HomeMy WebLinkAbout08851ORDINANCE NO. 8851
AN ORDINANCE APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF PUEBLO
AND THE COLORADO ENERGY OFFICE FOR
CONSULTING SERVICES RELATED TO THE TECHNICAL
ENERGY AUDIT FOR THE JAMES R. DIIORIO WATER
RECLAMATION FACILITY, AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
WHEREAS, the City operates the James R. DiIorio Water Reclamation Facility
for the purpose of treating municipal wastewater; and
WHEREAS, electric energy cost is the largest component of wastewater
treatment costs; and
WHEREAS, the City desires to minimize the use of electricity in wastewater
treatment in order to control wastewater rates; NOW THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
A Memorandum of Understanding between the City of Pueblo, a Municipal
Corporation, and the Colorado Energy Office for consulting and oversight for an energy
performance contract between the City of Pueblo and McKinstry Essention, LLC, a copy
of which is attached hereto, having been approved as to form by the City Attorney, is
hereby approved. The President of the City Council is authorized to execute and deliver
this Memorandum of Understanding in the name of the City and the City Clerk is
directed to affix the seal of the City and attest same.
SECTION 2.
Work performed under this Memorandum of Understanding shall include the
following items:
1. Providing technical guidance to the City regarding the Technical Energy Audit
of the James R. DiIorio Water Reclamation Facility;
2. Assisting the City in developing and initiating an energy performance contract;
3. Monitoring project implementation for audits and for the energy performance
contract;
4. Facilitating energy performance contract processes to ensure commitments
are met;
5. Reviewing the City’s audits, proposals, calculations, contracts and
measurement verification reports; and
6. If applicable, identify possible solutions to mediate any conflicts between the
City and the Energy Service Company.
SECTION 3.
The President of the City Council is hereby authorized to execute said
Memorandum of Understanding on behalf of Pueblo, a Municipal Corporation, and the
City Clerk shall affix the Seal of the City thereto and attest the same.
SECTION 4.
The officers and staff of the City are directed and authorized to perform any and
all acts consistent with the intent of this Ordinance and the attached Memorandum of
Understanding to effectuate the transactions described therein.
SECTION 5.
This Ordinance shall become effective immediately upon passage and approval.
INTRODUCED: _ February 23, 2015
BY: Chris Nicoll
PASSED AND APPROVED: March 9, 2015
City Clerk’s Office Item # R-5
Background Paper for Proposed
O
RDINANCE
COUNCIL MEETING DATE: February 23, 2015
TO: President Stephen G. Nawrocki and Members of City Council
CC: Sam Azad, City Manager
VIA: Gina Dutcher, City Clerk
FROM: Gene Michael, Wastewater Director
SUBJECT:
AN ORDINANCE APPROVING A MEMORANDUM OF
UNDERSTANDING BETWEEN THE CITY OF PUEBLO AND THE
COLORADO ENERGY OFFICE FOR CONSULTING SERVICES
RELATED TO THE TECHNICAL ENERGY AUDIT FOR THE JAMES R.
DIIORIO WATER RECLAMATION FACILITY, AND AUTHORIZING THE
PRESIDENT OF THE CITY COUNCIL TO EXECUTE SAME
SUMMARY:
Attached is an Ordinance accepting a Memorandum of Understanding with the
Colorado Energy Office for consulting services to the City regarding the final technical
energy audit at the James R. DiIorio Water Reclamation Facility being performed by
McKinstry Essention, LLC. The consulting services are provided at no cost to the City,
and will provide technical assistance, advice and oversight regarding the energy
performance contracting process and monitoring project implementation of the energy
performance project to ensure commitments are met.
PREVIOUS COUNCIL ACTION:
In July 2014, City Council approved an agreement, via Ordinance No. 8762, with
McKinstry Essention, LLC to perform preliminary and final technical energy audits. At
this time funds were budgeted and appropriated but expired at year end. On February
9, 2015, the City Council approved an addendum to that agreement, via Ordinance No.
8837, with McKinstry Essention, LLC to perform a final technical energy audit.
BACKGROUND:
The City of Pueblo operates the James R. DiIorio Water Reclamation Facility to provide
treatment of municipal wastewater. Electric energy cost is the largest single component
of treatment costs. A technical energy audit is underway with the goal of minimizing
electrical energy consumption at the Water Reclamation Facility. McKinstry Essention,
LLC is an energy service company that has been qualified through competitive bidding
by the State of Colorado to perform industrial energy audits in Colorado.
The Colorado Energy Office has established standards for energy performance
contracting, and has performed prequalification of energy service companies via a
competitive bidding process. The Colorado Energy Office further provides assistance to
municipalities in the form of consulting on energy performance contracts, review of the
form and content of such contracts including methods of assessing program success,
and reviews of audits, proposals, calculations, and verification reports. These
consulting services are provided to municipalities at no cost to the municipality.
FINANCIAL IMPLICATIONS:
None.
BOARD/COMMISSION RECOMMENDATION:
None.
STAKEHOLDER PROCESS:
None.
ALTERNATIVES:
The alternative to entering into this Memorandum of Understanding with the Colorado
Energy Office is that Pueblo would proceed with completion of the energy audit and with
any follow-on facility upgrades without the benefit of assistance from an organization
familiar with energy performance contracting and performance assessment.
Opportunities for cost savings or errors in performance measurement could be missed.
RECOMMENDATION:
The Wastewater Department recommends approval of this Ordinance.
PROPOSED MOTION:
Attachments:
Memorandum of Understanding between the Colorado Energy Office and the City of
Pueblo
MEMORANDUM OF UNDERSTANDING
between COLORADO ENERGY OFFICE
and CITY OF PUEBLO
THIS MEMORANDUM OF UNDERSTANDING ("MOU") is entered into by and between the
STATE OF COLORADO (the "State"), acting by and through the Colorado Energy Office (the
"CEO"), and the City of Pueblo (the "Facility Owner"). "Party" means the State, CEO or
Facility Owner and "Parties" means both the State/CEO and the Facility Owner.
RECITALS
WHEREAS, in compliance with the State Procurement Code as set forth in section
24-101-101, et seq., C.R.S. and any applicable public bidding requirements, the CEO
issued a Request for Proposals ("RFP") to energy service companies ("ESCOs") to provide
as needed energy performance contract services for its Energy Performance Contracting
Program; and
WHEREAS, as a result of the RFP process, CEO maintains a list of pre-qualified
ESCOs that are eligible for final selection by State agencies and local governments and/or
municipalities to provide energy performance contracting services; and
WHEREAS, the purpose of this MOU is to provide the Facility Owner with access to the
services and support of the CEO's Energy Performance Contracting ("EPC") Program; and
WHEREAS, in furtherance of the purpose of this MOU, the CEO is available to assist the
Facility Owner with the development and implementation of EPC projects, as well as to
encourage the Facility Owner to adhere to the guidelines of the EPC Program.
NOW, THEREFORE, for and in consideration of the mutual covenants and the
representations and covenants contained herein, the parties hereto agree as follows:
1. Effective Date of MOU. This MOU shall become effective upon the later date on which
the Director or authorized designee of CEO, or the representative for the Facility Owner
has signed it.
2. Term of MOU. The Parties' respective performances under this MOU shall commence on
the Effective Date and remain in effect through the term of services contracted from a
pre-qualified ESCO.
3. Responsibilities of the CEO and the EPC Program to Facility Owner. The responsibilities
of the CEO and the EPC Program include, but are not limited to:
a. Upon execution of this MOU, CEO will assign an EPC project consultant to provide
advice and technical assistance throughout the lifecycle of Facility Owner's project.
b. CEO will provide the Facility Owner with information on the CEO website regarding the
pre-approved, pre-qualified list of ESCOs, which includes links to the ESCOs' website
for further information;
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c. CEO will assist Facility Owner to procure the services of an ESCO from the pre-
qualified list of approved ESCOs;
d. CEO will assist the Facility Owner with technical guidance in order to develop and
execute a Technical Energy Audit and Project Proposal Contract with a pre-qualified
ESCO and also support the Facility Owner with any amendments thereof;
e. CEO will provide technical guidance to the Facility Owner and attend on-site meetings
between the Facility Owner and ESCO, as needed and subject to availability;
f. CEO will assist the Facility Owner to develop and initiate an energy performance
contract project;
g. CEO will monitor project implementation for audits and for energy performance
contract projects;
h. CEO will facilitate the energy performance contract process to ensure commitments
are met by both the ESCO and the Facility Owner;
i. CEO will review Facility Owner's audits, proposals, calculations, contracts and
measurement and verification reports;
j. As required for school districts and requested by other public agencies, the CEO will
complete a construction walk-through of project facilities prior to the "Notice of
Substantial Completion" documents being finalized;
k. If applicable, CEO will identify possible solutions to mediate any conflicts between the
Facility Owner and the ESCO.
5. Responsibilities of the Facility Owner. The responsibilities of the Facility Owner
include:
a. By executing this MOU, Facility Owner agrees to program participation in CEO's EPC
Program and engage the CEO for assistance in all stages of the EPC Program, including
project development;
b. Using a secondary selection process, Facility Owner agrees to select an ESCO from
CEO's current pre-qualified list of ESCOs and which meets the requirements of Facility
Owner's procurement rules, regulations and statutes (if applicable);
c. Facility Owner will provide information as needed for the feasibility study/technical
energy audit and any other project development activities;
d. Facility Owner will review/approve the ESCO's proposals, designs and reports in a
timely manner;
e. Facility Owner agrees to execute CEO approved contracts with the ESCO;
f. Facility Owner agrees to arrange for project financing, and with the assistance and
advice of legal counsel, execute appropriate financing documents and EPC contract;
g. Facility Owner agrees to provide project management;
h. Facility Owner will endeavor to work with the pre-qualified ESCO to develop and refine
project parameters and any other project development activities;
i. Facility Owner will assign its staff, employees, representatives to the facility project
team including operations, maintenance, financial and upper management personnel;
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j. Depending on the subject matter to be discussed, Facility Owner will ensure
appropriate personnel attend project development meetings;
k. Facility Owner will provide access to and escort ESCO, its subcontractors and CEO to
buildings during mutually agreed-upon hours;
I. If Facility Owner is a school district, Facility Owner agrees to allow CEO to complete a
construction walk-through of project facilities prior to the "Notice of Substantial
Completion" documents being finalized;
1. During project reviews and any other reviews, Facility Owner will endeavor to address
CEO's recommendations;
m. As requested by CEO and as needed, Facility Owner agrees to provide CEO with
information regarding measurement and verification activities.
6. THIS MOU IS NOT INTENDED TO CREATE, NOR WILL THIS MOU BE CONSTRUED OR
INTERPRETED AS CREATING A LEGALLY BINDING AND ENFORCEABLE CONTRACT BETWEEN
THE PARTIES. IN THE EVENT EITHER PARTY FAILS TO FULLY COMPLY WITH THE
PROVISIONS OF THIS MOU, THERE WILL BE NO LEGAL OR EQUITABLE REMEDIES AVAILABLE
TO EITHER PARTY. THE SOLE REMEDY AVAILABLE TO THE PARTIES FORFAILURE TO FULLY
COMPLY WITH THE PROVISIONS OF THIS MOU IS TO TERMINATE THIS MOU. THE FACILITY
OWNER ACKNOWLEGES AND AGREES THAT CEO'S SERVICES MAY INCLUDE ADVICE AND
RECOMMENDATIONS, BUT ALL DECISIONS IN CONNECTION WITH THE FACILITY OWNER'S
EPC PROJECT SHALL BE THE SOLE RESPONSIBILITY OF THE FACILITY OWNER, ITS AGENTS
AND CONTRACTORS.
7. Signatures. IN WITNESS WHEREOF, the Parties have executed this MOU as of the
Effective Date.
STATE OF COLORADO ACTING BY AND FACILITY OWNER:
THROUGH THE COLORADO ENERGY OFFICE
3-
o9-1S
jo, Jeffrey Ackermann Date Name: Stephen G. Nawrocki Date
Director Title: President of the City
Council
ATTEST:
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Jeanna M. Paluzzi Gina Dutcher Date
Program Manager Date City Clerk
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cE,Pf COLORADO
FACILITY OWNER INFORMATION
for CEO use only
Owner's representative'
Name Gene Michael
Title Wastewater Director
Mailing address 1300 South Queens Avenue
Email address camichaei a�ouebio us
Direct office phone (719)553-2896
Cell phone (719) 240-4738
Project information
Types of facilities to be I .Municipal wastewater treatment facility
assessed for energy savings: 2
3
4
6.
7
8
Have you selected an ESCO? —1 Yes. Name: McKinstry Essention, LLC ri No
Please list any immediate needs you have related to your performance contract.
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