2008-26809 ResoRESOLUTION NO. 2008-26809
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION TO ENTER
INTO NEGOTIATIONS WITH AMERESCO, INC., PURSUANT TO REQUEST
FOR PROPOSALS (RFP) NO. 06-07/08, FOR AN ENERGY SAVINGS
PERFORMANCE-BASED CONTRACT, AND SHOULD THE ADMINISTRATION
NOT BE ABLE TO NEGOTIATE AN AGREEMENT WITH AMERESCO, INC.,
AUTHORIZING THE ADMINISTRATION TO NEGOTIATE WITH JOHNSON
CONTROLS, INC.; FURTHER AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AN AGREEMENT, UPON CONCLUSION OF SUCCESSFUL
NEGOTIATIONS.
WHEREAS, on October 17, 2007, the Mayor and City Commission approved the
issuance of a Request for Proposals (RFP) for an Energy Savings Performance-Based Contract
(ESPC); and
WHEREAS, the development and implementation of the ESPC will provide the City of
Miami Beach with guaranteed energy utility savings; and
WHEREAS, RFP No. 06-07/08 was issued on November 5, 2007, with an opening date
of January 16, 2008; and
WHEREAS, BidNet and RFP Depot issued bid notices to 117 and 1,436 prospective
firms, respectively, while at least 70 prospective firms viewed the RFP documents, which
resulted in the receipt of the following three (3) proposals;
1. Ameresco, Inc.;
2. Johnson Controls, Inc.;
3. Siemens Building Technologies, Inc.; and
WHEREAS, the proposal by Siemens Building Technologies, Inc. was deemed non-
responsive for failing to provide the cost information criteria set forth in the RFP; and
WHEREAS, the City Manager, via Letter to Commission (LTC) No. 058-2008,
appointed an Evaluation Committee ("the Committee") which convened on March 11, 2008, to
evaluate, score, and rank the proposals; and
WHEREAS, on March 11, 2008, the Committee convened to evaluate, score and rank
the proposals in accordance with the criteria set forth in the RFP; and
WHEREAS, based on the scores and rankings, Johnson Controls, Inc. received first-
place votes from four (4) of the seven (7) Committee members; and
WHEREAS, a motion was made, seconded, and approved by the Committee to
recommend that the City Manager negotiate an Agreement with the top-ranked firm of
Johnson Controls, Inc. and to negotiate with the second-ranked firm of Ameresco, Inc. should
negotiations with the top-ranked firm be unsuccessful; and
WHEREAS, while the City Manager concurred with the Committee's recommendation
but, since the Committee's ranking of both firms was extremely close, the City Manager
invited said firms to present to the Mayor and City Commission; and
WHEREAS, at its regular meeting on April 16, 2008, the Mayor and City Commission
listened to presentations by both Johnson Controls and Ameresco; and
WHEREAS, the Mayor and City Commission, after extensive discussion, including
asking numerous questions of representative of Johnson Controls and Ameresco, selected
Ameresco as the top-ranked firm based on an expected higher dollar guarantee energy
savings to the City; and
WHEREAS, the Mayor and City Commission authorized the Administration to enter
into negotiations with Ameresco; and if unsuccessful, authorized negotiations with Johnson
Controls; and
WHEREAS, the Mayor and City Commission further authorized the Mayor and City
Clerk to execute an Agreement upon completion of successful negotiations by the
Administration.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
approve and authorize the Administration to enter into negotiations with Ameresco, Inc.,
pursuant to Request for Proposals (RFP) No. 06-07/08, for an energy savings performance-
based contract, and should the Administration not be able to negotiate an agreement with
Ameresco, Inc., authorizing the Administration to negotiate with Johnson Controls, Inc.; further
authorizing the Mayor and City Clerk to execute an agreement, upon conclusion of successful
negotiations.
PASSED AND ADOPTED this 16thday of April , 2008.
ATTEST:
CITY CL RK
Robert Parcher
T:\AGENDA\20081May 14\Consent\Energy Savings Pertormance Based Contract.doc
APPROVED AS TO
FORM ~ LANGUAGE
Condensed Title:
A Resolution Accepting the City Manager's Recommendation, Pursuant to Request for Proposals (RFP) No. 06-
07/08, Authorizing the Administration to Enter into Negotiations with the Top-Ranked Firm, Johnson Controls, Inc., to
Develop and Implement an Energy Savings Performance-Based Contract.
Ke Intended Outcome Su orted:
Ensure Well-Desi ned Facilities• Im rove the Ci 's Overall Financial Health & Maintain Overall Bond Ratin
Su ortin Data Surve ,Environmental Scan, etc.
The City's Facility Condition Index Rating (FCI) determines the state of each City facility. Energy savings would not
onl hel modernize and im rove these facilities, but also allow the Ci to save on ene costs.
Issue:
Shall the Ci Commission ado t the Resolution?
item summa ~Recommenaation:
The purpose of this Request for Proposals (RFP) is to select a qualified Energy Savings Company (ESCo) to prepare
and implement an Energy Savings Performance-Based Contract (ESPC). The state-licensed ESCo will provide, and
not be limited to, the following services as defined in the tasks below:
Task 1: Conduct a detailed energy audit assessing all City properties and altemative sources including solar, wind,
geo-thermal, and other renewable energy sources consisting of an investment grade energy and utility conservation
audit of all City properties and facilities.
Task 2: Provide a listing of energy conservation measures addressing the detailed energy audit findings in addition
to their implementation feasibility.
Task 3: Provide guarantees of scheduled costs and savings to the City for the life of the ESPC.
Task 4: Develop a financing program to fund the proposed conservation measures and to maximize the City's
potential energy savings. The state-licensed ESCo should also provide a listing of altemative financing options for
the City to consider.
Task 5: Identify and quantify all available rebates and incentive programs offered by area utilities.
RFP No. 06-07/08 was issued on November 5, 2007 with an opening date of January 16, 2008. APre-Proposal
Submission Meeting to provide information to firms submitting a proposal was held on November 20, 2007, which
resulted in the issuance of the following addenda:
• Addendum 1 -November 16, 2007
• Addendum 2 -November 26, 2007
• Addendum 3 -December 4, 2007
• Addendum 4 -December 12, 2007
• Addendum 5 -December 14, 2007
BidNet and RFP Depot issued bid notices to 117 and 1,436 prospective firms respectively while at least 70
prospective firms viewed the RFP documents, which resulted in the receipt of the following three (3) proposals:
• Ameresco, Inc.
• Johnson Controls, Inc.
• Siemens Building Technologies, Inc. (deemed nonresponsive to RFP)
The City Manager via Letter to Commission (LTC) No. 058-2008, appointed an Evaluation Committee (the
"Committee") that convened on March 11, 2008, to evaluate, score, and rank the proposals.
Based on the scores and rankings ofthe Committee members, Johnson Controls, Inc. received afirst-place ranking
from four (4) of the seven (7) committee members. The recommended ranking order was motioned by Georgina
Echert and seconded by Dolores Mejia.
the
and Authorize
Haviso tsoara Kecommenaation:
N/A
Financial Information:
Source of Amount Account Approved
Funds:
2
OBPI Total
Financial Impact Summary:.
City Clerk's Office Legislative Tracking:
ar I f1 Citv~r~aec _ /
T:~AGE
06-07-08 -
m MIAMIBEACH
AfaENDA ITEM ~ /l
DATE ~'~6'd r0
~ MIAMIBEACH
City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Commis ion
FROM: Jorge M. Gonzalez, City Manager „~~
DATE: April 16, 2008
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER, PURSUANT TO REQUEST FOR PROPOSALS (RFP) NO.06-
07/08, FOR AN ENERGY SAVINGS PERFORMANCE-BASED CONTRACT;
AUTHORIZING THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH
THE TOP-RANKED FIRM OF JOHNSON CONTROLS, INC., AND SHOULD THE
ADMINISTRATION NOT BE ABLE TO NEGOTIATE AN AGREEMENT WITH THE
TOP-RANKED FIRM, AUTHORIZING THE ADMINISTRATION TO NEGOTIATE
WITH THE SECOND-RANKED FIRM OF AMERESCO, INC.; FURTHER
AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN
AGREEMENT, UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
CONTRACT FUNDING
Funding for this Project to be provided from realized energy savings. As stated in Section I
of the RFP, the ESCo guarantees that the energy savings be achieved through various
energy conservation measures, would pay for all project costs.
ANALYSIS
On October 17, 2007, the Mayor and City Commission approved the issuance of a Request
for Proposals (RFP) for an Energy Savings Performance-Based Contract (ESPC).
The purpose of this RFP is to select a qualified firm to develop and implement the ESPC.
An ESPC is an agreement between a government entity and a private energy services
company (ESCo) that uses future energy savings to pay for the entire cost of a government
facility's electricity and energy efficiency retrofits. The government entity contracts with an
ESCo, which then finances or arranges financing, designs, purchases, installs and maintains
energy saving equipment. The ESCo also guarantees that the energy savings, which can be
achieved through various energy conservation measures, would pay for all project costs.
The Ad Hoc Green Committee unanimously passed a motion that the City issue an RFP for
an ESPC. The selected ESCo will perform an internal analysis of the energy systems
operating in City-owned buildings and their energy consumptions in order to develop and
implement long-term energy and utility conservation initiatives.
Commission Memorandum -RFP 06-07/08 -Energy Savings Performance-Based Contract
April 16, 2008
Page 2 of 7
SCOPE OF SERVICES
Pursuant to Section 489.145 of the Florida Statutes (see Attachment "A"),the City may enter
into a guaranteed ESPC with astate-licensed ESCo to reduce energy and/or operating
energy and utility costs of a City facility through one or more energy conservation measures.
A state-licensed ESCo must also be selected incompliance with F.S. Section 287.055 (the
Consultants' Competitive Negotiation Act, or CCNA).
The state-licensed ESCo will provide, and not be limited to, the following services as defined
in the tasks below:
1) Conduct a detailed energy audit assessing all City properties and alternative sources
including solar, wind, geo-thermal, and other renewable energy sources. The
detailed energy audit shall consist of a comprehensive grade energy and utility
conservation audit of all City properties and facilities.
2) Provide a listing of energy conservation measures addressing the detailed energy
audit findings in addition to their implementation feasibility.
3) Provide guarantees of scheduled costs and savings to the City forthe negotiated life
of the ESPC.
4) Develop a financing program to fund the proposed conservation measures and to
maximize the City's potential energy savings. The state-licensed ESCo should also
provide a listing of alternative financing options for the City to consider.
5) Identify and quantify all available rebates and incentive programs offered by area
utilities.
Upon completing these tasks, the City would then review the ESCo's report without future
financial commitment and recommend steps for further implementation. If the City refuses to
implement the report, the ESCo shall be compensated for costs incurred in developing the
report. The Contractor is responsible for itemizing the costs for the City to review and
approve.
TERM OF CONTRACT
The services detailed in the RFP are to be performed for the City on a contractual basis for a
five (5) year initial term with five (5) additional one (1) year renewal options at the City's
discretion.
Documentation Required
A written guarantee that may include, but is not limited to the form of, a letter of
credit, insurance policy, or corporate guarantee by the state-licensed ESCo that
annual energy cost savings will meet or exceed the amortized cost of energy
conservation measures.
• A provision that all payments, except obligations on contract termination before the
negotiated expiration, may be made over time with the expiration from the date of
complete installation and acceptance by the City, and that the annual savings are
Commission Memorandum -RFP 06-07/08 -Energy Savings Performance-Based Contract
April 16, 2008
Page 3 of 7
guaranteed to the extent necessary to make annual payments to satisfy the state-
licensed ESPC.
• That the state-licensed ESCo to whom the contract is awarded provide a 100-
percent public construction bond to the City for its faithful performance.
• A provision allocating to the parties any annual energy cost savings that exceed the
amount of the energy cost savings guaranteed in the contract.
• Require the state-licensed ESCo provide to the City an annual reconciliation of the
guaranteed energy cost savings. If the reconciliation reveals a shortfall in annual
energy cost savings, the state-licensed ESCo is liable for such shortfall.
• Require the state-licensed ESCo conduct a comprehensive energy audit of all City
facilities and be reviewed by the Mayor and City Commission prior to further
implementation.
• Provide for payments, no less than one-twentieth (1/20) of the price, to be paid within
two (2) years from the date of the complete installation and acceptance by the City,
and the remaining costs to be paid at least quarterly, at a negotiated term, based on
life cycle cost calculations.
Qualifying Experience
All experience used to qualify must be within the last ten (10) years. The City reserves the
right to limit an individual's or firm's type of work based on qualifications and experience. If a
firm does not have any experience in commissioning a specific system, the City may reserve
its right to qualify the firm to commission that type of system.
The areas of expertise required to perform commissioning services identified in this RFP
include, but are not limited to, the following:
• Chilled water system (chillers, cooling towers, pumps, condensers, piping, valves)
• Hot water system (boilers, hot water pumps, valves, piping)
• Steam distribution system (boilers, piping, hot well, steam traps, condensate pumps)
• Air handling units (supply fans, return fans, coils, valves, variable frequency drives
(VFD), ducts, dampers, filters)
• Packaged air conditioning (AC) or heat pump (HP) units (supply fans, return fans,
coils, valves, VFD, ducts, dampers, filters, compressors, condensers)
• Terminal units
• Unit heaters
• Heat recovery system (coils and pumps)
• Domestic water system (heaters, valves)
• Building automation system (controls -pneumatic, electric, and direct digital)
• Lighting controls (light sweep and daylight dimming)
• Testing and Balancing
RFP No. 06-07/08 was issued on November 5, 2007, with an opening date of January 16,
2008. APre-Proposal Meeting to provide information to firms submitting a proposal was held
on November 20, 2007, which resulted in the issuance of the following addenda:
• Addendum 1 -November 16, 2007;
Commission Memorandum -RFP 06-07/08 -Energy Savings Performance-Based Contract
April 16, 2008
Page 4 of 7
• Addendum 2 -November 26, 2007;
• Addendum 3 -December 4, 2007;
• Addendum 4 -December 12, 2007;
• Addendum 5 -December 14, 2007; and
BidNet and RFP Depot issued bid notices to 117 and 1,436 prospective firms, respectively,
while at least 70 prospective firms viewed the RFP documents, which resulted in the receipt
of the following three (3) proposals:
• Ameresco, Inc.;
• Johnson Controls, Inc.; and
• Siemens Building Technologies, Inc. (Siemens).
Upon review of each proposal; the cost information provided by Siemens did not meet the
requirements of the RFP. Section III, subsections G and H, of the RFP states that cost
proposals "must also include the amount and source of funding information." This meant
that Siemens was expected to provide cost savings projections as part of its proposal, which
it failed to do. Siemens was deemed nonresponsive and notified by the Procurement
Division in writing on February 14, 2008.
The City Manager, via Letter to Commission (LTC) No. 058-2008, appointed an Evaluation
Committee (the "Committee") that convened on March 11, 2008, to evaluate, score, and rank
the two (2) responsive proposals. The Committee consisted of the following individuals:
• Fred Beckmann -Public Works, Director;
• Dolores Mejia -City Manager's Office, Special Project Administrator;
• Georgie Echert -Finance, Assistant Director;
• Josh Fisher -Resident and member of TPC;
• Jacqueline Fernandes -Resident and Graduate of the Leadership Academy;
• Robert Ruano -Resident and Miami Office of Sustainable Initiatives member; and
• Luiz Rodrigues -Resident and Green Committee member.
The Committee unanimously nominated Fred Beckmann as Committee Chair.
Robert Middaugh, Assistant City Manager, provided a brief background of the ESPC's
purpose and scope of services expected from the successful proposer.
The Committee based its recommendation on the following factors stated in Section IV of
the RFP:
• Qualifications and Capability Scoring Weight: 20%
• Experience and Expertise Scoring Weight: 20%
• Technical Approach Scoring Weight: 15%
• Performance Contracting Approach Scoring Weight: 15%
• Site Specific Approach Scoring Weight: 30%
The Committee's final scoring was as follows:
e.
rry. .~~
~~ ly.,~'y{1
~: /V/ ~:~
Y ,:.
i~~
Johnson 900 (1) 93 (1) 79 (1) 90 (1) 88 (2) 90 (2) 91 (2)
Controls
Ameresco 85 (2) 89 (2) 74 (2) 55 (2) 91 (1) 98 (1) 99 (1)
Commission Memorandum - RFP 06-07/08 -Energy Savings Performance-Based Contract
April 16, 2008
Page 5 of 7
Based on the scores and rankings of the Committee members, Johnson Controls, Inc.
received four (4) first-place rankings out of seven (7). Because of the close 4-3 vote, each
Committee member explained their reasons for their selected top-ranked proposal. Each
Committee member also confirmed for the record his or her approval of the rankings.
Therefore, a motion was made by Georgina Echert, and seconded by Dolores Mejia, to
recommend to the City Manager to negotiate an Agreement with the top-ranked firm of
Johnson Controls, Inc. and to negotiations with the second-ranked firm of Ameresco, Inc.
should negotiations with the top-ranked firm be unsuccessful.
The City Manager concurs with the Committee's recommendation and has invited both firms
to provide a brief overview of their proposals to the Mayor and City Commission given the
close vote.
JOHNSON CONTROLS. INC.
For over 30 years, Johnson Controls, Inc. has conducted performance-based contracts
worldwide. Its clients in North America represent 775 current contracts, 190 of which relate
to state and municipal governments, involving nearly $4 billion in savings guarantees. In
Florida alone, Johnson Controls, Inc. has been awarded over thirty-five (35) ESPCs with
energy guarantees exceeding $100 million since 1992.
Johnson Controls, Inc. has been providing energy-saving solutions for the City of Miami
Beach since 1998, through Requests for Qualifications (RFQ) 38-96/97, resulting in savings
over $4.1 million - $600,000 more than the originally contracted guaranteed amount. Given
the new ESPC opportunity, Johnson Controls, Inc. proposes annual utility savings
guaranteed over $450,000. The City's experience with Johnson Controls, Inc. has been
satisfactory.
In addition to the savings generated from previous retrofits, Johnson Control's Inc. proposed
further measures to provide the City with additional energy savings. For example, Johnson
Controls, Inc. proposed to create an air-sealed envelope in City facilities by sealing cracks
and structure gaps to reduce air leakage and preserve the structures pressure balance.
This measure would increase thermal efficiency and occupant comfort levels. Johnson
Controls, Inc. also suggested utilizing renewable energy to power parking lot lighting and
parking meters. This method would help to reduce electric demand and consumption.
These, and Johnson Controls, Inc.'s other proposed solutions, are explained further in
Attachment "C."
Each Evaluation Committee member that rated Johnson Controls, Inc. as the top firm cited
the previous work by Johnson Controls, Inc. as beneficial.
AMERESCO. INC.
Since 2000, Ameresco, Inc. has provided energy-efficiency business services throughout
North America. Ameresco, Inc. and it subsidiaries have implemented over 350 ESPCs
ranging from $100,000 to $48 million. It employs over 480 full-time employees with
extensive experience in developing energy solutions and has implemented approximately $1
billion in ESPCs in the past 5 years.
Ameresco, Inc. proposed several solutions to allow the City to be more energy efficient. For
example, Ameresco, Inc. suggested standardizing lamp sizes and types to upgrade the
City's lighting systems. Replacing the standard flow domestic water fixtures with low flow
Commission Memorandum -RFP 06-07/08 -Energy Savings Performance-Based Contract
April 16, 2008
Page 6 of 7
flush valves and upgrade the lavatory faucets would reduce domestic water consumption.
Ameresco, Inc. also suggested installing variable frequency drives on the chilled water pump
motors to reduce motor power consumption. These, and Ameresco's other proposed
solutions, are explained further in Attachment "C."
Subsequent to the Evaluation Committee's recommendation, on March 18, 2008, the
Procurement Division received a package from the law firm of Shutts and Bowen, who
represent Ameresco, Inc. Said package contained information regarding federal
investigations allegedly involving Johnson Controls, Inc. The package questioned the public
entity crime information submitted by Johnson Controls, Inc. in its proposal, citing three
recent incidents involving an employee of Johnson Controls, Inc. and its subsidiary. (See
Attachment "D").
In lieu of the allegations made with regard to public entity crimes, and as neither the City
Administration and/or the City Attorney's Office have the investigative capabilities with regard
to public entity crimes, the Procurement Division consulted with the State Attorney's Office.
Assistant State Attorney Joseph Centorino opined that there was insufficient evidence of any
public entity crime(s) charged to Johnson Controls, Inc. in these cases for the following
reasons:
1. The individual referenced in the March 18 letter was a former employee of Johnson
Controls, Inc., and was charged with conspiracy to defraud both the City of New
Orleans and Johnson Controls, Inc.
2. The matter in Pontiac, MI is currently under investigation and there have been no
charges placed on Johnson Controls, Inc., to date.
3. York International, Inc. is a subsidiary of Johnson Controls, Inc. The definition of
"public entity crimes" under Section 287.133(3)(a) Florida Statutes does not relate
specifically to subsidiaries. In addition, public entity crimes only apply to a "violation
of any state or federal law by a person with respect to and directly related to the
transaction of business with any business with any public entity or with an agency or
political subdivision of any other state or of the United States." Public entity crimes
would not apply in this case given that to international matters.
On March 31, 2008, Johnson Controls, Inc. also responded to the allegations raised in the
March 18 letter. (See attachment "E").
Based on the conclusion of the State Attorney's Office that Johnson Controls, Inc. had not
violated the law with regard to public entity crimes, as defined pursuant to the aforestated
Florida Statutes, the City Administration and City Attorney's Office have determined that the
firm's proposal is responsive to the RFP, and should not be disqualified on those grounds.
Notwithstanding the preceding, should. the City Commission request same, the City
Administration and City Attorney's Office requested and expect to receive a formal opinion
from the State Attorney's Office. Should such opinion not be received, the City Commission
may consider deferring this item.
CONCLUSION
The Administration recommends that the Mayor and City Commission accept the
recommendation of the City Manager pursuant to Request for Proposals (RFP) No. 06-
07/08, for an Energy Savings Performance-Based Contract, and authorize the
Administration to enter into negotiations with the top-ranked firm of Johnson Controls, Inc.
and, should negotiations become unsuccessful with Johnson Controls, Inc., further
authorizing the Administration to enter into negotiations with the second-ranked firm of
Commission Memorandum - RFP 06-07/08 -Energy Savings Performance-Based Contract
April 16, 2008
Page 7 of 7
Ameresco, Inc.
The City Manager's Office has also invited both companies to present to the City
Commission their proposals on April 16, 2008.
ATTACHMENTS
A. Florida Statute 489.145 -Guaranteed Energy Performance Savings Contracting
B. Johnson Controls, Inc. Site Specific Approach
C. Ameresco, Inc. Executive Summary
D. Shutts and Bowen documents
E. Response by Johnson Controls, Inc.
ATTACHMENT "A"
Florida Statute 489.145 -Guaranteed Energy Performance Savings Contracting
489.145 Guaranteed energy performance savings contracting.--
(1) SHORT TITLE.--This section may be cited as the "Guaranteed Energy Performance
Savings Contracting Act."
(2) LEGISLATIVE FINDINGS.--The Legislature finds that investment in energy
conservation measures in agency facilities can reduce the amount of energy consumed
and produce immediate and long-term savings. It is the policy of this state to encourage
agencies to invest in energy conservation measures that reduce energy consumption,
produce a cost savings for the agency, and improve the quality of indoor air in public
facilities and to operate, maintain, and, when economically feasible, build or renovate
existing agency facilities in such a manner as to minimize energy consumption and
maximize energy savings. It is further the policy of this state to encourage agencies to
reinvest any energy savings resulting from energy conservation measures in additional
energy conservation efforts.
(3) DEFINITIONS.-As used in this section, the term:
(a) "Agency" means the state, a municipality, or a political subdivision.
(b) "Energy conservation measure" means a training program, facility alteration, or
equipment purchase to be used in new construction, including an addition to an existing
facility, which reduces energy or operating costs and includes, but is not limited to:
1. Insulation of the facility structure and systems within the facility.
2. Storm windows and doors, caulking or weatherstripping, multiglazed windows and
doors, heat-absorbing, or heat-reflective, glazed and coated window and door systems,
additional glazing, reductions in glass area, and other window and door system
modifications that reduce energy consumption.
3. Automatic energy control systems.
4. Heating, ventilating, orair-conditioning system modifications or replacements.
5. Replacement or modifications of lighting fixtures to increase the energy efficiency of
the lighting system, which, at a minimum, must conform to the applicable state or local
building code.
6. Energy recovery systems.
7. Cogeneration systems that produce steam or forms of energy such as heat, as well
as electricity, for use primarily within a facility or complex of facilities.
8. Energy conservation measures that provide long-term operating cost reductions or
significantly reduce Btu consumed.
9. Renewable energy systems, such as solar, biomass, or wind systems.
10. Devices that reduce water consumption or sewer charges.
11. Storage systems, such as fuel cells and thermal storage.
12. Generating technologies, such as microturbines.
13. Any other repair, replacement, or upgrade of existing equipment.
(c) "Energy cost savings" means a measured reduction in the cost of fuel, energy
consumption, and stipulated operation and maintenance created from the
implementation of one or more energy conservation measures when compared with an
established baseline for the previous cost of fuel, energy consumption, and stipulated
operation and maintenance.
(d) "Guaranteed energy performance savings contract" means a contract for the
evaluation, recommendation, and implementation of energy conservation measures,
which, at a minimum, shall include:
1. The design and installation of equipment to implement one or more of such measures
and, if applicable, operation and maintenance of such measures.
2. The amount of any actual annual savings that meet or exceed total annual contract
payments made by the agency for the contract.
3. The finance charges incurred by the agency over the life of the contract.
(e) "Guaranteed energy performance savings contractor" means a person or business
that is licensed under chapter 471, chapter 481, or this chapter, and is experienced in
the analysis, design, implementation, or installation of energy conservation measures
through energy performance contracts.
(4) PROCEDURES.--
(a) An agency may enter into a guaranteed energy performance savings contract with a
guaranteed energy performance savings contractor to significantly reduce energy or
operating costs of an agency facility through one or more energy conservation
measures.
(b) Before design and installation of energy conservation measures, the agency must
obtain from a guaranteed energy performance savings contractor a report that
summarizes the costs associated with the energy conservation measures and provides
an estimate of the amount of the energy cost savings. The agency and the guaranteed
energy performance savings contractor may enter into a separate agreement to pay for
costs associated with the preparation and delivery of the report; however, payment to
the contractor shall be contingent upon the report's projection of energy cost savings
being equal to or greater than the total projected costs of the design and installation of
the report's energy conservation measures.
(c) The agency may enter into a guaranteed energy performance savings contract with
a guaranteed energy performance savings contractor if the agency finds that the amount
the agency would spend on the energy conservation measures will not likely exceed the
amount of the energy cost savings for up to 20 years from the date of installation, based
on the life cycle cost calculations provided in s. 255.255, if the recommendations in the
report were followed and if the qualified provider or providers give a written guarantee
that the energy cost savings will meet or exceed the costs of the system. The contract
may provide for installment payments for a period not to exceed 20 years.
(d) A guaranteed energy performance savings contractor must be selected in
compliance with s. 287.055; except that if fewer than three firms are qualified to perform
the required services, the requirement for agency selection of three firms, as provided in
s. 287.055(4)(b), and the bid requirements of s. 287.057 do not apply.
(e) Before entering into a guaranteed energy performance savings contract, an agency
must provide published notice of the meeting in which it proposes to award the contract,
the names of the parties to the proposed contract, and the contract's purpose.
(f) A guaranteed energy performance savings contract may provide for financing,
including tax-exempt financing, by a third party. The contract for third party financing
may be separate from the energy performance contract. A separate contract for third
party financing must include a provision that the third party financier must not be granted
rights or privileges that exceed the rights and privileges available to the guaranteed
energy performance savings contractor.
(g) In determining the amount the agency will finance to acquire the energy
conservation measures, the agency may reduce such amount by the application of any
grant moneys, rebates, or capital funding available to the agency for the purpose of
buying down the cost of the guaranteed energy performance savings contract. However,
in calculating the life cycle cost as required in paragraph (c), the agency shall not apply
any grants, rebates, or capital funding.
(5) CONTRACT PROVISIONS.--
(a) A guaranteed energy performance savings contract must include a written guarantee
that may include, but is not limited to the form of, a letter of credit, insurance policy, or
corporate guarantee by the guaranteed energy performance savings contractor that
annual energy cost savings will meet or exceed the amortized cost of energy
conservation measures.
(b) The guaranteed energy performance savings contract must provide that all
payments, except obligations on termination of the contract before its expiration, may be
made over time, but not to exceed 20 years from the date of complete installation and
acceptance by the agency, and that the annual savings are guaranteed to the extent
necessary to make annual payments to satisfy the guaranteed energy performance
savings contract.
(c) The guaranteed energy performance savings contract must require that the
guaranteed energy performance savings contractor to whom the contract is awarded
provide a 100-percent public construction bond to the agency for its. faithful performance,
as required by s. 255.05.
(d) The guaranteed energy performance savings contract may contain a provision
allocating to the parties to the contract any annual energy cost savings that exceed the
amount of the energy cost savings guaranteed in the contract.
(e) The guaranteed energy performance savings contract shall require the guaranteed
energy performance savings contractor to provide to the agency an annual reconciliation
of the guaranteed energy cost savings. If the reconciliation reveals a shortfall in annual
energy cost savings, the guaranteed energy performance savings contractor is liable for
such shortfall. If the reconciliation reveals an excess in annual energy cost savings, the
excess savings may be allocated under paragraph (d) but may not be used to cover
potential energy cost savings shortages in subsequent contract years.
(f) The guaranteed energy performance savings contract must provide for payments of
not less than one-twentieth of the price to be paid within 2 years from the date of the
complete installation and acceptance by the agency, and the remaining costs to be paid
at least quarterly, not to exceed a 20-year term, based on life cycle cost calculations.
(g) The guaranteed energy performance savings contract may extend beyond the fiscal
year in which it becomes effective; however, the term of any contract expires at the end
of each fiscal year and may be automatically renewed annually for up to 20 years,
subject to the agency making sufficient annual appropriations based upon continued
realized energy savings.
(h) The guaranteed energy performance savings contract must stipulate that it does not
constitute a debt, liability, or obligation of the state.
(6) PROGRAM ADMINISTRATION AND CONTRACT REVIEW.--The Department of
Management Services, with the assistance of the Office of the Chief Financial Officer,
may, within available resources, provide technical assistance to state agencies
contracting for energy conservation measures and engage in other activities considered
appropriate by the department for promoting and facilitating guaranteed energy
performance contracting by state agencies. The Office of the Chief Financial Officer, with
the assistance of the Department of Management Services, may, within available
resources, develop model contractual and related documents for use by state agencies.
Prior to entering into a guaranteed energy performance savings contract, any contract or
lease for third-party financing, or any combination of such contracts, a state agency shall
submit such proposed contract or lease to the Office of the Chief Financial Officer for
review and approval.
History.--s. 1, ch. 94112; s. 1, ch. 2001-81; s. 510, ch. 2003-261.
ATTACHMENT "B"
Johnson Controls, Inc. Site Specific Approach
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kWbase = kW for the baseline scenario for the current bill period
Offset_Coefficient =the demand value that is not associated with weather
DD_Coefficient = relationship of demand to weather (e.g. kW/DD)
Ddper = degree days for the current bill period.(heating or cooling)
#Daysper = number of days in the current bill period '
Site-Specific Approach
The successful execution of two phases of performance'contracting with the City of Miami
Beach allows Johnson Controls the privilege of offering solutions that best maximize savings
opportunities, along with leading the City down a "green" path that can ultimately yield high-
powered green buildings and infrastructure. Our ability to achieve this stems from our thorough
understanding'of existing building conditions, systems, and operation and maintenance projects.
Over the past few years, Johnson Controls has made tremendous advances in introducing
savings initiatives that have not been previously considered. We are pioneering new ways of
,-~, using performance contracting as a means of delivering more than just energy savings. Our
( ~ solutions provide value, environmental results, high-powered green buildings and increased
productivity, along with solutions for maximizing revenue. As an example, preliminary studies
indicate that thermal energy storage could yield tremendous financial benefits in reducing the
operational costs at~City Hall, T.O.P.A. and the Convention Center.
Johnson Controls is pleased to present a list of Energy Conservation Measures (ECMs) that we
feel warrant inclusion in the Detailed Audit stage of this project. Each ECM will be examined
independently to ensure that ft meets the financial and technical standards of the City of Miami
Beach. The final list will be reviewed and approved by the City prior to project implementation.
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,ECM Recommendations
Lighting (interior and Exterior)
Our engineers will look for opportunities to retrofit lighting to standardize inventory, improve
lighting levels, and lower electric consumption as well as demand. This includes buildings that
were retrofitted during our Phase 1 and Phase 2 perfomlance contracts with the City of Miami
Beach. The savings will occur primarily as the result of removing the existing T-1234-watt and
T-8 32-watt lamps, and replacing them with 28-watt lamps. In some cases, new energy-efficient
fixtures will be installed to replace old, inefficient technologies. We also consider the total
lifecycle costs of the lighting systems, including replacement and maintenance costs.
Occupancy Sensors
. This ECM applies primarily to lighting systems. Occupancy sensors are designed to reduce
electrical consumption by reducing the number of hours that lights remain on. This is
accomplished by installing sensors to keep lights on when areas are occupied, and fuming
lights off when these areas have been vacated for a predetermined period of time. In some
cases, we may tie the occupancy sensors into the air conditioning system to reset temperature
setpoints when areas are not occupied. All buildings will be examined for occupancy sensor
~~~ ~ opportunities.
~._-
Building Envelope
Air leakage is defined as the. uncontrolled infiltration and/or exfiltration of conditioned and/or
unconditioned air through the permanent building envelope via means of juncture points of
different materials and structure transitions. The pressure imbalances associated with structure
height, mechanical systems, temperature differentials, occupant uses and the amount of
occupants contribute to the "stack effect" within a structure. Creating an air-sealed envelope
involves the sealing of cracks, gaps and penetrations found throughout the structure, thereby
reducing the need for additional conditioned air to be generated. This will increase thermal
efficiency and occupant comfort levels. When considering building envelope improvements, we
also consider South Florida Building Codes in an effort to maximize building and occupant
protection, as well as energy savings. Grants also may play a part in funding these types of
improvements.
Variable Speed Drives
This ECM includes analyzing the feasibility of converting larger single constant volume. air
handling units, which supply conditioned air to a single zone, into the equivalent of a large
variable air volume system. Johnson Controls has used this successfully to reduce electrical
consumption at the air handling unit, reduce chiller load and improve indoor air quality, while
improving occupant comfort. Our experience with buildings such as City Hall and the
Convention Center illustrate that these facilities offer great opportunities for this ECM. We will
(~
also consider installing variable speed drives on other variable air volume systems to reduce
electric consumption and improve occupant comfort.
HVAC Improvements
This ECM applies to any mechanical heating, ventilating or air conditioning system. The
purpose of this improvement measure will be to reduce electrical demand and consumption,
improve occupant comfort, and improve overall indoor.air quality. The additional benefits include
the replacement of aging infrastructure and capital relief.
Thermal Energy Storage
Preliminary studies have already been initiated and have resulted in evidence that suggests
thermal energy storage could reduce energy charges at the following locations: City Hall,
T.O.P.A. and the Convention Center. Recent changes to the Florida, Power and Light rebate
program make the viability of this improvement measure even more fnancially attractive. This
improvement measure is designed to shift the electrical usage of the facility from peak to off-
peak when utility rates are less expensive. Johnson Controls has successfully implemented this
improvement measure at several South Florida locations.
Demand Ventilation
This ECM applies to any mechanical heating, ventilating or air conditioning system that requires
~` ~ outside air to be introduced during occupied periods. Recent changes to the local utility rebate
program now make it feasible to automate outdoor air controls. This allows for the use of
outdoor air only when the areas are occupied. This results in reduced electric consumption and
reduced load on the building chiller systems. Additional benefits include better overall indoor air
quality.
Water Conservation
This ECM applies to all facilities, as water is available at alt sites. This measure is designed to
retrofit the existing water fixtures to low-flow devices and, in some cases, waterless
technologies. Water is and continues to be a very costly utility. This measure is designed to
reduce water usage (water conservation) and reduce water and sewer charges.
Renewable Energy
This ECM applies to most City facilities. The term °renewable" in this case covers any type of
renewable energy source from solar water heating to solar PV to any other technology generally
included in the renewable field. Solar PV will be considered for a wide variety of applications,
from parking lot lighting to parking meters. In addition, solar water heating will include everything
from interior domestic water use to pool heating. This technology is expected to reduce electric
demand, electric consumption and increase the use of technology.
(~~
LEED (Leadership in Energy and Environmental Design)
This ECM includes a holistic approach to facilities that reviews the LEED guidelines for existing
facilities. Johnson Controls has assembled a team that includes LEED Accredited Professionals
who can evaluate City facilities. In addition to energy conservation, LEED projects are expected
to result in positive environmental impacts as well. LEED projects for existing buildings typically
include many of the ECMS that we are recommending.
Chilled Water Tie-in
This ECM applies to facilities that are close to other facilities and allow for chilled water.systems
to be interconnected. This measure is designed to reduce electric demand and consumption
charges, as well as reduce equipment runtimes. An additional benefit of this measure is that the
tie-in also creates redundancy to both systems by virtue of the interconnection. This ECM also
reduces noise pollution resulting from the operation of large chillers and associated equipment.
Building AutomationlControls
Expansion of the existing building automation system to provide additional control capability and
operating efficiency to include (in general) the following. These items are applicable to all
buildings:
7. Complete Web-based automation system with access from any point within the Citys
- buildings. Access to the system will be coordinated with City personnel to allow access
~) from a computer outside the City.
~.
2: Furnish and install multiple temperature sensors for monitoring and alarming of each
building.
3. Provide and install monitoring equipment to provide alarms for space temperatures
within the buildings.
4. Verfication of proper operation of existing controls.
5. Modification of the controls for select air handing units to provide demand .ventilation
control. This will regulate outside air for these units based upon space occupancy.
Wi-Fi /Wireless Solutions
Johnson Controls is pioneering new and innovative ways of improving infrastructure by
incorporating wireless communications into performance contracts: The City of Miami Beach
has embraced wireless communications and commenced the build-out of a City-wide Wi-Fi
wireless network. Johnsen Controls can bring addfional value to the network by offering new
services and solutions that can improve worker productivity and deliver superior services to the
City's residents, businesses and visitors. As an example, the Wi-Fi network can be used to
enhance mobile communications for emergency responders, public safety, code enforcement
and other users of mobile communications.
r~
Parking Meters
For many visitors to Miami Beach, the insertion of money into a parking meter represents the
first financial transaction with the City. The importance of the Cites parking meters operation
cannot be underestimated. As a result, it is extremely important that the City maximize the
efficiencies associated with the, operation of the enterprise from both a financial and tourism
perspective. Solar-powered, multi-space parking meters represent an opportunity to more
efficiently collect parking meter revenue and afford the visitor a more customer-friendly
experience. Through performance contracting, the City can accelerate the installation of multi-
space meters, thereby reducing the number of trips by parking meter collectors. This results in
fewer City-owned vehicles on the road,-thus reducing emissions and fuel consumption.
Water Meters
The City of Miami Beach currently has 12,600 metered water connections. These meters are
read by meter readers who drive and walk to every connection and manually record the data.
Wireless technology is now available that can read the meters remotely. This will enable the
City to reduce operational costs, while delivering consistent and accurate reads for City
residents and commercial users. Automated meter reading allows the City to enforce water
conservation restrictions, idenfify leaks and reduce unaccounted-for water, as well as reduce
operational costs and vehicle and fuel expenditures related to manual meter reading. Johnson
Controls is the recognized leader in using performance contracting to implement utility metering
('- ~ upgrades.
~_ .
Step 1: Sustainability Solutions Navigation Session
Johnson Controls Sustainability Solutions Navigations Sessions provide a structured, interactive
process for quickly assessing sustainability needs and practices. These sessions help clients
address a wide range of sus#ainability issues, including the design and construction of a "green
building," the efficiency improvement of a portfolio of facilities, or the development of an
organization-wide sustainability strategic plan.
During Navigation sessions, participants first prioritize a comprehensive set of sustainability-
related needs based on importance and current satisfaction. These needs address a number of
organizational issues, such as environmental stewardship, social responsibility and economic
responsibility. Participants then assess their organization's effectiveness in implementing a
variety of sustainability practices, including management and strategy, environments! design,
operational efficiency, social development, metrics and reporting.
The primary benefit is rapid, cross-functional prioritization of sustainability needs and
improvement practices. Additional benefits include exposure to industry best practices, and
expert recommendations for measuring and improving sustainability across the organization.
These recommendations are supported by benchmark data from repnssentative organizations
j ~ ~'~ participating in Sustainability Solu#ions Navigation Sessions.
~ .
Deliverables include a comprehensive report summarizing the results of the needs and
practices, and assessment and recommendation for improvement. The results can be compared
across individual departments and divisions, or benchmarked against similar organizations. The
net result is improved sustainability of organizations and their local communities.\
Step 2: Site Survey
^ Investigate the five-year capital plan, current operational budget, review utility
allowances, and study utility bill history.
^ Conduct site visits to assess conditions and systems, as well as outline how the
facilities are being used.
^ Interview City of Miami Beach staff.
^ Collect data through utility and facility surveys.
^ Develop utility consumption baselines.
^ Conduct a technical and economic feasibility analysis.
~~
^ Perform a lifecycle cyst analysis of each ECM, and select final ECMs for the project.
ECMs are refined to a stage that verifies whether the measure indeed meets the facility
and financial requirements.
Step 3: Preparation and Presentation of Findings
^ During a workshop with stakeholders, we analyze the findings and determine a course
of action that best meets financial and performance goats.
^ Conduct a cost avoidance calculation.
^ Finalize overall project costs..
^ Generate the final report.
^ Submit required documentation for City of Miami Beach approvals.
^ Organize a final project review/workshop.
C--
ATTACHMENT "C"
Ameresco, Inc. Site Specific Approach
1'aCiIERESCO
(= - ,,`
Section 5: Site-Specific Approach
(Scoring Weight 30 %)
This also complies with Section III 2. e.
a. Proiect Scope for This Project
Understanding of existing building conditions, systems and operations and maintenance projects.
Responsive to strategies in adapting control strategies, equipment and maintenance practices in
response to changes in utility rates, technology, and City property conditions in order to enhance
project performance. Comprehensiveness and clarity of the technical approach to this project
based on improvements likely to be included. Relevance and benefits ofproposed retrofits for the
City properties evaluated.
Proposed Measures
This section provides a list of potential projects that are based upon the preliminary tour of the
buildings, our additional site visits, and our experience on other similar municipal projects.
Ameresco has invested nearly 100 hours, thus far, in reviewing the City of Miami Beach facilities
and potential energy conservation measures. Ameresco believes in looking at all of the energy
consuming equipment at a facility, not just the large users. The mix of measures shown in the
table below represent energy saving opportunities for major energy consumers, like chillers to
smaller consumers, like computers and vending machines.
Ameresco realizes that the City of Miami Beach has been aggressive in the pursuit of energy
savings by: retrofitting many of the lighting fixtures throughout the City; enhancing the
mechanical systems through the use of a modern centralised DDC system; and various other
energy conservation measures (ECMs). However, Ameresco believes that there are opportunities
to enhance the lighting and energy management systems (EMS) through the use of newer
technologies and unique applications, as well as implementing the newly proposed strategic
energy saving strategies listed below.
~.-~
Proposal for a Guaranteed Energy Performance Conhact 'gage corrtenf is subject to Confidentiality Reshrcdons"
City of Miami Beach Section Five: Site Specific Approach
January 16, 2008 Page 95
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1"VvIFRESC~
!`~ ~ ECM 1:
Lighting System
Improvements
ECM Overview
Although a majority ofthe lighting systems throughout the
City have been updated, various areas of improvement still
exist within the City's facilities. Ameresco proposes to
install an energy efficient lighting system within these
facilities that will greatly reduce the cost of energy,
operation, and maintenance for the City of Miami Beach (the
City). Upon completing the project, the City will improve
the overall color, quality and consistency of their lighting.
The goal of a successful lighting retrofit project is to provide
recommended light levels for safe and comfortable use of all areas while reducing the amount of
energy consumed by the lighting system. This may mean that areas not meeting minimum
_ standards require improved lighting. Concurrently, areas that exceed recommended lighting may
afford reduced. light output.
Many different fixture combinations were identified during the initial walk-through, some of
which are not up to currently achievable levels of efficiency. wherever possible, Ameresco will
standardize lamp types and sizes to simplify the stocking and replacement of lamps for
maintenance personnel.
The City of Miami Beach currently has lighting controls installed in offices, and other
miscellaneous spaces. Ameresco proposes to install wall and ceiling mounted occupancy and
photo sensors in appropriate locations that contains several controllable fixtures, has intermittent
occupancy, and where a safety hazard will not be created if the sensor inadvertently turns the
lights off. Special attention will be paid to recommend ceiling sensors for places where wall
sensors are subject to vandalism. In addition fixtures along the perimeter of the parking decks will
utilize photo sensors that will make use of daylighting to decrease energy consumption. when
there is enough light along the perimeter, the photo sensors will turn the perimeter lights off
saving energy, along with the fixture replacement.
The following discussion of the existing and proposed lighting systems explains what the
Ameresco staff members have identified and recommend for the most appropriate fixture
replacements and upgrades.
Proposal for a Guaranteed Energy Pe~lormance Contract ?'age content is subject to CordidentiaRty Restrictions"
City of Miami Beach Section Fve: Site Specific Approach
January 16, 2008 Page 99
F'~gure 1: The new lighting system will
improve the quality of light while reducing
energy costs throughout the City.
1'QvIERESCO
;~-~~~ ~ , ECM Detail
General System Description F~ Recommendations
The City of Miami Beach's buildings serve a host of fimctions and therefore have characteristics
unique to each. Those distinctions notwithstanding, space is utilized for certain common
functions. There aze conferences, classrooms, offices, hallways, lounges, and restrooms
employing a variety of fixtures. Among those, the most prevalent types are acrylic, opaque, and
parabolic troffers, narrow and wide wraps, boxes, strips, industrials, indirects, vapor-tights, and
valance fixtures. A great many of these fixtures utilize "standard" T8 fluorescent technology.
Some facilities, such as the Scott ltakow Youth Center, aze still using T12 fluorescent lamps,
incandescent, and flood/spot lights.
Ameresco will tailor our Lighting retrofits to create the ideal lighting environment for each azea
that we encounter. The existing "standard" T8 technology will be examined case-by-case to
determine the economics of replacement with new "super" T8 fluorescents. The T12 fluorescent
lighting will be replaced with new, energy efficient, "super" T8 lamps and ballasts. Ballast
output will be tailored to each location in order to obtain desired light levels, without sacrificing
potential energy savings. In some cases we will be able to cut energy consumption by reducing
the number of lamps in a fixture while adding a reflector and improving the overall fixture
efficiency. We will convert 8' lamps to 4' lamps whenever possible. Eight foot lamps tend to be
difficult to store and more prone to breakage outside of their fixtures. Fixtures that are old,
broken, and in disrepair will be removed and replaced with new high-quality light fixtures.
Areas with recessed down lights and decorative fixtures are applying mostly compact fluorescent
lamps. However, there aze instances of incandescent lamp use, such as the lobby at the Scott
Rakow Youth Center.
Large recreation and shop spaces such as gymnasiums, pools, and garages use bay fixtures. Some
bay fixtures have High Intensity Discharge (HID) lamps, while others have new fixtures
consisting of multiple compact fluorescent lamps. A linear fluorescent fixture is recommended as
an alternative to HID lamps. A few advantages they offer are: longer lamp life; better lumen
maintenance; sustained lumens per watt; less heat generated; better color rendering,; instant
restrike; as well as more color temperature options.
Exit signs utilize incandescent and compact fluorescent lamps, and where those lamps have
failed, the City has replaced these using both LED conversion kits and new LED exit signs. All
exit signs not converted to date will be upgraded to LED technology.
Ameresco proposes to install wall and ceiling mounted occupancy and photo sensors in
appropriate locations that contains several controllable fixtures, has intermittent occupancy, and
where a safety hazard will not be created if the sensor inadvertently turns the lights off. Special
~.~ -
Proposal for a Guaranfeed Energy Performance Contract Page content is subject to Confidentiality Restrictions'
City of Miami Beach Section Five: Site Specific Approach
January 16, 2008 Page 100
IVvI FRESCO
- attention will be paid to recommend ceiling sensors for places where wall sensors are subject to
I. .....,
vandalism Photo-sensors will turn off fixtures when the ambient light available is adequate to
illuminate the space. In addition, some situations may require time-clock control. These timers
offer total control over fixture illumination.
Implementation of this measure will result in annual maintenance savings, since the installation of
new lamps and ballasts will greatly reduce service intervals. There will be savings from the
annualized cost of maintaining the existing lighting equipment. This is based on the calculated
frequency of equipment replacement of the old system versus the new system No current
recycling or disposal costs.are included in this calculation, so additional savings would be
expected. No incremental labor costs will be included in these savings as it is assumed that City
personnel will replace lamps and ballasts, as required.
Impact on Facility Operations anti Performance
The new lighting system will enhance facility operations by providing fixtures and components
that have new high-efficiency electronic ballasts. These ballasts will minim;? costs incurred to
replace existing ballasts as they reach the end of their useful life. In addition, all new T8 lamps
installed will be low mercury, with higher color rendering indexes, and a longer life expectancy
than the existing Tl2 lamps.
~' Benefits
The City of Miami Beach will benefit from this measure through reduced energy costs as a result
of the installation of the more efficient Lighting:. Maintenance costs will be reduced by
consolidating the types of lamps and ballasts stored at the facilities. ,Maintenance will also be
reduced by applying technology that has a longer life. The new high color rendering lamps will
improve the work environment by improving the quality of light from the new fluorescent lamps.
Proposal for a Guaranteed Energy Performance Contract Page content is subject to Confidentiality Restrictions"
City of Miami Beach Section Five: Site Specific Appioach
January 18, 2008 Page 101
ECM 2:
Energy Management System Expansion
and Recommissioning
ECM Overview
Ameresco proposes to expand the existing centralized
energy management systems (EMS) at facilities that will
be identified in the technical audit. The existing Johnson
Controls (JCl) Metasys EMS will be expanded to
include buildings which are not currently connected to
the central EMS system. This will allow the City to build
on the current investment which has been put forth in the
Figure 2: Facilities at the City of Miami
Beach will benefit fnun the additional
comfort and energy savings that will be
afforded by installing new control systems.
existing EMS. In addition, the maintenance personnel
familiar with the cuizent EMS will be able to utilize the newly expanded system immediately.
Ameresco will review the operation of the existing equipment and investigate conversion of all
the buildings over to the DDC system. This will greatly enhance the energy monitoring and
operation of the buildings, as well as allow remote troubleshooting ofsome of the equipment. By
placing all of the controls on a Web Based front end computer based system, the controls system
will be able to be monitored from any location. In addition, Ameresco proposes to bring up to
current code, the facilities which have ventilation issues, or for which improved ventilation is
needed for code compliance and occupant comfort.
A city-wide approach to energy management will enable the City of Miami Beach to take
advantage of the overall energy savings of the project (or this measure alone) in order to afford
EMS at individual facilities that would not be otherwise feasible to upgrade~due to the high costs
involving direct digital control tDDC) systems installation and other capital improvements.
ECM Detail
Ameresco observed during the group survey that most of the buildings investigated had been or
were planning on being upgraded to newer JCI-DDC controls. However, Ameresco observed that
some of the facilities utilize manual thermostats for control of HVAC equipment. These systems
are good candidates for upgrade and inclusion in the EMS expansion.
In the facilities which have been upgraded to include the new JCI controls system, Ameresco
recommends preserving the existing controls infrastructure wherever feasible and providing retro-
commissioning services. This would allow the facilities to be re-evaluated based on the current
`~
Proposal for a Guaranteed Energy Performance Contract /'age content is subject to Confidentiality RestrJctions"
City of Miami Beach Section Fve: Site Specific Approach
January 16, 2008 Page 102
~RESCO
~~ operation and end-use. Additionally it would allow the controls system to be overhauled to
replace or repair the components that have failed or are not accurately calibrated due to age and
equipment fatigue. The scope of the retro~ommissioning services will include:
• Establish and document the operating requirement for the building. Close interaction
with the City is required.
• Establish and document the operating and environment requirements for each space per
the City of Miami Beach standazds.
• Re-balance the air and hydronic system to meet the new building requirements
• Recalibrate the existing HVAC devices to ensure proper operation
• Reprogram the existing EMS system to ensure the building operates in accordance with
the City's requirements, while operating the building in an efficient manner.
Sample Sequences of Operation
AHU Demand Ventilation Control (Return Air COQ
The demand ventilation control optimizes outside air used for ventilation to reduce the building's
heating or cooling requirements when the return air COZ level is less than I,000ppm (AD1~.
When return air COZ levels are less than 1,000ppm (ADS, the outside air dampers will be
controlled by the. AHU economizer cycle. When return air COZ levels aze greater than ~ 1;000ppm
(ADn, the outside air and return air dampers will be modulated in sequence to maintain COZ
levels at or below 1,000ppm (ADn. A mixed air temperature sensor will be used as a low limit to
override the return air COZ control of the mixing dampers and to maintain the mixed air
temperature above the mixed air temperature low limit, initially set at 55°F (ADS.
This sequence will reduce energy consumption by matching the level of occupancy to the
ventilation rates. By performing this sequence, energy will be conserved by not over ventilating
the spaces.
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1"V~AERESCO
AHU Static Pressure Control and Optimization (OA Enthalpy
Reset)
The AHU Static Pressure Control and Optimization program will regulate and adjust the AHU
dischazge static pressure according to the reset schedule in Table 4-4.
The EMS will modulate the supply fan variable frequency drive (VFD) speed or variable pitch
fan blades to maintain AHU discharge static pressure at the reset setpoint. Ameresco will note
existing static pressure readings and verify setpoints with the facility prior to cut over to EMS
operation. Return fan VFD, where present, will modulate along with supply fan VFD, with an
adjustable offset. Sequence will have provisions to quickly shut down supply fan on either a slow
or sudden rise in discharge static pressure, above the adjustable setpoint to prevent damage to any
ductwork or components.
VAV Box Optimization (Unoccupied Setback)
The EMS will monitor space temperature and room or zone thermostat setting. The VAV Box
controller will modulate the VAV supply air flow from maximum setting to minimum air flow
and will sequence the VAV supply air damper with the VAV hot water reheat coil control valve,
and the perimeter hot water radiation control valve to maintain space setpoint. Initial space.
settings aze listed in Table 4-5.
During occupied periods, the EMS will take input from room or zone thermostat setting to offset
initial EMS setting by 2°F (ADn up or down. During unoccupied periods, VAV supply air
damper will go to minimum position and all reheat valves will close unless space temperature
exceeds unoccupied setpoint or occupancy ovemde control on thermostat is initiated. Occupancy
override will return VAV Box to occupied mode for a period of four (4) hours (ADn and then
will automatically return to scheduled mode.
~~~-=
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Table 44: Reset Schedule
Table 4-5: Initial Space Setting
1'VvtERESCO
Unoccupied Zone Temperature Reset
Ameresco proposes to fully implement unoccupied zone temperature reset. Zone temperature set
points will be varied based on occupancy schedules. Unoccupied zone temperature reset is
currently implemented by existing control systems, and will be implemented for existing
pneumatic systems. The addition of numerous DDC zone sensors in all buildings will permit
more accurate temperature control. More accurate sensing and control will permit maximum
unoccupied reset savings. Table 4-6 lists the proposed set points. These set points are proposed
for all unoccupied periods.
Table 46: Proposed Tempen~tun3 Setpoints
noccupied , •80 0 55 0
Temporary Occupant Override of Zone Temperature Reset
Ameresco proposes to provide occupants temporary overrides of zone temperature resets where
new local control thermostats are being installed. Local thermostats will have controls so
occupants can obtain air conditioning or heat during periods when the equipment is in unoccupied
mode. The overrides will be for a temporary period (e.g., 2 hours).
Optimum Start/Stop of HVAC Equipment
Ameresco proposes to implement optimum stop/start of the HVAC equipment. System energy
will be saved if occupied zone temperature is conditioned to its setpoint as close to the beginning
of the occupancy period as is possible. For. example, if the occupied zone setpoint is 70°F and
one hour is required to `dull the temperature up" to setpoint from the unoccupied temperature, the
start time of HVAC equipment will be delayed until one hour before the occupied period. This
optimum start time of HVAC equipment is a function of the building characteristics, setpoints
and ambient conditions. The EMS will create a database of measurements for the facility from
which an optimum start time will be automatically determined for each day. Similarly, the stop
time of HVAC equipment will be determined from this database.
General Zone and Special Area Event Scheduling
Ameresco proposes to provide operating schedule software for all controlled spaces. For
example, during unoccupied periods, areas can be maintained in unoccupied status. This software
will permit complicated event scheduling for specifics zones in any building. For example, a
"Court Room event" will schedule the specific Court Room air handling units `on' for the
occupied periods only while the remainder of the building is in unoccupied mode.
~_
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r..
r Equipment Control and Status
Ameresco proposes to control the HVAC equipment and provide feedback on operating status.
All boilers will be enabled by the EMS and operate on their packaged controls. Boilers will be
lead/lagged. Supply and exhaust fans will be controlled. Equipment status will be provided to
prove operation for all major equipment.
Fault and Exception Alarrming
Ameresco proposes to provide fault or exception alarming for the HVAC equipment. The
equipment operation status will be proved by sensors' operation; a commanded "ON" will result
in a proved "ON" or an alarm will be generated. An alarm list will be maintained in a database to
provide maintenance information to operators in real time. Operators will save significant time
by addressing needs as indicated by the EMS. During non-working hours, the EMS will have the
capability of paging operators automatically to announce system faults.
Impact on Facility Operations and Performance
The new EMS system will enhance facility operations by providing instantaneous access to
equipment information. Alarms will be generated to notify facilities of items needing attention. In
hallways, gymnasiums, and general administrative areas throughout all of the City facilities,
~~ enhanced comfort will occur due to more accurate temperature control. Individual facility
installations will be coordinated with City appointed personnel. If necessary, after hours
installations can be arranged.
Benefits
The City of Miami Beach will benefit from this measure through reduced energy costs as a result .
of the installation of the new control sequences. The new EMS system will enhance facility
operations by providing instantaneous access to equipment information. Alarms will be
generated to notify facilities or facility personnel of items needing attention. In all areas
throughout the building(s), enhanced occupant comfort will occur due to more accurate
temperature control. Individual facility installations will be coordinated with City personnel. If
necessary, after hours installations can be arranged.
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FRESCO
ECM 3:
Domestic Water Conservation
Ameresco will reduce domestic water consumption in the
City of Miami Beach facilities covered within this proposal
by replacing standard flow domestic water fixtures with low
flow water fixtures. As part of this ECM, Ameresco will
also retrofit urinals with low flow flush valves and modify
lavatory faucets with low flow aerators.
ECM Detail
Figure 3: Existing toilets will be replaced
Based on the site visits and observed water consumption of ~ low flow models to help reduce water
consumption.
fixtures, water uses at the City of Miami Beach include, but .
are not limited to: irrigation, toilets, urinals, sinks, kitchen applications, cooling tower make-up,
and miscellaneous uses. Within the facilities, there were standard flow rate toilets and urinals that
consume more than 3.0 gpf (gallons per flush) and 1.5 gpf, respectively. Lavatories or sinks were
identified, with a flow rate determined to be 2.0 gpm. Some water
fixtures were identified to be water conservation fixtures in new
additions or repairs. Overall most of the water fixtures surveyed
were of standard flow. .
A.meresco proposes to replace existing commercial type water
fixtures where applicable, and as identified in the preliminary audit
matrix. New water-saving fixtures, such as new china, will be
selected to be equivalent to existing equipment. All equipment
intended to modify existing fixtures, such as sink aerators, will be
sized to work with existing equipment. Where plumbing fixtures,
such as new toilets, connect to the existing water and waste lines;
minor repairs will be made as necessary to complete the
installation of the new devices. When necessary, water service to
Figure 4: City of Miami Beach urinals
will be replaced to help reduce water
consumption.
the plumbing fixtures will be shut off during the installation. Interruptions to other areas of the
building will be kept to a minimum.
Commercial Toilets and Flush Valves
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I~vtERESCO
,- ~ - Ameresco proposes to replace existing commercial type toilets equipped with diaphragm flush
r, valves with new 1.6 gpf toilets equipped with piston operated, manual flush valves. Ameresco
will be installing Kohl or equivalent fixtures (depending on site conditions) with matching piston-
operatedmanual flush valves by Toto or Zurn, in areas with high flow toilets.
Urinal Valves
Like the toilets, the urinal diaphragm flush-valves will be replaced with piston valves. The
existing urinals flush an average of 1.5 gpf. The proposed valves will reduce consumption to 1.0
gpf. Exposed urinal flush valves will be replaced. Automatic and concealed flush valves will not
be replaced. The diaphragms in concealed and automatic flush valves will be replaced to reduce
flow to 1.0 gpf.
Showers
Ameresco proposes to replace existing showerheads with low-flow showerheads. Ameresco will
install 2.5 gpm showerheads onto existing threaded shower arms. Ameresco identified many of
these opportunities during our subsequent site visits such as Flamingo Park pool, beachside
comfort/shower facilities, and Bayshore Club House (Miami Beach Golf Club). ,
Hand Washing Sinks
Ameresco proposes to install aerators with flows of 1.5 gpm in faucets that can accommodate an
aerator. Tamper-proof aerators will be installed in all locations. A few faucets may not be capable
of accommodating an aerator. In-line faucet restrictors rated at 1.5 gpm will be installed at each
bathroom faucet valve that cannot accommodate an aerator. This will include a new supply line.
Irrigation Controls
The City of Miami Beach can save water currently applied to their athletic fields and golf courses
by using nozzle replacement, rain sensor, and soil moisture sensors. This sub-measure applies to
the fields at recreational areas (i.e., North Shore Recreation Center) and golf courses.
Nozzle Replacement
The rotors currently serving all of the fields and golf courses will be analyzed to determine if they
are oversized By decreasing nozzle size, the irrigation effectiveness will rise significantly. In
order to decrease water use, current coverage has to be improved or field managers will not be
pleased with the results due to current coverage inadequacies. Areas currently under water,
which brown out when temperatures rise, will die due to less irrigation. To prevent a tendency to
override the system, the water has to be applied more uniformly.
Most athletic fields have many bare azeas. In addition to hard use, these baze areas are o$en
caused by little or no water falling or being provided to this area. New nozzles will help change
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1'C~~tERESCO
- this problem. Thus, the water wasted on over-watered areas will then prevail onunder-watered
azeas. This change will lower water use per minute, but will approximately use the same amount
of water as used before the change, due to the fact that the lower precipitation rates will require
longer irrigation intervals. There are some savings with this measure, but not enough to
significantly account for them.
Rain Sensor Installation
The second area of improvement to the fields and fairways is the installation of rain sensors. A
rain sensor will turn off the imgation system if at least Q.25 inches of rain has fallen. The rain
sensor has tiny discs which expand in size and then dry out to their normal size and allow the
irrigation system to turn on again.
Current controllers may not have rain sensor capability. New controllers must be installed for
rain sensors to be used. The recommended controller to provide this capability includes another
new technology -soil moisture sensors. Rain sensors and soil moisture sensors together will
lower water usage to the level required by the turf grass on these fields and fairways.
Soil Moistare Sensors
In order to receive the total irrigation water savings benefit, soil moisture sensors will need to be
added to the system. While rain sensors do a good j ob of turning off a system when it has rained a
certain amount, they.do not do a good job of fuming on the system after the rainfall event. Rain
sensors, as explained in the previous section, have tiny discs made of material which expand
when exposed to water or rainfall. These discs press down a switch to turn off the irrigation
system. When the discs dry out, the switch turns on and the irrigation system can water. The
discs are made of a special material which may dry out faster than the soil dries out. The soil
may not need additional irrigation until several days later after the rain sensor signals the
irrigation control that it can turn on again. Installation of soil moisture sensors allows an installer
to choose two areas of the field which may have differing evaporation rates. Most of the time, the
azeas of play aze more compacted and have worse distribution uniformity (how evenly the
irrigation system applies water) than the perimeter of the field
Impact on Facility Operations and Performance
The low flow water fixtures will enhance facility operations by reducing water usage. City of
Miami Beach personnel and visitors will notice no reduction in flushing capacity as a result of
this measure.
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l~IERESCO
f'~ - BBfZt?~ltS
The new piston style flush valves are lower maintenance than the diaphragm valves. Overtime,
the diaphragms break down and begin to leak. After two or three years, it is not uncommon for
these valves to leak 5 to 7 percent. By installing the piston valves, the maintenance associated
with the replacement of the diaphragm is eliminated.
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1'~7vt E1tESC0
ECM 4:
Premium Efficiency Motors
ECM Overview
Ameresco recommends replacing existing standard efficiency motors identified during the site .
visit and at other facilities during the subsequent preliminary audit with premium efficiency
equivalents. Motors of at least three horsepower in size that have significant annual usage will be
considered for replacement. New motors will contribute to a reduction in electricity use and
electrical demand.
ECM Detail
Motors considered for replacement are normally
operated for a minimum of 3,000 hours annually
and are standard efficiency models larger than
three horsepower. Existing motors operate at 3-
phase and 1800 rpm and are typically open drip-
, proof (ODP) types. Based on the observations
during the site visit, many motors are old or are
not energy efficient.
Ameresco proposes to replace the old and
inefficient motors with premium efficiency
equivalents throughout the City of Miami Beach facilities, where applicable.
Impact on Facility Operations and Performance
Motor upgrades will benefit the facilities by providing more efficient and reliable equipment.
Energy savings will be realized through the reduced electric consumption of the new motors.
Benefits
A reduction in utility and operating costs will be realized through the application of this measure.
,~_
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Figure 5: Typical chilled water pump set with
standard efficiency motors at City Hall.
E~iESCo
ECM 5:
HVAC System Upgrades
ECM Overview
Ameresco proposes to replace existing inefficient HVAC
equipment at several locations with more efficient
chillers and split-systems. The new systems will require
less energy while providing the same cooling output as
the units they replace.
ECM Detail
Existing System
Many of the smaller HVAC systems observed at the City
of Miami Beach facilities are older unitary split system
DX, window units, rooftop units, or others. These
inefficient systems tend to be utilized for extended
periods of time due to the manual controls oftentimes
associated with them. Also, due to the highly corrosive
atmosphere of the Beach area, the equipment has been
degraded overtime. This inefficiency is inevitable;
however, it can be slowed with the installation of
appropriate materials or coatings on the smaller HVAC
equipment.
Additionally, Ameresco has observed the use of older chillers and cooling towers in some of the
buildings. For example, the chiller in the Scott Rakow Youth Center is approximately 30 years
old and has reached the end of its useful life. Furthermore, there is a negative environmental
impact through the usage of these chillers due to their harmful refrigerants. In addition to the
chiller deficiencies, cooling towers serving some of the observed buildings were also suffering
from weather damage, missing and ineffective fill and were in need of replacement as well. The
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Figure 6: The exerting chiller at the Scott
Rakow Youth Center
Figure 7: Existing window unit at Property
Management offices
IVv1ERESCO
- continued usage of this equipment increases utility expenditures due to the inefficiency created by
the age and condition of the equipment.
Proposed System
Ameresco proposes to replace the existing systems with new high efficiency split-systems,
window units, and chillers. The proposed equipment will be more efficient than the existing
cooling systems, resulting in energy and cost savings. The new equipment will~also utilize the
most environmentally favorable refrigerants available.
Ameresco will replace the existing equipment after calculating the proposed equipment load in
order to account for any changes in design parameters since the original equipment was installed.
Furthermore, not only will equipment sizing be evaluated, but all systems will be tailored to the
facilities end-use. For example, if the existing equipment is a through the wall window unit, then
Ameresco will not blindly replace the unit with h~ce-in-kind. The most effective replacement may
be a small split system installation, or possibly high efficiency ductless unit(s).
Impact on Facility Operations and Performance
The proposed equipment will enhance the facility operations by standardizing the equipment
types at the City facilities. Enhanced comfort will result due to better control and operation of the
proposed equipment.
Benefits
The newly installed HVAC equipment will provide adequate cooling and dehumidification
throughout the year, creating a more pleasant work environment, while saving energy.
Furthermore, the newly installed systems will utilize more environmentally favorable refrigerants,
which will lower material maintenance cost and reduce harful environmental emissions.
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.L~QERESCO
,v _
~. ~ ECM 6:
Variable Frequency Drives
ECM Overview
Ameresco proposes to install variable frequency drives
(VFDs) on chilled water pump motors, cooling tower fans,
and also air handler motors that work with variable air
volume systems. Ameresco will determine during the
technical energy audit which motors will be candidates for
VFDs installation. Installing VFDs and controls for these
motors will allow them to modulate with varying load,
reducing electrical energy use and demand.
ECM Detail
During the site visit, Ameresco noted that some pump motors lack variable frequency technology.
Ameresco proposes to install variable frequency drives (VFDs) on the chilled water pump motors,
tower fan motors and air handler motors that serve variable volume systems. These upgrades will
benefit the facility by providing more efficient and reliable equipment. Electric energy savings
will be realized because of the reduced power consumption of the motors controlled by the VFDs
and will improve occupant comfort. The savings analyses are based on an estimated speed
reduction estimated for each motor.
Wherever feasible, Ameresco will optimize the pumping and conveyance strategies to include
variable flow. A secondary benefit to improving the VFD technology of this system is that the
mechanical components will benefit from lower operational speeds, and consequently, the
moving parts will experience less component wear, resulting in greater reliability and longer life.
Impact on Facility Operations and Performance
The new VFDs will enhance facility operations by increasing Iife expectancies of the motors they
control, since the motors will only be operating at the necessary speed to satisfy the load.
Benefits
This measure will allow the various air-side and water-side systems to closely match the load of
the system being served. This operation will dramatically cut the current operation costs of the
motors.
:~
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Figure 8: Existing constant speed
pumps.
!'QvtERESCO
f:. ECM 7:
Pool Energy Conservation Measures
ECM Overview
Although the City has recently modernized the pool at the North Shore Recreational Facility,
Ameresco proposes to replace the existing chlorine injection systems at the remaining pools with
new salt water chlorine generators. The new chlorine generators will completely replace the need
to store and use conventional methods of chlorine systems. The new systems will generate~ure
chlorine through a chemical reaction between pure granular salt diluted in the pool water and an
electrode in the filter piping. The new systems will provide the same cleansing action as the
existing Liquid chlorine system without the hazards and expense. The salt water system will also
make the water feel softer and virtually eliminate red eye. Ameresco proposes to include
replacement cells for the Chlorine generators over the term of the project.
ECM Detail
The City maintains various recreation centers, some of them containing swimming pools.
Ameresco proposes the following measures to address the energy consumption of the pools:
Install New Chlorine Generators: Ameresco proposes to replace the existing Liquid chlorine
injection systems with new salt water chlorine generators. The new chlorine generators will
completely replace the need to store and use liquid chlorine. The new systems will generate pure
chlorine through a chemical reaction between pure granulaz salt diluted in the pool water and an
electrode in the filter piping. The new generators will provide the same cleansing action as the
existing liquid chlorine system without the hazards and expense. The salt water system will also
make the water feel softer and virtually eliminate red eye.
Chlorine generators use common salt; the same salt is used in water conditioners, and converts it
into "free" chlorine. The chlorine sanitizes the pool and then reverts back into salt. The salt is
completely recycled and never depreciates. The salt concentration is so low it is barely noticeable
to the pool users. The result is a sparkling clean pool without the chlorine smell. These systems
virtually eliminate red irritated eyes, dry itchy skin, bleached bathing suits and green hair. The
systems proposed by Ameresco aze:
- UL listed (US and Canada) for safety
- NSF Tested for Performance and Commercial Applications.
Based on the capacity of the Recreation Center Pools, approximately eight new generators will be
used for the facility.
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• lQy1FRESCO
Filter Back Flush: Ameresco will repipe the filters to use city water to back flush the pool
~'~
filters. Presently the system is plumbed to utilized. treated pool water for the back flushing.
Impact on Facility Operations and Performance
The new chlorine generators will reduce eye irritation and provide softer water for the users. The
elimination of chlorine storage will reduce the harmful corrosion effects caused by storage of the
chlorination chemicals, in addition to reducing the exposure and risks associated with storage of
the chemicals.
Benefits
The new chlorine generators will completely eliminate the need to buy and use liquid, granulaz or
tablet chlorine. The new systems will generate sufficient chlorine levels to properly sanitize the
pools. Users will notice a more pleasant swimming experience.
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L-QvIERESCO
,;
,r
ECM 8:
Vending Machine Controls
ECM Overview
Ameresco proposes to install occupancy sensing, plug
load controllers to reduce the unnecessary operation of .
the City's vending machines during unoccupied periods.
The vending machine controller will save energy used
by the refrigerated vending machine(s) during
unoccupied hours without compromising product
quality. The controller will use a sensor to detect when
the space is unoccupied and turn off the vending machine.
ECM Detail
Vending machines are found throughout the buildings that we toured, including subsequent site
visits. The vending machines are typically stocked with soda, juice, and sport/energy drinks and
are cooled and illi~*n~nated year-round, regardless of occupancy. During our brief walkthrough,
we also identified lighted snack machines and some glass front coolers.
Ameresco proposes to apply a family of energy controllers for the snack and refrigerated drink
machines. The controllers reduce the energy consumption during the unoccupied periods without
affecting the quality of the product.
Soft Drink and Snack Pending Machines: Install
VendingMiserTM controllers, or equal, on all soft drink
vending machines to save energy during unoccupied
periods. This device controls the vending machine
operation without compromising its product quality. The
controller is external to the vending machine, therefore not
requiring vendor maintenance. Major soft drink
manufacturers have approved the controller for use on
vending machines offering their products.
Figure 10: Proposed Vending Miser
system will control operation to help
save energy during unused periods.
The controller employs infrared sensing technology to interrupt power to a vending machine
when the surrounding area is unoccupied. Regardless of occupancy, the controller automatically
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Figure 9: Flamingo Park vending
machines
IVvtERESCO
- enables the vending machine to ensure that its product remains cold. The controller is designed
r"
so that it will not de-energize the vending machine during a cooling compressor cycle.
As reported by the American Council for an Energy Efficient Economy (ACEEE), the 2.5 million
vending machines operating in the U.S. consume nearly $600 million in energy and demand
costs. Because the City buildings are not constantly occupied, the refrigerated vending machines
consume more energy than needed
Ameresco proposes to install occupancy sensing, plug load controllers to reduce the unnecessary
operation of vending machines during unoccupied periods. These vending machine controllers
will save energy used by refrigerated vending machines during unoccupied hours without
compromising product quality. The controllers will use sensors to detect when the space is
unoccupied and tuna off the vending machines.
The controllers will be applied to snack machines aad glass door refrigerators. The energy
savings opportunity for snack machines comes from turning the lights off during the unoccupied
periods. For any glass front coolers having nonperishable products, we will apply a controller to
reduce the energy consumption during the unoccupied periods.
All of these controllers use proven technology foi installation on vending machine equipment to
reduce energy consumption during periods when the building is not used.
Snack Machines: install SnackMiserTM controllers, or equal, on non-refrigerated snack vending
machines to save energy during unoccupied periods. The SnackMiser controller is installed on
non-refrigerated snack vending machines. This product creates energy and dollar savings for
organizations with snack machines.
SnackMiser will power down a snack machine when it determines that no one is azound the
machine. Like other Miser family members, SnackMiser utilizes a Passive Infrared (PIR) Sensor
to determine occupancy in the area around the vending machine.
A snack machine's lights and electronics typically draw nearly 100 Watts. This means a powered
on snack machine is equivalent to leaving a 100. Watt light bulb on 24 hours a day, every day of
the yeaz -holidays included. Powering this snack machine down when not needed will result in
real savings.
Glass Front Coolers: The CoolerMiserTM controls glass-front coolers that contain non perishable
goods. Machines suitable for control by CoolerMiser typically have glass sliding doors or pull-
open doors. CoolerMiser can operate stand alone or it can be a perfect companion to the
VendingMiser.
CoolerMiser utilizes a Passive Infrared iPIR) Sensor to determine occupancy in the azea around
the cooler. CoolerMiser will power down a cooler when it determines that no one is in the azea
around the machine. For a bank of coolers, CoolerMiser can utilize its unique embedded Sensor
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.["QvtERESCO
.- -, Repeater, which allows it to be controlled from the PIR sensor of any other Miser in the bank.
This facilitates a quick and simple installation.
A cooler's lights and cooling system typically draw an average of 460 Watts, costing
approximately $200 per year to operate at 5¢ per kWh. Powering down such a cooler when not in
use provides an average savings of $65 per year per machine. Additionally, keeping a cooler
powered off, unless the machine is actually needed, lengthens the expected lifetime of the
equipment and reduces its exposure to damaging power line spikes. Air conditioning load is also
reduced, resulting in further savings.
Impact on Facility operations and Performance
A passive infrared occupancy sensor will automatically connect or disconnect the controlled
equipment based time of day and occupancy. Coca Cola and Pepsi have approved the vending
machine controllers for use on their machines. Building occupants will notice no reduction in
drink or snack quality as a result of this measure.
Benefits
The new vending machine controls will reduce energy demand by reducing electricity usage
during unoccupied and low use periods.
t
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IQvtERESCO
~~ ECM 9:
Equipment and Pipe Insulation
ECM Overview
Ameresco will insulate equipment and pipe insulation as
identified in the preliminary site visit audit. The Scott
Itakow Youth Center was identified during the site visit as
in need of pipe insulation. Ameresco will look for
uninsulated piping and for other opportunities of
equipment insulation such as uninsulated domestic water
tanlcs at other facilities during the technical energy audit. -
Cost savings from the reduction of energy usage will result
from the innplementation of this measure.
ECM Detail
Ameresco identified one facility where pipe insulation is needed. This facility had mixed
~' insulated and uninsulated piping, and also uninsulated chiller bundles. Aineresco proposes to
insulate the chilled water system piping where identified, during the technical audit. The
proposed insulation will be a fibrous glass type with afactory-applied fire retazdant vapor barrier
jacket and having a K-factor of at least 0.27 at 75 °F mean temperature. Insulation thickness will
be determined during the design phase of this project to ensure adequate insulation performance.
Typical manufacturers include Owens-Corning, Certain-Teed, Manville, or Knauf.
Thermometers, controls, valves and nameplates will not be insulated and will remain accessible.
Fittings will be insuilated with pre-formed insulating pieces and covered with molded PVC jacket.
Impact on Facility Operations and Performance
The new insulation will significantly reduce heat loss from the mechanical equipment effected by
this measure. Installation of the new insulation will take place in mechanical spaces, therefore not
affecting normal activities.
Benefits
This measure will reduce the amount of heat lost through bare piping for both chilled water and
domestic hot water systems.
Proposal fora Guaranteed Energy Performance Contract 'Page content is subject fo ConBdentlalHy Restrictions"
City of Miami Beach Section Flve: Site SpeofBCC Approach
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Fgure 11: Uninsulated domestic hot
water systems
Elicsco
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ECM 10:
Building Envelope Measures
ECM Overview
Insulation and weather stripping are often overlooked opportunities for energy conservation in
municipal facilities. Ameresco proposes to provide new weather stripping for operable windows
and doors throughout the City's buildings. The new weather stripping will reduce the infiltration
of conditioned air and allow the HVAC systems to maintain adequate room setpoints.
Additionally, Ameresco will inspect the overhead doors throughout the City to determine if they
should be replaced with insulated units. The new doors will provide the City of Miami Beach
with greater occupant comfort in addition to energy savings and lower operating and maintenance
costs. The new doors will reduce transmission heat
losses and substantially reduce infiltration.
ECM Detail
Door Weather Stripping: Ameresco will implement a
program to replace the weather stripping on the doors
of the facilities. This will reduce excess air infiltration
in the facilities helping to reduce the drafty conditions
in the space.
Replace Overhead Doors: In the garage areas, the
overhead doors are designed to minimize drafts.
Ameresco will evaluate the overhead doors at the various facilities to see if new insulated doors
will improve the building insulation value and reduce the cooling costs.
Impact on Facility Operations and Performance
The new insulation will reduce heat load from the mechanical equipment effected by this
measure. Installation of the new weather stripping and door insulation will be coordinated with
the building occupants to reduce any impact on their function.
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Ciry of Miami Beach Section Five: Site Specific Approach
January 16, 2008 Page i21
Figure 12: The 555 Building with operable
windows
FRESCO
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The new weather-stripping will enhance facility operations by reducing infiltration that causes
drafts during the~*n?r~. Staff and the public will notice a more comfortable environment, which
will be more conducive to business. In addition, the new weather-stripping will have no adverse
affect on door operation.
Proposal for a Guaranteed Energy Performance Contract image content is subject to Con>5denfiality Restrictions"
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!'V~AEIZESCO
ECM 11:
Solar Water Heaters
ECM Overview
Ameresco proposes to harness the sun's energy to generate hot water for the domestic water use
at the Police Station and at the City Hall, and possibly pool heating at the Recreation Centers.
Each building will have a new solar array installed on the roof to capture the sun's energy which
will be utilized to heat water.
ECM Detail
There are several technologies that Ameresco will evaluate for application at the
facilities. The two most common technologies applied for solar hot water are flat
plat collector and an evacuated tube collector. The standazd flat plate collector
consists of a copper absorber plate covered with a titanium nitrite selective coating
with 95 percent absorption; a low iron tempered glass with 92 percent transmittance;
corrosion resistant aluminum construction; and a low profile at 3-inch thickness.
The plates are typically mounted on an aluminum frame secured to the roof of the
structure.
Evacuated tube solar water ssoone itubber
Pratedive Cap
heaters are made up of rows HP stopper r;~.~-:
of parallel, glass tubes. i~c Pie riser rrensrerFm -
Carwfenser ,,
Evacuated tubes are the
absorber of the solarwater
heater. They absorb solaz mna Bledc rube (Abawber)
energy converting it into heat - -_ „ s~ce
for use in water heatin .The
g CNxr outer Bass rune www.epriq,e~solefcom
heat pipe consists of the components shown on the model.
Each of these heat pipes are connected to a manifold that constitutes the collector array. We
estimate that each Recreation Center will utilize approximately 40 tubes for the array. This array
will tie into a newly installed storage tank with a new control valve used to blend the heated water
with the cold water to maintain the desired loop temperature. The existing boiler or heater burner
will be retained as backup for cold cloudy days.
{'
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January 16, 2008 Page 123
1'~fvtERESCO
~ ~~` impact on Facilities Operations and Performance
The solar water heaters will augment the heat supplied by the existing water heaters. In the case
of the pool systems, we will either select materials for the collector that will be compatible with
the pool water or install a heat exchanger to isolate the pool water from the collector.
Benefits
The solar water heaters will reduce the amount of electricity and natural gas the facilities use far
water heating.
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IQvt FRESCO
--~--..
ECM 12:
Solar Golf Carts
ECM Overview
The City currently operates the Miami Beach Golf Club. The club currently utilizes over 75
electric golf carts for its guests. The carts are utilized during the day and almost always must be
charged throughout the night. Ameresco recommends that the carts be equipped with solar
charging kits.
ECM Detail
The system is powered by state-of-the-art photovoltaic cells that
produce electricity directly from sunlight -similar to solar power
calculators and space satellites. The solar charging system
directly powers the golf car when driven in daylight. When the
golf car is at rest, the proposed system will charge the golf car
battery. The integrated charge controller ensures the batteries
will not be overcharged by the sun.
The new battery charger, panels and cables are retrofit to the existing golf carts. This work
involves the removal of the existing canopy, installation of a new canopy, and connection of the
cable to the battery. There are no moving parts for the system.
Impact on Existing Systems
The new solaz powered chazgers will not affect the life of the batteries or the operation of the golf
carts.
Benefits
This measure will reduce the amount of energy consumed by the charging of the golf carts. In
addition, the solar chazgers will reduce the number of golfers stranded on the course from dead
batteries. This green technology will help the environment and improve the golfers' experience.
~~
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City of Miami Beach Section Five: Site Specfic Approach
January 16, 2008 Page 125
I'Qv1 FRESCO
~' ~ ECM-13:
Computer Power Management
Even though low power processors and more efficient LCD monitors are being produced each
year, computer networks are the fastest-growing consumers of plug load energy in most
organizations. Computer loads are becoming an increasing source of energy consumption in
municipal operations as more and more counties computerize government services and post
information electronically. The computers purchased by the City have more memory, more
drives, and more capabilities. In addition, there is a steady increase in the number of computers
owned and used by each division. These plug loads all drive the continual rise in total energy
consumption. The average PC/monitor combination consumes 588 kWh of electricity every year,
according to a comprehensive report from Arthur D. Little (now TIAX) published in 2002.
Ameresco proposes to implement a softwaze based solution to rein in the energy consumption of
the computer systems. There are a host ofclient-server applications that run as a service on
Windows NT, 2000, and XP client machines and as an application on Windows 95, 98, and ME
client machines. These applications are a management tool that centralize control of the power
settings of the network's PCs and add dynamic new functionality to traditional power
management.
The application Ameresco typically proposes for customers of the City of Miami Beach's size
will allow the city to establish "time windows" when PCs are left at full power and ready to
receive updates, distn~butions, and packages; the PCs can then be set to log off ar restart when the
time window expires. In addition, an administrator can wake up PCs as needed by pinging
standby clients, push a so#tware update, and then return the PCs to their default power
management schemes. .
This type of application typically saves 100 to 300 kWh per year per PC/monitor combination.
For every 1,000 computers, we can expect to save about 240,000 kWh, or about $20,0001.
During the Technical Energy Audit, Ameresco will work with the TT department to present the
available tools that aze on the market and assist the City in implementing the application that
provides best value.
Impact on Existing Systems
These applications will allow the City to create power management "groups" that coordinate the
power needs of similar clients, operating systems, or users; implement dynamic "switching"
~ Assuming an average cost of $0.83 per kWh
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IVvIERESCO
~ :.. - power schemes that make PCs energy efficient without affecting user productivity; and detailed
measurement and reporting on per PC and network wide energy consumption.
Presently the Police department operates by turning the monitors off at night and leaving the
client CPUs operating. The proposed software will save energy by placing the CPUs in a lower
power consuming state during these unoccupied periods.
Benefits
The City will be able to operate all of the computers connected to the network in a more efficient
manner, thereby reducing energy consumption without affecting productivity.
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City of Miami Beach Section Five: Site Spedfic Approach
January i6, 2008 Page 127
ATTACHMENT "D"
Shutts and Bowen Document
MEMORANDUM
To Whom it May Concern:
The City of Miami Beach (the "City's has recently undertaken a procurement to procure
the services of an "Energy Savings Consultant". In connection with that procurement, a
Selection and Evaluation Committee has recommended the selection of Johnson Controls, Inc.
("JCI"), a Milwaukee, Wisconsin based firm specializing in the fields of automotive interiors,
energy consulting and battery production.
Like all government agencies in Florida, the City requires that all of its vendors affirm
that a prospective vendor has not committed any "Public Entity Crimes" within a five (5) year
time frame. Under Florida law, a "public entity crime" is a violation of any state or federal taw
by a person with respect to and directly related to the transaction of business with arty public
entity of arty other state or of the United States. See: s. 287.133. Fla. Scat. (2007}.
To that end, the City required that JCI certify that:
"Neither the entity submitting this sworn statement, nor any officers, directors,
executives, partners, sharehoIdcrs, employees, members or agents who are active
in the management of the errtity, nor any affiliate of the entity has been charged
with and convicted of a public entity crime subsequent to July 1, 1989."
While JCI a#Fttmed this statement as accurate, there are a number of troubling events in
the public record which call into question whether JCl and its affiliates or employees have
committed public entity crimes, and whether the Selection and Evaluation Committee should
have been afforded the opportunity to more carefully consider JCI's corporate integrity in its
evaluation. The following examples are illustrative of recent issues that should have been
disclosed:
(1) The City of New Orleans
According to the United States Departtnem of Justice, the project manager for JCI's New
Orleans energy savings contract, which is very similar in nature to that proposed for Miami
Beach, was convicted of "Conspiracy to Defraud the City of New Orleans". From the
Departmem of Justice press release, attached, it is alleged that the project manager, Terry Songy,
was involved in a kick-back scheme in which Johnson Controls' subcontractors gave money to a
group of involved individuals and City Officials. Each of the parties, including Songy, pled
guilty related to a conspiracy "defraud the City of New Orleans", which appears on its face to be
a public entity crime committed by an employee or ofl'icisl active in the management of the
project and/or the local affiliate of JCI.
' JCI chocked the box next to this oath, at~4rming the statement as being accurate as to their company.
(Z) Pontiac Michigan
Additionally, there is evidence in the public records that JCI is also under a federal
investigation related to school fraud on an energy savings contract in Pontiac Michigan. That
case, which was referred to the FBl by the School Board, includes questions as to how the
contract was procured ~it was a no-bid contract), and whether energy savings were exaggerated
to boost JCI's revenue. The contract at issue involved not only defrauding the school system,
but also the federal government, which is supporting the project through federal bonds.
Additionally, as a separate issue, it is our understanding that on December 4, 2407 the
School Board served JCI with a notice of defauh for contract performance issues. Problems on
the contract reportedly range from improperly functioning boilers to financial inquiries.
Consequently, the School Board has twice heard, and postponed in hope of settlement, agenda
items requesting termination of the contract. Thus, this contract not only involves potential
fraud, but is also one in which JCI has not served the District up to the standards required by the
contract. As such, each issue should have been considered by the Selection and Evaluation
Committee related to defaulted programsand/or public entity crimes inquiries.
(3) Dil for Food Program
Finally, it should also be noted that an affiliate of Johnson Controls, York International,
has recently settled charges that it has a long history of bribes and official misconduct with
respect to foreign contracts. For example, it has been reported that from 2001 through 2006,
York International, through its own subsidiaries, made more than $7.5 million in illici# payments
0o secure orders on commercial and government projects in the Middle East, India, China,
Nigeria and Europe. According to those reports, a total of 854 improper payments were made on
approximately 775 contracts -- 300 of which involved government end-users, including public
hospitals and schools. Additionally, it is reported that York recently paid $12 million in fines
and returned millions in profits to settle allegations that it paid bribes under the so-called "Oil for
Food" program administered by the United Nations in Iraq.
While these crimes are arguably related to foreign governments, they may well fall under
the "public entity crime" umbrella because the United Nations is situated in New York, the
bribes violated both U.S. and international law, and because they were enforced by the United
States Securities & Exchange Commission (the "SEC") and the United States Departtnent of
Justice, each of which claimed jurisdiction over the investigation. The United States government
itself played a substantial role in the Oil-For-Food program. Whether these acts are "foreign" or
involve the United States government, these cases must be taken as indicative of how JCI and its
afl`lliated entities conduct government business, and the Selection and Evaluation Committee
should have had an opportunity to consider this history in making its recommendation of award.
~ For example, according to press reports, program trustees have questioned a savings of 540,000 in gas, electricity
snd water reported by Johnson at the .lefferson Middle School-Whittier Elementary building in the Frst year, when
the target savings was projected at only Sl2,300.
Conclusion
in sum, it is clear that Johnson Controls has had significant and troubling questions raised
about improprieties in energy consultant contracts in New Orleans {which led to criminal
convictions) and Pontiac, Michigan (which is undo FBI investigation}. Likewise, JCI's
affiliates have been implicated in complex and wide-ranging bribery schemes in connection with
a number of foreign contracts, including the Oil-for-Food program which were investigated snd
punished by United States law enforcement agencies. These bribes are reported to have been a
violation of United States law and resulted in substantial fines paid in the United States for the
alleged misconduct.
Enclosed, please find substantial backup information obtained from the public record
concerning these allegations for your review. At the very least, this information should have
been presented to the Selection and Evaluation Committee for consideration. Likewise, we
believe you will agree that the guilty pleas related to the Johnson Controls' employees and
subcontractors' conspiracy to "defraud the City of New Orleans" (as well as the SEC bribery
settlement} represent actual "public entity crimes" that were required to be noted on the JCI
Application. ~ JCPs failure to disclose these convictions and settlements renders JCPs proposal
non-responsive and makes the company a non-responsible proposer. Thus, your
recommendation should find JCI non-responsive, and should recommend award to the second-
ranked proposer.
Finally, we note that the items contained in this memorandum are deeply troubling,
particularly in that the New Orleans and Pontiac cases involved similar energy-savings contracts.
Thus, any recommendation to award the contract fo JCI would put the City at obvious risk from a
contractor with a recent history of poor contract supervision; the Selection and Evaluation
Committee should have an opportunity to consider these matters prior to any such
recommendation.
SWORN STATEMENT UNDER SECTION
287.133(3)(x), F_ LORIDA STATUi'ES, ON
PUgUC EN7lTY CRIMES
THIS FORM MUST SE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY
PUBLlC OR OTHER OFFICER AUTHORIZED TD ADMiNtSTER OATHS.
1. This sworn statement is submitted to city of Mfami Beach
[print name of public entity]
by Holland Wattera. Hraach Manager
[print individual's name and title)
for Johnson Controls, Inc.
[print name of entity submitting sworn statement]
whose business address is 15901 S.W. 29th Street Ste.80i Miramar FL 33027
and (if applicable) its Federal Employer Identiffcativn Number (FEIN) is 39-0380010 (If
the entity has no FEIN, include the Social Security Number of the individual signing this sworn
statement: ~ )
2. i understand that a "public entity crime" as defined in iaragraph 287.133(9){g), ~ orida Statutes.
means a violation of any state or federal taw by a person with respect to and directly related. to the
transaction of business with any business with any public entity or with an agency or political
subdivision of any~other state or ofthe United States, including, but not limited to, any bid or contract
for goods or services to be rovfded to any public amity or an agency or political subdivision of any
oilier state or of the United States and irnoiving antitrust, fraud, theft, bribery, collusion,
racketeering, conspiracy, or material misrepresentation.
3. I understand that "convicted" or. "cornriction" as defined In Paragraph ~287.133(1)(b), orlda
~rneans a finding of guilt or a conviction of a public entity crkrte, with or without an
adjudication of guilt, in any federal or state trial court of record relating to charges brought by
indictment a information after July 1, 1989. as a result of a jury verdict, nonjury trial, or entry of a
plea of guilty or polo contenders.
4. l understand that an "affiliate" as defined in Paragraph 287.133 (1)(a),1`IoNda Statutes, means:
1) A predecessor or successor of a person convicted of a public entity grime; or
2) An entity under the control of any natural person who is active in the management of the
entity and who has been convicted of a public entity crime. The term ;affiliate" includes those
officers, directors, executives, partners, shareholders, employees. members. and agents who
are active in the management of an affiliate. The ownership by one person of shares
constituting a controlkng interest in another person, or a pooling of equipment ~ income
among persons when not for fair market value under an arm's length agreement, shatl be a
prima facie case that one person controls another person. A person who knowingly enters into
a joint venture with a person who has been convicted of a public entity crime In Florida during
the pn3c:eding 3ti months shall be considered an aH'ii fate.
5. t understand that a "person" as defined in Paragraph 287.733{9){e), Floridp Statutes means any
Movnne.r s, som
Gy Af 1Nbmi Bwrh E~bbtlahkrl a CwanMesa RFP No: 06.07-01
Ene-QY Paform~noe~eaWa ConUaa
2s au
natural person orentity organized under the taws of any state or cif the United.States with the legal
power to enter into a binding contract and which bids or applies to bid on contracts for the provision
of goods ar services let by a public entity, or which otherwise transacts or applies to transact
business with a public entity. The term "person" includes those officers, direectors, executives,
partners, shareholders, employees, members, and agents who are active in management of an
entity.
6. Based on information and belief, the statement which l have marked blow is true in relation to the
entity submitting this sworn statement. [indicate which statement applies.]
R Neither the entity submitting this sworn statement, nor any otfiicers. directors, executives,
partners, shareholders, employees, members, ar agents who are active in the management
of the entity, nor any affiiate of the entity has been charged with and convicted of a public
entity crime subsequent to July i, 1989.
The entity submitting this swum statement, or one or more of its officers, directors,
executives, partners. shan3holdent, employees, members or agents who are active in
management of the entity, or an aMliate ofthe entity has been charged wish and convicted of a
public entity crime subsequent to Juiy 1, 1989.
-The entity submitting this sworn statement, or one or more of its offrcers, directors,
executives, partners, shareholders, employees, members, or agents who are active in the
management of the entity, oran affiliate ofthe entity has been charged with and convicted of a
public entity crime subsequent to July t, 1989. However, there has been a subsequent
proceeding before a Hearing Officer of the State of Florida, Division of Administrative
Hearings and the Final Order entered by the hearing Officer determined that it was not in the
pubNc interest to place the entity subrnilNng~this sworn statement on the convicted vendor
list. (attach a copy of the final order]
I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR
THE PUBUC ENTIi'Y IDENTIFIED IN PARAGRAPH i (ONE) ABOVE IS FOR THAT PUBLIC
ENTITY ONLY AND, THAT THIS FORM fS VALID THROUGH DECEMBER 37 OF THE CALENDAR
YEAR IN WHICH 1'T IS FILED. 1 ALSO UNDERSTAND THAT t AIIA REQUIRED TO INFORM THE
PUBUC ENTITY PRIOR TO ENTERING INTO A CONTRACT !N EXCESS OF THE THRESHOLD
ANOUNT PROVIDED IN SECTION 287.Oi7, FIAItiDA STATT~UTTES FOR CATEGORY ~p~p OF ANY
CHANGE iN THE INFORMATION CONTAINED IN THIS FOf~M. ~ i i// 1
[signature]
Swam to and subscribed before me this-- ((D ~ day of JGG~1 .~_ dig
Personally known
OR Produced identification Notary Public -State of ~'{ v~r~_
fVly commission expires $~~`~--C~`~
(Type of idenfl6cation)
.,,, ",.,, Barbara J. Tarr
,
(Printed typed or stamped Commissioned name of Notary Public) _ ~~_
'~a:a~'
•
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ao.acaTtsu
•n,ur Ad66r1eBondiKCo..Inc.
Norrnlb~- 6,1007
C1y d MI~ml6swr E~t~pOMNy ~ r,TU~fi111NA Enap~r p RPP No: 06-07-0!
~ (,p„r~
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The United States Attorney's Office
Eastern District of Louisiana
U.S. Attorney's Office
Eastern District of Louisiana
501 Magazine St
- 2nd Floor
New Orleans, Louisiana 70130
Press Releases
BARRf=, DECAY, WALKER AND UPS CHARGED BY FEDERAL GRAND JURY IN SUPERSEDING
INDICTMENT; LOCAL POLITICAL CONSULTANT CHARGED WITH FEDERAL TAX VIOLATIONS
September 20, 2006
FOR IMMEDIATE RELEASE
NEW ORLEANS, LOUISIANA -Jim Letten, United States Attorney for the Eastern District of Louisiana, and
James Bemazzani, Spedal Agent in Charge, Federal Bureau of investigation, Federal Bureau of Investigation,
and Rodney Clark, Speaal Agent in Charge, irrtemal Revenue Service, Criminal Investigations Division,
announced that a federal grand jury has handed down a superseding indidment against the former Director of
Property Management for the City of New Orleans, KERRY DECAY, 45 New Orleans, and three local
businessmen, STANFORD BARRI=. 60, of New Orleans, REGiNALD WALKER, 57, of New Orleans and JULIUS
LIPS, JR., 49, of Tarrytown, Louisiana.
Also charged today in a separately filed Bill of Information is local political consultant WILLIAM A. SCHULTZ, 57,
of New Orleans. SCHULTZ has been charged by U.S. Attorney Jim Callen in a bill of information with two c~rrts
of failure to file tax returns with the Internal Revenue Service (IRS). The bill of information alleges that SCHULTZ
failed to file income tax returns for the tax years 2001 and 2002. It further alleges that SCHULTZ earned
consulting income from various sources including Pampy's Inc. (STANFORD t3ARR~) AND Moss Creek
Development, Inc. (REGINALD WALKER). According to U.S. Attorney Jim Callen, "SCHULTZ entered into a plea
agreement with the government which, as of yesterday, resulted in SCHULTZ tendering restitution to the United
States in the amount of $183,70'1.00 far back taxes which he owed. The agreement also sets forth a stipulated
term of imprisonment of one (1) year and (1) day. And thirdty, the agreement requires SCHULTZ to cooperate
with federal authorities in other on-going federal inveatigatlons."
The superseding indidment against BARRI=, DECAY, WALKER and UPS alleges a pattern of corruption during
the negotiatbn and implementation of the Johnson Controls contrad awarded during the prior city administration.
These contrads entitled Johnson Controls ib be paid $9.4 million for Phase One, $17.7 million for Phase Two and
$6 million for Phase Three. The total the City will pay aut including principal and ir>terest over the course of the
entire contract period is approximately $85 million. The contracts were premised on achieving energy savings for
the City sufficient to pay for the cost of the contrads. The indidment states that contrary to the stated cost
savings method of paying for the contrad, the City has paid approximately 53.2 million annually towards this debt
using capital improvement funds obtained from bond issues.
As with the original indictment, the superseding indictment charges conspiracy, mail fraud, extortion, obstruction
of justice, false statements and money laundering. Specfically, KERRY DECAY, who oversaw Phases Two and
Three on behsdf of the City of New Orleans, was charged with conspiracy to commit malt fraud, multiple counts of
http:!/neworleans.fbi.gov/dojpressre!/200b/no092006.htm 3/12/2008
mail fraud, and extortion and one count of obstruction of justice. STANFORD BARRI=, asub-contractor to
Johnson Controls, was also charged with conspiracy to commit mail fraud, multiple counts of mail fraud and
money laundering and obstruction of justice. REGINALD WALKER, asub-contractor to Johnson Controls, was
charged with conspiracy to commit mail fraud, multiple counts of mail fraud and money laundering and obstruction
Of justice. JULIUS LIPS, JR. is charged wish mail fraud and making a false statement to the Federal Bureau of
Investigation.
`This grand jury indictment alleges that a high level sty official used his position to illegally eririch himself and
others at the expense of the taxpayers of the City of New Orleans," United States Attorney Jim Letten said. Letten
stated, "Such corruption deters deserving businessmen from doing business on a level playing field in our
community because they believe that they will not be given a fair opportunity to participate in government
projects."
"The superseding indictment returned today contains an additional mail fraud count, Count 1$, charging KERRY
DECAY with causing a previously uncharged payment pursuant to an allegedly inflated invoice in the amount of
5606,400.00. The superseding indictment is also more compact, but also adds some additional overt acts."
:~tse invohres charges of kickbacks and fraudulently inflated invoices which allegedly, cost the City of New
:moro money than the value it received from the contract. For instance, the indictment aaeges that while
. _ _;yiras being paid by Johnson Controls to help manage its subcontractors, he was being paid hundreds of
of doNars from one of them, Moss Creek. The inditment goes on to allege that BARRE would then
- ~ Mitt rrroney he rBCenred from Moss Creek with KERRY DECAY and the Johnson Controls project manager,
.... 9y
Additionally, the indictment alleges that BARRE helped secure the subcontract for Moss Creek which is owned by
REGINALO WALKER. Walker's company did work under the Johnson Controls contract at the New Orleans
Cultural Center which had no energy savings component according to the indictment. This work was authorized
by KERRY DECAY and benefitted BARRl= who holds the exclusive concession contract under the name
Pampy's, Inc. for the Moms F.X. Jeff Municipal Auditorium and the Mahaka Jackson Theater of the Performing
Arts which comprises the Cultural Center. BARRY, operating under the name Chrystal, is also part of a joint
venture with SMG coifed SMG Crystal, L.L.C., which manages the Cultural Center and received management
fees and incentive bonuses as part of his contract.
The indictment alleges several instances where KERRY DECAY received things of value besides money from
businesses involved in the contracts with Johnson Controls. In one of those instances, defendant JULIUS "JAY"
LIPS, JR. is alleged to have bought DECAY a custom glass table while doing work with the City. Other items
DECAY is alleged to have received, in addition to cash, are a Viking refrigerator, an ice maker, a pool pump.
Additionally, KERRY DECAY, while Property Manager for the City of New Orleans, attended exclusive golf
tournaments in Florida and California, paid for by STANFORD BARRY
If convicted, KERRY DECAY faces a maximum sentence of 210 years in prison; STANFORD BARRY faces up to
130 years in prison; REGINALD WALKER faces up to 130 years in prison; and JULIUS "JAY' LIPS, JR. faces a
naudmum of 15 years in prison. All face substantial fines and forfeiture if convicted.
To date, six other individuals connected to this investigation have been charged and all six have entered pleas of
guiHy as charged, as foNows:
BERRY SONGY has pled guilty to a two-count bill of information charging that SONGY conspired with others
,~#1~tiiding KERRY DECAY, the former Director of Property Management for the City of New Orleans to deprive
Controls of his honest and faithful services acrd to defraud the City of New Orleans of property and the
and faithful services of the Diroctor of Property Management. SONGY also pled guilty to evading taxes for
~~ 2001 by receiving taxable income in a manner designed to avoid notiificstion bo the internal Revenue
Including the receiving of cash payments. SONGY faces a maximum penally often (10) years
~ meM and fines totaling 1500,000.
MICHAEL FARRIS of Speciality Machine Services, Inc., has pled guilty to misprision of mail fraud in furtherance
of fraudulent conduct depriving the City of New Orleans of the honest services of former Director of Property
Management Kerry De Cay and Johnson Controls of the honest services of its former project manager, TERRY
http://neworieans.tbi.gov/dojpressr•el/2006/no092005.htm 3/12/2008
SONGY. FARRIS faces a maximum term of flue (5) years imprisonment.
ROY JOSEPH BROUSSARD of R. J. Broussard, LLC, has pied guilty to misprision of mail fraud in furtherance of
fraudulent conduct depriving the City of New Orleans of the honest services of former Director of Property
Management Kerry De Cay as well as depriving the management company at the New Orleans Cultural Center of
the honest services of an employee. BROUSSARD also faces a five {5) year maximum sentence.
OWEN PRES7RIDGE, a general contractor, has pled to misprision of mail fraud in furtherance of fraudulent
conduct in connection with work done at the New Orleans Cultural Center. PRESTRIDGE faces a maximum five
(5) year prison sentence.
MICHAEL GARNETT of Golden Hammer has plead guilty to misprision of an extortion by KERRY DECAY by
wrongful use and threat of use of fear of economic harm and under color of official right in unlawfully obtaining
payments for household appliances for himself from GARNETT. He also faces up to five {5) years imprisonment.
RANDALL MOORE of National Contractor Services, Inc. has also plead guilty to misprision of extortion by
KERRY DECAY by wrongful use and threat of use of fear of economic harm and under color of official right in
unlawfully obtaining cash payments from MOORE. As with the other previously convicted defendants, MOORE
faces a maximum sentence of up to five (5) years imprisonment.
This case is being prosecuted by First Assistant United States Attorney Jan Maselli Mann, Deputy Criminal Chief
Fred Harper, Senior Litigation Counsel Sal Perricone, AssistanE United States Attorney's, Brian M. Klebba, Jon M.
Maestri and Michael Simpson.
A superseding indictment is merely an allegation and all defendants are presumed innocent until convicted at trial
or after pleading guilty. Trial in this matter has been set for January 16, 2007, before United States District Judge
Carl J. 8arbier. AI! four defendarris are currently on bond and pretrial supervision. Federal law requires SCHULT2
to appear before a U.S. Magistrete Judge to be formally arraigned on the Bill of Information.
New Orleans Homepage Press Releases FBI Homepage
http://neworleans.fbi.gov/dojpressrel/2006/no092006.htm 3/I 2!2008
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EvsryUting lVevr Qrlcans
Kickbacks admitted in work for New Orleans
Subcontractor pleads guilty, says he paid official
Thursday, January 12, 2006
By Brice Eggler
Staff writeir
Federal prosecutors rang up another conviction Wednesday in their probe of a scheme to skim hundreds of
Ihoueands of dollars from a huge energy-efficiency contract awarded during former New Orleans Mayor Marc
lillorial's tenure at City Hall.
Under an agreement with prosecutors, Michael Gamett, a subcontractor who did work under the $81 million
Johnson Controls Inc. deal, pleaded guilty to misprision of a felony for knowing about crimes related to the
scheme but failing to inform authorities, U.S. Attorney Jim l.etten said.
Gamett is the fifth subcontractor to enter a guilty plea related to the Johnson Controls contract, Letter said.
The 20-year contract with Johnson Controls, awarded in 2000, was the largest signed by the Morial
administration. It was intended to save the city money on its energy bills, in part by replacing an array of energy-
consuming fixtures with more efficient models.
Letter said Gamett admitted providing kickbacks to Keay Decay, director of the Department of Property
Management under Mortal, in connection with the subcontract given to Garnett's company, Golden Hammer
Construction.
The kickbacks included a refrigerator costing $5,278.20 and an icemaker worth $1,387.57 that Gamett's
company bought for Decay's home, plus an identical ioemaker for the home of Teny Songy, Johnson Controls'
focal project manager, according to the plea agreement.
Songy has told investigators that he and Decay "controlled assignments given to Golden Hammer under its
subcontract with Johnson Controls," the document says.
Decay has said he's innocent. Prosecutors have said Songy is expected to plead guilty and is cooperating with
the investigation.
Letter said Garnett was placed in the difficult position of having to give payments to a city official to get city
business, and that he did so reluctantly. Letter urged other business owners to refuse to be corrupted and to
report any approaches for kickbacks to the FBI.
Garnett, whose case was investigated by the FBI and the Internal Revenue Service, entered his plea before U.
itNpJ/www.nola.comlprinterlprinter.ssF?/i+ss~4news-1 2/1 13705128 1 3 1 3930.xm1 (I of2)3117/20083:33:28 PM
. S. District Judge Martin Feldman.
Feldman, who is set to sentence Garnett Apri} 19, could impose a maximum of three years in prison and a
$250,000 fine. But Garnett, and several other Johnson Controls subcontractors who have pleaded guilty to the
same crime, could draw a much lighter sentence in return for cooperating with the government.
Subcontractors Ray Joseph Broussard of R.J. Broussard LLC and Owen Prestridge of Owen Prestridge
Contractor pleaded guilty in November. Two others, Randall Moore of National Contractor Services Inc. and
Michael Farris of Specialty Machines Services, flied guilty pleas in December, First Assistant U.S. Attorney Jan
Mann said.
Charges were filed against the five subcontractors and Songy in August. Letten said at the time that ail were
expected to plead guilty and cooperate with the government.
Besides Decay, the highest-profile defendants in the Johnson Controls case are expelled to be Reginald
Welker, owner of a construction company that received a large subcontract from Johnson Controls, and
restaurateur Stan "Pampy" Barr, a confidant of Morial's.
According to a grand jury indictment issued in June, Decay, Walker, Barrio and Songy plotted to skim money
from the contract by inflating the costs of various jobs. Subcontractors would be directed to turn in fraudulent
imroices, after which they would kick back money and sometimes other items to Barra, Sorry and Decay, the
indictment said.
Barra grossed more than $800,000 from the deal for little or no work, while Songy and Decay each took in at
least $100,000 in cash and gifts, according to the June 16 indictrnen#s.
The government said Barre, Decay and Songy also agreed to change the contract's scope of work to include
renovations to Barrs's concession stands at the Morris F.X. Jeff Municipal Auditorium and the Mahalia Jackson
Theatre of the Performing Arts. Those changes and others unrelated to energy efficiency added $1.8 million to
~~e price of work in the two buildir~s, the indictment said.
Barre and Walker have said they are innocent.
Bruce Eggler can be reached at begglera, imespicayune.com or (504) 82&3320:
bttp://www.Hole.comlprinter/printer.ssfl/base/news-12/i13705128i313930.xm1 (2 of2)3/17/Z0083_i3:28PM
FBi to probe Pontiac school contractor
Board members considering termination of work agreement
By DIANA DILLABER HURRAY
Of The {aakiand Press
The company hired to replace heating and cooling systems and install
security cameras in Pontiac schools is now feeling the heat of a federal
investigation.
.The Pontiac Board of Education has asked the Federal Bureau of
Investigation to probe how the $ I 8 million cmttract with Johnson Controls
Inc. was originally procured. The loan for the project was funded with federal
bonds.
The school district contracted with Johnson Controls in 2006 to upgrade
lighting, security cameras, roofing, flooring and technology to 21 district
facilities that are an average of about 55 years old. Some residents were
critical, saying the district did not ask for bids on the projects.
The school board was also expected to terminate the contract with Johnson
b~ecl on performance issues at a Tuesday meeting, but after a twahour
-closed meeting, that issue was moved to a special meeting at 2 p.rn. March 7.
In December, the board directed attorney Dennis Pollard to notify Johnson it
was in default of the contract.
In December, the school district gave Johnson 30 days to correct the defects
and deficiencies cited by engineers from Ghafari Associates and outlined in a
30 page letter that was sent to Johnson with the notice of default. Pollard said
ifthe issues weren't remedied by then, the district planned to terminate the
agreetnent.
The FBI investigation on funding and the termination of the contract are two
separate issues, both of which are being handled by Pollard, said Board
President April Hernandez.
In a news release read by Hernandez on Tuesday evening, she said the school
district, "took action to review a troubling issue based on information very
recently received and asked legal counsel to act on (the school board's) behalf
in taking concerns to the FBI about the manner in which the Johnson
Controls contract was originally procured.
"Legal counsel is now working with the FBI and we will cooperate fully in
http://www.theoaklandpress.com/cgi-bin/printme.pl ~ 3/17/2008
their investigation of this matter," Hernandez said. "The baard and
administration are committed to open, honest business transactions and we
will not hesitate to shine a bright light on improprieties of the past while
holding aurseives accountable far the future of this district."
Hernandez said the decision to go to the FBl was based on information and
documentation provided by Pollard regarding the funding.
"We authorized the attorney to meet with the FBl and give them the
supporting documentation," the board presidenE said.
The new energy and operational efficiency improvement program is supposed
to help Pontiac schools save $48 million over 20 years, with loan payments
being made by the savings.
Danyll Fortune, director of public relations for Johnson Controls Building
Efficiency, said he did not know about the board's vote or the investigation.
"To my knowledge, Johnson Controls has not been contacted about an
investigation regarding our contract with the Pontiac School District,"
Fortune said in a written statement.
"In fact, as recently as today and throughout this month, we have had ongoing
positive communications with the District and their representatives. We have
not been made aware of an investigation and we are hopeful we are on our
way to reaching a satisfactory agreement," Fortune said.
Boilers were installed in all buildings in early 2007. During the summer and
there were complaints of moms reaching 95 degrees and no controls
were installed on the boilers to allow building engineers to adjust the heat.
Johnson representatives said the crews had to wait for cold weather to see
how the new boilers worked and whether the temperature needed to be
adjusted. When the weather turned cold, so did classrooms. Corrective
measures have been taken.
It is unclear whether the districtwide security system installed by Johnson
Controls featuring 231 cameras is working as school officlals expected.
Hernandez said Tuesday evening she could not say if they are working.
The goal of school officials at the time the board signed the contract was to
give "students, staff and parents the learning environment that they deserve
without impacting the wallets of the school district's constituents," Mildred
Mason, former school superintendent, said then.
Ghafari Associates was hired 'rn 2007 to monitor the installation after board
members were not satisfed with answers on the program's progress and on
the formula used for projecting savings provided at a presentation last year.
For example, trustees questioned a savings of $40,000 in gas, electricity and
http://www.theoak[andpress.com/cgi-bin/printme.pl 3/17/200$
water reported by Johnson at the Jefferson Middle School-Whittier
Elementary building in the first year, when the target savings was projected at
only ~ 12,300.
Contact staff writer Diana Dillaber Murray at (248) 745-4638 or
diana.di llaber@ .oakpress,com.
Click here to return to story:
http:/Iw~vw.theoak landpress.com/stories/022708/loc_200802273 17.shtm J
http://www.theoaklandpress.com/cgi-bin/printme.pl 3/l 7!2008
Thursday, February 28, 2008
iaontiac
FBI probe sought in schools' cold woes
District alleges company defaulted on $18M energy
conservation deal involving building climate contral.
Jennifier Chambers J The Detroit News
PONTiAC -- The Pontiac Board of Education has asked the FBI to investigate an $18 million
contract with Johnson Controls Inc. after school offcials alleged the company defaulted on the
:contract.
Dennis Pollard, attorney for Pontiac schools, confirmed Wednesday #hat he and school
officials have met with federal agents to hand over information on a contract, entered into in
2006, for an energy conservation project with Johnson Controls, which specializes in climate-
control systems for commercial buildings.
Pollard said work to be done included heating and cooling systems, lighting and security in
numerous buildings across the district.
In December, Pollard said he sent Johnson Controls a notice that they were in default of the
contract.
'Things were not completed, done wrong or not done at all," Pollard said.
Calls to a Johnson Controls official were not returned Wednesday.
In November, teachers from Pontiac schools were complaining that their classrooms were so
cold students had to wear coats all day Tong. The problem stemmed from new heating
systems that were installed in 2006 in some district buildings by Johnson Controls as part of
the contract.
Irma Collins, Pontiac Education Association president, said in November she reported the
issue to the Oakland County Department of Health and Human Services.
Collins said she has received calls from teachers at Pontiac Central and Northern high
schools, Madison, Jefferson and Rogers middle schools and Franklin Elementary.
Darryll Fortune of Johnson Controls told The Detroit News in November the company has
received isolated calls from teachers and administrators, but the company works "in tandem"
with the schools maintenance staff. Fortune said there was no problem with the equipment,
"it's just a matter of adjusting the heat."
The contract stipulates an avecage temperature of 68 degrees.
Pollard said the district has been unable to resolve the issue after working with the company
for three months. School officials will meet on March 7 to decide whether to seek a settlement
or terminate the contract.
Ftnd this article at:
http://www.detnews.com/appslpbcs.dlt/article?AID=I20Q80228/METR0021802280344
http://www.p~inahis.clickability.oom/pdcpt?ac~ion=cp~...D%2F2(1080228%2FA~iE'fR002962F802280344%2F&par~nerlD=16273 t 3/17/2008 3:29:34 PM
Tha Business Journal of Milwaukee -October 2, 2007
http://milwau kee. bizyoumais. comimilwaukeelstorias!2007!10-01/tlaily7. html
1NE •
usiness journal
lEilYl~i itREAT[ti ^IIHUREE
Tuesday, October 2. 2007
York international paying millions to settle
bribery case
The Business Journal of Milwaukee
Johnson Controls Inc.'s York International unit has agreed to pay $i2 million in fines
W__.....~_........_......_ ............._._.._..._...._....._...... _......._......._..............................~.........
Viand hand over millions in profits to settle allegations that it bribed authorities in several
countries, including Iraq under the United Nation's Od for Food program, the U.S Securities
and Exchange Commission said Monday.
York International was accused by the SEC and the U.S. Department of Justice of receiving
contracts for projects over a period.extending from 200o through 2006 in return for the illicit
payments.
Under the settlement, the York, Pa.-based heating, air conditioning and ventilation company
will hand over $9 million in profits, plus $i.i million in pre judgment interest, and to pay a
°eivil penalty of $2 million. York International is also ordered to retain an independent
compliance monitor. York International will also pay a $xo million fine under a deferred
prosecution agreement with the U.S. Department of Justice.
York, which was acquired by Glendale-based Johnson Controls (NYSE: dCi} Dec. 9, 2005,
consented to the settlement without admitting or denying the allegations.
In a statement, York said the $22 million in financial settlements are not expected to materially
impact the company as they have been fully provided for in prior periods. The company said
the investigation dial not reveal any personal misconduct by York senior officers.
According to the SEC's complaint:
In 2003 and 2004, York International's subsidiary, York Air Conditioning and Refrigeration
Inc., allegedly paid more than ahalf-million dollars to an intermediary to bribe United Arab
Emirate officials to secure contracts in connection with the construction of a government-
ownedluxury hotel.
In addition, from 200o to 2oog, York International's Dubai subsidiary allegedly authorized
and made approximately $647,iio in kickback payments in connection with its sale of
humanitarian goods to Iraq under the U.N. Oil for Food Program. The program provided
humanitarian relief to the Iraqi population during the time that Iraq was subject to
international trade sanctions.
http:/Iwww.bizjournals.corn/miiwaukeeistories/2007/10/O1/daity7.htm1?t=printable 3/i4/200i!
From 2001 through 2006, York International, through certain subsidiaries, allegedly zziade
more than $~.5 million in illicit payments to secure orders on certain cotnmercial and
government projects in the Middle East, India, China, Nigeria and Europe. A total of 854
improper payments were made on about ~4 contracts -- got projects involved government
.end-users, such as government-owned companies, public hospitals or schools.
A11 contents of this site cQ American City B~~siness Journals Inc. A11 rights r~eserued.
http://www.bizjournals.com/milwaukee/stories/2007/10/Ol/daiiy7.htm1?t=printable 3/14/2008
~~com.
York Settles Bribery Case with Iraq Connection
The company will pay $22 million over an alleged global pay for-5usiness scheme.
Stephen Taub, CFO.com { US
October 1, 2007
YQ~k~ International has agreed to pay $22 million to Bettie a number of civil and criminal bribery
<ctiarges, including allegations related to the United Nations' Oil for Food Program for citizens of
Iraq.
In its deal with the Securities and Exchange Commission, the heating, ventilation, air
conditioning, and refrigeration provider also agreed to retain an Independent Compliance
Monitor. .
Without admitting or denying the allegations, York agreed to disgorge $8,949,132 in profits,
plus $1,083,748 in pre-judgment interest, and to pay a civil penalty of $2 million. The company
also agreed to pay a $10 million fine under a deferred prosecution agreement with the U.S.
Department of Justice.
The SEC's complaint alleges that York's Delaware subsidiary, York Air Conditioning and
Refrigeration, paid about $522,500 to an intermediary while knowing that most of the money
was intended to bribe United Arab Emirates offlcials in order to secure business.
The complaint also said York International's Dubai subsidiary authorized and made about
$fi47,110 in kickback payments under the U.N. Oil for Food Program. Additionally, according to
the SEC, York subsidiaries devised elaborate schemes to conceal kickback payments of more
than $7.5 million to secure orders on commercial and government projects in the Middle East,
India, China, Nigeria, and Europe.
l~oi:=k which was acquired by Johnson Controls in 2005, also allegedly failed to devise and
maintain an effective system of internal controls to prevent or detect numerous violations.
httpJ/www.cfo.com/printable/article.cfmP9845307/c_9892558?F~ptions 3/14/Z008 10:02:20 AM
ATTACHMENT "E"
Response by Johnson Controls, Inc. to Shutts and Bowen Document
.kohnsvn Cr~ntrals, knc. JrJhftSt)ft
5117 E. MiChi$2n St., Pest ~}f#iCe Eiox 4?..',, Milw7aikefl, aA/4 x3203-fJ~23 ~tail~fO~S
March 27, 200$
Yia Email & overnight Delivery
Mr. Theo Carrasco, Procurement Coordinator
Procurement Division
City of Miami Beach
1'700 Convenrion Center Drive
Miami Beach, FI, 33139
theocarrasco@miamibeachf I.gov
:Dear Mr. Carrasco:
We are inreeeipt of the "anonymous package" the City ofMami Beach received
regarding alleged misstatements in Johnson Controls' bid. submission. Thank you for
.allowing us this opportunity to correct the many inaccuracies reflected in the anonymous
package, By this letter, we want to reaffirm the veracity of Johnson Controls' bid
submission, and,point out the incomplete and misleading nature of the materials you.
received in the anonymous.package. An accurate summary of each of the three matters
referenced in the package is included below. We believe that with an accurate-and
complete understanding afthe'facts and circumstances.surrounding these matters, the
City will recognize that Johnson Controls and its management acted in a responsible and:
ethical manner in each instance. IVMareaver, it should be apparent that, contrary'to the
false assertions :made in the anonymous package, Johnson Controls' certification.. included
in -.its bid submission was correct and complete.
The City of New Orleans
Beginning in 2002, Johnson Controls received several subpoenas and
informationrequests in a federal investigation into several contracts with the City
of New Orleans, Louisiana. Federal investigators informed Johnson
Controls early on that it was not a target of the investigation; this status did
not .change thronghont the coarse of the .:investigation and sabsegnent
:proceedings.
In June 2005., the U.S. Attorney issued an indictment naming certain
:subcontractors of Johnson Controls_ as well as the City of New .Orleans' facility
director in connection with certain service contracts Johnson Controls had for
buildings owned by the City of New Orleans. Terry 'Songy, an ex-Johnson
"Controls employee who served as Project Manager on the contracts with the City,
was also Warned in the indictment and charged with tax evasion and conspiracy to
.commit mail fraud .against 7ahnson Controls and the-City of New Orleans. Mr.
Songy cooperated with the U:S. Attorney's office as part of>a plea arrangement,
and 7ohnson Controls terminated his employment°when.his involvement in the
scheme came to light, Johnson Controls did not pay for his defense costs.
~~~
Johnson J~~t~
Controls
In January .2007, .the :federal .case against the major defendants .ended. when the
defendants entered guilty pleas.. Throughout the 'investigation, .Johnson
Controls was identified in the Government's indictments and court .filings
as a victim of fraud,. and was asked by the federai,pxobation department to
submit a victim statement for'the court's consideration. Johnson Controls is
currently seeking restitution in this case for the :amounts that Johnson ,Controls
was defrauded as a result of the actions ofthe defendants.
Pontiac. Michigan School District
In 2006, after completion of a competitive RFP process in which several ESCOs
participated, Johnson Controls was awarded an $18 million performance
contract'to provide a number of improvement measures for Pontiac School
District facilities. In December 2007, as part of the project completion process,
the District notified Johnson Controls of several performance failures. Since
that time, Johnson Controls has been working diligently and cooperatively with
the District to remedy all performance issues under the contract, and to finalize
the project. 3ohnson Controls believes that this process will conclude in the
eery near term to the satisfaction of both parties.
Contraryto the assertions made in the anonymous package, as well some
misreporting in local press accounts, Johnson Controls as not aware of any
federal investigation relatedto this contract, nor has t'been contacted by the
Federal Bureau of Investigation or anyother law enforcement agency in
connection with its work for'the School District. Johnson Controls believes that
it and ail of its employees acted in a legal and ethical manner with respect to this
.contract, and that any investigation, should one occur,. will bear that out,
Iraq Qi1 for Food Program
Following allegations in a UN. Qil•For-Food Inquiry Report that, prior to
Johnson Controls' acquisition ofYork International Corporation, two York
subsidiaries had made improper payments to Iraqi government officials, Yark
and Johnson Controls jointly undertookto investigate the allegations and offered.
the companies' cooperation to .the Department of justice {DOJ) and Securities
Exchange-Commission {SEC). At no point was Johnson Controls, Inc. a
subject of the investigation.
After completing the York acquisition, Johnson Controls continued the internal
inquiry and expanded its scope to include other aspects of York's Middle East
operations, including a.review_of Yark's use ofagents, consultants and other
third porkies, and York's compliance with other potentially applicable trade"laws.
Johnson Controls atso_reviewed certain ofYork's sales,practices in selected
Asian markets.
.After completion of this factual inquiry, and without admitting or denying any
..allegations, York entered into a deferred prosecution agreement with the DOJ
and a consent agreement with -the SEC resolving the foregoing .matters. The
settlements included $22 million in fines and interest, the disgorgement of past
profits on various overseas contracts, and the. appointment of an independent
Johnson ~~~j~~~
Controls
consul#antto monitor York's compliance with all relevant laws, The
investigation did not reveal any personal misconduct by senior York
aff"icials. In reaching these settlements, the DOJ and SEC acknowledged
that York promptty undertook remedial action, self: reported the matters in
question, voluntarily cooperated with,the SEC and the DOJ in the course of
the investigations, and,agreed to implement enhanced compliance policies
and procedures.
Throughout Johnson Controls' 123 year history, our commitment to ethics has
been paramount and one of the cornerstones of our success. The foundation, values, anti
responsibilities of our company are set forth in our Ethics Policy, a copy of which is
enclosed with this letter. We annually conduct an ethics-training and certification effort.
Copies of our Ethics..Policy are distributed to all employeesworldwde and designated
employees are required to certifythat they've read and understand the policy. The
expectations set forth in our Ethics Policy define the behaviors we strive to exhibit in our
daily lives; behaviors rooted in honesty, dignity, .fairness, and respect.
If there is additional information you require with respect to the matters.. addressed
in this letter, we will, provide it as expeditiously as possible. If you would like `to discuss
any of these matters in mare detail, .members of our regional and A~tlwaukee-based
.management team would be pleased to meet with. you at your convenience.
Sincerely,
~r
a A. Biasotta
Vice President & :General"Manager -
'Solutions'North America
cc: Kristy Elmore
:Regional Solutions Manager
Enclosure