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R2007-070 2007-05-14 RESOLUTION NO. R2007-70 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING A PERFORMANCE CONTRACT WITH SIEMENS BUILDING TECHNOLOGIES, INC. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That certain performance contract for surveying services associated with the Magnolia Road Improvements, a copy of which is attached hereto as Exhibit "A" and made a part hereof for all purposes, is hereby authorized and approved. Section 2. That the City Manager or his designee is hereby authorized to execute and the City Secretary to attest a performance contract with Siemens Building Technologies, Inc. PASSED, APPROVED and ADOPTED this the 14th day of May, A.D., 2007. ~.".) f2~ TOM REID MAYOR ATTEST: APPROVED AS TO FORM: (Lit. aL DARRIN M. COKER CITY ATTORNEY R2007 -70 File No. 07 -0034 PERFORMANCE CONTRACTING AGREEMENT between and Siemens Building Technologies, Inc. . TABLE OF ARTICLES 1 . Agreeme~t 2. Glossary 3. General 4. Performance Guarantee 5. Work by SIEMENS 6. The CLIENT'S Responsibility 7. Changes and Delays 8. Compensation 9. Acceptance 10. Insurance and Allocation of Risk 11. Hazardous Material Provisions 12. Miscellaneous Provisions 13. Maintenance Services Technical Support Program Page 1 of 17 IIIIIIi PERFORMANCE CONTRACTING AGREEMENT Articles and Attachments This Agreement shall consist of this document which includes the following thirteen articles and indicated Exhibits ("Contract Documents") which are acknowledged by the CLIENT and SIEMENS and incorporated herein by this reference: Articles 1. Agreement 2. Glossary 3. General 4. Performance Guarantee 5. Work BY SIEMENS 6. The CLIENT'S Responsibility 7. Changes and Delays 8. Compensation 9. Acceptance 10. Insurance and Allocation of Risk 11. Hazardous Material Provisions 12. Miscellaneous Provisions 13. Maintenance Services Technical Support Program Exhibits Exhibit A Exhibit B Exhibit C Scope of Work and Services Payment Schedule(s) Performance Assurance This Agreement, when accepted in writing by an authorized representative of the CLIENT and by an authorized representative of SIEMENS, constitutes the entire, complete and exclusive agreement between the Parties. The above documents constitute the entire Agreement between the CLIENT and SIEMENS relative to the project scope as stated in Exhibit A and supersede all prior and contemporaneous negotiations, statements, representations, agreements, letters of intent, awards, or proposals, either written or oral relative to the same. This Agreement may be modified only by a written instrument signed by both Parties. COMPENSATIONITERMS OF PAYMENT: As full consideration for the performance of the Work and Services set forth in Exhibit A and for the Performance Assurance set forth in Exhibit C, the CLIENT shall pay to SIEMENS the Contract Sum in such manner as agreed in Exhibit B and in accordance with the payment terms and conditions established by the Contract Documents. Agreed for (Signature) by: Print Name and Title: n er 5-14-07 Agreed for S~ie e Building ~-hnOIOgies. Inc. (Signature) by: --= _ ~ L:George T. Burck, Jr. .. Di...cCOOl, Accounting Pnnt Name and Title: ~ & r"'~ 1:' ~ee -\:::>tlmpHanee (Signature) bY:..~ ':!t': Print Name and Title: Nae G. Bermudez Ac::~i~t~nt ~p("rpt::lry Page 3 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 A.P~.BV 1..1 -'TIAN N; DANZI PERFORMANCE CONTRACTING AGREEMENT Number:-6161 Article 1 AGREEMENT b This AGREEMENT, is made this I'" day of May, 2007 by and between Siemens Building Technologies, Inc., ("SIEMENS") and the party identified below as the CLIENT. The CLIENT: City of Pearland 3519 Liberty Drive Pearland, Texas 77581 DESIGNATED REPRESENTATIVE: Bill Eisen PHONE: 281-652-1662 FAX: 281-652-1679 Siemens Building Technologies, Inc. 1000 Deerfield Parkway Buffalo Grove, Illinois 60018 With offices at: 8850 Fallbrook Road Houston, TX 77064 DESIGNATED REPRESENTATIVE: Chad Nobles PHONE: 281-949-3000 FAX: 281-949-3100 For services in connection with the following project: Project City of Pearland Page 2 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT Article 2 Glossary The following terms shall, for all purposes of the Contract Documents comprising this Agreement, have the meanings stated herein, unless the context otherwise specifies or requires, or unless otherwise defined in the Contract Documents: "Acceptance" means the CLIENT has signed the Certificate of Substantial Completion. "Acceptance Date" means the date on which the CLIENT signs the Certificate of Substantial Completion. "Accumulated Realized Savings" means the sum of the actual savings achieved from the Effective Contract Date of this Agreement through the end of the current Annual Period, derived from the sum of the Measured & Verified Savings plus the Stipulated Savings. "Accumulated Guaranteed Savings" means the sum of the Guaranteed Measured & Verified Savings plus the Stipulated Savings from the Guarantee Date of the Agreement through the end of the current Annual Period. "Annual Guaranteed Savings" are the Measured & Verified Savings and the Stipulated Savings that occur in any Annual Period of the Guarantee Term. "Annual Period" means a twelve (12) month period beginning on the Guarantee Date or on any anniversary date thereof. "Baseline" means a period of time or multiple periods of time that have occurred prior to project commencement, which has been agreed upon and is set forth in Exhibit C. The energy usage, operating practices, and facility and equipment in place during such time period represents the basis against which all future energy and operating usage will be compared in order to determine the Accumulated Realized Savings. "BTU" a unit of thermal energy defined as a British Thermal Unit. "Certificate of Substantial Completion" means documentation executed by the CLIENT agreeing that the Work, or a designated portion of the Work, is Substantially Complete in accordance with the Agreement and such Work is accepted by the CLIENT. "CLIENT Representative" means the person identified to SIEMENS by the CLIENT as the person authorized to make decisions on behalf of the CLIENT as set forth in Section 6.1 (a) hereof. "Construction Period" means the period between the Effective Contract Date and the first day of the month following the Substantial Completion Date. "Construction Period Savings" means the actual accumulated Measured & Verified Savings plus the Stipulated Savings achieved from the Effective Contract Date of this Agreement until the Guarantee Date. "Contracted Baseline" means the future annual period or multiple annual periods post-FIM implementation agreed upon and stated in Exhibit C that define the energy usage, operating practices, and facility and equipment in place post-FIM implementation and represents the basis on which the Guaranteed Savings are calculated. "Deliverable" means a report or drawing specifically prepared for and deliverable to the CLIENT pursuant to the terms hereof. "Effective Contract Date" is the date appearing at the top of this contract, unless specifically indicated otherwise. "Energy Conservation Measure" or "ECM" means the equipment, devices, materials and/or software as installed by SIEMENS at the Facilities, or as repaired or replaced by the CLIENT hereunder, for the purpose of improving the efficiency of utility consumption. Page 4 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT "Equipment" means the installed products to be provided by SIEMENS as described in the Scope of Work and Services, Exhibit A. "Escalation Factor" means an annual escalation percentage to be applied to the previous year's Energy Savings, Operational Savings and Technical Support Program, beginning and occurring on dates outlined in Performance Assurance, Exhibit C. "Facility" or "Facilities" means the building(s) or structure(s) where Work will be installed or implemented. It shall have the same meaning as the term "Site". "Facility Improvement Measures" or "FIMs" means the methods, techniques, application of know-how, installation of devices or otherwise, described in the Scope of Work and Services, Exhibit A, that are undertaken by SIEMENS as a result of this Agreement with the intent of generating net savings or efficiencies at or in connection with the operation of the Facilities, including without limitation the ECMs, DIMs, TIMs, USMs, WCMs, SCMs and any other, non-conservation-related activities, means or methods. "Guarantee Date" means the date on which the CLIENT executes the final Certificate of Substantial Completion, thus indicating that the Construction Period is complete. "Guaranteed Measured & Verified Savings" means the Measured & Verified Savings guaranteed to be achieved as described in the Performance Assurance, Exhibit C. "Guaranteed Savings" means the amount of savings that this Agreement anticipates will be achieved at the Facilities defined in this Agreement, calculated as the aggregate of the Measured & Verified Savings and the Stipulated Savings amounts identified in the Performance Assurance, Exhibit C, but shall not exceed the aggregate of the Contract Sum; the Performance Assurance TSP Payments; and the CLIENT'S cost of financing the Work. "Instruments" means all reports, notes, calculations, data, drawings, estimates, specifications, manuals, documents, excluding Deliverables, all computer programs, codes and computerized materials prepared by or for SIEMENS are instruments of SIEMENS' work. "kW" and "kWh" means kilowatt and kilowatt hour, respectively. "Maintenance Services TSP" means the Services performed under a Technical Support Program as stated in the Scope of Work and Services, Exhibit A. "Material Change" means an event causing a 2.5% deviation in the Contracted Baseline. "Measured and Verified Savings" means those savings that can be measured and verified by the methodology as set forth in Performance Assurance, Exhibit C. "Operational Improvement Measure" or "OIM" means the programs, practices, methodologies, devices, materials and/or software as installed or instituted by SIEMENS at the Facilities, or as instituted by the CLIENT hereunder, for the purpose of improving the efficiency of operations activities, operational costs and/or operational results as described in the Scope of Work and Services Exhibit A. "Parties" means the CLIENT and SIEMENS. "Performance Assurance" is the process of ascertaining that the FIMs defined in Scope of Work and Services, Exhibit A, are performing at the guaranteed values that are defined in Performance Assurance, Exhibit C. "Performance Assurance TSP" means the Services performed to monitor and report the performance relative to the guarantees defined in Performance Assurance, Exhibit C. "Performance Guarantee" means the result of the Performance Assurance process as set forth in Exhibit C hereof. Page 5 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT "Performance Guarantee Period" means the entire period from the Guarantee Date of this Agreement until the termination or expiration of this Agreement as set forth herein. "Permitted Users" means the CLIENT, its employees and agents. "Realized Annual Savings" means the actual savings achieved by the CLIENT during an Annual Period, calculated as the sum of the Measured & Verified Savings plus the Stipulated Savings. "Savings Excess" means the Realized Annual Savings less the Annual Guaranteed Savings for the Annual Period. If the amount is zero or greater, the Guarantee Savings in Performance Assurance, Exhibit C, has been fulfilled. "Savings Shortfall" means the Realized Annual Savings less the Annual Guaranteed Savings for the Annual Period. If the amount is less than zero the Guarantee Savings in Performance Assurance, Exhibit C, has not been fulfilled. "Services" means those services to be provided by SIEMENS as described in the Scope of Work and Services, Exhibit A and as described in Performance Assurance, Exhibit C. "Site" shall have the same meaning as Facilities. "Stipulated Savings" are the savings that have been mutually agreed upon and are stipulated to by SIEMENS and the CLIENT prior to or upon implementation of the FIMs. The Stipulated Savings cannot be changed unless agreed upon by the Parties or as set forth herein. The Stipulated Savings for each Annual Period, with the corresponding Escalation Factor if applicable, are set forth in Performance Assurance, Exhibit C. "Substantial Completion" or "Substantially Complete" means the first to occur of the following: (i) the Work, or any identifiable portion thereof, is sufficiently complete, in accordance with the provisions of this Agreement relating to the Scope of the Work and Services, Exhibit A, that the CLIENT will be able to realize from such Work substantially all of the practical benefits intended to be gained therefrom, or otherwise to employ the Work or the FIMs associated therewith for their intended purposes; or (ii) temporary, qualified or final certificates of occupancy, if required, have been issued with respect to such portions of the Work by the appropriate public authority. "Technical Support Program" or "TSP" is a plan detailing the tasks, material, and responsibilities provided by SIEMENS to the CLIENT during a specified time period defined in the Scope of Work and Services, Exhibit A, and/or described in the Performance Assurance, Exhibit C. "Term" is a stipulated period of time starting on the Effective Contract Date of this Agreement and ending at the termination or expiration of this Agreement as set forth herein. "Technology Improvement Measure" or "TIM" means the application of new technology methods, devices, materials and/or software as installed or instituted by SIEMENS at the Facilities for the purpose of improving the efficiency of operations activities, operational costs and/or utility costs as described in the Scope of Work and Services, Exhibit A. "Therm"is a measure of energy equal to 100,000 BTUs. "Total Guaranteed Savings" are the amount of savings identified to be achievable based on calculations and adjustments as set forth in Performance Assurance, Exhibit C. Total Guaranteed Savings includes all savings that SIEMENS has guaranteed for each Annual Period of the Term and may also include Construction Period Savings if specified in Performance Assurance, Exhibit C. "Utility Services Measure" or "USM" means the application of utility services methods and technology as described in the Scope of Work and Services, Exhibit A. "Work" means collective labor, equipment and services comprising the FIMs to be performed by SIEMENS as described in the Scope of Work and Services, Exhibit A. Page 6 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT "Water Conservation Measure" or "WCM" means the equipment, devices, materials, programs, practices, methodologies and/or software as installed or coordinated by SIEMENS at the Facility for the purpose of improving the efficiency of the Facility's water consumption, as described in Scope of Work and Services, Exhibit A. "Waste Conservation Measure" or "SCM" means the equipment, devices, materials, programs, practices, methodologies and/or software as installed or coordinated by SIEMENS at the Facility for the purpose of improving the efficiency of operations, activities, operational costs and/or operations results, as described in Scope of Work and Services, Exhibit A. Article 3 General 3.1 The CLIENT hereby engages and SIEMENS hereby accepts the engagement to perform and provide the Work and Services as set forth in Exhibit A hereof and in accordance with the terms and conditions of this Agreement. 3.2 SIEMENS shall perform the Work as an independent contractor with exclusive control of the manner and means of performing the Work in accordance with the requirements of this Agreement. SIEMENS has no authority to act or make any agreements or representations on behalf of the CLIENT. This Agreement is not intended, and shall not be construed to create, between the CLIENT and SIEMENS, the relationship of principal and agent, joint venturers, co-partners or any other such relationship, the existence of which is hereby expressly denied. No employee or agent of SIEMENS shall be, or shall be deemed to be, an employee or agent of the CLIENT. 3.3 SIEMENS represents, warrants and, where applicable, covenants to the CLIENT that: (a) It has all requisite corporate power and statutory authority to enter into this Agreement, and that its execution hereof has been duly authorized and does not and will not constitute a breach or violation of any of SIEMENS' organizational documents, any applicable laws or regulations, or any agreements with third parties; (b) It has done and will continue to do all things necessary to preserve and keep in full force and effect its existence and the Agreement; (c) This Agreement is the legal, valid and binding obligation of SIEMENS, in accordance with its terms, and all requirements have been met and procedures have been followed by SIEMENS to ensure the enforceability of the Agreement; (d) To SIEMENS' best knowledge, there is no pending or threatened, suit, action, litigation or proceeding against or affecting SIEMENS that affects the validity or enforceability of this Agreement; and, (e) It is duly authorized to do business in all locations where the Work and Service are to be performed. 3.4 The CLIENT represents, warrants and, where applicable, covenants to SIEMENS that: (a) It has all requisite corporate power and statutory authority to enter into this Agreement, and that its execution hereof has been duly authorized and does not and will not constitute a breach or violation of any of the CLIENT'S organizational documents, any applicable laws or regulations, or any agreements with third parties; (b) It has done and will continue to do all things necessary to preserve and keep in full force and effect its existence and the Agreement; (c) This Agreement is the legal, valid and binding obligation of the CLIENT, in accordance with its terms, and all requirements have been met and procedures have been followed by the CLIENT to ensure the enforceability of the Agreement; (d) To the CLIENT'S best knowledge, there is no pending or threatened, suit, action, litigation or proceeding against or affecting the CLIENT that affects the validity or enforceability of this Agreement; and, (e) A licensed engineer that is not a SIEMENS officer or employee or otherwise associated with SIEMENS has reviewed the projected energy cost savings. Article 4 Performance Guarantee 4.1 SIEMENS guarantees that the Guaranteed Savings generated from the Guarantee Date to the last date of the Performance Guarantee Period will be no less than the Total Guaranteed Savings shown in Performance Assurance, Exhibit C. The measurement and verification calculation methodology for determining the Measured & Verified Savings is set forth in Performance Assurance, Exhibit C. Page 7 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT 4.1.1 General. Except as otherwise provided, energy savings will be calculated for each month of each Annual Savings Period as the product of (a) "units of energy saved" (kWh, Therms, GJ, etc.) multiplied by (b) "cost of energy." (a) Units of energy saved are computed by a software application which is specified in Exhibit C. Units of energy saved are calculated by subtracting current period measured units of energy consumed from the adjusted Baseline units of energy defined in Article 5 of Exhibit C. Adjustments to the Baseline energy units are based on factors such as weather, occupancy, operating hours, etc., and changes to the Contracted Baseline conditions and operating practices as defined in Article 7 of Exhibit C. (b) Costs of energy are defined in Article 6 of Exhibit C, Utility Rate Structures and Escalation Rates. 4.2 Any future escalation factors applied to utility, energy or other costs which are to be applied are set forth in Exhibit C. SIEMENS and the CLIENT agree that the Baseline data which is set forth in Exhibit C is a full and accurate reflection of the existing Facility, equipment, operation, business use and energy usage, and that such Baseline data will be the basis on which all future energy use will be compared in order to determine both the Annual Realized Savings and the Accumulated Realized Savings. 4.3 SIEMENS and the CLIENT agree that the Contracted Baseline defined in Exhibit C will represent the new operating and/or equipment profile of the Facility resulting from the FIM implementation. The Performance Guarantee is dependent upon and is subject to the express condition that the CLIENT operates and maintains its Facilities in accordance with the terms of this Agreement. 4.4 The CLIENT agrees to notify SIEMENS prior to or within 30 days of any: (a) Material Change to operating schedules, strategies, equipment and conditions in the Facility from those described in the Contracted Baseline data. (b) Any other Material Changes in or at the Facility that may increase or decrease energy usage, including without limitation: changes in operations, business conducted, occupancy, hours of operation, and energy consuming equipment and malfunctions, failures and related changes in energy consuming equipment; and (c) Any damage to, or destruction of, the FIM Work that may result in a Material Change. 4.5 SIEMENS agrees to respond and advise the CLIENT within 30 days of the receipt of a notice of a Material Change that SIEMENS will: (a) Continue the Performance Assurance without adjustments; (b) Require an adjustment to the Performance Assurance as a result of the Material Change; or, (c) Where a commercially reasonable adjustment to the Performance Guarantee is unavailable, terminate the Performance Assurance and terminate the Performance Guarantee. 4.6 Failure of the CLIENT to notify SIEMENS of a Material Change shall void the Performance Guarantee and the Performance Assurance where a commercially reasonable adjustment is unavailable and where a Savings Shortfall cannot be prevented. 4.7 Performance Guarantee Period savings reconciliation as identified in Section 4.1 will be performed at the end of each annual period as follows unless otherwise agreed: (a) Within thirty (30) days of the Guarantee Date the Construction Savings shall be reconciled and added to the Accumulated Realized Savings; (b) At each annual reconciliation, the Realized Annual Savings shall be applied to the Accumulated Realized Savings. 1) Should the Accumulated Realized Savings be greater than the Accumulated Guaranteed Savings, a Savings Excess shall be recorded. 2) Should the Accumulated Realized Savings be less than the Accumulated Guaranteed Savings, a Savings Shortfall shall be recorded. (c) A Savings Shortfall shall be paid by SIEMENS within thirty (30) days following the CLIENT'S acceptance of the reconciliation and the amount paid shall be then added to calculate the Accumulated Realized Savings. On amounts not paid within 30 days of CLIENT'S acceptance of the reconciliation, to the extent that the law permits the CLIENT to pay interest on late payments to SIEMENS under Section 8.4, SIEMENS shall pay interest from invoiCe date until the Shortfall Payment is received at the lesser of 12% per annum or the maximum rate allowed bylaw. Page 8 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT (d) If SIEMENS can correct a shortfall through an operational improvement provided that there is no expense or material inconvenience to the CLIENT and without any future operational expenses, and the CLIENT declines to allow such operational improvement, then any future Savings Shortfall that the improvement would have corrected will be negated. The amount of such Savings Shortfall shall be added to calculate the Accumulated Realized Savings. 4.8 The Performance Guarantee is dependent upon and is subject to the express condition that the CLIENT enter into and maintain, during the entire term of the Performance Guarantee Period, the Performance Assurance TSP. If the CLIENT fails to enter into, breaches, cancels or otherwise causes the termination of the Performance Assurance TSP this Performance Guarantee shall terminate immediately and be void and of no force or effect. The services to be provided under the Performance Assurance TSP are defined in Exhibit A. 4.9 The payment amount and credits based on Savings Shortfalls, if any, are the sole remedy of the CLIENT for this Performance Guarantee. Any payments made or to be made to the CLIENT under the terms of this Performance Guarantee shall not exceed the payments actually made by CLIENT to SIEMENS for the aggregate of the Contract Sum; the Performance Assurance TSP Payments; and, the CLIENT'S cost of financing the Work. 4.10 The Performance Assurance TSP is the technical service to be provided by SIEMENS to the CLIENT during the Performance Guarantee Period, commencing on the Guarantee Date. Performance Assurance TSP is defined in the Glossary and described more fully in Exhibit A. (a) The CLIENT represents that all existing equipment (equipment that is not installed by SIEMENS under this Agreement) deemed necessary to achieve the Performance Guarantee is in satisfactory working condition. Prior to the beginning of the Guarantee Period SIEMENS will have inspected all such existing equipment and report any deficiencies to the CLIENT. (b) If the existing equipment or Equipment installed by SIEMENS is materially altered or moved by any person, including the CLIENT, other than SIEMENS or a person authorized by SIEMENS, the CLIENT shall promptly notify SIEMENS in writing, and SIEMENS reserves the right to perform a reacceptance test on, or if necessary a re-commissioning of, the system at the CLIENT'S expense. 4.11 SIEMENS will have no liability or obligation to continue providing Performance Assurance TSP Services or any Guaranteed Savings under the Performance Guarantee in the event that the CLIENT fails to: (a) Authorize a re-acceptance test or re-commissioning that SIEMENS reasonably deems necessary in order to prevent a Savings Shortfall; (b) Provide access to any Site where Work is to be performed as required by the Contract Documents; (c) Service and maintain all equipment involved with the FIMs defined in the Scope of Work and Services, Exhibit A, in accordance with the manufacturers' recommendations in order to prevent a Savings Shortfall; or, (d) Provide SIEMENS with accurate Facility operating information, including energy usage and cost, executed preventive maintenance and repair records, building or equipment additions, and occupancy levels during each Annual Period, as soon as such information becomes reasonably available to the CLIENT. 4.12 Should the CLIENT decide to discontinue the guarantee before the end of the contract period, 30 days notice will be given and the CLIENT will select one of the following: (a) SIEMENS will cancel the Performance Assurance TSP and the CLIENT will re-invest the avoided cost into building improvements and services that improve the overall building(s) performance which are implemented by SIEMENS. (b) SIEMENS will cancel the Performance Assurance TSP and the CLIENT will pay to SIEMENS 100% of the remaining value left in the TSP Annual Period. 4.13 Unless expressly contrary to law, any disputes concerning the calculation of the Realized Annual Savings, the Accumulated Realized Savings, or changes to the Contracted Baseline under this Performance Guarantee, that are not resolved by negotiation between the Parties within thirty (30) days of the notice of the dispute, may be resolved by a third-party professional engineering firm reasonably acceptable to both SIEMENS and the CLIENT. In such event, SIEMENS and the CLIENT will each be responsible for half of the fees of such firm. Page 9 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT Article 5 Work by SIEMENS 5.1 SIEMENS will perform the Work expressly described in this Agreement and in any work release documents or change orders that are issued under this Agreement and signed by both Parties. The Work performed by SIEMENS shall be conducted in a workmanlike manner. 5.2 SIEMENS shall perform the Work during its normal working hours, Monday through Friday inclusive, excluding holidays, unless otherwise agreed herein. The CLIENT shall make the Site available in order for Work to proceed in an efficient manner. 5.3 SIEMENS is not required to conduct safety, reacceptance or other tests, install new devices or equipment or make modifications to any Equipment beyond the Scope set forth in this Agreement. Any CLIENT request to change the Scope or the nature of the Work must be in the form of a mutually agreed upon change order, effective only when executed by the Parties. 5.4 All Deliverables shall become the CLIENT'S property upon full payment to SIEMENS. SIEMENS may retain file copies of such Deliverables. All Instruments shall remain SIEMENS' property. To the extent specified in Exhibit A, Permitted Users shall have a right to make and retain copies of Instruments except uncompiled code, and to use all Instruments, provided, however, that the Instruments shall not be used or relied upon by any parties other than Permitted Users, and such use shall be limited to the particular project and location for which the Instruments were provided. All Deliverables and Instruments provided to the CLIENT are for Permitted Users' use and only for the purposes disclosed to SIEMENS. The CLIENT shall not transfer any Deliverables or copies of Instruments to others or use them or permit them to be used for any extension of the Work or any other project or purpose, without SIEMENS' express written consent. Any reuse of Deliverables or Instruments for other projects or locations without the written consent of SIEMENS, or use other than by Permitted Users, will be at Permitted Users' and such other user's sole risk and without liability to SIEMENS; and, unless expressly prohibited by law, the Permitted Users, jointly and severally shall indemnify, defend and hold SIEMENS harmless from any claims, losses or damages arising from such unauthorized use. 5.5 SIEMENS shall be responsible for any portion of the Work performed by any subcontractor of SIEMENS. SIEMENS shall not have any responsibility, duty or authority to direct, supervise or oversee any contractor of the CLIENT or their work or to provide the means, methods or sequence of their work or to stop their work. SIEMENS' work and/or presence at the Site shall not relieve others of their responsibility to the CLIENT or to others. 5.6 SIEMENS warrants that: (a) Unless otherwise agreed, all Equipment shall be new and of good quality. Until one year from the date the Equipment is installed all Equipment manufactured by SIEMENS or bearing its nameplate will be free from defects in material and workmanship arising from normal use and service. (b) Labor for all Work, excluding TSP Services, is warranted to be free from defects in workmanship for one year after the Works are performed. TSP services are warranted to be free from defects in workmanship for ninety (90) days after the Services are performed. 5.7 Warranty Limitation: (a) The limited warranties set forth in Section 5.6 will be void as to, and shall not apply to, any Equipment (i) repaired, altered or improperly installed by any person other than SIEMENS or its authorized representative; (ii) subjected to unreasonable or improper use or storage, used beyond rated conditions, operated other than per SIEMENS' or the manufacturer's instructions, or otherwise subjected to improper maintenance, negligence or accident; (Hi) damaged because of any use of the Equipment after the CLIENT has, or should have, knowledge of any defect in the Equipment; or (iv) not manufactured, fabricated and assembled by SIEMENS or not bearing SIEMENS' nameplate. However, SIEMENS assigns to the CLIENT, without recourse, any and all assignable warranties available from any manufacturer, supplier, or subcontractor of such Equipment. (b) Any claim under the limited warranty granted above must be made in writing to SIEMENS within thirty (30) days after discovery of the claimed defect unless discovered directly by SIEMENS. Such limited warranty only extends to the CLIENT and not to any subsequent owner of the Equipment. Subject to the provisions of Section 12.4, the CLIENT'S remedy for any Equipment or Services not conforming with this limited warranty is, at SIEMENS' option: (i) repair or replacement of defective components of covered Equipment; (ii) re-performance of the Page 10 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT defective portion of the Services; or, (Hi) to the extent previously paid, the issuance of a credit or refund for the original purchase price of such defective component or portion of the Equipment or Services. (c) SIEMENS shall not be required to repair or replace more than the component(s) of the Equipment or the portion of the Work and Services actually found to be defective. SIEMENS' warranty liability shall not exceed the purchase price and installation cost of the replacement item. Repaired or replaced Equipment or Services will be warranted hereunder only for the remaining portion of the original warranty period. 5.8 THE EXPRESS LIMITED WARRANTIES PROVIDED ABOVE ARE IN LIEU OF AND EXCLUDE ALL OTHER WARRANTIES, STATUTORY, EXPRESS, OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WHICH ARE HEREBY EXPRESSLY DISCLAIMED. SIEMENS MAKES NO WARRANTY, EXPRESS OR IMPLIED, THAT ANY EQUIPMENT PROVIDED HEREUNDER WILL PREVENT ANY LOSS, OR WILL IN ALL CASES PROVIDE THE PROTECTION FOR WHICH IT IS INSTALLED OR INTENDED. THE LIMITED EXPRESS WARRANTIES AND REPRESENTATIONS SET FORTH IN THIS AGREEMENT MAY ONLY BE MODIFIED OR SUPPLEMENTED IN A WRITING EXECUTED BY A DULY AUTHORIZED SIGNATORY OF EACH PARTY. 5.9 SIEMENS will not be responsible for the maintenance, repair or replacement of, or Services necessitated by reason of: (a) Non-maintainable, non-replaceable or obsolete parts of the Equipment, including but not limited to: ductwork, shell and tubes, heat exchangers, coils, unit cabinets, casings, refractory material, electrical wiring, water and pneumatic piping, structural supports, cooling tower fill, slats and basins, etc. unless otherwise specifically stated herein; or (b) CLIENT, or a third-party's, negligence, abuse, misuse, improper or inadequate repairs or modifications, improper operation, lack of operator maintenance or skill, corrosion, erosion, improper or inadequate water treatment, electrolytic action, chemical action, failure to comply with manufacturer's operating and environmental requirements, Acts of God, or other reasons beyond SIEMENS' control. Unless expressly agreed in writing, SIEMENS is not responsible for the removal or reinstallation of replacement valves, dampers, or waterflow and tamper switches with respect to pipes and ductwork, including vent or drain system. SIEMENS ASSUMES NO RESPONSIBILITY FOR ANY SERVICE PERFORMED ON ANY EQUIPMENT OTHER THAN FOR THAT PERFORMED BY SIEMENS OR ITS AGENTS. Article 6 The CLIENT'S Responsibilities 6.1 The CLIENT, without cost to SIEMENS, shall: (a) Designate a contact person with authority to make decisions for the CLIENT regarding the Work and provide SIEMENS with information sufficient to contact such person in an emergency; (b) Coordinate the work of contractors under CLIENT'S sole control with the Work and Services so as not to disrupt the Work and Services proceeding in an efficient manner. (c) Provide or arrange for 24 hour, 7 day per week access and make all reasonable provisions for SIEMENS to enter any Site where Work is to be performed so that Work may proceed in an efficient manner; (d) Permit SIEMENS to control and/or operate all building controls, systems, apparatus, equipment and machinery necessary to perform the Work; (e) Furnish SIEMENS with blueprints, surveys, legal descriptions, waste management plans and all other available information pertinent to the Work and any Site where the Work is to be performed as may be reasonably requested by SIEMENS; (f) Furnish SIEMENS with all approvals, permits and consents from government authorities and others as may be required for performance of the Work, except for those SIEMENS has expressly agreed in writing to obtain; (g) In accordance with Article 11 hereof, notify SIEMENS promptly of all known or suspected Hazardous Materials at the Site, of any contamination of the Site by Oil or Hazardous Material, and of any other conditions requiring special care or which may reasonably be expected to affect the Work, and provide SIEMENS with any available documents describing the quantity, nature, location and extent of such materials, contamination or conditions; (h) Comply with all laws and provide any notices required to be given to any government authorities in connection with the Work, except such notices SIEMENS has expressly,agreed in writing to give; Page 11 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT (i) Provide SIEMENS with legally required materials and information (including but not limited to Material Safety Data Sheets) related to all Hazardous Materials located at any Site where the Work is to be performed; U) Furnish to SIEMENS any contingency plans, safety programs and other policies, plans or programs related to any Site where the Work is to be performed; (k) Operate, service and maintain, whether such service and maintenance is performed by SIEMENS or by a third- party under contract directly with the CLIENT, all Equipment according to the manufacturer's recommendations including those set forth in the manufacturer's operating manuals or instructions, as well as all requirements of applicable law or of authorities having jurisdiction. The CLIENT shall furnish all needed servicing and parts for said FIMs, which parts shall become part of the FIMs. Such Equipment shall be operated only in the specified operating environment, which shall be supplied by the CLIENT, including without limitation: (1) suitable electrical service, including clean, stable, properly conditioned power, to all Equipment; (2) telephone lines, capacity and connectivity as required by such Equipment; and (3) heat, light, air conditioning or other environmental controls, and other utilities in accordance with the specifications for the Equipment; (I) Promptly notify SIEMENS of any unusual or materially changed operating conditions, hours of usage, system malfunctions, installed equipment or building alterations that may affect the Equipment or energy usage or any Services; and (m) If applicable, provide and pay for a dedicated voice grade dial-up phone line, or a mutually agreed communication method, and install a terminal block, or an equivalent communication mechanism, in a mutually agreed upon location. All on-line service Equipment (excluding the phone line) will remain the property of SIEMENS unless otherwise stated herein. 6.2 Unless contrary to law, the CLIENT acknowledges that the technical and pricing information contained in this Agreement is confidential and proprietary to SIEMENS and agrees not to disclose it or otherwise make it available to others without SIEMENS' express written consent. 6.3 The CLIENT acknowledges that it is now and shall at all times remain in control of the project Site. Except as expressly provided herein, SIEMENS shall not be responsible for the adequacy of the health or safety programs or precautions related to the CLIENT'S activities or operations, the CLIENT'S other contractor, the work of any other person or entity, or Site conditions. SIEMENS shall not be responsible for inspecting, observing, reporting or correcting health or safety conditions or deficiencies of the CLIENT or others at the Site. So as not to discourage SIEMENS from voluntarily addressing health or safety issues while at the Site, in the event SIEMENS does address such issues by making observations, reports, suggestions or otherwise, the CLIENT shall not hold, or attempt to hold, SIEMENS liable or responsible on account thereof. Article 7 Changes and Delays 7.1 As the Work is performed, conditions may change or circumstances outside SIEMENS' reasonable control (including changes of law) may develop which would require SIEMENS to expend additional costs, effort or time to complete the Work, in which case SIEMENS will notify the CLIENT and an equitable adjustment will be made to SIEMENS' compensation and the time for performance. In the event conditions or circumstances require the Work to be suspended or terminated, SIEMENS shall be compensated for Work previously performed. 7.2 Either party may request additions, deletions, modifications or changes to the Work. Any such requests shall only become effective upon execution of a written agreement by authorized representatives of both parties. 7.3 SIEMENS may, in its sole discretion, substitute alternative parts, goods or equipment in the performance of the Work, provided that any such substitution shall be of an equal or better quality. 7.4 SIEMENS shall not be responsible for loss, delay, injury, damage or failure of performance that may be caused by circumstances beyond its control, including but not restricted to acts or omissions by the CLIENT or its employees, agents or contractors, Acts of God, war, civil commotion, acts or omissions of government authorities, fire, theft, corrosion, flood, water damage, lightning, freeze-ups, strikes, lockouts, differences with workmen, riots, explosions, quarantine restrictions, delays in transportation, or shortage of vehicles, fuel, labor or materials. In the event of such delay or failure, the time for performance shall be extended by a period equal to the time lost plus a reasonable recovery period. If any such delay exceeds sixty (60) days, SIEMENS may terminate this Agreement upon three (3) Page 12 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT days notice to the CLIENT and the CLIENT shall promptly pay SIEMENS for the allocable portion of the Work completed. Article 8 Compensation 8.1 Unless otherwise agreed in writing, SIEMENS shall be compensated for any extra work requested by the CLIENT at SIEMENS' then prevailing rates and shall be reimbursed for costs and expenses (plus reasonable profit and overhead) reasonably incurred in its performance of the Work or Services. The Contract Sum provides for, and is in consideration of, only the Work and Services specifically included under the Scope of Work and Services, Exhibit A. All other work or services, including but not limited to the following, shall be separately billed or surcharged on a time and materials basis: (a) Emergency services performed at the CLIENT'S request, if inspection does not reveal any deficiency covered by the. Scope of Work and Services, Exhibit A; (b) Work and/or services performed at the CLIENT'S request at times other than during SIEMENS normal working hours; and (c) Work and/or services performed on equipment not covered by the Scope of Work and Services, Exhibit A. 8.2 Unless otherwise agreed in writing, SIEMENS may invoice the CLIENT on a monthly or other progress-billing basis. Unless otherwise agreed in writing, invoices are due and payable upon receipt by the CLIENT. If the CLIENT disagrees with any portion of an invoice, it shall notify SIEMENS in writing of the amount in dispute and the reason for its disagreement within 21 days of receipt of the invoice, and shall pay the portion not in dispute. 8.3 SIEMENS, upon 30 days written notice, may suspend or terminate the Work or Services at any time if payment is not received when due and shall be entitled to compensation for the Work or Services previously performed and for costs reasonably incurred in connection with the suspension or termination up to and including the date of suspension or termination. 8.4 On amounts not paid within 30 days of invoice date, the CLIENT shall pay interest from invoice date until payment is received at the lesser of 12% per annum or the maximum rate allowed by law. 8.5 Except to the extent expressly agreed in writing, SIEMENS' fees do not include any taxes, excises, fees, duties or other govemment charges related to the Work or Services, and the CLIENT shall pay such amounts or reimburse SIEMENS for any amounts it pays. If the CLIENT claims that Work or Services is subject to a tax exemption or direct payment permit, it shall provide SIEMENS with a valid exemption certificate or permit. Article 9 Acceptance When SIEMENS reasonably believes that all, or an independent, definable phase or portion, of the Work is Substantially Complete, SIEMENS will submit a Certificate of Substantial or Final Completion to the CLIENT. If, in determination of the CLIENT, the described portion of the Work as performed is Substantially Complete as defined herein, the CLIENT will accept that Work by signing the Certificate of Substantial or Final Completion and returning it to SIEMENS. If, in determination of the CLIENT, the Work is not Substantially Complete, then the CLIENT Representative shall notify SIEMENS within five (5) business days of any discrepancies and SIEMENS shall correct the Work to conform to the description of the Work set forth herein and resubmit the Certificate of Substantial or Final Completion to the CLIENT if SIEMENS agrees with the notice of discrepancies or, if SIEMENS disagrees with the notice, notify the CLIENT of its disagreement and such disagreement shall be resolved under the terms of this Agreement. If the CLIENT Representative does not deliver written notice to SIEMENS within five (5) business days of receiving the Certificate of Substantial or Final Completion, the CLIENT will be deemed to have agreed to, signed and returned the Certificate of Substantial or Final Completion. Any disputes concerning the completion or Substantial Completion of the Work may be resolved by submitting the issue to a third party professional engineering firm acceptable to both SIEMENS and the CLIENT as non-binding mediation. In such event, SIEMENS and the CLIENT shall share equally the costs or fees for such firm in connection with such dispute resolution process. In the event of a dispute as to Certificate of Substantial Completion or Final Completion and unless otherwise determined through dispute resolution to be otherwise, the Guaranty Date shall be the date of SIEMENS' submission of the Certificate of Substantial or Final Completion which submission is the subject of the dispute. Page 13 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT Article 10 Insurance and Allocation of Risk 10.1 SIEMENS shall maintain, at SIEMENS' expense, the following insurances while performing the Work and shall add the CLIENT as an "Additional Insured" to each policy that is referenced in subsections (c) through and including (e) hereof: (a) Workers' Compensation at the statutory amounts and limits as prescribed by applicable law. (b) Employer's Liability insurance (and, where applicable, Stop Gap extended protection endorsement) limits of liability shall be: . $1,000,000 per occurrence . $1,000,000 Disease Policy . $1,000,000 Each Employee (c) SIEMENS shall carry, in the Occurrence Coverage Form, Comprehensive General Liability or Commercial General Liability, insurance covering SIEMENS' operations and providing insurance for bodily injury and property damage with limits of liability stated below and including coverage for: . Products and Completed Operations . Contractual Liability insuring the obligations assumed by SIEMENS in this Agreement . Broad Form Property Damage (including Completed Operations) . Explosion, Collapse and Underground Hazards . Personal Injury Liability: - Limits of liability shall be $1,000,000 per occurrence/aggregate (d) SIEMENS shall carry Automobile Liability Insurance in the Occurrence Coverage Form covering all owned, hired and non-owned automobiles and trucks used by or on behalf of SIEMENS providing insurance for bodily injury liability and property damage liability for the limits of: . $1,000,000 per occurrence/aggregate (e) SIEMENS shall carry Excess Liability Insurance in the Occurrence Coverage Form with limits of: . $5,000,000 per occurrence/aggregate 10.2 The CLIENT will maintain, at its own expense, property insurance in the amount of the initial Contract Sum, plus the value of subsequent modifications and cost of materials supplied or installed by others, on a replacement cost basis without optional deductibles. Such property insurance shall be maintained, unless otherwise provided in the Contract Documents or otherwise agreed in writing by SIEMENS, until final payment has been made to SIEMENS or no person or entity other then the CLIENT has an insurable interest in the property, whichever is later. The policy form shall include without limitation, insurance against the perils of fire (with extended coverage) and physical loss or damage including, without duplication of coverage, theft, vandalism, malicious mischief, collapse, earthquake, flood, windstorm, falsework, testing and start-up, rebuilding and debris removal including demolition occasioned by enforcement of any applicable legal requirements, and shall cover reasonable compensation for SIEMENS' services and expenses required as result of such insured loss. If the insurance requires deductibles or retentions, the CLIENT shall pay costs not covered because of such deductibles or retentions. 10.3 Risk of loss of materials and Equipment furnished by SIEMENS shall pass to the CLIENT upon their delivery to the Site, and the CLIENT shall be responsible for protecting and insuring them against theft and damage. However, until SIEMENS is paid in full, SIEMENS shall retain title for security purposes only and the right to repossess the materials and Equipment. 10.4 SIEMENS will indemnify the CLIENT from and against losses, claims, expenses and damages (including reasonable attorney's fees) for personal injury or physical damage to property (collectively "Damages"). Such indemnification shall be solely to the extent the Damages are caused by or arise directly from SIEMENS or its employees', consultants' or agents' negligent acts or omissions or willful misconduct in connection with SIEMENS' performance of the Work. SIEMENS' obligations under this indemnity shall not extend to Damages arising out of or in any way attributable to the negligence of the CLIENT or its agents, contractors or employees. SIEMENS reserves the right to control the defense and settlement of any claim for which SIEMENS has an obligation to indemnify hereunder. UNLESS CONTRARY TO APPLICABLE LAW, IN NO EVENT SHALL THE CLIENT OR SIEMENS BE LIABLE UNDER THIS INDEMNITY OR OTHERWISE UNDER THIS AGREEMENT FOR SPECIAL, INDIRECT, Page 14 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT INCIDENTAL, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES, INCLUDING COMMERCIAL LOSS, LOSS OF USE, OR LOST PROFITS, HOWEVER CAUSED, EVEN IF SIEMENS OR THE CLIENT HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND, IN ANY EVENT, UNLESS CONTRARY TO APPLICABLE LAW, SIEMENS' AGGREGATE LIABILITY FOR ANY AND ALL CLAIMS, LOSSES OR EXPENSES ARISING OUT OF THIS AGREEMENT, OR OUT OF ANY GOODS OR SERVICES FURNISHED UNDER THIS AGREEMENT, WHETHER BASED IN CONTRACT, NEGLIGENCE, STRICT LIABILITY, AGENCY, WARRANTY, TRESPASS, INDEMNITY OR ANY OTHER THEORY OF LIABILITY, SHALL BE LIMITED TO THE LESSER OF $1,500,000 OR THE TOTAL COMPENSATION RECEIVED BY SIEMENS FROM THE CLIENT UNDER THIS AGREEMENT. 10.5 As to Patents and Copyrights: (a) SIEMENS will, at its own expense, defend or at its option settle any suit or proceeding brought against the CLIENT in so far as it is based on an allegation that any Work (including parts thereof), or use thereof for its intended purpose, constitutes an infringement of any United States patent or copyright, if SIEMENS is promptly provided Notice and given authority, information, and assistance in a timely manner for the defense of said suit or proceeding. SIEMENS will pay the damages and costs awarded in any suit or proceeding so defended. SIEMENS will not be responsible for any settlement of such suit or proceeding made without its prior written consent. In case the Work, or any part thereof, as a result of any suit or proceeding so defended is held to constitute infringement or its use by the CLIENT is enjoined, SIEMENS will, at its option and its own expense, either: (I) procure for the CLIENT the right to continue using said Work; (ii) replace it with substantially equivalent non-infringing Work; or (iii) modify the Work so it becomes non-infringing. (b) SIEMENS will have no duty or obligation to the CLIENT under Section 10.5(a) to the extent that the Work is: (i) supplied according to the CLIENT'S design or instructions wherein compliance therewith has caused SIEMENS to deviate from its normal course of performance; (ii) modified by the CLIENT or its contractors after delivery; or, (iii) combined by the CLIENT or its contractors with items not furnished hereunder and by reason of said design, instruction, modification, or combination a suit is brought against the CLIENT. In addition, if by reason of such design, instruction, modification or combination, a suit or proceeding is brought against SIEMENS, unless expressly prohibited by law, the CLIENT shall protect SIEMENS in the same manner and to the same extent that SIEMENS has agreed to protect the CLIENT under the provisions of Section 10.5(a) above. (c) THIS SECTION 10.51S AN EXCLUSIVE STATEMENT OF ALL THE DUTIES OF THE PARTIES RELATING TO PATENTS AND COPYRIGHTS, AND DIRECT OR CONTRIBUTORY PATENT OR COPYRIGHT AND OF ALL THE REMEDIES OF THE CLIENT RELATING TO ANY CLAIMS, SUITS, OR PROCEEDINGS INVOLVING PATENTS AND COPYRIGHTS. Compliance with Section 10.5 as provided herein shall constitute fulfillment of all liabilities of the Parties under the Agreement with respect to the intellectual property indemnification. 10.6 The parties acknowledge that the price for which SIEMENS has agreed to perform the Work and obligations under this Agreement was calculated based upon the foregoing allocations of risk, and that each Party has expressly relied on and would not have entered into this Agreement but for such allocations of risk. Article 11 Hazardous Materials Provisions 11.1 The Work does not include dire9tly or indirectly performing or arranging for the detection, testing, handling, storage, removal, treatment, transportation, disposal, monitoring, abatement or remediation of any contamination of any Site at which Work is performed and any soil or groundwater at the Site by petroleum or petroleum products (collectively called "Oil"), asbestos, PCBs or hazardous, toxic, radioactive or infectious substances, including any substances regulated under RCRA, CERCLA or any other federal, state or local environmental laws, regulations, statutes, rules, standards or ordinances (collectively called "Hazardous Materials"), including without limitation: ionization smoke detectors, mercury bulb thermostats, used oil, contaminated filters, and contaminated absorbents. Except as expressly disclosed pursuant to Section 11.2, the CLIENT represents and warrants that there are no Hazardous Materials or Oil, present at the CLIENT'S locations where the Work is to be performed. SIEMENS will notify the CLIENT immediately if it discovers or reasonably suspects the presence of any previously undisclosed Oil or Hazardous Material. All Services have been priced and agreed to by SIEMENS in reliance on the CLIENT'S representations as set forth in this Article. The discovery or reasonable suspicion of Hazardous Materials or hazardous conditions at a Site where SIEMENS is to perform Work or of contamination of the Site by Oil or Page 15 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT Hazardous Materials not previously disclosed pursuant to Section 11.2 shall entitle SIEMENS to suspend the Work immediately, subject to mutual agreement of terms and conditions applicable to any further Work, or to terminate the Work and to be paid for Work previously performed. 11.2 The CLIENT warrants that, prior to the execution of the Agreement, it notified SIEMENS in writing of any and all Oil or Hazardous Materials present, potentially present or likely to become present at the Site and provided a copy of any Site safety policies and information, including but not limited to lock-out and tag procedures, chemical hygiene plan, material safety data sheets, and other items covered or required to be disclosed or maintained by federal, state, or local laws, regulations or ordinances. 11.3 Regardless of whether or not Oil or Hazardous Material was disclosed pursuant to Section 11.2, the CLIENT shall be solely responsible for properly testing, abating, encapsulating, removing, disposing, remedying or neutralizing such Oil or Hazardous Materials, and for the costs thereof. Even if an appropriate change order has been entered into pursuant to Section 11.1, SIEMENS shall have the right to stop the Work until the Site is free from Oil or Hazardous Materials. In such event, SIEMENS will receive an equitable extension of time to complete the Work, and compensation for delays caused by Oil or Hazardous Materials remediation. In no event shall SIEMENS be required or construed to take title, ownership or responsibility for such Oil or Hazardous Materials. The CLIENT shall sign any required waste manifests in conformance with all government regulations, listing the CLIENT as the generator of the waste. If someone other than the CLIENT is the generator of the waste, the CLIENT shall arrange for such other person to sign such manifests. 11.4 Except where expressly prohibited by law, for separate consideration of $10 and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, unless as a direct result of SIEMENS' negligence or willful misconduct, the CLIENT shall indemnify, defend and hold SIEMENS harmless from and against any damages, losses, costs, liabilities or expenses (including attorneys' fees) arising out of any Oil or Hazardous Materials or from the CLIENT'S breach of, or failure to perform its obligations under this Article. Article 12 Miscellaneous Provisions 12.1 Notices between the parties shall be in writing and shall be hand-delivered or sent by certified mail, express courier, or acknowledged telefax properly addressed to the appropriate party. Any such notice shall be deemed to have been received when delivered in-person or when sent by telefax, or five (5) business days subsequent to deposit in the U.S. mails, or one (1) day after deposit with express courier. 12.2 Neither the CLIENT nor SIEMENS shall assign or transfer any rights or obligations under this Agreement, except that either party may assign this Agreement to its affiliates and SIEMENS may use subcontractors in the performance of the Work. Nothing contained in this Agreement shall be construed to give any rights or benefits to anyone other than the CLIENT and SIEMENS without the express written consent of both parties. 12.3 This Agreement shall be governed by and construed in accordance with the laws of the state or commonwealth within which the Facilities are located. 12.4 It is not intended hereby to specify an exclusive remedy for any default, but all such other remedies existing at law or in equity may be availed of by either party and shall be cumulative subject to Section 10.4 and unless otherwise restricted herein. A party shall be deemed in default under this Agreement (which shall be deemed a breach hereunder) if such party fails to materially perform, observe or comply with any of its covenants, agreements or obligations hereunder or breaches or violates any of its representations contained in this Agreement. Upon a breach of this Agreement, the non-defaulting party, in any court of competent jurisdiction, by an action of proceeding at law or in equity, may be awarded damages for failure of performance, or both. Each of the Parties shall have the affirmative obligation to mitigate its damages in any event of a default by the other party. Furthermore, if any action is brought by either party under this Agreement by reason of any claim or cause of action against the other arising out of or in connection with any breach or other nonperformance of the provisions of this Agreement, then any party that is successful upon any final determination of any such claim or cause of action shall be entitled to reasonable preparation, investigation and attorney fees and court costs (including witness fees), as are fixed by a court of competent jurisdiction. 12.5 This Agreement and all provisions of this Agreement allocating responsibility or liability between the Parties shall survive the completion of the Work and the termination of this Agreement. Page 16 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 PERFORMANCE CONTRACTING AGREEMENT 12.6 SIEMENS' performance of the Work is expressly conditioned on the CLIENT assenting to all of the terms of this Agreement, notwithstanding any different or additional terms contained in any writing at any time submitted or to be submitted to SIEMENS by the CLIENT relating to the Work, even if signed by SIEMENS, unless SIEMENS signs a written statement expressly indicating that such terms supersede the terms of this Agreement 12.7 Any provision of this Agreement found to be invalid, unlawful or unenforceable by a court of law shall be ineffective to the extent of such invalidity, and deemed severed herefrom, without invalidating the remainder of this Agreement. All other provisions hereof shall remain in full force and effect. 12.8 The waiver by a party of any breach by the other party of any term, covenant or condition hereof shall not operate as a waiver of any subsequent breach hereof. No waiver shall operate or be effective unless made in writing and executed by the party to be bound thereby. 12.9 In the event that the law or the CLIENT requires that SIEMENS procure a performance bond and/or a payment bond, SIEMENS shall provide a performance and payment bond in the amount of $1,068,116. The performance and payment bond will solely apply to the Work performed during the Construction Period and to the required statutory lien filing period thereafter. The performance and payment bond will not apply to any of the obligations included in Performance Assurance, Exhibit C. Article 13 Maintenance Services Technical Support Program 13.1 The scope of services provided by SIEMENS for the Maintenance Services Technical Support Program (MSTSP) is stated in Exhibit A. 13.2 The CLIENT represents that all equipment not installed by SIEMENS under this Agreement and subject to a MSTSP is in satisfactory working condition. SIEMENS will have inspected all such equipment within the first thirty (30) days of MSTSP commencement or no later than the first scheduled inspection. Testing and inspection will not be deemed to be complete until all such equipment has been so tested and inspected. 13.3 If the equipment is altered or moved by any person, including the CLIENT, other than SIEMENS or a person authorized by SIEMENS, the CLIENT shall promptly notify SIEMENS in writing, and SIEMENS reserves the right to perform a reacceptance test on, or if necessary a re-commissioning of, the system at the CLIENT'S expense. 13.4 If SIEMENS reasonably determines as a result of such inspection and/or testing that any equipment requires repair or replacement, the CLIENT will be so notified and shall take corrective action within thirty (30) days, or such equipment shall be removed from coverage hereunder without further action by the parties. SIEMENS is not liable or responsible for the continued testing, maintenance, repair, replacement or operating capabilities of any portion of the equipment until it has been inspected and/or tested and has been, if necessary, restored to an acceptable initial condition at the CLIENT'S sole expense. Any services provided by SIEMENS in the course of such restoration will be separately charged, on a time and materials basis, and not included in fees paid hereunder. If individual items of equipment cannot, in SIEMENS' sole determination, be properly repaired or replaced due to age, obsolescence, lack of availability of refrigerant gas, halon gas, necessary parts, materials, compatibility or otherwise, or as a result of excessive wear or deterioration, SIEMENS may, within ten (10) days of such inspection, give written notice that it is withdrawing such items from coverage under the MSTSP and adjust the MSTSP Payments due hereunder accordingly. 13.5 If the removal of equipment from coverage would compromise or impair the integrity of the Work, Services or compliance with law of any system, then SIEMENS will provide a written statement thereof for execution by the CLIENT. The CLIENT'S failure to execute such statement within ten (10) days will void the MSTSP and release SIEMENS from any further obligations with respect to the MSTSP. 13.6 If the MSTSP scope of Services defined in this Agreement provides for equipment maintenance, repairs and/or replacements of equipment by SIEMENS, those Services are limited to restoring the proper working condition of such equipment. SIEMENS will not be obligated to provide replacement equipment that represents significant capital improvement compared to the original. Exchanged components become the property of SIEMENS, except Hazardous Materials, which under all circumstances remain the property and responsibility of the CLIENT. Page 17 of 17 Siemens Building Technologies, Inc. Agreement Articles PCA-100 PUBLIC custom version 01/01/06 Exhibit A - Scope of Work and Services Article 1: Scope of FIM Work 1.1 Description: Except as otherwise expressly provided herein, SIEMENS shall provide each and every item of cost and expense necessary for: 1.1.1 Cooling Equipment efficiency upgrades: This ECRM involves replacing low efficiency older equipment with new high efficiency cooling equipment. The installation of latest technology equipment ensures high efficiency performance and reliability. The replacement of cooling equipment applies to chillers and unitary cooling equipment. 1.1.2 Boiler Replacement: The replacement of older boilers with high efficiency units provides energy savings. With high cost of natural gas, utilization of efficient boilers is essential to maximize energy efficiency and cost savings. The heating system will also be configured such that the boiler will only operate when necessary. 1.1.3 Energy Management Control Systems (EMCS): Siemens proposes to install energy management control systems in select facilities. These systems provide automatic control of the energy consuming HVAC equipment. The EMCS will continuously monitor operating conditions and continuously make adjustment to minimize excessive energy usage. Furthermore, by operating the HV AC systems during only necessary times, equipment run time is minimized thus maximizing the useful service life of the connected equipment. 1 .1.4 Lighting Retrofits: The lighting upgrades applied throughout the buildings include many different types of fixtures and lamps. The bulk of lighting energy savings and the majority of the retrofits involve replacing 34 and 40-watt T -12 four- foot fluorescent lamps and magnetic ballasts with 30-watt T -8 four-foot fluorescent lamps and electronic ballasts. Also included in the project is the installation of occupancy sensors. These energy saving devices automatically turn lights on and off based on occupancy. These sensors will be installed in selected areas as listed in the lighting audit. See Appendix D of the Energy Assessment Report. 1.1.5 Water Conservation: Water conservation has been evaluated in all the existing facilities. Water is conserved by retrofitting and or replacing select water devices. These are the installation of low flow aerators on faucets, and low flow flush valves on urinals and toilets. In some instances, the complete toilet bowl is replaced to ensure optimum performance. Although the project size and savings are relatively small, Siemens recommends this ECRM be incorporated with any changes or renovations on this project. 1.2 Specific Elements: The Work shall include the following: 1.2.1 Cooling Equipment Upgrades: An inventory of unitary AC equipment was taken during the survey of the facilities. Nameplate information not available was provided by City personnel. The equipment to be replaced is specified in Table 1.2.1 (below) All cooling units scheduled for replacement in this scope of work will be similarly-sized (or near identical capacity, depending on manufacturer's models) units. Siemens will install installing equipment that will increase the efficiency and Page 1 of 8 Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services reliability of the equipment, while reducing energy costs and prolonging the service life of the equipment. The following buildings have been included in this ECRM: 1.2.1.1 Tom Reid Library 1.2.1.2 Public Safety/Police Department 1.2.1.3 Emergency Medical Services (EMS) 1.2.1.4 Fleet Maintenance (Public Works) Table 1.2.1 Eauipment Replacements. Coolina Eauipment fE laDle 0 quipment to be Replaced location Equipment Type Unit Make Model Nurmer Serial Nurmer Number Community Center Cooling Unit chiller Carrier 30GB045610 S394579 Community Center Coolinq Unit chiller Carrier 30GB045610 S394571 City Hall Boiler boiler Aiax QWGH-1250 S 38804 Public Safety Coolinq Unit UP 4 BOP Co. Division of Carrier 10#5 Public Safety Cooling Unit SS 14 Trane TTD724B100BO F33216315 Public Safety Cooling Unit UP 10 BOP Co. Division of Carrier 585HJ036060 2385C39926 Public Safety Coolinq Unit UP 5 BOP Co. Division of Carrier 585JEW060100ABEG 4385C81349 Public Safety Cooling Unit UP 8 BOP Co. Division of Carrier 585JEW036060ABAF 3785C32734 Public Safety Cooling Unit UP 6 BOP Co. Division of Carrier 585JEW060100ABEG 3585C 18550 Public Safety Coolinq Unit UP 7 BOP Co. Division of Carrier 585JEW060100ABEG 3585C 18553 Public Works (Fleet rv'aint) Cooling Unit SS Goodman CK60-3C 9611029003 Ems Cooling Unit SS 3 Inter-Citv Products CA3048VHA1 L921132018 Ems Coolinq Unit SS 4 Rheem Ems Cooling Unit SS 5 Goodman CK60-1C 10425341 Ems Coolinq Unit SS 2 Rudd Ems Cooling Unit SS 1 York H2RC036S06G WOE5228886 Librarv Cooling Unit SS 4 York H2CA300A46D NAHrv'011092 Librarv Cooling Unit SS 5 York H2CA360A46D NDHrv'057133 Librarv Coolinq Unit SS 3 York H3CE240A46A NCHrv'033978 Librarv Cooling Unit SS York H4CE090A46C NFHrv'073014 Librarv Cooling Unit SS York H4CE090A46C NFHrv'073009 1 .2.2 Boiler Replacement: City Hall is provided heating by a single outdoor boiler. This boiler was installed during the original construction of the facility thus is nearing the end of its service life. Siemens proposes to install a new, similarly-sized high efficiency boiler that will increase the efficiency in producing heating water and minimize utility costs. In addition, replacement of the existing boiler will also increase the system reliability and add to the overall benefit of the facilities operation. The following building is included in this ECRM: 1.2.2.1 City Hall Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 2 of 8 Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services Table 1.2.2 Equipment Replacements, Boiler Type Unit Number OWGH-1250 S 38804 Make Model Number Serial Number Boiler boiler 1.2.3 Energy Management Control System: Siemens will install an EMCS system that will enables an operator to rapidly troubleshoot equipment and also limit local user controls, such as excessive run times on HVAC equipment and temperature setpoint extremes. The operator may also preprogram equipment to operate for irregularly scheduled activities. By maintaining precise control of equipment runtimes, the equipment is operated at its design conditions and equipment service life expectancy is maximized. A major benefit realized from an EMCS, will be the direct monitoring of the included facilities. Hot and cold calls can be detected and diagnosed from one location as well as more efficient deployment of City personnel. Siemens shall also implement controls on other facilities because of the use of multiple cooling units that are currently controlled by occupants. Facilities included in this ECRM are as follows: 1.2.3.1 City Hall 1.2.3.2 Community Center 1.2.3.3 Melvin Knapp Senior Center 1.2.3.4 Public Works Service Center 1.2.3.5 Westside Event Center 1.2.4 Lighting Retrofits: This measure involves retrofitting existing, inefficient lighting systems in several buildings located throughout City of Pearland with new energy efficient lighting equipment. The following facilities are included in the lighting retrofit scope for this project: 1.2.4.1 City Hall 1.2.4.2 Community Center 1.2.4.3 Public Safety / Police Department 1.2.4.4 Melvin Knapp Senior Center 1.2.4.5 Emergency Medical Services (EMS) 1.2.4.6 Animal Shelter Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 3 of 8 Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services 1.2.4.7 Neighborhood Center 1.2.4.8 Parks Office and Storage 1.2.4.9 Public Works Service Center 1.2.4.10 Public Works Fleet Maintenance Refer to Appendix D, Energy Assessment Report for City of Pearland for complete building/room listing of lighting retrofits. 1.2.5 Water Fixture Retrofit: Toilets, urinals and lavatories are assessed for low-flow upgrade opportunities. A detailed description of the findings and a synopsis on the technologies that will be involved in the renovations are included in Appendix E of the Energy Assessment Report. Aerators and urinal flush valves will be changed out. The flush valves, at a minimum, will be replaced on the toilets. Typically, the entire toilet fixture will be changed since many are not designed for a low volume flush. Please refer to Appendix E of this report for detailed information about water fixture flow capacities and usage data used in savings calculations. The following buildings are included in the scope of work for this ECRM: 1.2.5.1 City Hall 1.2.5.2 Community Center 1.2.5.3 Library 1.2.5.4 Public Safety / Police Department 1.2.5.5 Melvin Knapp Senior Center 1.2.5.6 Emergency Medical Services (EMS) 1.2.5.7 Animal Shelter 1.2.5.8 Neighborhood Center 1.2.5.9 Parks Office and Storage 1.2.5.10 Public Works Service Center 1.2.5.11 Public Works Fleet Maintenance 1.2.5.12 Fire Marshal 1.2.5.13 Independence Park 1.2.5.14 Pool at Independence Park 1.2.5.15 Pearland Recycling Center Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 4 of 8 Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services 1.3 Technical Specifications, Drawings, and Exhibits: The Work shall be performed in accordance with the following specifications, drawings and other attachments hereto, which are specifically incorporated herein and made part hereof: 1.3.1 Appendix A of the Energy Assessment Report (EAR) contains the technical specifications of the new Cooling Equipment included in the scope or work. 1.3.2 Appendix B of the EAR contains the technical specifications of the new Boiler included in the scope or work. 1.3.3 Appendix C of the EAR contains the technical specifications of the new Energy Management Control Systems (EMCS) included in the scope or work. 1.3.4 Appendix 0 of the EAR contains the technical specifications of the new Lighting systems/fixtures included in the scope or work. 1.3.5 Appendix E of the EAR contains the technical specifications of the new water conservation retrofits (fixtures) included in the scope or work. 1.3.6 Drawings will be submitted, as required, once notice to proceed has been executed and detailed construction project schedules developed. However, the majority of the equipment installed in this scope of work is direct removal and replacement of existing equipment and, therefore, the need for additional drawings and approvals is expected to be minimal. 1.4 CLIENT's Responsibility: 1.4.1 Construction Phase: 1.4.1.1 Provide for timely review of project schedules and submittals, typically a 5-day approval turn-around unless otherwise specified; 1.4.1.2 Provide access to buildings, with 10-day advance notice of work schedules, including coordination with building occupants and stakeholders, provide escorts as required in secure areas; 1.4.1.3 Provide for timely review and approval of completed work; 1.4.2 Post-implementation (Performance Period) 1.4.2.1 Provide copies of all monthly utility bills; 1.4.2.2 Provide notification of changes of occupancy and/or building usage for buildings included in the scope of work. Article 2: FIM Work Implementation Period 2.1 Commencement of Work: 2.1.1 SIEMENS shall commence the Work May 14, 2007, and shall perform the Work diligently and shall complete the Work no later than Siemens shall commence the Work 180 calendar days from the Effective Contract Date. Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 5 of 8 Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services 2.2 Milestones: Specific scheduling milestones and coordination requirements will be determined in conjunction with SIEMENS project manager, in consultation with the CLIENT's representatives. 2.2.1 A Project schedule, in MS Project@ format, will be provided by SIEMENS for review by the CLIENT within two weeks of the Effective Contract Date. Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 6 of 8 Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services Article 3: Scope of Performance Assurance Technical Support Program 3.1 Performance Assurance services shall be performed for the full 12-year term in accordance with the Measurement and Verification section of the EAR for City of Pearland and Exhibit C of this contract. 3.2 Siemens will provide, as a part of the Technical Support Program, and annual inspection and reporting of the ECRMs installed, included a reconciliation report documenting savings. 3.3 The annual reconciliation report will be provided within 45 calendar days of the annual anniversary of project acceptance. Article 4: Scope of Maintenance Services Technical Support Program 4.1 Siemens will perform the Mechanical Services scope in accordance with the Detailed Energy Assessment for the City of Pearland. Maintenance will include quarterly inspections and filter replacement, and annual preventative maintenance per the scope of work included in the aforementioned report. 4.2 Mechanical Services TSP will include HVAC equipment in the following CLIENT facilities: 4.2.1 Animal Shelter 4.2.2 Centennial Park 4.2.3 City Hall 4.2.4 Community Center 4.2.5 EMS House 4.2.6 EMS/Ambulance 4.2.7 Fire Marshall 4.2.8 Fire Station #1 4.2.9 Fire Station #4 4.2.10 Knapp Activity 4.2.11 Library 4.2.12 New Public Works 4.2.13 Old Public Works 4.2.14 Maintenance Office 4.2.15 Police Station 4.2.16 Recycling Center 4.2.17 Westside Community Center Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 7 of 8 Exhibit A version 10/01/02 Exhibit A - Scope of Work and Services This Exhibit is attached to and made a part of the Agreement between SIEMENS and the CLIENT. .1 CLIENT: V JJj....(;J.... SIEMENS: Signature: ~ ~ Signature: Printed Name: Bi 11 [i sen Printed Name: Title: Ci ty Manaqer DTitt'e: OO'\lcrnanc~ & Compliance Date: Mav 14, 2007 a e. f{ 2-"'/0-" N""~:f~~ TlTLENoe G. Bermudez Assistant Secretary DATE: ~~, -07 APpmV LE(;AL SERASTlAN N. f).\NZI(;ER Siemens Building Technologies, Inc. Exhibit A - Scope of Work and Services Page 8 of 8 Exhibit A version 10/01/02 Exhibit B - Payment Schedules Article 1: Payment for Scope of FIM Work 1.1 Price: As full consideration of the Work as described in Exhibit A, Article 1: Scope of FIM Work, the CLIENT shall pay to SIEMENS the Contract Sum of $ 1,068,116.00 (plus applicable taxes). 1.2 Escrow: The CLIENT has agreed to deposit the Contract Sum in an Escrow Account at a financial institution satisfactory to both the CLIENT and SIEMENS. All interest income and expenses to establish the Escrow Account shall be the complete responsibility of the CLIENT and the CLIENT will receive all interest earnings from the Escrow Account. SIEMENS will submit periodic invoices to the CLIENT based on the following Payment Schedule in Table 2.1 below. The CLIENT shall be responsible for submitting the necessary documentation to the Escrow Agent for timely withdraws from the Escrow Account. The funding of the Escrow Account in an amount equal to or greater than the Price stated in Article 1.1 above shall be a condition precedent to SIEMENS obligation to perform or to continue the performance of the Work. If the Escrow Account is not funded within 45 days from the execution of this Agreement, this Agreement shall be null and void. This 45 day funding period may be extended as mutually agreed upon in writing by both parties. In the event that the Agreement becomes null and void as described in this paragraph and CLIENT has authorized SIEMENS to proceed with Work, CLIENT shall be obligated to reimburse SIEMENS: (i) for the Work performed to date; or (ii) as specified in CLIENT's authorization to proceed with Work. 1.3 Timely Payments: The CLIENT agrees to pay Siemens per Table B.1 below. CLIENT agrees to pay all invoices submitted by SIEMENS per Agreement, Article 8. $213,623.20 $213,623.20 $106,811.60 $106,811.60 $213,623.20 $106,811.60 $106,811.60 Ma 2007 June 2007 Jul 2007 Au ust 2007 Se tember 2007 October 2007 November 2007 PROJECT TOTAL: $1,068,116.00 This Exhibit is attached to and made a part of the Agreement between SIEMENS and the CLIENT. . ---' SIEMENS: Signature: Printed Name: Title: , Date: Uovemance &, Comp!Jance Vi 2~l Or l CLIENT: Signature: Printed Name: Title: Date: 4Jh~ Bill Eisen City Manager May 14, 2001 .----. Siemens Building Technologies, Inc. Exhibit B - Payment Schedules Page 1 of 3 NAMF.~~ ~hibit B version 10/01/02 APPRO~Y LEGAL TITLE: Noe G. Bermudez / V DATE: ASSIstant ~ecretary SEBASTIAN N. IlANZIGER 1/4/(/,/ Exhibit B - Payment Schedules Article 2: Payment for Performance Assurance Technical Support Program (PATSP) 2.1 Price: As full consideration of the Services as described in Exhibit A, Article 3, the CLIENT shall pay to SIEMENS the Annual Contract Sum of $ 5765.00 (first year fee plus applicable taxes, escalated annually per table B.2). 2.2 Performance Assurance Services Term: The Term of the PATSP shall be 12 months and shall commence on Effective Guarantee Date. 2.3 Automatic Renewal: The PATSP shall automatically renew for successive Annual Periods beginning on the anniversary date of Effective Guarantee Date. Either party may amend the PATSP at the end of the initial term or at the end of a renewal term by giving the other party at least thirty (30) days prior written notice of such amendments. Each renewal shall be and remain subject to the terms and conditions of this Agreement. The Performance Guarantee is dependent upon and is subject to the express condition that the CLIENT enters into and maintains PATSP, during the entire term of the Performance Guarantee Period. 2.4 Termination: See Article 4.8 of the Agreement. November 2008 $ 5,765 November 2009 $ 5,938 November 2010 $ 6,116 November 2011 $ 6,299 November 2012 $ 6.488 November 2013 $ 6,683 November 2014 $ 6,883 November 2015 $ 7,090 November 2016 $ 7,303 November 2017 $ 7,522 November 2018 $ 7,747 November 2019 $ 7,980 This Exhibit is attached to and made a part of the Agreement between SIE CLIENT. CLIENT: Signature: Printed Name: Title: Date: Bill Eisen City Manager M;ty 14. ?nn7 SIEMENS: Signature: Printed Name: Title: , Date'Uovernance & Compliance . Cp(?-V./Ol NS and the L Page 2 of 3 Siemens Building Technologies, Inc. 4,_ t? Exhibit B - Payment Schedules NAME: ~ t! ~~ Exhibit B version 10/01/02 TITLE: Noe. G. Bermudez APPROr~. B LEGAL Assistant Secretary t:t..EJ DATE: ~/2f,./ tJ 7 SEBASTIAN N. DANZIGER Exhibit B - Payment Schedules Article 3: Payment for Maintenance Services Technical Support Program 2.4 3.1 Price: As full consideration of the Services as described in Exhibit A, Article 4: Scope of Maintenance Services, the CLIENT shall pay to SIEMENS the Annual Contract Sum of $ $31,752 (first year fee plus applicable taxes, escalated to the annual fee according to table B.3). 3.2 Maintenance Services Term: The initial or first Term of the Services shall commence on and shall have duration of 12 months. Each consecutive Term shall be an Annual Period of 12 months. 3.3 Automatic Renewal: The Maintenance Services Term shall automatically renew for successive Annual Periods beginning on the ending anniversary date of the initial or first Term as set forth in Article 2.2 above, and each Annual Period thereafter. Either party may terminate or amend the Maintenance Services Technical Support Program at the end of the initial term or at the end of a renewal term by giving the other party at least 30 days prior written notice of such amendments or intent not to renew. Each renewal shall be and remain subject to the terms and conditions of this Agreement. November 2008 $31,752.00 November 2009 $32,705.00 November 2010 $33,686.00 November 2011 $33,686.00 November 2012 $34,697.00 November 2013 $35,738.00 November 2014 $35,738.00 November 2015 $36,810.00 November 2016 $37,914.00 November 2017 $37,914.00 November 2018 $39,051.00 November 2019 $40,223.00 This Exhibit is attached to and made a part of the Agreement between SIEMENS and the CLIENT. J l c~::~~~~~: Rill Ei..o ' ::~~1~~ ~:~.' Title: C Title: f, g Date: i ty MaRager Date: Governance & ,Compliance May 14, 2907 6{1~/crl Page3of3 ~ Siemens Building Technologies, Inc. A... ..,./ Exhibit B - Payment Schedules NAI\IE:, 4/~ t:.7.. . hibit B version 10/01/02 Noe G Bermudez APPptJR E V LEGAL TITLE: . Assistant Secretary DATE: ~ - ~ {. - c) 7 SEBASTIAN N. DANZIGER Exhibit C - Performance Assurance Article 1: Summary of Articles and Total Guaranteed Savings The following Articles and Table are attached and made part of this Exhibit C: Article 1 Article 2 Article 3 Article 4 Article 5 Article 6 Article 7 Summary of Articles and Total Guaranteed Savings Guarantee Savings Types Guarantee Term Responsibilities of CLIENT Measurement and Verification Plan Baseline Data Utility Rate Structures and Escalation Rates Contracted Baseline Data Table 1.1 - Total Guaranteed Savinas (Units) Performance Electric Energy Electric Power Natural Gas No.2 Fuel Saved Oil Saved Period Saved (kWh) Saved (kW) (Therms) (Gallons) Year 1 1,109,720 0 32,637 N/A Year 2 1,109,720 0 32,637 N/A Year 3 1,109,720 0 32,637 N/A Year 4 1,109,720 0 32,637 N/A Year 5 1,109,720 0 32,637 N/A Year 6 1,109,720 0 32,637 N/A Year 7 1,109,720 0 32,637 N/A Year 8 1,109,720 0 32,637 N/A Year 9 1,109,720 0 32,637 N/A Year 10 1,109,720 0 32,637 N/A Year 11 1,109,720 0 32,637 N/A Year 12 1,109,720 0 32,637 N/A The above savings as reflected in Table 1.1 are guaranteed on an annual basis for the term of the contract, which is 12 years, and are subject to the terms found in Article 4 of the Agreement. Table 1.2 - Total Guaranteed Savings (as cost converted from units) Year Energy/Utility Operational Savings Total Savings Savinas Construction Year 1 $ 136,071 $ 4,020 $ 140,091 Year 2 $ 137,431 $ 4,141 $ 141,572 Year 3 $ 138,806 $ 4,265 $ 143,071 Year 4 $ 140,194 $ 4,393 $ 144,587 Year 5 $ 141,596 $ 4,525 $ 146,120 Year 6 $ 143,012 $ 4,660 $ 147,672 Year 7 $ 144,442 $ 4,800 $ 149,242 Year 8 $ 145,886 $ 4,944 $ 150,830 Year 9 $ 147,345 $ 5,092 $ 152,437 Year 10 $ 148,818 $ 5,245 $ 154,064 Year 11 $ 150,307 $ 5,403 $ 155,709 Year 12 $ 151,810 $ 5,565 $ 157,374 The above Cost savings as reflected in Table 1.2 represent the predicted dollar savings that can be extracted from the guaranteed energy savings in Table 1.1 when the energy savings are converted to a dollar figure based on the formulas herein. Table 1.2 is Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 1 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance provided to show the projected savings on an annual basis for the term of the contract, which is 12 years. Nothing herein should be construed as to guarantee the actual dollar savings as derived from the energy savings. Variables such as increases in energy rates may adversely affect the dollar savings that are realized by the CLIENT despite having realizing the energy savings as guaranteed by SIEMENS. SIEMENS GUARANTEES THE ENERGY SAVINGS WILL BE REALIZED. SIEMENS DOES NOT GUARANTEE THAT THE ENERGY SAVINGS WILL ACTUALLY EQUATE TO THE DOLLAR SET FORTH IN TABLE 1,2 AS SIEMENS CANNOT PREDICT FLUCTUATIONS IN UTILITY RATES. This Exhibit is attached to and made a part of the Agreement between SIEMENS and the CLIENT. CLIENT: Signature: Printed Name: Title: Date: ~K- Bill Eisen City Manaqer May 14. 2007 ~ SIEMENS: Signature: Printed Name: Title: , Date9oveman~ & <:;Omphance q 2-~f 01 "~K--:!1S T1TU:: Noe G. Bermudez Assistant ~ecretary 1);\'1'[: ~P(,(()7 LEGAL Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 2 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Article 2: Guaranteed Savings Types 2.1 Guarantee Types. There are four guarantee options to measure and verify savings: Option A - Measured Capacity, Option B - Measured Consumption, Option C - Main Meter Comparison, and Option D - Stipulated. a. Option A - Measured Capacity. This approach is intended for Facility Improvement Measures where a one-time measurement for specific equipment or systems instantaneous baseline energy use, and a one-time measurement for specific equipment or systems instantaneous post- implementation (Post) energy use can be measured. Baseline and Post energy consumption is calculated by multiplying the measured end use instantaneous capacity (Le. - kW, Gal/hr, BTU/hr) by stipulated hours of operation for each mode of operation (Le. - hours, week, month). The calculations for energy consumption will be defined in the Measurement and Verification article of this Exhibit C. The work sequence required for data collection, evaluation, and reporting will be defined in the Measurement and Verification article of this Exhibit A. b. Option B - Measured Consumption. This approach is intended for Facility Improvement Measures where continuous periodic measurements for specific equipment or systems baseline energy use, and continuous periodic measurements for that equipment or systems post-implementation (Post) energy use can be measured. The calculations for energy consumption will be defined in the Measurement and Verification article of this Exhibit C. Periodic inspections and consumption measurements of the equipment or systems will be necessary to verify the on-going efficient operation of the equipment and saving attainment. The predetermined schedule for data collection, evaluation, and reporting will be defined in the Performance Assurance Technical Support Program article of this Exhibit A. c. Option C - Main Meter Comparison. This approach is intended for measurements of the whole-facility or specific meter baseline energy use, and measurements of whole-facility or specific meter post-implementation (Post) energy use can be measured. The methodology to establish baseline and Post parameter identification, modeling approach and baseline or model adjustments will be defined in the Measurement and Verification article of this Exhibit C. Periodic inspections of baseline energy usage, operating practices, and facility and equipment, and meter measurements of the will be necessary t6 verify the on-going efficient operation of the equipment, systems, practices and facility, and saving attainment. The predetermined schedule for data collection, evaluation, and reporting will be defined in the Performance Assurance Technical Support Program article of this Exhibit A. Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 3 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance d. Option D - Stipulated. This approach is intended for Facility Improvement Measures where the end use capacity or operational efficiency; demand, energy consumption or power level; or manufacturer's measurements, industry standard efficiencies or operating hours are known in advance, and used in a calculation or analysis method that will stipulate the outcome. Both CLIENT and SIEMENS agree to the stipulated inputs and outcome(s) of the analysis methodology. Based on the established analytical methodology the savings stipulated will be achieved upon completion of the Facility Improvement Measures Work and that no further measurements or calculations will need to be performed. The methodology and calculations to establish savings value will be defined in the Measurement and Verification article of this Exhibit C. 2.2 Table 2.1 below summarizes the first year savings of the Total Guaranteed Savings (Article 1 , Tables 1.1 and 1.2) by Guarantee Type categories. Table 2.1 - Enerav and Operational Savinas Details by Guarantee Tvoe Enerav or Utilitv Savina $ Ooerational Savinas $ Guarantee Tvpe Options Guarantee Types A B C D B D FIM Measured Measured Main Meter Stipulated Total Measured Stipulated Total Capacity Consumpti Comparison [1] [2] on Controls $32,984 $30,205 $63,189 $1,020 $1,020 Chiller $23,205 $23,205 $ - Unitary $8,953 $8,953 $ - Boiler $2,370 $2,370 $ - Liahtina $36,738 $36,738 $3,000 $3,000 Water $1,617 $1,617 $- [1] Operational savings are detailed in Exhibit C, Article 4.5 [2] Operational savings identified by the CLIENT are detailed in Table 2.3. Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 4 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance 2.3 Table 2.2 identifies the source of Operational Savings defined by the CLIENT. These savings shall not be measured or monitored during the guarantee term. Neither the CLIENT nor SIEMENS will have any right to object to use of such amounts as the Stipulated Savings in the calculation of Annual Realized Savings. T bl 2 2 S fO f IS a e - ource 0 >era lona avmgs # of Annual First Year Periods Annual Savings Are Savings Account/'Vendor Descriotion Annual Cost $ Aoolied Allowed Light Replacement lamps and ballasts $3,000 12 yes EMCS Automatic control components $1,020 12 yes 2.4 2.5 CLIENT: Signature: Printed Name: Title: Date: ~ B111 Eisen City Manaqer May 14, 2007 L:L SIEMENS: Signature: ~' : Printed N~~:; ( g~~~f~r~~ :~:l~:~ Date: Governan~ & Sompliance C{ 2-~ dl APPR ANZIGER NMJf::.4..4i7--1- TITLE: Noe G. Bermudez Assistant Secretary DATE: 1~ . " rU1 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 5 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance Article 3: Guarantee Term Responsibilities of the CLIENT. This Article details the individual agreed to responsibilities of SIEMENS and the CLIENT, in connection with the management and administration of the Performance Guarantee. 3.1 The CLIENT will provide a representative at each city facility to coordinate work and provide required data described below. 3.2 The CLIENT will provide SIEMENS with accurate facility operating information as defined below and in the Contracted Baseline article of this Exhibit C during each Annual Period, as soon as such information becomes available to the CLIENT. (a) Annually provide monthly electrical billing information for all accounts (b) Annually provide monthly gas billing information for all account 3.3 CLIENT will provide SIEMENS with copies of utility bills within 30 days of receipt by CLIENT or provide access to utility vendor information. (a) Electrical billing records for all accounts downloaded electronically to CD or other acceptable electronic storage media type (b) Gas billing records for all accounts downloaded electronically to CD or other acceptable electronic storage media type 3.4 CLIENT will provide telephone/data remote access, through SIEMENS Insight@ software package or otherwise, as SIEMENS reasonably requests. All charges related to telephone/data line installation, activation and communication services are the responsibility of the CLIENT. 3.5 CLIENT will provide and coordinate utility meter upgrade for interface with SIEMENS metering and data collection. All charges related for these upgrades are the responsibility of the CLIENT Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 6 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Article 4: Measurement and Verification Plan The following information outlines are applicable for this contract: Article 4.1 Measurement and Verification (M&V) methods provided under this Article. Article 4.2 Option A - Measured Capacity Article 4.3 Option B - Measured Consumption Article 4.4 Option C - Main Meter Comparison Article 4.5 Option 0 - Stipulated 4.1 General Overview- (a) The purpose of the Measurement and Verification (M&V) article is to identify the methods, measurements, procedures and tools that will be used to verify the savings for each FIM. Savings were determined by comparing prior usage, consumption or efficiencies defined as the Baseline to the selected FIMs being implemented against the post FIM implementation usage, consumption or efficiencies. The Baseline usage, consumption or efficiencies is described in this Exhibit C, Article 5. The usage, consumption or efficiencies associated with the FIM implementation is defined as the Contracted Baseline, and are described in this Exhibit C, Article 7. (b) The actual guaranteed savings associated with this contract are outlined in this Exhibit C, Article 1 - Table 1.1 and Article 2 - Table 2.1 of this contract. 4.2 Option A - Measured Capacity 4.2.1 EMCS Description: This measure involves the installation of an Energy Management Control System (DOC Controls - Siemens Apogee) in various facilities. Essential to energy conservation and equipment service life is an energy management controls system (EMCS). For the larger energy consuming facilities, Siemens proposes the implementation of and EMCS system. This enables the operator to rapidly trouble shoot equipment and also limit local user controls such as excessive run times and temperature extremes. The operator may also preprogram equipment to operate for irregularly scheduled activities. By maintaining precise control of equipment runtimes, the equipment is operated at its design conditions and equipment service life expectancy is maximized. A major benefit realized from an EMCS, will be the direct monitoring of the included facilities. Hot and cold calls can be detected and diagnosed from one location as well as more efficient deployment of City personnel. The implementation of an EMCS will occur in the following facilities: Facilities included in this ECRM: ~ City Hall ~ Community Center Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 7 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance ~ Tom Reid Library ~ Melvin Knapp Senior Center ~ Public Works Service Center ~ Westside Event Center Equipment & Environmental Descriptions At City Hall there exist 2 relatively new chillers, 1 older boiler, 3 air handling units and ancillary HVAC equipment. The AHU motors were measured for current draw; 11.6 kW, 9.2 kWand 10 kW. These units are reported to operate continuously thus Siemens proposes to limit the operation of the AHUs through the implementation of the EMCS. Additionally, there are two 7.5 hp chilled water pumps and one 3 hp hot water pump. At the Community Center there are two 45 ton air cooled chillers, 1 new boiler, 8 air handling units and ancillary HVAC equipment. The AHU motors were measured for power draw; 2.7, 2.0, 3.8, 2.4, 0.3, 0.3 and 0.5 kW were measured respectively. The air compressor power rating is 1.5 hp. The Tom Reid Library is provided cooling by 5 unitary split systems. The system nominal cooling capacities are: 7.5, 7.5, 20, 25 and 30 tons. The respective measurements for each of the units are: 12.28 Amps, 12.3 Amps, 38.15 Amps, 28 and 30 kW respectively. The Melvin Knapp Senior Center provides space conditioning with 9 individual unitary systems. Each system operates independently and is controlled by an occupant adjustable thermostat. The units cooling capacity sizes are: 3.5, 2.5, 3.5, 3.5, 3.5, 1.5, 3.5, 5 and 5 tons for each of the nine units respectively. The Public Works Service Center is equipped with similar systems as those at Melvin Knapp. There are seven unitary split systems providing space conditioning and each is individually controlled by building occupants. Most of the units for this facility are in good to new conditions. The unit sizes are: 4.5 (estimated), 5 (estimated), 5, 3, 3.5, 3 and 5. The Westside Event Center is a new facility with new equipment. Of all the facilities presented in this report, it is the only facility that is equipped with heat pumps. These units' sizes are: 5, 5, 3.5, 5 and 2.5 tons of capacity. Additionally, a 6th separate unitary system is dedicated to providing 100% conditioned outside air. liKe the Public Works facility, there is no central control of these units. Equipment City Hall Controls will include start/stop capability of (3) multi-zone AHUs and (1) temp per floor. We will add controls to the new Boiler, HW pump, and 3-way bypass valve installed by the mechanical. Equipment includes: Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 8 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance · (3) Multi-zone AHUs (starUstop only) · (3) space temperature sensors for monitoring · (2) new Chillers · (2) CHW pumps · (1) Boiler with 3W bypass valve . (1) HW pump Siemens shall provide: · (1) New MEC control panel with Ethernet and FLN capability. This panel shall be connected to the Pearland Intranet (drop provided by owner) and shall have an embedded web server capable of communication over the Internet. · StarUstop control of (3) AHUs · (1) space temperature sensor for each floor of the building = 3 total · (8) Immersion temp sensors (Chiller 1 Sup/Ret, Chiller 2 Sup/Ret, CHW Common Sup/Ret, HW Sup/Ret) · (1) 3W Bypass valve for HW · (3) TECs for S/S of AHUs and temp monitoring on each floor Mechanical Contractor to provide: · Installation of (8) immersion-type well sensors in CHW and HW piping · Installation of new 3-way bypass valve in HW piping City Hall - DOC control of the multi-zone AHUs In addition to what is described above, Siemens shall provide: · Controls for (3) multi-zone AHUs · S/S/Status of AH U · Supply air temperature · Freeze detection/safety · New CHW valve · Controls for (22) zones · TEC for each zone · New electronic damper actuator · New HW reheat valve · Extend temperature sensor to location of existing thermostat and replace · Demolition of pneumatics includes capping and plugging in place Mechanical Contractor to provide: · Installation of (3) new AHU CHW valves · Installation of (22) new HW reheat valves Community Center Controls will include full control of (10) single-zone AHUs and the central plant. Chillers will be configured in a lead/lag sequence and will be staged according to building load. Equipment includes: · (10) Single Zone AHUs with CHW and HW · (2) Chillers · (2) CHW pumps · (1) Boiler Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 9 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance · (1) HW pump Siemens shall provide: · (1) New MEC control panel with Ethernet and FLN capability. This panel shall be connected to the Pearland Intranet (drop provided by owner) and shall have an embedded web server capable of communication over the Internet. · Controls for (10) single zone AHUs · TEC for each AHU · S/S/Status · New CHW and new HW valve · Drain pan float switch for safety · Each unit can have the ability to be overridden from its corresponding temperature sensor · S/S/Status control of chillers, boiler, and pumps · (8) Immersion temp sensors (Chiller 1 Sup/Ret, Chiller 2 Sup/Ret, CHW Common Sup/Ret, HW Sup/Ret) Mechanical Contractor to provide: · Installation of (8) immersion-type well sensors in CHW and HW piping · Installation of (20) valves for AHUs (CHW and HW) Library Controls will include the replacement of an existing Carrier DOC system. AHUs will be controlled to maintain space temperature and humidity. Equipment includes: · (5) AHUs with OX cooling and HW pre-heat · (1) Reznor De-Humidification Unit · (1) Boiler · (1) HW pump Siemens shall provide: · (1) New MEC control panel with Ethernet and FLN capability. This panel shall be connected to the Pearland Intranet (drop provided by owner) and shall have an embedded web server capable of communication over the Internet. · Controls for (5) OX AHUs · TEC for each AHU · S/S/Status · New HW valve · Supply Air Temperature · Space Temperature · Space Humidity · S/S/Status control of boiler, and pumps · (2) Immersion temp sensors (HW Sup/Ret) · Outside Air Temperature and Humidity Mechanical Contractor to provide: · Installation of (2) immersion-type well sensors in HW piping · Installation of (5) valves for AHUs (HW) Page 10 of 31 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Knapp Senior Center Controls will include the starting/stopping of (7) split-system units in accordance with owner designated occupancy schedules. Equipment includes: · (7) Split-system AHUs Siemens shall provide: · (1) New MEC control panel with Ethernet and FLN capability. This panel shall be connected to the Pearland Intranet (drop provided by owner) and shall have an embedded web server capable of communication over the Internet. · Controls for (7) Split-system AHUs · TEC for each AHU · S/S/Status · Supply Air Temperature · Space Temperature · Each unit can have the ability to be overridden from its corresponding temperature sensor City Service Center Controls will include the starting/stopping of (7) split-system units in accordance with owner designated occupancy schedules. Equipment includes: · (7) Split-system AHUs Siemens shall provide: · (1) new MEC control panel with Ethernet and FLN capability. This panel shall be connected to the Pearland Intranet (drop provided by owner) and shall have an embedded web server capable of communication over the Internet. · Controls for (7) Split-system AHUs · TEC for each AHU · S/S/Status · Supply Air Temperature · Space Temperature · Each unit can have the ability to be overridden from its corresponding temperature sensor Westside Community Center Controls will include the starting/stopping of (6) split-system units, including (1) pre-treat unit in accordance with owner designated occupancy schedules. Replace the existing Carrier system. Equipment includes: · (6) Split-system AHUs Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 11 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Siemens shall provide: · New MEC control panel with Ethernet and FLN capability. This panel shall be connected to the Pearland Intranet (drop provided by owner) and shall have an embedded web server capable of communication over the Internet. · Controls for (6) Split-system AHUs · TEC for each AHU · S/S/Status · Supply Air Temperature · Space Temperature · Each unit can have the ability to be overridden from its corresponding temperature sensor (with the exception of the pre-treat unit) Calculations For electric motors for pumps, fans and air compressors: Base Demand (kW) = measured power draw of equipment Post Demand (kW) = Base Demand Base Energy Consumption (kWh) = Base Demand x Base Annual Operating Hours Post Energy Consumption (kWh) = Post Demand x Post Annual Operating Hours Energy Savings = Base kWh - Post kWh For unitary split systems: Base kWh = hours in temperature bin (hrs) x unit efficiency (kW/ton) x estimated load (tons) Post kWh = hours in temperature bin during operating hours (hrs) x unit efficiency (kW/ton) x estimated load (tons) Energy Savings = Base kWh - Post kWh Measurement or Reference Tables Based on spot and or short term measurements. Location Equipment Unit# Make kW measured community center AHU 1 Carrier 2.7 com m unity center AHU 2 Carrier 1.96 community center AHU 3 Carrier 1.19 community center AHU 4 Carrier 3.77 community center AHU 5 Carrier 2.35 com m unity center AHU 6 0.34 community center AHU 7 0.28 community center AHU 8 0.5 City Hall AHU 1 Carrier 11.6 City Hall AHU 2 Carrier 9.2 City Hall AHU 3 Carrier 10 library AHU 0.60 library AHU 0.64 library AHU 1.30 library AHU 1.68 library AHU 2.32 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 12 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Responsibilitv for SIEMENS and CLIENT 1. Client is responsible for: a. Annual and routine maintenance on equipment and controls b. Providing Siemens with all functional changes to facility operations c. Operating Equipment within manufactures recommended parameters 2. Siemens is responsible for: a. Annual Visits to equipment b. Annual savings report to City of Pearland 4.3 Option B - Measured Consumption 4.3.1 Chiller Replacement Description: The Community Center is the only facility identified for chiller replacements. The cooling units are in poor condition and operating inefficiently. Siemens recommends replacing these units with high efficiency units thus reducing operating costs and increasing system reliability. ECRM Description for Chiller Replacement Cooling is provided by 2 identical Carrier air cooled chillers, each with 45 nominal tons of cooling capacity. The replacements of these units are to be Carrier brand with 45 nominal tons of cooling capacity and model number: 30RAN045---6-1 HX. The following building has been included in this ECRM: Y Community Center Baseline Conditions Community Center and City Hall share the same electrical meter (Siemens was not able to obtain bills for only City Hall) It is assumed that the Community will continue to be utilized. Post operating times for the cooling equipment was determined based on estimations for typical facilities and weather data from the Houston area. Since the units only operate when needed, the operating hours were conservatively set. Equipment & Environmental Descriptions Siemens evaluation of these units indicated rather inefficient operation. It was determined through logging of the chiller power consumption and chilled water production that these units are operating poorly and excessively. Both chillers were found to operate simultaneously for the entire logging period from 10/24/2006 through 11/9/2006. The chillers are identical in design and are have a nominal cool capacity of 45 tons each. Below is a summary of logged data. y CHWS range: 40.5 to 51.3 F y CHWR range: 45.7 to 55.1 F Y Average Delta T: 4.8 F y Outside Air Temperature: max 92.5, min 46.8, avg 70 F y Efficiency: max 1.71, min 1.14, avg 1.4 kW/ton Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 13 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance );- Tons: max 53.2, min 31.14, avg 43.33 Equipment Replacements of Equipment to be Replaced location Equipment Type Unit Make Model Nurrber Serial Number Number Community Center Coolino Unit chiller Carrier 30GB045610 S394579 Community Center Coo/in 0 Unit chiller Carrier 30GB045610 S394571 City Hall Boiler boiler Aiax OWGH-1250 S 38804 Public Safety Coolina Unit UP 4 BDP Co. Division of Carrier ID#5 Public Safety Coolina Unit SS 14 Trane TTD724B100BO F33216315 Public Safety Coolina Unit UP 10 BDP Co. Division of Carrier 585HJ036060 2385C39926 Public Safety Coolina Unit UP 5 BDP Co. Division of Carrier 585JEW060100ABEG 4385C81349 Public Safety Coolina Unit UP 8 BDP Co. Division of Carrier 585JEW036060ABAF 3785C32734 Public Safety Coolina Unit UP 6 BDP Co. Division of Carrier 585JEW060100ABEG 3585C18550 Public Safety Coolina Unit UP 7 BDP Co. Division of Carrier 585JEW060100ABEG 3585C18553 Public Works IFleet Main!) Coolina Unit SS Goodman CK60-3C 9611029003 Ems Coolina Unit SS 3 Inter-Citv Products CA3048VHA1 L921132018 Ems Coolina Unit SS 4 Rheem Ems Coolina Unit SS 5 Goodman CK60-1 C 10425341 Ems Coolina Unit SS 2 Rudd Ems Coolina Unit SS 1 York H2RC036S06G WOE5228886 Library Coolina Unit SS 4 York H2CA300A46D NAHfvD11092 Library Coolina Unit SS 5 York H2CA360A46D NDHfvD57133 Librarv Coolinq Unit SS 3 York H3CE240A46A NCHfvD33978 Library Coolina Unit SS York H4CE090A46C NFHfvD73014 Library Coolina Unit SS York H4CE090A46C NFHfvD73009 Calculations The methodology of determining existing equipment performance is by linear regression modeling based on recorded weather data and actual equipment power and net output. The facility's thermal cooling demand is defined, based on measured outside air temperature, chilled water flow, chilled water supply and return temperatures as: y = 0.4807x + 9.4946. Where y = tons of cooling as a function of outside air temperature. Combining the chiller output (tons) with the chiller power draw (kW) the following chiller performance is determined; existing chiller performance is defined as y = 0.0081 x + 0.8371, where y = kW per ton or chiller power draw (kW) per ton of cooling (12,000 Btu/hour) and "x" is the recorded outside air temperature. The savings calculations are performed using the measured equipment performance and historical weather data in the form of temperature bin analysis for the Houston area. Weather data was obtained from the United States Department of Energy. Savings are determined using a 15% reduction in power per cooling capability (kW/ton). The methodology of calculation is typical of energy calculations for mechanical cooling equipment. Energy savings are also attributed by control of the system thus limiting operating hours to only required periods. Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 14 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance Utilitv cost savinqs are calculated usinq the followinq formulas: Calculation of Energy Savings Base operating kW = efficiency (kW/ton) x load (tons) Base operating kWh = base operating power (kW) x base operating hours (hr) Post operating kW = efficiency (kW/ton) x load (tons) Post operating kWh = base operating power (kW) x base operating hours (hr) Savings kW = post kW - base kW Savings kWh = post kWh - base kWh Calculations Variables Index N/A Measurement or Reference Tables The chart below is the measured performance curve of the existing chillers. kW vs oat 1.80 1.70 1.60 1.50 1.40 c o ~ 1.30 "'" 1.20 1.10 1.00 y = 0.0081x + 0.8371 0.90 0.80 40 50 60 70 80 90 100 oat Responsibilitv for SIEMENS and CLIENT 1. Client is responsible for: a) Annual and routine maintenance on new equipment b) Providing Siemens with all functional changes to facility and equipment operation c) Operate equipment within manufacturers recommended parameters Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 15of31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance d) Descriptive log of maintenance performed 2. Siemens is responsible for: a) Continuous measurement and logging of installed equipment for the first year post project acceptance b) Annual visits to all equipment c) Performing savings calculations d) Providing an annual report of efficiency maintenance and savings Specifications on Measurement Tools Siemens will install and integrate a Veris OEM electric meter with the Siemens Apogee EMCS. Additionally, temperature sensors and a flow meter will be installed. The installation of this equipment will enable the continuous measurement of chiller performance and energy and demand usage. 4.4 Option D - Stipulated 4.4.1 Unitary Cooling Equipment Replacement Description Efficiency increase by replacing existing equipment with similar replacements. For complete list of equipment replacements, please reference section 7.2. Equipment Replacements iTable of Equipment to be Replaced location Equipment Type Unit Make Model Number Serial Number Number Community Center CoolinQ Unit chiller Carrier 30GB045610 S394579 Community Center CoolinQ Unit chiller Carrier 30GB045610 S394571 citY Hall Boiler boiler IAiax OWGH-1250 S 38804 Public Safety CoolinQ Unit UP 4 BDP Co. Division of Carrier ID#5 Public Safety Coolina Unit SS 14 Trane TTD724B100BO F33216315 Public Safety CoolinQ Unit UP 10 BDP Co. Division of Carrier 585HJ036060 2385C39926 Public Safety Coolina Unit UP 5 BDP Co. Division of Carrier 585JEW060100ABEG 4385C81349 Public Safety CoolinQ Unit UP 8 BDP Co. Division of Carrier 585JEW036060ABAF 3785C32734 Public Safety Coolina Unit UP 6 BDP Co. Division of Carrier 585JEW060100ABEG 3585C18550 Public Safety CoolinQ Unit UP 7 BDP Co. Division of Carrier 585JEW 0601 OOABE G 3585C18553 Public Works (Fleet Main!) CoolinQ Unit SS Goodman CK60-3C 9611029003 Ems CoolinQ Unit SS 3 Inter -City Products CA3048VHA 1 L921132018 Ems CoolinQ Unit SS 4 Rheem Ems Coolina Unit SS 5 Goodm an CK60-1C 10425341 Ems CoolinQ Unit SS 2 Rudd Ems CoolinQ Unit SS 1 York H2RC036S06G WOE5228886 Library CoolinQ Unit SS 4 York H2CA300M6D NAHrvD11092 Library Coolina Unit SS 5 York H2CA360M6D NDHrvD57133 Library CoolinQ Unit SS 3 York H3CE240M6A NCHrvD33978 Library CoolinQ Unit SS York H4CE090M6C NFHrvD73014 Library CoolinQ Unit SS York H4CE090M6C NFHrvD73009 UP: Unitary Packaged Unit SS: Unitary Split System Calculations Based on CalcSmart, a local utility provided calculation tool approved for calculation of savings for unitary cooling equipment efficiency improvements. Page 16 of 31 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Exhibit eversion 10/01/02 Exhibit C - Performance Assurance kWh""vings = Tons * (c . 1] baseline - d '1]post-installation) Where: kWhsavingS Calculated energy savings Tons the rated equipment cooling capacity at ARI standard conditions The energy coefficient from table A.1 0 in the Appendix for the appropriate climate zone, building type and baseline equipment type. c 1] baseline Efficiency of the baseline equipment (kW/Ton) d The energy coefficient from table A.1 0 in the Appendix for the appropriate climate zone, building type and retrofit equipment type. 1] post-installation = Rated efficiency of the installed equipment (kW/Ton) kWsavings = Tons * (0 '1]baseline - b '1]post-installation) Where: k Wsavings Calculated demand savings Tons the rated equipment cooling capacity at ARI standard conditions The demand coefficient from table A.1 0 in the Appendix for the appropriate climate zone, building type and baseline equipment type. o 1] baseline Efficiency of the baseline equipment (kW/Ton) b The demand coefficient from table A.1 0 in the Appendix for the appropriate climate zone, building type and retrofit equipment type. 1] post-installation Rated efficiency of the installed equipment (kW/Ton) Calculations Variables Index N/A Measurement or Reference Tables ASHRAE 90.1 Manufacturer's specification sheets. Efficiency to be the Integrated Part Load Value (IPL V). Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 17 of31 Exhibit eversion 10101/02 Exhibit C - Performance Assurance Responsibilitv for SIEMENS and CLIENT 1. Client is responsible for: a. Annual and routine maintenance on new equipment b. Providing Siemens with all functional changes to facility and equipment operation c. Operate equipment within manufacturers recommended parameters d. Log of maintenance performed on equipment 2. Siemens is responsible for: a. Annual visits to all equipment b. Performing savings calculations c. Providing an annual report of efficiency maintenance and savings 4.4.2 Lighting Efficiency Retrofit Description Increase lighting efficiency by retrofitting existing systems with modern technology lighting systems. This involves retrofitting existing, inefficient lighting systems in several buildings located throughout City of Pearland with new energy efficient lighting equipment such as electronic ballast and T-8 lamps. System Tvoe Retrofit Stratef!jl T -12 Fluorescents with Replace T-12 lamps with new efficient T-8lamps and Magnetic Ballasts instant start electronic ballast Incandescent screw base Where applicable, replace incandescent screw in type lamps lamps with compact fluorescent lamps Incandescent / Fluorescent Replace all exits with new LED exit signage. Exit signs Manual switches in select Replace with either automatic wall or ceiling mounted offices and areas occupancy sensors in combination with programmed start ballast* and T8 lamps. . Note: There is a slight delay from the time the fixture is supplied power and the lights turning on. This delay is approximately 1-2 seconds. However, to ensure design life expectancy from lamps as well as to validate manufactures warranty, programmed start ballast are to be used where occupancy sensors will be installed. Hours of operation are based on facility occupancy periods. Calculations The power consumption for each type of fixture is determined from the Table of Standard Fixture Wattages. This table is approved by the State Regulatory Agency, the Public Utility Commission of Texas (PUCT). This table is used to determine the installed and proposed retrofit fixture wattages based on fixture type. For all fixtures, the difference between the power draw values yields the kW savings per fixture. (Existing power draw - Post installation power draw) = kW savings per fixture Page 18 of 31 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Multiplying the power savings by the annual operating hours yields the energy (kWh) savings. (Existing power consumption - Post installation power consumption) x (annual operating hours) = kWh savings per fixture Reducing the power draw of fixtures contributes to a lowering internal heat gains, thus reducing the actual cooling load (tons). An additional 1 0% of the saved demand (kW) and 5% of the saved energy (kWh) are directly attributed by the reduction in cooling load and energy. Calculations Variables Index N/A Measurement or Reference Tables Table of Standard Wattages, approved by the Public Utility Commission of Texas (PUCT). Responsibility for SIEMENS and CLIENT 1. Client is responsible for a. Lamp, ballast and sensor replacements post project acceptance b. Notifying Siemens of any fixture, lamp and ballast failures c. Replacing inventory with compatible lamps, ballasts and fixtures 2. Siemens is responsible for: a. Annual visits to all equipment b. Annual report to City of Pearland 4.4.3 Water Fixture Retrofit Description Reduced potable water consumption by the implementation of low flow devices. Calculations Formulas: WaterBase (kgal) = # of fixtures x uses/year/fixture x min/use x gal/minbase (manufacturer specified) Natural GasBase (kcf) = WaterBase (kgal) x 62.32 Ib/ft3 / [7.48 gal1ft3 x 1 btu/lb] /1000 [btu/mbh] x (Ts [OF] - Ta [OF]) x heating system efficiency % WaterPost (kgal) = # of fixtures x uses/year/fixture x min/use x gal/minbase (manufacturer specified) Natural GasPost (kef) = WaterPost (kgal) x 62.32 Ib/ft3 / [7.48 gal/ft3 x 1 btu/lb] /1000 [btu/mbh] x (Ts rF] - Ta [OF]) x heating system efficiency % Where: Ts = average hoUcold temperature water Ta = average cold temperature water Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 19 of31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Calculations Variables Index N/A Measurement or Reference Tables Manufactures Data Specification Sheets Responsibilitv for SIEMENS and CLIENT 1. Client is responsible for a. Annual and routine maintenance on Siemens installed fixtures. b. Notifying Siemens of any malfunctions. c. Operate equipment within manufacturers recommended parameters. 2. Siemens is responsible for: a. Annual visits to all Siemens installed equipment b. Annual report to City of Pearland Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 20 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Article 5: Baseline Data 5.1 Table 5.1 outlines the utility consumption that occurred during this Baseline period. This Baseline facility utility consumption will be used as the reference that future years utility usage will be compared to in order to determination the Guaranteed Savings. Data available is provided below. . Table 5.1 - Baseline Utility Consumption Electrical G" Month Consumption (kWh) Demand Demand Power Factor Fuel peRF or "Total Cost ($) Consumption Cost ($) Metered (kW Charged Adjustment Cogsneratio (Mcf) orkVA) (kWor ($/kWh) n($IkWh) kVA) Jan-2005 5,840 24 32 0.00 $ 715 Feb--2005 5.120 30 32 0.00 $ 646 Mar-ZOOS 5,680 34 34 0.00 $ 710 Apr-ZOO5 8.840 36 36 0.00 $ 1,074 May-ZOOS 10,200 38 38 0.00 $ 1.220 Jun-2005 10,720 38 38 0.00 $ 1.272 Jul-2005 12,600 40 40 0.00 $ 1.469 Aug-2005 12,200 40 40 0.00 $ 1.453 Sep-ZooS 10.360 39 3. 0.00 $ 1,261 Oct-2004 8,240 36 36 0,00 $ 070 No.....2004 5.960 36 36 0,00 $ 745 Dee-2004 6.200 22 32 000 $ 750 Month Consumption (kWh) Demand Metered (kW orkVA) peRF or Cogeneratio: n($/kWh) Consumptio n (kgal) Cost ($) Jan-ZOO5 Feb-2005 Mar-200S Apr-2005 May-2ooS Jun-2005 JuI-ZOO5 Aug-2005 Sap-200S Ocl-2004 No.....2004 Dec-2004 5.562 4.760 5,234 5,921 8,189 8,914 9.613 9.365 8.041 6.692 5.326 5,675 21 21 22 24 24 24 24 24 24 24 24 24 0.00 0.00 0,00 0.00 0.00 0.00 0.00 0.00 0,00 0.00 0.00 0.00 650 570 621 725 .51 1,023 1.093 1,087 .52 772 637 672 Electricity First Choice Power 370 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 21 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance 'BIde. [): Tnm :m . . ..... I~:;;::~'ng .2004-10-13 :2005:00-15 ! .. Electrical Go> Water Month Consumption (kWh): Demand Demand PO'Mlr Factor Fuel peRF or *Total Cost ($) iConsumption Cost ($) Consumptio Cost ($) Metered (kW Charged Adjustment ' Cogeneratio (Mcf) n (kgal) orkVA) . (kWor ($/kWh) n($/kWh) kVA} Jan-20OS 41.760 154 181 0.00 $ 4,659 Feb-2005 45,312 155 181 0.00 $ 5.214 Mar-20OS 52.032 163 181 0.00 $ S,B87 Apr-20OS 62,018 201 201 0.00 $ 7.200 May-ZOOS 83,520 216 216 0,00 $ 9,417 Jun-2005 85,344 240 240 0.00 $ 9,716 Jul-2005 103.104 199 199 0.00 $ 11,285 Aug.-2ooS 86,496 195 195 0.00 $ 9,781 Sap-200S 74,208 ,95 195 0,00 $ 8,532 Oct.2Q04 76,608 208 208 0.00 $ 8.428 1'40....2004 55.680 178 181 0.00 $ 6.257 Dec-2004 54,624 148 181 0.00 $ 6,138 m :. ..... .... m. .m m...... ..m......... ...m .'mm... m ..mm m IElectricity :NalurafGas ~Water g;;~~:~; ~'.m.; I First Choice Power CenlerPoinl City of Peariand I City of ... ........ I 360 Rkin n ...... 3""'n"',,,, .i()04-10-i,m I :nd'ng . 2005:09-14 ... Electrical Go> Water Month Consumption (kWh) Demand Demand Power Factor Fuel PCRF or or olal Cost ($) Consumption Cost ($) Consumptio Cost ($) Meterecl(kW Charged Adjustment Cogeneratio (Mcf) n (kgal) orkVA) (kWor ($/kWh) n($IkWh) kVA} Jan-2005 47,232 8. 115 0.00 $ 5.159 Feb-200S 52.704 106 115 0.00 $ 5.713 Mar-200S 51.168 115 115 0.00 $ 5,564 Apr-200S 51.456 115 115 0.00 $ 5,728 May-200S 68,160 134 134 0.00 $ 7,485 Jun-200S 67,872 154 154 0.00 $ 7,554 Jul-2005 67,OOB 144 144 0.00 $ 7,419 Aug-2005 72,288 144 144 0.00 $ 7,944 Sep.2005 59,424 154 154 000 $ 6,829 Oct-2004 54,624 134 134 0.00 $ 5,968 No....2004 53,664 106 115 0.00 $ 5.609 Dec-2004 S2.6OB 96 115 0,00 $ 5,699 ........ Water .....m Electricity Natural Gas Como",,, First Choice Po'o't'Elr CenterPoint City of Pearland I City of ............ 360 RIrl,,~ In. '2004-1 0-,. . . .......... . ..2005:09-1'<; .... .mm .. Electrical Go> I Water Month Consumption (kWh) Demand r I Demand ~ PO.....-ef Factor Fuel PCRF or 'Total Cost ($) Consumption Cost ($) ~ Consumptio Cost ($) Metered (kW Charged Adjustment Cogeneratio (Mct) n (kgal) or kVA) (~~A~r: ($/kWh) n($IkWh) Jan-2005 164,180 509 509 0.00 $ 16,286 Feb-200S 167.424 509 SO. 0.00 $ 16,612 Mar-200S 174,336 509 509 0.00 $ 19.300 Apr-2005 163,966 447 447 0.00 $ 16,562 May-2005 212,928 472 472 0.00 $ 23,563 Jun-200S 192,768 472 472 0.00 $ 21,554 Jul-200S 196,032 472 472 0.00 $ 21,879 Aug-200S 213.504 484 484 0.00 $ 24.100 Sap-20OS 189.886 497 497 0.00 $ 21.763 Oct-2004 163,168 509 509 0.00 $ 20,141 No....2004 194.112 509 509 0.00 $ 21.271 Dec-2004 186.816 S09 509 000 $ 20,544 .... .m .... m mi Electricity Natural Gas Water .. . ' Name First Choice Power CenterPoint I City of Pearland / City of I 360 I Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 22 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance ..... Blde.ID ~;:;::~~in9 2004-10-14 .: 2005-0!l-15 J , Electrical Ga, Water Month Consumption (kWh) Demand Demand Power Faclor Fuel peRF or "Total Cost ($) Consumption Co,t ($) 'Coo,"mp", Cost ($) Metered (kW Charged Adjustment Cogeneralio (Mef) n (kgal) Of kVA) (kWor (S/kWh) n($/kWh) kVA) Jan-2005 23.472 62 100 0.00 $ 2.731 Feb.2ooS 23,616 62 100 0.00 $ 2.746 Mar-2ooS 20,400 72 100 0.00 $ 2,430 Apr-2005 18,000 72 100 0.00 $ 2,275 May-ZOOS 19.536 72 100 0.00 $ 2.428 Jun-200S 20.448 84 100 0.00 $ 2.539 Jul-ZOO5 23.664 66 100 0.00 $ 2,862 Aug-ZOO5 19,200 71 100 0.00 $ 2.440 Sap-200s 16,512 71 100 0.00 $ 2.063 Oct.2004 19.392 125 125 0.00 $ 2.425 Nov-2004 24.864 72 100 0.00 $ 2,874 0e<;-2004 26.544 65 100 0.00 $ 3.039 ............... .......... ............ .................... .... Electricity Natura! Gas Water : First Choice Power CenterPoint City of Pearland I City of 360 Bide [J. HAS :B.ainnin(] . 'nM.'()..'. i :..:.::::: i . ... Ending 2005-09.15 .. ... ..'. ... Electrical G" Water Month Consumption (kWh)-;- Demand - i- Demand Power Factor Fuel PCRF or *Total Cost ($) Consumption Cost ($) : Consumptlo Cost ($) Metered (kW Charged Adjustment Cogeneratio (Mcf) n (kgal) or kVA) (kWor ($lkWh) n($/kWh) kVA) Jan-2005 13.480 64 64 0.00 $ 1.61g Feb-2oo5 11.280 46 59 0.00 $ 1.375 Mar-2oo5 14,180 50 59 0.00 $ 1,666 Apr.2oo5 12,940 50 59 0.00 $ 1.601 May-2oo5 17,960 58 59 0.00 $ 2,115 Jun-2005 19.720 56 59 0.00 $ 2.290 Jul-2005 21,620 62 62 000 $ 2,496 Aug-2005 21,740 62 62 0.00 $ 2,550 Sep-200S 18,660 62 62 0,00 $ 2,237 Oct-1004 15,760 58 58 0,00 $ 1.820 No"..2oo4 12,540 52 52 0.00 $ 1.481 Dec-2004 14.720 74 74 000 $ 1,780 . .mmfmm + . .......... Electricity Natural Gas Water Com,,", Nam.. First Choice Power CenterPoint City of Pearland f City of Oomp,"v 360 'Bldn 0, ~;:;::~~ing ?11M.1 n.,. ?M"-nQ.." f.. : . m Electrical G" Water Month ConsumptIon (kWh) Demand I' Demand : PO\oY6l' Factor Fuel PCRF or *Total Cost ($) Consumption Cost ($) ! co;~~:~)tiO : Cost ($) Metered (kW Charged Adjustment Cogeneratio (Mcf) or kVA) (kWor ($/kWh) n($/kWh) kVA) Jan-200S 5,640 32 32 0.00 $ 711 Feb.2oo5 4,080 30 30 0.00 $ 545 Mar-2ooS 3,880 26 28 0.00 $ 517 Apr-200S 4.040 30 30 0,00 $ 576 May-200S 6,080 28 26 0.00 $ 774 Jun-200S 7,160 26 27 0.00 $ 677 Jul-2005 7.440 26 26 0.00 $ 912 Aug-200S 7,560 30 30 0.00 $ 949 Sep-2ooS 6,480 30 30 0.00 $ 837 Oct-2004 5.520 32 32 0.00 $ 696 No"..2004 3.800 26 26 0,00 $ 509 Dec-20Q4 6,640 34 34 0,00 $ 620 '.m. m. .m Electricity Natural Gas Water .i Comp,"v Name First Choice Power CenterPoint City of Peartand I City of 370 Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 23 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Fuel Cost ($) Adjustment ($/kWh) Jan-2005 0 0 0.00 $ 4 Fob.200S 0 0 0.00 $ 4 Mar-ZOOS 75.264 87 0,00 $ 8.027 Apr-2ooS 21.408 86 0.00 $ 2,839 May-200S 23.808 45 0.00 $ 2.785 Jun~2005 4,992 25 0,00 $ 816 Jul-2005 4,704 25 0.00 $ 786 Aug-20OS 5,280 25 0.00 $ 645 Sep-20OS 4.416 25 0,00 $ 786 Oct-2004 0 0 0.00 $ 4 No"..2004 0 0 0.00 $ 4 Dee-2004 0 0 0.00 $ 4 Natural Gas CenterPoint City of Pearland I City of OJ Month Jan.2005 Feb-2ooS Mar-2ooS Apr-2005 May-200S Jun-2005 Jul-2005 Aug-2005 Sep-20OS Oct-2004 No.....2004 Dee-ZOO4 16.512 19,872 22,560 17.760 24,000 30,816 16,992 30.240 23.040 11;1,584 21.504 13.248 86 8S 8S 88 86 87 86 87 87 86 87 87 Demand Charged (kWot kVA) 86 85 8S 68 88 87 86 87 87 86 87 87 Fuel Adjustment ($/kWn) peRF or Cogeneratio n($IkWh) 0,00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0,00 2.003 2.334 2.602 2,228 2,650 3.534 2,152 3.476 2,604 2.302 2,504 1,681 Natural Gas CenterPoint COMMUNI1Y CENTER - 3523 L1BER1Y Dr. GAS MMBtu 8/21/2006 $ 4,728.32 7/17/2006 $ 6,652.63 6/21/2006 $ 5,178.71 5/22/2006 $ 7,018.57 4/21/2006 $ 6,459.95 3/22/2006 $ 6,866.55 ~"W,=m-__~~..VA_A"~,'m_w_~ "m"^"~'~~''''''V''''~'''''=~''."''''~','m'~w,','__''m,',',...._.~..__= 11/1i/2006T$m 4,779.00 : 704 5.2 The operating practices during the Baseline period determine the utility consumption shown in Table 5.1. The following data of this article outline the operating characteristics that were in effect during the Baseline period. The Guaranteed Savings provided under this Agreement are based on the efficiencies gained by implementing the FIM Work and implementing specific configuration of operating practices defined as the Contracted Baseline in Article 7 ofthis Exhibit C. Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 24 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance Table 5.2.x Summer/Winter Operating Hours Day of Week On Peak Off Peak Run Hours Run Hours Monday Continuous/StandbY Tuesday Continuous/Standby 'Wednesday Continuous/Standby Thursday Continuous/Standby Friday Continuous/Standby Saturday Continuous/Standby Sunday Continuous/StandbY Holiday Continuous/Standby Table 5.2.x Summer/Winter Operating Temperatures Day of Week On Peak On Peak Off Peak Off Peak Minimum DEG Maximum DEG Minimum DEG Maximum DEG Monday N/A Tuesday Wednesday Thursday Friday Saturday Sunday Holiday Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 25 of 31 Exhibit C version 10/01/02 Exhibit C - Performance Assurance Table 5.2.x Equipment Summer/Winter Operating Parameters Day of Week On Peak On Peak Off Peak Off Peak Monday N/A Tuesday Wednesday Thursday Friday Saturday Sunday Holiday Table 5.2.x Occupancy Summer/Winter Day of Week Day Afternoon Night Monday N/A Tuesday Wednesday Thursday Friday Saturday Sunday Holiday 5.3 Applicable codes - Federal, State (Provincial), County or Municipal codes or regulations are applicable to the use and operation of the facility. SIEMENS will maintain the current level of facility compliance relative to applicable codes unless specifically outlined to the contrary below. 5.3.1 Current code compliance: a. b. 5.3.2 Code changes: 5.4 Building Inventory - The following information outlines the equipment inventory's th t . t. th f Tt d . th B r . d a eXls In e aCI I[Y unng e ase Ine peno Location Equipment ID Make Model # Serial # Size Community Chiller Carrier 30G8045610 8394579 45 tons Cntr. Community Chiller Carrier 3008045610 8394571 45 tons Cntr. Community Air Handling 1 Carrier Cntr. Unit Community Air Handling 2 Carrier Cntr. Unit Community Air Handling 3 Carrier Cntr. Unit Community Air Handling 4 Carrier Cntr. Unit Community Air Handling 5 Carrier Cntr. Unit Community Air Handling 6 Cntr. Unit Community Air Handling 7 Cntr. Unit Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 26 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Location Equipment 10 Make Model # Serial # Size Community Air Handling 8 Cntr. Unit 1,250,000 City Hall Boiler Ajax OWGH-1250 S 38804 Btu/hr Unitary BOP Co. Public Safety 4 Division of assumed = 10 #5 5 tons Package Carrier Pubiic Safety Unitary Split 14 Trane TTD724B100BO F33216315 2 tons Svstem Unitary BOP Co. Public Safety 10 Division of 585HJ036060 2385C39926 3 tons Package Carrier Unitary BOP Co. Public Safety 5 Division of 585JEW060100ABEG 4385C81349 5 tons Package Carrier Unitary BOP Co. Public Safety 8 Division of 585JEW036060ABAF 3785C32734 3 tons Package Carrier Unitary BOP Co. Public Safety 6 Division of 585JEW060100ABEG 3585C 18550 5 tons Package Carrier Unitary BOP Co. Public Safety 7 Division of 585JEW060100ABEG 3585C18553 5 tons Package Carrier Public Works Unitary Split Lennox HS 19-513-6Y 5895C 45324 4.5* ton Office Svstem Public Works Unitary Split Lennox HS19-653-6Y 5895A 48556 5* tons Office System Public Works Unitary Split Allegiance 2A7C0060A3000AA 6431U6F3F 5 tons Office Svstem Public Works Unitary Split International TCA436AKC4 E054611786 3 tons Office Svstem Comfort Public Works Unitary Split Trane TTB042D100AO Z262RCTBF 3.5 tons Office System Public Works Unitary Split Trane 2TTB2036A 1 OOOAA 30947NC3F 3 tons Office System Public Works Unitary Split International TCA060AKA 1 L0027 12662 5 tons Office Svstem Comfort Public Works Unitary Split Goodman CK60-3C 9611029003 5 tons (Fleet Maint) System EMS Unitary Split 3 Inter-City CA3048VHA 1 L921132018 4 tons System Products EMS Unitary Split 4 Rheem 3* tons Svstem EMS Unitary Split 5 Goodman CK60-1C 10425341 5 tons Svstem EMS Unitary Split 2 Rudd 4 * tons System EMS Unitary Split 1 York H2RC036S06G WOE5228886 3 tons System Melvin Knapp Unitary 1 Lennox GCS16-413-50-5Y 5691 L02883 3.5 tons Sr. Cn!. PackaQe Melvin Knapp Unitary Split 2 Lennox HS20-311-2P 5190L13492 2.5 tons Sr. Cn!. System Melvin Knapp Unitary 3 Lennox GCS 16-413-50-5Y 5691 L02878 3.5 tons Sr. Cn!. Packaae Melvin Knapp Unitary 4 Lennox GCS 16-413-50-5Y 5691 L02881 3.5 tons Sr. Cn!. Packaae Melvin Knapp Unitary 5 Lennox GCS16-413-50-5Y 5691 L02879 3.5 tons Sr. Cn!. Packaae Melvin Knapp Unitary Split 6 Lennox HS20-211-2P 5191J00352 1.5 tons Sr. Cn!. Svstem Melvin Knapp Unitary 7 Lennox GCS 16-413-50-5Y 5691 L02884 3.5 tons Sr. Cn!. PackaQe Melvin Knapp Unitary Split 8 Trane TT A060A300BO I 149228282 5 tons . , I Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 27 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Location Equipment 10 Make Model # Serial # Size Sr. Cn!. System Melvin Knapp Unitary Split 9 Rheem RAKA060CAS 4991 M37 5 tons Sr. Cn!. Svstem 9608269 Library Unitary Split 4 York H2CA300A46D NAHMO 11092 25 tons Svstem Library Unitary Split 5 York H2CA360A46D NDHM057133 30 tons Svstem Library Unitary Split 3 York H3CE240A46A NCHM033978 20 tons Svstem Library Unitary Split York H4CE090A46C NFHM073014 7.5 tons Svstem . Library Unitary Split York H4CE090A46C NFHM073009 7.5 tons Svstem Westside event Unitary Split center System Heat 1 Carrier 38BYC060340 5 tons Pumo Westside event Unitary Split center System Heat 2 Carrier 38BYC060340 4604E20612 5 tons Pump Westside event Unitary Split center System Heat 3 Ca rrier 38BYC042340 2004219871 3.5 tons Pump Westside event Unitary Split center System Heat 4 Carrier 38BYC060340 4404E21775 5 tons Pump Westside event Unitary Split center System Heat 5 Carrier 38BYC030350 (?) 2.5 tons Pumo Westside event Unitary Split MON Coil center System 6 Products CA1205 Outdoor Air 5.5 N/A 5.6 N/A Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 28 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Article 6: Utility Rate Structures and Escalation Rates 6.1 Utility costs used for savings calculations will be based on the utility rate in effect for the predominant bill or the utility rate in effect for the corresponding period of the Baseline period, whichever is greater. The rate in effect during the Baseline period will be designated the floor price, and is shown below for each utility. An escalation rate (noted below for each utility) per annual period will be applied to the floor rates. The escalated floor rate will be compared to the utility rate in effect in each future annual period and the greater of the two will be applied to the actual utility savings occurring in that annual period. Table 6.1.1 Electricity Tariff Number or Designation: Utility Name: Rate Structure: First Choice Power $0.101195 $ per kWh N/A $ per kW Rate Escalation: 1.0 % per Annual Period Table 6.1.2 Natural gas Tariff Number or Designation: Utility Name: Rate Structure: CenterPoint $0.679 $ per Therm Rate Escalation: 1.0% % per Annual Period Table 6.1.3 Water Tariff Number or Designation: Utility Name: Rate Structure: City of Pearland $1.46 $ per kgallon Rate Escalation: 1.0% % per Annual Period Table 6.1.4 Sewer Tariff Number or Designation: Utility Name: City of Pearland Rate Structure: 0 $ per kgallon Rate Escalation: o % per Annual Period 6.2 6.3 CLIENT: Signature: Printed Name: Title: Date: ~ Bill Eisen City Manager May 14, 2007 J SIEMENS: Signature: Printed Name: Title: Gffi!@rlumce &. Comrtia~('l' Date: ~ . !?f Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 29 of 31 N"".~ ;r'J~bit eversion 10101/02 fflj LEGAL TITLE: Noe G. Bermudez APPRO ~ Assistant secret':!}' DATE: ~ -2 t. -0 SEBASTIAN N. DANZI(;ER Exhibit C - Performance Assurance Article 7: Contracted Baseline Data 7.1 The following data of this article outlines the operating characteristics that are required to be implemented under the FIM Work. This specific configuration of operating practices is the Contracted Baseline. Table 7.1.x Summer/Winter Operating Hours Day of Week On Peak Off Peak Run Hours Run Hours Monday Limited As Needed Schedule Tuesday Limited As Needed Schedule Wednesday Limited As Needed Schedule Thursday Limited As Needed Schedule Friday Limited As Needed Schedule Saturday Limited As Needed Schedule Sunday Limited As Needed Schedule Holiday Limited As Needed Schedule Table 7.1.x Summer/Winter Operating Temperatures Day of Week On Peak On Peak Off Peak Off Peak Minimum DEG Maximum DEG Minimum DEG Maximum DEG Monday N/A Tuesday Wednesday Thursday Friday Saturday Sunday Holiday Table 7.1.x Equipment Summer/Winter (from month to month) Operating Parameters Day of Week On Peak On Peak Off Peak Off Peak Minimum Maximum Minimum Maximum CFM/BTU/GPM CFM/BTU/GPM CFM/BTU/GPM CFM/BTU/GPM (Us/MJ/Lls) (Us/MJ/Lls) (L1s/MJ/Lls) (L1s/MJ/Lls) Monday N/A Tuesday Wednesday Thursdav Friday Saturday Sunday Holiday Siemens Building Technologies, Inc. Exhibit C - Performance Assurance Page 30 of 31 Exhibit eversion 10/01/02 Exhibit C - Performance Assurance Table 7.2.x Occupancy Summer/Winter Day of Week Day Afternoon Night Monday N/A Tuesday Wednesday Thursday Friday Saturday Sunday Holiday 7.2 Building Inventory - The following information outlines the additional or replaced ~q uiPI1l~l1tiI1V~l1t()rythClt.. r~15lJ It~c:jfrol1lth~mil1l pJ~m~l1tati()l1(>f.the ...FIMYV()rk. Table of Eauipment to be Replaced location Equipment Type Unit Make Model Nurmer Serial Nurmer Number Community Center Coolina Unit chiller Carrier 30GB045610 S394579 Community Center Coolinq Unit chiller Carrier 30GB045610 S394571 City Hall Boiler boiler IAiax QWGH-1250 S 38804 Public Safely Coolina Unit UP 4 BDP Co. Division of Carrier ID#5 Public Safetv Coolinq Unit SS 14 Trane TTD724B100BO F33216315 Public Safely Coolinq Unit UP 10 BDP Co. Division of Carrier 585HJ036060 2385C39926 Public Safely Coolina Unit UP 5 BDP Co. Division of Carrier 585JEW0601 OOABE G 4385C81349 Public Safetv Coolinq Unit UP 8 BDP Co. Division of Carrier 585JEVV036060ABAF 3785C32734 Public Safely Coolina Unit UP 6 BDP Co. Division of Carrier 585JEW060100ABEG 3585C 18550 Public SafetY Coolina Unit UP 7 BDP Co. Division of Carrier 585JEVV060100ABEG 3585C18553 Public Works (Fleet Main!) Coolina Unit S8 Goodman CK60-3C 9611029003 Ems Coolina Unit 88 3 Inter-City Products CA3048VHA1 L921132018 Ems Coolinq Unit S8 4 Rheem Ems Coolina Unit S8 5 Goodman CK60-1C 10425341 Ems Coolina Unit SS 2 Rudd Ems Coolina Unit 88 1 York H2RC036S06G WOE5228886 Library Coolina Unit S8 4 York H2CA300M6D NAHI\I()11092 Library Coolinq Unit 88 5 York H2CA360M6D NDHI\I()57133 Library Coolina Unit S8 3 York H3CE240M6A NCHI\I()33978 Librarv Coolina Unit 8S York H4CE090M6C NFHI\I()73014 Library Coolina Unit 8S York H4CE090M6C NFHI\I()73009 CLIENT: Signature: Printed Name: Title: Date: ti?cfr Rill Eisen City Manaqer Mav 14, 2007 ".. SIEMENS: Signature: Printed Name: Title: rrec, Date~Ovemance & Comphance ~(~~/o7 ~",~:1"~ TITLE: Nee G. Bermudez Assistant ~ecrelal y DATE: 6-26 -07 . Siemens Building Technologies. Inc. Exhibit C - Performance Assurance Page 31 of 31 Exhibit eversion 10/01/02 APPROr~ LE{;AL SEBASTIAN N. DANZI(;ER