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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 />0&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, 0&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 />Motor rating and/or operating points <br />Annual hours of operation <br />Current cost of electricity <br />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 <br />36-1-12.5. This is one of the services included in the Provider Fee for the duration of the contract. <br />Activities included in guarantee management includes but is not limited to calculating operational <br />and energy savings, preparation of the baseline and annual report, and execution of the contract <br />with all supplemental exhibits supporting the guarantee. Within 60 days of the contract execution, <br />the contract must be fled with the state. We will prepare the deliverable for the State. The annual <br />report is submitted to update the baseline guaranteed savings against the stipulated savings and <br />accumulated total. The report is a simple, one -page report that utilizes the template developed by the <br />state. The first annual report will be submitted one year plus 60 days following final completion and <br />then every year within 60 days of the anniversary. Kokosing will fully prepare these materials. <br />SOUTH BEND, INDIANA GSC 51 <br />