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10a. Contract with Bissonett Engineering, Energy AuditsI MEMORANDUM CITY OF Mou �BANHASSSN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 ' TO: Mayor and City Council FROM: Don Ashworth, City Manager ' DATE: August 1, 1996 ' SUBJ: Contract with Bissonett Engineering, Energy Audits ' I am extremely pleased with how well the energy program for city hall has been going, i.e: Initial Stage: Mr. Bissonett identified items which should be retrofitted and produce cost ' savings to pay for themselves within 3 -5 years; and • Bidding: Specifications were developed and all bids came in under the engineer's estimate; ' and ' • Installation: We are more than halfway through the actual installation process. Confirmations continue to occur reflecting that many of the items that are being replaced would have required replacement during the next 3 -5 years. When seen in this light, the expenditure truly represents "taxpayer dollar savings "; and • Reimbursement: The reimbursement process from NSP has been extraordinarily simple. energy As the reduction program ceases in July 1997, I have requested Bissonett Engineering to gY review other facilities /equipment with the intent of looking at each as potential candidates for the ' NSP program. Attached please find the report from Bissonett Engineering identifying potential savings (actual savings would not be known until an actual energy audit was conducted). Hopefully we can discuss this item Monday evening. I personally would like to move forward ' with all of them, but the council may prefer a phased approach. Again, hopefully we can discuss this Monday evening. 1 gAmgr \bissonett.doc ' �, !'i - i! I' i 1 Mr. Don Ashworth City of Chanhassen 690 Coulter Drive Chanhassen, MN 55317 JUN 2 e hru j CITY OF CHANHASSEN June 7, 1996 A preliminary financial analysis of the NSP Local Government Program for the City of Chanhassen indicates substantial savings on electric and natural gas bills, significant rebates from NSP, some interest -free financing and also partial reimbursement of engineering fees for the public works building, fire station, wells and lift stations. The NSP Local Government Program provides funding to purchase energy efficient equipment for existing facilities. NSP will rebate $.05 per kilowatt -hour saved with the installation of new lighting, air conditioning, motors and drives. In addition, NSP will reimburse the city 100% of engineering fees to perform energy audits, design systems and write specifications for qualifying equipment. Interest -free loans are available and payments are made on your electric bills. The payments are made equal to your electric savings so that your monthly electric bills do not increase while the loan is being paid off. In effect, the savings on your electric bills pay for the new equipment and your operating costs stay the same until the loan is paid, thereby making fiscal budgeting unnecessary to purchase the equipment. During the initial survey of your facilities, many energy savings measures were identified. These measures will be thoroughly investigated during the energy audit phase of the program. For the fire station and public works building, it is recommended that the T12 fluorescent lighting be converted to a T8 system, incandescent lamps replaced with compact fluorescent lamps, exit signs retrofitted with LED kits, occupancy sensors be installed to control lighting and programmable thermostats for temperature control. In addition, for the public works building, two new energy efficient central air conditioners should be installed to replace inefficient window units. For wells #2, 4 and 6, new high efficiency motors could be installed to achieve system reliability and significant energy savings. Variable frequency drives on well motors probably will have payback periods of over 10 years, so they are not included in the proposed energy audits. For the lift stations, all motors are submersible and there are no applications for high efficiency motors or drives. However, there may be an application for standby electrical generation, load shedding and savings by switching to the NSP peak control rates which can be thoroughly investigated, but NSP does reimburse fees or finance generator costs. The preliminary estimate of natural gas and electricity savings for the City of Chanhassen are as follows It is expected that the actual costs and savings will be close to the numbers shown above, but will be more precisely determined durin_xhe energy audits - and bid process for installation of energy saving equipment. If the City of Chanhassen to proceed with the "ene'rgy retrofits, NSP will reimburse the costs as shown above. If the City decides to stop the process after energy audits have been completed, it will owe 60% of the engineering fees. The remaining 40% is due after the bid specifications are written and the bid process is complete. Sincerely, Thomas L. Bissonett, P.E. Eden Engineering, Inc. - 9125 Flyway Circle - Eden Prairie, MN 55347 - (612) 944 -7995 Fire Station Public Works Wells Lift Stations Total Annual cost savings: $1,300 $1,100 $1,600 $10,000 $14,000 Retrofit costs: NSP rebates: $10,100 $600 $7,600 $9,500 $50,000 $77,200 Net installed costs: $9,500 $700 $6,900 $1,300 $8,200 $0 $50,000 $2,600 $74,600 Interest -free loan: $9,100 $6,300 $8,200 $0 $23,600 Engineering fees: NSP reimbursements: $1,500 $1,500 $1,100 $1,100 $1,400 $1,800 $5,800 Payback (years): 7.3 6.3 $1,400 5.1 $0 $4,000 5.0 5.3 It is expected that the actual costs and savings will be close to the numbers shown above, but will be more precisely determined durin_xhe energy audits - and bid process for installation of energy saving equipment. If the City of Chanhassen to proceed with the "ene'rgy retrofits, NSP will reimburse the costs as shown above. If the City decides to stop the process after energy audits have been completed, it will owe 60% of the engineering fees. The remaining 40% is due after the bid specifications are written and the bid process is complete. Sincerely, Thomas L. Bissonett, P.E. Eden Engineering, Inc. - 9125 Flyway Circle - Eden Prairie, MN 55347 - (612) 944 -7995 I - REQUEST FOR OUOTAT[ON- RECEIVE JUN 12 RECD CITY OF CHf►rvnnoo�,, LIGHTING RETROFIT AND ELECTRICAL WIRING AT THE 1 CHANHASSEN CITY HALL The City of Chanhassen is requesting quotations from qualified lighting vendors and electrical 1 contractors to retrofit existing light fixtures at the Chanhassen City Hall, which includes the City Offices, Library, Public Safety and the Senior Citizen's Center in Chanhassen, Minnesota. 1 The bidder's quotation shall include separate pricing for labor, material, disposal and sales tax. Bids must be received no later than Monday, June 17, 1996 at 4:00 P.M. The original shall be mailed to:�j Mr. Thomas L. Bissonett 1 Eden Engineering, Inc. n^ 9125 Flyway Circle, Suite 201 Eden Prairie, MN 55347 In addition, a copy of the quotation shall be mailed to: ! Chanhassen, MN 55317 All questions regarding the project or requests to visit the jobsite shall be directed to Thomas (Tom) Bissonett who can be reached during the business day at (612) 9447995. The bidder's quotation shall be a not -to- exceed price based on the quantities of fixtures specified. If for some reason, actual fixture quantities are less than specified, a credit per fixture shall be given. based on the cost per fixture used in the bidder's quotation. If actual quantities are greater than specified, the additional costs shall be billed, based on the cost per fixture used in the bidder's quotation. The bidder's submittal shall list all contractors and subcontractors who will be performing the work. All contractors and subcontractors performing work on the premises of the City of Chanhassen shall be licensed. All contractors and subcontractors must have insurance as shall protect the City of Chanhassen and Eden Engineering, Inc. from claims under Worker's Compensation acts and from claims for damages because of bodily injury, including death, and property damage which may in any way arise out of or be in any remote or proximate manner connected with the performance of the Contract, whether such claim arises out of the act or failure to act of the contractor or the City of Chanhassen or Eden Engineering, Inc., or of the direct delegee, appointee or employee of either of them. The contractor and subcontractors shall have a minimum limit of liability for Worker's Compensation=in amount of one million dollars ($1,000,000). In addition, the contractor and all subcontractors shall have Commercial Liability 1 listirance. occurrence form, providing bodily injury, personal injury, and property damage liability with combined single limits of not less than one million dollars ($1,000,000) and including Contractor's Protective, Products and Completed Operations, Broad Form Property Damage with no explosion, collapse and underground (XCU) exclusions, and contractual liability coverage for the indemnity agreement contained herein. Certificates of Insurance shall be filed with the City of Chanhassen prior to commencement of services. 1 Mr. Don Ashworth t y of Ltiannassen 690 Coulter Drive 1 P.O.Box 147 Chanhassen, MN 55317 All questions regarding the project or requests to visit the jobsite shall be directed to Thomas (Tom) Bissonett who can be reached during the business day at (612) 9447995. The bidder's quotation shall be a not -to- exceed price based on the quantities of fixtures specified. If for some reason, actual fixture quantities are less than specified, a credit per fixture shall be given. based on the cost per fixture used in the bidder's quotation. If actual quantities are greater than specified, the additional costs shall be billed, based on the cost per fixture used in the bidder's quotation. The bidder's submittal shall list all contractors and subcontractors who will be performing the work. All contractors and subcontractors performing work on the premises of the City of Chanhassen shall be licensed. All contractors and subcontractors must have insurance as shall protect the City of Chanhassen and Eden Engineering, Inc. from claims under Worker's Compensation acts and from claims for damages because of bodily injury, including death, and property damage which may in any way arise out of or be in any remote or proximate manner connected with the performance of the Contract, whether such claim arises out of the act or failure to act of the contractor or the City of Chanhassen or Eden Engineering, Inc., or of the direct delegee, appointee or employee of either of them. The contractor and subcontractors shall have a minimum limit of liability for Worker's Compensation=in amount of one million dollars ($1,000,000). In addition, the contractor and all subcontractors shall have Commercial Liability 1 listirance. occurrence form, providing bodily injury, personal injury, and property damage liability with combined single limits of not less than one million dollars ($1,000,000) and including Contractor's Protective, Products and Completed Operations, Broad Form Property Damage with no explosion, collapse and underground (XCU) exclusions, and contractual liability coverage for the indemnity agreement contained herein. Certificates of Insurance shall be filed with the City of Chanhassen prior to commencement of services. SCOPE OF WORK AND SPECIFICATIONS FOR LIGHTING RE "fROFIT AT ' THE CHANHASSEN CITY HALL The primary project is to retrofit the existing fluorescent light fixtures with a T8 system at the Chanhassen City Hall, located at 690 Coulter Drive in Chanhassen, Minnesota. The contractor shall provide all labor and material to complete the proposed retrofit projects. All work can be done during normal business hours. Proiect #1: Replace fluorescent lamps and ballasts with T8 lamps and LPO electronic ballasts. The existing ceiling fluorescent light fixtures in the City Offices, Public Safety and Senior Center measure two foot by four foot with deep cell parabolic lenses, recessed in an acoustical ceiling grid about 9 feet above the finished floor. Each fixture has three, 40 watt Phillips fluorescent lamps, each being F40T12, warm white, rapid start. Also, each fixture has two energy saver rapid start magnetic ballasts, each being listed as Advance Mark III, 120 volt, 0.73 amp for two, 40 watt or 34 watt lamps. In addition, there are some two foot by two foot parabolic fixtures, each with two U -lamp.- and one ballast. The existing ceiling fluorescent light fixtures in the Library measure two foot by four foot with acrylic prismatic lenses, recessed in an acoustical ceiling grid about 10 feet above the finished floor. Each fixture has four, 40 watt Phillips fluorescent lamps, each being F40T12, cool white, rapid start. Also, each fixture has two energy saver rapid start magnetic ballasts, each being listed as Advance Mark II1, 120 volt, 0.73 amp for two, 40 watt or 34 watt lamps. The retrofit involves utilizing the existing light fixtures, but replacing the fluorescent lamps and ballasts inside the fixtures. The procedure requires removal of all T12 lamps and magnetic ballasts along with legal disposal, recycling or reuse by a qualified contractor. All ballasts are marked - No PCB's ", so they are not considered or waste. Any disposal cost or cost credit for the lamps and/or ballasts should be listed as a separate item in the bid along with a brief explariation of method to be used (recycle, disposal, reuse, resale, etc.). In addition, each fixture shall be cleaned including the back white reflector and the lens, both inside and outside. ` New 32 watt, 120 volt, 48 inch long, rapid start, warm- white, bi -pin T8 fluorescent lamps and 120 % rapid start low power output (LPO) electronic ballasts shall be installed in the existing light futures. Each fluorescent fixture shall have T8 lamps and one LPO electronic ballast installed inside (replacing two magnetic ballasts and rewiring fixtures in some cases). All electronic ballasts installed shall meet the requirements of the NSP Lighting Efficiency Program Approved Ballast List. It is the bidder's responsibility to obtain a copy of this list of approved ballasts. All ballasts must ule;et the foiiuwing specifications: 1. All ballasts shall be electronic, U.L. listed, Class P. '. Ballast sound levels shall not exceed Class A ambient noise levels. 3. Input current total harmonic content shall be below 20 %. -l. Ballast shall have a power factor of 90% of above. 5. All . ballas(s shall be 120 volt, rapid start, low power output (LPO) electronic capable of operating four T8 fluorescent lamps. 6. Ballast shall withstand line transients as defined in IEEE Publication 587, Category A. 7. Ballast shall meet the requirements of the Federal Communications Commission — Rules and Regulations, Part 18. S. Ballasts shall meet minimum efficacy standards of Public Law No. 100 -357, National .appliance Energy Conservation Amendment of 1988. 9. Ballast shall have an average lamp current crest factor below 1.4: 10. All ballasts shall be warranted by the manufacturer for a minimum of five years. I The following is a summary of the T8 retrofit project at City Hall: Quantity of existing fluorescent light fixtures to retrofit and clean: 244 ' Existing quantity of F40T12lamps to remove and recycle: 585 Existing quantity of FB40T12 lamps to remove and recycle: Ns Existing quantity of magnetic ballasts to remove and disposal: 394 ' Proposed quantity of 32 watt T8 fluorescent lamps to install: 585 Proposed quantity of 32 watt T8 U -lamps to install: 118 Proposed quantity of LPO electronic ballasts to install and wire: 24=1 ' If actual quantities vary from the scope of work, the contractor shall give a cost credit for each item less than shown or a cost addition for each extra item more than indicated here. These cost credits or ' debits shall be based upon the price per unit which the contractor has used in his bid proposal. In addition to the T8 fluorescent lighting retrofit for ceiling fixtures, there is one other proiects to be installed by the contractor and are to be included in the bid as follows: Project #2: Retrofit 44 fluorescent fixtures located under shelves above desks in various offices for the City and for Public Safety. These are one -lamp fixtures which are part of the systems fumiture ' in the offices. Also, the Senior Center has a display case with two lamps. All lighting components are to operate on the existing 120 volt electric service. All lamps and ballasts must meet the specifications found in Project #l. The summary of Project #2 is as follows: ' Quantity of F40T 12 lamps to replace with 32 watt T8 lamps: 19 Quantity of F40T12 ballasts to replace with LPO electronic ballasts: 19 ' Quantity of F30T12 lamps to replace with 25 watt T8 lamps: 3 Quantity of F30T12 ballasts to replace with LPO electronic ballasts: 3 Quantity of F20T12 lamps to replace with 17 watt T8 lamps: 24 Quantity of F20T12 ballasts to replace with LPO electronic ballasts: 24 The following information is requested for the Chanhassen City Hall lighting retrofit as part of the bid and can be provided on the contractor's own bid form or proposal: y Contractor's Labor Price $ Contractor's Material Price $ ' Contractor's Disposal Price $ ',),); -� Permit Costs $ !w • �?= State Sales Tax $ �� . _�-• Total Bid Price (not to exceed) $ ' List of Contractors and Subcontractors: Manufacturer of T8 lamps: = r> ' Manufacturer of electronic ballasts: 1141 -�_ Expected start date of installation: /7 Expected completion date: 1 REOUEST FOR QUOTATION- ' PACKAGED ROOFTOP HVAC INSTALLATION AT THE CHANHASSEN CITY HALL ' The City of Chanhassen is requesting quotations from qualified mechanical contractors to provide a turnkey installation of two new rooftop heating, ventilating and air conditioning units, with associated ductwork, controls and electrical wiring at the Chanhassen City Hall located at 690 Coulter Drive in Chanhassen, Minnesota. The bidder's quotation shall include separate pricing for design, labor, material disposal ' tax. Bids must be received no later than Monday, June 17, 1996 at 4:00 P.M. The orri inal shall be mailed to: ' Mr. Thomas L. Bissonett Eden Engineering, Inc. ' 9125 Flyway Circle, Suite 201 Eden Prairie, MN 55347 In addition, a copy of the quotation shall be mailed to: ' Mr. Don Ashworth City of Chanhassen , 690 Coulter Drive P.O.Box 147 Chanhassen, MN 55317 ' All questions regarding the project or requests to visit the site shall be directed to Thomas (Tom) Bissonett who can be reached during the business day at (612) 944 -7995. ' The bidder's quotation shall be a not -to- exceed price based on the equipment specified including all costs for design, labor, material, disposal and sales tax. The bidder's submittal shall list all contractors and subcontractors performing the work. Also, the bidder must identify any exceptions ' to the specifications in his proposal. All contractors and subcontractors performing work on the premises of the City of Chanhassen shall ' be licensed and bonded. All contractors and subcontractors must have insurance as shall protect the City of Chanhassen and Eden Engineering, Inc. from claims under Worker's Compensation acts and from claims for damages because of bodily injury, including death, and property damage which may ' in any way arise out of or be in any remote or proximate manner connected with the performance of the Contract, whether such claim arises out of the act or failure to act of the contractor or the City of Chanhassen or Eden Engineering, Inc., or of the direct delegee, appointee or employee of either of them. The contractor and subcontractors shall have a minimum limit of liability for Worker's Compensation in the amount of one million dollars ($1,000,000). In addition, the contractor and all subcontractors shall have Commercial Liability Insurance, ' occurrence form, providing bodily injury, personal injury, and property damage liability with combined single limits of not less than one million dollars ($1,000,000) and including Contractor's Protective, Products and Completed Operations, Broad Form Property Damage with no explosion, ' collapse and underground (XCU) exclusions, and contractual liability coverage for the indemnity agreement contained herein. Certificates of Insurance shall be filed with the City of Chanhassen prior to commencement of services. ' ' SCOPE OF WORK AND SPECIFICATIONS FOR HVAC INSTALLATION AT THE CHANHASSEN CITY HALL ' The projects include installation of two new packaged rooftop HVAC units at the Chanhassen City Hall, located at 690 Coulter Drive in Chanhassen, Minnesota. The contractor shall provide turnkey services including design, drawings, permits, labor, material and disposal to complete the proposed ' projects. All work can be done during normal business hours. Upon award of contract, the contractor shall provide all mechanical drawings, shop drawings and ' permits to complete the installation of HVAC equipment. The contractor must provide all permits including air conditioning, heating, piping, sheet metal and electrical. Copies of all mechanical drawings shall be submitted to Eden Engineering, Inc. for approval prior to installation. All work shall be in compliance with local and state mechanical codes. All electrical work shall follow the ' National Electric Code together with applicable state and city requirements. After installation, the contractor shall provide on -site instruction to the owner designated personnel along with maintenance and operation manuals for the equipment. ' Proiect A: Replace an old 3 -1/2 ton packaged rooftop HVAC unit with a new hish efficiency unit.. The contractor shall provide a new packaged rooftop unit to replace the existing unit along with all ' permits, labor and material for complete installation. The existing packaged rooftop unit is a Magic finance Chef and is about 20 years old. It serves the area, drafting and the city manager's office. The contractor will be responsible for its removal from the site and legal disposal. The new unit shall be a Carrier or equal, have a sensible cooling capacity of at least 42,000 BTUH at 72° F dB and a heating capability of at least 80,000 BTUH output. The compressor shall be electrically driven and the contractor is responsible for electrical connections to the existing 208 volt service. The unit shall have an EER rating of at least 10.0. The heating shall be natural gas and the contractor is responsible for connections to the existing natural gas service. A minimum heating efficiency of 80% is required. The new unit may not fit the existing roof curb, so the contractor shall ' provide the necessary roofing services for installation. The unit shall be wired to the existing or replacement building thermostat for operation. ' Proiect B: Install a new 3 ton packaged rooftop HVAC unit for the lobby and wash rooms. The contractor shall provide a new packaged rooftop unit along with all drawings, permits, labor and material for complete turnkey installation. This shall include necessary ductwork to provide supply and return air to the lobby and washrooms along with controls, electrical connections, and roof curb. At present, the lobby's air conditioning is provided by an undersized unit which also serves the office area. This unit will remain in place, but its supply and return air to the lobby should be capped off by the contractor. The lobby wash rooms are presently served by a small fan unit with electric ' heat which is inadequate. This unit along with the electric heat must be removed by the contractor. The new unit shall be a Carver or equal, have a sensible cooling capacity of at least 36,000 BTUH at ' 72° F dB and a heating capability of at least 60,000 BTUH output. The compressor shall be electrically driven and the contractor is responsible for electrical connections and 208 volt service. The unit shall have an EER rating of at least 10.0. The heating shall be natural gas and the ' contractor is responsible for connections and natural gas service. A minimum heating efficiency of 80% is required. The contractor also shall provide one Honeywell T8600 programmable thermostat for the new HVAC unit. ' The following information is requested for the Chanhassen HVAC projects as part of the bid and should be included in the contractor's proposal: Design Costs, Permits, Labor Price, Material Price, Disposal Price, State Sales Tax, Total Bid Price, List of Contractors and Subcontractors, ' Manufacturer of HVAC units, Model number(s), Expected start date of installation, Expected completion date. ' _'t , i THOMAS BISSO'NETT EDEN ENGnMERING WC. 9125 FLYWAY CIRCLE cI EDEN PRA M, MN. 55347 RE' C ANNAM SEN CTI'y It T 1 TH , THANK YOU FOR TM— R 0 - PPO 1 Tw rv-r,, WE PROPOSE THE FO L "`• ` "!NI I ; 1 0 QUOTE ON ITO PROJECT. TI?Jr SCOT OF WORK: � wOitK; " UNIT WITH DUCTV, "O_ R�N1FN(a r , � '" — - A I OX C3C520 -513 4 TON CLL - - .� ,s�,,, r,." E1NJ7 F- I �IRI:D - LET 'DES Ci F7 R — rc yr A a ,,..0 _ ELECTRICAL AS - ^� Alvv N E �y 'jam- RMOSTAT LhTSTAI.I,1ti'EW I_FTtiTN(1X ra�r�n - - - Ih'TO BL C -'0'0'4 3 ( -) R00FTOP j1I�'IT ' LDLN(i TO F ED E3a., r,,,,.. ,�. WITH DUCT G RU B � ` , uU a uY'j 1 'tL' — P r; LINES AND EJL'I�*TING RETURN! FU EHIATD _ F('F D'T'T n�- Tlx.•nL� ... ��� vl' D ti 1 v BE US INCLUDES GAS CTI�C . R[X)F nL Erg . y , �itK(-1 UNIT - a.x :Mf .. AND RE1tisOVAL OF EXISTING FAN COII, DESIGN COST : SAC! M AMRLAL.S fT IV r('� — LABOR (Mifi.cl SLR. LABOR /Ni TFgteL___ DE D ;SPOSAT __. _ 'P 450.0(J S7,425.00 SZ320.00 52,675.00 TOTS A75.00 S# X1 3,745.00 'a+2W \JIV tiL_JE.)j' j ()� UNITS S '' -'N" P�ACTORS - Sou7wSIDE ELFiCrRiCAr_ - -BERWALD ROOFL'VG - BOESER SHEET..kg- AL -D/C SALES -ROCKET CRANE SER THANK-YOU. JEFFREY S. Ski Cn MTV 55317 (812 )474.'172"M Mom CITY OF �t3AN8ASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 MEMORANDUM TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: March 25, 1996 SUBJ: Approve Contract with Bissonett Engineering Services, Energy Audit This item was briefly discussed with the city council during our work session in February. My notes indicate that the council wished to see if NSP could provide this service at a cheaper cost, if we would be reimbursed Bissonett's fees, and what potential cost savings could be achieved. BACKGROUND The state legislature passed a bill requiring NSP to reimburse governmental units that retrofitted existing buildings with more energy efficient equipment. Any retrofit that could be demonstrated through the energy audit (requirement included in the legislation itself) would be eligible for reimbursement. Attached please find various pieces of correspondence /attachments that outline the state law in more detail. RESPONSES TO COUNCIL QUESTIONS ..; .. .. .... Use NSP to Provide This Service: Although NSP has engineers capable of providing this type of service, they have adopted a policy against such. Specifically, NSP sees that decisions such as the extent of the retrofits is a decision that solely should be made by the ' city. They do not want to be seen as notn a retrof t and'therefore be accused of solely trying to sell:.more electricity vs. doing extensive retrofits where they maybe accused of spending more money than was necessary. I that NSP also told me that the necessity ' for the third party independent auditor was iric�luded in the legislation mandating this program. NSP highly recommends Bissonett to carry out third party energy audits, and ' • Is the City Guaranteed to be Fully Reimbursed ?: The only check that the city will be issuing is the 50% of the engineering contract at the time the final report is submitted. That Mayor and City Council March 25, 1996 Page 2 cost will be reimbursed to the city by a third party bank when the retrofits have been completed. The city would be out the approximate $1,500 if we made a decision not to move forward with the retrofits. As Mr. Bissonett has made a detailed inspection of the site, it is highly likely that his estimates of a $22,000 retrofit contract with payback over five years can be seen as the minimum savings through this program. Accordingly, there should be no surprises as a part of the final contract and, therefore, assuming that this item is approved tonight, there would be virtually no chance that the city would not be reimbursed; and How Would This Program Interface with the New Construction ?: Initially I believed that it was important to have somebody like a Bissonett Engineering on board to coordinate the retrofitting with the new construction. In follow up conversations with Todd Christopherson, we have come to the conclusion that retrofitting existing city hall should logically occur towards the end or following construction of the new addition. We would ask Mr. Bissonett to ensure that KKE did incorporate into their specifications items that would qualify for rebate, but no other involvement with the new construction would be necessary. In all likelihood, a smaller local contractor would probably better serve the city in terms of accomplishing the retrofitting of the existing city hall. I have checked with the references provided by Mr. Bissonett. Ironically, Eden Prairie had originally anticipated using the civil engineering firm that they had employed to carry out water plant modifications to also do the energy work for them. At virtually the same time that they were looking at the engineering proposal, Mr. Bissonett visited with Eden Prairie and provided them with a proposal. It was the consulting engineering firm's belief that the proposal by Bissonett would be less money than they would charge to provide that service and that he was in a better position to administer the project and to assure that all alternatives had been explored. It is recommended that the city council approve entering into a contract with Bissonett Engineering Services to perform an energy audit for the existing city hall.