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Exhibit "A"
PERFORMANCE CONTRACTING
PROJECT DEVELOPMENT AGREEMENT
BETWEEN
City of Baytown Johnson Controls, Inc.
2401 Market Street AND 3021 W. Bend Drive
Baytown, Texas 77520 Irving, TX 75063
Johnson Controls, Inc. (JCI) and the Customer named above agree as follows:
1. Evaluation Study
JCI agrees to undertake a detailed evaluation study of all facilities of the City of Baytown
referenced in Exhibit "A," which is attached hereto and incorporated herein for purposes of
identifying the facilities, to determine the operational expenditures and characteristics of the
facilities and to identify facility improvements and operational efficiency measures, procedures
and other services that could be provided by JCI in order to improve the infrastructure and
reduce the operating costs of the facilities. The City of Baytown agrees to provide its complete
cooperation in the conduct and completion of the study. JCI will provide to the City of Baytown a
written report which will include:
a) a list of specific facility improvements and operational efficiency measures that JCI proposes
to install;
b) a description of the operating and maintenance procedures that JCI believes can reduce
operating costs at the facilities; and
c) an estimate of the operating costs that will be saved by the equipment and procedures
recommended in the report.
2. Professionals and Standards
JCI shall keep full -time engineers licensed in the state of Texas on staff and assigned to the
work for the duration of this project. Prior to commencement of the project, JCI shall forward to
the City a detailed resume of the personnel that will be assigned to the project. Such personnel
shall include, but not be limited to, JCI engineers.
JCI shall perform all services under this Agreement with the care and skill ordinarily used by
members of JCI's profession practicing under the same or similar circumstances, time and
locality. JCI shall be responsible for the technical accuracy of its services and documents
resulting therefrom, and the City shall not be responsible for discovering deficiencies therein.
JCI shall correct such deficiencies without additional compensation.
3. Records and Data
During the evaluation study, the City of Baytown will furnish to JCI upon its request, available
data concerning operational expenditures for the Facilities, including the following data for the
most recent three years from the effective date of this Agreement:
occupancy and usage information;
descriptions of any changes in the building structure or its heating, cooling,
lighting, or other systems;
actual utility bills supplied by the utility and other relevant utility records;
descriptions of relevant operational or maintenance procedures utilized on the
facilities;
summary of annual expenditures for operating the facilities,
copies of representative current tenant leases, if any; and
prior efficiency audits or studies of the facilities or operating procedures , if any.
However, the City does not guarantee the accuracy or correctness of the data so provided.
4. Preparation of Energy Savings Performance Contract
Within 30 days after the submission to the City of Baytown of the report described under
paragraph 1 of this Agreement, JCI will prepare and submit to the City of Baytown a Energy
Savings Performance Contract to implement the facility improvements and operational efficiency
measures, procedures, and services identified in the report that could reduce the Customer's
overall expense in operating the Facilities. This Energy Savings Performance Contract shall be
negotiated by the parties hereto pursuant to Section 2254.004, Texas Government Code.
5. Price and Payment Terms
The City of Baytown agrees to pay to JCI the sum, not to exceed $77,438.00 based upon the
rate schedule included hereinbelow within 60 days after the delivery to the Customer of the
contract described under paragraph 4 of this Agreement and after receipt of an invoice for the
same. All bills must identify with specificity the work or services performed and the date(s) of
such work or services. In the event of a disputed or contested invoice, the parties understand
and agree that the City may withhold the portion so contested, but the undisputed portion will be
paid.
Rate Schedule:
However, the City of Baytown will have no obligation to pay this amount if:
a) JCI and the City of Baytown enter into an Energy Savings Performance Contract; or.
b) All costs (principal, interest and maintenance) incurred by the City during the term of the
Energy Savings Performance Contract are greater than the guaranteed savings, avoided
costs and program credits during the term; or
c) JCI cannot achieve savings based upon the report described under paragraph 1 hereof or
based upon the determination of the licensed professional engineer retained by the City
pursuant to Section 302.005, Texas Local Government Code.
6. Insurance
JCI shall procure and maintain at its sole cost and expense for the duration of the Agreement,
insurance against claims for injures to person or damages to property which may arise from or
in connection with the performance of the Work hereunder by JCI, its agents, representatives,
volunteers, employees or subconsultants.
a. JCI's insurance coverage shall be primary insurance with respect to the City, its
officials, employees and agents. Any insurance or self- insurance maintained by
the City, its officials, employees or agents shall be considered in excess of JCI's
insurance and shall not contribute to it. Further, JCI shall include all
subconsultants, agents and assigns as additional insureds under its policy or
shall furnish separate certificates and endorsements for each such person or
entity. All coverages for subconsultants and assigns shall be subject to all of the
requirements stated herein.
The following is a list of standard insurance policies along with their respective
minimum coverage amounts required in this Agreement:
Commercial General Liability
• General Aggregate: $1,000,000
• Products & Completed Operations Aggregate: $1,000,000
• Personal & Advertising Injury: $1,000,000
• Per Occurrence: $500,000
• Fire Damage: $50,000
• Coverage shall be at least as broad as ISO CG 00 01 10 93
• No coverage shall be deleted from standard policy without
notification of individual exclusions being attached for review and
acceptance.
2. Business Automobile Policy
• Combined Single Limits: $1,000,000
• Coverage for "Any Auto"
3. Errors and Omissions
• Limit: $500,000 for this project.
• For all architects, engineers, and /or design companies
• Claims -made form is acceptable
• Coverage will be in force for one (1) year after construction of the
Project is completed.
4. Workers' Compensation
• Statutory Limits
• Employer's Liability $500,000
• Waiver of Subrogation required.
b. The following shall be applicable to all policies of insurance required herein.
Insurance carrier for all liability policies must have an A.M. Best Rating of
B +:VIII or better.
2. Only insurance carriers licensed and admitted to do business in the State
of Texas will be accepted.
3. Liability policies must be on occurrence form. Errors and Omissions can
be on claims -made form.
4. Each insurance policy shall be endorsed to state that coverage shall not
be suspended, voided, canceled or reduced in coverage or in limits
except after thirty (30) days' prior written notice by certified mail, return
receipt requested, has been given to the City.
5. The City, its officers, agents and employees are to be added as Additional
Insureds to all liability policies, with the exception of the Errors and
Omissions Policy required herein for claims arising out of this Agreement.
6. Upon request and without cost to the City, certified copies of all insurance
polices and /or certificates of insurance shall be furnished to the City.
7. All insurance required herein shall be secured and maintained in a
company or companies satisfactory to the City, and shall be carried in the
name of JCI. JCI shall provide copies of insurance policies required
hereunder to the City on or before the effective date of this Agreement.
7. Indemnity and Release
JCI AGREES TO AND SHALL INDEMNIFY AND HOLD
HARMLESS AND DEFEND THE CITY, ITS OFFICERS, AGENTS,
AND EMPLOYEES (HEREINAFTER REFERRED TO AS THE
"CITY ") FROM AND AGAINST ANY AND ALL CLAIMS, LOSSES,
DAMAGES, CAUSES OF ACTION, SUITS AND LIABILITY OF
EVERY KIND, INCLUDING ALL EXPENSES OF LITIGATION,
COURT COSTS, AND ATTORNEY'S FEES, FOR INJURY TO OR
DEATH OF ANY PERSON, FOR DAMAGE TO ANY PROPERTY,
OR FOR ANY BREACH OF CONTRACT, ARISING OUT OF, OR IN
CONNECTION WITH THE WORK DONE BY JCI UNDER THIS
,CONTRACT CAUSED BY THE SOLE OR JOINT NEGLIGENCE
OF JCI. IT IS THE EXPRESSED INTENTION OF THE PARTIES
HERETO, BOTH JCI AND THE CITY, THAT THE INDEMNITY
PROVIDED FOR IN THIS PARAGRAPH IS INDEMNITY BY JCI TO
INDEMNIFY AND PROTECT THE CITY FROM THE
CONSEQUENCES OF JCI'S OWN NEGLIGENCE, WHETHER
THAT NEGLIGENCE IS THE SOLE OR A CONCURRING CAUSE
OF THE RESULTING INJURY, DEATH OR DAMAGE. SUCH
INDEMNITY SHALL NOT APPLY, HOWEVER, TO LIABILITY
ARISING FROM THE PERSONAL INJURY, DEATH, OR
PROPERTY DAMAGE OF PERSONS THAT IS CAUSED BY OR
RESULTS FROM THE NEGLIGENCE OF THE CITY. IN THE
EVENT THAT ANY ACTION OR PROCEEDING IS BROUGHT
AGAINST THE CITY FROM WHICH THE CITY IS INDEMNIFIED,
JCI FURTHER AGREES AND COVENANTS TO DEFEND THE
ACTION OR PROCEEDING BY LEGAL COUNSEL ACCEPTABLE
TO THE CITY. THE INDEMNITY PROVIDED FOR IN THIS Section
7 SHALL SURVIVE THE TERMINATION OR EXPIRATION OF
THIS AGREEMENT.
By this Agreement, the City does not consent to litigation or suit, and the City hereby
expressly revokes any consent to litigation that it may have granted by the terms of this
Contract or any other contract or agreement, any charter, or applicable state law. Nothing
herein shall be construed so as to limit or waive the City's sovereign immunity. JCI
assumes full responsibility for its work performed hereunder and hereby releases,
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relinquishes and discharges the City, its officers, agents, and employees from all claims,
demands, and causes of action of every kind and character, including the cost of defense
thereof, for any injury to or death of any person (whether they be either of the parties
hereto, their employees, or other third parties) and any loss of or damage to property
(whether the property be that of either of the parties hereto, their employees, or other
third parties) that is caused by or alleged to be caused by, arising out of, or in connection
with JCI's work to be performed hereunder. This release shall apply with respect to JCI's
work regardless of whether said claims, demands, and causes of action are covered in
whole or in part by insurance.
8. Disputes
Notwithstanding anything to the contrary contained in this Agreement, the City and JCI hereby
agree that no claim or dispute between the City and JCI arising out of or relating to this
Agreement shall be decided by any arbitration proceeding including, without limitation, any
proceeding under the Federal Arbitration Act (9 U.S.C. Sections 1 -14), or any applicable State
arbitration statute, including, but not limited to, the Texas General Arbitration Act, provided that
in the event that the City is subjected to an arbitration proceeding notwithstanding this provision,
JCI consents to be joined in the arbitration proceeding if JCI's presence is required or requested
by the City of complete relief to be recorded in the arbitration proceeding.
9. Termination
The City, besides all other rights or remedies it may have, shall have the right to terminate this
Agreement without cause upon ten (10) days' written notice from the City Manager to JCI of the
City's election to do so.
Furthermore, either JCI or the City may terminate this Agreement due to a breach by the other
party after having given notice and a ten (10) day opportunity to cure. A breach of this
Agreement shall include, but not be limited to, the following:
a) failing to pay insurance premiums, liens, claims or other charges;
b) failing to pay any payments due the city, state, or federal government from JCI or
its principals, including, but not limited to, any taxes, fees, assessments, liens, or
any payments identified in this Agreement;
C) the institution of voluntary or involuntary bankruptcy proceeding against JCI;
d) the dissolution of JCI;
e) refusing or failing to prosecute the Work or any separable part, with the diligence
that will ensure its completion within the time specified in this Agreement;
f) failing to complete work within the time period specified in this Agreement; and /or
g) the violation of any provision of this Agreement.
Upon delivery of any notice of termination required herein, JCI shall discontinue all services in
connection with the performance of the Agreement. Within ten (10) days after receipt of the
notice of termination, JCI shall submit a final statement showing in detail the services
satisfactorily performed and accepted and all other appropriate documentation required herein
for payment of services. At the same time that the final statement is tendered to the City, JCI
shall also tender all of JCI's work product, whether complete or not, in an acceptable form and
format to the City's Representitive. No final payment will be made until all work product is so
tendered. Once tendered the City will pay JCI the amounts which may be due and owing within
30 days.
If this Agreement is terminated for cause, JCI shall be liable forany damage to the City resulting
therefrom. This liability includes any increased costs incurred by the City in completing JCI's
work provided the City mitigates its damages. The rights and remedies of the City in this
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section are in addition to any other rights and remedies provided by law or under this
Agreement.
10. Miscellaneous Provisions
a) This Agreement cannot be assigned by either party without the prior written consent of
the other party. The City may require any records or financial statements necessary in its
opinion to ensure such sale or assignment will be in the best interest of the City provided
the materials are kept confidential by the City to the extent allowed by law..
b) This Agreement is the entire Agreement between JCI and the City of Baytown and
supersedes any prior oral understandings, written agreements, proposals, or other
communications between JCI and the City of Baytown. Any change or modification to
this Agreement will not be effective unless made in writing. This written instrument must
specifically indicate that it is an amendment, change, or modification to this Agreement.
c) JCI is an independent contractor and the City neither reserves nor possesses any right
to control the details of the work performed by JCI under the terms of this Agreement.
d) This Agreement has been made under and shall be governed by the laws of the state of
Texas. The parties further agree that performance and all matters related thereto shall
be in Harris County, Texas.
e) Unless otherwise provided in this Agreement, any notice provided for or permitted to be
given must be in writing and delivered in person or by depositing same in the United
States mail, postpaid and registered or certified, and addressed to the party to be
notified, with return receipt requested, or by delivering the same to an officer of such
party. Notice deposited in the mail as described above shall be conclusively deemed to
be effective, unless otherwise stated in this Agreement, from and after the expiration of
three (3) days after it is so deposited.
f) For the purpose of notice, the addresses of the parties shall be as follows unless
properly changed as provided for herein below:
For the City:
CITY OF BAYTOWN
Attn: City Manager
P. O. Box 424
Baytown, Texas 77522 -0424
FAX: 281 - 420 -6586
For JCI:
JOHNSON CONTROLS, INC.
Attn: President
3021 W. Bend Drive
Irving, TX 75063
FAX:
Each party shall have the right from time to time at any time to change its respective
address and each shall have the right to specify a new address, provided that at least
fifteen (15) days' written notice is given of such new address to the other party.
N.
g) This Agreement shall not bestow any rights upon any third party, but rather, shall bind
and benefit JCI and the City only.
h) No waiver by either party to this Agreement of any term or condition of this Agreement
shall be deemed or construed to be a waiver of any other term or condition or
subsequent waiver of the same term or condition.
i) The headings used in this Agreement are for general reference only and do not have
special significance.
j) All parties agree that should any provision of this Agreement be determined to be invalid
or unenforceable, such determination shall not affect any other term of this Agreement,
which shall continue in full force and effect.
k) In the event of any ambiguity in any of the terms of this Agreement, it shall not be
construed for or against any party hereto on the basis that such party did or did not
author the same.
1) The officers executing this Agreement on behalf of the parties hereby represent that
such officers have full authority to execute this Agreement and to bind the party he /she
represents.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in multiple
copies, each of which shall be deemed to be an original, but all of which shall constitute but one
and the same Agreement on the _ day of April, 2008, the date of execution by the City
Manager of the City of Baytown.
JOHNSON CONTROLS, INC.
By: Lisa Loupe
Signature:
Title: Solutions Manager
City of Baytown
A
Signature:
Title: City Manager
Date: April 10, 2008 Date: April 11, 2008
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