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51SOUTH BEND, INDIANA GSC <br />SECTION 7 <br />GUARANTEE MANAGEMENT <br />A. PROJECT GUARANTEE AND INDIANA CODE 36-1-12.5 <br />Indiana Code 36-1-12.5 defines qualifying conditions for use of a guaranteed savings contract as <br />a procurement method. Fundamental to the definition is qualifying conservation measures i.e. the <br />scope of work. The scope of this project will primarily involve constructing a new 3 million gallon <br />equalization basin, new CSO diversion structure, new interceptor sewers, a 40-mgd influent pump <br />station, a control building, and equipment upgrades to Final Clarifiers 1, 2, and 3. <br />This project meets the requirements of IC 36-1-12.5 because it invests in your existing system and <br />customers by reclaiming water lost out of the system and ensuring process integrity. It does not <br />increase your customer base, expand your system reach, or include other elements that would be <br />classified as for growth. <br />The work itself contains three qualifying conservation measures. The capture of discharged CSO is a <br />system alteration. The clarifier improvements are a technology upgrade. Both work elements lowers <br />O&M costs that benefit either the utility, other City departments, or your customers directly. <br />Kokosing plans to address the guarantee with calculations for energy savings, O&M savings, and <br />Future Capital Expenditure Savings whose total exceed the cost of the project, plus engineer and <br />financing costs. <br />B. ENERGY BASELINE <br />The energy baseline is the energy used by the facilities under existing conditions. Based on the <br />project understanding, we expect to find energy savings in the addition of VFDs to new motors. <br />During preconstruction, we will work with your Engineer to understand the changes affecting overall <br />electricity draw. If the potential for significant energy savings exists, the energy baseline will be <br />calculated and expressed both in kWh and in dollars/year using recent utility bills and information <br />about the existing equipment, provided by the Owner, the Engineer, or the equipment vendor. For the <br />mechanical equipment that is part of the project (i.e. new pumps) the following data will be used to <br />calculate the energy baseline: <br /> h Motor rating and/or operating points <br /> h Annual hours of operation <br /> h Current cost of electricity <br /> h Equipment basic energy baseline equation <br />E=Motor rating (hp) * 0.745 kW/ hp * X hr/day * 365 day/yr = Y kWh/year <br />C. GUARANTEE MANAGEMENT <br />There is no additional cost for Kokosing to manage the savings guarantee under Indiana Code 36-1-12.5. This is one of the services included in the Provider Fee for the duration of the contract. Activities included in guarantee management includes but is not limited to calculating operational and energy savings, preparation of the baseline and annual report, and execution of the contract with all supplemental exhibits supporting the guarantee. Within 60 days of the contract execution, the contract must be fled with the state. We will prepare the deliverable for the State. The annual report is submitted to update the baseline guaranteed savings against the stipulated savings and accumulated total. The report is a simple, one-page report that utilizes the template developed by the state. The first annual report will be submitted one year plus 60 days following final completion and then every year within 60 days of the anniversary. Kokosing will fully prepare these materials.