McKinstry Agreement

City of Glendale — Regular Meeting (2021-06-08)

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C19-0979

LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
MCKINSTRY ESSENTION, LLC

THIS LINKING AGREEMENT (this “Agreement’”) is entered into as of this gm day of

OGobEr , 20\4, between the City of Glendale, an Arizona municipal corporation (the “City”), and

McKinstry Essention, LLC, a Washington limited liability company authorized to do business in
Arizona (“Contractor”), collectively, the “Parties.”

RECITALS

A. On October 19, 2016, under the S.A.V.E. Cooperative Purchasing Agreement, the City of
Tucson entered into a contract with Contractor to purchase the goods and services described
in the Energy Performance Contracting Services Contract, Contract #161436-07,
(“Cooperative Purchasing Agreement”), which is attached hereto as Exhibit A. The
Cooperative Purchasing Agreement permits its cooperative use by other governmental
agencies including the City.

B. Section 2-149 of the City’s Procurement Code permits the Materials Manager to procure goods
and services by participating with other governmental units in cooperative purchasing
agreements when the best interests of the City would be served.

C. Section 2-149 also provides that the Materials Manager may enter into such cooperative
agreements without meeting the formal or informal solicitation and bid requirements of
Glendale City Code Sections 2-145 and 2-146.

D. The City desires to contract with Contractor for supplies or services identical, or nearly

identical, to the supplies or services Contractor is providing other units of government under
the Cooperative Purchasing Agreement. Contractor consents to the City’s utilization of the
Cooperative Purchasing Agreement as the basis of this Agreement, and Contractor desires to
enter into this Agreement to provide the supplies and services set forth in this Agreement.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals, which are incorporated by reference,
and the covenants and promises contained in this Linking Agreement, the parties agree as follows:

1. Term of Agreement. The City is purchasing supplies and/or services from Contractor
pursuant to the Cooperative Purchasing Agreement. According to the Cooperative
Purchasing Agreement, purchases can be made by governmental entities from the date of
award, which was October 19, 2016, until the date the contract expires on October 18, 2021,
unless the term of the Cooperative Purchasing Agreement is extended by the mutual
agreement of the original contracting parties. The Cooperative Purchasing Agreement,
however, may not be extended beyond October 18, 2026. The initial period of this Agreement,
therefore, is the period from the Effective Date of this Agreement until October 18, 2021.

1/29/18

rs)

The City, however, may renew the term of this Agreement for five one-year periods until the
Cooperative Purchasing Agreement expires on October 18, 2026. Renewals are not automatic
and shall only occur if the City gives the Contractor notice of its intent to renew. The City
may give the Contractor notice of its intent to renew this Agreement 30 days prior to the
anniversary of the Effective Date to effectuate such renewal.

Scope of Work; Terms, Conditions, and Specifications.

A. Contractor shall provide City the supplies and/or services identified in the Scope of
Work attached as Exhibit B.

B. Contractor agrees to comply with all the terms, conditions and specifications of the

Cooperative Purchasing Agreement. Such terms, conditions and specifications are
specifically incorporated into and are an enforceable part of this Agreement.

Compensation.

A. City shall pay Contractor compensation at the same rate and on the same schedule as
provided in the Cooperative Purchasing Agreement, which is attached hereto as
Exhibit C.

B. The total purchase price for the supplies and/or services purchased under this

Agreement shall not exceed one hundred thousand dollars ($100,000) for the entire
term of the Agreement (initial term plus any renewals).

Cancellation. This Agreement may be cancelled pursuant to A.R.S. § 38-511.

Non-discrimination. Contractor must not discriminate against any employee or applicant for
employment on the basis of race, color, religion, sex, national origin, age, marital status, sexual
orientation, gender identity or expression, genetic characteristics, familial status, U.S. military
veteran status or any disability. Contractor will require any Sub-contractor to be bound to the
same requirements as stated within this section. Contractor, and on behalf of any
subcontractors, warrants compliance with this section.

Insurance Certificate. A certificate of insurance applying to this Agreement must be provided
to the City prior to the Effective Date.

E-verify. Contractor complies with A.R.S. § 23-214 and agrees to comply with the
requirements of A.R.S. § 41-4401.

No Boycott of Israel. The Parties agree that they are not currently engaged in, and agree that
for the duration of the Agreement they will not engage in, a boycott of Israel, as that term is
defined in A.R.S. §35-393.

Attestation of PCI] Compliance. When applicable, the Contractor will provide the City
annually with a Payment Card Industry Data Security Standard (PCI DSS) attestation of
compliance certificate signed by an officer of Contractor with oversight responsibility.

i}

1/29.18

10. Notices. Any notices that must be provided under this Agreement shall be sent to the Parties’
respective authorized representatives at the address listed below:

City of Glendale
c/o Vern Baker

6210 W. Myrtle Ave., Suite 111

Glendale, Arizona 85301
623-930-2679

and

McKinstry Essention, LLC

c/o Steve Frost

4835 East Cactus Road, Suite 100

Scottsdale, Arizona 85254
480-407-4672

IN WITNESS WHEREOF, the patties hereto have executed this Agreement as of the date and year

set forth above.

City of Glendale, an Arizona
municipal corporation

» he Fifa

fy Kevia R. Phelps
in ee Manager

ATTEST:

Juli K, (SEAL)

APPROVED AS TO FORM:

MichatiD_Dhiley

City Attorney

“Contractor”

McKinstry Essention, LLC,
a Washington limited liability company

By: Seabsi Kouengpe
Name: Leslie Larocque

Title: Vice President

1/29.18

LINKING AGREEMENT
BETWEEN
THE CITY OF GLENDALE, ARIZONA
AND
MCKINSTRY ESSENTION, LLC

EXHIBIT A
CITY OF TUCSON CONTRACT #161436-07
ENERGY PERFORMANCE CONTRACTING SERVICES

1/29.18

Contract #161436

~ ENERGY PERFORMANCE
CONTRACTING SERVICES

Table of Contents

1. Negotiations/Clarifications

2. Response to RFP #161436
and RFP # 161436

1. Negotiations/Clarifications

PHOENIX, AZ 85022

ins 702 E, BELL RD, STE 121
480.407.4672 « McKINSTRY.COM

Pr tite Of Your Bullding

September 15, 2016

Dan Longanecker, CPPB

Principal Contract Officer

City of Tucson - Department of Procurement
255 W. Alameda

P.O. Box 27210

Tucson, AZ 85726-7210

RE: RFP NO. 161436 - ENERGY PERFORMANCE CONTRACTING SERVICES -
MCKINSTRY RESPONSE TO NOTICE OF INTENT TO NEGOTIATE

Dear Mr. Longanecker,

We sincerely appreciate the opportunity to work with the City of Tucson on this Important
endeavor for Energy Performance Contracting Services.

In regards to our response to Form 4, Item 2: Abide by 3" Party M&V to arbitrate savings
disputes, I hereby confirm that McKinstry accepts thls methodology and Is legally able to abide
by third party M&V to arbitrate savings disputes, should they arise, and for tracking ESA/ESP
savings payments.

Please make note that our Phoenix office location has changed recently, The new address is:

McKinstry Essention, LLC
702 E. Bell Road, Suite 121
Phoenix, AZ 85022
480.407.4672 phone

Please feel free to contact me at 303.215.4044 or email me at lesliel@mckinstry.com should

you have any questions. We very much appreciate your selection of McKinstry to move to the
next stages for this project and look forward to working with you.

Best regards,

Luba Lansoque

Leslie Larocque
Regional Director

LICENSES & REGISTRATIONS
AZ + 260221 « 224933 « 251238

TUCSON

CITY OF
TUCSON

DEPARTMENT OF
PROCUREMENT

sent via email this day EdR@mckinstry.com

September 12, 2016

Ed Rucker

Senior Account Executive
McKinstry Essention, LLC
3430 E. Shea Blvd., Suite 200
Phoenix, AZ 85028

Subject: RFP No. 161436- Energy Performance Contracting Services
Notice of Intent to Negotiate

Mr. Rucker,

The City of Tucson has completed evaluation of submittals received in response to the
subject solicitation. Based on the recommendation of the evaluation committee, the City
is inviting McKinstry to enter negotiations. This letter serves as notification of the City’s
intent to enter into negotiations. Specifically, the City intends to discuss the following:

1. Regarding your response to Form 4, Item 2: Abide by 3” Party M&V to arbitrate
savings disputes:

Confirm your firm's acceptance of this methodology, should the need to arise in
any future project.

Notice of Intent to Negotiate is not an intent to award a contract and does not establish a
contractual relationship between McKinstry and the City of Tucson. In the event that the
City is not able to negotiate a satisfactory contract with McKinstry the City may terminate
negotiations.

Response to be provided as soon as feasible but no later than September 16, 2016
at 5:00 p.m local AZ time. An authorized signature and date must be included in the
response. Response can be emailed (Dan.Longanecker@tucsonaz.gov). The City of
Tucson appreciates your interest in this contract. If you should have any questions,
please feel free to contact me at 520.837.4125.

Sincerely,

SIZ,

Dan Longanecker, CPPB
Principal Contract Officer

ADMINISTRATION ¢ DESIGN AND CONSTRUCTION SERVICES ¢ GOODS AND SERVICES
MAIL SERVICES ¢ S.A.M.M, (SURPLUS AUCTION MATERIALS MANAGEMENT)
CITY HALL @ 255 W. ALAMEDA ¢ P.O. BOX 27210 # TUCSON, AZ 85726-7210
(520) 791-4217 « FAX (520) 791-4735 @ TY'Y (520) 791-2639
www tucsonprocurement.com

2. Response to RFP #161436
and RFP # 161436

City of Tucson

| Energy Performance Contracting
Binstry RFP No. 161436

Life Of Your Bullding

TUCSON, ARIZONA

17 MAY 2016 ORIGINAL |

= 3240 E, SHEA BLVD, SUITE 200
V PHOENIX, AZ 85028

Of Your Buttal 602.466.3191 * McKINSTRY.COM

May 17, 2016

Mr. Dan Longanecker, CPPB

Principal Contract Officer

City of Tucson, Department of Procurement
255 W. Alameda, 6" Floor

Tucson, AZ 85701

RE: CITY OF TUCSON ENERGY PERFORMANCE CONTRACTING, RFP NO. 161436

Dear Mr. Longanecker,

On behalf of McKinstry Essention, LLC (McKinstry), we are honored to present our response to your
request for proposal for energy performance contracting. We understand your goals to achieve
significant long-term energy and operating cost savings in a cost effective manner to provide
maximum funding for capital Improvements. McKinstry’s belief and philosophy is that reducing energy
consumption at City facilities should come from both appropriate equipment replacements, and low
cost operational improvements. We are uniquely qualified as the best fit for the City of Tucson for the
following reasons;

1. Our services cost less. We are a privately owned, domestic-only company, with a full suite of
services available in-house. This means no answering to Wall Street stockholders or capital
management firms and no expensive international headquarters. Our in-house, best-in-class
engineering design, construction management, commissioning, and measurement &
verification reduce first cost through design excellence, as well as eliminating mark-ups on
mark-ups.

2. Our innovative engineering team has the capability to uncover energy savings opportunities
that others miss. We are committed and dedicated to providing unique, creative designs and
financial solutions to find the lowest utility rate structures incorporating rebates and
incentives.

3. We leverage our local team of contractors, suppliers and ongoing service providers to
eliminate travel and overhead costs, ensure accountabllity, efficient service, and provide the
overall best value.

4. We listen. Our co-authored approach will incorporate the City of Tucson team’s valuable
insight and experience.

5. We are not a manufacturer, This is a double bonus because we do not incur research and
development costs and we have zero conflicts of Interest when recommending the most
beneficial brands for your projects.

We appreciate your consideration and look forward to an opportunity to interview with your team. If
you have further questions, please do not hesitate to contact me at (602) 526-7152 or via email at
edr@mckinstry.com.

Sincerely, ) v
Ed Rucker Leslie Larocque i
Senior Account Executive Regional Director, Signatory Authority

LICENSES & REGISTRATIONS
AZ © 260221 © 224933 » 251238

CITY OF TUCSON DEPARTMENT OF PROCUREMENT

REQUEST FOR PROPOSAL NO. 161436

256 W. ALAMEDA, 6TH FLOOR, TUCSON, AZ 8570 PAGE 13 OF 23
Dan.Lonaanecker@tucsonaz.qov : PRINCIPAL CONTRACT OFFICER: DAN LONGANECKER, CPPB
PH: (520) 837-4125 / FAX; (520) 791-4735
PAYMENT INFORMATION
1. As stated in the Instructions to Offerors, 7. Discounts, the price(s) herein can be discounted by__0 _%, if
payment is made within days. These payment terms shall apply to all purchases and to all payment
methods.
2. Cooperative Purchasing Program: Will your firm provide the City of Tucson, as the lead agency on this
regional contract, a rebate in the form of a percentage of sales based upon the other agencies sales?
Yes X__No If yes, state proposed percentage: %
3. Will payment be accepted via commercial credit card? Yes __X__No
a. If yes, can commercial payment(s) be made online? Yes No
b. Will a third party be processing the commercial credit card payment(s)? __ Yes No
c. If yes, Indicate the flat fee per transaction $, (as allowable, per Section 5.2.E of Visa
Operating Regulations).
d._ If"no" to above, will consideration be given to accept the card?__ X__—Yes No
4. Does your firm have a City of Tucson Business License? X__Yes No
If yes, please provide a copy of your City of Tucson Business license.
i. GENERAL
A. Shortlist:
The City reserves the right to shortlist the offerors on any of the stated criteria. However, the City may
determine that shortlisting is not necessary.
B. Interviews:
The City reserves the right to conduct interviews with some or all of the offerors at any point during the
evaluation process. However, the City may determine that interviews are not necessary. In the event
interviews are conducted, information provided during the interview process shall be taken into
consideration when evaluating the stated criteria. The City shall not reimburse the offeror for the costs
associated with the interview process.
Cc. Additional Investigations:
The City reserves the right to make such additional Investigations as it deems necessary to establish the
competence and financial stability of any offeror submitting a proposal.
D. Prior Experience:
Experiences with the City and entitles that evaluation committee members represent and that are not
specifically mentioned in the solicitation response may be taken into consideration when evaluating offers.
E. Multiple Awards:

To provide adequate contract coverage, at the City’s sole discretion, multiple awards may be made.

Contents

instry

te 2 owe Bottag

FORM 1.
FORM 2.
FORM 3.
FORM 4.
FORM 5.
FORM 6,
FORM 7.
FORM 8.
FORM 9,
FORM 10.
FORM 11.

FORM 12.

'SERVICES OFFERED BY RESPONDENT
PROJECT SCENARIOS

PRICING

FINANCING OPTIONS

ABILITY TO PERFORM
WARRANTIES

CUSTOMER SERVICE

ADDITONAL SERVCES

M&V CAPABILITIES

FIRM INFORMATION

RELEVANT EXPERIENCE
PARAMOUNT OBJECTIONS

OFFER AND ACCEPTANCE FORM
AMENDMENT ACKNOWLEDGMENTS

CITY OF TUCSON RFP 161436 - COPY

' Please note that this response provides the basic economic terms on which
McKinstry would be willing to perform the scope of services outlined here. This
response does not cover alt of the terms and conditions relevant to a definitive
agreement about these services. Nothing in this response approves legal terms such
as warranties, indemnification, insurance requirements, and limitations of liability,
even /f those terms were included in the request for proposal. The details of those
terms must be negotiated by the parties and set forth in a definitive agreement with
respect to McKinstry’s services.

CITY OF TUCSON | ENERGY PERFORMANCE CONTRACTING

RFP NO. 161

CONTENTS

436 | MAY 17, 2016

Form: 1

Services Offered by Respondent

..m1
Services Offered by Respondent

| Instructions: Fill out Respondent name in cell B20 below. Review each of the 5 tabs. If respondent can and

| will offer a service offered under a given category represented on a tab, select "yes" from the dropdown.
"Yes" is the only option. So if the Respondent will not offer a service, do not select anything. Due to the

- fact this may be a multiple-award contract, it is recommended that respondents offer services based on
their firm’s core strengths.

| A Respondent may choose to offer any individual service or any combination of services, with the exception
_ of Third Party Measurement and Verification (M&V). While any firm may measure and verify the

: performance of their services and projects, official Third Party M&V services must stand alone and cannot

| be offered in conjunction with other services.

|Respondant/Company Name | McKinstry Essention, LLC |

an

Analytical

ASHRAE Level 1 Energy Audit (equivalent) Yes
ASHRAE Level 2 Energy Audit (equivalent) Yes
ASHRAE Level 3 Energy Audit (equivalent) Yes
Code analysis

Commissioning Yes
Energy Modeling Yes
Energy Monitoring and Analysis Yes
Engineering Assessments Yes
Equipment condition assessments Yes
Facility Condition Assessments Yes
Life cycle cost analyses Yes
Monitoring systems optimization and upgrades Yes
Permitting analysis

Real time interval data/telemetry Yes
Retro-commissioning Yes
Schematic Design Yes
Space allocation analyses

Staff Awareness Survey Yes
Standard Measurement and Verification* Yes
Sub Metering Yes
Utility Rate Audits Yes

* As opposed to official 3rd party M&V

Official 3rd Party Measurement and Verification

Provide Measurement and Verification Services in
accordance with the International Performance
Measurement & Verification Protocol (IPMVP)

Corroboration of guaranteed savings

Demand Reduction

Advanced metering and meter reading - AMR, AMI Yes
Battery energy storage systems Yes
Biogas utilization Yes
Bioreactors
Building automation and controls Yes
Buildings Yes
Cogeneration and combined heat and power plants/upgrades Yes
Controls systems repair Yes
Cool roofs Yes
Cooling tower optimization Yes
Cooling towers Yes
Curtailment Yes
Deferred maintenance (energy/water related) Yes
Deferred maintenance (Ex. Leak detection & repair, emitter repair, adjustment, etc)
District Energy Systems Yes
Duct leak repair Yes
Dust mitigation
Efficient driver training
Efficient interior water fixtures (ex. Flush valves, toilets, aerators, shower heads, etc) Yes
Electric Vehicle Fleets Yes
Energy Recovery Yes
Envelope modernization Yes
Fault Detection Diagnostics Yes
- [Fleet Modernization Yes
Electrical Generation facilities (turbine engine, gas engine, etc.) Yes
Gray water system design and installation (active and/or passive systems) Yes
Heating Ventilation and Air Conditioning Yes
Idle reduction programs and hardware Yes
Insulation - buildings Yes
Irrigation optimization and leak detection Yes
Irrigation controls technology Yes
Landfill gas utilization Yes
Landscape maintenance best practices (for water efficiency) Yes
Large scale energy storage Yes
Large scale solar Yes
Lighting - interior Yes
Lighting - site Yes
Like-for-like equipment replacement (efficiency upgrade) Yes
Electric motor efficiency and optimization Yes
Monitoring systems optimization and upgrades Yes
Municipal water systems Yes
Natural gas transport bypass
Non like-for-like upgrades - HVAC re-engineering Yes
On site fuel blending - biogass and biodiesel - renewable identification numbers
Pump management Yes

Pumped water energy storage systems Yes
Rain & storm water harvesting installation (active and/or passive systems) Yes
Real time interval data/telemetry Yes
Retro-commissioning Yes
Roof cooling Yes
Shading - buildings Yes
Small engines mitigation - landscape equipment, compactors, etc.

Sub-metering Yes
System modification or re-engineering Yes
Thermal energy storage systems Yes
Toilet flushing Yes
Turf mitigation Yes
Turf replacement with artificial or alternative equivalent Yes
Vehicle replacement Yes
Vehicle washing Yes
Waste gasification/incineration Yes
Waste to energy Yes
Water systems efficiency upgrades Yes
Weatherization leak repair (caulking, door sweeps, etc.) Yes

Windows

Yes

Supply Management and Energy Purchasing

Energy/fuel purchasing consulting/brokerage as needed

Hedging energy costs

Liquid fuel purchasing

Natural gas purchasing

Other Yes

Power purchase agreements Yes