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Agenda 07/27/2010 Item #16C 8Agenda Item No. 16C8 July 27, 2010 Page 1 of 10 EXECUTIVE SUMMARY Recommendation to approve Exhibit A -1, Contract Amendment 2, of the Master Agreement for Demand Side Management and Energy Efficiency Services with Florida Power & Light Company to add an energy conservation option and increase the contract amount by $219,816.60. OBJECTIVE: To realize savings on electrical power costs while upgrading facilities and providing utility services to meet customer demand. CONSIDERATION: Florida Power & Light Company (FPL) is under term contract number 24-973 - 320-X with the State of Florida to provide services to municipal, educational, and state agencies in accordance with Florida Statute § 489.145, "Guaranteed Energy Performance Savings Contracting Act." This process is specific in regard to cost effectiveness and the required savings guarantees that FPL will provide before any energy conservation options /measures (ECOs) are implemented. The Public Utilities Division (PUD) has included this FPL program in our efforts to implement efficiency improvements to ensure cost containment in our short- and long -term financial planning. On May 13, 2008, the Board of County Commissioners (Board) approved Agenda Item 10 C 2 allowing the PUD to enter into a partnership with FPL under a Master Agreement to identify, design, and install specific guaranteed ECOs. The resulting feasibility study (Phase 1) of the PUD's four treatment plants and numerous major water pumping facilities identified various ECOs at a cost of over $3 million. On April 28, 2009, the Board approved Agenda Item 16 C 3, Schedule B of the Master Agreement (Attachment 1), wherein the PUD proposed the short -tern implementation of only the identified ECOs for lighting and occupancy sensors (ECO -1 and ECO -2) at a total cost of $351,812. Implementing those ECOs was estimated to have first year energy and material cost savings of over $45,000, and a simple payback period of 7.7 years. The Phase 1 study cost of $52,344 was included in the $351,812 cost, which is supported by the energy and material savings developed from ECO -1 and ECO -2. As part of the American Recovery and Reinvestment Act (ARRA), Collier County received formula grant funding from the Department of Energy's Energy Efficiency and Conservation Block Grant (EECBG) Program. The PUD staff submitted all the ECO's identified in FPL's Phase 1 study to receive funding. ECO -1 (Lighting Retrofits) and ECO -2 (Occupancy Sensors) were selected to receive $143,000 (approximately 50 percent) and ECO -3 (Solar Photovoltaic Panels at the South County Regional Water Treatment Plant ( SCRWTP)) was selected to receive $160,084.02 (100 percent funding). As part of the requirements for the ARRA, National Environmental Policy Act (NEPA) review and approval was required. The NEPA approved ECO -1 and ECO -2 in March, and approved ECO -3 in April 2010. The delay in the EECBG process, NEPA approval, and the additional requirements of "Buy American" and "Davis Bacon" (the requirement to pay prevailing wages) caused FPL to increase the costs for ECO -1 and ECO -2 by a total of $59,732.58 (approximately 20 percent). The cost increases will be covered by the funding received from the EECBG Program. Approving Exhibit A -1, Contract Amendment 2, of the Master Agreement with FPL, the PUD can move forward with adding ECO -3 "Solar Photovoltaic Panels" at the SCRWTP and provide the _Jenda `real NO, 16C8 July 27, 2010 Executive Summary Page 2 a 10 FPL Master Agreement Schedule B— PUD Energy Efficiency Page 2 additional funding needed for ECO -1 and ECO -2 for a total added cost of $219,816.60. This amendment allows for continued energy cost savings and best value for the County. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's office and is legally sufficient— JBW. FISCAL IMPACT: Implementation of ECO -1 and ECO -2 from the Phase 1 Study has a total cost of $351,812 and was approved April 28, 2009. The cost increases to ECO -1 and ECO -2 and the total implementation cost of ECO -3 will be financed from ARRA Grant Fund (Fund 725). Funding is available in and is consistent with the Board approved EECBG Modification on April 27, 2010 (Agenda Item 16 E 5). GROWTH MANAGEMENT IMPACT: The project is consistent with and furthers the goals, objectives, and policies of the Collier County Growth Management Plan. RECOMMENDATION: That the Board of County Commissioners, as the Ex- officio Governing Board of the Collier County Water -Sewer District, authorize the Board Chainnan to execute Exhibit A -1, Contract Amendment 2, of the Master Agreement with FPL (attachment 2 to this executive summary). PREPARED BY: Nathan Beals, Associate Project Manager, Public Utilities Planning and Project Management Department. Agenda Item No. 16CS July 27, 2010 Page 3 of 10 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: 1608 Item Summary: Recommendation to approve Exhibit A -1 Contract Amendment 2 of the Master Agreement for Demand Side Management and Energy Efficiency Services Agreement with Florida Power & Light Company to add an energy conservation option and increase the contract amount by $219,816.60. Meeting Date: 7127/2010 9:00:00 AM Prepared By Nathan Beals Project Manager, Associate Date Public Utilities Division Public Utilities Engineering 718/2010 9:51:56 AM Approved By Nathan Beals Project Manager, Associate Date Public Utilities Division Public Utilities Engineering 7/712010 2:31 PM Approved By Margie Hapke Operations Analyst Date Public Utilities Division Public Utilities Division 7/8/2010 11:06 AM Approved By Paul Mattausch Director - Water Date Public Utilities Division Water 718/201012:42 PM Approved By Phil E. Gramatges, P.E. Project Manager, Principal Date Public Utilities Division Public Utilities Engineering 7/8/2010 1:06 PM Approved By Dianna Perryman Contracts Specialist Date Administrative Services Purchasing & General Services 71812010 1:30 PM Division Approved By Mark Sunyak Project Manager, Principal Date Public Utilities Division Public Utilities Engineering 71912010 8:04 AM Approved By G. George Yilmaz Director - Wastewater Date Public Utilities Division Wastewater 719!2010 8:54 AM ._. Approved By Jennifer White Assistant County Attorney Date County Attorney County Attorney 7/212010 2:42 PM Agenda Item No. 16C8 July 27, 2010 Page 4 of 10 Approved By Jeff Klatzkow County Attorney Date County Manager's Office Office of Manaaement & Budget 71912010 3:13 PM Approved By Marlene J. Foord Grant Development & Mgmt Coordinator Date Administrative Services Division Administrative Services Division 7/9/2010 3:19 PM Approved By Steve Carrell Director - PurchasinglGeneral Services Date Administrative Services County Managers Office 7/14/2010 5:18 PM Division Purchasing & General Services 7/912010 4:00 PM Approved By Thomas Wides Director - Operations Support - PUD Date Public Utilities Division Utilities Finance Operations 711012010 12:34 PM Approved By James W. DeLony Public Utilities Division Administrator Date Public Utilities Division Public Utilities Division 7/1312010 8:07 AM Approved By OMB Coordinator Date County Manager's Office Office of Manaaement & Budget 7/13/2010 8:48 AM Approved By Randy Greenwald Management /Budget Analyst Date Office of Management & Budget Office of Management & Budget 7/13/2010 10:33 AM Approved By Leo E. Ochs. Jr. County Manager Date County Managers Office County Managers Office 7/14/2010 5:18 PM ATTACHMENT SCHEDULE B TO FPL MASTER AGREEMENT Agenda Item No. 16C8 July 27, 2010 Page 5 of 10 IMPLEMENTATION SERVICES AUTHORIZATION FORM Project Name: Collier County Public Utilities Division Service Location: See Scope Company: FPL Services, LLC Customer: Board of County Commissioners of Collier County Company Representative: Name: David Russell, P.E. Address: FPL Services, LLC I. AUTHORIZATION: This Implementation Services Authorization Form ( "Form ") is issued by the Company to the Customer pursuant to that certain Master Agreement for Demand Side Management and Energy Efficiency Services ( "Master Agreement "), effective as of "29 day of Aygi 20 /)% This Form authorizes the Company to commence Services as described herein pursuant to the terms and conditions of the Master Agreement. This Form is not intended as a Change and in no way amends, varies or modifies the Master Agreement. Any alternate, different or additional terms or conditions referenced by the Customer in subsequent correspondence from the Customer are hereby rejected and will not become part of this Form or other the Master Agreement unless expressly set forth and incorporated herein. In order for the Company to commence Service set forth in this Form, the Customer is required to sign this Form. Capitalized terms used herein without other definition shall have the meanings set forth in the Master Agreement. This Form consists of this Implementation Services Authorization Form and the following attachments, which are incorporated into this Form by this reference: (i) Exhibit A — Feasibility Report, (ii) Exhibit B — Implementation Price and (iii) Exhibit C — Energy Service Charge Option, II. SCOPE OF WORK: The Company shall implement the Feasibility Report which shall set for the Services recommended ECO(s) and the implementation at the Service Location identifed above, as more particularly described in the Feasibility Report, attached hereto and made a part hereof as Exhibit A. III. IMPLEMENTATION SERVICES PRICE: Subject to Section 3.5 of the Master Agreement, the Customer shall compensate the Company for the Services provide in connection with the implementation of a Feasibility Report and any deferral payment obligations due for the Company's implementation and delivery of the ECO(s) at the Service Locations indentified in the Feasibility Report to the Customer, which shall be set forth in Exhibit B. C0 2008, FPL Services, LLC, All Rights Reserved Schedule B Page 1 of 4 PO Box 14000 700 Universe Boulevard Juno Beach, Florida 33408 Telephone: (561) 681 -3079 Facsimile: (561) 681 -3085 E -mail: david_russell_jr @fpl,com Customer Representative: Name: Karen B. Gilliam, PE. Address: Public Utilities Planning and Project Management Department 3301 E. Tamiami Trail Naples, FL 34112 Telephone: 239 - 252 -6083 Facsimile: 239 -530 -6460 E -mail: karenguliani @colliergov.net I. AUTHORIZATION: This Implementation Services Authorization Form ( "Form ") is issued by the Company to the Customer pursuant to that certain Master Agreement for Demand Side Management and Energy Efficiency Services ( "Master Agreement "), effective as of "29 day of Aygi 20 /)% This Form authorizes the Company to commence Services as described herein pursuant to the terms and conditions of the Master Agreement. This Form is not intended as a Change and in no way amends, varies or modifies the Master Agreement. Any alternate, different or additional terms or conditions referenced by the Customer in subsequent correspondence from the Customer are hereby rejected and will not become part of this Form or other the Master Agreement unless expressly set forth and incorporated herein. In order for the Company to commence Service set forth in this Form, the Customer is required to sign this Form. Capitalized terms used herein without other definition shall have the meanings set forth in the Master Agreement. This Form consists of this Implementation Services Authorization Form and the following attachments, which are incorporated into this Form by this reference: (i) Exhibit A — Feasibility Report, (ii) Exhibit B — Implementation Price and (iii) Exhibit C — Energy Service Charge Option, II. SCOPE OF WORK: The Company shall implement the Feasibility Report which shall set for the Services recommended ECO(s) and the implementation at the Service Location identifed above, as more particularly described in the Feasibility Report, attached hereto and made a part hereof as Exhibit A. III. IMPLEMENTATION SERVICES PRICE: Subject to Section 3.5 of the Master Agreement, the Customer shall compensate the Company for the Services provide in connection with the implementation of a Feasibility Report and any deferral payment obligations due for the Company's implementation and delivery of the ECO(s) at the Service Locations indentified in the Feasibility Report to the Customer, which shall be set forth in Exhibit B. C0 2008, FPL Services, LLC, All Rights Reserved Schedule B Page 1 of 4 Agenda Item No. 16C8 July 27, 2010 Page 6 of 10 The Customer and the Company may elect to enter into a separate payment agreement if the Customer chooses to fulfil its payment obligations hereunder via an energy service charge option in accordance with the terms set fort in Exhibit B, which is made part hereof as Exhibit C. IV, CUSTOMER COOPERATION: The Customer shall use reasonable efforts to assist the Company in performing the Services contemplated by this Form, including providing reasonable access to each Service Location, providing information concerning each Service Location, making appropriate Customer personnel available if requested by the Company to assist the Company in performing such Services, and taking any other actions the Company may reasonably request from time to time to achieve the purposes and intent of this Schedule and the Master Agreement, This Form is being provided by the Company to the Customer, acknowledging acceptance of the Services specified in this Form, and the Master Agreement, which is incorporated herein. The Customer has examined and carefully studied all of this Form, including the Master Agreement and all exhibits, appendices, specifications, terms and conditions thereto and hereby agrees to be bound by any and all terms, conditions, and obligations set forth therein. THIS FORM IS HEREBY ISSUED BY THE COMPANY TO CUSTOMER ON THIS 2, DAY OF /4P2lL ,2009( "Effective Date "). IN WITNESS WHEREOF, the Parties have executed this Form as of the Effective Date. Authorized By the Company: FPL Services, LLC, a Florida limited liability company BY: (, & 2 -.. NAME: Greg 14mlif TITLE: Vice Preside t DATE: C - 4/ Approved fto form and le al sufficiency: By: �� 4. 75 r- a. iA�L ,(Type name) Assistant Collier County Attorney Acknowledged by the Customer: Board of Coun Commissioners, Collier County, FL Public Utiliti ivision jz� NAME: Donna Fiala TITLE: Chairman, Board of Commissic DATE: ATTEST DWIG T E. S., J CLERK el Y. Attest as is slpnsture 00 � s © 2008, FPL Services, LLC, All Rights Reserved Schedule B Page 2 of 4 Agenda Item No. 16C8 July 27, 2010 Page 7 of 10 SCHEDULE B EXHIBIT A FEASIBILITY REPORT Project Description: A summary description follows. Detailed specification s are included in the referenced Feasibility Study Report. South County Regional Water Treatment Plant (SCRWTP) ECO - 1: Lighting Retrofit The field investigation identified 717 lighting fixtures of which 613 fixtures have been included in the lighting retrofit. ECO - 2: Occupancy Sensors For this facility, 24 rooms were selected for the installation of occupancy sensors. South County Water Reclamation Facility (SCWRF) ECO - 1: Lighting Retrofit The field investigation identified 679 lighting fixtures of which 363 fixtures have been included in the lighting retrofit. ECO - 2: Occupancy Sensors For this facility, 16 rooms were selected for the installation of occupancy sensors. North County Regional Water Treatment Plant (NCRWTP) ECO - 1: Lighting Retrofit The field investigation identified 401 lighting fixtures of which 371 fixtures have been included in the lighting retrofit. ECO - 2: Occupancy Sensors For this facility, 16 rooms were selected for the installation of occupancy sensors. North County Water Reclamation Facility (NCWRF) ECO - 1: Lighting Retrofit The field investigation identified 1,199 lighting fixtures of which 712 fixtures have been included in the lighting retrofit. ECO - 2: Occupancy Sensors For this facility, 33 rooms were selected for the installation of occupancy sensors. Service Locations: • South County Regional Water Treatment Plant • South County Water Reclamation Facility North County Regional Water Treatment Plant • North County Water Reclamation Facility Scope of Services: Detailed specifications are included in the referenced Feasibility Study Report. The following exclusions are also included within the Feasibility Study Report. Exclusions include the following: • Existing compact fluorescent light fixtures. • Existing LED exit signs. Existing Track lighting with dimming control. • Existing Decorative Lighting. • Surface mounted wall -pack fixtures containing I-IID lamps and Magnetic ballast. • Exterior Lighting. 0 2008, FPL Services, LLC, All Rights Reserved Schedule B Page 3 of 4 SCHEDULE B EXHIBIT B IMPLEMENTATION PRICE ECO -1 & ECO -2 Total Price: $351,812 Agenda Item No. 16C8 July 27, 2010 Page 8 of 10 Payment Schedule/Payment Deferral Option: Payment upon completion and acceptance by Collier County 092008, FPL Smices, LLC, All Rights Reserved Schedule B Page 4 of 4 Agenda Item No. 16C8 July 27, 2010 Page 9 of 10 EXHIBIT A -1 Contract Amendment 2 "MASTER AGREEMENT FOR This amendment, dated , 2010 to the referenced agreement shall be by and between the parties to the original agreement, by and between FPL Services, LLC, to be referred to as "Company ", and Collier County, Florida, (to be referred to as "Customer"). Statement of Understanding RE: Master Agreement for DEMAND SIDE MANAGEMENT AND ENERGY EFFICIENCY SERVICES (State Governmental entities)" The following changes to the above referenced Agreement have been mutually agreed to by the Company and the Customer. The additions to the existing language in the Agreement are shown herein by underlining; deletions from the Agreement are shown by trite s In order to clarify the scope of services in accordance with updated pricing, the following language is hereby added to: SCHEDULE B, IMPLEMENTATION SERVICES AUTHORIZATION FORM, Exhibit A — Feasibility Report ECO 3 • Location — South County Regional Water Treatment Plant (SCRWTP) Feasibility Study reference — o Report Section 4 — Energy Conservation Measures • Appendix D — Drawings • Appendix M — Miscellaneous ECM Analysis • Appendix N — Miscellaneous ECM Specs • Description — Installation of a grid- connected 8.400 Watt (DC) ground- mounted photovoltaic stem with 42 -200 Watt (nominal) PV panels one inverter and one recording type kWh meter. The system will be a fixed tilt system mounted on galvanized steel training and concrete. It will be connected to the facility's electric system via an existing panel/breaker. SCHEDULE B, IMPLEMENTATION SERVICES AUTHORIZATION FORM, Exhibit B — Implementation Price; ECO -1 & ECO -2 & ECO -3 Total Price: $571,628.60 Agenda Item No. 16C8 July 27, 2010 Page 10 of 10 All other terms and conditions of the agreement shall remain in farce. IN WITNESS WHEREOF, the Comxny, , and the Cus+amerhave each, respectively, by an authorized person or agent, hereunder set their hands and seals on the date(s) indicated below. ATTEST: Witness By: _ Dated: CONSULTANT 2� FPL Services, LL By: Greg Hanlon Title: VP & General Manager Dated: YA #7 ATTEST: OWNER: BOARD OF COUNTY COMMISSIONERS Dwight E. Brock, Clerk COLLIER COUNTY, FLORIDA By: Fred W. Coyle, Chairman Approved as to form and Legal sufficiency: JerinifeYS. White Assistant County Attorney