HomeMy Public PortalAbout02-12-2013 transfer esco_201302080922595978 TOWN OF
1630 WATFRTOWN
Office of the Town Manager
" . Administration Building
_ 149 Main Street
Watertown,MA 02472
Phone: 617-972-6465
Michael J. Driscoll Fm:617-972-6404
www.water town-ma.gov
Town Manager townmer0watertown-nta.eov
To: Honorable Town Council
From: Michael J. Driscoll, Town Manager
Date: February 7, 2013
Re: Agenda Item—Transfer of Funds Request
Attached please find correspondence from Phyllis L. Marshall, Treasurer/Collector
regarding ESCO Project Owner's Agent Services,
Therefore, I respectfully request the attached transfer be placed on the February 12, 2013
Town Council Agenda in order to move forward with the Owner's Agent Services subject to
execution of the proposed ESCO performance contract with Johnson Controls, Inc.
Thank you for your consideration in this matter.
cc: Phyllis L. Marshall, Town Treasurer/Collector
Racleen Parsons, Purchasing Agent
Beth S. Greenblatt, Beacon Integrated Solutions
David J. Doneski, Esquire,Kopelman and Paige, P.C.
Mark R. Reich, Esquire, Kopelman and Paige, P.C.
Steven Magoon, Director, Community Development and Planning
Thomas J. Tracy,Town Auditor
TRANSFER AMOUNT $88,970
FROM: FY 13 TOWN COUNCIL RESERVE $ 88,970
0111152-570780
TO: FY 13 ESCO $ 88,970
0194000-530318
1 hereby certify to the availability, authority of funding source, mathematical accuracy
and appropriate fiscal year.
DATL TOWN AUDITC� "-'
MEMORANDUM
Date: February 6, 2013
To: Michael J. Driscoll, Town Manager
From: Phyllis L. Marshall, Treasurer— Collector
Subject: Transfer of Funds for ESCO Project Owner's Agent Services
In accordance with the recommended action of the Town Council at the Special Town Council
Meeting of October 2, 2012, to proceed with the optimized $7,350,000 ESCO Project as
presented, negotiation of the Contract with Johnson Controls Inc. and the Town has been
ongoing. Ms. Beth Greenblatt of Beacon Integrated Solutions has been working with the Town
Attorney and Johnson Controls Inc. during December, 2012 and January, 2013 to reach a
contract for your review and consideration. It is expected that the contract and attachments will
be completed this month. Ms. Greenblatt will summarize the provisions of the Contract before
the Town Council on February 12, 2013.
As you may recall from discussion with Ms. Parsons, Ms. Greenblatt, and me, funding for
services to date has been the balance of funds allocated for consulting services from the
beginning of the project development and a $10,000 Technical Assistance Grant from DOER
which was awarded to the Town based on the application submitted by Ms. Parsons. It was
estimated that these funds in addition to the appropriation would cover the services of Beacon
Integrated Solutions through the negotiation until mid-January.
In order to complete the detailed negotiation of the Contract, Schedules and Attachments, and
prepare for the Town Council meetings scheduled for February, I respectfully request
consideration of transfer of funds in the amount of$2,170.00 to fund the work of Beacon
Integrated Solutions through the execution of the contract with Johnson Controls Inc.
In addition, as indicated during the September 19, 2012 meeting of the Budget and Fiscal
Oversight Subcommittee and noted in the attached Report of the Town Council Committee of
the Budget and Fiscal Oversight subcommittee, additional funds would be needed for Beacon
Integrated Services to act as the Owner's Agent, if the project moved forward.
The proposal submitted by Ms. Greenblatt for Owner's Agent Services in support of project
management for the ESCO performance contract with Johnson Controls Inc. is attached. It
represents services estimated to be 35 hours per month over a sixteen month implementation
schedule for a not to exceed amount of$86,800. The actual amount of the contracted services
will depend on the actual number of Owner's Agent hours required throughout the project and
the staffing of Town representatives participating in the project will influence the total hours
needed.
The proposal for Owner's Agent Services includes:
• Contract and statutory compliance for project schedule, document review and
approval of submittals, applications for payment, completion and meeting the
requirements of the calculated energy conservation measures
• Coordination of construction including project meetings and advising the Town
regarding any change orders
• Contingency management
• Reporting project progress
These services would be in addition to the Town staff participating in the project to coordinate
work at specific locations and sequencing of other construction and activities at each location.
The Owner's Agent Services are necessary to assure project compliance, coordination of
construction activities between the ESCO and Town departments and management,
recommendations for any contingency that may arise and management of project schedule.
Depending on the Town staffing of the project the number of hours needed from the Owner's
Agent may increase or decrease, but is not expected to exceed $86,800.
1 respectfully request consideration of transfer of funds in the total amount of$88,970 for the
Owner's Agent Services subject to execution of the proposed ESCO performance contract with
Johnson Controls Inc. and the Town of Watertown.
Please contact me if you have any questions or need additional information regarding this
matter.
Attachments (2)
Town of Watertown
Town Council Committee of the Budget and Fiscal Oversight
Meeting: September 19, 2012
Report: September 25, 2012
The Committee convened on September 19, 2012 at 8 pnn. Present at the meeting were:
Vincent Piccirilli, Chair;Angie Kounelis,Vice-Chair; Cecilia Lenk,Secretary; Town Manager
Michael Driscoll; Director of Community Development and Planning Steven Magoon;
Purchasing Agent Raeleen Parsons; School Committee Member David Leon;Watertown
Public Schools Director of Business Services Jack Loughran; and Beth Greenblatt of Beacon
Integrated Services,the Town's ESCO consultant. Also attending were the following
members of the Environment and Energy Efficiency Committee: Ken Mirvis,Matthew
Reigert, Stephane Acel-Green,and Charles Bering. Treasurer/Collector Phyllis Marshall
joined the meeting at 9:15 pm,
The purpose of the meeting was to discuss the results of the due diligence on the ESCO
proposal submitted by Johnson Controls,following their energy audit of Town and School
buildings. This action was recommended by the Committee during its February 22,2012
meeting,and the Committee's recommendation #6 in its March 13,2012 report,where it
was determined that the Town needed additional review of the proposal before
presentation to the full Council. Ms.Greenblatt conducted the due diligence,in
collaboration with Ms.Marshall, Ms. Parsons, Mr. Piccirilli,Mr. Loughran,and department
heads from the Town and School.
Mr. Driscoll opened the meeting by noting that the Town's FY13 budget policy guidelines
look to working with the Town's selected Energy Services Company(ESCO) to develop and
implement a plan towards reducing municipal baseline energy usage by 20%in five years.
Ms. Greenblatt went through the attached presentation of the due diligence process on the
proposal from Johnson Controls. The original proposal was winnowed down,based on the
cost effectiveness of the individual projects,to a"budget neutral"$6.8M scenario. With
further input from the department heads,some additional items that were previously
identified in the facility maintenance study were added back in to develop an"optimized"
$7.35M scenario which still shows a positive cash Flow over the 20 year life of the program.
Attached are two spreadsheets that outline the energy efficiency projects that would be
undertaken in each of 14 Town and School buildings under two proposed scenarios.
Mr. Driscoll stated that he believes the"optimized"scenario represents the best long-term
value for the Town,and he confirmed that the department heads are satisfied with the
scope of work proposed in this scenario.
Mr. Loughran stated that the School Department was satisfied with the scope of work
proposed,but expressed concern over the scheduling of the work in the school buildings.
Ms. Greenblatt explained that much of the work will be performed in non-student areas,
but work in classrooms will be done over the summer or on second shift,and the schedule
Paget of 2
will be embedded in the final contract. It was noted that about 80%of the work(and about
80% of the energy savings) are in the school buildings.
The financing was discussed,where the entire capital project would be paid for through the
energy savings,based on a budgeted 3%energy cost annual increase over the life of the
contract,at an interest rate of 3.5%or less. The Measurement&Verification provision of
the contract will serve to confirm savings on an annual basis,and if all the savings do not
materialize,Johnson Controls will be required to write a check to the Town to make up the
difference. All were satisfied with this approach,although Councilor Kounelis asked that
energy usage updates be provided quarterly.
Councilor Lenk asked how rebate money would be applied to the debt service,and Mr.
Driscoll suggested that a stabilization fund be set up to capture the rebates as well as the
annual savings from each department's gas and electric line items that will be reserved for
paying down the debt. This will accommodate fluctuations in the annual savings that will
be recognized over the 20 year life of the program.
The timeline was discussed,and if the Council votes to proceed,the contract would be
executed by January,with a loan order brought forward in February,and a bond issue in
March, This would allow Johnson Controls to submit the final design drawings for approval
to order equipment in May,to allow construction in the school classrooms to occur over
the summer 2013,
After further discussion of the proposed options and financial and budget impacts of each,
the Committee unanimously voted the following:
1. Recommend to that the Town Council moves forward on the optimized$7.35M
ESCO project.
2. Recommend that the Town Council direct the Town Manager to negotiate a contract
with Johnson Controls for the ESCO project; including the addition of quarterly
reports of energy usage in all buildings under agreement.
3. Recommend that the Town Council review the establishment of an energy
stabilization fund in which to place rebates,grants,and funds from departmental
energy savings. The energy stabilization fund will be used to pay the debt service on
the energy efficiency projects incurred under the ESCO agreement.
�-� The Manager noted that additional funds will be needed for Beacon Integrated Services to
act as the Town's agent if the Council approves moving forward with the program.
The meeting adjourned 9:50 PM
Submitted by Cecilia Lenk
Page 2 of 2
Town of Watertown
Saving
0
Energy
Program Review and Update
A,G C) C/� tom/
/ ® "'=;RAYM SOI;UMON 2S September 19, 12
Contracting V
General Approach
Design-build energy efficiency project that leverages
existing operating and energy budgets to implement
turnkey energy efficiency and renewable energy
solutions:
® Upgrade building infrastructure and increase building efficiency
L3 Reduce operating and maintenance costs
® Enhance operating staff productivity
Q Implement renewable energy strategies
® Improve indoor air quality
® Enhance core curriculum by integrating innovative technologies
with educational objectives
t�,MB�
� Town of aterto n S6ide 2
' 1.11�11111
Contractingrerformance
Illustrative Example — 25916' Operating Cost Savings
100 -- ---------- -------------------------------
� f Savings used to
pap debt obligation
75 ----- ----- ------ ----
50 ----- ---------- ----------
a
25 ------ -----------
q.,.. .e... 4'..:::""v.:..F.:..... :n:•::�s t�i �:o:.�Rt
Sr
Before Program During Program After Program
®Annual Operating Budget ❑Annual Carrying Cost of Program
� A �N Town of Waleflown Slide 3
Program Optimization
Winnowing Process to Achieve Best Value
,„ \
104dentified total.technical
JCI Conducted Detailed Energy Audit potential,for energy
infrastructurenpgrades3n .
specified buildings
Town and..School stakeholders
❑ Stakeholder Reviews an Winnowing reviewed and eliminated pro}ects
based on priorities and ecanomacs ,
Town and School stakeholders and JCI
Stakeholder Final Optimization opts nixed profeU tiu.& �ycahensiveness
to meetTown finanexal regturements
°���N Town of Waloilown slide 4
vrogram uptimization
Winnowing Process Results
Total Technical Potential - Original Proposal
zi 16 Town and School Buildings
® 145 Energy Infrastructure Upgrade Projects
® $10.6 Million in Energy Infrastructure Investments
® Cashflow: -$1.22 million during first 11 years; -$61,000 over 20
years.
Winnowing - Scope Refinement #1
u 15 Town and School Buildings (removed Old Police Station)
® 118 Energy Infrastructure Upgrade Projects
® $8 Million in Energy Infrastructure Investments
® Cashflow: -$278,000 during first 6 years; $1.9 million over 20
years.
73E1�C 9Il z Slide 5
Program 0z
ation
Budget Neutral Project — Project #1
Final Project with No Budget Impact
u 14 Town and School Buildings
® 91 Energy Infrastructure Upgrade Projects
® $6.8 Million in Energy Infrastructure Investments
® Cashflow: -$51,626 over the first three years; $2.45 million
over 20 years. Utility rebates of approximately $250,000 used
to offset cashflow impact in early years.
ME C3 N
Slide
JCI Proposed Program
Budget Neutral Project
Simple
Annual Paybackin
Facility Project Cost I Savings Rebates Years
Watertown High School $1,959,803 $131,333 $48,992 14.5
Watertown Middle School $689,791 $58,925 $52,090 10.8
Hosmer Elementary School $870,2271 $74,727 $33,976 11.2
Lowell Elementary School $1,024,6661 $55,721 $38,171 17.7
ICunniff Elementary School $807,9591 $27,324 $18,002 28.9
flPhillips Elementary School $440,1491 $26,602 $2,397 16.5
i Watertown Town Hall $415,2891 $10,822 $14,350 37.0
Watertown Library $107,0301 $16,372 $11,324 5.8
Main Fire Station $70,3281 $5,126 $3,166 13.1
(North Fire Station $20,842 $1,974 $25 10.5
East Fire Station $10,191 $982 $22 10.4
Department of Public Works $211,303 $27,949 $7,257 7.3
Ice Rink $133,318 $23,504 $17,783 4.9
ISeniorCenter $17,208 $1,095 $1,940 13.9
Investment Grade Audit Cost $37,565 - - -
Total $6,815,670 $462,456 $249,495 14.2
$E„1 CON Town of Watertown Slide a
rV
JCI Proposed Program
Cash- lowAnalysis at 3. 19916 Net Interest Costs
TOTAL ANNUAL COST ANNUAL SAVINGS ANNUAL
YEAR Debt Service* M&V Total Total CASHFLOW
1 $474,819 $19,800 $494,619 $462,456 $32,163
2 $473,319 $20,394 $493,713 $476,330 517,383
3 $471,694 $21,006 $492,700 $490,620 $2,080
4 $469,944 $21,636 $491,580 $505,338 $13,758
5 $473,069 $22,285 $495,354 $520,498 $25,144
6 $470,944 $22,954 $493,897 $536,113 $42,216
7 $473,694 $23,642 $497,336 $552,197 $54,861
8 $471,194 $24,352 $495,545 $568,763 $73,217
9 $472,806 $25,082 $497,888 $585,825 $87,937
10 $473,750 $25,835 $499,585 $603,400 $103,816
11 $472,375 $26,610 $498,985 $621,502 $122,518
12 $470,650 $27,408 $498,058 $640,147 $142,089
13 $473,575 $28,230 $501,805 $659,352 $157,547
14 $470,975 $29,077 $500,052 $679,132 $179,080
15 $473,025 $29,949 $502,974 $699,506 $196,532
16 $474,550 $30,848 $505,398 $720,491 $215,094
17 $470,550 $31,773 $502,323 $742,106 $239,783
18 $471,200 $32,726 $503,926 $764,369 $260,443
19 $471,325 $33,708 $505,033 $787,300 $282,267
20 $470,925 $34,719 $505,644 $810,919 $305,275
$9,444,381 $532,033 $9,976,415 $12,426,366 $2,449,951
* Debtservice is based on assumption of level payments with a net interestcostof 3.19%.
Total principal borrowed of$6,815,000 includes the cost of the Investment Grade Energy Audit.
s�
Debt service is before rebates of$249,495 which will be used to offset early year cashflow impacts.
Town of Watertown Slide
14
JCI Proposed Program
CashflowAnalysis at 3.596, Net Interest Costs
TOTAL ANNUAL COST ANNUAL SAVINGS ANNUAL
YEAR Debt Service* M&V Total Total CASHFLOW
1 $478,525 $19,800 $498,325 $462,456 $35,869
2 $480,125 $20,394 $500,519 $476,330 $24,189
3 $481,375 $21,006 $502,381 $490,620 $11,761
4 $477,275 $21,636 $498,911 $505,338 $6,427
5 $478,000 $22,285 $500,285 $520,498 $20,213
6 $478,375 $22,954 $501,329 $536,113 $34,785
7 $478,400 $23,642 $502,042 $552,197 $50,154
8 $478,075 $24,352 $502,427 $568,763 $66,336
9 $477,400 $25,082 $502,482 $585,825 $83,343
10 $481,375 $25,835 $507,210 $603,400 $96,191
11 $479,825 $26,610 $506,435 $621,502 $115,068
12 $477,925 $27,408 $505,333 $640,147 $134,814
13 $480,675 $28,230 $508,905 $659,352 $150,447
14 $477,900 $29,077 $506,977 $679,132 $172,155
15 $479,775 $29,949 $509,724 $699,506 $189,782
16 $481,125 $30,848 $511,973 $720,491 $208,519
17 $481,950 $31,773 $513,723 $742,106 $228,383
18 $482,250 $32,726 $514,976 $764,369 $249,393
19 $482,025 $33,708 $515,733 $787,300 $271,567
20 $481,275 $34,719 $515,994 $810,919 $294,925
$9,593,650 $532,033 $10,125,683 $12,426,366 $2,300,682
Debtservice is based on assumption of level payments with a net interest cost of3.5%.
Total principal borrowed of$6,815,000 includes the cost of the Investment Grade Energy Audit.
t7;
Debt service is before rebates of$249,495 which will be used to offset early year cashflow impacts.
�nC®N Town of atertown Slides
..
O O Optimization
Program
Optimized Project - Project #Z
Winnowing - Scope Refinement #2
® 14 Town and School Buildings
® 97 Energy Infrastructure Upgrade Projects
® $7.35 Million in Energy Infrastructure Investments
® Cashflow: -$144,281 over the first four years; $1.97
million over 20 years. Utility rebates of approximately
$274,000 used to offset cashflow impact in early years.
I3�AC�7N Slide 10
� d
JC1 Proposed Program
OPtzmzzed Project
Simple Payback
Facility Project Cost Annual Savings Rebates in Years
Watertown High School $1,959,803 $131,333 $48,992 14.5
Watertown Middle School $689,791 $58,925 $52,090 10.8
IHosmer Elementary School $870,227 $74,727 $33,976 11.2
(Lowell Elementary School $1,024,666 $55,721 $38,171 17.7
ICunniff Elementary School $807,959 $27,324 $18,002 28.9
IPhillips Elementary School $440,149 $26,602 $2,397 16.5
IWatertown Town Hall $415,289 $10,822 $14,350 37.0
Watertown Library $107,030 $16,372 $11,324 5.8
Main Fire Station $260,089 $6,952 $10,166 35.9
North Fire Station $20,842 $1,974 $25 10.5
East Fire Station $121,367 $1,662 $3,522 70.9
Department of Public Works $211,303 $27,949 $7,257 7.3
(Ice Rink $307,539 $31,225 $31,833 8.8
Senior Center $91,624 $1,627 $1,961 55.1
I Investment Grade Audit Cost $37,565 - - -
Total $7,365,245 $473,215 $274,066 15.0
tBF-
Town ot Waterlown Slidell
JCI Proposed Program
CashflowAnalysis at 3. 1996 Net Interest Cost
TOTAL ANNUAL COST ANNUAL SAVINGS ANNUAL
YEAR Debt Service" M&V Total Total CASHFLOW
1 $512,175 $19,800 $531,975 $473,215 $58,760
2 $510,175 $20,394 $530,569 $487,411 $43,158
3 $508,050 $21,006 $529,056 $502,034 $27,022
4 $510,800 $21,636 $532,436 $517,095 $15,341
5 $508,300 $22,285 $530,585 $532,608 $2,023
6 $510,675 $22,954 $533,629 $548,586 $14,957
7 $512,800 $23,642 $536,442 $565,043 $28,601
8 $509,675 $24,352 $534,027 $581,995 $47,968
9 $510,600 $25,082 $535,682 $599,455 $63,773
10 $510,825 $25,835 $536,660 $617,438 $80,779
11 $508,575 $26,610 $535,185 $635,961 $100,777
12 $510,975 $27,408 $538,383 $655,040 $116,657
13 $512,850 $28,230 $541,080 $674,691 $133,611
14 $509,200 $29,077 $538,277 $694,932 $156,655
15 $510,200 $29,949 $540,149 $715,780 $175,631
16 $510,675 $30,848 $541,523 $737,254 $195,731
17 $510,625 $31,773 $542,398 $759,371 $216,973
18 $510,050 $32,726 $542,776 $782,152 $239,376
19 $508,950 $33,708 $542,658 $805,617 $262,959
20 $512,325 $34,719 $547,044 $829,785 $282,741
$10,208,500 $532,033 $10,740,533 $12,715,464 $1,974,931
Debtservice is based on assumption of level payments with a net interest cost of3.19%.
Total principal borrowed of$7,365,000 includes the cost of the Investment Grade Energy Audit.
Debt service is before rebates of$274,066 which will be used to offset early year cashflow impacts.
��AC o rs Town of Watertown
Slide 12
- A�
JCI Proposed Program
CashflowAnalysis at 3.5916 Net Interest Cost
TOTAL ANNUAL COST ANNUAL SAVINGS ANNUAL
YEAR Debt Service" M&V Total Total CASHFLOW
1 $517,775 $19,800 $537,575 $473,215 $64,360
2 $518,675 $20,394 $539,069 $487,411 $51,658
3 $519,225 $21,006 $540,231 $502,034 $38,197
4 $519,425 $21,636 $541,061 $517,095 $23,966
5 $519,275 $22,285 $541,560 $532,608 $8,952
6 $518,775 $22,954 $541,729 $548,586 $6,857
7 $517,925 $23,642 $541,567 $565,043 $23,476
8 $516,725 $24,352 $541,077 $581,995 $40,918
9 $520,175 $25,082 $545,257 $599,455 $54,198
10 $518,100 $26,835 $543,935 $617,438 $73,504
11 $515,675 $26,610 $542,285 $635,961 $93,677
12 $517,900 $27,408 $545,308 $655,040 $109,732
13 $519,600 $28,230 $547,830 $674,691 $126,861
14 $515,775 $29,077 $544,852 $694,932 $150,080
15 $516,600 $29,949 $546,549 $715,780 $169,231
16 $516,900 $30,848 $547,748 $737,254 $189,506
17 $516,675 $31,773 $548,448 $759,371 $210,923
18 $520,925 $32,726 $553,651 $782,152 $228,501
19 $519,475 $33,708 $553,183 $805,617 $252,434
20 $517,500 $34,719 $552,219 $829,785 $277,566
$10,363,100 $532,033 $10,895,133 $12,715,464 $1,820,331
* Debt service is based on assumption of level payments with a net interest cost of 3.5%.
Total principal borrowed of$7,365,000 includes the cost of the Investment Grade Energy Audit.
°- Debt service is before rebates of$274,066 which will be used to offset early year cashflow impacts.
rBF-
Tomof aterto n Slide13
Program Optimization
Impact on Investments
® Energy Conservation Measures Excluded from Budget
Neutral Project:
o Boiler Replacements
® Main Fire Station
® East Fire Station
® Ice Rink
® Senior Center
o Temperature Setback
® Senior Center
o Convert Electric Baseboard Heat
® Ice Rink
Financial Impact:
® Investment Cost: $550,000
Annual Savings: $10,750
F3EAC®N Town of Walenown Siide14
Next Steps
Thank You
Beacon Integrated ti s
P.O. Box 320325
Boston, MA 02132
bgreenblatt@beacon-llc.com
www.beacon-llc.com
,t ,c21v io of ateno Sfde15
imi!
Project Construction Cost $6,778,105
IDeatailed Energy Audit Cost $37,565
Total Cost $6,815,670 'EgMtYinECtiTM`iMUtbebviGo'didBde'SCRP�"bW£6MttkBU>1tl4n6».'.,,:,;.,,...J;, - r,
First Year Energy/Water Savings $462,456 'Emvti'OIn,ECM-NW*tebvsto ExcMtle scope bp EW,Imd'Build Jim
First Year Measurement and Verification Cost $29,800
Estimated Utility Rebates $249,495
Payback 15A0
NNINNOMM
73
ii:9 = 'o iij `o LL o` u o
ECM% Descrip n Description of Measure E c a d t cc c s = ,°c cc - eso
-miii
E 3 c
V _
� � y
I 1 Lighting-Fixture Retrofit
1 2 Lighting-Fixture Controls d d dI d Fd I
I 3 Building Envelope-Weatherization d d d d d d d d d d
4 Building Envelope-Roof/Attic lnsu lation d E$ I d d
I 5 Building Envelope-Window Replacement I
I 6,7,8 Building Controls-Temperature Setback
9 Air Handling Unit/RTU Replacement
10 Condition A-HVAC Mechanical Rehab d I d 5'ro o cam.
11 Air Handling Unit-VFD on Fans d d d d
12 Heating System-Boiler Replacement
13 Heating System-Steam Trap Replacement d d
14 Heating System-Pipe/Valve/Duct Insulation
IS Pumping System-VFD on Hot Water Pumps d d d d d d
16 Repair or Replace Heat Recovery Heat Wheel
17 Electric Baseboard to Hot Water Baseboard I $a
18 Kitchen Hood-VFD on Exhaust Fan d ge d d d I
19 Water conservation d d d d d d E2. I d _°�&' I 1 d
20 Vending Machine Controllers
21 Walk-in Coolers/Walk-in Freezers d d d
22 Energy Efficient Transformers d d d d I
23 Chiller and Dehumidification Control avZ
24 Building Envelope-Window Rim
25 Chiller Replacement
26 Install new AC Units S$
27 Install Lowe Ceiling d
28 Roof Replacement I
29 Reduced Scope High School-Controls
30 Replacement Unit Ventilators d MHi
31 Replace 2nd Boiler at Phillips School «�
Totals
teeand:
d Measure(s)Selected
Measure(s)not included in this package
Project Construction Cost $7,327,680
Deatailed Energy Audit Cost $37,565
(Total Cost $7,365,245 qeq ECM-MdVietbelowlotAdlud'21wOeby Em dBURdar
IFirst Year Energy/Water Savings $473,21$ 91dBoifdlM1g
First Year Measurement and Verification Cost $19,800
(Estimated Utility Rebates $274,066
(Payback 1624
E7 _
ECM 4 DesniPtion of Measure o ` $ ` s = v < = — _ — s_ - — E
E N Ew ` w 2 E
3 3z w w m to 3 � 3 $ oN � N zN $'_ _
O d V N
1 Lighting-Fixture Retrofit
2 Lighting-Fi#ure Controls
3 Building Envelope-Weatherization
4 Building Envelope-Roof/Attic Insulation
S Building Envelope-Window Replacement
6,7,8 BuildingControls-Temperature Setback
9 Air Handling Unk/RTU Replacement �$
10 Condition A-HVAC Mechanical Rehab
I 11 Air Handling Unit-VFD on Fans d d d d
I 12 Heating System-Boiler Replacement d d d d d d d d
I 13 Heating System-Steam Trap Replacement d d
i 14 Heating System-Pipe/Valve/Duct Insulation
I 15 Pumping System-VFD on Hot Water Pumps d d d d d d
I 16 Repair or Replace Heat Recovery Heat Wheel aSw'
17 Electric Baseboard to Hot Water Baseboard d
18 Kitchen Hood-VFD on Exhaust Fan d w d d d
19 Water conservation
I 20 Vending Machine Controllers
I 21 Walk-in Coolers/Walk-in Freezers d d d I
I 22 Energy Efficient Transformers d d d d
I 23 Chiller and Dehumidification Control
24 Building Envelope-Window Film _
25 Chiller Replacement
26 Install new AC Units $..,'
27 Install Lowe Ceiling d
28 Roof Replacement $°
29 Reduced Scope High School-Controls
30 Replacement Unit Ventilators d $3
31 Replace 2nd Boiler at Phillips School 1Z I
Totals
ILM-0:
d IMeasure(s)Selected
.. Measure(s)not included in this package I
Town of Watertown
Energy Saving Performance Contracting
Program Review and Update
SAGO
�`�� x SOLLM 3NS October 2, 2012
PerformanceV 1
General Approach
Design-build energy efficiency project that leverages
existing operating and energy budgets to implement
turnkey energy efficiency and renewable energy
solutions:
® Upgrade building infrastructure and increase building efficiency
® Reduce operating and maintenance costs
® Enhance operating staff productivity
® Implement renewable energy strategies
® Improve indoor air quality
® Enhance core curriculum by integrating innovative technologies
with educational objectives
I3 R ®1v Town of Watertown Slide 2
-verformance Contracting
Illustrative Example — 25966 Operating Cost Savings
100 ------ ---------- ------------------------------
)
Savings used to
pat'debt obligation
75 ----- ------ -----
,.r.._
su 6d
.Y
i50 ----- ---------- ---------- ------
m
a
25 ------ ------------ ---------
Before Program During Program After Program
®Annual Operating Budget ❑Annual Carrying Cost of Program
C)N Town of Watertown Slide
AA
® iz
Winnowing Process to Achieve Best Value
jO identified total technical
❑ I JCI Conducted Detailed Audit potential for energy'
L infrastructure upgrades m`
specified buildings J
Town and School°stAl<eholders
❑
LStakeholder Reviews,and Winnowing reviewed and el"aied projects
based es and economics
Town and School staldeholders:,andJCl
— oject om prehensiv
Stakeholder Final Op#iinizaton optimized pr c eness
to:**Town financial requirements.'
�3 >ACC?NT Town of aleno Slide
ITCIt.il1 L Val
A
Winnowing Process Results
® Total Technical Potential - Original Proposal
® 16 Town and School Buildings
® 145 Energy Infrastructure Upgrade Projects
® $10.6 Million in Energy Infrastructure Investments
® Cashflow: -$1.22 million during first 11 years; -$61,000 over 20
years.
®®® Winnowing - Initial Scope Refinement
® 15 Town and School Buildings (removed Old Police Station)
® 118 Energy Infrastructure Upgrade Projects
® $8 Million in Energy Infrastructure Investments
Cashflow: -$278,000 during first 6 years; $1.9 million over 20
years.
133AC®N Slide 5
n�
e 0 0
Recommended Project - Optimized by Department Staff
Recommended Project
o 14 Town and School Buildings
® 97 Energy Infrastructure Upgrade Projects
o $7.35 Million in Energy Infrastructure Investments
® Cashflow: -$144,281 over the first four years; $1.97
million over 20 years. Utility rebates of approximately
$274,000 used to offset cashflow impact in early years.
��11C®N 7 Slide q
JCI Proposed Optimized
O O p O O i
O
U j
U U ME
»
C i O
F c » » H a d
Description of Measure .� °b b0 0 t
OLU
= s Y =
Gl
Y £ = Q. Z W »
3 _ u a m
0
Lighting-Fixture Retrofit c% sf� s v/✓ e '{ c ' e �!
Lighting- Fixture Controls r cJr c
Building Envelope-Weatherization 1�f G4* p/f ✓/
Building Envelope-Roof/Attic Insulation c
Building Controls-Temperature Setback 14f I 1�f If of lkf I-el / rw✓/
Condition A-HVAC Mechanical Rehab y✓j
Air Handling Unit-VFD on Fans r'/ �? 41 sf '
Heating System- Boiler Replacement ej eQ ✓ ' / �✓j' �✓'
Heating System-Steam Trap Replacement
HeatingSystem- Pipe/Valve/Duct Insulation Re 4 e e 4t? Qe e I S
Pumping System-VFD on Hot Water Pumps
Electric Baseboard to Hot Water Baseboard cf✓ 0
Kitchen Hood-VFD on Exhaust Fan c I 0
Water Conservation 110 le �e �e ce �{ A
Walk-in Coolers/Walk-in Freezers ✓' i ? 0
Energy Efficient Transformers 41 e
Install Low-e Ceiling
Replacement Unit Ventilators �A
ProposedJCI
Recommended Optimized Project
Simple Payback
Facility Project Cost Annual Savings Rebates in Years
(Watertown High School $1,959,803 $131,333 $48,992 14.5
Watertown Middle School $689,791 $58,925 $52,090 10.8
IHosmer Elementary School $870,227 $74,727 $33,976 11.2
(Lowell Elementary School $1,024,666 $55,721 $38,171 17.7
Cunniff Elementary School $807,959 $27,324 $18,002 28.9
IPhillips Elementary School $440,149 $26,602 $2,397 16.5
IWatertown Town Hall $415,289 $10,822 $14,350 37.0
Watertown Library $107,030 $16,372 $11,324 5.8
Main Fire Station $260,089 $6,952 $10,166 35.9
North Fire Station $20,842 $1,974 $25 10.5
(East Fire Station $121,367 $1,662 $3,522 70.9
Department of Public Works $211,303 $27,949 $7,257 7.3
Ice Rink $307,539 $31,225 $31,833 8.8
Senior Center $91,624 $1,627 $1,961 55.1
Investment Grade Audit Cost $37,565 - - -
Total $7,365,245 $473,215 $274,066 15.0
BEACON Town of Watertown Slide
JCI Proposed Program
Cash- low Analysis at 3. 19966 Net Interest Cost
TOTAL ANNUAL COST ANNUAL SAVINGS ANNUAL
YEAR Debt Service' M&V Total Total CASHFLOW
1 $512,175 $19,800 $531,975 $473,215 $58,760
2 $510,175 $20,394 $530,569 $487,411 $43,158
3 $568,050 $21,006 $529,056 $502,034 $27,022
4 $510,800 $21,636 $532,436 $517,095 $15,341
5 $508,300 $22,285 $530,585 $532,608 $2,023
6 $510,675 $22,954 $533,629 $548,586 $14,957
7 $512,800 $23,642 $536,442 $565,043 $28,601
8 $509,675 $24,352 $534,027 $581,995 $47,968
9 $510,600 $25,082 $535,682 $599,455 $63,773
10 $510,825 $25,835 $536,660 $617,438 $80,779
11 $508,575 $26,610 $535,185 $635,961 $100,777
12 $510,975 $27,408 $538,383 $655,040 $116,657
13 $512,850 $28,230 $541,080 $674,691 $133,611
14 $509,200 $29,077 $538,277 $694,932 $156,655
15 $510,200 $29,949 $540,149 $715,780 $175,631
16 $510,675 $30,848 $541,523 $737,254 $195,731
17 $510,625 $31,773 $542,398 $759,371 $216,973
18 $510,050 $32,726 $542,776 $782,152 $239,376
19 $508,950 $33,708 $542,658 $805,617 $262,959
20 $512,325 $34,719 $547,0444 $829,785 $282,741
$10,208,500 $532,033 $10,740,533 $12,715,464 $1,974,931 e
* Debtservice is based on assumption of level payments with a net interest cost of3.19%.
Total principal borrowed of$7,365,000 includes the cost of the Investment Grade Energy Audit.
Debt service is before rebates of$274,066 which will be used to offset early year cashflow impacts.
�3EAC�N Town of Watertom Slide
ProposedJC1
CashflowAnalyszs at 3.5966 Net Interest Cost
TOTAL ANNUAL COST ANNUAL SAVINGS ANNUAL
YEAR Debt Service' M&V Total Total CASHFLOW
1 $517,775 $19,800 $537,575 $473,215 $64,360
2 $518,675 $20,394 $539,069 $487,411 $51,658
3 $519,225 $21,006 $540,231 $502,034 $38,197
4 $519,425 $21,636 $541,061 $517,095 $23,966
5 $519,275 $22,285 $541,560 $532,608 $8,952
6 $518,775 $22,954 $541,729 $548,586 $6,857
7 $517,925 $23,642 $541,567 $565,043 $23,476
8 $516,725 $24,352 $541,077 $581,995 $40,918
9 $520,175 $25,082 $545,257 $599,455 $54,198
10 $518,100 $25,835 $543,935 $617,438 $73,504
11 $515,675 $26,610 $542,285 $635,961 $93,677
12 $517,900 $27,408 $545,308 $655,040 $109,732
13 $519,600 $28,230 $547,830 $674,691 $126,861
14 $515,775 $29,077 $544,852 $694,932 $150,080
15 $516,600 $29,949 $546,549 $715,780 $169,231
16 $516,900 $30,848 $547,748 $737,254 $189,506
17 $516,675 $31,773 $548,448 $759,371 $210,923
18 $520,925 $32,726 $553,651 $782,152 $228,501
19 $519,475 $33,708 $553,183 $805,617 $252,434
20 $517,500 $34,719 $552,219 $829,785 $277,566
$10,363,100 $532,033 $10,896,133 _ $12,715,464 $1,820,331
* Debt service is based on assumption of level payments with a net interest cost of 3.5%.
Total principal borrowed of$7,365,000 includes the cost of the Investment Grade Energy Audit.
a- Debt service is before rebates of$274,066 which will be used to offset early year cashflow impacts.
��AC®zv Town of Watertown Slide10
ProposedJCI
Optimized Project Sa vings as a Percen t of Baselin e Usage
Baseline Post Retrofit Percent Savings of Baseline
Electricity Natural Gas Electricity Natural Gas Electricity Natural Gas
Facility (kWh) (MMBtu) (kWh) (M vmtu) (kWh) (MMBtu)
IHighSchool 1,264,920 13,123 307,738 4,166 24.33% 31.75%1
Middle School 691,248 4,389 251,014 1,346 36.31% 30.67%1
Hosmer ES 759,410 7,937 178,734 2,728 23.54% 34.37%1
Lowell ES 354,720 6,282 103,157 2,751 29.08% 43.79%1
1Cum-df ES 284,400 3,184 87,555 878 30.79% 27.58%1
IPbiDiips ES 175,424 3,926 15,352 1,357 8.75% 34.56%1
ITown Hall 287,640 1,134 38,078 313 13.24% 27.60%1
(Library 595,560 1,637 61,444 327 10.32% 19.98%1
(Main Fire Station 125,880 1,002 19,961 248 15.86% 24.75%1
INorthFire Station 41,239 475 116 125 0.28% 26.32%
East Fire Station 56,344 471 101 108 0.18% 22.93%
(DPW 423,780 5,431 49,258 1,349 11.62% 24.84%
Ice Rink 617,084 1,961 142,684 630 23.12% 32.13%
Senior Center 26,784 195 5,835 48 21.79% 24.62%
Overall 5,704,433_ 51,147 1,261,027 16,374 22.11% 32.01%
SAC®lv Town of w2senownSlidell
�,<,..
Next Steps
® Contract negotiations
Li Kopelman and Paige, supported by Beacon will
negotiate with JCI:
® Terms and conditions
® Final scope of work
Measurement and Verification plan
® Commissioning plan
® Training plan
® Final draft agreement for Council consideration in
December 2012
u Anticipated execution in January 2013
Loan order in February 2013
B nCc�1v Town of Watertown Slidell
Questions
Thank You
Bacon Integrated Solutions
P.O. Box 320325
Boston, MA 02132
bgreenblatt@beacon-llc.com
www.beacon-llc.com
I3EAC�N Town of Watertown
„>., slide 13
JCI Proposed Program
CashEowAnaljrsis at 3.596ATC with 6Month Ban
,:-rO.-TAIL',ANIP4UAL"..COST. -A I�LYAIL'SAVJNGS(.
Debt ser-icem M&V Total Total ril �CASHPLOW '
$183,800 $19,800 $203,600 $118,304 $85,296
2 $524,660 $20,394 $544,954 $487,411 $57,543
3 $527,812 $21,005 $548,818 $502,034 $46,784
4 $532,575 $21,636 $553,536 $517,095 $36,441
5 $531,900 $22,285 $553,160 $532,608 $20,552
6 $530,875 $22,954 $552,454 $548,586 $3,868
. 7 $529,500 $23,642 $551,417 $565,043 $13,626
8 $527,775 $24,352 $554,964 $581,995 $27,031
9 $530,613 $25,082 $563,095 $599,455 $46,360
10 $528,013 $25,&S5 $555,810 $617,438 $61,629
11 $529,975 $26,610 $558,022 $635,961 $77,939
12 $531,413 $27,408 $559,733 $655,040 $95,307
13 $632,325 $28,230 $556,030 $674,691 $118'661
14 $527,800 $29,077 $556,914 $694,932 5133,018
15 $527,838 $29,949 $562,212 $715,780 $153,568
16 5532,263 $30,848 $561,923 $737,254 . $175,331
17 $531,075 $31,773 $561,136 $759,371 $198,235
18 $529,363 $32,726 $564,764 $782,152 $217,388
19 $532,038 $33,708 $562,808 $805,617 $242,809
20 $529,100 $34,719 $563,819 $829,785 $265,986
['I]Year I reflects debtservice,and energysaNAngs during construction- Debt service is based on 6 month BAN at 1.5%
net interest cost and 19.5 yr Bond at a net interest cost of 3.5%.Savings in Yr.I reflects 25% of the annual
performance guarantee of energy savings during the construction period. Yrs 2-20 reflect
annual debt service, annual costs and guaranteed energy savings, post project construction.
Total principal borrowed of$7,365,000 includes the cost of the Investment Grade Energy Audit-
Debt service is before rebates of$274,068 which will be used to offset early year Cashilow impacts. Slide lea
P.O.Box 320325
pg-7 n ®R T Boston,NIA 02132
N1uZuunu:u aor.0 ilionn �bim 617-469•2172
�T sa eFax: 617.419.1163
BETH S.GREENBLATT
Alanaging Dirertar
December 5,2012
Ms.Raeleen Parsons,MCPPO
Director of Purchasing
Town of Watertown
149 Main Street
Watertown,MA 02472
RE: Owner's Agent Services
Dear Ms.Parsons:
Attached please find Beacon Integrated Solutions proposal to provide Professional Owner's
Agent Project Management Services in support of the Town's performance contract with
Johnson Controls.
Beacom prides itself as being an owner's advocate, and does not provide professional services
to Energy Services Companies thereby eliminating any potential for conflict hi openly and
objectively evaluating vendor proposals, work products or assisting/overseeing the
implementation of performance based energy programs. Beacon is a Massachusetts-based
woman-owned firm, is in good standing with the Commonwealth of Massachusetts and
carries all appropriate and statutory insurance coverages. Beacon is pleased to report that it
has recently been selected by the Massachusetts Division of Capital Asset Management,
Office of Facilities Maintenance and Management, as a qualified firm under the Energy
Advisory Services contract.
We stand ready to assist you in implementing this exciting project and welcome the
opportunity to discuss our qualifications in further detail. Thank you in advance for your
consideration. If you have any questions, or need additional information on our credentials
or client references,please do not hesitate to contact me directly at 617-469-2172.
Best personal regards,
J66d cv, oiwe+rA ff
Beth S. Greenblatt
www.BFAcoN-LLC.com
DETAILED TABLE OF CONTENTS
DETAILEDTABLE OF CONTENTS............................................................................................. 1
1. STATEMENT OF UNDERSTANDING OF THE PROJECT.....................................I.......2
DETAILED SCOPE OF SERVICES..........................................................................................5
2.1 OPTIONAL SUPPORT SERVICES ......................................................................................... 5
2. PROJECT STAFF AND STAFF BACKGROUNDS................................I.........................9
3. SIMILAR EXPERIENCE..........................................................................I.......I................ 11
4. REFERENCES.....................................................................................................................12
5. OTHER PERTINENT INFORMATION-SELF EVALUATION................................. 14
6. PROJECT FEES..................................................................................................................15
7. APPENDIX A—RESUME.................................................................................................. 16
Own er s Agen t Support&Mc es
ForPerPormance ContmaProjeetMonagement
l?/tK/10I2
1. STATEMENT OF UNDERSTANDING OF THE PROJECT
Beacon Integrated Solutions ("Beacon') is pleased to present this proposal to the Town of
Watertown ("Watertown") to provide follow-on Owner's Agent support services for
Watertown's performance contract with Johnson Controls Inc.("JCI").
Watertown seeks support from an experienced consultant with direct expertise in supporting
municipalities engaged in performance contracting with an Energy Services Company
("ESCO") and is considering optional services supporting the overall implementation of the
performance contract with JCI in the following areas:
• Contract and statutory compliance with particular regard to the project schedule and
document review and approvals;
• Coordination of construction activities including, but not limited to, regular project
meetings and advising the Town staff in regard to change orders and changes in
project activities;
• Contingency management — advising the Town in regard to any Town-controlled
contingencies;and
• Reporting of project progress, schedule maintenance and management, and advising
on project changes and updating schedules.
Beacon understands the key issues in dealing with the ever-increasing complexity of energy
utilization in facilities owned and operated by municipalities, as well as the infrastructure
that delivers this energy. Beacon is an independent Massachusetts woman-owned energy
management solutions firm specializing in energy procurement, energy management,
renewable energy assets and energy performance contracting strategies.
Beacon prides itself as being an owner's advocate, and does not provide professional services
to ESCO's;thereby eliminating any potential for conflict in openly and objectively evaluating
work products, in developing and negotiating commercial agreements, and in assisting or
overseeing the implementation of the projects.
We offer our clients unparalleled certainty of process in solution development. As such, we
develop and manage the implementation of leading-edge energy solutions for public sector
and private clients including energy efficiency improvements, renewable energy solutions,
performance contracting and demand management programs. Our clients have benefited
from our proven experience by optimizing energy economics through infrastructure
upgrades, new renewable energy installations and procurement strategies. Beacon's
principals have been directly involved in the energy services and solutions development
Owner's Agent Support Ser v2cw
For Performance Contract Pro/ectManagement
124612012
Page 2
arenas for thirty(30)years,have specific and direct experience developing and implementing
performance contracting projects, and have managed performance-based energy efficiency
programs for local public utilities.
Beacon regularly draws on our strategic alliances of experienced project technical,operational
and finance professionals,engineers and energy outsourcing specialists with specific expertise
in energy efficiency, performance contracting and commodity advisory and procurement,
Beacon utilizes these external resources, as needed, to complement the expertise of its
principals to ensure that our clients receive best quality and high value services.
Watertown seeks to engage a consultant with specific expertise and recent experience as an
Owner's Agent helping municipalities and school districts develop and negotiate a
performance contract to be delivered by JCI. Beacon's experience is both relevant and recent.
Our experience helping clients throughout the lifecycle of performance contracting
implemented under M.G.L. Ch. 25A is demonstrated by our current work with Watertown
and several other Massachusetts client engagements including:
► Massachusetts Department of Energy Resources, Boston MA (representing 23
municipalities)
► Town of Georgetown,MA
► Town of Gill,MA
► Town of Charlemont,MA
► Town of Orange,MA
► Town of Greenfield,MA
► Town of Leverett,MA
► Town of Montague,MA
► Town of Belchertown,MA
► Town of South Hadley,MA
► Town of Sunderland,MA
► Town of Deerfield,MA
Beacon's specific experience and knowledge of Watertown's program is highly
comprehensive. Beacon has been an active member of the Watertown project team, sitting
on Watertown's side of the table,helping navigate the project to its anticipated approval. We
have supported the Town since the early stages of the project, providing strategic guidance,
analysis, consult and direction with respect to project development, engineering analysis,
scope definition, project optimization, and stakeholder support and presentations. Beacon is
uniquely positioned to support Watertown as a continuation of our successful engagement
with Watertown.
Owner's Agent Support Services
For Performance Contract Project Management
IZW M17
Page 3
Benefits to Watertown,
Beacon is uniquely qualified to help Watertown achieve its goals. Key elements of our
unique qualifications for this role are:
► Our first hand knowledge of Watertown's performance contract with JCI, including
project development, engineering and design review, energy conservation measure
specification and scope definition,and stakeholder support;
► Our specific experience working With Town and School stakeholders including
providing reports and presentations to Town/School joint project team, Town hoards
and Councils;and
► Our decades of experience working with owners and vendors on performance-based
energy efficiency projects,
Owners Agent SuppottSerWcra
For Performance Contract Project Management
12/QS/24912
Page 4
DETAILED SCOPE OF SERVICES
2.1 OPTIONAL SUPPORT SERVICES
A. Proiect Management Sunnort:
As an extension of our prior work with Watertown, Beacon proposes to provide project
management support for Watertown's performance contract with JCI. Beacon has direct,
relevant and recent experience managing comprehensive infrastructure projects in
support of energy savings performance contracts as well as complex infrastructure,
H.V.A.0 and controls construction projects.
More specifically, Beacon has direct experience supporting Watertown's performance
contract with JCI from project development,design,engineering,scope development and
specification, and stakeholder communications. Because of our current and on-going
work supporting Watertown, Beacon is in a unique position to provide a seamless
transition from project development and specification to full scope construction through
commissioning, start-up, commercial operation and final completion. Beacon's prior and
current work supporting Watertown ensures that the on-going implementation efforts of
JCI can proceed without any delays or re-education efforts. Unlike others, Beacon does
not require a transition or learning period. We are currently fully engaged, and will
remain fully engaged through project completion.
With over thirty years of direct experience managing complex and diverse energy
efficiency and infrastructure projects, we understand the best ways to implement such
projects in harmony with our client's daily operations. As an owner's representative,
Beacon has been responsible for overseeing the implementation of numerous energy
savings performance contracts and other energy infrastructure projects in the most
precarious environments while maintaining high customer satisfaction and operational
excellence.
Beacon will remain constant throughout the implementation. Specifically, Beth
Greenblatt, Beacons Managing Director will serve as project manager and lead project
manager. Beacon will be highly engaged in the planning,ensuring that the challenges of
the projects are anticipated and planned for. By thinking ahead and educating JCI, its
subcontractors, Watertown staff and stakeholders, we will ensure process certainty
resulting in project completion that is on-time and on-budget.
Beacon will demonstrate our leadership role on behalf of Watertown making certain that
Watertown's financial and operational interests are best represented, while maintaining
Owner's Agent Support Services
For Performance ContrsctPr%ctMenagement
1210512012
Page 5
an amicable, but forcefl relationship with JCL In particular, in instances where
positions relating to construction activities become adversarial, we will facilitate a
resolution to the satisfaction of Watertown.
Our proposed scope of work includes:
• Contract Administ n•
Provided Beacon supports Watertown in developing, negotiating and facilitating
execution of the EMSA, Beacon would be best positioned to ensure contract
compliance on behalf of Watertown. Beacon will serve as the contract
administrator. The EMSA was developed with specific process requirements with
respect to project submittals, approvals, invoicing and scheduling, among other
construction obligations. Beacon is best positioned to support Watertown in
managing the EMSA since these critical provisions were developed and negotiated
by Beacon on behalf of Watertown.
With respect to statutory compliance obligations of Watertown, Beacon is well
positioned to support the Town. Beacon is uniquely recognized in the
Commonwealth as a practitioner and leader of projects implemented under MGL,
ch. 25A. As such, Beacon will support Watertown to ensure that all regulatory
requirements and reports are submitted to the appropriate agencies in a timely
manner.
• ProjectSchedude:
The Project Schedule and Project Payment Schedule are contractually linked to
ensure that pre-construction and construction activities are completed in a timely
and efficient manner and as agreed upon by Watertown, Payments to JCI will be
authorized based on verified performance.
Beacon will manage the Project Schedule making certain that both Watertown
and JCI comply with the scheduling requirements for submittals and approvals,
and pre-construction and construction requirements. Further, Beacon will
support Watertown's staff in setting construction expectations with stakeholders,
communicating the schedule, and reporting and doamienting any agreed upon
Project Schedule changes.
• Document Review and Annroval:
JCI will provide Watertown with ECM submittals including design documents,
ECM specifications, equipment and product samples and other materials for
Owner's Agent Support Services
FW&formance ConuactPr%tMenagement
121012012
Page 6
Watertown review and approval. Such process is defined in the EMSA and is
time bounded.
Beacon will review each submittal and provide the necessary examination of the
submittal to ensure that it meets, at minimum, the requirements set forth in the
EMSA. Further, Beacon will collaborate with appropriate Watertown staff to
ensure that the design, specification, equipment, et al, conform to existing
equipment and operational requirements. Beacon will present its professional
recommendations to Watertown for contractual approval of all design,
specifications, equipment and materials before the ESCO proceeds with ordering
equipment.
• Coordination of Construction Activities:
Beacon will coordinate pre-construction and construction activities with the
relevant Watertown staff to ensure that the activities are undertaken properly,are
consistent with Watertown policies, and are consistent with the design intent
defined in the EMSA.
Beacon will be mindful to observe that any value engineering by JCI is
appropriate. Value engineering is an effective technique for reducing costs,
increasing productivity and improving quality. Typically, performance contracts
require design changes during the construction phase. Beacon will review with
JCI the technical, operational and economic impact to ensure that any design
changes enhance the project performance, and not compromise the overall
project.
Beacon will coordinate with local facility staff any requirements by JCI for storage
of equipment or materials. As Watertown is keenly aware, when school is in
session,some construction activities will necessarily need to be completed during
unoccupied hours. Beacon will facilitate the necessary entry approvals,including
CORI, and ensure all stakeholders impacted by such construction activities are
well informed.
Further, Beacon will facilitate regular project meetings/conference calls with JCI
and the designated Watertown project team. Such project meetings/conference
calls will include a "look back"to document scheduled performance and identify
any outstanding issues or schedule impacts as well as a "look ahead" to define
upcoming activities and address required notifications and other obligations.
During these sessions,punch list items and potential change orders requirements
will be recorded and resolved.
Owner's Agent&pp ort SerW c es
For Performance Contract ProjectMenegement
121012012
Page 7
• Contingency Manaeement
Beacon will provide leadership in making certain that fiends are only drawn to
improve the project's operational performance, or to find needed projects not
previously identified, and as approved by Watertown. Beacon will ensure that
contingency expenditures both under Watertown or JCI control are properly
documented and authorized.
e Reporting
Beacon will ensure that project meeting minutes are prepared by JCI in a timely
manner, reviewed and approved by the Watertown project team for accuracy,
posted and provided to the designated Watertown staff summarizing the status of
the project, schedule changes and updates, and major issues or actions requiring
documentation,
• Meetings
Beacon will continue to serve as an active member of Watertown's project team.
To that end, Beacon will participate in project meetings either directly or via
telephone conference as determined by the level of information and decision
making anticipated for the particular project meeting. Beacon will work with JCI
to establish a pre-meeting agenda designed to enable all necessary stakeholders to
participate as their interests dictate. Project meetings should be designed to
leverage, inform and educate Watertown stakeholders, and not overwhelm them
with unnecessary business meetings. Beacon will support Watertown in assessing
those priorities.
• Ensure Coordination with Financial Staff and Consultants
Beacon understands the critical nature of managing financial expectations of the
performance contract with respect to finding cashilow requirements during
construction and ultimately securing long-term financing. As demonstrated
during the development stages of the project, Beacon will continue to work with
the Town Treasurer/Collector, financial advisor and members of Town
Committees as directed to ensure that the financial aspect of the project are
managed and communicated effectively and timely.
OwnerMgent Support&Mces
ForPerformance ContractProfectMenagement
M0512012
Page 8
2. PROJECT STAFF AND STAFF BACKGROUNDS
For this engagement, Beth Greenblatt of Beacon Integrated Solutions will have primary
responsibility to provide the full scope of service to Watertown for the project management
support.
Professional Primary Responsibility Years of Experience
Beth Greenblatt • Prime Contact/ 30 years serving MA residential, commercial,
Managing Director, Project Manager industrial and institutional clients with energy
Beacon Integrated Solutions • Project Management efficiency and renewable energy solutions,
P.O.Box320325 commodity advisory and market analysis and
Boston,MA 02132 solution development.
617-469-2172
Nv v.beacon-llc.com
Resume is provided in
Appendix A.
Managing Director of Beacon and Primary Project Manager for Watertown. Ms. Greenblatt
is a recognized professional with thirty (30) years of business, marketing and management
experience primarily in the energy services industry. Ms. Greenblatt has held various senior
strategic management and corporate communications positions in regulated and unregulated
energy firms, a management consulting firm, several distinguished national energy services
companies,and a national non-profit energy research and development organization.
Ms. Greenblatt's professional background includes a decade serving in senior management
roles at Boston Gas Company (now known as National Grid) in the areas of energy
management, customer research and market planting. While at Boston Gas Company, Ms.
Greenblatt was responsible for the development, implementation and evaluation of demand-
side management programs valued at over $30 million per year, oversight of the Company's
qualitative and quantitative research activities, and diverse business planting and analysis
functions. In this capacity, Ms. Greenblatt was directly involved in developing and
implementing comprehensive energy efficiency programs designed specifically for public
sector customers within the 74 cities and towns served by the utility.
While at Noresco, a leading national energy services firm, Ms. Greenblatt was actively
involved in helping clients achieve savings and produce high performance buildings through
energy savings performance contracting. Previously, as Director of Marketing and Special
Programs for Mass-Save, Inc. and Xenergy, Inc, Ms, Greenblatt developed and implemented
energy auditing, efficiency and educational programs designed specifically for diverse
customer facilities. Ms. Greenblatt understands how to develop, implement and evaluate
Owner's Agent Support Servloes
For Performance ContrectProjectManagement
12105M12
Page 9
programs that pay for performance. Ms.Greenblatt is a graduate of Boston University with a
Bachelors degree in Political Science and Mathematics, and is a certified Massachusetts
Energy Auditor.
Resume is provided in Appendix A.
Owner' Agent Support Servlces
ForPerformanne ContmetPr%tMenagement
1210512012
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3. SIMILAR EXPERIENCE
As presented below,Beacon has direct relevant experience providing comprehensive Owner's
Agent support services for performance contracting projects. Our local government client
base in Massachusetts since 2004 for the services under consideration by Watertown includes
the following:
Cities and Towns in Massachusetts:
• Town of Charlemont • Town of Orange
• Town of Deerfield • Town of Sunderland
• Town of Gill . Town of South Hadley
• Town of Greenfield • Town of Georgetown
• Town of Leverett • City of Concord,NH
• Town of Montague • Concord School District,NH
Snecific Proiect Examples
• In 2010, Beacon was selected by the Massachusetts Department of Energy Resources
("DOER") through a highly competitive procurement process to provide Owner's
Agent Technical Services to twenty (20) municipalities and school districts in
Western Massachusetts under a Department of Energy grant funded by the American
Recovery and Reinvestment Act of 2009. In 2012,DOER assigned three(3)additional
municipalities, including Watertown, to Beacon to provide the same critical
performance contracting support services.
Beacon's responsibilities under the DOER engagement include full scope technical
support from project origination,work scope assessment, technical analysis, contract
development and negotiations, construction management, financing and
commissioning support.
Owner's Agent Support Services
For PerformanceContrectPro ctMenegement
12,WI2012
Page 11
4. REFERENCES
19900WOM",1
Commonwealth of Mass Elise Avers Full service Owner's Agent
Technical
E Fellow Support under an Energy Department of Energy Resources Ms.
Efficiency and
100 Cambridge Street (617)626-7370 Conservation Block Grant funded by ARRA
Boston,MA elise.avers@state.ma.us
Town of Orange s.Kathy Reinig Full service Owner's Agent Technical
6 Prospect Street Board
0 Selectmen Support on a$1.3 million performance
., f Orange,MA 01364 (978)544-2194 contract
kathy.orange@earthliuk.net—'-___
Town of Sunderland Ms.Margaret Nartowlez Full s:rv:,ceOwner's Agent Technical
Suppo
rt
t o
12 School Street Town Administrator 0 $400,000 performance contract
Sunderland,MA 01375 (413)665-1441
townadmin@townofsunderland.us
Town of Deerfield Mr.Bernie Kubiak Full service Owner's Agent Technical
8 Conway Street Town Administrator Support on a$500,000 performance contract
South,Deerfield 01373-1021 (413)665-1400
bkubiak@town.deerfield.ma.us
Town of Gill Mr.Ray Purington Full service Owner's Agent Technical
325 Main Rd Town Administrator Support on a$275,000 performance contract
GUI,MA01354 (413)863-9347
admiiiistrator@giUmass.org
Town of South Hadley Mr.Richard Harris F,P M[)Service Owner's Agent Technical
116 Main Street Town Planner Support on a$1.9 million performance
South Hadley MA 01075 (413)538-5011 contract
rharris@southhadleymasov-1 -1
Town of Georgetown Mr.Michael Farrell Full service Owner's Agent including
1 Library Street Town Administrator technical/commercial support,qECB grant
Georgetown MA 01833 (978)352-5755 application support and project/construction
MForreU@georgetoNvnma.gov management on a$2.2 million performance
contract.
List of Projects
Beacon has provided performance contracting support to municipalities, school districts and
regional school districts, in addition to large scale engagements with DOER, Franklin
Regional Council of Governments and the Pioneer Valley Planning Commission in more than
40 communities across the Commonwealth. To that end, Beacon has worked, on behalf of
the client, with many of the marquee ESCOs serving the Massachusetts market. A sampling
of several recent projects,in addition to those listed above,include:
Owner'a Agent Support SeMces
For Performance Contract ProjectMenagement
IZWM]2
Page 12
mou
Town of Georgetown
I Library Street ABM(formerly LILAC
Georgetown,MA 01833 Mechanical)
Town of Leverett
9 Montague Road I Siemens Industry
Leverett,MA 01054
Town of Belchertown
P.O.Box 670 Siemens Industry
Belchertown,MA 01007
_)
Reading Public Schools
82 Oakland Road NORESCO
Reading,MA 01867
City of Northampton
240 Main Street ConEdison Solutions
Northampton,MA 01060
City of Concord
311 North State Street ConEdison Solutions
Concord,NH 03301
Town of Wayland
41 Cochituate Road I Ameresco
Wayland,MA 01778
Ownerl;Agen t Support Services
For Performance Contact Project Management
12IV512012
Page 13
5. OTHER PERTINENT INFORMATION - SELF EVALUATION
- COMPARATIVE CRITERIA - (- BEACON SCORE
A. Complexity of Team I Highly Advantageous. Beth Greenblatt, Beacons founder and Managing Director will
Composition. serve as the project/client manager and have full responsibility for commercial
contracting and project management support.
B. Successful Massachusetts Highly Advantageous. Beacon is proud of its leadership position in providing Owner's
Experience. Agent services in support of performance contracting projects in Massachusetts trader
M.G.L.Ch.25A. We have the most comprehensive portfolio of clients in Massachusetts
who have benefited from Beacons direct experience. Moreover, Beacon is an Owner's
Agent for the Commonwealth of Massachusetts,Department of Energy Resources. Under
this engagement, Beacon is supporting 23 municipalities involved in performance
contracting projects.
C. Relationships with ESCOs Highly Advantageous. Beacon has not,and has no plans to work directly for an ESCO os
a consultant. Beth Greenblatt,has never worked for an ESCO as a consultant,end has not
worked as an employee of an ESCO since September 2002. Ms. Greenblatt has never
worked for JCI in any capacity.
D. Technical competence, Highly Advantageous. Beacoa s staff have decades of experience in performance based
qualifications and experience energy efficiency programs, and in helping clients assess, implement and evaluate the
with similar projects. success of their efforts. Our career experiences helping clients balance risk with cost In
implementing economically viable performance based energy projects, including
performance contracts,is unmatched in the industry. Beth Greenblatt has been a leader
hs the energy services industry since the early 1980's.E. Ability to transition into the Highly Advantageous, Beacon has been a key member of Watertown's project team
project for a timely since the technical analysis stages of the project. Beacon has been involved in the
completion. development,engineering and project scoping phases of the project. Beacon therefore Is
uniquely positioned to continue supporting the Town without any transition or
_Interruption.
F. Project management Highly Advantageous. Beacons proposal clearly end concisely describes our approach to
approach and the adequacy commercial contracting and project management support. Our experience working for
and availability of staffing municipalities in MA with similar services enables its to competently and professionally
and in-house resources. support Watertown. A cornerstone to the success of our firm is our ability to remain
client-focused, meet project requirements on-time and on-budget and deliver beyond
expectations. Beth Greenblatt stands ready to support Watertown in implementing this
comprehensive,high profile performance-based energy infrastructure project with JCI.
Ossver's Agent Support Services
For Performance Con twctPmfect Man agent ent
12012012
Page 14
G. PROJECT PEES
Beacon offers the following fee quotation for the tasks sought for this project. The proposed
fees for the tasks presented below cover only the professional services provided by Beacon's
principal, Beth Greenblatt. For this engagement, we offer Watertown a discounted
professional rate for Beth Greenblatt of$155.00 per hour.
We are certainly willing to discuss and modify the estimated hours for the tasks presented in
this proposal, and will make adjustments to this fee structure based on a modified scope of
work. The following table presents the tasks for Watertown s consideration, along with an
estimate for professional time required and an associated fee.
STATED TASKS ESTIMATED
(Including all subtasks)
HOURS NOT-TO-EXCEED FEES
Optional Support Services,
Project Management Support 35 hours/month $5,425month
Owner's Agent Support SerW e a
ForPerformance Contract Pro/ectManagement
M0512012
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7. APPENDIX A — RESUME
Owner's Agent Support Services
ForPedormance ContractPr%ctMenagement
1?/Q MI2
Page 16
BETH S. GREENBLATT
PROFESSIONAL EXPERIENCE
BEACON INTEGRATED SOLUTIONS Boston,MA
Managing Director Present
Beacon Integrated Solutions is it wonna l-omied energy management services first that provides client.centfic energy opthnlzation
solutions by helping clients opthn ize their energy econonlcs through improved price certainty,energy efficiency,perfornnance contracting
niamagenient and support, supply reliability and optinlzed energy infiashochire. Beacon specializes in energy procurement, energy
management,energy savings performance contracting mid renewable energy technologies and strategies.
NORESCO Westborough,MA
Director of Marketing anti Corporate Communications 2000 to 2002
Recognized leader of energy infrastructure solutions In diverse vertical markets
• Served on the perfornnaee contracting management team developing client solutions designed to achieve guaranteed energy
savings mid produce high performance buildings.
• Leveraged a nvo•decade old solid brand to reposition the final's niarket strategy with a focus on key core competencies critical
to the deregulated energy niarletplace.
• Managed re-branding campaign including tilt design and huplemeatation of a slow corporate logo across all media and
conunanications strategies. Created all new corporate collateral supporting business development and direct sales activities.
• Developed mid implemented strategic media,government and public relations programs including fill oversight responsibility
for all crisis conmmnications,management of news releases,bylines,features and case studies,aid lobbying.
• Directed all corporate competitive analyses and business research to strengthen One final's position nationally by understanding
key market players,geographic penetration potential,opportunistic market and business events, strategic partnerships/alliance
opportunities, regulatory and legislative policies. Conducted ongoing market intelligence research and customer satisfaction
studies.
• Directed the redesign of the corporate website including navigational huprovenents, new content development, customer
interface fiuetions,customer relationship niamagenient,graphic aihaucennents mid flash athuation.
American Management Services Waltham,MA
Director of Marketing and Public Relations 1999102000
Management services firm targeting small and cold-sized businesses with Annual revenues of$10 to$200
million
• Repositioned this regional nianagenient services company as tie nation's prenler consulting and profibiniphementatioa services
fine.
• Launched national expansion effort through a cooperative co-branded small business partnership entitled"Partner America"with
various federal government agencies, including the U.S.Small Business Administration, U.S.Department of Conmerce,U.S.
Conference of Mayors,U.S.Department of Transportation and the Export-hnport Bank of the United States.
• Developed and managed corporate govenmeent affairs and public relations activities. Managed partner contract relations,and
launched national conmmnications progrann including collateral creative design and unplenientation,and publicity and outreach.
ServicEdge Partners,Inc., (a National Grill Company) Burlington,MA
Vice President of Marketing and Sales 1997t01999
Northeast energy services company specializing In heating,ventilation mil cooling services
• Spearheaded the development And management of An integrated strategic retail nnnketing effort in a new business enterprise by
leveraging tilt brand position of tilt parent and subsidiary companies, and transferring the established brand equity to the new
business.
• Developed and implemented n multi-year sales program to generate S4MM of first year sales and S6.7MM hi Ammal sales ill
subsequent years. Hired sales manager, developed pay-for-performance sales compensation programs and successfully built
sales organization with domain connpetencio to achieve revenue goals.Developed And executed customer retention programs.
• Managed All aspects of$2 nlllion mutual nnarketing/conmumications programs including brand development,advertising,direct
marketing, collateral development, interactive development And publicity. Developed strategies and tactics to achieve market
dominance in business product categories, resulting lit a 50,000-customer base within the first 8 months of operation, slid
generating first year revenues of$7 nrillion. Directed the design of a website targeted at consumers and businesses.
• Developed channel marketing and sales strategies to attract market influencers,consumers turd businesses.
• Luplennented total outsourced solution for 24/7 custorner call center, including defiling CRM protocols, operational delivery
requirements,process and perfornnance metrics and vendor selection process. The fnn's customer call center was centric to
operational excellence and customer acquisition.
• Created a cross-market public relations campaign positioning the new business enterprise and creating a local,consumer-oriented
business presence.
Gas Technology Institute/New England Gas Association Chicago,IL
New England Regional Account Manager 1995 to 1997
National research and development organization for the natural gas Industry
• Led the effort to hnegrate nationally offered natural gas R&D Activities, technologies and resources into the finure business
strategies of New England gas utilities.
• Developed technology business plan for gas utility executives focused on developing technology strategies And tactics for the
industry, And implemented field demonstration trials And programs leading to technology Adoption, cost savings And revenue
gals.
• Developed and nuvtaged extensive quantitative and qualitative customer research projects Including market segmentation studies,
customer satisfaction And consumer product preference research.
Boston Gas Company,(a National Grid Company) Boston,MA
Director of Energy Management;
Director of Customer Research and Market Planning 1988 to 1995
Largest regulated natural gas company in New Euglnud serving over 800,000 customers
• Led the gas utility industry in New England in developing, implementing and evaluating the integration of multi-million dollar
demand-side energy resources Into traditional supply-side planing. Facilitated consortium relationships with Now England
natural gas,electric and water utilities And non-utility parties.
• Developed And tuarnaged a unique, nationally recognized natural gas load research progran utilizing statistical methods and
econometrics,including nn ltivariAte analysis and discrete-choice modeling.
• Managed multiple vendors delivering diverse services including: tiwkethng/communications, customer call center, dircet
marketing,nnanagetuent consulting and implementation,equipment installation,engineering And CRM.
• Successfidly hired,trained,managed And developed staff for various corporate and field positions,Including:product development
and Implementation, technical support And engineering, retail marketing, CRM and quantitative and qualitative market research
set-vices.
• Represented Boston Gas Counpany mid other regional natural gas distribution companies as an expert witness before the
Massachusetts Department of Energy and Telecommrumications And Energy Facilities Siting Council, Nevv Hampshire Public
Utilities Cornnission and Rhode Island Public Utilities Commission in dozens proceedings, Including rate, Integrated resource
mAnagennent and dentand-side ruanagentent procetdmngs.
Prior employment includes positions in Marketing/Cotrmmnications,Public Relations and Govennnent Affahs
within the Energy Service Company mmket,as well as regulatory and legislative internships advocating public
policy changes.
EDUCATION,TECHNICAL TRAINING AND DIRECTORSHIPS
• Boston University,Boston,MA. BA It Political Science and Mathematics.
• Certified Energy Auditor,Coninnonwealth of Massachusetts
• Former Trustee,Central New England Chapter of the National Multiple Sclerosis Society;member of the Government Relations and
Communications Cournnittees.
AFFILIATIONS
• Member of the Northeast Energy and Conunerce Association
• Mennber of the National Association of Professional mid Executive Women
• Member of the Massachusetts Chapter of the Energy Satiices Coalition