HomeMy WebLinkAbout4618RESOLUTION NO.4 6 18
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTON, AUTHORIZING
THE MAYOR TO EXECUTE A COOPERATIVE
PURCHASING AGREEMENT WITH THE CITY OF
SEATTLE FOR THE PURPOSE OF ENTERING
INTO AN ENERGY SERVICES CONTRACT
WHEREAS, The City of Auburn intends to implement energy conservation
measures in City facilities and vehicles; and
WHEREAS, the City of Seattle has an existing contract with McKinstry
Essention, Inc. to perform facilities assessment, prepare a conservation services
proposal, and installation services; and
WHEREAS, City staff have reviewed the Seattle contract and determined
that it meets the needs of the City in this area; and
WHEREAS, because of the specialized nature of this work, and because
of McKinstry's familiarity with the City of Auburn's facilities, staff recommends
entering into a cooperative purchase agreement in order to take advantage of the
favorable terms of the Seattle/McKinstry agreement;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
HEREBY RESOLVES as follows:
Section 1. That the Mayor is hereby authorized to execute a
Cooperative Purchasing Agreement with the City of Seattle in substantial
conformity with the agreement attached hereto as Exhibit A and incorporated
herein, for the purpose of utilizing the City of Seattle's contract with McKinstry to
obtain energy conservation services.
Resolution No 4618
June 29, 2010
Page 1 of 2
Section 2. That the Mayor is authorized to implement such
administrative procedures as may be necessary to carry out the directives of this
legislation.
Section 3. That this Resolution shall take effect and be in full force
upon passage and signatures hereon.
Dated and Signed this day of , 2010.
CiTY-OF
PETER B. LEWIS
MAYOR
ATTEST.
Danie le E Daskam, City Clerk
APPROVED AS TO FORM.
Resolution No 4618
June 29, 2010
Page 2 of 2
COOPERATIVE PURCHASING AGREEMENT
In accordance with RCW Chapter 39.34 and to all other applicable laws, The City of
Seattle and the G /ry of K.ni , hereby agree to
cooperative governmental purchasing agreement for various supplies, materials,
equipment and routine, expert and/or consultant services, using competitively awarded
contracts. The following terms and conditions:
1. Each agency, in contracting for the purchase of supplies, materials, equipment and
services, agrees at its discretion, to extend contracts for shared use to the extent.
permitted by law and agreed upon by those parties and vendors.
2. Each agency is responsible for compliance with any additional or varying laws and
regulations regarding purchases.
3. Any purchases shall be effected by a purchase order from the purchasing agency
and directed to the vendor(s).
4. The originating contracting agency does not accept responsibility or liability for the
performance of any vendor used by the purchasing agency as a result of this
agreement.
5. Each agency shall be responsible for the payment of any item(s) purchased through
. a contractor purchase order that resulted from this Agreement.
6. This Agreement shall remain in force until cancelled in writing by either party.
Accepted for G , i� a ,4�- 4u,-40r,A-)
Name: PcILe ✓ �. 1 �t� ,-S
Title:/94VdX�
Date: JUL 19 2010
Accepted for the City of Seattle:
Name: Nancy Locke
Title: City Purchasing Director
Date:_
Vendor Contract #0000001961
Attachment #1
City of Seattle
ESCO SERVICES
This Contract is,,made effective 12/10/06 (the "Effective Date"), and entered into by and between the City
of Seattle (referred to as "Seaftte" and "the City" herein), a Washington municipal corporation, and
McKinstry Essention, Inc. ("Contractor"), a corporation of the State of Washington, and authorized to
do business in the State of Washington.
Contractor
McKinstry Essention, Inc.
Mark Jonson
-Representative
Address
P.O. Box 24567, Seattle WA 98124
Phone
206-832-8450
Fax
206-762-2624
E-mail
markiamckinstry.com
NOW, THEREFORE, in consideration of the terms, conditions, covenants, and performance of the scope
of work contained herein, as attached and made a part hereof, Seattle and Contractor mutually agree as
follows:
1. Entire Agreement: This Contract, including all attachments, amendments, subsequently issued
Contractor Proposals and Work Orders (defined in Section 4), and subsequently issued written change
notices, comprises the entire agreement between Seattle and the Contractor. The Request for
Proposal ("RFP"), Addenda, and Contractor's Proposal are explicitly included as Attachments. Where
there are conflicts between these documents, the order of priority for controlling documents will be as
follows: this Contract as amended, written Work Orders from the City of Seattle, Contractor proposals
for specific energy savings installations, the City of Seattle RFP #1791 and Addenda and then the
Contractor's proposal in response to the RFP.
2. Contract Period: This contract shall be for a five- year period with option to extend for one additional
5 -year period unless terminated earlier pursuant to the provisions hereof. Such extension shall be
automatic, and shall go into effect with or without written confirmation from the City to the Contractor,
unless the City provides the Contractor advance notice of the intention to not renew. Such notice shall
be given in writing no later than January 10, 2012. Any project not completed at the conclusion of the
contract period shall continue under the terms of the contract until completed
3. Time of Beginning and Completion: Contractor shall begin the work stated in the "Scope of Work"
("Work") section upon receipt of signed Vendor Contract from Seattle. Time limits established
pursuant to this Contract shall not be extended because of delays for which Contractor is responsible,
but may be extended by Seattle, in writing, for its convenience or for conditions beyond Contractor's
control.
4. Scope of Work: The Contractor shall provide the following services and tasks specified below and
listed in McKinstry Essention Proposal under "Range of Services", Page 38. See Attachment #2.
These services shall be termed "Work" herein
A. Preliminary Facility Assessment
1. During the course of the Contract, the City, including any individual City Department, may
identify city facilities that may benefit from conservation improvement measures. The City
authorized representative(s) for such City facilities may assign the Contractor to perform a
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Preliminary Facility Assessment on such facilities. This assignment shall be in writing. Within
thirty days of any such assignment, the City will provide Contractor the following for each of
the facilities so named:
a. Access to the facility for Contractor's staff;
b. The facility's energy, water and sewer bills for the two-year period
immediately preceding the execution of the Water and Energy Services
Agreement; -41-
c. Data on the facility's variables, such as usage schedules and levels of
occupancy (rate), which may affect the facility's utility bills;
d. Any resource audits that have been conducted within the last five years;
e The existence of any known hazardous materials in the facility that may
affect the cost of installing Conservation Measures;
f. A description of the facility management practices presently in use at the
facility; and,
g. A description of future plans for the facility including planned remodels,
additions, demolition and other major facility changes.
2. At no cost to the City, the Contractor will prepare a Preliminary Facility Assessment for each
facility assigned that outlines the scope, schedule and maximum compensation to be paid by
the City to Contractor for conducting a Conservation Services Project Proposal Contractor
agrees that all Preliminary Facility Assessments will be completed within 120 days of the City
providing the information described in Section A. 1, (above).
3. The Preliminary Facility Assessment will detail a proposed scope, schedule and maximum
price to be paid by the City for Contractor to perform the work to prepare a Conservation
Services Project Proposal. Once Contractor and the City agree on the scope, schedule and
maximum price for Contractor to prepare the Conservation Services Proposal, the City
(through it's authorized representative) will issue a Work Order.
B Directed Engineering Study to Prepare a Conservation Services Project Proposal
1. When authorized in writing by Work Order to the Contract, the Contractor will prepare a
Conservation Services Project Proposal for each Facility that may include the following:
a. A description of the Facility and a description of those buildings and systems
which are proposed to receive ESCO equipment and services
b The Cost -Effective Conservation Measures recommended to be installed by the
Contractor and a description of the Conservation Measures not recommended by
the Contractor because they are not Cost -Effective. The Cost -Effective
Conservation Measures will be rank ordered according to their benefit cost ratio.
i. For the purposes of calculating Cost Effectiveness, utility rebates shall
first be subtracted from Total Project costs;
ii. Labor and/or maintenance cost savings may be included in Resource
Cost Savings for the purpose of determining Cost Effectiveness, unless
otherwise agreed to between the City and the Contractor.
iii. For Facility projects involving equipment with different anticipated life -
cycles, a project anticipated life -cycle period will be agreed to by the City
and the Contractor for purposes of the savings calculation. The project
anticipated life -cycle period shall be based on the life -cycles of the
equipment components of the project and their respective percentages of
the Total Project Cost
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c. The services that the Contractor will perform or cause to be performed on or in
the Facility, including but not limited to engineering, construction management,
subcontracting for installation, the operations and maintenance procedures for
use on ESCO equipment, training for Facility personnel, providing 2 -year warranty
service, and equipment maintenance (costs proposed for equipment
maintenance shall be separately identified);
d. The Maximum Allowable Project Cost, itemized in detail, which may be amended
to represent additional City costs and/or actual costs; er
e. Recommendations for replacing Existing Equipment, along with
recommendations for improvements to Existing Equipment and Operating
Conditions;
f The standards of comfort and service appropriate for the Facility;
g. The Baseline Consumption for the Facility, including the data, methodology and
variables used to compute the Baseline, and the Baseline calendar period which
shall not be less than twelve (12) months;
h. The estimated Resource Cost Savings that are expected to result from the
installation of ESCO equipment and service, and an explanation of the method
used to make the estimate;
I The method by which Resource Savings and Cost Savings will be calculated
during the term of the Energy Savings Performance Contracting agreement
j. A description of the methods to be used for measurement and verification (M&V)
of Resource Cost Savings, and the period duration for M&V Included in the Total
Project Cost. M&V shall continue for at least one year after Substantial
Completion
k. A description of how the Resource Savings will be guaranteed by the Contractor
and the term of the guarantee;
I The schedule for Project completion;
m The recommended Funding Sources for each Conservation Measure The costs
for preparing the Conservation Project Proposal will be prorated among the Cost
Effective Conservation Measures;
n Audit Documentation;
o. Subcontracting Plan: Identify the work that needs to be conducted to install the
conservation measures, and specify all the work that will be performed by
subcontract The Contractor will propose the subcontractors that the Contractor
intends to use for such installation work The Contractor will conduct outreach
and recruitment for women and minority subcontractors and that the proposed
installation and subcontracting plan will include such firms at a level that reflects
responsible efforts.
p. The City will review the proposed installation and subcontractor plan, and will
approve the proposed subcontracting plan or will provide additional resources for
recruitment and outreach and require the Contractor to revise the plan to provide
a plan that better reflects the responsibility for outreach and recruitment of
qualified subcontractors.
L For each Project under this Contract that has been approved by Work
Order, the Contractor shall provide a monthly report to the Purchasing &
Contracting Services Division (Attention: Rodney Baladad) and to the
City's authorized representative. The monthly report shall provide an
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update as to all subcontracting activity, identify the Women or Minority
Owned Business (WMBE) status of such subcontractors, total dollars
paid to -date, total dollars paid to WMBE's to -date, and the monthly
activity of same
ii. The City reserves the right to require that the Contractor have
subcontractors submit subcontractor invoices directly to the City for
payment of the subcontractor work or_products.
Following the submission of the Conservation Services Project Proposal, the City and
the Contractor shall meet to review such proposal.
a. In the event that the City and the Contractor cannot agree on the Consumption
Baseline for the Facility, this Agreement shall terminate for that Facility only and
the City will compensate the Contractor one-half the cost of the Conservation
Services Project Proposal for that Facility, as identified in the Work Order. Such
payment shall entitle the City to sole ownership of the Conservation Services
Project Proposal
b. In the event that the Conservation Services Project Proposal does not include
Cost Effective Conservation Measures which, when installed, will provide
standards of comfort and service acceptable to the City, this Agreement shall
terminate for that Facility only and there will be no compensation for the
Conservation Services Project Proposal.
c If the City requests changes to the Conservation Services Project Proposal, the
Parties shall in good faith negotiate the requested changes and shall modify the
Conservation Services Project Proposal accordingly. If the Parties cannot agree
on a modified Conservation Services Project Proposal within one hundred twenty
(120) days after the City's receipt of the Conservation Services Project Proposal
shall be deemed terminated for that Facility only, and the City shall pay to the
Contractor not more than the amount specified in the Work Order to this
Agreement as compensation for the preparation of the Conservation Services
Project Proposal. Such payment shall entitle the City to sole ownership of the
Conservation Services Project Proposal
d. All subcontractors proposed by the Contractor shall be approved by the City in
writing.
3 Agreement on the content, cost effectiveness, schedule, subcontractors, WMBE
compliance and form of the Conservation Services Project Proposal will be evidenced
by the City (through it's authorized representative) issuing a Work Order for the
Contractor to install the Conservation Measures documented in the Conservation
Services Project Proposal.
C. Installation of Conservation Measures
1. The City shall issue a Work Order to the Contractor to install the Conservation Measures,
once the City and the Contractor have reached agreement. No work shall be performed
until the City has executed and issued the written Work Order to the Contractor.
2. Within the penod provided for completion and within the Maximum Allowable Project Cost
as set forth in the Conservation Services Project Proposal, the Contractor shalt:
a. Implement the ESCO Services, and
b. Install ESCO equipment.
3. In the event that during installation of Conservation Measures, the Contractor or its
subcontractors encounters hazardous materials not previously identified, the Contractor
shall incur no further costs and shall contact the City's authorized representative. The City
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will determine whether or not the cost of handling the hazardous material is an acceptable
cost to the Project.
a. If it is not an acceptable cost to the Project, the Conservation Services Project
Proposal for that Facility will be renegotiated to determine the cost and scope of
ESCO work necessary to ensure that the Facility's level of comfort, health and
safety is restored and that all applicable local, state and federal regulations
relating to hazardous materials are complied with. The Contractor will be
compensatedaccording to the amended Proposal and for its costs incurred prior
to encountering the hazardous materials.
b. If it is an acceptable cost to the Project, the Conservation Services Project
Proposal for that Facility will be amended to reflect the changed project scope,
compensation and schedule related to the proper handling of the hazardous
material.
c The City reserves the right to self perform this work or contract with a licensed 3rd
parry whatever is in the City's best interest
4 For Conservation Measures involving removal and installation of ballasts, non -leaking
ballasts containing PCBs shall be segregated from leaking ballasts and, packed, labeled
and transported by the Contractor to Seattle City Light's South Service Center according
to all local, state and federal regulations The City shall arrange for proper storage and
disposal of ballasts containing PCBs. Fluorescent lamps replaced in Facilities shall be
properly recycled by the Contractor.
5. Design review meetings between the City, the Contractor and Facility staff shall be held at
the design development and construction documents stages. The Contractor shall provide
two (2) complete sets of construction design documents for City review at the design
development and construction documents stages. A fourteen (14) calendar day review
period shall be allowed at the design development and construction documents stages for
ESCO quality control and to receive City's comments An additional seven (7) calendar
days (beyond the review period) shall be allowed for incorporation of City comments
6 If, after the date that a Notice to Proceed is issued for a Conservation Services Project
Proposal, the Contractor desires to add to ESCO services or equipment a component that
is not identified in the initial Conservation Services Project Proposal, the Contractor shall
identify that component in a supplement to the Conservation Services Project Proposal,
which upon the written agreement by the City shall be added to the Conservation Services
Proposal.
7 The City will allow the Contractor to have reasonable access to the Facility in order to
provide ESCO Services, to review City's operating methods and procedures, and to
monitor the ongoing duties and obligations of the City and the Contractor under the
Energy Performance Contracting agreement The Contractor is aware that City Facilities
are used for public business and/or for use by City employees. Scheduling of disruptive
work, i.e. noise, dust, loss of required security or the elimination of required ventilation for
outdoor air and comfort control may require that ESCO work be limited to certain time
periods of the day or the week. The Contractor shall inquire as to any limitations at each
Facility and take those limitations into consideration in preparing the Conservation
Services Project Proposal for such Facilities.
8 The City may require a background check by Washington State Patrol of all employees of
the Contractor and any subcontractors who will be working in City facilities.
D. Equipment Maintenance and City Training
The Contractor shall provide the maintenance and training services set forth in the
Conservation Services Project Proposal
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E. Communication
It is the intent of the parties to hold periodic meetings between the Contractor and the City to
review progress under the Energy Savings Performance Contracting agreement any
amendments, to agree on any redirection, to coordinate any outside work with the schedule of
the Facility, and to generally maintain quality control during the course of the work
5. Utilization by Work Order only. No Mandatory or Guaranteed Utilization: The Contractor will
not perform any work unless authorized by written notice to proceed or Work Order'. The City
,.,got
not guarantee utilization of this contract. t
Contract Period and Terms for Energy Saving Guarantees: The initial contract term will
include five years from the date of execution within which the City may request the Contractor
initiate a Conservation Services Project. The contract will continue in force until all projects
initiated in this five-year period are completed and the warranty time period is concluded. The
contract may be extended for additional five -years, during which time the City and the Contractor
may initiate new Conservation Service Projects. In the event the contract is renewed, the contract
will continue in force until all projects initiated during the extended period are completed and the
warranty time period is concluded
The Conservation Services Project does not require conservation guarantees that are fnet and
completed within the five year period Project pay -back periods may be much longer or shorter
than the five-year window for accepting project requests. The City does not have any restriction
as to the pay -back period that will be imposed by the contract, and those pay -back periods
proposed within each independent Conservation Work Plan that are accepted by the City and the
Contractor shall be acceptable
6. Prices: Pricing per Work Order shall be determined at the time the Conservation Services
Project Proposal is submitted to the City's authorized representative. Pricing shall be consistent
with McKinstry Essention Proposal under "Fee Schedule" as listed on Page 56. See Attachment
#2.
7. Environmental Standards: The City seeks to ensure that all purchases comply with recent
environmental standards and product specifications. The USEPA Standards for this product shall
be a minimum specification, if any such standards have been published by the USEPA, unless
specified otherwise herein. See http.//www epa Qov/epaoswer/non-hw/procure/index htm. City,
Local, State, and Federal codes and standards are to be adhered to, and the most stringent
requirements shall prevail
8. Permits: All necessary permits required to perform work are to be supplied by the Contractor at
no additional cost to the City.
9. Trial Period and Right to Award to Next Low Bidder: A ninety (90) day trial period shall apply
to the contract. During the trial period, the Contractor must perform in accordance with all terms
and conditions of the contract. Failure to perform during this trial period may result in the
immediate cancellation of the contract. In the event of dispute or discrepancy as to the
acceptability of product or service, the City's decision shall prevail The City agrees to pay only for
authorized Work Orders completed and accepted up to the date of termination. If the contract is
terminated within the trial period, the City reserves the option to award the contract to the next low
responsive bidder by mutual agreement Any new award will be for the remainder,of the contract
and will also be subject to this trial period.
10. Energy Savings Guarantees: Pursuant to RCW 39.35A.020, there will be a guarantee of the
annual energy cost savings attributed to the Project (Work Order) installed by the Contractor. The
City may also require performance and payment guarantees.
For the energy cost savings guarantee, the City shall require either a retainage guarantee or a
surety bond The City will have the right to decide, from project to project, whether performance,
6 of 24 McKinstry Essention Inc. ESCO Contract
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Attachment #1
payments and savings would be guaranteed through a bond or through retainage withheld from
the Contractor's invoices for the particular project. The bond or retainage will be used to
guarantee project completion and payments, but also to guarantee realization of the project
energy cost savings. The City reserves the right to make the final decision as to the form of
guarantee required for each specific Project, but anticipates selecting retainage as a guarantee
option when a project is of a small enough value to make retainage practical and reasonable.
The retainage or bond shall provide protection and payment to the City in the event that the
Contractor does not perform as guaranteed or if the post -installation cost savings are not realized.
The Conservation Savings Project Work Order will detail the savings to be achieved and will state
a method for the verification and City's acceptance of such savings. In the event the Contractor
does not perform under the contract or does not deliver the guaranteed energy cost savings, the
retainage or the bond shall be used (1) to compensate the City for the equivalent value of the
shortfall between the actual savings and the guaranteed savings; and (2) to satisfy the claim of
any person or persons, mechanic, subcontractor or materialman who shall perform any labor
upon such contract or the doing of said Work, and all persons who shall supply such person or
persons or subcontractors with provisions or supplies for carrying on such work, and (3) to secure
performance of any Work Contractor fails to perform under the Work Order
Retainage: If the City elects to use retainage as the method of guarantee for a particular Project
Work Order, the retainage shall be reserved and retained from monies earned by the Contractor
during the progress of the Work in a sum equivalent to the projected savings for the Conservation
Savings Project work. Such retainage shall be used as a trust fund for the protection and
payment (1) to the City for the guaranteed energy savings attributed to the Project as part of the
Conservation Project Work Order, and (2) of any person or persons, mechanic, subcontractor or
materialman who shall perform any labor upon such contract or the doing of said Work, and all
persons who shall supply such person or persons or subcontractors with provisions or supplies for
carrying on such work.
Monies reserved shall, at the option of the Contractor, be:
(1) Retained in a non-interest bearing fund by the City of Seattle until 60 days following the
Completion Date, which expressly includes final verification and acceptance of the post-
installation savings; or
(2) Deposited by the City of Seattle in an interest-bearing account in a bank, mutual savings
bank, or savings and loan association, not subject to withdrawal until 60 days following
the Completion Date;,or
(3) Placed in escrow with a bank or trust company by the City of Seattle until 60 days
following the Completion Date When the monies reserved are to be placed in escrow the
City of Seattle will issue a check representing the sum of the monies reserved payable to
the bank or trust company and the Contractor jointly. Such check shall be converted into
bonds and securities chosen by the Contractor and approved by the City of Seattle and
the bonds and securities held in escrow.
Contractor shall designate the option desired on the Selection of Retainage Option form as
provided in this section for any Contract Project where the City has required retainage at the time
the Contractor executes the Conservation Savings Project Work Order. The Contractor in
choosing option (2) or (3) agrees to assume full responsibility to pay all costs which may accrue
from escrow services, brokerage charges or both, and further agrees to assume all risks in
connection with the investment of the retained percentages in securities.
Release of retained percentage will be made 60 days following the establishment of the
Completion Date including verification and acceptance of post -installation savings for the project,
by the City of Seattle provided the following conditions are met:
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In the event claims are filed, the Contractor will be paid such retained percentage less an amount
sufficient to pay any such claims together with a sum determined by the City of Seattle sufficient to
pay the cost of foreclosing on claims and to cover attorneys fees.
SELECTION OF
RETAINAGE OPTION.
i `,
Contract Bond: The City may, in lieu of the City withholding retainage for the Project Work
Order, require the Contractor to submit a bond as protection and payment, in a form acceptable to
the City.
When the City requires a bond, the Contractor shall provide a bond in an amount equal to the
sum of: (1) one hundred percent (100%) of the attributed savings as guaranteed in the
Conservation Savings Project Work Order and (2) twenty-five percent (25%) of the total cost of
the installation, including Washington State Sales Tax. This total value shall cover faithful
performance of the Conservation Savings Project Work Order including the associated energy
savings guarantee, issued by a properly licensed surety company registered with the Washington
State Insdrance Commissioner. Surety must either appear on the United States Treasury r
Department's most current list (Circular 570 as amended or superseded) or the Surety must have
a current rating of at least A -:VII in A M. Best's Key Rating Guide.
The bond shall be on the form provided below.
At the conclusion of project performance, the City may accept a warranty bond to replace the full
performance and payment bond, which if accepted by the City, must be in force throughout the
warranty period including the period of time necessary to complete post -installation savings
verification, and shall be conditioned upon full performance of all obligations imposed upon the
Contractor and resulting contract including, without limitation, delivery and installation of
necessary equipment, in -warranty service, extended service and performance guarantee. The
Warranty Bond, if accepted, must be at least equal to the value of the guaranteed post -installation
savings attributed to the project, as specified in the Conservation Services Project Proposal for
the resultant Project Work Order.
The cost of the bond, and warranty bond if any, will be the Contractor's responsibility and shall be
reflected on their Conservation Services Project Proposal
See the Bond Form, Contract Bond Instructions and instructions for signature embedded below.
11. Federal Davis Bacon Labor Standards Provisions & Wage Index and Federal Bond
Requirements: For projects which are Federally funded, the Contractor and any subcontractor
shall abide by all Federal Davis -Bacon Labor Standards and shall not pay any laborer, worker or
mechanic less than the current prevailing hourly wage rates for the worker classifications that are
provided for under Prevailing Wages as issued by the State of Washington and U.S. Department
of Housing & Urban Development for the County in which the work shall be performed whichever
is higher. This includes Work Orders of any dollar amount (See Attachments #3, 4 and 5)
In the event the City authorizes a Work Order that will be funded by federal money in an amount
equal to or greater than $100,000, Contractor will be required to obtain a performance bond and a
payment bond, both equal to the full work order value. City will notify the Contractor of any
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E
E
ESCO Payment and
\Contract Bond
Contract Bond
Performance Bond.dc
Instructions 6-7-05
Prinapaf Signature Idi
11. Federal Davis Bacon Labor Standards Provisions & Wage Index and Federal Bond
Requirements: For projects which are Federally funded, the Contractor and any subcontractor
shall abide by all Federal Davis -Bacon Labor Standards and shall not pay any laborer, worker or
mechanic less than the current prevailing hourly wage rates for the worker classifications that are
provided for under Prevailing Wages as issued by the State of Washington and U.S. Department
of Housing & Urban Development for the County in which the work shall be performed whichever
is higher. This includes Work Orders of any dollar amount (See Attachments #3, 4 and 5)
In the event the City authorizes a Work Order that will be funded by federal money in an amount
equal to or greater than $100,000, Contractor will be required to obtain a performance bond and a
payment bond, both equal to the full work order value. City will notify the Contractor of any
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projects where this will be applicable prior to issuing the Work Order.
12. Payment/Pavment Procedures: Seattle agrees to compensate as specified herein, in
consideration of acceptable Contractor performance. Payment shall only be made for services
performed and/or product delivered, after receipt, review and authorization by the City. Such
payment shall be paid according to early payment discount terms, or if no early payment discount
is offered, thirty (30) days after the City's receipt and acceptance of the goods or completion and
acceptance of the services. Payment -periods will be computed from either the date of delivery an
acceptance of all goods ordered, the acceptance by the City of completion of all services, or the
date of receipt of a correct invoice, whichever date is later. This section is not intended to restrict
partial payments that are specified in the contract. All dollars referenced in this Contract and
attachments are US Dollars.
13. Invoices: Invoices must show a breakdown of services or products as requested by the Project
Manager. Invoices must show the Department and Project Manager including the Vendor
Contract number The Contractor will be furnished a list of invoice address of each City
department
14. Taxes. Fees and Licenses: 41
A Taxes: Where required by state statute, ordinance or regulation, Contractor shall pay for and
maintain in current status all taxes that are necessary for contract performance. Unless
otherwise indicated, Seattle agrees to pay State of Washington sales or use taxes on all
applicable consumer services and materials purchased. No charge by the Contractor shall be
made for federal excise taxes and Seattle agrees to furnish Contractor with an exemption
certificate where appropriate.
B Fees and Licenses. Contractor shall pay for and maintain in a current status, any license fees,
assessments, permit charges, etc., which are necessary for contract performance. It is the
Contractor's sole responsibility to monitor and determine any changes or the enactment of any
subsequent requirements for said fees, assessments, or charges and to immediately comply with
said changes during the entire term of this Contract. Contractor must pay all custom duties,
brokerage or import fees where applicable as part of the contract price Contractor shall take all
necessary actions to ensure that materials or equipment purchased are expedited through
customs.
C. Supplier is to calculate and enter the appropriate Washington State and local sales tax on the
invoice. Tax is to be computed on new items after deduction of any trade-in, in accordance with
WAC 458-20-247.
15. Delivery, Except when instructed otherwise, Delivery must be made during normal work hours
and within timeframes proposed by Contractor herein and as accepted by Seattle. Failure to
comply may subject Contractor to non-delivery assessment charges and/or damages as
appropriate. Seattle reserves the right to refuse shipment when delivered before or after normal
working hours. Contractor shall verify specific working hours of offices and so instruct carrier(s) to
deliver accordingly. The acceptance by Seattle of late performance without objection or
reservation shall not waive the right of Seattle to claim damages for such breach, nor preclude
Seattle from pursuing any other remedy provided herein, including termination, nor constitute a
waiver of the requirements for the timely performance of any obligation remaining to be performed
by Contractor. All deliveries are to be made to the applicable delivery location in accordance with
Interstate Commerce Commission rules or as indicated in Purchase Order. When applicable,
Contractor shall take necessary actions to safeguard items during inclement weather
16. Identification: All invoices, packing slips, packages, instruction manuals, correspondence,
shipping notices, shipping containers, and other written documents affecting this contract shall be
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identified by the applicable purchase order number Packing lists shall be enclosed with each
shipment, indicating the contents therein
17. Charges for Handling: No charges will be allowed for handling that includes but is not limited to
packing, wrapping, bags, containers, or reels, unless otherwise stated herein.
18. Contract Notices, Deliverable Materials and Invoices Delivery: The City of Seattle agent for
Contract changes shall be the City of Seattle Buyer named below, hereinafter referred to as
"Buyer ;Contract notices such as change requests, shall be delivered to the Buyer at the`
following addresses (or such other address as either party may designate in writing):
If delivered by the U.S. Postal Service, it must be addressed to:
Michael Mears
City of Seattle Purchasing and Contracting Services
PO Box 94687
Seattle, WA 98124-4687
If delivered by other than the U.S. Postal Service, it must be addressed to:
Michael Mears
= City of Seattle Purchasing and Contracting Services
Seattle Municipal Tower
7005 th Ave., #4112
Seattle, WA 98104-5042
Phone: 206-684-4570
Fax: 206-233-5155
E -Mail: michael mears(cDseattle goy
Project work, invoices and communications shall be delivered to the City Project Manager of the
specific Conservation Services Project.
19. Representations: Contractor represents and warrants that it has the requisite training, skill and
experience necessary to provide Work and is appropriately accredited and licensed by all applicable
agencies and governmental entities.
20. Warranties: Contractor warrants that all materials, equipment, and/or services provided under this
Contract shall be fit for the purpose(s) for which intended, for merchantability, are properly package,
proper instructions and warnings are supplied, that all goods comply with applicable safety and health
standards, that an MSDS Sheet is supplied as required by law, and that products or services conform
to the requirements and specifications herein. Acceptance of any service and inspection incidental
thereto by Seattle shall not alter or affect the obligations of the Contractor or the rights of Seattle
21. Independent Contractor: It is the intention and understanding of the Parties that Contractor shall be
an independent contractor and that Seattle shall be neither liable for nor obligated to pay sick leave,
vacation pay or any other benefit of employment, nor to pay any social security or other tax that may
arise as an incident of employment The Contractor shall pay all income and other taxes as due.
Industrial or other insurance that is purchased for the benefit of the Contractor shall not be deemed to
convert this Contract to an employment contract It is recognized that Contractor may or will be
performing work during the term for other parties and that Seattle is not the exclusive user of the
services that Contractor provides
22. Inspection: The Work shall be subject, at all times, to inspection by and with approval of Seattle, but
the making (or failure or delay in making) such inspection or approval shall not relieve Contractor of
responsibility for performance of the Work in accordance with this Contract, notwithstanding Seattle's
knowledge of defective or non -complying performance, its substantiality or the ease of its discovery.
Contractor shall provide sufficient, safe, and proper facilities and equipment for such inspection and
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free access to such facilities.
23. Title. Risk of Loss. Freight, Overages or Underages: Title of goods received under this contract
shall remain with the Contractor until they are delivered to the address specified, at which time title
passes to Seattle. Contractor agrees to bear all risks of loss, injury, or destruction of goods and
materials ordered herein which occur prior to delivery and acceptance. Such loss, injury, or
destruction shall not release Contractor from any obligations under. Prices include freight prepaid and
allowed. Contractor assumes the risk of every increase, and receives the benefit of every decrease,
in delivery rates and charges Shipments shall -correspond with the Contract; any unauthorized
advance or excess shipment is returnable at Contractor's expense.
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24. Performance: Acceptance by Seattle of unsatisfactory performance with or without objection or
reservation shall not waive the right to claim damage for breach, or terminate the contract, nor
constitute a waiver of requirements for satisfactory performance of any obligation remaining to be
performed by Contractor.
25. Affirmative Efforts for Utilization of Women and Minority Subcontracting and Employment,
Non discrimination in providing services:
A. EmploymenfActions: Contractor shall not discriminate against any employee or applicant for L'
employment because of race, religion, creed, age, color, sex, marital status, sexual orientation,
gender identity, political ideology, ancestry, national origin, or the presence of any sensory, mental or
physical handicap, unless based upon a bona fide occupational qualification. Contractor shall take
affirmative action to ensure that applicants are employed, and that employees are treated during
employment, without regard to their creed, religion, race, age, color, sex, national origin, marital
status, political ideology, ancestry, sexual orientation, gender identity, or the presence of any sensory,
mental or physical handicap. Such action shall include, but not be limited to employment, upgrading,
promotion, demotion, or transfer, recruitment or recruitment advertising, layoff or termination, rates of
pay, or other forms of compensation and selection for training.
B In accordance with Seattle Municipal Code Chapter 20 42, Contractor shall actively solicit the
employment and subcontracting of women and minority group members when necessary and
commercially useful for purposes of fulfilling the scope of work required for this Contract Contractors
shall actively solicit subcontracting bids from subcontractors as needed to perform the work of this
contract, from qualified, available and capable women and minority businesses. Contractors shall
consider the grant of subcontracts to women and minority bidders on the basis of substantially equal
proposes in the light most favorable to women and minority businesses. At the request of Seattle,
Contractor shall promptly furnish evidence of the Contractor's compliance with these requirements.
C. If upon investigation, the Director of Executive Administration finds probable cause to believe that
the Contractor has faded to comply with the requirements of this Section, the Contractor shall notified
in writing The Director of Executive Administration shall give Contractor an opportunity to be heard,
after ten calendar days' notice If, after the Contractor's opportunity to be heard, the Director of
Executive Administration still finds probable cause, s/he may suspend the Contract and/or withhold
any funds due or to become due to the Contractor, pending compliance by the Contractor with the
requirements of this Section
D. Any violation of the mandatory requirements of this Section, or a violation of Seattle Municipal
Code Chapter 14 04 (Fair Employment Practices), Chapter 14 10 (Fair Contracting Practices),
Chapter 20.45 (City Contracts — Non -Discrimination in Benefits), or other local, state, or federal non-
discrimination laws, shall be a material of contract for which the Contractor may be subject to
damages and sanctions provided for by the Vendor Contract and by applicable law In the event the
Contractor is in violation of this Section shall be subject to debarment from City contracting activities in
accordance with Seattle Municipal Code Section 20.70 (Debarment).
26. Equal Benefits: Compliance with SMC Ch. 20 45: The Contractor shall comply with the
requirements of SMC Ch 20.45 and Equal Benefits Program Rules implementing such requirements,
under which the Contractor is obligated to provide the same or equivalent benefits ("equal benefits") to
its employees with domestic partners as the Contractor provides to its employees with spouses. At
Seattle's request, the Contractor shall provide complete information and verification of the
Contractor's compliance with SMC Ch. 20 45 Failure to cooperate with such a request shall
constitute a material breach of this Contract. (For further information about SMC Ch. 20.45 and the
Equal Benefits Program Rules call (206) 684-0430 or review information at
http://cityofseattle net/contract/equalbenefits/ )
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Remedies for Violations of SMC Ch. 20.45: Any violation of this Section shall be a material breach of
Contract for which the City may:
A Require Contractor to pay actual damages for each day that the Contractor is in violation of
SMC Ch. 20 45 during the term of the Contract; or
B Terminate the Contract; or
C. Disqualify Contractor from bidding on or being awarded a City contract for a period of up to
five (5) years; or
D. Impose such other remedies as specifically provided for in SMC Ch. 20.45 and the Equal
Benefits Program Rules promulgated thereunder.
27. Publicity: No news release, advertisement, promotional material, tour, or demonstration related to
Seattle's purchase or use of the Contractor's product or services performed pursuant to this Contract
shall be produced, distributed, or take place, without the prior, specific written approval of the City's
Project Manager or his/her designee.
28. General Legal Requirements:
A. General Requirement: Contractor, at no expense to Seattle, shall comply with all applicable laws
of the United States and the State of Washington; the Charter and ordinances of Seattle; and
rules, regulations, orders, and directives of their administrative agencies and the officers thereof.
Without limiting the generality of this paragraph, the�Contractor shall specifically comply with the
following requirements of this section.
B Licenses and Similar Authorizations: Contractor, at no expense to Seattle, shall secure and
maintain in full force and effect during the term of this Contract all required licenses, permits, and
similar legal authorizations, and comply with all requirements thereof
C Taxes: The Contractor shall pay, before delinquency, all taxes, import duties, levies, and
assessments arising from its activities and undertakings under this Contract; taxes levied on its
property, equipment and improvements; and'taxes on the Contractor's interest in this Contract
29. American with Disabilities Act: Contractor shall comply with all applicable provisions of the
Americans with Disabilities Act of 1990 (ADA) in performing its obligations under this Contract. In
particular, if the Contractor is providing services, programs or activities to Seattle employees or
members of the public as part of this Contract, the Contractor shall not deny participation or the
benefits of such services, programs, or activities, to people with disabilities on the basis of such
disability Failure to comply with the provisions of the ADA shall be a material breach of, and grounds
for the immediate termination of, this Contract.
30. OSHAIWISHA: Contractor agrees to comply with conditions of the Federal Occupational Safety and
Health Acts of 1970 (OSHA), as may be amended, and, if it has a workplace within the State of
Washington, the Washington Industrial Safety and Health Act of 1973 (WISHA), as may be amended,
and the standards and regulations issued thereunder and certifies that ail items furnished and
purchased under this order will conform to and comply with said standards and regulations.
Contractor further agrees to indemnify and hold harmless purchaser from all damages assessed
against purchaser as a result of Contractor's failure to comply with the acts and standards thereunder
and for the failure of the items furnished under this order to so comply.
31. Prevailing Wage Requirements:
A. This contract is subject to prevailing wages, as required by RCW 39.12 (Prevailing Wages on
Public Works) and RCW 49.28 (Hours of Labor) as amended or supplemented.
B. Contractor and any subcontractors shall be responsible for compliance with all provisions herein
C. The awarded Contractor and all subcontractors shall file promptly with the Washington Department
of Labor & Industries (L&I) an Intent to Pay Prevailing Wage Form concurrent with the execution of
each Work Order. When approved by L&I, a copy shall be sent to the Project Manager before any
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work is performed. The City requests this be done on-line to allow for rapid verification of submittal.
http://www.Ini.wa.gov/TradesLicensing/PrevWage/default.asp. However, the City will accept forms
submitted through paper procedures. If the Contractor utilizes paper submittal, a copy of the
approved form shall be promptly provided to the Project Manager. Contractor is responsible for all
fees assessed by Washington L&I for all forms filed.
D. Contractor and any subcontractor shall not pay any laborer, worker or mechanic less than the current
prevailing hourly wage -rates for the worker classifications that are provided for under Prevailing Wages
as issued by the StAte of Washington for the County in which the work shall be performed.
E. Vocationally handicapped workers, i.e. those individuals whose earning capacity is impaired by
physical or mental deficiency or injury, may be employed at wages lower than the established prevailing
wage. The Fair Labor Standards Act requires that wages based on individual productivity be paid to
handicapped workers employed under certificates issued by the Secretary of Labor. These certificates
are acceptable to the Department of Labor and Industries. Sheltered workshops for the handicapped
may submit a request to the Department of Labor and Industries for a special certificate, which would, if
approved, entitle them to pay their employees at wages, lower than the established prevailing wage.
F. In certain situations, the Vendor may indicate an exception on the Intent Form which exempts the
requirement to pay at least prevailing wages rates for the following:
• Sole owners and their spouse.
• Any partner who owns at least 30% of a partnership.
• The president, vice-president, and treasurer of a corporation if each one owns at least 30% of
the corporation.
• Workers regularly employed on monthly or per diem salary by state or any political subdivision
created by its laws.
G. Prevailing Wage rates in effect at the time of bid opening, dated 8/31/06, are attached. These
wages shall remain in effect through 8/30/07, and be adjusted each year thereafter, to reflect the
current Prevailing Wage Rates. It is the sole responsibility of the Contractor to assign the appropriate
classification and associate wage rates to all laborers, workers or mechanics that perform any work
under this contract, in conformance with the scope of work descriptions of the Industrial Statistician of
the Washington State Department of Labor and Industries.
H. With each invoice, Contractor will attach or write a statement that wages paid were compliant to
applicable Prevailing Wage rates.
I. Upon Work Order completion, Contractor and each subcontractor shall then file the Affidavit of
Wages Paid (form L700-007-000) approved by the Industrial Statistician of Washington State L&I.
This may be performed on-line if the Contractor has initiated the original Intent to Pay Prevailing Wage
process on line. The receipt of the approved affidavit is required before Seattle can pay the final
invoice.
J. For jobs above $10,000, Contractor is required to post for employees' inspection, the Intent form
including the list of the labor classifications and wages used on the project. This may be postured in
the nearest local office, for road construction, sewer line, pipeline, transmission line, street or alley
improvement projects as long as the employer provides a copy of the Intent form to the employee
upon request.
K. In the event any dispute arises as to what the prevailing wages are for each Work Order, and the
dispute cannot be solved by the parties involved, the matter shall be referred to the Director of the
Department of Labor and Industries of the State of Washington. In such case, the Director's decision
shall be final, conclusive and binding on all parties. If the dispute involves a federal prevailing wage
rate, the matter shall be referred to the U.S. Secretary of Labor for a decision. In such case, the
Secretary's decision shall be final, conclusive and binding on all parties.
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31. Indemnification: To the extent permitted by law, the Contractor shall protect, defend, Indemnify and
hold the City harmless from and against all claims, demands, damages, costs, actions and causes of
actions, liabilities, fines, penalties, judgments, expenses and attorney fees, resulting from the injury or
death of any person or the damage to or destruction of property, or the Infringement of any patent,
copyright, or trademark, or trade secret arising out of the work performed or goods provided under this
Contract, or the Contractor's violation of any law, ordinance or regulation, contract provision or term,
or condition of regulatory authorization or permit, except for damages resulting from the sole
negligence of the City. As to the City of Seattle, the Contractor waives any immunity it may have
under RCW Title 51 or any other Worker's Compensation statute. The parties acknowledge that this
waiver has been negotiated by them, and that the contract price reflects this negotiation
32. Insurance:
A. Contractor shall at all times during the term of this Contract maintain the Insurance and/or self -
Insurance coverage's in force as specified below.
B. Contractor shall specify any deductible or self-insured retention in excess of $100,000 Payment of
any such deductible or self-insured retention shall be the responsibility of Contractor except to the
extent to which Seattle may be liable
C. Contractor and Seattle agree that the risk of accidental loss required to be covered by Insurance or
self -Insurance under this Section shall not be subject to any limitation of liability or similar provision.
D Certification of Insurance shall be issued to:
City of Seattle
Risk Management Division
P.O. Box 94669
Seattle, WA 98124-4669
Email: riskmanagement(Dseattle gov
Fax: {206) 615-0065 -
Certification shall:
a Include either an additional insured endorsement or a copy of blanket additional insured
policy wording that documents Seattle's status as an additional Insured (1), should third
party legal liability Insurance be self -Insured, Contractor shall disclose the self -Insured
retention(s), state that Seattle would be protected under the self -Insurance as an additional
insured to the same extent as if a primary commercial liability Insurance policy had been
issued and shall provide the address to which a tender of claim should be directed
b State that coverage shall not be cancelable without forty-five (45) days prior written notice of
cancellation, except ten (10) days notice with respect to non-payment of premium.
c. Should the City not provide any insurance requirements to the contrary within the RFP
and/or attached, the following requirements shall be in effect. Contractor shall maintain at its
own expense at all times during the term of this Contract the following insurance with limits of
liability consistent with those generally carried by similarly situated enterprise:
(1) Commercial General Liability insurance, including premises/operations,
products/completed operations, personal/advertising injury, contractual liability, fire
legal/tenant liability, stop,gap/employer's liability and independent contractors liability, (2) ;
if any vehicle, watercraft or aircraft is used in the performance of this Purchase
OrderNendor Contract, of a minimum of $1,000,000 per occurrence;
(2) Automobile Liability, Watercraft Liability and/or Aircraft Liability insurance, including
coverage for owned, non -owned, leased or hired vehicles, watercraft and aircraft, as
appropriate of a minimum of $1,000,000 per occurrence;; and
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(3) Worker's Compensation ("Industrial Insurance") as required by Title 51 of the Revised
Code of Washington.
(4) The insurance as provided under items (1) and (2) above shall include by endorsement
the City of Seattle as an additional insured (as respects item (1), per ISO form CG 20 10
or CG 20 26 or equivalent additional insured endorsement wording, or equivalent blanket
additional insured policy wording) and such additional insured status for the City shall
apply as respects the full limits of all valid and collectible Automobile Liability, Watercraft
Liability and/or Aircraft Liability insurance, whether primary, excess, contingent, or
otherwise, shall be primary insurance as respects the City, and any other insurance or
self-insurance maintained by the City shall be excess and non-contribututory with the
Contractor's insurance; and, shall be placed with insurers with not less than an A- VII
A.M. Best's rating unless insurance has been procured under the provisions of chapter
48.15 RCW (Unauthorized "Surplus Lines" Insurers). It is specifically agreed that the
insurance requirements in this section 2.18 shall override any limitation of liability or
similar provision in any agreement or statement of work between the City and the
Contractor and that no Contractor's insurer shall assert the right to invoke any such
limitation
(5) Contractor shall riot be required to provide evidence of insurance, unless required to do
so under the terms of a Request For Quotation (RFQ) or a Request For Proposal (RFP),
and should additional insurance requirements (including but not limited to higher limits of
liability) be specified in an RFQ or RFP, those requirements shall apply.
33. Audit: Upon request, Contractor shall permit Seattle, and any other governmental agency involved in
the funding of the Work ("Agency'), to inspect and audit all pertinent books and records of Contractor,
any subcontractor, or any other person or entity that performed work in connection with or related to
the Work, at any and all times deemed necessary by Seattle or Agency, including up to six years after
the final payment or release of withheld amounts has been made under this Contract. Such
inspection and audit shall occur in King County, Washington or other such reasonable location as
Seattle or Agency selects The Contractor shall supply Seattle with, or shall permit Seattle to make, a
copy of any books and records and any portion thereof. The Contractor shall ensure that such
inspection, audit and copying right of Seattle and Agency is a condition of any subcontract, agreement
or other arrangement under which any other person or entity is permitted to perform work under this
Contract.
34. Contractual Relationship: The relationship of Contractor to Seattle by reason of this Contract shall
be that of an independent contractor This Contract does not authorize Contractor to act as the agent
or legal representative of Seattle for any purpose whatsoever Contractor is not granted any express
or implied right or authority to assume or create any obligation or responsibility on behalf of or in the
name of Seattle or to bind Seattle in any manner or thing whatsoever.
35. Assignment and Subcontracting: Contractor shall not assign or subcontract any of its obligations
under this Contract without Seattle's written consent, which may be granted or withheld in Seattle's
sole discretion. Any subcontract made by Contractor shall incorporate by reference all the terms of
this Contract except for Equal Benefit provisions. Contractor shall ensure that all subcontractors
comply with the obligations and requirements of the subcontract, except for Equal Benefit provisions.
Seattle's consent to any assignment or subcontract shall not release the Contractor from liability under
this Contract, or from any obligation to be performed under this Contract, whether occurring before or
after such consent, assignment, or subcontract. '-
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36. Supervision and Coordination: Contractor shall:
• Competently and efficiently, supervise and direct the implementation and completion of all
contract requirements specified herein.
• Designate in its bid or proposal to Seattle, a representative(s) with the authority to legally commit
Contractor's firm. All communications given or received from the Contractor's representative shall
be binding on the Contractor.
• Promote and offer to Purchasers only those materials, equipment and/or services as stated herein
and allowed for by contractual requirements. Violation of this condition will be grounds for
contract termination. rUl
37. Involvement of Former City Employees: Contractor shall promptly notify Seattle in writing of any
person who is expected to perform any of the Work and who, during the twelve (12) months
immediately prior to the expected commencement date of such work or subcontract, was a City officer
or employee. Contractor shall ensure that no Work or matter related to the Work is performed by any
person (employee, subcontractor, or otherwise) who was a City officer or employee within the past
twelve (12) months; and as such was officially involved in, participated in, or acted upon any matter
related to the Work, or is otherwise prohibited from such performance by SMC 4 16.075.
38. Anti -Trust: Seattle maintains that, in actual practice, overcharges resulting from antitrust violations
are borne by the purchaser. Therefore the Contractor hereby assigns to Seattle any and all claims for
such overcharges except overcharges which result from antitrust violations commencing after the
price is established under this contract and which are not passed on to Seattle under an escalation
clause
39. No Conflict of Interest: Contractor confirms that Contractor does not have a business interest or a
close family relationship with any City officer or employee who was, is, or will be involved in the
Contractor selection, negotiation, drafting, signing, administration, or evaluating the Contractor's
performance.
40. No Gifts or Gratuities: Contractor shall not directly or indirectly offer gifts and resources to any
person employed by the City that is intended, or may be reasonably intended, to benefit the Vendor by
way of award, administration, or in any other way to influence purchasing decisions of the City. This
includes but is not limited to, City Purchasing office employees and City employees that do business
with, order, purchase or are part of decision-making for business, contract or purchase decisions
The Vendor shall not offer meals, gifts, gratuities, loans, trips, favors, bonuses, donations, special
discounts, work, or anything of economic value to any such City employees. This does not prohibit
distribution of promotional items that are less than $25 when provided as part of routine business
activity such as trade shows. Any violation of this provision may result in termination of this Contract
Nothing in this Contract prohibits donations to campaigns for election to City office, so long as the
donation is disclosed as required by the election campaign disclosure laws of the City and of the
State
41. Errors & Omissions: Correction. Contractor shall be responsible for the professional quality,
technical accuracy, and the coordination of all designs, drawings, specifications, and other services
furnished by or on the behalf of the Contractor under this Contract. The Contractor, without additional
compensation, shall correct or revise any errors or omissions in the designs, drawings, specifications,
and/or other Contractor services immediately upon notification by Seattle The obligation provided for
in this section with respect to any acts or omissions during the term of this Contract shall survive any
termination or expiration of this Contract and shall be in addition to all other obligations and liabilities
of the Contractor.
42. Intellectual Property Ricihts: Patents. Contractor hereby assigns to Seattle all rights in any
invention, improvement, or discovery, together with all related information, including but not limited to,
designs, specifications, data, patent rights and findings developed in connection with the performance
of Contract or any subcontract hereunder. Notwithstanding the above, the Contractor does not
convey to Seattle, nor does Seattle obtain, any right to any document or material utilized by Contractor
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that was created or produced separate from this Contract or was preexisting material (not already
owned by Seattle), provided that the Contractor has clearly Identified In writing such material as
preexisting prior to commencement of the Work. To the extent that preexisting materials are
incorporated into the Work, the Contractor grants Seattle an irrevocable, non-exclusive, fully paid,
royalty -free right and/or license to use, execute, reproduce, display, and transfer the preexisting
material, but only as an inseparable part of the Work.
43. Copyrights: ,For materials aqq documents prepared by Contractor in connection with the Work
Contractor shall retain the copyright (Including the right of reuse) whether or not the Work is
completed. Contractor grants to Seattle a non-exclusive, irrevocable, unlimited, royalty -free license to
use every document and all other materials prepared by the Contractor for Seattle under this Contract.
If requested by Seattle, a copy of all drawing, prints, plans, field notes, reports, documents, files, input
materials, output materials, the media upon which they are located (including cards, tapes, discs and
other storage facilities), software programs or packages (including source code or codes, object
codes, upgrades, revisions, modifications, and any related materials) and/or any other related
documents or materials which are developed solely for, and paid for by, Seattle in connection with the
performance of the Work, shall be promptly delivered to Seattle
Seattle may make and retain copies of such documents for Its Information and reference in
connection with their use on the project. The Contractor does not represent or warrant that such
documents are suitable for reuse by Seattle, or others, on extensions of the project, or on any other
project. Contractor represents and warrants that it has all necessary legal authority to make the
assignments and grant the licenses required by this Section.
44. Proprietary and Confidential Information: The parties agree that they will not permit the
duplication or disclosure of any information designated in advance by the other party as "Confidential
and Proprietary' to any person (other than Its own employee, agent, or representative who must have
such information for the performance of that party's obligations hereunder) unless such duplication,
use or disclosure Is specifically authorized in writing by the other party or is required by law. ,
"Confidential and Proprietary" information does not include Ideas, concepts, know-how or techniques
related to information that, at the time of disclosure, is in the public domain unless the entry of that
information into the public domain is a result of any breach of this Contract. Likewise, "Confidential
and Proprietary' information does not apply to information that is independently developed, already
possessed without obligation of confidentiality, or rightfully obtained from a third party without an
obligation of confidentiality.
Contractor's Understanding and Obligations
1. Contractor understands that any records (including but not limited to bid or proposal
submittals, the Contract, and any other contract materials) it submits to Seattle, or that are
used by Seattle even if the Contractor possesses the records, are public records under
Washington State law, RCW Chapter 42.17 Public records must be promptly disclosed
Upon request unless a statute exempts them from disclosure. Contractor also understands
that even if part of a record is exempt from disclosure, the rest of that record generally
must be disclosed.
2. Contractor must separate and clearly mark as "proprietary" information all records related
• to this Contract or the performance of this Contract that the Contractor believes are
exempt from disclosure. Contractor is to be familiar with potentially -applicable public -
disclosure exemptions and the limits of those exemptions, and will mark as "propnetary'
only information that the Contractor believes legitimately fits within an exemption and will
state the statutory exception upon which it is relying.
3. If Seattle notifies the Contractor of a public disclosure request, and the Contractor believes
records are exempt from disclosure, it Is the Contractor responsibility to make Its own
determination and pursue a lawsuit under RCW 42.17.330 to enjoin disclosure. The
Contractor must obtain the Injunction and serve It on Seattle before the close of business
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on the tenth business day after Seattle sent notification to the Contractor. It is the
Contractor's discretionary decision whether to file the lawsuit
4 If Contractor does not timely obtain and serve an injunction, the Contractor is deemed to
have authorized releasing the record.
5. Notwithstanding the above, the Contractor must not take any action that would affect (a)
Seattle's ability to use goods and services provided under this Contract or (b) the
Contractor's obligations under this Contract.
6. Contractor will fully cooperate with Seattle in Identifying and assembling records in case of
any public disclosure request.
Seattle's Obligations
1. Seattle will disclose those parts of records the Contractor has marked as "proprietary
information" only to authorized persons unless:
(a) the City receives a public disclosure request, in which case steps 2 and 3 below will
be exercised before release of the information; or
(b) The Contractor has given Seattle express advance wntten permission to disclose the
records "Authorized persons" means those City officers, employees, contractors and
consultants for whom the proprietary information is necessary to perform their duties
or obligations to Seattle. The term "proprietary information" does not include ideas,
concepts, know-how or techniques related to any information that, at the time of
disclosure, is in the public domain, unless the entry of that information into the public
domain is a result of a breach of this Contract.
2 If Seattle receives a public disclosure request for records that Contractor has marked as
"proprietary information", Seattle may promptly notify the Contractor of the request Seattle
may postpone disclosing these records for ten business days after it has sent notification
to the Contractor, in order to allow the Contractor to file a lawsuit under RCW 42 17 330 to
enjoin disclosure. It is the Contractor's discretionary decision whether to file the lawsuit
3 If Seattle has notified Contractor of a public disclosure request, and the Contractor has not
obtained an injunction and served Seattle with that inunction by the close of business on
the tenth business day after Seattle sent notice, Seattle may disclose the record
4. Seattle has no other obligations concerning records the Contractor has marked as
"proprietary information under this Contract Seattle has no obligation to claim -any
exemption from disclosure Seattle is not obligated or liable to the Contractor for any
records that Seattle releases in compliance with this Section or in compliance with the
order of a court of competent jurisdiction.
45. Interlocal Cooperation Act: RCW 39 34 allows cooperative purchasing between public agencies,
and other political subdivisions. SMC 20.60.100 aISO allows non profits to use these agreements
Such agencies that file an Intergovernmental Cooperative Purchasing Agreement with the City of
Seattle may purchase from Contracts established by Seattle. Unless Contractor declines on the
Contractor Offer to City, the vendor agrees to sell additional items at the bid prices, terms and
conditions, to other eligible governmental agencies that have such agreements with Seattle. Seattle
accepts no responsibility for the payment of the purchase price by other governmental agencies.
Should Contractor require additional pricing for such purchases, the Contractor is to name such
additional pricing upon Offer to Seattle.
19 of 24 McKinstry Essention Inc. ESCO Contract
Vendor Contract #0000001961
Attachment #1
46. Extra Work: Extra work shall be defined to include additional products or services ordered in
connection with this project other than that expressly provided for in the "Scope of Work" section of
this Contract. Contractor shall not proceed with extra work unless authorized by a written amendment
issued by the RFP Coordinator. Such extra work may be authorized by a Contractor proposal and a
written acceptance from the City through a Change Order issued to the Contractor, or may be
authorized by a Change Order signed by both parties, whichever the City Buyer requires Any costs
incurred due to the performance of extra work prior to execution of an amendment will not be
reimbursed under this Contract- or an amendment Notwithstanding the foregoing, the RFP
Coordinator may make reasonable and immaterial changes to this Contract, including place of
delivery, installation or inspection, the method of shipment or packing, labeling and identification,
extension of the contract, and ancillary matters that Contractor may accommodate without substantial
additional expense to Seattle.
47. Key Persons: Contractor shall not transfer or reassign any individual designated in this Contract as
essential to the Work, without the express written consent of Seattle, which consent shall not be
unreasonably withheld. If, during the term of this Contract, any such individual leaves the Contractor's
employment, the Contractor shall present to Seattle one or more individual(s) with greater or equal
qualifications as a replacement, subject to Seattle's approval, which shall not be unreasonably
withheld. Seattle's approval or disapproval shall not be construed to release the Contractor from its
obligations under this Contract.
48. Disputes: The parties shall endeavor to resolve any dispute or misunderstanding that may arise
under this Contract concerning Contractor's performance, if mutually agreed to be appropriate,
through negotiations between the Contractor's Project Manager and Seattle's Project Manager, or if
mutually agreed, referred to the City's named representative and the Contractor's senior executive(s).
Either party may decline or discontinue such discussions and may then pursue other means to resolve
such disputes including termination as allowed for within the contract, or may by mutual agreement
pursue other dispute alternatives such as alternate dispute resolution processes. Nothing in this
dispute process shall in any way mitigate the rights, if any, of either party to terminate the contract for
cause or convenience.
Notwithstanding all above, if Seattle believes in good faith that some portion of Work has not been
completed satisfactorily, Seattle may require Contractor to correct such work prior to Seattle payment.
In such event, Seattle will provide to Contractor an explanation of the concern and the remedy that
Seattle expects. Seattle may withhold from any payment that is otherwise due, an amount that Seattle
in good faith finds to be under dispute, or if the Contractor does not provide a sufficient remedy,
Seattle may retain the amount equal to the cost to Seattle for otherwise correcting or remedying the
work not properly completed.
49. Termination:
A. For Cause: Seattle may terminate this Contract if the Contractor is in material breach of any of
the terms of this Contract, and such breach has not been corrected to Seattle's reasonable
satisfaction in a timely manner
B. For Citv's Convenience: Seattle may terminate this Contract at any time, without cause and for
any reason including Seattle's convenience, upon written notice to the Contractor.
C. Non -Appropriation of Funds: Seattle may terminate this Contract at any time without notice due to
non -appropriation of funds, whether such funds are local, state or federal grants, and no such
notice shall be required notwithstanding any notice requirements that may be agreed upon for
other causes of termination
D. Acts of Insolvency: Seattle may terminate this Contract by written notice to Contractor if the
Contractor becomes insolvent, makes a general assignment for the benefit of creditors, suffers or
permits the appointment of a receiver for its business or assets, becomes subject to any
20 of 24 McKinstry Essention Inc. ESCO Contract
Vendor Contract #0000001961
Attachment #1
proceeding under any bankruptcy or insolvency law whether domestic or foreign, or is wound up
or liquidated, voluntarily or otherwise.
E. Termination for Gratuities: Seattle may terminate this Contract by written notice to Contractor if
Seattle finds that any gratuity in the form of entertainment, a gift, or otherwise, was offered to or
given by the Contractor or any agent therefore to any City official, officer or employee.
F Notice: Seattle is not required to provide advance notice of termination. Notwithstanding, the
'W_ Buyer may issue a termination notice with an effective date later than the termination notice itself
In such case, the Contractor shall continue to provide products and services as required by the
Buyer until the effective date provided in the termination notice.
G. Actions upon Termination: In the event of termination not the fault of the Contractor, Contractor
shall be paid for the services properly performed prior to the effective termination date that has
been specified by the Buyer, together with any reimbursable expenses then due, but in no event
shall such compensation exceed the maximum compensation to be paid under the Contract
Contractor agrees that this payment shall fully and adequately compensate Contractor and all
subcontractors for all profits, costs, expenses, losses, liabilities, damages, taxes, and charges of
any kind whatsoever (whether foreseen or unforeseen) attributable to the termination of this
Contract. Upon termination for any reason, Contractor shall provide Seattle with the most current
design documents, contract documents, writings and other product it has completed to the date of
termination, along with copies of all project -related correspondence and similar items. Seattle
shall have the same rights to use these materials as if termination had not occurred
50. Force Majeure — Suspension and Termination: In the event that either party is unable to perform
any of its material obligations under this Contract because of an event outside of the City's control,
including but not limited to natural or man-made disasters, or an action or decree of a superior
governmental body (hereinafter referred to as a "Force Majeure Event" or "Event"), the party that has
been so affected immediately shall give notice to the other party and shall do everything possible to
resume performance
Upon receipt of such notice, the affected party shall be excused from such performance as is affected
by the Force Majeure Event for the period of such Event. If such Event affects the delivery date or
warranty provisions of this Agreement, such date or warranty period shall automatically be extended
for a period equal to the duration of such Event
51. Major Emergencies or Disasters: The following provision shall be in effect only during major
emergencies or disasters when the City has activated its Emergency Operations Center and the
Contractor has been given notice by the City that such activation has occurred The City is committed
to preparing thoroughly for any mayor emergency or disaster situation As part of its commitment, the
City is contracting with the Contractor under the following terms and conditions: Contractor shall
provide to the City, upon the City's request, such goods and/or services at such time as the City
determines. In the event the Contractor is unable to meet the delivery date commitment due to
circumstances beyond the reasonable control of the Contractor, the Contractor shall make such
delivery as soon as practicable. If the Contractor is prevented from making such delivery to the
requested delivery location due to circumstances beyond its reasonable control, the Contractor shall
immediately assist the City in whatever manner is reasonable to gain access to such goods and/or
services In the event that the Contractor is unable to provide such goods and/or services as
requested by the City, the Contractor may offer to the City limited substitutions for its consideration
and shall provide such substitutions to the City as required above, provided the Contractor has
obtained prior approval from the City for such substitution. The Contractor shall charge the City the
price determined in this Contract for the goods and services provided, and if no price has been
determined, it shall charge the City a price that is normally charged for such goods and/or services
(such as listed prices for items in stock). In the event that the City's request results in the Contractor
incurring unavoidable additional costs and causes the Contractor to increase prices in order to obtain
a fair rate of return, the Contractor shall charge the City a price not to exceed the cost/profit formula
21 of 24 McKinstry Essention Inc. ESCO Contract
Vendor Contract #0000001961
Attachment #1
found in this Contract. The Contractor acknowledges that the City is procuring such goods and/or
services for the benefit of the public. The Contractor, in support of public good purposes, shall
consider the City as a customer of first priority and shall make its best effort to provide to the City the
requested goods and/or services in a timely manner. For purposes of this Contract, a "major
emergency" or "disaster" shall include, but is not limited to a storm, high wind, earthquake, flood,
hazardous material release, transportation mishap, loss of any utility service, fire, terrorist activity or
any combination of the above.
52. Debarment: In accordance with SMC Ch. 20.70, the Director of Executive Administration or designee
may debar a Vendor from entering into a Contract with the City or from acting as a subcontractor on
any Contract with the City for up to five years after determining that any of the following reasons exist:
a. Contractor has received overall performance evaluations of deficient, inadequate, or
substandard performance on three or more City Contracts
b. Contractor failed to comply with City ordinances or Contract terms, including but not limited to,
ordinance or Contract terms relating to small business utilization, discrimination, prevailing
wage requirements, equal benefits, or apprentice utilization
c Contractor abandoned, surrendered, or failed to complete or to perform work on or in
connection with a City Contract.
d Contractor failed to comply with Contract provisions, including but not limited to quality of
workmanship, timeliness of performance, and safety standards.
e. Contractor submitted false or intentionally misleading documents, reports, invoices, or other
statements to the City in connection with a Contract
f. Contractor colluded with another contractor to restrain competition.
g. Contractor committed fraud or a criminal offense in connection with obtaining, attempting to
obtain, or performing a Contract for the City or any other government entity
h Contractor failed to cooperate in a City debarment investigation
i Contractor failed to comply with SMC 14 04, SMC Ch. 14.10, SMC Ch 20.42, or SMC Ch.
20 45, or other local, State, or federal non-discrimination laws
The Director may issue an Order of Debarment following the procedures specified in SMC 20.70.050
The rights and remedies of the City under these provisions are in addition to any other rights and
remedies provided by law or under the Contract
53. Recycle Products Requirements: Whenever practicable, Contractor shall use reusable products,
recyclable products and recycled -content products including recycled content paper on all documents
submitted to the City. Contractors are to duplex all materials that are prepared for the City under this
Contract, whether such materials are printed or copied, except when impracticable to do so due to the
nature of the product being produced Contractors are to use 100% post consumer recycled content,
chlorine -free paper in such products that are produced for the City, whenever practicable, and to use
other paper -saving and recycling measures in business they conduct with and for the City. This
directive is executed under the Mayor's Executive Order, issued February 13, 2005.
54. Workers Right to Know: "Right to Know" legislation required the Department of Labor and Industries
to establish a program to make employers and employees more aware of the hazardous substances
in their work environment. WAC 296-62-054 requires among other things that all
manufacturers/distributors of hazardous substances, including any of the items listed on this ITB, RFP
or contract bid and subsequent award, must include with each delivery completed Material Safety
Data Sheets (MSDS) for each hazardous material. Additionally, each container of hazardous material
must be appropriately labeled with: the identity of the hazardous material, appropriate hazardous
warnings, and the Name and Address of the chemical manufacturer, improper, or other responsible
party Labor and Industries may levy appropriate fines against employers for noncompliance and
agencies may withhold payment pending receipt of a legible copy of the MSDS. OSHA Form 20 is not
22 of 24 McKinstry Essention Inc. ESCO Contract
Vendor Contract #0000001961
Attachment #1
acceptable in lieu of this requirement unless it is modified to include appropriate information relative to
"carcinogenic ingredients: and "routes of entry" of the product(s) in question
55. Miscellaneous Provisions:
A. Amendments: No modification of this Contract shall be effective unless in writing and signed by
an authorized representative of each of the parties hereto, except as otherwise authorized herein.
B Conflict: In the event of conflict between contract documents and applicable laws, codes,
ordinances or regulations, the most stringent or legally binding requirement shall govern and be
considered a part of this contract to afford Seattle the maximum benefits.
C Liens. Claims and Encumbrances: All materials, equipment, or services shall be free of all liens,
claims or encumbrances of any kind and if Seattle requests a formal release of same shall be
delivered to Seattle.
D Binding Contract, This Contract shall not be binding until signed by both parties The provisions,
covenants and conditions in this Contract shall bind the parties, their legal heirs, representatives,
successors, and assigns
E. Applicable Law/Venue: This Contract shall be construed and interpreted in accordance with the
laws of the State of Washington The venue of any action brought hereunder shall be in the
Superior Court for King County, Washington
F Remedies Cumulative: Rights under this Contract are cumulative and nonexclusive of any other
remedy at law or in equity.
G. Captions: All titles, including sections or subsections, are for convenience only and do not define
or limit the contents
H. Severability: Any term or provision of this Contract found to be prohibited by law shall be
ineffective to the extent of such prohibition without invalidating the remainder of the Contract.
Waiver: No covenant, term or condition or the breach thereof shall be deemed waived, except by
written consent of the party against whom the waiver is claimed, and any waiver of the breach of
any covenant, term or condition shall not be deemed to be a waiver of any preceding or
succeeding breach of the same or any other covenant, term or condition. Neither the acceptance
- by Seattle of any performance by the Contractor after the time the same shall have become due
nor payment to the Contractor for any portion of the Work shall constitute a waiver by Seattle of
the breach or default of any covenant, term or condition unless otherwise this is expressly agreed
to by Seattle, in writing. The City's failure to insist on performance of any of the terms or
conditions herein or to exercise any right or privilege or the City's waiver of any breach hereunder
shall not thereafter waive any other term, condition, or privilege, whether of the same or similar
type
J Entire Contract: This document, along with any attachments and work orders, constitutes the
entire agreement between the parties with respect to the Work. No verbal agreement or
conversation between any officer, agent, associate or employee of Seattle and any officer,
agency, employee or associate of the Contractor prior to the execution of this Contract shall affect
or modify any of the terms or obligations contained in this Contract. '�
K. Negotiated Contract: The parties acknowledge that this is a negotiated Contract, that they have
had the opportunity to have this Contract reviewed by their respective legal counsel, and that the
terms and conditions of this Contract are not to be construed against any party on the basis of
such party's draftsmanship thereof
23 of 24 McKinstry Essention Inc. ESCO Contract
Vendor Contract #0000001961
Attachment #1
L. No personal liability No officer, agent or authorized employee of the City shall be personally
responsible for any liability arising under this Contract, whether expressed or implied, nor for any
statement or representation made herein or in any connection with this Contract
IN WITNESS WHEREOF, in consideration of the terms, conditions, and covenants contained herein, or
attached and incorporated and made a part hereof, the parties have executed this Contract by having their
authorized representatives affix their signatures below.
McKinstry Essention, Inc. City of Seattle
By
Signature Date
(Printed Name)
Title
By
Signature Date
NANCY LOCKE, Purchasing Manager
24 of 24 McKinstry Essention Inc. ESCO Contract
I
Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
TABLE OF CONTENTS
EXPERIENCE............................................................................................................................ 1
MANAGEMENTAPPROACH
...................................................................................................14
COMPUTATION OF ENERGY BASELINE AND POST -INSTALLATION ENERGY USE ........30
RANGEOF SERVICES............................................................................................................38
SAVINGS AND EQUIPMENT PERFORMANCE GUARANTEES.............................................44
SUBCONTRACTINGPLAN.....................................................................................................52
FEESCHEDULE......................................................................................................................56
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October 6 2006 Request for Proposal - #FFD -1791
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Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFo-1791
EXPERIENCE
A. Describe Proposer's experience in auditing and identifying energy and utility
conservation projects. Provide a list of all projects completed in the past five
years, including contract value, client contact and client phone number. For firms
in business less than five years, document the above information for actual time
in business. The City seeks at least 8 projects within Washington, but preferably
no more than 15. If you do not have 8 projects within Washington, you may
provide experience and references for projects outside of Washington.
Key Points:
We have designed and implemented energy projects that range in size from $50,000
— $20,000,000
McKinstry Essention is evaluating, implementing, or commissioning over 400
buildings, in excess of 25 million square feet.
Our experience Includes over 40 municipal clients, 30 commercial and industrial
customers, and over 10 college and universities.
McKinstry Essention has a vast amount of experience with energy and utility conservation
projects. Our clients are a combination of public and private organizations that have
collaborated with us to reduce their annual utility costs and upgrade aging infrastructures.
McKinstry Essention has developed many innovative solutions that meet our clients' financial
and technical criteria. Even on remodel and new construction projects, McKinstry Essention
continues to provide energy and utility conservation solutions that leverage utility rebates and
ongoing savings to justify the project. We have designed and implemented projects that range
in size from $50,000 — $20,000,000 that have had energy rebates and resulted in annual energy
and utility savings. Our customers have consistently provided us with feedback that the projects
we have implemented have met their expectations in terms of innovation, quality, and realized
savings. Our specific project experience truly highlights our ability to identify, design, and
manage energy and utility conservation projects.
Currently, McKinstry Essention is evaluating, implementing, or commissioning over 400
buildings, in excess of 25 million square feet with over 70 clients with systems ranging from
packaged rooftop units to large central steam and cooling plants. McKinstry Essention has
worked or is working with over 10 colleges and universities, over 40 municipal clients (including
school districts, cities, public district hospitals, etc.), and 30 commercial and industrial
customers in various stages of development of energy utility and energy services work. Our
auditing staff is made up of energy engineers, commissioning engineers, and energy auditors
_ that have hundreds of years of direct auditing and field experience of existing facilities. Our
clients can therefore feel confident that we have the necessary expertise to- identify potential
energy savings opportunities and ensure all potential opportunities and needs are identified.
Request for Proposal — Page 1 of 60 -j%`j/
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Energy savings Performance Contracting
McKinstry Essention, InG City of Seatde
October 6, 2006 Request for Proposal - #FFD-1791
McKinstry Essention has completed a significant number of ESPC projects within the past five
years. Per the RFP request, we have provided a limited list of 15 projects that we have
completed. These projects were selected because they represent a broad range of facility type,
project size, tyke of project, and clients. Supplemental project information for projects
demonstrating the broad range of facility types, project sizes and project types we have
performed is available in Appendix A.
Client
Completed Phases
Contract Value
Client Contact
Phone
Washington State University
Approx. $20.0 million
Terry Ryan
509.335.9352
Eastern Washington University
Approx. $7.5 million
Shawn King
509.359.6878
Bethel School District
Approx. $2.8 million
Rob Van Syke
253.683.6080
Shoreline Community College
Approx. $650,000
Randy Stegineier
206.546.4503
Lake Washington School District
Approx. $1.9 million
Forrest Miller
425.882.5108
Cascade Natural Gas
Approx. $950,000
Mike Brooks
206.624.3900
Central Kitsap School District
Approx. $850,000
Richard Best
360.692.3106
Department of Ecology
Approx. $2.0 million
Steve Fry
360.407.6018
Department of General Administration
Approx. $1,500,000
Gint Lougheed
360.902.7262
Northshore School District
Approx. $500,000
Terry Taylor
425.489.6426
One Union Square
Approx. $3.0 million
Rick Mock
206.613.5351
Renton School District
Approx. $1,100,000
Ray Vogel
425.204.4408
Seattle Public Schools
Approx. $400,000
Frank Griffin
206.252.0000
Whatcom Community College
Approx. $750,000
Ray White
360.647.3278
University of Washington
Approx. $4.0 million
John Chapman
206.543.3860
Request for Proposal — Page 2 of 60Q�!try
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Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
B. Describe the Proposer's experience with designing, costing and managing the
construction of heating system upgrades (including steam), chilled water system
upgrades, heating and air conditioning systems, heat recover, energy
management and control systems, lighting and lighting control systems, water
conservation, and other utility system improvements;
Key Points:
■ McKinstry Essention has designed, budgeted, and managed all forms and sizes of
projects including chilled water systems, steam systems, ventilation systems,
building controls, lighting systems, water conservation, and other utility systems.
■ We have dedicated engineering and energy services groups that are experienced on
the latest technologies across all building disciplines related to energy performance.
■ Our engineers collaborate with our construction and service people to ensure their
designs account for construct -ability and ongoing maintenance issues.
■ We have decades of historical estimating information that is used when budgeting
projects. We provide construction grade, not engineering grade, estimates.
■ We are vendor neutral; however, we do have a number of staff members that are
well versed in Siemens control systems, as well as other control systems.
EXPERIENCE WITH DESIGNING
McKinstry Essention's engineering and design
knowledge related to designing utility and energy
conservation measures in both central and local
systems is powered by our depth of highly skilled
engineering staff and by our unique position in the
ESCO Industry as a 45 year old full service "Design
and Build and Operate" company. Although we
may not install all energy projects with McKinstry
Essention trades people, our engineering
knowledge capital has increased substantially due
to our design/build/operate cycle of services. Our
engineers have access to trades people and
construction professionals that allows for a blend of University of Washington Fisheries
strong engineering with real world construction
know-how. Furthermore, having designs reviewed by service professionals at McKinstry
Essention also addresses the element of understanding and respect for what it takes to
maintain equipment and systems after the implementation is completed.
McKinstry Essention has in-house access to 50 engineers, designers, and CAD staff, -20 of whtch_. _---�-�
are registered Professional Engineers in the State. We have a dedicated engineering group
located at our main office in Seattle with engineers well -versed in design and code
requirements in the City of Seattle. McKinstry Essention has been involved in all phases of utility
system planning, construction, and operation in projects throughout the Pacific Northwest. In
addition, we have been involved for the past several years with sustainable design concepts and
Request for Proposal - Page 3 of 60 Q���T
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Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 61 2006 Request for Proposal - #FFD -1791
organizations such as the U.S. Green Building Council. We have provided addition information
on this topic later in our response to this question.
We have designed in excess of 25,000 tons of chilled water plants in the last five years, and a
significant number of heating plants. In addition, we have designed ventilation systems for all
types of facilities Including office, lab, recreational, industrial, educational, and healthcare
facilities. Also, in the same time frame, we have performed the detailed hardware engineering,
wiring diagrams, and software programming for hundreds of energy management control
systems.
McKinstry Essention has implemented a significant number of Energy Services projects that
included a lighting system upgrade. We specialize in providing energy lighting retrofits and
lighting upgrades to facilities and have completed major renovations in sports arenas, offices,
classrooms, warehouses, labs, and other buildings. Our capabilities include 3D modeling of
interior and exterior lighting scenes, physical mock-ups, controls systems design, securing
energy rebates and incentives, and investment-grade facility audits.
In addition to HVAC and lighting measures, McKinstry Essention has developed and
implemented many water based conservation measures (irrigation, flow reducers, waterless
urinals, etc.), and even solid waste conservation measures such as solid waste pulpers and
trash compaction systems.
EXPERIENCE WITH MANAGING
In addition to the engineering and technical skills needed to perform thorough system selection
studies and system design, we also have managed the construction of many significant system
installations. The vast majority of this work has been focused on mechanical and electrical
system installations and upgrades, including chilled water systems, heating systems (hot water
and steam), ventilation systems, heat recovery systems (water and air -side) building controls,
electrical systems including lighting, and other mechanical and electrical work.
McKinstry Essention's construction experience enables our ESCO teams to successfully complete
construction projects for our many clients. Our construction experience is vast and includes
multiple cities/municipalities, university and college campuses, and a great number of school
districts, high tech and bio -tech facilities, as well as many other commercial buildings. Our
construction management teams utilize experience, technical tools and personal commitment in
delivering outstanding results and timely conclusions Plain and simple, McKinstry Essention
knows how to build projects and build them right!
Our project managers have significant experience and are well -versed in the technical tools and
planning- processes needed to-successfully-implement-ESCO-projects. ESCO projects are-ttnigue- -- --
from other construction projects, in that for most projects, the building(s) remain in operation
and occupied while projects are under construction. This means that clear communication,
thoroughly planned project schedules, project safety plans, detailed work plans with risk
management procedures, system shutdowns and interruptions, and other procedures are all
integrated into a seamless delivery.
Request for Proposal — Page 4 of 60 Q_ki7
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6 Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
After a project is approved, McKinstry Essention's first step is to finalize a detailed schedule and
work plan for the project. Many of these details will have been discussed during project
development. The scheduling and work planning process takes into consideration this
information, adds significantly more detail based on client input and direction, and crystallizes
the information so a clear path can be followed. All of our project managers utilize industry -
standard scheduling tools (i.e. Microsoft Project) to formulate schedules. In addition, McKinstry
Essention will develop a construction work plan that details out all of the major tasks associated
with construction and includes information such as the required completion date for each task,
the status of each task, the responsible party, potential risks, and proactive measures taken to
mitigate and minimize possible risks.
Finally, McKinstry Essention is involved In the service, maintenance, and operation of systems
and facilities. The best operations practices and knowledge gained from this hands-on
operations experience allows us a feedback loop to further refine our management process and
educate our project managers. We simply cannot and do not think of fobs being complete after
they are nista//ed. Rather, they must be operating as designed, integrated into the overall
operation of the facility, with client personnel trained and ready to assume operation of the
systems after our construction management presence has diminished. This mindset of leaving
the client with a fully functioning system and fully prepared to assume operation is Ingrained in
our delivery and culture.
EXPERIENCE WITH COSTING
McKinstry Essention's costing capabilities are second to none in the ESCO Industry—we
determine costs through a construction -grade estimating process, not an engineering -grade
estimate. We have dedicated in-house construction cost estimators with over 100 years of
combined estimating experience of mechanical, electrical, building controls, and other
construction disciplines. These personnel are supplemented with the latest in cost estimating
hardware and software, with digitized estimating stations and the latest cost estimating
software.
These capabilities are supplemented with decades of cost estimating data and knowledge
gained through the implementation of a vast number of projects. Our field tradespeople
continually provide feedback to our estimating group to adjust our labor factors based on job
conditions, project schedule, and other factors in order continually provide an extremely
accurate picture of project costs. The majority of our work is competitively procured—we know
how important It is to accurately estimate costs.
Why is this important? First of all, it ensures that project costs are not overly inflated to cover
risks and unknowns due to a lack of estimating knowledge. Since ESCO fees are typically
calculated as a percentage of project construction -costs, this also helps reduce project -costs. At
the same time, it protects our client from receiving estimates that are too low, as this could
potentially derail projects due to unforeseen, last minute costs.
Request for Proposal — Page 5 of 60 nstry
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SEnergy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFo-1791
EXPERIENCE WITH SUSTAINABILITY
McKinstry Essention is well -versed at integrating sustainable design practices and concepts into
our delivery process. We have the capabilities to review, analyze and participate in the design
of a multitude of sustainable building concepts. Our staff has been involved in this activity on
many projects and our resume of sustainable design and energy conservation projects is
extensive. We have participated in several LEED TM Certification studies and resulting designs
and we have 17 LEEDTm Accredited Professionals on staff.
We are fully supportive of the' prudent implementation of design concepts that benefit long-
term sustainability, as well as obtaining LEED EB (Existing Building) Certification when
applicable and desired by our clients. We are prepared to devote resources to participate in a
comprehensive Investigation and business case analysis of building sustainability issues.
CAPABILITIES
■ McKinstry is a fully participating member of the U.S. Green Building Council and our
staff includes members of the steering committee for the local Cascadia Chapter,
where we are a proud Gold Level Sponsor.
■ Our 50 person engineering team and 20 licensed L E E
professional engineers includes 17 LEED Accredited
Professionals.
■ Our energy & facilities services group includes 125 professionals including
mechanical designers, electrical designers, lighting designers and sustainability
specialists.
■ Throughout our organization we employ principles of sustainability, including CFC
recovery policies and programs in our extensive service organization, LEED-EB
certification programs delivered through our energy services group, LEED measure
and verification programs delivered through our facility management group and of
course extensive participation in LEED certification targeted design strategies
delivered on the majority of our design build projects.
■ We -have developed both an extensive sustainable measures library of initiatives and
an innovative score management and point evaluation tool to ease the LEED process
on our projects. This LEED tracking tool links to our Life Cycle Cost Modeling Tool
(TCO) to allow clients a comprehensive view of the decisions and implications that
the sustainable strategies deliver.
SUSTAINABILITY DESIGN PROJECTS, LEED TVI
STUDIES AND LEEDTM CERTIFIED PROJECTS
Our in-house personnel have participated in several LEEDTm design and cost studies and are
currently working on several projects submitting documentation for LEEDT"' Certification. This
list of projects includes projects that are:
On the Boards (current projects being developed with the intention to become LEED
Certified):
■ City of Post Falls, ID—Targeting LEED Gold Certification for new 41,000 s.f. City
Hall.
■ City of Spokane—Targeting LEED EB (Existing Building) Certification for upcoming
remodel of 150,000 s.f. City Hall completed through ESPC process.
Request for Proposal — Page 6 of 60�ITtry
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Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6 2006 Request for Proposal - #FFo-1791
■ UW DBOM Targeting LEED-CS Certification - $4,300,000.
■ Alley24 (180,000 s.f. office project in Seattle)—Targeting LEED-CS Certification -
$4,000,000.
■ 1900 Morrison Housing Authority of Portland (HAP) Building—Targeting LEED-
CS Certification – $2,000,000.
■ 1900 Morrison Condos (18 -story residential tower in Portland) Targeting LEED-
CS Silver Certification - $5,500,000.
■ Microsoft Building 7 & 99—Targeting LEED-CS Silver Certification – $18,000,000.
■ NBB) TI @ Alley24—Targeting LEED-CI Silver Certification – $1,200,000.
■ Skanska TI @ Alley24--Targeting LEED-CI Certification – $1,200,000.
• Bastyr University TI Targeting LEED-CI Silver Certification – $300,000.
Completed (projects for which our in-house engineers and tradespeople designed and installed
the mechanical systems that have attained LEED Certifications):
■ 307 Westlake—the country's first LEED-CS Silver Certified laboratory project –
$8,300,000.
■ Seattle Central Library—LEED-NC Silver Certified – $12,800,000.
■ ZGF Architects Seattle Offices—LEED-CI Certified – $245,000.
■ Department of Ecology—LEED-EB Silver Certified, completed through the ESPC
process – $2,000,000.
We have also participated in many other projects designed and constructed with LEED
standards used as a gauge to creating a mechanical system designed for sustainability. This
approach included projects such as:
■ The Sellen Office Building.
■ 428 Westlake for Tommy Bahama (a 90,000sf office in Seattle).
■ For the University of Washington South Lake Union expansion we created
innovative design solutions that not only qualified for design innovation LEED points
but also delivered substantial energy rebates for our client.
■ For the Central Laundry facility for the University -hospital system, McKinstry
delivered an innovative water recycling system that received the City of Seattle's
Leadership Award for water conservation projects.
■ For the State of Washington, McKinstry designed and delivered the largest solar
panel installation of its type at the State Capital Building in Olympia, where we
received special commendation from both the legislature and the governor for our
leadership in sustainability.
EXPERIENCE WITH ENERGY MANAGEMENT CONTROL SYSTEMS
Most energy projects typically include an energy management system upgrade component.
Understanding how various manufacturer's systems and products work and their respective
programming, integration capabilities, and limitations is key to optimizing facility performance.
Our staff is very knowledgeable on writing of specifications, sequence of operations, and point
lists to ensure that functionality and configuration of the specific control system is optimized
and energy savings are maximized. The EMCS systems typically include many functions that can
be utilized to track key performance indicators and other important energy features such as
Request for Proposal — Page 7 of 60 M-nstry
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Energy Savings Performance Contracting
McKinstry Essentlon, Inc City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
load shedding, capacity tracking, system optimization, system metering, remote monitoring,
remote alarming, temperature resets, variable frequency drives, and more.
Our relationship with all the major system manufacturers is un -matched in the industry. This
experience reaches all levels of expertise from design to construction to service. In addition,
McKinstry Essention has an in-house remote monitoring system with a total of nine control
system interfaces.
We have had an excellent working relationship with Siemens, Johnson Controls, Invensys (CCI),
and Alerton (ATS) for many years. We have worked with each vendor on hundreds of projects
with great success. Involvement in the construction activities through the years has given us an
excellent understanding of their systems and operations. We also have been involved at a
building operations level while working with their systems in buildings we now service and
maintain.
We not only have an excellent working relationship and experience with these outside
manufacturers, we also have an entire team in-house that is strictly devoted to finding and
providing energy management solutions for our customers. We can bring this expertise to the
City to properly analyze the very best value -based solution to the controls for each project.
EXPERIENCE WITH SIEMENS
In addition to our overall Energy Management & Control System (EMCS) experience and
knowledge, we also have significant experience working with Siemens. Over the past five years
we have subcontracted in excess of $6.5 million dollars of controls work to Siemens through
various ESCO and design/build projects.
On these projects we have interfaced with Siemens during the design process to coordinate the
mechanical system design with the control system. The coordination during the design effort is
critical in order to ensure the control system can meet the design intent of the system. During
implementation, our construction managers interface with Siemens' project managers
throughout the course of the project, providing the proper documentation and communication
in order for Siemens to successfully install their system. During the project commissioning
phase, our commissioning personnel work closely with Siemens to perform the point-to-point
and functional performance testing needed to guarantee optimal and correct operation.
In addition, our staff consists of many individuals (10+) formerly employed by Siemens, as well
as other personnel who work with Siemens systems on a regular basis. This in-house
experience includes individuals very knowledgeable with the programming, operation, and
functional capabilities of Siemens systems. Our commissioning group is routinely involved in the
point-to-point- testing of Siemens systems, as well as -the functional performance -testing -t-o— --
ensure proper operation. Our Remote Operations Center monitors in excess of 1,000,000
square feet of office, retail, and other facilities controlled with Siemens systems.
Request for Proposal - Page 8 of 60�nstry
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Energy Savings Performance Contracting
McKinstryEssention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
C. Describe the Proposer's experience securing utility incentives for its customers;
Key Points:
■ McKinstry Essention has rebate capture experience going back 20 years and has
captured over $8.0 million dollars of rebates for our customers.
■ Unlike annual utility savings, utility rebates are often paid with a single lump sum check,
so they can buy down the first cost of the project.
■ McKinstry Essention understands that rebate capture is as much about learning the ins
and outs of each utility company's program and people as it is about energy analysis.
■ McKinstry Essention works to get written confirmation from the utility regarding
Incentive amount before the energy services proposal in presented.
Seeking and securing utility incentives for our clients is a critical part of the financing ability an
ESCO brings to a performance contract. McKinstry Essention has found that the key to success
in securing utility incentives with the utilities is to ensure that the partnership begins from the
initial phases of the project and continues through to the performance assurance phase.
Typically, the conservation programs provide certain guidelines that must be met throughout
the development of the project in order to qualify for a rebate or incentive program. In
addition, incentive monies and rebates are paid directly to the owner with McKinstry Essention
operating as an advocate for the owner. A representative from the utility's conservation
program therefore is an important member of the project team to ensure that all necessary
milestones are met from the utility's perspective.
The approach to securing funding from local utilities typically proceeds in the following manner:
■ McKnstry Essention contacts the applicable utility during the preliminary scoping
phase in order to outline the potential project. Utility requests that a proposal or
specific forms to be completed, describing the project and intended audit and
calculation methodology.
■ Once the methodology is approved by the utility, the audit and calculation proceed
as planned. McKinstry Essention presents the final study to all parties.
■ The utility reviews the information provided and issues a letter of authorization or
intent stating the amount or type of funding secured for the project. This letter may
also contain a description of construction deliverables required, as well as an M&V
(measure & verification) plan that is required at the end of construction.
■ Once all construction deliverables are provided and the utility's M&V plan is fulfilled,
the owner can expect an incentive payment.
This partnering approach eliminates end -of -project conflicts regarding funding levels, and will
help -to expedite the final incentive payments to the owner. Our experience w1th the locaftebate-
programs will prove to be invaluab/e on this project. McKinstry Essention has strong
relationships with Seattle City Light, Seattle Public Utilities, Avista, Snohomish PUD, and Puget
Sound Energy, to name a few. These strong relationships ensures that a level of success that
will continue throughout the performance contracting process for our clients.
Request for Proposal — Page 9 of 60 rnstry
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Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
The following is a detailed list of utility rebate experience, detailing the project name, installed
ECMs, and the utility incentive amount.
Project Name
Owner/
Utility
Installed ECMs
Utility
Developer
ny
Rebate
The Rosen
Schnitzer NW
Seattle City Light
Efficient chillers,
$150,000
Budding
lighting and "cooling"
heat recovery
One Convention
Trammell Crow
Seattle City Light
AHU VFD's, efficient
$100,000
Place
chillers controls
Amazon.Com
Wright Runstad
Seattle City Light
Controls, AHU VFD's,
$350,000
heat recovery, efficient
chillers
AGC VFD
AGC Building
Seattle City 124ght
AHU VFD's, high
$30,000
Retrofit
efficiency motors
Seattle
First And Goal
Seattle City Light
High efficiency RTU's
$150,000
Exhibition
Center
Proctor
Proctor And
Puget Sound
Packaged VAV RTU's
$15,000
Associates
Energy
with VFD's
Touch -Stone
Touchstone
Puget Sound
Packaged VAV RTU's
$20,000
Corporation
Enerqv
with VFD's
Microsoft
Microsoft
Puget Power
AHU VFD's, lighting,
$200,000
Building #26
efficient chillers, garage
co sensors
Microsoft
Microsoft
Puget Power
AHU VFD's, efficient
$150,000
Building #27
chillers, garage co
sensors, OSA cot
sensors
Microsoft
Microsoft
Puget Power
AHU VFD's, efficient
$600,000
Redmond West
chillers, garage co
.t.
sensor, OSA coz sensors
•_
Willows Creek
Carr America
Puget Sound
Packaged VAV RTU's
$26,000
Energy
with VFD's
US Bank
Bellevue
Seattle City Light
AHU VFD's
-
$50,000
Building
Associates
Plaza Center
AHU VFD's
$90,000
Building
Bank Of
Seattle City Light
VAV system w/ AHU
$400,000
California
VFD's
Overlake
Overlake
Puget Sound
Ice storage, controls,
$100,000
Christian
Christian Church
Energy
lighting controls
Church
-
- --
^
The Space
Space Needle
Seattle City Light
Control retrofit, efficient
$20,000
Needle
Corporation
chillers, economizer,
VFD's
Kennewick
Kennewick
Benton Co. PUD
Lighting, Controls, OSA
$130,000
School District
School District
cot sensors
Request for Proposal — Page 10 of 60 �intry
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Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
Project Name
Owner/
utility
Installed ECMs
utility
Developer
Company
Rebate
Adobe
Quadrant
Seattle City Light
Controls, VFD's, lighting
$35,000
Fisher Plaza
Fisher
Seattle City light
Underfloor HVAC, Heat
$190,000
Phase One
Properties/Fisher
recovery on building
Broadcasting
exhaust, high efficiency
chillers and high
efficiency lighting.
1000 Dexter
Alper NW
Seattle City Light
Controls
$15,000
Westlake Center
Rouse Co.
Seattle City Light
Control retrofit, VFD's
$63,000
VFD's
Valley Office
Unico
PSE
Lighting control
$5,000
Park
Fofum Building
Private
Controls retrofit, VFD's
$3,,000
Group Health
Sabey
Seattle City Light
Controls retrofit, VFD's
$72,000
PEMCO
Pemco
Controls retrofit, VFD's,
$155,000
conversion of constant
volume to VAV.
Washington
Washington
Controls retrofit, VFD's,
$42,000
Mutual Aurora
Mutual
conversion of constant
Village
volume to VAV system
Lake
State Of
PSE
Controls retrofit, VFD's
$175,000
Washington
Washington
Technical
Colle e
Surrey Building
Private
Heat pump control
$20,000
retrofit
West Lake
Fisher Properties
Seattle City Light
Controls, VFD's, lighting
$20,000
Union Center
controls
Campus Square
JSH Properties
Controls retrofit, VFD's,
$60,000
conversion of constant
volume to VAV system
Hidden Valley
Metric
Controls retrofit, VFD's
$105,000
Office Park
12600 Factona
Alaska Teachers
Puget Sound
Controls retrofit, VFD's,
$350,000
Pension Fund
Energy
conversion of constant
volume to VAV system
One Renton
Unico
Controls retrofit, VFD's
$55,000
Place
Washington
Washington
Constant volume to
$175,000
Mutual Head
Mutual
VAV conversion,
Office Buildinq
controls retrofit VFD's
Metropolitan
Benaroya Capital
Controfs retrofit, VFD's
$72,000
Park East And
West
Key Services
Key Bank
Dual duct conversion,
$60,000
Tacoma
controls retrofit, VFD's
Operations
Center
Request for Proposal — Page 11 of 60 & tr
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Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
Project Name
Owner/
utility
Installed ECMs
Utility
Developer
Com any
Rebate
Westin Building
VFD's, low pressure
Seattle City Light
drop HX
$113,000
Museum of
Museum of Flight
VFD's, Controls,
_
Flight
Seattle City Light
Lighting
40 000
Washington
Washington
Lighting, Chilled Water,
$3,000,00
State University
State University
Avista
others
0
Eastern
Eastern
Washington
Washington
VFD, Lights, Controls,
University
University
Cheney Light
Cooling Tower
$150,000
North Mason SD
North Mason SD
Mason Co. PUD
Li hts controls
$115,000
One Union
VAV box Retrofit, "
Square
Unico
Seattle CityIighOl
Controls
$700,000
307 Westlake
Vulcan / Harbor
Cooling recovery,
Labs
Prop.
Seattle City Light
chillers CO2 controls.
$1441000
WAMU/SAM
Chillers, single zone fan
VFDs, delta P valves
(rebate amount
Pine Street
Seattle CityV htpending)
$200,000
UW Blueflame
Cooling recovery,
Vulcan / UW
Seattle City Light
chillers um VFDs
$60,000
Northshore
Schools
NSD
PSE
Retro -Commissioning
$180,000
WWU
Lighting, air
compressors, retro-
WWU
PSE 258 Program
commissioning
$138,000
UW Medical
Chillers (rebate amount
Center
UW
SCLpending)
$100,000
UW School of
Medicine
UW
SCL
Cyclotron cooling tower.
$501000
UW Fluke Hall
UW
SCL
VFDs Controls Lighting
76000
Zymogenetics
Earl Davies
Z mo enetics
SCL
Chillers Pump VFDs
$40,000
Microsoft
ECM Motors, VFDs,
121/122
Microsoft
PSE
Rooftop Units
$50,000
Equity Office
Energy Trust of
Rooftop Units and
Kruse Way
EOP
Oregon
Controls
$50,000
IBM Beaverton
Economizer controls,
Energy Trust of
VFDs, schedule
IBM
Oregon
reduction.(pending)
Abovenet
Central Chilled Water
_
Sabey I
Seattle ity Li—ht
Plant
Request for Proposal — Page 12 of 60`t
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Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFo-1791
D. Provide the qualifications and/or resumes of ESCO staff who will be assigned to
this project and of any sub -contractors included on the_Proposer's team;
Key Points:
■ McKinstry Essention's dedicated team for the City of Seattle brings together
personnel resources experienced and knowledgeable in all elements of performance
contracting.
■ Our team will utilize the experience and resources of the Rushing Group to support
our design and engineering efforts and will seek additional WMBE resources needed
to help deliver projects.
■ Our project team is easily scalable (up or down) to match the needs and schedule
requirements of the City.
-P With our professional staff of over 125 people, the majority of whom reside in
Seattle, we have the depth of resources needed to fully support all efforts for the
City of Seattle.
■ The McKinstry Essention team members will be directly Involved in all phases of
work related to the project.
McKinstry Essention's professional staff of over 125 people provides the depth of resources to
manage a wide variety of projects, from all facets including auditing, engineering, construction,
and performance assurance. We have 20 licensed professional engineers as part of our 50
person engineering talent pool and 74 construction managers. In addition, we are proud of the
real-world field knowledge we gain from the more than 350 union tradespeople we employ. We
provide a single point of accountability for all projects, with a depth of resources that allow us
to handle projects of all sizes.
In addition to the internal resources McKinstry Essention has at hand, we have also
supplemented our team with the Rushing Group. The Rushing Group is a WBE firm focused on
delivering energy efficient and sustainable design solutions for clients. In addition, their
engineering resources are extremely familiar with the codes and requirements associated with
the City of Seattle. Principals of the Rushing Group have served for six years on the City of
Seattle Construction Code Advisory Board (CCAB), as well as significant involvement in the
Washington State Energy Code Technical Advisory Group, and the City of Seattle Technical
Advisory Committees for both Mechanical and Energy.
As shown in our responses to questions A and B, we have extensive energy and performance
contracting experience that allows us to fully understand our client's needs and we expect high
standards of our team. Our extensive experience has proven that we have the skills,
knowledge, and attitude required to complete projects on time and within budget. Our
involvement can Easily -be varied depending upon the type -of -project and -the specific--needs-and-
outcomes desired for each project.
The resumes provided in APPENDIX B provide detailed information regarding the team
members we have available to fulfill the roles we describe in MANAGEMENT APPROACH —
Question E.
Request for Proposal — Page 13 of 60Q�!_try
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Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
MANAGEMENT APPROACH
E. Provide the Proposer's organizational structure and management approach to
the project. Clearly describe the roles and responsibilities of all ESCO staff who
will be assigned to this project and of any sub -consultants included on the
Proposer's team. For sub -consultants describe the Proposer's prior experience
working with the sub -consultant;
Key Points:
■ Our management approach is focused on delivering innovative solutions that meet
our clients' needs as the single -point -of -accountability for the entire project.
■ McKinstry Essention's organizational structure is set up to ensure clear
d`f communication with the client and efficient development and execution of projects.
■ We have documented role responsibilities and processes in place to ensure strict
quality -control during development, implementation, and ongoing performance
assurance.
■ Our project teams are scalable to meet the schedule requirements of the City—we
will develop and execute work at your pace.
■ Our team includes The Rushing Group, a WMBE organization, who will support the
design and engineering analysis of projects.
MANAGEMENT APPROACH
McKinstry Essention's management approach is committed to ensuring the successful
development and installation of projects that ensure system performance, improved operations,
enhanced standards of comfort, on-going performance assurance, and guaranteed occupant
satisfaction... For The Life of Your Building.
Our management philosophy is developed around a client -centered approach, with McKinstry
< Essention the single point of accountability for all aspects of a project. ,Our processes and
procedures are well-defined, yet flexible enough to be tailored to the needs of each specific
client and/or project.
The management sequence of a project from development to ongoing performance assurance
typically flows as follows:
Sec
luence
Actions and Results
1
Establish
We strive to establish the goals and objectives of a project as
Project
early as possible, and truly understand what benefits the client
Objectives
wants to achieve through a performance contracting program.
Gaining this understanding early in the process he[p§ tailof our
delivery and sharpen our focus on solutions consistent with
the City's requirements.
Request for Proposal — Page 14 of 60 Q_�Ttry
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Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
Sequence
Actions and Results
2
Preliminary
The Preliminary Facility Assessment is focused on developing
Facility
initial information to help gauge the viability of potential
Assessment
projects. We will interview site staff, gather information,
perform site surveys, develop preliminary information, and
gain an understanding of the future use and requirements for
the facilities. We will begin to gather utility data and place
logging and data acquisition instruments. We will complete
this at our own risk, with the hope that any project determined
viable would be pursued in greater detail. We would work with
the City of Seattle determine the financial criteria for success
required, as well as other desired achievements.
3
Directed
This is the investment grade audit stage. A detailed ajidit apd
Engineering
complete energy analysis is conducted to determine the
Study
savings for each measure identified. In addition, during this
time, guaranteed maximum project costs are developed for
the scopes of work. McKinstry Essention also works with the
utility companies during this time to identify and define the
utility funding component of any project. We also work closely
with the customer during this process to ensure that time
spent on this assessment will be focused on those initiatives
that have a strong possibility of implementation. The outcome
of this phase is the delivery of a Conservation Services Project
Proposal that includes scope of work, guaranteed costs,
guaranteed savings, a performance assurance plan, and other
information.
4
Installation of
Once a thorough review of the Conservation Services Project
Conservation
Proposal is completed by the City of Seattle and the scope of
Measures
work is accepted, we will begin implementation of selected
measures. Implementation may include finalization of the
detailed design, schedule preparation, as well as solicitations
of bids from selected suppliers and sub -contractors. We then
continue our commitment to single -point accountability and
install the project on time and on budget.
5
Project
McKinstry Essention provides thorough project completion
Completion
services to ensure projects function properly after completion.
Services typically include a comprehensive commissioning
program, a thorough training program for City maintenance
personnel, development of project documentation (as-builts,
O&M manuals, maintenance plan -development), and -other-
therconstruction
constructionclose-out related activities.
6
Ongoing
■ Ongoing Energy Savings Verification & Performance
Verification,
Assurance
and
■ Warranty Services
Performance
■ Ongoing Utility and Energy Services Support
Assurance
Request for Proposal — Page 15 of 60 QES
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Energy Savings Performance Contracting
McKins&y Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
ORGANIZATIONAL STRUCTURE
Our commitment to every project is to assign dedicatpd team of qualified professionals, with the
required skills to develop and implement a successful project. We structure our team to ensure
a single -point of accountability and contact for our clients through a Project Director. The
Project Director quarterbacks the team in assuring the overall success of the project and
customer satisfaction. The Project Director is supported in three areas by:
1. Analysis and solutions development, auditing, and engineering which is lead by a Sr.
Program Manager.
2. On time solutions implementation through construction management is lead by the
Construction Manager.
3. Assuring savings and ongoing performance assurance is lead by the Performance
Assurance Specialist.
Appendix B includes a Project Organization Chart for the City of Seattle and outlines our team
structure and resumes. The resumes describe the specific role assigned to the various team
members for the City of Seattle, and their associated duties and responsibilities.
McKinstry Essention is fortunate to have a significant wealth of personnel resources in-house.
This advantage helps us provide a consistent delivery across projects, scale our teams to meet
project requirements, and structure our teams so personnel qualifications are aligned with the
needs of the client and projects. These in-house resources include program managers,
mechanical engineers, electrical engineers, energy engineers, lighting engineers, construction
managers, performance assurance specialists, commissioning technicians and commissioning
agents, project directors, and other various support personnel.
For the City of Seattle project, we have chosen to supplement our internal team resources with
those of the Rushing Group, a WMBE firm specializing in engineering, design, and sustainable
building solutions. For the City of Seattle projects, the Rushing Group will work with our
development and design teams to deliver innovative solutions that meet the criteria of the City.
In addition, key personnel from the Rushing Group are leading experts on the interpretation
and application of local codes, with experience that includes serving on the City of Seattle
Construction Code Advisory Board, Washington State Energy Code Technical Advisory Group,
and the City of Seattle Technical Advisory committees for Mechanical and Energy. This
knowledge will supplement our engineering experience and knowledge of the City of Seattle
design and code requirements. We have utilized the resources of the Rushing Group on over 20
projects within the past year and have a great working relationship with their organization.
From time to time, it is necessary to supplement our team with additional resources based on
- - - - the needs of the project. These resources -could potentiaAy include -structural,-arrF�tih_ .e i�ral-,— -
acoustical, or other design consultants. Our partners on past projects have included CTA
(electrical), Kia Co. (structural), Yantis Acoustical Design (acoustics), Zimmer Gunsul Frasca
Partnership (architecture).
Request for Proposal - Page 16 of 60 N try
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6 Energy Savings Performance Contracting
McKinstry Essentron, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
F. Describe the method for contracting the installation of the measures, and how
the Proposer, as the prime, will maintain cost competitive pricing, and whether
the Proposer uses open book pricing. For Proposers who intend to self -perform
components of the installation and/or who represent equipment vendors, the
method for maintaining cost competitive pricing will be critical;
Key Points:
■ We will actively pursue involvement from WMBE firms to take part in delivering the
installation of projects.
■ Pricing and mark-ups are presented in a straightforward manner that is 100% open
book.
■ We will leverage our significant local buying power to obtain the lowest possible
prices for,all prpject_%� _ ,
■ We are vendor neutral and not aligned with any specific equipment manufacturer.
■ Clients often leverage our self -performance contracting capabilities in order to
receive the lowest cost, rapid turnaround, and overall best value.
CONTRACTING METHOD
Our contracting approach is focused on delivering the highest quality installation at the lowest
possible cost, while meeting the project schedule and minimizing disruptions to client facilities.
When we develop our contracting plan, this philosophy is first and foremost in our minds and
guides our decisions as we proceed.
McKinstry Essention has a very competitive fee and mark-up structure. Simply put, our business
model does not require the same profit targets as national ESCO firms which allows McKinstry
Essention's clients to complete the most project for the lowest cost. Our philosophy has always
centered on developing long term partnerships with our great clients. As such, our interest is
not focused on developing confusing pricing in order to hide an extra buck. Rather, we believe
that fair and open pricing develops a level of trust that will benefit all parties through a long
term relationship. 1,
Our fee and mark-up structure is presented in an open book pricing format for all projects. This
pricing format will allow the City of Seattle to review our direct costs, overhead, mark-up,
discounts, and labor rates. We have used this format with all of our customers in order to
confirm competitive pricing. Specific cost and fee information is detailed in FEE SCHEDULE —
Question R.
While many ESCOs take a 'briefcase' approach to project management, we believe that a
hands-on approach is critical to minimizing costs and control of projects. With that in mind, our
construction -teams are set up -to -minimize multiple -tiers of contractors, -thereby- savings mark -up --
costs, and have a McKinstry Essention representative as the single point of accountability for
the day-to-day on-site management of construction. We simply believe that this position is too
important to subcontract to another firm.
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While all projects are different, we typically will subcontract and directly manage the following
categories of work including mechanical, electrical, controls, structural, and general
construction. In addition, depending on the scope, we will even separate these categories
further and specifically directly manage the mechanical dry side (sheet metal), mechanical wet
side (piping), painting, demolition, lighting, and other work in order to minimize second and
third levels of mark-up that would occur by contracting the project to one or two major
subcontractors.
We also have the capability to self -perform mechanical and electrical work with in-house
personnel when it provides a benefit to the project and client. Many clients request that we self -
perform the applicable components of the installation because they realize they receive the best
value under this approach. The value is realized• through eliminating tiers of mark-up by utilizing
in-house forces. In addition, with in-house capabilities, we have the ability to rapidly engage
our construction services on projects that require aggressive schedules, which can further
reduce project costs.
COST COMPETITIVENESS
Below are the key aspects of our approach to ensuring cost competitiveness, while maintaining
a turnkey quality project. However, we also appreciate that these projects are only successful
when a partnership is established with the City of Seattle. Therefore, we welcome the
opportunity to work closely with the City to ensure competitiveness through this project, and
work to develop a specific process that will meet the City's requirements. Below are the key
aspects of our approach that we have used with energy projects to ensure cost
competitiveness.
1. Our business is facility infrastructure upgrades. We complete in excess of $150
million annually as a local design -build solutions provider. To complete this volume
of work annually, two critical items must be in place. First, our clients rely on us to
" provide the "Best Total Solutions"; secondly, we provide thirse solutions at the best
value that ensures our clients of the best overall pricing. We are expert budgeters
and cost estimators, which will ensure that the first budgets established at the
beginning of the project will not dramatically fluctuate through the development
process.
2. An "open -book" pricing approach and a guaranteed maximum pricing (GMAX)
agreement will ensure that any cost advantages gained through the construction
process will be fully (100% of construction savings) realized by the City of Seattle.
— - 3.-t4cKinstry -Essention -has the in -house -engineering and- professional service -expertise - -
to provide solutions that will meet the first cost and long-term life cycle operating
needs of the City of Seattle. Our engineering fees are always lower than those of
stand-alone consulting firms. Our fee is always on the lower end of the range if we
are self -performing the work based on our integrated delivery method that takes
standard engineering drawings and creates field construction drawings. This process
of design -build also reduces the number of typical field changes that may occur.
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4. We competitively bid.major equipment. Based on the volume of mechanical and
electrical equipment McKinstry Essention purchases annually, the equipment pricing
we receive directly will be the most competitive, and will provide the City of Seattle
with a negotiated advantage regarding extended warranties.
5. We competitively bid subcontractors. McKinstry Essention will develop the detailed
scopes of work required to receive competitive bids from qualified subcontractors
that are also acceptable to the City of Seattle. We will bid the work to qualified
contractors, and ensure that the scope of work is maintained with no cost increases.
We will share all subcontractor costs with the City of Seattle, in keeping with our
open -book approach.
6. All available utility rebates will be secured. McKinstry Essention has secured over
$8.0 million in utility rebates for our clients. We have a dedicated in-house energy
services team that understands how to optimize these rebates for our clients. We
will work diligently with your staff to secure rebates. McKinstry Essention is unique in
this regard; not only will we be providing the City of Seattle with the most
competitive pricing, we will dramatically reduce the first cost by securing rebates.
We have found that through our integrated delivery method we optimize these
rebates. Most other delivery methods fall short in delivering the best first cost, while
optimizing energy savings and therefore utility rebates. It is a complex balance that
we have mastered for our clients.
7. We provide an aggressive solution development and implementation timeline. As
energy rates continue to impact your operation, any energy savings solutions should
be brought online in short order. We are currently working with many clients, using
our integrated delivery method, to implement needed solutions and energy savings
solutions on a fast-track to optimize utility rebates and savings.
8. Finally, we are committed to staying within the final proposal prices we provide for
all scopes of work. Our goal is to be your single -point of accountability, therefore No
Scope Modifications - No Change Orders.
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G. Identify how potential hazardous materials encountered in the installation of
energy conservation measures will be managed; and whether the Proposer has
been cited by the Washington Department of Ecology, Federal Environmental
Protection Agency, or any other regulatory agency for inappropriate handling,
transportation or disposal of hazardous materials;
Key Points:
• Hazardous materials—not just our client's concern.
■ We have a $5,000,000 pollution liability insurance policy.
■ We work diligently to develop a specific hazardous material work plan and strategy
for every project.
■ We are a certified Green Works company, which has never been cited by any
regulatory agency. t
■ McKinstry Essention works hand-in-hand with clients to develop the most effective
methods to mitigate hazardous material on every project.
McKinstry Essention recognizes the critical nature of the various hazardous materials
encountered while performing energy related work. We recognize that many of the facilities
that we complete work in were constructed with materials that pose hazards when
encountered on projects. In response to this potential risk, McKinstry Essention is covered
through a $5,000,000 pollution liability insurance policy.
During the course of a project, McKinstry Essention takes the lead role in addressing and
managing any hazardous materials. We require all McKinstry Essention projects to have a
"Good Faith Survey" for hazardous materials before performing work in a facility. Upon
careful review of the survey, if any hazardous materials are identified, a management plan
will be created before there is any potential exposure of the hazardous material to McKinstry
Essention personnel and building occupants. McKinstry Essention will manage the lawful
abatement process through a subcontractor (approved by the City). If hazardous materials
are found during construction, all construction activities will cease or move to other work
areas until the abatement process is complete. McKinstry Essention has never been cited by
any governmental or regulatory agency for inappropriate handling, transportation, or
disposal of hazardous materials.
In an effort to provide our customers with further piece of mind, McKinstry also supports
green building initiatives. McKinstry Essention is a certified Green Works company, and also
has LEEDTM accredited professionals on staff. We make a strong commitment to prevent
waste, recycle, and use recycled products on our construction projects.
Appendix C provides -a sample -plan developed for -the handling, removal, and -disposal-of --
PCB materials (typically encountered in older lighting system ballasts) on a recent project.
On this particular project, the work was completed by McKinstry Essention. On a project
where work would be completed by subcontractors to McKinstry Essention, applicable
language would be modified in order to ensure that the contractor adhered to the same
policies and standards outlined in the plan. -
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I. Specify the Proposer's policies and procedures for recycling materials such as
lamps, ballasts, fixtures, ceiling tiles, and, other recyclable materials;
Key Points:
• McKinstry Essention develops a comprehensive waste management plan for all
projects which includes a recycling component.
• Our design and implementation processes are geared towards actively reviewing and
minimizing the amount waste generated during construction.
■ For existing material removed from the job, we strive to divert as much material as
possible from the waste stream, either through re -use, salvage, and/or recycling
opportunities.
• We are very familiar with the LEED process and the Impact of recycling and diverting
-' materials from the waste stream. A
McKinstry Essention is committed to sustainable design and construction, and as such, we
believe in developing and executing a comprehensive waste management plan that seeks to
minimize the waste stream from projects whenever feasible. Our waste management plan not
only considers the existing materials that need to be removed from the Jobsite, but also the
construction methods and materials that will be used for any new work being Installed. The
following paragraphs describe the various components we take into consideration throughout
the duration of the project are described.
IDENTIFICATION OF MATERIALS FOR REMOVAL
The majority of all ESPC projects focus on the renovation or replacement of existing energy -
consuming systems such as lights, boilers, chillers, ventilation systems, and other equipment.
Due to the nature of the projects, much of the existing materials need to be removed as part of
the project. Prior to the beginning of any project, McKinstry Essention identifies all of the
material to be removed, including the disposal method and handling procedure. While most of
the materials are typically of the metal or glass variety, it is common to also encounter other
materials that need to be removed in -order to support either the replacement of the primary
equipment or the installation of the new systems. The following table is an example of the initial
material identification survey.
Material
Quantity
Disposal Method
Handling Procedure
Clean dimensional
Keep separate for reuse by
Keep separated in
wood and palette
on -side construction or by
designated areas on
wood
site employees for reuse in
site. Place in'Clean
home projects. Recycle at
Wood' container.
local recycling centers.
Plywood,_ OSB, particle
Reuse (preferred), landfill_
Keep separated in
board
-
designated areas on
site. Place in 'Trash'
container.
Painted or treated
Reuse (preferred), landfill
Keep separated in
wood
designated areas on
site. Place in'Trash'
container.
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Material
QUantity
Disposal Method
Handling Procedure
Concrete, brick,
_
Recycle
aggregate
Concrete masonry
Keep separate for re -use by
Keep separated In
units
on-site construction or by site
designated areas on
employees
site.
Metals
Recycle at local recycling
Keep separated in
center
designated areas on
site. Place in'Metals'
container.
Gypsum drywall
Recycle at local recycling
Keep scraps separate
(unpainted)
center
for recycling — stack on
�.
pallets provided on site.
All scrap drywall will be
taken back by
contractor to drywall
supplier.
Insulation
Reuse referred landfill
Flooring
Reuse referred landfill
Carpet and pad
Reuse or recycle with carpet
manufacturer
Lamps (non-
Recycle at local recycling
Keep separated in
hazardous)
center
designated areas on
site.
Glass products
Recycle at local recycling
Keep separated in
center
designated areas on
site.
Paper products
Recycle at local recycling
Keep separated in
center
designated areas on
site.
PROJECT RECYCLING, FIELD OFFICE
Our field office will sort paper and other waste stream items such as aluminum cans for disposal
in the project recycling center. Additionally, we will utilize computer-based detailing and project
management systems to maximize the drive toward paperless documentation and shop
drawings. This will both reduce the waste stream and properly recycle the waste products.
McKinstry Essention's clean up crews will be directed to sort construction waste into paper,
cardboard, wood and waste products and dispose of them in jobsite recycling dumpsters.
Maximizing off-site fabrication of ducting and piping systems will reduce packaging and shipping
waste and contain the waste stream created wherever possible off-site where recycling can be
-both more -effective. -and more -cost efficient. --
DESIGN ENGINEERING
We believe the most successful waste management strategy is to minimize products, materials,
and construction techniques that generate waste. To this point, throughout the design process,
one of the key variables considered is the impact of design selections and options on the waste
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stream. The waste factor is weighed against other design criteria in order to provide the best
overall solution to our client.
FABRICATION STRATEGIES
Should McKinstry Essention be involved directly with sheet metal fabrication, we will utilize
processes that minimize scrap metal generated. Our computerized layout system uses
sophisticated computerized nesting software to utilize the minimum metal sizes for fitting
fabrication. All scrap metal produced in the fabrication process will be recycled at our Seattle
fabrication facility. We will also utilize our shop facility for staging of waste intensive material
items so that recycling activities can be performed in a location more suitable to maximizing our
recycling efforts.
EQUIPMENT PACKAGING STRATEGIES - r
McKinstry Essention will implement meetings with each equipment supplier to optimize shipping
packaging to minimize the waste stream shipped to the jobsite. These meetings will emphasize
the utilization of recycled products for packaging, minimized packaging requirements and
reusable packaging that can be returned to the vendors for reuse on future packaging.
Preliminary discussions with vendors suggest that significant reduction to the waste stream is
possible through this effort.
CONTRACTED WORK
Many ESPC projects require a significant portion of subcontracted work. For this work, it is
necessary to communicate the waste management plan effectively to all potential
subcontractors so necessary recycling and waste management actions can be imbedded into
their scope. During the planning and bidding of work, all subcontractors are made aware of the
waste management plan and the recycling and sustainability goals for the project. Once
projects move into construction McKinstry Essention actively manages and tracks the recycling
and waste management efforts for all contractors through the completion of the project.
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J. Specify how the Proposer would recommend commissioning -,of the project. The
City of Seattle requires certain projects to pursue LEED Certification, and in such
cases, independent commissioning would be required. Other projects could
conceivably be commissioned by the design/ contractor team provided that
independence could be assured, or by City staff depending on the nature of the
project. The Commissioning Authority (CA) needs to be able to objectively
evaluate the work, so if the CA is not from an independent firm, a plan describing
how the CA activities and responsibilities would occur and how they would
remain independent must be submitted to the City prior to adoption of the
Conservation Plan. If this plan is not adequate, then an independent firm will be
required. Some very simple projects may not need a high level of commissioning
and the contractor or even the City may perform the CA activities.
Key Points:
■ McKinstry Essention believes that commissioning is a critical component to the
success of performance contracting.
■ We have an intimate understanding of the commissioning process that stems from
our in-house full service commissioning department.
■ Commissioning requirements for projects can vary greatly, depending on the size,
complexity, and nature of the project. We do not subscribe to a one size fits all
approach and believe that each project should be reviewed with the City to define
what Commissioning approach best suits the needs of the project.
McKinstry Essention believes that project commissioning is critical to the overall success of any
project. We view commissioning as an element within an overall Transitional Services package
that is structured to take the building from construction into a mode of successful operation.
For City of Seattle projects, we envision utilizing a combination of the following approaches to
commissioning:
MCKINSTRY ESSENTION COMMISSIONING
Commissioning will be provided on all applicable projects through our in-house commissioning
group. This group consists of over 30 commissioning professionals dedicated to making sure
systems operate correctly. We provide this service for all of our energy performance contracting
projects because we believe this element is so critical to the nature, intent, and guarantees
associated with performance contracting.
The nature of the work provides a level of independence between our commissioning and
construction. We want and need to find out about any problems since we guarantee the results.
_ — - _Iso, our-onm°tissioning group -develops -a -comprehensive -commissioning- plan-fer-all--projects,_
that is reviewed by the client prior to implementation. This plan lays out in detail all of the steps
of the commissioning plan, the testing that will occur, and the report information that will be
provided back to the client at the completion of commissioning.
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CITY OF SEATTLE COMMISSIONING
Depending on the nature of the project and the availability of City staff, we would investigate
the option of utilizing City personnel when appropriate for commissioning tasks. Most likely, this
effort would be focused on projects that are smaller and/or do not have a high degree of
commissioning.
INDEPENDENT 3RD PARTY COMMISSIONING
McKinstry Essention recognizes the importance of 3`d party independent commissioning for
particular projects such as those that require LEED certification. In these applications, McKinstry
Essention would work directly with the 3`d party commissioning authority to develop a
comprehensive plan. In this situation, there may still be components of commissioning that
McKinstry Essention would want to maintain with in-house staff in order to verify proper
performance and the guaranteed energy savings. In these cases, we would work to define ,the
commissioning work for the 3rd party authority in order to meet any documentation and
performance requirements of LEED. We have completed many LEED projects In the past
utilizing a combination of our in-house forces and Independent 3rd party commissioning
authorities to achieve the best possible results.
Below, we have provided some additional information of our in-house commissioning process
and the steps we take to ensure an effective delivery.
One of the most critical areas of focus for an enhanced mechanical system installation is start
up and commissioning. The best designs, installations, and construction processes fall short of
meeting the clients' objectives unless a thorough and well-managed commissioning process Is
implemented. For this reason, McKinstry Essention has established and developed its own in-
house commissioning team to close out our projects. Our group has successfully Implemented
commissioning plans for many of our major projects over the past several years and has
extensive knowledge of project requirements and objectives. McKinstry Essention's
Commissioning Team assumes responsibility for the following functions working in conjunction
with other project team members.
1. Review of project submittals, shop drawings, and equipment detail sheets to ensure
that specifications are complied with and that a balanced system can be achieved.
2. Development of a prioritization schedule for commissioning the installed systems.
3. Assemble of site-specific commissioning forms to be used for recording all
documentation required.
4. Verification of installation of the various systems In the project to ensure compliance
with project documentation.
5. Participation in the factory start up or self perform start up for all major equipment
items and document-operatmg-compliance. - - -- - -
6. Performance or supervision of project balancing and function adjustment to ensure
that systems are operating as designed and that proper air and water flow levels are
achieved.
7. Management of the control system check out procedures including software checks
to verify complete compliance with contract requirements. Review and approve the
final graphics package for owner approval.
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October 6, 2006 Request for Proposal - #FFD -1791
8. Implementation of a series of functional tests to demonstrate the fully automatic
operation of the various systems and features. Special attention is focused on
redundant and back up systems to ensure automatic operation in a fault condition.
Schedule tests so that owner, factory, or other team members are present during
testing and verifications when requested.
9. Implementation and monitoring of EMS trends or use independent trending
instruments to measure and verify initiative performance requirements.
10. Development of a training and documentation plan to provide for operator/owner
training and education on the completed systems.
11. Monitoring and documenting of any discovered issues through resolution.
12. Interfacing with other disciplines on the project that relate to testing and
commissioning such as fire alarm, emergency power generation, and similar
systems. ,A
13. Coordination and assistance in development of the preventative maintenance plans
and procedures and a system of warranty procedures to ensure the proper operation
of the facility after occupancy.
The following outlines the structure, and components included in McKinstry Essention's
Commissioning process.
MECHANICAL COMMISSIONING SPECIFICATION—BASIS OF DESIGN
This section contains the commissioning specification and basis of design. Its purpose is to
enhance the test report forms that will comprise and represent the commissioning process. It
will aid in clarifying and expanding details and procedures that cannot be included within the
report forms.
COMMISSIONING SCHEDULE
Once the design and scope are finalized, we develop a Commissioning Schedule. The schedule
is intended to coincide with the master construction schedule.
r
Project closeout is a very busy time on every project. Consequently, conditions often arise that
may prohibit commencement of commissioning tasks during the precise time scheduled.
McKinstry Essention realizes that commissioning is a dynamic and fluid process and scheduled
commissioning tasks are managed and altered in to fit with site-specific conditions and
opportunities.
ISSUE RESOLUTION
It is an unfortunate fact that unforeseen issues and problems will develop during all projects.
Early identification and prompt resolution may be the most important component of a
- - - successful commissioning -process.-- -
From the moment onsite commissioning begins through project completion, we identify,
document, communicate and track issues until they are resolved.
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October 6, 2006 Request for Proposal - #FFD -1791
Typical issues encountered include:
■ Equipment damage -
■ Part failures
■ Substandard performance from other trades or subcontractors
■ Unacceptable test results
■ The unexpected
McKinstry Essention Commissioning participates in, affects, and directs resolution of most
issues. However, some issues may reach beyond the Commissioning Authority to direct work. In
such cases, McKinstry Essention Commissioning's responsibilities are to communicate with other
team members, provide supporting documentation or research, and track issues until they are
resolved. McKinstry Essention Commissioning and Project Management teams endeavor to
provide proactive issue resolution.
INSTALLATION VERIFICATION OR STATIC COMMISSIONING
After installation, all equipment and systems are inspected to verify they have been Installed in
accordance with the design objectives as indicated on the mechanical drawings. Typical items
verified are:
■ Location and zoning
■ Make and model
■ Serviceability and access
■ Connections to subsystems
■ Completeness
• Free of dirt and debris
■ System readiness for start-up
■ System readiness for balancing
We document this information, providing a record of an acceptable installation as well as a
means of Identifying deficiencies. When deficiencies or discrepancies are found, we generate an
issue log is generated and notify the appropriate team members are notified. After the
discrepancy is resolved, a re -inspection is performed.
HVAC EQUIPMENT AND SYSTEMS START-UP INFORMATION
Start-up commissioning verifies all mechanical equipment is activated and operating in
accordance with the manufacturer's operating criteria. This includes all internal equipment
electrical components and safety devices.
McKinstry Essention Commissioning coordinates and supervises equipment start-up activities.
McKinstry Essention Service performs start-up on most equipment. All start-up procedures are
- reviewed to ensure that they meet�r in most cases-exceed---manuf-acturer-'s recommended --
procedures. In certain cases, qualified equipment vendors may perform factory start-up.
McKinstry Essention Commissioning reviews all vendor start-up procedures, documents, and
work.
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TEST. AD]UST, AND BALANCE
The Test, Adjust and Balance (TAB) discipline sets, measures, and documents air and hydronic
system performance. J�
All TAB work is performed in accordance to the National Environmental Balancing Bureau
(NEBB). McKinstry Essention is an NEBB certified firm (certification No. 2728). NEBB qualified
supervisors perform or supervise all TAB work.
Final TAB performance data is recorded onto appropriate forms where it is compared to the
designed performance criteria given. In the event a system is not meeting the design intent,
McKinstry Essention Commissioning works with the project and design teams to develop and
implement a timely and suitable resolution.
POINT-TO-POINT CONTROL SYSTEM COMMISSIONING
As control device installation and wiring is completed, the control contractor tests and adjusts
all components (point-to-point.) Point-to-point commissioning verifies control hardware and
components for proper communication, operation, orientation, range, calibration, and
functionality. This testing ensures and documents that all devices are complete, communicating,
and functional.
After point-to-point commissioning, the control contractor performs dynamic testing of the
approved sequence of operation. These tests document all logic and control sequence
statements accomplishing each specific control function. Test processes and corresponding
results are documented and included in the final Commissioning report.
The role of McKinstry Essention's Commissioning team is to verify that the control contractor
has completed and documented the work described in the previous paragraphs. This is
accomplished by performing specific, redundant point-to-point testing on devices considered
critical or of high importance. A percentage of remaining points are randomly spot checked.
(Note: Sequence of operations verification is described in the following section—Functional
Performance Verification.) McKinstry Essention's controls commissioning does not replace the
responsibility of the control contractor in completely checking and de -bugging the installation. It
is intended to supplement and ultimately enhance the ability of the construction team to
provide the owner with a complete and operational building.
When discrepancies are revealed the issue is immediately transmitted to the control contractor
for repair or clarification. After the discrepancy is resolved, a re -test is performed.
FUNCTIONAL PERFORMANCE TESTING
Prior-tothis�rtiun- of -the commissioning process, all -field commissioning activities -have been
intentionally focused on inspecting and verifying the individual components and/or subsystems
included as part of the entire mechanical scope. Once static, start-up, point-to-point, and TAB
are complete, functional performance testing (FPT) begins.
FPT verifies and documents mechanical system performance as a whole. All mechanical
operating scenarios are tested to ensure that each system's performance characteristics and
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corresponding test results achieve the design intent. FPT is McKinstry Essention's final
verification that the mechanical and control systems are complete and operating properly.
FPT documents are generated directly from the approved sequence of operation. If needed,
additional FPT documents are generated for systems not covered in sequenced of operation
(e.g., a generator fuel delivery system may be a standalone system with no DDC Interface.)
Tests predominately consist of verifying the system operation under automatic control. Testing
is accomplished by manipulating variables that will generate a condition resulting in appropriate
system response. Each test is verified, initialed and dated by a commissioning engineer. In
addition, relative test conditions, system configurations, system responses, and observations
are documented.
HVAC EQUIPMENT AND SYSTEM TRAINING
The commissioning of the facility is not complete until we have passed the information learned
and acquired during the commissioning process on to the owners and owner's maintenance
personnel. Training objectives are as follows:
■ Confirm that operation and maintenance manuals have been turned over to the
proper people and that the content of these document has been identified.
■ All equipment locations have been reviewed in the facility. This includes operational
Information as well as a summary of maintenance requirements.
■ All system valves, clean -outs, future stub -outs, etc., have been reviewed and located
for the owner and his representatives.
■ Complete review of the control system including all components, addressing method,
graphics and system programming.
■ The contents of the commissioning manual have been reviewed so all parties know
what was done and how the systems were left.
■ A list of risk items has been reviewed with the owner so he is aware of potential
problem areas and how they should be addressed.
■ A list of emergency procedures and contact people the owner can use 24 hours q-
day, 7 days a week.
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McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
COMPUTATION OF ENERGY BASELINE AND POST -INSTALLATION ENERGY USE
K. Provide the methodology to compute energy and utility baselines and the
methodology for calculating post -installation savings, including the
methodology when individual buildings may lack separate metering. Also,
describe the Proposer's equipment and personnel capabilities to monitor
energy usage, both pre and post retrofit;
Key Points:
■ Regardless of whether or not the building has separate metering, McKinstry
Essention develops measure -specific energy baselines using data logging equipment.
■ McKinstry Essention believes strongly in the input of our client's staff in developing
measures and making sure the client has a high comfort level with the savings
numbers (no black box approach).
■ McKinstry Essention's first priority is to maintain code compliance for the safety,
health, and comfort of building occupants.
■ McKinstry Essention brings the utilities in early to accurately estimate utility rebates.
METHODOLOGY TO CALCULATE AND MEASURE SPECIFIC BASELINES
The absence of individual building metering is handled by establishing measure -specific
baselines. We accomplish this by isolating and measuring only the energy related to the specific
initiative. In general, the more detailed performance data that can be gathered relative to the
specific measure (i.e. kW, run time, flow rates, temperatures, and equipment efficiencies), the
more accurate of a baseline that can be developed. Therefore, to the extent that the project
constraints will allow, McKinstry Essention will focus significant effort in collecting this data
using data logging equipment. In addition, McKinstry Essention will also gather Information
from equipment logs, balancing reports, equipment specifications, and interviews with staff on
the operation of the existing system. -
This baseline data is input into a baseline energy model. The energy model is developed
utilizing analysis tools such as spreadsheet programs for simple systems to hourly energy
analysis programs such as Trace 700 or DOE2 for complex systems with significant interaction
between measures. The analysis will include correlation to other factors that affect energy
consumption such as weather and occupancy, when applicable. The completed model is then
compared against the existing utility bill end-use breakdown for additional validation and tuning
of the model.
McKinstry Essention's first priority in developing initiatives for our customers is to ensure code
compTiaficeTs mainfaine�fic for -the safety, heart ,and com-fort bf the occupan .--rn si ua io s -
where the current operation of the system is not in compliance with current standards,
McKinstry Essention will bring the situation to the attention of the project team and may
recommend a baseline adjustment. This modification to the baseline will represent what the
energy consumption would have been had the existing situation been code compliant.
Request for Proposal — Page 30 of 60
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Energy Savings Performance Contracting
McKinstry Essendon, Inc, City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
METHODOLOGY TO CALCULATE UTILITY BASELINES (FOR EARLY SCOPING AND FOR VALIDATION OF
MEASURE SPECIFICBASELINES)
At the beginning of the project, utility data is analyzed to get an overall look at the buildings' w
energy use. Typically, two to three years' worth of utility data are entered into Utility Manager
(UM) software. The UM software is used as a reliable storage database for basic reports and for
secure Internet access to bill data. More in-depth reports are created by exporting specific
pieces of data from the UM database into McKinstry Essention's utility data analysis spreadsheet
tool that incorporates heating degree day regression analysis, end use breakdown, occupancy,
optimal benchmark targets, and current rate application. The utility analysis remains an
important check of the energy savings, but as the project progresses, the focus shifts toward
measure -specific baselines (i.e. based on real system operating parameters) with the utility bill
baseline serving as a check and balance.
If a meter serves multiple buildings and no submeter data is available, the first and simplest
method employed by McKinstry Essention is to assign a percentage of the meter to each
building in the UM software—the percentage split is based on square footage, building
operating hours, and building use. This generally provides the accuracy necessary for a rough
scope of the energy savings potential, and the measure -specific metering (described in the
following paragraph) is put in place after the rough scoping stage. For certain Facility
Improvement Measures (FIM), such as a full HVAC upgrade, building meter data might be
required to establish the FIM baseline—in this case McKinstry Essention would either provide-
temporary
rovidetemporary logging (if possible) or we would work with the client to get a submeter installed.
Submeters will offer other benefits to the client, so we will provide specific submeter
recommendations, including steam submeters, at the beginning of the project. Submeters could
even be installed as part of a performance contract.
METHODOLOGY FOR CALCULATING POST -INSTALLATION SAVINGS
Even though the savings calculations themselves require time and expertise, we strongly
believe that the critical steps in projecting energy savings are the steps already discussed
above—identifying and measuring an accurate baseline and agreeing on realistic parameters for
the proposed system operation are the keys to creating accurate projections of energy savings.
First and foremost, regardless of whether a simple calculation or an hourly model is used, the
quality of the inputs is McKinstry Essention's focus.
Once accurate inputs are established, McKinstry Essention's energy engineers use a
combination of commercially available calculation programs such as Trace 700, DOE2, EZ -Sim,
E -Quest, Watergy, Motor Master, as well as many spreadsheet tools that have been developed
in-house. A variety of tools are required because each FIM has unique requirements. Having
many tools to choose from allows the calculation to be done in the best way to combine
amuracy sirrrpfi-dty, and -time efficiency. In-addition-tv these tools, att of McKinstry Essentionfs-- --
energy, engineers are very capable of developing custom calculations for measures that don't fit
the standard calculations. We can also draw on a large library of custom calculations that we
have used on past projects.
• Trane Trace 700 & DOE2 Simulation Software: In situations where there is
extensive interaction between different measures, McKinstry Essention utilizes
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McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
METHODOLOGY TO CALCULATE UTILITY BASELINES (FOR EARLY SCOPING AND FOR VALIDATION OF
MEASURE SPECIFIC BASELINES)
At -the beginning of the project, utility data is analyzed to get an overall look at the buildings'_'
energy use. Typically, two to three years' worth of utility data are entered into Utility Manager
(UM) software. The UM software is used as a reliable storage database for basic reports and for
secure Internet access to bill data. More in-depth reports are created by exporting specific
pieces of data from the UM database into McKinstry Essention's utility data analysis spreadsheet
tool that incorporates heating degree day regression analysis, end use breakdown, occupancy,
optimal benchmark targets, and current rate application. The utility analysis remains an
important check of the energy savings, but as the project progresses, the focus shifts toward
measure -specific baselines (i.e. based on real system operating parameters) with the utility bill
baseline serving as a check and balance.
If a meter serves multiple buildings and no submeter data is available, the first and simplest
method employed by McKinstry Essention is to assign a percentage of the meter to each
building in the UM software—the percentage split is based on square footage, building
operating hours, and building use. This generally provides the accuracy necessary for a rough
scope of the energy savings potential, and the measure -specific metering (described in the
following paragraph) is put in place after the rough scoping stage. For certain Facility
Improvement Measures (FIM), such as a full HVAC upgrade, building meter data might be
required to establish the FIM baseline—in this case McKinstry Essention would either provide
temporary logging (if possible) or we would work with the client to get a submeter installed.
Submeters will offer other benefits to the client, so we will provide specific submeter
recommendations, Including steam submeters, at the beginning of the project. Submeters could
even be installed as part of a performance contract.
METHODOLOGY FOR CALCULATING POST -INSTALLATION SAVINGS
Even though the savings calculations themselves require time and expertise, we strongly
believe that the critical steps in projecting energy savings are the steps already discussed
above—identifying and measuring an accurate baseline and agreeing on realistic parameters for
the proposed system operation are the keys to creating accurate projections of energy savings.
First and foremost, regardless of whether a simple calculation or an hourly model is used, the
quality of the inputs is McKinstry Essention's focus.
Once accurate inputs are established, McKinstry Essention's energy engineers use a
combination of commercially available calculation programs such as Trace 700, DOE2, EZ -Sim,
E -Quest, Watergy, Motor Master, as well as many spreadsheet tools that have been developed
in-house. A variety of tools are required because each FIM has unique requirements. Having
many tools to choose from allows the calculation to be done in the best way to combine
accuracy, -simplicity, and -time efficiency. In-additiorr-to these tools, all of-McKinstry-Essentionts
energy. engineers are very capable of developing custom calculations for measures that don't fit
the standard calculations. We can also draw on a large library of custom calculations that we
have used on past projects.
Trane Trace 700 & DOE2 Simulation Software: In situations where there is
extensive interaction between different measures, McKinstry Essention utilizes
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October 6, 2006 Request for Proposal - #FFD -1791
modeling software to calculate energy savings. To ensure the accuracy of the
baseline model, actual logged data is fed into the base model and compared with
the simulated model. McKinstry Essention also adjusts the model based on utility bill
end use analysis.
• EZ Sim and E -Quest: These tools are limited in their modeling abilities, but they
can be very useful during the rough order of magnitude (ROM) phase of the project,
and they do a good job of tuning to utility history.
■ Watergy: The National Renewable Energy Laboratory has developed this program.
It is the industry standard for water conservation savings calculations.
■ Motor Master 4.0: This is a newly released- update to the most fully featured
software available for modeling savings from motor upgrades. It includes details
such as power factor, part load efficiency, etc. and has a very large database of
information based on manufacturer model numbers for existing motors.
• Custom Worksheets: Custom worksheets developed in Microsoft Excel are utilized
in situations where the energy savings calculation does not warrant simulation
software. Three notable spreadsheet tools that McKinstry Essention has developed
in-house are our lighting tool, our standard bin calculation, and our pool HVAC
calculation.
• Lighting Tool: The lighting tool has extensive libraries of fixtures, lamps, and
ballasts that contain information related to energy consumption, component life, and
maintenance costs. The libraries make use of information from McKinstry Essention's
past lighting projects related to actual construction material and labor costs.
• Standard Bin Calculation: The standard bin calculation is used In cases where a
4 -full Trace 700 or DOE2 model is not necessary. McKinstry Essention's bin calculations
have been created to be very flexible so they can quickly and accurately model a
wide variety of energy conservation measures. In addition, since the tool is Excel
based and since it was created in-house, modifications are possible if a non-standard
system requires analysis—this is not possible with commercially available programs.
For example, one of our energy engineers recently made a job -specific modification
to our standard bin calculation for Shoreline Community College to include the
effects of return water temperature on the efficiency of a proposed condensing
boiler across a hot water return reset schedule. McKinstry Essention's standard bin
calculation accounts for internal heat gains, building insulation values, infiltration,
- - solar Toads, night setback with or without JiVAC-€an and outside- air- damper -shut-
down, peak monthly kW, economizer operation, reheat systems such as VAV,-fuel
type, heating and cooling efficiency, fan energy, and end use breakdown of heating
load components. It is set up so that all inputs can be varied between the base and
the proposed system.
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October 6, 2006 Request for Proposal - #FFo-1791
Pool HVAC Calculation: Trace 700 and DOE2 are not adept at adequately
modeling pool.HVAC systems. Consequently, McKinstry Essention has developed our
own pool HVAC calculation tool that accounts for water temperatures, activity level,
outdoor air specific humidity ratio, etc. It can model dehumidification using outside
air, outside air with heat recovery, mechanical dehumidification, and mechanical
dehumidification with heat recovery.
McKinstry Essention strongly believes that the success of proposed initiatives also
reside with the facility staff believing that a measure makes sense to implement and
that the proposed operational changes are obtainable based on their knowledge of
the facility. To that end, McKinstry Essention's development process is structured to
invite staff involvement. McKinstry Essention develops a baseline criteria plan before
beginning the detailed data gathering. This plan clearly identifies which variables will
be measured and how they will be measured for the baseline as well as identifying
key operating parameters for the post retrofit operation of each specific measure.
The plan is discussed with client's staff to ensure the systems can be operated as
they are proposed. Based on the input and feedback, McKinstry Essention will begin
the baseline logging and field measurement effort.
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Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006_ Request for Proposal - #FFo-1791
L. Provide at least 3 specific case histories of installations to display the
accuracy of the computation ofenergy use, including the energy usage
baseline and actual past installations, sufficient for the City to understand
how closely the anticipated savings have matched the actual realized savings.
If there was a correction or shortfall in the energy savings, describe how this
was negotiated with the owner.
Key Points:
■ McKinstry detailed approach to the calculation of energy savings provides very
accurate projections of energy savings and system performance.
■ For the vast majority of performance contracting projects completed by McKinstry
Essention, the actual energy and performance of systems meet or exceed our
guarantees.
■ In situations where actual energy savings or system performance fall below our
guarantees, McKinstry Essention will either fix the problem or provide financial
compensation to clients for any shortfalls.
McKinstry Essention has completed numerous energy savings performance contracting projects
throughout the Pacific Northwest for all types of clients including cities, counties, K-12
education, higher education, healthcare, municipalities, and private/commercial facilities. For all
of these projects, great detail and effort has been expended to calculate and verify the
guaranteed energy savings.
Following are descriptions of three projects that McKinstry Essention recently completed. An
overview of the projects is provided below, and copies of the Performance Assurance reports
are included in Appendix D. The Performance Assurance reports demonstrate the energy
performance of the projects and show how actual performance compares to the predicted and
guaranteed performance.
Central Kitsap School District: This project consisted of lighting system upgrades
at the following sites: Central Kitsap High School, Clear Creek Elementary School,
Silver Ridge Elementary School, Klahowya Secondary School, and Emerald Heights
Elementary School. The guaranteed energy savings for this project were 501,272
kWh and 190 kW. After measurements that included accurate as -built surveys of
fixture counts and quantities, and pre and post kW surveys, the actual savings were
determined to be 590,107 kWh and 199 kW. The fixture counts and kW surveys
produced lower savings on some specific fixtures, but when the project was viewed
as a whole, the savings were larger than guaranteed.
• "University of Washington Medical Center: This project included improvements
to the mechanical infrastructure of the University of Washington Medical Center.
Demand for process cooling water had increased as a result of program
enhancements. The existing infrastructure did not have adequate capacity to
accommodate the additional process cooling loads. In order to increase system
capacity while improving overall system efficiency, an existing inefficient heat
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recovery chiller, which was previously serving process loads, was removed and
replaced with a more efficient heat recovery chiller. In addition, an additional water
cooled chiller vias installed along with a new evaporative cooling tower. We removed r
the existing ineffective heat recovery coils located in exhaust streams to lower fan
horsepower requirements and increase fan capacity to better manage building
pressure relationships. The guaranteed energy savings for this project were
1,730,794 kWh, 2,440 lbs of steam, and 948 cd of water. After tasks that include
measurements of the new HR chiller kW/Ton, submittal review of the new non -HR
chiller kW/Ton, and a sequence of operation testing, the actual savings were
determined to be 2,072,876 kWh, 2,810 lbs of steam, and 1,091 ccf of water. The
kW/Ton of the installed chiller was better than proposed in the original savings
calculations, so the savings were recalculated with the better efficiency value. Not all
of the proposed heat recovery coils were removed so the energy savings were
lowered. However, the project as a whole produced more savings than guaranteed.
Eastern Washington University: This project consisted of an energy
management system installation and HVAC upgrades at the Computer Science and
Martin buildings, installation of variable speed drives at the Computer Science,
Martin, Art, Science and Sutton buildings, cooling tower replacements and upgrades
at the Rozell central plant, realignment of a fan sheave at the Science building, and
replacement of roll filter media with standard pleated media across multiple campus
buildings, an HVAC replacement for Isle Hall, a full HVAC and lighting retrofit at
Kingston Hall, installation of variable speed drives at the JFK library, implementation
of demand controlled ventilation (DCV) at the Pavilion and Theatre buildings, and
renovations to the existing HVAC, controls, and lighting systems for Tawanka
Commons. The guaranteed energy savings for this project were 2,743,510 kWh, and
67,943 therms of natural gas. After tasks that included logging and trend data
review, submittal review of the installed equipment, and a sequence of operation
testing, the actual savings were determined to be 2,786,066 kWh, and 67,943
therms of natural gas. This Measurement and Verification project involved ongoing
tasks, and after an initial verification, some of the VFDs were determined to not be
modulating upon a subsequent visit. We determined that the programming language
had been lost and therefore the VFDs could not modulate. We recalculated the
guaranteed and actual energy savings and corrected the problem. Another savings
change in this project involved estimated airflows used during the initial calculation
for proposed space change. The savings were recalculated post retrofit after the
actual air flows were measured.
For the vast majority of projects, the energy savings and system performance goals meet or
exceed -the -guarantees and -commitments- made-toour client. -Irv-rare instancesi however; -we-
have fallen short of the predicted performance for projects. While obviously these situations are
not preferred, these cases do show the true nature our commitment to our clients.
One example occurred at Washington State University in Beasley Coliseum, the large arena on
campus where basketball games, graduation, concerts, and other functions are held. McKinstry
Essention completed a major lighting retrofit of the arena, resulting in energy savings and an
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Energy savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
improved lighting environment. When we completed the project, we took lighting
measurements and noted that the light levels fell short of the requirements needed for still
photography.
McKinstry Essention added additional fixtures needed to achieve the necessary lighting levels at
our own expense, which was not insignificant. We believe that our approach to handling
adversity and challenges demonstrates our true nature and commitment to our clients and our
performance guarantees.
Request for Proposal - Page 37 of 60
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6 Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
RANGE OF SERVICES
L. Indicate the range of energy and utility management services provided by the
proposer, including whether the proposer has the capability to provide the
following services: energy audit, financing, design, general contracting,
construction management/administration, testing and balancing, coordination of
independent 3rd party commissioning, warranty services, measurement and
verification of savings, savings guarantees and facilitating utility participation to
maximize utility rebates and incentives;
Key Points:
■ McKinstry Essention provides a full range of services—from facility audits, to design,
construction, commissioning, continuing through to measurement and verification of
energy savings.
■ Our integrated delivery of services is designed to offer the best solutions for our
clients.
• This integrated approach to projects is truly the essence of performance-based
contracting.
• Other services such as web -based project management and design -build -operate -
maintain (DBOM) capabilities have proven to be valuable to many of our clients.
MCKINSTRY ESSENTION'S CAPABILITY OF PROVIDING SERVICES
Energy Auditing: The audit phase of a
project is a very important step in identifying
all viable opportunities. McKinstry Essention's
staff has many years of combined auditing
experience within the dedicated energy group
to ensure that no stone is left unturned.
McKinstry Essention's facility auditing process
also consists of several steps designed to
capitalize on the efficient use of the team's
time and to strategically focus on initiatives ggff!�Architectural Metals
that have a high probability of implementation
and energy savings success. The facility auditing team usually consists of energy engineers,
program managers, and one or more engineering resources. Other resources such as utility
representatives and construction estimators are brought in as needed during the facility audit.
Financing: While we understand that the City of Seattle will not be financing projects,
McKinstry Essen ion can offer multiple approaches to finarncing. -Our preferred- approach -is to- - -
arrange financing that provides the best overall value for our clients. Typically, this is arranged
through financing with banking partners of 3rd party lenders direct to the client to take
advantage of lower interest rates. In order to arrange financing, McKinstry Essention develops a
financing package Request for Proposal that takes into consideration the key financial critena of
the client. This package is then submitted to Interested parties, with results reviewed by the
ESPC team and ultimately selected by the client.
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McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
Design/ Engineering: McKinstry Essention has a large team of industry professionals. We
possess the in-house capability to design all aspects of energy and' utility conservation systems
including chilled water systems, steam systems, central plants, ventilation & air distribution,
plumbing, process piping, laboratory specialized HVAC, lighting upgrades, fire protection, and
integrated fire detection and DDC systems. We are committed to providing the highest level of
service to our clients and to creating innovative and cost efficient solutions to the design
challenges.
We incorporate sustainable building practices into all of our designs, and have 17 LEED-
accredited professionals on staff. We believe a correct design should deliver the design criteria,
but also do so in a manner consistent with long term operational goals and financial constraints.
Our engineering staff consists of over 50 engineers, designers, and CAD professionols, 20 of
which are registered Professional Engineers. Having the depth and breadth of design resources
in-house provided McKinstry Essention with a unique ability to quickly and accurately develop
and evaluate design options during the audit phase, and then rapidly complete engineering
documents as projects move into construction.
General Contracting: McKinstry Essention functions as the General Contractor on ESPC
projects. This approach minimizes project costs by eliminate multiple tiers of mark-up. We have
a team of experienced individuals who are trained to oversee a project from the unique
perspective needed to successfully perform this role. A key focus is scheduling and coordination
of tasks. During the pre -construction phase of all projects, we collect input from the entire team
to develop a detailed project schedule. In this general contractor role, we take responsibility for
the entire project including all trades that are involved. McKinstry Essention's record of
successful projects for a variety of customers continues to grow with our proven general
contracting expertise.
Construction Management/ Administration: Calling upon more than 45 years of
experience in construction, McKinstry Essention's construction experience enables our ESCO
teams to successfully complete construction projects for our clients. Our construction
experience is vast and includes a great number of cities, counties, school districts, university
and college campuses, high tech and bio -tech facilities, as well commercial buildings. Our
construction management team utilizes experience, technical tools, and personal commitment in
delivering outstanding results and timely conclusions.
In our experience in working with cities, one of the most critical elements of delivering a
successful construction project is communication with the various stakeholders from the city.
More often than not, construction projects need to take place in occupied buildings, during
occupied -hours, and under a -tight schedule -with arty system shutdowns fiighty-coordinated: — -
Testing and Balancing: McKinstry Essention performs all Testing and Balancing (TAB) work in
accordance to the National Environmental Balancing Bureau (NEBB). McKinstry Essention is an
NEBB certified firm (certification No. 2728). NEBB Qualified Supervisors perform or supervise all
TAB work. Final TAB performance data is recorded onto appropriate forms where it is compared
to the designed performance criteria given. In the event a system is not meed5;"11J1L"
gn
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Energy Savings Performance Contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
intent, McKinstry Essention's construction manager, commissioning manager, and design
engineer are immediately notified. A resolution is worked through in a timely manner.
Coordination of 3'd Party Commissioning: McKinstry Essention has coordinated 3rd Party
Commissioning on many projects and is familiar with the processes needed to ensure a
successful outcome. Many times, the coordination of the 3rd party agent is done to meet certain
requirements for LEED certification. McKinstry Essention has managed this process before and
is familiar with all of the requirements needed to successfully manage this process. We look
forward to working with the City of Seattle to establish the best and preferred method of
commissioning for upcoming projects.
Warranty Services: We look at this as a long-term partnership and as such, we support our
clients with resolutions for equipment and system issuessafter the warranty period expires. We
will commission each project to ensure all equipment and systems installed will meet or exceed
performance standards. We will guarantee installation and workmanship for one year against
defects. Equipment typically carries the manufacturer's warranties, yet based on our
relationships with vendors, we will extend warranties at no or low cost. Warranty time period
starts at date of substantial completion or occupancy. If equipment is used for temporary
service, its warranty date typically will start when it is put into service.
With 220 fully equipped service vehicles throughout the Pacific Northwest, McKinstry Essention
boasts the capability to quickly respond to warranty issues with qualified technicians. Our
personnel resources are bolstered by our innovative 24x7 web -based warranty management
system that allows clients to log and track warranty issues. Clients are able to view warranty
requests, note when the issue was logged, view progress on the issue, and receive confirmation
when the issues are resolved. All this is handled seamlessly with minimal time commitment form
the client organization. In addition, this process provides a single point repository of archived
information.
Measurement and Verification of Savings: Delivering the energy savings is the core of our
process. We have a dedicated measure and verification team that uses the latest remote
monitoring technologies, loggers, and web -based services to enable the flow of data from and
to our clients. We have an in-house remote monitoring center to monitor control systems. We
use the Department of Energy IPMVP as our best practice standards. Please see our response
to Question M — Savings and Equipment Performance Guarantees for further detail on our
processes and philosophy on this topic.
Savings Guarantees: McKinstry Essention believes that guaranteed savings are one of the
critical elements of successful performance contracting. To this point, we strive to develop
-accurate and detarted-7raranteed -savings-for-each measure. The energy savings -are -derived --
from electrical, gas, water, and waste initiatives that are pursued. Energy saving guarantees are
developed around the predicted units (i.e. KWh) of energy saved, then converted to a dollar
figure (by using the units saved multiplied by the utility rate) and guaranteed up to 100%.
Facilitating Maximum Participation and Involvement of Utility Companies: McKinstry
Essention seeks all available funding avenues on behalf of our clients, which is reflected in the
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McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
fact that McKinstry Essention has secured over $8.0 million dollars in utility grants for our clients
in the -last five years throughout the Pacific Northwest, with innovative approaches-- Dz design
and implementation. Please see the response to the EXPERIENCE - C question for complete
additional details and list of local projects where McKinstry Essention secured a rebate.
We have a long and successful relationship with working with Seattle City Light, Seattle Public
Utilities, and Puget Sound Energy, all of which may be utility providers for some / all of the
City's facilities.
Our process for maximizing utility incentives begins early, with the philosophy that the sooner
utility firms are introduced and educated on the potential project, the more apt they are to fund
the project. The representative from the utility's conservation program is an important member
of the project team to ensure that all necessary milestones are met from the utility's perspective
and to add innovative suggestions for maximizing energy savings and minimizing payback.
OTHER MCKINSTRY ESSENTION SERVICES THAT HAVE PROVEN VALUABLE oN ESCO PROTECTS:
Web -based Project Management: At McKinstry Essention, we believe that a successful
project is dependent on people, process, innovation, knowledge capital, and technology working
together to deliver the best total solutions to our clients. As part of all energy services projects,
and at no additional cost or fee to our clients, we deploy a secure web -based project
management service called InfoCentreTM that was created by McKinstry Essention. We post
data, pictures, meeting agendas and minutes, information about energy measures identified,
0&M equipment information, and energy data to this site. This becomes our collaboration zone
with our clients through all phases of a project, and allows the project team access to
information at any point in the process.
Sustainability Projects: McKinstry Essention actively pursues potential sustainability projects
with the clients we work with. Projects that we have completed or currently developing consist
r'a of multiple LEED projects, a large solar PV array for the Legislative Building in Olympia, bio -
diesel and ethanol production plants, bio -mass heating systems, and co -generation. As a
company committed to energy efficiency and sustainability, we have an obligation to explore
opportunities and evaluate the merits of potential solutions with our clients.
Transition to Sustainable Operations: Transition to Sustainable Operations supports
customers in transition from their current facility project to operation of the facility. Our solution
encompasses three phases that are uniquely intertwined. We refer to these phases as Project
Closeout, Initial Occupancy, and Stabilized Occupancy.
The first phase, Project -Closeout, -parallels -the- final-eeRstructien and--Eommissionin"f -the- --
project. There are three critical components within this phase. Documentatibn consists of "the
capture of knowledge about systems, components and features of the completed project. It is
the foundation for the successful operation of your facility. Development is the leveraging of
catalogued documentation for the essential operation of facility programs. This ensures the
comfort, safety and security of the facility and its tenants. Acceptance and training is the
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transfer of ownership in the operations of the facility, in addition to the coordination and
scheduling to provide specific system and operation knoJgdge.
The second phase, Initial Occupancy, will parallel the construction closeout phase of the project
and provide additional services beyond the general deliverables of the project. This phase of the
program will develop the methods and procedures to manage the staffing, maintain the
equipment, and measure the results. This information will become standardized so that it will
become the foundation for operating the facility. These standards will provide the ability to
compare and track performance.
The final phase, Stabilized Occupancy, is a culmination of deliverables outlined in the previous
two phases. The Stabilized Occupancy phase is focused primarily on the delivery of reliability
through a combination of highly trained personnel utilizing the programs developed throughout
construction closeout and initial occupancy. The transition to operation will complete this
comprehensive plan.
Design -Build -Operate -Maintain (DBOM): McKinstry Essention has assessed and provided
some of our clients with a design -build -operate -maintain approach for their facilities. Although
over 45 years ago McKinstry Essention was best known as a plumber, we are proud of our
evolution that has allowed us to continue to provide excellent plumbing services while
expanding our support of client facilities to involve continued operation. This is summarized in
our Mission Statement: Taking responsibility to design, build, and operate facility systems and
our corporate mantra of For the Life of Your Building. We have provided these services to
clients that range from high end -data centers to downtown office buildings. We have the right
partners, financial strength, engineering, building development experience, construction
management, facility management, and mobile field domain expertise to provide comprehensive
DBOM services. We stand ready to provide these services based on the client's requests and
requirements.
Remote Monitoring: Twenty-four hour remote monitoring is a specialty of McKinstry
Essention. We monitor buildings throughout the Pacific Northwest and as far away as Alaska.
Via a modem, network connection, and building DDC controls we are able to monitor system
operations, temperatures, and foresee potential problems. Many adjustments to system
operation such as temperature set points, schedules, and air volumes can be performed
remotely, thus eliminating many emergency service calls.
Equipment Acceptance Testing: McKinstry Essention believes that the process for procuring
equipment should include a comprehensive set of tests ensuring that equipment has been
properly sized, applied, shipped, and installed. McKinstry Essention can perform site acceptance
testing Using predictive maintenance technologies -as an --integral part of assuring equipment --
condition.
Acceptance testing identifies serious problems that can reduce the reliability, maintainability,
and life cycle costs of new equipment substantially. Typical issues identified by predictive
technologies during acceptance testing include, but are not limited to: baseplate resonance,
bearing damage, machine imbalance, rotor or stator defects, and foundation Integrity. Defects
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found during acceptance testing are often times relatively minor in nature and would not have
caused issue& prior to manufacturer warranty period, but the life cycle of the equipment -would
have been seriously reduced. `
McKinstry Essention has invested in high technology predictive maintenance technologies such
as SPM bearing analysis, vibration analysis, motor circuit analysis, and ultrasonic detection to
assess equipment condition and hold manufacturers accountable to the specifications and
condition of the equipment they ship. Acceptance testing is performed in conjunction with the
commissioning agent and does not replace commissioning, but enhances its effectives
significantly. Condition monitoring of new or repaired equipment also serves to establish a
performance baseline for future assessment of conditions.
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SAVINGS AND EQUIPMENT PERFORMANCE GUARANTEES
M. Provide the Proposer's energy and cost savings guarantee policies and
procedures, including remedies when actual savings are lower than the
Proposer's estimates and guarantees;
Key Points:
■ McKinstry Essention will guarantee up to 100% of the energy savings.
■ McKinstry Essention adheres to the International Measurement and Verification
Protocol.
■ All savings go to the client (no shared savings).
■ McKinstry Essention will reimburse the client for any guaranteed savings shortfalls.
■ Staff training and proper commissioning of systems are paramount in ensuring
sustainability of savings.
• McKinstry Essention's focus is to develop a detailed M&V plan to ensure savings are
sustained.
• McKinstry Essention understands that the M&V plan needs to focus on true savings.
OUR PHILOSOPHY
McKinstry Essention is prepared to guarantee any portion of a project for which we can exercise
direct control of the implemented systems. Where McKinstry Essention does not have direct
control (such as burn hours associated with lighting), we are prepared to work with our client to
devise a method of Measurement and Verification (M&V), which will provide the highest degree
of assurance that the energy cost savings are realized. The paragraphs below outline our
standard practice, but it is important to note that we are very flexible in modifying our
guarantee to meet our client's needs.
ENERGY AND COST SAVINGS GUARANTEE POLICIES AND PROCEDURES
A measure -specific performance assurance (PA) program will be developed to validate that
optimal performance of the system is maintained throughout the life of the energy services
contract. Measure-specitic means that to the best of our ability we will put in place measuring
and logging equipment directly on the equipment responsible for the energy savings. This
approach minimizes the impact that other site condition changes may otherwise have on a
particular measure. McKinstry Essention includes an easy -to -read table which clearly lists which
values will be measured and quantified for each FIM at every stage of the guarantee—from
baseline development, to commissioning, to ongoing performance assurance. The information
can be reported to the client on a monthly, quarterly, or an annual basis. We further believe
that an additional core value of the PA report is the ongoing information it provides to the client
to further optimize building operations. Even when guaranteed savings are achieved, we strive
to provide usefuri`nf-rmation and recommendations based on whot-we're-seeing -in the data -to
further optimize facility operations.
McKinstry Essention adheres to the International Measurement and Verification Protocol
(IPMVP) in performing measure and verification procedures. This is an internationally
recognized standard that provides several different avenues for providing verification for a
particular measure: Measure and Monitor, Measure and Stipulate, Multivariat Utility Bill
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Regression, and Standard Utility Bill Comparison. Each of these procedures provides a varying
degree of accuracy,_ complexity, and cost. We rarely rely on utility bill comparison as -ft
method of guaranteeing savings because, in many instances, it is difficult to disseminate the
actual savings attributable to a particular measure—we do employ bill comparison as the
verification method for specific FIMs where the utility meter serves a single end use and the
proposed savings represent a significant fraction of the bills. Since the overall success of a
project relies on the long-term performance of the measure, it is important that both McKinstry
Essention and the client are comfortable with the verification process.
REMEDIES FOR WHEN ACTUAL SAVINGS ARE LOWER THAN ESCO ESTIMATES
McKinstry Essention takes responsibility to remedy any shortfalls by correcting system
performance or making monetary payment. Additional savings realized above and beyond the
guaranteed -level are passed on to the c/lent—McKinstry Essention does not receive a share of c=
the additional savings: Also, McKinstry Essention does not bank excess savings from one year to
the next—the client is protected throughout the guarantee period since each year must stand
on its own. Our first response, if energy savings are tracking short of the guarantee level, is to
identify the reason behind the shortfall and provide corrective action to the extent that the
comfort, safety, and health of the occupants is not compromised. If efforts are not successful
and an annual energy shortfall is realized, McKinstry Essention will pay the owner the
difference. McKinstry Essention currently has no savings shortfall situations with its customers
that haven't been field correctable—this is due to the methodical way in which we develop good
baselines and solid savings estimates based on well thought out FIMs.
Should site conditions beyond our control change, we will continue to work with the owner to
realize the proposed savings. These conditions include such items as a change of use or
occupancy, change in operating hours, facility modifications, and varying preventative
maintenance practices. An adjustment to the baseline energy use may be necessary to correct
for these situations but we would first explore other alternatives. One very important advantage
of the measure -specific verification approach we use is that it minimizes the impact that other
`= site condition changes may otherwise have on a particular measure.
ADDITIONAL ASSURANCE THAT SYSTEMS ARE OPERATING PROPERLY
McKinstry Essention also offers other services as part of an energy project that significantly
impact the long-term success and operation of a facility. We believe that proper commissioning
of the building systems identify many problems affecting performance and reliability that would
otherwise go unnoticed. Proper commissioning of the system will provide the highest confidence
that the systems have been installed and are operating per the intent of the project documents.
McKinstry Essention has a dedicated commissioning team that has worked with many different
facilities' lighting, security, HVAC controls, fire, electrical, and mechanical systems with varying
degrees of complexity. - -- ---
McKinstry Essention will provide specific training to the staff on how to properly operate newly
installed measures. McKinstry Essention realizes that facility staff plays a large role in ensuring
energy savings and optimal performance is realized. They are the key players in the day-to-day
operations of the systems including proper preventative maintenance practices. Training is
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therefore essential for the staff so that they understand the principles behind proper operation
_oftheir new equipment and systems.
McKinstry Essentlon's strong background in engineering, construction, and commissioning of
systems provides us great confidence in our ability to deliver reliable systems that perform as
designed throughout the life of the initiative. The client can rely on McKinstry Essention to be
the single point of accountability for which they can contact should issues arise with any of their
systems. Simply stated, we want to develop long-term relationships with our customers.
Q
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N. Provide the Proposer's project cost guarantees and remedies when project
costs exceed ESCO estimates;
Key Points:
■ We guarantee all project costs, and account for excess savings with all invoicing and
other documentation needed to substantiate the financial performance.
■ We have the financial strength to stand behind and honor our project cost
guarantees.
■ We have significant in-house estimating expertise and develop accurate
construction -grade estimates on all projects.
• Construction savings are yielded to the benefit of our clients at the end of a project.
PROJECT COST GUARANTEE - h _O
McKinstry Essention provides a guaranteed maximum project cost as part of the performance
contracting agreement. This guarantee provision is intended to place the burden of project cost
risk on McKinstry Essention. We understand that clients are purchasing projects that have a
specified minimum return on investment, and therefore the cost to the client can not increase
through the project implementation. If the project scope remains the same, and yet the project
cost increases, then McKinstry Essention will bear the burden of those cost increases and
shelter the client. If the project cost Increases outside the control of McKinstry Essention, then
we will manage those increases with our clients. For instance, in the event that the client
requests additional work to be completed outside the scope of services we add the cost of
those added scope of services to the GMAX.
Cost overruns occasionally occur, but McKinstry Essention is a financially strong company with
an ethical approach to our business practices. This means that we will stand behind our project
cost guarantees. However, we typically do not find ourselves in situations with cost overruns
due to our estimating process that delivers accurate and reliable construction -grade estimates.
Estimates are developed with decades of knowledge, databases, tools, plus the experience of
p' over 45 years of real-world construction expertise. These resources and our rigorous approach
allow us to guarantee project costs that are not overly inflated to counter risk. This discipline to
project estimating helps reduce project costs and financial risk. Our clients also benefit because
they are not committing financial resources to a project with excessive costs required to cover
risk.
In addition to a guaranteed maximum project cost, McKinstry Essention will provide the client
with all construction labor and material cost savings based on the cost reconciliation process
established for the projects. McKinstry Essention will work with the State GA and the client to
establish a construction cost substantiation process that will provide the client with confidence
- - in-,the-aduM-constnmtion-costs-for the -project. -Thus typically will -be handle& -by -providing -copies
of actual subcontractor and equipment invoices as back up for progress billings and for the final
closeout of the project.
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REMEDIES WHEN PROJECT COSTS EXCEED ESTIMATES
McKinstry Essention will establish, via reconciliation, the overall cost of the project at
completion. At this time, if the total project costs are in excess of the GMAX for the agreed-
upon scope of work and services, McKinstry Essention will assume the responsibility of the
additional costs at no expense to the client. It is our commitment we make when we enter into
an ESPC with you. To date, McKinstry Essention has been successful in returning construction
savings to the client on many of our projects.
To ensure maximum construction cost savings are provided back to the client, it is imperative
that McKinstry Essention manage the cost of subcontractors and major equipment at
procurement, during the implementation, and at the final__reconciliatlon of the project. In order
to minimize project cost creep, we rely heavily on the relationships we have established with
our subcontracting and supplier partners. If industry pricing is over our declared budget, we
work diligently in collaboration with the vendor(s) to isolate and successfully remedy the area(s)
of inflation, all the while not jeopardizing quality and/or performance.
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October 6, 2006 Request for Proposal - #FFP -1791
O. Provide the Proposer's equipment performance guarantee policies and
procedures, including information on the Proposer's warranty enforcement
role and the Proposer's responsibility, if any, when there is an equipment
failure beyond the warranty period and when the agency or school has
financed the project and assumed ownership of the installed equipment;
Key Points:
■ In or out of warranty, McKinstry Essention will be there to respond to all of your
equipment issues.
■ Our priority is Comfort, Safety, and Health—then Energy.
■ Single point of contact for long-term accountability.
McKinstry Essention's guarantee of equipment performance allows us to commit to our clients
that at the project's end, the equipment and systems that have been installed will meet or
exceed the performance standards that have been established.
PRIORITY IS FOCUSED ON COMFORT, SAFETY, AND HEALTH
McKinstry Essention's first priority will be to make certain that all newly installed and upgraded
equipment will operate to ensure occupant comfort, safety, and health. The second priority will
be to reduce operational and utility costs for the client. If the client has maintained the
equipment based on manufacturer's guidelines, yet it does not meet either the primary or the
secondary requirements, McKinstry Essention will take the -necessary steps to correct or
improve equipment performance. If it is determined that the newly installed equipment has
failed, we will come to a final resolution on repair or we will replace it.
McKinstry Essention offers more options due to our network of buying power and our
relationships with local equipment providers. We are able to reduce the initial cost of
equipment, in addition to being able to arrange for extensions to the warranty period of the
equipment. This combination of strong buying power and extended warranties gives us a value-
added advantage that has proven beneficial to many oflour clients.
WARRANTY ENFORCEMENT ROLE
While our clients are not required to utilize our service department, McKinstry Essention Service
offers a wide range of services including 24-hour emergency service, as well as maintenance
and operation programs that include system repair and remote monitoring. With 220 fully
equipped service vehicles throughout the Pacific Northwest, we can offer our client's peace of
mind knowing that we can offer expedited remedies even if the equipment was not installed as
a part of our project.
McKiristry Essention will -guarantee equipment perforrnarce as follows: - -
■ We look at this as a long-term partnership and as such, we will support the client
with coordination of resolutions to equipment and system issues after the warranty
period expires.
■ We will commission each project to ensure all equipment and systems installed will
meet or expect performance standards.
■ We will guarantee its installation and workmanship for one year against defects.
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• Equipment typically carries the manufacturer's warranties, yet based on our
relationships with vendors, we will extend rranties at no or low cost.
■ Warranty time period starts at date of substantial completion or occupancy. If
equipment is used for temporary service, its warranty date typically will start when it
is put into service.
COMMITMENT TO LONG-TERM PARTNERSHIP
McKinstry Essention is very experienced in equipment performance and warranty concerns. We
understand the value of equipment performing as intended. We routinely complete services, at
no additional cost to the customer, after the original warranty expires to ensure our clients are
satisfied and that the system operates as intended. Our network of buying power, and our
relationships with subcontractors and local equipment providers, makes it possible for us to
reduce the initial cost of equipment, in addition to being able to arrange for extensions to the
warranty period of the equipment, at times, by years. This combination of strong buying power
and extended warranties gives us a value-added advantage that has proven beneficial to many
of our clients.
McKinstry Essention provides the client with a single point of contact for long-term
accountability regarding maintenance and training on all new equipment installed as part of any
project. Our Service and Commissioning departments, the largest of any ESCO in the
Northwest, are staffed with qualified technicians and certified journeyman mechanics trained to
handle final system testing, adjusting and balancing, as well as ongoing maintenance of your
equipment. When new equipment is installed, we will include factory start-ups along with
customer training by a certified factory representative.
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P. Describe the risks associated with this type of project, -whether financial,
technical, legal, political, etc. and whether associated with the owner, ESCQ�_.,
equipment vendors, sub -consultants or others, and how the ESCO will identify
and mitigate those risks.
Key Points:
■ It is generally recognized that there are fewer risks in an ESPC versus the traditional
Design/Bid/Build process for the client.
■ Minimizing risk goes well beyond guaranteeing costs and energy savings.
■ McKinstry Essention is your first line of defense against any and all risks.
■ Some risk is shared with the ESCO and client.
■ Single point of accountability means all fingers point to us
ESCOs will typically talk about minimizing the risk to the client in terms of GMAX pricing and
guaranteed energy savings, and assume that this will satisfy the risk avoidance requirements of
the client. McKinstry Essention believes that full disclosure of all the risks is just as Important as
the project itself—after all, what difference does guaranteed maximum pricing and energy
savings mean If our recommendations do not meet or exceed your expectations for a clean
installation, performance requirements, and receiving the best total solution?
Furthermore, this is a true partnership—as over -used as this term may be, McKinstry
Essention's client -centric philosophy drives our teams to constantly be thinking about how best
to protect you from all types of risk (financial, technical, legal, political, etc.).
We view the management of risk throughout the entire ESPC process, from impacts to
occupants to the commissioning of the Installed measures and measurement and verification of
the energy savings. Risk can be minimized by open communication, a strong team that is
focused on the best total solution for the client, and the ESCO's experience. When Items come
up that present risk to the client, they will be disclosed to the client and viable solutions will be
presented to negate or minimize the risk. I
Risk also comes in many forms, ineffective design engineering, poor construction management,
and poor communication to building occupants and users, installed measures that are not
properly commissioned, and so on. McKinstry Essention has processes and procedures that are
specifically designed for risk mitigation, thereby greatly reducing the risk to the client entering
into an ESPC with us.
Appendix E: Risk Management Matrix provides some more examples of the risks in a
performance contract. This matrix explains the risk and how it is managed. It should be noted
-that even- though the nsks-are--brought up in this matrix, there--are-far- fewer risks during- art
ESPC versus a traditional Design/Bid/Build process since the ESCO is true your single -point of
accountability. Simply put, all fingers point to us.
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SUBCONTRACTING PLAN
Q. Explain approach the Proposer intends to use for installation, specifically in
regards to subcontracting, that achieves the objective of the City to maximize
subcontracting opportunities for women and minority subcontractors. In
general terms, describe the work that is intended for subcontracting, and
intended outreach and recruitment efforts. The City will also review and
consider the Outreach Plan (submitted within the Vendor Questionnaire), to
determine the responsibility, commitment and comprehensiveness that the
Vendor displays within the Outreach Plan.
Key Points:
■ McKinstry Essention is committed to diversity in our industry and our community.
■ We will endeavor to go beyond encouraging the participation of WMBE firms.
■ We seek to create opportunities that are beyond the industry typical use of WMBE.
■ Please see attached letter from Ramsey Plumbing & Heating (WBE).
McKinstry Essention supports and encourages Women and Minority Owned Business Enterprise
(WMBE) participation in our projects. We will promote WMBE involvement on all projects by
subcontracting or sub -consulting portions of the work based on the desires of the client and
goals established. Since the ESCO projects have yet to be defined and developed, at this point
in time it is difficult to identify specific firms that would be utilized as contractors on projects.
However, as projects are developed and the energy conservation measures are defined, we will
package the scopes of work such that they provide maximum opportunity for WMBE firms to
participate in the subcontractor procurement process. In order to do so, McKinstry Essention
will actively participate in MWBE discussions in order to determine what contractors may be
available to engage in the projects. With their input, we will then finalize the packages of work
tailored to fit the capabilities of MWBE firms, while still maintaining financial discipline for the
overall project.
In general, we expect to subcontract some or all of the work on all projects, including
mechanical, electrical, controls, deconstruction/demolition, structural, painting, and other
miscellaneous general construction work. ESCO projects typically contain one or more of the
above items. Should a specific package of work (i.e. mechanical) not fit the capabilities of the
available pool of MWBE firms, we will endeavor to break out the package into multiple smaller
packages of work that would allow for maximum participation from the MWBE community.
A typical procedure is to seek out accredited firms to participate in the contractor procurement
-process based on th&r- capabilities and experience-forrthe applicable- area of -the—project.. -
McKinstry Essention stands ready to go beyond industry -accepted standard procedures. The
following paragraphs describe McKinstry Essention's unique approach and commitment to
diversity in our industry, and our community to create opportunities in many different arenas.
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STATEMENT OF POSITION
McKinstry Essenflon-is committed to diversity in our industry and our community. It is our intent.
Co do our part to support diversity with the inclusion of all peoples, specifically women, minority,
and disadvantaged people in our business activities. Our industry's history in these matters has
primarily dealt with compliance to specific levels of participation or mandated goals. That
system produced mixed results and became the centerpiece for debate on how to best realize
true diversity and ensure a level playing field. While McKinstry Essention has utilized many
WMBE partners over the years, complying with federal and state statutes, we feel there is a
much broader opportunity to engage women and minority people fairly and solidly in our
industry. With that in mind, the following is a Menu of Opportunities that can be explored.
MENU OF OPPORTUNITIES
w
1. Participation
■ Subcontracting: McKinstry Essention maintains relationships with a wide range of
WMBEs and can subcontract portions of project scope or complete sections to meet
team goals. In addition, we will actively schedule and participate in contractor
awareness meetings for the City of Seattle in order to notify the MWBE community
of upcoming projects in order to maximize participation.
■ Consultants/Outsourced Services: McKinstry Essention utilizes a wide range of
consulting services in the areas of project management, accounting, contract
administration, engineering, and marketing that are available to WMBEs. The
Rushing Group has been included as part of our development team, and we will
actively pursue other MWBE consultants for applicable components of the project.
■ Suppliers: McKinstry Essention has the ability to procure products and materials
from a wide range of suppliers from WMBE enterprises.
■ Manufacturers: McKinstry Essention remains available to seek out manufacturers
of equipment and fabricated materials offered by WMBE enterprises.
2. WMBE Firm Development
■ Mentoring: McKinstry Essention mentoring programs include such issues as:
business consultancy, loaned employees programs, staff -to -staff networking, shadow
activity, and business development advice and support.
■ Skills Development/ Education: McKinstry Essention offers access to educational
curricula, benchmarking, job site interaction, training, and others.
■ Work Acquisition Training: McKinstry Essention advises in such areas as pricing
- - strategies; sales and marketing -planning, etc. -
■ Industry/Trade Association Programs: McKinstry Essention provides access to
industry trade association activities such as training, networking, and client
development.
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3. People Development
_ - - Shadow Programs: McKinstry Essention provides shadow opportunities, where
individuals follow alongside staff observing and learning specific attributes of various
careers such as project management, engineering, sales, etc.
■ Internships: McKinstry Essention accepts internships in many areas throughout the
firm.
■ Individual Mentoring: McKinstry Essention offers personalized opportunities to
mentor with individual staff members for career counseling, training, and advisory.
• Apprenticeship: McKinstry Essention offers support to those who can benefit from
apprenticeship training by facilitating access and preparation.
■ Vocational Training: McKinstry Essention offers sponsorships in vocational training
programs throughout the region and in a wide range of skills.
4. Student/Future Workforce Outreach
■ Internships: McKinstry Essention works in cooperation with several high schools
and colleges/universities to place interns in a wide range of positions.
■ Job Site Educational Curriculums: McKinstry Essention offers onsite classroom
training, combining orientation to the construction industry with specific Information
on the many sectors involved in the building process.
■ Classroom Volunteerism: McKinstry Essention staff participates in classroom
teaching and training for several institutions.
■ Scholarships: McKinstry Essention participates in many scholarship -based school
programs and contests.
■ Vocational Training: McKinstry Essention participates in attracting students to
vocational training.
■ Apprenticeship Program Involvement: McKinstry Essention facilitates
introduction and access to apprenticeship programs.
S. Community Outreach
■ Employment Opportunity: McKinstry Essention Is an equal opportunity employer
and maintains opportunities to women, people of color, and disadvantaged
individuals.
■ Sponsorships: McKinstry Essention sets aside a specific budget for charitable
--contributinns, sponsorships, and.eveat 1inderwriting.---
■ Charitable Advocacy: McKinstry Essention executives and staff participate on
numerous community boards, committees, and event planning groups.
■ In -Kind Services: McKinstry Essention mobilizes its construction services for many
retrofit and service projects on an in-kind basis.
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October 6, 2006 Request for Proposal - #FFD -1791
October 4, 2006
McKinstry Essention
5005 Td Avenue South
Seattle, WA 98124
Attention: ESCO RFP Review Committee
Regarding: Letter of Reference - MdOnstry Essention
Ramsey Plumbing & Heating has been the mechanical contractor for many of Mcl(instry Essention's
projects We have appreciated our relationship with McKinstry Essention and look forward to a continued
long term beneficial relationship between our two organizations.
As the ESCO, McKinstry Essention consistently develops, manages, and executes their protects
successfully As a subcontractor, we are In a unique position to evaluate the ESCOs that we work with.
Some of the key characteristics of working with MCKinstry Essention include:
• Accurate scheduling and management of work
• Detailed bid packages (drawings, specrficaticins, other Information)
• Clear communication throughout project
• Coordination of trades (mechanical, electrical, controls, etc.)
• Prompt response to questions during construction
• Timely execution of contracts, invoices, and other paperwork
• Positive attitude of McKinstry Essention team members
7 -he above key points allow us to price our projects to N007stry Essenvon extremely competJtive/y,
knowing that our risk has been minfmiaed during the bid process and the project will be d were d In a
prvfesskmal and successful manner.
If you would like to discuss our relationship with McKinstry Essention in mare detail, please do not
hesitate to call me when you get the opportunity at 509482-2775.
Regards,
Ramsey Plumbing & Heatgpg--.,
Wendy Ramsey
President -- -
4023 E. Central Avenue
Spokane, Washington 99217-6585
(509) 482-2775 • FAX (509) 4132-2765
e -marl ramsevOramseyph eom
WBE#W2F2004874
Request for Proposal — Page 55 of 60Q�q—salldiftgtiry
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Energy savings Performance contracting
McKinstry Essention, Ina City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
FEE SCHEDULE
R. Submit with your proposal the hourly rate structure that will be charged for
these services should they be used for an ESCO project with the City. Describe
your mark-up and fee structure, commission and overhead. Please identify how
project costs are reconciled at the end of the project. Specifically include rates
for:
a. Engineering
b. Energy Analysis
C. CAD Drafting
d. Testing, Adjusting and Balancing
e. Mechanical & Electrical Trades
f. Other Trades
g. Control Technician
Key Points:
■ McKinstry Essention's overhead & profit structure is lower than national ESCO firms.
■ The same fee structure currently in place at other cities and municipalities has been
proposed for the City of Seattle.
■ Pricing and mark-ups are represented in a straightforward manner that is 100%
open book.
■ At project completion, all costs are reconciled with the client with 100% of
construction savings returned to the client.
McKinstry Essention has a very competitive fee and mark-up structure. Simply put, our business
model does not require the same profit targets as national ESCO firms, which allows McKinstry
Essention's clients to complete the most project for the lowest cost. Clients often provide
feedback that our fee structure results in total project costs 10-15916' lower than our
competitors. Our philosophy has always centered on developing long term partnerships with our
great clients. As such, our interest is not focused on developing confusing pricing in order to
hide an extra buck. Rather, we believe that fair and open pricing is needed to develop a level of
trust that will benefit all parties through a long term relationship.
In order to present clear, concise, and open pricing to our clients, McKinstry Essention has
developed a document called Table 4.1 — Budget Summary. The title is nomenclature that
reflects the structure of an Energy Services Proposal. The Table 4.1 document is utilized on all
of McKinstry Essention's ESPC projects to present the overall cost of the project to clients. In
addition to simply representing the dollars for the various categories of work, the Table 4.1
document also visibly details the equations utilized to calculate the cost of the various fees.
For City of Seattle projects, McKinstry Essention is committed to using the same competitive fee
structure currently in place at multiple cities, counties, education facilities, and other
municipalities. The various overhead, profit, design, and other fees that will apply to any City of
Seattle project are all represented on the Table 4.1 document. In order to specifically address
the fee and mark-up structure, McKinstry Essention has provided examples of the following
documents for the City of Seattle:
Request for Proposal — Page 56 of 60 Olt dnstry
IIS'
Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #_FFo-1791
• Fee Schedule—This document provides the proposed fee structure for the City of
Seattle.
• Labor Rates—This document provides the labor rates for in-house staff associated
with the project. All labor rates represent are fully burdened.
■ Table 4.1—This document shows how the proposed fees and in-house labor rates
would apply to a sample project.
At the completion of a project, all costs are reconciled in a 100% open book manner, with all
construction savings returned in full to the client. The reconciliation process is completed In an
open, communicative environment, with copies of subcontractor invoices, purchase orders, and
other information provided as needed to provide full visibility for all construction costs.
In addition to reconciling costs at the end of the project, at any time during the project
McKinstry Essention can provide up-to-date information on costs incurred and expected
remaining costs. This can help clients know whether construction savings will be available at the
end of the project, and if so, the magnitude of the savings. This information can be helpful to
clients for planning purposes.
Request for Proposal — Page 57 of 60Q�!
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99"1"a
Energy Savings Performance Contracting
McKinstry Essention, Inc. City of Seattle
October 6, 2006 Request for Proposal - #FFD -1791
„ ,- •+ McKinstry Essention Fee Schedule,
A CONSTRUCTION COSTS
Notes
City of Seattle Max Fee Schedule
Typ % of Total
Project Cost
Energy Conservation Measure
Subcontractor or In-house
Contractor Cost
Commissioning
In-house, 3rd Party, and/or City of Seattle Personnel
Project specific cost
General Conditions
Permits, site office project costs, M&V set-up equipment,
site supervision, bond costs, other GC items
protect specific cost
B. ESCO FEES
Directed Engineering Study Fee
For energy audit of the facility
Negotiated
15-20%
Design - Mech/plbg/elect/arch/struct
In-house & 3rd party consultant design costs
12% of non -lighting construction costs
Design - Lighting
In-house & 3rd party consultant design costs
8% of lighting construction costs
Coistruction Management
6% of construction costs
Ovarhead
8%
Fee (Subcontractors)
7%
Fee (Major Egwpmentp
For major equipment (i a chiller) purchased directly by
McKinstry Essention
5%
C. OTHER COSTS
Project Contingency
5-10%
5-10%
On -Going M&V
Term of M&V based on direction from City of Seattle
Negotiated, annual fee typically not more
than 8% of guaranteed savings
Construction Period R Nance Costs
Applied only if progress billing is not allowed
Negotiated if necessary
E. NON -GUARANTEED COSTS
Sales Tax
Perd9cal rate, as applicable
5-10%
Request for Proposal - Page 58 of 60"nstry
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Emndon
McKinsby Essentio», Inc Energy Savings Performance Contracting
October 6, 2006 City of SeattleRequest for Proposal - #FFD -1791
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McKinstry Essentionrin-Wdse'L s + ,
.��„y.,r�, y�` CONSTRUCTI COSTS,, 'x Y
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ihi4<,P. Ax�% C � rs ,i � �' . �, `a H r .'i
POSITION
HOURLY LABOR RATE
VALID THRU
COMMENTS
Mechanical Tradesman
$9000
5/31/07
Applicable only for work completed with in-house personnel
Electrical Tradesman
$9000
6/3/07
Applicable only for work completed with in-house personnel
Control Technician
N/A
N/A
Not provided with in-house personnel - subcontracted to controls vendor
Commissioning/TAB /technician
$8000
12/31/06
Applicable only for work completed with in-house personnel
s
Site Supervisor $7500 12/31/06 Direct job cost
i'��,f y..;a'�. L•G ry�,'`p� �:�h%E`� �a,r � y�?'y- Y4 y -^ ..a_ ^ ,; .. i N< r 3 - ,t�-�, , .- y - , � - ;s r. , - o - r_
ESCO FEES 4orRfe Only, , All Labor Costs Included in F ? ”' _`
Y ee Structure �w`x;�0
s
POSITION
HOURLY LABOR RATE
VALID THRU
COMMENTS
Design Engineer
$8500
12/31/06
For reference only, labor costs covered through MEP Design fee
CAD/Drafting
$6000
12/31/06
For reference only, labor costs covered through MEP Design fee
Energy Engineer/Analysis
$7500
12/31/06
For reference only, labor costs included in Directed Engineering Study Fee
Lighting Engineer
$7500
12131/06
For reference only, labor costs covered through Lighting Design fee
Performance Assurance Specialist
$6000
12/31/06
For reference only, labor costs included in on-going M&V fee
Request for Proposal — Page 59 of 60
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McKins" Essenti4n, Inc
October 6. 2006
Energy Savings Performance Contracting
City of Seattle
Reauest for Proposal - #FFD -1791
TABLE 4.1 BUDGET SUMMARY
FIM No
Multiple
Date
I
Project I City of S¢attle
Budget Phase
Building Sample Project
M&V Term (Years)
3'^
Square Feet
120,000
A! CONSTRUCTION COSTS'
Mech '.Elec' , Major Equip
Lighting
General
NOTAL
1 Enerav Coniservation Measure #1
2 Enerav Conservation Measure #2
3 Commissioning
4 General Co6ditions
$123,046 $31,800 $37,725
$0
$19,000
$211,571
$133,574
$4,500
$18,400
$0 $0 $0
$133,574
$0
$4,500
$18,400
TOTAL CONSTRUCTION COST (A Items 14) = A a
` $123,046 1 $31,8001 $37,725 1
$133,5741
$41,900
$368,045
B, ESCO FEES
1 Directed Engineering Study
2 Design - Mech/plbg/elecUarch/struct
3 Design - Lighting
4 Construction Management
5 Overhead
6 Fee (Subcontractors)
7 Fee (Major Equipment)
$7,200 Square feet x $ 06 f sf
73% B2 t%) x A (less lighting and general conditions)
45% B3 t%) x A (lighting only)
58% B4 t%) x A
9 0% B5 t%) x A
70% B6 1%) x A (less major equipment)
50% B8 i% x A (major equipment onl
$7,200
$15,773
$6,011
$21,347
$33,124
$13,772
$1,886
TOTAL ESG,0 FEES (B Items 1-7) = B
K ', _, r--= -•
. $99113
CE OTHER COSTS
1 Project Conl6gency
2 On -Going M&V
3 Constructio Period Finance Costs
0 0% C1 t%) x A
$6,400 Negotiated, annual cost typically not more than 8% of guaranteed savings
$0 Applied if progress payments not allowed
$0
$6,400
$0
= TOTAL OTHER COSTS "(C Items 1-4) = C �b • 7, �_ ` �'z' '''
K, y`, $6,400
I
D: TOTAL GUATEED CONSTRUCTION & ESCO SERVICES (A+B+C)= D,—,
.. $473 558
E: NON-GUARANT D COSTS
1 Sales Tax
8 8% E1 t% x A + g
$41,110
TOTAL NODI
A=GUARANTEEDCOSTS=E
$ 41110
TOTAL MAXIMUM PROJECT COST D+ = F
ry= ;r,,. _ ,
°a
s i wE $514,668
Request for Proposal — Page 60 of 60
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