energy services proposal

ENERGY

SERVICES

PROPOSAL

City of Edmonds Phase 6 – WWTP Upgrades

Carbon Recovery Project

Edmonds, Washington

2020-793 A

Presented By:

• Lonn Inman, Project Manager

• Rob Wyllie, Project Engineer

AMRC Project #: 026-2020-06

May 28, 2020

Ameresco, Inc. Energy Services Proposal City of Edmonds

Page 1 of 30

TABLE OF CONTENTS

I. EXECUTIVE SUMMARY ................................................................................................................................................ 3

A. Summary & Project Services ............................................................................................................................. 3

B. Project DESCRIPTION ........................................................................................................................................ 3

C. Project CONTACT LIST ....................................................................................................................................... 4

D. Project Benefits ................................................................................................................................................ 5

E. Guarantees ....................................................................................................................................................... 5

F. Conclusion ........................................................................................................................................................ 6

II. FACILITY DESCRIPTION ............................................................................................................................................... 6

A. Wastewater TReatment PLant ......................................................................................................................... 6

III. ENERGY CONSERVATION MEASURES (ECM’s) to be implemented .......................................................................... 8

A. EDMONDS WWTP INCINERATOR REPLACEMENT – (Project B) ........................................................................ 8

IV. ESCO SERVICES ......................................................................................................................................................... 9

V. PROJECT COSTS ....................................................................................................................................................... 13

A. Maximum Project Cost ................................................................................................................................... 13

B. Project Cost Table ........................................................................................................................................... 13

C. Items Included in the Maximum Project Cost ................................................................................................ 14

D. Exclusions ....................................................................................................................................................... 15

E. Construction Contingency .............................................................................................................................. 17

F. Ongoing Services ............................................................................................................................................ 17

G. Accounting Records ........................................................................................................................................ 17

H. Reconciliation of Labor & Material Costs ....................................................................................................... 17

I. Diverse Business Participation Goals for this Project ..................................................................................... 18

J. minimum levels of apprenticeship ................................................................................................................. 19

VI. RECOMMENDATIONS FOR REPLACEMENT OF EXISTING EQUIPMENT ................................................................... 19

VII. STANDARD of SERVICE........................................................................................................................................... 20

A. HVAC Comfort ................................................................................................................................................ 20

B. Fluid Lift Gasification System BIOSOLIDS Loading .......................................................................................... 20

C. ECOFILTER Odor control system ..................................................................................................................... 22

VIII. BASELINE ENERGY CONSUMPTION ...................................................................................................................... 23

A. Overall Resources Use .................................................................................................................................... 23

B. By Facility Resource USes ............................................................................................................................... 23

IX. ESTIMATED ANNUAL SAVINGS AMOUNT & UTILITY INCENTIVE ............................................................................ 23


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A. Electrical ......................................................................................................................................................... 23

B. Natural Gas ..................................................................................................................................................... 24

C. Fuel Oil ............................................................................................................................................................ 24

D. Utility Incentive .............................................................................................................................................. 24

X. METHOD OF CALCULATING ENERGY SAVINGS & ENERGY COST SAVINGS .............................................................. 24

A. Energy Audit ................................................................................................................................................... 24

B. Calculation of Savings ..................................................................................................................................... 24

XI. FINANCING .............................................................................................................................................................. 25

XII. ENERGY SAVINGS GUARANTEE .............................................................................................................................. 25

XIII. ESCO COMPENSATION .......................................................................................................................................... 26

A. Payments ........................................................................................................................................................ 26

XIV. TERMS OF AGREEMENT ........................................................................................................................................ 26

XV. TERMINATION vALUE ............................................................................................................................................ 26

XVI. PROJECT SCHEDULE .............................................................................................................................................. 26

XVII. EXTENT OF SUBCONTRACTING ............................................................................................................................ 27

XVIII. INSURANCE & BONDING .................................................................................................................................... 27

XIX. RENEGOTIATION ................................................................................................................................................... 28

XX. EXHIBITS & TABLES ................................................................................................................................................ 28

A. Table 1: Financial Analysis .............................................................................................................................. 29

B. Table 2: Cash Flow .......................................................................................................................................... 32

C. Table 3: Full List of Measures ......................................................................................................................... 33

D. Table 4: Selected Measures ............................................................................................................................ 34


Page 3 of 30

I. EXECUTIVE SUMMARY

A. SUMMARY & PROJECT SERVICES

Ameresco is pleased to present this proposal for the implementation of energy efficiency measures

for City of Edmonds.

This Proposal follows the outline contained in Section II of the Master Energy Services Agreement

(MESA). It presents the contractual terms under which Ameresco, City of Edmonds, and the

Department of Enterprise Services Energy Program (DES Energy Program) will work together over

the term of the project. This Proposal describes the scope, costs, guarantees, and other aspects of

the project.

The services in this Proposal include design, construction, system verification, and Measurement

and Verification (M&V) services for the first year. Although City of Edmonds will operate and

maintain the new equipment, Ameresco will provide important M&V services during the first year to

help ensure the predicted savings are achieved. Ongoing M&V services are also offered for an

additional cost at the owner’s request.

B. PROJECT DESCRIPTION

The project improves City of Edmonds infrastructure while saving energy. The proposed Carbon

Recovery Project (Project) will replace the 30-year old sewage sludge incinerator (SSI) at the City of

Edmonds’ (Edmonds) wastewater treatment plant (WWTP) with a new biosolids gasification system,

converting the resultant waste stream – currently ash – to a carbon-rich resource, commonly

referred to as ‘biochar’.

This project advances the City’s incremental and phased plan to upgrade and replace the solids

handling systems for the WWTP as laid out in the ‘Pathway to Sustainability’.

Edmonds is one of five jurisdictions in Washington that presently utilizes an SSI to dispose of

wastewater biosolids. As state and federal regulatory authorities enforce more stringent clean air

requirements, the compliance requirements for continued operation are not only expensive but

overly burdensome. Further, regulations require replacement at specific thresholds regardless of

ability to comply.

Initial research, technical information requests, and evaluation (established via an RFQ process

which Ameresco facilitated for the City that included proposals from across North America) have

revealed new technologies that can significantly improve the recovery of Carbon and are viable

alternatives to incineration. The City has concluded that both Pyrolysis or Gasification could meet

the goal and intent of Resolution No. 1389. In addition, either technology would significantly

reduce operating, regulatory, and disposal expenses.

Edmonds has adopted a very aggressive commitment to improve impact on climate with Resolution

No. 1389. To that end, this project will further develop and deploy the fluid lift gasification

technology provided by Ecoremedy. The Ecoremedy gasification process is designed to convert the

energy in the dewatered biosolids cake generated at the City of Edmonds, WA WWTP to useable

thermal energy for the purpose of drying the dewatered biosolids to Class A product, recover usable

thermal energy for process, and produce a carbon rich biochar or low carbon concentrated minerals.


Page 4 of 30

Ecoremedy is providing a system designed to process dewatered sludge ranging between 22% to

26.5% solids and shredded screenings (Rags) to beneficial renewable energy. The gasification

system will convert the biosolids waste stream into a biochar product that sequesters the carbon

content into a useful product with a range of agricultural and industrial uses. In addition to the

replacement of the incinerator this project will also be replacing the existing plant foul air odor

scrubber. The new odor control system is a low profile “EcoFilter” bio-trickling filter that reduces

the need for expensive chemicals and reduces the number of truck trips required for delivery.

C. PROJECT CONTACT LIST

Client Contact: Pamela Randolph

E-mail Address: [email protected]

Phone Number: (425) 771-0237

Ameresco Contact: Lonn Inman


Phone Number: (206) 708-2947

Department of Enterprise Services (DES): Butch Boles


Phone Number: (360) 480-3632


Page 5 of 30

D. PROJECT BENEFITS

1. FINANCIAL BENEFITS

Table 1 shows project costs, estimated utility incentives, and savings related to this project.

The guaranteed maximum project cost is $23,529,247. Including sales tax and DES Energy

Program project management fees, the total project cost is $26,275,016. The estimated

utility incentive for the project is $20,000.

All construction costs will be open book to the Owner, and any cost savings related to savings

on the ESCO’s (energy services company) labor and material costs will revert to the Owner at

the end of the project.

The project will produce over $38,885 annually in energy savings. The project Financial

Analysis in Table 1 is based on City of Edmonds providing a capital investment of $10,000,000

and financing $16,255,016.

Another potential financial benefit the Ecoremedy gasification system may provide is

qualification for a sales tax exemption from the Washington State Department of Revenue,

due to the fact that Biochar is considered a marketable product. Equipment, materials and

systems associated with producing the sellable product (biochar, EQ biosolids) qualify for tax

exemption.

And finally, Governor Inslee recently signed the 2020 Supplemental State Capital Budget,

which includes an appropriation of $250,000.00 for the Edmonds Carbon Recovery

(Edmonds) WWTP Project.

2. MAINTENANCE AND OPERATIONAL RELATED BENEFITS

Over $304,347 in annual operational and maintenance savings is factored into the financial

analysis. These include reductions in various consumables associated with the SSI including

chemicals, sand, ferrules, tubes, clay, polymer and mercury modules. Additionally, regulatory

costs associated with incineration and costs for emissions testing and consulting.

3. ENVIRONMENTAL BENEFITS

In addition to building improvements and energy savings, there is a significant positive

impact on the environment as a result of this project. The energy savings produced as a result

of this project will directly reduce the amount of power produced by the utilities and reduce

CO2 emissions by over 19,320 lbs. annually.

Additionally, it is estimated that .75 to 1 million lbs. of carbon are recovered as a result of the

Ecoremedy gasification process.

E. GUARANTEES

Ameresco guarantees that the project cost, related specifically to energy savings and the project

scope, will not exceed the maximum price of $23,529,247 (project cost before sales tax and DES

Energy Program project management fee). Also, Ameresco is guaranteeing that the project will


Page 6 of 30

perform such that electrical savings will not be less than 71,736 kWh per year, oil savings will not be

less than 12,875 gallons per year. This corresponds with 90% of the estimated energy savings.

Natural gas will be used to fire-off the gasification system after periods of shut-down. Currently the

incinerator does not use natural gas, therefore an overall increase in WWTP natural gas usage shall

be no more than 4,576 therms per year. This corresponds with 110% of the estimated gas increase.

F. CONCLUSION

This project represents an excellent opportunity for the City of Edmonds to improve its facilities and

replace the solids handling systems while saving energy, and reducing operational costs associated

with the existing incinerator. The project provides over $26,270,000 in facility improvements.

Ameresco looks forward to working with City of Edmonds and DES Energy Program in making this

project a success.

II. FACILITY DESCRIPTION

BUILDING

NAME

ADDRESS APPROXIMATE

AGE

BUILDING

OCCUPANCY

SCHEDULE

Wastewater

Treatment Plant

200 2nd Ave S,

Edmonds, WA 98020

62

N/A

A. WASTEWATER TREATMENT PLANT

1. BUILDING DESCRIPTION

The City of Edmonds operates and maintains the Wastewater Treatment Plant (WWTP). A

regional facility that treats flows from the cities of Edmonds, Mountlake Terrace, and

Lynnwood; King County; Olympic View Water and Sewer District; and Ronald Wastewater

District. On average, the WWTP treats 4.8 million gallons per day (MGD). The WWTP liquid

stream consists of a headworks with three mechanical screens, three primary clarifiers (two

square and one rectangular), three aeration basins, three circular secondary clarifiers, and

two chlorine contact tanks. The disinfected plant effluent is discharged through a single 36-

inch diameter outfall into the Puget Sound.

2. MECHANICAL SYSTEMS

The WWTP solids stream includes screw press dewatering and incineration of the sludge

cake using a fluidized bed incinerator. The dewatered sludge (DS) from the screw presses is

stored in a DS storage hopper that is continuously mixed. The screw presses were replaced

in 2017 and have a performance guarantee of producing DS with a minimum of 26.5% solids

content. The screw presses have been performing above this minimum threshold achieving


Page 7 of 30

typical % solids in the 30-32% range. Washed screenings are compacted and discharged to

the DS conveyors immediately upstream of the screw presses. The screenings are mixed

with the DS in the conveyors and combined with the DS in the DS storage hopper where

they are further comingled via the DS hopper mixing. DS is pumped from the DS storage

hopper to the incinerator fluidized bed at 6-9 gallons per minute (gpm) via a piston pump.

The incinerator fluidized bed is made up of approximately 16,000 lbs. of green lightening

sand. Diesel is used as an auxiliary fuel to maintain a bed temperature of 1,400 degrees

Fahrenheit (°F). The air supply is preheated to 1,200 °F by a heat exchanger to reduce the

auxiliary fuel consumption. The pre-heated air is forced up through the bed of hot sand and

causes the sand bed to be fluidized. When the sand bed is fluidized it acts like boiling water

that can reduce approximately 1,000 gallons of bio-solids down to approximately two quarts

of ash. The incinerator exhaust with associated ash is scrubbed in the venturi scrubber with

50 gpm of water and then further treated through a 4-stage separator and tray cooling

tower that has 200 gpm of water flowing in the opposite direction of the exhaust gases.

Each stage of the tray cooler has a plate with small holes in it that the air must flow through.

The water runs across the top of each plate and the exhaust gases ‘bubble’ through the

water. The exhaust gases are reheated with a natural gas-fired burner to eliminate the

vapor plume for aesthetics. The ash that is combined with the spray water is captured at the

bottom of the separating and tray cooling tower as ash slurry. The ash slurry is then

thickened in the ash thickener and then dewatered using a drum vacuum filter prior to

disposal offsite. Supernatant from the ash thickener is drained by gravity to the sump pump

and ultimately recombined with wastewater in the WWTP flow splitter box upstream of the

primary clarifiers. Plant foul air is handled by the existing 30-year old Vanaire chemical

scrubber (WS-601) and each scrubber fan (FIC-631 and FIC 632) were originally sized for a

foul airflow of 20,000 cubic feet per meter (cfm). As part of the Edmonds dewatering

improvements project Ph. 5 the foul air system total connected load has been revised to the

current total of 17,100 cfm.


Page 8 of 30

III. ENERGY CONSERVATION MEASURES (ECM’S) TO BE IMPLEMENTED

A. EDMONDS WWTP INCINERATOR REPLACEMENT – (PROJECT B)

1. GENERAL CONSERVATION MEASURES

a) ECM-PROJECT B: Replace existing SSI with Ecoremedy Gasification system

This measure will replace the sewage sludge incinerator (SSI) and ancillary systems

with an Ecoremedy (ECR) engineered system which incorporates a gasifier/oxidizer

and a drum dryer along with various biosolids mixers and conveyors, bins, plume

abatement heat exchanger, pumps, cyclones, blowers, a dust collection system, an

activated carbon filter and a wet scrubber; which will process and reduce dewatered

sludge (DS) to any of three output products: a) concentrated minerals, b) biochar or

c) Class A dried biosolids.

The project also replaces the existing screenings pumps in the Headworks building

with two new pumps and installs a new washer compactor.

Additionally, replace the existing Vanaire chemical scrubber system with an

“EcoFilter” system by BioAir and revise the foul air ductwork to accommodate

relocating the odor scrubber near the Headworks building.

Ameresco will perform air balancing for the modifications to the foul air system and

new EcoFilter.

Furthermore, the existing ash storage room will be reconfigured to handle the

multiple output products of the ECR system by installing two storage bins to replace

the single ash bin.

To install this system and associated equipment the contents of the “incinerator

building” will be demolished and this “building” will be converted to accommodate

the ECR gasification system. The scope of work in the incinerator building includes

new solids handling equipment, HVAC systems, lighting and fire protection systems,

hoisting systems, service and access platforms for all new equipment, a new

dewatered sludge hopper and pump, including installation of the hydraulic pack

furnished by the City. Structural steel and concrete construction will be provided to

install an upper floor which will house the material handling bins and conveyors.

The associated controls integration and modifications to the existing SCADA system

will be procured by the City who will contract directly with the current WWTP

controls vendor Parametrix.


Page 9 of 30

IV. ESCO SERVICES

Ameresco will provide the following services:

1. ENERGY AUDIT: The energy audit is complete and is incorporated herein.

2. DESIGN SERVICES: Provide a detailed engineering design as needed to obtain Owner

review and approval of the proposed system and to obtain competitive bids. Provide

construction support services, start-up, and testing. Provide as-built drawings and relevant

O&M manuals.

3. CONSTRUCTION: Provide, or cause to be provided, all material, labor, and equipment,

including paying for permits, fees, bonds, and insurance, required for the complete and

working installation of the ESCO equipment.

a) The ESCO may perform portions of the construction work or may subcontract

portions to qualified firms. In either case, the ESCO will share information

regarding the actual costs of the work with the Owner.

c) When the ESCO has completed the installation of the Equipment, including

start-up and operation verification and training in accordance with the Proposal,

the ESCO will provide to Owner a "Notice of Commencement of Energy Savings"

(NCES).

d) At the conclusion of the last phase of the project, the ESCO will submit a "Notice

of Substantial Completion" to the Owner; as defined in the General Conditions

Section 6.09.

4. CONSTRUCTION PROJECT MANAGEMENT: Provide construction project management

services required to manage Ameresco’s labor force or its subcontractors to coordinate,

purchase and install equipment as applicable in the construction contract. These include

but are not limited to contract administration, preparation of meeting minutes, schedule

creation, submittal processing, purchasing, invoicing, as-built drawings, and close-out

documentation. The Owner is expected to coordinate day-to-day communications with

tenants and any scheduling of tenant relocations in and around occupied areas. This is not

supervision as provided by the site superintendent.

5. SITE SUPERINTENDENT: As an optional service, the ESCO may provide site

superintendent services as necessary to facilitate and coordinate on-site construction

activities. Site supervision includes, but is not limited to, all activities executed by an

employee of the ESCO in the active on-site supervision of its own labor force and its

subcontractors. This service, if requested by the owner, will appear as a line item and cost

in the “Labor and Materials” section of the financials and becomes an element of the

Construction contract. (Site Superintendent services are not included in this proposal.)

6. OPERATION TRAINING: The ESCO will provide on-going training for the building staff

during construction.


Page 10 of 30

7. PERFORMANCE MAINTENANCE: The ESCO will provide ongoing measurement and

verification to help ensure the guaranteed savings are achieved throughout the first year of

the agreement. Specific tasks will include:

a) Year One: Post installation Measurement and Verification (M&V) will be

performed based on the International Performance Measurement and

Verification Protocol (IPMVP) – Option A (Retrofit Isolation-Key Parameter

Measurement), Section IX – Method of Calculating Energy Savings and Energy

Cost Savings, and the following Measurement and Verification table:


Page 11 of 30

ECM Conservation MeasureIPMVP

OptionWork to be Performed

Key Performance

Indicators

Stipulated

Variables

Years to be

Done

Work To Be

Performed ByOwner Responsibilities

Project B

Replace existing SSI with Ecoremedy

Gasification system Agreed Upon

Demonstrate maximum material handling capacities as follows: •Convert 656 DRY pounds per hour of dewatered biosolids at

26.5% solids content and approximately 96 #/hour screenings

(as defined as Qualified Cake in the definitive sales agreement)

to ash with carbon content ≤ 10% by weight; •Require no supplemental fuel after startup to sustain

operations; •Maintain air emissions at, or below, allowable state and federal

air permit emission limits •Operate for 120 continuous hours to the extent all utilities,

Qualified Cake as defined in Section 2, and outlet for recovered

energy in the form of hot water are available for all hours of the

"Commissioning Period".

Material handling

output, runtime, NG

Usage,H2S removal

Total solids content

%, Dewatered

sludge input

Screenings input

1Ecoremedy and

Ameresco

City understands and agrees that ECR’s ability

to meet the Commissioning Performance

Requirements is subject to the following: (i)

infrastructure having the capability to accept

the recovered renewable energy (hot water);

(ii) providing an adequate amount of Qualified

Cake entering the system; (iii) proper and

adequate preparation and maintenance of the

project site; and (iv) all operational

consumables are provided.


Page 12 of 30

b) The ESCO will attend one annual meeting to review the Measurement &

Verification results and reconcile the energy savings.

8. EQUIPMENT MAINTENANCE: The ESCO will provide no equipment maintenance or

repairs after the warranty period. Following the completion of the installation and Owner

acceptance of the Equipment, the Owner shall provide all necessary service, repairs, and

adjustments to the Equipment so that the Equipment will perform in the manner and to

the extent set forth in the Proposal. The ESCO shall have no obligation to service or

maintain the Equipment after the warranty period.

9. OPERATION & MAINTENANCE PROCEDURES: None provided for existing equipment.

Operation and maintenance manual will be provided for the installed equipment.

10. WARRANTY: The ESCO will warrant labor and materials for one year following Notice of

Substantial Completion.

Notice of Substantial Completion will be issued on a measure by measure basis as

conservation measures are completed, saving energy, and accepted by DES and the owner.

NOTE: Confirm substantial completion with DES and Owner prior to issuance of the notice.

A warranty log will be kept that outlines completed and accepted conservation measures

with warranty start and end dates.

11. HAZARDOUS WASTE: The cost for removal and disposal of any identified hazardous

waste, including PCB ballasts, has been included in the project cost. Should the project

require additional removal or disposal of any unidentified hazardous material, the ESCO

may have the hazardous material or substances removed and disposed of at the request of

the Owner. The ESCO will not assume ownership of the material but may act on behalf of

the Owner to properly remove and dispose of the material. The Owner shall pay the ESCO

for the cost of the additional work. The Owner agrees and acknowledges that it has not

relied on or employed the ESCO to analyze or identify the presence of any hazardous

substance on the Owner's premises. The cost of any additional hazardous material

abatement and disposal is not included in this proposal. For additional information, please

refer to section 5.20 of the General Conditions.

12. COVID-19 SITE SAFETY REQUIREMENTS: Ameresco and its subs will develop site specific

safety plans once means and methods are determined after design implementation.


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V. PROJECT COSTS

A. MAXIMUM PROJECT COST

The ESCO guarantees that the Maximum Project Cost will not exceed $23,529,247 This cost does not

include sales tax or DES Energy Program project management fees. With sales tax and DES Energy

Program project management fees, the Total Project Cost is $26,275,016. The ESCO does not

guarantee the value of sales tax or DES Energy Program project management fees.

NOTE: The proposed Total Project Cost is valid for 120 days from the date of this proposal. Beyond

120 days, Ameresco reserves the right to adjust pricing to reflect current labor and material cost.

B. PROJECT COST TABLE

I. PROJECT COSTS & ENERGY SAVINGS FOR SELECTED OPTIONS

PROJECT COSTSMech, Water,

General

Lighting Total Project

Costs

Engineering Audit -$ -$ -$

Estimated Labor and Material Cost 15,935,035$ -$ 15,935,035$

M,W,G Design @ 6.8% of Labor & Material 1,141,775$ 1,141,775$

System Mfr Design @ 9.6% of Labor & Material 1,531,600$ -$ 1,531,600$

Construction Mgt @ 6.0% of Labor & Material 956,103$ -$ 956,103$

Site Supervision -$ -$ -$

Bonding @ 1.5% of Labor & Material 245,400$ -$ 245,400$

ESCO Overhead @ 10.0% of Labor & Material 1,593,504$ -$ 1,593,504$

ESCO Profit @ 8.0% of Labor & Material 1,274,803$ -$ 1,274,803$

1st Year of M&V - Ameresco 6,500$

0 Additional Years of M&V - Ameresco -$

Subtotal: 22,678,220$ -$ 22,684,720$

Construction Contingency @ 5.3% of CC 843,621$ -$ 843,621$

Apprenticeship Incentive 905.80$

Subtotal - Maximum Project Cost: 23,521,841$ -$ 23,529,246.80$

Est. Sales Tax @ 10.4% of Maximum Project Cost 2,446,271$ -$ 2,447,042$

1 Years of M&V - DES -$

DES Project Management Fees 298,727$

TOTAL PROJECT PRICE: 25,968,112$ -$ 26,275,016$

Estimated Utility Incentive 20,000$ -$ 20,000$

Grant Request -$

Estimated Client Net Cost (excluding add'tl years M&V) 26,255,016$

Client Initial Cash Payment 10,000,000$

-$

Amount to be Financed by Client: 16,255,016$

Year 1 Estimated Cash Flow: (743,484)$

Year 1 Cash Flow Based on Guaranteed Energy Savings

(90%):(747,372)$


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C. ITEMS INCLUDED IN THE MAXIMUM PROJECT COST

Maximum project costs include the following: (Refer to Section II. A. in the MESA for details)

a) Engineering audit, including the cost for preparation of this proposal, is a fixed fee.

b) The engineering design fee for mechanical, plumbing and general measures is calculated

at 6.8% of labor and material and includes mechanical, electrical, civil, structural,

architectural and wastewater engineering services associated with the project. The

engineering design fee for Ecoremedy gasification System Manufacturer Design was

stipulated in the Ecoremedy proposal and approved by the City. These are fixed fees.

c) The construction management service fee is calculated at 6.0% of labor and material.

This is a fixed fee.

d) The site superintendent services will be invoiced based on actual hours per the Master

Energy Services Agreement (MESA).

e) Installation of the ESCO Equipment including the following costs:

(1) All costs paid by the ESCO for the installation of the ESCO Equipment. This

includes costs paid to subcontractors or directly to ESCO personnel when

related to installation or system verification of the ESCO Equipment.

(2) The portion of reasonable travel, lodging, and meal expenses of the ESCO or

of its officers or employees incurred while traveling in the discharge of duties

connected with the work; per Section B of the MESA and OFM guidelines.

(3) Cost of all equipment, materials, supplies, and equipment incorporated in the

work, including costs of transportation thereof.

(4) Cost or rental charges, including transportation and maintenance, of all

materials, supplies, equipment, temporary facilities, and hand tools not

owned by the workers which are consumed in the performance of the Work,

and the cost less salvage value on such items used but not consumed which

remain the property of the ESCO.

(5) Cost of premiums for all bonds and insurance, which the ESCO is required to

purchase and maintain.

(6) Permit fees, royalties, and deposits lost for causes other than the ESCO's

negligence.

(7) Losses and expenses not compensated by insurance or otherwise sustained by

the ESCO in connection with the Work, provided they have resulted from

causes other than the fault or neglect of the ESCO. Such losses shall include

settlements made with the written consent and approval of the Owner. If,


Page 15 of 30

however, such loss requires reconstruction and the ESCO is placed in charge

thereof, the ESCO shall be paid for its services a fee.

(8) Demolition cost and cost of removal of all debris.

(9) Costs incurred due to an emergency affecting the safety of persons and

property.

(10) Other costs incurred in the performance of the Work if and to the extent

approved in advance in writing by the Owner.

(11) The cost of construction financing including contingency and an allowance for

Owner initiated scope improvements only if agreed to by the Owner and DES

Energy Program in advance.

(12) Cost of equipment startup, training, system verification and balancing

performed by the ESCO.

(13) Bonding, Liability Insurance, and Builder’s Risk Insurance.

(14) Overhead and Profit. This includes the ESCO’s remuneration for compensation

of personnel, expenses, risks related to the project, and profit. Overhead is

calculated at 10% of the labor and material, and profit is calculated at 8% of

labor and material. These are fixed fees.

(15) Metering equipment costs for any permanent metering or monitoring

equipment left on site.

(16) The ESCO shall provide a Schedule of Values at the end of construction

bidding and prior to the first application of payment. The schedule of values

will include all costs related to the installation of the ESCO equipment,

excepting fixed fee items; refer to General Conditions section 6.02 for details.

(17) The Total Project Cost proposed is valid for 120 days from the date of this

proposal. Beyond 120 days, Ameresco reserves the right to adjust the pricing

based on current labor and material costs.

D. EXCLUSIONS

Maximum project costs DO NOT include the following:

a) Parametrix (controls and SCADA sub-contractor) Design and Construction costs.

(Parametrix will be contracted directly with the City.)

b) Emissions consultant for PSCAA permitting, Coal Creak Environmental Associates. (CCEA

will be contracted directly with the City.)

c) Disposal of incinerator mercury modules.


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d) Sludge Hauling/diversion costs during construction (identified in ‘Temporary biosolids

handling’ technical memo).

e) Cost of upgrading the City-purchased Schwing hydraulic pack unit to new area

classification (Class 2 Div. 2)


Page 17 of 30

E. CONSTRUCTION CONTINGENCY

A construction contingency of $843,621 (not including sales tax) has been established for this

project. The contingency is for items necessary to complete the original scope of work upon

approval by the Owner and DES Energy Program. Such approval for the use of contingency funds

for work in the original scope shall not be unreasonably withheld. The ESCO shall not be allowed

to mark-up contingency funds expended for items included in the original scope of this project.

The ESCO and Owner will jointly manage any contingency left after the project scope is

completed. The ESCO shall be allowed to mark-up items beyond the original scope and

approved by Owner. All unused construction contingency funds shall reduce the overall project

cost to the Owner.

F. ONGOING SERVICES

Ongoing measurement and verification for the first year is included in the project fees. After the

end of Year 1, the ESCO will present a proposal to the Owner for ongoing measurement and

verification services for future years, at the owner’s request. These services will verify energy

savings and provide engineering assistance in maintaining the savings as described in Section III.

The owner may cancel these services at any time. Such cancellation will also terminate the

energy savings guarantee (Section XI).

Ecoremedy (ECR) “Optimization Service Contract”

Included is one-year “optimization services” which includes remote monitoring, remote trouble

shooting and help desk, automatic updates and upgrades, and two site visits at the 6 month and

1 year anniversaries from project acceptance. This includes two onsite visits for two days while

evaluating operations and suggesting improvements, if any, to optimize system performance

and to confirm performance capacity meets loading requirements stated in section VII.B.

G. ACCOUNTING RECORDS

The ESCO shall check all material, equipment, and labor entering into the Work and shall keep

such full and detailed accounts as may be necessary for proper financial management under this

Agreement. The accounting system shall be satisfactory to the Owner. The Owner shall be

afforded access to all the ESCO's records, books, correspondence, instructions, drawings,

receipts, vouchers, memoranda, and similar data relating to this Contract, and the Contractor

shall preserve all such records for a period of six (6) years, or for such longer period as may be

required by law, after the final payment. Refer to General Conditions section 6.04 for details.

H. RECONCILIATION OF LABOR & MATERIAL COSTS


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The financed amount is based on an estimate of Labor & Material costs. In recognition that

actual Labor & Material costs may vary from the estimate, the following procedures are

established to reconcile this difference:

a) When actual labor and material costs exceed the estimated labor and material costs

(plus contingency), the additional expense will be borne by the ESCO without affecting

the Owner’s payment

b) When actual labor and material costs are less than the estimated labor and material

cost (plus contingency), the remaining funds will be retained by the Owner

I. DIVERSE BUSINESS PARTICIPATION GOALS FOR THIS PROJECT

Ameresco supports the State of Washington’s diverse business inclusion plan targets and

recognizes the ability of the DES ESCO program to participate in contributing to these goals.

Ameresco understands the unique nature of ESCO work and acknowledges the responsibility to

DES and the client agency to provide a project that meets the client’s needs while providing the

guaranteed savings as agreed to and contracted. To support diverse business outreach in

Washington State. Ameresco has established the following diverse business participation goals

for this project:

State Certified Categories Original Contract

Percentages

Percentage for

construction

(This Project)

Percentage for

services

(This Project)

Minority-owned business 10% TBD TBD

Women-owned business 6% TBD TBD

Veteran-owned business 5% TBD TBD

Small/mini/micro business 5% TBD TBD

Ameresco will not be able to meet the original diverse participation goals for the following

reason:

• At this point in the design, bidding and sub-contracting process we are not able to

ascertain what the business diversity makeup will be.


Page 19 of 30

J. MINIMUM LEVELS OF APPRENTICESHIP

The ESCO shall comply with the requirements from the January 31, 2020 Supplemental

Conditions for Washington State Energy Savings Performance Contracting; Section 10.16

Minimum Levels of Apprenticeship Participation. For contracts greater than or equal to $1

million in construction cost, ESCOs meeting or exceeding the 15% apprenticeship utilization

requirement will receive a $1,000 incentive (including sales tax) which is included in the

Guaranteed Maximum Project Cost. The ESCO who fails to meet the utilization requirements

and fails to demonstrate a Good Faith Effort is subject to penalties, not to exceed five percent

(5%) of the Total Contract Sum.

The ESCO shall provide an Apprentice Utilization Plan demonstrating how and when the ESCO

intends to meet the requirements prior to submitting the first construction invoice for

construction labor.

VI. RECOMMENDATIONS FOR REPLACEMENT OF EXISTING EQUIPMENT

The audit included assessment of the belt conveyor in the Headworks building which moves

screenings into the grinder. Ameresco recommends replacing this conveyor with an enclosed

screw conveyor.

The WWTP has a system in place to accept outside septage from tanker trucks. This system

currently uses a pump which is enclosed in a “doghouse” next to the Headworks building which

will be displaced by the new EcoFilter system. Our project includes the demo of the “doghouse”

and pump but does not re-establish a system for receiving outside septage. Our design drawings

include “optional scope” to reconfigure existing WAS transfer pump #WAT-610 for this purpose,

which will be offered as “additive alternate scope”. Ameresco recommends converting WAT-610

for outside sludge transfer.

The Ecoremedy system has an option for a redundant “Class A Bypass” which includes a

pneumatic conveyance system and piping associated w/Class A biosolids. For cost savings this

option is not included in the base scope. Ameresco recommends including this optional scope if

the City prefers a redundant Class A biosolids trane.

Influent pumping

The plant currently employs an air-over-hydraulic actuator on the gravity outfall control valve in

the effluent building. These actuators consume compressed air to actuate their respective

valves. The gravity flow valve actuator operates in tandem with the effluent pumps: when the

effluent pumps are operating, the gravity flow valve is shut, and vice versa. Ameresco

recommends replacing the air-over-hydraulic valve actuator, on the 48-inch outfall control

valve, with an electronic actuator to conserve electrical energy by reducing load on the HPA

compressed air system.

Ameresco is working with the City of Edmonds WWTP to evaluate replacing one of the 100hp

influent pumps (Raw Sewage) with a “right-sized” smaller pump. This measure would de-rate

one of four pumps for pumping energy savings while still meeting the regulatory requirements


Page 20 of 30

for capacity and redundancy. Ameresco recommends replacing variable speed pump RS-103

with new pump rated at 5700 GPM utilizing a ‘Permanent Magnet’, premium efficiency Baldor

motor along with a new compatible VFD by Allen-Bradley (750 series).

VII. STANDARD OF SERVICE

A. HVAC COMFORT

The heating and ventilating (HV) systems provided by the ESCO will provide comfort and indoor

air quality in accordance with Exhibit 3. This standard will pertain only to buildings and areas of

buildings in which the ESCO is installing new HVAC equipment that has direct control over space

comfort conditions. HVAC comfort conditions cannot be guaranteed when operable windows

are open. Standards for HVAC comforts are as follows:

a) Industrial area Occupied Temperatures

(1) Winter Minimum – 60 Degrees F

(2) Winter Maximum – 80 Degrees F

(3) Summer Minimum – 70 Degrees F (where mechanical cooling is employed)

(4) Summer Maximum – 78 Degrees F (where mechanical cooling is employed)

b) Industrial area Unoccupied Temperatures

(1) Minimum – 55 Degrees F

(2) Maximum – 90 Degrees F

c) Relative Humidity (where humidity control is provided)

(1) Minimum – 40%

(2) Maximum – 60%

d) Minimum outside air per occupant shall be in accordance with American Society of

Heating, Refrigeration, and Air Conditioning Engineers (ASHRAE) standards and

Washington State Mechanical Code.

B. FLUID LIFT GASIFICATION SYSTEM BIOSOLIDS LOADING

The New Fluid Lift Gasification system will process 45 wet tons (9 dry tons, or 18,050 dry

pounds) per day @ 20% solids (20%-26.5%) 24 hours per day up to 7 days a week operating

time. This is also expressed as an hourly performance processing rate of 656 DRY pounds per

hour of dewatered biosolids at 26.5% solids content and approximately 96 pounds per hour of

screenings.

These solids loading and performance capacity ratings comply with the Basis of Design

concluded from the Engineering Report prepared by BHC Consultants as part of the 2018-19

design project. Performance and loading ratings are based upon the projected 20-year growth in

WWTP loading. The following is an excerpt from that report:


Page 21 of 30


Page 22 of 30

C. ECOFILTER ODOR CONTROL SYSTEM

The odor control system shall provide equivalent levels to what the plant maintained in the

previous year assuming equivalent influent flows and BOD loading.


Page 23 of 30

VIII. BASELINE ENERGY CONSUMPTION

A. OVERALL RESOURCES USE

Fuel Cost ($) Average Annual

Consumption Time Period

Utility Provider

Electricity (kWh) $ 237,571

3,191,100 Jan 2019 Dec 2019 SNOPUD Electricity (kW) 7,244 Jan 2019 Dec 2019 SNOPUD Natural Gas (therms) $ 1,270 1,560 Jan 2019 Dec 2019 PSE Average Influent Flow (4.8 MGD) N/A 1,752 Jan 2016 Dec 2019 Plant Data Oil (gal) $ 37,182 15,494 Jan 2018 Dec 2019 APP

B. BY FACILITY RESOURCE USES

IX. ESTIMATED ANNUAL SAVINGS AMOUNT & UTILITY INCENTIVE

A. ELECTRICAL

The ESCO estimates that annual electrical costs will be reduced by $7,173. This estimate is based

on an annual consumption being reduced by 79,706 kWh and 3772 kW.

Facility (kWh) (kBtu) (Therms) (kBtu) (MGD) (Gallons) (kBtu)

WWTP 3,191,100 10,891,224 1,560 155,962 4.8 15,494 2,148,795

Total 3,191,100 10,891,224 1,560 155,962 4.8 15,494 2,148,795

Average Influent Flow Annual Oil UsageAnnual Electrical Usage Annual Gas Usage


Page 24 of 30

B. NATURAL GAS

The ESCO estimates that annual natural gas cost will increase by $2,621. This estimate is based

on the annual consumption being increased by 4,160 therms.

C. FUEL OIL

The ESCO estimates that annual oil cost will be reduced by $34,333. This estimate is based on

the annual consumption being reduced by 14,306 gallons.

D. UTILITY INCENTIVE

The ESCO estimates that an incentive in the amount of $20,000 will be provided by Sno PUD for

electrical savings.

X. METHOD OF CALCULATING ENERGY SAVINGS & ENERGY COST SAVINGS

A. ENERGY AUDIT

The energy cost savings are calculated in Exhibit 1. These savings calculations have been

reviewed and accepted by the DES Energy Program project management, the Owner and the

ESCO.

B. CALCULATION OF SAVINGS

1. The Owner, DES, and the ESCO agree that the energy savings exists if the ESCO equipment

performs as described below (as measured per Section IV.6):

a) Fluid Lift Gasifier system installed by the ESCO: These systems perform properly

when able to process 45 wet tons (9 dry tons, or 18,050 dry pounds) per day @ 20%

solids (20%-26.5%) 24 hours per day up to 7 days a week operating time. This is also

expressed as an hourly performance processing rate of 656 DRY pounds per hour of

dewatered biosolids at 26.5% solids content and approximately 96 pounds per hour

of screenings.

b) Odor Control system installed by the ESCO: These systems perform properly when

the systems provide equivalent levels of odorous compound removal to what the

plant maintained in the previous year assuming equivalent influent flows and BOD

loading. (BioAir EcoFilter performance: Average H2S removal greater than 99% or


Page 25 of 30

average outlet H2S concentration less than 0.5 ppmv, whichever is less stringent,

based on table 1.1 design criteria expressed in section VII.B)

2. The Owner and the ESCO agree that should the ESCO installed equipment not perform as

outlined in Section X.B.1, the ESCO shall pay the equivalent value of the guaranteed level of

the calculated energy savings associated with the failed area. The Owner agrees to notify

the ESCO by telephone within two working days of detecting any non-performing ESCO

installed equipment with a follow-up in writing within three business days; refer to Section

1.C for contact information.

3. The ESCO shall have up to four (4) weeks from notification to repair the ESCO equipment

without reduction of savings.

4. Modifications to Baseline by Owner: The Owner shall maintain all existing facilities and

installed equipment during the term of this contract at or above current maintenance levels.

Owner agrees to maintain the energy efficiency of the systems installed.

5. The energy savings calculations are based upon the plant current average operating loads of

4.8 MGD of influent flow and 524 dry lbs. per hr. of solids loading, which includes

screenings. If the future plant operating loads deviate from this baseline it could have an

impact on actual energy savings.

XI. FINANCING

Project financing will be provided by the Owner.

XII. ENERGY SAVINGS GUARANTEE

The ESCO guarantees that the equipment will perform as indicated in Section X - Method of

Calculating Energy Savings & Energy Cost Savings. This performance level is guaranteed for 1

year following the notice of commencement of savings (defined as Year 1), or for the duration of

the monitoring and verification services, whichever is shorter. Based on this performance, and

as indicated in Exhibit 1, electrical savings will not be less than 71,736 kWh per year, oil savings

will not be less than 12,875 gallons per year. This corresponds with 90% of the estimated energy

savings.

Natural gas increases due to fuel switch from oil to gas: increased gas consumption will not be

more than 4,576 therms per year. This corresponds with 110% of the estimated energy

increase.]


Page 26 of 30

In the event that the guaranteed performance in Year 1, pursuant to Section X – Method of

Calculating Energy Savings & Energy Cost Savings, is less than the guaranteed minimum, the

ESCO shall pay the Owner in accordance with Section X.B.2.

XIII. ESCO COMPENSATION

A. PAYMENTS

1. Owner agrees to make progress payments based on construction progress and one subsequent

payment for retainage.

2. Retainage will be released within 45 days after receipt of all lien releases, L&I releases, and

Revenue and Employment Security certificates and releases by Owner.

XIV. TERMS OF AGREEMENT

Subject to the following sentence, the term of this Contract shall be 1 year(s) beginning with the

Notification of Commencement of Energy Savings. Nonetheless, the Contract shall be effective

and binding upon the parties immediately upon its execution, and the period from contract

execution until the Commencement Date shall be known as the "Interim Period." All energy

savings achieved during the Interim Period will be fully credited to Customer.

XV. TERMINATION VALUE

Upon commencement of energy savings, Owner may at any time terminate this Agreement.

Any termination shall fully and finally terminate and extinguish all the Owner's rights and all of

the ESCO's obligations under this agreement.

XVI. PROJECT SCHEDULE

The ESCO will complete design work within 180 days of Notice to Proceed. Construction work

will be substantially complete within 395 days of design acceptance. Final completion will be

within 485 days of design acceptance.


Page 27 of 30

XVII. EXTENT OF SUBCONTRACTING

The ESCO may subcontract the energy audit, design, construction management, start-up, and

training portions of this Contract to qualified firms at its sole discretion. Construction

subcontracts may be awarded competitively or may be directly sourced to a selected contractor

should the owner and ESCO agree.

The ESCO will endeavor to satisfy the MWBE goals of Washington State. The ESCO will not be

required to meet these goals if the project budget is exceeded and cost effectiveness is

impaired.

XVIII. INSURANCE & BONDING

1. The ESCO shall provide a payment and performance bond in accordance with Exhibit 3. Builders

Risk Insurance will also be provided by the ESCO.

2. For the purposes of this Agreement, the "Sum Amount of Bond" shall be $17,863,200. This

amount does not include any construction contingencies.

3. The bond amount consists of the following:

i. Labor, Material & Bond Cost………. $16,180,435

ii. Sales Tax…………………………………….. $1,682,765

iii. Bond Total………………………………….. $17,863,200

(a) Certificates of General Liability Insurance will be provided prior to Contract Signing. The

Owner (through the State of Washington) and the State of Washington shall be named as An

Additional Insured on all insurance certificates.

4. The ESCO shall provide a payment and performance bond in the amount of 100% of the

construction cost, as defined in the Energy Services Agreement Addendum. The amount shall

include all authorized changes and state sales tax. The Bond shall be in the form attached to the

Conditions of the Energy Services Agreement. The Contract listed on the bond form shall be the

Addendum No. and Agreement No. which incorporates the work, and the “Contract Date” shall

be the date of the Addendum. The full and just sum of the Bond shall be as defined above and

shall include the actual cost of purchasing and installing the ESCO equipment, job

superintendent, and state sales tax. The Bond shall specifically exclude coverage for those

portions of the Energy Services Agreement and/or Energy Services Agreement Addendum

pertaining to design services, energy cost savings guarantee, maintenance guarantee, utility

incentives, efficiency guarantees, and any other clauses which do not relate specifically to

construction management and supervision of work for purchasing and installing of the ESCO

Equipment or for work to be accomplished by the Owner. The Bond shall be with a Surety or

Bonding Company that is registered with the State of Washington Insurance Commissioner's

Office.


Page 28 of 30

XIX. RENEGOTIATION

Both parties recognize that during the project implementation, the DES Energy Program

Manager, Owner, and the ESCO may mutually agree to various modifications and that the

energy savings may change as a result. Further, local code officials may require unanticipated

changes to the project scope. In either event, both parties shall negotiate in good faith to

restructure the project to maintain the intent of this Agreement.

XX. EXHIBITS & TABLES

Please see attached exhibits & tables


Page 29 of 30

A. TABLE 1: FINANCIAL ANALYSIS

I. PROJECT COSTS & ENERGY SAVINGS FOR SELECTED OPTIONS

PROJECT COSTSMech, Water,

General

Lighting Total Project

Costs

Engineering Audit -$ -$ -$

Estimated Labor and Material Cost 15,935,035$ -$ 15,935,035$

M,W,G Design @ 6.8% of Labor & Material 1,141,775$ 1,141,775$

System Mfr Design @ 9.6% of Labor & Material 1,531,600$ -$ 1,531,600$

Construction Mgt @ 6.0% of Labor & Material 956,103$ -$ 956,103$

Site Supervision -$ -$ -$

Bonding @ 1.5% of Labor & Material 245,400$ -$ 245,400$

ESCO Overhead @ 10.0% of Labor & Material 1,593,504$ -$ 1,593,504$

ESCO Profit @ 8.0% of Labor & Material 1,274,803$ -$ 1,274,803$

1st Year of M&V - Ameresco 6,500$

0 Additional Years of M&V - Ameresco -$

Subtotal: 22,678,220$ -$ 22,684,720$

Construction Contingency @ 5.3% of CC 843,621$ -$ 843,621$

Apprenticeship Incentive 905.80$

Subtotal - Maximum Project Cost: 23,521,841$ -$ 23,529,246.80$

Est. Sales Tax @ 10.4% of Maximum Project Cost 2,446,271$ -$ 2,447,042$

1 Years of M&V - DES -$

DES Project Management Fees 298,727$

TOTAL PROJECT PRICE: 25,968,112$ -$ 26,275,016$

Estimated Utility Incentive 20,000$ -$ 20,000$

Grant Request -$

Estimated Client Net Cost (excluding add'tl years M&V) 26,255,016$

Client Initial Cash Payment 10,000,000$

-$

Amount to be Financed by Client: 16,255,016$

Year 1 Estimated Cash Flow: (743,484)$

Year 1 Cash Flow Based on Guaranteed Energy Savings

(90%):(747,372)$

ECONOMIC ASSUMPTIONS

Interest Rate : 3.00%

Financing Term: 20 years

Payments/year: 2Est Annual Rate of Energy Increases: 1.50%

Savings Guarantee: 90%

NPV life: 20 yearsClient Discount Rate: 2.0%

Reinvest Rate 2.0%

Marginal Tax Rate 0.0%Simple Payback Period Including Fees: 675.2

20 Yr Estimated Net Present Value (20,660,593)$

20 Yr Estimated Modified Internal Rate of Return -100%

ANNUAL ENERGY SAVINGS Mechanical Water Lighting General Total

Electrical Savings (kWh) 79,706 0 0 0 79,706

Electrical Savings (kW) 314 0 0 0 314Nat Gas Savings (Therms) -4,160 0 0 0 -4,160

Oil (Gal) 14,306 0 0 0 14,306

Propane (Gal) 0 0 0 0 0

Water Savings (CCF) 0 0 0 0 0$ Saved 38,885$ -$ -$ -$ 38,885$


Page 30 of 30

SUPPLEMENT TO TABLE 1 – DETAIL OF PROJECT COSTS AND FEES BY CALLENDAR YEAR

Project Name: Edmonds WWTP Carbon Recovery - Project B

CONSTRUCTION PHASING & COSTS BREAKDOWN (Phases 6-C, D and E)2020 2021 2022

Budget

Year

CONSTRUCTION COSTS

Labor & Mtrls.

Equipment

Services

Labor & Mtrls.

Equipment

Services

M&V Phase

Total Project

Costs

2019

Building Permit Application - (provided in the 2019 Design contract, paid by Ameresco)

(Estimated Cost) -$ -$ -$ -$

2020 Ecoremedy Preliminary Design ($90K of $180K total design fee) -$ -$ -$

2020

General Mechanical (GM) (CY 2020)- L&M:

Site Prep, Opening in Wall of solids bldg., Screenings Equip. and Mod's, 492,000$ -$ 492,000$

2020

Modifications for temporary hauling of dewatered sludge and screenings (potentially temporary

washer compactor in parking lot) -$ -$

2021


Demo incinerator; Install Gasifier and Dryer, Conveyance, Odor scrubber, piping, ductwork,

electrical and misc 4,953,370$ -$ 4,953,370$

2021


Service and access platforms designed and furnished by Ecoremedy, installation by General

Mechanical 19,000$ -$ 19,000$

2020

Ecoremedy (CY 2020) - equipment package (Dryer, Gasifier, Scrubber, GAC, Conveyance,

Service Platforms, Controls, ancillary equipment)

net ___% deposit to initiate order 4,242,275$ -$ -$ 4,242,275$

2021

Ecoremedy (CY 2021) - equipment package (Dryer, Gasifier, Scrubber, GAC, Conveyance,

Service Platforms, Controls, ancillary equipment)

net ___% to complete project 5,193,875$ -$ 5,193,875$

2020-21

BioAir EcoFilter -

New odor control central unit for plant foul air system 125,000$ 266,515$ -$ 391,515$

2021 Schwing-Bioset Dewatered Sludge Silo (included in ECR scope of supply) -$ -$

2020-21 Ameresco - Construction site supervision -$ -$ -$ -$

2020-21 Ameresco - Commissioning, Balancing 9,600$ 38,400$ -$ 48,000$

2022

Ecoremedy 1-yr. optimization and M&V

(50% at 6-months after acceptance, 100% at 12-months) 580,000$ 580,000$

2021 Special Inspections (Mayes or other) -$ 15,000$ -$ 15,000$

SUB-TOTAL BASE SCOPE 4,868,875$ 10,486,160$ 580,000$ 15,935,035$

ADDITIVE ALTERNATE SCOPE (LABOR, MATERIALS, EQUIPMENT)

2021 Headworks - Screenings conveyor - optional scope -$ -$ -$

2021 WAT-610 - Outside Sludge Transfer Pump revisions - optional scope -$ -$

2021

Ecoremedy system Class A Bypass (Add. Alt.1): pneumatic conveyance system and piping

associated w/Class A (equipment and installation costs) -$ -$

SUB-TOTAL ADD ALT SCOPE -$ -$ -$ -$

SUB-TOTAL EQUIPMENT AND CONTRACTORS (Phase 6C & 6D) 4,868,875$ 10,486,160$ 580,000$ 15,935,035$

2020 Ameresco Feasibility Study and Preliminary Design for Project B 63,614$ -$ -$ 63,614$

2020 Ecoremedy - Equipment manufacturer design fees 1,531,600$ -$ 1,531,600$

2020 Design Sub-consultants - Design & Construction Phase Services 480,505$ 231,150$ 711,655$

2020 ESCO Design @ 2.3% of Labor & Material 111,984$ 241,182$ 13,340$ 366,506$

2020-21 Construction Mgt @ 6.0% of Labor & Material 292,133$ 629,170$ 34,800$ 956,103$

2020-21 Bonding @ 1.5% of Labor & Material 74,981$ 161,487$ 8,932$ 245,400$

2020-21 ESCO Overhead @ 10.0% of Labor & Material 486,888$ 1,048,616$ 58,000$ 1,593,504$

2020-21 ESCO Profit @ 8.0% of Labor & Material 389,510$ 838,893$ 46,400$ 1,274,803$

2022 1st Year of Ameresco M&V -$ -$ 6,500$ 6,500$

Subtotal Including Professional Services: 8,300,090$ 13,636,658$ 747,972$ 22,684,720$

Construction Contingency Fund @ 5.5% of CC 267,501$ 576,120$ -$ 843,621$

WA State Required $1,000 Apprenticeship Incentive (pre-tax) -$ 905.80$ -$ 905.80$

GMAX - Guaranteed Maximum Project Cost: (Base Scope and Contingency Fund) 8,567,591$ 14,213,684$ 747,972$ 23,529,247$

2020-22 Est. Sales Tax @ 10.4% of Maximum Project Cost 891,029$ 1,478,223$ 77,789$ 2,447,042$

2020-22 TOTAL OF BASE SCOPE PROJECT COSTS (including tax): 9,458,620$ 15,691,907$ 825,761$ 25,976,288$

2022 WA-DES Project Management Fees 298,727$ 298,727$

2020-22 TOTAL OF ESCO PROJECT COSTS (including tax and DES fees): 9,458,620$ 15,691,907$ 1,124,488$ 26,275,015$

May 28, 2020

Calendar Year


Page 31 of 30

PROJECT COSTS TO BE PROCURED BY CITY OF EDMONDS

2020 Design - Parametrix (controls sub) parts/smarts/conduit/wiring (CY 2020) 77,850$ -$ 77,850$

2020-21 Construction - Parametrix (controls sub) parts/smarts/conduit/wiring (CY 2020, 2021) 234,681$ -$ 234,681$

2020-21 Emissions Consultant for Permitting (CCEA) 25,000$ 10,000$ -$ 35,000$

2020 Ecoremedy Preliminary Design (1st half of $180K total design fee) -$ -$

2021 Sludge hauling costs during outage -$ -$ -$

2021 Sludge diversion costs (to King County) -$ -$ -$

SUB-TOTAL CITY SCOPE 102,850$ 244,681$ -$ 347,531$

2020-21 Est. Sales Tax @ 10.4% of Sub-Total City Scope 10,696$ 25,447$ -$ 36,143$

GRAND TOTAL PROJECT COST AND FEES 9,572,166$ 15,962,035$ 1,124,488$ 26,658,689$

These Fiscal Year costs include "costs to be procured by City of Edmonds"

2020 Fiscal Year that costs would be paid (includes sales tax) 9,572,166$ 9,572,166$

2021 Fiscal Year that costs would be paid (includes sales tax) 15,962,035$ 15,962,035$

2022 Fiscal Year that costs would be paid - DES and M&V 1,124,488$ 1,124,488$


Page 32 of 30

B. TABLE 2: CASH FLOW

II. PROJECT CASH FLOW FOR SELECTED OPTIONS

PROJECT SAVINGS BASED ON ESTIMATED ENERGY SAVINGS (100%)Year ending 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Reference year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Mechanical, General, and Water savings -$ 38,885$ 39,469$ 40,061$ 40,662$ 41,272$ 41,891$ 42,519$ 43,157$ 43,804$ 44,461$ 45,128$ 45,805$ 46,492$ 47,189$ 47,897$ 48,616$ 49,345$ 50,085$ 50,836$ 51,599$

Lighting Savings: -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Lighting Maintenance Savings -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Other Maintenance Savings -$ 304,347$ 310,434$ 316,643$ 322,975$ 329,435$ 336,024$ 342,744$ 349,599$ 356,591$ 363,723$ 370,997$ 378,417$ 385,986$ 393,705$ 401,579$ 409,611$ 417,803$ 426,159$ 434,682$ 443,376$

Depreciation Tax Credit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Total Savings: -$ 343,232$ 349,903$ 356,704$ 363,637$ 370,707$ 377,915$ 385,263$ 392,756$ 400,395$ 408,184$ 416,125$ 424,222$ 432,478$ 440,894$ 449,476$ 458,227$ 467,148$ 476,244$ 485,518$ 494,975$

Cumulative Savings: -$ 343,232$ 693,135$ 1,049,839$ 1,413,475$ 1,784,182$ 2,162,096$ 2,547,359$ 2,940,115$ 3,340,510$ 3,748,694$ 4,164,819$ 4,589,041$ 5,021,519$ 5,462,414$ 5,911,890$ 6,370,117$ 6,837,265$ 7,313,509$ 7,799,027$ 8,294,002$

PROJECT SAVINGS BASED ON GUARANTEED ENERGY SAVINGS (90)%Year ending 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Mechanical, General, and Water savings -$ 34,997$ 35,521.77$ 36,055$ 36,595$ 37,144$ 37,702$ 38,267$ 38,841$ 39,424$ 40,015$ 40,615$ 41,224$ 41,843$ 42,470$ 43,108$ 43,754$ 44,410$ 45,077$ 45,753$ 46,439$

Lighting Savings: -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Lighting Maintenance Savings -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Other Maintenance Savings -$ 304,347$ 310,434$ 316,643$ 322,975$ 329,435$ 336,024$ 342,744$ 349,599$ 356,591$ 363,723$ 370,997$ 378,417$ 385,986$ 393,705$ 401,579$ 409,611$ 417,803$ 426,159$ 434,682$ 443,376$

Depreciation Tax Credit -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Total Savings: -$ 339,344$ 345,956$ 352,698$ 359,570$ 366,579$ 373,726$ 381,011$ 388,440$ 396,015$ 403,738$ 411,612$ 419,641$ 427,829$ 436,175$ 444,687$ 453,365$ 462,213$ 471,236$ 480,435$ 489,815$

Cumulative Savings: -$ 339,344$ 685,300$ 1,037,997$ 1,397,568$ 1,764,147$ 2,137,872$ 2,518,884$ 2,907,324$ 3,303,338$ 3,707,076$ 4,118,688$ 4,538,330$ 4,966,159$ 5,402,334$ 5,847,021$ 6,300,386$ 6,762,599$ 7,233,835$ 7,714,270$ 8,204,085$

ANNUAL PROJECT COSTS

Amount Financed: 16,255,016$

Cash Payment: 10,000,000$

Year ending 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Annual Financing Costs 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$

Ameresco Measurement and Verification -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

DES Measurement and Verification -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$

Total Annual Costs to Client 10,000,000$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$ 1,086,716$

NET ANNUAL CASH FLOW WHEN FINANCING PROJECT:Year ending 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040

Cash Flow from Estimated

Energy Savings

(with inflation)

(10,000,000)$ (743,484)$ (736,814)$ (730,012)$ (723,080)$ (716,010)$ (708,802)$ (701,453)$ (693,960)$ (686,321)$ (678,532)$ (670,591)$ (662,494)$ (654,238)$ (645,822)$ (637,240)$ (628,489)$ (619,568)$ (610,472)$ (601,198)$ (591,741)$

Cumulative (10,000,000)$ (10,743,484)$ (11,480,297)$ (12,210,310)$ (12,933,389)$ (13,649,399)$ (14,358,201)$ (15,059,654)$ (15,753,614)$ (16,439,935)$ (17,118,467)$ (17,789,058)$ (18,451,553)$ (19,105,791)$ (19,751,612)$ (20,388,852)$ (21,017,342)$ (21,636,910)$ (22,247,382)$ (22,848,580)$ (23,440,321)$

Cash Flow from Guaranteed

Energy Savings

(with inflation)

(10,000,000)$ (747,372)$ (740,760)$ (734,019)$ (727,146)$ (720,137)$ (712,991)$ (705,705)$ (698,276)$ (690,701)$ (682,978)$ (675,104)$ (667,075)$ (658,887)$ (650,541)$ (642,030)$ (633,351)$ (624,503)$ (615,481)$ (606,281)$ (596,901)$

Cumulative (10,000,000)$ (10,747,372)$ (11,488,133)$ (12,222,151)$ (12,949,297)$ (13,669,434)$ (14,382,424)$ (15,088,129)$ (15,786,406)$ (16,477,107)$ (17,160,085)$ (17,835,189)$ (18,502,264)$ (19,161,151)$ (19,811,692)$ (20,453,721)$ (21,087,072)$ (21,711,575)$ (22,327,056)$ (22,933,337)$ (23,530,238)$


Page 33 of 30

C. TABLE 3: FULL LIST OF MEASURES


Page 34 of 30

D. TABLE 4: SELECTED MEASURES

Baseline Proposed Savings Current Current Current Current Current Current Future Future Future Future Future Future Annual Annual Annual Annual Labor/Mat'l Estimated Final Simple

ECM # Conservation Measure Gas Oil Electric Gas Oil Total Gas Oil Electric Gas Oil Total Gas Oil Resource O&M Cost Utility Labor/Mat'l Payback

Consume Demand Use Use Cost Cost Cost Cost Consume Demand Use Use Cost Cost Cost Cost Consume Demand Savings Savings Savings Savings Incentive Cost

Selected? kWh kW (Therms) (Gal) $ $ $ $ kWh kW (Therms) (Gal) $ $ $ $ kWh kW (Therms) (Gal) $ Yr 1 $ $

Incinerator Replacenment Options

Mechanical Conservation Measures

No Project AReplace existing SSI with Centrisys dryer and Bioforcetech Pyrolysis system

Yes Project BReplace existing SSI with Ecoremedy Gasification system

1,575,968 3,143 15,494 126,097 37,184 $163,281 1,496,262 2,829 4,160 1,188 $118,924 $2,621 $2,851 $124,396 79,706 314 -4,160 14,306 $38,885 $304,347 $15,935,035 $20,000 $15,915,035 38.95

No Project CReplace existing SSI with new Suez Incinerator

(This option has not been fully evaluated for energy and operational costs)

Totals: 1,575,968 3,143 - 15,494 126,097$ -$ 37,184$ 163,281$ 1,496,262 2,829 4,160 1,188 118,924$ 2,621$ 2,851$ 124,396$ 79,706 314 (4,160) 14,306 38,885$ 304,347$ 15,935,035$ 20,000$ 15,915,035$ 33.0

Annual Savings

Electric

Current Annual Use -

Electrical

Future Total Annual

Use - Electric

energy services proposal

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