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Resolution No. 2019- 34 R
A resolution authorizing the City Manager to execute a contract for the purchase andinstallation of a 1, 250kW standby diesel generator for the Surface Water TreatmentPlant from PowerSecure, Inc. in the amount of$ 928, 619. 00, and declaring an effectivedate.
Whereas this agreement sets forth the terms and conditions for the purchase and
installation of a 1, 250kW diesel generator with a 24- hour fuel tank, and includes a 10- year
warranty, along with one year of maintenance and monitoring services;
Whereas this generator is to be installed at the Surface Water Treatment Plant
which is a critical piece of the City' s water treatment system and will ensure the City' sability to supply treated surface water to its citizens; and
Whereas this expenditure is exempt from the bidding requirements ofTexas LocalGov' t Code § 252. 021 because it is necessary to preserve or protect the public health orsafety of the municipality' s residents in accordance with § 252. 022( a)( 2) of the Texas LocalGov' t Code;
Now therefore, be it resolved by the City Council of the City of Victoria, Texas:
1. The City Manager is authorized to execute a contract for the purchase and installation of a1, 250kW standby diesel generator for the Surface Water Treatment Plant from PowerSecure, Inc. in theamount of $928, 619. 00, substantially in the form attached hereto as Attachment " A" and incorporatedherein, with changes in form as approved by the City Attorney.
2. This resolution shall become effective immediately upon adoption.
Passed, this the19th
day of March, 2019Ayes: 6
Nays: 0
Abstentions: 0
Approved and adopted, this the19th
day of March, 2019
c-------9/%
u/( ( Piaul Polasek, Mayor of the
City of Victoria, Texas
Attest: Approved as to Legal Form:
k 7t
April Hilbrich, City Sec 41 %` 1 Thomas A. Gwosdz, City Atto r ey1I
Distribution: Legal Dep t ` Copies sent:March 2019
Public Workst.Finance Departme
1609 Heritage Commerce Court
Power @Ctsr , Wake Forest, NC 27587
Attachment "A"Phone: 816- 347- 5455
1- 866-347- 5455
Fax 919-556- 3596
www.PowerSecure.com
Confidential& Proprietary
March 19, 2019
Mr. Gilbert Reyna
Director of Finance
The City of Victoria700 Main Street
Suite 100
Victoria, TX 77901
RE: PowerSecure Interactive Distributed Generation® Services
The City of Victoria
Dear Mr. Reyna:
We are pleased to submit this proposal to provide the City of Victoria with PowerSecureInteractive Distributed Generation®( IDG®) Services. We will provide three ( 3) IDG® Systems as
noted below to serve the Standby, Load Curtailment, and Load Management needs of yourfacilities.
Location # 1: Water Plant# 3 - 3209 North Ben Jordan, Victoria, TX
625kW Standby; 540kW Prime; 480V
Location # 2: Regional Waste Water Treatment Facility - 923 Highway 59, Victoria, TX1, 250kW Standby; 1, 080kW Prime; 480V
Location # 3: Surface Water Treatment Facility - 2801 North Vine Street, Victoria, TX
1, 250kW Standby; 1, 080kW Prime; 480V
This letter and the attached Exhibits will serve as our formal Agreement.
PowerSecure will provide this IDG® System on a turnkey basis including:
Engineering/ Design
PowerBlock® Generation Equipment
NexGear® Advanced Paralleling Switchgear
IDG® System Installation
Five Year Bumper to Bumper" Best in Industry" Warranty on the Entire iDG System
Optional Extended 10 Year (yrs. 6- 10) Bumper to Bumper" Best in Industry" Warranty
on the Entire iDG System
In- service Training
1609 Heritage Commerce Court
Po 'c r SecureeWake Forest, NC 27587
Phone: 919- 556- 3056
IMUSVaginna 1- 866- 347- 5455
Fax 919- 556- 3596
www. PowerSecure. com
Confidential& Proprietary
Optional IDG® Management Services
Annual IDG® System Maintenance Services
Annual NexGeai Switchgear Maintenance Services
Annual PowerControl® Monitoring/ Dispatch Services
Annual Fuel Management Services
Environmental Permitting Assistance
A Scope of Services can be found in Exhibits Al —A3. Exhibit B includes our Standard
Terms and Conditions for this project. Optional Annual IDG® Management Services are
described in Exhibit C. We would expect this project to be completed and operational by August1, 2019 provided a Notice to Proceed is received on March 19, 2019 and there are no
extenuating permitting issues that would delay our construction schedule. ( e. g. FEMA FloodZone)
Our Quotation for this project is as follows:
1609 Heritage Commerce Court
povvierSecLIreWake Forest, NC 27587
Phone: 919- 556- 3056
y0 1- 866- 347- 5455
Fax 919- 556- 3596
www. PowerSecure. com
Confidential& Proprietary
Location # 1: Water Plant# 3 - 3209 North Ben Jordan, Victoria, TX
Option # 1 — Turnkey Purchase
Accepted:
Initial)
I. Turnkey Scope of Work per Exhibit A:* 494, 549
II. 10 Year BTB IDG® System Warranty: 23, 895
III. Annual IDG® System Management Services
per Exhibit C:
a. Engine Generator Maintenance 4, 545
b. Switchgear Maintenance 958
c. PowerControl° Remote 24/ 7 Monitoring 1, 500
Total Annual** 7, 003
Quote Good for 30 Days
Does Not Include Sales Tax
Subject To Annual Escalation after Year Two.
Option # 2— 15 Year Operating Agreement
This option provides the City of Victoria with an opportunity to receive the same equipment andservices as described in the Turnkey option without the up- front capital requirement. Instead, theequipment will be owned, operated, and maintained by PowerSecure on behalf of the City ofVictoria for an annual fee. This fee is materially reduced by allowing PowerSecure to utilize theassets in various economic response programs. The terms and conditions of this agreement are
defined in the attached " Master Distributed Generation Services Agreement" and the Task Order
associated with this specific location.
Annual Fee— Year 1* 41, 361
Subsequent years subject to 2% escalation per year)
1609 Heritage Commerce Court
PowerSecureWake Forest, NC 27587
Phone: 919- 556- 3056
1- 866-347- 5455
Fax 919-556- 3596
www.PowerSecure.com
Confidential& Proprietary
Location # 2: Regional Waste Water Treatment Facility - 923 Highway 59, Victoria,TX
Option # 1 — Turnkey Purchase
Accepted:
Initial)
I. Turnkey Scope of Work per Exhibit A:* 830, 439
II. 10 Year BTB IDG® System Warranty: 42, 468
III. Annual IDG® System Management Services
per Exhibit C:
a. Engine Generator Maintenance 9, 027
b. Switchgear Maintenance 1, 917
c. PowerControl® Remote 24/ 7 Monitoring 2, 700
Total Annual** 13, 644
Quote Good for 30 Days
Does Not Include Sales Tax
Subject To Annual Escalation after Year Two.
Option # 2— 15 Year Operating Agreement
This option provides the City of Victoria with an opportunity to receive the same equipment andservices as described in the Turnkey option without the up- front capital requirement. Instead, theequipment will be owned, operated, and maintained by PowerSecure on behalf of the City ofVictoria for an annual fee. This fee is materially reduced by allowing PowerSecure to utilize theassets in various economic response programs. The terms and conditions of this agreement are
defined in the attached " Master Distributed Generation Services Agreement" and the Task Orderassociated with this specific location.
Annual Fee— Year 1* 59, 984
Subsequent years subject to 2% escalation per year)
1609 Heritage Commerce Court
ake Forest, NC 27587
Power Secure WPhone: 919- 556- 3056
1- 866- 347- 5455
Fax 919- 556- 3596
www. PowerSecure. com
Confidential& Proprietary
Location # 3: Surface Water Treatment Facility - 2801 North Vine Street, Victoria, TX
Accepted:
Initial)
I. Turnkey Scope of Work per Exhibit A:* 868, 258
II. 10 Year BTB IDG® System Warranty: 46, 717
III. Annual IDG® System Management Services
per Exhibit C:
a. Engine Generator Maintenance 9, 027
b. Switchgear Maintenance 1, 917
c. PowerControl° Remote 24/ 7 Monitoring 2, 700
Total Annual** 13, 644
Quote Good for 30 Days
Does Not Include Sales Tax
Subject To Annual Escalation after Year Two.
1609 Heritage Commerce Court
Powe t~ SecureWake Forest, NC 27587
Phone: 919- 556- 3056
1- 866- 347- 5455
Fax 919- 556- 3596
www. PowerSecure. com
Confidential& Proprietary
Our payment terms will be as follows:
Upon of Contract Terms
Agreement Signing 30% Upon Receipt of
Receipt of IDG® System Submittal 20% Invoice Net 30 Days
Equipment Shipping Date to Site 25%
Substantial Completion of Installation 15%
Final Commissioning/ Start- up 7. 5%
In- Service Training & Owners Manuals 2. 5%
Total 100%
In the interest of time and meeting the City' s requested operational date of August, 1, 2019,PowerSecure will initially permit all three facilities as Emergency Standby only with TCEQ. Thiswill allow our construction to start almost immediately and the gensets can still be used forparticipation in ERCOT' s Emergency Response programs. Additionally, while our switchgearprovides multiple modes of operation as defined in Exhibit A, Section IV, we will initiallycommission the sites for Standby Mode only.
Once the sites are operational, if the City decides they would like to participate in non- emergencydemand response programs, PowerSecure will work with TCEQ on modifying the air permits andAEP for a parallel interconnect approval. Any fees associated with these modifications will be theresponsibility of the City of Victoria ( emissions modeling, remote trip transfer, etc.).
Please let us know if you have any questions. If you are in agreement with this letter and theattached Exhibits, please sign in the space allotted below and return a copy to me at yourearliest convenience.
Thank you again for this opportunity. We look forward to hearing from you.
Sincerely,
GJohn D. Keith, CEM
Sr. Vice President
cc: City of Victoria— D Reese
PowerSecure - J Smith, E Dupont, K Butler, A Capps, C Ellis
Accepted:
The City of Victoria Date
Power Secure VRTORR
allIMENMEN
Exhibit Al
Interactive Distributed Generation® Services
The City of VictoriaWater Plant# 3 - 3209 North Ben Jordan, Victoria, TX
Confidential and Proprietary
SCOPE OF POWERSECURE SERVICES
General
A. PowerSecure ( PS) will provide 625 kW Standby; 540 kW Prime; 480 V InteractiveDistributed Generation®( IDG®) Services to serve the City of Victoria, Water Plant
3.
B. PS will provide the following Scope of Work:1. Registered Professional Engineering Services2. Construction Documents Signed and Sealed
3. Construction Permitting4. Assistance with Environmental Permitting5. PowerBlock® Generation Equipment
6. NexGear® Advanced Paralleling Switchgear7. Shipping of all Equipment to project site8. IDG® System Installation
a. Concrete Pads for PS Provided Equipment
b. Housekeeping Padsc. ( 8) Protective Bollards
d. Power Wiringe. Control Wiringf. Instrument Transformers as Required
g. PowerControl® 24/ 7 Monitoring System Package9. In- Service Training10. O& M Manuals
C. Specifically excluded from the proposal are the following:
1. Security Fencing2. Sales Tax
3. Initial fill for Fuel and DEF
4. Platforms
T E- K S4 S
Power Secure
Exhibit Al
Interactive Distributed Generation® Services
The City of VictoriaWater Plant# 3 - 3209 North Ben Jordan, Victoria, TX
Confidential and Proprietary
D. PS will deliver the project in the following estimated timeframe based on a Notice toProceed on March 19, 2019,
Estimated
Milestone Completion ( Week No)
Contract Signing/ Receipt of P. O. 0
Receipt of IDG® System Submittal 8
Receipt of Equipment On- site 16
Substantial Completion of Installation 17
Final Commissioning/ Start- up 18
E. Refer to the enclosed drawings which illustrate the proposed IDG® System.
II. Engineering/ Design Services
A. PS will provide all engineering and design services necessary to completeconstruction documents for this project in accordance with the State of Texas.
B. PS will prepare construction documents signed and sealed by a RegisteredProfessional Engineer of Record in Texas.
Ill. Generation System
A. PowerSecure will provide PowerBlock® Generation Systems to serve this project.
B. The Generation System will include:
1. Volvo engine generator sets rated at 480 V; 625kW( Standby); 540kW
Prime), . 8pf; 781 KVA. Each Generation System shall include the following:a. Permanent Magnet Generator
b. Electronic Engine Governor
c. Charging Alternator 24Vd. Lead Acid Batteries, Rack and Battery Chargere. Engine Cooling Systemf. Exhaust System with Silencer
g. Double Wall ( UL142), 24Hr Tank with Level Sensors.
h. Weather Resistant Enclosure
i. Lubricating Oil and Antifreeze— Initial fill
j. Sound Attenuation to 78 db at 23 ft
Power Secure V!CiORIA
Irxn .
UMMEnn
Exhibit AlInteractive Distributed Generation® Services
The City of VictoriaWater Plant# 3 - 3209 North Ben Jordan, Victoria, TX
Confidential and Proprietary
IV. NexGear® Advanced Paralleling Switchgear
A. We will provide a NexGear®Advanced Paralleling Switchgear( APS) for eachgeneration system to provide the following Modes of Operation:
1. Load Management Mode: Long- term Synchronized/ Parallel Operation withAEP. ( After AEP approval of parallel interconnect.)
2. Load Curtailment Mode: Short-term Synchronized Operation with AEP
followed by a Make- Before- Break Separation from AEP. ( Pending approvalfrom AEP.)
3. Standby Mode: Automatic, Dead Bus, Block Load Transfer of a maximum of625 kW during AEP outages.
4. Test Mode: Synchronized/ Paralleled Operation at Full Load, without
Interruption of the City of Victoria Normal Electrical Service. ( After AEPapproval of parallel interconnect.)
B. Each APS will utilize a Woodward Controller, System Power Circuit Breaker( s),
Utility Grade Multifunction Intertie Relay( s), and all U. L. listed components.
C. Each APS will include all necessary functions to prevent connection or paralleloperation of the IDG® System with AEP unless the service voltage and frequencyare of normal magnitude.
D. We will meet AEP published interconnection requirements.
V. IDG® System Installation
A. PS will combine our in- house IDG® Project Management staff with a reputable locallicensed electrical contractor or utilize our in house licensed electrical construction
group to provide a fully coordinated high quality installation.
B. The PS Project Manager will serve as the single point interface with the City ofVictoria and AEP during construction/ start- up and will be present on- site for allcritical activities and key construction milestones.
VI. In- Service Training
PS will provide onsite in- service training on the operation and maintenance of the IDG®System.
Powe rSecureE,>
r:\T h
sommamse
Exhibit Al
Interactive Distributed Generations Services
The City of VictoriaWater Plant# 3 - 3209 North Ben Jordan, Victoria, TX
Confidential and Proprietary
VII. Warranty
The Manufacturer has included a standard 5 year Bumper- to- Bumper warranty for the DI
System, with an option to extend this to a 10 year warranty. Each is contingent upon
PowerSecure performing the full system maintenance package for the duration of the warranty,and are subject to the terms below:
Standard Five ( 5) Year Warranty Terms
a. The City of Victoria must contract for the PowerSecure Annual ManagementServices outlined in Exhibit C to receive 5 Year Warranty.
b. Assumes a maximum of 500 hours a year of operation per engine- generator;
c. Excludes damages due to the City of Victoria or other third party abuse, alteration,improper use, negligence, vandalism or theft;
d. Excludes damages due to Unauthorized, Non- PowerSecure- directed improper
maintenance by the City of Victoria, or any other person other than PS;e. Excludes damages due to contaminated or improper fuel, oil or coolant not
provided by PS;f. Excludes Acts of God.
Optional Ten ( 10) Year Warranty Terms
a. The City of Victoria must contract for the PowerSecure Annual ManagementServices outlined in Exhibit C to receive 10 Year Warranty.
b. The following exclusions are in addition to those above and will apply to theWarranty for years six ( 6) through ten ( 10):
1. Normal and expected wear and tear typical in the industry for similarsystems;
2. Weather related fading and minor corrosion to the exterior ofPowerSecure provided equipment.
Power Secure A
liagNIMMIM
Exhibit A2
Interactive Distributed Generation® Services
The City of VictoriaRegional Wastewater Treatment Plant- 923 Highway 59, Victoria, TX
Confidential and Proprietary
SCOPE OF POWERSECURE SERVICES
General
A. PowerSecure ( PS) will provide 1250 kW Standby; 1080 kW Prime; 480 VInteractive Distributed Generation®( IDG®) Services to serve the City of Victoria,Regional Wastewater Treatment Plant.
B. PS will provide the following Scope of Work:1. Registered Professional Engineering Services2. Construction Documents Signed and Sealed
3. Construction Permitting4. Assistance with Environmental Permitting5. PowerBlock® Generation Equipment
6. NexGear® Advanced Paralleling Switchgear7. Shipping of all Equipment to project site8. IDG® System Installation
a. Concrete Pads for PS Provided Equipment
b. Housekeeping Padsc. Power Wiringd. Control Wiringe. Instrument Transformers as Required
f. PowerControl® 24/ 7 Monitoring System Package9. In- Service Training10. O& M Manuals
C. Specifically excluded from the proposal are the following:
1. Security Fencing2. Sales Tax
3. Initial fill for Fuel and DEF
4. Platforms
D. PS will deliver the project in the following estimated timeframe based on a Notice toProceed on March 19, 2019,
Power Secure VECTOk \I.
MIMINIMMIN
Exhibit A2
Interactive Distributed Generation® Services
The City of VictoriaRegional Wastewater Treatment Plant- 923 Highway 59, Victoria, TX
Confidential and Proprietary
Estimated
Milestone Completion ( Week No)
Contract Signing/ Receipt of P. O. 0
Receipt of IDG® System Submittal 8
Receipt of Equipment On- site 16
Substantial Completion of Installation 17
Final Commissioning/ Start- up 18
E. Refer to the enclosed drawings which illustrate the proposed IDG® System.
II. Engineering/ Design Services
A. PS will provide all engineering and design services necessary to completeconstruction documents for this project in accordance with the State of Texas.
B. PS will prepare construction documents signed and sealed by a RegisteredProfessional Engineer of Record in Texas.
III. Generation System
A. PowerSecure will provide PowerBlock® Generation Systems to serve this project.
B. The Generation System will include:
1. Volvo engine generator sets rated at 480 V; 1250kW( Standby); 1080kW
Prime), . 8pf; 1562 KVA. Each Generation System shall include the
following:a. Permanent Magnet Generator
b. Electronic Engine Governor
c. Charging Alternator 24Vd. Lead Acid Batteries, Rack and Battery Chargere. Engine Cooling Systemf. Exhaust System with Silencer
g. Double Wall ( UL142), 24Hr Tank with Level Sensors.
h. Weather Resistant Enclosure
i. Lubricating Oil and Antifreeze— Initial fill
j. Sound Attenuation to 78 db at 23 ft
Power Secure ItlA
MIEMINEME
Exhibit A2
Interactive Distributed Generation® Services
The City of VictoriaRegional Wastewater Treatment Plant- 923 Highway 59, Victoria, TX
Confidential and Proprietary
IV. NexGear® Advanced Paralleling Switchgear
A. We will provide a NexGear®Advanced Paralleling Switchgear( APS) for eachgeneration system to provide the following Modes of Operation:
1. Load Management Mode: Long- term Synchronized/ Parallel Operation withAEP. ( After AEP approval of parallel interconnect.)
2. Load Curtailment Mode: Short- term Synchronized Operation with AEP
followed by a Make- Before- Break Separation from AEP. ( Pending approvalfrom AEP.)
3. Standby Mode: Automatic, Dead Bus, Block Load Transfer of a maximum of1250 kW during AEP outages.
4. Test Mode: Synchronized/ Paralleled Operation at Full Load, without
Interruption of the City of Victoria Normal Electrical Service. ( After AEPapproval of parallel interconnect.)
B. Each APS will utilize a Woodward Controller, System Power Circuit Breaker( s),
Utility Grade Multifunction Intertie Relay( s), and all U. L. listed components.
C. Each APS will include all necessary functions to prevent connection or paralleloperation of the IDG® System with AEP unless the service voltage and frequencyare of normal magnitude.
D. We will meet AEP published interconnection requirements.
V. IDG® System Installation
A. PS will combine our in- house IDG® Project Management staff with a reputable local
licensed electrical contractor or utilize our in house licensed electrical construction
group to provide a fully coordinated high quality installation.
B. The PS Project Manager will serve as the single point interface with the City ofVictoria and AEP during construction/ start- up and will be present on- site for allcritical activities and key construction milestones.
VI. In- Service Training
PS will provide onsite in- service training on the operation and maintenance of the IDG®System.
PowerSecureT<
io r:1Z X <
IIisonsmaiwis
Exhibit A2
Interactive Distributed Generation® Services
The City of VictoriaRegional Wastewater Treatment Plant- 923 Highway 59, Victoria, TX
Confidential and Proprietary
VII. Warranty
The Manufacturer has included a standard 5 year Bumper- to- Bumper warranty for the DI
System, with an option to extend this to a 10 year warranty. Each is contingent upon
PowerSecure performing the full system maintenance package for the duration of the warranty,and are subject to the terms below:
Standard Five ( 5) Year Warranty Terms
a. The City of Victoria must contract for the PowerSecure Annual ManagementServices outlined in Exhibit C to receive 5 Year Warranty.
b. Assumes a maximum of 500 hours a year of operation per engine- generator;
c. Excludes damages due to the City of Victoria or other third party abuse, alteration,improper use, negligence, vandalism or theft;
d. Excludes damages due to Unauthorized, Non- PowerSecure- directed improper
maintenance by the City of Victoria, or any other person other than PS;e. Excludes damages due to contaminated or improper fuel, oil or coolant not
provided by PS;f. Excludes Acts of God.
Optional Ten ( 10) Year Warranty Terms
a. The City of Victoria must contract for the PowerSecure Annual ManagementServices outlined in Exhibit C to receive 10 Year Warranty.
b. The following exclusions are in addition to those above and will apply to theWarranty for years six ( 6) through ten ( 10):
1. Normal and expected wear and tear typical in the industry for similarsystems;
2. Weather related fading and minor corrosion to the exterior ofPowerSecure provided equipment.
Powe r Secure1111111. 1011111111
Exhibit A3
Interactive Distributed Generations Services
The City of VictoriaSurface Water Treatment- 2801 North Vine Street, Victoria, TX
Confidential and Proprietary
SCOPE OF POWERSECURE SERVICES
General
A. PowerSecure ( PS) will provide 1250 kW Standby; 1080 kW Prime; 480 VInteractive Distributed Generation®( IDG®) Services to serve the City of Victoria,Surface Water Treatment facility.
B. PS will provide the following Scope of Work:1. Registered Professional Engineering Services2. Construction Documents Signed and Sealed
3. Construction Permitting4. Assistance with Environmental Permitting5. PowerBlock° Generation Equipment
6. NexGear® Advanced Paralleling Switchgear7. Shipping of all Equipment to project site8. IDG® System Installation
a. Concrete Pads for PS Provided Equipment
b. Housekeeping Padsc. Power Wiringd. Control Wiringe. Instrument Transformers as Required
f. PowerControl® 24/ 7 Monitoring System Package9. In- Service Training10. O& M Manuals
C. Specifically excluded from the proposal are the following:
1. Security Fencing2. Sales Tax
3. Initial fill for Fuel and DEF
4. Platforms
D. PS will deliver the project in the following estimated timeframe based on a Notice toProceed on March 19, 2019,
Power Secure v(TY- X A ,
MMENIEMM
Exhibit A3
Interactive Distributed Generation® Services
The City of VictoriaSurface Water Treatment- 2801 North Vine Street, Victoria, TX
Confidential and Proprietary
Estimated
Milestone Completion ( Week No)
Contract Signing/ Receipt of P. O. 0
Receipt of IDG® System Submittal 8
Receipt of Equipment On- site 16
Substantial Completion of Installation 17
Final Commissioning/ Start- up 18
E. Refer to the enclosed drawings which illustrate the proposed IDG® System.
II. Engineering/ Design Services
A. PS will provide all engineering and design services necessary to completeconstruction documents for this project in accordance with the State of Texas.
B. PS will prepare construction documents signed and sealed by a RegisteredProfessional Engineer of Record in Texas.
III. Generation System
A. PowerSecure will provide PowerBlock® Generation Systems to serve this project.
B. The Generation System will include:
1. Volvo engine generator sets rated at 480 V; 1250kW( Standby); 1080kW
Prime), . 8pf; 1562 KVA. Each Generation System shall include the
following:a. Permanent Magnet Generator
b. Electronic Engine Governor
c. Charging Alternator 24Vd. Lead Acid Batteries, Rack and Battery Chargere. Engine Cooling Systemf. Exhaust System with Silencer
g. Double Wall ( UL142), 48Hr Tank with Level Sensors.
h. Weather Resistant Enclosure
i. Lubricating Oil and Antifreeze— Initial fill
j. Sound Attenuation to 78 db at 23 ft
PowerSecureic' ic i r.
ligraMMINS
Exhibit A3
Interactive Distributed Generation® Services
The City of VictoriaSurface Water Treatment- 2801 North Vine Street, Victoria, TX
Confidential and Proprietary
IV. NexGear® Advanced Paralleling Switchgear
A. We will provide a NexGear® Advanced Paralleling Switchgear( APS) for eachgeneration system to provide the following Modes of Operation:
1. Load Management Mode: Long- term Synchronized/ Parallel Operation withAEP. ( After AEP approval of parallel interconnect.)
2. Load Curtailment Mode: Short- term Synchronized Operation with AEP
followed by a Make- Before- Break Separation from AEP. ( Pending approvalfrom AEP.)
3. Standby Mode: Automatic, Dead Bus, Block Load Transfer of a maximum of1250 kW during AEP outages.
4. Test Mode: Synchronized/ Paralleled Operation at Full Load, without
Interruption of the City of Victoria Normal Electrical Service. ( After AEPapproval of parallel interconnect.)
B. Each APS will utilize a Woodward Controller, System Power Circuit Breaker( s),
Utility Grade Multifunction Intertie Relay( s), and all U. L. listed components.
C. Each APS will include all necessary functions to prevent connection or paralleloperation of the IDG® System with AEP unless the service voltage and frequencyare of normal magnitude.
D. We will meet AEP published interconnection requirements.
V. IDG® System Installation
A. PS will combine our in- house IDG® Project Management staff with a reputable locallicensed electrical contractor or utilize our in house licensed electrical construction
group to provide a fully coordinated high quality installation.
B. The PS Project Manager will serve as the single point interface with the City ofVictoria and AEP during construction/ start-up and will be present on- site for allcritical activities and key construction milestones.
VI. In- Service Training
PS will provide onsite in- service training on the operation and maintenance of the IDG®System.
PowerSecureyri( liw:\T
arawaggiume
Exhibit A3
Interactive Distributed Generations Services
The City of VictoriaSurface Water Treatment- 2801 North Vine Street, Victoria, TX
Confidential and Proprietary
VII. Warranty
The Manufacturer has included a standard 5 year Bumper-to- Bumper warranty for the DI
System, with an option to extend this to a 10 year warranty. Each is contingent upon
PowerSecure performing the full system maintenance package for the duration of the warranty,and are subject to the terms below:
Standard Five ( 5) Year Warranty Terms
a. The City of Victoria must contract for the PowerSecure Annual ManagementServices outlined in Exhibit C to receive 5 Year Warranty.
b. Assumes a maximum of 500 hours a year of operation per engine- generator;
c. Excludes damages due to the City of Victoria or other third party abuse, alteration,improper use, negligence, vandalism or theft;
d. Excludes damages due to Unauthorized, Non- PowerSecure- directed improper
maintenance by the City of Victoria, or any other person other than PS;e. Excludes damages due to contaminated or improper fuel, oil or coolant not
provided by PS;f. Excludes Acts of God.
Optional Ten ( 10) Year Warranty Terms
a. The City of Victoria must contract for the PowerSecure Annual ManagementServices outlined in Exhibit C to receive 10 Year Warranty.
b. The following exclusions are in addition to those above and will apply to the
Warranty for years six ( 6) through ten ( 10):1. Normal and expected wear and tear typical in the industry for similar
systems;
2. Weather related fading and minor corrosion to the exterior ofPowerSecure provided equipment.
PowerSecure vICTORI,E X A
Exhibit B
Interactive Distributed Generations Services
The City of VictoriaVictoria, TX
Confidential and Proprietary
1. Description of Services
1. 1 Subject to the conditions set forth in this Contract, POWERSECURE agrees to furnish labor, supervision, equipment, materials,and transportation necessary to provide the services described in the attached POWERSECURE proposal( the' Work").
1. 2 POWERSECURE shall be entitled to rely on the accuracy of any information provided by Customer, which is hereby warrantedby Customer to be accurate and correct. In the event of any unforeseen costs incurred due to the inaccuracy of any suchinformation, the compensation payable to POWERSECURE shall be equitably adjusted to compensate for any suchadditional costs.
1. 3 POWERSECURE shall exercise reasonable efforts to complete the Work in accordance with the estimated schedule specifiedin POWERSECURE' s proposal, but is not responsible for costs incurred by customer due to late delivery or completion ofthe Work.
1. 4 All Quotations are net of any sales taxes and good for 30 days.
2. Services Fee and Terms of Payment
Customer shall pay POWERSECURE the contract price specified in POWERSECURE' s proposal( the" Contract Price") within 30days from the date of completion of the Work, unless otherwise provided in POWERSECURE' s proposal. If Customer failsto pay Contract Price by the due date, Customer shall liable to POWERSECURE for any attorney fees incurred in collectionof any amount due and shall pay interest to POWERSECURE on the amount past due in the amount of 1. 5% per month.
Any work beyond the scope of Work described herein requested of and performed by POWERSECURE(" Additional Work") shall bebilled to Customer at POWERSECURE' s then current standard rates, unless otherwise agreed to in writing by the parties.
The prices for the Work and any Additional Work are exclusive of federal, state, municipal or other sales or use tax. IfPOWERSECURE is required by applicable law to pay or collect any such taxes on account of Work provided in fulfilling thiscontract, then such amount of tax and any penalties and interest thereon shall be reimbursed to POWERSECURE. Unlessa Sales Tax Certificate is provided to POWERSECURE, the invoice will include a line item for sales tax.
3. Customer' s Obligations
3. 1 Customer shall be responsible to provide necessary access to and around the work site to enable POWERSECURE to performthe Services proposed herein. POWERSECURE shall have the right to suspend Work and recover additional costs in theevent that there is inadequate access to the work site, or in the event that continuing with the Work might jeopardize thesafety of any person or property.
3. 2 Customer shall provide any necessary plans, specifications, drawings, or information that may be necessary or useful in theperformance of the Work and any Additional Work at no cost to POWERSECURE.
4. Permits and Regulatory Requirements
If compliance with any laws, regulations, or ordinances of any government authority or agency, require any changes in theWork or services proposed herein, or should any permits, licenses, or approvals be required, Customer assumes the riskand responsibility for such compliance or change, or for securing such permits, licenses, and approvals from the properauthorities, and for paying any associated costs or fees, unless specifically stated otherwise within this proposal.
5. Limitation of Liability
The remedies set forth in this Contract are Customer' s sole and exclusive remedies. Neither POWERSECURE nor itsemployees, its subcontractors or suppliers shall be liable for any indirect, special, incidental, exemplary, or consequential
loss or damage of any nature arising out of or in connection with their performance or non- performance hereunder. In noevent shall POWERSECURE' s liability arising out of or in connection with the performance or non- performance of the Workor any Additional Work exceed the total of the Contract Price as set forth in POWERSECURE' s proposal. The provisions ofthis Section 5 shall apply whether such liability arises in contract, tort( including negligence), strict liability, or otherwise.
6. Insurance
POWERSECURE represents and warrants that it has met all requirements under North Carolina law with regard to
workers' compensation and automobile liability coverage.
PowerSecure vicTokE X AS
Exhibit B
Interactive Distributed Generation® Services
The City of VictoriaVictoria, TX
Confidential and Proprietary
7. Force Maieure
In no event shall POWERSECURE be responsible for any damages arising out of any failure to perform or delay due to
any cause beyond POWERSECURE' s reasonable control. In such event, POWERSECURE shall be entitled to anextension of time as necessary to overcome the cause of the failure to perform or delay.
8. Use of Subcontractors
POWERSECURE shall be permitted to use subcontractors to perform the work specified herein. Notwithstanding the use
of subcontractors, POWERSECURE shall continue to be responsible for the quality of the work and any Additional Servicesunder the provisions of Section 4.
9. Non- Waiver
The failure of either party to insist upon the performance of any term or condition of this Contract or to exercise any righthereunder on one or more occasions, shall not constitute a waiver or relinquishment of its right to demand futureperformance of such term or condition, or to exercise such right in the future.
10. Governing Law
The laws of the State of North Carolina shall govern this Contract, except that the North Carolina conflict- of- laws
provisions shall not be invoked in order to apply the laws of another state or jurisdiction.
11. Warranty
Refer to" Warranty" section of the Proposal found in Exhibit A.
12. Entire Agreement
This Contract embodies the entire agreement between POWERSECURE and Customer. Any purchase order or
acknowledgement issued by Customer is issued only for administrative purposes and any additional or conflicting terms andconditions appearing therein shall be void and of no effect. The parties shall not be bound by or liable for any statement,writing, representation, promise, inducement, or understanding not set forth above. In the event of any conflict between aproposal letter and the terms of this Contract, this Contract shall control. No changes, modifications, or amendments to any
terms and conditions in this Contract are valid or binding unless agreed to by the parties in writing by their authorizedrepresentatives.
The City of Victoria Date
PowerSecure VICTORIA
Exhibit C
Interactive Distributed Generation® System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
PowerSecure iDG System Management Service Level Agreement
Location and Description
Location# 1: Water Plant# 3 - 3209 North Ben Jordan, Victoria, TX
625kW Standby; 540kW Prime; 480V
Location# 2: Regional Waste Water Treatment Facility - 923 Highway 59, Victoria, TX
1, 250kW Standby; 1, 080kW Prime; 480V
Location# 3: Surface Water Treatment Facility - 2801 North Vine Street, Victoria, TX1, 250kW Standby; 1, 080kW Prime; 480V
II. Scope of Services
1. PS will provide Maintenance Services on a continuous services agreement basis for
the DI System.
2. Two ( 2) site visits per year to perform the following:
a. PM Level I Service ( 6 Month Inspection)
i. Pre- Run Checks
1. Check for and Log Faults
2. Take Generator Out of Auto
3. Check Jacket Water Heater operation and Thermostat setting
4. Check Jacket Water Heater connections
5. Check oil level, top off& record amount added ( up to 2 gallons
included)
6. Check coolant level, top off& record amount added ( up to 1 gallon
included)
7. Check coolant freeze protection concentration and record level
8. Check DEF concentration level ( if accessible), record level
9. Check Belts and Accessories
10. Visually inspect Water Pump and Hoses11. Visually inspect Radiator and Shrouds12. Visually inspect Starter connections13. Check Battery Acid Specific Gravity & record, top off( as needed)
Pawl rSecur£' VVIC' 'Fc ' t AT E X A S
INEMBIENIRIM
Exhibit C
Interactive Distributed Generation® System Management Service Level AgreementThe City of Victoria
Confidential and Proprietary
14. Visually inspect and clean Batteries and connections15. Check Battery Charger Operation & Float/ Equalize Function,
record
16. Check for oil leaks
17. Check for coolant leaks
18. Check for fuel leaks
19. Check for DEF leaks
20. Check Main Tank level & manually stick Tank to check for water
contamination via water finding paste
21. Check Day Tank operation ( if applicable)
22. Visually inspect Fuel Separator/ drain water
23. Visually inspect Governor linkage, if applicable
24. Visually inspect Ignition System ( gas units only)25. Visually Inspect Generator& Windings
26. Visually inspect Air Filter, Seals, and Piping
27. Visually inspect Exhaust System
28. Visually inspect Louvers for damage, hardware, or alignmentissues
ii. Running Checks1. Start System
2. Check Louver operation
3. Check Exhaust System for leaks and damage
4. Perform walk- around Inspection
5. Check gauges & note readings
6. Check for unusual noises or vibration
7. Check for applicable Shutdowns, Alarms and Warnings operation
8. Check Voltage and Frequency, adjust as needed
9. Connect Vodia ( Volvo specific) and perform log tests, applicableupdates, etc.
10. Record Following Information after Equipment reaches proper
operating temperature:a. AC Volts
b. AC Frequency ( Hz)
Power Secure VICTORIA.1MEITIMEMI
Exhibit C
Interactive Distributed Generation® System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
c. kW
d. Oil PSI
e. Coolant Temperature
f. Alternator Volts
g. Alternator Amps
h. Fuel PSI, if applicable
i. Record all System deficiencies & recommendations
iii. Final Inspection
1. Perform walk- around Inspection
2. Note any problems or needed repairs3. Check for leaks
4. Ensure System is in Auto with no faults
5. Ensure System Breakers are in the proper position
6. Verify monitoring sees system online and all faults cleared
b. PM Level II Service ( 12 Month Inspection)
i. In addition to PM Level I Service, the following will be performed:
1. Change Oil and Filters
2. Change Fuel Filters
3. Clean/ Replace Water Separator ( if applicable)
4. Change Air Filter
5. Visually inspect rotating rectifier assembly
6. Lube generator bearings ( if applicable)
7. Visually inspect main conductors for loose connections8. Grease Fan Hub Bearings ( if applicable)
9. Obtain coolant and oil sample
c. PM Level III Service ( 36 Month Inspection)
i. In addition to PM Level II Service the following will be performed:
1. Replace Engine Coolant ( VCS every 4 years)
2. Replace Engine Coolant Filters, if applicable.
3. Replace Engine Thermostats, Gaskets & Seals
4. Replace all rubber Coolant system hoses
PowerSecure VICTORIA
Exhibit C
Interactive Distributed Generations System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
5. Replace all drive belts
6. Replace DC engine cranking batteries
7. Check & adjust valve clearance ( every 1, 000 hours)
8. Replace DEF filter, if applicable ( every 2, 000 hours)
3. Annual Low Voltage Switchgear Maintenance Service- PowerBlock® and Standalone
600 VAC or less)
a. Disable remote control and automatic transfer schemes
b. De- energize applicable PowerBlock & switchboard assembly including direct and
back feed power and control sources
c. Disconnect all voltage and control power transformers
d. Open all disconnects, confirm all voltage sources removed
e. Clean interior of Gen, Tie and switch board cabinets, vacuum loose debris
f. Visually inspect all insulators, barriers and bus bars
g. Test ground fault protection system ( if equipped with test option without
additional tooling)
h. Check tightness ( torque) on accessible internal bus and cable connections
i. Visually inspect all relays for proper torque, connections and base mounting
j. Visually examine all safety interlocks to insure they are functional and in proper
working order
k. Visually inspect control wiring for loose connectionsI. Check space heaters and thermostat for proper operation.
m. Test system controls
Optional Triennial Adders— Additional cost to customer
n. Conduct an electrical insulation resistance test to ensure that the switchboard is
free of short circuit and ground( handheld megger only)
o. Secondary injection testing of LV breakers
p. Measure contact resistance of LV breakers
Power Secure SIC 1' oRlA
Exhibit C
Interactive Distributed Generations System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
PowerControl System & Fuel Management Services
1. PS will provide, our PowerControl Management Services including monitoring and
dispatching of the DI System on an annual or continuous services basis.2. PowerSecure ( PS) proposes to furnish the following list of comprehensive services on
an ongoing basis.
3. PowerControl® Remote Monitoring Services
a. Install all necessary equipment and software as described within this proposal.b. Provide communications to the DI System.
c. Continuously monitor the DI System for every Standby, Peak Load Managementand Test Operation, as well as, the following key system parameters:
i. System Modes ( Auto, Load Management, etc.)
ii. Engine Generator Controller Alarms and Warnings
iii. Paralleling Controller Alarms and Warningsiv. Battery System Voltage Levelv. Battery System Alarms and Warnings
vi. All Monitored Circuit Breaker Positions
vii. System Voltages
viii. System Loads
1. kW
2. kWh
3. kVA
4. Amperes
ix. Critical Emissions
x. Fuel Level
xi. Oil Temperature
xii. Oil Pressure
xiii. Speed ( RPM)
xiv. Run hours
d. Receive Utility Load Management Signals and Start/ Stop the DI System
accordingly.
Power Secure VICTORIAr f_ X A S
IMIIMIMEME
Exhibit C
Interactive Distributed Generation® System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
e. Provide Monthly Summary Reports to Customer.f. Notification of Active Alarms and Operations
4. Fuel Management Services
a. PS will provide fuel management services on an annual agreement basis for the
DI System.
b. PowerSecure will provide complete fuel management for the DI System( s),
including negotiation of fuel costs and automatic dispatch of fuel delivery basedon run times and signals received through the remote monitoring option
described above. The cost of fuel will be billed directly to Customer by the fuelsupplier.
5. Response Times
a. PowerSecure' s PowerControl® Remote Monitoring Service will supervise your DI
System on a 24/ 7/ 365 continuous basis for best- in- industry identification,
diagnosis and remediation of potential and actual system faults and failures. If a
problem occurs, we will know immediately and take the appropriate action to
remediate the issue.
b. We will supplement our in- house, geographically diversified services group with
your local Volvo Penta or PSI authorized dealer to provide engine maintenance
Our response time to any failure will occur within four( 4) hours.
6. Comments and Clarifications
a. Costs associated with installing a communication connection to the Switchgear isincluded in the above price and will not be billed to the Customer.
b. Where Cellular or telephone service is used as the secondary means of
communication, quality and coverage is standard coverage as offered by theprovider. PowerSecure does not make any claims to quality, consistency, orgeographical coverage of the system.
c. Inputs are based on instantaneous reading( s) of the associated parameter. Data
Logging is not provided.d. Any direct costs for emergency response and repairs by PowerSecure
employees or its affiliates ( not covered by standard or extended warranty) are not
included in the proposal.
Power Secure V1C' FOR Ar
TE X A
le IMINEE llll S
Exhibit C
Interactive Distributed Generation® System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
e. PowerSecure is not responsible for delays in delivery or rendering of services
due to fires, strikes, accidents, acts of God, or other causes beyond our control.
f. In no case will PowerSecure be responsible for incidental or consequential
damages due to late delivery of equipment or services.
g. Limited Liability— No Liability or Consequential Damages. In no event shall
PowerSecure or its suppliers accept or be liable for any damages whatsoever
including, without limitation, damages for loss of business profits, businessinterruption, loss of business information, loss of electric savings, or other
pecuniary loss) arising out of the use of or inability to use PowerSecure productsor services included in this proposal, even if PowerSecure has been advised of
the possibility of such damages.
h. Customer shall be responsible for obtaining all necessary environmental permits
if necessary) for the DG system, as required by state, federal, and localgovernments with PowerSecure management and assistance of the completion
and filing of the required permits.i. PowerSecure is not responsible for costs associated with any fluid leaks or spills.
Fuel suppliers will be responsible for all costs associated with fuel spills due to
their negligence.
j. This Agreement does not establish any additional warranty coverage, or lengthen
any existing warranty term, on the Integrated Distributed Generation® System
including but not limited to the switchgear, controls, and engine generator)
k. Customer will allow accessibility and right- of-way provisions as necessary for anyof the services described herein.
I. The price quoted herein may not be modified without the express written
authority between both parties.m. This Proposal is expressly conditioned upon your acceptance of these terms and
conditions, unless specifically modified from this Proposal.
n. This proposal is exempt from any Injection Testing, Medium Voltage or NETAcompliant Switchgear maintenance. If required, all associated work will be
completed by a third party at an additional charge to customer.o. This proposal assumes customer will provide access to equipment in need of
service during standard business hours and allow required shutdown, disableand de- energization as needed to complete the scope of work required. If
Power Secure VICTORIATEXAS
Exhibit C
Interactive Distributed Generations System Management Service Level Agreement
The City of Victoria
Confidential and Proprietary
customer requires specific maintenance windows outside standard business
hours, or limits the number of hours/ time of day work can be performed,
additional charges will apply.
7. Customer Responsibilities
a. The scope of the DI Management Services described herein is a fairly
comprehensive set of services which typically results in very little need for ownerinterface with the DI System.
b. It is advisable that selected electrical maintenance staff became familiar with
certain limited characteristics of the DI System in order to aid PowerSecure in
troubleshooting system problems, should any occur. These characteristics will be
covered during our In- Service Training.
c. Other Customer responsibilities include:
i. Weekly brief visual inspection of each DI System Enclosure to look for:1. Vandalism
2. Liquid Leaks of any kind ( stains or puddles in the enclosure or onthe concrete pads)
3. Damage caused by severe weather4. Brief visual inspection after any actual DI System operation for
Standby, Load Management or Load Curtailment use to look for
signs of overheating, leaks, weather damage.ii. In the event of a DI System failure, PowerSecure may request ( but not
require) the assistance of Customer electrical maintenance personnel to
aid in the troubleshooting of failure. This assistance could involve: ( 1)
visual inspection, ( 2) manually starting and DI System underPowerSecure supervision over the telephone, ( 3) manually resettingselected protective functions, or verifying other physical conditions.
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