|Manatee County Government Administrative Center Commission Chambers, First Floor 9:00 a.m. - May 20, 2014|
Agenda Item #57
Energy Performance Contracting Services
Briefing Provided Upon Request
Contact and/or Presenter Information
Presenter: Charlie Bishop, Director of Property Management x3004
Contact: Melissa Wendel, CPPO, Purchasing Official x3054
Approval of the Investment Grade Audit and resulting Agreement 13-2896, Energy Performance Contracting Services Agreement with FPL Services, LLC of West Palm Beach, Florida for a not to exceed cost of $11,768,587.00 for the Work and a total Maintenance, Audit, Corporate Guarantee and Measurement and Verification cost of $619,031.00.
Adoption of Reimbursement Resolution R-14-064, Interfund Loan Resolution R-14-065, and R-14-028 Bond Resolution and also delegating authority to take all actions necessary to close the referenced loan.
Adoption of Budget Resolution B-14-058, appropriating loan proceeds.
Manatee County Code of Laws
Florida Statute 489.145, Guaranteed Energy, Water and Wastewater Energy Savings Performance Contract
Florida Statute 287.055, Consultants Competitive Negotiation Act
Florida Statute 125, County Government
In two previous workshops the County commission was informed of the details and benefits of energy savings contracting projects which could provide energy efficiency and consumption reduction measures and maintenance savings. The Agreement presented today is an energy savings agreement which will upgrade, expand and modernize a variety of County equipment and facilities while committing to greater energy efficiency. These long overdue upgrades promote environmental sustainability, responsibility and 'going green'. The largest component of the project is a central chiller plant that is intended to serve the air conditioning needs of County facilities and it would be constructed with additional capacity so that it could serve other potential locations in the nearby downtown area. Although there is an added cost to provide excess capacity in this fashion, the availability of that capacity is an important factor that contributes to economic development and continuing the downtown revitalization.
The County is facing significant costs associated with aging facilities and equipment in its building operations. Incremental approaches to replacing primary air conditioning equipment provide little opportunity for flexibility in building operations, allowance for disaster preparedness, improved efficiencies or lower costs. Air Conditioning equipment is aging and inefficient, building energy use is not optimized, and space planning is restricted by existing building infrastructure. These issues make it difficult for the County to be a leader in environmental stewardship.
Energy Performance contracting is an acquisition method used to obtain and finance energy efficiency and water conservation improvements which includes detailed facility analysis, project design and engineering, equipment acquisition, construction management, equipment repairs and upgrades, project financing and long term savings guarantees. Manatee County previously used this acquisition method in August of 2013 to provide for energy efficiency improvements at the Manatee County Jail and Stockade. The structure of this Energy Performance Agreement positions the County to plan and budget energy, operation and maintenance proactively and limits reactionary measures designed to address to breakdowns and failures, lessening the vulnerability to budget impacts.
Energy Performance contracting is a turnkey service (from design to construction and annual energy savings calculating) to provide a comprehensive set of solutions to reduce energy and water consumption. With an Energy Performance Agreement the contractor, known in the industry as an "ESCO", guarantees a specified amount of savings will be achieved. The savings are generated from the increased efficiency of the new equipment and materials, known as the Energy Conservation Measures (ECMs) that are installed. The multiple benefits of Energy Performance Agreements include increased quality and value through securing private sector expertise with built in incentives for the ESCO to provide quality equipment, timely services and thorough project commissioning. Energy Performance Agreements allow the County the ability to make infrastructure improvements it otherwise may not have been able to do and to also provide increased safety and healthier facilities.
In addition to the design and construction of a Central Energy Plant that will have the capacity to cool County owned downtown buildings and may also cool private buildings in the downtown area, other energy cost savings and operational improvements will be obtained by implementing energy efficient changes primarily apply to various County HVAC, lighting and water systems.
The Energy Performance Agreement being recommended for approval today was initiated by a Request For Proposal (RFP) issued in accordance with the provisions of Florida Statute 489.145, Guaranteed Energy, Water and Wastewater Performance Savings Contracts and Florida Statute 287.055, Consultants' Competitive Negotiation Act.
The RFP, which was advertised in the Bradenton Herald and Tempo News, and also released electronically via the website of Manatee County, Manatee County Chamber of Commerce, and DemandStar resulted in six responses from the following firms: Ameresco of Tampa, FL * FPL Services, LLC of West Palm Beach, FL * Energy Systems Group of Clearwater, FL * BGA, Inc. of Tampa, FL * Trane, Inc. of Tampa, FL * Siemens of Tampa, FL.
The responses to the RFP provided written information on corporate background, technical qualifications of the ESCO, project approach, past projects, and client references. An Evaluation Committee was formed to examine the responses and provide recommendations to the County Administrator.
The Evaluation Committee included Charlie Bishop, Director of Property Management; Jeff Streittmatter, Project Management Division Manager for Public Works; and Blair Getz, Contract Negotiator for the Purchasing Division. The committee, on three occasions and in compliance with Sunshine Law, met to review and consider responses, to conduct oral interviews and to deliberate and recommend which firms the County should negotiate with. The Evaluation Committee identified FPL Services, LLC as the ESCO most qualified to perform an Investment Grade Technical Audit of various County owned facilities throughout Manatee County which held potential for maximizing energy consumption reduction. The County Administrator authorized negotiations with FPL Services, LLC for the Energy Performance Contracting Services and Investment Grade Technical Audit. Negotiations resulted in a not to exceed audit cost of $300,000.00. The terms of the Audit specify there is no obligation to enter into an Energy Performance Agreement if County and the ESCO are unable to reach agreement; however, in that case, the County would be obligated to compensate the ESCO for the cost of the Audit.
Under the statutory scheme authorizing energy performance agreements, the Audit forms the basis for negotiating the scope of the Energy Performance Agreement. The Audit produced several Energy Conservation Measures and recommended those with the highest potential of reducing resource consumption.The County and ESCO determined, after thorough analysis, which ECM's to elect to effectively reduce energy or water consumption, upgrade energy related capital equipment, improve building operation and maintenance, reduce recurring costs and establish control over demand on energy resources. The ECM's recommended include:
ECM 1: Lighting for the Administration Building, Property Appraiser's office, DeSoto Sheriff's Office, Elections Office and Bus Station, and the Fairgrounds buildings.
ECM 3: Water Conservation for the Administration Building, Central Library, Property Appraisers Office, Merrill Lynch Building, DeSoto Center and Fairgrounds.
ECM 4: District Cooling Plant to combine the cooling loads of the Administration Building, Central Library and Property Appraiser's Office.
ECM 6: Air Handler Units/Variable Frequency Drives (AHU/VFD) replacement at the Administration Building.
ECM 7: HVAC Controls, VAV and AHU replacement at the Central Library.
ECM 11: Transformers. Replace old, inefficient transformers with ultra efficient transformers at the Administration building, Central Library, and Property Appraiser's office.
ECM 12: Elevators. Modernizes the Administration Building and Garage Elevators.
ECM 13: Load Control Rate provides for credits in monthly utility bills in exchange for allowing FPL Services to 'control' a portion or entire load off of the utility grid in the event of an emergency event.
ECM 14: Meter Consolidation. Consolidating the existing 45 meters at the Merrill Lynch building to one meter.
The negotiated Energy Performance Agreement brings the energy and water consumption reduction efficiency improvements and provides for new equipment without significant upfront capital costs. All ECM costs are not to exceed and subject to open book pricing providing an opportunity for the County to realize cost reductions. In addition, operating and maintenance on ECM 4, the chiller plant, is full service inclusive for the first three years of the Agreement. All ECMs will be fully implemented within 18 months. This Agreement specifically allows the County to realize the savings which will satisfy the monthly installments over time and there are significant operation and maintenance cost savings expected as well. Most of the existing equipment is at the end of its useful life, is inefficient to operate, does not have current technology employed, or breaks down frequently. A Project Summary is included herein as an attachment which provides greater detail. The Energy Performance Agreement requires ESCO to perform annual reconciliation known as savings measurement and verification. In this Agreement, ESCO is liable for any shortfalls in annual savings in the event guarantees are not met. It should be noted excess savings from prior years cannot be used to cover shortages in subsequent years.
The Loan Resolution authorizes an amount not to exceed $6,600,000.00; however, the actual amount the County will secure is $6,482,360.00. County staff and its financial advisor, MBS Capital, have considered various methods of financing and have found this financing option to be best for the County. The financing resolution has been reviewed by the County Attorney's Office and approved as to form and legal sufficiency.
The budget amendment amount includes funding for a ten percent (10%) owner's contingency which can be used for County directed changes or unforeseen conditions, which is not included in the contract amount.
County Attorney Review
Formal Written Review (Opinion memo must be attached)
Explanation of Other
Instructions to Board Records
Rob Risley, FPL Services, LLC. Rob.Risley@fpl.com
Margaret Daniell, Property Management Department. Margaret.Daniell@mymanatee.org
Melissa M. Wendel, Purchasing Division. email@example.com
Cost and Funds Source Account Number and Name
See form of motion
Amount and Frequency of Recurring Costs
Maintenance, Measurement & Verification and Training costs as identified in Schedule C
Attachment: Schedule A - Equipment to be Installed - Compressed.pdf
Attachment: Schedule B C D E.pdf
Attachment: Schedule F - Financing Agreement.pdf
Attachment: Schedule G - ESCO Maintenance Responsibilities.pdf
Attachment: Schedule N O P Q S.pdf
Attachment: Schedule R - Final Project Cash Flow Analysis.pdf
Attachment: Manatee IGA Volume 1 FINAL 5-12-2014.pdf
Attachment: Workshop Info - Project Summary.doc.pdf
Attachment: ESCO FPLS RLS CAO.pdf
Attachment: Donahue & Associates Rec.pdf
Attachment: Sources and Feasibility.pdf
Attachment: Resolution R-14-064.pdf
Attachment: Resolution R-14-065.pdf
Attachment: FPL Corp Guaranty Assurance Letter.pdf
Attachment: BA B-14-058 Project.pdf
Attachment: Agreement Executed FPLS 5-15-14.pdf
Attachment: Schedule H I J K L M.pdf