HomeMy WebLinkAbout9.a. Honeywell Municipal Services Partnership k '
• CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CIT1( COUNCIL MEETING DATE: March 7, 1995
AGENDA ITEM: Honeywell: Municipai Services Partnership AGENDA SECTION:
New Business
PREPARED BY: Bud Osmundson AGENDA�NO. �
City Engineer/Public Works Director TE1�/1 # ,r A
ATTACHMENTS: 8 page Handout & Authorization Letter APPROVED BY:
Staff has been approached by Honeywell Corporation to enter into a Municipal Services
Partnership. The Partnership is based on Honeywells expertise in improving efficiency of
buildings and thereby funding improvements to buildings with the savings in the energy
budgets. Mr. Erik Froehlich from Honeywell Corporation is here to present a brief
presentation regarding the Partnership and answer any questions you may have.
The procedure begins with a team of Honeywell employees and City employees going
through each building, including all park and well house facilities and analyzing the
efficiency of the motors, Iights, windows, insulation and anything that will improve the
efficiency of the building. Then Honeywell takes that information and puts together a list
of recommendations for the City to budget for. This information will be presented to the
City Council and if desired the Council can go ahead at that time and enter into a contract
with Honeywell, whereby Honeywell will provide both HVAC maintenance and funding for
the upfront cost of the Capital expenditures. These would then be paid back through
budget savings over the next number of years. Mr. Froehlich can answer any questions
you may have regarding the details of how the process works. The City is out nothing at
this time except for a small amount of Staff time to assist Honeywell in preparing the
building survey.
Staff recommends a motion to send the letter of authorization for Honeywell to proceed.
RECOMMENDED ACTION: MOTION TO SEND A LETTER OF AUTHORIZATION FOR
HONEYWELL CORPORATION TO PROCEED WITH THE MUNICIPAL SERVICES PARTNERSHIP.
COUNCIL ACTION:
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Ci of Rosemount � Honeywell
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Municipal Services Partnership
Solution ta What?
• Aging facilities
• Increasing cost of operations
� Shortage of capital funds
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• Comfort, safety & indoor air quality c�:. ��� , ,�
• FirelSecurity concerns ��� ,k ' � `��+
� ' ized technolo ���,A1 � '��
Underutil gY a���nY1�AY�ws ��:
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• Multiple vendors: incompatibility/accou�� , ility
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• Undertrained personnel �������,,�� �,
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� Risin deferred maintenance roblern���µ�° ����� `�`�'
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Bud et shocks F���������'`�� U�
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• Inflexible procurement regulations��''��'y��E�s��i���{r
• Overburdened taxpayers
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Ci of Rosemount & Honeywell
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Municipal Services Partnership
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The Honeywell Solution ,. �
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• Comprehensively repair, modernize & maintain buildings
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• Improve building comfort, safety & efficiency
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� Fund improvements from existing budget/expenses with no up front cost
• G.uarantee both financial & operational performance
• Single-source responsibility & accountability = peace of�mind
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Ci of Rosemount & Honeywell
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Municipal Services Partnership _
Performance-Based Contracting
(MN Statutes 1988 - Section 471.345, subd. 13)
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P� • Offers a roactive procurement op on
� • Transfers nancial & operational ri s to vendor
• Mandates t at savings must equal or xceed costs
� • Energy & op rational savings must be et within 10 years
• Comprehensi e approach allows for m imum benefit
• Positive envir nmental impact
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Ci of Rosemount & Honeywell
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Municipal Services Partnership
The Project Team
• You (drive entire project)
• Account Leader (coordinate/facilitate project creation)
• Performance Contract Engineers (design & engineer entire project)
• Implementation Team (project managers, technicians, fitters, subcontractors)
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Municipal Services Partnership
The Process
• Introduction
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• Council meeting (resolutionlletter of authorization) ,, rf,r, ' ° ,,�';�ry����;;3r°5
• Preliminary survey (establish cost of operations � `s�'o�+���y
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• Verification meeting (verify survey results ' '' ' ' ' '` '
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• Preliminary proposal (letter of intent fro ` �� ) � �u, ,,' : ; ��� '�,�� ' :
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• In-depth analysis (check & balance �� .,n�' �7�'apos���}` ; „
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• Final proposal (contract signing �_:�, f � ' ��„ `; '� t , �`;,`' , , ,;�� ' , ��� , �;`,
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Ci of Rosemount & Honeywell
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Municipal Services Partnership
Existing Partners in Minnesota
(partial list) �
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• City of Edina
� City of Willmar
• City of Coon Rapids � f"��� �•9� "
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• City of Blaine �3
� • City of South St. Paul , � : , R ..' �
• Itasca County � �''�' � .,
• Chisago County
� Minneapolis Schools �
• Mounds View Schools
Partnershi = Co-Authorshi & Co-(� eration
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Ci of Rosemount & Honeywell
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Municipal5ervices Partnership
A Single-Source Solution
• Energy Retrofits
- temperature control
,� • - mechanical control
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. • ; `}`� . Lighting
• Maintenance
' ' • Monitoring -
• Training
• Fire & Security
• Indoor Air Quality
1. Together, we will de�ermine vour needs.
2. Together, we will create a com�rehensive solution.
3. Together, we will fund solution from your existing budget.
4. Honeywell eliminates risk to you with �uaranteed results.
5. And, after costs are re-paid, you realize on�oin� savin�s.
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ENERGY AND OPERATIONS PROPOSAL
Letter of Authorization
Recommendation to authorize the administration to work with Honeywell to present
a customized solution to save operational costs and energy. The following resolution
is proposed:
Whereas, the state legislature has recently enacted Minnesota Statute #471.345 to
direct municipalities to develop agreements with businesses whicF� will guarantee
savings in energy and operation.
This statue al(ows the City to select a vendor based on experience, track record and
ability to perform when the energy and operational contract is guaranteed to be self-
funding. Under this provision, the City has selected Honeywell as our vendor of
choice to negotiate a Municipal Services Contract.
Therefore, the City Council directs the City Administrator to enter into a no cost
decision schedule with Honeywell to provide a means to determine the feasibility,
scope, terms and time frame for entering into an agreement.
On the basis the Honeywell preliminary proposal will be self-funding and given a
written guarantee of savings, meet the criteria set by the City, the City will enter into
an agreement with Honeywell for the aforementioned Municipal Services program.
The City agrees that the preliminary evaluation and recommendations of energy
conservation measures as well as the preliminary proposal shall remain the property
of Honeywell and may not be used by the City for the purposes of competitive bidding
or for the purposes of entering into a guaranteed energy savings contract with any
other qualified provider.
Thomas Burt, City Administrator Honeywell Authorization