Opening Request for Qualifications - SB Pinhook WTP Guaranteed Savings Contract - Reynolds Construction

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GUARANTEE MANAGEMENT CITY OF SOUTH BEND: PINHOOK WTP IMPROVEMENTS PROJECT GUARANTEED SAVINGS CONTRACT GUARANTEE MANAGEMENT GUARANTEE APPROACH & HOW IT MEETS IC 36-1-12-5 A. Explain how the Provider plans to address the guarantee for this type of project and how it meets Indiana requirements of IC 36-1-12.5. In Indiana, capital costs avoided may be identified as a financial benefit that helps to form the statutory justification for implementing a guaranteed savings contract (“GSC”). Capital costs are referred to statutorily as “related capital expenditures.” These costs, by definition, must satisfy three essential requirements in order to be used as cost reductions that offset the price of a GSC. Those requirements include: 1. the customer’s reasonable belief such capital costs will be incurred during the guarantee term, 2. appropriate documentation of capital costs using specified standards, and 3. a causal link between the capital costs avoided and the conservation measures (“ECMs”) being implemented. All the savings categories can be verified by stipulating the savings using documented engineering standards to model the operating characteristics. These engineering standards include. a. Lifecycle costing b. R.S. Means estimating c. Historical data d. Manufacturers data As defined in the statute, stipulated savings are savings which the City/utility believes are reasonable and are documented by industry engineering standards using a single method or combination of methods. For capital intensive projects like this project, stipulating savings are fully compliant and meet the requirements of I.C. 36-1-12.5. Savings are calculated using assumptions, variables, and equations which will be shown on actual models and spreadsheets. These spreadsheets will provide total annual savings, including energy, operational and capital costs avoided. These savings will be stipulated between the parties throughout the term of the performance guarantee. METHODOLOGY FOR BASELINE B. Describe the methodology used to compute the energy baseline. Baselines can be developed in several ways to include analyzing the actual utility bills or modeling the electrical consuming devices or by using historical data from the manufacturer’s nameplate data. The Reynolds team will collect data (primarily horsepower and motor efficiency) from manufacturers nameplates of equipment required to process the related flows. This data will be inputted into a spreadsheet that will calculate baseline energy consumption and cost ENERGY BASELINE CALCULATION EXISTING SYSTEM Electric Power Usage Utility Fee = $ 0.05 /kW-hr Item# UnitsBHP/UnitMotor Eff.Hrs/DayDays/WkWk/Year$/Yr WWTP TREATMENT @ 2.0 MGD Primary Pumps445.091%24.0752$64,428 Primary Screen212.091%24.0752$8,590 Aeration Rotors440.091%24.0752$57,270 WAS Pump18.088%24.0752$2,978 Anaerobic Mixer210.088%24.0752$7,445 Clarification11.5083%24.0752$592 Addl. Return Sludge Pumping115.090%24.0752$5,459 Disinfection18.090%24.0752$2,911 Sludge Drying120.090%24.0752$7,279 $156,953 Annual Cost Collection Pumping @ 2.0 MGD Pumps259.394.1%10.0752$17,105 $174,059 TOTAL ANNUAL Page | 50