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HomeMy WebLinkAboutIX-01 Authorize Signature - Agreement Amendment No. 2 with Apex Facility Solutions, LLC City Council Memorandum Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: ▪Amendment #2 ▪Apex Facility Solutions, LLC agreement (fully executed) To: Mayor Fasbender & City Councilmembers From: Chris Jenkins, Parks & Recreation Director Date: November 20, 2023 Item: Agreement Amendment #2 with Apex Facility Solutions, LLC Council Action Requested: Approve Amendment #2 for the Guaranteed Energy Savings Agreement with Apex Facility Solutions, LLC for the Refrigeration Plant Replacement, West Rink Roof Replacement, and Solar System Installation projects at the Hastings Civic Arena. Background Information: These projects have been identified as needed facility upgrades, and Council has provided their commitment to completing both of these projects in 2024. Minnesota Statute 471.345 subd. 13 allows the City to enter into a Guaranteed Energy Savings Agreement. Using this statute does require the City to publish our intent to enter into this agreement, which was completed in the June 22, 2023 edition of the Hastings Journal. This agreement must also guarantee energy savings over the 20-year life of the agreement, which it does. Amendment #2 captures the remaining aspects of the overall refrigeration and roofing projects at the Hastings Civic Arena. This includes the refrigeration system itself, electrical service, and solar array for the west rink roof. Financial Impact: The total cost of this project is $5,217,704.00. A combination of city and state funding is the target for completing this project. IX-01 AmendmentApex Facility Solutions, LLC Client: City of Hastings Amendment No: 2 Project: Hastings Civic Arena Upgrades 11/3/2023 Apex Project No: 30323036 The Contract is Amended as Follows: This Amendment 2 modifiys the existing Agreement to add more detailed scope of work and costs for the refrigeration system replacement and related room modifications, and solar PV system to the agreement. The following changes to the agreement are included in this Amenedment. 1. Replace the Agreement Exhibit A Scope of Work with the attached new Exhibit A. 2. Replace the Agreement Exhibit B Schedule of Payments with the attached new Exhibit B. 3. Section 10.0 Compensation and Payment: replace the Construction Work list with the following updated list. Construction Work Refrigeration System Motor Control Center (long lead item)$258,929.00 Refrigeration System $2,861,536.00 Electrical System Upgrade $342,522.00 Roof Replacment West Rink $1,161,746.00 Solar on West Rink $375,580.00 Original Contract Value:$217,391.00Net Prior Amendments:$1,420,675.00 Contract Value Prior to this Amendment:$1,638,066.00This Amendment Add (Deduct):$3,579,638.00New Contract Value after Change Order:$5,217,704.00 NOT VALID UNTIL SIGNED BY THE CONTRACTOR AND CLIENT Apex Facility Solutions, LLC City of Hastings Contractor Client By (Signature)By (Signature) By (Printed)By (Printed) Date Date Attachments: Exhibit A Summary of Work Exhibit B Payments Schedule Exhibit D Operations and Savings Calcs. 3495 Northdale Blvd. NW, Suite 230, Coon Rapids, MN 55448 www.apex-co.us Page 1 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 1 of 19 Exhibit A – Summary of Work Definitions: CLIENT shall also be referred to as OWNER and/or HOST. CONTRACTOR shall also be referred to as APEX and/or DEVELOPER. The Green highlighted items are part of the previous agreement and the white is the new scope as part of this amendment. Scope General: Scope of work shall be development and construction of the following major scopes of work: •Refrigeration Design •Long Lead Equipment Procurement •Replacement of Existing Refrigeration System •Replacement of main electrical switchgear •Replacement of West Rink Roof •Install Solar on the West Rink Roof Apex Facility Solutions Location Cost Guaranteed Utility Savings Annual O&M Savings One Time O&M Savings Potential Incentives Net Cost Simple Payback Ice Arena $258,929 $0 $0 $200,000 $0 $258,929 N/A Ice Arena $217,391 $16,241 $7,000 $0 $0 $217,391 9.4 Ice Arena $2,861,536 $0 $0 $2,861,536 $500 $2,861,036 N/A Ice Arena $342,522 $0 $0 $342,522 $0 $342,522 N/A West Ice Sheet Flat Roof Section $1,161,746 $0 $0 $800,000 $0 $1,161,746 N/A West Ice Sheet Flat Roof Section $375,580 $0 $18,679 $100,000 $112,674 $262,906 8.7 $5,217,704 $16,241 $25,679 $4,304,058 $113,174 $5,104,530 19.10 Work Description MCC - Purchasing of new Motor Control Centers for the ice plant Electrical Service Replacement - Current Interior Location - Replace existing main electrical service with new Totals Refrigeration Design - Design of the ice rink refrigeration system to size the MCC Roofing - Replace existing Roof with new built up roof, new drains, and parapits Roofing Scope Ice Arena System Refrigeration System Replacement - Installation of new Ammonia refigeration system with room modificaitons Solar Scope Purchase Outright - City Owned - Roof Limited IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 2 of 19 Refrigeration Design: Refrigeration design shall include design required for the replacement of the existing refrigeration system located at Hastings Civic Arena with a new two rink industrial grade ammonia refrigeration system and identification and specification of any long lead equipment required to support a Summer 2024 installation schedule. Work Included: •Ice System engineering includes one industrial grade refrigeration system and waste heat recovery systems (subfloor heating, snow melt pit system). •Mechanical engineering including ventilation system for new ice equipment room, eyewash shower systems, connection to fire alarm system, and plumbing modifications as necessary. •Electrical engineering including new electrical feeder to new ice equipment motor control center if needed and to the new mechanical equipment, convenience receptacles, and lighting modifications in the new ice equipment room. •Architectural and structural design for enclosing the existing mechanical room for code compliant room, condenser supports, pipe penetrations, etc. •Demolition drawings for systems mentioned above. MMC: As part of the development of the ice arena refrigeration plant, two MCCs were necessary to provide the plant with power. One of the units would be located in the Ammonia refrigeration room to power the compressors and accessories in that room. The second would be in the pump room that would power the main rink pumps, and other aspects of the refrigeration plant. These electrical parts are critical to the function of the plant. IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 3 of 19 Replacement of Refrigeration System: Replacement of the existing refrigeration system shall include replacement of the existing refrigeration system with a new two rink ammonia refrigeration system. The system will have new compressors, pumps, tower and chiller equipment to provide rink cooling for the two rinks. The room will be modified to be an enclosed structure and new ventilation system will be installed to meet code. IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 4 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 5 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 6 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 7 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 8 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 9 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 10 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 11 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 12 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 13 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 14 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 15 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 16 of 19 Electrical Switch Gear Replacement : Work under this scope item shall include replacement of the existing main electrical switch gear for the building at the same location as existing. Existing gear is outdated and needs to be replaced for the extended life of the system. IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 17 of 19 Replacement of West Rink Roof: Work under this scope item shall include replacement of the existing west rink flat roof with a new modified built-up roof, and new metal perimeter roofing with flashing. A new ladder would be installed from the lower roof for safe access to the higher roof. In addition to the new flat roof, perimeter edging will be installed to eliminate the flat roof water from going over the edge. With new sloped insulation and roof drainage, new interior roof drains will be installed to take the water away. The water will be discharged into an existing rain water system in the parking lot. Below is the scope of work for the roofing project: IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 18 of 19 IX-01 EXHIBIT A SUMMARY OF WORK EXHIBIT A Page 19 of 19 Solar on West Rink Roof: Work under this scope item shall include installation of new Solar PV system that will be tied into the building electrical system. The photo below represents the approximate location of the new system. Work shall be code compliant, and all power will be fed back into the building for the building usage. IX-01 EXHIBIT B PAYMENTS SCHEDULE EXHIBIT B Page 1 of 1 Exhibit B – Estimated Payments Schedules Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Oct-24 Nov-24 Design $217,391 $108,696 $108,696 Long Lead Equipment (MCC) $258,929 $129,465 $129,465 Roofing $1,161,746 $232,349 $232,349 $348,524 $232,349 $116,175 Refrigeration $2,861,536 $286,154 $858,461 $286,154 $286,154 $286,154 $286,154 $286,154 $143,077 $143,077 Electric System Upgrade $342,522 $171,261 $171,261 Solar PV $375,580 $150,232 $150,232 $75,116 Totals $5,217,704 $238,160 $108,696 $0 $0 $0 $0 $286,154 $232,349 $0 $1,090,810 $634,677 $647,967 $402,328 $286,154 $436,386 $464,570 $389,454 IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 1 of 8 Performance Guarantee and Savings Calculations Summary Table of Energy Savings and O&M Savings: Utility Rates: Table below summarizes the baseline utility rates currently being paid by the client to their utility providers. These rates were used in establishing the Baseline in Exhibit D. Throughout the Term of the Guarantee Period the utility rates in Table D1, escalated at 3.2% per year shall be used in determining savings. The Client acknowledges and accepts the utility rates set forth in Table below. Electric Natural Gas Facility $/kWh $/kW $/Therm Ice Arena $ 0.090 $10.49 N/A ANNUAL UTILITY COST SAVINGS GUARANTEE The Client shall be guaranteed annual utility costs savings by the Contractor, a total of $16,241.00 per year. Where required by the Measurement and Verification Plan, the Contractor shall measure and document savings in each year in accordance with the plan. Where required by the Measurement and Verification Plan, the Parties agree to use the pre-agreed utility savings each guarantee year for the annual guarantee reconciliation subject to adjustment provision set in Exhibit D. ANNUAL OPERATION & MAINTENANCE COST SAVINGS GUARANTEE The Client shall be guaranteed annual costs savings by the Contractor, a total of $25,679.00 per year. The Parties agree to use the Operation & Maintenance savings each year for the annual guarantee reconciliation subject to adjustments provisions set in Exhibit D. ONE TIME OPERATION & MAINTENANCE COST SAVINGS GUARANTEE The Client shall be guaranteed costs savings by the Contractor, a total of $4,304,058.00 total. The Parties agree to use the Operation & Maintenance savings for the annual guarantee reconciliation subject to adjustments provisions set in Exhibit D. ANNUAL M&V MEETING / RECONCILIATION On an annual basis, on or near the date of Commencement of Energy Savings, there shall be a meeting held to review the savings (energy and operations and maintenance). If the report shows that there is a shortfall in the annual savings (actual vs guaranteed), CONTRACTOR shall write a check to cover the difference to the client. CONTRACTOR reserves the right to, at their own expense, make additional modifications to the client’s facility Location FIM Details Therms kWh kW/yr $ - Therm $ - kWh $ - kW Total Savings Safety Factor Guaranteed Savings Ice Rink Refrigeration Savings 0 200,510.91 0 $ - $18,045.98 $ - $18,045.98 90% 16,241$ IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 2 of 8 (with client’s approval) to obtain additional savings in future years. If the report shows an excess of savings (actual vs guaranteed), the excess savings shall be the property of the client and CONTRACTOR shall have no right to any portion of it. Each guarantee year shall stand on its own merit and shall not take into account excess savings in any prior year. BASELINE ADJUSTMENTS The following adjustments to the established baseline shall be allowed for generation of the energy savings determination. The hours a facility is occupied and/or equipment and lighting is utilized is a variable which will be adjusted for if the number of hours rises or drops more than 10% from the quantity identified in Exhibit D. Where applicable, energy management systems will be used to monitor and verify hours of equipment operation. Buildings without energy management systems will have equipment operation logged by Client building staff. The Contractor may use energy modeling to quantify changes from the baseline resulting from changes to: • Square footage changes • Weather changes • Major remodeling or renovation projects • Quantity or modification of facility equipment • Change in building or central plant usage • Change in process • Change in volume of product being produced or processed The Client agrees to notify the Contractor of any changes or additions of equipment or environments that may affect the energy consumption associated with the buildings under this Agreement at the Annual Meeting. UTILITY COST SAVINGS ADJUSTMENT The Savings guarantee is for energy saved (fuel, kWh, gallon, etc.). The Contractor does not take responsibility for price fluctuations from the utility, which are outside of our control. In the Measurement and Verification reports we will provide cost savings data with the energy savings guarantee calculated as outlined below. For the purpose of calculating savings under this guarantee, utility rates used will be the base rates paid by the Client subject to the following: The base Rate will be the rates included in Exhibit D of the Agreement. In the event that a facility has multiple meters, a weighted average rate of the meters will be used. The Weighted average will be weighted by the kwh used per year for each meter. Rate Schedule Change: The rate used shall be limited to a floor rate and a ceiling rate. When a utility makes a change to the utility rate, the new rate shall be used for computing savings however the adjustment shall be constrained by the floor and ceiling. The floor rate shall never drop below the base rate. The ceiling rate shall never exceed 1.5 times the base rate above. IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 3 of 8 OPERATION & MAINTENANCE COST SAVINGS ADJUSTMENT Operation and Maintenance Cost Savings Adjustment. Unless otherwise stated, the Parties agree that the Operation and Maintenance Cost Savings identified in this Exhibit will be in effect for the term of the contract. IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 4 of 8 TECHNICAL SERVICE AGREEMENT GENERAL The Technical Service Agreement (TSA) will be provided to the Client for the first year and is included in the total price of this Agreement. Services set forth under this agreement are outlined below. SCOPE OF WORK For each year the Technical Service Agreement is in force, the following work shall be completed under the TSA: 1. Site visits will be conducted two times each year. Visits will inspect and verify proper operation of FIM’s. Visits will include operations review with staff and consulting for new insight and training on the new technologies and/or procedures. 2. Annually a report will be provided to the Client. The report shall include reporting of measured and verified FIM’s and will verify savings conformance with guarantees provided in the Agreement. TERMS AND CONDITIONS The TSA shall be in force for 12 months starting from the substantial completion of the last FIM to be completed, or for 12 months from the Prior TSA agreement if the TSA agreement is renewed. This TSA agreement will automatically renew for the next one-year period unless either party provides written notice of non-renewal to the other party at least sixty (60) days prior to the end of the current term in force. The total first year price for the Services is included in the Agreement price. The TSA Agreement price for successive years starting in year two is indicated in the following table: Year Escalation Fee 1 NA Included in Agreement 2 3.50% $8,000 3 3.50% $8,280 4 3.50% $8,570 5 3.50% $8,870 Any additional years will increase by 3.50% annually. Payment shall be on an annual basis until the end of the Guarantee Term or until the Client terminates the on- going services. Annual payment shall be invoiced at the end of the period. Termination of the TSA can be done by the Client in writing any time prior to the start of work on the currant years M&V report. Termination of the TSA automatically terminates the Guaranteed Energy Savings Agreement, and renders the Contractor’s savings guarantee null and void. Energy Saving Calculations: Guaranteed energy savings shown in Exhibit A scope summary are based on calculations and assumptions presented in this exhibit. Utility Cost Savings and/or unit savings provided in this exhibit may differ from those provided in Exhibit A and Exhibit E. The Annual Guaranteed Savings Amount and/or unit savings provided in Exhibit A and Exhibit E include a safety/risk factor. IX-01 EXHIBIT DFACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 5 of 8 Refrigeration Savings Re f r i g e r a t i o n H e a d P r e s s u r e C o n t r o l Is s u e : - T h e r e f r i g e r a t i o n s y s t e m c u r r e n t l y o p e r a t e s c o n s t a n tly a t t h e d e s i g n h e a d p r e s s u r e s e t p o i n t - T h e r e f r i g e r a t i o n s y s t e m h e a d p r e s s u r e c a n b e r e d u ce d d u r i n g m u c h o f t h e y e a r t o r e d u c e t h e e n e r g y u s e b y t h e c o m p r e s s o r s . Pr o p o s e d M o d i f i c a t i o n : - R e p r o g r a m t h e c o n t r o l s t o r e d u c e t h e h e a d p r e s s u r e wh e n p o s s i b l e . Ob s e r v a t i o n s a n d C a l c u l a t i o n A s s u m p t i o n s : - F r o m e x p e r i e n c e w i t h o t h e r s y s t e m s , t h e h e a d p r e s su r e c a n b e r e d u c e d d o w n t o a b o u t 1 0 0 p s i Vi l t e r C o m p r e s s o r D a t a f o r R - 2 2 - T h e f a n s p e e d f o r t h e l o w e r c o n d e n s i n g t e m p w i l l b eg i n t o r e d u c e s p e e d 5 ° b e l o w n e w c o n d e n s i n g t e m p Ex i s t i n g C o n d i t i o n s : Av e r a g e R e f r i g e r a t i o n L o a d 1 0 0 T o n s t e m p p s i t o n s b h p k W k W / T t o n s b h p k W k W / T Ex i s t i n g C o n d e n s i n g T e m p 9 5 ° 6 0 1 0 1 . 6 5 1 . 3 5 2 . 3 4 0 . 7 5 0 . 7 9 4 7 6 . 9 7 6 . 9 5 9 . 9 2 0 . 7 7 9 Ex i s t i n g k W / T o n 1. 2 3 k W / T 7 0 1 2 1 . 4 4 8 . 9 5 7 . 2 4 4 . 5 7 0 . 9 1 1 7 3 . 5 8 4 . 1 6 5 . 5 3 0 . 8 9 2 85 1 5 5 . 7 4 4 . 6 6 2 . 8 4 8 . 9 3 1 . 0 9 7 6 6 . 9 9 2 . 3 7 1 . 9 2 1 . 0 7 5 Co n d e n s i n g T e m p e r a t u r e C a l c u l a t i o n D a t a 95 1 8 1 . 8 4 1 . 2 6 6 . 1 5 1 . 5 1 . 2 5 6 1 . 8 9 7 . 2 7 5 . 7 3 1 . 2 2 5 10 0 1 9 5 . 9 3 9 . 2 6 7 . 3 5 2 . 4 4 1 . 3 3 8 5 8 . 8 9 8 . 9 7 7 . 0 6 1 . 3 1 1 In p u t s : We t B u l b A p p r o a c h 1 0 ° Lo w e s t C o n d e n s i n g T e m p 7 0 ° Op e r a t i n g H r s . 5 , 6 0 0 H r s Co n d e n s i n g U n i t F a n H P 3 0 H P OA T W h e n C U F a n D r o p s t o 0 % 3 0 ° Co m p r e s s o r s D a t a f o r R 7 1 7 A m m o n i a Ca l c u l a t i o n - P r o p o s e d O p e r a t i n g C o n d i t i o n s : Av e r a g e C o n d e n s i n g T e m p 7 1 . 0 ° ( f r o m i n p u t s a n d b i n d at a b e l o w ) Co n d e n s i n g U n i t F a n k W 1 6 . 2 k W t e m p p s i t o n s b h p k W k W / T t o n s b hp k W k W / T Min i m u m F a n k W 1 . 6 k W 4 6 8 2 . 6 6 4 4 7 . 6 3 7 . 0 9 0 . 5 7 9 8 5 . 7 6 3 . 5 4 9 .48 0 . 5 7 7 56 9 9 . 9 6 2 . 4 5 3 . 8 4 1 . 9 2 0 . 6 7 2 8 3 . 5 7 1 . 8 5 5 . 9 4 0 . 6 7 0 Ca l c u l a t e d P o i n t s : (f r o m c h a r t s o n r i g h t ) 6 6 1 2 0 . 0 6 0 . 8 6 1 . 5 4 7 . 9 2 0 . 7 8 8 8 1 . 4 82 6 3 . 8 9 0 . 7 8 5 Pr o p o s e d k W / T o n 0 . 8 7 k W / T 7 6 1 4 3 . 0 5 9 . 2 6 9 . 8 5 4 . 3 9 0 . 9 1 9 7 9. 2 9 3 . 2 7 2 . 6 2 0 . 9 1 7 86 1 6 9 . 3 5 7 . 4 8 0 . 7 6 2 . 8 8 1 . 0 9 5 7 6 . 9 1 0 7 . 6 8 3 . 8 4 1 . 0 9 0 Sa v i n g s C a l c u l a t i o n : kW h S a v i n g s = ( ( k W / T e x i s t i n g - k W / T p r o p ) * T o n s * H r s ) - F a n k W h P e n a l t y = 1 7 2 , 2 4 2 k W h # o f C o m p r e s s o r s 4 6 # o f C o m p r e s s o r s RX F 3 9 RXF 50IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 6 of 8 Savings Summary: kWh: 200,510.91 kW: 0 Therms: 0 Refrigeration System Night Setback Issue: - The ice rinks are not in use between 12:00AM and 5:00AM which allows the refrigeration equipment to be shut off Proposed Modification: - Configure the system to shut off all refrigeration equipment to shut off from 12:00AM and 3:00AM Observations and Calculation Assumptions: - The system must start an hour before being occupied to bring the ice back to temperature Inputs: Pump Tag HP P-1 Brine Pump 30 P-3 Brine Pump 20 50 Savings Calculation: Load Factor 0.7 Efficiency 0.9 Existing Motor kW=.746*HP*Duty Factor/Motor Eff. P-1 17.4 kW P-3 11.6 kW kWh Savings Hours of Operator Avoided 3 Days P-1 336 17,546 kWh P-3 308 10,723 kWh Total 28,268 kWh System Subtotal HP IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 7 of 8 OPERATIONAL AND MAINTENANCE SAVINGS The first-year annual operational savings identified in the Annual Operational Savings Table below are Stipulated Operational Savings for the First Guarantee Year documented by the calculations and methodologies described below and are not subject to measurement or verification. These savings have been reviewed and analyzed by the Parties and may include but are not limited to repair and maintenance cost reductions; deferred maintenance backlog cost reductions; and other long term operating cost savings. In each subsequent Guarantee Year, the Stipulated Operational Savings in below table shall be escalated at a rate of 3.2% per year to determine the Stipulated Savings from operating savings for such Guarantee Year. The Client agrees and accepts that upon Substantial Completion of the Project, the Stipulated Operational Savings set forth below shall be deemed achieved and included, with appropriate escalation as set forth herein, in the Annual Savings determined for such Guarantee Year. Annual Operational & Maintenance Savings FIM/Building Stipulated Savings Notes Refrigeration System – Replacement of the refrigeration system and install new screw compressors $ 7,000 Engineering Estimate Solar System – Installing city owned solar system $18,679 Engineering Estimate Total Operational Cost Stipulated Savings in First Guarantee Year:$ 25,679 The above values are based on CONTRACTOR’s estimate of annual costs (maintenance & repair) associated with these FIM’s and includes both internal and external costs related to the proposed FIM’s. The Engineering Estimate above are based on experience, age, physical condition / state of the systems and equipment, site evaluations, discussions with Client personnel, and review of existing costing associated with maintenance of these items. IX-01 EXHIBIT D FACILITY OPERATING PARAMETERS & UTILITY SAVINGS CALCULATION METHODS EXHIBIT D Page 8 of 8 One Time Operational & Maintenance Savings FIM/Building Stipulated Savings Notes MCC - Purchasing of new Motor Control Centers for the ice plant $ 200,000 Refrigeration System – Replacement of the refrigeration system and install new screw compressors $ 2,861,536 Electrical Service Replacement - Current Interior Location - Replace existing main electrical service with new $ 342,522 Roofing - Replace existing Roof with new built up roof, new drains, and parapets $ 800,000 Purchase Outright - City Owned - Roof Limited Solar $ 100,000 Total One Time Operational Cost Stipulated Savings:$ 4,304,058 One time O&M Savings are operational savings associated with future expenditures by the Client. Client has agreed that performing the scopes of work that have associated one time O&M Savings will result in a reduction of future expenditures, which is being captured in this one time O&M Savings. IX-01 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1 I X - 0 1