HomeMy WebLinkAbout2009-316 SCHEDULE B
IMPLEMENTATION SERVICES AUTHORIZATION FORM
Project Name : Indian River County Phase 2
ECO No . : ECM - 1 Lighting, ECM -2 Occupancy Sensors , ECM4 HVAC
Service Location : Various Bulidings as Identified in the Feasibility Report
Company : FPL Energy Services, Inc .
Customer: Indian River County
Company Representative :
Name : Greg Hanlon
Address : FPL Energy Services , Inc .
6001 Village Blvd
West Palm Beach , Florida 33407
Telephone : (561 ) 68 1 - 3090
Facsimile : (561 ) 68 1 - 3088
E - mail : greg . hanlon@fpl . com
Customer Representative :
Name : Lynn Williams
Address : 4305A 43rd Ave .
Vero Beach , FL 32960
Telephone : 772 -226 -3490
Facsimile : 772 -226 - 3495
E - mail lwilliams@ircgov . com
I . AUTHORIZATION :
This Implementation Services Authorization Form (" Form ") is issued by the Company to the Customer pursuant to
that certain Master Agreement for Demand Side Management and Energy Efficiency Services ( " Master
Agreement' ' ), effective as of the 19th day of August, 2008 . This Form authorizes the Company to
commence
Services as described herein pursuant to the terms and conditions of the Master Agreement . This Form
is not
intended as a Change and in no way amends , varies or modifies the Master Agreement . Any alternate , different or
additional terms or conditions referenced by the Customer in subsequent correspondence from the Customer are
hereby rejected and will not become part of this Form or other the Master Agreement unless expressly set forth and
incorporated herein . In order for the Company to commence Service set forth in this Form , the Customer is required
to sign this Form . Capitalized terms used herein without other definition shall have the meanings set forth
in the
Master Agreement ,
This Form consists of this Implementation Services Authorization Form and the following attachments, which are
incorporated into this Form by this reference : ( i ) Exhibit A — Feasibility Report, ( ii ) Exhibit B —
Implementation
Price .
II . SCOPE OF WORK :
The Company shall implement the Feasibility Report which shall set forth the Services, recommended ECO(s) and
the implementation at the Service Locations identifed above , as more particularly described in the
Feasibility
Report, attached hereto and made a part hereof as Exhibit A .
III . IMPLEMENTATION SERVICES PRICE :
Subject to Section 3 . 5 of the Master Agreement, the Customer shall compensate the Company for the
Services
provided in connection with the implementation of a Feasibility Report and any deferral payment obligations due
for the Company ' s implementation and delivery of the ECO (s ) at the Service Locations indentified in the Feasibility
Report to the Customer, which shall be set forth in Exhibit B .
200 . 1 I' I rnerp Services . Inc _ All Rights Reserved Schedule B Page I of 4
IV . CUSTOMER COOPERATION :
The Customer shall use reasonable efforts to assist the Company in performing the Services contemplated by
this
Form , including providing reasonable access to each Service Location, providing information concerning each Service
Location , making appropriate Customer personnel available if requested by the Company to assist the Company in
performing such Services, and taking any other actions the Company may reasonably request from time to time
to
achieve the purposes and intent of this Schedule and the Master Agreement.
This Form is being provided by the Company to the Customer, acknowledging acceptance of the Services specified
in this Form , and the Master Agreement, which is incorporated herein . The Customer has examined and carefully
studied all of this Form , including the Master Agreement and all exhibits , appendices , specifications, terms
and
conditions thereto and hereby agrees to be bound by any and all terms , conditions , and obligations set forth therein .
THIS FORM IS HEREBY ISSUED BY THE COMPANY TO CUSTOMER ON THIS 1-0 DAY OF
DECEMBER , 2009 (" Effective Date" ) .
IN WITNESS WHEREOF, the Parties have executed this Form as of the Effective Date ,
Authorized By the Company : Acknowledged by the Customer :
FPL Energy Services , Inc , ,
a Florida corporation
BY : ;
NAME : Greg T. anionNAME : Peter D 05f
TITLE : Vice Presid tr TITLE : Board Chairman
DATE : /,� / ' k _ DATE : December8 , 00.09
2005 . FPI . EnerwServices . Inc . . All Right, Rcscrved Schedule B Paoe 2 of 4
SCHEDULEB
EXHIBIT A
FEASIBILITY REPORT
Project Description : Implementation of IRC Phase 2 Feasibility Study ;
Lighting, Occupancy Sensors and HVAC Improvements .
Building _ _ Lighting Occ . Sensors HVAC
County Jail X X
Health Det X X X
Old Health Bldg. X X
EOC X _ X
Admin Annex X X
Traffic _ X _ X
Sandridge Golf X
Road and Bride X X
Service Locations :
County Jail 4 15 5 41st Street , Vero Beach , FL
I lelath Department 1900 27th Street, Vero Beach , FL
Old Health Building 2525 St Lucie Ave , Vero Beach , FL
Emergency Operations Center 4225 41st Street, Vero Beach , FL
Administrative Annex 1028 28th Place , Vero Beach , FL
Sandridge Golf Course 5300 73rd Street, Vero Beach , FL
Traffic Office and Garage 4548 41 st Street, Vero Beach , FL
Road and Bridge 4550 41 st Steet, Vero Beach , FL
Scope of Services : Refer to attached Feasibility Report
2005 FPI Hnenn Services. Inc _ All Rights Reserved Schedule B Page 3 of 4
SCHEDULE B
EXHIBIT B
IMPLEMENTATION PRICE
ECO Price : 51 , 031 , 011 . 37
Payment Schedule/Payment Deferral Option : See Master Agreement
Form of Invoice : Written
Address for Invoice : Indian River County , Attn : Lynn Williams, 4305A 43rd Ave . , Vero Beach , FL . 32960
Retainage Terms : See Master Agreement
Additional Final Payment Conditions : See Master Agreement
C 20os PPL 1 . ncrav Scrvices_ Inc _ All Rights Reserved Schedule B Page 4 of 4
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 2
Phase 11 Rev . 10/09
( 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-parry-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 489 . 145 which
provides that the amount of annually guaranteed savings must CE " I meet or exceed total annual contract
payments made by the county . . . 31 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 2
Phase 11 Rev. 10/09
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 Reportmeans 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 2
Phase 11 Rev . 10/09
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 2
Phase 11 Rev . 10/09
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 2
Phase 11 Rev . 10/09
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
By :
INDIAN RIVER COUNTY
� '
Name : Greg T . aBnion Y :2
Title : Vice President and General Manager Name : Peter D . O ' Bryan, Chai an
Title : Chairman Board of County Commissioners
Approved b Decemb . r8 ,2009
Authorized By the Customer : pp Y
ATTEST : Jeffrey K . Barton
APPROVED AS TO FORM :
Indian River County Attorney
BY :
Deputy Clerk By : f �t/Lil
Name : William G . Collins 11
Title : County Attorney
ATTACHMENT 1
Indian River County , Florida 6 Indian River County Phase 2
Phase 11 Rev . 10/09
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
IRC Jail Facility 5642
Admin Annex 3385
Emergency Operations Center 7833
Golf Course 4280
Health Department 3012
Old Health Department 2959
Traffic & Garage 3598
Indian River County, Florida 7 Indian River County Phase 2
Phase 11 Rev . 10/09
ATTACHMENT
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 2008 - 09 Electrical Rates
Meter
Building Address Number $/KWH Overall $/KWH $/KWD Utili
County Jail 41 st Street E060185 0 . 1301 0 . 1122 3 . 81 Vero
County Jail C Wing 41st Street E047097 0 . 1353 0 . 1163 3 . 81 Vero
Health Department 1900 27th Street E038050 0 . 1182 0 . 1077 3 . 81 Vero
Old Health Department - 2525 St Lucie E037790
Homeless Ave 0 . 1300 NA NA Vero
Emergency Operations Center 4225 43rd Ave E059112 0 . 1356 0 . 1165 3 . 81 Vero
Administration Annex 1028 20th Street E047135 0 . 1342 0 . 1092 3 . 81 Vero
Sandridge Golf Course 5300 73rd Street 6LL6090 0 . 1062 0 . 0843 7 . 70 FPL
Traffic Office and Gara a 4548 41 st Street E035635 0 . 1501 NA NA Vero
Traffic Office and Garage 4550 41 st Street E047183 0 . 1414 0 . 1194 3 . 81 Vero
Road and Bride 4548 41 st St E047183 0 . 12708 0 . 11657 3 . 81 Vero
Indian River County, Florida 8 Indian River County Phase 2
Phase 11 Rev . 10/09
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
Gas
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% 16%
8 3% 5% 3 .5%
9 3% 5% 3 . 5%
10 3% 5% 3. 5%
11 3% 5% 3 .5%
12 3% 5% 16%
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 2
Phase 11 Rev . 10/09
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 II 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 II 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 II Feasibility Study" . This report is incorporated
into
this Guarantee Document.
ECM -3 Not Implemented Therefore not Part of Savings Guarantee
Mechanical HVAC - Savings due to Controls ( ECM-4)
Mechanical HVAC calculated savings due to the installation of controls and the associated assumptions are
provided for each facility in the report titled , " Indian River County Phase II Feasibility Study" . This report
is
incorporated into this Guarantee Document.
Indian River County , Florida 10 Indian River County Phase 2
Phase 11 Rev . 10/09
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 ) $4 ,599 . 84 0% (Yrs 2 -10 )
HVAC SAVINGS DUE TO LIGHTING $ 9 , 836 . 98 0% ( 15t yr) , 3 %
REDUCTION ( ECMO ) (Yrs 2 40 )
OCCUPANCY SENSORS ( ECM -2 ) $69724.98 0% ( 1st yr) , 3%
(Yrs 2 40 )
MECHANICAL HVAC CONTROLS( ECM -4) $5 ,295.00 0% ( 1St Yr) , 3%
(Yrs 2 -10 )
TOTAL CALCULATED SAVINGS $26 ,455 N/A
Indian River County , Florida 11 Indian River County Phase 2
Phase 11 Rev . 10/09
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/Fixturebaseline x Quantltybaseline - kW/FixturePost x Quantltyppsd x Hours of
Operation]t.0
where :
KWh Savings = kilowatt-hour savings realized during the post-installation time
period t
KW/'fixturebeseline = lighting baseline demand per fixture for usage group u
kW/fixturepost = lighting demand per fixture during post-installation period for
usage group u
Quantitybaseline = quantity of affected fixtures before the lighting retrofit for usage
group u, adjusted for inoperative and nonoperative lighting fixtures
Quantityp,,,t = 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
Indian River County, Florida 12 Indian River County Phase 2
Phase 11 Rev . 10/09
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 ( IRC Jail ) :
62 . 82 kW x $ 3 . 81 /kW x 12 months = $2 , 872 . 13
3441562 . 86 kWh x $0 . 1122/kWh = $ 38 , 659 . 95
$2 , 872 . 13 + $ 38 , 659 . 95 = $41 , 532 . 08
Total Savings $41 ,532 .08 ( IRC Jail )
Total Lighting Savings for all locations : $57 , 989
Run hours are hereby stipulated .
Measured Adjusted Savings Calculation :
Percentage of Measured Values vs . Calculated Values x Total guaranteed Savings = Excess Savings or
Shortfall in Savings
Equations for Calculating HVAC Energy and Demand Savings
Per Option B , the general approach to determine energy savings involves comparing the energy usage
associated with a facility or certain systems within a facility , before installation of the ECM ( baseline)
and
after installation of the ECM ( post-installation ) . Pre-measurements will be taken on the existing chiller to be
replaced and the Post- measurements will be taken on the new chiller in years one ( 1 ) , four(4 ) , seven ( 7 ) , and
ten ( 10 ) during the term of the guarantee .
Therefore :
Energy savings = (baseline energy use) — (post-installation energy use)
Electric Demand Savings Demand or capacity saved ( kW Saved ) is computed by subtracting the demand
required post-implementation by each item of ECM ( kW Post) ( and further subject to the Operating Plan
requirements) , from the demand required pre-implementation ( kW pre) by the original equipment. The
general formula is shown below .
kW saved = ( kW pre ) - ( kW post )
Electric Energy Savings Electric energy saved ( kWh saved) is computed by taking the difference between
the demand requirement measured for both pre- and post- implementation conditions . The formula is
shown below.
Indian River County , Florida 13 Indian River County Phase 2
Phase 11 Rev . 10/09
kWh saved = ( kWh pre ) - ( kWh post )
Electric Dollar Savings_Dollar savings are computed by applying the applicable Contract Utility Rates
( see definition of this term ) .
HVAC Savings Calculation :
Indian River County Health Department— Chiller Plant Measurement ( non — escalated ) :
Stipulated Stipulated Ton Stipulated Measured Full Load Total Savings ($ )
Load Hours Average Tons ( at Chiller Plant kW/ton
Profile load profile ) differential
100 % 96589 68 0 . 0896
75 % 134890 49 0 . 1632
50 % 43787 30 0 . 5960
25 % 39197 11 2 . 1817
$ 15 , 485
Where ,
1 ) Pre Chiller Plant kW/ton is the existing chiller plant and post Chiller Plant kW/ton is the Chiller Plant
after the ECM implementation ,
2 ) Stipulated ton hours is the ton hours from the calibrated Trane Trace analysis (total = 314 , 463 ton
hours) ,
3 ) Stipulated load profile is the profile from the calibrated Trane Trace analysis ,
4 ) Stipulated average tons is the average tons for the load range from the calibrated Trane Trace
analysis ,
5 ) Dollar savings = (Ton - Hours) x ( Delta kW/ton chiller plant) x blended $/kWh x EFLF ( . 9208 )
Indian River County , Florida 14 Indian River County Phase 2
Phase 11 Rev . 10/09
ATTACHMENT 5
Annual Guaranteed Savings Allocation
Annual
Savings Measured Calculated Guaranteed
Guarantee Savings Savings Energy Cost
Term Year Savings
1 $77 , 624 . 00 $26, 456. 80 $ 104 , 080 . 80
2 $79 , 952 . 72 $27, 112. 51 $ 107 , 065 . 23
3 $ 82 , 351 . 30 $27, 787. 89 $ 110 , 139 . 19
4 $84 , 821 . 84 $28, 483. 53 $ 113 , 305 . 37
5 $87136& 50 $29, 200, 04 $ 116 , 566 , 54
6 $89 , 987 . 49 $29, 938. 05 $ 119 , 925 . 54
7 $92 , 687 . 12 $30, 698. 19 $ 123 , 385 . 31
8 $ 95 , 467 . 73 $31 , 481 . 14 $ 126 , 948 . 87
9 $98 , 331 . 76 $32, 287. 58 $ 130 , 619 . 34
10 $ 101 , 281 . 71 $33, 118. 22 $ 134 , 399 . 93
TOTAL $ 889 , 872 . 18 1 $296 , 563 . 95 $ 1 , 1867436 . 13
Indian River County, Florida 15 Indian River County Phase 2
Phase 11 Rev . 10/09
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 $26 , 456 . 80 $ 104 , 080 . 80 %
2 $27 , 112 . 51 $ 107 , 065 . 23 %
3 $27 , 787 . 89 $ 110 , 139 . 19 %
4 $28 , 483 . 53 $ 113 , 305 . 37 %
5 $297200 . 04 $ 116 , 566 . 54 %
6 $297938 . 05 $ 119 , 925 . 54 %
7 $ 30 , 698 . 19 $ 123 , 385 . 31 %
8 $ 31 , 481 . 14 $ 126 , 948 . 87 %
9 $ 32 , 287 . 58 $ 130 , 619 . 34
10 $ 33 , 118 . 22 $ 134 , 399 . 93
Totals $296 , 563 . 95 $ 1 , 186 , 436 . 13
Indian River County , Florida 16 Indian River County Phase 2
Phase II Rev . 10/09
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 FEMPIIPMVP)
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 .
Indian River County, Florida 17 Indian River County Phase 2
Phase II Rev . 10/09
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 .
Indian River County , Florida 18 Indian River County Phase 2
Phase II Rev . 10/09
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 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 .
Indian River County , Florida 19 Indian River County Phase 2
Phase 11 Rev . 10/09
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 .
Indian River County , Florida 20 Indian River County Phase 2
Phase 11 Rev . 10/09
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 550F 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 .
Indian River County , Florida 21 Indian River County Phase 2
Phase 11 Rev . 10/09