all surcharges and taxes applicable thereto . The COMPANY' S
calculation of the On Peak Rate Categories shall include and be based upon a calculated
and imputed
escalation rate set forth in the Exhibits to this Savings Guarantee , which the COMPANY and the OWNER
agree to be a reasonable rate of historic increase for purposes of calculating this Savings Guarantee ( and for
no other purpose) .
"Operating Plan " shall mean the OWNER operation of the Equipment in accordance with the
operating plan in Attachment 1 which is incorporated by reference , including but not limited to the committed
level and hours of use by the OWNER of the Load Reduction Equipment and the Load Shift Equipment
as
listed in the Operating Plan .
" Owner" has the meaning in the agreement, Indian River County , Florida .
"Savings Guarantee " means this Savings Guarantee and all of its terms and conditions .
"Savings Guarantee Term " means the time period during which the OWNER is making regularly
scheduled payments under the Agreement for the Equipment specified in this Savings Guarantee ( and not any
other equipment which may be covered by the Agreement) , provided however, that notwithstanding such longer
payment period under the terms of the Agreement, the Savings Guarantee Term shall not exceed ten (
10 )
years from the date of final acceptance by the County .
" Stipulated or Calculated Savings " means those additional savings associated with the Equipment
which the OWNER and COMPANY have mutually agreed upon as being realized by the OWNER as set forth
in the Operating Plan or other exhibits/attachments to this Savings Guarantee , including but not
limited to
Attachment 3 . Stipulated ( or calculated ) Savings do not need to be measured or monitored , and
are not
subject to verification in the Post Installation Measurement. By example , Calculated Savings may consist of
maintenance cost savings or other savings , which are difficult to measure or monitor on an ongoing basis .
" Substantial Completion " means the date that the COMPANY designates the Equipment as
substantially installed and available for operation and use by the OWNER , excluding minor punch list
items
which do not affect the use or operation of the Equipment as a whole .
SECTION 3 . SAVINGS GUARANTEE
Subject to all terms of this Savings Guarantee , during the Savings Guarantee Term the COMPANY
guarantees that, for each annual Guarantee Report period , the Equipment shall , if operated in accordance with
the Operating Plan , produce Annual Energy Cost Savings in an amount equal to or greater than
Annual
Guaranteed Savings for such annual period .
All of the COMPANY' S obligations under this Savings Guarantee , as to each time period covered by
each annual Guarantee Report , shall be deemed fully satisfied and performed (A) upon presentation to
the
OWNER of the annual Guarantee Report which indicates that the Annual Energy Cost Savings meets or
exceeds the Annual Guaranteed Savings for such respective annual period , or ( B ) when payment is made , if
required , pursuant to the sole and exclusive remedy described in Section 5 ( B ) of this Savings
Guarantee .
Thereafter, during any annual measurement period , the COMPANY shall not be further obligated to monitor ,
measure , extrapolate , or prove any Annual Energy Cost Savings for that or any prior time period .
SECTION 4 . THE ANNUAL GUARANTEE REPORT PROCEDURE
(A) The Annual Energy Cost Savings shall be determined by the COMPANY in an annual
Guarantee Report and based upon the COMPANY' S baseline calculations as described in Attachment 6 and
subject to adjustments by the COMPANY for any Changes . Within ninety ( 90 ) days following the
first
anniversary of the final acceptance and each anniversary thereafter during the Savings Guarantee Term , the
COMPANY shall apply current data to update any necessary baseline calculations for the Changes and provide
Indian River County , Florida 4 Indian River County Phase 1
Phase I Rev . 06/09
the OWNER with a copy of the respective annual Guarantee Report for that annual time
period . The
COMPANY' S updated calculations shall be in accordance with this Savings Guarantee , and to the extent of
calculating and adjusting for any Changes , shall be in accordance with trade industry standards and practices ,
and the COMPANY' S updated calculations ( including but not limited to adjustments for Changes ) shall be final
and conclusive . The OWNER shall retain the right to review and approve , which approval
shall not be
unreasonably withheld , the data collection process , and the data to be used in updating the baseline
calculations . Such review may be conducted by a qualified , independent contractor selected by the OWNER ,
and approved by the COMPANY .
( B ) In connection with each annual Guarantee Report, the COMPANY may also conduct a brief
energy audit inspection of the OWNER facilities . This shall enable the COMPANY to determine what types of
Changes the OWNER has made to its facility , business , or operations ( including , but not limited to , Changes ) .
( C ) If a Guarantee Report indicates that the respective Annual Energy Cost Savings for the then
current annual Guarantee Report period is at least equal to the Annual Guaranteed Savings amount for such
annual period , then the COMPANY shall be deemed to have achieved and performed the Savings Guarantee
for such annual period and shall not have any further obligation under this Savings Guarantee for such annual
period or any prior annual period , and shall not be obligated to take any further action until the next scheduled
annual Guarantee Report period
( D ) In the event of the OWNER removal , destruction , substitution , modification , or other alteration
of the Equipment , any Changes , or the OWNER failure to operate the Equipment for the hours or at the levels
set forth in the Agreement or this Savings Guarantee ( including , but not limited to , Changes ) , the COMPANY
may adjust the Annual Energy Cost Savings to reflect savings as if the OWNER had not made
any such
Changes and as if the OWNER had continued to operate the Equipment in accordance with the Operating
Plan , and this adjustment shall apply for all purposes of the Guarantee Report and calculation of the
Annual
Energy Cost Savings and satisfaction of this Savings Guarantee .
SECTION 5 . EXCLUSIVE REMEDIES OF OWNER
( A) Prior to delivery of any annual Guarantee Report , in the event that such Guarantee Report
would indicate that the Equipment will otherwise fail to produce Annual Energy Cost Savings in an amount at
least equal to the Annual Guaranteed Savings for such annual period ( and such situation is not caused by the
OWNER failure to operate the Equipment per this Savings Guarantee ) , the COMPANY may , on one or more
occasions , take action to cause the Annual Energy Cost Savings to equal or exceed the Annual Guaranteed
Savings , including but not limited to fine tuning of Equipment , the addition of implementation methods ,
operation methods , or energy conservation measures which increase the Annual Energy Cost Savings . In any
such remedy case , the COMPANY shall provide the OWNER with notice of any such activity including
an
annual Guarantee Report , which will provide the appropriate details . Any such action shall not
adversely
impact facility operations nor impede on normal facility functionality .
( B ) The COMPANY may take all other actions to help the Annual Energy Cost Savings equal or
exceed the Annual Guaranteed Savings , including but not limited to the addition of implementation methods ,
operation methods , or energy conservation measures which increase the Annual Energy Cost Savings . The
OWNER shall have the right to review and approve , which approval shall not be unreasonably withheld , any
such action to ensure that they do not adversely impact facility operations nor impede on
normal facility
functionality .
( C ) If, after taking the actions described above (which the COMPANY shall describe to
the
OWNER in the Guarantee Report) and performing any follow up which the COMPANY deems necessary , such
Guarantee Report still indicates that the Annual Energy Cost Savings in such Guarantee Report is not at least
equal to the Annual Guaranteed Savings amount for such annual period , then the COMPANY shall pay to the
OWNER an amount equal to the difference for such respective annual period between the Annual Guaranteed
Savings amount and the Annual Energy Cost Savings in such annual Guarantee Report. This shall only be for
Indian River County , Florida 5 Indian River County Phase 1
Phase I Rev . 06/09
the then current annual Guarantee Report and shall not affect any prior or any future annual Guarantee Report.
The OWNER agrees not to offset, deduct, set-off, withhold , or delay any payment due under the Agreement.
This is the OWNER sole and exclusive remedy under this Savings Guarantee , and no other rights or remedies
are granted .
SECTION 6 . EXCLUSIONS AND LIMITATIONS
(A) THE SOLE AND EXCLUSIVE REMEDY OF INDIAN RIVER COUNTY UNDER THIS
SAVINGS GUARANTEE IS SPECIFICALLY STATED ABOVE , EXCEPT AS SET FORTH ABOVE IN THIS
SAVINGS GUARANTEE , THE COMPANY HAS NOT MADE AND DOES NOT HEREBY MAKE ANY
WARRANTY , EXPRESS OR IMPLIED , AS TO ANY MATTER WHATSOEVER , INCLUDING WITHOUT
LIMITATION , THE CONDITION , MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF
ANY EQUIPMENT OR THE REDUCTION IN THE OWNER ENERGY USAGE AS A RESULT OF THE
INSTALLATION AND OPERATION OF ANY EQUIPMENT .
( B ) THE COMPANY SHALL NOT BE RESPONSIBLE FOR INCIDENTAL , INDIRECT, PUNITIVE ,
OR CONSEQUENTIAL DAMAGES , INCLUDING BUT WITHOUT LIMITATION , PROPERTY DAMAGE
RESULTING FROM , OR RELATED TO THE AGREEMENT OR THE EQUIPMENT ( INCLUDING BUT NOT
LIMITED TO THE MALFUNCTION OR MISOPERATION THEREOF ) , BODILY INJURY , MENTAL ANGUISH ,
MENTAL INJURY OR DISEASE , LOSS OF PROFITS , AND GOODWILL , REGARDLESS OF THE CAUSE
OR BASIS OF SUCH ACTION , WHETHER IN STRICT LIABILITY, CONTRACT, TORT, OR OTHERWISE .
IN WITNESS WHEREOF , and intending to be legally bound , the parties hereto subscribe their
names to this Contract by their duly authorized officers on the date first above written ,
FPL ENERGY SERVICES , INC INDIAN RIVER COUNTY_
By :
/7 44yot�
Name : Greg T . Hanlon Name : Wesley S . Davis, Chairman
Title : Vice President and General Manager Title : Chairman Board � o County Comm issicriers
Approved by BCC : June 23 , 2009
APPROVED AS TO FORM : & LEGAL SUFFICIENCY
Indian Riv r Co my Attorne
/?y
' Name :
Title :
ATTEST : J . K . Barton , Clerk
Approved :
Deputy Clerk oseph A . Baird , County Administr for
Indian River County , Florida 6 Indian River County Phase 1
Phase I Rev . 06/09
ATTACHMENT 1
Multiple copies of this document shall be provided for each facility/area for which different
occupancy
information applies .
ANNUAL LIGHTING HOURS
Facility Average Hours
of Operation
Courthouse 5265
Main Library 3463
North Library 3490
Sheriff's Office 3628
Road and Bride 3015
Indian River County , Florida 7 Indian River County Phase 1
Phase I Rev . 06/09
ATTACHMENT 2
Contract Utility Rates
The Contract Utility Rates for first year during the Savings Guarantee Term are set forth below and shall
be
used for all calculations made under this Agreement.
Electrical Data
Average 200748 Electrical Rates
Facility $ / kWh $ / kWD Blended Utility
$ / Kwh
Courthouse 0 . 1100 3 . 81 0 . 1155 Vero
Main Library 0 . 1010 4 . 16 0 . 1092 Vero
North Libraty 0 . 0804 7 . 36 0 . 1045 FPL
Sheriff's Office= Admin 0 . 1114 3 . 81 0 . 1317 Vero
Sheriff's Office= Garage 0 . 1031 3 . 81 0 . 1196
Road and Bridge 0 . 1166 3 . 81 0 . 1271 Vero
Water & Sewer Data
Combined
Facility Water/Sewer rate
$�00 gal )_._
Courthouse 5 . 70
Main Library 5 . 70
North Libraty 10 . 38 _
Sheriff's Office 5 . 60
Road and Bride 4 . 31
Indian River County , Florida 8 Indian River County Phase 1
Phase I Rev . 06/09
ATTACHMENT 2 -A
% Utility Rates Escalation Rates (these are historical averages used for developing savings
estimates only and are not binding as it pertains to this Guarantee )
Year Electricity Water Maintenance
1 0 % 0 % 0 %
2 3 % 5 % 3 . 5%
3 3 % 5 % 3 . 5 %
4 3 % 5 % 3 . 5%
5 3 % 5 % 3 . 5%
6 3 % 5 % 3 . 5%
7 3 % 5 % 3 . 5%
8 3 % 5 % 3 . 5%
9 3 % 5 % 3 . 5%
10 3 % 5% 3 . 5 %
11 3 % 5% 3 . 5 %
12 3 % 5% 3 . 5%
The rates set forth above shall be based upon a compounding of the immediately preceding year' s
escalated rate ( i . e . compounded escalation annually ) .
Indian River County , Florida 9 Indian River County Phase 1
Phase I Rev . 06/09
ATTACHMENT 3
DESCRIPTION OF CALCULATED SAVINGS
Lighting Material Savings ( ECM - 1 )
Lighting material calculated savings and the associated assumptions are provided for each facility in
the
report titled , " Indian River County Phase I Feasibility Study" . This report is incorporated into this Guarantee
Document .
HVAC Savings due to Lighting Reduction ( ECM - 1 )
HVAC calculated savings due to lighting and the associated assumptions are provided for each facility in the
report titled , " Indian River County Phase I Feasibility Study" . This report is incorporated into this Guarantee
Document .
Occupancy Sensors - Savings due to Lighting Reduction ( ECM -2 )
Occupancy Sensor calculated savings due to lighting and the associated assumptions are provided for each
facility in the report titled , " Indian River County Phase I Feasibility Study" . This report is incorporated into
this
Guarantee Document .
Indian River County , Florida 10 Indian River County Phase 1
Phase I Rev . 06/09
SUMMARY OF CALCULATED SAVINGS
The savings identified below shall be Calculated Savings which are mutually agreed by OWNER and the
COMPANY , but will not be specifically measured . The Calculated Savings shall be deemed to increase
during each year of the Savings Guarantee Term by the annual escalation percentages set forth below , with
such escalation being annually compounded upon the immediately preceding year escalated rate .
Source of Savings First Year Savings ( non — Annual
escalated ) Escalation
LIGHTING MATERIAL SAVINGS ( ECM - 1 ) $ 50649 0 %
HVAC SAVINGS DUE TO LIGHTING $80946 0 % ( 15` yr) , 3%
REDUCTION ( ECMA ) (Yrs 2 = 12 )
OCCUPANCY SENSORS ( ECM4 ) $49885 0 % ( 1 " yr) , 3 %
( Yrs 2 = 12 )
TOTAL CALCULATED SAVINGS $ 19 ,480 N/A
Indian River County , Florida 11 Indian River County Phase 1
Phase I Rev . 06/09
ATTACHMENT 4
Measure Specific Lighting Savings
Per Option A , Pre measurements with annual post spot measurements will be taken to establish energy
consumption , for a representative sample of the lights , and pre measurement at full load , with annual post spot
measurements for the lighting . These measurements will be accomplished through the use of hand held
meters and/or mounting of temporary meters ( by FPL ENERGY SERVICES , INC ) . The results will be used to
prorate the calculated savings , thus determining the adjustment ( +/- ) , to be used in the comparison with
the
Guaranteed Savings .
Equations for Calculating Lighting Energy and Demand Savings
To determine estimates of energy savings for lighting efficiency projects use the following equation :
kWh Savingst = ( (kW/Fixturebaserne x Quantitybase,;,,e - kW/Fixturepost x Quantitypo J x Hours of
Operation]r, ,,
where :
KWh Savings = kilowatt- hour savings realized during the post- installation time
period t
KW/fixturebasetine = lighting baseline demand per fixture for usage group u
kW/fixturepost = lighting demand per fixture during post- installation period for
usage group u
Quantitybaserine = quantity of affected fixtures before the lighting retrofit for usage
group u , adjusted for inoperative and nonoperative lighting fixtures
Quantitypost = quantity of affected fixtures after the lighting retrofit for usage
group u
Hours of Operation = number of operating hours during the time period t for the usage
group u , assuming operating hours are the same before and after
measure installation
Demand
Demand savings can be calculated as either an average reduction in demand or as a maximum reduction in
demand
Average reduction in demand is generally easier to calculate . It is defined as kWh savings during the
time
period in question ( e . g . utility summer peak period ) divided by the hours in the time period .
Maximum demand reduction with respect to cost savings , is typically the reduction in utility meter maximum
demand under the terms and conditions specified by the servicing utility . For peak load reduction , for example ,
the maximum demand reduction may be defined as the maximum kW reduction averaged over 30-minute
intervals during the utility' s summer peak period . The maximum demand reduction is usually calculated
to
determine savings in utility peak demand charges .
Annual Reconciliation
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The annual reconciliation is based on the difference between guaranteed savings and measured savings
extrapolated from representative measured sampling . Excess savings will be left to OWNER . A shortfall in
any given year would be funded by FPL ENERGY SERVICES , INC to the OWNER . Option A will be used for
Measurement and Verification .
Sample Lighting Savings Calculation
Monthly Kilowatt Demand X Monthly Kilowatt Demand Rate X 12 Months =
Annual Kilowatt Demand Savings
Annual Kilowatt- hours X Kilowatt- hour rate = Annual Kilowatt- hour Savings
Annual Kilowatt Demand Savings + Annual Kilowatt- hour Savings = Total Annual Savings
Example Calculation ( Courthouse ) :
71 . 44 kW x $ 3 81 / kW x 12 months = $ 3 , 266 . 24
344564 . 97 kWh x $ 0 . 10995/kWh = $ 37 , 884 . 92
$ 3 , 266 . 24 + $ 37 , 884 . 92 = $41 , 151
Total Guaranteed Savings $41 , 151 ( Courthouse )
Total Lighting Savings for all locations : $ 65 , 586
Run hours are hereby stipulated .
Measured Adjusted Savings Calculation :
Percentage of Measured Values vs . Calculated Values x Total guaranteed Savings = Excess Savings or
Shortfall in Savings
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Measure Specific Water Savings
Per Option A, Pre measurements with annual post spot measurements will be taken to establish
water
consumption , for a representative sample of Water Closets , Urinals and Faucets , and pre measurement, with
annual post spot measurements for the Water Conservation Measure . These measurements will be
accomplished through the use of a calibrated bucket. The results will be used to prorate the calculated savings ,
thus determining the adjustment ( +/-) , to be used in the comparison with the Guaranteed Savings .
Equations for Calculating Water Savings
To determine estimates of water savings use the following equation :
Gallons Savingst = lu ( (Gal/Flushhaseine x Quantitybaseiine - Gal/Flushpost x Quantityposd x Number of
Occupants]t „
where :
Gallons Savings = gallon savings realized during the post- installation time period t
Gal/Flushbaseiine = Gallons baseline per flush for usage group u
Gal/ Flushpost = Gallons per flush during post- installation period for usage group u
Quantitybaseiine = quantity of affected fixtures before the water conservation retrofit
for usage group u and the number of flushes
Quantityp,st = quantity of affected fixtures post water conservation retrofit for
usage group u and the number of flushes
Number of Occupants = number of people during the time period t for the usage group u ,
assuming number of people are the same before and after
measure installation
The Measured First Year Water Savings for all facilities = $ 6 , 185 . This savings will be measured /verified as
stated above and converted to savings by applying the flow measurements , water and sewer consumption
rates , the usage rates and individual facilities ' occupancy as stated in the Reports . The usage
rates and
occupancy are hereby stipulated .
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ATTACHMENT 5
Annual Guaranteed Savings Allocation
Savings Annual
Guarantee Measured Calculated Guaranteed
Term Year Savings Savings Energy Cost
Savings
1 $ 719771 $ 19 ,480 $ 91 , 251
2 $ 74 , 048 $ 19 , 895 $ 93 , 943
3 $ 76 , 399 $ 20 , 323 $96 , 722
4 $ 78 , 828 $20 , 763 $ 99 , 591
5 $ 81 , 336 $211216 $ 102 , 552
6 $ 839926 $ 21 , 683 $ 105 , 609
7 $86 , 602 $ 22 , 164 $ 108 , 766
8 $ 899365 $22 , 660 $ 112 , 025
9 $ 92 , 220 $23 , 170 $ 115 , 386
10 $95 , 170 $ 23 , 696 $ 118 , 848
TOTAL $829 , 665 $ 215 , 049 $ 1 , 044 , 693
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ATTACHMENT 6
Guarantee Report
Within ninety ( 90 ) days following the final acceptance and each anniversary thereafter during the
Savings
Guarantee Term , the COMPANY shall provide the Guarantee Report to OWNER . In the Guarantee Report ,
the COMPANY shall calculate the Annual Energy Cost Savings and shall report to OWNER such amount
( and shall detail any excess savings where the Annual Energy Cost Savings exceed the Annual
Guaranteed Savings ) during the preceding year.
Annual Guaranteed and Excess Savings Allocation
Savings Measured Calculated Actual Savings Annual Excess
Guarantee Savings Savings Guaranteed Savings
Term Year Energy Cost
Savings
1 $ 19 , 480 $ 91 , 251 %
2 $ 19 , 895 $ 93 , 943 %
3 $ 20 , 323 $ 967722 %
4 $ 20 , 763 $ 99 , 591 %
5 $ 217216 $ 1021552 %
6 $ 217683 $ 105 , 609 %
7 $22 , 164 $ 108 , 766 %
8 $ 22 , 660 $ 112 , 025 %
9 $23 , 170 $ 115 , 386
10 $239696 $ 118 , 848
Totals $215 , 049 $ 1 , 044 , 693
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ATTACHMENT 7
Summary of Measurement and Verification Options
All the methods in the FEMP/ IPMVP Guideline for determining savings are based on the same concept,
namely , those energy savings are derived by comparing energy usage after a retrofit to the baseline . It
is
relatively easy to measure post- retrofit consumption ; however, it is impossible to " measure" what the energy
usage would be without the retrofit . Therefore , it is impossible to " measure " energy savings .
Energy savings can only be determined based on assumptions about the baseline . Four options
are
provided to determine energy savings . A particular option is chosen based on the on project-
specific
features of each performance contract.
The options differ in their approach to the level and duration of the retrofit verification measurements .
For
instance , Options A and B both apply at the system or ECM level , while Option C uses measurements taken
at the whole - building , or whole-facility , level . Option A involves short-term ( if any) measurements ,
while
Options B and C use short term and/or continuous or regular interval measurements during the term of the
contract . Option D involves computer simulation techniques .
Each option has advantages and disadvantages based on site -specific factors .
The four options are described in the table below .
Overview of M &V Options (from the FEMP/ IPMVP )
M &V option How savings are Typical Applications
calculated
A Partially Measured Retrofit Isolation Engineering calculations Lighting retrofit where
using short-term or power draw is measured
Savings are determined by partial field continuous post- retrofit periodically . Application
measurement of the energy use of the measurements and of controls to vary the
system ( s ) to which an ECM was applied ; stipulations . load on a constant speed
separate from the energy use of the rest of the pump using a variable
facility . Measurements may be either short- speed drive Power
term or continuous . draw is measured on a
spot basis , while varying
Partial measurement means that some but not load . Operating hours of
all parameter( s ) may be stipulated , if the total are specified/ stipulated .
impact of possible stipulation error( s ) is not
significant to the resultant savings . Careful
review of the ECM design and installation will
ensure that stipulated values fairly represent
the probable actual value .
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M &V option How savings are Typical Applications
calculated
B . Retrofit Isolation Engineering Application of controls to
calculations using short vary the load on a
Savings are determined by field term or continuous constant speed pump
measurement of the energy use of the measurements . using a variable speed
systems to which the ECM was applied , drive . Electricity use is
separate from the energy use of the rest of measured by a kWh
the facility . Short-term or continuous meter installed on the
measurements are taken throughout the electrical supply to the
post- retrofit period . pump motor . In the base
year this meter is in
place for a usually week
to verify constant
loading . The meter is in
place periodically
throughout the post-
retrofit period to track
variations in energy use .
C . Whole Facility Analysis of whole facility Multifaceted energy
utility meter or sub- management program
Savings are determined by measuring energy meter data using affecting many systems
use at the whole facility level . Short-term or techniques from simple in a building . Energy use
continuous measurements are taken billing comparison to is measured by the gas
throughout the post- retrofit period . regression analysis and electric utility meters
for a twelve month base
year period and
throughout the post.
retrofit period ,
D . Calibrated Simulation Energy use simulation , Multifaceted energy
calibrated with hourly management program
Savings are determined through simulation of utility billing data and/or affecting many systems
the energy use of components or the whole end - use metering in a building where no
facility Simulation routines must be base year data are
demonstrated to adequately model actual available . Post- retrofit
energy performance measured in the whole period energy use is
facility . This option usually requires measured by the gas
considerable skill in calibrated simulation , and electric utility meters
or sub- metering . Base
year energy use is
determined by simulation
using a model calibrated
by use of sub - metering .
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Option A-Spot Measured Savings
The verification techniques for Option A determine savings by measuring the capacity or efficiency
of a
system before and after a retrofit and by multiplying the difference by an agreed - upon or " stipulated " factor
,
such as hours of operation or load on the system . Option A is best applied to individual loads
or systems
within a building , such as a lighting system or chiller.
Option A is an approach designed for projects in which the potential to generate savings must be verified
,
but the actual savings can be stipulated based on the results of the " potential to generate savings "
verification and engineering calculations ( and perhaps on short-term data collection ) . Post- installation
energy use is not measured throughout the term of the contract . Post- installation and perhaps baseline
energy use is predicted using an engineering or statistical analysis of information that does not involve long -
term measurements . Data from the estimates may come from historical data , information from other similar
projects , and /or spot or short-term metering before and after ECM or system installation during the first year-
of
earof operation . Spot savings is the easiest and least expensive method
of determining savings .
Option A includes procedures for verifying that :
• Baseline conditions have been properly defined .
• The equipment and/or systems that were contracted to be installed have been installed .
• The installed equipment/systems meet contract specifications in terms of quantity , quality , and rating
The installed equipment is operating and performing in accordance with contract specifications and is
meeting all functional tests .
• The installed equipment/systems continue , during the term of the contract , to meet contract
specifications in terms of quantity , quality , rating , operation , and functional performance .
This level of verification is all that is contractually required for certain types of performance contracts .
The
potential to generate savings may be verified through observation , inspections , and/or spot/short-term
metering conducted immediately before and /or immediately after installation Annual ( or some other regular
interval ) inspections may also be conducted to verify an ECM ' s or system ' s continued potential to generate
savings . Savings potential are quantified using computational methods
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Option B -Measured Specific Savings
Verification techniques for Option B are designed for projects in which short term or long -term/continuous
measurement of performance is desired . Under Option B , individual loads are either measured via short
term or continuously monitored after ECM or system installation to determine performance . This measured
performance is compared with a baseline model to determine savings . Option B relies on
the direct
measurement of end uses affected by the retrofit .
Option B is for projects in with more complex ECMs ( than Option A ) , which can be isolated .
The savings
must be verified and the actual energy use during the contract term needs to be measured for comparison
with the baseline model for calculating savings . Option B �
• Confirms that the proper equipment/systems were installed and that they have the potential to generate
predicted savings .
• Determines an energy ( and cost) savings value using measured data taken throughout the contract
term .
Methods involve the use of post- installation measurement of one or more variables . The use of periodic or
long -term measurement accounts for operating variations and will more closely approximate actual energy
savings than the use of Option A
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Option C - Utility Bill Comparison Methodology
Option C may be applied to projects in which ( a ) the potential to generate savings must be verified
and ( b )
actual energy use during the contract term must be measured for comparison with the baseline model for
calculating savings . Option C involves procedures for verifying the same items as Option A plus determining
energy savings during the contract term through the use of whole- building metering data .
All end - use technologies can be verified with Option C , provided that the reduction in consumption is larger
than the associated modeling error and that the ECMs are inter related . This option may be used in cases in
which there is a high degree of interaction between installed energy conservation systems and /or
the
measurement of individual component savings is not cost-effective . Accounting for changes ( other than
those caused by the ECMs ) is the major challenge associated with Option C , particularly for
long -term
contracts .
The following points should be considered when conducting Option C analyses for M &V :
1 . All explanatory variables that affect energy consumption as well as possible interactive terms
( i . e . ,
combination of variables ) must be specified , whether or not they are accounted for in the model . Critical
variables can include weather , occupancy patterns , set points , and operating schedules .
2 Independent variable data will need to correspond to the time periods of the billing meter reading dates
and intervals
3 If the energy savings model incorporates weather data , the following issues should be considered :
• Use of the building " temperature balance point' for defining degree -days versus an arbitrary
temperature base .
• The relationship between temperature and energy use that tends to vary depending upon the time of
year . For example , an ambient temperature of 55 ° F in January has a different implication for energy
usage than the same temperature in August . Thus , seasons should be addressed in the model .
• The nonlinear response to weather. For example , a 10 ° F change in temperature results in a
very
different energy use impact if that change is from 75 ° F to 85 ° F rather than 35 ° F to 45 ° F .
• Matching degree-day data with billing start and end dates
4 . The criteria used for identifying and eliminating outliers must be documented . Outliers are data beyond
the expected range of values ( or two to three standard deviations away from the average of the data )
Outliers should be defined using common sense as well as common statistical practice
5 . Statistical validity of the final regression model must be demonstrated Validation steps include checks
to make sure that:
• The model makes intuitive sense , that is , the explanatory variables are reasonable and the
coefficients have the expected sign ( positive or negative ) and are within an expected range
( magnitude ) .
Modeled data are representative of the population .
• Model form conforms to standard statistical practice .
• The number of coefficients is appropriate for the number of observations ( approximately no more
than one explanatory variable for every five data observations ) .
• All model data are thoroughly documented , and model limits ( range of independent variables for
which the model is valid ) are specified .
Option C usually requires at least 9 to 12 months of continuous data before a retrofit and continuous
data
after the retrofit ; the data can be hourly or monthly whole- building data
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