Attachment 1ATTACHMENT 1
June 8 , 2018
Jim Harb in
Town of Los Gatos
41 Miles Ave.
Los Gatos, CA 95030
Subject: Letter of Intent to Contract and Approval to Proceed with Detailed
Engineering and Final Project Development
Dear Jim ,
The Town of Los Gatos intends to enter into a Design -Build Agreement for an Energy Services Project
(“Project”) wit h Syserco ’s Energy Solutions Division (“Syserco ”) to improve its infrastructur e and
operational efficiencies . The Project will be comprised of a variety of proposed Facility Improvement
Measures (“FIM”s) that will be assessed through Detailed Engineering and Final Project Development
(“Work”).
The Work will evaluate the following systems: Heating, Ventilation and Air Conditioning (HVAC), Lighting
and Lighting Controls, Building Automation and Controls, Building Envelope, Plug Load Management ,
Appliances, Water, and Utility Supplier options.
The Work will be performed at the following location(s):
Building
Police Operations
Los Gatos Civic Center
Los Gatos Public Library
LGS Recreation - Youth Center
LGS Recreation - Adult Center
Los Gatos Corporation Yard
The intent of th e Work is to refine the final contract for the Project’s Scope of Work, Utility and
O perational savings, Implementation Schedule and Final Project Construction Costs .
Objectives
To determine Final projects, the following objectives shall be included :
Calculated savings shall exceed total project costs by a minimum of fifteen percent within the
financing period , inclusive of audit costs .
Projects shall not significantly increase maintenance and operations cost to the Town.
Operational impacts during project implementation shall allow for ongoing uninterrupted
provision of Town service s.
The Town shall have the right to approve all assumptions made within cost and savings
calculations. Syserco may provide savings guarantees at no cost to the Town to address
questionable assumptions.
Projects shall include Town specified warranty covera ge.
Project Funding
PG&E’s On -Bill Financing (OBF ) program is being considered as the funding source for this project. This
Town aims to maximize this funding opportunity, and reserves the right to consider alternative funding
mechanisms as approved by the Town .
A CTIONS TO BE P ERFORMED :
Syserco will complete a directed Project Development and Design/ E ngineering effort necessary for
the development of a contract for an Energy Services Project.
In order for SES to complete the Work, the Town of Los Gatos shall provide Syserco with the following (if
not already provided):
3 -year history of utility bills or a signed form authorizing SYSERCO to act as an Agent for the Town
of Los Gatos and receive the data directly from the Utility Provider.
Records of Maintenance and Operational costs and copies of existing Service Contracts for
maintenance performed by third -parties.
Reasonable a ccess to facilities and design drawings
The Work is a very collaborative effort . The Work is intended to form the basis of a Final Proposal
and contracting documents. Therefore, the Town of Los Gatos shall also :
A ssign a main Point of Contact for the Work : ___Jim Harbin _____________ and provide
reasonable access to Key Stakeholders :
o Public Works Point of Contact:_____Matt Morley _________________
o Legal Point of Contact:______ Robert Schultz ___________________
o Town Executive Point of Contact:____Laurel Prevetti _____________
o Town Financial Point of Contact: ____Stephen Conway _________
In accordance with CA GC 4217, a ll reasonable Design, E ngineering and Project Development costs
incurred by SYSERCO will be included in the F inal Project Costs and payback calculations, which shall be
funded by PG&E OBF program , or other funding program(s), as approved by District.
F EE :
If S yserco is unable to produce a Final Project that meets the above Objectives, then it shall receive no
payment for its efforts.
However, if Syserco presents a Final Project that meets the Objectives, and the parties do not execute an
Agreement for the implementation of the recommended facility improvement measures within forty -five
(45 ) days thereafter, then the Town of L os Gatos agrees to pay Syserco a B reak Fee of $34,750.00
All associated information related to the Work will become the property of the Town of Los Gatos upon
final receipt of payment.
T IMELINE AND M ILESTONES : S yserco will initiate this W ork immed iately upon acceptance of this Letter of
I ntent. Formal progress review meetings will be conducted regularly throughout the process of the
Work. During these review meetings, S yserco will recommend measures based on preliminary analysis,
while the Town of Los Gatos will provide final direction regarding acceptance of the recommended
measures in the Scope of Work of the Project . The goal of these review meetings is to focus engineering
/ project development efforts, budgeting, and savi ngs on those FIMs t hat have a high probability for
implementation.
The following are proposed key milestone dates:
06/20 /2018 - Authorization to begin Work
06/25 /2018 - Kick -Off Meeting with Key Stakeholders
07/17 /2018 - 30% Design Review Meeting
07/20 /2018 - Client Review Comments and Direction Given on Measures
08/07 /2018 - 60% Design Review Meeting
08/10 /2018 - Client Review Comments and Direction Given on Measures
08/21 /2018 - 90% Design Review Meeting
08/24 /2018 - Client Review Comments and Direction Given on Measures
09/05 /2018 - SYSERCO to Deliver Final Energy Services Proposal
09/18 /2018 - Energy Services Proposal Authorized and Work Started
Please signify acceptance of this Letter of Intent by signing below.
Letter of Intent Authoriz ed by:
Laurel Prevetti
Town Manager
Town of Los Gatos
Scott Meinzen
VP and General Manager
Syserco Energy Solutions, Inc.
_________________________________ ______________________________
Signature Signature
Date:__________________________ Date:__________________________