CONTRACT 2615 Service Agreement CLOSED2 1� ID 4
PERFORMANCE SERVICES AGREEMENT
THIS AGREEMENT, made and entered into this 4th day of August, 1998, between the CITY OF
EL SEGUNDO, a municipal corporation, hereinafter referred to as "City" and Siemens Building
Technologies, Inc., a Delaware Corporation, hereinafter referred to as "Contractor" or "Siemens." In
consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:
SCOPE OF SERVICES
Contractor agrees to perform the services set forth in Exhibit C and made a part hereof. Contractor
shall provide services to the City as described in Exhibit C, or when otherwise requested by the City and
authorized under this Agreement. Contractor shall, at its own cost, make any revisions of its own work as
required by the City and re-do, at its own cost, any work which the City finds unsatisfactory due to
Contractor's or subcontractor's errors or omissions. Contractor represents and warrants that it and its
subcontractors, officers, employees and agents have the necessary qualifications, experience and facilities to
properly perform said services in a thorough, competent and professional manner and shall, at all times
during the term of this Agreement, have in full force and effect, all licenses required of it by law. It shall be
the Contractor's sole obligation to insure that subcontractors performing work for Contractor under this
Agreement shall adhere to the all of the obligations and duties imposed on the Contractor under this
Agreement.
2. STATUS OF CONTRACTOR
Contractor is and shall at all times remain as to the City a wholly independent contractor. The
personnel performing the services under this Agreement on behalf of Contractor shall at all times be under
Contractor's exclusive direction and control. Neither City nor any of its officers, employees or agents shall
have control over the conduct of Contractor or any of Contractor's officers, employees or agents, except as
set forth in this Agreement. Contractor shall not at any time or in any manner represent that it or any of its
officers, employees or agents are in any manner officers, employees or agents of the City. Contractor shall
not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in
any manner, except as to payment due from the City relating to the Performance Services Agreement.
CONTRACTOR'S KNOWLEDGE OF APPLICABLE LAWS
Contractor shall keep itself informed of applicable local, state and federal laws and regulations
which may affect those employed by it or in any way affect the performance of its services pursuant to this
Agreement. Contractor shall comply with all such laws and regulations affecting its employees. City and its
officers and employees, shall not be liable at law or in equity as a result of any failure of Contractor to
comply with this section.
COMPENSATION AND METHOD OF PAYMENT
Compensation to the Contractor shall be as set forth in Exhibit B " PAYMENT /GUARANTEED
SAVINGS" hereto and made a part hereof
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5. ADDITIONAL SERVICES OF CONTRACTOR
Contractor shall not be compensated for any services rendered in connection with its performance
of this Agreement which are in addition to those set forth herein or listed in Exhibit C, unless such additional
services are authorized in advance and in writing by the City Manager. Contractor shall be compensated for
any additional services in the amounts and in the manner as agreed to by City Manager and Contractor at the
time City's written authorization is given to Contractor for the performance of said services.
6. TERM OF AGREEMENT
This Agreement shall become effective upon the execution by the City and the Contractor and shall
continue in full force and effect until all of the duties and obligations of the City and Contractor set forth in
this Agreement have been satisfied or until there is a material breach of the Agreement which is not cured as
set forth in this Agreement. Prior to the City issuing a Notice to Proceed to Contractor, City shall have the
right to terminate this Agreement without cause upon written notice to Contractor. Contractor shall have 180
days from the time the City issues the Notice to Proceed to complete the Facility and Operational
Improvements.
7. COOPERATION BY CITY
All public information, data, reports, records, and maps as are existing and available to City as
public records, and which are necessary for carrying out the work as outlined in the Exhibit A, shall be
furnished to Contractor in every reasonable way to facilitate, without undue delay, the Work to be performed
under this Agreement.
S. OWNERSHIP OF DOCUMENTS
Upon satisfactory completion of, or in the event of termination, suspension or abandonment of, this
Agreement, all original maps, models, designs, drawings, photographs, studies, surveys, reports, data, notes,
computer files, files and other documents prepared in the course of providing the services to be performed
pursuant to this Agreement shall, become the sole property of City. With respect to computer files,
Contractor shall make available to the City, upon reasonable written request by the City, the necessary
computer software and hardware for purposes of accessing, compiling, transferring and printing computer
files.
9. RELEASE OF INFORMATION /CONFLICTS OF INTEREST
(A) All information gained by Contractor in performance of this Agreement shall be
considered confidential and shall not be released by Contractor without City's prior written authorization
excepting that information which is a public record and subject to disclosure pursuant to the California
Public Records Act, Government Code § 6250, et seq. Contractor, its officers, employees, agents or
subcontractors, shall not without written authorization from the City Manager or unless requested by the City
Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to
interrogatories or other information concerning the work performed under this Agreement or relating to any
project or property located within the City. Response to a subpoena or court order shall not be considered
"voluntary" provided Contractor gives City notice of such court order or subpoena.
If Contractor or any of its officers, employees, consultants or subcontractors does voluntarily
provide information in violation of this Agreement, City has the right to reimbursement and indemnity from
Contractor for any damages caused by Contractor's conduct, including the City's attorney's fees.
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Contractor shall promptly notify City should Contractor, its officers, employees, agents or
subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for
documents, interrogatories, request for admissions or other discovery request, court order or subpoena from
any party regarding this Agreement and the work performed thereunder or with respect to any project or
property located within the City. City retains the right, but has no obligation, to represent Contractor and/or
be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City
and to provide City with the opportunity to review any response to discovery requests provided by
Contractor. However, City's right to review any such response does not imply or mean the right by City to
control, direct, or rewrite said response.
(B) Contractor covenants that neither it, nor any of its officers, principals, employees or
subcontractors have any interest in, or shall acquire any interest, directly or indirectly, which will conflict in
any manner or degree with the performance of their services hereunder. In this regard, Contractor agrees to
comply with The Political Reform Act and all Fair Political Practice Commission Rules and Regulations, as
well as all other laws, regulations and applicable rules governing conflicts of interest. Contractor further
covenants that in the performance of this Agreement, no person or entity having such interest shall be
employed by it as an officer, employee, agent or subcontractor. Contractor further covenants that neither
Contractor, nor any of its officers, principals, employees, or subcontractors have contracted with or
performed any services directly or indirectly for any developer(s), property owner(s), firm(s), partnerships or
companies owning property within the City or processing land use entitlements for with respect to land
located within the City, and further covenants and agrees that neither Contractor, nor its officers, principals,
and employees, or subcontractors shall provide service or enter into any agreement or agreements with any
developer(s), property owner(s), firm(s), partnerships or companies owning property in the City or
processing land use applications with respect to property located within the City, prior to the completion of
the work under this Agreement.
10. DEFAULT.
In the event that Contractor is in default of any of the provisions of this Agreement, City shall have
no obligation or duty to continue compensating Contractor for any work performed unless the Contractor
cures the default within 30 days of written notice of such from the City. Upon the failure of the Contractor
to cure any default the City can at its sole discretion terminate this Agreement, allow the Contractor
additional time to cure the default, or allow the Contractor to proceed without curing the default. In the
event that the City allows the Contractor additional time to cure or allows the Contractor to proceed under
the Agreement without curing the default, the City shall be entitled to terminate the Agreement for
continuing defaults and shall be entitled to pursue all available legal and equitable remedies.
11. INDEMNIFICATION
(A) Contractor represents it is skilled in the services and duties agreed to hereunder by
Contractor, and City relies upon the skills and knowledge of Contractor. Contractor shall perform such
services and duties consistent with the standards generally recognized as being employed by professionals
performing similar service in the State of California.
(B) Contractor is an independent contractor and shall have no authority to bind City nor to
create or incur any obligation on behalf of or liability against City by contract, unless such authority is
expressly conferred under this agreement or is otherwise expressly conferred by the City Council. City, its
elected and appointed officials, officers, agents, employees and volunteers (individually and collectively,
"Indemnitees ") shall have no liability to Contractor or to any other person for, and Contractor shall
indemnify, defend, protect and hold harmless the Indemnitees from and against, any and all liabilities,
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claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of
whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims "), which the
Indemnitees may suffer or incur or to which the Indemnitees may become subject by reason of or arising out
of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or
otherwise occurring as a result of or allegedly caused by the performance or failure to perform by Contractor
of Contractor's services under this agreement or the negligent or willful acts or omissions of Contractor, its
agents, officers, directors or employees, in performing any of the services under this agreement.
If any action or proceeding is brought against the Indemnitees by reason of any of the matters
against which Contractor has agreed to indemnify the Indemnitees as above provided, Contractor, upon
notice from the City, shall defend the Indemnitees at Contractor's expense by counsel acceptable to the City.
The Indemnitees need not have first paid any of the matters as to which the Indemnitees are entitled in order
to be so indemnified. The insurance required to be maintained by Contractor under paragraph 15 shall
ensure Contractor's obligations under this paragraph 14(b), but the limits of such insurance shall not limit the
liability of Contractor hereunder. The provisions of this paragraph 14(b) shall survive the expiration or
earlier termination of this agreement.
The Contractor's indemnification does not extend to Claims occurring as a result of the City's
negligence or willful acts or omissions.
12. INSURANCE
(A) Insurance Requirements. Contractor shall provide and maintain insurance acceptable to
the City Attorney in full force and effect throughout the term of this Agreement, against claims for injuries to
persons or damages to property which may arise from or in connection with the performance of the work
hereunder by Contractor, its agents, representatives or employees. Insurance is to be placed with insurers
with a current A.M. Best's rating of no less than A:VII. Contractor shall provide the following scope and
limits of insurance:
(1) Minimum Scope of Insurance. Coverage shall be at least as broad as:
(a) Insurance Services Office form Commercial General Liability coverage
(Occurrence Form CG 0001).
(b) Insurance Services Office form number CA 0001 (Ed. 1/87) covering
Automobile Liability, including code 1 "any auto" and endorsement CA 0025, or equivalent forms subject to
the written approval of the City.
(c) Workers' Compensation insurance as required by the Labor Code of State
of California and Employer's Liability insurance and covering all persons providing services on behalf of the
Contractor and all risks to such persons under this Agreement.
(d) Errors and omissions liability insurance for the engineering and design
services performed pursuant to this Agreement.
less than:
(e) Property Damage insurance.
(2) Minimum Limits of Insurance. Contractor shall maintain limits of insurance no
El
Id xxw, 6 1 15 b p # or
(a) General Liability: $1,000,000 per occurrence for bodily injury, personal
injury and property damage. If Commercial General Liability Insurance or other form with a general
aggregate limit is used, either the general aggregate limit shall apply separately to the activities related to this
Agreement or the general aggregate limit shall be twice the required occurrence limit.
(b) Automobile Liability: $1,000,000 per accident for bodily injury and
property damage.
(c) Workers' Compensation and Employer's Liability: Workers'
Compensation as required by the Labor Code of the State of California and Employers Liability limits of
$1,000,000 per accident.
(d) Errors and Omissions Liability: $1,000,000 per claim.
(e) Property Damage: $1,000,000 per claim; $2,000,000 aggregate.
(B) Other Provisions. Insurance policies required by this Agreement shall contain the
following provisions:
(1) All Policies. Each insurance policy required by this paragraph 15 shall be
endorsed and state the coverage shall not be suspended, voided, canceled by the insurer or either party to this
Agreement, reduced in coverage or in limits except after 30 days' prior written notice by Certified mail,
return receipt requested, has been given to the City.
(2) General Liability and Automobile Liability Coverages.
(a) City, its officers, officials, and employees and volunteers are to be
covered as additional insureds as respects: liability arising out of activities Contractor performs, products and
completed operations of Contractor; premises owned, occupied or used by Contractor, or automobiles
owned, leased or hired or borrowed by Contractor. The coverage shall contain no special limitations on the
scope of protection afforded to City, its officers, officials, or employees.
(b) Contractor's insurance coverage shall be primary insurance as respect to
City, its officers, officials, employees and volunteers. Any insurance or self insurance maintained by City,
its officers, officials, employees or volunteers shall apply in excess of, and not contribute with, Contractors
insurance.
(c) Contractor's insurance shall apply separately to each insured against
whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.
(d) Any failure to comply with the reporting or other provisions of the
policies including breaches of warranties shall not affect coverage provided to the City, its officers, officials,
employees or volunteers.
(3) Workers' Compensation and Employer's Liability Coverage. Unless the City
Manager otherwise agrees in writing, the insurer shall agree to waive all rights of subrogation against City,
its officers, officials, employees and agents for losses arising from work performed by Contractor for City.
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(C) Other Requirements. Contractor agrees to deposit with City, at or before the effective date
of this contract, endorsements necessary to satisfy City that the insurance provisions of this contract have
been complied with. The City Attorney may require that Contractor furnish City with copies of original
endorsements effecting coverage required by this Section. The endorsements are to be signed by a person
authorized by that insurer to bind coverage on its behalf. City reserves the right to inspect complete,
certified copies of all required insurance policies, at any time.
(1) Contractor shall furnish certificates and endorsements from each subcontractor
identical to those Contractor provides.
(2) Any deductibles or self - insured retentions must be declared to and approved by
City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self - insured
retentions as respects the City, its officers, officials, employees and volunteers; or the Contractor shall
procure a bond guaranteeing payment of losses and related investigations, claim administration, defense
expenses and claims.
(3) The procuring of such required policy or policies of insurance shall not be
construed to limit Contractor's liability hereunder nor to fulfill the indemnification provisions and
requirements of this Agreement.
(D) City is responsible for any Ioss, theft or destruction of, or damage to, the Facility and
Operational Improvements except to the extent such is caused by the Contractor or its agents.
13. BONDS
Contractor shall obtain faithful performance and labor and material bonds, in forms acceptable to
the City, in the sums of one million two hundred ninety-eight thousand eight hundred eight -five dollars
($1,298,885.00), which constitutes one - hundred percent (100 %) of the value of the public improvements to
assure the performance of all terms and conditions of the Agreement. These bonds shall be and remain in full
force and effect, and shall protect the City of El Segundo, its officers, agents and employees until all terms,
covenants, provisions and conditions of the Agreement, and any agreed upon alterations or additions thereto,
are fully and well met and performed by the Contractor to the satisfaction of the City of El Segundo in the
time and manner specified in the Agreement. Upon fulfillment of the obligations set forth in the Agreement
as specified above, the City shall agree to exonerate the bonds.
14. NONDISCRIMINATION INONPREFERENTIAL TREATMENT STATEMENT
In performing this Agreement, the Parties shall not discriminate on the basis of race, sex, color, age,
religion, sexual orientation, disability, ethnicity, or national origin, and shall comply, to the fullest extent
allowed by law, with all applicable local, state and federal laws relating to nondiscrimination.
15. UNAUTHORIZED ALIENS
Contractor hereby promises and agrees to comply with all of the provisions of the Federal
Immigration and Nationality Act (8 U.S.C.A. & 1101, et seq.), as amended; and in connection therewith,
shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized
aliens for the performance of work and/or services covered by this contract, and should the Federal
Government impose sanctions against the City for such use of unauthorized aliens, Contractor hereby agrees
to, and shall, reimburse City for the cost of all such sanctions imposed, together with any and all costs,
including attorneys' fees, incurred by the City in connection therewith.
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lb. PREVAILFNG WAGE
Contractor shall pay prevailing wages for Iabor performed under this Agreement as required by
Labor Code Section 1770 et seq. Contractor and subcontractors shall submit certified payroll records to the
City in a timely manner. Contractor shall be responsible for obtaining certified payroll records from its
subcontractors.
17. ENTIRE AGREEMENT
This Agreement is the complete, final, entire and exclusive expression of the Agreement between
the parties hereto and supersedes any and all other agreements, either oral or in writing, between the parties
with respect to the subject matter herein. Each party to this Agreement acknowledges that no representations
by any party which are not embodied herein and that no other agreement, statement, or promise not
contained in this Agreement shall be valid and binding.
18. GOVERNING LAW
The City and Contractor understand and agree that the laws of the State of California shall govern
the rights, obligations, duties and liabilities of the parties to this Agreement and also govern the interpretation
of this Agreement. Any litigation concerning this Agreement shall take place in the Los Angeles County
Superior Court.
19. ASSIGNMENT OR SUBSTITUTION
City has an interest in the qualifications of and capability of the persons and entities who will fulfill
the duties and obligations imposed upon Contractor by this Agreement. In recognition of that interest,
neither any complete nor partial assignment of this Agreement may be made by Contractor nor changed,
substituted for, deleted, or added to without the prior written consent of City with the exception of a
subsidiary of the Contractor. Any attempted assignment or substitution to any party other than a subsidiary
of Contractor shall be ineffective, null, and void, and constitute a material breach of this Agreement entitling
City to any and all remedies at law or in equity, including summary termination of this Agreement.
Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this
Agreement.
20. MODIFICATION OF AGREEMENT
The terms of this Agreement can only be modified in writing approved by the City Council and the
Contractor. The parties agree that this requirement for written modifications cannot be waived and any
attempted waiver shall be void.
21. AUTHORITY TO EXECUTE
The person or persons executing this Agreement on behalf of Contractor warrants and represents
that they have the authority to execute this Agreement on behalf of their corporation and warrants and
represents that they have the authority to bind Contractor to the performance of its obligations hereunder.
City warrants and represents that the person or persons executing this agreement on behalf of the City has the
authority to bind the City to the obligations under this agreement.
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22. NOTICES
Notices shall be given pursuant to this Agreement by personal service on the party to be notified, or
by written notice upon such party deposited in the custody of the United States Postal Service addressed as
follows:
City
Attention: City Clerk
City of El Segundo
350 Main Street
El Segundo, California 90245
Contractor
Attention: Jeffery A. Prosswimmer
Siemens Building Technologies, Inc.
10855 Business Center Drive
Cypress, California 90630
The notices shall be deemed to have been given as of the date of personal service, or three (3) days
after the date of deposit of the same in the custody of the United States Postal Service.
23, SEVERABILITY
The invalidity in whole or in part of any section, sentence or phrase of this Agreement shall not void
or affect the validity of the other sections, sentences or phrases of this Agreement.
24. WAIVER
The failure by either party to this Agreement to enforce any breach of any provision of this
Agreement shall not waive the parties rights to enforce any breach of any other provision of this Agreement
or any subsequent breach of a provision which has been previously breached.
25. DEFINITIONS
The definitions set forth in Exhibit A are incorporated into this Agreement and made a part hereof.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day
and year first above written,
SIEMENS BUILDING TECHNOLOGIES, INC.
By
Title Y r
CITY OF EL SEGUNDO
.Y -
Title � k I
.1 j��: ( .........................................................................
. .1 1 .. .. ... ....
ATTEST:
. ..... . !�� . ............ .
Eindy Mortese ..............
City Clerk
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APPROVED AS TO FORM:
ark
City Attorney
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EXHIBIT A
DEFINITIONS
Definitions. The following definitions shall for all purposes of this Agreement have the following respective
meaning unless the context otherwise specifies or requires or unless otherwise defined herein:
"Acceptance" means the City has signed the Certificate of Substantial Completion.
"Acceptance Date" means the date on which the City signs the Certificate of Substantial Completion.
"Accumulated Actual Savings" means the sum of actual annual Measured & Verified Savings plus the Energy
and Operational Stipulated Savings from the beginning of the contract through the current period.
"Accumulated Guaranteed Savings" means the sum of guaranteed Measured & Verified Savings plus the
Energy and Operational Stipulated Savings from the beginning of the contract through the current period.
"Actual Annual Savings" means the amount of savings achieved during a one year period. It is the sum of the
actual Measured & Verified Savings plus the Energy and Operational Stipulated Savings.
"Affiliate" means Contractor's parent holding company's finance corporation.
"Annual Guaranteed Savings" means the guaranteed savings during a one year period. It is the sum of the
actual Measured & Verified Savings plus the Energy and Operational Stipulated Savings.
"Annual Reconciliation Period" means the performance assurance portion of the program where actual energy
savings are presented to City by Contractor.
"Commencement Date" means the effective date of this Agreement.
"Construction Period" means the period from the Commencement Date of this Agreement to the Acceptance
Date.
"Construction Period Savings" means the actual accumulated Measured & Verified Savings plus the Energy
and Operational Stipulated Savings achieved from the Commencement Date of this Agreement until the
Acceptance Date.
"Energy Conservation Measure" ( "ECM ") means various items of equipment, devices, materials and/or
software as installed by Contractor at the Facilities, or as repaired or replaced by City hereunder, for the purpose
of improving the efficiency of utility consumption, or otherwise to reduce utility costs of the Facilities.
"Escalation Factor" means an annual escalation percentage to be applied to the previous years Energy
Savings. Operational Savings and Technical Service Agreement, beginning the second year after Acceptance
Date.
"Excess Savings" means the Actual Annual Savings minus the Annual Guaranteed Savings for the period. If
the amount is zero or less there is no Excess Savings amount for that annual period.
"Facilities" means those buildings where the energy and operational savings will be realized.
"Facility and Operational Improvements" means the improvements that are described in Exhibit C, section
C.1 (the "Wort, ").
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"Guaranteed Savings" means the Measured & Verified Savings and Energy and Operational Stipulated
Savings amounts identified in table 2. 1, but not to exceed the Total Project Costs.
"Measured & Verified Savings" means the utility cost savings that will be achieved through the
implementation of the ECM's project. Savings are determined through the measurement process set out in
Exhibit D.
"Energy & Operational Stipulated Savings" means the savings that will be achieved through the other cost
reductions as a result of the implementation of the ECM's and have been mutually agreed upon by Contractor
and the City in addition to the Measure and Verified Savings. The designated savings for each annual period
with the corresponding escalation factor are set out in Exhibit D.
"Performance Guaranteed Period" means that period of time beginning with the first day of the month
following the Acceptance Date and ending on the date which is ten (10) years thereafter.
"Savings Shortfall" means the Annual Guaranteed Savings minus the Actual Annual Savings for the period. If
the amount is zero or less there is no Savings Shortfall amount for that annual period.
"Technical Support Program" ( "TSP ") means the technical services to be provided by Contractor to the City
during the Performance Guarantee Period which is set out in Section 4.2 hereto.
"Total Guaranteed Savings" means the sum of the annual guaranteed savings over the term of the agreement.
"Total Project Costs" means from time to time, all costs incurred at such time or times relating to this
agreement including evaluation, engineering, procurement, installation, financing, servicing of equipment and
monitoring of the facility and operational improvements.
"'Work" means the implementation of the Facility and Operational Improvements to be performed which
are set out in Section 4.1 hereto.
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EXHIBIT B. PAYMENTS /GUARANTEED SAVINGS
(A) _Guaranteed Savings. Contractor guarantees that the Guaranteed Savings generated from the
Commencement Date through the last day of the Performance Guarantee Period will be equal to the Total
Project Costs incurred by the City to complete this Project. The Savings Calculation Methodology for
determining the Guaranteed Savings is set in Exhibit E. The Performance Guarantee is not dependent upon
having and maintaining the Contractor Technical Support Program for the entire savings period so long as
the City otherwise properly maintains Facilities and Operational Improvements.
The Guaranteed Savings amounts are shown in Table A.1 below.
TABLE A. I
ANNUAL
SAVINGS
PERIOD
OPERATIONAL
STIPULATED SAVINGS
BILL.
COMPARISON
SAVINGS
TOTAL
GUARANTEED
SAVINGS
Year 0
$22,066
$39,560
$61,626
Year 1
$45,303
$159,111
$204,414
Year 2
$46,662
$159,111
$205,773
Year 3
$48,062
$159,111
$207,173
Year 4
$49,504
$159,111
$208,615
Year 5
$50,989
$159,111
$210,100
Year 6
$52,519
$159,111
$211,630
Year 7
$54,094
$159,111
$213,205
Year 8
$55,717
$159,111
$214,828
Year 9
$57,388
$159,111
$216,499
Year 10 1
$59,110
$159,111
$218,221
Note the Escalation Factor will be applied to Table A.1
(B) Payments. The City shall pay contractor for the Facilities and Operational Improvements
subject to the terms and conditions set forth in Section (C) of this Exhibit for an annual or pro -rated amount
up to the Total Guaranteed Savings indicated in Table A.1 above. The City shall pay Contractor a I%
penalty for any payment made more than 30 days after its due date.
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TABLE A.2
ANNUAL
SAVING
S
PERIOD
PAYMENT DATE
PAYMENT
AMOUNT
GUARANTEED
SAVINGS FOR
PAYMENT PERIOD
Year 0
06/01/99
$61,626
$61,626
Year 1
10/01199. 01 /01 /00, 04/01/00 & 07/01/00
$179,350
$205,093
Year 2
10/01/00, 01 /01 /01, 04/01/01 & 07/01/01
$179,350
$206,472
Year 3
10 /01 /01, 01101/02, 04/01/02 & 07/01/02
$179,350
$207,893
Year
10101/02, 01/01/03, 04/01/03 & 07/01/03
$179,350
$208,636
Year 5
10101103, 01/01104, 04/01/04 & 07/01/04
$179,350
$210,865
Year 6
10/01104, 01101/05, 04/01/05 & 07/01/05
$179,350
$212,417
Year 7
10/01105. 01 /01 /06, 04/01/06 & 07/01/06
$179,350
$214,016
Year 8
1Q'O1106. 01/01/07, 04/01`07 & 07/01/07
$179,350
$215,663
Year 9
10`01,i�071 01/01/08, 04/01108 & 07/01/08
$179,350
$217,359
Year 10
10101/08, 01101/09, 04`01109
$134,512
$217,359
Total Payments:
$1,810,288
$2,172,084
(C) Guarantee Accounting. Contractor shall prepare a reconciliation statement within sixty (60)
calendar days of payment due date for the period covered by this agreement in order to determine whether the
Total Guaranteed Savings for such annual period will result in Excess Savings or a Savings Shortfall. This will
be calculated on the basis by comparing the Annual Guaranteed Savings and the Actual Annual Savings. The
City shall make its first payment within 30 days of receipt of the annual reconciliation statement. Thereafter,
Contractor will prepare quarterly estimated reconciliation statements and City shall make quarterly payments
within 30 days of receipt of such statements.
Should the Actual Annual Savings for any year be more than the Guaranteed Savings for that year,
Contractor will apply the Excess Savings toward the Total Guaranteed Savings. All construction Period
Savings shall be credited toward the Total Guaranteed Savings.
Should the Accumulated Actual Annual Savings at the end of any Total Guarantee Period, or on a pro -
rata basis for any quarter after the first year of the Agreement, be less than the Accumulated Guaranteed
Savings. City shall reduce its next payment(s) by such shortfall amount until the shortfall is reduced to zero.
If the Accumulated Savings Shortfall is reduced or eliminated in future guarantee periods, the City
agrees to reimburse Contractor the previous credit(s) by the amount of the reduction, without interest thereon.
(D) Energy & Operational Sti ulated Savings. The City and the Contractor agree to stipulate that
the Energy & Operational Stipulated Savings (as detailed in Table A.1) will be deemed to be achieved upon
execution of this Agreement. Neither the City or the Contractor will have any right to object to the use of such
amounts as the Energy & Operational Stipulated Savings in the calculation of Actual Annual Savings.
(E) Information and Changes in Use. The City will notify Contractor in writing within thirty (30)
calendar days of:
Any changes to energy consuming equipment, operating schedules, business
1. 1.
2615..:-
conducted, occupancy, or hours of operation; or
Any malfunctions, failures and related changes in energy consuming equipment; or
3. Any damage to, destruction of, or condemnation of the Work.
The City will provide Contractor with accurate facility operating information, including energy usage
and cost, executed preventive maintenance and repair records, and occupancy levels during the savings period,
as soon as such information becomes available to the City. Without limiting the generality of the foregoing, the
City will provide Contractor copies of all utility bills within thirty (30) calendar days of receipt over the term of
this Agreement.
The City will provide such remote access, through the Contractor Insightl?, software package or
otherwise, as Contractor reasonably requests.
(F) Payment for Technical Support Program. The City agrees to pay Contractor the additional
amount of $342,587 for the Technical Support Program. This amount will be payable according to the schedule
below. The payments are due on the anniversary of contract signing, each year. The City may in its sole
discretion terminate the Technical Support Program, or any portion thereof, with the exception of the "Annual
Energy Audit and Mechanical Inspection" Portion of the Technical Support Program, upon thirty (30) days
written notice without affecting its right to Annual Guaranteed Savings and/or Accumulated Guaranteed
Savings.
TABLE A.3
PROGRAM YEAR
ANNUAL ENERGY
AUDIT AND
MECHANICAL
INSPECTION
AUTOMATED
MECHANICAL
CONTROLS SYSTEM
SERVICE
POOL HEATER AND
VFD SERVICE
CONTRACT
Year One (1)
$12,562
$8,418
$2,134
Year Two (2)
$12,939
$13,250
$5,288
Year Three 3)
$13,327
$13,648
$5,415
Year Four (4)
$13,727
$14,057
$5,578
Year Five (5)
$14,139
$14,479
$5,745
Year Six (6)
$14,563
$14,914
$5,917
Year Seven (7)
$14,999
$15,361
$6,096
fear Eight (8)
$15,450
$15,822
$6,227
Year Nine (9)
$15,914
$16,296
$6,466
Year Ten (10)
$16,391
$16,785
$6.660
-14.
2615.y
EXHIBIT C. SCOPE OF SERVICES
The Scope of Services are set forth in a separately bound document which are incorporated herein by this
reference.
.q�„W
26 15
E\IIJBIT ID. TECHNICAL SCIi'1'012'1' PIZOGRAAI SU11'IIVIARY /WARRANTI' INFOIZNIA7'ION
(A) Guarantee Accounting: In addition to the services set forth in 13.3, Contractor will evaluate
semi- alulUally the City's energy consumption by using a utility monitoring and tracking program. In addition a
building walk through will be coriducted to evaluate system operation and building. usage. A report will be
generated and presented to the City. The report will present utility usage, energy savings, and a comparison of
guaranteed saving versus actual savings.
(13) Intent of Program. The intent of this Technical Support Program is to assist the City of El
Segundo facilities personnel with supporting the technical needs of the performance contracting project.
Included in the program are the following components:
Engineering to track, monitor, and report energy savings as part of the guarantee.
Building automation DDC systems services.
Mechanical inspection services to insure Ihat the mechanical systems are runnim, at optimal efficiency to
provide the energy and operational savings as part of the performance contracting program.
Curuprehcrlsivc maintenance, repair and emergency service on the equipment identified.
(C) Comprehensive Maintenance Service. Contractor will provide set-vices on the following
equipment as set forth in this section.
11'
MANUFACTURER
DESCRIPTION
,Mattnetek
Variable Frequency Drives For Police Station
l
MaLnetek
Variable Frequency Drive For Library
LI _
VaCom Technulogies I
Heat Generation System For Plunge
(D) O eratrnL Inspections. Contractor will provide scheduled operating inspections on above
referenced egtripincu to check system performance, equipment operating conditions, safety controls and
fluid levels to maximize efficiency and reliability. Contractor will issue City a report on overall unit
conditions will be presented to management at the conclusion of Contractor's nlechamcallautomation
Systcm inspeclioll.
(li) Corrective Maintenance and Component Replacement. Contractor will repair or replace
failed or worn components (on equipment listed above) to minimize obsolescence and to maintain your
systcm in peak operating condition. Contractor will upgrade equipment by systematically moderntzing
existing components as may be necessary in our judgment. Components that are suspected of being faulty
nla�• he repalrcd or replaced in advance to prevent system failure. Labor and material costs for corrective
maintenance and emergency service are included within the scope of tills technical support program.
W) Mechanical Services Task List. Contractor will provide the following mechanical services:
I, VaCom Heat Generation System Unit Inspection:
-16-
Lock out and lag out equipment as required.
Check all electrical wiring and connections. Tighten as needed.
Check all motor starter contactor surfaces for wear.
Clean electrical controls enclosures.
Lubricate air handling unit motor bearings and fan bearings where applicable.
Check belt tension and sheave alignment. Adjust as required.
Check evaporator coils for excessive dirt and debris.
Check and clean condensate drains and pans.
Inspect air handling unit fan assembly.
Lubricate condenser motors as required.
Check condenser coil and fan blades for excessive dirt and debris.
Chemically Clean Condenser Coils at least Annually.
Check structural integrity of unit.
Check all mounting hardware tighten as required.
Check and calibrate condenser fan controls.
Check all compressor electrical wiring and connections. Tighten as required.
Check compressor starter contactor surfaces for wear.
Clean compressor electrical controls enclosures.
Inspect condition of compressor vibration isolators.
Clean exterior of compressor.
Check operation of crankcase heater.
Check and calibrate all compressor safety and cut -out devices.
Check and adjust compressor capacity controls.
Check, calibrate and adjust all compressor operational controls
Magnetek Variable Frequency Drives Operating inspection
Refer to Manufacturer's specifications.
Visually clieck general condition and for proper operation.
Check input/output protection.
Check operator controls.
Check all electrical connections. Tighten as required.
Repair replace as required.
(G) List of Maintained Equipment
Contractor will provide the services listed in section (F) on the following equipment:
City hall
QTY
MANUFACTURER
PRODUCT
2
Siemens
Modular Building Controllers (MBC)
2
Siemens
Terminal E ui ntent Controllers
1
Siemens
Outside Air Sensor
23
Siemens
Room Sensors
1
Siemens I
Modem
Police Station
d ?.
2615 .
26. 15. & .
QTY
MANUFACTURER
PRODUCT
2
Siemens
Modular Building Controllers (MBC)
23
Siemens
Terminal Equipment Controllers
1
Siemens
Outside Air Sensor
23
Siemens
Room Sensors
I
Siemens
Modest
Firr gtntinn #1
QTY
MANUFACTURER
PRODUCT
1
Siemens
Floor Level Network (FLN
6
Siemens
Terminal Equipment Controllers
6
Siemens
Room Sensors
I
Siemens
Modem
Library
QTY
MANUFACTURER
PRODUCT
l
Siemens
Modular Building Controllers MBC
ICI
Siemens
Terminal Equipment Controllers
1
Siemens
Outside Air Sensor
14
Siemens
Room Sensors
I
Siemens
Modem
Maintenance Facilitv
QTY
MANUFACTURER
PRODUCT
2
TBD
Computers
2
TBU
SVGA Monitors
2
Siemens
Insight Graphical Software
2
Siemens
Dial Out Modest
(I1) Building Automation Services:
1. On -line Systcros Troubleshooting and Diagnostics. Contractor will provide
system and software troubleshooting and diagnostics via modem. Contractor will fumish and install the
necessary on -line service equipment to enable our local office to remotely log -on to your system via a
regular voice grade dial up phone line.
2. Operator Support. Contractor will provide ongoing consultation via the telephone
as "ell as on -site during our visits to assist the operator(s) in identifying, verifying and resolving problems
M
found in executing the tasks for which they have received training from Contractor
3. Field Panel Database;Systern File Backup. Contractor will backup each field panel
database and system file two (2) limes per year. In the event of memory loss, Contractor %� ill reload the
database from our current backup copy.
4. Field Panel Database Diagnostics. Contractor will perform field panel diagnostics,
analyze the results and make reconunendations to optimize building control performance within the
iUnctional limits of your system.
5. System Preventive Maintenance. Contractor will perform preventive ilia iritenance
in accordance with a program of standard maintenance routines as determined by experience, equipment
application and location, and the manufacturer's recommendations.
G Corrective Maintenance and Component Replacement. Contractor will repair or
replace bailed or horn components to minimize obsolescence and to maintain the system in peak operating
condition. Contractor will upgrade equipment by systematically modernizing existing components as nia}'
be necessary in our judgment. Components that are suspected of being faulty may be repaired or replaced in
advance to prevent system failure. Labor and material costs, for the Siemens automation systems, for
corrective maintenance and emergency service are included within the scope of this teclinical su > tort
program.
Automation Services Task List
Modular 13uildini_ Controiler
Visually inspect RAC cabinet and observe operating environment.
Inspect diagnostic LED's.
Check for air leaks if applicable.
Backup the point. program and TOD database.
Replace battery as required.
Check fur airy unresuh•ed points in program.
Inspect RBC layout sheet and labels for accuracy.
Check time and date - reset as required.
Chei;k operation of analog output modules - note those cycling.
Pant a report of failed points - repair as required.
Pi int a report of points in alarm - review with customer.
Print a report of points in operator priority - review with customer.
Prim a report of disabled points - review with customer.
Clcau cabinet enclosure (interior and exterior).
Repair and replace as required.
TH' Ternnnal r_ ur mcnt Controller 3 Electronic Outputs
Verify controller operation through system -wide diagnostics at system operator's console.
Repaii or replace terminal equipment controller as required.
Repair or replace electronic actuator as required.
Repair or replace room sensor as required.
Repair or replace valve actuator as required.
Repair or replace valve stem as required.
M
26i 5 F
Analot: Sensor - End to End Check
Verify reading at sensor and compare to point readout in automation system. Verify reading at sensor and
compare to point readout in automation system.
Repair and replace as require and replace as require
Modem.
Repair and replace as required.
(1) Corrective Maintenance and Component Replacement Listed 11VAC Mechanical
P.quipment: contractor will repair or replace failed or wont components to minimize obsolescence and to
maintain your system in peak operating condition. Contractor will upgrade equipment by systematically
modernizing existing; components as may be necessary in Contractor's judgment. Components that are
suspected of being faulty may be repaired or replaced in advance to prevent system failure. labor and
material costs for Cite above referenced items are included ► vihin the scope of (his technical support
progr'ain.
(l) Account Management. Contractor will provide dedicated account management to
coordinate the deliveiv of service, offer technical assistance for system programs and engineered control
strategies, and implement the quality assurance prog;rarn, An integral part of this account m2liag elliel I
process is the collaboration of the automa(ion specialist, mechanical technician, field operations
supervisor and engineering staff of City on how to operate the mechanical systems in a snore effective
and efficient manner.
(K) C_oritractor Reseonse Time. Siemens is a 24 -hour, 7 day per week service facility and
Contractor will be un -site to provide emergency service within the next business day. Non - emergency calls, as
determined by the City and Contractor will be incorporated into lite next scheduled preventive maintenance
visit. Contractor %ill respond to on -line requests for maintenance within two (2) hours via modem 24 hours a
day. 7 days a %%eek.
(L) Documentation of All Service Provided. Contractor document each on -site service
call and furnish City with a copy showing tune, date, and a brief description of activity. Work orders for on -site
system preventive maintenance will list the inspection date, individual to report to, equipment identification,
equipment location, work to be performed, and any special instructions.
(M) Quality Assurance Program. Contractor will meet with City to evaluate system
performani.e and City's satisfaction with the quality of service that is being provided under the Technical
Support Program,
(N) Special Services. Contractor will provide City with preferred labor rate oil any
additional work to be performed outside the ternis of this agreement and 60% off list price on any Siemens
manufactured replacement parts not included in this agreement.
(0) Exclusions and Limitations of Liability.
1. Contractor shall not be responsible for repair or replacement of anon
maintainabic or non - moving parts of the system such as ductwork, shell and tubes, heat exchangers, unit
.71C)1.
16 1
cabinets, casings, refractory material, electrical wiring, water and pneumatic piping, structural supports,
cooling tower fill, slats and basins, etc. unless such repair or replacement is necessitated by the wrongful acts
or omissions of Contractor.
2. Contractor shall not be responsible for repairs, replacements, or services
necessitated by reason of negligence, abuse, misuse, improper or inadequate repairs or modifications,
improper operation, lack of operator maintenance or skill by City. Contractor assumes no responsibility for
service on equipment unless performed by Contractor's employees or persons authorized by Contractor.
3. Repairs and replacement of equipment parts and components is limiled to
restoring proper working condition. Contractor shall not be obligated to provide replacement equipment that
represents significant betterment or capital improvement unless such is necessary for restoring equipment to
its proper working condition. Parts and components replaced at Contractor's expense become the property
of Contractor.
(11) Contractor Representative. Contractor will, at its sole cost and expense designate a
person to be known as the Contractor Representative, 'Ilse Contractor Representative will act as a single puint of
contact on behalf of Contractor with respect to all matters under this Agreement and will become familiar with
the progress and quality of the completed Work.
(Q) Assistance to be Provided by the City. In order to assist Contractor ui the
performance of the Work and to encourage the efficient use of resources, the City will, at its sole cost and
expense:
1. Designate a person to be known as the City Representative. "Ilse City
Representative will act as a single point of contact on behalf of the City with respect to all matters under this
Agreement and will become familiar with the progress and quality of the completed Work.
2. Furnish Contractor with existing blueprints, surveys, legal descriptions of
the site. and other inlorniation regarding the Facility as Contractor may reasonably request in order complete the
Work and inaintain the guarantee. 'Iltese existing documents shall remain the property of City shall be returned
to City when Contractor has completed its use of such documents.
3. Promptly, and in any event within 15 business days, respond to samples or
doc.tlments submitted by Contractor to the City for review and approval under this Agreement.
4. Allow reasonable means of twenty -four (24) hour access to its Facility in
order to accomplish the Work.
5. Operate equipment according to the manufacturer's recommendations as
directed by [lie Contractor. Contractor shall Instruct the City in writing as to the proper use of such equipment
belbic City begins operating the equipment.
G. Notify Contractor in writing of any policies (e.g. safety) of the Facility
-htch affects the Work.
(R) Changes in Work.
I. Either party may request additions, deletions, modifications or other
changes ( "Changes ") to the Work. Requests for Changes will be processed pursuant to Standurd Specification
-21,
2G15.��
For Public Work Construction (Green Book, 1997 Edition, including 1998 Supplements) and shall not be
unreasonably dented. Changes will be authorized only by a written agreement executed by botlt parties.
2. Contractor ntay widt the City's written consent, which shall not
unreasonable withheld, substitute alternative parts or equipment provided that the alternative pails and
equipment perlorm the functions of and are of equal or better qualify than the parts and equipment for which
they are substituted.
(S) Equipment Warranty
1. Specific Warranties. All equipment installed under this Agreement shall
carry the specified warranties:
GE Lams
Three 3
year parts and labor'workmanshi w arrant y
GE; Ballasts
Five 5
year partsione year labor work ilia n sh ip warrant'
Occuxurcv'Motion Sensors
One 1
year 2arts and labor,workmanship warrant
Variable Frequency Drives
Nlalone'fek VF•D's Three (3 ) vear 2arts and labouworkmanship warranty
Mechanical
All Carrier Air Conditioning Units - One I year parts /one year labor+workmantshtp warranty
VaCom Technolouies Neat Generation System One (1) year parts /one year laborworkntanship warranty
Direct L)ioital Control Automation
:111 Siemens Manufactured Equipment One (1) year parts and labor p Nx arranty
..Plunge" hoof keplat ement
d en ( I t)► vear "No Dollar Limit- (NDL) Warranty.
Nc,,k Ceiling Tiles
One vear parls and labor workmanshi .warrant
LEI) Traffic Signals
One )ear parts and laborworkmanshm warrant
Ne- Electrical Systems
One vear parts and labor "workmanshn warranty I
-22-
26 1
All Other Equipment
All additional components and other equipment installed under this program and not specifically outlined in this
section of the document will be covered under a one (1) year parts and labor /workmanship warranty
2615. i
EXHIBIT E. SAVINGS CALCULATIONS
(A) Schedules. 'I"he savings calculation methodology consists of:
Schedule 1: Energy & Operational Stipulated Savings
Schedule 2: Calculation of Bill Comparison Savings
Schedule 3: Base Year Utility Data
Schedule 4: Operating Schedules and Conditions
(13) Calculation of Actual Annual Savin g s. Contractor will calculate Actual Annual Savings as the
sum of the Measured & Verified Savings plus the Energy & Operational Stipulated Savings. 'The Measured
Verified Savings will be calculated according to the procedures detailed in the Calculation of Measured &
Verified Savings. The Base Year Utility rates. Operating Schedules and Conditions are shown in the attached
schedules.
Schedule 1:
(C) Energy y&Operational Stipulated Savings. Contractor will be reducing other operational costs
to the City through the implementation of the facility and operational improvements. 'Pile Operational Savings
and annual escalation per cent are stipulated below:
SOURCE(S) OF SAVINGS
ANNUAL ENERGY &
OPERATIONAL STIPULATED
SAVINGS
ANNUAL
ESCALATION
PERCENT
Lighting Lanip and Ballast Replacements
$1,700
Y%,
1. {1'ACize air Costs
$23,153
3%
" Pltuiee" Roaf Rc Placement
$8,400
3%)
Ccilni <, Tile fie Placement
$7.900
3 0/ �0
Schedule 2:
Calculation of Bill Comparison Savings & Verified Savings
yL�iirdule 3:
Base Year Utility Data
Please refer to Exhibit B.
Schedule 4
Opwaling Schedules and Conditions
Please Refer to Exhibit "B"
(1)) Calculation of Actual Annual Savin g s. Contractor will calculate the Calculated Savings as the
sulti of the energy plus the operational cost avoided. Any energy and operational costs avoided by the City from
any stcps taken by Contractor in the Facility prior to the Effective Date will be added to the total savings and
cost avoidance for the first Annual Savings Period,
General. Except as otherwise provided, energy savings will be calculated for each
.4.
2615. a
month of each Annual Savings Period as the product of (i) the excess, if any, of the City's usage of energy in
such month of the base period as set forth in the Exhibit titled "Base Period Energy Usage," adjusted for the
weather conditions, occupancy and configuration during such month of such Annual Savings Period, over the
City's actual usage of energy in such month of such Annual Savings Period, adjusted as described below, or zero
if there is no such excess, multiplied by (ii) the effective unit cost of energy for such month of such Annual
Savings Period, adjusted as described below.
2. Sources of Data. for each month of the base year and cacti month of the term of the
contract, data shall be obtained as follows:
Energy Use - Electricity usage data sliall be obtained from the electric utility bills. Since meters are not usually
read on the same day each month, monthly usage shall be determined by apportioning billed usage assuming a
constant daily usage between meter readings. Usage for most months will, therefore, be derived from two bills.
Before the start of the contract, the parties will agree which bill to consider predominant, i.e. to classify as the
"month" by name only. Demand (M) will not be apportioned and will be read from the predominant bill.
Costs used for savings calculations will be based on the rate in effect for the predominant bill or the rate in effect
For the corresponding period in the base year, whichever is greater. The rate in effect during the base year will
be designated the floor price. if the Facility is on a time -of -use rate, the on -peak, mid -peak and off -peak usage
components shall be treated as three separate energy sources, if possible.
Natural gas, oil, purchased steam, water and other purchased utilities usage's shall be determined by the method
described above for electricity.
3. Calculations. Siemens will adjust energy savings for variations in energy
consumption due to (1) occupancy level changes, hours of operation, (2) structural modifications, modifications
to energy consuming equipment, (3) damaged or malfunctioning; equipment, and (4) any variances from the
proposed operating schedules, strategies and conditions upon which the calculated savings are based are
described in the Exhibit . There may be changes in the Facility's usage and operation for which a calculated
adtustmcrn is necessary. Either the City or Siemens may propose an adjustment procedure based upon
acceptable engineering practices to account for any such changes.
Adjusted Baseline for each month of the Aiumal Savings Period for each energy type (excluding
K%% demand adjusments) will be calculated as follows:
A13 - (dxnC) xKoxKa +Ca
%%Iicrc:
AB adjusted baseline
d days in current month
nC daily consumption from baseline data as determined from laser analysts
Ko occupancyschedule adjustment factor (e.g, current operating; hours /agreed
upon operating; hours, Schedule E)
Ka space utilization adjustment factor (current conditioned square
footage:baseline conditioned square footage)
Ca = calculated adjustments (e.g. added load from the Equipment)
The Adjusted Baseline for each month of the Annual Savings Period covering each energy type and
each meter for kW demand adjustments will be calculated as follows:
-2;5,
where:
where:
a hCI C:
2615 ...
Ma k Wb x Ka + Ca
Ma = adjusted demand
kWb — demand froth baseline period
Ca = calculated adjustments (e.g. added Measures load)
Monthly energy savings will be calculated as follows:
S = AB-AU and kWs = kWa - kWU
5 =
montlily unit energy savings
AB
Adjusted Baseline
AU
post retrofit monthly energy usage
kwa
adjusted demand
lot's
kW demand savings
OVU
post retrofit kW demand usage
he energy costs avoided will be calculated as follows:
CS = S x uc } kWs x uc + Os
CS monetary savings
S monthly energy savings
uc the greater of the floor price of energy (as defined above) and the current
costs. calculated as follows:
(1) for energy sources the cost of which decreases with increasing
usage, the marginal unit cost from the nhondh's bill. for
electricity, this marginal cost shhall be determined for energy
(starting with the amount paid for the last kilowatt -hour purchased
including fuel adjustment cost) and demand (amount paid fur the
last kilowatt purchased) including, if applicable, the effect ol'
demand on the energy cost.
(2) For energy sources the cost of which does not decrease with
increasing usage, the average unit cost of all deliveries received
during the month.
Os other related savings attributable to the conservation program. The City
will retain any and all benefits realized front rebates, grants and similar
payments and discounts resulting from the Work.
11' the Work results in a change of energy source (e.g. conversion from electric to gas heat), or where
the level of usage changes enough to affect the marginal cost, or where utilities have changed rate structures,
s, shall modify the calculations procedure to appropriately adjust for the change.
In