HomeMy WebLinkAboutITEM V-C
AGENDA BILL APPROVAL FORM
Agenda Subject:Date:
Resolution No. 4646 September 22, 2010
Department:Attachments:Budget Impact:
Human Resources
Administrative Recommendation:
City Council adopt Resolution No. 4646
Background Summary:
City Council to authorize the Mayor and City Clerk to execute a Resource Conservation Grant Agreement
between the City of Auburn and Puget Sound Energy.
S1004-2
Reviewed by Council & Committees:Reviewed by Departments & Divisions:
Arts Commission COUNCIL COMMITTEES: Building M&O
Airport Finance Cemetery Mayor
Hearing Examiner Municipal Serv. Finance Parks
Human Services Planning & CD Fire Planning
Park Board Public Works LegalPolice
Planning Comm. OtherPublic Works Human Resources
Information Services
Action:
Committee Approval: Yes No
Council Approval: Yes NoCall for Public Hearing___/___/____
Referred to _________________________________ Until ____/___/____
Tabled ______________________________________ Until___/___/____
Councilmember:Staff:
Backus Heineman
Meeting Date:Item Number:
October 4, 2010
Agenda Subject:Date:
Page 2 of 2
RESOLUTION NO. 4 6 4 6
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, AUTHORIZING
THE MAYOR AND CITY CLERK TO EXECUTE AN
RESOURCE CONSERVATION MANAGER GRANT
AGREEMENT BETWEEN THE CITY OF AUBURN
AND PUGET SOUND ENERGY
WHEREAS, as part of a joint effort to pursue a two-year Resource
Conservation Management Grant (Grant) which would be used to start a
Resource Conservation Management Program (RCM Program), the City of
Auburn and the City of Federal Way entered into an Interlocal Agreement for
Resource Conservation Management services, which Interlocal Agreement was
adopted by Resolution No. 4578; and
WHEREAS, the RCM Program would study and address how the City of
Auburn and City of Federal Way could use utility resources, including water,
sewer, electricity, oil and natural gas, more efficiently; and
WHEREAS, the Grant would provide funding to assist with program
implementation, resource account software and technical support and training
for staff members involved in resource conservation; and
WHEREAS, the Grant also provides additional performance incentives
which would be paid if the cities of Auburn and Federal Way meet proposed
conservation goals.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, KING
COUNTY, WASHINGTON, HEREBY RESOLVES as follows:
--------------------------------------
Resolution No. 4646
September 22, 2010
Page 1 of 2
Section 1.
The Mayor of the City of Auburn and the Auburn City Clerk
are hereby authorized to execute Resource Conservation Management Grant
Agreement between the City of Auburn and Puget Sound Energy which
Agreement shall be in substantial conformity with the Agreement attached
hereto as Exhibit “A” and incorporated herein by this reference.
Section 2.
The Mayor is hereby authorized to implement such
administrative procedures as may be necessary to carry out the directives of
this legislation.
Section 3.
This resolution shall be in full force and effect upon
passage and signatures hereon.
Dated and signed this _____ day of _________________, 2010.
CITY OF AUBURN
_______________________________
PETER B. LEWIS, MAYOR
ATTEST:
_________________________
Danielle E. Daskam, City Clerk
APPROVED AS TO FORM:
_________________________
Daniel B. Heid, City Attorney
--------------------------------------
Resolution No. 4646
September 22, 2010
Page 2 of 2
Puget Sound Energy
Energy Efficiency Services
P.O. Box 90868 EST-10W
Bellevue, WA 98009-0868
May 27, 2010
Steven Burke
Construction Projects Manager
City of Auburn
25 W Main St
Auburn, WA 98001-4998
RE: RCM Grant Agreement
Dear Steven,
Puget Sound Energy is pleased to offer support for the City of Auburn’s efforts to reduce energy
consumption and manage resource costs. Enclosed you will find the RCM Grant Agreement, and Scope of
Work outlining the steps involved in implementing a resource conservation program with support from
Puget Sound Energy. This grant includes funding to assist with program implementation, resource
accounting software, and technical support and training for the members of your staff involved in resource
conservation. Additional performance incentives are included with the agreement and will be paid if the City
of Auburn and the City of Federal Way meet proposed conservation goals as detailed in the Scope of Work
and inter-local agreement between the two agencies.
Feel free to contact me with any questions. I am happy to talk with you or meet with anyone at the City who
has questions about the program. If there are not any questions at this time, sign the agreement and return
it to me. I’ll have PSE management sign off and return an executed copy to your attention.
I look forward to working with you on reducing resource consumption and costs at the City of Auburn. I can
be reached at 425-456-2936 or 425-466-0036.
Sincerely,
Ben Rupert, CEM
Program Manager, RCM Support Services
Puget Sound Energy
RESOURCE CONSERVATION MANAGER
GRANT AGREEMENT
C-08753, C-08754, C-08755, C-08756 & C-08757
Agreement No.
082-5092, 082-5096, 082-5097, 082-5098 & 082-5099
Project No.
This AGREEMENT is made this _______ day of ___________________, 20_______, by and between
PUGETSOUNDENERGYCity of Auburn
and (“Participant”).
RECITALS
A. Under Puget Sound Energy’s Electric Schedule 253 and Gas Schedules 208, as currently in effect and
on file with the Washington Utilities and Transportation Commission, Puget Sound Energy offers
grants for electricity and natural gas resource conservation management measures installed or
implemented at facilities that receive electric or natural gas service from Puget Sound Energy.
B. Participant intends to install or implement resource conservation measures and is requesting a grant
from Puget Sound Energy under its filed Electric Schedule 253 and/or Gas Schedule 208 tariffs.
AGREEMENTS
Puget Sound Energy and Participant agree as follows:
Premises
1.. Participant will install or implement the resource conservation measures described in
paragraph 2 (“Resource Conservation Manager Services”) at the facilities located at 25 W MAIN ST
Attachment B – List of Facilities
AUBURN, WA 98001 and other facilities identified in (the
“Premises”). Participant represents either (a) that it is the owner or contract purchaser or otherwise
has the lawful authority to make the statements herein on behalf of the owner or contract purchaser of
the Premises, or (b) that it is the lawful tenant of the Premises and that it has obtained written
authorization from the owner or contract purchaser of the Premises.
Resource Conservation Manager Services
2.. Participant represents that it has retained or will retain
the services of a Resource Conservation Manager, or will appoint in-house resources for the
installation or implementation at the Premises of the following Resource Conservation Manager
Services at the following costs:
Total Cost of Eligible
Conservation Measure
Conservation Conservation
MeasuresLife
MeasuresGrant
1.RCM - Electric 3$100,695.00$35,784.00
2.RCM - Gas 3$20,305.00$7,216.00
TOTAL (includes sales tax) $121,000.00$43,000.00
Grant
3.. Subject to Puget Sound Energy acceptance, Puget Sound Energy will grant the Participant,
after installation or implementation of the Resource Conservation Manager Services, an amount equal
to the Eligible Electric Schedule 253 and Gas Schedule 208 Conservation Grant (the “Grant”) as
identified above, providing, however, that such Resource Conservation Manager Services must be
4384 10/08 Page 1 of 3
C-08753, C-08754, C-08755, C-08756 & C-08757
RESOURCE CONSERVATION MANAGER
GRANT AGREEMENT
Attachment A – Scope of Work
installed and implemented as specified in and Grant paid within 36
months of the signing of this Conservation Grant Agreement. If for any reason the cost of the Resource
Conservation Manager Services is actually less than shown above, Puget Sound Energy may
decrease prorata the amount of the Grant. Participant shall be responsible for paying any amount in
excess of the amount of the Grant.
Separate Contract
4.. The purchase and implementation of the Resource Conservation Manager
Services shall be pursuant to a separate contract between Participant and Resource Conservation
Manager. Puget Sound Energy is not, and shall not be deemed to be, a party to any purchase,
installation, or implementation contract. All obligations to any Resource Conservation Manager
pursuant to any such contract shall be Participant’s responsibility. Participant expressly acknowledges
that Puget Sound Energy’s involvement with respect to the Resource Conservation Manager Services,
including but not limited to any energy analysis or inspection by Puget Sound Energy of the Premises
or the Resource Conservation Manager Services, is solely undertaken in connection with furnishing
the Grant. The types of materials, methods of installation, quality and timing thereof, and any
warranties with respect to the Resource Conservation Manager Services or their installation or
implementation at the Premises, are matters to be agreed upon solely between Participant and any
PUGET SOUND ENERGY HAS NOT MADE AND
Contractor or Resource Conservation Manger.
DOES NOT MAKE (AND PARTICIPANT ACKNOWLEDGES THAT PUGET SOUND ENERGY DOES
NOT MAKE) ANY IMPLIED OR EXPRESS WARRANTY (INCLUDING BUT NOT LIMITED TO ANY
IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS) REPRESENTATION, OR PROMISE
WITH RESPECT TO EITHER (A) THE RESOURCE CONSERVATION MANAGER SERVICES, (B)
ANY MATERIALS AND LABOR REQUIRED FOR OR USED IN THE IMPLEMENTATION OF THE
RESOURCE CONSERVATION MANAGER SERVICES, OR (C) THE INSTALLATION OR
IMPLEMENTION OF THE RESOURCE CONSERVATION MANAGER SERVICES
.
Release
5.. Participant releases Puget Sound Energy from any and all claims, losses, harm, costs,
liabilities, damages and expenses directly or indirectly resulting from or in connection with (a) the
Resource Conservation Manager Services, (b) any materials and labor required for or used in the
installation or implementation of the Resource Conservation Manager Services, (c) the
implementation of the Resource Conservation Manager Services, or (d) the identification, handling
and disposal of any associated hazardous waste materials.
Disclaimer
6.. Puget Sound Energy conducts energy analyses at the request of its customers to
determine the extent to which resource conservation measures are cost–effective. Any estimate of
energy savings made by Puget Sound Energy in connection with any such analyses is solely for the
purpose of determining the cost–effectiveness of the particular resource conservation measures and
not to be used for any other purpose. Puget Sound Energy has not and does not make any promise,
warranty or representation with respect to any savings in energy consumption from Resource
Conservation Manager Services.
Termination
7.. In the event a Participant’s contribution to Puget Sound Energy’s (PSE) recovery of
energy efficiency program costs is affected by all or a portion of Participant’s electric and/or gas
delivery service being provided by a party other than PSE, then Participant shall refund to PSE an
amount equal to the ratio of the unused Measure Life of the measure(s) to the total Measure Life of
such Resource Conservation Manager Services multiplied by the dollar amount of the Grant with
respect to such Resource Conservation Manager Services. The Resource Conservation Manager
Grant agreement may be reviewed annually to determine the cost-effectiveness and assess
continuance. Either party may terminate this agreement with 30 days notice to the other parties.
4384 10/08 Page 2 of 3
C-08753, C-08754, C-08755, C-08756 & C-08757
RESOURCE CONSERVATION MANAGER
GRANT AGREEMENT
Entire Agreement
8.. This Agreement is subject to the terms of the filed Electric Schedule 253 and Gas
Attachment C – PSE
Schedule 208 tariffs, which are incorporated herein by this reference and as
Resource Conservation Manager Tariffs
. This Agreement sets forth the entire agreement between
the parties and supersedes any and all prior agreements with respect to the Resource Conservation
Manager Services identified herein. No change, amendment or modification of any provision of this
Agreement shall be valid unless set forth in a written amendment to this Agreement signed by
both parties.
PUGET SOUND ENERGY PARTICIPANT
By: By:
David Landers
Name:Print Name:
Acting Mgr., Energy Efficiency Services
Title: Title:
Federal Tax I.D. No.:
4384 10/08 Page 3 of 3
C-08753, C-08754, C-08755, C-08756 & C-08757
ATTACHMENT A
SCOPE OF WORK
for
City of Auburn
Resource Conservation Manager Services
Project Intent:
The City of Auburn (CUST) agrees to establish a Resource Conservation Manager (RCM) program which will
provide coordination and leadership for effective and efficient management of all utility resources used in their
organization including electricity, natural gas, water, wastewater, refuse, and recycling. The RCM program will
focus on the development and implementation of a Resource Management Plan to achieve savings by
coordinating efficient operations and quality maintenance with low-cost actions and behavior changes by the
users at the facilities. The RCM program will use a resource accounting software package to allow trained staff
to monitor resource use and to report on savings.
Services:
The following list of Resource Conservation Manager Services has been developed to support CUST. Tasks and
deliverables associated with the successful completion and payment of grant amounts are described for each
measure. All of the tasks must be completed in order to receive payment of the grant amount associated with
each service. The expectation of this contract is that the RCM program will exist for a minimum of three-years
from signing date. Contract renewals may be evaluated after the initial three-year period.
Table 1: RCM Services
Resource Conservation Manager Services Grant # TermMeasure Cost Grant Amount
1. Resource Accounting Software N/A3-Years Retail value is $9,900, costs
paid by PSE direct to vendor.
2. RCM Program Start-up Incentive C-08754 1 Year $ 40,000 $ 14,000
3.RCM Performance Incentive – 1 C-08756 1 Year $ 40,000 $ 14,000
4.RCM Performance Incentive – 2 C-08757 1 Year $ 40,000 $ 14,000
5.RCM Training Stipend C-08753 3 Years $ 1,000 $ 1,000
TOTAL (includes sales tax) $ 121,000 $ 43,000
1.Resource Accounting Software
PSE will provide the customer with resource tracking software and annual software maintenance support for
the term of this contract. In return, the customer is expected to complete the software setup including input
of organization structure, building information, utility companies, and account numbers for all electricity,
gas, water, wastewater, and solid waste accounts.
The City of Auburn agrees to:
a.Assign a dedicated person to compile facility information and work with other internal resources as
needed to complete software setup process;
b.Be available for on-site and off-site software training as needed;
c.Work directly with PSE and other utilities to identify all accounts and meters for input into the software
program;
d.Work with CUST accounting department or others to obtain copies of the past 13 months (minimum) of
utility and resource bills;
e.Input cost and consumption information into the software program and update on a regular basis.
f.Develop a process to receive copies of all monthly utility bills going forward;
g.Submit a copy of initial Database to PSE annual for review;
Attachments – Page 1
Form Rev 5/27/08
h.Work with PSE to resolve any issues identified during review of CUST’s resource tracking database;
i.Provide a dedicated person to maintain the database after the data review is complete;
j.Submit an updated copy of the resource tracking database to PSE annually; and
k.Allow PSE to use building data in calculation of PSE benchmarks and building efficiency ranking
reports to be included with other facility databases and shared with RCM community.
2. RCM Program Start-up Incentive
PSE will provide task-specific incentives to assist CUST with development of their RCM program. This
one-time incentive will pay for 35% of the time spent on establishing the RCM program during the first year
provided CUST completes the following deliverables.
2.1
Hire an RCM or dedicate staff time to RCM activities;
2.2
Populate and maintain a Resource Accounting Database (see item 1);
2.3
Complete a Resource Management Plan. The Resource Management Plan provides an organizational
guideline for effective and efficient management of all utility resources including electricity, natural
gas, water, wastewater, refuse, and recycling;
2.4
Complete Facility Action Plans for the Organization’s Buildings as outlined in Attachment B. Facility
Action Plans outline specific action items to be implemented that will reduce resource use in each
facility. These items are identified through building walk-through audits and interviews with staff and
occupants. WSU and PSE supported on-site facility audit assistance should be used to jump-start this
process.
2.5
Work with the City of Federal Way per the terms of the inter-local agreement to ensure that the
deliverables have been met by both agencies prior to submitting a payment request to Puget Sound
Energy. Puget Sound Energy will not remit incentive payment until both agencies have completed the
deliverables associated with each individual grant agreement.
The City of Auburn agrees to:
a.Complete deliverables (2.1) through (2.5) as outlined above.
b.Submit a copy of the Resource Management Plan and Facility Action Plans to PSE for review and
comment;
c.Work with PSE on recommended revisions and additions to the plans; and
d.Provide annual reports to PSE to document action items taken as identified in the plans and results
achieved for the duration of the contract.
PSE will provide guidelines and assistance in the development of the plans and progress reports.
RCM Incentive Payment
to provide the centralized energy accounting,
CUST proposes to use a combination of administrative staff
monitoring and reporting functions, and facilities management staff to provide the technical on-site
implementation of operational recommendations.
The start-up incentive is based on the following staffing breakdown:
FTE – RCMName Position Total Annual PSE Share
% RCM Hours Salary
.50 1040 TBD RCM $~40,000 $14,000
The tasks outlined in the scope of work for this incentive are estimated to be completed in the first six to
nine months of the agreement. The start-up incentive can be paid at the end of the first six-month period
provided the Scope of Work has been completed.
Attachments – Page 2
3. Performance Grant 1
Once the customer has completed the start-up deliverables outlined in item 4, and has achieved their year-
one targeted PSE energy savings as outlined below in Table 2, they will be eligible to receive additional
cash incentives for achieving further energy savings. The energy savings target for the first performance
reduction over the customer’s first year or last 12-month period. The target will be
grant is a 5 percent
established using actual data at the time of eligibility. Puget Sound Energy will provide a cash incentive
equal to the Start-up Incentive once the customer achieves this pre-established PSE gas and electric target.
Only savings achieved relative to occupant and behavioral practices and improvements in operation and
maintenance (O&M) practices will be considered for the performance grant. To determine performance
grant savings, energy usage will be adjusted for facility upgrades (ECMs), weather, and other major facility
changes. The performance incentive will not be prorated for achieving lower or higher energy savings
targets.
Performance Grant 1 can be paid at the end of a twelve-month period following the completion of the Start-
up scope of work provided that the customer completes the deliverables outlined at the end of item 4.
4. Performance Grant 2
The second performance incentive will operate under the same conditions as the first except that the target
will be the projected savings for year three, determined at the time of eligibility.
Table 2: Customer Baseline and PSE Projected Savings Targets
ElectricityNatural Gas EUI
PSE Energy Only (kWh) (Therms) (kBtu / SqFt)
Baseline 11,555,931 79,529 204.5
Year 1 Savings - Target 3% 346,678 2,386 198.4
Year 2 Savings - Target 5% 560,463 3,857 188.5
Year 3 Savings - Target 5% 532,440 3,664 179.0
TOTAL PSE SAVINGS 1,439,580 9,907 25.5
Savings Projection
The following table is an estimate of the savings potential from implementing .5 FTE
of resource
management activities at CUST facilities.
Table 3: Customer Savings Projections
Fixed Baseline is Customer ProfileResource Cost SavingskWh Therms
Year 1
$ 38,036 346,678 2,386
Year 2
$ 99,527 907,141 6,243
Year 3
$ 157,9441,439,580 9,907
Gross Savings
$ 295,507
RCM Program Costs (minus Incentives)
$ 78,000
NET PROGRAM SAVINGS2,693,399 18,536
$ 217,507
Attachments – Page 3
To qualify for Performance Incentives
The City of Auburn agrees to:
a.Provide adequate staffing and management to support .5 FTE RCM functions through the period of the
agreement;
b.Use a resource accounting tool to routinely monitor and track billing, use and expenditures;
c.Establish year prior to agreement as baseline of use and expenditures, with provisions to modify for
weather-adjustments, changes in square feet and changes in functionality;
d.Develop and endorse an organization-wide resource conservation policy;
e.Develop and implement individual facility resource plans;
f.Implement resource conservation activities per plans;
g.Conduct quarterly meetings to update management and participants with savings reports and develop
plans for the upcoming quarter; and
h.Have RCM regularly attend PSE RCM network and training meetings;
i.Provide annual reports to PSE with resource consumption and dollar savings attributed to the program.
j.Allow PSE to promote CUST’s success and program efforts via case-studies and other materials to help
educate and advance the RCM community.
k.Work with the City of Federal Way per the terms of the inter-local agreement to ensure that the
conservation targets have been met by both agencies prior to submitting a payment request to Puget
Sound Energy. Puget Sound Energy will not remit incentive payment until both agencies have attained
the conservation targets associated with each individual grant agreement.
5. RCM Training Stipend
For each RCM FTE employed under a Puget Sound Energy RCM agreement, PSE will provide a grant of
$2,000 for training. The training budget is based on a negotiated PSE-RCM discounted tuition for the
Building Operator Certification (BOC) program. The stipend can be applied to any other equivalent,
credentialed RCM-related training course with prior PSE approval only. Tuition allotment will be prorated
based on customer FTE allocation.
The RCM will be responsible for initial payment and registration and any course-related materials and/or
supplies. Travel or other ancillary costs will not be reimbursed. Upon completion of the training course, the
RCM shall submit to PSE their final coursework and certificate of completion along with an invoice
requesting reimbursement. PSE will review the submittal for successful completion of the training program,
and upon approval, will make payment to CUST up to the amount of the training cost or stipend outlined in
this grant.
The City of Auburn agrees to:
a.Submit a copy of the student’s Project Coursework and Transcript upon completion of the full training
series along with an invoice requesting payment.
b.If requested, present an overview of their project to PSE and RCM customers.
Attachments – Page 4
ATTACHMENT B
FACILITY INVENTORY
for
City of Auburn
SiteSiteAddressZip Facility Size
ID(Sq. Ft.)
01Auburn City Hall 25 West Main Street98001 57,316
02 Auburn City Hall Annex 1 East Main Street98001 45,211
(New)
03Auburn Justice Center 340 East Main Street98002 36,163
04 Auburn Facilities (GSA) 2905 C Street SW, Bldg. 81598001 11,837
05 Gambini Bldg. (Partially 108 N. Division Street98001 15,000
vacant)
06Auburn Public Works: M&O 1305 C Street SW98001 17,940
07Veteran’s Memorial Bldg. 411 E Street98002 1,813
08 Les Gove Multi-Purpose 1040 Deal’s Way98002 1,262
Bldg.
th
09PRAB 910 9 Street SE98002 7,804
th
10Auburn Senior Center 808 9 Street SE98002 11,667
11 Auburn Golf Course 29630 Green River Road SE98092 14,114
Clubhouse
12 Mountain View Cemetery 2020 Mountain View Dr.98001 4,011
Office
13 Auburn Avenue Theatre 10 Auburn Ave98001 7,590
14Water and wastewater VariousVarious N/A
pumping infrastructure
Total Square Footage 231,728+
Attachments – Page 5
ATTACHMENT C
Resource Conservation Management Tariffs
Attachments – Page 6