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:zsnac�:_] rrMmaCb"8 I j a s- "je P.O. BOX 277 AUSTIN, MN 55972 June 3, 2008 City of Roseville 660 Civic Center Drive Roseville, I I N 5511 Attn: Mr. Jeff Evenson Fie: Energy Guarantee One year energy guarantee MECHANICAL CONTRACTING PHONE (507) 437 -8201 FAX (547) 437 -8378 www.harfymechanical.com Price included in contract cost Measurement and verification of Savings: The analysis of the reduction in facility BTU consumption resulting from this upgrade will be based on the following: Pre - construction measurements of the current system performance will be utilized to establish a base lire for the current systems energy consumption. 0 Prior to removal from service selected equipment will be tested and monitored in an agreed upon manner, system performance and test methods will be documented and reviewed by an independent consulting engineer. o After substantial completion of the work the new equipment will be retested under similar operating conditions and test methods and the reduction in energy use will be documented and reviewed by an independent consulting engineer. Energy Deduction. Terms: At the end of the year HMI will review the energy records for the year and provide a written report documenting actual energy savings based on the adjustments outlined in the scope section of this document. Guaranteed Energy reduction: The energy reduction guarantee is for the facility's total ETU consumption only. Hlvll has no control of and cannot guarantee future utility rates and charges. Guaranteed reduction Met or in Excess: If the actual energy savings as determined above- are at, or in excess of the guaranteed energy savings H IVII's obligations under this agreement are met. If the energy reduction is in excess of the guarantee HIVII and Customer will share the energy savings excess. Customer will provide a lump sum payment of 0% of the excess guaranteed savings to HIVII based on (1) year's annual operating cost. Guaranteed Savings Shortfall -: If the actual energy savings are below the guaranteed energy savings amount, HIVII will investigate to determine what caused the savings shortfall. HIVII will be allowed to work to rectify the shortfall through improvement in operation and/or changes in systems with prior written consent of the city of Roseville. However,. if the guaranteed level of enemy savings is not achieved, the difference will be quantified and a payment will be provided to the Customer based on ( 1) yea-r's annual operating cost. Enemy Reduction Guarantee amount is 579,000 Wh /gear equivalent for the ice arena facility. This amount is the Burn of both electrical and natural gas use reductions.