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HomeMy WebLinkAboutEnergy Performance Contract1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Natalie Meyer, Sustainability Program Manager SUBJECT: Energy Performance Contract with McKinstry Essention, LLC for City of Bozeman Energy Saving Projects MEETING DATE: December 1, 2014 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize City Manager to sign an Energy Performance Contract with McKinstry Essention, LLC for City of Bozeman energy saving projects. BACKGROUND: As part of our ongoing effort to conserve energy and water within municipal buildings and facilities, the City completed an Investment Grade Audit of 30 City of Bozeman buildings and facilities. The goal was to create a comprehensive list of potential energy and water conservation, efficiency, and renewable energy projects with the associated cost estimates, electricity and gas savings, operational savings, and return on investment (ROI) information for each project. McKinstry is an Energy Service Company (ESCO) on the State of Montana’s list of pre-qualified ESCOs that offers Investment Grade Audits and Energy Performance Contracts. They provide turnkey service, sometimes compared to design-build construction contracting, which equips customers with a comprehensive set of energy efficiency and renewable energy recommendations. These projects are accompanied with guarantees that the savings produced by a project will be sufficient to finance the full cost of the project. Following completion of the Investment Grade Audit of 30 City of Bozeman Facilities in June of 2014, we recommended to the Commission that we move forward with 19 projects from the audit report as summarized in Table 2. The projects include lighting and controls upgrades, boiler commissioning, mechanical upgrades, custom systems training, PC Power Management software, and some envelope improvements. During the FY15 Final Budget adoption, the Commission included funding for 17 of these projects and directed staff to identify funding sources for two of the most significant projects: the LED Parking Garage Lighting upgrades and the LED Street Lighting upgrades. Over the last several months, a funding source was identified for both of these projects. 122 2 LED Parking Garage Lighting: The Parking Garage Lighting Project will replace existing lights on the four main levels, excluding the roof, with LED lamps and occupancy sensors. The Downtown TIF Board voted to fund this project in June 2014 (Attachment B). LED Street Lighting: The LED Street Light project will replace all 191 City-owned and metered street lights with LEDs. The Streets Department does not have the staff available to complete a project of this scale in one year. With the backlog of necessary street maintenance projects, we did not recommend paying for this project from the Street Maintenance Fund cash. Instead, we indicated we would seek financing opportunities through the Department of Commerce Montana Board of Investments’ (MBOI), INTERCAP Program. We requested total financing for the project and the loan will be repaid with the annual energy and operating savings, eliminating the need to increase annual assessments to repay the loan. As part of the INTERCAP loan applications process, our Investment Grade Audit was reviewed by the Montana Department of Environmental Quality. After an extensive review period, they made a recommendation to INTERCAP to fund the LED Street Light project. The City of Bozeman was officially approved for this loan on November 24, 2014. The loan term is 15 years with a variable interest rate. The interest rate is currently 1 percent and the 10-year program average is 2.8 percent. The Board of Investments requires that projects maintain a positive cash flow at 4.289 percent, which is the overall 28-year average interest rate for the program. The LED Street Light cash flow is included in Schedule D of the attached Performance Contract. In the first two years of the loan, the cash flow indicates no surplus savings net of the loan principal and interest; however, we are confident the interest rate will likely remain below 4.289 percent in the first two years. The net annual cash flow at year 15 is projected to be $46,952. By approving this Performance Contract, the Commission is committing to move forward with the LED Street Light project. However, approving the Performance Contract does not commit the City to accepting a loan from INTERCAP. A separate Commission resolution will be required by INTERCAP before the City of Bozeman can accept this loan, which we will present to the Commission upon receiving the full agreement from INTERCAP. If the Commission does not wish to receive financing from INTERCAP, we will investigate other financing options, but we are not currently pre-approved with other lenders. Table 1 provides a breakdown of the total project cost by funding source. Table 1. Projects by Funding Source Funding Source Guaranteed Maximum Price General Fund $63,731 Street Maintenance Fund (INTERCAP Loan) $222,057 Library Depreciation Reserve $6,604 Downtown TIF $182,506 Vehicle Maintenance Fund $630 Wastewater Fund $18,480 TOTAL $494,008 123 3 Energy Performance Contract The 19 projects included in the Energy Performance Contract with McKinstry totals $494,008. The annual utility savings are guaranteed at $49,645 and annual operational savings are $9,103. With rebates and incentives, the simple payback for the overall project is nine years. The projects will improve building efficiency, reduce operational costs, and improve occupant comfort. Through this performance-based contracting agreement, the improvements will be repaid to the City through the energy savings guaranteed by McKinstry. Any shortfall would be paid for by McKinstry as part of its guarantee. McKinstry will monitor and verify energy savings from the projects for three years. They will provide annual measurement and verification reports to the City to confirm that savings were achieved. If there is a savings shortfall, McKinstry will make corrections to remedy the shortfall. Measurement and verification will continue until McKinstry achieves three consecutive years of the guaranteed savings. Through this contract, the City of Bozeman will not only decrease energy expenditures, but also reduce the environmental impact of operations throughout the City and advance our goals under the Municipal Climate Action Plan. Key Definitions: GMAX Pricing: The Guaranteed Maximum Price is a “Not to Exceed Price” based on quotes McKinstry has received from their pre-qualified sub-contractors. The price is considered turnkey with engineering, design, project administration, construction management, permit fees, equipment, labor, disposal expenses, and measurement and verification. Upon signing the Energy Performance Contract, McKinstry will conduct a lighting Request for Proposals to ensure we receive the most competitive price. This means the City may pay less than the Guaranteed Maximum Price. Annual Utility Savings: These are guaranteed for three years during the measurement and verification period. Should the project fail to realize the stated savings, McKinstry would compensate the City of Bozeman for the shortfall. Annual Operational Savings: Operational savings are estimated for a period of five years, but generally continue after this period. Savings include service calls and maintenance contracts only, not staff time. A summary of the projects and the associated Guaranteed Maximum Price, utility savings, operational savings, and simple payback period is outlined below in Table 2. 124 4 Table 2. Project Summary Project GMAX Annual Utility Savings Annual Operational Savings Simple Payback (w/ rebates) Beall-Modify Thermostat Schedules $483 $75 $0 6.5 Beall-Exterior Lighting $5,662 $481 $92 10.3 Beall-Envelope Improvements $3,515 $199 $0 17.7 Bogert-Boiler Commissioning $2,047 $2,110 $1,000 0.7 City Hall-Daylight Controls $1,015 $241 $0 1.9 Kirk-Lighting Upgrade $1,588 $202 $92 5.1 Library-Lighting Controls $2,144 $1,120 $0 1.9 Library-Water Conservation $4,460 $842 $1,000 2.4 Facilities-Custom Systems Trainings $7,840 $0 $0 N/A IT PC Power Management $12,230 $5,009 $0 1.9 Parking Garage-Lighting Upgrades $182,506 $11,590 $5,627 13.3 Professional Building- Controls Sequence $7,552 $0 $0 N/A Senior Center- Kitchen Economizer $13,251 $2,109 $0 7.4 Senior Center- Exterior Door Seals $1,062 $84 $0 12.6 Streets-LED Street Lights $222,057 $18,604 $1,009 11.4 Vehicle Maintenance-Boiler Temperature Reset $630 $125 $0 5.0 WRF- Lighting Improvements $18,480 $5,845 $282 2.8 $494.008 $49,645 $9,103 9.0 ALTERNATIVES: As suggested by the Commission. FISCAL EFFECTS: Funding for 17 of the energy projects was included in the FY15 Budget. The Downtown TIF will pay for the LED Parking Garage Project and the LED Street Lights Project will be financed. All principal and interest will be repaid with energy savings. Overall, the 19 energy projects will save the City $49,645 annually on our utility bills and $9,103 in operational savings. Attachments: Energy Performance Contract and Attachments Downtown TIF June 2014 Meeting Minutes Report compiled on: November 24, 2014 125 ENERGY PERFORMANCE CONTRACT BETWEEN CITY OF BOZEMAN AND MCKINSTRY ESSENTION, LLC 126 City of Bozeman Energy Performance Contract Page 2 ENERGY PERFORMANCE CONTRACT Table of Contents ARTICLE 1. DEFINITIONS, SCHEDULES, EXHIBITS AND APPENDICES Section 1.1. Definitions, Acceptance of Investment Grade Audit Report, Other Documents Section 1.2. Investment Grade Audit Report Section 1.3. Other Documents PAYMENTS AND SCHEDULES ARTICLE 2. PURCHASE AND SALE; CONSIDERATION/PAYMENT; SERVICES AND/OR SUPPLIES; COMMENCEMENT DATE AND TERMS Section 2.1. Purchase and Sale Section 2.2. Consideration/Payment Section 2.3. Services and/or Supplies Section 2.4. Commencement Date Section 2.5. Effective Date/Duration ARTICLE 3. SAVINGS GUARANTEE; ANNUAL RECONCILIATION; PAYMENTS TO CONTRACTOR Section 3.1. Energy and Cost Savings Guarantee Section 3.2. Annual Review and Reimbursement/Reconciliation Section 3.3. Contractor Compensation and Fees Section 3.4. Payment Section 3.5. Effective Date of Payment Obligation Section 3.6. Open Book Pricing; Independent Contractor Status; Labor Relations Section 3.7. Construction Savings and Owner-Directed Change Orders ARTICLE 4. FISCAL FUNDING Section 4.1. Non-appropriation of Funds Section 4.2. Non-substitution AUDIT AND CONSTRUCTION PHASE ARTICLE 5. ENERGY USAGE RECORDS AND DATA ARTICLE 6. LOCATION AND ACCESS ARTICLE 7. PERMITS AND APPROVALS; COORDINATION Section 7.1. Permits and Approvals Section 7.2. Coordination During Installation 127 City of Bozeman Energy Performance Contract Page 3 ARTICLE 8. CONSTRUCTION SCHEDULE AND EQUIPMENT INSTALLATION; APPROVAL Section 8.1. Construction Schedule; Equipment Installation Section 8.2. Award of Subcontracts Section 8.3. Systems Startup Approval ARTICLE 9. EQUIPMENT WARRANTIES ARTICLE 10. STANDARDS OF COMFORT ARTICLE 11. ENVIRONMENTAL REQUIREMENTS Section 11.1. Excluded Material and Activities Section 11.2. Polychlorinated Biphenyl (PCB) Ballasts; Mercury Lamps ARTICLE 12. TRAINING BY CONTRACTOR POST-CONSTRUCTION PHASE ARTICLE 13. EQUIPMENT SERVICE Section 13.1. Actions by Contractor Section 13.2. Malfunctions and Emergencies Section 13.3. Actions by [insert agency name] ARTICLE 14. MODIFICATION, UPGRADE OR ALTERATION OF THE EQUIPMENT Section 14.1. Modification of Equipment Section 14.2. Upgrade or Alteration of Equipment ARTICLE 15. MATERIAL CHANGES Section 15.1. Material Change Defined Section 15.2. Reported Material Changes; Notice by City of Bozeman Section 15.3. Other Adjustments ARTICLE 16. PERFORMANCE BY CONTRACTOR Section 16.1. Corrective Action; Accuracy of the Services Section 16.2. Annual Reporting Requirements; Annual ENERGY STAR Rating ADMINISTRATION ARTICLE 17. OWNERSHIP OF CERTAIN PROPRIETARY RIGHTS; EXISTING EQUIPMENT Section 17.1. Ownership of Certain Proprietary Property Rights Section 17.2. Ownership of Existing Equipment ARTICLE 18. INSURANCE AND BONDS Section 18.1. Claims, Disputes, and Controversies 128 City of Bozeman Energy Performance Contract Page 4 Section 18.2. Resolution of Claims, Disputes, and Controversies Section 18.3. Mediation ARTICLE 19. DELAYS; CONDITIONS BEYOND CONTROL OF THE PARTIES Section 19.1. Delays Within Control of Contractor Section 19.2. Conditions Beyond Control of the Parties; Force Majeure ARTICLE 20. ADDITIONAL DUTIES AND REPRESENTATIONS OF THE PARTIES ARTICLE 21. MISCELLANEOUS DOCUMENTATION PROVISIONS Section 21.1. Construction Performance and Payment Bonds, Labor and Material Payment Bonds Section 21.2. Further Documents Section 21.3. City of Bozeman Responsibilities Section 21.4. Waiver Of Liens ARTICLE 22. CONFLICTS OF INTEREST ARTICLE 23. SCOPE, AMENDMENT AND INTERPRETATION ARTICLE 24. CHOICE OF LAW AND VENUE ARTICLE 25. DISPUTE RESOLUTION ARTICLE 26. LIAISON AND SERVICE OF NOTICES ARTICLE 27. GENERAL TERMS AND CONDITIONS Section 27.1. Design/Engineering Section 27.2. Access and Retention of Records Section 27.3. Assignment, Transfer and Subcontracting Section 27.4. Compliance With Laws Section 27.5. Nondiscrimination Section 27.6. Intoxicants, DOT Drug and Alcohol Regulations; Safety and Training Section 27.7. Modification Section 27.8. Severability Section 27.9. Shipping CONTRACT ATTACHMENT I: Schedules, Exhibits, and Appendices SAVINGS GUARANTEE Schedule A Energy and Cost Savings Guarantee Schedule B Baseline Energy Consumption 129 City of Bozeman Energy Performance Contract Page 5 Schedule C Savings Measurement and Verification Plan; Methodology to Adjust Baseline PAYMENTS AND SCHEDULE Schedule D Final Project Cost & Project Cash Flow Analysis Schedule E Not Used Schedule F Not Used AUDIT AND CONSTRUCTION PHASE Schedule G Not Used Schedule H Scope of Work Schedule I Construction and Equipment Installation Schedule Schedule J Systems Start-Up and Commissioning; Operating Parameters of Installed Equipment Schedule K Standards of Comfort Schedule L Contractor’s Training Responsibilities POST-CONSTRUCTION Schedule M Not Used Schedule N Not Used Schedule O Facility Maintenance Checklist ADMINISTRATION Schedule P Annual Reporting Requirements Exhibits Exhibit I Performance Bond Exhibit II Labor and Material Payment Bond Exhibit III (i) Certificate of Acceptance—Investment Grade Audit Report Exhibit III (ii) Certificate of Acceptance—Installed Equipment Exhibit III (iii) Notice of Substantial Completion – Individual FIMs Exhibit IV Equipment Warranties Exhibit V Montana Prevailing Wage Schedule Appendices Appendix A Investment Grade Audit Report 130 City of Bozeman Energy Performance Contract Page 6 THIS CONTRACT is entered into by and between the City of Bozeman, (hereinafter referred to as the “City”), and McKinstry Essention, LLC (hereinafter referred to as the “Contractor”). This Contract is entered into in accordance with Title 18, Montana Code Annotated (MCA), Title 90, Chpt. 4, Part 11, MCA and the Administrative Rules of Montana (ARM), Title 2, chapter 5, for the purpose of installing certain energy and water cost saving equipment, described in Schedule H (Scope of Work), and providing other services designed to save energy for the City property and buildings listed on Schedule H (the “Project Site(s)”). ARTICLE 1. DEFINITIONS; ACCEPTANCE OF INVESTMENT GRADE AUDIT REPORT; OTHER DOCUMENTS Section 1.1. Definitions Certificate of Acceptance: The certificate substantially in the form provided in Exhibit III (i) and (ii). Commencement Date: The date described in Section 2.4 (Commencement Date). Contract: This Energy Performance Contract and all attached Schedules and Exhibits. Contract Sum: The sum of all materials, labor, auditing, design, engineering, project construction management fees, overhead, profit, contingency, subcontracted services related to the project. Energy and Cost Savings Guarantee: The guarantee that is achieved as a result of the installation and operation of the Equipment and provision of services provided for in this Contract, and in accordance with the Savings Calculation Formula, shown in Schedule C (Savings Measurement and Verification Plan; Methodology to Adjust Baseline). Equipment: The goods to be installed in accordance with the Investment Grade Audit Report. Independent Auditor: Independent Auditor means an Engineering Consulting firm or an ESCO with a registered Professional Engineer. Interim Period: The period from contract execution until the Commencement Date. Investment Grade Audit Report: A study that includes detailed descriptions of the improvements recommended for the project, the estimated costs of the improvement and the utility and operations and maintenance cost savings projected to result from the recommended improvements. 131 City of Bozeman Energy Performance Contract Page 7 Project Site(s): The City facilities in need of energy and water saving equipment, as listed on Schedule H (Scope of Work). Guaranteed Maximum Price: The maximum “not to exceed” amount that the City will have to pay for the Work to implement the energy conservation measures (“ECMs”) identified in Schedule D (Final Project Cost & Project Cash Flow Analysis). Work: Collectively, the Equipment, professional services and project construction related to the project. Section 1.2. Investment Grade Audit Report Contractor has prepared the Investment Grade Audit Report of the Project Site(s) set forth in Appendix A (Investment Grade Audit Report) and dated July 9, 2014, as revised in Revision 1 dated October 16, 2014, which has been approved and accepted by the City as set forth in Exhibit III (i) (Certificate of Acceptance— Investment Grade Audit Report). The audit includes all ECMs agreed upon by the parties. Section 1.3. Other Documents Acceptance by the City of the Investment Grade Audit Report is reflected in Exhibit III (i). This Contract and the attached Schedules govern in the event of any inconsistencies between the Investment Grade Audit Report and this Contract. PAYMENTS AND SCHEDULES ARTICLE 2. PURCHASE AND SALE; CONSIDERATION/PAYMENT; SERVICES AND/OR SUPPLIES; COMMENCEMENT DATE AND TERMS Section 2.1. Purchase and Sale Contractor agrees to provide the Equipment, together with installation, maintenance and other services as provided in Schedule H (Scope of Work) and in Schedule I (Construction and Equipment Installation Schedule). Section 2.2. Consideration/Payment In Consideration for the services to be provided, the City shall pay the Contractor up to a Guaranteed Maximum Price of $494,008, in conformance with Schedule D (Final Project Cost & Project Cash Flow Analysis). Payment terms are described in Section 3.4. 132 City of Bozeman Energy Performance Contract Page 8 Section 2.3. Services and/or Supplies Contractor shall provide to the City the services identified in Schedule H (Scope of Work) and Schedule L (Contractor’s Training Responsibilities). Equipment to be installed and the quality of materials selected are subject to approval of the City in the design review process. Contractor shall supervise and direct the Work and shall be responsible for all construction means, methods, techniques, sequences, and procedures and for coordinating all portions of the Work under this Contract. Contractor shall be responsible to pay for all labor, materials, equipment, tools, construction equipment and machinery, transportation and other facilities and services necessary for the proper execution and completion of the Work. Section 2.4. Commencement Date The Commencement Date shall be the first day of the month after the month in which all schedules are in final form and accepted by the City and the Contractor has delivered a Notice to the City that it has installed and commenced operating all of the Equipment specified in Schedule H (Scope of Work) in accordance with Article 8 (Construction Schedule and Equipment Installation; Approval), Schedule I (Construction and Equipment Installation Schedule) and Schedule J (Systems Start-Up and Commissioning; Operating Parameters of Installed Equipment), and the City has inspected and accepted the installation and operation as evidenced by the Certificate of Acceptance, Exhibit III (ii) (Certificate of Acceptance— Installed Equipment). Notwithstanding anything to the contrary in this Article 2 (Purchase and Sale; Commencement Date and Terms, Interim Period), the Commencement Date shall not occur and the City shall not be required to accept the work under this Contract unless and until all Equipment installation for the Project Site(s) is completed by Contractor in accordance with the terms of this Contract. The City shall have 15 days after notification by Contractor to inspect and accept the Equipment. The City reserves the right to reject the Equipment if installation fails to meet reasonable standards of workmanship, does not comply with applicable building codes, or is otherwise not in compliance with this Contract. Contractor shall not be paid in full, including retainage, until after a final walk-through is completed and the City has accepted the installed equipment, and Contractor has satisfied all claims for labor and materials and the Certificate of Acceptance has been signed. Section 2.5. Effective Date/Duration Contract Term. This Contract shall take effect immediately upon its execution by all parties and terminate three years from the Commencement Date, unless terminated earlier in accordance with this Contract or extended by the parties in accordance with Schedule C (Savings Measurement and Verification Plan; Methodology to Adjust Baseline) to include the full term of the Measurement and Verification time period. (§ 18-4-313, MCA.). The period from contract execution until the Commencement Date 133 City of Bozeman Energy Performance Contract Page 9 constitutes the “Interim Period.” All energy savings achieved during the Interim Period are to be credited to the City. ARTICLE 3. SAVINGS GUARANTEE; ANNUAL RECONCILIATION; PAYMENTS TO CONTRACTOR Section 3.1. Energy and Cost Savings Guarantee Contractor has formulated and, subject to the adjustments provided for in Article 15 (Material Changes), guarantees the annual level of energy and water cost savings to be achieved as a result of the installation and operation of the Equipment and provision of services provided for in this Contract to the extent necessary to pay for the conservation measures, in accordance with 90-4-1107, MCA. The Energy and Cost Savings Guarantee during the Contract term is set forth in annual increments as specified in Schedule A (Energy and Cost Savings Guarantee), and has been structured by Contractor to be sufficient to cover all payments required to be made by the City, as set forth in Schedule D (Final Project Cost & Project Cash Flow Analysis). Section 3.2. Annual Review and Reimbursement/Reconciliation For each one-year period of the Contract after the Commencement Date, Contractor shall measure and/or calculate energy related cost savings, as specified in Schedule C (Savings Measurement and Verification Plan; Methodology to Adjust Baseline), and provide a report of the cost savings to the City within ninety (90) days after the end of the one-year period. If Energy and Cost Savings achieved during a savings measurement year are less than the Guaranteed Energy and Cost Savings for that year, as defined in Schedule A (Energy and Cost Savings Guarantee), Contractor shall pay the City an amount equal to the deficiency. Contractor shall remit such payments to the City within thirty (30) days after Contractor has submitted the annual report to the City. In addition, if Energy and Cost Savings achieved during a savings measurement year are less than the Guaranteed Energy and Cost Savings for that year, Contractor and the City agree to work together in good faith to identify appropriate corrective measures. Contractor will implement such corrective measures promptly and at Contractor’s sole expense. When the total energy savings in any one year during the savings measurement period exceed the Energy and Cost Savings Guarantee set forth in Schedule A (Energy and Cost Savings Guarantee), the excess savings shall first be applied to reimburse Contractor for any payment Contractor made to the City to meet Contractor’s guarantee for previous years in which the energy savings fell short of Contractor’s Energy and Cost Savings Guarantee under the terms of Schedule A (Energy and Cost Savings Guarantee). In no event shall credit for excess savings be used to satisfy saving guarantees in future years of the Contract. 134 City of Bozeman Energy Performance Contract Page 10 In the event of any disagreement in the annual reconciliation, the City shall notify the Contractor in writing of the alleged discrepancy within thirty (30) calendar days. Any deficiency amounts not in dispute shall be paid in accordance with this section. The Contractor and the City agree to work in good faith to resolve any disagreement over the calculation of the annual energy savings. Should the parties be unable to resolve the disagreement, then either party may provide written notice to the other party and both parties will then agree that an independent auditor will be engaged to provide a binding decision on whether the calculation, as prepared by the Contractor, is fairly stated in accordance with this Contract. If the parties cannot agree on an auditing firm, then each shall designate a firm, and the two designated firms shall identify a mutually agreeable third firm and such third firm alone shall perform the audit. The independent auditing firm shall include in its report any exceptions determined by its review. Each party agrees to reasonably cooperate with the auditing firm, including without limitation, delivering to such firm any records, documents or information reasonably requested in electronic format, if available, or otherwise. Any payments between the parties that are necessary to resolve any irregularities identified in the review will be made within sixty (60) calendar days after submission of the review to the parties. If the independent auditor determines that Contractor's determination of the difference between the annual Energy Savings Guarantee and the amount of the actual energy savings achieved at the Project Site(s) was in error in the City’s favor (i.e. contractor showed greater savings than determined by independent audit) by more than 5%, the Contractor shall pay the entire cost of the audit; however, if the Contractor's determination of the Energy Savings Guarantee is not in error or is in error in the Contractor's favor, the City shall pay for the entire cost of the audit. In any case, the calculation of energy savings shall be changed to reflect the findings of the audit, and the calculations of savings related to the Energy Savings Guarantee will be modified to reflect such. Section 3.3. Contractor Compensation and Fees Contractor has structured the Energy and Cost Savings Guarantee, referred to in Section 3.1 above, to be sufficient to include all payments required to be made by the City in connection with this Contract. Actual energy and operations’ savings achieved by the City through the operation of Equipment and through the performance of services by Contractor shall be sufficient to cover all fees to be paid by the City to Contractor for its services, as set forth in, and in accordance with, Schedule D (Final Project Cost & Project Cash Flow Analysis). Section 3.4. Payment Procedure for Work Completed During Interim Period Contractor will invoice the City monthly for progress payments during the Interim Period, calculated in accordance with the provisions in Schedule D (Final Project Cost and Project Cash Flow Analysis). The Contractor shall provide the City with an itemized monthly invoice of amount due along with any other evidence reasonably 135 City of Bozeman Energy Performance Contract Page 11 required by the City to demonstrate amount of required payment, including a Notice of Substantial Completion – Individual FIMs (Exhibit III(iii)) if applicable. Contractor fixed fees shall be invoiced and substantiated to the City’s satisfaction on a percent complete basis. All invoices submitted by the Contractor, less a five percent (5%) retainage (0% if a retention bond is provided by the Contractor), shall be due and payable within thirty (30) calendar days of receipt of the invoice. Five percent (5%) retainage will not be withheld on any Audit fee or Design Services fees. Contractor may be required to provide banking information at the time of contract execution in order to facilitate the City’s electronic funds transfer payments. Pursuant to 15-50-205 and 206, MCA, the Contractor shall withhold the 1% license fee required for public contracts from payments to any subcontractors and inform the Montana Department of Revenue on prescribed forms of the amount of the 1% license fee in the Contractor’s account to be allocated and transferred to the subcontractor. The notification to transfer portions of the 1% license fee must be filed within 30 days after each payment is made to subcontractors. Pursuant to 15-50-206 MCA, the City shall withhold, in addition to other amounts withheld as provided by law, 1% of all payments due the Contractor and shall transmit that money to the Montana Department of Revenue. Each subcontractor who performs work greater than $5,000 shall have 1% of its gross receipts withheld by the Contractor. The Contractor shall notify the Department of Revenue on the department’s prescribed forms. All gross receipts tax obligations withheld shall be handled, disbursed, and otherwise processed as dictated by the Department of Revenue. Once payments made to the Contractor total ninety-five percent (95%) of the Total Maximum Project Cost in accordance with Schedule D (Final Project Cost & Final Cash Flow Analysis), as increased or decreased by approved change orders requested by the City, the City shall not make further payments other than the five percent (5%) retainage in accordance with this Section 3, unless a retention bond is provided by Contractor in which case there shall be 0% retainage. Section 3.5. Effective Date of Payment Obligation Notwithstanding the above provisions in Section 3, the City is not required to begin any payments to Contractor under this Contract until all equipment is installed by Contractor in accordance with Article 8 (Construction Schedule and Equipment Installation; Approval) and Schedule J (Systems Start-Up and Commissioning; Operating Parameters of Installed Equipment) and accepted by the City, as evidenced by the signed Certificate of Acceptance, Exhibit III (ii) (Certificate of Acceptance—Installed Equipment), and until this equipment is fully and properly functioning. 136 City of Bozeman Energy Performance Contract Page 12 Section 3.6. Open Book Pricing; Independent Contractor Status; Labor Relations Open book pricing is required. Contractor shall fully disclose all direct construction costs, including all subcontract costs and equipment costs. These costs, excluding Contractor fixed fees, will be reconciled to the City upon formal completion in the event of any construction cost savings. Contractor will maintain cost accounting records on authorized work performed under actual costs for labor and material, or other basis requiring accounting records. The parties agree that Contractor is an independent contractor for purposes of this Agreement and is not to be considered an employee of the City for any purpose. Contractor is not subject to the terms and provisions of the City’s personnel policies handbook and may not be considered a City employee for workers’ compensation or any other purpose. Contractor is not authorized to represent the City or otherwise bind the City in any dealings between Contractor and any third parties. Contractor shall comply with the applicable requirements of the Workers’ Compensation Act, Title 39, Chapter 71, MCA, and the Occupational Disease Act of Montana, Title 39, Chapter 71, MCA. Contractor shall maintain workers’ compensation coverage for all members and employees of Contractor’s business, except for those members who are exempted by law. Contractor shall furnish the City with copies showing one of the following: (1) a binder for workers’ compensation coverage by an insurer licensed and authorized to provide workers’ compensation insurance in the State of Montana; or (2) proof of exemption from workers’ compensation granted by law for independent contractors. Contractor shall post a legible statement of all wages and fringe benefits to be paid to the Contractor’s employees and the frequency of such payments (i.e., hourly wage employees shall be paid weekly). Such posting shall be made in a prominent and accessible location at the Contractor’s normal place of business and shall be made no later than the first day of services provided under this Agreement. Such posting shall be removed only upon expiration or termination of this Agreement. In performing the services under this Agreement, Contractor shall give preference to the employment of bona fide residents of Montana, as required by §18-2-403, MCA, and as such term is defined by §18-2-401(1), MCA. When making assignments of work, Contractor shall use workers both skilled in their trade and specialized in their field of work for all work to which they are assigned. 137 City of Bozeman Energy Performance Contract Page 13 Pursuant to §§18-2-403 and 18-2-422, MCA, Contractor shall pay wages, fringe benefits, and expenses including travel allowances as set forth in the Montana Prevailing Wage Rates for Building Construction effective July 11, 2014 and applicable to Gallatin County, Montana which schedule is set forth in Exhibit V, Montana Prevailing Wage Rate Schedule. Contractor shall pay all hourly wage employees on a weekly basis. Violation of the requirements set forth in the above State of Montana schedule of prevailing wage rates may subject the Contractor to the penalties set forth in §18-2-407, MCA. Contractor shall maintain payroll records during the term of this Agreement and for a period of three (3) years following termination of this Agreement. The Contractor shall ensure that any person, firm or entity performing any portion of the services under this Agreement for which the contractor, subcontractor or employer is responsible, is paid the applicable standard prevailing rate of wages. In the event that, during the term of this Agreement, any labor problems or disputes of any type arise or materialize which in turn cause any services to cease for any period of time, Contractor specifically agrees to take immediate steps, at its own expense and without expectation of reimbursement from City, to alleviate or resolve all such labor problems or disputes. The specific steps Contractor shall take to services shall be left to the discretion of Contractor; provided, however, that Contractor shall bear all costs of any related legal action. Contractor shall provide immediate relief to the City so as to permit the services to continue at no additional cost to City. Contractor shall indemnify, defend, and hold the City harmless from any and all claims, demands, costs, expenses, damages, and liabilities arising out of, resulting from, or occurring in connection with any claims regarding underpaid prevailing wages. Section 3.7. Construction Savings and Owner Directed Change Orders Upon the execution of a Certificate of Acceptance – Installed Equipment (Exhibit III(ii)), if the total project cost is less than the Total Guaranteed Cost, then the difference between the actual and estimated costs as reconciled in accordance with Section 3.7 may at the City’s discretion be used to implement more projects per the terms of this Contract, provided that the difference is sufficient to fund additional project(s). The Contractor shall apply the fee structure to those additional projects per Schedule D, Table 4.1: Budget Summary Report. For purposes of those additional project(s), a new Certificate of Acceptance – Installed Equipment shall be executed, which date shall be the Commencement Date, for purposes of this Contract, as to those project(s) 138 City of Bozeman Energy Performance Contract Page 14 only. Otherwise the difference between the actual and estimated costs will be identified as project savings that can be used to offset other ECM project costs such as change orders. If there is a net project savings from all ECM projects installed, the net savings belongs to the City to be applied according to the terms of the financing requirements for the total project. In the event the City issues change orders that increase costs, the amount of those const increases shall be identified by the Contractor and accounted for in a separate budget beyond the original Total Guaranteed Cost. It will be the City’s responsibility to pay these costs as the project is being constructed. The Contractor shall use the mark-up structure indicated in Schedule D, Table 4.1: Budget Summary Report as the original basis for the pricing of change orders. However, if either party believes that the scale and/or scope of the change order is not properly reflected in the pricing in Schedule D, then the parties will negotiate a mutually agreed-upon fee, recorded in a written change order and signed by authorized representatives of both parties. ARTICLE 4. FISCAL FUNDING Section 4.1. Non-appropriation of Funds The City is dependent upon state and federal appropriations for its funding. If state or federal government funds are not appropriated or otherwise made available to support continued performance of this Contract in subsequent fiscal periods, the City shall terminate this contract. The City shall provide Contractor the date the City’s termination shall take effect. The City shall not be liable to the Contractor for any payment that would have been payable had the contract not been terminated under this provision. The City shall be liable to the Contractor only for the payment, or prorated portion of that payment, owed to the Contractor up to the date the City’s termination takes effect. This is the Contractor’s sole remedy. Section 4.2. Non-substitution In the event of a termination of this contract due to the non-appropriation of funds or in the event this Contract is terminated by Contractor due to a default by the City, the City agrees, to the extent permitted by state law, not to purchase, lease, rent, borrow, seek appropriations for, acquire or otherwise receive the benefits of any of the same and unique services performed by Contractor from another Energy Service Company for a period of three-hundred sixty five (365) calendar days following such default by the City, or termination of this Contract due to non-appropriations. AUDIT AND CONSTRUCTION PHASE ARTICLE 5. ENERGY USAGE RECORDS AND DATA The City has furnished, and shall continue to furnish (or authorize its energy suppliers to furnish) during the Term of this Contract to Contractor or its designee, 139 City of Bozeman Energy Performance Contract Page 15 upon its request, all of its records and complete data concerning energy and water usage and related maintenance for the Project Site(s). ARTICLE 6. LOCATION AND ACCESS Contractor acknowledges that there exists sufficient space on the Project Site(s) for the installation and operation of the Equipment. Contractor is responsible for all aspects of protecting the equipment during construction. The City shall take reasonable steps to protect the Equipment from harm, theft, and misuse after final acceptance has been obtained. The City shall provide access to the Project Site(s) for Contractor to perform any function related to this Contract during regular business hours, or such other reasonable hours as may be requested by Contractor and acceptable to the City. The City shall grant Contractor immediate access to make emergency repairs or corrections as it may, in its discretion, determine are needed. Contractor shall immediately notify the City when emergency action is taken and follow up with written notice within three (3) business days, specifying the action taken, the reasons for the action, and the impact upon the Project Site(s), if any. ARTICLE 7. PERMITS AND APPROVALS; COORDINATION Section 7.1. Permits and Approvals The City shall use its best efforts to assist Contractor in obtaining all necessary permits and other approvals for installation of the Equipment. However, the City is not responsible for payment of any permit or other approval fees. The equipment, and the operation of the equipment by Contractor, shall conform to all federal, state, and local code requirements. Contractor shall furnish to the City copies of each permit and license required to perform the work before Contractor commences the portion of the work requiring the permit or license. Section 7.2. Coordination During Installation The Contractor shall coordinate the activities of its equipment installers with those of the City, its employees, and agents. Contractor shall not commit or permit any act that will interfere with the performance of business activities conducted by the City or its employees, without prior written approval of the City. ARTICLE 8. CONSTRUCTION SCHEDULE AND EQUIPMENT INSTALLATION; AWARD OF SUBCONTRACTS; SYSTEMS STARTUP APPROVAL Section 8.1. Construction Schedule; Equipment Installation Construction and Equipment installation shall proceed in accordance with the construction schedule approved by the City and attached as Schedule I (Construction and Equipment Installation Schedule). 140 City of Bozeman Energy Performance Contract Page 16 Section 8.2. Award of Subcontracts The Contractor shall furnish the City with the names of subcontractors and suppliers proposed for each principle portion of the work. This shall occur within 30 days of Contract award. The City will promptly acknowledge receipt of this subcontractor and supplier plan and advise if there is reasonable objection to any listed person or entity. The Contractor shall not enter into an agreement with any subcontractor or supplier to which the City raises a timely objection. The Contractor and all subcontractors must comply with all Montana Department of Labor and Industry requirements, regulations, rules and statutes. Section 8.3. Systems Startup and Equipment Commissioning Approval Contractor shall conduct a thorough and systematic performance test of each element and the total system of the installed Equipment in accordance with Schedule J (Systems Start-Up and Commissioning; Operating Parameters of Installed Equipment) and prior to acceptance of the project by the City, as specified in Exhibit III (i) (Certificate of Acceptance-Investment Grade Audit Report). Testing must be designed to determine whether the Equipment is functioning in accordance with both its published specifications and the Schedules to this Contract and whether modified building systems, subsystems, and components are functioning properly. Contractor shall notify the City of the scheduled test(s) and the City and/or its designees have the right to be present at any tests conducted by Contractor and/or manufacturers of the Equipment. Contractor is responsible for correcting and/or adjusting any deficiencies in systems and Equipment operations observed during system commissioning procedures, as specified in Schedule J (Systems Start-Up and Commissioning; Operating Parameters of Installed Equipment). Contractor also is responsible for correcting and/or adjusting any deficiencies in Equipment operation observed during system testing procedures. Prior to the City’s acceptance of the Equipment, Contractor also shall provide the City with reasonable documentation that the Equipment installed is the Equipment specified in Schedule H (Scope of Work). ARTICLE 9. EQUIPMENT WARRANTIES The Contractor warrants to the City that materials and equipment furnished under the Contract will be new and of good quality unless otherwise required or permitted by the Contract Documents, that the Work will be free from defects not inherent in the quality required or permitted, and that the Work will conform to the requirements of the Contract. The Contractor warrants and guarantees all work, workmanship, and materials for the full warranty period. The warranty period shall be defined as started upon documented approval of Substantial Completion and continue for one (1) calendar year. 141 City of Bozeman Energy Performance Contract Page 17 Substantial Completion means the stage in the progress of the Work where the Work is sufficiently complete in accordance with the Contract Documents so that the City can take beneficial use of the Work for its intended purpose. Substantial Completion does not occur until the Equipment or system has been commissioned, accepted, and the “Substantial Completion” form fully executed. After the warranty period, Contractor is not responsible for performing maintenance or repairs or making manufacturer warranty claims relating to the Equipment. Manufacturer and product warranties and guarantees, as provided by the manufacturer or as specified in the Contract Documents, are in addition to the Contractor’s warranty. Contractor shall assign to the City all available manufacturer’s warranties relating to the Equipment and deliver the written warranties to the City for attachment to this Contract as Exhibit IV (Equipment Warranties). Contractor shall pursue rights and remedies against the manufacturers under the warranties in the event of Equipment malfunction, improper or defective function, or defects in parts, workmanship, or performance. Contractor shall, during the warranty period, notify the City whenever defects in Equipment parts or performance occur that give rise to rights and remedies and when those rights and remedies are exercised by Contractor. During this period, Contractor shall be liable to the City for the cost of any risk of damage or damage to the Equipment and its performance, including damage to property and equipment of the City or the Project Site(s), due to Contractor’s failure to exercise its warranty rights. All warranties, to the extent transferable, shall be transferable and extend the City. Warranties must specify that only new, not reconditioned, parts will be installed when repair is necessitated by malfunction. All extended warranties must be addressed as the property of the City and appropriately documented and titled. ARTICLE 10. STANDARDS OF COMFORT Contractor shall maintain and operate the Equipment in a manner that provides the standards of heating, cooling, ventilation, hot water supply, and lighting quality and levels described in Schedule K (Standards of Comfort). During the term of this Contract, Contractor and the City shall maintain, according to Schedule M (Contractor’s Maintenance Responsibilities) and Schedule N (City of Bozeman Maintenance Responsibilities), and operate the Equipment in a manner that provides the standards of comfort and levels of operation described in Schedule K (Standards of Comfort). ARTICLE 11. ENVIRONMENTAL REQUIREMENTS Section 11.1. Excluded Material and Activities In connection with the installation and/or service or maintenance of Equipment at the Project Site(s), Contractor is not responsible for any work relating to: (i) asbestos, 142 City of Bozeman Energy Performance Contract Page 18 materials containing asbestos, or the existence, use, detection, removal, containment or treatment of asbestos; (ii) fungus, including any type or form of fungi, including mold or mildew, and myotoxins, spores, scents or by-products produced or released by fungi; (iii) pre-existing incomplete or damaged work or systems or code violations discovered during, or prior to, the work under this Contract; or (iv) pollutants, hazardous wastes, hazardous materials, contaminants other than those described in this Section below (collectively “Hazardous Materials”), or the storage, handling, use, transportation, treatment, or the disposal, discharge, leakage, detection, removal, or containment of such materials. The materials and activities listed in the foregoing sentence are referred to as “Excluded Materials and Activities”. If performance of work involves any Excluded Materials and Activities, the City shall perform, or arrange for the performance of, such work and shall bear the sole risk and responsibility for such work. If Contractor discovers Hazardous or Excluded Materials, Contractor shall immediately cease work, remove all Contractor personnel and subcontractors from the site, and notify the City. The City is responsible for handling such materials at its expense. Contractor shall undertake no further work on the area of the Project site affected by such materials, except as authorized by the City in writing. Any such discovery or remediation by the City does not constitute a default by the City. In the event of such stoppage of work by Contractor, the Time for Completion of Work is automatically extended by the amount of time of the work stoppage, and any additional costs incurred by Contractor in performing the work under this Contract as a result will be added by Change Order. Contractor is responsible for any hazardous or other materials, including, without limitation, those listed in this section that it brings to the Project Site(s). Section 11.2. Polychlorinated Biphenyl (PCB) Ballasts; Mercury Lamps Contractor shall enter into an agreement with an approved PCB ballast disposal company that will provide an informational packet, packing receptacles and instructions, labels and shipping materials, transportation, and recycling or incineration services for PCB ballasts. All capacitors and asphalt potting compound materials removed from City PCB ballasts must be incinerated in a federally approved facility. After proper disposal, a Certificate of Destruction must be provided by the approved facility to the City. Contractor is responsible for proper and legal management of all City PCB ballasts removed as a result of installation of the Equipment until PCB ballasts are loaded onto the approved PCB ballast disposal company’s vehicle for transportation. Contractor shall enter into an agreement with an approved mercury lamp disposal company that will provide approved containers, materials required for labeling, transportation, and recycling or incineration, in accordance with EPA requirements, and a copy of the manifest. 143 City of Bozeman Energy Performance Contract Page 19 The City agrees to sign manifests of ownership for all PCB ballasts and mercury lamps removed from the Project Site(s). ARTICLE 12. TRAINING BY CONTRACTOR Contractor shall conduct the training program described in Schedule L (Contractor’s Training Responsibilities). The training specified in Schedule L (Contractor’s Training Responsibilities) must be completed prior to acceptance of the Equipment installation by the City, unless otherwise noted in Schedule L. Contractor shall provide ongoing training whenever needed concerning updated or altered Equipment, including upgraded software. Such training shall be provided by Contractor at no charge to the City and shall have no effect on prior acceptance of Equipment installation. POST-CONSTRUCTION PHASE ARTICLE 13. EQUIPMENT SERVICE Section 13.1. Actions by Contractor Contractor shall provide all service, repairs, and adjustments to the Equipment installed under this Contract. The City shall incur no cost for Equipment service, repairs, and adjustments. However, if the Contractor demonstrates that the need for maintenance or repairs principally arises due to the negligence or willful misconduct of the City or any employee or other agent of the City, Contractor may charge the City for the cost of the maintenance or repair if the cost is not covered by any warranty or insurance. Section 13.2. Malfunctions and Emergencies The City shall use its best efforts to notify Contractor or its designated subcontractors within 24 hours after the City’s actual knowledge and occurrence of: (i) any malfunction in the operation of the Equipment or in any preexisting energy related equipment that might materially impact guaranteed energy savings; (ii) any interruption or alteration to the energy supply to the Project Site(s); or (iii) any alteration or modification in any energy-related equipment or its operation. When the City exercises due diligence in attempting to assess the existence of a malfunction, interruption, or alteration, it is not liable to Contractor for additional costs for failing to correctly identify such conditions as having a material impact upon the guaranteed energy savings. The City shall notify Contractor within 24 hours upon learning of any emergency condition affecting the Equipment. Contractor shall respond, or cause its designee(s) to respond, within 24 hours and shall promptly proceed with corrective measures. Any telephonic notice of such conditions by the City must be followed within three business days by written notice to Contractor from 144 City of Bozeman Energy Performance Contract Page 20 the City. If the City unreasonably delays in notifying Contractor of a malfunction or emergency, and the malfunction or emergency is not otherwise corrected or remedied, the City is liable to Contractor for its loss, due to the delay, associated with the guaranteed savings under this Contract for the particular time period, if Contractor demonstrates a direct causal connection between the delay and the loss. Contractor shall provide a written record of all service work performed. This record must state the reason for the service, a description of the problem, and the corrective action performed. Section 13.3. Actions by the City The City may not move, remove, modify, alter, or change the Equipment or any part of the Equipment without prior written approval of Contractor, except as stated in Schedule N (City of Bozeman Maintenance Responsibilities). The City may take reasonable steps to protect the Equipment if, due to an emergency, it is not possible or reasonable to notify Contractor before taking action. If there is an emergency, the City shall take reasonable steps to protect the Equipment from damage or injury and shall follow any instructions for emergency action provided in advance by Contractor. The City shall maintain the Project Site(s) in good repair and protect and preserve all portions that may affect operation or maintenance of the Equipment. ARTICLE 14. MODIFICATION, UPGRADE OR ALTERATION OF THE EQUIPMENT Section 14.1. Modification of Equipment During the Term of this Contract, the City may not, without prior written consent of Contractor, install any accessory Equipment or device on any of the Equipment if the addition will change or impair the originally intended functions, value, or use of the Equipment. Section 14.2. Upgrade or Alteration of Equipment Contractor may, subject to the City’s prior written approval, which approval may not unreasonably be withheld, change the Equipment, revise any procedures for operation of the Equipment, or implement other energy saving actions in the Project Site(s), if: (i) Contractor complies with the standards of comfort and services specified in Schedule K (Standards of Comfort); (ii) modifications or additions to, or replacement of the Equipment, and any operational changes, or new procedures are necessary to enable Contractor to achieve the guaranteed energy and cost savings at the Project Site(s) and; (iii) Contractor bears any cost incurred relative to such modifications, additions, or replacement of the Equipment, or operational changes or new procedures. All modifications, additions, or replacements of the Equipment, or revisions to 145 City of Bozeman Energy Performance Contract Page 21 operating or other procedures, must be described by Contractor in a supplemental Schedule(s) provided to the City for approval, which may not be unreasonably withheld, and any replacement Equipment must, unless otherwise agreed, be new and have equal or better potential to reduce energy consumption at the Project Site(s) than the Equipment being replaced. Contractor may update any software to be used in connection with the Equipment, in accordance with Section 17.1 (Ownership of Certain Proprietary Property Rights) and Schedule M (Contractor’s Maintenance Responsibilities). All replacements of, and alterations or additions to, the Equipment become part of the Equipment described in Schedule H (Scope of Work) and are covered by the terms of Article 8 (Construction Schedule and Equipment Installation; Award of Subcontracts; Systems Startup Approval). ARTICLE 15. MATERIAL CHANGES Section 15.1. Material Change Defined A Material Change includes any change in, or to, the Project Site(s), whether structural, operational, or otherwise in nature that reasonably could be expected, in the sole judgment of the City, to increase or decrease annual energy consumption, in accordance with Schedule B (Baseline Energy Consumption) and Schedule C (Savings Measurement and Verification Plan; Methodology to Adjust Baseline) by at least 3%, after adjustments for climatic variations. Actions by the City that may result in a Material Change include, but are not limited to, the following: (i) manner of use of the Project Site(s) by the City; (ii) hours of operation for the Project Site(s), or for any equipment or energy using systems operating at the Project Site(s); (iii) Permanent changes in the comfort and service parameters specified in Schedule K (Standards of Comfort); (iv) occupancy of the Project Site(s); (v) structure of the Project Site(s); (vi) types and quantities of equipment used at the Project Site(s); (vii) modification, renovation or construction at the Project Site(s); (viii) any other conditions other than climate affecting energy use at the Project Site(s), including, but not limited to, replacement, addition, or removal of energy and water consuming devices, whether plug in or fixed assets; (ix) casualty or condemnation of the Project Site(s) or Equipment; (x) changes in utility provider or utility rate classification; (xi) any other conditions other than climate affecting energy or water use at the Project Site(s); or (xii) modifications, alterations, or overrides of the energy management system schedules or hours of operation, set back/start up, or holiday schedules. 146 City of Bozeman Energy Performance Contract Page 22 Section 15.2. Reported Material Changes; Notice by the City The City shall use its best efforts to deliver to Contractor a written notice describing all actual or proposed Material Changes in the Project Site(s) or in the operations of the Project Site(s) at least 30 calendar days before any actual or proposed Material Change is implemented, or as soon as is practicable after an emergency or other unplanned event. Notice to Contractor of Material Changes that result because of an emergency or other situation that precludes advance notice is sufficient if given by the City within 48 hours after the City knew or discovered that the event constituting the Material Change occurred. Section 15.3. Other Adjustments The City shall alert Contractor of known Materials Changes. Contractor shall work with the City to investigate, identify, and correct any changes that prevent the guaranteed savings from being realized. Based on the investigation, Contractor and the City shall determine what, if any, adjustments to the baseline are to be made in accordance with Schedule C (Savings Measurement and Verification Plan; Methodology to Adjust Baseline) and Schedule B (Baseline Energy Consumption). Any disputes between the City and Contractor concerning any such adjustment shall be resolved in accordance with Schedule Q (Alternative Dispute Resolution Procedures). ARTICLE 16. PERFORMANCE BY CONTRACTOR Section 16.1. Corrective Action; Accuracy of the Services Contractor shall perform all tasks/phases under the Contract, including construction, and install the Equipment in such a manner so as not to harm the structural integrity of the buildings or their operating systems and in conformance with the standards in Schedule K (Standards of Comfort) and the construction schedule specified in Schedule I (Construction and Equipment Installation Schedule). Contractor shall repair and restore to its original condition any area of damage caused by Contractor’s performance under this Contract. The City may review the work performed by Contractor and direct Contractor to take corrective action reasonably necessary to remedy damage caused by Contractor if the structural integrity of the Project Site(s) or its operating system is or will be harmed. Contractor shall bear all costs associated with such corrective action. Contractor is responsible for the professional and technical accuracy of all services performed, whether by Contractor or its subcontractors or others on its behalf, throughout the term of this Contract. 147 City of Bozeman Energy Performance Contract Page 23 Section 16.2. Annual Reporting Requirements; Annual ENERGY STAR Rating Within ninety (90) days after the end of each year during the guarantee period, as specified in Schedule A (Energy and Water Cost Savings Guarantee), Contractor shall complete and submit to the City the data required in Schedule P (Annual Reporting Requirements). ADMINISTRATION ARTICLE 17. OWNERSHIP OF CERTAIN PROPRIETARY PROPERTY RIGHTS; EXISTING EQUIPMENT Section 17.1. Ownership of Certain Proprietary Property Rights The City does not, by virtue of this Contract, acquire any interest in any formulas, patterns, devices, secret inventions or processes, copyrights, patents, other intellectual or proprietary rights, or similar items of property used in connection with the Equipment. Contractor grants to the City a perpetual, irrevocable royalty-free license for any and all software or other intellectual property rights necessary for the City to continue to operate, maintain, and repair the Equipment in a manner that will yield guaranteed utility consumption reductions for the specified contract term. Contractor shall provide new versions of software or other enhancements if new versions or enhancements are necessary to achieve the guaranteed utility consumption reductions. Section 17.2. Ownership of Existing Equipment Equipment and materials existing at the Project Site(s) at the time of execution of this Contract remain the property of the City, even if replaced or operation is made unnecessary by work performed by Contractor pursuant to this Contract. At least fourteen (14) calendar days prior to replacement, Contractor shall provide the City with written advance notice of all equipment and materials to be replaced at the Project Site(s). Within 10 calendar days after receipt of the notice, the City shall identify in writing to Contractor the equipment and materials that are not to be disposed of off-site by Contractor, and Contractor may not dispose of any such equipment or materials off site. The City shall designate the location and manner of storage for any equipment and materials that are to be stored on-site. Contractor is responsible for disposal, in accordance with all applicable laws and regulations, of all equipment and materials designated by the City as disposable off-site. 148 City of Bozeman Energy Performance Contract Page 24 ARTICLE 18. INDEMNIFICATION; LIMITATION OF LIABILITY; INSURANCE; CLAIMS For other than professional services rendered, to the fullest extent permitted by law, Contractor agrees to release, defend, indemnify, and hold harmless the City, its agents, representatives, employees, and officers (collectively referred to for purposes of this Section as the City) from and against any and all claims, demands, actions, fees and costs (including attorney’s fees and the costs and fees of expert witness and consultants), losses, expenses, liabilities (including liability where activity is inherently or intrinsically dangerous) or damages of whatever kind or nature that may be asserted against, recovered from or suffered by the City occasioned by, growing or arising out of or resulting from or in any way related to: (i) the negligent, reckless, or intentional misconduct of the Contractor; or (ii) any negligent, reckless, or intentional misconduct of any of the Contractor’s agents. For the professional services rendered, to the fullest extent permitted by law, Contractor agrees to indemnify and hold the City harmless against claims, demands, suits, damages, losses, and expenses, including reasonable defense attorney fees, to the extent caused by the negligence or willful misconduct of the Contractor or Contractor’s agents or employees. Such obligations shall not be construed to negate, abridge, or reduce other rights or obligations of indemnity that would otherwise exist. The indemnification obligations of this Section must not be construed to negate, abridge, or reduce any common-law or statutory rights of the indemnitee(s) which would otherwise exist as to such indemnitee(s). Contractor’s indemnity under this Section shall be without regard to and without any right to contribution from any insurance maintained by City. Should any indemnitee described herein be required to bring an action against the Contractor to assert its right to defense or indemnification under this Agreement or under the Contractor’s applicable insurance policies required below the indemnitee shall be entitled to recover reasonable costs and attorney fees incurred in asserting its right to indemnification or defense but only if a court of competent jurisdiction determines the Contractor was obligated to defend the claim(s) or was obligated to indemnify the indemnitee for a claim(s) or any portion(s) thereof. In the event of an action filed against City resulting from the City’s performance under this Contract, the City may elect to represent itself and incur all costs and expenses of suit. Contractor also waives any and all claims and recourse against the City or its officers, agents or employees, including the right of contribution for loss or damage to person or property arising from, growing out of, or in any way connected with or incident to the performance of this Contract except “responsibility for his own fraud, for willful injury to the person or property of another, or for violation of law, whether willful or negligent” as 149 City of Bozeman Energy Performance Contract Page 25 per 28-2-702, MCA. Neither Party shall be liable to the other Party for any consequential, indirect, special, incidental, exemplary, or similar, damages or losses, including loss of profits, arising out of or relating to this Agreement, whether based on contract or tort or any other theory, even if a Party has been advised of the possibility of such damages. These obligations shall survive termination of this Contract and the services performed hereunder. In addition to and independent from the above, Contractor shall at Contractor’s expense secure insurance coverage through an insurance company or companies duly licensed and authorized to conduct insurance business in Montana which insures the liabilities and obligations specifically assumed by the Contractor in this Section. The insurance coverage shall not contain any exclusion for liabilities specifically assumed by the Contractor in subsection (a) of this Section. The insurance shall cover and apply to all claims, demands, suits, damages, losses, and expenses that may be asserted or claimed against, recovered from, or suffered by the City without limit and without regard to the cause therefore and which is acceptable to the City and Contractor shall furnish to the City an accompanying certificate of insurance and accompanying endorsements in amounts not less than as follows: • Workers’ Compensation – statutory; • Employers’ Liability - $1,000,000 per occurrence; $2,000,000 annual aggregate; • Commercial General Liability - $2,000,000 per occurrence; $4,000,000 annual aggregate; • Automobile Liability - $1,000,000 property damage/bodily injury; $2,000,000 annual aggregate; and • Professional Liability - $1,000,000 per claim; $2,000,000 annual aggregate. The City of Bozeman, its officers, agents, and employees, shall be endorsed as an additional or named insured on a primary non-contributory basis on both the Commercial General and Automobile Liability policies. The insurance and required endorsements must be in a form suitable to City and shall include no less than a sixty (60) day notice of cancellation or non-renewal. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. Contractor shall notify City within two (2) business days of Contractor’s receipt of notice that any required insurance coverage will be terminated or Contractor’s decision to terminate any required insurance coverage for any reason. The City must approve all insurance coverage and endorsements prior to the Contractor commencing work. 150 City of Bozeman Energy Performance Contract Page 26 Section 18.1. Claims, Disputes and Controversies 18.1.1. Definition. A Claim is a demand or assertion by one of the parties seeking, as a matter of right, adjustment or interpretation of Contract terms, payment of money, extensions of time or other relief with respect to the terms of the Contract. The term "Claim" includes all disputes, controversies, and matters in question between the City and Contractor arising out of or relating to the Contract. Claims must be initiated by written notice to the other party. The responsibility to substantiate Claims shall rest solely with the party making the Claim. 18.1.1.1. All Claims must contain sufficient justification and substantiation or they may be rejected without consideration by the other party with no additional impact or consequence to the Contract. 18.1.1.2. If additional compensation is claimed, the exact amount claimed and a breakdown of that amount into the following categories shall be provided with each and every claim: 18.1.1.2.1. Direct costs; 18.1.1.2.2. Indirect costs. 18.1.1.3. If additional time is claimed the following shall be provided with each and every claim: 18.1.1.3.1. The specific number of days and specific dates for which the additional time is sought; 18.1.1.3.2. The specific reasons, causes, and/or effects whereby the Contractor believes that additional time should be granted; and, 18.1.1.3.3. The Contractor shall provide analyses, documentation, and justification of its claim for additional time. 18.1.2. Continuing Contract Performance. Pending final resolution of a Claim except as otherwise agreed in writing or as provided in this Contract, the Contractor shall proceed diligently with performance of the Contract and the City shall continue to make payments in accordance with the Contract on portions of the Work not involved in a Claim. 151 City of Bozeman Energy Performance Contract Page 27 Section 18.2. Resolution of Claims, Disputes and Controversies 18.2.1. Upon receipt of a Claim against the Contractor or at any time thereafter, the City may, but is not obligated to, notify the surety of the nature and amount of the Claim. If the Claim relates to a possibility of a Contractor's default, the City may, but is not obligated to, notify the surety and request the surety's assistance in resolving the controversy. 18.2.2. A Claim subject to or related to liens or bonds shall be governed by applicable law regarding notices, filing deadlines, and resolution of such Claim prior to any resolution of such Claim by the City or by mediation, except for claims made by the City against the Contractor’s bonds. Section 18.3. Mediation 18.3.1. Any Claim arising out of or related to the Contract, except Claims waived elsewhere in the Contract, shall be subject to mediation as a condition precedent to the institution of legal or equitable proceedings by either party. 18.3.2. The parties shall endeavor to resolve their Claims by mediation which, unless the parties mutually agree otherwise in writing, shall be in accordance with the Construction Industry Mediation Rules of the American Arbitration Association currently in effect and/or those rules specified in the contract documents or separately agreed upon between the parties. Construction Industry Mediation Rule M-2 (filing with AAA) does not apply, unless the parties mutually agree in writing to use AAA, and no filing of a request for mediation shall be made to AAA by either party until such mutual agreement has been made. Unless the parties agree to use AAA, the parties shall mutually agree upon a mediator who shall then take the place of AAA in the Construction Industry Mediation Rules. Request for mediation shall be filed in writing with the other party to the Contract and with the American Arbitration Association, if the parties have agreed to use AAA. The request may be made concurrently with the filing of a demand for arbitration but, in such event, mediation shall proceed in advance of arbitration or legal or equitable proceedings, which shall be stayed pending mediation for a period of 60 days from the date of filing, unless stayed for a longer period by agreement of the parties or court order. 18.3.3. The parties shall share the mediator's fee and any filing fees equally. The mediation shall be held in the place where the Project is located, unless another location is mutually agreed upon in writing. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. 152 City of Bozeman Energy Performance Contract Page 28 ARTICLE 19. DELAYS; CONDITIONS BEYOND CONTROL OF THE PARTIES Section 19.1. Delays within the control of the Contractor In no event shall the City be liable to the Contractor, any subcontractor, any supplier, Contractor’s surety, or any other person or organization, for damages or costs arising out of or resulting from delays caused by or within the control of the Contractor which include but are not limited to labor issues or labor strikes on the Project, federal, state, or local jurisdiction enforcement actions related directly to the Contractor’s Work (e.g. safety or code violations, etc.). Section 19.2 Conditions Beyond Control of the Parties; Force Majeure If a party ("performing party") reasonably is unable to perform any of its obligations under this Contract due to unforeseeable events beyond that parties’ control, at the other parties’ option, the Contract shall: (i) remain in effect but the performing parties’ obligations are suspended until such events have ended; or, (ii) the other party may terminate the Contract upon ten (10) days written notice to the performing party, in which event neither party has any further liability to the other under this Contract. ARTICLE 20. ADDITIONAL DUTIES AND REPRESENTATIONS OF THE PARTIES Section 20.1. For the term of this Contract, the City shall, within thirty (30) days of receipt of Contractor’s request, provide the Contractor with accurate and complete copies of all records relating to the Contract, including, but not limited to, records relating to energy usage and energy-related maintenance of Project Site(s) requested by Contractor that have not already been provided. Section 20.2. The City represents that it has not entered into any lease or other contract regarding energy efficiency equipment, provision of energy management services for the Project Site(s), or servicing of any energy related equipment located in the Project Site(s). If the City enters into any such lease or other contract, within ten (10) calendar days after execution, it shall provide Contractor with a copy of the lease or other contract. Section 20.3. Contractor represents that it is financially solvent, able to pay its debts as they mature, and has sufficient working capital to perform its duties under this Contract. Section 20.4. Within thirty (30) calendar days after executing this Contract, and before commencing performance of this Contract, Contractor shall provide the City with written documentation that it is licensed to perform its duties under this Contract within the State of Montana and that all insurance and bonding requirements applicable to Contractor under this Contract have been met. Contractor must also have a valid City of Bozeman business license before commencing performance. Section 20.5. Upon request, Contractor shall make available to the City all documents relating to its performance under this Contract, including all contracts and subcontracts. 153 City of Bozeman Energy Performance Contract Page 29 Section 20.6. All subcontractors used by Contractor in performing its duties under this Contract must be qualified, licensed, and bonded in the State of Montana to perform the subcontracted work. All subcontractors must also have a valid City of Bozeman business license before commencing performance. Section 20.7. All Equipment installed by Contractor under this Contract must meet, or exceed, the requirements specified in Section 8.2 (Systems Start Up and Equipment Commissioning) and in Schedule J (Systems Start-Up and Commissioning; Operating Parameters of Installed Equipment). Section 20.8. All Equipment installed by Contractor under this Contract must be compatible with all other Project Site(s) mechanical and electrical systems, subsystems, and components with which the Equipment interacts. Section 20.9. Contractor has familiarized itself with all local conditions and federal, state and local laws, ordinances, rules, and regulations that in any manner may affect cost, progress, or Contractor’s performance of this Contract. Section 20.10. Contractor represents and warrants to City that it has the experience and ability to perform the services required by this Agreement; that it will perform said services in a professional, competent and timely manner and with diligence and skill; that it has the power to enter into and perform this Agreement and grant the rights granted in it; and that its performance of this Agreement shall not infringe upon or violate the rights of any third party, whether rights of copyright, trademark, privacy, publicity, libel, slander or any other rights of any nature whatsoever, or violate any federal, state and municipal laws. The City will not determine or exercise control as to general procedures or formats necessary to have these services meet this warranty. ARTICLE 21. MISCELLANEOUS DOCUMENTATION PROVISIONS Section 21.1. Construction Performance and Payment Bonds, Labor and Material Payment Bonds; Bond Clarification Contractor shall furnish performance and payment Bonds, each in an amount equal to the Contract value. The Bonds shall cover completion of the physical work per the approved design, and shall not guarantee or warranty efficiency or system performance. The Bonds shall not cover any obligation of the contractor to ensure that the work as constructed will result in any particular level of energy savings. Any system performance guarantee or warranty in this Contract and referenced in Section 3 and Schedule A, Energy and Cost Savings Guarantee, will be provided by Contractor. Section 21.2. Further Documents The parties shall timely execute and deliver to each other all documents and shall perform all further acts reasonably necessary to effectuate the provisions of this Contract. 154 City of Bozeman Energy Performance Contract Page 30 Section 21.3. City of Bozeman Responsibilities (a) Methods of Operation by the City The parties agree that the guaranteed Energy and Cost Savings may not be obtained unless the procedures and methods of operation designed for energy and water conservation that are identified in the Investment Grade Audit Report are implemented and followed by the City on a regular and continuous basis. (b) Inspection of Project Site(s) Once per month, with 48 hours prior notice to the City, Contractor may inspect the Project Site(s) to determine whether the City is complying with Section 21.3(b). Compliance is to be determined by Contractor using the checklist shown in Schedule O (Facility Maintenance Checklist), as completed by Contractor during its monthly inspections. The City shall make the Project Site(s) available to Contractor during each monthly inspection and may witness each inspection and Contractor’s notations on the checklist. The City may complete its own checklist at the same time. Contractor may not interfere with the City’s operations during any monthly inspection. Section 21.4. Waiver Of Liens Contractor shall obtain, and furnish to the City a Waiver of Liens from each vendor, material manufacturer, and laborer related to the supply, installation, and servicing of each piece of Equipment. ARTICLE 22. CONFLICTS OF INTEREST Section 22.1. Conflicts of interest relating to this Contract are strictly prohibited. Neither party to this Contract, nor any director, employee, or agent of either party may give to, or receive from, any director, employee, or agent of the other party any gift, entertainment, or other favor of significant value, or any commission, fee, or rebate in connection with this Contract. Section 22.2. Neither party to this Contract, nor any director, employee, or agent of either party may, without prior notice to the other party, enter into any business relationship with any director, employee, or agent of the other party or of any affiliate of the other party. Section 22.3. The parties to this Contract promptly shall notify the other party of any violation of this article, and any consideration received as a result of such violation shall be paid or credited to the other party. Section 23.4. Any representative of a party to this Contract, authorized by that party, may, upon reasonable notice to the other party and during regular business hours, audit the records of the other party related to this Contract, including the expense records of the parties’ employees involved in this Contract, for the purpose of determining whether there has been compliance with this section. 155 City of Bozeman Energy Performance Contract Page 31 ARTICLE 23. CONTRACT, AMENDMENT AND INTERPRETATION Contract. This Contract consists of numbered pages, Attachments, and Contractor’s response to request for qualification. In the case of dispute or ambiguity about the minimum levels of performance required of Contractor, the order of precedence of document interpretation is in the same order. Entire Contract. These documents contain the entire Contract of the parties. Any enlargement, alteration or modification requires a written amendment signed by both parties. ARTICLE 24. CHOICE OF LAW AND VENUE This Contract is governed by the laws of Montana. The parties agree that any litigation concerning this Contract must be brought in the District Court of the Eighteenth Judicial District, Gallatin County, State of Montana, and each party shall pay its own costs and attorney fees. (Mont. Code Ann. § 18-1-401) ARTICLE 25. DISPUTE RESOLUTION Questions of fact that arise in relation to interpretation of this Contract are subject to the alternative dispute resolution procedures described in Section 18.2 (Resolution of Claims, Disputes and Controversies) and Section 18.3 (Mediation). Unless the Parties agree otherwise, or the Work cannot be continued without a resolution of the question of fact, alternative dispute resolution procedures are not cause for delay of the Work under this Contract. Continuation of the Work does not constitute a waiver of any rights accruing to Contractor or the City. ARTICLE 26. LIAISON AND SERVICE OF NOTICES All project management and coordination on behalf of the City shall be through a single point of contact designated as the City liaison. Contractor shall designate a liaison who will provide the single point of contact for management and coordination of Contractor’s work. All work performed pursuant to this Contract shall be coordinated between the City’s liaison and Contractor’s liaison. All written notices required by this Contract shall be sent by U.S. mail or electronically by e-mail. Natalie Meyer will be the liaison for the City of Bozeman. 121 N. Rouse Ave., P.O. Box 1230 Bozeman, MT 59771-1230 Telephone: 406-582-2317 Fax: 406-582-2344 E-mail: nmeyer@bozeman.net Karen Hedglin will be the liaison for Contractor. 1982 Stadium Drive, unit #1 Bozeman, MT 59715 Telephone: 406-582-7668 156 City of Bozeman Energy Performance Contract Page 32 Fax: 406-586-0486 E-mail: khedglin@mckinstry.com The City’s liaison and Contractor’s liaison may be changed by written notice to the other party. Written notices, requests, or complaints must first be directed to the liaison. ARTICLE 27. GENERAL TERMS AND CONDITIONS Section 27.1. Design/Engineering All analysis, design, equipment selections, specifications, and all aspects connected with design, installation, and construction of energy-savings measures, done by the Contractor shall be performed by an engineer licensed in the State of Montana in accordance with 18-2-121 and 12-2-122, MCA. Contractor will include at least two City representatives to serve on the review and selection committee(s) for any request for proposals (RFPs) or request for qualifications (RFQs) issued by Contractor in connection with this Contract. Contractor will use the Department of Energy’s Model Specification for LED Roadway Luminaires in the design specifications for the LED Street Light FIM in Schedule D, Table 4.2. Section 27.2. Access and Retention of Records Access to Records The Contractor agrees to provide the City, Legislative Auditor, or their authorized agents, access to any records necessary to determine contract compliance. (Montana Code Annotated § 18-1-118). Retention Period The Contractor agrees to create and retain records supporting the services rendered or supplies delivered for a period of three years after either the completion date of this Contract or the conclusion of any claim, litigation, or exception relating to this Contract taken by the City or third party. Section 27.3. Assignment, Transfer and Subcontracting The Contractor may not assign, transfer or subcontract any portion of this Contract without the express written consent of the City. (Montana Code Annotated § 18-4-141) The City will not unreasonably withhold consent. The Contractor shall be responsible to the City for the acts and omissions of all subcontractors or agents and of persons directly or indirectly employed by such subcontractors, and for the acts and omissions of persons employed directly by the Contractor. No contractual relationships exist between subcontractor and the City. Section 27.4. Compliance with Laws The Contractor and any subcontractor must, in performance of work under this Contract, fully comply with all applicable federal, state, or local laws, rules and regulations, including the generation and disposal of hazardous waste, the 157 City of Bozeman Energy Performance Contract Page 33 Occupational Safety and Health Act (OSHA), the safety rules, codes, and provisions of the Montana Safety Act in Title 50, Chapter 71, MCA, the Montana Human Rights Act, the Age Discrimination Act of 1975, the Americans with Disabilities Act of 1990, and Section 504 of the Rehabilitation Act of 1973. Any subletting or subcontracting by the Contractor subjects subcontractors to the same provision. Section 27.5. Nondiscrimination The Contractor will have a policy to provide equal employment opportunity in accordance with all applicable state and federal anti-discrimination laws, regulations, and contracts. The Contractor will not refuse employment to a person, bar a person from employment, or discriminate against a person in compensation or in a term, condition, or privilege of employment because of race, color, religion, creed, political ideas, sex, age, marital status, national origin, actual or perceived sexual orientation, gender identity, physical or mental disability, except when the reasonable demands of the position require an age, physical or mental disability, marital status or sex distinction. The Contractor shall be subject to and comply with Title VI of the Civil Rights Act of 1964; Section 140, Title 2, United States Code, and all regulations promulgated thereunder. The Contractor shall require these nondiscrimination terms of its sub-Contractors providing services under this agreement. Section 27.6. Intoxicants, DOT Drug and Alcohol Regulations; Safety and Training Contractor shall not permit or suffer the introduction or use of any intoxicants, including alcohol or illegal drugs, by any employee or agent engaged in services to the City under this Agreement while on City property or in the performance of any activities under this Agreement. Contractor acknowledges it is aware of and shall comply with its responsibilities and obligations under the U.S. Department of Transportation (DOT) regulations governing anti-drug and alcohol misuse prevention plans and related testing. City shall have the right to request proof of such compliance and Contractor shall be obligated to furnish such proof. The Contractor shall be responsible for instructing and training the Contractor's employees and agents in proper and specified work methods and procedures. The Contractor shall provide continuous inspection and supervision of the work performed. The Contractor is responsible for instructing his employees and agents in safe work practices. Section 27.7. Modification No alteration of the terms, conditions, delivery, price, quality, quantities, or specifications of the Contract shall be granted without prior written consent of the City. Supplies delivered which do not conform to the contract terms, conditions, and specifications may be rejected and returned at Contractor’s expense. 158 City of Bozeman Energy Performance Contract Page 34 Section 27.8. Severability A declaration by any court, or any other binding legal source, that any provision of the Contract is illegal and void shall not affect the legality and enforceability of any other provision of the Contract, unless the provisions are mutually dependent. Section 27.9. Shipping Supplies shall be shipped prepaid, F.O.B. Destination, unless the Contract specifies otherwise. The parties through their authorized agents have executed this contract on the dates set out below. IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written. CITY OF BOZEMAN, MONTANA McKinstry Essention, LLC By_____________________________ By_______________________________ Chris Kukulski, City Manager Print Name: Print Title: ________________________ APPROVED AS TO FORM: By______________________________ Greg Sullivan, Bozeman City Attorney 159 City of Bozeman Energy Performance Contract Page 35 CONTRACT ATTACHMENT I: Schedules, Exhibits, and Appendices SAVINGS GUARANTEE SCHEDULE A. ENERGY AND COST SAVINGS GUARANTEE SCHEDULE B. BASELINE ENERGY CONSUMPTION SCHEDULE C. SAVINGS MEASUREMENT AND VERIFICATION PLAN; METHODOLOGY TO ADJUST BASELINE PAYMENTS AND SCHEDULE SCHEDULE D. FINAL PROJECT COST & PROJECT CASH FLOW ANALYSIS SCHEDULE E. NOT USED SCHEDULE F. NOT USED AUDIT AND CONSTRUCTION PHASE SCHEDULE G. NOT USED SCHEDULE H. SCOPE OF WORK SCHEDULE I. CONSTRUCTION AND EQUIPMENT INSTALLATION SCHEDULE SCHEDULE J. SYSTEMS START-UP AND COMMISSIONING OF EQUIPMENT; OPERATING PARAMETERS OF INSTALLED EQUIPMENT The Contractor shall maintain at the site for the City one record copy of the Drawings, Specifications, Addenda, Change Orders and other Modifications, in good order and accurately marked to record current field changes and selections made during construction, and one record copy of approved Shop Drawings, Product Data, Samples and similar required submittals. The City is not required to process final payment until all documentation and data required is submitted to and accepted by the City including, but not limited to, the as- built Drawings. The as-built drawings shall be neatly and clearly marked during construction, to record all deviations, variations, changes, and alterations as they occur during construction, along with such supplementary notes and details necessary to clearly and accurately represent the as-built condition. SCHEDULE K. STANDARDS OF COMFORT 160 City of Bozeman Energy Performance Contract Page 36 SCHEDULE L. CONTRACTOR’S TRAINING RESPONSIBILITIES POST CONSTRUCTION SCHEDULE M. NOT USED SCHEDULE N. NOT USED ADMINISTRATION SCHEDULE O. FACILITY MAINTENANCE CHECKLIST SCHEDULE P. ANNUAL REPORTING REQUIREMENTS 161 City of Bozeman Energy Performance Contract Page 37 Schedule P- Annual Reporting Requirements Agency Name/Agency Contact (Include Email and Phone Number) Facility Name/Facility Contact (Include Email and Phone Number) Contractor Name/Contractor Contact (Include Email and Phone Number) Total Square Footage of Project Site/Contract Start Date/Contract End Date Current Repayment Year (ex. Yr. 3/ 2005) Reporting Timeframe (ex. Jan 1-Dec. 31) Installed Project Cost (no financing costs) Total Contract Value of Guaranteed Savings Annual Value of Guaranteed Savings Measured Energy Savings Operational Savings Avoided Capital Cost (if applicable) Annual Dollar Value of Achieved Savings Total Annual Achieved Energy Savings (MMBTU) Electric Natural Gas Oil Coal Steam Other Annual Water Savings (kgal) 162 City of Bozeman Energy Performance Contract Page 38 Annual Avoided NOx Emissions (Tons) Annual Avoided SOx Emissions (Tons) Annual Avoided CO2 Emissions (Tons) ENERGY STAR Rating (if applicable) EXHIBITS EXHIBIT I Performance Bond EXHIBIT II Labor and Material Payment Bond EXHIBIT III (i) Certificate of Acceptance—Investment Grade Audit Report EXHIBIT III (ii) Certificate of Acceptance—Installed Equipment EXHIBIT III (iii) Notice of Substantial Completion – Individual FIMs EXHIBIT IV Equipment Warranties EXHIBIT V Montana Prevailing Wage Rate Schedule APPENDICES APPENDIX A Investment Grade Audit Report 163 City of Bozeman - Energy Performance Contract CONTRACT ATTACHMENT I: Schedules, Exhibits, and Appendices 164 City of Bozeman - Energy Performance Contract SCHEDULE A. ENERGY AND COST SAVINGS GUARANTEE This Performance Contract guarantees the rate of energy consumption as specified in the Investment Grade Audit Report which, when multiplied by the stipulated key factors as agreed upon by McKinstry and City of Bozeman, and as specified in Section 3 of the Investment Grade Audit Report, results in guaranteed cost-avoided savings inclusive of a calculated annual utility escalation rate sufficient to pay for the conservation measures, in accordance with 90-4-1107, MCA. The guaranteed annual savings included in Table A below are based on the utility rates as of October 1, 2014 (electricity), March 1, 2014 (gas), and September 1, 2013 (water and sewer) as agreed upon with City of Bozeman, with a stipulated annual utility escalation rate of 3.0%. Refer to Section 3 of the Investment Grade Audit Report dated July 9, 2014 Revision 1 October 16, 2014 for a detailed listing of the utility rates used in the calculation of the annual energy cost avoidance dollars. Table A: Guaranteed Energy Savings During Savings Measurement Period (Years 1 through 3) Year Units of Energy Saved (kW) Units of Energy Saved (kWh) Units of Energy Saved (Therm) Units of Energy Saved, Water & Sewer (kGal) Total Energy Saved ($) 1 280.3 486,078 3,576 100 $49,645 2 280.3 486,078 3,576 100 $51,134 3 280.3 486,078 3,576 100 $52.668 Table A provides a summary of the total guaranteed utility cost avoided savings for the three-year savings measurement period for the City of Bozeman-selected FIMs as presented in the Investment Grade Audit Report dated July 9, 2014/Revision 1 October 16, 2014. The measurement and verification plan defined in the Investment Grade Audit Report includes three (3) years of Measurement & Verification. Annual M&V Reports will be generated and presented to City of Bozeman on an annual basis, and these reports will demonstrate a reconciliation of guaranteed savings. In the event that City of Bozeman makes material changes to installed FIMs, Article 15 Material Changes shall apply. For a detailed review of the building and FIM specific M&V plans, refer to Section 3 of the Investment Grade Audit Report dated July 9, 2014/Revision 1 October 16, 2014. 165 Table 3.1 - Energy Savings SummaryProjectCity of BozemanScenarioFY15 ConstructionDate11/14/2014FINAL REVISION FOR CONTRACTTotal **FIM NumberFacility Improvement MeasuresFacility kW kW ($) kWh kWh ($) Therm Therm ($) kGal kGal ($) kGal kGal ($) ($)23120BEA 04.01 Modify Thermostat SchedulesBeall Park 0.0 $0 0 $0 86 $75 0 $0 0 $0 $7523119BEA 09.01 Exterior LightingBeall Park 0.0 $0 6,282 $481 0 $0 0 $0 0 $0 $48123117BEA 13.01 Envelope Improvements Beall Park 0.0 $0 0 $0 228 $199 0 $0 0 $0 $19923487BOG 01.01 Boiler CommissioningBogert Pool 0.0 $0 0 $0 2,416 $2,110 0 $0 0 $0 $2,11025504CTY 09.02 Daylight ControlsBozeman City Hall 0.0 $0 3,145 $241 0 $0 0 $0 0 $0 $24123411KRK 09.01 Lighting UpgradeKirk Park 0.0 $0 1,860 $202 0 $0 0 $0 0 $0 $20225505LIB 09.02 Lighting ControlsBozeman Public Library 0.0 $0 14,630 $1,120 0 $0 0 $0 0 $0 $1,12023377LIB 18.01 Water ConservationBozeman Public Library 0.0 $0 0 $0 265 $231 100 $223 100 $388$84224902OM 04.01 Custom Systems TrainingOverall Measures 0.0 $0 0 $0 0 $0 0 $0 0 $0 $023328OM 26.01 Green IT: PC Power MgmtOverall Measures 0.0 $0 65,408 $5,009 0 $0 0 $0 0 $0 $5,00925986PKG 09.03 Lighting Upgrades Excl. RoofBozeman Parking Garage 181.1 $1,678 129,439 $9,912 0 $0 0 $0 0 $0 $11,59025630PRO 25.02 Controls SequenceProfessional Building 0.0 $0 0 $0 0 $0 0 $0 0 $0 $023394SEN 03.01 Kitchen EconomizerBozeman Senior Center 0.0 $0 27,537 $2,109 0 $0 0 $0 0 $0 $2,10923390SEN 12.01 Hot Water System ImprovementsBozeman Senior Center 0.0 $0 2,186 $167 964 $842 0 $0 0 $0 $1,00923388SEN 13.01 Exterior Door SealsBozeman Senior Center 0.0 $0 0 $0 96 $84 0 $0 0 $0 $8423402STR 09.01 LED Street LightsStreet Lighting 0.0 $0 164,184 $18,604 0 $0 0 $0 0 $0 $18,60423161VEH 01.01 Boiler Temperature ResetVehicle Maintenance Building 0.0 $0 0 $0 143 $125 0 $0 0 $0 $12523462WRF 09.01 Lighting ImprovementsWater Reclamation Facility 99.2 $919 71,406 $5,468 -621 -$542 0 $0 0 $0 $5,845280.3 $2,596 486,078 $43,314 3,576 $3,123 100 $223 100 $388 $49,645** The guarantee is based on Key Performance Indicators shown in Table 3.2. Refer to Section 3 of the ESP for the method of converting Key Performance Indicators to dollars during the M&V period.*** The guarantee is based on the aggregate savings for all FIMs, not on individual FIM savings.Confidential and ProprietaryWater Sewer* The savings shown in this table are less than the calculated savings unless a guarantee multiplier of 100% is shown. ElectricityNatural GasSheet 1 of 1166 City of Bozeman - Energy Performance Contract SCHEDULE B. BASELINE ENERGY CONSUMPTION Refer to sections 3 and 5 of the Investment Grade Audit Report, dated July 9, 2014/Revision 1 October 16, 2014 for details regarding the methodology and supporting documentation used to calculate the baseline for each FIM. These sections also include unit consumption and current utility rates for each energy type. 167 Table 3.3 - Base Utility RatesProjectCity of BozemanScenarioFY15 ConstructionDate11/14/2014FINAL REVISION FOR CONTRACTBuilding_Name Utility_Provider Rate_Name Utility_Type Dollars_Per_Unit UnitsPublished_Date_EffectiveKirk ParkNorthWestern Energy LLC (Montana)E090 GS-1 2nd, Non-DemandElectricity$0.108797kWh3/1/2014Beall ParkNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Bozeman City HallNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Bozeman Parking GarageNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Bozeman Public LibraryNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Bozeman Senior CenterNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Overall MeasuresNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Vehicle Maintenance BuildingNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Water Reclamation FacilityNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, DemandElectricity$0.076578kWh10/1/2014Bozeman Parking GarageNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, Demand kWElectricity Demand$9.263819kW10/1/2014Water Reclamation FacilityNorthWestern Energy LLC (Montana)E110 GS-1 Secondary, Demand kWElectricity Demand$9.263819kW10/1/2014Street LightingNorthWestern Energy LLC (Montana)Electric LightingElectricity$0.113311kWh3/1/2014Beall ParkNorthWestern Energy LLC (Montana)General Service NGNatural Gas$0.873410Therms3/1/2014Bogert PoolNorthWestern Energy LLC (Montana)General Service NGNatural Gas$0.873410Therms3/1/2014Bozeman Public LibraryNorthWestern Energy LLC (Montana)General Service NGNatural Gas$0.873410Therms3/1/2014Bozeman Senior CenterNorthWestern Energy LLC (Montana)General Service NGNatural Gas$0.873410Therms3/1/2014Vehicle Maintenance BuildingNorthWestern Energy LLC (Montana)General Service NGNatural Gas$0.873410Therms3/1/2014Water Reclamation FacilityNorthWestern Energy LLC (Montana)General Service NGNatural Gas$0.873410Therms3/1/2014Bozeman Public LibraryCity of Bozeman (MT)SewerSewer (kgal)$3.873000kgal9/1/2013Bozeman Public LibraryCity of Bozeman (MT)WaterWater (kgal)$2.224000kgal9/1/2013Sheet 1 of 1168 City of Bozeman - Energy Performance Contract SCHEDULE C. SAVINGS MEASUREMENT AND VERIFICATION PLAN; METHODOLOGY TO ADJUST BASELINE Savings Measurement and Verification Plan Refer to Schedule A of this contract, as well as sections 3 and 5 of the Investment Grade Audit Report, dated July 9, 2014/Revision 1 October 16, 2014, for details regarding energy savings measurement, monitoring, and calculation procedures used to verify and compute the savings performance of the installed equipment. International Performance Measurement & Verification Protocol (IPMVP) Option A and Non- Measured were agreed to be the M&V methodologies for the upcoming performance contract with McKinstry. These Options were chosen based on overall utility savings value and utility savings risk perception by the City of Bozeman, application of the Option to the scope of the facility improvement measures (FIMs), and first cost. The scope of work represented by the Investment Grade Audit Report and this performance contract is best matched with Options A and Non-Measured for the following reasons: • The performance of only the systems affected by the FIMs to be implemented are of primary concern, due to the guaranteed savings of individual FIMs being insignificant compared to the overall utility usage of facilities. • Interactive effects between FIMs can be easily calculated. • Isolation of the FIM from the rest of the facility and stipulation of key factors will avoid possibly difficult and costly non-routine Baseline Adjustments for future changes to the facility. • The independent variables that affect energy use are not complex and excessively difficult or expensive to monitor. • The uncertainty created by stipulations is acceptable. • The continued effectiveness of the FIM can be assessed by routine visual inspection or via on-site access to control systems. Overview of M&V Reporting and Guarantee Period The language below defines the start date and duration of M&V Reporting that will be provided for all FIMs, and the method of energy savings reconciliation during the savings measurement period. The Commencement Date for the project starts the timeline associated with required M&V reporting. The FIMs are set forth in Schedule D Table 4.2 – FIM Summary. An initial Post-Commissioning Report will be submitted within three (3) months of the Commencement Date. Subsequent Annual M&V Reports i.e. M&V1, M&V2 and M&V3 will be submitted within three (3) months of one, two, and three years after the Commencement Date. Specific Post Commissioning Report tasks are further defined in section 3 of the Investment Grade Audit Report dated July 9, 2014/Revision 1 October 16, 2014. The Post Commissioning Report will contain a summary of the results of the Post-Retrofit measurements taken and a revised calculation of energy savings based on these measurements, which shall be compared to the energy and performance guarantee as 169 City of Bozeman - Energy Performance Contract outlined in the Investment Grade Audit Report. The Post Commissioning Report is for information purposes only and is not reconciled during the savings measurement period. Annual M&V Report M&V1 will be a summary of the results of the First-Year measurements taken, the three Quarterly Monitoring Reports submitted during year 1, and a revised calculation of energy savings based on these measurements, which shall be compared to the energy and performance guarantee as outlined in the Investment Grade Audit Report. This revised calculation of energy savings will be reconciled in year 1. For those FIMs that do not require M&V in Years 2 through 3 (Building Envelope, Water Conservation, PC Power Management, etc. Reference Table 3.2), the calculated energy savings for these FIMs will be stipulated to remain constant at year-1 calculated levels plus the agreed upon utility escalation rate for years 2 and 3. Should there be a savings shortfall in year-1, McKinstry shall make corrections to remedy the shortfall and provide a second year of M&V, at their own expense, which shall be used to reconcile during Guarantee year 2. The year 2 calculated energy savings will then be stipulated to remain constant for the remainder of the three-year savings measurement period for these FIMs. For the Parking Garage Lighting Upgrades FIM, M&V shall include measuring circuit energy for the duration of at least two weeks on at least 10% of the total lighting circuits. For the LED Street Lights FIM, M&V shall include measuring circuit energy on at least 10% of the total lighting circuits. M&V for these FIMs will be performed annually after the Commencement Date for a minimum of three years, or until M&V results show three consecutive years of verified annual utility savings at or above the amounts set forth in Schedule D, Table 4.2 -- Facility Improvement Measurement (FIM) Summary, at no additional cost to the City. Should annual M&V activities for these FIMs extend past Year 3, the term of the Contract will be extended for additional one-year terms until three consecutive years of verified annual utility savings is achieved. The Savings Measurement Period is defined as the three (3) fiscal years immediately following the Commencement Date. During year 1 of the Savings Measurement Period, Annual M&V Report M&V1 will be reconciled against the guarantee of annual savings in Schedule A, Table A (the “Annual Guarantee”). During year 2 of the Savings Measurement Period, the results of Annual M&V Report M&V1 for Building Envelope, Water Conservation, PC Power Management, plus the results of Annual M&V Report M&V2 for all other FIMs will be combined and the aggregate results will be reconciled against the Annual Guarantee for year 2. During year 3 of the Savings Measurement Period the results of Annual M&V Report M&V1 for Building Envelope, Water Conservation, PC Power Management, plus the results of Annual M&V Report M&V3 for all other FIMs will be combined and the aggregate results will be reconciled against the Annual Guarantee for year 3. For any given Annual M&V Report, excess savings from any one FIM can be used to cover a shortfall in savings for any other FIM within any one Guarantee year. As possible and determined by McKinstry, data necessary for Annual M&V reporting will be monitored and accumulated via site control/monitoring systems. If data is not available from control and monitoring systems, site loggers or specific point in time measurements will be utilized. Associated with M&V responsibilities, necessary performance expectation 170 City of Bozeman - Energy Performance Contract monitoring and system conformance activities will be performed via remote access and control/monitoring systems. As determined by McKinstry, site visits will be utilized in order to perform testing that is not possible remotely via control/monitoring systems. All data will be accumulated to McKinstry’s data base for archiving, calculation, and reporting functionality. City of Bozeman will allow the use of their internet and digital control system(s) and network(s) for the purposes of transporting data and the City of Bozeman internal IT resources will assist McKinstry with the setup of this interface all at no cost to McKinstry. Methodology to Adjust Baseline McKinstry and the City of Bozeman acknowledge that material changes such as unanticipated changes in facility use, occupancy, schedule and/or utility will affect the estimated annual energy savings. If and when these changes occur, the same methodology described in Schedule A used in calculating the original baseline for the portion of the Premises affected by the change shall be used to re-establish the new baseline. The difference in the two baselines shall be used to adjust the overall estimated annual savings. Performance Assurance Plan Outline Following this page is the Performance Assurance Plan Outline from the IGAR report with revisions dated October 16, 2014. 171 DRAFT (Not Final ESP)Table 3.2 - M&V Plan OutlineProjectCity of BozemanScenarioFY15 ConstructionDate11/18/2014FINAL REVISION FOR CONTRACTAudit Stage (Baselining) Post Retrofit (Commissioning)FIM Name FacilityIPMVP OptionKPI Key Performance Indicators Baseline Values Proposed Values Tasks TasksRemote Alarming and/or MonitoringRecommended M&V TasksOngoing Owner ResponsibilitiesStipulated FactorsBEA 04.01 Modify Thermostat SchedulesBeall ParkNon-Measured1. Temperature Setpoints Occ - 69°FUnOcc - 63°F Occ - 69°FUnOcc - 57°FDetermined through a review of equipment drawings and site walk-throughs.Review thermostat settings on site following program change.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsTemperature SetpointsBEA 09.01 Exterior Lighting Beall ParkNon-Measured1. Fixture Wattage 1.5 kW 0.3 kWDetermined through a review of equipment drawings and site walk-throughs.Review product submittals, fixtures delivered and installed on site.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsFixture Wattage2. Operational Hours 4380 hours 4380 hoursDetermined through a review of equipment drawings and site walk-throughs. No taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursBEA 13.01 Envelope Improvements Beall ParkNon-Measured1. Air Leakage 0.64 sq ft 0 sq ft Quantify air leakage areaReview product submittals for Qlon and door sweeps, review onsite installation for air gaps, quality.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsAir LeakageBOG 01.01 Boiler CommissioningBogert PoolNon-Measured1. Boiler Thermal Efficiency 75% 94%Determined through site walk-through and equipment measurement Review product submittals, manufacturer's startup documentation, as-builts and controls sequence.Test system functionality and review sequence of operation.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsBoiler Thermal EfficiencyCTY 09.02 Daylight ControlsBozeman City HallNon-Measured1. Fixture Wattage 756 W 756 WDetermined through a review of equipment drawings and site walk-throughs. Review product submittals, photocell installation on site, function of photocell.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsFixture Wattage2. Operational Hours 8760 hours 4380 hoursDetermined through a review of equipment drawings and site walk-throughs. No taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursKRK 09.01 Lighting UpgradeKirk ParkNon-Measured1. Fixture Wattage 510 W 63 WDetermined through a review of equipment drawings and site walk-throughs. Review product submittals, fixtures delivered and installed on site.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsFixture Wattage2. Operational Hours 4380 hours 4380 hoursDetermined through a review of equipment drawings and site walk-throughs. No taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursLIB 09.02 Lighting Controls Bozeman Public LibraryNon-Measured1. Fixture Wattage 24.2 kW 24.2 kWDetermined through a review of equipment drawings and site walk-throughs. No taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsFixture Wattage2. Operational Hours 2822 hours 2187 hoursDetermined through a review of equipment drawings and site walk-throughs. Review revised sequence of operation with lighting control company following modifications.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursLIB 18.01 Water ConservationBozeman Public LibraryNon-Measured1. Annual Water Usage 291,042 gallons 179,726 gallonsDetermined through a review of equipment drawings and site walk-throughs. Review pre and post retrofit measurements provided by Hydrametrics. NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsAnnual Water UsageSheet 1 of 4172 DRAFT (Not Final ESP)Table 3.2 - M&V Plan OutlineProjectCity of BozemanScenarioFY15 ConstructionDate11/18/2014FINAL REVISION FOR CONTRACTAudit Stage (Baselining) Post Retrofit (Commissioning)FIM Name FacilityIPMVP OptionKPI Key Performance Indicators Baseline Values Proposed Values Tasks TasksRemote Alarming and/or MonitoringRecommended M&V TasksOngoing Owner ResponsibilitiesStipulated FactorsOM 04.01 Custom Systems TrainingOverall MeasuresNon-Measured1. N/A N/A N/A N/AN/AN/A N/A N/AOM 26.01 Green IT: PC Power MgmtOverall MeasuresNon-Measured1. Computer Count 425 425Determined through a review of number of computers and settings for each group.Review number of computers implemented, settings for each group, and functional deployment of software. Ensure software reporting function is operational.None by McKinstry. City IT personnel should access annual reports via the software.Maintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsComputer Count2. Computer Wattage 110 W 110 W Industry standard assumption N/AN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsComputer Wattage3. Operational Hours 8 hrs/day wasted2 hrs/day wasted (75% recovered)Determined through a review of number of computers and settings for each group.Review number of computers implemented, settings for each group, and functional deployment of software. Ensure software reporting function is operational.None by McKinstry. City IT personnel should access annual reports via the software.Maintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursPKG 09.03 Lighting Upgrades Excl. RoofBozeman Parking Garage A 1. Average Fixture Wattage 22.3 kW 7.2 kWDetermined through a review of equipment drawings and site walk-throughsReview product submittals, fixtures delivered and installed on site.Post-Retrofit Only: Measure light levels of 10% of luminaires to confirm designed illumination levels are met.Measure circuit energy for the duration of at least 2 weeks on at least 10% of lighting circuits annually for a minimum of 3 years.Maintain facilities and equipment in accordance with McKinstry and manufacturer's recommendations2. Operational HoursBasement/1st: 8760 hours 2nd/3rd:4380 hoursBasement/1st: 8760 hours 2nd/3rd:4380 hoursDetermined through a review of equipment drawings and site walk-throughs. Review product submittals, fixtures delivered and installed on site.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational Hours3. Control Settings No Control Dimming: 10% minTimer: 5 min at maxDetermined through a review of equipment drawings and site walk-throughs. Review construction documentation and test 10% of fixtures and occupancy sensors for correct programming.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendations Dimming: 10% minTimer: 5 min at maxPRO 25.02 Controls SequenceProfessional BuildingNon-Measured1. N/A N/A N/A N/AN/AN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsN/ASEN 03.01 Kitchen EconomizerBozeman Senior CenterNon-Measured1.Cooling Equipment Average Power4 kW 1 kWDetermined through a review of equipment drawings and site walk-throughs. No taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsCooling Equipment Average Power2. Annual Cooling Hours 5799 hours 2475 hoursDetermined through a review of equipment drawings and site walk-throughs. No taskTest system functionality and review sequence of operation.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsAnnual Cooling HoursSheet 2 of 4173 DRAFT (Not Final ESP)Table 3.2 - M&V Plan OutlineProjectCity of BozemanScenarioFY15 ConstructionDate11/18/2014FINAL REVISION FOR CONTRACTAudit Stage (Baselining) Post Retrofit (Commissioning)FIM Name FacilityIPMVP OptionKPI Key Performance Indicators Baseline Values Proposed Values Tasks TasksRemote Alarming and/or MonitoringRecommended M&V TasksOngoing Owner ResponsibilitiesStipulated FactorsSEN 12.01 Hot Water System ImprovementsBozeman Senior CenterNon-Measured1. DHW Circ Pump Amperage 0.74 A 0.74 ADetermined through a review of equipment drawings and site walk-throughs and trendsNo taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsDHW Circ Pump Amperage2. DHW Circ Pump Hours 8760 hours 3175 hoursDetermined through a review of equipment drawings and site walk-throughs and trendsReview product submittals and installation. Confirm time clock functionality, annually.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsDHW Circ Pump Hours3.DHW Hot Water Pump Amperage0.74 A 0.74 ADetermined through a review of equipment drawings and site walk-throughs and trendsNo taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsDHW Hot Water Pump Amperage4.DHW Hot Water Pump Hours8760 hours 1875 hoursDetermined through a review of equipment drawings and site walk-throughs and trendsReview thermostat.Confirm thermostat functionality, annually.NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsDHW Hot Water Pump Hours5. DHW Average Temp 151.2°F 140°FDetermined through a review of equipment drawings and site walk-throughs and trendsReview operation of tank temperature sensor. Confirm outside air temperature sensor is operational. NoneMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsDHW Average Temp6. DHW % Time Above 140°F 32% 0%Determined through a review of equipment drawings and site walk-throughs and trendsReview construction documentation of sequence in BAS.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsDHW % Time Above 140°F7. Heating Pump Power P1: 0.8 kW P2: 0.6 kW P3: 0.4 kWP4: 0.4 kW P1: 0.8 kW P2: 0.6 kW P3: 0.4 kWP4: 0.4 kWDetermined through a review of equipment drawings and site walk-throughs and trendsNo taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsHeating Pump Power8. Heating Pump Hours P1: 6552 hrs P2: 6552 hrs P3: 8760 hrsP4: 6552 hrs P1: 5790 hrs P2: 5790 hrs P3: 8760 hrsP4: 5790 hrsDetermined through a review of equipment drawings and site walk-throughs and trendsNo taskConfirm operation schedules in BAS, annually.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsHeating Pump HoursSEN 13.01 Exterior Door SealsBozeman Senior CenterNon-Measured1. Air Leakage 0.31 sq ft 0 sq ft Quantify air leakage areaReview product submittals for Qlon and door sweeps, review onsite installation for air gaps, quality.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsAir LeakageSTR 09.01 LED Street LightsStreet Lighting A 1. Fixture Wattage 66.1 kW 36.1 kWDetermined through a review of equipment drawings and site walk-throughs. Review construction documentation Post-Retrofit Only: Measure light levels of 10% of luminaires to confirm designed illumination levels are met.Measure 10% of lighting circuitsMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendations2. Operational Hours 4380 hours 4380 hoursDetermined through a review of equipment drawings and site walk-throughs. Review construction documentation N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursSheet 3 of 4174 DRAFT (Not Final ESP)Table 3.2 - M&V Plan OutlineProjectCity of BozemanScenarioFY15 ConstructionDate11/18/2014FINAL REVISION FOR CONTRACTAudit Stage (Baselining) Post Retrofit (Commissioning)FIM Name FacilityIPMVP OptionKPI Key Performance Indicators Baseline Values Proposed Values Tasks TasksRemote Alarming and/or MonitoringRecommended M&V TasksOngoing Owner ResponsibilitiesStipulated FactorsVEH 01.01 Boiler Temperature ResetVehicle Maintenance BuildingNon-Measured1. Natural Gas Usage 6928 therms 6769 thermsDetermined through a review of equipment drawings and site walk-throughsNo taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsNatural Gas Usage2. Average Boiler Efficiency 83% 87.6%Determined through a review of equipment drawings and site walk-throughsNo taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsBoiler Efficiency3.Waste-Oil Boiler Max Supply Water Temperature180°F 160°FDetermined through a review of equipment drawings and site walk-throughsReview boiler setpoints on site.Test system functionality and review sequence of operation.Review sequence of operation, annually.Maintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsWaste-Oil Boiler Max SWT4.Condensing Boiler Max Supply Water Temperature160°F 140°FDetermined through a review of equipment drawings and site walk-throughsReview boiler setpoints on site.Test system functionality and review sequence of operation.Review sequence of operation, annually.Maintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsCondensing Boiler Max SWTWRF 09.01 Lighting ImprovementsWater Reclamation FacilityNon-Measured1. Fixture Wattage 16.4 kW 5.6 kWDetermined through a review of equipment drawings and site walk-throughs. Review product submittals, fixtures delivered and installed on site.N/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsFixture Wattage2. Operational HoursVaries. Refer to lighting spreadsheetVaries. Refer to lighting spreadsheetDetermined through a review of equipment drawings and site walk-throughs. No taskN/AMaintain facilities and equipment in accordance with McKinstry and manufacturer's recommendationsOperational HoursConfidential and ProprietarySheet 4 of 4175 City of Bozeman - Energy Performance Contract SCHEDULE D. FINAL PROJECT COST & PROJECT CASH FLOW ANALYSIS The Tables for this project are attached following this page for reference: • Schedule D: Table 4.1 - Budget Summary Report • Table 4.2 - FIM Summary Report • Table 4.3 – Cash Flow for Financed LED Street Lights 176 Project City of Bozeman Scenario FY15 Construction 4322 Date 11/17/2014 FINAL REVISION FOR CONTRACT Database ID Mechanical Electrical EMCS Lighting General Equipment Other Total 23120 BEA 04.01 Modify Thermostat Schedules -$ -$ 345$ -$ -$ -$ -$ 345$ 23119 BEA 09.01 Exterior Lighting -$ -$ -$ 4,044$ -$ -$ -$ 4,044$ 23117 BEA 13.01 Envelope Improvements -$ -$ -$ -$ 2,019$ -$ -$ 2,019$ 23487 BOG 01.01 Boiler Commissioning 1,176$ -$ -$ -$ -$ -$ -$ 1,176$ 25504 CTY 09.02 Daylight Controls 725$ -$ -$ -$ -$ -$ -$ 725$ 23411 KRK 09.01 Lighting Upgrade -$ -$ -$ 1,134$ -$ -$ -$ 1,134$ 25505 LIB 09.02 Lighting Controls 1,200$ -$ -$ -$ -$ -$ -$ 1,200$ 23377 LIB 18.01 Water Conservation 2,562$ -$ -$ -$ -$ -$ -$ 2,562$ 24902 OM 04.01 Custom Systems Training -$ -$ -$ -$ -$ -$ 5,600$ 5,600$ 23328 OM 26.01 Green IT: PC Power Mgmt -$ -$ -$ -$ -$ -$ 7,025$ 7,025$ 25986 PKG 09.03 Lighting Upgrades Excl. Roof -$ -$ -$ 131,885$ -$ -$ 5,500$ 137,385$ 25630 PRO 25.02 Controls Sequence 4,400$ -$ -$ -$ -$ -$ -$ 4,400$ 23394 SEN 03.01 Kitchen Economizer 9,465$ -$ -$ -$ -$ -$ -$ 9,465$ 23390 SEN 12.01 Hot Water System Improvements 4,300$ -$ -$ -$ -$ -$ -$ 4,300$ 23388 SEN 13.01 Exterior Door Seals 610$ -$ -$ -$ -$ -$ -$ 610$ 23402 STR 09.01 LED Street Lights -$ -$ -$ 131,651$ -$ -$ 10,000$ 141,651$ 23161 VEH 01.01 Boiler Temperature Reset -$ -$ 450$ -$ -$ -$ -$ 450$ 23462 WRF 09.01 Lighting Improvements -$ -$ -$ 13,200$ -$ -$ -$ 13,200$ 12614 Total Base FIM Cost 24,438$ -$ 795$ 281,914$ 2,019$ -$ 28,125$ 337,291$ 12619 A. Construction Costs Field Supervision Lump $17,916 1,298$ -$ 42$ 14,974$ 107$ -$ 1,494$ 17,916$ General Conditions Lump $3,983 289$ -$ 9$ 3,329$ 24$ -$ 332$ 3,983$ Subtotal(FIM Cost and A.)26,025$ -$ 847$ 300,217$ 2,150$ -$ 29,951$ 359,190$ Construction Bonds % 1.30% 338$ -$ 11$ 3,903$ 28$ -$ 389$ 4,669$ Total Construction Cost 363,859$ B. Professional Services Costs Design Lump $38,872 38,872$ Construction Administration Lump $10,666 10,666$ Measurement & Verification Lump $25,500 25,500$ Available Slot Lump $0 -$ 0 Total Professional Services Cost 75,038$ C. Other Project Costs Project Contingency Lump $0 -$ Total Other Project Cost -$ D. Overhead Costs & Fees Overhead % 8.80% Percent of Total Construction Cost 32,111$ Profit % 5.20% Percent of Total Construction Cost 18,853$ Total Overhead Cost & Fee 50,964$ E. Total Guaranteed Construction & ESCO Services (A + B + C + D)489,860$ F. Non-Guaranteed Costs State Gross Receipts Tax % 1.00% Percent of Section E. (Excluding Contigency)4,148$ Total Non-Guaranteed Cost 4,148$ G. Total Maximum Project Cost (E + F)494,009$ FIM Name Table 4.1 - Budget Summary Sheet 1 of 1177 Table 4.2 - Facility Improvement Measure (FIM) SummaryProjectCity of Bozeman ScenarioFY15 ConstructionFINAL REVISION FOR CONTRACTDate########### Facility Improvement Measures GMAXAnnual Utility SavingsAnnual Operational Savings **Simple Payback (SPB)Potential Incentives ***Net Customer Cost (with Incentives)Simple Payback (SPB)(with Incentives)BEA 04.01 Modify Thermostat Schedules$483 $75 $0 6.5 $0 $483 6.5BEA 09.01 Exterior Lighting$5,662 $481 $92 10.8 $254 $5,408 10.3BEA 13.01 Envelope Improvements $3,515 $199 $0 17.7 $0 $3,515 17.7BOG 01.01 Boiler Commissioning$2,047 $2,110 $1,000 0.0 $0 $2,047 0.0CTY 09.02 Daylight Controls$1,015 $241 $0 4.2 $0 $1,015 4.2KRK 09.01 Lighting Upgrade$1,588 $202 $92 5.6 $100 $1,488 5.1LIB 09.02 Lighting Controls$2,144 $1,120 $0 1.9 $0 $2,144 1.9LIB 18.01 Water Conservation$4,460 $842 $1,000 0.0 $0 $4,460 0.0OM 04.01 Custom Systems Training$7,840 $0 $0 0.0 $0 $7,840 0.0OM 26.01 Green IT: PC Power Mgmt$12,230 $5,009 $0 2.4 $2,550 $9,680 1.9PKG 09.03 Lighting Upgrades Excl. Roof$182,506 $11,590 $5,627 13.3 $0 $182,506 13.3PRO 25.02 Controls Sequence$7,552 $0 $0 0.0 $0 $7,552 0.0SEN 03.01 Kitchen Economizer$13,251 $2,109 $0 6.3 $0 $13,251 6.3SEN 12.01 Hot Water System Improvements$7,486 $1,009 $0 7.4 $0 $7,486 7.4SEN 13.01 Exterior Door Seals$1,062 $84 $0 12.6 $0 $1,062 12.6STR 09.01 LED Street Lights$222,057 $18,604 $1,009 11.4 $0 $222,057 11.4VEH 01.01 Boiler Temperature Reset$630 $125 $0 5.0 $0 $630 5.0WRF 09.01 Lighting Improvements$18,480 $5,845 $282 2.9 $979 $17,501 2.8$494,008 $49,645 $9,103 9.0 $3,883 $490,125 9.0* Since design cost, audit cost, etc. are distributed among the FIMs, the total project cost will not go up or down by exactly the amounts shown here if a FIM or FIMs are dropped.** For non recurring operational savings, the values are averaged over the 30 year length of this analysis.*** Incentives are contingent on final approval and are not guaranteed. Funds are shown for reference only.Confidential and ProprietarySheet 1 of 1178 Bozeman Deaconess Cash Flow Analysis: Street Lights OnlyDown Payment=-$ Rebates=-$ Savings Guarantee=100% Total Project Cost$222,057Financed Project Cost$222,057Annual Utility Rate Increase3.0%Rate of Financing4.29%Annual Operational Savings Increase0%Term of Financing15Service Agreement/M&V Cost Increases0%Construction201520162017201820192020202120222023202420252026202720282029Year0123456789101112131415Project SavingsEnergy Savings18,60419,16219,73720,32920,93921,56722,21422,88123,56724,27425,00225,75226,52527,32128,140Operational Savings - 1,6221,064926926926926926926926926Additional Revenue000000000000000Total Project Savings20,22620,22620,66321,25521,86522,49323,14023,80724,49325,20025,00225,75226,52527,32128,140Annual Customer ContributionNet Cash Available to Fund Project000000000000000Service Agreement Payments000000000000000Measurement and Verification Payments000000000000000Total Cash Available to Fund Project20,22620,22620,66321,25521,86522,49323,14023,80724,49325,20025,00225,75226,52527,32128,140Project CostService Contract000000000000000M&V000000000000000Principal10,85311,31811,80412,31012,83913,38913,96414,56315,18815,83916,51917,22717,96618,73719,541Interest9,5269,0618,5758,0697,5416,9906,4155,8165,1924,5403,8613,1522,4131,642838Total Payment20,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,226Total Project Cost20,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,22620,226Net Annual Cash Flow 0004371,0291,6392,2672,9143,5814,2674,9744,7765,5266,2997,0957,914Cumulative Net Ann Cash Flow 0 0 437 1,466 3,105 5,372 8,286 11,867 16,134 21,108 25,884 31,411 37,709 44,804 52,718179 City of Bozeman - Energy Performance Contract SCHEDULE E. - NOT USED 180 City of Bozeman - Energy Performance Contract SCHEDULE F. COMPENSATION TO CONTRACTOR FOR ANNUAL SERVICES No Annual Services are included in this phase of work. 181 City of Bozeman - Energy Performance Contract SCHEDULE G. – NOT USED 182 City of Bozeman - Energy Performance Contract SCHEDULE H. SCOPE OF WORK Building Facility Improvement Measure Beall Park BEA 04.01 Modify Thermostat Schedules Beall Park BEA 09.01 Exterior Lighting Beall Park BEA 13.01 Envelope Improvements Bogert Pool BOG 01.01 Boiler Commissioning City Hall CTY 09.02 Daylight Controls Kirk Park KRK 09.01 Lighting Upgrade Bozeman Public Library LIB 09.02 Lighting Controls Bozeman Public Library LIB 18.01 Water Conservation Overall OM 04.01 Custom Systems Training Overall OM 26.01 PC Power Management Parking Garage PKG 09.03 Lighting Upgrades Excl. Roof Professional Building PRO 25.02 Controls Sequence Senior Center SEN 03.01 Kitchen Economizer Senior Center SEN 12.01 Hot Water System Improvements Senior Center SEN 13.01 Exterior Door Seals Streets STR 09.01 LED Street Lights Vehicle Maintenance VEH 01.01 Boiler Temperature Reset Water Reclamation Facility WRF 09.01 Lighting Improvements 183 City of Bozeman - Energy Performance Contract SCHEDULE I. CONSTRUCTION AND EQUIPMENT INSTALLATION SCHEDULE The project design and construction schedule for this project is attached following this page for reference: 184 IDTask ModeTask Name Duration Start Finish Predecessors Resource Names1Contract30 daysMon 10/27/14Tue 12/9/142Notice to Proceed1 dayWed 12/10/14Wed 12/10/1413Design40 daysWed 12/10/14Wed 2/11/154Lighting Specifications BEA, CTY, KRK,PKG, STR, WRF5 daysThu 12/11/14Wed 12/17/142McKinstry5Senior Center Kitchen Economizer40 daysWed 12/10/14Wed 2/11/156Produce Design Docs10 daysWed 12/10/14Tue 12/23/141McKinstry7Design Review with COB10 daysMon 12/29/14Wed 1/14/156McKinstry8Produce Construction Docs10 daysThu 1/15/15Wed 1/28/157McKinstry9Permitting10 daysThu 1/29/15Wed 2/11/158McKinstry10Senior Center Hot Water System40 daysWed 12/10/14Wed 2/11/1511Produce Design Docs10 daysWed 12/10/14Tue 12/23/141McKinstry12Design Review with COB10 daysMon 12/29/14Wed 1/14/1511McKinstry13Produce Construction Docs10 daysThu 1/15/15Wed 1/28/1512McKinstry14Permitting10 daysThu 1/29/15Wed 2/11/1513McKinstry15Pre - Construction68 daysThu 12/18/14Tue 3/31/1516Subcontracts44 daysThu 12/18/14Wed 2/25/1517Lighting Subcontractor Buyout22 daysThu 12/18/14Mon 1/26/1518Prepare RFP5 daysThu 12/18/14Mon 12/29/144McKinstry19Issue RFP10 daysTue 12/30/14Thu 1/15/1518McKinstry20Evaluate RFP2 daysFri 1/16/15Mon 1/19/1519McKinstry21Award & Execute Subcontract for Lighting Scopes5 daysTue 1/20/15Mon 1/26/1520McKinstry22Mechanical Subcontractor Buyout20 daysThu 1/29/15Wed 2/25/1523Prepare Detailed Scope Packagefor Pricing5 daysThu 1/29/15Wed 2/4/1513McKinstry24Issue Request for Quotation10 daysThu 2/5/15Wed 2/18/1523McKinstry25Award & Execute Subcontract(s) for Mechanical Scopes5 daysThu 2/19/15Wed 2/25/1524McKinstry26Issue & Execute Subcontract to BES for Envelop and PC Power Management Scopes5 daysTue 1/20/15Mon 1/26/1521SSMcKinstry27Issue & Execute Subcontract to Hydrometrics for Water Conservation Measures5 daysTue 1/20/15Mon 1/26/1521SSMcKinstry28Issue & Execute Subcontract to McKinstry Commissioning5 daysTue 1/20/15Mon 1/26/1521SSMcKinstry29Procurement of Materials46 daysTue 1/27/15Tue 3/31/1530Lighting46 daysTue 1/27/15Tue 3/31/1531Submittals5 daysTue 1/27/15Mon 2/2/1521Electrical32Place Lighting Orders1 dayTue 2/3/15Tue 2/3/1531Electrical33Parking Garage Lighting & Street Lighting Production and Shipping40 daysWed 2/4/15Tue 3/31/1532Electrical34Other Production and Shipping30 daysWed 2/4/15Tue 3/17/1532Electrical35Mechanical21 daysThu 2/26/15Thu 3/26/1536Submittals5 daysThu 2/26/15Wed 3/4/1537Kitchen Economizer5 daysThu 2/26/15Wed 3/4/1525Mechanical38Hot Water System Controls5 daysThu 2/26/15Wed 3/4/1525Controls39Place Mechanical Orders1 dayThu 3/5/15Thu 3/5/1537,38Mechanical40Production and Shipping14 daysFri 3/6/15Wed 3/25/153941Delivery of Mechanical Materials1 dayThu 3/26/15Thu 3/26/154042Water Conservation21 daysTue 1/27/15Tue 2/24/1543Submittals6 daysTue 1/27/15Tue 2/3/1544Urinals & Flow Control Devices5 daysTue 1/27/15Mon 2/2/1527Hydrometrics45Place order1 dayTue 2/3/15Tue 2/3/1544Hydrometrics46Production and Shipping14 daysWed 2/4/15Mon 2/23/154547Delivery of Materials1 dayTue 2/24/15Tue 2/24/154648PC Power Management10 daysTue 1/27/15Mon 2/9/1549Submittals5 daysTue 1/27/15Mon 2/2/1526BES50Review and Approval by COB5 daysTue 2/3/15Mon 2/9/1549McKinstry51Envelop Improvements5 daysTue 1/27/15Mon 2/2/1552Submittals5 daysTue 1/27/15Mon 2/2/1526BES53Construction78 daysTue 1/27/15Thu 5/14/1554Beall39 daysTue 1/27/15Fri 3/20/1555BEA 04.01 - Modify Thermostat Schedules1 dayTue 1/27/15Tue 1/27/1528Commissioning56BEA 09.01 - Exterior Lighting3 daysWed 3/18/15Fri 3/20/1557Pole Fixtures - 2 ea1 dayWed 3/18/15Wed 3/18/1534Electrical58Wall Packs - 2 ea1 dayThu 3/19/15Thu 3/19/1557Electrical59Flood Fixture - 1 ea1 dayFri 3/20/15Fri 3/20/1558Electrical60BEA 13.01 - Envelop Improvements2 daysTue 2/3/15Wed 2/4/1561Door work1 dayTue 2/3/15Tue 2/3/1552BES62Windows work2 daysTue 2/3/15Wed 2/4/1552McKinstry63Bogert Pool15 daysTue 1/27/15Mon 2/16/1564BOG 01.01 - Boiler Commissioning15 daysTue 1/27/15Mon 2/16/1565COB provide Startup Docs1 dayTue 1/27/15Tue 1/27/1528CoB66Doc Review2 daysWed 1/28/15Thu 1/29/1565,55Commissioning67Point to Point and FPT2 daysFri 1/30/15Mon 2/2/1566Commissioning68CX Report10 daysTue 2/3/15Mon 2/16/1567Commissioning69City Hall4 daysTue 2/17/15Fri 2/20/1570CTY 09.02 - Daylight Controls4 daysTue 2/17/15Fri 2/20/1571Wiring3 daysTue 2/17/15Thu 2/19/1532SS+10 daysElectrical72Testing1 dayFri 2/20/15Fri 2/20/1571Electrical73Kirk Park1 dayWed 3/18/15Wed 3/18/1574KRK 09.01 - Lighting Upgrade1 dayWed 3/18/15Wed 3/18/1575Wall Packs - 3ea1 dayWed 3/18/15Wed 3/18/1534Electrical76Library9 daysTue 2/17/15Fri 2/27/1577LIB 09.02 - Lighting Controls5 daysTue 2/17/15Mon 2/23/1578Field Work2 daysTue 2/17/15Wed 2/18/1528,68Commissioning79Programming with Lighting Control2 daysThu 2/19/15Fri 2/20/1578Commissioning80Testing1 dayMon 2/23/15Mon 2/23/1579Commissioning81LIB 18.01 - Water Conservation3 daysWed 2/25/15Fri 2/27/1582Remove Existing1 dayWed 2/25/15Wed 2/25/1547Hydrometrics83Install New2 daysThu 2/26/15Fri 2/27/1582Hydrometrics84Overall Measures41 daysTue 2/10/15Tue 4/7/1585OM 04.01 - Custom Systems Training3 daysFri 4/3/15Tue 4/7/158620 Hours of Training3 daysFri 4/3/15Tue 4/7/1528,99,102,106Commissioning87OM 26.01 - Green IT PC Power Mgmt5 daysTue 2/10/15Mon 2/16/1550BES88Parking Garage12 daysWed 4/1/15Thu 4/16/1589PKG 09.03 - Lighting Upgrades12 daysWed 4/1/15Thu 4/16/1590Lighting Replacement - 188 ea12 daysWed 4/1/15Thu 4/16/1533Electrical91Street Lighting20 daysFri 4/17/15Thu 5/14/1592STR 09.01 - LED Street Lights20 daysFri 4/17/15Thu 5/14/1593Light Fixture Replacement20 daysFri 4/17/15Thu 5/14/159094Professional Building34 daysTue 1/27/15Fri 3/13/1595PRO 25.02 - Control Sequence34 daysTue 1/27/15Fri 3/13/1596COB to provide updated Control Docs1 dayTue 1/27/15Tue 1/27/1528CoB97Document Review5 daysMon 2/23/15Fri 2/27/1596,79Commissioning98Implementation5 daysMon 3/2/15Fri 3/6/1597Commissioning99Testing5 daysMon 3/9/15Fri 3/13/1598Commissioning100Senior Center55 daysTue 2/3/15Mon 4/20/15101SEN 03.01 - Kitchen Economizer17 daysFri 3/27/15Mon 4/20/15102Ductwork5 daysFri 3/27/15Thu 4/2/1541Mechanical103Startup2 daysFri 4/3/15Mon 4/6/15102Mechanical104Testing and Commissioning10 daysTue 4/7/15Mon 4/20/15103Commissioning105SEN 12.01 - Hot Water System Improvements17 daysFri 3/27/15Mon 4/20/15106Controls5 daysFri 3/27/15Thu 4/2/1541Controls107Startup2 daysFri 4/3/15Mon 4/6/15106Controls108Testing and Commissioning10 daysTue 4/7/15Mon 4/20/15107Commissioning109SEN 13.01 - Exterior Door Seals1 dayTue 2/3/15Tue 2/3/1552BES110Vehicle Maintenance Building1 dayTue 1/27/15Tue 1/27/15111VEH 01.01 - Boiler Temperature Reset1 dayTue 1/27/15Tue 1/27/1528Commissioning112Water Reclamation Facility6 daysMon 3/23/15Mon 3/30/15113WRF 09.01 - Lighting Improvements6 daysMon 3/23/15Mon 3/30/15114Lighting Retrofits - 51 ea4 daysMon 3/23/15Thu 3/26/1534,59Electrical115Lamp Retrofits - 45 ea2 daysFri 3/27/15Mon 3/30/15114Electrical116Closeout25 daysFri 5/15/15Thu 6/18/15117O&M's20 daysFri 5/15/15Thu 6/11/1593McKinstry118Asbuilts20 daysFri 5/15/15Thu 6/11/1593McKinstry119Training5 daysFri 6/12/15Thu 6/18/15118McKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryMcKinstryElectricalElectricalElectricalElectricalMechanicalControlsMechanicalHydrometricsHydrometricsBESMcKinstryBESCommissioningElectricalElectricalElectricalBESMcKinstryCoBCommissioningCommissioningCommissioningElectricalElectricalElectricalCommissioningCommissioningCommissioningHydrometricsHydrometricsCommissioningBESElectricalCoBCommissioningCommissioningCommissioningMechanicalMechanicalCommissioningControlsControlsCommissioningBESCommissioningElectricalElectricalMcKinstryMcKinstryMcKinstryOctNovDecJanFebMarAprMayJunJulAugSepOct2015City of BozemanPhase 1Preliminary Construction SchedulePage 1185 City of Bozeman - Energy Performance Contract SCHEDULE J. SYSTEMS START-UP AND COMMISSIONING; OPERATING PARAMETERS OF INSTALLED EQUIPMENT To be provided following contract execution in the form of Operation and Maintenance Manuals and Commissioning reports. 186 City of Bozeman - Energy Performance Contract SCHEDULE K. STANDARDS OF COMFORT Refer to section 3 of the Investment Grade Audit Report dated July 9, 2014/Revision 1 October 16, 2014 for details regarding heating, cooling, lighting, ventillation and other standards of comfort applicable to this project. 187 City of Bozeman - Energy Performance Contract SCHEDULE L. CONTRACTOR’S TRAINING RESPONSIBILITIES McKinstry will provide digital controls systems training per building where new digital controls equipment is to be installed. McKinstry will also cause to be provided additional training provided by subcontractors as it relates to their specific mechanical equipment and systems, as identified during the RFP process for each FIM. The City of Bozeman has the option to negotiate additional training and service support at their discretion. Table L-1: Matrix of City of Bozeman Training to Be Conducted by Contractor FIM Type Training Timing Training Duration and Notes Lighting Training to be completed in conjunction with the final punchlist/acceptance walk through of each building. Revised sequences of operation for the lighting controls system at the Library will be reviewed in detail with Facilities. PC Power Management Initial training to be provided during deployment of the software. Training on the back-end will be hands-on with documentation. Training for the end users can be done through videos, classroom or documentation. Follow up conference call for City of Bozeman IT personnel approximately 6 months after the Commencement Date. Mechanical at Senior Center Initial training to be provided during the start-up phase, plus a follow up for City of Bozeman personnel approximately 6 months after the Commencement Date. Approx. 1 hour classroom session within 30 calendar days of the Commencement Date, plus an additional 1 hour at 6 months after Commencement Date. Envelope, Water, Boiler Reset, Tstats Training to be completed in conjunction with the final punchlist/acceptance walk through of each building/FIM. 188 City of Bozeman - Energy Performance Contract SCHEDULE M. – NOT USED 189 City of Bozeman - Energy Performance Contract SCHEDULE N. – NOT USED 190 City of Bozeman - Energy Performance Contract SCHEDULE O. FACILITY MAINTENANCE CHECKLIST To be provided following contract execution and design completion. 191 City of Bozeman - Energy Performance Contract SCHEDULE P. – NOT USED 192 City of Bozeman - Energy Performance Contract SCHEDULE Q. – NOT USED 193 City of Bozeman - Energy Performance Contract SCHEDULE R. PRE-EXISTING SERVICE CONTRACTS 194 City of Bozeman - Energy Performance Contract SCHEDULE S. CURRENT AND KNOWN CAPITAL PROJECTS AT FACILITY 195 City of Bozeman - Energy Performance Contract EXHIBITS EXHIBIT I NOT USED EXHIBIT II NOT USED EXHIBIT III (i) Certificate of Acceptance—Investment Grade Audit Report EXHIBIT III (ii) Certificate of Acceptance—Installed Equipment EXHIBIT III (iii) Notice of Substantial Completion—Individual FIMs EXHIBIT IV NOT USED EXHIBIT V Montana Prevailing Wage Rate Schedule EXHIBIT VI NOT USED APPENDICES APPENDIX A Investment Grade Audit Report July 9, 2014/Revision 1 October 16, 2014 196 City of Bozeman - Energy Performance Contract EXHIBIT III (i): Certificate of Acceptance – Investment Grade Audit 197 198 City of Bozeman - Energy Performance Contract EXHIBIT III (ii): Certificate of Acceptance – Installed Equipment Covered under Substantial Completion and Final Acceptance by the City of Bozeman. 199 City of Bozeman - Energy Performance Contract EXHIBIT III (iii): Notice of Substantial Completion – Individual FIMs 200 C:\Users\nmeyer\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\X596Q1TF\Form_107_Certificate_of_Substantial_Completion (2).doc FORM 107 Last form revision (12-01-2006) Page 1 of 2 STATE OF MONTANA DEPARTMENT OF ADMINISTRATION ARCHITECTURE AND ENGINEERING DIVISION 1520 East Sixth Avenue • P.O. Box 200103 • Helena MT 59620-0103 Phone: 406 444-3104 • Fax: 406 444-3399 CERTIFICATE OF SUBSTANTIAL COMPLETION Project Name: A&E #: Project Address: Date: Project Location: Agency: Address: Contact Name: Contact #: To: MONTANA DEPARTMENT OF ADMINISTRATION ARCHITECTURE AND ENGINEERING DIVISION 1529 E. SIXTH AVENUE, P.O. BOX 200103 HELENA MT 59620-0103 Architect/Engineer: Contractor: Contract Date: Contract Amount: PROJECT OR DESIGNATED PORTION SHALL INCLUDE: The work performed under this Contract has been reviewed and found to be substantially complete. The Date of Substantial Completion of the Project or portion thereof designated above, which is also the date of commencement of applicable warranties required by the Contract Documents, except as stated below is hereby established as: BASIC PROJECT INFORMATION (required by Risk & Tort Defense Division) NEW REMODEL/RENOVATION Total Square Footage General Construction Material (e.g. masonry, metal panel, wood, etc.) Total Construction Cost Fire Sprinklers Installed (yes/no) Estimated Date of Occupancy (if different from date of Substantial) Building Usage: Additional Comments: Definition of Date of Substantial Completion The Date of Substantial Completion of the Work or designated portion thereof is the Date certified by the Architect/Engineer when construction is sufficiently complete, in accordance with the Contract Documents, so the Owner can occupy or utilize the Work or designated portion thereof for the use for which it is intended, as expressed in the Contract Documents. 201 C:\Users\nmeyer\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\X596Q1TF\Form_107_Certificate_of_Substantial_Completion (2).doc FORM 107 Last form revision (12-01-2006) Page 2 of 2 A list of items to be completed or corrected, prepared by the Contractor and verified and amended by the Architect/Engineer, is attached hereto. The failure to include any items on such list does not alter the responsibility of the Contractor to complete all the Work in accordance with the Contract Documents. The warranty period is defined as commencing with Substantial Completion (or with each Substantial Completion if there is more than one) of the Project, or any portion thereof, and continuing for one (1) calendar year from the date of Final Acceptance of the entire project unless otherwise modified in writing as part of the Substantial Completion or Final Acceptance. Architect/Engineer By Date The Contractor will complete or correct the Work on the list of items attached hereto within days from the above Date of Substantial Completion. Contractor By Date The Owner accepts the Work or designated portion thereof as substantially complete and will assume full possession thereof at (time) on (date). State of Montana Department of Administration, Architecture and Engineering Division Owner By Date The responsibilities of the Owner and the Contractor for security, maintenance, heat, utilities, damage to the Work and insurance will be as follows (use attachments as necessary): 202 City of Bozeman - Energy Performance Contract EXHIBIT V: Montana Prevailing Wage Rate Schedule 203 MONTANA PREVAILING WAGE RATES FOR BUILDING CONSTRUCTION SERVICES 2014 Effective: July 11, 2014 Steve Bullock, Governor State of Montana Pam Bucy, Commissioner Department of Labor and Industry To obtain copies of prevailing wage rate schedules, or for information relating to public works projects and payment of prevailing wage rates, visit ERD at www.mtwagehourbopa.com or contact: Employment Relations Division Montana Department of Labor and Industry P. O. Box 201503 Helena, MT 59620-1503 Phone 406-444-5600 TDD 406-444-5549 The Labor Standards Bureau welcomes questions, comments and suggestions from the public. In addition, we’ll do our best to provide information in an accessible format, upon request, in compliance with the Americans with Disabilities Act. MONTANA PREVAILING WAGE REQUIREMENTS The Commissioner of the Department of Labor and Industry, in accordance with Sections 18-2-401 and 18-2-402 of the Montana Code Annotated (MCA), has determined the standard prevailing rate of wages for the occupations listed in this publication. The wages specified herein control the prevailing rate of wages for the purposes of 18-2-401, et seq., MCA. It is required that each employer pay (as a minimum) the rate of wages, including fringe benefits, travel allowance, zone pay and per diem applicable to the district in which the work is being performed as provided in the attached wage determinations. All Montana Prevailing Wage Rates are available on the internet at www.mtwagehourbopa.com or by contacting the Labor Standards Bureau at (406) 444-5600 or TDD (406) 444-5549. In addition, this publication provides general information concerning compliance with Montana’s Prevailing Wage Law and the payment of prevailing wages. For detailed compliance information relating to public works contracts and payment of prevailing wage rates, please consult the regulations on the internet at www.mtwagehourbopa.com or contact the Labor Standards Bureau at (406) 444-5600 or TDD (406) 444-5549. PAM BUCY Commissioner Department of Labor and Industry State of Montana 204 TABLE OF CONTENTS MONTANA PREVAILING WAGE REQUIREMENTS: WAGE RATES: A. Date of Publication ………………………………………………………………………………………………………………. 3 B. Definition of Building Construction ……………………………………………………………………………………….......... 3 C. Definition of Public Works Contract ………………………………………………………………………………………….... 3 D. Prevailing Wage Schedule ……………………………………………………………………………………………………… 3 E. Rates to use for Projects ………………………………………………………………………………………………………… 3 F. Wage Rate Adjustments for Multiyear Contracts ……………………………………………………………………………… 3 G. Fringe Benefits ……………………………………………………………………………………………………………………. 4 H. Prevailing Wage Districts ………………………………………………………………………………………………………… 4 I. Zone Pay ………………………………………………………………………………………………………………………….. 5 J. Computing Travel Benefits ……………………………………………………………………………………………………… 5 K Per Diem ………………………………………………………………………………………………………………………….. 5 L. Apprentices ……………………………………………………………………………………………………………………….. 5 M. Posting Notice of Prevailing Wages ……………………………………………………………………………………………. 5 N. Employment Preference ……………………………………………………………………………………………………....... 5 O. Building Construction Occupations Website …………………………………………………………………………………… 5 P. Welder Rates ……………………………………………………………………………………………………………………. 5 Q. Foreman Rates …………………………………………………………………………………………………………………. 5 BOILERMAKERS ……………………………………………………………………………………………………………………….. 6 BRICK, BLOCK, AND STONE MASONS ………………………………………………………………………………………........ 6 CARPENTERS ………………………………………………………………………………………………………………………….. 6 CEMENT MASONS …………………………………………………………………………………………………………………….. 6 CONSTRUCTION EQUIPMENT OPERATORS OPERATORS GROUP 1 …………………………………………………………………………………………………………..... 7 OPERATORS GROUP 2 ……………………………………………………………………………………………………………. 7 OPERATORS GROUP 3 ……………………………………………………………………………………………………………. 8 OPERATORS GROUP 4 ……………………………………………………………………………………………………………. 8 OPERATORS GROUP 5 ……………………………………………………………………………………………………………. 8 OPERATORS GROUP 6 ……………………………………………………………………………………………………………. 9 OPERATORS GROUP 7 ……………………………………………………………………………………………………………. 9 CONSTRUCTION LABORERS LABORERS GROUP 1 ……………………………………………………………………………………………………………. 9 LABORERS GROUP 2 ……………………………………………………………………………………………………………. 10 LABORERS GROUP 3 ……………………………………………………………………………………………………………. 10 LABORERS GROUP 4 ……………………………………………………………………………………………………………. 11 DRYWALL APPLICATORS ……………………………………………………………………………………………………………. 11 ELECTRICIANS: INCLUDING BUILDING AUTOMATION CONTROL …………………………………………………………… 11 ELEVATOR CONSTRUCTORS ……………………………………………………………………………………………………….. 12 FLOOR LAYERS ……………………………………………………………………………………………………………………….. 12 GLAZIERS ……………………………………………………………………………………………………………………………….. 12 HEATING AND AIR CONDITIONING ………………………………………………………………………………………………… 12 INSULATION WORKERS-MECHANICAL (HEAT AND FROST) ………………………………………………………………... 13 IRONWORKERS-STRUCTURAL STEEL AND REBAR PLACERS ………………………………………………………………. 13 MILLWRIGHTS ………………………………………………………………………………………………………………………….. 13 PAINTERS: INCLUDING PAPERHANGER ………………………………………………………………………………………… 13 PILE BUCKS …………………………………………………………………………………………………………………………….. 14 PLASTERERS ………………………………………………………………………………………………………………………….. 14 PLUMBERS, PIPEFITTERS, AND STEAMFITTERS ……………………………………………………………………………….. 14 ROOFERS ……………………………………………………………………………………………………………………………….. 15 SHEET METAL WORKERS …………………………………………………………………………………………………………… 15 SPRINKLER FITTERS …………………………………………………………………………………………………………………. 15 TAPERS …………………………………………………………………………………………………………………………………. 15 TEAMSTERS GROUP 2 ………………………………………………………………………………………………………………. 16 TELECOMMUNICATIONS EQUIPMENT INSTALLERS …………………………………………………………………………… 16 TILE AND MARBLE SETTERS ……………………………………………………………………………………………………….. 16 2 205 A. Date of Publication July 11, 2014 B. Definition of Building Construction For the purposes of Prevailing Wage, the Commissioner of Labor and Industry has determined that building construction occupations are defined to be those performed by a person engaged in a recognized trade or craft, or any skilled, semi- skilled, or unskilled manual labor related to the construction, alteration, or repair of a public building or facility, and does not include engineering, superintendence, management, office or clerical work. The Administrative Rules of Montana (ARM) 24.17.501(2) – 2(a), Public Works Contracts for Construction Services Subject to Prevailing Wage Rates, states: “Building construction projects generally are the constructions of sheltered enclosures with walk-in access for housing persons, machinery, equipment, or supplies. It includes all construction of such structures, incidental installation of utilities and equipment, both above and below grade level, as well as incidental grading, utilities and paving. Examples of building construction include, but are not limited to, alterations and additions to buildings, apartment buildings (5 stories and above), arenas (closed), auditoriums, automobile parking garages, banks and financial buildings, barracks, churches, city halls, civic centers, commercial buildings, court houses, detention facilities, dormitories, farm buildings, fire stations, hospitals, hotels, industrial buildings, institutional buildings, libraries, mausoleums, motels, museums, nursing and convalescent facilities, office buildings, out-patient clinics, passenger and freight terminal buildings, police stations, post offices, power plants, prefabricated buildings, remodeling buildings, renovating buildings, repairing buildings, restaurants, schools, service stations, shopping centers, stores, subway stations, theaters, warehouses, water and sewage treatment plants (buildings only), etc.” C. Definition of Public Works Contract Section 18-2-401(11)(a), MCA defines “public works contract” as “…a contract for construction services let by the state, county, municipality, school district, or political subdivision or for nonconstruction services let by the state, county, municipality, or political subdivision in which the total cost of the contract is in excess of $25,000…” D. Prevailing Wage Schedule This publication covers only Building Construction occupations and rates. These rates will remain in effect until superseded by a more current publication. Current prevailing wage rate schedules for Heavy Construction, Highway Construction, and Nonconstruction Services occupations can be found on the internet at www.mtwagehourbopa.com or by contacting the Labor Standards Bureau at (406) 444-5600 or TDD (406) 444-5549. E. Rates to use for Projects Rates to be used on a public works project are those that are in effect at the time the project and bid specifications are advertised. F. Wage Rate Adjustments for Multiyear Contracts Section 18-2-417, MCA states: “(1) Any public works contract that by the terms of the original contract calls for more than 30 months to fully perform must include a provision to adjust, as provided in subsection (2), the standard prevailing rate of wages to be paid to the workers performing the contract. (2) The standard prevailing rate of wages paid to workers under a contract subject to this section must be adjusted 12 months after the date of the award of the public works contract. The amount of the adjustment must be a 3% increase. The adjustment must be made and applied every 12 months for the term of the contract. (3) Any increase in the standard rate of prevailing wages for workers under this section is the sole responsibility of the contractor and any subcontractors and not the contracting agency.” 3 206 G. Fringe Benefits Section 18-2-412, MCA states: “(1) To fulfill the obligation...a contractor or subcontractor may: (a) pay the amount of fringe benefits and the basic hourly rate of pay that is part of the standard prevailing rate of wages directly to the worker or employee in cash; (b) make an irrevocable contribution to a trustee or a third person pursuant to a fringe benefit fund, plan, or program that meets the requirements of the Employee Retirement Income Security Act of 1974 or that is a bona fide program approved by the U. S. department of labor; or (c) make payments using any combination of methods set forth in subsections (1)(a) and (1)(b) so that the aggregate of payments and contributions is not less than the standard prevailing rate of wages, including fringe benefits and travel allowances, applicable to the district for the particular type of work being performed. (2) The fringe benefit fund, plan, or program described in subsection (1)(b) must provide benefits to workers or employees for health care, pensions on retirement or death, life insurance, disability and sickness insurance, or bona fide programs that meet the requirements of the Employee Retirement Income Security Act of 1974 or that are approved by the U. S. department of labor.” Fringe benefits are paid for all hours worked (straight time and overtime hours). However, fringe benefits are not to be considered a part of the hourly rate of pay for calculating overtime, unless there is a collectively bargained agreement in effect that specifies otherwise. H. Prevailing Wage Districts Montana counties are aggregated into 4 districts for the purpose of prevailing wage. The prevailing wage districts are composed of the following counties: 4 207 I. Zone Pay Zone pay is not travel pay. It is an additional amount added to the base pay, which then becomes the new base wage rate to be paid for all hours worked on the project. Zone pay, for the purposes of public works projects, shall be determined by measuring the road miles one direction over the shortest practical maintained route from the nearest county courthouse to the center of the job from the following listed cities:  Billings, Bozeman, Butte, Glasgow, Great Falls, Helena, Kalispell, Miles City, and Missoula. J. Computing Travel Benefits Travel pay, for the purposes of public works projects, shall be paid for travel both to and from the job site, except those with special provisions listed under the classification. The rate is determined by measuring the road miles one direction over the shortest practical maintained route from the nearest county courthouse or the employee's home, whichever is closer, to the center of the job from the following listed cities:  Billings, Bozeman, Butte, Glasgow, Great Falls, Helena, Kalispell, Miles City, and Missoula. K. Per Diem Per Diem typically covers the costs associated with board and lodging expenses and are paid when an employee is required to work at a location outside the daily commuting distance and is required to stay overnight or longer. L. Apprentices Wage rates for apprentices registered in approved federal or state apprenticeship programs are contained in those programs. Additionally, section 18-2-416(2), MCA states, “…The full amount of any applicable fringe benefits must be paid to the apprentice while the apprentice is working on the public works contract.” Apprentices not registered in approved federal or state apprenticeship programs will be paid the appropriate journey level prevailing wage rate when working on a public works contract. M. Posting Notice of Prevailing Wages Section 18-2-406, MCA provides that contractors, subcontractors and employers who are “…performing work or providing construction services under public works contracts, as provided in this part, shall post in a prominent and accessible site on the project or staging area, not later than the first day of work and continuing for the entire duration of the project, a legible statement of all wages and fringe benefits to be paid to the employees.” N. Employment Preference Sections 18-2-403 and 18-2-409, MCA requires contractors to give preference to the employment of bona fide Montana residents in the performance of work on public works contracts. O. Building Construction Occupations Website You can find definitions for these occupations on the following Bureau of Labor Statistics website: http://www.bls.gov/oes/current/oes_stru.htm P. Welder Rates Welders receive the rate prescribed for the craft performing an operation to which welding is incidental. Q. Foreman Rates Rates are no longer set for foremen. However, if a foreman performs journey level work, the foreman must be paid at least the journey level rate. 5 208 WAGE RATES BOILERMAKERS Wage Benefit District 1 $30.72 $29.45 District 2 $30.00 $29.45 District 3 $30.00 $29.45 District 4 $30.00 $29.45 Travel: All Districts 0-120 mi. free zone >120 mi. federal mileage rate/mi. in effect when travel occurs. Special Provision: Travel is paid only at the beginning and end of the job. Per Diem: All Districts 0-70 mi. free zone >70-120 mi. $55.00/day >120 mi. $70.00/day BRICK, BLOCK, AND STONE MASONS Wage Benefit District 1 $25.74 $12.47 District 2 $25.74 $12.47 District 3 $25.56 $12.11 District 4 $25.10 $12.47 Travel: All Districts 0-45 mi. free zone >45-60 mi. $25.00/day >60-90 mi. $55.00/day >90 mi. $65.00/day CARPENTERS Wage Benefit District 1 $21.09 $ 9.54 District 2 $21.00 $11.86 District 3 $21.00 $11.57 District 4 $19.50 $11.57 Duties Include: Install roll and batt insulation. Zone Pay: All Districts 0-30 mi. free zone >30-50 mi. base pay + $4.00/hr. >50 mi. base pay + $6.00/hr. CEMENT MASONS Wage Benefit District 1 $23.55 $8.16 District 2 $20.79 $8.31 District 3 $19.25 $8.16 District 4 $19.35 $8.16 Duties Include: Smooth and finish surfaces of poured concrete, such as floors, walks, sidewalks, or curbs. Align forms for sidewalks, curbs, or gutters. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $2.95/hr. >60 mi. base pay + $4.75/hr. 6 209 CONSTRUCTION EQUIPMENT OPERATORS GROUP 1 Wage Benefit District 1 $24.07 $11.40 District 2 $24.07 $11.40 District 3 $24.07 $11.40 District 4 $24.07 $11.40 This group includes but is not limited to: Air Compressor; Auto Fine Grader; Belt Finishing; Boring Machine (Small); Cement Silo; Crane, A-Frame Truck Crane; Crusher Conveyor; DW-10, 15, and 20 Tractor Roller; Farm Tractor; Forklift; Form Grader; Front-End Loader, under 1 cu. yd; Oiler, Heavy Duty Drills; Herman Nelson Heater; Mucking Machine; Oiler, All Except Cranes/Shovels; Pumpman. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. CONSTRUCTION EQUIPMENT OPERATORS GROUP 2 Wage Benefit District 1 $25.54 $11.40 District 2 $25.54 $11.40 District 3 $25.54 $11.40 District 4 $25.54 $11.40 This group includes but is not limited to: Air Doctor; Backhoe\Excavator\Shovel, up to and incl. 3 cu. yds; Bit Grinder; Bitunimous Paving Travel Plant; Boring Machine, Large; Broom, Self-Propelled; Concrete Travel Batcher; Concrete Float & Spreader; Concrete Bucket Dispatcher; Concrete Finish Machine; Concrete Conveyor; Distributor; Dozer, Rubber-Tired, Push, & Side Boom; Elevating Grader\Gradall; Field Equipment Serviceman; Front-End Loader, 1 cu. yd up to and incl. 5 cu. yds; Grade Setter; Heavy Duty Drills, All Types; Hoist\Tugger, All; Hydralift Forklifts & Similar; Industrial Locomotive; Motor Patrol (except finish); Mountain Skidder; Oiler, Cranes\Shovels; Pavement Breaker, EMSCO; Power Saw, Self-Propelled; Pugmill; Pumpcrete\Grout Machine; Punch Truck; Roller, other than Asphalt; Roller, Sheepsfoot (Self-Propelled); Roller, 25 tons and over; Ross Carrier; Rotomill, under 6 ft; Trenching Machine; Washing /Screening Plant. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. 7 210 CONSTRUCTION EQUIPMENT OPERATORS GROUP 3 Wage Benefit District 1 $25.95 $11.40 District 2 $25.95 $11.40 District 3 $25.95 $11.40 District 4 $25.95 $11.40 This group includes but is not limited to: Asphalt Paving Machine; Asphalt Screed; Backhoe\Excavator\Shovel, over 3 cu. yds; Cableway Highline; Concrete Batch Plant; Concrete Curing Machine; Concrete Pump; Cranes, Creter; Cranes, Electric Overhead; Cranes, 24 tons and under; Curb Machine\Slip Form Paver; Finish Dozer; Front-End Loader, over 5 cu. yds; Mechanic\Welder; Pioneer Dozer; Roller Asphalt (Breakdown & Finish); Rotomill, over 6 ft; Scraper, Single, Twin, or Pulling Belly-Dump; YO-YO Cat. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. CONSTRUCTION EQUIPMENT OPERATORS GROUP 4 Wage Benefit District 1 $26.95 $11.40 District 2 $26.95 $11.40 District 3 $26.95 $11.40 District 4 $26.95 $11.40 This group includes but is not limited to: Asphalt\Hot Plant Operator; Cranes, 25 tons up to and incl. 44 tons; Crusher Operator; Finish Motor Patrol; Finish Scraper. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. CONSTRUCTION EQUIPMENT OPERATORS GROUP 5 Wage Benefit District 1 $27.95 $11.40 District 2 $27.95 $11.40 District 3 $27.95 $11.40 District 4 $27.95 $11.40 This group includes but is not limited to: Cranes, 45 tons up to and incl. 74 tons. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. 8 211 CONSTRUCTION EQUIPMENT OPERATORS GROUP 6 Wage Benefit District 1 $28.95 $11.40 District 2 $28.95 $11.40 District 3 $28.95 $11.40 District 4 $28.95 $11.40 This group includes but is not limited to: Cranes, 75 tons up to and incl. 149 tons; Cranes, Whirley (All). Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. CONSTRUCTION EQUIPMENT OPERATORS GROUP 7 Wage Benefit District 1 $29.95 $11.40 District 2 $29.95 $11.40 District 3 $29.95 $11.40 District 4 $29.95 $11.40 This group includes but is not limited to: Cranes, 150 tons up to and incl. 250 tons; Cranes, over 250 tons—add $1.00 for every 100 tons over 250 tons; Crane, Tower (All); Crane Stiff-Leg or Derrick; Helicopter Hoist. Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $3.50/hr. >60 mi. base pay + $5.50/hr. CONSTRUCTION LABORERS GROUP 1/FLAG PERSON FOR TRAFFIC CONTROL Wage Benefit District 1 $19.08 $7.42 District 2 $15.41 $8.65 District 3 $18.00 $7.17 District 4 $18.00 $7.17 Zone Pay: District 1 0-30 mi. free zone >30-60 mi. base pay + $1.50/hr. >60 mi. base pay + $3.90/hr. District 2 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.75/hr. >50 mi. base pay + $1.25/hr. Districts 3 & 4 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.85/hr. >50 mi. base pay + $1.25/hr. 9 212 CONSTRUCTION LABORERS GROUP 2 Wage Benefit District 1 $19.07 $6.69 District 2 $18.48 $6.90 District 3 $16.44 $6.17 District 4 $18.04 $5.01 This group includes but is not limited to: General Labor; Asbestos Removal; Burning Bar; Bucket Man; Carpenter Tender; Caisson Worker; Cement Mason Tender; Cement Handler (dry); Chuck Tender; Choker Setter; Concrete Worker; Curb Machine-lay Down; Crusher and Batch Worker; Heater Tender; Fence Erector; Landscape Laborer; Landscaper; Lawn Sprinkler Installer; Pipe Wrapper; Pot Tender; Powderman Tender; Rail and Truck Loaders and Unloaders; Riprapper; Sign Erection; Guardrail and Jersey Rail; Spike Driver; Stake Jumper; Signalman; Tail Hoseman; Tool Checker and Houseman and Traffic Control Worker. Zone Pay: District 1 0-30 mi. free zone >30-60 mi. base pay + $1.50/hr. >60 mi. base pay + $3.90/hr. District 2 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.75/hr. >50 mi. base pay + $1.25/hr. Districts 3 & 4 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.85/hr. >50 mi. base pay + $1.25/hr. CONSTRUCTION LABORERS GROUP 3 Wage Benefit District 1 $19.48 $7.42 District 2 $18.33 $8.65 District 3 $18.20 $7.17 District 4 $18.20 $7.17 This group includes but is not limited to: Concrete Vibrator; Dumpman (Grademan); Equipment Handler; Geotextile and Liners; High-Pressure Nozzleman; Jackhammer (Pavement Breaker) Non-Riding Rollers; Pipelayer; Posthole Digger (Power); Power Driven Wheelbarrow; Rigger; Sandblaster; Sod Cutter-Power and Tamper. Zone Pay: District 1 0-30 mi. free zone >30-60 mi. base pay + $1.50/hr. >60 mi. base pay + $3.90/hr. District 2 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.75/hr. >50 mi. base pay + $1.25/hr. Districts 3 & 4 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.85/hr. >50 mi. base pay + $1.25/hr. 10 213 CONSTRUCTION LABORERS GROUP 4 Wage Benefit District 1 $18.15 $7.62 District 2 $19.05 $7.09 District 3 $19.85 $6.90 District 4 $18.00 $6.81 This group includes but is not limited to: Hod Carrier***; Water Well Laborer; Blaster; Wagon Driller; Asphalt Raker; Cutting Torch; Grade Setter; High-Scaler; Power Saws (Faller & Concrete) Powderman; Rock & Core Drill; Track or Truck Mounted Wagon Drill and Welder incl. Air Arc. ***Hod Carriers will receive the same amount of travel and/or subsistence pay as bricklayers when requested to travel. Zone Pay: District 1 0-30 mi. free zone >30-60 mi. base pay + $1.50/hr. >60 mi. base pay + $3.90/hr. District 2 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.75/hr. >50 mi. base pay + $1.25/hr. Districts 3 & 4 0-15 mi. free zone >15-30 mi. base pay + $0.65/hr. >30-50 mi. base pay + $0.85/hr. >50 mi. base pay + $1.25/hr. DRYWALL APPLICATORS Wage Benefit District 1 $21.00 $11.57 District 2 $21.00 $11.86 District 3 $21.00 $11.57 District 4 $21.00 $11.57 Duties Include: Drywall and ceiling tile installation. Zone Pay: All Districts 0-30 mi. free zone >30-50 mi. base pay + $4.00/hr. >50 mi. base pay + $6.00/hr. ELECTRICIANS: INCLUDING BUILDING AUTOMATION CONTROL Wage Benefit District 1 $27.04 $10.76 District 2 $28.22 $11.53 District 3 $27.72 $10.78 District 4 $30.73 $12.37 Duties Include: Electrical wiring; equipment and fixtures; street lights; electrical control systems. Installation and/or adjusting of building automation controls also during testing and balancing, commissioning and retro-commissioning. Travel: District 1 0-10 mi. free zone >10-45 mi. $0.585/mi. in excess of the free zone. >45 mi. $65.00/day Districts 2 & 3 0-08 mi. free zone >08-50 mi. federal mileage rate/mi. in effect when travel occurs, in excess of the free zone. >50 mi. $62.50/day (Big Sky $77.50/day) District 4 0-18 mi. free zone >18-60 mi. federal mileage rate/mi. in effect when travel occurs and employee uses own vehicle. > 60 mi. $75.00/day in lieu of any other travel allowance. 11 214 ELEVATOR CONSTRUCTORS Wage Benefit District 1 $47.00 $30.70 District 2 $47.00 $30.70 District 3 $47.00 $30.70 District 4 $47.00 $30.70 Travel: All Districts 0-15 mi. free zone >15-25 mi. $37.90/day >25-35 mi. $75.80/day >35 mi. $72.55/day or cost of receipts for hotel and meals, whichever is greater. FLOOR LAYERS Wage Benefit District 1 $15.55 No Rate Established District 2 $15.88 No Rate Established District 3 $15.55 No Rate Established District 4 $15.55 No Rate Established Per Diem: All Districts $20.00/day GLAZIERS Wage Benefit District 1 $18.11 $2.31 District 2 $16.56 $1.00 District 3 $21.19 $2.40 District 4 $21.19 $2.40 Per Diem: District 1 Meals + $25.00/day Districts 2-4 $35.00/day HEATING AND AIR CONDITIONING Wage Benefit Wage Benefit District 1 $27.33 $14.44 District 2 $27.33 $14.44 District 3 $27.33 $14.44 District 4 $27.33 $14.44 Duties Include: Testing and balancing, commissioning and retro- commissioning of all air-handling equipment and duct work. Travel: All Districts 0-51 mi. free zone >51mi. $0.25/mi. in employer vehicle $0.65/mi. in employee vehicle Per Diem: All Districts $60.00/day 12 215 INSULATION WORKERS-MECHANICAL (HEAT AND FROST) Wage Benefit District 1 $32.32 $17.57 District 2 $32.32 $17.57 District 3 $32.32 $17.57 District 4 $32.32 $17.57 Duties Include: Insulate pipes, ductwork or other mechanical systems. Travel: All Districts 0-30 mi. free zone >30-40 mi. $20.00/day >40-50 mi. $30.00/day >50-60 mi. $40.00/day >60 mi. $45.00/day + $0.56/mi. if transportation is not provided / $0.20/mi. if in company vehicle. >60 mi. $77.00/day on jobs requiring an overnight stay + $0.56/mi. if transportation is not provided / $0.20/mi. if in company vehicle. IRONWORKERS-STRUCTURAL STEEL AND REBAR PLACERS Wage Benefit District 1 $25.90 $20.73 District 2 $26.50 $19.03 District 3 $26.50 $19.03 District 4 $26.50 $19.03 Duties Include: Structural steel erection; assemble prefabricated metal buildings; cut, bend, tie, and place rebar; energy producing windmill type towers; metal bleacher seating; handrail fabrication and ornamental steel. Travel: District 1 0-45 mi. free zone >45-60 mi. $30.00/day >60-100 mi. $55.00/day >100 mi. $75.00/day Districts 3-4 0-45 mi. free zone >45-85 mi. $45.00/day >85 mi. $75.00/day MILLWRIGHTS Wage Benefit District 1 $29.00 $11.86 District 2 $29.00 $11.86 District 3 $29.00 $11.86 District 4 $29.00 $11.86 Zone Pay: All Districts 0-30 mi. free zone >30-50 mi. base pay + $4.00/hr. >50 mi. base pay + $6.00/hr. PAINTERS: INCLUDING PAPERHANGER Wage Benefit District 1 $22.06 $9.32 District 2 $16.83 $9.26 District 3 $18.36 $9.44 District 4 $16.85 $9.44 Travel: All Districts 0-120 mi. free zone >120 mi. $45.00/day 13 216 PILE BUCKS Wage Benefit District 1 $21.00 $11.57 District 2 $21.00 $11.86 District 3 $21.00 $11.57 District 4 $21.00 $11.57 Duties Include: Set up crane; set up hammer; weld tips on piles; set leads; insure piles are driven straight with the use of level or plum bob. Give direction to crane operator as to speed and direction of swing. Cut piles to grade. Zone Pay: All Districts 0-30 mi. free zone >30-50 mi. base pay + $4.00/hr. >50 mi. base pay + $6.00/hr. PLASTERERS Wage Benefit District 1 $23.55 $8.16 District 2 $20.79 $8.31 District 3 $19.25 $8.16 District 4 $19.35 $8.16 Zone Pay: All Districts 0-30 mi. free zone >30-60 mi. base pay + $2.95/hr. >60 mi. base pay + $4.75/hr. PLUMBERS, PIPEFITTERS, AND STEAMFITTERS Wage Benefit District 1 $27.58 $13.21 District 2 $28.32 $12.73 District 3 $27.37 $12.73 District 4 $29.94 $14.96 Duties Include: Assemble, install, alter, and repair pipe-lines or pipe systems that carry water, steam, air, other liquids or gases. Testing of piping systems, commissioning and retro-commissioning. Workers in this occupation may also install heating and cooling equipment and mechanical control systems. Travel: District 1 0-30 mi. free zone >30-50 mi. $20.00/day >50-75 mi. $35.00/day >75 mi. $70.00/day Special Provision: If transportation is not provided, an additional $0.35/mi. is added to the amounts above for travel at the beginning and end of job, not for every mile traveled. Districts 2 & 3 0-40 mi. free zone >40-80 mi. $30.00/day >80 mi. $60.00/day If employer provides transportation, travel pay will be ½ of the amounts listed above unless the employee stays overnight. If the employee chooses to stay overnight, the employee will receive the full amount of travel listed above even if the employer furnishes transportation. District 4 0-70 mi. free zone >70 mi. $0.55/mi. if transportation is not provided. Special Provision: If employee travels back and forth from home to job site, the employee will receive compensation for no more than two trips. Per Diem: District 4 $90.00/day 14 217 ROOFERS Wage Benefit District 1 $20.38 $9.97 District 2 $21.55 $8.96 District 3 $16.83 $4.46 District 4 $20.35 $2.83 Travel: District 1 0-50 mi. free zone >50 mi. $0.30/mi. Special Provision: Travel is paid only one way. Per Diem: District 1 $53.00/day Districts 2 & 3 Room + $25.00/day District 4 Reimbursed for meals and lodging. SHEET METAL WORKERS Wage Benefit District 1 $27.33 $14.44 District 2 $27.33 $14.44 District 3 $27.33 $14.44 District 4 $27.33 $14.44 Duties Include: Testing and balancing, commissioning and retro- commissioning of all air-handling equipment and duct work. Travel: All Districts 0-51 mi. free zone >51mi. $0.25/mi. in employer vehicle $0.65/mi. in employee vehicle Per Diem: All Districts $60.00/day SPRINKLER FITTERS Wage Benefit District 1 $30.74 $18.22 District 2 $19.58 $18.22 District 3 $20.31 $18.22 District 4 $29.85 $12.07 Travel: All Districts 0-60 mi. free zone >60-80 mi. $16.50/day >80-100 mi. $26.50/day >100 mi. $80.00/day TAPERS Wage Benefit District 1 $22.06 $ 9.32 District 2 $16.83 $ 9.26 District 3 $18.36 $ 9.44 District 4 $16.85 $ 9.44 Travel: All Districts 0-120 mi. free zone >120 mi. $45.00/day 15 218 TEAMSTERS GROUP 2 No Rate Established TELECOMMUNICATIONS EQUIPMENT INSTALLERS Wage Benefit District 1 $20.64 $5.50 District 2 $22.74 $7.53 District 3 $22.78 $7.80 District 4 $23.16 $6.13 Duties Include: Install voice; sound; vision and data systems. This occupation includes burglar alarms, fire alarms, fiber optic systems, and video systems for security or entertainment. Travel: All Districts The federal mileage rate/mi. in effect when travel occurs if using own vehicle. Per Diem: All Districts Employer pays for meals and lodging up to $65.00/day. When jobsite is located in Big Sky, West Yellowstone and Gardiner, lodging and meals will be provided by the employer for all actual and reasonable expenses incurred. TILE AND MARBLE SETTERS No Rate Established Duties Include: Apply hard tile, marble, and wood tile to floors, ceilings, and roof decks 16 219 APPENDIX A Investment Grade Audit Report July 9, 2014/Revision 1 October 16, 2014 Available for Download: http://weblink.bozeman.net/WebLink8/0/doc/74235/Electronic.aspx 220 Downtown Tax Increment Finance Board Meeting Minutes June 17, 2014 Attending: Bobby Bear, Bob Hietala, Vonda Laird, Bob Lashaway, Bill Stoddart, Scott Lee, Carson Taylor, Chris Naumann Absent: Shannon Haish Guests: Chuck Winn, Anna Rosenberry, Natalie Meyer Public Comments Dan Himsworth and Jolee Barry expressed interest in coordinating a new streetscape along the east and west sides of South Tracy between Main and Babcock Streets. They said this would be possible if it could be done using SID funding. They asked if their project could be included with the proposed Mendenhall streetscape SID. Disclosures None Minutes ACTION: Bob Hietala moved to approve the May minutes as presented. Bill Stoddart seconded the motion. All voted in favor. Financial Report Chris presented the Finance Report noting there was only one expenditure of $630 for seasonal landscaping work at Soroptomist Park. He noted that he was still waiting for year-end revenue figures from the City who was in turn waiting for the figures from the Montana Department of Revenue. Chris said he would hopefully be able to present the final FY2014 finance report at the July meeting. The board had no questions regarding the finance. Executive Director’s Report Technical Assistance Program Update The first chart below lists the 2 remaining grants from FY2013 that have not been completed. The second chart lists the 10 grants awarded in FY2014 totaling a $59,000 commitment of the $100,000 budget. Keep in mind that the committed grant amounts are only tentative since the actual reimbursement amount will be determined as a one to one match upon completion of the grant work. As a reminder, the Planning grants have a $7500 cap and the Façade grants are capped at $3000. Bold listings indicate completed. 221 Work Plan and Budget Presentation to City Commission I presented the TIF FY2015 work plan and budget to the City Commission on June 2nd. The Commission had a few questions including if there was a way to consider incentivizing affordable housing. They thanked me and the TIF board for all the great work that is being done in the district. Technically the work plan and budget will be approved with the entire City budget at the June 23 Commission meeting. Downtown Breakfast and Awards The breakfast event on June 12 went very well with approximately 60 people in attendance. Andy Holloran was the keynote speaker and addressed his philosophy about the need for infill development in the downtown core. He announced his plans to build a 5-story mixed use building at the northwest corner of Tracy and Mendenhall (the current location of the American Federal Bank). The following Downtown Awards were presented: • Downtown Community Award to First Interstate Bank • Downtown Cornerstone Award to Country Bookshelf • Life is Downtown Award to Ileana Indreland Downtown Parking Update The graphs below show the trends in both garage use and revenue for May. Entries and revenue were up 8% and up 21% over May 2013. Therefore year-to-date entries and revenue for 2014 are up 18% and 17% respectively over 2013. FY2013 Downtown Technical Assistance Program Project Name Project Address Applicant Professional Grant Type SWN Creekside 317 East Mendenhall Susan Neubauer Weirich & Greenspace Facade Bozeman Spirits 121 West Main Jim Harris Locati Planning FY2014 Downtown Technical Assistance Program Project Name Project Address Applicant Professional Grant Type 34 North Bozeman 34 North Bozeman Big Sky Beverage Intrinsik Planning Masonic Temple 14 South Tracy Masonic Temple CTA Planning Masonic Temple 14 South Tracy Masonic Temple CTA Facade Lindley Park Hotel 702 East Main Renslow Group Minarik Architecture Planning Grand & Main 136 West Main Bzn Redevelopment Thinktank Planning Willson Residences 404 West Main Bridger Builders Comma Q Planning Willson Residences 404 West Main Bridger Builders Comma Q Facade The Dutton 131 West Main Dutton Developers Springer Group Planning The Dutton 131 West Main Dutton Developers Springer Group Facade Montana Motor 23 West Babcock MMSB, LLC AE Dynamics Planning 222 Discussion and Decision Items Bridger Park Garage LED Retrofit Proposal Anna Rosenberry (COB Finance Director), Chuck Winn (COB Assistant City Manager) and Natalie Meyer (COB Sustainability Coordinator) presented the board with a proposal to install LED light fixtures in the basement and first floor levels of the Bridger Park Garage. Natalie explained that the City retained McKinstry to audit numerous municipal facilities for possible energy efficiency projects. The garage was identified as a light and electricity intensive facility and retrofitting the garage with LED lights would net a high return on investment in terms of energy savings. See attachment. Anna requested that the TIF board consider funding the installation of the recommended LED fixtures on the lower two floors of the garage totaling approximately $100,500. The board asked various questions and discussed the specifics of the McKinstry recommendation. Bobby asked what the plan would be to install LED fixtures on the upper floors. Anna answered that neither the BPC nor the City CIP has the financial capacity to commit the necessary funds to upgrade the upper floors. Bob Lashaway suggested the board consider converting the entire facility all at once as soon as possible. Bob Hietala asked how much a complete conversion would cost. Natalie responded that the original estimate from McKinstry was approximately $198,000. Chris mentioned that the total would be reduced if the roof was not converted considering the BPC was looking into installing a free standing roof that would require new light fixtures. Bob Lashaway added that he would rather not pay for the “measurement and verification” services. The board agreed that if the roof and verification services were excluded that they would fund converting the garage to the recommended LED fixtures. The board indicated that in return for funding the project they would require the BPC to enter into a Memorandum of Understanding stipulating at a minimum that the energy savings be 223 invested in the garage long-term maintenance fund. The board asked Chris to draft the MOU for the board to review. ACTION: Bob Hietala moved that the TIF Board provide financial support not to exceed $200,000 for the Bridger Park Garage LED Retrofit Project subject to the revision of the McKinstry scope of work to include the entire garage (excluding the roof fixtures) with the elimination of the “Measurement & Verification” services. Funding will be contingent on the Bozeman Parking Commission accepting terms proposed by the TIF Board for the reallocation of energy savings and garage lighting capital funds. Bob Lashaway seconded the motion. All voted in favor. Board and Officer Appointments Chris reminded the board that they needed to appoint the officers—Chair and Vice Chair—for fiscal year 2015. Bobby and Bill offered to continue to serve as Chair and Vice Chair respectively. Chris asked if any other members would like to be considered for either officer position. None responded. ACTION: Bob Lashaway moved to nominate Bobby Bear to serve as Chair and Bill Stoddart to serve as Vice Chair for coming year. Bob Hietala seconded the motion. All voted in favor. At 1:15pm Bobby adjourned the meeting. Bridger Parking Garage LED Retrofit Proposal I. Background a. City of Bozeman is completing an energy audit of 30 buildings and facilities. Converting City facilities to LED lighting is high priority of the City Commission. b. McKinstry is an Energy Services Company that provides turnkey service, along with guarantees on cost and utility savings. c. A LED lighting project at the Bridger Parking Garage was highlighted as one of the top energy- saving opportunities. II. The Project a. Replace existing metal halide fixtures with individually controlled Philips Gardco 70 watt LED fixtures at basement and first floor (104 luminaires). b. Integral sensor will dim to 10% illumination when garage is unoccupied. i. Sensor will detect any motion within a 22’ radius and turn on to full power. ii. Remains on for 5 minutes. c. 5-year warranty on the lamp and sensor. 224 d. Rated for 70% illumination for 100,000 hrs at average of 77°F. i. Based on occupancy of other McKinstry parking garage projects, this will equate to 15-20 years. e. 3rd party quality assurances: i. f. LEDs would take 2 to 3 weeks to build with the integral sensor, then 1 week to ship. It would then take 2 weeks to install the LEDs. III. Cost and Payback Guaranteed Maximum Price $100,514 Guaranteed Annual Utility Savings* $6,949 Annual Operational Savings** $2,868 Simple Payback 12.4 years *Savings guaranteed for three years during measurement and verification period **Payback includes 5 years of operational savings a. Breakdown Materials $59,400 Labor $9,500 Disposal $1,800 Permit $700 State of Montana Gross Receipts $1,005 Construction Admin, Design, Performance & Payment Bond, Safety, Measurement & Verification, Overhead & Profit $28,109 Total $100,514 225