HomeMy WebLinkAboutContractJanuary 16, 2025
TO: Edward Grube, City of Renton
FROM: Rachel Whitezel, Contracts Specialist, (360) 239-4134
RE Agreement No. 2025-507 A (1)
200 Mill Building CBPS Compliance Upgrades
IAA No. K4137
McKinstry Essention, LLC
SUBJECT: Funding Approval
The Dept. of Enterprise Services (DES), Energy Program, requires funding approval for the above
referenced contract documents. The amount required is as follows:
ESCO Audit $ 88,188.00
Total Funding $ 88,188.00
In accordance with the provisions of RCW 43.88, the signature affixed below certifies to the
DES Energy Program that the above identified funds are appropriated, allotted or that
funding will be obtained from other sources available to the using client/agency. The using/
client agency bears the liability for any issues related to the funding for this project
By
Armondo Pavone / Mayor Date
Please sign and return this form to the Energy Program. If you have any questions, please
call me.
2025507AagrFundrw
3/10/2025
Attest_____________________________________________
Jason A. Seth, City Clerk
3.20.25
Authorization No. 2025-507 A (1) Page 2 of 3
Effective March 14, 2024
III. PROJECT CONDITIONS:
The Project Conditions contained in the Main Energy Services Agreement will be used
unless specifically changed herein. The cost effectiveness criteria for this project are per the
McKinstry Essention, LLC proposal dated January 6, 2025.
IV. SCOPE OF WORK:
Per the ESCO proposal dated January 6, 2025 conduct a Detailed Investment Grade Energy
Audit of City of Renton, 200 Mill Building CBPS Compliance Upgrades, to identify cost
effective energy conservation measures and present a written Energy Services Proposal,
including all energy audit documentation. The ESCO shall prepare the final Energy Services
Proposal, detailing the actual energy services and ESCO equipment to be provided, energy
savings and cost guarantees, measurement and verification plans, and commissioning plans
for the proposed measures. Measures will include items that save energy, water and other
resources. The Cost Effectiveness Criteria for this project shall be as established in the Main
Energy Services Agreement or as modified in Section III above.
V. SCHEDULE FOR COMPLETION
Final completion of the Energy Audit and Energy Services Proposal within 133 calendar
days after Authorization to Proceed.
VI. CIVIL RIGHTS
Contractor represents and warrants that Contractor complies with all applicable requirements
regarding civil rights. Such requirements prohibit discrimination against individuals based
on their status as protected veterans or individuals with disabilities and prohibit
discrimination against all individuals based on their race, color, religion, sex, sexual
orientation, gender identity, or national origin.
VII. NON-DISCRIMINATION
1. Nondiscrimination Requirement. During the term of this Contract, Contractor, including
any subcontractor, shall not discriminate on the bases enumerated at RCW 49.60.530(3).
In addition, Contractor, including any subcontractor, shall give written notice of this
nondiscrimination requirement to any labor organizations with which Contractor, or
subcontractor, has a collective bargaining or other agreement.
2. Obligation to Cooperate. Contractor, including any subcontractor, shall cooperate and
comply with any Washington state agency investigation regarding any allegation that
Contractor, including any subcontractor, has engaged in discrimination prohibited by this
Contract pursuant to RCW 49.60.530(3).
Authorization No. 2025-507 A (1) Page 3 of 3
Effective March 14, 2024
3. Default. Notwithstanding any provision to the contrary, Agency may suspend Contractor,
including any subcontractor, upon notice of a failure to participate and cooperate with
any state agency investigation into alleged discrimination prohibited by this Contract,
pursuant to RCW 49.60.530(3). Any such suspension will remain in place until Agency
receives notification that Contractor, including any subcontractor, is cooperating with the
investigating state agency. In the event Contractor, or subcontractor, is determined to
have engaged in discrimination identified at RCW 49.60.530(3), Agency may terminate
this Contract in whole or in part, and Contractor, subcontractor, or both, may be referred
for debarment as provided in RCW 39.26.200. Contractor or subcontractor may be given
a reasonable time in which to cure this noncompliance, including implementing
conditions consistent with any court-ordered injunctive relief or settlement agreement.
4. Remedies for Breach. Notwithstanding any provision to the contrary, in the event of
Contract termination or suspension for engaging in discrimination, Contractor,
subcontractor, or both, shall be liable for contract damages as authorized by law
including, but not limited to, any cost difference between the original contract and the
replacement or cover contract and all administrative costs directly related to the
replacement contract, which damages are distinct from any penalties imposed under
Chapter 49.60, RCW. Agency shall have the right to deduct from any monies due to
Contractor or subcontractor, or that thereafter become due, an amount for damages
Contractor or subcontractor will owe Agency for default under this provision.
2025507Aagrrw
McKinstry 5005 3rd Ave. S., Seattle WA Confidential and Proprietary
January 6th, 2025
City of Renton
Investment Grade Audit Proposal Rev. 1
To: Jeff Minisci, Facilities Director, City of Renton
From: Andy Morgan, Building Energy Program Manager, McKinstry
Cc: Chris Lewis, Project Manager, WA Department of Enterprise
Services
Andrew Williamson, Municipal Business Manager, McKinstry
Subject: 200 Mill Building Investment Grade Audit Proposal
Project Description: The City of Renton is interested in improving the infrastructure
and efficiency of the 200 Mill Building through a performance-based contract with
McKinstry. This proposal will provide the guidelines for which McKinstry will provide the
following tasks:
1. Conduct an Investment Grade Audit at the target facilities:
200 Mill Building (56,968 sq ft)
2. Develop a comprehensive Energy Services Proposal, for selected measures to be
implemented based on the Cities priorities.
Initial target measures are:
i. Upgrade Air Cooled chiller.
ii. Upgrade lighting.
iii. Upgrade HVAC hot water heating.
iv. Upgrade domestic hot water heating.
v. Upgrade HVAC Controls.
vi. Upgrade HVAC Terminal Units.
vii. Reduce envelope energy loss.
viii. Upgrade Air Handlers.
ix. Provide Solar Photovoltaics.
x. Upgrade elevator infrastructure.
3. Perform the following steps to start the effort toward CBPS Compliance:
Perform benchmarking and target Energy Use Intensity calculation.
Ensure that utility data flows from the utility to Energy Star Portfolio
Manager automatically for this building.
4. Assist in applying for CBPS Audit Grants for this building, as necessary.
5. This IGA is a comprehensive Level II ASHRAE Audit of the building to support
meeting CBPS requirements per Washington State CBPS July 2024 version.
6. There are additional steps that will need to be taken for CBPS Compliance that
are not included in this scope of work. They include, but are not limited to:
Development of an Energy Management Plan
Development of an Operations and Maintenance Plan
Compliance document submission to Commerce depending on compliance
path selected.
Follow-on reporting once a compliance path is chosen.
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McKinstry 5005 3rd Ave. S., Seattle WA Confidential and Proprietary
7. Identify a scope, project schedule and financial package for project
implementation in 2025-2026.
The investment grade effort is intended to lead to the implementation of energy
improvement measures. The audit will provide all the details necessary for
implementation of viable initiatives detailing all the associated savings, costs, potential
utility funding, and return on investment scenarios, as well as loan details (if applicable)
and construction schedules.
This will be a collaborative effort with the City of Renton and the Washington State
Department of Enterprise Services (DES). The study will be a product of the direction
McKinstry receives, and it is expected that the information contained in the resulting
Energy Services Proposal will form the basis of contracting documents for
implementation. The specific deliverables associated with this professional services
endeavor can be found in Attachment A.
Requested Information: For effective execution of this proposal, we ask that the City
of Renton provide access to the following:
Historical utility bills for the last 24 months.
All mechanical, electrical, architectural, and structural drawings.
All operational and maintenance manuals, balancing records, & specifications.
Operational records related to the cost of maintaining specific equipment.
Information with regards to any on-going maintenance contracts.
Access to individuals that have relevant information about the day-to-day
operation of energy using systems on site.
Access to the building automation systems, including remotely, if available.
Prior energy studies for related systems, if applicable.
Any available hazardous material survey reports.
Timeline and Milestones: McKinstry will start this scope of work immediately upon
execution of a Professional Services Contract and notice to proceed. Formal progress
review meetings will be conducted regularly throughout the study phase. During these
review meetings, McKinstry will recommend measures based on preliminary analysis,
while the City of Renton will provide final direction regarding recommended measures.
The goal of these review meetings is to focus engineering efforts, budgeting, and
savings assessment on those measures that have a high probability for implementation.
McKinstry will target completion of the IGA (Investment Grade Audit) within 133
calendar days of a notice to proceed. The following are proposed milestones following
notice to proceed:
Duration Action
13 weeks
McKinstry to deliver pre-final investment grade audit analysis and
recommendations
2 weeks Owner review comments and direction given
1 weeks McKinstry to deliver investment grade audit analysis
3 weeks Owner review comments and direction given
1 weeks McKinstry to deliver Energy Services Proposal
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McKinstry 5005 3rd Ave. S., Seattle WA Confidential and Proprietary
Cost Effectiveness Criteria:
Deliverables will include a full ASHRAE level two audit that shows the condition of
all building systems and envelope, as well as investigates and suggests possible
Facility Improvement Measures for any systems that contribute to falling below
EUIt. This audit will be crafted to allow for CBPS compliance via the investment
criteria pathway put forth by WA DOC, and will conform to the deliverables listed
in Attachment A.
McKinstry will list some grants and rebates that could be applied for to offset
cost of suggested FIMs, as possible
Investment Grade Audit Fee: The City of Renton will reimburse McKinstry for a lump
sum of $88,188 for this scope of work. All fees assessed under this proposal will be
included in the final implementation costs. In the event that McKinstry is unable to
meet the criteria above, the City of Renton will have no financial obligation to McKinstry.
However, if the recommendations meet or exceed the Criteria for Implementation and
the City of Renton chooses not to enter into an agreement with McKinstry to install the
projects, the City of Renton will reimburse McKinstry for the Investment Grade Audit fee.
All associated information, including deliverables, will become the property of the City of
Renton upon final receipt of payment.
We look forward to working with the City of Renton. Please call should you have any
questions.
Best Regards,
Andy Morgan
McKinstry Energy Services
Building Energy Program Manager
360)731-7252
McKinstry 5005 3rd Ave. S., Seattle WA Confidential and Proprietary
Attachment A
Deliverables
Investment Grade Audit
An IGA is an intensive engineering analysis of Facility Improvement Measures
FIMs) for the facility, net energy savings, and a cost-effectiveness determination.
This is a Level 2 audit as defined in ANSI/ASHRAE/ACCA Standard 211-2018,
Standard for Commercial Building Energy Audits.
The IGA report shall be submitted before the ESP for Owner and DES review.
The IGA report shall include results from the preliminary audit and:
1. Executive summary of the audit findings;
2. A description of the Facility including type of use, square footage, and location;
3. Description of building systems and major equipment;
4. The standards of comfort and service appropriate for the Facility;
5. The Baseline Energy Consumption per fuel type for the Facility, including the
data, methodology and variables used to compute the Baseline, and the
Baseline calendar period which must not be less than 12 months, and must
be multiples of 12 months;
6. Utility rate schedules and/or Tariffs(obtained from the appropriate utility
website);
7. Detailed energy analysis calculations. If an energy model is
performed the software used, baseline modeling assumptions, and
summary of results;
8. Facility benchmarking including the Energy Use Intensity (EUI) index
Manager with a printout of the Energy Star Statement of Performance;
Please note that the Statement of Performance will not be stamped
by a professional engineer unless our IGA proposal explicitly includes
stamping. This is because the EPA has additional tasks (beyond those
required in ASHRAE Level 2 audits) that must be completed prior to
stamping the Statement of Performance.)
9. A list of applicable building, mechanical, energy, or other pertinent state and
project costs;
10. Description of Facility Improvement Measures (FIMs) recommended;
11. Description of FIMs considered and not recommended or not financially
viable;
12. Measurement and verification (M&V) plan proposed for verifying energy
savings consistent with the International Performance Measurement and
Verification Protocol (IPMVP);
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McKinstry 5005 3rd Ave. S., Seattle WA Confidential and Proprietary
13. Financial analysis of FIMs;
14. Summary table with FIM name, installed cost, energy savings by utility, and
O&M savings;
15. Normative Annex C Reporting Forms for Level 1 and Level 2 audits found
in the ASHRAE Standard for Commercial Buildings Energy Audits;
16. Prepared by a person acting as the auditor of record, who must be a
qualified energy auditor having training, expertise, and three years of
professional experience in building energy auditing, and being any one of
the following:
a. A licensed professional architect or engineer
b. An energy auditor, assessor, or analyst certified by ASHRAE
or the Association of Energy Engineers (AEE) for all building
types.
Energy Services Proposal
ESCO shall present to DES and the Owner a written ESP, including the Energy Audit
Documentation, within the time specified in the Energy Services Authorization and
commencing on the date of the Authorization to Proceed.
The ESP shall set forth at least the following:
1. The selected ESCO Equipment to be installed and ESCO Services to be
provided.
2. The Cost Effective EEMs to be installed or caused to be installed by ESCO
under the cost-effectiveness criteria.
3. The Benefits including the Energy Cost Savings, the decreased carbon
production, operations and maintenance savings, and other non-energy cost
savings. These savings will be real savings that will be realized through
qualified and quantifiable analysis of the existing equipment and operating
conditions.
4. The services that ESCO will perform or cause to be performed on or in the
Facility, including but not limited to engineering, construction management,
self-performed work, the operations and maintenance procedures for use on
ESCO Equipment, training for Facility personnel, providing warranty service,
and equipment maintenance;
5. The Guaranteed Maximum Project Cost, itemized in detail (including but not
limited to direct labor, material and equipment, Construction Contingency,
performance bond, design, construction management, and overhead and
profit), which may be amended to represent actual costs;
6. Recommendations for replacement of Existing Equipment, along with
recommendations for improvements to Existing Equipment and Operating
Conditions;
7. The standards of comfort and service appropriate for the Facility;
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McKinstry 5005 3rd Ave. S., Seattle WA Confidential and Proprietary
8. The Baseline Energy Consumption for the Facility as calculated in the IGA;
9. The calculated and Guaranteed Energy Savings and estimated Energy Cost
Savings that are expected to result from the installation of ESCO Equipment
and from ESCO Service.
10. The method by which Energy Savings and Energy Cost Savings will be
calculated during the term of the Energy Services Authorization;
11. A description of how ESCO will finance its acquisition of ESCO Equipment and
when title to ESCO Equipment will pass to the Owner;
12. A description of how Energy Savings will be guaranteed by ESCO;
13. A description of how ESCO proposes to be compensated;
14. The term of the Energy Services Authorization;
15. The schedule for project completion;
16. The nature and extent of the Work and equipment that ESCO
anticipates it will receive from other firms under subcontract;
17. A project-specific Diverse Business Inclusion Plan (Inclusion Plan),
when applicable and where constraints or other factors prevent ESCO
from applying its pre-submitted Diverse Business Inclusion Plan to
the Work.
18.
energy savings, including specifying utility rates to be used,
methodology, postconstruction equipment adjustment and any
recommendation to continue or discontinue M&V reporting beyond
the first 12-months post-installation, consistent with the
International Performance Measurement and Verification Protocol
IPMVP), specifying how the cost of M&V was determined if they
exceed 10% of cost savings;