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.