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HomeMy WebLinkAbout6.m. Detailed Engineering Study – Rosemount Community Center Arena EXECUTIVE SUMMARY City Council Regular Meeting: January 15, 2019 AGENDA ITEM: Detailed Engineering Study – Rosemount Community Center/Arena AGENDA SECTION: Consent PREPARED BY: Dan Schultz, Parks and Recreation Director AGENDA NO. 6.m. ATTACHMENTS: Detailed Engineering Study Agreement APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve the City entering into an agreement with McKinstry Essention to perform a Detailed Engineering Study of the Rosemount Community Center/Arena. BACKGROUND As part of the City’s efforts to meet the goals of the Energy Action Plan of being more energy efficient with municipal facilities, staff is recommending that the City enter in to an agreement with McKinstry Essention to perform a Detailed Engineering Study (DES) of the Rosemount Community Center/Arena. The study will identify several possible Facility Improvement Measures (FIM) that are either part of or will soon be included in the City’s CIP Budget. The DES will help the City better understand the future improvements to be made and what our future energy cost savings could be. The City has done preliminary audits in the past on City facilities but we have not moved forward with a DES. Because much of the mechanical equipment at the Rosemount Community Center/Arena is scheduled for replacement through our current CIP budget, now is the right time to move forward with a DES. The cost of the study is $22,000 and the funding would come from the Arena’s building and structure purchase line item. The Rosemount Environment and Sustainability Task Force (ESTF) along with elected officials, staff, residents, business/education representatives and energy utility representatives recently finished an Energy Action Plan (EAP) as a part of the City’s involvement with Xcel Energy’s Partners in Energy (PIE) program. This plan was adopted by the City Council on July 17, 2018. In addition, a Memorandum of Understanding (MOU) has been prepared to lay out the details for assistance from PIE to help the City of Rosemount implement the proposed EAP. The EAP addresses four focus areas for energy efficiencies: • Residential Energy Savings • Municipal Energy • Large Energy Users • Small and Medium-Size Businesses If the goals outlined in the Plan are achieved, residents and businesses will see a total of over $1 million in energy savings and a reduced carbon footprint impact similar to removing 4,100 passenger vehicles from the road for a year. RECCOMENDATION Staff recommends that the City Council enter into an agreement with McKinstry Essention to perform a Detailed Engineering Study of the Rosemount Community Center/Arena. Rosemount Parks & Recreation Detailed Engineering Study (DES) Agreement McKinstry Essention. Confidential 2018 Page 1 City of Rosemount Parks & Recreation Rosemount, MN Detailed Engineering Study This Detailed Engineering Study (the "Agreement") is made and entered into as of 11/28/2018, between MCKINSTRY ESSENTION, LLC (“McKinstry”) and the City of Rosemount, a Minnesota municipal corporation (“Owner”), 2875 – 145th Street Wl, Rosemount, MN 55068. W I T N E S S E T H WHEREAS, MCKINSTRY is a company with experience and technical and management capabilities to provide for the discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of energy and water saving measures at facilities similar in size, function and system type to Owner’s Community Center facilities; and WHEREAS, Owner, through its Parks & Recreation Department, has selected McKinstry to provide the services described herein; and WHEREAS, Owner and its Parks & Recreation Department desire to enter into an agreement to have MCKINSTRY perform a Detailed Engineering Study to determine the feasibility of entering into an Facility Improvent project, as well as other professional services; and WHEREAS, MCKINSTRY enters into this Contract in reliance on Rosemount Parks & Recreation’s representations concerning the appropriateness and validity of the procurement mechanism(s) under which this contract is procured, and Rosemount Parks & Recreation as a fiduciary acknowledges such reliance by MCKINSTRY. THEREFORE, the parties agree as follows: 1. Detailed Engineering Study McKinstry agrees to complete the Detailed Engineering Study and present, to Owner, a final report within 90 calendar days from the execution of this Agreement. However, Mckinstry and the Owner may mutally agree to extend the dates on all associated deadlines for this Agreement in the event the Owner wishes to expand the scope of work to a degree sufficient enough to warrant an extention, e.g., a major capital infrastructure project that is added to the scope of work/project. The Technical Audit will be completed in the following buildings:  Rosemount Community Center The Technical Audit will include the following services:  Feasibility analysis and budgetary guidance for the following measures: o Ice plant system retrofit & floor replacement o Interior/Exterior LED lighting retrofit o Building Automation System Improvements o Mechanical/HVAC retrofits o Low-e ceiling o REALice o Solar PV Rosemount Parks & Recreation Detailed Engineering Study (DES) Agreement McKinstry Essention. Confidential 2018 Page 2 The Owner, through its Parks & Recreation Department, agrees to assist McKinstry in performing the Detailed Engineering Study. The Owner agrees to work diligently to provide full and accurate information. McKinstry agrees to work diligently to assess validity of information provided and to confirm or correct the information as needed. 2. Compensation to MCKINSTRY Except as provided below, within 60 days after McKinstry’s submission of the final Detailed Engineering Study report, Owner shall compensate McKinstry for performance of the Audit by payment to McKinstry of no more than $24,000 (Twenty-Four Thousand Dollars) The Owner and McKinstry will work cooperatively to explore all possible grant and rebate programs available. a. The Owner shall have no payment obligations at the time of execution of this Agreement, but acknowledges that the fee indicated above shall be incorporated into McKinstry’s project costs, in the event McKinstry and Owner execute an Energy Savings Project within 90 days, or such longer period as the parties may mutually agree upon in the form of a Letter of Intent, after submission of the final Detailed Engineering Study report by McKinstry to Owner. b. The Owner, in collaboration with McKinstry and documented in writing, may elect to procure McKinstry’s design and project development services, in addition to the scope of the technical energy audit, for pending capital infrastructure improvements that are slated to be incorporated into the overall Energy Savings Project. In this event, the cost of associated design and project development will be rendered by McKinstry on a cost-plus basis, and will be included in the total project design cost. However, should the Owner elect not to implement the Energy Savings Project, the Owner agrees to pay for said additional design and project development services costs as part of the Audit Agreement project termination compensation. c. The negotiated audit fee above does not represent the true cost of executing the audit analysis and is, in effect, a “walk-away” fee, should the Owner opt not to proceed with the Energy Savings Project, even after McKinstry has met the financial and energy savings requirements mutually agreed to by both parties. McKinstry reserves the right to include the actual development costs into the overall project. The Detailed Engineering Study does not include the actual construction design cost portion of the project. The cost for construction design will be included in the final contract. Mckinstry may opt to perform, at their own risk, some of the construction design during the Audit phase as a way to expedite the development of the project. This design cost is separate from the Detailed Engineering Study and will be included in the final Energy Savings Project’s total implemented cost. d. The Owner acknowledges that this Detailed Engineering Study Agreement is the governing agreement for each additional engineering study or energy audit sufficient for subsequent phases of Energy Savings Projects. Each additional engineering study or audit sufficient for subsequent phases of Energy Savings Project will incur a compensation requirement for each additional audit. The compensation requirement will be calculated as $24,000. Such engineering study or audit fees may be incorporated into the subsequent additional Energy Savings Phase as noted in Section 2, Subsection c. 3. Terms and Conditions. The Terms and Conditions attached to this Agreement are incorporated herein and made a part of this Agreement. Rosemount Parks & Recreation Detailed Engineering Study (DES) Agreement McKinstry Essention. Confidential 2018 Page 3 Persuant to the work above and the terms following: MCKINSTRY ESSENTION, LLC Name: Title: Signature________________________________ Date: Owner ([OWNER]) [must be signed by Mayor and City Clerk] Name: _________________ Title: Signature: Date: Rosemount Parks & Recreation Detailed Engineering Study (DES) Agreement McKinstry Essention. Confidential 2018 Page 4 TERMS & CONDITIONS PERFORMANCE OF WORK. McKinstry shall perform the scope of work (“Work”) specified herein. McKinstry shall furnish all services necessary to perform the Work and perform the Work to completion diligently, expeditiously and with adequate forces. Owner shall use its best efforts to provide all information, materials, documents, and assistance that is reasonably required for McKinstry to perform any and all aspects of the Work. WARRANTIES. Owner shall receive a one (1) year warranty that covers labor and materials provided by McKinstry as part of the Work. This warranty commences on the date that the portion of the Work warranted is substantially complete. However, McKinstry makes no warranty whatsoever regarding components of the Work provided by third parties, and in such case the terms of the third party’s warranty, including manufacturers’ warranties, if any, shall apply between Owner and the third party. TERMINATION. Either Party may terminate this agreement upon fifteen (15) days written notice to the other Party. In such case the rights and obligations of each Party that arose prior to the termination date shall survive such termination, except that McKinstry shall have no obligation to perform Work after termination and Owner shall have no obligation to compensate McKinstry for work performed after Owner provides written notice of termination. DISPUTES. In case of dispute between the Parties, the Parties will attempt to negotiate a resolution. If a dispute remains unresolved more than thirty (30) calendar days after the commencement of negotiation, then the Parties shall pursue mediation. If any dispute remains unresolved after mediation, then either Party may commence litigation or any other legal remedies available to them. CHOICE OF LAW, VENUE. The validity, interpretation, and performance of this agreement shall be governed by the laws of the state in which the Work is performed. The venue for resolving any dispute shall be the county in which the Work is performed. FORCE MAJEURE. Neither McKinstry nor Owner shall be considered in breach of this agreement to the extent that the Party’s performance is prevented by an event or events that are beyond the control of such party, including but not limited to acts of God, fire, earthquake, flood, storm, war, rebellion, revolution, insurrection, riot, strike, nuclear contamination, and/or acts or threats of terrorism. NO WAIVER. No waiver of any breach, failure, right, or remedy shall be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, nor shall any waiver constitute a continuing waiver. By signing this Agreement, the City is not waiving any immunities to which it may be entitled under statute or common law. INTELLECTUAL PROPERTY. As part of the Services provided by McKinstry under this Agreement, McKinstry will prepare a Final Detailed Engineering Study report that will become the property of Owner upon delivery from McKinstry. Other reports, memoranda, or other written documents prepared or used by McKinstry in connection with the Services will remain the property of McKinstry and may be used by Owner with prior consent from McKinstry. INSURANCE. McKinstry shall maintain insurance coverage for: Worker’s Compensation (statutory limits), General Commercial Liability, Automobile Liability, Professional Liability, and Excess or Umbrella Liability in amounts of not less than $2,000,000 per occurrence and shall provide to the City a current certificate of insurance for all coverages referenced above. The certificate of general liability insurance shall list the City as an additional insured and contain a statement that such insurance may Rosemount Parks & Recreation Detailed Engineering Study (DES) Agreement McKinstry Essention. Confidential 2018 Page 5 not be cancelled or amended unless thirty (30) days written notice is provided to the City, or ten (10) days written notice in the case of non-payment. INDEMNIFICATION. Each party shall indemnify and hold harmless the other party from and against all third-party claims, damages, losses and expenses for bodily injury, sickness, disea se, or death or destruction of tangible property but only to the extent directly caused by the negligent acts or omissions of the indemnitor. Except as otherwise specifically provided for in this Agreement, the parties agree that the damages in this contract are limited to the proceeds payable by the applicable insurance policies specifically required by this agreement. SEVERABILITY, SURVIVAL. If any portion of this agreement shall be held invalid in whole or in part under any law, rule, regulation, or order, then such portion shall remain in effect only to the extent permitted, and the remaining portions of the agreement shall remain in full force and effect. Any invalid portions shall be substituted with an interpretation that most accurately reflects the Parties’ intentions. AMENDMENT. This agreement may not be amended except pursuant to a written amendment signed by an authorized signer of each Party. COMPLETE AGREEMENT. This agreement, including the exhibits attached hereto, is a fully integrated agreement. Any legal terms and conditions appearing elsewhere in this agreement shall be ignored to the extent they contradict or are inconsistent with the terms and conditions contained in the agreement All previous agreements between McKinstry and Owner as to the Work are superseded by this agreement. DATA PRACTICES. McKinstry, and its agents and employees, agrees to abide by the provisions of the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13. McKinstry agrees to indemnify and hold Rosemount, its officials, department heads and employees harmless from any claims resulting from McKinstry’s failure to comply with the Act.