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HomeMy WebLinkAboutContract 21251 225 ~, HONEYWELL AGREEMENT CUSTOMER NAME: City of Columbia Heights HONEYWELL PROPOSAL NUMBER: DATE OF SUBMISSION: August 25, 2008 VALIDITY PERIOD: 60 Days Rev. 11 /06 TABLE OF CONTENTS ARTICLE PAGE 1. GENERAL PROVISIONS ....................................................................................................................1 2. HONEYWELL'S RESPONSIBILITIES .............................................................................................1 3. CUSTOMER`S RESPONSIBILITIES .................................................................................................2 4. SUBCONTRACTS .................................................................................................................................4 5. INSTALLATION AND ACCEPTANCE .............................................................................................4 6. PRICE AND PAYMENT .....................................................................................................................4~ 7. CHANGES IN THE PROJECT ...........................................................................................................5 8. INSURANCE, INDEMNITY, WAIVER OF SUBROGATION, AND LIMITATION OF LIABILITY ...........................................................................................................................................56 9. TERMINATION OF THE AGREEMENT .........................................................................................7 10. ASSIGNMENT AND GOVERNING LAW .........................................................................................7 11. MISCELLANEOUS PROVISIONS ...................................................................................................75 12. ARBITRATION ...................................................................................................................................95 ATTACHMENT A ATTACHMENT B ATTACHMENT C ATTACHMENT D ATTACHMENT E ATTACHMENT F ATTACHMENT G ATTACHMENT H ATTACHMENT I ATTACHMENT J THE WORK (SCOPE-OF-WORK) SOFTWARE LICENSE AGREEMENT THE INSTALLATION SCHEDULE SUPPORT SERVICES PAYMENT SCHEDULE ENERGY GUARANTEE SCHEDULE OF SAVINGS RESERVED RESERVED PROJECT ACCEPTANCE Note Regarding Modifications Made to this Agreement: Provisions in the printed document that are not to be included in the agreement may be deleted by striking through the word, sentence or paragraph to be omitted. It is recommended that unwanted provisions not be made illegible. The parties should be clearly aware of the material deleted from the standard form. Do not make any modifications to this Agreement unless approval to do so has been granted. Changes may be made only by deletion as explained above, or, by addendum. Rev. 11 /06 ARTICLE 1 GENERAL PROVISIONS 1.1 This Agreement, including all Attachments, Exhibits, and Schedules referenced herein (hereinafter the "Agreement") is made this 20th day of November, 2007 (the "Effective Date") by and between Honeywell International Inc. ("HONEYWELL"), a Delaware Corporation, acting through its Automation and Control Solutions business unit, with a principal place of business at 101 Columbia Road, Morristown, New Jersey 07962- 1057, and City of Columbia Heights, ("CUSTOMER") with a principal place of business at 590 - 40~' Ave. NE, Columbia Heights, MN 55421-3878 (collectively the "Parties"). 1.2 EXTENT OF AGREEMENT: This Agreement, including all attachments and exhibits hereto, represents the entire agreement between CUSTOMER and HONEYWELL and supersedes all prior negotiations, representations or agreements. This Agreement shall not be superseded by any provisions of the documents for construction and may be amended only by written instrument signed by both CUSTOMER and HONEYWELL. None of the provisions of this Agreement shall be modified, altered, changed or voided by any subsequent Purchase Order issued by CUSTOMER, which relates to the subject matter of this Agreement. 1.3 As used in this Agreement, the term "Work" means the construction and services required by the Contract Documents, whether completed or partially completed, and includes all other labor, materials, equipment and services provided or to be provided by HONEYWELL to fulfill HONEYWELL'S obligations, as described in Attachment A and otherwise set forth in the Contract Documents. The Work may constitute the whole or a part of the Project. The Work specifically excludes certain design and construction, which are the subject of separate agreements between CUSTOMER and parties other than HONEYWELL. 1.4 The Project is the total construction of which the Work performed by HONEYWELL under this Agreement may be the whole or a part. 1.5 The Contract Documents consist of this Agreement, its attachments, exhibits, schedules, and addenda. 1.6 Support Services means those services and obligations to be undertaken by HONEYWELL in support of CUSTOMER as set forth in Attachment D. 1.7 Installation Schedule means that schedule set out in Attachment C describing the Parties' intentions respecting the times by which the components or aspects of the Work therein set forth shall be installed and/or ready for acceptance or beneficial use by CUSTOMER. ARTICLE 2 HONEYWELL'S RESPONSIBILITIES 2.1 HONEYWELL Services 2.1.1 HONEYWELL shall be responsible for construction of the Project. 2.1.2 HONEYWELL will assist CUSTOMER in securing permits necessary for the Work. 2.2 Responsibilities with Respect to the Work 2.2.1 HONEYWELL will provide construction supervision, inspection, labor, materials, tools, construction equipment and subcontracted items necessary for the execution and completion of the Work. 2.2.2 HONEYWELL shall keep the premises in an orderly fashion and free from unnecessary accumulation of waste materials or rubbish caused by its operations. If HONEYWELL damages property not needed for the Work, HONEYWELL shall repair the property to its pre- existing condition unless CUSTOMER directs otherwise. At the completion of the Work, HONEYWELL shall remove waste material supplied by HONEYWELL under this Agreement as well as all its tools, construction equipment, machinery and surplus material. HONEYWELL shall dispose of all waste materials or rubbish caused by its operations; provided, that unless otherwise specifically agreed to in this Agreement, HONEYWELL shall not be responsible for disposal of toxic or hazardous materials removed from the facilities. HONEYWELL shall be responsible for disposal of fluorescent lights, potential polychlorinated biphenyl containing light ballasts and mercury containing controls to the extent their replacement is specified in Attachment A. 2.2.3 HONEYWELL shall give all notices and comply with all laws and ordinances legally enacted as of the date of execution of the Agreement governing the execution of the Work. Provided, however, that HONEYWELL shall not be responsible nor liable for the violation of any code, law or ordinance caused by CUSTOMER or existing in CUSTOMER'S property prior to the commencement of the Work. 2.2.4 HONEYWELL shall comply with all applicable federal, state and municipal laws and regulations that regulate the health and safety of its workers while providing the Work, and shall take such measures as required by those laws and regulations to prevent injury and accidents to other persons on, about or adjacent to the site of the Work. It is understood and agreed, however, that HONEYWELL shall have no responsibility for elimination or abatement of health or safety hazards created or otherwise resulting from activities at the site of the Work carried on by persons not in a contractual REV 11/06 relationship with HONEYWELL, including CUSTOMER, CUSTOMER's contractors or subcontractors, CUSTOMER'S tenants or CUSTOMER'S visitors. CUSTOMER agrees to cause its contractors, subcontractors and tenants to comply fully with all applicable federal, state and municipal laws and regulations governing health and safety and to comply with all reasonable requests and directions of HONEYWELL for the elimination or abatement of any such health or safety hazards at the site of the work. 2.3 Patent Indemnity 2.3.1 HONEYWELL shall, at its expense, defend or, at its option, settle any suit that may be instituted against CUSTOMER for alleged infringement of any United States patents related to the hardware manufactured and provided by HONEYWELL, provided that: 1. Such alleged infringement consists only in the use of such hardware by itself and not as part of, or in combination with, any other devices, parts or software not provided by HONEYWELL hereunder; 2. CUSTOMER gives HONEYWELL immediate notice in writing of any such suit and permits HONEYWELL, through counsel of its choice, to answer the charge of infringement and defend such suit; and 3. CUSTOMER gives HONEYWELL all needed information, assistance and authority, at HONEYWELL'S expense, to enable HONEYWELL to defend such suit. 2.3.2 If such a suit has occurred, or in HONEYWELL's opinion is likely to occur, HONEYWELL may, at its election and expense: obtain for CUSTOMER the right to continue using such equipment; or replace, correct or modify it so that it is not infringing; or remove such equipment and grant CUSTOMER a credit therefore, as depreciated. 2.3.3 h7 the case of a final award of damages in any such suit, HONEYWELL will pay such award. HONEYWELL shall not, however, be responsible for any settlement made without its written consent. 2.3.4 THIS ARTICLE STATES HONEYWELL'S TOTAL LIABILITY AND CUSTOMER'S SOLE REMEDY FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY PATENT BY THE HARDWARE MANUFACTURED AND PROVIDED BY HONEYWELL HEREUNDER. IN NO EVENT SHALL HONEYWELL BE LIABLE FOR ANY INDIItECT, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM ANY SUCH ACTUAL OR ALLEGED INFRINGEMENT, EXCEPT AS SET FORTH IN THIS SECTION 2.3. 2.4 Warranties and Completion 2.4.1 HONEYWELL warrants CUSTOMER good and clear title to all equipment and materials furnished to CUSTOMER pursuant to this Agreement (except licensed software, which shall be governed exclusively by the terms and conditions of the Software License Agreement, attached hereto as Attachment B), free and clear of liens and encumbrances. HONEYWELL hereby warrants that all such equipment and materials shall be of good quality and shall be free from defects in materials and workmanship, including installation and setup, for a period of one (1) year from the date of beneficial use or substantial completion of the equipment or portion of the Work in question, provided that no repairs, substitutions, modifications, or additions have been made, except by HONEYWELL or with HONEYWELL's written permission, and provided that after delivery such equipment or materials have not been subjected by non- HONEYWELL personnel to accident, neglect, misuse, or use in violation of any instructions supplied by HONEYWELL. HONEYWELL'S sole liability hereunder shall be to repair promptly or replace defective equipment or materials, at HONEYWELL'S option and at HONEYWELL' expense. The limited warranty contained in this Section 2.4.1 shall constitute the exclusive remedy of CUSTOMER and the exclusive liability of HONEYWELL for any breach of any warranty related to the equipment and materials furnished by HONEYWELL pursuant to this Agreement. 2.4.2 In addition to the warranty set forth in Section 2.4.1 above, HONEYWELL shall, at CUSTOMER'S request, assign to CUSTOMER any and all manufacturer's or installer's warranties for equipment or materials not manufactured by HONEYWELL and provided as part of the Work, to the extent that such third-party warranties are assignable and extend beyond the one (1) year limited warranty set forth in Section 2.4.1. 2.4.3 THE WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE, AND HONEYWELL EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE EQUIPMENT AND MATERIALS PROVIDED HEREUNDER. HONEYWELL SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING FROM, OR RELATING TO, THIS LIMITED WARRANTY OR ITS BREACH. ARTICLE 3 CUSTOMER'S RESPONSIBILITIES 3.1 CUSTOMER shall provide HONEYWELL full information regarding the requirements for the Work. 3.2 CUSTOMER shall designate a representative who shall be fully acquainted with the Work, and who has REV 11/06 authority to approve changes in the scope of the Work and render decisions promptly. 3.3 CUSTOMER shall furnish to HONEYWELL all information regarding legal limitations, utility locations and other information reasonably pertinent to this Agreement, the Work and the Project. 3.4 CUSTOMER shall secure and pay for all necessary approvals, easements, assessments and charges required for the construction, use or occupancy of permanent structures or for permanent changes in existing facilities, including charges for legal and auditing services. 3.5 If CUSTOMER becomes aware of any fault or defect in the Work, it shall give prompt written notice thereof to HONEYWELL. 3.6 The services and information required by the above paragraphs shall be furnished with reasonable promptness at CUSTOMER'S expense and HONEYWELL shall be entitled to rely upon the accuracy and the completeness thereof. 3.7 Prior to the commencement of the Work and at such future times as HONEYWELL shall reasonably deem appropriate, CUSTOMER shall furnish evidence in a form satisfactory to HONEYWELL that sufficient funds are available and committed to pay for the Work. Unless such evidence is furnished, HONEYWELL is not required to commence or continue any Work. Further, if CUSTOMER does not provide such evidence, HONEYWELL may stop work upon fifteen (15) days notice to CUSTOMER. The failure of HONEYWELL to insist upon the providing of this evidence at any one time shall not be a waiver of CUSTOMER'S obligation to make payments pursuant to this Agreement, nor shall it be a waiver of HONEYWELL's right to request or insist that such evidence be provided at a later date. 3.8 HAZARDOUS SUBSTANCES, MOLD AND UNSAFE WORKING CONDITIONS 3.8.1 "Hazardous substance" includes all of the following, whether naturally occurring or manufactured, in quantities, conditions or concentrations that have, are alleged to have, or are believed to have an adverse effect on human health, habitability of a Site, or the environment: (a) any dangerous, hazardous or toxic pollutant, contaminant, chemical, material or substance defined as hazardous or toxic or as a pollutant or contaminant under state or federal law, and (b) any petroleum product, nuclear fuel or material, carcinogen, asbestos, urea formaldehyde, foamed- in-place insulation, polychlorinated biphenyl (PCBs), and (c) any other chemical or biological material or organism, that has, is alleged to have, or is believed to have an adverse effect on human health, habitability of a Site, or the environment. 3.8.2 "Mold" means any type or form of fungus or biological material or agent, including mold, mildew, moisture, yeast and mushrooms, and any mycotoxins, spores, scents, or by-products produced or released by any of the foregoing. This includes any related or any such conditions caused by third parties. 3.8.3 "Covered Equipment" means the equipment covered by the Services to be performed by HONEYWELL under this Agreement, and is limited to the equipment included in the respective work scope attachments. 3.8.4 CUSTOMER has not observed or received notice from any source (formal or informal) of (a) Hazardous Substances or Mold, either airborne or on or within the walls, floors, ceilings, heating, ventilation and air conditioning systems, plumbing systems, structure, and other components of the Site, or within furniture, fixtures, equipment, containers or pipelines in a Site; or (b) conditions that, to CUSTOMER'S knowledge, might cause or promote accumulation, concentration, growth or dispersion of Hazardous Substances or Mold on or within such locations. 3.8.5 HONEYWELL is not responsible for determining whether the Covered Equipment or the temperature, humidity and ventilation settings used by CUSTOMER, are appropriate for CUSTOMER and the Site except as specifically provided in an attached Work Scope Document. 3.8.6 If any such materials, situations or conditions, whether disclosed or not, are in fact discovered by HONEYWELL or others and provide an unsafe condition for the performance of the work or Services, the discovery of the condition shall constitute a cause beyond HONEYWELL'S reasonable control and HONEYWELL shall have the right to cease the work or Services until the area has been made safe by CUSTOMER or CUSTOMER'S representative, at CUSTOMER'S expense. HONEYWELL shall have the right to terminate this Agreement if CUSTOMER has not fully remediated the unsafe condition within sixty (60) days of discovery. 3.8.7 CUSTOMER represents that CUSTOMER has not retained HONEYWELL to discover, inspect, investigate, identify, prevent or remediate Hazardous Substances or Mold or conditions caused by Hazardous Substances or Mold. 3.8.8 TO THE FULLEST EXTENT ALLOWED BY LAW, CUSTOMER SHALL INDEMNIFY AND HOLD HONEYWELL HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS AND COSTS OF WHATEVER NATURE, INCLUDING BUT NOT LIMITED TO, CONSULTANTS' AND ATTORNEYS' FEES, DAMAGES FOR BODILY INJURY AND PROPERTY DAMAGE, FINES, PENALTIES, CLEANUP COSTS AND COSTS ASSOCIATED REV 11/06 WITH DELAY OR WORK STOPPAGE, THAT IN ANY WAY RESULTS FROM OR ARISES UNDER THE BREACH OF THE REPRESENTATIONS AND WARRANTIES IN THIS SECTION THE EXISTENCE OF MOLD OR A HAZARDOUS SUBSTANCE AT A SITE, OR THE OCCURRENCE OR EXISTENCE OF THE SITUATIONS OR CONDITIONS DESCRIBED IN THIS SECTION, WHETHER OR NOT CUSTOMER PROVIDES HONEYWELL ADVANCE NOTICE OF THE EXISTENCE OR OCCURRENCE AND REGARDLESS OF WHEN THE HAZARDOUS SUBSTANCE OR OCCURRENCE IS DISCOVERED OR OCCURS. THIS INDEMNIFICATION SHALL SURVIVE TERMINATION OF THIS AGREEMENT FOR WHATEVER REASON. 3.9 In addition to the price set forth in Article 6 of this Agreement, CUSTOMER shall pay any present and future taxes or any other governmental charges now or hereafter imposed by existing or future laws with respect to the sale, transfer, use, ownership or possession of the Work or any Support Services provided hereunder, excluding taxes on Honeywell's net income. 3.10 CUSTOMER shall execute a software license in the form of the Software License Agreement attached hereto as Attachment B. Failure of CUSTOMER to execute such Software License Agreement shall excuse HONEYWELL from any delivery requirements pursuant to this Agreement and shall be considered a material breach by CUSTOMER. ARTICLE 4 SUBCONTRACTS 4.1 At its exclusive option, HONEYWELL may subcontract some or all of the Work or Support Services. 4.2 A Subcontractor is a person or entity who has a direct contract with HONEYWELL to perform any effort in connection with the Work. The term Subcontractor does NOT include any separate contractors employed by CUSTOMER or such separate contractors' subcontractors. 4.3 For the purposes of this Agreement, no contractual relationship shall exist between CUSTOMER and any Subcontractor. HONEYWELL shall be responsible for the management of its Subcontractors in their performance of their Work. ARTICLE 5 INSTALLATION AND ACCEPTANCE 5.1 The Work to be performed under this Agreement shall be commenced and substantially completed as set forth in the Installation Schedule attached hereto as Attachment C. 5.2 If HONEYWELL is delayed at any time in the progress of performing its obligations under this Agreement by any act of CUSTOMER or any contractor employed by CUSTOMER; or by changes ordered or requested by CUSTOMER in the Work performed pursuant to this Agreement; or by labor disputes, fire, unusual delay in transportation, adverse weather conditions or other events or occurrences which could not be reasonably anticipated; or unavoidable casualties; or any other problem beyond HONEYWELL'S reasonable control (an "Excusable Delay"), then the time for performance of the obligations affected by such Excusable Delay shall be extended by the period of any delay actually incurred as a result thereof. If any delay, or cumulative delays, within CUSTOMER'S control, extends beyond ten (10) days, CUSTOMER shall reimburse HONEYWELL for all additional costs resulting therefrom. 5.3 HONEYWELL shall provide Delivery and Acceptance Certificates in a form acceptable to CUSTOMER and HONEYWELL (the "Delivery and Acceptance Certificates") for the Work provided pursuant to the Schedule identified in attachment J. Upon receipt of each Delivery and Acceptance Certificate, CUSTOMER shall promptly inspect the Work performed by HONEYWELL identified therein and execute each such Delivery and Acceptance Certificate as soon as reasonably possible, but in no event later than ten (10) days after delivery of the same by HONEYWELL, unless CUSTOMER provides HONEYWELL with a written statement identifying specific material performance deficiencies that it wishes HONEYWELL to correct. HONEYWELL will use reasonably diligent efforts to correct all such material deficiencies and will give written notice to CUSTOMER when all such items have been corrected. The Parties intend that a fmal Delivery and Acceptance Certificate will be executed for the Work as soon as all Work is installed and operating. Execution and delivery by CUSTOMER of such fmal Delivery and Acceptance Certificate with respect to the Work shall constitute "Final Acceptance" of such Work performed by HONEYWELL pursuant to the Installation Schedule. ARTICLE 6 PRICE AND PAYMENT 6.1 Price 6.1.1 The price for the Work is Nine Hundred Thirty Thousand Two Hundred Twenty Seven dollars ($930,227.00), subject to the adjustments set forth in Articles 5 and 7. The Contract Price and Payment Schedule are based upon the contract being signed and the fmancing being secured by August 29, 2008. Should either event be delayed beyond August 29, 2008, Honeywell reserves the right to increase the price and adjust the payment schedule. REV 11/06 6.1.2 The total price for Support Services is set forth in Attachment D hereto, subject to the adjustments described therein. 6.1.3 The price is based upon laws, codes and regulations in existence as of the date this Agreement is executed. Any changes in or to applicable laws, codes and regulations affecting the cost of the Work shall be the responsibility of CUSTOMER and shall entitle HONEYWELL to an equitable adjustment in the price and schedule. 6.1.4 The price will be modified for delays caused by CUSTOMER and for Changes in the Work, all pursuant to Article 7. 6.1.5 The license fees for all licensed software identified in Attachment B are included in the price to be paid by CUSTOMER as identified in this Article 6. 6.2 Payment 6.2.1 Upon execution of this Agreement, CUSTOMER shall pay or cause to be paid to HONEYWELL the full price for the Work in accordance with the Payment Schedule, Attachment E. CUSTOMER shall make payments for the Support Services in accordance with Attachment D. 6.22 Payments for the Work past due more than five (5) days shall accrue interest from the due date to the date of payment at the rate of one and one half percent (1.5%) per month, compounded monthly, or the highest legal rate then allowed. CUSTOMER shall pay all attorney and/or collection fees incurred by HONEYWELL in collecting any past due amounts. ARTICLE 7 CHANGES IN THE PROJECT 7.1 A Change Order is a written order signed by CUSTOMER and HONEYWELL authorizing a change in the Work or adjustment in the price, or a change to the Installation Schedule described in Attachment C. 7.2 CUSTOMER may request HONEYWELL to submit proposals for changes in the Work. Unless otherwise specifically agreed to in writing by both parties, if HONEYWELL submits a proposal pursuant to such request but CUSTOMER chooses not to proceed, CUSTOMER shall issue a Change Order to reimburse HONEYWELL for any and all costs incurred in preparing the proposal. 7.3 Claims for Concealed or Unknown Conditions If conditions are encountered at the site that are (1) subsurface or otherwise concealed physical conditions which differ materially from those indicated in the Contract Documents, or (2) unknown physical conditions of an unusual nature, which differ materially from those ordinarily found to exist and generally recognized as inherent in construction activities of the character provided for in the Contract Documents, then notice by the observing party shall be given to the other party promptly before conditions are disturbed and in no event later than twenty-one (21) days after first observance of the conditions, and, if appropriate, an equitable adjustment to the Contract Price and Installation Schedule shall be made by a Change Order. If agreement cannot be reached by the Parties, the party seeking an adjustment in the Price or Installation Schedule may assert a claim in accordance with Paragraph 7.4. 7.4 If HONEYWELL wishes to make a claim for an increase in the Price or an extension in the Installation Schedule it shall give CUSTOMER written notice thereof within a reasonable time after the occurrence of the event giving rise to such claim. This notice shall be given by HONEYWELL before proceeding to execute the Work, except in an emergency endangering life or property, in which case HONEYWELL shall have the authority to act, in its discretion, to prevent threatened damage, injury or loss. Claims arising from delay shall be made within a reasonable time after the delay. Increases based upon design and estimating costs with respect to possible changes requested by CUSTOMER shall be made within a reasonable time after the decision is made not to proceed with the change. No such claim shall be valid unless so made. If CUSTOMER and HONEYWELL cannot agree on the amount of the adjustment in the Price, or the Installation Schedule, it shall be determined pursuant to the provisions of Article 12. Any change in the Price or the Installation Schedule resulting from such claim shall be authorized by Change Order. 7.5 Emergencies In any emergency affecting the safety of persons or property, HONEYWELL shall act, at its discretion, to prevent threatened damage, injury or loss. Any increase in the Price or extension of time claimed by HONEYWELL on account of emergency work shall be determined as provided in Section 7.4. ARTICLE 8 INSURANCE, INDEMNITY, WAIVER OF SUBROGATION, AND LIMITATION OF LIABILITY 8.1 Indemnity 8.1.1 HONEYWELL agrees to indemnify and hold CUSTOMER, and CUSTOMER'S consultants, agents and employees harmless from all claims for bodily injury and REV 11/06 property damages, including but not limited to attorneys' fees, [other than the Work itself and other property insured under Paragraph 8.4] to the extent such claims result from or arise under HONEYWELL'S or HONEYWELL'S contractors, consultants, agents or employees negligent actions or willful misconduct in its performance of the Work or the Support Services. PROVIDED THAT, NOTHING IN THIS ARTICLE SHALL BE CONSTRUED OR UNDERSTOOD TO ALTER THE LIMITATIONS OF LIABILITY CONTAINED IN THIS ARTICLE, ARTICLE 2, OR THE INDEMNIFICATION CONTAINED IN SECTION 3.8. 8.1.2 CUSTOMER shall indemnify and hold harmless HONEYWELL and HONEYWELL'S consultants, agents and employees from and against all claims, damages, losses and expenses, including but not limited to attorneys' fees, arising out of, or resulting from, any negligent act or omission, or willful misconduct of CUSTOMER or CUSTOMER'S contractors, consultants, agents or employees. 8.1.3 CUSTOMER shall require any other contractor who may have a contract on this project with CUSTOMER to perform work in the areas where Work will be performed under this Agreement to agree to indemnify CUSTOMER and HONEYWELL and hold them harmless from all claims for bodily injury and property damage [other than property insured under Paragraph 8.4] that may arise from that contractor's operations. Such provisions shall be in a form satisfactory to HONEYWELL. 8.2 Contractor's Liabilitv Insurance HONEYWELL shall, at its own expense, carry and maintain in force at all times from the effective date of the Contract through final completion of the work the following insurance. Honeywell will not issue coverage on a per project basis. It is agreed, however, that HONEYWELL has the right to insure or self-insure any of the insurance coverages listed below: (a) Commercial General Liability Insurance to include contractual liability, products/completed operations liability with a combined single limit of USD $5,000,000 per occurrence. Such policy will be written on an occurrence form basis; (b) If automobiles are used in the execution of the Contract, Automobile Liability Insurance with a minimum combined single limit of USD $5,000,000 per occurrence. Coverage will include all owned, leased, non-owned and hired vehicles. (c) Where applicable, "All Risk" Property Insurance, including Builder's Risk insurance, for physical damage to property which is assumed in the Contract. (d) Workers' Compensation Insurance Coverage A - Statutory limits and Coverage B-Employer's Liability Insurance with limits of USD $1,000,000 for bodily injury each accident or disease. 8.2.1 Prior to the commencement of the Contract, HONEYWELL will furnish evidence of said insurance coverage in the form of a Memorandum of Insurance which is accessible at: http://places.honeywell.com/moi. All insurance required in this Article will be written by companies with a rating of no less than "A-, XII" by A.M. Best or equivalent rating agency. HONEYWELL will endeavor to provide a thirty (30) day notice of cancellation or non-renewal to the Customer. In the event that aself- insured program is implemented, HONEYWELL will provide adequate proof of financial responsibility. 8.3. CUSTOMER's Liabilitv Insurance 8.3.1 CUSTOMER shall be responsible for purchasing and maintaining its own liability insurance and, at its option, may purchase and maintain such insurance as will protect it against claims that may arise from operations under this Agreement. 8.4 Insurance to Protect Protect 8.4.1 CUSTOMER shall purchase and maintain all risk full cost replacement property insurance in a form acceptable to HONEYWELL for the length of time to complete the Project. This insurance shall include as named additional insureds HONEYWELL and HONEYWELL'S Subcontractors and Sub-subcontractors and shall include, at a minimum, coverage for fire, windstorm, flood, earthquake, theft, vandalism, malicious mischief, transit, collapse, testing, and damage resulting from defective design, workmanship, or material. CUSTOMER will increase limits of coverage, if necessary, to reflect estimated replacement costs. CUSTOMER will be responsible for any co-insurance penalties or deductibles. If the Work covers an addition to or is adjacent to an existing building, HONEYWELL and its Subcontractors and Sub-subcontractors shall be named additional insureds under CUSTOMER'S Property Insurance covering such building and its contents. 8.4.1.1 If CUSTOMER fmds it necessary to occupy or use a portion or portions of the Facilities prior to Substantial Completion thereof, such occupancy shall not commence prior to a time mutually agreed to by CUSTOMER and HONEYWELL and to which the insurance company or companies providing the property insurance have consented by endorsement to the policy or policies. This insurance shall not be canceled or lapsed on account of such partial occupancy. Consent of HONEYWELL and of the insurance company or companies to such occupancy or use shall not be unreasonably withheld. 8.4.2 CUSTOMER shall purchase and maintain such insurance as will protect CUSTOMER and HONEYWELL against loss of use of CUSTOMER's property due to those perils insured pursuant to Subparagraph 8.4.1. Such policy will provide coverage for expenses of expediting materials, continuing overhead of CUSTOMER and HONEYWELL, REV 11/06 necessary labor expense including overtime, loss of income by CUSTOMER and other determined exposures. Exposures of CUSTOMER and HONEYWELL shall be determined by mutual agreement and separate limits of coverage fixed for each item. 8.4.3 CUSTOMER shall provide evidence of Insurance to HONEYWELL before work on the Project begins. All insurance coverages) must be with a carrier rated A- or better by one of the National Insurance Rating Agencies such as A.M. Best. HONEYWELL will be given thirty (30) days notice of cancellation, non-renewal, or any endorsements restricting or reducing coverage. 8.5 Property Insurance Loss Adjustment 8.5.1 Any insured loss shall be adjusted with CUSTOMER and HONEYWELL and made payable to CUSTOMER and HONEYWELL as trustees for the insureds, as their interests may appear, subject to any applicable mortgagee clause. 8.5.2 Upon the occurrence of an insured loss, monies received will be deposited in a separate account and the trustees shall make distribution in accordance with the agreement of the parties in interest, or in the absence of such agreement, in accordance with an arbitration award pursuant to Article 12. If the trustees are unable to agree between themselves on the settlement of the loss, such dispute shall also be submitted to arbitration pursuant to Article 12. 8.6 Limitation of Liability 8.6.1 IN NO EVENT SHALL HONEYWELL BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, SPECULATIVE, REMOTE, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES, WHETHER ARISING OUT OF OR AS A RESULT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, MOLD, MOISTURE OR INDOOR AIR QUALITY, OR OTHERWISE, ARISING FROM, RELATING TO, OR CONNECTED WITH THE SERVICES, EQUIPMENT, MATERIALS, OR ANY GOODS PROVIDED HEREUNDER. ARTICLE 9 TERMINATION OF THE AGREEMENT 9.1 If HONEYWELL defaults in, or fails or neglects to carry forward the Work in accordance with this Agreement, CUSTOMER may provide notice in writing of its intention to terminate this Agreement to HONEYWELL. If HONEYWELL, following receipt of such written notice, neglects to cure or correct the identified deficiencies within thirty (30) business days, CUSTOMER may provide a second written notice. If HONEYWELL has not, within thirty (30) business days after receipt of such notice, acted to remedy and make good such deficiencies, CUSTOMER may terminate this Agreement and take possession of the site together with all materials thereon, and move to complete the Work itself expediently. If the unpaid balance of the contract sum exceeds the expense of fmishing the Work, the excess shall be paid to HONEYWELL, but if the expense exceeds the unpaid balance, HONEYWELL shall pay the difference to CUSTOMER. 9.2 If CUSTOMER fails to make payments as they become due, or otherwise defaults or breaches its obligations under this Agreement, HONEYWELL may give written notice to CUSTOMER of HONEYWELL'S intention to terminate this Agreement. If, within seven (7) days following receipt of such notice, CUSTOMER fails to make the payments then due, or otherwise fails to cure or perform its obligations, HONEYWELL may, by written notice to CUSTOMER, terminate this Agreement and recover from CUSTOMER payment for Work executed and for losses sustained for materials, tools, construction equipment and machinery, including but not limited to, reasonable profit and applicable damages. ARTICLE 10 ASSIGNMENT AND GOVERNING LAW 10.1 This Agreement shall be governed by the law of the State where the Work is performed. 10.2 Neither party to the Agreement shall assign this Agreement or sublet it as a whole without the written consent of the other party. Such consent shall not be reasonably withheld, except that HONEYWELL may assign to another party the right to receive payments due under this Agreement. HONEYWELL may enter into subcontracts for the Work without obtaining CUSTOMER'S consent. ARTICLE 11 MISCELLANEOUS PROVISIONS 11.1 The Table of Contents and headings in this Agreement are for information and convenience only and do not modify the obligations of this Agreement. 11.2 Confidentiality. As used herein, the term "CONFIDENTIAL INFORMATION" shall mean any information in readable form or in machine-readable form, including software supplied to CUSTOMER by HONEYWELL, that has been identified or labeled as "Confidential" and/or "Proprietary" or with words of similar import. CONFIDENTIAL INFORMATION shall also mean any information that is disclosed orally and is designated as "Confidential" and/or "Proprietary" or with words of similar import at the time of disclosure and is reduced to writing, marked as "Confidential" and/or "Proprietary" or with words of similar import, and supplied to the receiving party within ten (10) days of disclosure. REV 11/06 All rights in and to CONFIDENTIAL INFORMATION and to any proprietary and/or novel features contained in CONFIDENTIAL INFORMATION disclosed are reserved by the disclosing party; and the party receiving such disclosure will not use the CONFIDENTIAL INFORMATION for any purpose except in the performance of this Agreement and will not disclose any of the CONFIDENTIAL INFORMATION to benefit itself or to damage the disclosing party. This prohibition includes any business information (strategic plans, etc.) that may become known to either party. Each party shall, upon request of the other party or upon completion or earlier termination of this Agreement, return the other party's CONFIDENTIAL INFORMATION and all copies thereof. Notwithstanding the foregoing provisions, neither party shall be liable for any disclosure or use of information disclosed or communicated by the other party if the information: (a) is publicly available at the time of disclosure or later becomes publicly available other than through breach of this Agreement; or (b) is known to the receiving party at the time of disclosure; or (c) is subsequently rightfully obtained from a third party on an unrestricted basis; or (d) is approved for release in writing by an authorized representative of the disclosing party. The obligation of this Article shall survive any expiration, cancellation or termination of this Agreement. 11.3 If any provision is held illegal, invalid or unenforceable, the remaining provisions of this Agreement shall be construed and interpreted to achieve the purposes of the Parties. 11.4 Risk of loss for all equipment and materials provided by HONEYWELL hereunder shall transfer to CUSTOMER upon delivery to CUSTOMER'S Facilities from HONEYWELL or its Subcontractor and title shall pass upon final acceptance or final payment by CUSTOMER to HONEYWELL, whichever occurs later. 11.5 Final notice or other communications required or permitted hereunder shall be sufficiently given if personally delivered to the person specified below, or if sent by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: To HONEYWELL: HONEYWELL INTERNATIONAL INC. 1985 Douglas Drive North Golden Valley. MN 55422 Attention: Glenn Vosberg, Project Manager To CUSTOMER: City of Columbia Hei is 590 - 40`'' Avenue NE Columbia Heiehts. MN 55421-3878 Attention: Walter Fehst 11.6 Waiver. HONEYWELL'S failure to insist upon the performance or fulfilhnent of any of CUSTOMER's obligations under this Agreement shall not be deemed or construed as a waiver or relinquishment of the future performance of any such right or obligation hereunder. 11.7 If any provision of this Agreement or the application thereof to any circumstances shall be held to be invalid or unenforceable, then the remaining provisions of this Agreement or the application thereof to other circumstances shall not be affected hereby and shall be valid and enforceable to the fullest extent permitted by law. 11.8 It is the intention of the parties hereto that this agreement, the Support Services Agreement and the Software License Agreement of even date herewith qualify under Minnesota Statutes §471.345 Subd. 13 of the UNIFORM MUNICIPAL CONTRACTING LAW as an Energy efficiency project which is not subject to the competitive bidding requirements of section 471.345. Pursuant to that intention, HONEYWELL represents and warrants that it is a "qualified provider" as defined at §471.345 Subd 13 (c). The parties believe, to the best of their knowledge, that the work referred to herein constitutes "energy conservation measures" as defined at §471.345 Subd. 13 (a) and that the agreement constitutes a "guaranteed energy savings contract" as defined at §471.345 Subd. 13 (b). Further, HONEYWELL agrees that it will, prior to commencing Work, provide to CUSTOMER a bond for the faithful performance of the Work, as required by §471.345 Subd. 13 (c), which bond shall be in a form satisfactory to the CUSTOMER. This Agreement shall not be binding on CUSTOMER until HONEYWELL has provided CUSTOMER with such a performance bond in an amount equal to the contract price set forth in section 6,1.1. Further, HONEYWELL has provided to CUSTOMER a report summarizing estimates of all costs of installations, modifications, or remodeling, including costs of design, engineering, installation, maintenance, repairs, or debt service, and estimates of he amounts by which energy or operating costs will be reduced, as required by §471.345 Subd. 13 (c) of Minnesota Statutes. REV 11/06 ARTICLE 12 ARBITRATION 12.1 With the exception of any controversy or claim arising out of or related to the installation, monitoring, and/or maintenance of fire and/or security systems, the Parties agree that any controversy or claim between HONEYWELL and CUSTOMER arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in a neutral venue, conducted in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. Any award rendered by the arbitrator shall be fmal, and judgment may be entered upon it in accordance with applicable law in any court having jurisdiction thereof. Any controversy or claim arising out of or related to the installation, monitoring, and/or maintenance of systems associated with security and/or the detection of, and/or reduction of risk of loss associated with fire shall be resolved in a court of competent jurisdiction. APPROVALS: The parties hereby execute this Agreement as of the date first set forth herein by the signatures of their duly authorized representatives: HONEYW L~ RNATIONAL INC. City of Columbia Heights gy - ~ ~y G~/ Nam Name Walter Fehst Title v l - ~'- ~ Date Title Mayor. Date ~ ~ `~~ REV 11/06 9 Name Gary L. Peterson ATTACHMENT A SCOPE OF WORK PART 1 - I'RODUCTS & EXECUTION Article I. Liehtin2 /Electrical Retrofits A. General Lighting Description Honeywell will furnish and install a complete turnkey lighting retrofit project including the project supervision, labor, and any appurtenances necessary for proper execution and completion of below written scope of work and scope outlined in Exhibit A-1 attached hereto and incorporated herein. The project consists of converting existing T12 lamps and magnetic ballast to energy efficient 32 watt T8 lamps and high efficiency electronic ballast, either through retrofit or replacement of fixtures. Non LED type exit signs will be replaced with new LED type signs. The lighting retrofit includes all equipment, labor, disposal, check-out, commissioning and warranty on all labor and equipment. As part of the [ighting retrofit, Vending Miser Occupancy Sensors will be installed on cold beverage machines in buildings receiving lighting retrofits. Vending Ivlisers are special occupancy sensors designed to minimize energy usage in cold beverage machines, during unoccupied periods, while maintaining produce integrity at all times. B. Lighting Upgrade Specifics 800 series, 24,000 hour, 32 watt T8 lamps will be used 2. Lenses will be dry wiped to remove dust and debris at time of installation. In compliance with federal regulations, Honeywell will recycle all lamps and PCB laden ballasts. A manifest will be provided to the Murzyn Hall at the end of the job stating the number of lamps and ballasts that were recycled. C. Lighting Materials Warranty 1. The electronic ballasts installed on this project have a manufacturer's warranty of 5 years. 2. The fluorescent lamps installed on this project have a manufacturer's warranty of 2 year. 3. All labor provided by Honeywell in this project will be warranted for a period of one year. Specific damage to the lighting system caused by lightning, significant changes in power quality, power surges, physical damage to the equipment or abnormal operation are excluded from this warranty. The warranty shall commence upon completion and acceptance by Murzyn Hall. Murryn Hall will be asked to sign off on the installation tracking fom~s on a regular, ongoing basis. As a result, a portion of the individual facility warranty(s) will commence in advance of the overall project completion. 4. During the warranty period Ivlurryn Hall staff shall replace all defective lamps and ballasts under warranty. A 1% supply of replacement lamps, ballasts and compact fluorescent lamps shall be left on-site, to cover any pre mature failures. i~~turryn Hall shall be reimbursed $10 for every defective ballast replaced by their staff during the warranty period and receive new lamps and ballasts for every defective component returned, on a one for one basis, throughout the warranty period. ivlurzyn Hall shall work directly with the manufacturer on all warranty issues. D. Lighting Scope of Work per Building -See Exhibit A-1 for room by room detail per building. Attachment A (Rev. 1 1!06) Page 1 of 13 E. Ceiling Fan Installation Honeywell will install (2) ceiling hung propeller type fans in the bar area next to the fireplace. The fans will have multiple speed controls. Switches to be located at a central point. Article II. Honevwell Ener~y i•iana~ement Svstem Uperade / Comfortpoint Svstem A. Murzyn Hall The HVAC control scope of work associated with the existing controls will be as follows: a) Basement Unit S-1: Remove and replace the existing pneumatic sensors. Reuse pneumatic damper and heating valve actuators. b) Install new DDC controller and panel to monitor and/or control the following; 1. AHU Return Air Temperature 2. AHU Mixed Air Temperature 3. AHU Discharge Air Temperature 4. Outside Air Temperature 5. AHU Duct Static Pressure (located 2/3 down supply duct) 6. AHU Supply Fan Start/Stop 7. AHU Supply Fan Status 8. AHU Supply Fan Speed 9. ANU Return Fan StartlStop l0. AHU Freeze stat 11. AHU Duct Static Discharge Hi Limit Safety 12. AHU two stage DX cooling 13. AHU Hot Water Valve Actuator (pneu) 14. AHU Mixed Air Damper Actuators (pneu) 15. Enable bathroom exhaust fans (2) c) VAV Boxes: Install new controllers to (14) VAV boxes in basement area. 1. Space Temperature Sensor 2. Hot Water Valve (installed by mech contractor) 3. Hot Water Valve Actuator (elec) 4. Damper Actuator 5. Airflow (pickups to be connected by pipe fitter) 2. Attic AHU-1 Serves Office Area -Install new DDC controller and panel to monitor and/or control the following: 1. AHU Return Air Temperature 2. AHU Mixed Air Temperature 3. AHU Discharge Air Temperature 4. Space Temperature 5. AHU Supply Fan Start/Stop 6. AHU Supply Fan Status 7. AHU Freeze stat 8. AHU two stage DX cooling 9. AHU Hot Water Valve Actuator (elec) 10. AHU Mixed Air Damper Actuators (elec) 11. Mechanical to install heating valve 3. Attic AHU-2 Serves Hall Seating Area: Install new DDC controller and panel to monitor and/or control the following: 1. AHU Return Air Temperature 2. AHU Mixed Air Temperature 3. AHU Discharge Air Temperature 4. Space Temperature Attachment A (Rev. 11/06) Page 2 of 7 5. AHli Supply Fan Start/Stop 6. AHU Supply Fan Status 7. AHU Freeze stat 8. AHU two stage DX cooling (will control both units) 9. AHU Hot Water Valve Actuator (elec) (will control both units) 10. AHU Mixed Air Damper Actuators (elec) (will control both units) l 1. 1\~lechanical to install heating valve 12. Space Temperature 4. Attic AHU-3 Dual unit for Hall: install new DDC controller and panel to monitor and!or control the following: 1. AHU Return Air Temperature 2. AHU Mixed Air Temperature 3. AHU Discharge Air Temperature 4. Space Temperature 5. Outside Air Temperature 6. AHU Supply Fan Start/Stop (2) 7. AHU Supply Fan Status (2) 8. AHU Freeze stat 9. AHU two stage DX cooling ] 0. AHU Hot Water Valve Actuator (elec) 11. AHU 11~iixed Air Damper Actuators (elec) 12. Mechanical to install heating valve 13. Space Temperature Hot Water System: Install new DDC controller and panel to monitor and/or control tl~e following: 1. Hot Water Boilers (2) Enable/Disable 2. Boiler Alarm 3. Boiler Status 4. Hot Water Supply Temperature New(piping tap by mechanical contractor) 5. Hot Water Return Temperature New piping tap by mechanical contractor) 6. Hot Water Pump 1 Start/Stop 7. Hot Water Pump 1 Status (current sensor) 8. Hot Water Pump 1 Speed 9. Hot Water Pump 2 Start/Stop 10. Hot Water Pump 2 Status (current sensor) 1 ]. Hot Water Pump 2 Speed 12. Hot Water System Supply Pressure MS New locate near end of longest piping run - piping tap by mechanical contractor) 13. Domestic Hot Water Enable/Disable B. MURZYN HALL BUILDING WIDE MONITOR/CONTROL/ALARNI Controllers will tie into the customers LAN making it accessible from any web based facility. a) Provide Web controller(JACE) to interact with all Comfortpoint controllers b) Provide Building System Supervisor Software. The City of Columbia heights will be able to remotely access Murzyn Hall a) Authorized personnel will be able to access the HVAC system thru their home or office computer to make building set point changes, time scheduling, and alarm monitoring. Control, Monitor and Alarm Notification: a) Local scheduling of major equipment (run times, snow days, day/night activation) b) Dial out alarm capability for unsafe conditions. c) Future capability for additional Direct Digital Control. d) Local equipment monitoring for trouble-shooting e) Local temperature monitoring for equipment control f) Status of major equipment: boilers, pumps, AHUs Attachment A (Rev. 11 /06) Page 3 of 7 Article III. HVAC 11~Iodifications A. REPLACE EYISTING HW & STEAM BOILERS WITH HOT WATER BOILERS 1. Honeywell will demo three existing old modular HW boilers, associated pumps and accessories and necessary piping in boiler room. 2. Honeywell will demo existing old steam boiler and necessary piping in boiler room. 3. Honeywell will demo existing condensate return piping from the attic. 4. Honeywell will provide new HWR piping and insulation to attic. 5. Honeywell will provide four new triangle tube SOLO X99 95% efficient boilers and associated venting. 6. Honeywell will provide four new boiler pumps. 7. Honeywell will provide two system pumps with VFD's. 8. Honeywell will provide new expansion tank and air separator. 9. Honeywell will provide triangle tube boiler controller which will accept an input from building management system to enable boilers, and will automatically sequence the boiler rotation. 10. Honeywell will provide all balancing necessary. 11. Honeywell will provide all materials and labor as required for a turnkey boiler plant operation. 12. The new boiler installation will be in accordance with all State and local rules and regulations. B. AHU Modifications for Basement Unit S-I 1. Honeywell will provide new high efficiency fan motor for unit S-l and Honeywell VFD. 2. Honeywell will demo old VFD on air handling unit. 3. Honeywell will demo fourteen existing Trane VAV boxes and install fourteen new Titus VAV boxes with hot water re-heat coils and associated piping. 4. Honeywell will install fourteen new control valves on the new VAV boxes. 5. Honeywell will re-locate the supply air static pressure sensor on existing Trane air handling unit for better system operation. 6. Honeywell will provide new insulation where required for installation of new VAV boxes. C. Attic AHU Modifications 1. Honeywell will demo the two existing attic air Handling units.. 2. Honeywell will provide four new McQuay air handling units (One will serve the office area, one will serve the seating area in the hall, and two will be tied together to serve the wood floor area of the hall).. 3. Honeywell will provide four new McQuay condensing units with scroll compressors (one circuit each, the office unit will have hot gas by-pass for low load conditions). 4. Honeywell will provide new ductwork and route to existing ducrivork to accomplish the above mentioned zones. 5. Honeywell will provide insulation for new ductwork. Attachment A (Rev. I l/06) Page ~4 of 7 Article IV. Buildine Enveloae Improvements A. Windows /Doors General Description 1. Honeywell will furnish and install new windows and doors in Murryn Hall including the following: 1 "clear annealed and tempered glass, low ~ on the #3 surface, door hardware (push pulls, closers, MS lock, and sweeps), 4" stile doors w/10" kick plate, 1 part caulking at exterior, disposal of old windows and door fasteners. Honeywell will re-caulk perimeter of new existing windows, clean and re-cap bead ofnew existing windows and provide shop drawings. B. Windows /Doors Specifics 1. Honeywell will install 4 - 95 x 53 windows. 2. Honeywell will install 2 - 70 x 53 windows. 3. Honeywell will install 2 - 38 x 53 windows. 4. Honeywell will install 1 - 34 x 53 window. 5. Main Entrance (North Elevation) -Honeywell will install l - 72 x 81 -clear anodized finish with replacement of frame, door and hardware. 6. Secondary Entrance (North Elevation) -Honeywell will install 1 - 72 x 81 -replace wood doors with steel hollow metal doors and hardware, reusing existing frames. To be glazed with '/4" tempered glass with steel grid assembly to be applied over the face to replicate existing doors. 7. Side Entrance (West Elevation) -Honeywell will install I - 64 x 81 -replace wood doors with steel hollow metal doors and hardware, reusing existing frames. To be glazed with %4" tempered glass with steel grid assembly to be applied over the face to replicate existing doors. 8. Steel exterior doors to have '/4" tempered glass due to steel grid package being installed. The exterior and interior painting of the steel doors and interior wood trim is to be done by City of Columbia Heights. C. Wall Replacement 1. Honeywell will demo wall and soffit drywall to remove debris from site (944 sq. ft.) 2. Honeywell will demo water damage insulation to allow 464 sq. ft. to be removed from site. 3. Honeywell will remove and reset 2 x 2 grid ceiling approx. 1088 sq. ft. 4. Honeywell will provide labor and material for drywall repairs to match existing. Article V. Roofine /Attic Insulation Improvements A. Roof Replacement 1. Honeywell will tear off the existing roofing material at Murzyn Hall consisting of: a) Removal of all existing roofing material from the building. b) Removal of all roofing nails. 2. Honeywell will provide deck examination at Ivturryn Hall consisting of: a) Inspect the decking and replace any that is deteriorated with new decking of the same thickness. Attachment A (Rev. I I/06) Page ~ of 7 b) Any unused stacks, curbs, etc., will be removed and the holes covered with appropriate decking material. Honeywel( will a new roof at Murzyn Hall consisting of: a) Install pre-finished metal drip edge around the perimeter of the roof. Nail in place.. b) Apply ice and water shield six feet up at all eave lines. Nail in place. c) Cover the balance of the roof with 15# underlayment felt. Fasten in place. d) Install new preformed galvanized metal valleys. Nail and seal in place. e) Install new sheet metal louvered vents. Nail and seal in place. f) Install new galvanized metal plumbing stacks. Nail and seal in place. g) Install one course of mineral starter at all eaves. Nail and seal in place. h) Cover the roof with GAF Timberline-30 shingles. Nail in place using a minimum of four roofing nails per shingle. i) Install GAF Timbertex on the ridges. j) Step-flash the chimney with 24-gauge galvanized metal. Nail and seal in place. 4. Honeywell remove the existing gutters and downspouts, dispose of them and install new pre- finished gutters and downspouts. 5. Honeywell install up to ten additional roof vents needed for proper ventilation of the attic. 6. Roof includes a manufacturer's ten-year warranty against leakage for labor and materials. B. Attic Insulation Honeywell will provide additional attic blown in insulation according to the following: a) Leave existing insulation in place. b) Blow in an additional amount of R-38 equivalent fiberglass blown insulation. (approx. 6400 square feet) c) Repair torn poly above false ceiling. d) Vent chutes installed at each truss space. e) Foam all plate by-passes. Attachment A (Rev. (l/06) Page 6 of 7 A. GENERAL CONDITIONS 1. Honeywell is not responsible for bringing existing lighting%electrical systems up to code. 2. If Honeywell encounters any materials or substances classified as toxic or hazardous in performance of the Work associated with the mechanical systems, including asbestos, Honeywell will notify City of Columbia Heights and will stop work in that area until such area has been made safe by the City of Columbia Heights, or City of Columbia Heights's Representative, at City of Columbia Heights's expense. In the event such conditions cause a delay in Honeywell's performance, Honeywell shall be entitled to recovery of all costs associated with such delay, as well as an extension of time of performance. 3. Where demolition of certain areas of a building are required for removal and installation of equipment and that demolition is included in the scope of work defined herein, Honeywell will make every effort to replace such areas with similar materials as available. If such materials are not available, materials of similar quality will be supplied and installed. 4. Electrical: Should a problem with the existing wiring system occur, Honeywell will be limited to electrical wiring modifications (repairs) to three feet (36 inches) of the device or the nearest wall or coiling penetrating, whichever is smaller. 5 Piping: Should a problem with the existing piping system occur, Honeywell will be limited to piping modifications (repairs) to two feet (24 inches) of the device installed or the nearest wall or ceiling penetration, whichever is smaller. Piping includes but is not limited to domestic hot and cold water, cooling cold water, heating hot water, condensate, fuel oil, cooling tower condensing water and pneumatic piping. 6. Routine Clean-up: Routine clean up such as vacuuming, coil cleaning and filter change of air handling devices, etc. is the responsibility of the City of Columbia Heights, or as included in Attachment D, 7. Utility Meter: If new utility meters are required, provision and coordination of utility meters is the responsibility of the City of Columbia Heights. 8. Phone Lines: To be provided by City of Columbia Heights for off-site monitoring, two (2) lines for each front end, one (1) line for each separate remote bus, as well as on-going maintenance of the lines. 9. Efficiency Values: Honeywell will install equipment and lighting components (hereto referred as "equipment") under the scope described herein with specific energy and water efficiency values. The City of Columbia Heights is required to replace any failed "equipment" no longer warranted by Honeywell or a Honeywell subcontractor, with "equipment" of equal or greater efficiency for the full contract guarantee term. 10. Limitation of Liability -Security Systems, Fire Alarm Systems and/or Components -Honeywell's total liability for damages of any kind or nature arising out of or relating to any aspect or component of the security or fire alarm systems and/or components provided under this Agreement is limited to 100 000. 11. The following areas are specifically excluded from this proposal. Correction of problems in these areas, if required by Federal, State or local law or ordinance, will be considered additional work and will be chargeable (with approval) to the City of Columbia Heights. a. Any work not specifically stated and outlined in this scope of work. b. Painting and patching of areas beyond those areas directly related to work. c. Existing non-code conditions (examples: existing electrical wiring which requires correction or approval by appropriate inspectors, existing penetrations in need of fire stopping, etc). B. RELATED YORK SPECIFIED ELSEWHERE Provision of equipment, material, and labor to provide functional measurement and verification systems coordinated under Attachment G - Schedule of Savings. Attachment A (Rev. I t/06) Page 7 of 7 ATTACHMENT B SOFTWARE LICENSE AGREEMENT BRANCH Honeywell Minneapolis (MN 56) 1985 Douelas Drive North Golden Valley. MN 55422 City of Columbia Heights - Murzyn Hall 590 40~' Avenue Columbia Heights. AKIN 55421-3878 763-706-3600 Re: Honeywell International, Inc. Software License Agreement Designated Installation: Dear Customer: Your new building management system requires the use of the software listed in the Sofiu~are Product Schedule. In accordance with the usual practice in the industry, this software, related materials, and any updates or revisions, are protected by copyright and trade secret law, and may be protected by patent law. You may use the software with the equipment being provided by Honeywell at the Designated Installation. You may (for archival or backup purposes) make up to three (3) copies of noncopy protected software on disk or magnetic tape and one (1) copy of the software in printed form. The software is proprietary to, and title to the software remains in, Honeywell and its vendor(s). You agree: (1) to take reasonable steps to maintain Honeywell's and its vendors' rights in the software; (2) not to sell, transfer, publish, display, disclose or make the software or any copies avaIlable to others, except to its affiliates and successors, and to the transferees of the equipment to which this license pertains; and (3) not to reverse compile, disassemble or otherwise reverse engineer the sofllvare. All rights in patents, copyrights, trademarks, and trade secrets are retained by Honeywell and its vendors. Any attempt to transfer, assign, or sublicense this Agreement or the software is null and void, except to its affiliates and successors, and to the transferees of the equipment to which this license pertains. Upon termination of this license you will immediately return the software to Honeywell. Termination will not cancel your obligations under this agreement. If, for a period of one (1) year, the software does not meet Honeywell specifications, then Honeywell, at its option, shall repair or replace the software. Honeywell represents and warrants that it has the right to provide the software and to grant the licenses granted herein. IN NO EVENT SHALL YOU OR HONEYWELL OR ITS VENDORS BE LIABLE FOR ANY INDIRECT, CONSEQUENTIAL OR SPECIAL DAMAGES RELATING TO OR ARISING OUT OF THIS AGREEMENT OR WARRANTY. NEITHER HONEYWELL NOR ITS VENDORS SHALL BE LIABLE FOR ANY WARRANTIES IMPLIED BY LAW OR OTHERWISE, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE WITH REGARD TO ANY SOFTWARE SUPPLIED PURSUANT TO THIS AGREEMENT. Please indicate your acceptance by signing, dating and returning a copy of this letter to me. Sincerely, Authorized and Accepted by: ~~1~~~liG _ ~ /~iafriorized Signature ~/.~~~~ Name: Walter Fehst Title: Cit ana er Date: Attaclunent B (Rev. 02/05) Page 1 of 2 Software Product Schedule: The software listed below may be supplied as read only memory, disk, magnetic tape, printed material, or in other forms, and includes related materials. CP-S-AX-SBS-EXUP 1 Honeywell Building Automation System (CP) Attachment B (Rev. 02/05) Page 2 of 2 ATTACHMENT C INSTALLATION SCHEDULE The installation schedule will be coordinated with the Counties designated representative. A master schedule with all the various job segments and timeframes noted therein will be prepared and reviewed before site work is begun. Afterwards, the Project Manager will review the work in process and projected tasks prior to the start of the various segments listed in Attachment A. The entire project will be coordinated and supervised by Honeywell in order to provide a completed scope of work within an Nine (9) month period. Every reasonable effort will be made to avoid disruption of the normal day-to-day activities at the affected facilities within the County. The County designated representative will authorize any work needing to be performed during non-standard operating hours. Honeywell will obtain acceptance of each job segment by demonstrating the completed work to the authorized designated representative. Honeywell will document this acceptance with a copy of the signed report provided to the City Manager. Attachment C (Rev. 02/05) Page l of ATTACHMENT D SUPPORT SERVICES AGREEMENT Honeywell Building Solutions SERVICE AGREEMENT Project Name: City of Columbia Heights - Murzyn Hall Proposal Number: Date: August 26~' , 2008 Agreement Number: (PROVIDER) Honeywell Building Solutions 1985 Douglas Drive North Golden Valley, MN 55422 Golden Valley, MN 55422 Service Location Name: Service Location Address: Murzyn Hall 530 Mill Street NE. (CUSTOMER) City of Columbia Heights 590 40`h Avenue NE Columbia Heights, MN 55421-3878 Scope of Work: HONEYWELL HBS shall provide the following equipment and services ("the Work") in accordance with the attached work scope documents and terms and conditions, which form a part of this Agreement. ^Preferred Temperature Control Services ^Flex Temperature Control Services ^Preferred Automation Maintenance Services ^Flex Automation Services ^Preferred Fire Alarm Maintenance Services ^Fire Alarm Test and Inspect Services ^Preferred Security System Inspect Services ^Flex Security System Services ^Preferred Mechanical Maintenance Services ^Flex Mechanical Maintenance Services ^ServiceNetT" Remote Monitoring and Control Services ^EBI Services ® Energy Auditing and Analysis Services ^Online Services ^Advanced Support ^Site Services ^Hone~~vell Energy Analysis Reporting ^Air Filter Services ^Water Treatment Services ^Critical Parts Stocking ^Thermography Services ^Emergency Generator Services ^In Suite Services ^Remote Monitoring/Radionics ^Indoor Air Quality Auditing Services ^Service Management Software ^FM Worksite Energy Guarantee Special Provisions ^Other/Special Provisions ^Honeywell Users Group Contract Term: ~ Fifteen (15) years from the Effective Date ~~~/~/~ Customer _(Initials)~ /~ ~/ ~/~G~7//% f Honeywell _(Initials) /~~~~ ~~ (II~IITIALS) Contract Effective Date: Services shall commence upon completion of the Work Price for Year 1: Two Thousand, Five Hundred Sixty Three, ($2,563.00)(p1US applicable taxes). Payment Terms: semi-annual in advance ^ Sales Tax will be invoiced separately ~ Use Tax is included in the Price ^ This sale is tax exempt Renewal: The Contract Term will automatically be renewed for consecutive terms of one year unless terminated by either party by the delivery of written notice to the other at least sixty (60) days prior to the end of such term, or unless terminated as provided herein. Acceptance: This proposal and the pages attached shall become an Agreement in accordance with Article 13 below and only upon signature below by an authorized representative of HONEYWELL and CUSTOMER. Proposal Number 935-26001 Honeywell Service Agreement (Rev. 12/06) Page 1 of 13 Accepted by: HONEYWELL BUILDING S/OLUTIONS Signature: 'G`'~~~~ Name: ob Schneider Title: Field Service Leader Date: ~ /~/~-'~°~ PART A. Standard Terms and Conditions 1. WORKING HOURS CUSTOMER: City of Colu b'a eight urzyn all Signature: Name: Walt Fehst Title: Citv Manaeer Date: 1.1 Unless otherwise stated, all labor and services under this Agreement will be performed during the hours of 8:00 a.m. - 4:30 p.m. local time Monday through Friday, excluding federal holidays. If for any reason CUSTOMER requests HONEYWELL to furnish any labor or services outside of the hours of 8:00 a.m. - 4:30 p.m. local time Monday through Friday (or on federal holidays), any overtime or additional expenses, such as repairs or material costs not included in this Agreement, will be billed to and paid by CUSTOMER. 2. TAXES 2.1 CUSTOMER agrees to pay the amount of any new or increased taxes or governmental charges upon labor or the production, shipment, sale, installation, or use of equipment or software which become effective after the date of this Agreement. If CUSTOMER claims any such taxes do not apply to transactions covered by this Agreement, CUSTOMER shall provide HONEYWELL with a tax exemption certificate acceptable to the applicable taxing authorities. 3. PROPRIETARY INFORMATION 3.1 All proprietary information (as defined herein) obtained by CUSTOMER from HONEYWELL in connection with this Agreement will remain the property of HONEYWELL, and CUSTOMER will not divulge such information to any third party without prior written consent of HONEYWELL. The term "proprietary information" means written information (or oral information reduced to writing), or information in machine-readable form, including but not limited to software supplied to CUSTOMER which HONEYWELL deems proprietary or confidential and characterizes as proprietary at the time of disclosure to CUSTOMER by marking or labeling the same "Proprietary, "Confidential", or "Sensitive". The CUSTOMER shall incur no obligations hereunder with respect to proprietary information which: (a) was in the CUSTOMER' S possession or was known to the CUSTOMER prior to its receipt from HONEYWELL; (b) is independently developed by the CUSTOMER without the utilization of such confidential information of HONEYWELL; (c) is or becomes public knowledge through no fault of the CUSTOMER; (d) is or becomes available to the CUSTOMER from a source other than HONEYWELL; (e) is or becomes available on an unrestricted basis to a third party from HONEYWELL or from someone acting under its control; (f) is received by CUSTOMER after notification to HONEYWELL that the CUSTOMER will not accept any further information. 3.2 CUSTOMER agrees that HONEYWELL may use nonproprietary information pertaining to the Agreement, and the work performed under the Agreement, for press releases, case studies, data analysis, promotional purposes, and other similar documents or statements to be publicly released, as long as HONEYWELL submits any such document or statement to CUSTOMER for its approval, which will not be unreasonably withheld. 4. INSURANCE OBLIGATIONS 4.1 HONEYWELL shall, at its own expense, carry and maintain in force at all times from the effective date of the Contract through final completion of the work the following insurance. It is agreed, however, that HONEYWELL has the right to insure or self-insure any of the insurance coverages listed below: Commercial General Liability Insurance to include contractual liability, products/completed operations liability with a combined single limit of USD $2,000,000 per occurrence. Such policy will be written on an occurrence form basis; (b) If automobiles are used in the execution of the Contract, Automobile Liability Insurance with a minimum combined single limit of USD $2,000,000 per occurrence. Coverage will include all owned, leased, non-owned and hired vehicles. Proposal Number 935-26001 Page 2 of 13 Honeywell Service Agreement (Rev. 12/06) (c) Where applicable, "All Risk" Property Insurance, including Builder's Risk insurance, for physical damage to property which is assumed in the Contract. Workers' Compensation Insurance Coverage A -Statutory limits and Coverage B-Employer's Liability Insurance with limits of USD $1,000,000 for bodily injury each accident or disease. Proposal Number 935-26001 Page 3 of 13 Honeywell Service Agreement (Rev. 12/06) 4.2 Prior to the commencement of the Contract, HONEYWELL will furnish evidence of said insurance coverage in the form of a Memorandum of Insurance which is accessible at: http://places.honevwell.com/moi. All insurance required in this Article will be written by companies with a rating of no less than "A-, XII" by A.M. Best or equivalent rating agency. HONEYWELL will endeavor to provide a thirty (30) day notice of cancellation or non- renewal to the Customer. In the event that aself-insured program is implemented, HONEYWELL will provide adequate proof of financial responsibility. 5. HAZARDOUS SUBSTANCES. MOLD AND UNSAFE WORKING CONDITIONS 5.1 "Hazardous substance" includes all of the following, whether naturally occurring or manufactured, in quantities, conditions or concentrations that have, are alleged to have, or are believed to have an adverse effect on human health, habitability of a Site, or the environment: (a) any dangerous, hazardous or toxic pollutant, contaminant, chemical, material or substance defined as hazardous or toxic or as a pollutant or contaminant under state or federal law, and (b) any petroleum product, nuclear fuel or material, carcinogen, asbestos, urea formaldehyde, foamed-in-place insulation, polychlorinated biphenyl (PCBs), and (c) any other chemical or biological material or organism, that has, is alleged to have, or is believed to have an adverse effect on human health, habitability of a Site, or the environment. 5.2 "Mold" means any type or form of fungus or biological material or agent, including mold, mildew, moisture, yeast and mushrooms, and any mycotoxins, spores, scents, or by-products produced or released by any of the foregoing. This includes any related or any such conditions caused by third parties. 5.3 "Covered Equipment" means the equipment covered by the Services to be performed by HONEYWELL under this Agreement, and is limited to the equipment included in the respective work scope attachments. 5.4 CUSTOMER has not observed or received notice from any source (formal or informal) of (a) Hazardous Substances or Mold, either airborne or on or within the walls, floors, ceilings, heating, ventilation and air conditioning systems, plumbing systems, structure, and other components of the Site, or within furniture, fixtures, equipment, containers or pipelines in a Site; or (b) conditions that, to CUSTOMER'S knowledge, might cause or promote accumulation, concentration, growth or dispersion of Hazardous Substances or Mold on or within such locations. 5.5 HONEYWELL is not responsible for determining whether the Covered Equipment or the temperature, humidity and ventilation settings used by CUSTOMER, are appropriate for CUSTOMER and the Site except as specifically provided in an attached Work Scope Document. 5.6 If any such materials, situations or conditions, whether disclosed or not, are in fact discovered by HONEYWELL or others and provide an unsafe condition for the performance of the work or Services, the discovery of the condition shall constitute a cause beyond HONEYWELL'S reasonable control and HONEYWELL shall have the right to cease the work or Services until the area has been made safe by CUSTOMER or CUSTOMER'S representative, at CUSTOMER'S expense. HONEYWELL shall have the right to terminate this Agreement if CUSTOMER has not fully remediated the unsafe condition within sixty (60) days of discovery. 5.7 CUSTOMER represents that CUSTOMER has not retained HONEYWELL to discover, inspect, investigate, identify, prevent or remediate Hazardous Substances or Mold or conditions caused by Hazardous Substances or Mold. 5.8 TO THE FULLEST EXTENT ALLOWED BY LAW, CUSTOMER SHALL INDEMNIFY AND HOLD HONEYWELL HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS AND COSTS OF WHATEVER NATURE, INCLUDING BUT NOT LIMITED TO, CONSULTANTS' AND ATTORNEYS' FEES, DAMAGES FOR BODILY INJURY AND PROPERTY DAMAGE, FINES, PENALTIES, CLEANUP COSTS AND COSTS ASSOCIATED WITH DELAY OR WORK STOPPAGE, THAT IN ANY WAY RESULTS FROM OR ARISES UNDER THE BREACH OF THE REPRESENTATIONS AND WARRANTIES IN THIS SECTION THE EXISTENCE OF MOLD OR A HAZARDOUS SUBSTANCE AT A SITE, OR THE OCCURRENCE OR EXISTENCE OF THE SITUATIONS OR CONDITIONS DESCRIBED IN THIS SECTION, WHETHER OR NOT CUSTOMER PROVIDES HONEYWELL ADVANCE NOTICE OF THE EXISTENCE OR OCCURRENCE AND REGARDLESS OF WHEN THE HAZARDOUS SUBSTANCE OR OCCURRENCE IS DISCOVERED OR OCCURS. THIS INDEMNIFICATION SHALL SURVIVE TERMINATION OF THIS AGREEMENT FOR WHATEVER REASON. Proposal Number 935-26001 Page 4 of 13 Honeywell Service Agreement (Rev. ]2/06) 5.9 CUSTOMER is responsible for the containment of any and all refrigerant stored on or about the premises. CUSTOMER accepts all responsibility for and agrees to indemnify HONEYWELL against any and all claims, damages, or causes of action that arise out of the storage, consumption, loss and/or disposal of refrigerant, except to the extent HONEYWELL has brought refrigerant onsite and is directly and solely negligent for its mishandling. 6. WARRANTY AND LIMITATION OF LIABILITY 6.1 HONEYWELL will replace or repair any product HONEYWELL provides under this Agreement that fails within the warranty period (one) 1 year because of defective workmanship or materials, except to the extent the failure results from CUSTOMER negligence, or from fire, lightning, water damage, or any other cause beyond the control of HONEYWELL. This warranty applies to all products HONEYWELL provides under this Agreement, whether or not manufactured by HONEYWELL. The warranty is effective as of the date of CUSTOMER acceptance of the product or the date CUSTOMER begins beneficial use of the product, whichever occurs first. 6.2 THE WARRANTIES SET FORTH HEREIN ARE EXCLUSIVE, AND HONEYWELL EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, WHETHER WRITTEN OR ORAL, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE SERVICES, EQUIPMENT, AND MATERIALS PROVIDED HEREUNDER. HONEYWELL SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, ARISING FROM, OR RELATING TO, THIS LIMITED WARRANTY OR ITS BREACH. 6.3 HONEYWELL makes no representation or warranty, express, implied or otherwise, regarding Hazardous Substances or Mold. HONEYWELL shall have no duty, obligation or liability, all of which CUSTOMER expressly waives, for any damage or claim, whether known or unknown, including but not limited to property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value, adverse health effect or any special, consequential, punitive, exemplary or other damages, regardless of whether such damages may be caused by or otherwise associated with defects in the Services, in whole or in part due to or arising from any investigation, testing, analysis, monitoring, cleaning, removal, disposal, abatement, remediation, decontamination, repair, replacement, relocation, loss of use of building, or equipment and systems, or personal injury, death or disease in any way associated with Hazardous Substances or Mold. 7. INDEMNITY 7.1 HONEYWELL agrees to indemnify and hold CUSTOMER'S consultants, agents and employees harmless from all claims for bodily injury and property damages to the extent such claims result from or arise under HONEYWELL'S negligent actions or willful misconduct in its performance of the Work required under this Agreement, provided that nothing in this Article shall be construed or understood to alter the limitations of liability set forth in this agreement, or the indemnification set forth in Paragraph 5.4. Such indemnity obligation is valid only to the extent CUSTOMER gives HONEYWELL immediate notice in writing of any such claims and permits HONEYWELL, through counsel of its choice, to answer the claims and defend any related suit. Notwithstanding the foregoing, CUSTOMER agrees that HONEYWELL will not be responsible for any damages caused by Mold or any other fungus or biological material or agent, including but not limited to property damage, personal injury, loss of income, emotional distress, death, loss of use, loss of value, adverse health effect or any special, consequential, punitive, exemplary or other damages, regardless of whether such damages may be caused by or otherwise associated with defects in the Services. 8. LIMITATION OF LIABILITY S.1 IN NO EVENT SHALL HONEYWELL BE LIABLE FOR ANY SPECIAL, INCIDENTAL, INDIRECT, SPECULATIVE, REMOTE, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES, WHETHER ARISING OUT OF OR AS A RESULT OF BREACH OF CONTRACT, WARRANTY, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, MOLD, MOISTURE OR INDOOR AIR QUALITY, OR OTHERWISE, ARISING FROM, RELATING TO, OR CONNECTED WITH THE SERVICES, EQUIPMENT, MATERIALS, OR ANY GOODS PROVIDED HEREUNDER. Proposal Number 935-26001 Page 5 of 13 Honeywell Service Agreement (Rev. 12/06) 8.2 NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, IF A PORTION OF THE SERVICES INVOLVES THE INSTALLATION AND/OR MAINTENANCE OF SYSTEMS ASSOCIATED WITH SECURITY AND/OR THE DETECTION OF AND/OR REDUCTION OF RISK OF LOSS ASSOCIATED WITH FIRE, HONEYWELL'S TOTAL LIABILITY ARISING OUT OF OR AS A RESULT OF ITS PERFORMANCE UNDER THIS AGREEMENT SHALL NOT EXCEED THE AMOUNT OF THIS AGREEMENT. 9. EXCUSABLE DELAYS 9.1 HONEYWELL is not liable for damages caused by delay or interruption in Services due to fire, flood, corrosive substances in the air, strike, lockout, dispute with workmen, inability to obtain material or services, commotion, war, acts of God, the presence of Hazardous Substances or Mold, or any other cause beyond HONEYWELL'S reasonable control. Should any part of the system or any Equipment be damaged by fire, water, lightning, acts of God, the presence of Hazardous Substances or Mold, third parties or any other cause beyond the control of HONEYWELL, any repairs or replacement will be paid for by CUSTOMER. In the event of any such delay, date of shipment or performance will be extended by a period equal to the time lost by reason of such delay, and HONEYWELL will be entitled to recover from CUSTOMER its reasonable costs, overhead, and profit arising from such delay. 10. PATENT INDEMNITY 10.1 HONEYWELL shall, at its expense, defend or, at its option, settle any suit that may be instituted against CUSTOMER for alleged infringement of any United States patents related to the hardware or software manufactured and provided by HONEYWELL under this Agreement ("the equipment"), provided that a) such alleged infringement consists only in the use of such equipment by itself and not as part of, or in combination with, any other devices, parts or software not provided by HONEYWELL hereunder, b) CUSTOMER gives HONEYWELL immediate notice in writing of any such suit and permits HONEYWELL, through counsel of its choice, to answer the charge of infringement and defend such suit, and c) CUSTOMER gives HONEYWELL all needed information, assistance and authority, at HONEYWELL'S expense, to enable HONEYWELL to defend such suit. 10.2 If such a suit has occurred, or in HONEYWELL'S opinion is likely to occur, HONEYWELL may, at its election and expense: a) obtain for CUSTOMER the right to continue using such equipment; b) replace, correct or modify it so that it is not infringing; or c) remove such equipment and grant CUSTOMER a credit therefore, as depreciated. 10.3 In the case of a final award of damages in any such suit, HONEYWELL will pay such award. HONEYWELL will not, however, be responsible for any settlement made without its written consent. 10.4 THIS ARTICLE STATES HONEYWELL'S TOTAL LIABILITY AND CUSTOMER'S SOLE REMEDY FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY PATENT BY THE HARDWARE MANUFACTURED AND PROVIDED BY HONEYWELL HEREUNDER. 11. SOFTWARE LICENSE 11.1 All software provided in connection with this Agreement shall be licensed and not sold. The end user of the software will be required to sign a license agreement with provisions limiting use of the software to the equipment provided under these specifications, limiting copying, preserving conftdentiality, and prohibiting transfer to a third party. Licenses of this type are standard for computer-based equipment of the type covered by this Agreement. CUSTOMER shall be expected to grant HONEYWELL access to the end user for purposes of obtaining the necessary software license. 12. DISPUTE RESOLUTION 12.1 With the exception of any controversy or claim arising out of or related to the installation, monitoring, and/or maintenance of fire and/or security systems, the Parties agree that any controversy or claim between HONEYWELL and CUSTOMER arising out of or relating to this Agreement, or the breach thereof, will be settled by arbitration in a neutral venue, conducted in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. Any award rendered by the arbitrator will be final, and judgment may be entered Proposal Number 935-26001 Page 6 of 13 Honeywell Service Agreement (Rev. 12/06) upon it in accordance with applicable law in any court having jurisdiction thereof. Any controversy or claim arising out of or related to the installation, monitoring, and/or maintenance of systems associated with security and/or the detection of, and/or reduction of risk of loss associated with fire will be resolved in a court of competent jurisdiction. ARTICLE 13. ACCEPTANCE 13.1 This proposal and the pages attached shall become an Agreement only upon signature below by HONEYWELL and CUSTOMER. The terms and conditions are expressly limited to the provisions hereof, including Honeywell's Standard Terms and Conditions attached hereto, notwithstanding receipt of, or acknowledgment by, HONEYWELL of any purchase order, specification, or other document issued by CUSTOMER. Any additional or different terms set forth or referenced in CUSTOMER'S purchase order are hereby objected to by HONEYWELL and shall be deemed a material alteration of these terms and shall not be a part of any resulting order. ARTICLE 14. MISCELLANEOUS 14.1 This Agreement represents the entire Agreement between CUSTOMER and HONEYWELL for the Work described herein and supersedes all prior negotiations, representations or Agreements between the Parties related to the work described herein. 14.2 None of the provisions of this Agreement shall be modified, altered, changed or voided by any subsequent Purchase Order or other document unilaterally issued by CUSTOMER that relates to the subject matter of this Agreement. This Agreement may be amended only by written instrument signed by both Parties. 14.3 This Agreement is governed by the law of the State where the work is to be performed. 14.4 Any provision or part of this Agreement held to be void or unenforceable under any laws or regulations will be deemed stricken, and all remaining provisions will continue to be valid and binding upon HONEYWELL and CUSTOMER, who agree that this Agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 14.5 CUSTOMER may not assign its rights or delegate its obligations under this Agreement, in whole or in part, without the prior written consent of HONEYWELL. HONEYWELL may assign its right to receive payment to a third party. PART B. Special Terms and Conditions 15. COVERAGE 15.1 CUSTOMER agrees to provide access to all Equipment covered by this Agreement. HONEYWELL will be free to start and stop all primary equipment incidental to the operation of the mechanical, control, automation, and life safety system(s) as arranged with CUSTOMER'S representative. 15.2 It is understood that the repair, replacement, and emergency service provisions apply only to the Equipment included in the attached List of Covered Equipment. Repair or replacement ofnon-maintainable parts of the system such as, but not limited to, ductwork, piping, shell and tube (for boilers, evaporators, condensers, and chillers), unit cabinets, boiler refractory material, heat exchangers, insulating material, electrical wiring, hydronic and pneumatic piping, structural supports and other non-moving parts, is not included under this Agreement. Costs to repair or replace such non-maintainable parts will be the sole responsibility of CUSTOMER. 15.3 HONEYWELL will not reload software, nor make repairs or replacements necessitated by reason of negligence or misuse of the Equipment by persons other than HONEYWELL or its employees, or caused by lightning, electrical storm, or other violent weather or by any other cause beyond HONEYWELL'S control. HONEYWELL will provide such services at CUSTOMER'S request and at an additional charge. CUSTOMER is entitled to receive HONEYWELL'S then current preferred-CUSTOMER labor rates for such services. Proposal Number 935-26001 Page 7 of 13 Honeywell Service Agreement (Rev. 12/06) 15.4 HONEYWELL may install diagnostic devices and/or software at HONEYWELL'S expense to enhance system operation and support. Upon termination of this Agreement, HONEYWELL may remove these devices and return the system to its original operation. CUSTOMER agrees to provide, at its sole expense, connection to the switched telephone network for the diagnostic devices and/or software. 15.5 HONEYWELL will review the Services delivered under this Agreement on an annual basis, unless otherwise noted. 15.6 This Agreement assumes that the systems and/or Equipment included in the attached List of Covered Equipment are in maintainable condition. If repairs are necessary upon initial inspection or initial seasonal start-up, repair charges will be submitted for approval. Should these charges be declined, those non-maintainable items will be eliminated from coverage under this Agreement and the price adjusted accordingly. 15.7 In the event that the system or any equipment component thereof is altered, modified, changed or moved, this Agreement may be immediately adjusted or terminated, at HONEYWELL'S sole option. HONEYWELL is not responsible for any damages resulting from such alterations, modifications, changes or movement 15.8 HONEYWELL is not responsible for maintaining a supply of, furnishing and/or replacing lost or needed chlorofluorocarbon (CFC) based refrigerants not otherwise required under this Agreement. CUSTOMER is solely responsible for the cost of material and labor of any such refrigerant not otherwise provided for under this Agreement at current market rates. 15.9 Maintenance, repairs, and replacement of Equipment parts and components are limited to restoring to proper working condition. HONEYWELL is not obligated to provide replacement software, equipment, components and/or parts that represent a significant betterment or capita] improvement to CUSTOMER'S system(s) hereunder. 15.10 Unless otherwise specified, CUSTOMER retains all responsibility for maintaining LANs, WANs, leased lines and/or other communication mediums incidental or essential to the operation of the system(s) or Equipment found included in the attached List of Covered Equipment. 15.11 CUSTOMER will promptly notify HONEYWELL of any malfunction in the system(s) or Equipment covered under this Agreement that comes to CUSTOMER'S attention. 16. TERMS OF PAYMENT 16.1 CUSTOMER will pay or cause to be paid to Honeywell the full price for the Services as specified on the first page of this Agreement. Honeywell will submit semi-annual invoices to Customer in advance for Services to be performed during the subsequent billing period, and payment shall be due within twenty (20) days after CUSTOMER'S receipt of each such invoice. Payments for Services past due more than five (5) days shall accrue interest from the due date to the date of payment at the rate of one and one-half percent (1.5%) per month, compounded monthly, or the highest legal rate then allowed. CUSTOMER will pay all attorney and/or collection fees incurred by HONEYWELL in collecting any past due amounts. 16.2 Price Adiustment. HONEYWELL may annually adjust the amounts charged for the Services provided. 17. TERMINATION 17.1 CUSTOMER may terminate this Agreement for cause if HONEYWELL defaults in the performance of any material term ofthis Agreement, or fails or neglects to carry forward the Services in accordance with this Agreement, after giving HONEYWELL written notice of its intent to terminate. If, within thirty (30) days following receipt of such notice, HONEYWELL fails to cure or perform its obligations, CUSTOMER may, by written notice to HONEYWELL, terminate this Agreement. 17.2 HONEYWELL may terminate this Agreement for cause (including, but not limited to, CUSTOMER'S failure to make payments as agreed herein) after giving CUSTOMER written notice of its intent to terminate. If, within thirty (30) days following receipt of such notice, CUSTOMER fails to make the payments then due, or otherwise fails to cure or perform its obligations, HONEYWELL may, by written notice to CUSTOMER, terminate this Agreement and recover from CUSTOMER payment for Services performed and for losses sustained for Proposal Number 935-26001 Page 8 of 13 Honeywell Service Agreement (Rev. 12/06) materials, tools, construction equipment and machinery, including but not limited to, reasonable overhead, profit and applicable damages. 17.3 Cancellation -This Agreement may be canceled at HONEYWELL'S option in the event HONEYWELL equipment on CUSTOMER'S premises is destroyed or substantially damaged. Likewise, this schedule may be canceled at CUSTOMER'S option in the event CUSTOMER'S premises are destroyed. In the event of such cancellation, neither party shall be liable for damages or subject to any penalty, except that CUSTOMER will remain liable for Services rendered to the date of cancellation. 18. DEFINITIONS 18.1 "Covered Equipment" means the equipment and software covered by the Services to be performed by HONEYWELL under this Agreement, and is identified in the respective work scope attachments under the "List of Covered Equipment". ~s.z.~ "Services" means those services and obligations to be undertaken by HONEYWELL in support of, or to maintain, the Covered Equipment, as more fully detailed in the attached work scope document(s), which are incorporated herein. ARTICLE 19. APPROPRIATIONS AND ESSENTIAL USE 19.1 CUSTOMER reasonably believes that sufficient funds can be obtained to make all payments for the initial term, as described in Paragraph 3.1. of the Agreement. CUSTOMER hereby covenants that it shall do all things lawfully within its power to obtain funds from which such payments may be made, including making provisions for such payments, to the extent necessary, in each budget submitted for the purpose of obtaining funding, using its bona fide best efforts to have such portion of the budget approved and exhausting all available administrative reviews and appeals in the event such portion of the budget is not approved. It is CUSTOMER'S intent to make the payments for the initial term if funds are legally available therefore and in that regard CUSTOMER represents that (a) the use of the Equipment and Services is essential to its proper, efficient and economic functioning or to the services that is provided to its citizens; (b) CUSTOMER has an immediate need for and expects to make immediate use of substantially all the Equipment and Services, which need is not temporary or expected to diminish in the foreseeable future; and (c) the Equipment and Services shall be used by CUSTOMER only for the purpose of performing one or more of its governmental or proprietary functions consistent with the permissible scope of its authority. 19.2. In the event no funds or insufficient funds are appropriated and budgeted for the acquisition, retention or operation of the Equipment and Services under the Agreement, then CUSTOMER shall, not less than sixty (60) days prior to the end of such applicable fiscal period, in writing, notify HONEYWELL (and its assignee, if any) of such occurrence. The Agreement shall thereafter terminate and be rendered null and void on the last day of the fiscal period for which appropriations were made without penalty, liability or expense to CUSTOMER of any kind, except as to (i) the portions of the payments herein agreed upon for which funds have been appropriated and budgeted or are otherwise available, and (ii) CUSTOMER'S other obligations and liabilities under the Agreement relating to, accruing or arising prior to such termination. In the event of such termination, CUSTOMER agrees to peaceably surrender possession of any Equipment (provided by HONEYWELL under the Agreement) to HONEYWELL (or its assignee, if any) on the date of such termination, packed for shipment in accordance with manufacturer's specifications and eligible for manufacturer's maintenance, and freight prepaid and insured to any location in the continental United States designated by HONEYWELL, all at CUSTOMER'S expense. HONEYWELL (or its assignee, if any) may exercise all available legal and equitable rights and remedies in retaking possession of any Equipment provided by HONEYWELL under this Agreement. 19.3 Notwithstanding the foregoing, CUSTOMER agrees (a) that if the Agreement is terminated in accordance with the preceding paragraph, CUSTOMER shall not purchase, lease or rent equipment which performs the same functions as, or functions taking the place of, those performed by the Equipment nor shall it contract for any services similar to or that take the place of the Services provided under the Agreement, and shall not permit such functions to be performed by its own employees or by any agency or entity affiliated with or hired by CUSTOMER for the balance of the f scal period in which such termination occurs or the next succeeding fiscal period thereafter, and (b) that it shall not, during the initial term, give priority in the application of funds to any other functionally similar equipment or services. Proposal Number 935-26001 Page 9 of 13 Honeywell Service Agreement (Rev. 12/06) Ener~v Guarantee Special Provisions These Special Provisions are incorporated herein by reference and made a part of the Honeywell International Inc., Automation and Control Solutions Agreement. 1.1 Incorporated Documents -Attachment F, Attachment G, and Exhibits to Attachment G are hereby made an integral part of this SUPPORT SERVICES AGREEMENT, insofar as same is applicable to the work of the Energy Guarantee Auditing and Analysis Services, as if specifically written herein, and unless otherwise hereinafter specified. 1.2 Energy Guarantee Performance Period Auditing Activities - In coordination with, or in addition to, any Energy Auditing and Analysis Services, HONEYWELL will perform Measurement & Verifcation (M&V) activities as described in Attachment G. 1.3 Remote Diagnostics -CUSTOMER shall allow HONEYWELL to perform remote diagnostics on all equipment associated with the Energy Savings Guarantee for operational compliance with manufacturer's specifications, HONEYWELL specifications, requirements of Attachment F, and requirements of Attachment G . HONEYWELL may install diagnostic devices at HONEYWELL 's expense to monitor and/or enhance system operation and support. Upon termination of this Agreement, HONEYWELL may remove these devices and return the system to original operation. 1.4 Potential-To-Save - Verification of an ECM's potential to generate the proposed energy cost avoidance is satisfied upon CUSTOMER'S signing of Attachment J or an equivalent Delivery and Acceptance Certificate. (See Attachment F -Definitions: "Option A". 1.5 Energy Purchasing Alternatives - It is understood that there is no requirement for HONEYWELL to perform evaluations of energy purchasing alternatives or perform rate negotiations under this contract. Switching from the respective electric and natural gas local distribution companies (LDCs) to the respective marketers brokers/suppliers (SUPPLIERs) for the commodity portion of gas and electricity wiU be the result of Contract(s) between CUSTOMER and SUPPLIER(S). HONEYWELL does not assure the provision of gas or electricity, and all incentives and payments associated with the Contract(s) between CUSTOMER and SUPPLIER(S) are the responsibility of the Parties to that Contract. 1.6 Utility Rebates - It is understood that all utility rebates and/or refunds are the result of an agreement between CUSTOMER and the utility company and HONEYWELL assumes no responsibility for either obtaining said rebates and/or refunds or for the quantity of said rebates and/or refunds. It is further understood that any evaluation and presentation of options by HONEYWELL for potential utility rebates and credits available to CUSTOMER from utility companies is limited to those identified during contract negotiation and during installation. Assisting the CUSTOMER in securing identified rebates is understood to be a construction and installation task and is not part of these on-going services. 1.7 Recommendations - It is understood that HONEYWELL will use its best professional judgment in evaluating energy use characteristics, but assumes no responsibility for financial performance related to any recommendations. 1.8 CUSTOMER Responsibilities for Documentation - It is the responsibility of the CUSTOMER to provide to the M&V Specialist, at minimum, on a quarterly basis, except as modified below: 1.8.1 Verification that equipment installed to perform the ECMs has been properly maintained, including but not limited to provision of maintenance records. 1.8.2 Current status of the buildings (i.e., occupancy level and use, hours of operation, etc.). 1.8.3 Records of CUSTOMER initiated changes in equipment setpoints, startlstop conditions, usage patterns. 1.8.4 Records of CUSTOMER initiated changes in operation ofinechanical-electrical systems, which may impact the ECMs. Proposal Number 935-26001 Page 10 of 13 Honeywell Service Agreement (Rev. 12/06) 1.8.5 Records regarding addition or deletion of equipment or building structure, which may impact the ECMs or the building energy consumption. 1.8.6 Copies of ail utility information including monthly utility bills and utility summary data on a monthly basis, and access to utility accounts through an authorization by the CUSTOMER to the utility providers to allow the release of data to a HONEYWELL representative. 1.9 CUSTOMER Responsibilities for Notification - HONEYWELL and CUSTOMER division of responsibilities and risk allocation is described in Attachment F and Attachment G. It is the responsibility of the CUSTOMER to notify HONEYWELL of all changes in production, occupancy, building load, conditioned building area, equipment operation, and scheduling, etc. from the base]ine period. Deviation from the baseline period will result in Baseline Adjustments to normalize the Base Year energy use to Current Year conditions. It will be the responsibility of the CUSTOMER to investigate and correct any reported deficiencies in the current operations in the buildings that impact the ECMs. 1.10 CUSTOMER Responsibilities for Maintenance -During the term of this Agreement, for all equipment provided or modified as per Attachment A -Scope of Work, the CUSTOMER shall perform on-going maintenance and accomplish component replacement and equipment repairs in accordance with manufacturer's standards and practices and take all reasonable measures to insure the equipment is operating at full efficiency. Component replacement and equipment repairs must be accomplished in a timely fashion. Additionally, CUSTOMER shall insure such equipment is operated at all times in accordance with applicable manufacturer's specifications, HONEYWELL specifications, and the requirements of Attachments F and G contained herein. For all non- HONEYWELL maintenance actions, CUSTOMER shall document and make available to HONEYWELL maintenance dates and tasks accomplished, the start date and duration of all deficient equipment operation and the subsequent corrective action and/or repair dates. Failure of the CUSTOMER to operate the equipment per the specifications, repair any deficiencies in a timely manner, and perform the ongoing maintenance functions in accordance with the standards and practices during the Guarantee period will allow HONEYWELL to adjust the Guarantee accordingly. CUSTOMER shall replace any failed equipment or component no longer warranted by HONEYWELL or a HONEYWELL subcontractor, with equipment or components of equal or greater efficiency value than installed by HONEYWELL, for the full contract guarantee term. 1.11 Energy Cost Avoidance -Energy Cost avoidance may also include, but is not limited to, savings from demand charges, power factor correction, taxes, ratchet charges, rate changes and other utility tariff charges that are reduced as a result of the HONEYWELL involvement to the extent permitted by the Agreement. Proposal Number 935-26001 Page 11 of 13 Honeywell Service Agreement (Rev. 12/06) Ener~v Guarantee Auditine and Analysis Services 1.1 Scope -HONEYWELL will implement Energy Guarantee Auditing and Analysis Services for CUSTOMER'S facilities, energy conservation measures (ECMs), and/or utility meters in coordination with Attachment F -Energy Guarantee and Attachment G -Schedule of Savings. Attachment G, as used herein, includes the Exhibits to Attachment G. HONEYWELL will perform the services outlined in Section 1.4. List of Covered Facilities, Meters, ECMs by Service Offering: (a) (b) (c) d) Facility LDC-Meter # / Utlllty Type ECMs (list only ECMs associated with meter listed in column (b) ) Related M&V Offering Subsection Murzyn Hall EI@C. HVAC Upgrades, Lighting, Envelope upgrades 1.4.1 & 1.4.3 Murzyn Hall Natural Gas HVAC Upgrades, Lighting, Envelope upgrades 1.4.1 & 1.4.3 1.2 Coverage -This Agreement includes all labor, travel, and expenses to perform the services and frequency described in Section 1.4. Services not explicitly described in Section 1.4, including CUSTOMER Guarantee Responsibilities, are not included. It is understood that it will be the responsibility of the CUSTOMER to investigate and correct any deficiencies not covered under the SUPPORT SERVICES AGREEMENT. 1.3 Incorporated Documents - The Energy Guarantee Special Provisions, Attachment F -Energy Guarantee, Attachment G -Schedule of Savings, and Exhibits to Attachment G are hereby made an integral part of this SUPPORT SERVICES AGREEMENT, insofar as same is applicable to the work of the Energy Auditing and Analysis Services, as if specifically written herein, and unless otherwise hereinafter specified. 1.4 M&V Offerings - In coordination with section 1.1, HONEYWELL will perform the Measurement & Verification (M&V) offerings checked below: ® 1.4.1 Retrofit Isolation EnerEV Audit for Option A Verified ECMs - HONEYWELL will provide Option A energy guarantee auditing services as detailed in Attachment F, Attachment G, and Exhibits to Attachment G for specific Energy Conservation Measures (ECMs) identified in Attachment Gand/or Exhibits to Attachment G as using Option A methodologies for Measurement and Verification. HONEYWELL will provide this one-time determination of the quantity of energy avoidance of the CUSTOMER'S facility for the First Guarantee Year only. Option A methods will be applied on an ECM specific basis (i.e., isolated to the retrofit) and Energy Cost Avoidance for a Guarantee Year will be quantified and summarized on an ECM basis. After the ECM's potential-to- save has been verified (section 1.3) HONEYWELL shall either stipulate the quantity of cost avoidance or determine the cost avoidance from engineering calculations and measurement of specific variables. Utility bill auditing (Option C) and reconciliation of Option A results to utility meter bill data is not included. The Option AB retrofit isolation method was selected by the CUSTOMER to provide an economical reconciliation method and to minimize the interactive effects on the determination of cost avoidance due changes to the site or facilities from the baseline conditions. HONEYWELL will provide a single (1) reporting submission of the determination of energy avoidance for the First Guarantee Year. The Energy Avoidance quantified in the First Guarantee Year will be stipulated as the annual Energy Avoidance for each Guarantee Year of the remaining contract term. The Energy Cost Avoidance for every year of the performance period is quantified based on the Energy Avoidance determined in the First Guarantee Year multiplied by the applicable energy rate as defined in Attachment G. It is the responsibility of the CUSTOMER to provide copies of utility bills for the meters affected by the ECMs, for the purposes of calculating the current utility prices only. If no utility data is provided within 2 weeks of CUSTOMER's receipt, the baseline energy costs as defined in Attachment G will be used. Work Coverage: Natural Gas & Electric Meters listed in Attachment G. Exhibit G-5 Term Coverage: Year 1 Monitorine; Year 2 to End of Term stipulated based on Year 1 Results Proposal Number 935-26001 Page 12 of 13 Honeywell Service Agreement (Rev. 12/06) Option A Audit Report section will be submitted: ®1-Time Only ^ Quarterly ^ Semi-Annually ®Annually ® 1.4.3 Energy Advisory Report-Level 2 (With Travel & On-Site Services) -HONEYWELL will conduct walk-through observations of the ECMs noted under Work Coverage for this section. It will be the responsibility of the CUSTOMER to investigate deficiencies beyond the contracted site visit frequency. It will be the responsibility of the CUSTOMER to correct the reported deficiencies. The report will be limited to information that can be inferred from non-intrusive observations made during the allotted time for the walk-through observation and from the documents provided by the CUSTOMER to HONEYWELL. During the walk through, Honeywell will: 1. Verify through visual observation that each ECM is still installed. 2. Verify to the limits of visual observation that each ECM is still functional. Additional verification will be performed via service records provided. 3. Record current manual set points and manual settings. Record changes in the operation, control sequences and control set points of the ECMs from original installed conditions. 4. Record observations about the current status of the building (i.e. occupancy, use), compare to CUSTOMER records, and compare against the contractual baseline and required post-retrofit operating conditions. 5. Record observed addition or deletion of site equipment, which may impact the ECMs or the building energy consumption and compare to CUSTOMER records. 6. Record observations regarding other changes on-site that may impact the ECMs or the building energy consumption. Site walk-through observations will be conducted: ^ Quarterly ^Serni-Annually ®Annually. Site walk-through observations are limited to no more than: one 1 trip per year, and limited to one (11 day(s) per trip. Work Coverage: ECM's noted in section 1.1 and further specified in attachment A Term Coverage: Year 2 to Bnd of Term Proposal Number 935-26001 Honeywell Service Agreement (Rev. 12/06) Page 13 of 13 ATTACHMENT E PAYMENT SCHEDULE 1. The following payment schedule has been established for the Work: 1. 1 The payment schedule reflected below has been established for the Work. Payment shall be made net thirty (30) days of invoice date. If issues surrounding lack of payment are not remedied within ten (10) business days, HONEYWELL may suspend all Work until payment is made. Total payments are: $930,227 I. Progress Payments: Amouni Due Upon contract execution: 279,068 Progress Payments 651, I ~9 Total Contract Amount 930,227 The following payment schedule has been established for Support Services: 2.1 The first invoice will be issued upon completion of the Work and prior to commencement of Support Services and CUSTOMER shall pay or cause to be paid to HONEYWELL the full price for the Services as specified in Attachment D. Attachment E (Rev. 1 I/06) Page 1 of 1 ATTACHMENT F ENERGY GUARANTEE DEFINITIONS When used in this Agreement, the following capitalized words shall have the meanings ascribed to them below: "Baseline" is the description outlined in Attachment G, that defines the Baseline Usage Baseline L'sage Unit Costs and facilities, systems, or equipment operations and characteristics, and environmental conditions that are to be used as the benchmark for determining cost avoidance. "Baseline Period" is the period of time (specified in Section 1 of Attachment G) coordinated with the Baseline Usage for the purpose of utility bill analysis (see "Option C") to allow the comparison of a Guarantee Year against a Baseline. The Baseline Period may not always be one contiguous element of time and may be different from a 365- day annual period. Baseline information from non-contiguous elements of time may be normalized and assigned to a specified Baseline Period. "Baseline Usage or Demand" the calculated or measured energy usage (demand) by a piece of equipment or a site prior to the implementation of the ECMs. Baseline physical conditions, such as equipment counts, nameplate data, and control strategies, will typically be determined through surveys, inspections, and/or metering at the site. "Baseyear or Base Year" is equivalent to "Baseline" and may not always be one contiguous element of time and may be different from a 365-day annual period. "Construction Phase or Period" The time period between the start of the project installation and the date of Final Project Acceptance. "Construction Savings Period" The time period(s) between the completion of installation and start of providing substantial benefit to the CUSTOIv1ER for each single specific ECM vs. the time of Final Project Acceptance. "Commissioning Phase or Period" The phase, before Final Project Acceptance, when (1) the functional ability of the installed equipment or systems, and/or modified equipment or systems to operate in conformity with the design intent is docmnented and verified and (2) the potential-to-save of said equipment and systems is documented and verified for the first time. "Cost Adjustments" means for each year following the first year of the Support Services, HONEYWELL, may, in its sole discretion increase the annual Operational Cost Savings in an amount matching the adjustment to the Support Services fee. "Cost Avoidance" means the difference between the actual cost incurred during a selected time period versus what the cost tvoarld ha>>e been had the cost avoidance strategy not been implemented. "Covered Systems and Equipment" as used in this Attachment F means the systems and equipment identified in Attachment A (Scope of Work) and Attachment D (Support Services). "Energy and Operational Cost Avoidance Guarantee Practices" are those practices identified in Attachment G, intended to achieve avoided costs in energy and/or operating expenses. "Energy Auditing" means the act of Measurement and Verification (M&V) to determine the Guarantee Savings. "Energy Costs" may include the cost of electricity and fuels to operate HVAC equipment, facility mechanical and fighting systems, and energy management systems, and the cost of water and sewer usage, as applicable. "ECM" The Energy Conservation Measure (ECM) is the installation of equipment or systems, or modification of equipment or systems as described in Attachment A, for the purpose of reducing utility (energy, water, etc.) consumption and demand and costs and/or non-utility (O&M, operational) costs. "Facilities" shall mean those buildings where the energy and operational cost savings will be realized. "F.E.M.P." shall mean the Federal Energy Management Program of the U.S. Department of Energy and its Measurement and Verification Guidelines for Federal Energy Projects (DOE/GO-102000-0960, September 2000). The F.E.M.P. guidelines classify measurement & verification approaches as Option A, Option B, Option C, and Attachment F (Rev. 10/06) Page 1 of 9 Option D. The F.E.M.P. Guideline was developed based on the International Performance Measurement and Verification Protocol (LP.M.V.P.). The focus of the F.E.M.P. NI&V Guidelines is on choosing the 1\9&V option and method most appropriate for specific projects. "Financing Document" refers to that document executed between CUSTOI\~IER and athird-party financing entity providing for payments from CUSTOMER to third-party financing entity. "Final Project Acceptance" refers to CUSTOMER acceptance of the installation of the EC~•ls as described in Attachment A. "First Guarantee Year" is defined as the period beginning on the first (I st) day of the month following the date of Final Project Acceptance of the Work installed and ending on the day prior to the first (1st) anniversary thereof. "Guarantee Period" is defined as the period beginning on the first (1st) day of the First Guarantee Year and ending on the last day of the final Guarantee Year. Also known as the "lvfeasurement and Verification Phase" or "Performance Period". "Guarantee Year" is defined as the First Guarantee Year and each of the successive twelve (12) month periods commencing on the anniversary of the coinmencement of the First Guarantee Year throughout the Tertn of this Agreement. "Guaranteed Savings" is defined as the amount of avoided Energy and Operational Costs necessary to pay for the cost of the Work and Support Services incurred by CUSTOMER in each Guarantee Year [as identified in Section 3.1 hereofJ. "I.P.M.V.P." International Performance Ivieasurement and Verification Protocol (July 1997) provides an overview of current best practice techniques available for measurement & verification of performance contracts. This document is the basis for the F.E.M.P. protocol. The techniques are classified as Option A, Option B, Option C, and Option D. "Measurement and Verification Plan" (M&V Plan) is defined as the plan providing details on how the Guarantee Savings will be verified. "Measurement and Verification Phase or Period" The specific time period designated to demonstrate the savings and/or performance achieved from the energy retrofit. The savings will be verified based on the Measurement and Verification procedures as outlined in Attachment G. Also known as the "Guarantee Period" or "Performance Period". "Operational Costs" commonly referred to as O&M costs, shall include the cost of operating and maintaining the Facilities, such as, but not limited to, the cost of inside and outside labor to repair and maintain affected systems and equipment, the cost of custodial supplies, the cost of replacement parts, the cost of deferred maintenance, the cost of lamp and ballast disposal, and the cost of new capital equipment. "Option A" is a verification approach that is designed for projects in which the potential to perform needs to be verified, but the actual on-going, year over year performance can be stipulated based on the results of the "potential to perform and generate Savings" verification and engineering calculations. Option A involves procedures for verifying that: • Baseline conditions have been properly defined; and • 'The equipment and/or systems that were contracted to be installed have been installed; and • The installed equipment components or systems, nt the end ojthe construction period, meet the specifications of the contract in terms of quantity, quality, and rating; and The installed equipment is operating and performing in accordance with the specifications in the contract and meeting all functional tests. • The "potential to perform and generate Savings" may involve pre-retrofit and post-retrofit measurements or may be based on manufacturer and vendor data. "Option B" is for projects in which the potential to perform and generate Savings needs to be verified; and actual performance needs to be measured (verified). Option B involves procedures for verifying the same items as Option Attachment F (Rev. 10/06) Page 2 of 9 A plus verifying actual performance of equipment component or system. Performance verification techniques involve engineering calculations with metering and monitoring for verifying that: • The installed equipment components or systems, each year of the performance period, meet the specifications of the contract in terns of quantity. quality and rating, and operation and functional performance. "Option C" is also for projects in which the potential to perform needs to be verified and actual performance during the term of the contract needs to be verified. Option C involves procedures for verifi ing the same items as Option A plus verifying achieved energy savings during the term of the contract using whole building utility meter analysis performance verification techniques . "Option D" is a verification technique where calibrated simulations of the baseline energy use and/or calibrated simulations of the post-installation energy consumption are used to measure Savings from the Energy Conservation ;vfeasures. Option D can involve measurements of energy use both before and after the Retrofit for specific equipment or energy end ttse as needed to calibrate the simulation program. Periodic inspections of the equipment may also be warranted. Energy consumption is calculated by developing calibrated hourly simulation models of whole-building energy use, or equipment sub-systems in the baseline mode and in the post-installation mode and comparing the simulated annual differences for either an average year or for conditions that correspond to the specific year during either the baseline or post-installation period. "Performance Phase or Period" Also know as the "Guarantee Period" or "Measttretnent and Verification Period" "Potential-to-Save" or "Potential-to-Perform" by an ECM is satisfied when a measure is properly installed and has the potential to generate predicted levels of energy cost avoidance. Verification of an ECM's "potential-to-save" is satisfied upon CUSTOMER'S signing of Attachment J or an equivalent Delivery and Acceptance Certificate. Also see "Option A". "Retrofit" is the work provided by HONEYWELL as defined by the "ECMs." "Retrofit and Support Costs" are the sum of the (i) the financing payments required to be made by CUSTOMER pursuant to the Financing Document; and (ii) the payments required to be made by CUSTOMER for Support Services. "Retrofit Isolation Method (RIM) or Approach" is an M&V approach that verifies the Guarantee Savings using techniques that isolate the energy use of the ECM and affected systems separate from the energy use of the rest of the facility. This method is used to mitigate the interactive energy effects of changes made to the facility outside of HONEYWELL'S control. "Savings" is defined as avoided, defrayed, or reallocated costs. "Support Services" is defined as the services to be provided by HONEY WELL and described in Attachment D. "Term" shall have the meaning as defined in Section 2 hereof. "Total Guarantee Year Savings" is defined as the summation of avoided Energy and Operational Costs realized by Facilities in each Guarantee Year as a result of the Retrofit and Support Services provided by HONEYWELL as well as Excess Savings, if any, carried forward from previous years. 2. TERM AND TERMINATION 2.1 Guarantee Term. The Term of this Guarantee Period shall commence on the first (lst) day of the month following the date of Final Project Acceptance of the Work installed pursuant to this Agreement and shall terminate at the end of the Guarantee Period unless terminated earlier as provided for herein. The Term of this Guarantee Period is defined in Section 1 of Attachment G. 2.2 Guarantee Termination. Given that both parties recognize that the energy and operational savings can only be achieved if the systems and equipment are properly maintained throughout the Guarantee Tenn, Customer agrees that the savings guarantee set forth herein is dependent upon the continuation of any existing Support Services Agreements by HONEYWELL or by OTHERS. Customer shall continue to contract with Honeywell for the Energy Auditing and Analysis Services set forth in this Agreement for the entire term of the savings guarantee Attachment F (Rev. 10/06) Page 3 of 9 term. Should this Agreement, or other existing Agreements covering systems and equipment not covered in this Agreement, be terminated (including, as applicable, the Support Services Agreement -Attachment D) in whole or in part for any reason prior to the end of the Term, the Guarantee for the Guarantee Year in which such termination becomes effective shall be prorated as of the effective date of such termination, with a reasonable adjustment for seasonal fluctuations in Energy and Operational Costs, and the Guarantee for all subsequent Guarantee Years shall be null and void. 3. SAVINGS GUARANTEE 3.1 Guarantee Savings. HONEYWELL guarantees to CUSTOIv1ER that the identified Facilities will realize the total energy and operational cost avoidance through the combined value of all EC~~1s over the Term of the contract as defined in Section 1 of Attachment G. In no event shall the savings guarantee provided herein exceed the total installation, support services, and financing costs for the Work under this Agreement. 3.1.1 Additional Savings Before Final Proiect Acceptance. All energy and operational cost avoidance realized by CUSTOMER that result from activities undertaken by HONEYWELL prior to Final Project Acceptance, including any utility rebates or other incentives earned as a direct result of the installed Energy Conservation Measures or Support Services provided by HONEYWELL, will be applied toward the Guaranteed Savings for the First Guarantee Year. 3.1.2 Additional Savings After Final Proiect Acceptance. Additional energy and/or operational cost avoidance, including any utility rebates or other incentives, that can be demonstrated, or earned, as a result of HONEYWELL'S efforts that result in no additional costs to CUSTOMER beyond the costs identified in this Agreement will be included in the guarantee savings reconciliation report for the applicable Guarantee Year(s). 3.1.3 Cumulation of Savings. The Guaranteed Savings in each Guarantee Year are considered satisfied if the Total Guarantee Year Savings for such Guarantee Year equals or exceeds the Retrofit and Support Costs for such Guarantee Year, or the amount identified in Section 1 of Attachment G hereto. 3.1.4 Excess Savings. [n the event that the Total Guarantee Year Savings in any Guarantee year exceed the Guaranteed Savings required for that Guarantee Year, such Excess Savings shall be carried forward and applied against Guaranteed Savings shortfalls in any future Guarantee Year. In the event HONEYWELL has previously paid CUSTOMER for a Guaranteed Savings shortfall in a past Guarantee Year, pursuant to Section 3.1.5, then Excess Savings in current Guarantee Year shall be billed to CUSTOMER (but only up to any amounts previously paid by HONEYWELL for a shortfall and CUSTOMER shall pay HONEYWELL within thirty (30) days after receipt of such bill, and any remaining Excess Savings shall be carried forward and applied against Guaranteed Savings shortfalls in any future Guarantee Year. 3.1.5 Savings Shortfalls. In the event that the Total Guarantee Year Savings in any Guarantee Year is less than the Guaranteed Savings required for that Guarantee Year, after giving credit for any Excess Savings carried forward from previous Guarantee Years pursuant to Section 3.1.4, HONEYWELL shall, upon receipt of written demand from CUSTOMER, compensate CUSTOMER the amount of any such shortfall, in stick form as agreed to by the parties, limited by the value of the guarantee, within forty-five (45) days. Resulting compensation shall be HONEYWELL'S sole liability for any shortfall in the Guaranteed Savings. 3.1.6 Aggregation of Savings. The parties mutually agree that the Guarantee Savings for this Agreement and the Guarantee Savings for all previous active Energy and Operational Guaranteed Cost Avoidance projects for this CUSTOMER shall be combined each year until the end of the original guarantee term for each project. Throughout the duration of the term for the each specific phase the total savings will be utilized as an aggregate in satisfying the sum of the respective guarantees. 3.2 Savings Reconciliation Documentation. HONEYWELL will provide CUSTOMER with a guarantee savings reconciliation report after each Guarantee Year. CUSTOMER will assist HONEYWELL in generating the savings reconciliation report by providing HONEYWELL with copies of all bills pertaining to Energy Costs within two (2) weeks following the CUSTOMER'S receipt thereof, together with access to relevant records relating to such Energy Costs. CUSTOMER will also assist HONEYWELL by permitting access to any maintenance records, drawings, or other data deemed necessary by HONEYWELL to generate the said report. Data and calculations utilized by HONEYWELL in the preparation of its guarantee cost savings reconciliation report will be made available to CUSTOMER, along with such explanations and clarifications as CUSTOMER may reasonably request. Attachment F (Rev. 10/O6) Page 4 of 9 3.2.1 Acceptance of Guarantee Reconciliation. At the end of each Guarantee Year CUST0~IER will have forty-five (45) days to review the guarantee savings reconciliation report and provide written notice to HONEYWELL of non-acceptance of the Guarantee Savings for that Guarantee Year. Failure to provide written notice within forty-five (45) days of the receipt of the guarantee savings reconciliation report will deem it accepted by CUSTOMER. 3.2.2 Guarantee Savings Reconciliation. Guarantee Savings will be determined in accordance with the methodology(s), operating parameters, formulas, and constants as described below andior defined in Attachment G and/or additional methodologies defined by HONEYWELL that may be negotiated with CUSTOMER at any time. For reconciliation of Guarantee Savings employing the method of utility bill analysis consistent with F.E.M.P. Option C: Energy usage for the Facilities for such Guarantee Year will be summarized and compared with the adjusted Baseline Period energy usage for the Facilities through the use of energy accounting software. The difference between the adjusted Baseline Period energy usage and the Guarantee Year energy usage will be the Energy avoidance. The difference between the adjusted Baseline Period energy usage multiplied by the applicable energy rate as defined in Attachment G, and the Guarantee Year energy usage multiplied by the applicable energy rate as defined in Attachment G, will be used to calculate the Energy Cost avoidance. Energy Cost avoidance may also include, but are not limited to, Savings from demand charges, power factor correction, taxes, ratchet charges, rate changes and other utility tariff charges that are reduced as a result of the HONEYWELL involvement. A Baseline will be specified (Section 1 of Attachment G) for the purpose of utility bill analysis. AND/OR for those energy audits employing the method consistent with I.P.M.V.P. and/or F.E.M.P. Options A and/or B: For each ECM, HONEYWELL will employ an M&V Plan which may be comprised of any or all of the following elements: 1. Pre-retrofit model of energy consumption or demand 2. Post retrofit measured energy consumption 3. Post-retrofit measured demand and time-of--use 4. Post-retrofit energy and demand charges 5. Sampling plan 6. Stipulated Values The value of the energy savings will be derived from the measured data and engineering formulae included herein, and the applicable energy charges as defined in Attachment G. In some cases, energy usage and/or demand will be calculated from measured variables that directly relate to energy consumption, demand or cost, such as, but not limited to, measured flow, temperature, current, voltage, enthalpy or pressure. AND/OR for those energy audits employing the method consistent with 1.P.M.V.P. and/or F. E.M.P. Option D: For each Energy Conservation Measure, HONEYWELL will employ an Iv1&V Plan that may be comprised of any or all of the following elements: Pre-retrofit model of energy consumption or demand 2. Post retrofit model of energy consumption or demand 3. Post retrofit measured energy consumption 4. Post-retrotit measured demand and time-ot=use 5. Post-retrotit energy and demand charges 6. Sampling plan 7. Stipulated Values The value of the energy savings will be derived from a calibrated simulation of either the whole-building or of sub- systems in the building to determine the difference in the performance of the specific equipment being replaced. This method may entail as needed one-time measurements of the performance of the energy consuming systems in the building in order to calibrate the simulation model. Energy usage for the Facilities for Stich Guarantee Year will be derived through the use of simulation programs. 3.3 Operational Cost Avoidance. The agreed-upon Operational Cost Avoidance as described in Attachment G (Schedule of Savings) will be deemed realized upon execution of this Agreement and will begin to accrue on the Attachment F (Rev. 10/O6) Page 5 of 9 date of the completion and acceptance of each Retrofit improvement or on the commencement date for Support Services (Article 6.2.3), whichever comes first. These Savings are representative of information provided by the CUSTOMER consisting of either whole or partial budgeted operational costs and as such, it is hereby understood and agreed that the CUSTOMER is wholly responsible for assuring that these budgeted Operational Costs are accurate and achievable. Implementation of this Agreement (inchiding, as applicable, the Support Services Agreement) allows for the reallocation or defrayal of such budgeted Operational Costs. The CUSTOMER acknowledges and agrees that, if it did not enter into this Agreement, it would have to take future steps to achieve the same ends as does the work included in Attachment A of this contract, and that, in doing so, it would incur operational costs of at least equal to the operational costs stated in attachment G per year over the life of the contract. The CUSTOMER agrees that, by entering into this agreement, it will avoid future operational costs in at least this amount. 3.4 Base Year Adjustments. Baseline Period shall be adjusted to reflect: changes in occupied square footage; changes in energy-consuming equipment, including any repairs or improvements made to the equipment as part of this Agreement; changes in the Facilities; changes in Energy and Operational Cost Avoidance Guarantee Practices adversely affecting energy consumption and;'or demonstrated operational changes; changes in weather between the Baseline Period and the Guarantee Year; and documented or otherwise conclusively established metering errors for the Baseline Period and/or any Guarantee Year adversely affecting energy usage measurement. 3.4.1 Facility Operational Changes. Except in the case of emergencies, CUSTOMER agrees it will not, without the consent of an Authorized Representative of HONEYWELL: make any significant deviations from the applicable Energy and Operational Cost Avoidance Guarantee Practices; put any system or item of equipment in a permanent "on" position, if the same would constitute a deviation from the applicable Energy and Operational Cost Avoidance Guarantee Practices; or assume manual control of any energy management system or item of equipment, if the same would constitute a deviation from the applicable Energy and Operational Cost Avoidance Guarantee Practices. 3.4.2 Hours and Practices. To achieve these energy savings, HONEYWELL and CUSTOIVfER agree upon the operating practices listed in Attachment G. 3.4.3 Activities and Events Adversely Impacting Savings. CUSTOMER shall promptly notify HONEYWELL of any activities known to CUSTOMER which adversely impact HONEYWELL'S ability to realize the Guaranteed Savings and HONEYWELL shall be entitled to reduce its Guaranteed Savings by the amount of any such adverse impact to the extent that such adverse impact is beyond HONEYWELL'S reasonable control. 3.4.3.1 If for any reason any facility and/or utility meter covered under this Agreement is materially unoccupied, closed, or discontinued, the CUSTOMER shall promptly notify HONEYWELL within fifteen (15) days of this change. The savings will be deemed realized for such facilities or meters and the Guarantee will be adjusted accordingly. HONEYWELL will provide written notice of such adjustment to the CUSTOMER. 3.5 Guarantee Adjustment. HONEYWELL'S Guaranteed Savings obligations under this Agreement are contingent upon: (1) CUSTOMER following the Energy and Operational Cost Avoidance Guarantee Practices set forth herein and in Attachment G; (2) no alterations or additions being made by CUSTOMER to any of the Covered Systems and Equipment without prior notice to and agreement by HONEYWELL; (3) CUSTOIv1ER sending all current utility bills to HONEYWELL within two (2) weeks after receipt by CUSTOMER, if CUSTOMER fails to provide current utility bills for a period of time in excess of six (6) months HONEYWELL will send CUSTOMER written notice that it must send HONEYWELL copies of the utility bills and if CUST01~tER still fails to comply within thirty (30) days, HONEYWELL may, at its sole discretion, deem the Guarantee Savings obligation met during that period and any successive periods, and (4) HONEYWELL'S ability to render services not being impaired by circumstances beyond its control. To the extent CUSTOMER defaults in or fails to perform fully any of its obligations under this Agreement, HONEYWELL may, in its sole discretion, adjust its Guaranteed Savings obligation; provided, however, that no adjustment hereunder shall be effective unless HONEYWELL has first provided CUSTOfv1ER with written notice of CUSTOMER'S default(s) or failure(s) to perform and CUSTOMER has failed to cure its default(s) or failure(s) to perform within thirty (30) days after the date of such notice. 4. EXTENT OF CONTRACTUAL GUARANTEE 4.1 Status of the Honeywell Proposal. CUSTOMER'S Request for Proposal, Honeywell's proposal and any other documents submitted by Honeywell to the Customer prior to negotiation of this Agreement are expressly Attachment F (Rev. 10/06) Page 6 of 9 excluded from and are not a part of this Agreement. The parties agree that although the Honeywell Proposal may have contained scope items, guarantee savings and 1\~l&V options other than those stated in this Agreement, the Scope of Work, Schedule of Savings, and 1~(&V plan were developed jointly by the parties through negotiation. The CUSTOM-lER has chosen to purchase the scope of work set forth in Attachment A. The CUSTOMER accepts the Energy Guarantee and Schedule of Savings and agrees to the 1,9&V plan set forth in Attachments F and G. 5. CUST011~IER RESPONSIBILITIES PROVISIONS 5.1. Equipment Subject to these Provisions. Equipment affecting the performance of the Energy Saving Guarantee includes (1) equipment provided as per Attachment A -Scope of Work. (2) modifications made to existing equipment as outlined in Attachment A -Scope of Work, (3) existing or new equipment not provided or modified under this Agreement but materially affected by the work provided per Attachment .A -Scope of Work and consuming energy or water via utility meters covered by this Agreement. 5.2. CUSTOMER IVlaintenance and Replacement Responsibilities. During the term of this Agreement, for all equipment covered by the Energy Savings Guarantee of this Agreement, the CUSTOMER shall perform on- going maintenance and accomplish component replacement and equipment repairs in accordance with manufacturer's standards and practices and take all reasonable measures to insure the equipment is operating at full efficiency. Component replacement and equipment repairs must be accomplished in a timely fashion, Additionally, CUSTOMER shall insure such equipment is operated at all times in accordance with applicable manufacturer's specifications, HONEYWELL specifications, and the requirements of Attachments F and G contained herein. For all non-HONEYWELL maintenance actions, CUSTOMER shall document and make available to HONEYWELL maintenance dates and tasks accomplished, the start date and duration of all deficient equipment operation and the subsequent corrective action and/or repair dates. Failure of the CUSTOMER to operate the equipment per the specifcations, repair any deficiencies in a timely manner, and perform the ongoing maintenance functions in accordance with the standards and practices during the Guarantee period will allow HONEYWELL to adjust the Guarantee accordingly. 5.2.1. CUSTOMER shall replace any vandalized or any failed equipment or component no longer warranted by HONEYWELL or the manufacturer, with equipment or components of equal or greater efficiency value than installed by HONEYWELL, for the full Guarantee Term. 5.2.2. CUSTOMER shall be responsible to investigate and correct any reported deficiencies not covered under this Support Services Agreement. 5.3. CUSTOMER Granted Access for Remote Diagnostics. CUSTOMER shall allow HONEYWELL to perform remote diagnostics on all equipment associated with the Energy Savings Guarantee for operational compliance with the manufacturer's specifications, and the requirements of Attachment D, Attachment F and Attachment G contained herein. CUSTOMER shall provide one or both of the following described in section 5.3.1 or 5.3.2, as applicable. 5.3.1. Dial-In Remote Access: CUSTOMER is responsible for implementation and costs for first-time installation and on-going maintenance and subscription fees for two (2) dedicated phone lines and two (2) modems) at each front-end computer and one (1) dedicated phone line at each controller not I~ardwire connected to a front- end computer. 5.3.2. TCP'1P Remote Access: CUSTOI\~IER is responsible for implementation and costs for remote Honeywell access through CUSTOMER'S firewall(s) to the controllers and front-end computer(s) by one (1) Measurement and Verification Specialist including but not limited to a dedicated static IP address, installation and on-going maintenance and subscription and licensing fees for access hardware and software and one(1) station license dedicated to the remote user. 5.4. CUSTOMER Reporting Responsibilities. CUSTOMER shall report to HONEYWELL in writing within fifteen (] 5) days of the following changes or events. The Guarantee or the realized Cost Avoidance will be adjusted accordingly. Failure to do so will result in adjustment of the Guarantee. (1) any additional energy source or change in existing energy source or supplier that tl~e CUSTOMER may negotiate during the term of this Guarantee and/or, Attachment F (Rev. 10/06) Page 7 of 9 (2) any material change in system or equipment status, including replacement of, addition to, or modification of existing energy and/or water consuming systems or equipment and/or, (3) any long term temporary (equal to or greater than 10 days) or permanent changes in operating schedules and/or, (4) any facility and<'or utility meter covered under this Agreement that becomes materially unoccupied, closed, or discontinued and/or, (5) any material change in the payment schedule, such as due to refinancing or variable interest rate. 5.5. CUSTOMER Governmental Unit Reportinc Responsibilities. CUSTOMtER is solely responsible for reports to be submitted to the Department of Commerce, Public Utilities/Services Commission, or any other governmental agency or governmental unit. 5.6. CUSTOMER Provided Documentation. It will be the responsibility of the CUSTOMER to provide to the M&V specialist on a minimum monthly basis (unless noted otherwise); (1) Verification that equipment installed to perform the ECiVIs has been properly maintained, including but limited to provision of maintenance records. (2) Current status of the buildings (i.e., occupancy level and use, hours of operation, etc.). (3) Records of customer initiated changes in equipment setpoints, starG'stop conditions, usage patterns. (4) Records of customer initiated changes in operation of mechanical systems, which may impact the ECMs. (5) Records regarding addition or deletion of equipment or building structure, which may impact the ECMs or the building energy consumption. (6) Copies of monthly utility bills and utility summary data on a monthly basis, and access to utility accounts through an authorization by the CUSTOMER to the Utility to allow the release of data to a Honeywell representative. 5.7. CUSTOMER Rebate Responsibilities. It is understood that all energy rebates and/or refunds are the result of an agreement between CUSTOMER and the utility company and HONEYWELL assumes no responsibility for obtaining said rebates and/or refunds. It is understood that said rebates and/or refunds are not included in the Guarantee. 5.8. Material Chances in Enercy Units & Cost Avoidance. 5.8.1. Reported Material Changes. CUSTOMER shall deliver to HONEYWELL a written notice describing and explaining all actual or proposed Material Changes in the Premises or in the operations in the Premises and their anticipated effect on energy use. Said Notice must be delivered to HONEYWELL no less than seven (7) days before any actual or proposed Material Change occurs. 5.8.1.1. For purposes of this provision, a Material Change is defined as any change in the following which reasonably could be expected to increase or decrease energy used at the Premises by a value more than five percent (5%) of the Guaranteed energy Savings per utility meter or submeter: (1) manner of use of the Premises by Client; (2) hours of operation of any equipment or facilities or energy systems contained in the Premises; (3) occupancy of the Premises; (4) structure of the Premises; (5) types of equipment used in the Premises; or (6) conditions at7ecting energy use in the Premises. 5.8.2. Unreported Material Chances. In the absence of any material Changes in the Premises or in their operations, energy consumption and demand should not change from year to year. Therefore, if energy consumption and demand per utility meter or submeter for any month increases by five percent (5%) of the Guaranteed Savings per meter or more from the energy consumption and demand for the same month of the preceding contract year after adjustment for changes to climactic conditions, then such increase shall be deemed to have resulted from a Material Change, except where such increase is due to equipment malfunction, faulty repair or other acts of negligence by HONEYWELL. 5.8.3. Ad,iustments for Material Chances. In the event of any increase or decrease in energy consumption and demand for any month resulting froth a reported or unreported Material Change, the amount of that increase shall be subtracted from or that decrease shall be added to the total energy consumption and demand for that month prior to the calculation of energy savings pursuant to Attachments F and G. Attachment F (Rev. 10/06) Page 8 of 9 5.8.3.1. If a reported or unreported Material Change affected energy consumption and demand in the same calendar month in the preceding year, the nest precedr~rg contract year where a Material Change has not occurred will be used to compute the value of the Material Change and the energy savings for the current month. --- End of Attachment F --- Attachment F (Rev. 10/06) Page 9 of 9 ATTACHMENT G SCHEDULE OF SAVINGS 1. Schedule of Savings The total energy and operational Cost Avoidance over the Tenn of the contract is equal to or greater than $1,359,051 as defined in the table below: PEAR ENERGY OPERATIONAL TOTAL 1 $7,786 $65,286 $73,072 2 $8,019 $67,245 $75,264 3 $8,260 $69,262 $77, 522 4 $8,507 $71,340 $79,847 5 $8,763 $73,480 $82,243 6 $9,026 $75,684 $84,710 7 $9,296 $77,955 $87,251 8 $9,575 $80,294 $89,869 9 $9,862 $82,702 $92,565 10 $10,158 $85,183 $95,342 l l $10,463 $87,739 $98,202 12 $10,777 $90,371 $101,148 13 $11,100 $93,082 $104,182 14 $11,433 $95,875 $107,308 15 $11,776 $98,751 $110,527 TOTALS $144, 802 $1,214,249 $1, 359,051 or the sum of the Retrofit and Support Costs for such Guarantee Year, whichever is less. Provided further, in no event shall the cost avoidance guarantee provided herein exceed the total installation, maintenance, and financing costs for the Work under this Agreement. Proforma budget neutral or positive cash flows are not guaranteed. The Term of the Guarantee Performance Period is I S years, subject to Attachment F. Attachment G (Rev. 02-08) Page 1 of 4 t.l Ener~y Savings. The first year amount of energy savings is the sum of the below listed ECMs. The schedule of savings does not inchtde the absolute increase in energy use due to the implementation of measures to increase environmental comfort as directed by the customer, and other baseline adjustments (see 1.3.1.1). The Guaranteed savings are less than the Projected savings, represented in Exhibit G-1. The Cost Avoidance is based on the listed Energy and Operational Cost Avoidance Guarantee Practices contained in Section 1.3 herein. Att A No. ECivI Description Electric Year 1 Non- Electric Year 1 Water fear 1 Total Year 1 1 Lighting $893 $893 2 Automation /Temperature Controls $286 $286 3 HVAC Upgrades $397 $3791 $4,188 4 Building Envelope $28 $754 $782 5 Roofing/ Attic Insulation $1,636 $1,636 TOTALS $1,318 $6,467 $7,786 [a] Att A: Attachment A, Scope of Work. Customer agrees that the baseline for the unit cost of energy will be adjusted each year of the guarantee term. This annually adjusted value of energy unit cost is stipulated as the new baseline in each succeeding year. Customer agrees that baseline adjustment is stipulated to be an escalation of ~% per year for the unit cost of electric utilities and 3% per year for gas utilities used in the determination of cost avoidance each year. The baseline energy consumption is calculated for delivery of design minimum volumes of Outdoor Air in the Supply Air Stream. Post retrofit savings projections are calculated for delivery of minitnum outdoor air volume. Increases in delivered outdoor air may result in increases in energy consumption, and may result in baseline energy adjustments as referenced in Section 1.3.1. l.2 Operational Cost Savings. The annual guarantee of operational cost avoidance strategies are listed below. The Savings are based on the listed Energy and Operational Cost Avoidance Guarantee Practices contained in Section 1.3 herein. The operational cost savings described below and identified in Section 1 are deemed satisfied upon contract execution. The Customer acknowledges and agrees that, if it did not enter into this agreement, it would have to take future steps to achieve the same ends as does the work included in Attachment A of this contract, and that, in doing so, it would incur operational costs of at least the amount per year over the life of the performance . period as presented below and in the Schedule of Savings. The Customer agrees that, by entering into this agreement, it will avoid future operational costs in at least these amounts. Further, the Customer acknowledges that operational cost savings categorized as capital cost avoidance are part of, or are causally connected to scope of work specified in Attachment A (i.e., the ECMs being implemented), and are documented by industry standard engineering tnethodologies acceptable to the Customer. Customer agrees that the baseline for the unit cost of operations will be adjusted each year of the guarantee term. Tllis annually adjusted value of operational unit cost is stipulated as the new baseline in each succeeding year. Customer agrees that baseline adjustment is stipulated to be an escalation of 3% per year for operational costs used in the determination of operational cost avoidance each year. The operational cost avoidance values were identified, reviewed, and agreed to by a team of Customer's representatives including Keith Windschitl- Parks Recreation Director, Henry Henry- Building Manager, Walt Sehst -City Manager. Cost Avoidance 1" Year Ostia Operational Savings Description (OSD) Att. A Ref Category Cost (O&M. Capital,) Avoidance 1 O erational and Maintenance O&~~1 $65,286 Total $65,286 [a] O&M: operations and maintenance. Attachment G (Rev. 02-08) [ age 2 of 4 1.3 Energy and Operational Cost Avoidance Guarantee Practices: 1.3.1 BASELINE Operating Parameters are the facility(s) and system(s) operations measured and. or observed before commencement of the Work. The data summarized will be used in the calculation of the baseline energy consumption andior demand and for calculating baseline adjustments for changes in facility operation that occur during the Guarantee Period. HONEYWELL and CUSTOMER agree that the operating parameters specified in this section are representative of equipment operating characteristics during the Baseline Period specified in this Agreement. The following data was collected with the assistance of Henry Henry. The Baseline Period is defined as ]0/O1i2006 to 9/30/2007 . The Contractual Baseline consists of the Baseline Conditions and Baseline Operating Parameters collected from the Baseline Period and modified by Baseline Adjustments, as necessary. as defined herein and by the Exhibits to Attachment G. Baseline operating parameters are stipulated and agreed upon. See Energy Savings Calculations, attached hereto and incorporated herein for fitrther information regarding stipulated baseline parameters. 1.3.1.1 Pre-Retrofit Baseline Adjustments: The improvement to the ventilation of the facilities with the addition of establishing minimum outside air induction due to the upgrades of the Attic Air Handling Unit's and Basement Unit S-1 will increase energy usage. This additional energy usage has not been included in these calculations. Routine and non-routine future post-retrofit baseline adjustments are discussed in section 1.4.4. 1.3.2 GUARANTEE PERIOD Operating Parameters of the facility(s) and system(s) after completion of Work. The Customer agrees to operate, or cause to effect the operation of the Work in such manner that is in accordance with the Guaranteed Period Operating Parameters. The data summarized will be used in the calculation of the post-retrofit energy consumption and/or demand. HONEYWELL and CUSTOMER agree that the proposed operating parameters specified in this section are representative of equipment operating characteristics during the Guarantee Period specified in this Agreement. And, further, that they are agreed to be reasonable and may be used in the calculation of the cost avoidance, as if the site is actually operating per the parameters outlined in this section. Guarantee Period operating parameters are stipulated and agreed upon, and are displayed in the Energy Savings calculations. 1.3.2.1 Post-Retrofit Baseline Adjustments: There are no projected Post retrofit Baseline adjustments for utility units, energy unit costs will be adjusted as identified in the energy rate table presented above. 1.3.3 Operational Cost Avoidance: The following parameters, methodologies, and/or calculations were used in determining the Operational Costs and/or avoided costs due to the Retrofit and Support Services implementation and are agreed to be reasonable and tnay be used in the calculation of the cost avoidance. Operational cost avoidance methodology and/or calculation details are attached hereto and are incorporated herein as the exhibits outlined in the following table. oso Operational Savings Cost Avoidance Methodology " Descri tion Li htin Retrofit Based on Ca ital Fundin Re uests Automation / Based on Capital Funding Requests Tem erature Controls HVAC Im rovements Based on Ca ital Fundin Re uests Buildin Envelo e Based on Ca ital Fundin Re uests Roofing /Attic Based on Capital Funding Requests Insulation [a] ORM: operations and maintenance. 1.3.4 Other energy and operating savings measures: Not Applicable Attachment G (Rev. 02-08) Page 3 of 4 1.4 Guarantee Savin s Measurement and Verification Plan 1.4.1 >Measurement and Verification Methodoiogy(s): Energy Conservation Electric Savings Verification Fuel Savings Verification Other utility Savings ;Measure !Method Method Verification iVlethod Lighting Retrofit OPTION A w,' Stipulated \%.-~ N%A Burn Hours, I~~Ieasure sample o elation Fixture KW Building Automation N/A OPTION A wi Stipulated NiA Improvements Variables, Confirm O eration to S ecifications Mechanical: HVAC & OPTION A w; Stipulated OPTION A w/ Stipulated N%A Piping ECM Variables, Confirm Operation Variables, Confirm to S ecifications O eration to S ecifications Building Envelope OPTION A w/ Stipulated OPTION A w/ Stipulated N; A Improvements Variables, Confirm Variables, Confirm Installation to Specifications Installation to S ecifications Roofing /Attic Insulation N/A OPTION A w/ Stipulated N/A Variables, Confirm Installation to S ecifications 1.4.2 Energy Cost Avoidance: Energy Cost Avoidance: The following describes the Ivieasurement and Verification procedures, formulas, and stipulated values which may be used in the calculation of the energy cost avoidance; The calculation of energy cost avoidance is based upon the utility units avoided times the agreed upon escalated utility rate structure. Energy units avoided are based on engineering calculations and spot measurements of selected variable parameters. Potential to save is verified by review of installation process, materials, and documentation to confirm that each ECM is in compliance with project specifications and works as it is intended to. 1.4.3 Specific ECM M&V Plan(s): The following describes the Measurement and Verification procedures, formulas, and stipulated values which may be used in the determination of cost avoidance and/or performance against the Guarantee for this each specific ECM in addition to the general Energy Cost Avoidance procedure outlined in 1.4.2. 1.4.4 Constants: The constants and/or stipulated values defined in the Exhibits to Attachment G, or as defined herein ,are mutually agreed to by the Customer to be reasonable and may be used in the determination of the cost avoidance. 1.4.5 Exhibits and Schedules: The following Exhibits are attached hereto and are made a part of this Agreement by reference. 1.4.5.1 Exh Exhibit G-1 Exhibit G-2 Exhibit G-3 Exhibit G-4 Exhibit G-5 ibits Equipment Operating Schedules Energy Calculations M&V Matrix M&V Plan Summary Operational Savings Attachment G (Rev. 02-08) Page 4 of 4 ATTACHMENT J PROJECT ACCEPTANCE Proiect Final Acceptance Procedure: As portions of the Project near completion, the Honeywell Project i\~lanager will start the Project Close-Out Process. The Honeywell Project Manager shall use the Scope-of--Work (SOW) listed in Attachment A as the basis for the Close-Out Process and shall demonstrate to the Owner's Representative that each separate item of the SOW is substantially complete. The sign off process will be by portion of the Scope of Work or by individual Energy Conservation 1\-Leasure (ECIv4). After each portion of the Scope of Work has been demonstrated and a "Punch List" detailing minor deficiencies, if any, is generated, the Owner's Representative shall execute the Delivery and Acceptance Certificate to acknowledge substantial completion and Honeywell will complete the "Punch List" within two weeks. Execution of this Delivery and Acceptance Certificate signifies the start of the warranty provided in the Agreement for this portion of the Work. Schedule of Acceptance: The acceptance process will follow the following schedule: All ECMs by: May 1, 2009 Support Services: Honeywell will start the support services of the Facility in accordance with the Service Agreement per Attachment D when the Final Delivery and Acceptance Certificate is signed. Attachment J (Rev. 09/06) Page 1 of 2 Honeywell FINAL DELIVERY AND ACCEPTANCE CERTIFICATE Project Name: City of Columbia Heights - Murzyn Hall Agreement Effective Date: Scope-of--Work (SOW) Item/Energy Conservation Measure (ECM): To: Honeywell International Inc. Reference is made to the above listed Agreement between the undersigned and Honeywell International Inc. and to the Scope of Work as defined in Attachment A herein. In connection therewith, we confirm to you the following: The Scope of Work (SOW) Item/ Energy Conservation Ivieasure (ECM) referenced above and also listed in Attachment A of the Agreement has been demonstrated to the satisfaction of the Owner's Representative as being substantially complete All of the Work has been delivered to and received by the undersigned and that said Work has been examined and /or tested and is in good operating order and condition and is in all respects satisfactory to the undersigned and as represented, and that said Work has been accepted by the undersigned and complies with all terms of the Agreement. Consequently, you are hereby authorized to invoice for the Final Payment, as defined in Attachment E, The Payment Schedule. Owner Name: By: (Authorized Signature) (Printed Name and Title) (Date) Attachment J (Rev. 09/06) Page 2 of 2 MEMORANDUM OF INSURANCE Date: 04/01108 Producer: ABD Insurance & Financial Services For questions please contact: honeywellmoi@abdi.com CO LTR Type of Insurance Policy Number Policy Effective Date Policy Expiration Date Limits A General Liability CGOG23738338 4/1/2008 4/1/2009 Each Occurrence $ 5,000,000 D Commercial General Liability Damage to Rented Premises $ 5 000 000 ^ Claims Made D Occur. Med Exp (Any one person) $ 50,000 Personal & Adv Injury $ 5 000 000 Gen'I Aggregate Limit Applies Per General Aggregate $ 5,000,000 D Policy ^ Project ^ Loc Products - ComplOp. $ 5,000,000 A Automobile Liability D Any Auto SCA H0824117A 4/1/2008 4/1/2009 Combined Single Limit $ 5 000 000 ^ All Owned Autos ^ Scheduled Autos Bodily Injury (Per Person) $ D Hired Autos Bodily Injury (Per Accident) $ D Non-Owned Autos Property Damage $ ExcesslUmbrella Liability Each Occurrence $ ^ Occurrence Reported ^ Claims Made ^ Occur. ^ Deductible ^ Retention $ Aggregate $ B Workers' Compensation WLR 044345730 4/1/2008 4/1/2009 xx Statutory Limits A and Employers' Liability WLR 044345857 E.L. Each Accident $ 5,000,000 B (Insured States} RSC 044345778 E.L. Disease -Each Employee ~ 5,000,000 A E.L. Disease -Policy Limit $ 5 000 000 A Excess Workers' Compensation and Employers' Liability WCU C4434578A (AZ, OH, WA) 4/1/2008 4/1/2009 Excess Workers' Compensation statutory limits excess of $1,000,000. Self-insured States only (AZ,WA,OH,NM) WCU C4434581A - NM 4/1/2008 4/1/2009 Employers' Liability: $5 million for each accident or each employee for disease This Memorandum of Insurance serves solely to list insurance policies, limits and dates of coverage. Any modifications hereto are not authorized. Any party with which the named insured is contractually required to include special status is automatically granted such status. However, coverage under the policy only applies to the extent of the coverage required by such contractual requirement and for the limits of liability specified in such contractual requirement, but in no event for insurance not afforded by the policy nor for limits of liability in excess of the applicable limits of liability of the policy. Any questions on this form may be referred via email to the ABD Insurance & Financial Services email address noted above. ~: a 2..5 MEMORANDUM: OF FNSURANCE Date: 04/01/08 This memorandum is issued as a matter of information only to authorized viewers fordheir internal use only and confers no rights upon any viewer of this Memorandum. This Memorandum does-not amend,. extend or alter the coverage tleseribed below. This Memorandum may only be copied, printed and distributed within an authorized viewer and may only be used and viewed by an authorized viewer for its internal use. Any other use.,. duplication or distribution of this Memorandum withqut the consent of ABD Insurance & Financial Services is prohibited. "Authorized Viewer" shall mean an entity or person which is authorized by the insured named :herein to access this Memorandum via httpa/www5l.honeywell.com/moU The information contained herein is as of the date referred to above. ABD-Insurance & Financial Services shall be under no obligation to update such information. Producer: ABD Insurance & Financial Services For questions please contact: honeywellmoi@abdi.com Insured: INSURERS AFFORDING COVERAGE HONEYWELL INTERNATIONAL INC. Insurer A ACE American Insurance Com an P. O. BOX 1219 Insurer B Indemnit Insurance Com an of North America 101 COLUMBIA ROAD Insurer C MORRISTOWN, NJ 07962 Insurer D Coverages THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTHWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS MEMORANDUM MAY BE ISSUED OR MAY PERTAIN, THE INSURANC AFFORDED BY THE POLICIES DESCRIBED BELOW IS SUBJECT TO ALL THE TERMS, CONDITIONS AND EXCLUSIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCE BY PAID CLAIMS. Policy Policy CO Effective Expiration LTR Type of Insurance Policy Number Date Date Limits A General Liability CGOG23738338 4/1/2008 4!1/2009 Each Occurrence $ 5,000,000 ~ Commercial General Liability Damage to Rented Premises $ 5,000,000 ^ Claims Made ~ Occur. Med Exp (Any one person) $ 50,000 Personal & Adv Injury $ 5,000,000 Gen'I Aggregate Limit Applies Per General Aggregate $ 5,000,000 ~ Policy ^ Project ^ Loc Products-Comp/Op. $ 5,000,000 A Automobile Liability SCA H0824117A 4/1/2008 4/1/2009 Combined Single Limit $ 5,000,000 [] Any Auto ^ All Owned Autos Bodily Injury (Per Person) $ ^ Scheduled Autos ^D Hired Autos Bodily Injury (Per Accident) $ ~ Non-Owned Autos Property Damage $ ExcesslUmbrella Liability Each Occurrence $ ^ Occurrence Reported ^ Claims Made ^ Occur. ^ Deductible Aggregate $ ^ Retention $ B Workers' Compensation WLR 044345730 4/1/2008 4/1/2009 xx Statutory Limits A and Employers' Liability WLR 044345857 E.L. Each Accident_ $ 5,000,000 B (Insured States) RSC 044345778 E.L. Disease-Each Employee $ 5,000,000 q E. L. Disease-Policy Limit $ 5,000,000 A Excess Workers' WCU C4434578A 4/1/2008 4/1/2009 Excess Workers' Compensation statutory limits Compensation (AZ, OH, WA) excess of $1,000,000. and Employers' Liability Self-insured States only WCU C4434581A - NM 4/1/2008 4/1/2009 Employers' Liability: $5 million for each accident or (AZ,WA,OH,NM) each employee for disease This Memorandum of Insurance serves solely to list insurance policies, limits and dates of coverage. Any modifications hereto are not authorized. Any party with which the named insured is contractually required to include special status is automatically granted such status. However, coverage under the policy only applies to the extent of the coverage required by such contractual requirement and for the limits of liability specified in such contractual requirement, but in no event for insurance not afforded by the policy nor for limits of liability in excess of the applicable limits of liability of the policy. Any questions on this form may be referred via email to the ABD Insurance & Financial Services email address noted above. Metro Home Insulation 5861 Queens Ave. NE • Elk River, MN 55330 • (763) 441-2313 Pre Lien Letter Dear Property Owner: There is no reason for you to be concerned when you receive a Mechanic's Pre-Lien notice. The suppliers and subcontractors who send the mechanic's Pre-Lien notice are protecting you by complying with the law. The Mechanic's Pre-Lien notice statue is a consumer protection law intended to protect you from a Mechanic's Lien. Each supplier and subcontractor should give it out personally or by certified mail within 45 days of their first day on the job. Since time is a factor, it is not uncommon for this notice to arrive before the customer has been billed. It is our policy to wait until we have completed the project to bill the customer. The Mechanic's Pre-Lien notice law does not mean that your credit, or your builder's credit, is being questioned. ,This notice simply gives you the supplier's name and informs you of the estimated amount that will be due for the work being done. Most suppliers ar~d subcontractors send a Mechanic's Pre-T,ien notice to all customers, on all jobs. Remember, receiving a Mechanic's Pre-Lien notice is for your protection. The Mechanic's Pre-Lien notice enclosed was researched using the most current information available through government agencies. If any of the information is incorrect, please notify us at (763) 441-2313 so we can make the necessary changes. Thank You, Kevin Hen President KH/PK Enclosure Other Locations: • • Savage Forest Lake • • Sauk Rapids Rochester AFFIDAVIT OF SERVICE BY CERTIFIED MAIL STATE OF MINNESOTA ) SS COUNTY OF WRIGHT ) Kevin Henry of the City of Otsego, County of Wright, State of Minnesota, being duly sworn, says that on the 1 1 to day of December, 2008, he served the foregoing Pre-Lien Notice on City of Columbia Heights, by mailing to said owner a copy thereof by certified mail, enclosed in an envelope, postage prepaid, and by depositing the same in the post office at Rogers, Minnesota, directed to said owner at 590 40th Avenue NE, Columbia Heights, MN 55421 , their last known address. Subscribed and sworn to before me _ __ this 1 1 `" day of December, 200$. ~~ Notary Public PRE-LIEN NOTICE TO OWNER BY SUBCONTRACTOR December 1 1, 2008 CITY OF COLUMBIA HEIGHTS 590 40TH AVENUE NE COLUMBIA HEIGHTS, MN 55421 THIS NOTICE IS TO ADVISE YOU OF YOUR RIGHTS UNDER MINNESOTA LAW IN CONNECTION WITH THE IMPROVEMENT TO YOUR PROPERTY. ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON OR COMPANY IS NOT PAID FOR THE CONTRIBUTIONS. WE, METRO HOME INSULATION, 5861 QUEENS AVE. NE., ELK RIVER, MN 55330 HAVE BEEN HIRED BY YOUR CONTRACTOR HONEYWELL TO PROVIDE INSULATION FOR THIS IMPROVEMENT AT 530 MILL STREET, COLUMBIA HEIGHTS, MN, TO THE BEST OF OUR KNOWLEDGE, WE ESTIMATE OUR CHARGES WILL BE 56295. IF WE ARE NOT PAID BY YOUR CONTRACTOR, WE CAN FILE A CLAIM AGAINST YOUR PROPERTY FOR THE PRICE OF OUR SERVICES. YOU HAVE THE RIGHT TO PAY US DIRECTLY AND DEDUCT THIS AMOUNT FROM THE CONTRACT PRICE, OR WITHHOLD THE AMOUNT DUE US FROM YOUR CONTRACTOR UNTIL 120 DAY AFTER COMPLETION OF THE IMPROVEMENT UNLESS YOUR CONTRACTOR GIVES YOU A LIEN WAIVER SIGNED BY ME. WE MAY NOT FILE A LIEN IF YOU PAID YOUR CONTRACTOR IN FULL BEFORE RECEIVING THIS NOTICE. Metro Home Insulation, LLC ~~ CERTIFIED MAIL -RETURN REGEIPT REQUESTED M Hager