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Home My WebLink AboutPK15-025 - Original - McKinstry Essention, LLC - Riverbend HVAC Replacement - 01/28/2015 ttS d.uYJ::fi j#'n Records an a { KENT Document W A9HIN6TON CONTRACT COVER SHEET This is to be completed by the Contract Manager prior to submission to City Clerks Office. All portions are to be completed. If you have questions, please contact City Clerk's Office. i Vendor Name: McKinstry Essention, LLC Vendor Number: 36972 ]D Edwards Number Contract Number: This is assigned by City Clerk's Office Project Name: HVAC Replacement - 18 Hole Golf Course Description: ❑ Interlocal Agreement ❑ Change Order ❑ Amendment X❑ Contract ❑ Other: Contract Effective Date: 01/20/14 Termination Date: 07/31/15 Contract Renewal Notice (Days): Number of days required notice for termination or renewal or amendment I Contract Manager: Nancy Clary Department: Parks, Facilities I Contract Amount: $755,097.77 �1 Approval Authority: (CIRCLE ONE) Department Directo� Mayor Jj City Council Detail: (i.e. address, location, parcel number, tax id, etc.):" i As of: 08/27/14 I I I KEN• T Agenda Item: Consent Calendar - 7Y TO: City Council DATE: December 9, 2014 SUBJECT: Performance-Based Contract with McKinstry Essention, LLC, Energy Services for HVAC at Riverbend Golf Complex - Authorize I MOTION: Authorize the Mayor to sign the Energy Services Performance- j Based Contract with McKinstry Essention, LLC, in an amount not to exceed $752,796, subject to final terms and conditions acceptable to the Parks, Recreation and Community Services Director and City Attorney. SUMMARY: In 2007, the City identified a need to replace its aging heating, ventilation, and air conditioning (HVAC) systems with equipment that was more energy efficient and required less maintenance time. Under the provisions of Chapter 39.35A RCW, City staff sought a Request for Qualifications from Energy Services Companies (ESCO's) on the pre- approved list from the Washington State Department of General Administration to evaluate, design and install facility improvement measures. Staff interviewed all ESCO's that responded and selected McKinstry as the City's ESCO provider. Upon selection, McKinstry conducted a Directed Engineering Study at targeted City facilities, which included Riverbend Golf Course. In 2010, the City executed a performance-based contract with McKinstry to replace 83 heat pumps in the Centennial Center. The cost of this project was guaranteed at $1,310,980 plus tax, for a total of$1,435,208. With help from McKinstry, the City applied for and received an energy efficiency grant from the Department of Energy in the amount of $845,400. McKinstry installed the facility improvement measures as directed by the City in a timely and efficient manner with very little interruption to staff, as well as finishing the project $63,000 under budget. Staff is recommending that the City enter into a performance-based contract with McKinstry to install facility improvement measures that were identified in the Directed Engineering Study for the Riverbend Golf Course. The HVAC equipment at Riverbend is 25 years old and a mixture of different equipment types. This facility improvement measure would improve energy efficiency, reduce maintenance costs, and improve the level of comfort to the golf course patrons. This project would be funded by facilities capital in the amount of$752,796. Staff has submitted a grant request to the Department of Commerce in the amount of$125,000. If this grant is awarded, it would reduce the capital expenditure of facilities capital for this project to $627,000. Using an ESCO for performance-based contracting benefits the City by ensuring its cost and energy savings calculations using measurement and verification reports for one year after the installed improvements. EXHIBITS: McKinstry Energy Savings Performance Contract Packet RECOMMENDED BY: Parks and Human Services Committee YEA: Higgins - Fincher - Ralph NAY: BUDGET IMPACT: Expense impacts the Facilities Capital Budget. �e srenrg I STATE Of WASHINGTON DEPARTMENT OF COMMERCE 1011 Plum Street SE• PO Box 42525 • Olympia, Washington 98504-2525 • (360) 725.4000 www.commerce.wa.gov December 18, 2014 i Mr.Alex Ackley City of Kent 220 Fourth Avenue South Kent, WA 98032 Re: 2013-2015 Round Two Energy Efficiency Award Dear Mr. Ackley: Congratulations! I am very pleased to announce that your project was selected for a Washington State Department of Commerce (Commerce) 2013-2015 Round Two Energy Efficiency award. We would like to begin developing your contract. If you indicated on your application that your project includes work on a building 50 years or older and/or you are disturbing any ground,please make sure we have received a copy of your letter from the Department of Archaeology and Historic Preservation(http://www.dahp.wa.Irov). If your project does not fall under the Governor's Executive Order 05-05,you will need to send an email to Tom Stilz at tom.stilz@commerce.wa.aov stating how old your facility(s) are and/or that you are not disturbing any ground. Additionally, if your project has a Department of Enterprise Services (DES)project manager,you or the DES project manager will need to make sure Commerce has signed copies of your Interagency Agreement with DES and any project specific amendment(s) to the basic agreement, including the Notice to Proceed. Please email this information to Tom as well. If you have any questions about the program, please email or call Tom at(360) 725-4045. Commerce is excited about your project and we look forward to working with you. I Sincerely, Dian�z, Assistant Director Community Services and Housing Division I 0 C/O Energy Services Performance- used Contract McKinstry Essention, LLC Project No. Pursuant to RCW 39.35A et seq., this Energy Services Performance-Based Contract (`Contract") Is made and entered into as of this day, December 18, 2014 by and between McKinstry Essention, LLC, a Washington limited liability company ("McKinstry"or"ESCO") and the City of Kent ("Owner" or"Customer"). I RECITALS The Owner owns and operates facilities and wishes to acquire equipment and services to reduce energy costs and related expenses in the facilities. i ESCO has experience and technical management capabilities to identify and evaluate energy cost saving opportunities, and provide for engineering, packaging, procurement, installation, maintenance, and measurement of cost effective energy and water cost saving measures ("CSMs"), also known as Energy Conservation Measures ("ECMs"), and Facility Improvement Measures ("FIMs"). Following a competitive selection process, in accordance with the provisions of RCW 39.35A et seq., ESCO was selected to perform one or more investment grade audits, and pursuant to the Investment Grade Audit Proposal, dated June 24, 2014 has delivered, or shall deliver to the Owner an Energy Services Proposal ("ESP") for each phase of work, which includes an assessment of the energy consumption characteristics of the Owner's facilities, and the identification and evaluation of viable FIMs, as well as estimates of expected energy and operational savings and associated project costs for each recommended FIM, including all capital and infrastructure improvement projects to be included in that phase of work. Each ESP shall represent a separate phase of work. The Owner desires to contract with ESCO for the design, installation, maintenance, and measurement of the FIMs all as set forth herein pursuant to RCW 39.35A at seq. ESCO and the Owner acknowledge and agree that the purpose of this Contract is to achieve the FIMs contemplated by this Contract to the benefit the Owner, and all agree to cooperate to achieve the purpose of this the attached schedules, exhibits, and appendices consist of the planned measures to improve the energy efficiency of the Owner's facilities. Should the Owner desire to move forward with additional phases, the Owner and ESCO will execute contract amendments or modifications by adding additional schedules, exhibits or appendices, and the terms and conditions of this Contract will remain the same and also govern all additional phases. Each Phase of work may be separated into any number of Groups of Work for the purpose of efficiently scheduling the design and installation of the work. The aggregate sum of all Groups of Work within a Phase of work shall equal the total scope of work for that Phase. NOW, THEREFORE, the parties agree as follows: SECTION 1. ENERGY MANAGEMENT PLAN SECTION 1.1. PLAN DETAILS. ESCO has or shall prepare a final ESP for each phase of work. The ESP for the first phase of work should be labeled Appendix A-1, the Audit Report for the second phase of work should be labeled Appendix A-2, and so on until all phases of work are identified. Each ESP shall include all identified FIMs for that particular phase of work and shall be approved and accepted by the Owner and amended to this contract. i CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILIIY �+ ESCO(MCKINSTRY)fOWNER(PERFORMANCE CONTRACT Bnstry CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES nmr..evuer,� 1 ^ � � �� y� �� 7�� - Energy|�-�X \ ] l/ Services�/ �� ~�� U �~� � � l �U U | |�� U �� ^� "�~^ ^ ~~ " ��/ / ~~, ~, , " , ~~ ~�~° " ~~ ^ ^ ~~ " , ^ ^ `~" " � ~~ .~ �� ~�[~/�� Contract U �[,�-l�-_< ] SECTION 1.2. SCHEDULES, EXHIBITS AND APPENDICES. A series of Schedules, Exhibits and Appendices as set forth below and are incorporated herein and made a part of this Contract if applicable. SCHEDULES Schedule A: See ESP section 2 for General Description of Project Scope Schedule B: See ESP section 3 for Energy Savings Guarantee, Energy Savings and Measurement and Verification Term per the ESPCproposal Schedule C: See ESP section 4 for Compensation to ESCO, Budgeted Project Costs and ESCO Labor Rates Schodu|cD: See ESP section 5.5 for Baseline Energy Consumption Schcdu|oE: See ESP section 3 for Savings Measurement& Calculation Formula; Methodology toAdjust Dosd|no Schedule F: See ESP section 2 for Construction and Installation Schedule Schedule G: See ESP section J for Systems Start-Up and Commissioning Schedule M: See ESP section 3 for Standards ofComfort Schedule ]: See ESP section 3 for The Owner's Maintenance Responsibilities Schedule K: See ESP section 2 for E5CV'o Training Responsibilities Schedule L: Pre-Existing Service Agreements (N/A, none provided by Owner) Schedule M: Current and Known Capital Projects at the Premises (N/A, none provided byowner) EXHIBITS Exhibit I: Energy Services Performance Contracting I014 Labor Rates APPENDICES Appendix A: Energy Services Proposal ("[SP") dated November, 1Z/ 2O14 Appendix D: Directed Engineering Study Proposal dated June 24, 2Ol4. (DES shown for reference and is not part nfcontract) SECTION 13. ORDER 0F INTERPRETATION. lnthe event of any inconsistencies between the documents that make up the Contract as set out |n section 1.2/ the documents shall govern io the following order: this document, the Exhibits and Schedules, Appendix A for each phase of work, then Appendix B. SECTION 2^ ENERGY USAGE RECORDS AND DATA The Owner has furnished or shall furnish (or cause its energy suppliers to furnish if reasonably possible) to ESCO, upon request, all of its records and complete data concerning energy usage and energy-related maintenance for the premises described In Schedule A (General Description of Project Scope) inaddition toPra~Enimtimg Equipment Inventory, including the following data for the most current twenty-four (24) month period: utility records; building use schedules and occupancy information; descriptions of any changes in the building structure or its heating, cooling, lighting, or other systems or energy requirements; descriptions of all energy consuming or saving equipment used in the Premises; bills and records relating to rnaintonanceofcnergy'ro|atedequipnnent, andadescriptionofener8yrnanagcnocoLprocodurcsprcsent|y CONFIDENTIAL*PROPRIETARY COMMITMENT rosoyrxImxou/rr cuco(mou/ sv / n/psxronwxwCsuomrmACr insuxy CITY opcsmT PHASE s./-nIvsouswo CLUBHOUSE ovuCUPGRADES Of,01 A.&111w 2 Energy Services Performance - Based j Based Contract utilized. If requested, the Owner shall also provide any prior energy audits of the Premises and shall make current employees who are familiar with such records reasonably available for consultations and discussions with ESCO. By the seventh (7th) working day after receipt, the Owner shall provide ESCO with copies (hard or electronic) of all energy bills for the Premises that it has received for the preceding month. Upon receipt of the required information, ESCO shall calculate the savings in accordance with the agreed-upon calculation formulae In Schedule E (Savings Measurement & Calculation Formulae; Methodology to Adjust Baseline). Should any utility data be available electronically, a copy shall be gathered directly by ESCO and shall not be delivered to ESCO by the Owner. In the event energy bills are unavailable, such unavailable information will cause the projected energy savings set forth in section 3 of the ESP (the "Projected Energy Savings") to be used in the savings calculation. Prior to using the Projected Energy Savings for use in the savings calculation, ESCO shall notify the Owner in writing, and the Owner shall have thirty (30) days after receipt of such notice to conduct a search and to supply the information requested, should such information become available, in order to avoid ESCO from using their Energy Savings Projections. SECTION 3. COMMENCEMENT DATE AND TERMS; INTERIM PERIOD; NOTICE OF COMMENCEMENT OF ENERGY SAVINGS SECTION 3.1. COMMENCEMENT DATE. The "Commencement Date"shall be the first day in which all of the following have occurred: (1) all schedules are in final form and accepted by the Owner; (11) ESCO has delivered a notice to the Owner that it has installed and commenced operating all of the scope of work specified in Schedule A (General Description of Project Scope) (the "Equipment") and in accordance with the provisions of Section 9 (Construction Schedule and Equipment Installation; Approval) and Schedule G (Systems Start-Up and Commissioning); and (III) the Owner has inspected and accepted said installation and operation as evidenced by a Certificate of Acceptance. SECTION 3.2. TERM OF CONTRACT; INTERIM PERIOD. Subject to the following sentence and to the Owner's termination rights under Section 3.3, the term of this Contract shall be equal to the term of the guarantee as defined in Schedule B for each phase of work, plus the Interim period. Nonetheless, the Contract shall be effective and binding upon the parties immediately upon its execution, and the period from Contract execution, and inclusive of the construction period and until the Commencement Date shall be known as the "Interim Period."All energy savings achieved during the Interim Period will apply towards the first year of the Guarantee Period. SECTION 3.3. TERM OF MONITORING AND VERIFICATION SERVICES. Monitoring and Verification Services ("M&V") are those services as set forth in Schedule B and shall begin upon the Commencement Date. M&V shall continue for the period defined in Schedule B and thereafter can be renewed at the Owner's discretion for one, three, or five-year terms for a fee to be negotiated with the ESCO at that time. After the initial minimum period, the M&V will be cancelled unless renewed by the Owner by providing at least sixty (60) days' advance written notice to ESCO of the Owner's intention to renew the M&V. Such cancellation will terminate this Contract as a whole, except for any remaining warranty obligations. The Owner understands, however, that the guaranteed energy savings, as set forth in Schedule B shall remain in effect only so long as ESCO provides such M&V. If the M&V is cancelled at any time other than the end of a contract year (defined as the period of time lasting 365 days from commencement and renewing upon expiration provided Energy Savings Guarantee is in effect) for reasons other than ESCO's default, ESCO shall have no Guaranteed Energy Savings obligation for that partial year. I i CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ESCO(MCKINSTRY)JOWNERJPERFORMANCE CONTRACT instry CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES - inmm.mnrome 3 Energy Services Performance Based Contract SECTION 3.4. NOTICE OF COMMENCEMENT OF ENERGY SAVINGS. A Notice of Commencement of Energy Savings ("NCES") shall be issued for each Phase of Work when the ESCO has installed and commenced operating all of the scope of work within the Phase of Work, exclusive of punch list items, and the equipment has been started up and commissioned per Schedule G (Systems Start-Up and Commissioning). The Owner shall have ten working days (10) to review the NCES and report any discrepancies to the ESCO. If the Owner does not respond within the ten (10) working day period the NCES shall be considered accepted by the Owner. For purposes of this section, working days shall be Monday through Friday excluding holidays as set by the Owner's calendar. SECTION 4. COMPENSATION TO ESCO SECTION 4.1. MEASUREMENT AND VERIFICATION FEES. No later than thirty (30) days after the first NCES, the Owner shall pay to ESCO the M&V fee in the amounts and as scheduled in Schedule C. SECTION 4.2. PROJECT TOTAL. The Owner shall pay ESCO the Contract Sum for ESCO`s performance of this Contract in accordance with the provisions for open pricing, billing procedures, and progress payments set forth in Sections 4.3, 4.5, and 4.6, respectively. The "Contract Sum" is the total of Construction Casts, ESCO Fees and other costs (as defined In Sections 4.7 and Schedule C) provided that in no event shall the"Contract Sum"exceed the amount shown as the"Guaranteed Maximum Implementation Cost" in Schedule C, Budget Summary Table, other than additional costs approved by the Owner. ESCO acknowledges and agrees that it is the purpose and intent of this Contract and all parties that the FIMs identified in the ESP be designed, installed, measured, and verified, all as specifically provided for in this Contract, for the Guaranteed Maximum Implementation Cost (GMIC), and ESCO is responsible to achieve this end, for no additional cost, except as specifically provided for in this Contract. SECTION 4.3. OPEN BOOK PRICING. Open book pricing is required, such that ESCO will fully disclose all direct construction costs, including all Subcontract Costs and Equipment Costs. These costs, excluding ESCO fixed fees (fixed fees: Investment Grade Audit, Design, Construction Administration, Overhead, Fees, ESCO M&V Costs, Warranty Management and Construction Bond) will be reconciled to the Owner upon final completion in the event of any construction cost savings. ESCO will maintain cost accounting records on work performed under actual costs for material. ESCO will afford the Owner access to these records and all related project records and preserve all project records for a period of three (3) years after final payment under this Contract. i SECTION 4.4. BILLING INFORMATION PROCEDURE. Payments due to ESCO under this Section 4 shall be calculated in accordance with the provisions of the Pricing Breakdown shown in Schedule C, Budget Summary Table. Except for the cost of the DES and M&V costs, ESCO shall provide the Owner with an itemized monthly invoice of amount due along with any other evidence reasonably required by the Owner to demonstrate amount of required payment. ESCO fixed fees (other than ESCO M&V costs) shall be invoiced and substantiated on a percent complete basis. All invoices submitted by ESCO, as shall be due and payable within thirty (30) days of receipt of the invoice. The Owner shall have ten (10) working days from the date of receipt of said invoices and all supporting documentation to notify ESCO of any irregularity in the billing. The failure of the Owner to provide notice of disagreement within said ten (10) working-day period shall be deemed agreement with the information or calculations set forth in that particular invoice, except in cases where Owner does not have full Information and later learns of additional information that would cause it to disagree with a particular invoice. The Owner shall extend every effort to remit payment within thirty (30) calendar days after the later of receipt of said invoice and all supporting documentation reasonably requested. Interest at a rate equal to the lesser of 4% per annum or the maximum rate permitted by law will accrue on all unpaid --- — — ----------- CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY �y gyp ESCO(MCKINSTRY)fOWNER(PERFORMANCE CONTRACT G/s!I y CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES v.ae rowewewce 4 Energy Services Performance- Based Contract balances commencing ten (10) calendar days after invoice is due. For purposes of this section, working days shall be Monday through Friday excluding holidays as set by the Owner's calendar. ESCO will provide a retention bond at ESCO's expense. SECTION 4.6. COST OF WORK (SEE SCHEDULE C, PROJECT BUDGET SUMMARY TABLE). Costs of the Work are: A. Subcontract Costs. These shall include payments made by ESCO to subcontractors in accordance with the requirements of the subcontracts, including sales tax and change orders. Subcontract fees can include, but are not limited to, fees for professional services as required to meet the Owner's requirements, or to perform particular site or building specific studies as requested by the Owner. Subcontract fees can include fees paid to ESCO divisions performing work in a manner similar to that of subcontractors. B. Equipment/Supplies Costs. These shall include all items purchased directly by ESCO (not by a subcontractor) that become part of the installation, including excess equipment, supplies and inventory that will become part of the installation, including any sales tax or use tax. C. Miscellaneous Costs/General Conditions. These shall include all direct costs incurred by ESCO (not paid for through a subcontractor) that do not become part of the installation and that are specifically attributable to this project. Direct cost includes, but is not limited to, permits, fees, travel costs, shipping, copying, office and third party rentals, project office improvement expenses, office expenses, labor for project management and site supervision, M&V set-up, mobilization, de-mobilization, temporary power, data, internet, and all wireless communication costs. All Direct costs shall be subject to a reasonable and necessary standard. SECTION 4.7. EXCLUDED FROM COSTS OF THE WORK. The Costs of the Work shall not include: A. Wages or salaries of ESCO's personnel NOT involved in the development, design, or implementation of the project. This exclusion does not include ESCO personnel that are involved in self-performed work, project development, project implementation, project management, performance assurance, and otherwise billable to the project. B. Costs, other than costs included in written change orders approved by the Owner that would cause the Guaranteed Maximum Implementation Cost to be exceeded. C. Legal, mediation, and arbitration costs incurred by ESCO and relating to the project, except for legal fees recoverable under Section 21.1. D. Errors or omissions associated with design In coordination, scheduling and interfacing of various work in the separate work categories or divisions shall not increase the Guaranteed Maximum Implementation Cost, but are reimbursable within the Guaranteed Maximum Implementation Cost. SECTION 4.8. REFUNDS AND REBATES. Trade discounts, rebates, refunds and amounts received from sales of surplus materials or equipment shall accrue to the Owner and ESCO shall use its best efforts to assist the Owner in providing information to allow the Owner to secure all available refunds and rebates. SECTION 4.9. PRICING DETAILS. A. Upon the execution of a Certificate of Acceptance, if the Total Project Cost is less than the Guaranteed Maximum Implementation Cost, then the difference between the actual and estimated costs may, at the Owner's discretion, be used to implement more projects per the terms of this Contract, provided that the CONFIDENTIAL&PROPRIETARY COMMITMENT TO SU5rAINABILITY ESCO(MCKINSTRY)fOWNERJPERFORMANCE CONTRACT nsfry CITY OF VENT PHASE 3.1-RIVERSEND CLUBHOUSE HVAC UPGRADES Qillw,M,.� S Energy Services Performance Based Contract difference is sufficient to fund additional projects. ESCO shall apply the fee structure to those additional projects per Schedule C, Project Budget Summary Table. For purposes of those additional projects, a new Certificate of Acceptance shall be executed which date shall be the Commencement Date for purposes of this Contract as to those projects only. B. in the event the Owner issues change orders that increase costs, the amount of those cost increases shall be identified by ESCO and accounted for in a separate budget beyond the original GMIC [see Section 4.2]. It will be the Owner's responsibility to pay these costs as the Project is being constructed. ESCO shall use the mark-up structure indicated in Schedule C, Project Budget Summary Table, as the original basis for the pricing of change orders. However, if either party believes that the scale and/or scope of the change order is not properly reflected in the pricing in Schedule C, then the parties will negotiate a mutually agreed upon fee for the specific change order and record it in writing, which writing may be satisfied by authorized persons from both parties signing the change order. SECTION S. PAYMENTS BY ESCO SECTION 5.1. ENERGY SAVINGS GUARANTEE. ESCO has formulated and, subject to the adjustments provided for in Section 15 (Material Changes), has guaranteed the annual level of energy savings to be achieved as a result of the installation and operation Of the Equipment and provision of services provided for in this Contract, in accordance with the Savings Calculation Formula as set forth in Schedule E (Savings Measurement &Calculation Formulae; Methodology to Adjust Baseline). The Energy Savings Guarantee is set forth in annual increments for the term of the Contract as specified in Schedule B. The guarantee period (`Guarantee Period") for the Energy Savings Guarantee begins on the Commencement Date and continues for the term of this Contract, unless earlier terminated pursuant to this Contract. SECTION 5.2. REVIEW AND REIMBURSEMENT/RECONCILIATION. Annually, during the Guarantee Period, and no more than sixty (60) days after the end of the Guarantee year, ESCO shall perform a review and reconciliation to determine the actual achieved energy savings (subject to any adjustments made for Material Changes) when compared to the Energy Savings Guarantee for that Guarantee year and shall submit to the Owner a report with a precise calculation of savings. If ESCO has failed to achieve the annual Cost-Avoided Energy Savings Guarantee specified in Schedule B, ESCO shall pay to Owner the difference between the annual Cost-Avoided Energy Savings Guarantee and the amount of actual cost-avoided energy savings achieved at the Premises. Any payment due will be made by ESCO within thirty (30) days after signed acceptance of the annual report by the Owner. Interest at a rate equal to 4% per annum will accrue on all unpaid balances commencing ten (10) calendar days after the payment was due. In the event of any disagreement in the amount payable by ESCO, the Owner shall notify ESCO in writing of the alleged discrepancy within 30 days. Any amounts not in dispute shall be paid in accordance with this section. When the actual total cost-avoided savings in any one-year, during the Guarantee Period, exceeds the Energy Savings Guarantee as set forth in Schedule C, such excess savings shall not be credited toward the actual achieved savings for the following year. However, excess savings from any group of work can be credited to any other group of work within any one year. Also, excess energy savings in any one Guarantee year will be used to reimburse the ESCO for any payments made by ESCO to cover a shortfall in previous years on any phase of work. Energy savings generated during the Interim Period will accrue towards the first year Guarantee. ESCO and the Owner agree to work in good faith to resolve any disagreement over the calculation of the energy savings. Should the parties be unable to resolve their disagreement as to the calculation of energy savings, then either party will provide written notice to the other and the parties will then agree that an independent auditor will be engaged to provide a binding decision on whether the calculation of savings or CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ��qq ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT inSt¢yy y CITY OF KENT PHASE 3.1 —RIVERBEND CLUBHOUSE HVAC UPGRADES rromr..,emrm� 6 Energy Services Performance- Based Contract deficiencies, as prepared by ESCO, is fairly stated in accordance with this Contract. If the parties cannot agree upon an auditing firm, then each shall designate a firm, and the two designated firms Shall identify a mutually agreeable third firm and such third firm alone shall perform the audit. The independent auditing firm shall include in its report any exceptions determined by its review. Each party agrees to reasonably cooperate with the auditing firm, including, without limitation, delivering to such firm any records, documents or information reasonably requested in electronic format, if available, or otherwise. Any payments between the parties that are necessary to resolve any irregularities identified in the review will be made within sixty (60) days after submission of the review to the parties. If the audit is called by the ESCO or the Owner, the following structure will be applied to paying for the audit: If the independent auditor determines that ESCO's determination of the difference between the annual Energy Savings Guarantee and the amount of the actual energy saving achieved at the Premises was in error in the Owner's favor, ESCO shall pay the entire cost of the audit; however, if ESCO's determination of the Energy Savings Guarantee is not in error or is in error in the ESCO's favor, the Owner shall pay for the entire cost of the audit. In any case, the calculation of energy savings shall be changed to reflect the findings of the audit, and the calculations of savings relating to the Energy Savings Guarantee will be modified to reflect such. SECTION 6. PERMITS AND APPROVALS; COORDINATION SECTION 6.1. PERMITS AND APPROVALS. ESCO shall be responsible for timely obtaining all necessary installation/building permits. The Owner shall use its reasonable efforts to assist ESCO In obtaining all necessary installation/building permits (operating permits are the responsibility of the Owner) and approvals for installation of the Equipment. The Equipment and the installation and operation of the Equipment by ESCO shall at all times conform to all federal, state and local code requirements. ESCO shall furnish copies of each permit or license, which is required of it to perform the work, to the Owner before ESCO commences the portion of the work requiring such permit or license. ESCO shall pay for plumbing and electrical permits required by the authority having jurisdiction. ESCO shall be reimbursed within the GMIC for all licenses and permits, fees and charges for connections to outside services and for the use of municipal or private property for storage of materials, parking, utility services, temporary obstructions, enclosures, opening and patching of streets, etc., arising from the construction and completion of the installation and maintenance of the Equipment contemplated by this Contract, and as agreed to by ESCO and the Owner. SECTION 6.2. COORDINATION DURING INSTALLATION. Owner and ESCO shall cooperate to coordinate the activities of ESCO's equipment installers with the employees and agents of the Owner. ESCO shall make reasonable attempts to minimize disruptions to Owner operations. Efforts to accommodate this shall include night and weekend work. ESCO shall not commit or permit any act that will materially interfere with the performance of business activities conducted by the Owner or its employees, agents or contractors without prior written approval. The Owner shall not permit any act that will interfere with the ESCO'S ability to perform the work in a workmanlike manner. The Owner shall assign/designate a representative to be the point-of-contact for ESCO. The Owner hereby designates t 1� x. 4-?f`,f, t , d L. __ as the representative (the "Representative"). The Representative shall have the necessary author ization to authorize ESCO to implement the work associated with this Contract. Responsibilities of the Representative shall include, but are not limited to, reviewing and approving the project schedule, design drawings and specifications, receipt and review and approval/disapproval of ESCO Invoices, contract amendments and Certificates of Acceptance. I CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILM H ¢p� ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT ®nstry CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES n.a m.raneuy 7 Energy Services Performance Based Contract SECTION 7. LOCATION AND ACCESS Subject to Section 6.2 (Coordination During Installation) and Section 18 (Property/Casualty/Insurance; Indemnification), the Owner shall provide sufficient space on the Premises for the installation and operation of the Equipment. ESCO is responsible for providing secure storage for the Equipment, tools and supplies in the space provided. The Owner shall provide reasonable access to the Premises for ESCO to perform any function related to this Contract during regular business hours, or such other reasonable hours as may be requested by ESCO and acceptable. The Owner shall not unreasonably restrict ESCO's access to Premises to make emergency repairs as ESCO may determine are needed. SECTION S. PERFORMANCE BY ESCO ESCO shall perform all tasks/phases under the Contract, including construction, and shall install the Equipment in such a manner so as not to harm the structural integrity of the buildings or their operating systems and so as to conform to the standards set forth in Schedule H (Standards of Comfort) and the construction schedule specified in Schedule F (Construction and Installation Schedule). ESCO shall repair and restore to its original condition, as it existed immediately prior to damage, any area of damage caused by ESCO's performance under this Contract. The Owner reserves the right, but is not obligated, to review the work performed by ESCO, relative to accepted industry codes and standards, and to work with ESCO to take certain corrective action if, in the collective decision between the Owner and ESCO, the structural integrity of the Premises or Its operating system is or will be harmed and is substantiated and quantifiable. ESCO shall remain responsible for the professional and technical accuracy of all services performed, whether by ESCO, or its subcontractors or others on its behalf, throughout the term of this Contract, and all such services shall meet, at a minimum, all applicable industry standards and codes. The Owner's or the Representative's approval of the project schedule, design drawings and specifications, ESCO invoices, contract amendments, Certificates of Acceptance, or other similar documents shall not constitute a waiver of any rights or claims which the Owner may have under this Contract including, without limitation, any claim for failure of such documents, or any part thereof, to comply with this Contract, applicable governmental requirements or for failure of such documents, or any part thereof, to conform with any other part of the documents, any of which failure shall be corrected by ESCO. SECTION 9. CONSTRUCTION SCHEDULE AND EQUIPMENT INSTALLATION; APPROVAL SECTION 9.1. CONSTRUCTION SCHEDULE. Construction and equipment installation shall proceed in accordance with the construction schedule approved by the Owner and attached hereto as Schedule F (Construction and Installation Schedule). Note: Schedule shown in Schedule F is a preliminary version, which will be updated as appropriate once notice to proceed is received for this project. SECTION 9.2, SYSTEMS STARTUP AND EQUIPMENT COMMISSIONING. ESCO shall conduct a thorough and systematic performance test of the installed Equipment in accordance with the procedures to be provided during the construction period as noted in Schedule G (Systems Start-Up and Commissioning) and prior to final acceptance by the Owner. ESCO shall be responsible for correcting and/or adjusting all deficiencies in systems and Equipment operations in a timely manner during system commissioning procedures. i SECTION 9.3. INSPECTION AND FINAL APPROVAL. The Owner has the right to inspect, test and approve j the work conducted in the Premises during construction and operation. The Owner shall have the right to review and access to the account books, records, and other compilations of data that pertain to the performance of the provisions and requirements of this Contract. Records shall be kept on a generally ----- ---- -- ----------- CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILM ESCO(MCKINSTRY)/OWNERJPERFORMANCE CONTRACT CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES u:arr,�ondaa 8 Energy Services Performance Based Contract recognized accounting basis, and calculations will be kept on file in legible form and retained for three (3) years after the expiration of the term of this Contract and any renewals relevant thereto. SECTION 10. STANDARDS OF COMFORT The standards set forth in Schedule H (Standards of Comfort) are guidelines used to evaluate the FIMs in this program. It is understood that existing and installed equipment may not allow for exact times and temperatures to be met, but every effort will be made to meet such standards as the Guaranteed Maximum Implementation Cost, equipment and project design allow. The Owner also retains the right to make further control and schedule adjustments beyond the standards listed in Schedule H, only in an effort to provide further energy savings. In the case where this produces a Material Change per section 15, the Owner will inform the ESCO in writing of the specific changes and/or adjustments, wherein the ESCO will adjust the baseline and Energy Savings Guarantee, as necessary. All costs associated with the changes and/or adjustments are the sole responsibility of the Owner. SECTION 11. EQUIPMENT WARRANTIES AND COMPATIBILITY ESCO covenants and agrees that the Equipment, installed pursuant to this Contract is or will be new, in good and proper working condition and protected by appropriate written warranties covering all parts and equipment performance. Demonstrators, previously rented, refurbished, or reconditioned items are not considered "new" except as specifically provided in this section. "New"means items that have not been used previously and that are being actively marketed by the manufacturer. Equipment may contain new or minimal amounts of recycled or recovered parts that have been reprocessed to meet the manufacturer's new product standards. Equipment must have the Owner as its first customer and must not have been previously sold, installed, demonstrated, or used in any manner (such as rentals, demonstrators or trial units). Equipment offered must be provided with a full, unadulterated, and undiminished new Item warranty against defects in workmanship and materials. The warranty is to include replacement, repair, and any labor for the warranty period. ESCO further agrees: to deliver to the Owner for inspection and approval all such written warranties, which are included in the ESP document; to transfer warranties to the Owner; to assist the Owner to pursue the Owner's rights and remedies against the manufacturer of the Equipment under the warranties in the event of equipment malfunction or improper or defective function, and defects in parts, workmanship and performance; and to notify the Owner whenever defects in equipment parts or performance occur or when warranty rights and remedies are recommended by ESCO. All warranties shall specify that only new, and not reconditioned parts, may be used and installed when repair is necessitated by malfunction. All warranties required hereunder shall be in force for a minimum of one (1) year from the Notice of Substantial Completion for the Group of Work in which the equipment was installed. SECTION 12. TRAINING BY ESCO ESCO shall conduct the training program described in Schedule K (ESCO's Training Responsibilities). ESCO shall provide additional ongoing training when requested by Owner with respect to updated or altered Equipment, including upgraded software, and including newly hired personnel. The cost of additional training shall be borne by the Owner. I SECTION 13. EQUIPMENT SERVICE SECTION 13.1. ACTIONS BY ESCO. McKinstry will provide no equipment maintenance or repairs after the warranty period. Following the completion of the installation and Owner acceptance of the equipment, the i CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY x ¢ ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT instry CITY OF KENT PHASE 3.1—RIVERSEND CLUBHOUSE HVAC UPGRADES remwnwnaw 9 Energy Services Performance- Based Contract Owner shall provide all necessary service, repairs, and adjustments to the equipment so that the equipment will perform in the manner and to the extent set forth in the ESP. McKinsrty shall have no obligation to service or maintain the equipment after the warranty period. SECTION 13.2. MALFUNCTIONS AND EMERGENCIES. The Owner shall notify ESCO or its designee(s) in j writing within twenty-four (24) hours after actual knowledge of the occurrence of: (i) any malfunction in the operation of the Equipment or any preexisting energy related equipment that might materially impact upon the Guaranteed Energy Savings, (ii) any prolonged interruption or material alteration to the energy supply to the Premises, or (iii) any material alteration or modification in any energy-related equipment or its operation. Where the ESCO has been contacted and is not available and the Owner exercises due diligence in attempting to assess the existence of a malfunction, interruption, or alteration it shall be deemed not at fault in failing to correctly identify such conditions as having a material impact upon the Guaranteed Energy Savings. The Owner shall notify ESCO in writing within twenty-four (24) hours of actual knowledge of any emergency condition affecting the Equipment. ESCO, or its designee(s), shall respond within twenty-four (24) hours and shall promptly proceed with corrective measures. Any confirmed telephonic notice of such conditions shall be followed within three (3) business days by written or electronic notice to ESCO. If the Owner unreasonably delays in notifying ESCO of a malfunction or emergency, and the malfunction or emergency is not otherwise corrected or remedied, such conditions will be treated as a Material Change and the applicable provisions of Section 15 (Material Changes) shall be applied. ESCO will provide the Owner a written record of all service work performed. This record will indicate the reason for the service, description of the problem and the corrective action performed. SECTION 13.3. ACTIONS BY OWNER. Except as set forth in Schedule J (the Owner's Maintenance Responsibilities), the Owner shall not move, remove, modify, alter, or change in any way the Equipment or any part thereof in a manner that will harm the energy efficiency of the Equipment, or the Equipment's sequence of operation, or harm its ability to comply with the Standards of Comfort without the prior written approval of ESCO, which shall not be unreasonably withheld, conditioned or delayed except as set forth in Section 10 (Standards of Comfort). Notwithstanding the foregoing, the Owner may take reasonable steps to protect the Equipment if, due to an emergency, it is not possible or reasonable to notify ESCO before taking any such actions. In the event of such an emergency, the Owner shall take reasonable steps to protect the Equipment from damage or injury and shall follow written instructions for emergency action provided in advance by ESCO. Owner agrees to maintain the Premises in good repair and to protect and preserve all portions thereof, which may in any way affect the operation or maintenance of the Equipment. In the event Owner fails or elects not to maintain, preserve or protect the Premises, the affect shall be that Projected Energy Savings may be used for that portion of the Premises adversely affected. SECTION 14. UPGRADING OR ALTERING THE EQUIPMENT ESCO shall at all times have the right, subject to the Owner's prior written approval, which approval shall not be unreasonably withheld, to change the Equipment, revise any procedures for the operation of the Equipment or implement other energy saving actions in the Premises, provided that: A. ESCO complies with the standards of comfort and services set forth in Schedule H (Standards of j Comfort) herein; B. such modifications or additions to, or replacement of the Equipment, and any operational changes, or new Equipment, FIMs or procedures are necessary to enable ESCO to achieve the energy savings at the CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ESCO(MCKINSTRY)JOWNERf PERFORMANCE CONTRACT instry CITY OF KENT PHASE 3.1-RIVERBEND CLUBHOUSE HVAC UPGRADES Energy Services Performance- used Contract Premises, which shall not increase the GMIC, and; C. All modifications, additions or replacements of the Equipment or revisions to operating or other procedures shall be described in a supplemental Schedule(s) to be provided to the Owner for approval, which shall not be unreasonably withheld, provided that any replacement of the Equipment shall comply with Section 11 (provided that the warranty shall extend for one [1] year from the date of installation) and have equal or better potential to reduce energy consumption at the Premises than the Equipment being replaced. The Owner may elect, at a negotiated rate, to have the ESCO update any and all software to be used in connection with the Equipment in accordance with the provisions of Section 19.1 (Ownership of Certain Proprietary Rights). All replacements of and alterations or additions to the Equipment shall become part of the Equipment described in Schedule A (General Description of Project Scope) and shall be covered by the provisions and terms of Section 9 (Construction Schedule and Equipment Installation; Approval). SECTION 15. MATERIAL CHANGES SECTION 15.1. MATERIAL CHANGE DEFINED. A Material Change shall include any change in or to the Premises, whether structural, operational or otherwise that reasonably could be expected to increase or decrease annual energy consumption to a degree that it would affect the Energy Savings Guarantee, in accordance with the provisions and procedures set forth in Schedule D (Baseline Energy Consumption), Schedule E (Savings Measurement & Calculation Formulae; Methodology to Adjust Baseline) and Schedule B (Energy Savings Guarantee and Projected 25 Year Cost Avoided Energy Savings). During the Guarantee Period, when the effect on energy savings cannot be accurately determined due to changes that may be Material Changes, Projected Energy Savings for that portion of the Premises undergoing change will be used to determine the actual savings and until the effect of the change can be determined by ESCO. SECTION 15.2. REPORTED MATERIAL CHANGES; NOTICE BY THE OWNER. The Owner shall use reasonable efforts to deliver to ESCO a written notice describing all actual or proposed anticipated Material Changes in the Premises or In the operations of the Premises at least thirty (30) days before any actual or proposed anticipated Material Change is implemented or as soon as is practicable after an emergency or other planned or unplanned event. Written notice to ESCO of changes that result because of an emergency or other situation that precludes advance notification and that are likely to be Material Changes shall be deemed sufficient if given within forty-eight (48) hours after actual knowledge that the event constituting the likely Material Change occurred or was discovered. If the Owner elects not to use the Projected Energy Savings applying to the portion of the Premises adversely affected by the Material Change, ESCO has the right to charge for work required to assess the effect on energy savings for any Material Changes, including but not limited to building additions, new buildings (if not separately metered or otherwise distinguishable from the Energy Savings Guarantee), and new or changed HVAC equipment that requires more than sixteen (16) total hours per year to be spent in calculating their effect on the energy savings. Such hours will be billed at ESCO's then current engineering rates. Before initiating such work, ESCO will notify the Owner in writing of the intent and relevant scope of the work. The Owner, within forty-five (45) days thereafter, shall notify ESCO in writing with permission to proceed at current rates or, alternatively and at no charge, stipulating that the Projected Energy Savings for the portion i of the Premises in question shall be used as the actual achieved savings for the purpose of meeting the Energy Savings Guarantee. If ESCO does not receive written notice within the required forty-five (45) days, the Projected Energy Savings for the portion of the Premises in question from the date the Material Change begins will be used in the calculation of enPrnly savings until such time that ESCO approves the work, as long CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY yypp�+$$J1 ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT HYPy CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES It romenm� 11 Energy Services Performance- Based Contract as the scope of work has not changed. Such work is in an addition to the work performed under the Guaranteed Maximum Implementation Cost. If required notice of Material Changes is not given or if the Owner fails to supply ESCO with copies of its applicable monthly utility bills and/or data within the timeframe established, energy savings calculated for the period will be equal to the Projected Energy Savings for the period at the portion of the Premises affected by such oversight. If information or utility bills for the period in question are supplied at a later date other than is permitted, the energy savings calculated for the period will be modified only if such calculated energy savings for the period exceeds the Projected Energy Savings for that period of time. I SECTION 16, REPRESENTATIONS AND WARRANTIES Each party warrants and represents to the other that: A. it has all requisite power, authority, licenses, permits, and franchises, corporate or otherwise, to execute and deliver this Contract and perform its obligations hereunder; B. its execution, delivery, and performance of this Contract have been duly authorized by, or are in accordance with, Its organic instruments, and this Contract has been duly executed and delivered for it by the signatories so authorized, and it constitutes its legal, valid, and binding obligation; C. its execution, delivery, and performance of this Contract will not breach or violate, or constitute a default under any contract, lease or instrument to which it is a party or by which it or its properties may be bound or affected; or D. it has not received any notice, nor to the best of its knowledge is there pending or threatened any notice, of any violation of any applicable laws, ordinances, regulations, rules, decrees, awards, permits or orders which would materially and adversely affect its ability to perform hereunder. SECTION 17. ADDITIONAL REPRESENTATIONS OF THE PARTIES SECTION 17.1, BY OWNER. The Owner, as applicable, hereby warrants and represent as follows: A. Owner shall adhere to, follow and implement the energy conservation procedures and methods of operation to be set forth on Schedule I (the Owner's Maintenance Responsibilities), to be attached hereto and made a part hereof. B. During the Guarantee Period, ESCO shall have the right, with prior notice and without undue interference with the Owner's use and operation of the Premises, to inspect Premises to determine if Owner is complying, and shall have complied with the obligations in subsection (i) above. For the purpose of determining said compliance, the checklist to be set forth at Schedule I (the Owner's Maintenance Responsibilities) as completed and recorded by ESCO during its inspections, shall be used to measure and record said compliance. Owner shall make the Premises available to ESCO for and during each inspection, and shall have the right to witness each inspection. SECTION 17.2. BY OWNER. Owner further provides: I A. That to the best of its knowledge it has not entered into any undisclosed leases or contracts with other persons or entities regarding the leasing of energy efficiency equipment or the provision of energy management services for the Premises or with regard to servicing any of the energy related equipment located in the Premises that is of an equivalent nature to the equipment and services contemplated by Appendix A. Comparable Pre-existing Service Agreements are listed in Schedule L (Pre-existing Service Agreements). During the term of the Energy Savings Guarantee and provided that ESCO is not in default CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINA6ILITY ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT instry CITY OF KENT PHASE 3.1-RIVERBEND CLUBHOUSE HVAC UPGRADES G.OW'.u1m, 12 Energy\� Services Performance - ased Contract --_ o Tra t _of this Contract, the Owner shall provide ESCO with copies of any successor or additional leases of energy efficiency equipment and contracts for management or servicing of preexisting equipment at Premises that may be executed from time to time hereafter within sixty (60) days after execution thereof. B. That to best of its knowledge, it has set out current and known capital projects for the Premises, as of the date of this Agreement, in Schedule M (Current and Known Capital Projects at the Premises). SECTION 17.3. RYE5C0. ESCO hereby warrants, represents and promises that: A. before commencing performance of this Contract: (1) it shall have become licensed and otherwise permitted to do business in the state where the work is performed. (2) it shall have provided proof and documentation of required insurance pursuant to Section 18 (Insurance Requirements); all applicable certificates of insurance shall be provided on an annual basis; and (3) it shall submit a properly executed Contractor's Affidavit Concerning Taxes. B. it shall use qualified subcontractors and delegees, licensed and bonded in this state to perform the work so subcontracted vr delegated pursuant to the terms hereof; C. It is a business in good standing and is financially solvent, able to pay its debts as they mature and possessed of sufficient working capital to complete and perform its obligations under this Contract; and D. |t acknowledges that the Owner has relied on its experience and technical management capabilities to identify, evaluate and recommend the FIMs that are the subject of and to be installed pursuant to this Contract, and it Is qualified and possessed of the technical expertise to perform the audit and install the FlMsto the best professional standards ay accepted within the industry. SECTION 18^ PROPERTY/CASUALTY/INSU RANCE; INDEMNIFICATION SECTION 18.1. GENERAL. ESCO shall maintain through the term of this Contract the insurance coverage, outlined below, and all such other insurance as required by applicable law. Within ten (10) days of execution of this Contract, E5C0 shall provide evidence nf coverage tu the Owner and shall update such evidence onan annual basis via a Certificate of Insurance or endorsement, as required by the Owner. SECTION 18.2. WORKERS' COMPENSATION / EMPLOYERS LIABILITY. Workers' Compensation/ Employers Liability for states in which ESCO is not a qualified self-insured. Limits as follows: A. Workers' Compensation - Statutory B. Employers Liability ^ Bodily Injury by accident $1,000,00O each accident ~ Bodily Injury by disease $1,O00/000 each employee " Bodily Injury by disease $1,O00/D0O policy limit cnmnmsmrzxLupovposrxnv COMMITMENT rosonnnw^oIur/ eScn(ncuzmsTav)/OWNEn/rEupvpnAwceCnw,nAC` instxy CITY oFxsmr PHASE 3./-nzvsxuswn CLUBHOUSE nvAnUPGRADES 13 Energy Services Performance- used Contract - - -- - --- - SECTION 18.3. COMMERCIAL GENERAL LIABILITY. Commercial General Liability insurance with limits of: • $1,000,000 per occurrence for Bodily Injury and Property Damage $2,000,000 General Aggregate - other than Products/Completed Operations $1,000,000 Products/Completed Operations Aggregate • $1,000,000 Personal &Advertising Injury Coverage is to be written on an Occurrence form. Coverage is to be issued as on ISO form CG 2010 (10/01), without endorsements that limit the policy terms with respect to: (i) the definition of an Insured Contract, (ii) provisions for severability of interest, (iii) explosion, collapse, underground hazard. SECTION 18.4. AUTO LIABILITY. Auto Liability insurance for owned, hired and non-owned vehicles with limits of$1,000,000 per accident. Coverage is to be written on an Occurrence form. SECTION 18.5. PROFESSIONAL LIABILITY. Professional Liability insurance with limits of: A. $1,000,000 per occurrence B. $2,000,000 aggregate Coverage is to be written on a Claims-made form. SECTION 18.6. EXCESS LIABILITY. Excess Liability insurance. Limits as follows: A. $1,000,000 each occurrence B. $1,000,000 aggregate Coverage is to be written on an Occurrence form. Coverage terms and limits to apply in excess of the per occurrence and/or aggregate limits provided for Commercial General Liability, Auto Liability and Professional Liability. Coverage terms and limits to also apply in excess of those required for Employers Liability. SECTION 18.7. ENDORSEMENTS. Policy Endorsements. A. The insurance specified shall contain waivers of subrogation rights against the Owner and its agents, officers, directors and employees for recovery of damages to the extent such damages are covered by the required policies. B. The insurance provided for above shall: (1) for Commercial General Liability and Auto Liability, include the Owner as an additional insured with respect to work performed and services provided under this Contract and any`other insurance" provisions contained in any policy including the Owner as an additional insured shall not apply, (2) provide that the insurance is primary coverage with respect to all insured and shall not be considered contributory insurance with any insurance policies of the customer, and (3) require thirty (30) days'written notice to the Owner, by first class mail, prior to any cancellation of, or refusal to renew the policy. ESCO shall provide thirty (30) days written notice to the Owner of a material change to the policy. I CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ins y ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT in y CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES nemn"enam¢ 14 i Energy Services Performance- i Based Contract SECTION 18.8. GOOD STANDING. Any Insurance, or additional insurance required under this Section 18, shall be covered by an insurance policy with an insurer licensed and in good standing to do business in the state where the work is performed. i SECTION 18.9. WAIVER. ESCO waives all rights against the Owner and its agents, agencies, officers, directors and employees for recovery of damages to the extent these damages are covered by the required policies. Policies may contain deductibles but such deductibles shall not be reduced from any damages due to Owner. SECTION 18.10. No Representation. By requiring insurance herein, the ESCO does not represent that coverage and limits will necessarily be adequate to cover all potential damages. SECTION 18.11. ESCO RESPONSIBILITY. To the extent where such damage or injury occurs as a result of ESCO's negligent acts or omissions under this Contract, ESCO shall be responsible for (i) any damage to the Equipment and (ii) any bodily injury, personal injury and tangible property damage, but only if such damage is not covered by insurance required to be maintained by ESCO. I SECTION 18.12. INDEMNIFICATION. ESCO agrees to indemnify and hold the Owner and its officers, agents, and employees ("Indemnitees") harmless from any and all claims, demands, losses, liabilities, damages, and court awards (including costs, expenses, and attorney fees) to third parties for personal injury or death or physical damage to tangible property, arising from, resulting from, or connected with the services and work performed and equipment installed under this Contract by ESCO, its agents, employees, invitees, guests and subcontractors and subconsultants of any tier, subject to the limitations provided in this Contract, but only to the extent of the fault of ESCO. ESCO's duty to indemnify Indemnities shall not apply to liability for damages arising out of bodily injury to persons or damage to property caused by or resulting from the sole negligence of Owner, its agents or employees or invitees, or guests, or subcontractors or sub consultants of any tier. ESCO specifically and expressly waives any immunity that may be granted it under any worker's compensation act. Further, this indemnification obligation shall not be limited in any way by any limitation on the amount or type of damages, compensation, or benefits payable to or for any third party under worker's compensation acts, disability benefits acts, or other employee benefits acts; PROVIDED ESCO's waiver of immunity by the provisions of this paragraph extends only to claims against ESCO by Indemnitees, it does not Include, or extend to, any claims by ESCO's employees directly against ESCO. This Section 18.12 shall survive termination of this Contract. SECTION 19. OWNERSHIP SECTION 19.1. OWNERSHIP OF DESIGN DOCUMENTS AND CERTAIN PROPRIETARY PROPERTY RIGHTS. All drawings, reports and materials prepared by ESCO specifically in performance of this Contract (Contract Documents) shall become the property of the Owner. Owner shall be the sole and exclusive owner of the Contract Documents and all revisions, editions and versions thereof made by other than ESCO. Re-use or modification of the Contract Documents for purposes other than originally intended and without ESCO's written permission shall be at the Owner's sole risk. Owner agrees to indemnify and hold ESCO harmless from all claims damages and expenses, including attorneys'fees, arising of such re-use or modification by Owner. ESCO shall retain ownership of all underlying designs, calculations, formulas, patterns, secret inventions or processes, or other intellectual or proprietary rights (collectively"instruments of ESCO's professional — --- -------- CONFIDENTIAL&PROPRIETARY j COMMITMENT TO SUSTAWABILITY ESCO(MCKINSTRY)fOWNERJPERFORMANCE CONTRACT /la7i/ry CITY OF KENT PHASE 3.1 —RIVERBEND CLUBHOUSE HVAC UPGRADES w:urr.,wu(� 15 Energy Services Performance Based Contract services") that are or may be used in the production of Contract Documents. Contract Documents shall be delivered to the Owner by ESCO no later than ninety (90) days after the Commencement Date. If available, such drawings, reports and materials shall be delivered in electronic form, however ESCO will not modify these documents to represent as-built conditions unless specifically contracted to do so. The Owner shall grant to ESCO a perpetual, irrevocable, non-exclusive royalty free license to use all Contract Documents. i SECTION 19.2. OWNERSHIP OF EXISTING EQUIPMENT. Any equipment and materials removed from the Premises as a result of this Contract shall become the property of the ESCO unless the Owner specifically requests to retain ownership of specific equipment and materials. Such requests shall be made by Owner in writing prior to the execution of this Contract. It is understood and agreed to by both Parties that Owner shall be responsible for and designate the storage location for any equipment and materials that should not be disposed of off-site. ESCO shall be responsible for the disposal of all nonhazardous equipment and materials related to the work designated as disposable off-site in accordance with all applicable laws and regulations regarding such disposal. SECTION 19.3 OWNERSHIP OF EQUIPMENT. Title to Equipment installed under this Contract shall pass to the Owner upon installation and when full payment is received for such Equipment. SECTION 20. EVENTS OF DEFAULT SECTION 20.1. EVENTS OF DEFAULT BY THE OWNER. Each of the following events or conditions shall constitute an "Event of Default" by the Owner: A. any failure by the Owner to pay ESCO any sum due for service and maintenance within thirty (30) days of written notification by ESCO that the Owner is delinquent in making payment and provided that Owner has not declared ESCO in default in its performance under the terms of this Contract; B. any other material failure by Owner to perform or comply with the terms and conditions of this Contract, including breach of any covenant contained herein, provided that such failure continues for thirty (30) days after notice demanding that such failures to perform be cured or if such cure cannot be effected in thirty (30) days, the Owner, shall be deemed to have cured default upon the commencement of a cure within thirty (30) days and diligent subsequent completion thereof; or C. any representation or warranty furnished by the Owner in this Contract, which was false or misleading in any material respect when made. D. If the Owner, through no fault of ESCO, causes either the professional service phases (design, j construction management, etc.) or the installation phase to be unreasonably delayed, slowed, or encumbered, for reasons other than set out In Section 22, (i.e., unplanned renovation work, unplanned modernization work, etc.), and such cause is not remedied within ten (10) days after written notice from ESCO, ESCO shall be granted additional time to complete the project, and ESCO and the Owner shall negotiate additional fees, as appropriate, or ESCO may terminate this Contract upon completion of any and all phases work that are in progress at the time of the written notice from ESCO. SECTION 20.2. EVENTS OF DEFAULT BY ESCO. Each of the following events or conditions shall constitute an "Event of Default" by ESCO: A. the standards of comfort and service set forth in Schedule H (Standards of Comfort) are not provided due to failure of ESCO to properly design, install, maintain, repair or adjust the Equipment except that such failure, if corrected or cured within thirty (30) days after written notice to ESCO demanding that such failure be cured, shall be deemed cured for purposes of this Contract; CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ESCO (MCKINSTRY)/OWNERJPERFORMANCE CONTRACT inst¢¢pp y CITY OF KENT PHASE 3.1-RIVERBEND CLUBHOUSE HVAC UPGRADES r.mr..nmm 16 i Energy Services Performance® Based Contract B. any representation or warranty furnished by ESCO in this Contract is false or misleading in any material respect when made; C. unexcused failure to furnish and install the Equipment and make it ready for use within the time specified by this Contract as set forth In Schedules A (General Description of Project Scope) and F (Construction and Installation Schedule); D. provided that the operation of the facility is not adversely affected and provided that the standards of comfort in Schedule H (Standards of Comfort) are maintained, any failure by ESCO to perform or comply with the terms and conditions of this Contract, including breach of any covenant contained herein except that such failure, if corrected or cured within thirty (30) days after written notice by the Owner to ESCO demanding that such failure to perform be cured, shall be deemed cured for purposes of this Contract, or if such cure cannot be effected in thirty (30) days, ESCO shall be deemed to have cured the default upon the commencement of a cure within thirty (30) days and diligent subsequent completion thereof; E. the filing of a bankruptcy petition whether by ESCO or its creditors against ESCO which proceeding shall not have been dismissed within ninety (90) days of its filing, or an Involuntary assignment for the benefit of all creditors or the liquidation of ESCO; F. Any change in ownership or control of ESCO in which the transferee will not accept all rights and obligations under this Contract, unless modified and approved by the parties; or H. Failure by ESCO to pay any material amount due the Owner or perform any material obligation under the terms of this Contract or the Energy Savings Guarantee as set forth in Schedule B, except that such failure, if corrected or cured within ninety (90) days after written notice to ESCO demanding that such failure to perform be cured, shall be deemed cured for purposes of this Contract, or if such cure, other than failure to pay the full amount owed, cannot be effected in ninety (90) days, ESCO shall be deemed to have cured the default upon the commencement of a cure within ninety (90) days and diligent subsequent completion thereof. SECTION 21. REMEDIES UPON DEFAULT SECTION 21.1. REMEDIES UPON DEFAULT BY THE OWNER. In the Event of Default by the Owner, ESCO may exercise any and all remedies at law or in equity, including, without limitation, seeking specific performance, and/or for the recovery of amounts due and unpaid, and/or for damages which shall include all costs and expenses reasonably incurred, including attorneys' fees. Election of one (1) remedy is not a waiver of other available remedies. j SECTION 21.2. REMEDIES UPON DEFAULT BY ESCO. In the Event of Default by ESCO, the Owner may exercise any and all remedies at law or in equity, including, without limitation, seeking specific performance, and/or for the recovery of amounts due and unpaid and/or for damages, which shall include all costs and expenses reasonably incurred, including attorney's fees. Election of one (1) remedy is not a waiver of other available remedies. Without limiting the foregoing, in the event ESCO defaults in the completion of all or any portion of the acquisition, construction or installation of the Equipment, in accordance with the Schedule F (Construction and Installation Schedule) or the other provisions of this Contract, the Owner may (1) commence or complete all or any portion of the acquisition, construction and/or installation in any commercially reasonable manner or (h) take all steps necessary to cause the acquisition, construction and/or I installation, or applicable portion thereof, to come into compliance with Schedule F (Construction and Installation Schedule), including, without limitation, hiring contractors to perform overtime work and additional days of work as necessary to meet the time frames set forth therein. In such event, the Owner shall have the right to seek reimbursement from ESCO and may offset any expenses incurred against amounts CONFIDENTIAL&PROPRIETARY COMMITMENT TO 5U5TAINABILITY iH {� ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT nstYJ/ CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES r.mmo.nnaw 17 Energy Services Performance- used Contract due ESCO without liability for any costs Incurred by ESCO, its agents, contractors, subcontractors or employees for any work performed by the Owner subsequent to the date of default, provided that the amounts are reasonable, defined as the cost of the work if performed by ESCO plus 15%. SECTION 22, CONDITIONS BEYOND CONTROL OF THE PARTIES If a party ("performing party") is delayed in the performance of any of its obligations under this Contract due to acts of God, fire, labor disputes, unusual delays in deliveries, unavoidable casualties, insurrections or riots, unforeseen or excessive code determinations by the authority having jurisdiction, or other events beyond its control (other than the failure to pay money or the failure to perform this Contract due to the lack of money), this Contract shall at the other party's option (i) remain in effect but said performing party's obligations shall be suspended until the said events shall have ended; or, (ii) be terminated upon ten (10) days' notice to the performing party, in which event neither party shall have any further liability to the other. Understanding that no contingencies have been made for such acts, after the events have ended the parties shall enter negotiations to resolve any additional burdens arising from said acts. The time for performance, and the GMIC, in the case of ESCO, shall be equitably adjusted. This provision excludes economic hardship, and insufficiency of funds on the part of the ESCO. SECTION 23. ASSIGNMENT SECTION 23.1. ASSIGNMENT BY ESCO. ESCO acknowledges that the Owner is induced to enter into this Contract by, among other things, the professional qualifications of ESCO. ESCO agrees that neither this Contract nor any right or obligations hereunder may be assigned in whole or in part to another firm, except for an affiliate of ESCO, without the prior written approval of the Owner. Notwithstanding the provisions of this paragraph, ESCO shall remain jointly and severally liable with its assignees(s), or transferee(s) for all of its obligations under this Contract unless otherwise agreed to in writing by the Owner. SECTION 23.2. ASSIGNMENT BY OWNER. The Owner may transfer or assign this Contract and its rights and obligations herein to a successor or purchaser of all or any portion of the Premises subject to this Contract or an interest therein. SECTION 24. DISPUTES & DAMAGES SECTION 24.1. GENERALLY. In case of dispute between the Parties, the Parties will attempt to negotiate a resolution. If a dispute remains unresolved more than thirty (30) calendar days after the commencement of negotiation, then the Parties shall pursue mediation. if any dispute remains unresolved more than sixty (60) calendar days after the commencement of mediation, then either Party may commence binding arbitration. No litigation will be commenced by either Party unless all of the foregoing steps have been pursued to completion, if and to the fullest extent allowed by law. SECTION 24.2. ARBITRATION. All claims and disputes between ESCO and the Owner arising out of, or relating to, this Contract, the breach thereof, or the work or services hereunder, shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. The prevailing party in any such arbitration shall be awarded its reasonable attorneys'fees and costs, including expert witness expenses. The venue for any arbitration to enforce the provisions of this Contract shall be brought in the county where the work is performed. i SECTION 24.3. CONSOLIDATION AND JOINDER. An arbitration pursuant through this provision may be CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT entry CITY OF KENT PHASE 3.1—RIVERBEND CLUBHOUSE HVAC UPGRADES u.orv.,enmm9 18 Energy Services Performance - Based Contract joined with an arbitration involving the Owner, ESCO, their consultants, design professionals, other contractors, subcontractors, or material or equipment suppliers. The Owner's and ESCO's contracts with other contractors, subcontractors, design professionals, consultants, and material and equipment suppliers shall require such joinder. SECTION 24.4. MEDIATION. As a condition precedent to the hearing of any arbitration, ESCO and the Owner shall submit any and all disputes between them to non-binding mediation with the assistance of an experienced mediator. The parties shall each designate a representative with full settlement authority who will participate in the mediation, provided however that any settlement that requires approval of the Owner's governing body under its policies, shall be made subject to such approval, which the Owner shall seek to obtain at the soonest available meeting of the Owner's governing body. The parties shall bear equally all expenses, exclusive of attorneys'fees, associated with the mediation. The venue for any mediation to enforce the provisions of this Contract shall be brought the county where the work is performed. SECTION 24.5. WAIVER AND RELEASE OF LIABILITY FOR CONSEQUENTIAL DAMAGES. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, OR SIMILAR, DAMAGES OR LOSSES, INCLUDING LOSS OF PROFITS, ARISING OUT OF OR RELATING TO THIS AGREEMENT, WHETHER BASED IN CONTRACT OR TORT OR ANY OTHER THEORY, EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. SECTION 25. MISCELLANEOUS PROVISIONS SECTION 25.1 NON-APPROPRIATION OF FUNDS. It is understood and agreed that if the Owner is a government entity then this Contract shall in no way or manner be construed so as to bind or obligate either beyond the term of any particular appropriation of funds by the State's Legislature as may exist from time to time. Notwithstanding any provision in this Contract to the contrary, the Owner reserves the right to terminate this Contract in whole or in part if, in its judgment, the Legislature fails, neglects, or refuses to appropriate sufficient funds as may be required for the Owner to continue any payments required under this Contract. All affected future rights and liabilities of the parties hereto shall thereupon cease within thirty (30) days after notice to ESCO. The Owner shall remain liable for all of its rights and liabilities that have accrued prior to the expiration of the thirty (30) day period. SECTION 25.2. WAIVER OF CLAIMS/LIENS. ESCO shall obtain and furnish, to the Owner, a Waiver of Claims or Liens from each vendor, material manufacturer and laborer in the supply, installation and servicing (pre- acceptance only) of each piece of Equipment. SECTION 25.3. COMPLIANCE WITH LAW AND STANDARD PRACTICES. ESCO shall perform its obligations hereunder in compliance with any and all applicable federal, state, and local laws, rules, and regulations, in accordance with sound engineering and safety practices and in compliance with any and all rules and policies of Owner relative to the Premises. ESCO shall be responsible for obtaining all governmental permits, consents, and authorizations as may be required to perform its obligations hereunder. Failure in this Contract to specifically identify any applicable law does not affect its applicability. SECTION 25.4. INDEPENDENT CAPACITY OF THE CONTRACTOR. It is distinctly and particularly understood and agreed between the parties hereto that the Owner is in no way associated with the employment of labor or the incurring of expenses by ESCO. Said ESCO is an independent contractor in the performance of each and every part of this Contract, and solely and personally liable for all labor and related expenses. CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT Ginstry CITY OF KENT PHASE 3A-RIVERBEND CLUBHOUSE HVAC UPGRADES i.aro..nnW 19 Energy Services Performance- Based Contract SECTION 25.5. SEVERABILITY. In the event that any clause or provision of this Contract or any part thereof shall be declared invalid, void, or unenforceable by any court having jurisdiction, such invalidity shall not affect the validity or enforceability of the remaining portions of this Contract unless the result would be manifestly inequitable or unconscionable. SECTION 25.6, COMPLETE CONTRACT. This Contract, when executed, together with all Schedules, Exhibits and Appendices attached hereto or to be attached hereto, as provided for by this Contract shall constitute the entire Contract between both parties and this Contract may not be amended, modified, or terminated except by a written amendment signed by the parties hereto. SECTION 25.7. FURTHER DOCUMENTS. The parties shall execute and deliver all documents and perform all further acts that may be reasonably necessary to effectuate the provisions of this Contract. SECTION 25.8. APPLICABLE LAW. This Contract shall be construed in accordance with, and governed by the laws of the state where the work is performed. Venue shall be in the county where the work is performed. SECTION 25.9. NOTICE. Any notice required or permitted hereunder shall be deemed sufficient if given in writing and delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid, or delivered by a nationally recognized express mail service, charges prepaid, receipt obtained, to the address shown below or to such other persons or addresses as are specified by similar notice, or by fax or email where such notice is specifically permitted herein. When notice is sent by registered or certified mail, postage fully prepaid, it shall be deemed received seventy-two (72) hours after deposit. When notice is sent by other means, it is deemed received when delivered at the address specified. TO ESCO: Attn: General Counsel McKinstry Essention, LLC 5005 Third Avenue South Seattle, Washington 98134 Fax: (206)768-7741 And to: Email: karryh@mckinstry.com Attn: Karry Howton TO THE OWNER: Attn: City of Kent Alex Ackley 220 Fourth Avenue South Kent, WA 98032 SECTION 25.10. HEADINGS. Headings and subtitles used throughout this Contract are for the purpose of convenience only. I SECTION 25.11. HAZARDOUS MATERIALS. Notwithstanding anything to the in this Contract, ESCO shall not provide any services, or incur any liability, related to asbestos or lead based paint or any other kind of hazardous material, including directly or indirectly performing or arranging for the detection, testing, handling, storage, removal, treatment, transportation, disposal, monitoring, abatement or remediation of any contamination at any site at which Work is performed and any soil or groundwater at the site by petroleum or petroleum products, asbestos, PCBs or hazardous, toxic, radioactive or infections substances, including any CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY instry ESCO(MCKINSTRY)fOWNER(PERFORMANCE CONTRACT CITY OF KENT PHASE 3.1 —RIVERBEND CLUBHOUSE HVAC UPGRADES n.nrn..amrany 20 Energy Services Performance- Based Contract substances regulated under RCRA, CERCLA or any other federal, state or local environmental laws, regulations, statutes, rules, standards or ordinances Including without limitation ionization smoke detectors, ballasts, mercury bulb thermostats, used oil, contaminated filters, contaminated absorbents and refrigerants. In the event ESCO encounters any such materials, ESCO shall immediately notify the Owner and stop work pending further direction from the Owner. The Owner may, in its sole discretion, suspend work on the project pending removal by the Owner of such materials at the Owner's sole cost and expense or terminate this Contract. If the Owner terminates the Contract, all affected future rights and liabilities of the parties hereto shall thereupon cease within thirty (30) days after notice to ESCO. The Owner shall remain liable for all of its rights and liabilities that have accrued prior to the expiration of the thirty (30) day period. The GMIC shall be equitably adjusted and the time for ESCO to perform shall be extended based on impacts associated with such materials and substances. SECTION 25.12. PUBLIC WORKS CONTRACTOR'S STATE LICENSE LAW. ESCO and its subcontractors and sub-subcontractors shall comply with all laws, government regulations, and orders, and all provisions of this Contract. SECTION 25,13. ARCHITECTS OR ENGINEERS. If required by the Authority having jurisdiction, construction work done under this Contract must have plans and specifications approved by a licensed architect and/or engineer. Any plans and specifications so required and approved are incorporated herein by reference as part of this Contract. SECTION 25.14. PRESENTATIONS TO OWNER. ESCO shall make presentations as required related to this Contract to the Owner's administration and its governing board and board staff. SECTION 25.15. SUBCONTRACTOR APPROVAL. The Owner retains the right to reasonably reject any ESCO selected subcontractor prior to its commencement of work under this Contract, including ESCO divisions that are performing work, other than commissioning, in a manner similar to that of subcontractors. ESCO must submit names and qualifications of subcontractors at least two (2) weeks in advance of commencement of work and the Owner shall have five (5) days to review such qualifications and provide written notice of the rejection and reasons therefore to the ESCO. If the Owner rejects an ESCO's selected subcontractor, ESCO shall propose another to whom the Owner has no reasonable objection. If the ESCO initially selected subcontractor was reasonably capable of performing the work or services in question, the GMIC and the time for ESCO to perform shall be equitably Increased or decreased by the difference, if any, occasioned by such change. The award or rejection of subcontractor bid proposals shall be based on the ESCO's analysis and determination of the most qualified proposal response, at the sole discretion of the ESCO. The Owner shall have the right to stipulate the use of a particular equipment vendor or subcontractor, as long as such stipulation is delivered to the ESCO in writing prior to the final acceptance of the ESP. Should an Owner stipulated equipment supplier or sub-contractor not be able to perform the scope of work or task to the satisfaction of the ESCO, the ESCO shall have the right to engage a separate vendor or sub-contractor to complete the work fourteen (14) days after written notice to the Owner has been delivered and the failure to perform persists. The time for performance, and the GMIC, shall be equitably adjusted. SECTION 25.16. BONDING REQUIREMENTS. Contractor shall furnish performance and payment Bonds, each i in an amount equal to the Construction Cost. The Bonds shall cover completion of the physical work per the approved design, and shall not guarantee or warranty efficiency or system performance. The Bonds shall not cover any obligation of the contractor to ensure that the work as constructed will result in any particular level of energy savings. Any suit on the Bonds must be brought within the period of one (1) year after substantial i CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILITY i@@pppp ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT nst v CITY OF KENT PHASE 3.1 —RIVERSEND CLUBHOUSE HVAC UPGRADES - mar ro.i mnern 21 Energy Services Performance- Based Contract completion, as defined in the contract; provided, however, that if this suit limitation is void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. SECTION 25.17. AS-BUILT DRAWINGS. Where applicable, ESCO must provide durable, reproducible record drawings from the "as-built drawings" of all existing and modified conditions associated with the project, conforming to typical engineering standards. These should include architectural, mechanical, electrical, structural, and control drawings and operating manuals and will be delivered prior to acceptance. SECTION 25.18. OPERATION AND MAINTENANCE MANUALS. Electronic Operation and maintenance manuals will be provided for the Equipment, or parts thereof installed. SECTION 25.19. CONTINUING ACTIVITIES. The Owner reserves the right to make energy and water Improvements and control adjustments to the Premises and to monitor the performance of the installations independently of ESCO. Additionally, the Owner may wish to integrate other identified capital needs with ESCO projects, which may or may not contain energy and water savings opportunities. No credit will go to ESCO for these improvements, and the Owner will monitor these savings separately. The Owner will inform the ESCO in writing of the specific changes and alterations. ESCO may readjust the baselines based on the new information and in accordance with Schedule E (Savings Measurement & Calculation Formulae; Methodology to Adjust Baseline). This Section does not abrogate or alter ESCO's right to make baseline adjustments as set forth in Section 15 or elsewhere in this Contract. SECTION 25.20. CONTRACT RE-NEGOTIATION. The Owner and ESCO reserve the right to renegotiate the terms of the Contract due to changes in the regulatory or utility climates or the non-discretionary use of energy or if the Owner desires to add sites in addition to those identified in the RFQ. ESCO shall consider the Owner's effort at renegotiation in good faith. This Contract, however, shall not be modified without the written agreement of the Owner and the ESCO. SECTION 25.21, OFFICIALS, AGENTS AND EMPLOYEES OF THE PARTIES NOT PERSONALLY LIABLE. It is agreed by and between the parties hereto that in no event shall any official, officer, employee or agent of Owner or ESCO, be in any way personally liable or responsible for any covenant or agreement contained in this Contract whether express or implied, nor for any statement, representation or warranty made herein or in any way connected with this Contract. SECTION 25.22. DRAFTING NOT TO BE CONSTRUED AGAINST ANY PARTY. All parties acknowledge and agree that each has had a full opportunity to review and have input into this Contract and that any ambiguity found shall not be construed against any party as drafter. Reference to"year" shall mean calendar year unless a fiscal year is specified, if a fiscal year Is specified that year is July 1 through the following June 30. Reference to the "Premises"shall include, as applicable and when required, only a part of the Premises involved or affected. SECTION 25.23. SIGNATURE IN COUNTERPARTS. This Contract may be executed in counterparts, each of which when so executed shall be deemed an original and all of which taken together shall constitute one and the same agreement. I SECTION 25.24. PROJECT IMPLEMENTATION AND "NOTICE TO PROCEED" PENDING FUNDING. This Agreement is expressly conditional upon funding. in the event the funding mechanism is implemented, and project funding is in place and ready for expenditure, then a formal written "Notice to Proceed,"signed by the i CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILM y� p ESCO(MCKINSTRY)JOWNER)PERFORMANCE CONTRACT ,Usti y CITY OF KENT PHASE 3.1- RIVERBEND CLUBHOUSE HVAC UPGRADES Gwf.wWO, 22 Energy Services Performance- Based Contract Owner's representative shall be issued to the ESCO, which, upon receipt, shall activate all terms and conditions of this contract. SECTION 25.25. DESIGN PROCESS. The ESCO shall be responsible for the development of the design documents to meet the identified scope of work and all applicable codes. The level of detail of the design drawings and specifications must be such to satisfy all permitting and code approvals and to adequately perform the work, as determined by the ESCO. The ESCO shall coordinate with the Owner to allow design review prior to installation of Equipment. Should the Owner direct changes to the scope of work, the project schedule and GMIC will be adjusted accordingly including professional services fees as outlined in Schedule C of this Contract. i IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto subscribe their names to this Contract by their duly authorized officers on the date first above written. MC 5-TRYJESSENTION, LLC OWNER 1rN PRINTED NAME: t C ED AME:'-5zZef7e TITLE: Y t tZ�Y J i'4a .t w TITLE: ' ° U w DATE: % `7 DATE: i CONFIDENTIAL&PROPRIETARY COMMITMENT TO SUSTAINABILM ESCO(MCKINSTRY)/OWNER/PERFORMANCE CONTRACT instry CITY OF KENT PHASE 3A-RIVERBEND CLUBHOUSE HVAC UPGRADES Ife O(Yow Bo)(dlep 23 ^ Energy �� | �� Performance- Based� U�-�� l ] \f Services�/ | � ��-�� -�[ U � �U � | �� U Ul �\~~"~� , , ~~ ` �� / ~~' ,~~ " . " ~° ~.~~~ " ~� ^ . ~, " " . , ~~^ ` " ~^ �� ~�'�� Contract U �[-�-7(-_l J ARND �DV�� | ��T�T�4TT��N �'��' "�� ^ " "�' `~ `�'`� CLARIFICATION Contractor shall furnish performance and payment Bonds, each in an amount equal to the Construction Cost. The Bonds shall cover completion of the physical work per the approved design, and shall not guarantee or warranty efficiency or system performance. The Bonds shall not cover any obligation of the contractor in ensure that the work as constructed will result in any particular level of energy savings. Any suit on the Bonds must be brought within the period of one (1) year after substantial completion, as defined in the contract; provided, however, that if this suit limitation is void or prohibited by law, the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable. CONTRACTOR shall also furnish a retention bond in lieu of retainage held on respective monthly Invoices. 12 CUSTOMER NAME: ' / ATTACHMENT FOR THE SP/CIFIC CONTRACT TITLED: ENERGY SERVICES PERFORMANCE-BASED CONTRACT SIGNED BY CUSTOMER: PRINTED NAME: Ile TITLE: DATE: -'��-------�� compznsmrzxLwpuoraxcTxux COMMITMENT rosoonom^mur, esco(mcxznsrxv)/owwsn/psnponmAnvcCONTRACT insxry CITY opxewT PHASE 3.1-nzvEon*nu CLUBHOUSE nvAoUPGRADES 24 PERFORMANCE BOND i Bond No.: 929602937 CONTRACTOR: SURETY: ovanre, legal status and address) (None, legal status and principal place al'busdness) McKinstry Essention,LLC The Continental Insurance Company 50053rd Ave.South Seattle WA 98134 PO Box 3018 OWNLR: (Name,legal status and address) Bothell,WA 98041-3018 City of Kent 220 4th Avenue South Kent,WA 98032.5895 CONSTRUCTION CONTRACT Date: 12/18/2014 Amount:$ S755,097.77 Description: (Name and locatton) ESCO Performance Contract for City of Kent Phase 3.1 Riverhead Clubhouse HVAC Upgrades BOND Date:12/19/2p14 (Not earlier than Construction Contract Date) Amount:$ $755,097.77 Modifications to this Bond: None 0 See Section IG CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company (Corporate Seal) McKinstry,Ease ote f LC !r The Continental IOsSra ce C nriP y , r �' ✓ , , Signature: -< ku'u '` -y Signature, t i ,�" i� '"�.! Name and p r _ Name and dull .Glover Title: �ij� {se'tP0'�'�d L"ow0 � Title: (Any additional signatures appear on the last page of this performance Bond.) Attorney-in-Fact (FOR INFORMATION ONLY—Name,address and telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE: HUB Northwest, LLC (Architect,Engineer or other party:) PO Box 3018,Bothell,WA 98041-3018 (425)489-4500 §1 The Contractor and Surety,jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner for the performance of the Construction Contract,which is incorporated herein by reference. §2 If the Contractor performs tire Construction Contract, the Surety and the Contractor shall have no obligation under this Bond,except when applicable to participate in a conference as provided in Section 3. §3 if there is no Owner Default under the Construction Contract,the Surety's obligation under this Bond shall arise after A the Owner first provides notice to the Contractor and the Surety that the Owner is considering declaring a Contractor Default. Such notice shall indicate whether the Owner is requesting a conference among the Owner, Contractor-and Surety to discuss the Contractor's performance. If the Owner does not request a conference, the Surely may, within five (5) business days after receipt of the Owner's notice, request such a conference. If the Surety timely requests a conference,the Owner shall attend. Unless the Owner agrees otherwise,any conference requested under this Section 3,1 shall be held within ten(10)business days of the Surety's receipt of the Owner's � The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition I i i I notice. If the Owner, the Contractor and the Surety agree, the Contractor shall be allowed a reasonable time toI perform the Construction Contract,but such an agreement shall not waive the Owner's right,if any,subsequently to declare a Contractor Default; .2 the Owner declares it Contractor Default,terminates the Construction Contract and notifies the Surety;and .3 the Owner Ines agreed to pay the Balance of the Contract Price in accordance with the terms of the Construction Contract to the Surety or to a contractor selected to perform the Construction Contract. §4 Failure on the part of the Owner to comply with the notice requirement in Section 3,1 shall not constitute a failure to comply with a condition precedent to the Surety's obligations,or release the Surety tlom its obligations,except to the extent the Surety demonstrates actual prejudice. §5 When the Owner has satisfied the conditions of Section 3,the Surety shall promptly and at the Surety's expense take one of the following actions: §5.1 Arrange for the Contractor,with the consent of the Owner, to perfosn and complete the Construction Contract; i §5.2 Undertake to perform and complete the Construction Contract itself,through its agents or independent contractors; 1 §5.3 Obtain bids or negotiated proposals from qualified contractors acceptable to the Owner for a contract for perfornance and completion of the Construction Contract, arrange for a contract to be prepared for execution by the Owner and a contractor selected with the Owner's concurrence, to be secured with performance and payment bonds executed by a qualified surety equivalent to the bonds issued on the Construction Contract, and pay to the Owner the amount of damages as described in Section 7 in excess of the Balance of the Contract Price incurred by the Owner as a result of the Contractor Default;or 55.4 Waive its right to perform and complete, arrange for completion, or obtain a new contractor and with reasonable promptness under the circumstances: .1 After investigation, determine the amount for which it may be liable to the Owner and, as soon as practicable after the amount is determined,make payment to the Owner;or .2 Deny liability in whole or in par and notify the Owner,citing the reasons for denial. §6 If the Surety does not proceed as provided in Section 5 with reasonable promptness, the Surety shall be deemed to be in default on this Bond seven days after receipt of an additional written notice fi•om the Owner to the Surety demanding that the Surety perform its obligations under this Bond,and the Owner shall be entitled to enforce any remedy available to the Owner.If the Surety proceeds as provided in Section SA, and the Owner refuses the payment or the Surety has denied liability, in whole or in part,without further notice the Owner shall be entitled to enforce any remedy available to the Owner. §7 If the Surety elects to act under Section 5.1, 5.2 or 5.3, then the responsibilities of the Surety to the Owner shall not be greater than those of the Contractor under the Construction Contract, and the responsibilities of the Owner to the Surety shall not be greater than those of the Owner tinder the Construction Contract. Subject to the commitment by the Owner to pay the Balance of the Contract Price,the Surety is obligated,without duplication,for ,1 the responsibilities of the Contractor for correction of defective work and completion of the Construction Contract; .2 additional legal, design professional and delay costs resulting from the Contractor's Default,and resulting from the actions or failure to act of the Surety under Section 5;and .3 liquidated damages, or if no liquidated damages are specified In the Construction Contract, actual damages caused by delayed performance or non-performance of the Contractor. §8 If the Surety elects to act under Section 5.1,53 or 5A,the Surety's liability is limited to the amount of this Bond, §9 The Surety shall not be liable to the Owner or others for obligations of the Contractor that are unrelated to the Construction Contact,and the Balance of the Contract Price shall not be reduced or set off on account of any such unrelated obligations.No right of action shall accrue on this Bond to any person or entity other than the Owner or its heirs, executors, administrators, successors and assigns. I §10 'fhe Surety hereby waives notice of any change, including changes of time, to the Construction Contract or to related subcontracts. purchase orders and other obligations. §11 Any proceeding, legal or equitable,under this Bond may be instituted in any court of competent jurisdiction in the location in which the work or part of the work is located and shall be instituted within two yeas after a declaration of Contractor Default The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition 2 i or within two years after the Contractor ceased working or within two years after the Surety refuses or fails to perform its obligations under this Bond, whichever occurs first. If the provisions of this Paragraph are void or prohibited by law, the minimum period of limitation available to sureties as a defense in thejurisdiction of the suit shall be applicable. �. I §12 Notice to the Surety, the Owner or the Contractor shall be mailed or delivered to the address shonvn on the page on which their signature appears. §13 When this Bond has been Furnished to comply with a statutory or other legal requirement in the location where the construction was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted therefrom and provisions conforming to such statutory or other legal requirement shall be deemed incorporated herein. When so furnished,the Intent is that this Bond shall be construed as a statutory bond and not as a common law bond. §14 Definitions §14.1 Balance of the Contract Price. The total amount payable by the Owner to the Contractor under the Construction Contract after all proper adjustments have been made, including allowance to tine Contractor of any amounts received or to be received by the Owner in settlement of insurance or other claims for damages to which the Contractor is entitled, reduced by all valid and proper payments made to or on behalf of the Contractor under the Construction Contract. §14.2 Construction Contract, The agreement between the Owner and Contractor identified on the cover page, including all Contract Documents and changes made to the agreement and the Contract Documents. §14.3 Contractor Default. Failure of the Contractor,which has not been remedied or waived, to perform or otherwise to comply with a material term of the Construction Contract. §14.4 Owner Default.Failure of the Owner,which has not been remedied or waived,to pay the Contractor as required under the Construction Contract or to perfecto and complete or comply with the other material terms of the Construction Contract. §14.5 Contract Documents,All the documents that comprise the agreement between the Owner and Contractor. §15 If this Bond is issued for an agreement between a Contractor and subcontractor,the term Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. §16 Modifications to this bond are as follows: (Space is provided heimgfor add itlanal signatures of added parties, other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) Signature: Signature: Name and*Title: Name and Title: Address: Address: Attorney-in-Fact ! I 'The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition 3 PAYMENT BOND Bond No.: 929602937 CONTRACTOR: SURETY: (Name, legal status and address) (Name, legal status and principal place of business) McKinstry Cssention,LLC The Continental Insurance Company 50053rd Ave.South Seattle,WA 98130. TO Box 3018 OWNER: (Name, legal status and address) Bothell,WA 98041-3018 City of Kent 2204th Avenue South Kent,WA 98032-5895 CONSTRUCTION CONTRACT Date: 12/18/2014 Amount:$$755,097.77 Description: (Name and location) FSCO Performance Contract for City of Kent Phase 3.1 Riverbend Clubhouse 11VAC Upgrades BOND Date: 12/19/2014 (Not earlier than Construction Contract Date) Amount:$$755,097.77 Modifications to this Bond: None See Section 18 CONTRACTOR AS PRINCIPAL SURETY Company: (Corporate Seal) Company: (Corporate Seal) McKinstry Essontion,LLC 1 The Conhnenfel lnyrance our a , )t Signature: .k.-+ !'( Signature: t`.__ ` Name and , Name and Julie Glover Title: tpI T Pcky F-�?i"---', 0 � Title: (Any additional signatures appear on the last page of this Payment Bond.) Attorney-in-Fact (FOR INFORMATION ONLY Name,address and telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE: (Architect,Engineer or other party:) HUB Northwest, LLC PO Box 3018 Bothell,WA 98041-3018 (425)489-4500 § I The Contractor and Surety,jointly and severally,bind themselves,their heirs,executors,administrators,successors and assigns to the Owner to pay for labor,materials and equipment furnished for use in the performance of the Construction Contract,which is incorporated heroin by reference,subject to the following terns. §2 If the Contractor promptly makes payment of all sums due to Claimants, and defends,indemnifies and holds harmless the Owner fi�om claims,demands,liens or suits by any person or entity seeking payment for labor,materials or equipment punished The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition i for use in the performance of the Construction Contract,then the Surety and the Contractor shall have no obligation under this Bond. I §3 If there is no Owner Default under the Construction Contract,the Surety's obligation to the Owner under this Bond shall arise after the Owner has promptly notified the Contractor and the Surety(at the address described in Section 13)of claims, demands, liens or suits against the Owner or the Owner's property by any person or entity seeking payment for labor,materials or equipment furnished for use in the performance of the Construction Contract and tendered defense ofsuch claims,demands, liens or suits to the Contractor and the Surety. §A When the Owner has satisfied the conditions in Section 3,the Surety shal I promptly and at the Surety's expense defend, indemnify and hold harmless the Owner against a duly tendered claim,demand, lien or suit. §5 The Surety's obligations to a Claimant trader this Bond shall arise after the following: §5.1 Claimants,who do not have a direct contract with the Contractor, .I have furnished a written notice of non-payment to the Contractor,stating with substantial accuracy the amount claimed and the name of the party to whom the materials were,or equipment was, furnished or supplied or for whom the labor was done or performed,within ninety(90)days after having last performed labor or last furnished materials or equipment included in the Claim;and .2 have sent a Claim to the Surety(at the address described in Section 13). §5.2 Claimants,who are employed by or have a direct contract with the Contractor,have sent a Claim to the Surety(at the address described in Section 13). §6 If a notice of non-payment required by Section S.1,t is given by the Owner to the Contractor,that is sufficient to satisfy a Claimant's obligation to Ruttish a written notice of non-payment under Section 5.1,1. §7 When a Claimant has satisfied We conditions of Sections 5.1 or 5.2,whichever is applicable,the Surety shall promptly and at the Surety's expense take the following actions: §7.1 Send an answer to the Claimant,with a copy to the Owner,within sixty(60)days after receipt of the Claim,stating the amounts that are undisputed and the basis for challenging any amounts that are disputed;and §T2 Pay or arrange for payment of any undisputed amounts. §73 The Surety's failure to discharge its obligations under Section 7.1 or Section 7.2 shall not be deemed to constitute a waiver of defenses the Surety or Contractor may have or acquire as to a Claim,except as to undisputed amounts for which the Surety and Claimant have reached agreement.If,however,the Surety fails to discharge Its obligations under Section 7.1 or Section 7.2,the Surety shall indemnify the Claimant for the reasonable attorney's fees the Claimant incurs thereafter to recover any sums found to be due and owing to the Claimant. §S The Surety's total obligation shall not exceed the amount of this Bond,plus the amount of reasonable attorney's fees provided under Section 7.3,and the amount of this Bond shall be credited for any payments made in good faith by the Surety. §9 Amounts owed by the Owner to the Contractor under the Construction Contract shall be used for the performance of the Construction Contract and to satisfy claims,if any,under any construction performance bond.By the Contractor furnishing and the Owner accepting this Bond,they agree that all funds earned by the Contractor in the performance of the Construction Contract are dedicated to satisfy obligations of the Contractor and Surety under this Bond,subject to the Owner's priority to use the funds for the completion of the work. § 10 The Surety shall not be liable to the Owner,Claimants or others for obligations of the Contractor that are unrelated to the Construction Contract.The Owner shall not be liable for the payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligation to make payments to,or give notice on behalf of,Claimants or otherwise have any obligations to Claimants under this Bond. I i § I I Tile Surety hereby valves notice of any change, including changes of tine,to the Construction Contract or to related subcontracts,purchase orders and other obligations. The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition 2 i § t2 No suit or action shall be commenced by a Claimant under this Bond other than in a court of competentjurisdiction in the state in which the project that is the subject of the Construction Contract is located or after the expiration of one year from the date(1)on which the Claimant sent a Claim to the Surety pursuant to Section 5.1.2 or 5.2,or(2)on which the last labor or service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction Contract, whichever of(1)or(2)first occurs, if the provisions of this Paragraph are void or prohibited by Inv,the minimum period of limitation available to sureties as a defense in the jurisdiction of the suit shall be applicable, § 13 Notice and Claims to the Surety,the Owner or the Contractor shall be mailed or delivered to the address shown on the page on which their signature appears.Actual receipt of notice or Claims,however accomplished,shall be sufficient compliance as of the date received. § 14 When this Bond has been furnished to comply with a stafttoty or other legal requirement in the location where the construction was to be performed,any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforning to such statutory or other legal requirement shall be deemed incorporated herein. When so furnished,the intent is that this Bond shall be construed as a statutory bond and not as a common law bond. § 15 Upon request by any person or entity appearing to be a potential beneficiary of this Bond,the Contractor and Owner shall promptly furnish a copy of this Bond or shall permit a copy to be made. § 16 Definitions § 16.1 Claim.A written statement by the Claimant including at a minimum: ,I the name of the Claimant; ,2 the name of the person for whom the labor was done,or materials or equipment furnished; .3 a copy of the agreement or purchase order pursuant to which labor,materials or equipment was furnished for use in the performance of the Construction Contract; .4 a brief description of the labor,materials or equipment furnished; .5 the date on which the Claimant last performed labor or last furnished materials or equipment for use in the performance of the Construction Contract; ,6 the total amount earned by the Claimant for labor,materials or equipment furnished as of the date of the Claim; .7 the total amount of previous payments received by the Claimant;and .8 the total amount due and unpaid to the Claimant for labor,materials or equipment furnished as of the date of the Claim. § 16.2 Claimant.An individual or entity having a direct contract with the Contractor or with a subcontractor of the Contractor to furnish labor,materials or equipment for use in the performance of the Construction Contract.The term Claimant also includes any individual or entity that has rightfully asserted a claim under an applicable mechanic's lien or similar statute against the real property upon which the Project is located.The intent of this Bond shall be to include without limitation in the terms`labor,materials or equipment"that part of water,gas,power,light,heat,oil,gasoline,telephone service or rental. equipment used in the Construction Contract,architectural and engineering services required for performance of the work of the Contractor and the Contractor's subcontractors,and all other items for which a mechanic's lien may be asserted in the jurisdiction where the labor,materials or equipment were famished. § 16.3 Construction Contract,The agreement between the Owner and Contractor identified on the cover page,including all Contract Documents and all changes made to the agreement and the Contract Documents. i § 16.4 Owner Default.Failure of the Owner,which has not been remedied or waived,to pay the Contractor as required under the Construction Contract or to perform and complete or comply with the other material terms of tine Construction Contract I § 16.5 Contract Documents.All the documents that comprise the agreement between the Owner and Contractor. § 17 If this Bond is issued for an agreement between a Contractor and subcontractor,the terns Contractor in this Bond shall be deemed to be Subcontractor and the term Owner shall be deemed to be Contractor. § 18 Modifications to this bond are as follows: (Space is provided below for additional signatures of added parties,other than those appearing on the cover page.) CONTRACTOR AS PRINCIPAL SURETY The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition 3 Company: (Corporate Seal) Company: (Corporate Seal) Signature: Signature: Name and Title: Name and Title: Address: Address; Attorney-in-Pact i I I I I I i The Company executing this bond vouches that this document conforms to American Institute of Architects Document A312,2010 edition d I POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know All Men By These Presents,That The Continental Insurance Company,a Pennsylvania insurance company,is a duly organized and existing insurance company having its principal office in the City of Chicago,and State of Illinois,and that it does by virtue of the signature and seal herein affixed hereby make,constitute and appoint Steve Wagner, Michael A Murphy,Darlene Jakielski,Julie M Glover,S M Scott,Theresa A Lamb,Jim W Doyle,Andy D Prill,Jim S Kutch,Chad M Epple,Individually of Bothell,WA,its true and lawful Attomey(s)-in-Fact with full power and authority hereby conferred to sign,seal and execute for and on its behalf bonds,undertakings and other obligatory instruments of similar nature -In Unlimited Amounts- and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the acts of said Attorney,pursuant to the authority hereby given is hereby ratified and cominned. This Power of Attorney is made and executed pursuant to and by authority of the By-Law and Resolutions,printed on the reverse hereof,duly adopted,as indicated,by the Board of Directors of the insurance company. In Witness Whereof,The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 14th day of July,2014. + jJjgv + The Continental insurance Company '••�++•• Pam,Binflat Vice President State of South Dakota,County of Minnehaha,ss: On this 14th day of July,2014,before me personally came Paul T.Bruflat to me known,who,being by me duly sworn,did depose and say: that he resides in the City of Sioux Falls,State of South Dakota;that he is a Vice President of The Continental Insurance Company,a Pennsylvania insurance company,described in and which executed the above instrument;that he knows the seal of said insurance company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority,and acknowledges same to be the act and deed of said insurance company. twrnnvausucSOUTH DMOTA My Commission Expires June 23,2015 J.Mohr y Notary Public CERTIFICATE I,D.Bult,Assistant Secretary of The Continental Insurance Company,a Pennsylvania insurance company,do hereby certify that the Power of Attorney herein above set forth is still in force,and further certify that the By-Law and Resolution of the Board of Directors of the insurance company printed on the reverse har f is still in fce. In testimony whereof I have hereunto subscribed my name and affixed the seal of the said insurance company this �1' day pf dJC 'i1 ? r''" zl''jt sux,• The Continental Insurance Company g? D.Bull Assistant Secretary Form F6850-4/2012 i l i Bond No.929602938 RETAINAGE BOND KNOW ALL MEN BY THESE PRESENTS that we McKinstry Essention,LLC a corporation under and by virtue of the laws of the State of Washington and authorized to do business in the State of Washington,as Principal, and The Continental InsuranceGe a corporation organized and existing under the laws of the State of Pnnn%�wao a and authorized to transact business of surety in the State of Washington, as Surety,are jointly and severally held and bound unto City of Kent hereinafter referred to as Obligee, as Obligee, and are similarly held and bound unto the beneficiaries of the trust fund created by RCW 60.28 and their heirs,executors, administrators, successors and assigns, in the penal sum of Thirty-Seven Thousand Seven Hundred Fifty-Four and 89l100 Dollars lia7 7sa a4 )plus 5%of any increases in the contract amount that have occurred or may occur, due to change orders, increases in the quantities or the addition of any new item of work. WHEREAS, on the 18th day of December 2014 the said Principal herein executed a contract with city of scent for ESCO Performance Contract for City of Kent Phase 3.1 Riverbend Clubhouse HVAC Upgrades WHEREAS,said contract and RCW 60.28 require the Obligee to withhold from the Principal the sum of 5%from monies earned by the Principal on estimates during the progress of the work,hereinafter referred to as earned retained funds. WHEREAS, the Principal has requested that the Obligee accept a bond in lieu of earned retained funds as allowed under Chapter 60.28 RCW. NOW THEREFORE, this obligation is such that the Surety, its successors and assigns are held and bound unto the Obligee and unto all beneficiaries of the trust fund created by RCW 60.28.011(1) in the aforesaid sum. This bond, including any proceeds therefrom,is subject to all claims and liens and in the same manner and priority as set forth for retained percentages in Chapter 60.28 RCW. The condition of this obligation is also that if the Principal shall satisfy all payment obligations to persons who may lawfully claim under the trust fund created pursuant to Chapter 60.28 RCW,to the Obligee,and indemnify and hold the Obligee harmless from any and all lost, costs and damages that the Obligee may sustain by release of said retainage to the Principal, then this obligation shall be null and void,provided the Surety is notified by the Obligee that the requirements of RCW 60,28.021 have been satisfied and the obligation is duly released by the Obligee. I I i I i Retainage Bond No. 929602938 Page 2 of 2 Ili IT IS HEREBY DECLARED AND AGREED that the Surety shall be liable under this obligation as Principal. The Surety will not be discharged or released from liability for any act, omission or defenses of any kind or nature that would not also discharge the Principal. IT IS HEREBY FURTHER DECLARED AND AGREED that this obligation shall be binding upon and inure to the benefit of the Principal,the Surety, the Obligee, the beneficiaries of the trust fund created by Chapter 60.28, Revised Code of Washington (RCW) and their respective heirs,executors, administrators, successors and assigns. IN WITNESS WHEREOF,said Principal and said Surety have caused these presents to be duly signed and sealed this 19th day of December 2014 McKinstry Essentlon,LAC f y r By Principal Yp The Continental Insurance Company i -� Surety By. �� / �/ ✓ �r�, / JutW,Glover Attorney-in-fact j i i POWER OF ATTORNEY APPOINTING INDIVIDUAL ATTORNEY-IN-FACT Know All Men By These Presents,That The Continental Insurance Company,a Pennsylvania insurance company,is a duly organized and existing insurance company having its principal office in the City of Chicago,and State of Illinois,and that it does by virtue of the signature and seal herein affixed hereby make,constitute and appoint Steve Wagner, Michael A Murphy, Darlene Jakielski,Julie M Glover,S M Scott,Theresa A Lamb,Jim W Doyle,And D Prill,Jim S Kuich,Chad M Epple,Individually of Bothell WA,its true and lawful Attomey(s)-in-Fact with full power and authority hereby conferred to sign,seal and execute for and on its behalf III bonds,undertakings and other obligatory instruments of similar nature In Unlimited Amounts- and to bind them thereby as fully and to the same extent as if such instruments were signed by a duly authorized officer of the insurance company and all the acts of said Attorney,pursuant to the authority hereby given is hereby ratified and confirmed. This Power of Attorney is made and executed pursuant to and by authority of the By-Law and Resolutions,printed on the reverse hereof,duly adopted,as indicated,by the Board of Directors of the insurance company. In Witness Whereof,The Continental Insurance Company has caused these presents to be signed by its Vice President and its corporate seal to be hereto affixed on this 14th day of July,2014. yt8U • The Continental Insurance Company ,�,�;, U •.,• +•+�«•`�'�r Paul T.Bruf at Vice President State of South Dakota,County of Minnehaha,ss: On this 14th day of July,2014,before me personally came Paul T.Bruflat to me known,who,being by me duly sworn,did depose and say: that he resides in the City of Sioux Falls,State of South Dakota;that he is a Vice President of The Continental Insurance Company,a Pennsylvania insurance company,described in and which executed the above instrument;that he knows the seal of said insurance company;that the seal affixed to the said instrument is such corporate seal;that it was so affixed pursuant to authority given by the Board of Directors of said insurance company and that he signed his name thereto pursuant to like authority,and acknowledges same to be the act and deed of said insurance company. J.MOMR uoTnavauauc 80nn10AKOTA �i. A J77T, My Commission Expires June 23,2015 J.Molir Notary Public CERTIFICATE I,D.Bull,Assistant Secretary of The Continental Insurance Company,a Pennsylvania insurance company,do hereby certify that the Power of Attorney herein above set forth is still in force,and further certify that the By-Law and Resolution of the Board of Directors of the insurance company printed on the reverse ereof is still in force n testimony,whereof I have hereunto subscribed my name and affixed the seat of the said insurance company this f' day of "�Y'1��"2C'a'' l'( ��1k8Ub'r, The Continental Insurance Company' °••.°.«•"` D.Bull Assistant Secretary Form F6850-412012 City of Kent — Rive rbe n d Golf Course, Phase 3. 1 Energy Services Proposal KEN « WASHINGTON NOVEMBER « 2014 / ; a . . v a�k� j I I i MENNEN i ,MEMO== SECTION 1. EXECUTIVE SUMMARY 1.1 Overview 1.2 Project Description 1.3 Summary of Benefits 1.4 Guarantees 1.5 Conclusion SECTION 2. SCOPE OF WORK 2.1 Facility Improvement Measure (FIM) Summary 2.2 ESCO Services 2.3 Extent of Subcontracting 2.4 Project Schedule 2.5 Attachment A- Detailed Scope of Work SECTION 3. ENERGY COST SAVINGS AND GUARANTEES 3.1 Guarantee Overview 3.2 FIM Specific Performance Assurance Methodology 3.3 Utility Rates 3A Standards of Comfort Service 15 On-Going Owner Responsibilities 16 Non-Performance 3.7 Change of Use 3.8 Owner Furnished Equipment (if applicable) 3.9 Table 3.1a - Guaranteed Energy Savings (using actual rates) Table 3.1b - Calculated Energy Savings (using Commerce rates) Table 3.2 - Performance Assurance Plan Outline Table 3.3a -Actual Utility Rates Table 3.3b- WA State Commerce Rates SECTION 4. PROJECT FINANCIALS 4A Maximum Project Allowable Cost I 4.2 Project Cost Table 4.3 Items Included in Maximum Project Cost 4.4 Construction Contingency 4.5 Allowances 4.6 On-Going Services 4.7 Accounting Records 4.8 Reconciliation of Labor&Material Costs 4.9 ESCO Compensation 4A0 Financing 4A1 Termination Value 4A2 Terms of Agreement 4A3 Insurance&Bonding 4A4 Rebate Letters 4A5 Table 4A - Budget Summary Breakdown Table 4.2a - FIM Matrix (guaranteed savings and actual rates) Table 4.2b- FIM Matrix (calculated savings and DOC rates) SECTION 5. DIRECTED ENGINEERING STUDY (DES) instry CONFIDENTIAL AND PROPRIETARY Page 1 j i 1 . Executive Summary 1.1 Overview McKinstry Essention (herein after as McKmstry) Is pleased to present this Energy Services Proposal (ESP) for the implementation of energy efficiency measures at the City of Kent's Riverbend Golf Course. This ESP follows the outline contained in Section 2 of the Energy Services Agreement. It outlines the project's scope, budget and expectations for improvements to the City's golf course clubhouse. These improvements are intended to upgrade and consolidate the number of technologies used in the mechanical and electrical systems on site. The City of Kent has identified a number of criteria that were taken into account while building this project, not the least of which were budget, technology types, specific space heating and cooling requirements, controls strategies and ongoing maintenance considerations. This investment grade audit package identifies the costs, energy baseline conditions, project scope, utility data analysis, energy saving information and measurement and verification plan for the City's HVAC and controls improvements at the Riverbend Golf Course. 1.2 Project Description This project Includes renovations to the HVAC and Controls Systems at the riverbend golf course. The project will result in energy savings, net cost savings to the city of Kent, as well as maintenance savings for the ongoig ownership of the golf course clubhouse. In addition to this, the City will have a more sustainable mechanical solution in their clubhouse building for the forseeable future. 1.3 Summary of Benefits FINANCIAL BENEFITS Section 4 of the proposal provides information related to specific project financials related to this project. A summary of information is included here: Table 1: Financial Summary Total Project Cost (Includes the cost of the ESP, taxes, management $752,796 fees, design fees, construction, M &V, etc.) Estimated Utility Incentive N/A Table 2: Resource Savings Summary ill all a Electricity kWh 4,402 Natural Gas therms _ 4,031 Propane gal N/A Water CCF N/A Sewer CCF N/A The improvements are projected to produce over $724 of annual energy savings to the City of Kent. Savings ( of$2,000 are projected based on reduced repair costs and future avoided capital expediture as agreed upon with the City of Kent. Total first year savings is estimated at $2,724 annually. I instrV CONFIoeNTTAL AND gagllIgIgTARY ry%Yut.4Ybt i 1 . Executive 1.4 Guarantees McKinstry guarantees that the Maximum Project Cost will not exceed $689,587. This cost does not include sales tax. With sales tax the estimated Project Cost will be $752,796. (McKinstry does not guarantee the value of sales tax.) 1.5 Conclusion This project represents an excellent opportunity for the City to greatly improve its facilities while saving energy. McKinstry looks forward to working with the City in making this project a success. I I i j i Il1J�� CONFIDENTIAL AND4RH 66 IgTARY - N,INM1ryPvffGry 2 . co e o or 7.1 Facility TrOOFOVeAOent Measure /FTK8\ SUOlFOJFV rordetai|edocoponfwmrkdcscrpUnnspbanrrefrrioScci|on7.3, ALtaohmentA - "DotoUedScopcofYVodk." 7,7 ES[`OS8FViCeS MoKinaUy will include the following services related to this project: l. Energy Audit; The energy audit is complete and is submitted under Section 5 -"Directed [ngincrring3tudy." 2. Design Service : McKinst,y will provide adetailed engineering design ao needed ivobtain permitting, Owner review, approval of the proposed systems, and competitive bids. In addition, McKinstry will also provide construction support services, start'up, testing, as-built drawings n[ systems installed, and provide relevant operations and maintenance manuals. 3. Construction: Provide, or cause to be provided, all material, labor, and equipment, including paying for permits, fees, bonds, and Insurance, required for the complete and working installation ofMcKinstry'sequipment, a. McKinstry will provide a site superintendent who will be responsible for the onsite supervision and coordination of trades and subcontractors. This individual's responsibilities will also include regular work observations, quality control, site security, enforcement of the site-specific safety plan, as well as coordinating any impact upon building tenants with the Owner. b. McKinstry may perform portions of the construction work with the approval of the Owner or may subcontract portions to qualified firms. In either case, McKinstry will share information regarding actual costs of the work with the Owner. c. When McKInstry has completed the Installation of the equipment, including start-up, operations verification, and training in accordance with the proposal, McKInstry will provide Lo Owner n"Notice of Commencement of Energy 3av|ngs." d. At the conclusion of the project, McKinstry will submit a"Notice of Substantial Completion" Lu the Owner. 4. Construction Managemen : NcKinstry will provide a dedicated construction manager who will provide contract administration services for the project. The Owner is expected to coordinate day- to-daycon`monicaUonowithtenantsondnnyschedu|ingofLooantre|ocnUonsinpndnround occupied areas. 5. Operation Training: McK|nskyvvi|| providetrpiningo[hui|dingstaffdur|ngconst,ucUonanda minimum of8 hours of training on the energy management control system. 6. Performance Maintenance: Mc0nstry will provide one-time measurement and support services to ensure that predicted savings are achieved throughout the term of the agreement. On-going services shall be under separate agreement. On-going services shall be at the discretion of the Owner to terminate. Speciflc tasks associated with proposed on-going performance assurance tasks can he found inTable 3.2. 7. Equipment Maintenance: McKinstry will provide no equipment maintenance or repairs after the warranty period. Following the completion of the installation and acceptance hy the Owner ofthe Equipment, the Owner shall provide all necessary service, repairs, and adjustments to the Equipment so that the Equipment will perform in the manner and to the extent set forth in the proposal. McKinstry shall have no obligation to service or maintain the Equipment after the warranty period. instrY CONFIDENTTAL AND PROPRIETARY Page 4 S-coPe- 91 wo r,k S. Warranty: McKinstry will warrant equipment for one year following Notice of Substantial Completion. Specific information regarding equipment warranty will be passed on to Owner. 9. Hazardous Waste other than PCB lighting ballasts: Should the project require removal or disposal of hazardous material, McKinstry will coordinate with the owner so that owner may arrange for removal of hazardous material or substances by a third party. McKinstry does not assume ownership of the material. As hazardous materials have not been identified during the Detailed Engineering Study, these costs are not Included in the guaranteed maximum cost. The Owner agrees and acknowledges that it has not relied on or employed McKinstry to analyze or identify the presence of any hazardous substance on the Owner's premises. The cost of hazardous material abatement and disposal is not included in this proposal. 10. Hazardous Waste associated with PCB lighting ballasts: Where PCB ballasts are discovered as part of lighting retrofit work, McKinstry shall dispose of PCB ballasts through an approved hazardous waste vendor. The cost of hazardous material abatement and disposal associated with PCB ballasts is included in this proposal. 2.3 Extent of Subcontracting McKinstry may subcontract the energy audit, design, construction management, start-up, and training portions of this Contract to qualified firms upon review and approval by Owner. Construction subcontracts will be awarded competitively or as directed by the City of Kent. 2.4 Project Schedule See attached 2.5 Scope of Work Documents See attached i I i i CONFIDENTIAL AND PROPRIETARY /IIaA�llruFN Page 5 uper nwur r i ti i @ � w N ei N c 0 h m @ @ E E a o w d N � O � 3 V V N U) a C! ` N O O O @ -7 c Lm > > > o v ON-. in T �n ? ? in T T in Tn T in T �n T in Oy G 9 _ T @ yr >, @@ T N @ T Y T T@ L/ tmtf a m m w •� � ei aim tp O cl .-I N tG .i iti _e-� �-i a-1 :.i-i �-i ttt t1f M z a � E -�2 m; m E ZOD fl- V 01 y a N e E c > t7 0 c@ � 'O .= a m b 9 u ti o a E o '. m Z 'a W m iL O LL to w ii w v�"i u3I uci ZO 2 E �j U LL .IOC �. O .-I N M V Vt 1p h W fP O ti N NM a y c-I N M V vl t0 h W Ot v-f .N a-I �-{ .4 ri 'i .-i •-i a-I N N N � N O � O Detailed cop of Work FIM ID # 26149 03.02-GC Upgrade HVAC to 2-Pipe FCs with Electric Heat Riverbend 18 Hole Golf Course GENERAL This project will replace multiple, existing heating and cooling systems serving the Riverbend Golf Course Club House, with 2-pipe fan coils. The fan coils will be provided with chilled water cooling and electric resistance heat coils. The air-cooled chiller will be replaced and upsized to accommodate the larger demand now present in the space vs. the original building design.The existing ductwork will be re-used. New Siemens CDC controls will be included to automate the control of the fan coils and chilled water system. SCOPE OF WORK INCLUDES 1. Mechanical A. Demolition 1) Demo 7 fan coils with chilled water and electric heat. 2) Demo 2 fan coils with chilled water and hydronic heat. 3) Demo Bar Unit(FCU-8) with electric and two outdoor heat pump units. 4) Demo 20 ton chiller, pumps and appurtenances. 5) Demo boiler,flue, pumps and appurtenances. Patch roof. B. Provide 10 chilled water fan coils with electric heat in place of the existing units. 1) Provide hose kits with 3-way control valves for each fan coil unit. 2) Connect to existing ductwork. Modify ductwork as required to accommodate fan coil units. 3) Relocate units 7A, 7B and 8 as needed to facilitate accessibility. 4) Provide electric duct heaters for 7A, 7B and 8, 5) FCU-5 is located above a ceiling. Demolreplace ceiling to accommodate unit replacement. 6) Provide shop fabricated mixing boxes at each fan coil unit for economizer operation. 7) Replace outside air ductwork for FCU-5 and 6 from 10x6 to 12"to accommodate outside air rates. C. Relief: 1) Refurbish existing Bar Exhaust fan (4000 cfm). 2) Provide additional Exhaust fan on roof for economizer relief(3500 cfm 'A hp). Provide roof curb and roof penetration. Provide with Varigreen motor and modulate fan speed to maintain building pressurization. D. Demand Controlled Ventilation: 1) Control outside air and relief based on CO2 sensor. 2) Locate one sensor in the restaurant breathing zone. 3) Modulate outside air dampers for FCU-1, 7A, 7B and 8 to maintain CO2 levels. 4) Relief fan modulates to maintain space pressurization. E. Provide 30 ton chiller 1) Modify/replace enclosure to accommodate chiller. 2) Provide acoustic package with chiller. 3) Provide vibration/isolation package with chiller. 4) Provide (2) 2 Hp pumps 5) Provide appurtenances for a complete chilled water system to include: air/dirt separator, expansion tank and high point air vents. Reuse/relocate existing chemical pot feeder. 6) Provide chilled water piping from the chiller to FCU-8. The existing chilled water piping will be reused for the remainder of the units. 7) Provide 30% glycol in the system for freeze protection. 8) Flush hydronic system 9) Install two temperature wells for chilled water temp sensors 10) Install two wells total in supply and return chilled water piping for differential pressure sensor F. Clean existing fan coil ductwork (Include CA ductwork to FCUs and supply ductwork from FCUs to GRDs) G. Paint all ten (10) new fan coils to match existing ceiling 2. Controls Ili A. Provide control system to control equipment listed above. Refer to attached points list. 3. Electrical A. General 1) Scope consists of electrical provisions for a replacement chiller and pumps, replacement fan coil units, and new I /nstry PROPRIETARY AND CW6WfIAL 14 p(ryn Bulffley i I, i j Detailed cope of Work duct heaters. Most of the replacement mechanical equipment has different electrical requirements than the equipment it is replacing. B. 30-day metering: 1) A net load Increase is anticipated for the project. 2) It is assumed that 30-day metering will be required at two 208Y/120V panels (TED). Assume both are 600 amp or less. 3) It is assumed that existing demand information will be available for the Main Switchboard from the electrical utility. C. Demo: 1) Chiller: (1) Disconnect conductors at chiller. (ii) Demo existing ground-mounted conduit back to existing disconnect on building exterior wall. (iii) Demo existing conductors back to load side of disconnect. (iv) Turn off existing chiller breaker in main switchboard (100A/31r), and mark as"SPARE - FROM OLD CHILLER". 2) Chiller pumps: Typical for each of 2 (located inside Mechanical Room): (I) Disconnect conductors at pump. (11) Demo starter at pump. (Ili) Demo conduit and wire back to serving electrical panel. (Iv) Mark breaker as"SPARE". 3) Fan coil unit: Typical for each of FC-1, -3, -9 (i) Disconnect conductors at fan coil unit. (ii) Demo existing disconnect. (Ili) Demo existing conduit and wire. (iv) Mark existing circuit breaker as"SPARE". 4) Fan coil unit: Typical for FC-2 (i) Disconnect conductors at fan coil unit. (11) Demo existing disconnect. (ill) Demo existing 30A/2P breaker in panel. (iv) Retain existing conduit and wire, 5) Fan coil unit: Typical for each of FC-4, -5, and -6 (1) Disconnect conductors at fan coil unit. (ii) Demo existing disconnect. (Ili) Retain existing conduit and wire, and circuit breaker at panel. 6) Fan coil unit: Typical for FC-7A, -7B (fan with hot water heating coil) (i) Disconnect conductors at unit. (d) Demo starter. (ill) Retain existing conduit and conductors,and breaker in panel, for re-use with new FC-7A and -713. 7) Fan call unit: Typical for FC-8 (i) Disconnect conductors at heater. (ii) Demo disconnect at heater. (ill) Demo existing conduit and wire, back to serving panel. (iv) Mark breaker as"SPARE". (v) Disconnect conductors at fan. (vi) Demo disconnect at fan. (vii)Demo existing conduit and wire, back to serving panel. (viii) Mark breaker as"SPARE". 8) Heat pump outdoor unit: Typical for each of 2. (i) Disconnect conductors at outdoor unit. (ii) Demo existing disconnect. (ill) Demo existing conduit and wire back to serving electrical panel. (iv) Mark existing circuit breaker as"SPARE". D. New Work: 1) Chiller: 208V/3-Ph., 156.07 FLA, 169.20 MCA, 225 MOCP, 65KA SCCR. (1) Provide 225A/3P breaker in Main Switchboard. Match AIC of existing breakers in switchboard. (ii) Provide 400A/3P, NEMA 3R, fused disconnect at chiller, adjacent to old chiller disconnect. Provide 200A fuses in disconnect, (Ili) Provide branch circuit from Main Switchboard to chiller: 2"conduit, (3) #2/0, #4 ground. Approximate distance 100 lineal feet. 2) Chiller pumps: Typical of 2 pumps, each at 208V/ 3-Ph., 2 hp. (1) Provide new circuit breaker in panel (TED). 20A/3P. Match AIC of existing breakers In panel. I instry PROPRIETARY AND Cq, EYTIAL n.or m.mna.o � Detailed Scope ®f Work I (i i) Provide magnetic motor starter at pump. NEMA 3R enclosure, with NEMA size'0'contactor, 30A/3P non- fused disconnect. Hinged cover, with hand-off-auto switch, red 'run'pilot light, green`stop'pilot light, solid-state overloads. Auxiliary contacts: minimum (1) NO, (1) NC. (in) Provide branch circuit from panel (TBD) to pump. 3/a"conduit, (3) #12, #12 ground. (iv) Provide VFDs for both new chilled water pumps 3) Fan coil unit: Typical for FC-1, -9 (208V/ 1-Ph., 8 kW heat, 4.26 FLA fan, 53.40 MCA, 60A MFS). (Note: the existing electrical provisions for the existing FC-9 are not known. It is assumed here that new provisions will be required.) (1) Provide new circuit breaker in panel (TBD). 60A/2P. Match AIC of existing breakers in panel. (h) Provide disconnect at fan coil unit. 60A/2P, NEMA 1, fused, with 60 amp fuses. (ill) Provide branch circuit from panel (TBD) to fan coil unit. 1"conduit, (2) #6, #10 ground. Assume 100 lineal feet. 4) Fan coil unit: Typical for FC-2 (208V/ 1-Ph., 3 kW heat, 4.26 FLA fan, 23.35 MCA, 25A MFS). (i) Provide new circuit breaker in panel (TBD). 25A/2P. Match AIC of existing breakers in panel. (ii) Provide disconnect at fan coil unit. 30A/2P, NEMA 1, fused, with 25 amp fuses. (ill) Reconnect conductors from old (demo'd) fan coil (#10's). 5) Fan coil unit: Typical for FC-3 (208V/ 1-Ph., 2 kW heat, 4.26 FLA fan, 17.34 MCA, 20A MFS). (1) Provide new circuit breaker in panel (TBD). 20A/2P. Match AIC of existing breakers in panel. (f) Provide disconnect at fan coil unit. 30A/2P, NEMA 1, fused, with 20 amp fuses. (ill) Provide branch circuit from panel (TBD) to fan coil unit. 3/4"conduit, (2) #12, #12 ground. Assume 100 lineal feet. 6) Fan coil unit: Fan coil unit: Typical for each of FC-4, -6 (2 total fan calls). Same electrical requirements as existing fan coil units. (1) Provide new non-fused disconnect. 30A/2P, NEMA 1. (if) Re-connect existing conductors to new fan coil. 7) Fan coil unit: Typical for each of FC-5 (1 total fan toll). Same electrical requirements as existing fan coil units. (1) Provide new non-fused disconnect. 6OA/2P, NEMA 1. (ii) Re-connect existing conductors to new fan coil. 8) Fan coil unit: Typical for each of FC-7A, -76 (Fan only, 208V/ 3-Ph., 3/4 hp) (Per info. received from Trane on 09/10/14) (1) Provide magnetic motor starter at fan. NEMA 1 enclosure, with NEMA size'00'contactor, 30A/3P non- fused disconnect. Hinged cover,with hand-off-auto switch, red`run'pilot light, green'stop'pilot light, solid-state overloads. Auxiliary contacts: minimum (1) NO, (1) NC. (11) Re-connect existing conductors to fan. 9) Fan coil unit: Typical for each of FC-8 (208V/3-Ph., 12 kW heat, 8.60 FLA fan, 52.44 MCA, 60 MFS) (1) Provide new circuit breaker in panel. 60A/3P. Match AIC of existing breakers in panel. (if) Provide disconnect at fan coil unit. 60A/3P, NEMA 1, non-fused. (ill) Provide branch circuit from panel to fan coil unit. 1"conduit, (3) #6, #10 ground. Assume 100 lineal feet. (iv) Provide new smoke detector with FCU. Smoke Detector to hardwire shut down FCU upon alarm. 10) Duct heater: Typical for each of 2 (208V/ 3-Ph., 17 kW) (i) Provide new circuit breaker in panel. 60A/3P. Match AIC of existing breakers in panel. (if) Provide disconnect at fan coil unit. 60A/3P, NEMA 1, non-fused. (III) Provide branch circuit from panel to fan coil. 1"conduit, (3) #6, #10 ground. Assume 100 lineal feet. 11) Duct heater: Typical for each of 1 (208V/3-Ph., 25 kW) (1) Provide new circuit breaker in panel. 90A/3P. Match AIC of existing breakers in panel. (ii) Provide disconnect at fan coil unit. SOOA/3P, NEMA 1, non-fused. (ill) Provide branch circuit from Main Switchboard to duct heater: 1-1/4"conduit, (3) #3, #8 ground. Assume 100 lineal feet. 12) 'Additional exhaust fan on roof'(referenced in Mechanical scope above). 208V/3-Ph., 2 hp ECM, (i) Provide new circuit breaker in panel (TBD). 20A/3P. Match AIC of existing breakers in panel. (ii) Provide disconnect at fan. 30A/3P, NEMA 3R, non-fused. (ill) Provide branch circuit from panel (TBD) to fan. 3/4"conduit, (3) #12, #12 ground. E. New Work 1) Provide new electrical panel'PZ', to feed the equipment listed below, instead of using existing panels. Equipment not listed below to be fed as described above. New panel'PZ'shall be 208V/3-Ph., 400 amp bus, main lugs only, 42 poles,'bolt-on'breakers, Minimum 20K AIC. (i) (2) chiller pumps (11) FC-1 (ill) FC-2 (iv) FC-3 I I instry PROPRIETARY AND C(y% FYTIAL i Detailed cope of Work (v) FG-7B (vi) FC-8 (vii)FC-9 (viii) (2) duct heaters at 17 kW (ix) (1) duct heater at 25 kW (x) `Additional exhaust fan on roof' 2) Provide new circuit breaker in Main Switchboard, to feed panel`PZ'. 300A/3P. Match AIC of existing breakers in switchboard. 3) Provide feeder between Main Switchboard and panel'PZ'. 3"conduit, (4) 350 kcmil, #4 ground. Assume 60 lineal feet. 4. Structural A. Provide seismic units suspension and chiller anchorage details B. Extend existing housekeeping pad for new chiller— 10 SF S. Architectural A. Provide revision to existing chiller enclosure to accommodate new chiller. B. Replace ceiling below FC-5 to accommodate unit replacement. 6. Testing,Adjusting and Balancing (TAB) A. Take baseline airflow readings on outlets of all ten (10) existing fan tails B. Provide balancing of entire new system (airside and waterside). 7. Commissioning A. Provide noise pre and post-measurement for bar/restaurant area and chiller. B. Provide FPT and PTP C. Provide flush and fill of entire chilled water system. 8. Demolition and Removal A. See Mechanical section 9. Allotments A. Provide allotment for acoustical mitigation. 10. Design A. Provide design as required for this FIM. 2. Measurement and Verification (M&V) A. Refer to table 3.2. 3. Training A. Provide training as required for this FIM. CLARIFICATIONS AND EXCLUSIONS 1. For the safety of our people and avoidance of potential long-term liability, McKinstry no longer executes subcontracts for abatement of asbestos and lead paint. Any exceptions to this policy must be approved by our CEO or President and our General Counsel. Abatement of asbestos and lead paint shall be the responsibility of the building owner who should contract directly with qualified abatement specialists. 2. If existing equipment or components are reused, repairs to existing are not included unless specifically noted in the scope above. 'll 3. Restrooms and offices west of the breezeway are not in the scope of work. 4. Restroom exhaust fans in the main building are not In the scope of work. 5. Kitchen equipment is not in the scope of work. 6. We will need to temporarily shut off power to the entire building to accommodate the replacement of the chiller. i i --- i insfr Y PROPRIETARY AND CONDPWIAL - tfe 0l lou Bulf/leg i ) (§ . ( \ ` w ® n2 D ; 2k # > ) D LULU m Cl) /| lq I = ! \ (00-M \ \ w e \ w 2 §\ ( , . . > o \)\ ( ( \ ` \ (! ) ° § § § Z CL , , . § : r4r ( § § / j : :l: : : : � : :m: = = = = _ ! : ! ! : > r ! , z : : } i i r _ _ m Guarantee _ -_ . . . 3.1 Guarantee Overview i 1. Philosophy: McKinstry is prepared to guarantee any portion of a project over which it has direct control. Where McKinstry does not have direct control (such as burn hours associated with lighting), we are prepared to work with the customer to devise a method of Measurement and Verification (M&V), which will provide the highest degree of assurance that the energy cost savings exist. 2. This Project: For this project, McKinstry is prepared to guarantee the performance of the installed initiatives to reduce energy consumption. The target energy reductions for the initiatives that will be implemented are as follows: Refer to Section 3, Table 3.1b. Based upon the stipulated conditions as enumerated by City of Kent personnel and the utility rates as described below, the utility cost savings are also shown in Table 3.1b. Note: In this section, Tables 3.1a and 3.3a are shown for reference only using the full calculated energy and cost savings figures (before applying any guarantee factors) using the Commerce Department rates. 3. On-going Services: The cost past year one of Measurement and Verification (M&V) is not included in the project scope. A separate proposal can be provided for the cost of this work upon request. McKinstry is prepared to continue the guarantee as long as City of Kent continues the on-going services as described herein. When City of Kent chooses to cancel the on-going services, the guarantee will also be terminated at the same point in time. Please refer to Section 3, Table 3.2 for a summary of the proposed measurement and verification scope for years one-three. 3.2 FIM Specific Performance Assurance Methodology 1. Guarantees: Table 3.1b Energy Savings Guarantee Summary provides the specific energy consumption savings for each facility improvement measure and the guarantee that McKinstry will provide associated with that measure. Savings calculations are based upon both baseline operating characteristics and proposed operation criteria: a. Baseline: "Baseline" refers to the existing operating characteristics that were used to calculate energy cost savings. The baseline operating characteristics, including system performance and operational expenditures, which were used for this project are provided in Table 3.1. In general, all parties acknowledge the baseline associated with any specific measure has been derived from the following sources: (1) Actual operating information gathered through field observation, measurement, micro-data loggers, and Owner's operating logbooks. (2) Owner provided information concerning stipulated factors such as burn hours, occupancy, or operational expenditures. (3) In some instances, a modified baseline may have been developed to address areas whereby pre- retrofit conditions do not reflect a system that is operating per current code or what the client may deem as normal operation. b. Proposed: The proposed operating criteria, including system performance and operational expenditures, which were used for savings calculations are provided in Table 3.1b. Systems must be operated per the proposed criteria to ensure energy cost savings are realized. McKinstry will provide the Initial start-up, commissioning, and programming of the system to ensure the systems operate per the proposed operating criteria. City of Kent acknowledges their responsibility to ensure these criteria are maintained and associated energy savings are realized. Energy Savings Guarantees are predicated based on City of Kent maintaining their responsibilities as provided below in "On-Going Owner Responsibilities" in Section 3.5. i .ilru Pa CONFIDENTIAL AND PROPRIETARY I ./ a 12 r.er m.vuaa, I _r - - t yin Guarantee 3.3 Utility Rates 1. Utility Rate: For the purpose of calculating savings, the utility rates used will be the utility rates as paid by City of Kent to the utility company during the pertinent period, adjusted for any rate schedule changes made by the utility company, except that the utility rate used for calculation will never go below or above the Floor Rate. In the event that a building has multiple meters on different rate schedules, the per-unit cost of the utility will be the average of all the rate schedules in effect at that facility. a. Base Utility Rate: Refer to Table 3.3b for the Base Utility Rates (including sales tax). 2. Floor Utility Rate: For the purpose of calculation of savings, this utility rate shall be used throughout the life of this contract to calculate the energy costs savings to City of Kent. 3.4 Standards Of Confort Service The following section provides the standards of comfort, which City of Kent must maintain to ensure the comfort of the occupants and staff, and upon which all energy calculations were based. HVAC Comfort Heating, ventilating, and air conditioning (HVAC) systems provided by McKinstry will provide comfort and indoor air quality in accordance with the Standards of Comfort below. This standard will pertain only to buildings and areas of buildings in which McKinstry is installing HVAC equipment that has direct control over space comfort conditions. HVAC comfort conditions cannot be guaranteed when operable windows or doors are open. Indoor Conditions Occupied: Winter Heating Minimum Set-paint - 70 degrees F (Superseded by DOH Regs) Winter Heating Maximum Set-point- 74 degrees F(Superseded by DOH Regs) Summer Cooling Minimum Set-point- 74 degrees F (where mechanical cooling systems are employed) Summer Cooling Maximum Set-point - 78 degrees F (where mechanical cooling systems are employed) Unoccupied: Minimum - 55 degrees F Maximum - 85 degrees F (where mechanical cooling systems are employed) Relative Humidity (If humidity control provided): Minimum - 40% Maximum - 60% Minimum outside air per occupant: Minimum outside air per occupant shall be in accordance with American Society of Heating, Refrigerating, and j Air Conditioning Engineers (ASHRAE) standards and Washington State Ventilation and Indoor Air Quality Code. 0 instry CONFIDENTIAL AND PROPRIETARY ll JJ Page 13 .1.uune, i i .r wY5t Savings_ Guarantee Less stringent conditions will not be proposed unless specifically approved by the client agency (if applicable). I 3.5 On-Going Owner Responsibilities City of Kent shall provide the following services as part of this energy services project. In the event that these services are not provided, energy savings and associated guarantees will be modified to reflect the associated impact. (1) Maintain all equipment per manufacturer's recommendations and proposed maintenance schedule. (2) Maintain all sequence of operations and performance criteria related to installed systems as proposed and designed. (3) Provide other FIM specific on-going responsibilities as provided in Table 3.2 -"Performance Assurance Plan Outline." (4) Provide McKinstry with copies of actual monthly utility billing information on a quarterly basis for the duration of the on-going service period. This includes electric, natural gas, and fuel oil. For this project, the on-going service period shall be three years. The associated facilities where utility information shall be provided include all meters providing direct or indirect service to all buildings included in this project. (S) Provide McKinstry all internal sub-meter data, including electric and condensate meters, providing direct or indirect service to all buildings included in this project. (6) Provide McKinstry access to Energy Management and Control Systems for the purpose of collecting and logging data over time as required for performance verification. (7) City of Kent shall notify McKinstry in writing concerning any changes or alterations to the building that will affect energy usage. This notification should be provided within two weeks of the change. This includes occupancy or use changes, computer load or other load changes, scheduling changes, and sequence of operations changes. i i li I kstrvCONFIDENTIAL AND PROPRIETARY ffNN{{/ Page 14 1fe 0I kW[fUlb/ rg 'ost Savings Guarantee 3.6 Non-Performance In the event the equipment performance is not met, McKinstry accepts responsibility for additional electricity and natural gas used by the equipment, due to reduced performance. McKinstry may, at its option, execute any of the following options: a. Repair or replace equipment as necessary to meet required performance. b. Make payments for the extra energy consumption to City of Kent. In the event that McKinstry chooses the payment option, McKinstry reserves the right to select either an annual payment for the duration of the guarantee term or a one-time lump-sum payment of the same amount. In either case, the payment will be calculated based upon the quantity of additional electricity or natural gas used and the Base Utility Rate as described above. 3.7 Change Of Use In the event that City of Kent chooses to make changes to the facility that require set point adjustments, longer operating hours, or continuous equipment operation City of Kent agrees that: a. Savings deemed as met described above will continue to be deemed as met. J. Additional cost of extended equipment operation is a cost of the change, not due to a failure of McKinstry or their equipment. c. McKinstry shall not be responsible for any increase in energy, maintenance, or any other costs incurred because of the extended equipment operation. d. During the M&V portion of the project McKinstry at its option may make a baseline energy use adjustment to identify and account for a change-of-use at the facility. e. McKinstry will calculate the change in energy consumption due to the specific change made to the system's operation. I i i i i i �yp fy CONFIDENTIAL AND PROPRIETARY Page 15 rtrar m,eare., i i i i i f i h N « N N a a « I L a 8 *+m ya m w C �\ V � I 6!d C V 1 - C13 MP z u I � ( ( \ . � � I3 ) E \ . E �. : - - __ � - _ Lli / f co wag • f,! _ � I • ` . � / / \/ \ � � � � � ©f HISH! \}\ / � /\. \� \§ ,G;^\�\\eByonly =a_ 41 c y f Oa 6 \ » , C11 . ./! e ( 2 \ / 2 ) i i i a a <r v 0 0 0 0 N N N N c-I ci ci ci m m m m I O O O O O O O O O1 O O O h vt c0 O O m r-1 W O O M r-i Vt t/T +/T th ti • Y D 1L U � C �y R � u n ' a fl na`. o� W � 1�\ i �1 W m w E E E E V V V u w o t w w o I 4 cn � 1 c f�l 4 Q Q Q I i i i i I v .mi a o N o ti I 3 Y L y ( I f+ O O M N O d w N N � m o m a o d of cn+n vi a c - � o _ o V N V z N 40 W all �N -a do c M M m a N W � s t v u N � LL �> a w w 4-1 a ° a b}o m m N� `w v `a� c c c I = a a a c c c > > o vai v0i v0i I �y� tt a rn W I i i > > > Lit � www q M I c r�/ o o a mi m c c c 75 { i 4 . _....u.- -._ ct Financials 4. 1 Maximum Project Allowable Cost McKinstry guarantees that the Maximum Project Cost will not exceed $689,587. This cost does not include sales tax. With sales tax Included the estimated Project Cost will be $752,796. (McKinstry does not guarantee the value of sales tax). Costs presented in this proposal are valid for 30 days from the date of publication. If the notice to proceed is issued after the 30 days from publication, McKinstry reserves the right to re-evaluate the project and make necessary modifications to the construction costs. 4.2 Project Cost Table (See Table 4.1 - "Budget Summary Breakdown" - ALL FEE PERCENTAGES and costs are unique to the project) 4.3 Items Included In Maximum Project Cost 1. Engineering audit, which includes the cost for the preparation of this proposal 2. Engineering design 3. Construction management services 4. Installation of McKinstry Equipment including the following costs as specified in the scope of work: A. All costs paid by McKinstry for the installation of the equipment. This Includes costs paid to subcontractors or directly to McKinstry personnel, when related to installation or system verification of McKinstry equipment. B. The portion of reasonable travel, lodging, and meal expenses of officers or employees Incurred while traveling in discharge of duties connected with the work. McKinstry will comply with OFM guidelines for reimbursement of travel expenses. C. Cost of all equipment, materials, supplies, and equipment incorporated in the Work, including costs of transportation thereof, D. Cost or rental charges, including transportation and maintenance, of all materials, supplies, equipment, temporary facilities, and hand tools not owned by the workers, which are consumed in the performance of the work and cost less salvage value on such items used but not consumed which remain the property of McKinstry. E. Cost of premiums for all bonds and insurance, which McKinstry is required to purchase and maintain. F. Sales, use, or similar taxes related to the Work and for which McKinstry is liable imposed by a governmental authority. G. Permit fees, royalties, and deposits lost for causes other than McKinstry's negligence. H. Losses and expenses not compensated by insurance or otherwise, sustained by McKinstry in connection with the work, provided they have resulted from causes other than the fault or neglect of McKinstry. Such losses shall include settlements made with the written consent and approval of the Owner. If, however, such loss requires reconstruction and McKinstry is placed in charge thereof, McKinstry shall be paid a fee for such services. I. Demolition cost and cost of removal of all debris unless specifically excluded within the Scope of Work. J. Costs incurred due to an emergency affecting the safety of persons and property. K. Other costs incurred in the performance of the Work if and to the extent approved in advance in writing by the Owner. L. Contingency as defined in Section 4.4. M. Allowances as defined in Section 4.5. I III Str CONFIDENTIAL AND PROPRIETARY '. �IJJ II y Page 21 mcr rzr enrHee '. 4 . als r .__---_-. _ _ r-- ni N. Cost of equipment startup, training, system verification, and balancing performed by McKinstry. O. Construction Bonds (including Performance & Payment Bond), Liability Insurance, and Builder's Risk Insurance. !,, P. McKinstry fee. This includes McKinstry's remuneration for compensation of personnel, expenses, risks related to the project, overhead, and profit. Q. McKinstry shall provide a Schedule of Values. The schedule of values will include all costs related to the installation of McKinstry's equipment. 4.4 Construction Contingency A construction contingency as identified in Table 4.1 —"Budget Summary Breakout" has been established for this project. McKinstry can expend the contingency after a change order has been approved by the Owner, the ESCO items necessary to complete the original scope of this project. The intent of the contingency is for "unforeseen conditions"beyond what was originally estimated. McKinstry shall not be allowed to mark-up contingency funds expended for items required in the original Scope of this project. McKinstry and the Owner will jointly manage any contingency left after the project scope is completed. McKinstry shall be allowed to mark-up items beyond the original scope and approved by Owner. All unused construction contingency funds shall reduce the overall project cost to the Owner. 4.5 Allowances — N/A 4.6 On-Going Services Measurement and verification is included for one year for this project. No on-going Services in years two and three have been proposed for this phase of the project. 4.7 Accounting Records McKinstry shall check all material, equipment, and labor entering into the worksite and shall keep such full and detailed accounts as may be necessary for proper financial management under this Agreement. The Owner shall be afforded access to all the ESCO's records, books, correspondence, instructions, drawings, receipts, vouchers, memoranda, and similar data relating to this Contract, and the Contract shall preserve all such records for a period of seven years, or for such longer period as may be required by law, after the final payment. 4.8 Reconciliation of Labor & Material Costs The maximum project allowable cost is based on firm negotiated bids or estimated labor and material costs developed by the ESCO. In recognition that actual Labor& Material costs may vary from the estimate, the following procedures are established to reconcile this difference: i 1. If the total maximum guaranteed project cost at completion exceeds the estimated amount (plus contingency), the additional costs will be borne by McKinstry at their expense. 2. If the total project costs at completion are less than the estimated proposal amount (less I contingency), the savings will be retained by the Owner. 3. There shall be no cost savings split between the Owner and McKinstry. The following Figure 4.A outlines proposed procurement and payment reconciliation methods. Changing the proposed method of reconciliation after the acceptance of the Proposal may require an adjustment to the Guaranteed Maximum Project Cost. i,gst ry CONFIDENTIAL AND PROPRIETARY //// CC Page 22 xai row�eune, I DEFINITIONS: Major Equipment: Major Equipment is any single piece of equipment purchased by McKinstry with a value over $5,000. i Negotiated: Construction contract value is to be established through negotiations with a select or single contractor (i.e. owner preferred controls contractor, mechanical contractor, etc.). Bid: Construction contract value is to be established through a bid process based upon formal bid documents including plans and specifications which will be bid to a minimum of two (typically three) pre-qualified contractors as approved by the ESCO and owner. Owner shall endorse any selection of a Subcontractor or equipment that is other than low bid through a properly executed change order. Self-Perform: McKinstry intends to perform work with McKinstry and/or McKinstry personnel. Schedule of Values (SOV): - Cost shall be substantiated with a properly executed invoice from the subcontractor or supplier that matches the schedule of values in their contract or purchase order. Time & Materials (T&M): Published sell rates will be established prior to issuance of contract to subcontractor or commencement of work by McKinstry. A monthly labor and material report will be provided which will include labor hours and dollars per individual, and material and equipment invoices. Firm: Fees that are negotiated prior to proposal and are not reconciled at the end of the project. Figure 4.A aso •e ® • a+ Controls Systems Negotiated SOV Major Equipment Negotiated SOV Mechanical Subcontract Bid SOV Electrical Subcontract Bid SOV General Construction Self-Perform T&M -- --- — TAB/Start up Self-Perform T&M Commissioning Self-Perform T&M -- .............. .---------- '---....-. Change Order (CO) As Specified in CO T&M ESCO Fees Self-Perform Firm 4.9 ESCO Compensation 1. TERMS: Net 30 days (45 days for State Treasurer payments) from the date of invoice, monthly billings as the job progresses. I 2. PAYMENTS: At a minimum, payments will be made in the amount of 100% at the completion and implementation of any individual facility Improvement measure (FIM) in the amount of that FIM as delineated in the contract. If more than one FIM is completed in a monthly period, all those FIMS will be paid. 3. FINANCE CHARGES ON UNPAID BALANCES: Payments due and unpaid shall be subject to interest charges within 30 days (45 days for State Treasure payments) of receipt of a properly completed invoice per RCW 39.76. Finance charges will be calculated on the un-billed balance at the rate of Prime + 2% per annum. i 0�Kc•{ CONFIDENTIAL AND PROPRIETARY nsi Page 23 .".4"" 4. _r J _Financials.__._ -_ Charges accrue until balances are paid in full. Interest charges will be calculated daily, compounded monthly. 4. CONSTRUCTION PERIOD FINANCE: McKinstry may charge construction period finance for projects, independent of financing method, whereby the anticipated billing lags the earned schedule of values by more than 90 days. If Owner controlled schedule delays occur during the progress of the project, the Contractor may request additional finance charges be added to the project. Construction period finance will be calculated on the un-billed balance at the rate of Prime + 2% per annum. Interest charges will be calculated daily, compounded monthly. Charges accrue until balances are paid in full. 5. SUBSTANTIATION OF FINANCE CHARGE: McKinstry will do an accounting of finance charges progressively through the project, and at contract completion submit a change request itemizing the summary of additional costs for implementation. The contract will then be increased to reflect the same and finance charges will be paid within 30 days of the date of approved substantiation. Maximum Project Cost will be adjusted to reflect the additional finance charges and billings will be adjusted accordingly. 4.10 Financing - N/A 4.11 Termination Value Refer to program guidelines for information on Termination values. 4.12 Terms of Agreement The Contract shall be effective and binding upon the parties immediately upon its execution and the period from contract execution until the Commencement Date shall be known as the "Interim Period". All energy savings achieved during the interim period will be fully credited to Owner, and may be used to offset any loss of energy savings; as mutually agreed to by the Owner and McKinstry. 4.13 Insurance & Bonding McKinstry shall provide a payment and performance bond and builders Risk Insurance. For The Purposes of This Agreement, the "Sum Amount of Bond" Shall Be (See Table 4.1 —"Budget Summary Breakdown"). 1. The bond amount consists of Labor and Materials and State Sales Tax. 2. This bond does not include any construction contingencies. 3. Certificates of General Liability Insurance will be provided prior to Contract Signing. I McKinstry shall provide a payment and performance bond in the amount of 100% of the construction cost, as defined in the Energy Services Agreement Addendum. The amount shall include all authorized changes and state sales tax. The Bond shall be in the form attached to the Conditions of the Energy Services Agreement. The Contract listed on the bond form shall be the Addendum No. and Agreement No., which incorporates the work, and the "Contract Date"shall be the date of the Addendum. The full and just sum of the Bond shall be as defined above and shall Include the actual cost of purchasing and installing McKinstry's Equipment. The Bond shall specifically exclude coverage for those portions of the Energy Services Agreement and/or Energy Services Agreement Addendum pertaining to design services, energy cost savings guarantee, maintenance guarantee, utility incentives, efficiency guarantees, and any other clauses which do not relate specifically to construction management and supervision of work for purchasing and installing of McKmstry's Equipment, or for work to be accomplished by the Owner. The Bond shall be with a Surety or Bonding Company that is registered with the State of Washington Insurance Commissioner's Office. While McKinstry stands behind our safety record, we cannot control the work flow around items we have no I 0.01.1`11ft instry CONFIDENTIAL AND PROPRIETARY Page 24 i _4 . _prpject Financials control over. At no point does McKinstry assume any responsibility for the loss of use of any equipment and we exclude any and all claims for consequential damages therein. 4.14 Rebate Letters - N/A 4.15 Tables 4.1 and 4.2 • Table 4.1 — Budget Summary Breakdown Table 4.2a — FIM Matrix based upon guaranteed savings and actual utility rates • Table 4.2b — FIM Matrix based upon calculated savings and Commerce rates i i i I I, GinStr CONFIDENTIAL AND PROPRIETARY rth7{/y Page 25 :w r.:+ewwp i I I I Q• m Of. h O N I` N .O V1 O a ® '. N N N tD O• O N O. V h N ' � Vh bF Yh UY fA N +Pr +Pr iff !fF .R 'i. b P ■ � o m M1 N h >y {1 m h a v w h m a 0 c n N N Air- c c ui nf' o m U U U V c o p� V o 12 Fo- at N N o o `o `o 0 0 0 N V V V V V V U VS 6 6 6 2 6 6 2 S m VJ w i A\ U LL q C M a 8 uoi Q `T W U` e i v e s ! ( (o � U (C5 m � S N 0 ,O � �J LL 0 �a N � a K L O /�� CL W � o M � y I Co U d v LL > LLJ U 6 �N2 it U it y tC3 r. !L c U) U) N � C G W 0 ® � a EL m Qo c > (VVr{ m o m ri M y o N �/� h •U � w ry-N Cod a a o _ q m q U O ��r n {p .. s N aw L oa O N S V i i 5. Directed Engineering Study Table of Contents SECTION 5.1 PURPOSE AND ORGANIZATION SECTION 5.2 EXISTING FACILITY DESCRIPTION SECTION 5.3 FACILITY IMPROVEMENT MEASURES - CALCULATIONS FIM #03.02-GC UPGRADE HVAC TO 2-PIPE FCS WITH ELECTRIC HEAT SECTION 5.4 FIMS CONSIDERED BUT NOT INCLUDED IN THIS PHASE FIM #03.01-GC UPGRADE HVAC TO VRF SECTION 5.5 UTILITY DATA i I i I i I I I I I i try CONFIDENTIAL AJ;CA§�OnIETARY i Directed Engineering Study cont. 5.1 PURPOSE AND ORGANIZATION This exhibit documents the analysis performed to establish the utility and operational savings for the project. The information is organized by FIM (Facility Improvement Measure) as follows: • FIM Narrative with key assumptions and criteria • Savings calculation methodology and analysis i Additionally, relevant site survey data, measurement and verification data, utility information and miscellaneous back-up information are provided in the sections following the various FIM sections. i i i i i i i I I SS t�' iryl PROPRIETARY Ah'PS0ri®ENTIAL DirectedEngineering Study cont. j 5.2 EXISTING FACILITY DESCRIPTIONS Existing Conditions The Riverbend Golf Complex is located at 2019 W Meeker St, Kent, WA 98032, This study focuses on the Main Clubhouse, The Clubhouse is comprised of a restaurant, restroom facilities, a small pro-shop, office space, golf cart garage and kitchen and storage associated with the restaurant. Riverbend Golf Clubhouse's heating, ventilation and air conditioning (HVAC) system consists of (6) two pipe fan coil units with electric strip heat and chilled water coils and (3) four pipe fan coil units with hot and chilled water coils. A gas fired boiler provides hot water for the three coils. An air-cooled chiller is located outside under cover. These nine fan coils serve the restaurant, retail, and office space. In addition, a ten ton, 100% outside air, split system heat pump serves the bar area. The heat pump operation is disabled due to the 100%outside air configuration, (2) packaged terminal air conditioner (PTAC) heat pumps serve the West offices across the breezeway and an electric furnace provides heat for the outdoor bathrooms. Operating schedules were obtained from fan coil thermostats and through tenant interviews. Schedule is occupied M-F 4am to 10pm, F-Sun lam to 11pm; otherwise unoccupied. • Three (3)4-pipe fan coils with hot water and chilled water coils (this is the only heating load on the small gas- fired boiler) • Six(6) 2-pipe fan coils with electric resistance heat • One (1) 10-ton standard air-to-air heat pump Exhaust fan and electric furnace in exterior restrooms • One 20-ton air-cooled chiller • One (1) very small gas-fired boiler • Two (2) PTAC units for two perimeter offices • One (1) big exhaust fan in the bar area i it i i __.—.. ,._._..ram _ ...._..�._...,_...__.. __._ _._. ._... _ .... _., ._ . _. . . G �y ,{QfjSyrJiPROPRIETARY AM?,j0FJTENT1ALnM i Directed Engineering Study cont. 5.3 FACILITY IMPROVEMENT MEASURES - CALCULATIONS FIM #03.02-GC Upgrade HVAC to 2-Pipe PCs with Electric Heat Calculations for both existing and proposed conditions have been modeled using eQUEST v. 3.65.The baseline energy model has been calibrated against the existing monthly utility bills. The proposed model for the 2-pipe fan coils uses standard eQUEST systems and methodologies for that option. Following are summary outputs for the energy models generated in eQUEST. Energy Model Geometry: i a 2a M ky View from the North i i I i I I Qks!pyr PROPRIETARY ANPAPOPENTIAL Directed Engineering toY cont. I s's ' View from the Southwest ( I I I I 1N try PROPRIETARY ANC W09ENTIAL X�INEvhXflry � \ \\ \ \\\ \ \ 1 . 12 \ \ }\ \ / t \! { t \ ; � - O .S / . . \ \ 0 § * P :Z \ > . 0 \\ ~ \ 6i . < < < \ } Cl : c- a : - t :© = v - sG&& I Ginstry eQUEST Baseline Model HVRC Inputs I r 2 3 9 10 i 6 $ 7 i i 1 Cart Stoia0e Unconditioned 2 Restrooms HW fan coil /chilled water mils 3 Vestiel. Unconditioned 4 Be,,CockUic loccgVDining Area HW Fan cos w/chilled vrafer mils 5 Office Chilled water calls,electric Tcelatence heat 6 Office Chilled rmatercolls,electric resistance heat Office Chilled water calls,electric resistance heat 8 mot, Chilled water coils,electric resistance heat 9 Kitchen Chilled water coik,ewde'.Kate..heat 10 Club Shop Chilled water colts,electric resistance heat ire i , fn�,�ir91i rv 'i� dl la i WA Auto-sized chillervnth U..lad EER—6.8 2 74/74 cool 7O/70 heat 3 N/A 4 74/74 cool,20/20 heat -5 74/74 cool,72 72 heat.^ 6 74/74 cool,72/72 heat '`9 74/74 coal,.)2/22 heat 8 74/74 cool,RJR heat 9 74/74 cool,72/72 heat 10 J4g4 cool,RJR beat I I i Sheet 1 of 1 Page 35 Obf i4m Hnt)dtag eQUEST Proposed Model HVAC Inputs 2 3 9 10 �I 5 6 8 7 i I Cart Storage Unconditioned 2 Reetmoms chilled Hater mils,electic resistance heat w co ze -3 Vestibule Unconditioned 4 Bar,Cocktail loonWDuhg Area Chilled water eois,electric resistance heat w economizer DCV 5 Office Chilled rioter.tolls,elemic resistance heat Chilled m¢er 6 Off< Wat water coils,electric resistance heat W elect wad, Z Office Chilled. eater coils,electri<re5lstancC heat w d j.d inr 6 Office Ch81ed water coils,electric resistance heat w economizer r'.9 Kd<hen -Chilled water coils,electric resistance heat SO club Shop IcholIDou water coils,electric resonance heat w economizer �1 WA Upgrade to.new chiller C30 ton),auto-sized In model estimated EEH 9 8 2 74/85 cool,70/60 heat g WA 4 74/85 cool,70/60 heat 5 74/85 coal,Mi heat 6 74/85 cool,70/60 heat 7 94/85 c.el,70/60 heat 8 74/85 coal,70160 heat 9�4/85 cool,70160 heat S1�/85 coal,90/60 heat Sheet I of I i Page 36 Electric Consumption (kWh) L . (XOOO) 40 30 - - - -- - - - - - - - 20 10 -XI "N Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 'San Feb Mot Atir ' ! M,a,Y - . l U I l - z'' ", 0 :" , � :-17 .1 :Oct: ticn',� ecTotal ` Run L 24.96 21.86 25.44 23.64 msi 27,21 28.58 29.90 24.24 23,13 22.54• 25.29 303.64 Run 2. 30.26 24.74 27.12 23.01 2175 23.04 24.04 25.15 20.49 21.55 25,68 30.42 299.24 Run 3. Run 4. Run 5. 1. Riverbend2 - Baseline Design (09/10/14 @ 09:58) 2. Riverbend2 Fancoll FIM - Baseline Design (09/15/14 @ 14:24) Gas Consumption (Btu) (XOOO,000) 150 - - - - -- - - - .__ a. _ - - - - - - - - -- - - - so - Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3.. Feb vh,r` "A lun N -fa'r Aug sup Oct Tarn, ..:�pin Runt 113.3 95.9 104.2 87.5 89.3 77,4 69.7 71.9 6016 78.2 97.4 1 113.9 i,959.i Run 2. 50.0 47.0 54.3 51'5 64d 63,8 62.5 65.3 47.8 49.8 48.3 50.9 656.0 Run 3. Run 4. Run 5. eQUEST 3,65.7154 Monthly Total Energy Consumption Page 1 Page 37 i Annual Utility Bills ($) (X000) 40 30 i 20 4. 10 Q 1 y y i Kh'ry� t f } j V � J t Y { . . DI 1 2 Selected Runs (see bottom legend) El PSE Elec 31 ComjInd Primary PSE Gas 31 NRes After 10-9-1993 PSE Elec 24 Small ComjInd 1Ph 1. Riverbend2-Baseline Design (09/10/14 @ 09:58) (annual bill: $33,993) 2. Riverbend2_Fancoil FIM - Baseline Design (09/15/14 @ 14:24) (annual bill: $ 28,928) 1 I I, I eQUEST 3.65.7154 Annual Utility Bills by Rate Page 1 Page 38 Monthly Utility Bills ($) (x000) 4 ~- - ~- - J Z Kl Au xv O ]an Feb Mar Ayr May Jun ]u| Aug Sep Oct Nov Dec Kiverbend2 - Baseline Design (89/10/11@09:58) Piverbendl_Fannoi| FIM - Baseline Design (09/15/14@V 14:24) eQUEST 165.7154 Monthly Utility Bills Page I PoV^3o i i Annual Energy Consumption by Enduse t � :,r �.,.• �. . . z Area Lighting '6a dl P �. t . . . . .t. - - __- . . . . .i. . . . , .t- . . . .i i ' S .Task Lighting-.. . .,. . . . . .,. . . f . , ,t. . . , . . .,. . . .$. . .�. . . .; . . . . .t. . . . . t . . . . .t. . . . . .i. . . . .t Misc. Equipment Exterior Usage • ' 3 i s f , t i t C t Ventilation ....::: •:..`• --�a , . .�. . . .r. . ,r. .. . . . . .�. . . . . . . . . .€. . . . . a. . . . . + � r Pumps and Misc. ' t E 3 t I i f t f f f t I t F f I Refrigeration . . . . . . i . . .;. . . i . . .�. . . I . . .�. . .t . . .� . . .t �. . - . . � . , . , .t. . . . . .�. . . . .t F � Space Cooling ;T'f• tv r r. . .j. . . 3 . . .r. . . f, . .t. . ? _ . . .+. . . . . ! +. . . . . _ ._ r Heat Rejection . . .r. . . : . . .t. . , . . .f. . . a . . .r. . . .r. . .t. . . h . _ . . s. . . . . i. . . . .�. . . . . �. . . .; Space Heating _ • i 1 I t 3 t I � i Ht Pump Suppl. . . .;. . .i , . .;. . . i . . .t. . . a . . .t, . . .t . . .i , . .t t. . . . . ; . . . . .i. . . . . ,. . , , .i Water Heating- . , .t. . . t . . .r, . . I . . .�. . . t . . .s. . . t. . .l . . F , r..,=+7 . . . . .t. , . . . ! . . . r 0 10 20 30 40 50 60 70 80 90 100 0 100 200 300 400 500 Electric Use (kWh x000) Fuel Use (Btu x000,000) Riverbend2 - Baseline Design (09/10/14 @ 09:58) Riverbend2_Fancoil FIM - Baseline Design (09/15/14 @ 14:24) i eQUEST 3.65.7154 Annual Energy by Enduse Page 1 Page 40 i I I Annual Electric Consumption (kWh) - (x000) 400 300 ' 7 O 200 14` ,ASY`.ts`"` '`'"i�, , .. *U�> ^d .ii, l*. r. '*'_'t.'. :.a *_i flh i N100 .. ._ .. . _ ... .. _. 1 2 Selected Runs (see bottom legend) Area Lighting Exterior Usage Water Heating Refrigeration Task Lighting Pumps &Aux. ® Ht Pump Supp. Heat Rejection Misc. Equipment Ventilation Fans Space Heating ® Space Cooling 1. Riverbenc12 - Baseline Design (09/10/14 @ 09:58) 2. Riverbend2_Fancoil FIM - Baseline Design (09/15/14 @ 14:24) I I i �I eQUEST 3,65,7154 Annual Electric Use by Run and Enduse Page 1 Page 41 Project/Run: Riverbend2-Baseline Design Run Date/Time: 09/10/14 @ 09:58 Electric_ "n7_(7kW7h) ' (Btu} (xOOO) (X0OO,000) 30 150 20 100 10 50 0 I'll, IL Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec ]an Feb Mar Apr May Jun Jul Aug Sep OctNov Dec 0 Area Lighting F] Exterior Usage Water Heating D Refrigeration Task Lighting Pumps&Aux. Ht Pump Supp. Heat Rejection Misc. Equipment Ventilation Fans Space Heating Space Cooling Electric Consumption(kWh xBOO) Act)"'�.: M"` Apr , av�� Oct'� -�' Nov% '.Dec', '%�Tcdral t 39 AU Space Cool 0.27 0.76 1.75 2.45 4.79 6,28 8.00 8.28 5.38 2.78 0,77 s25 41.78 Heat Reject, - - - - I - Refrigeration - - Space Heat 6.87 4.41 4,31 1 2.68 1.38 0.59 019 0,12 0.56 1.70 4.37 6A0 33.78 Hot Water - - - - - - - - - - - - Vent.Fans 3.23 3.01 3.43 3,34 3,78 3.75 3.76 191 3.22 3.34 3.16 3,32 41.29 Purnlas&Aux. 0,14 0.23 0.37 r0.46 0.65 0.74.. 0.79 0,84 0.64 0,53 0,25 0.14 5.78 Ex[.Usage 0.61 0.43 0.48 0.47 0,29 0.28 0,29 OM 0.50 0.52 0.59 0.61 5.60 Misc,Equip. P. 7.47 7.00 8.12 7.69 8n97 8M 8.92 9.34 7.46 7.71 7.42 7,69 96.78 Task rights - - - - - - - - - - - - Area Ughts 6,38 5.93 6.94 6,16 6.66 6.59 6.63 6.90 6.48 e.57 6.68 j.78.63 26,51 28,58-:4-429LIKIF, ,21f.24, �303,r4 Gas Consumption(Btu x000,000) Jan Feb 7 nir Apr _ 7_Jwr_-Aui-__-Sep Oct Scars cool Heat Reject. Raftimchascm Sp.c.Heat 63.3 46.9 49.8 36.0 24.6 13.6 7.2 6.5 12.8 28.5 49A 63A 403.3 HP Supp. - - - - - - - - Hot Water 16.5 15.5 1748 17.0 20.9 1919 19.1 19,6 14.3 15.2 14,9 16,3 207.0 Vent.Fans - - - - - - - - - - - Pumps&Aux. Ext.Usage Misc.Equip, 33.5 31,4 36.5 34,5 43.8 -43.9 43.4 45.7 33.5 34.6, 33.4 X5 448,8 Task Lights - - - - - - - - - - - Area Lights - Total 113.3 gtjs. Ig4b2 :77.4 69,7 71,9 6016 78.2, 9ii'4' 1139 iss eQUEST 3,65.7154 Monthly Energy Consumption by Enduse Page 1 III Page 42 i Project/Run: Riverbend2-Baseline Design Run Date/Time: 09/10/14 @ 09:58 Annual Energy Consumption by Enduse "ElectriHty'. �='Natutal Gas Steam Chilled Water „kWh{xBBA} `' atu ath Btu Space Cool 41.78 Heat Reject. Refrigeration - - space Heat 33.78 ( 403.3 Hot Water - 207.0 - -' Vent.Fans 41.29 - - ....._ Pumps&Aug. 5.78 Ext Usage 5.60 - Mlsc,Ci0p. 96.78 (j '446 8 Task tights n. Area Ughts 78.63 Total:.'I' 30'3.69 1j859.i El Area Lighting Exterior Usage Water Heating ❑ Refrigeration Task Lighting Pumps&Aux, ® Ht Pump Supp. Heat Rejection IN Misc. Equipment -t* Ventilation Fans Space Heating ® Space Cooling 26% I 40200%. 14% Rill r +'i., 32°lc11% . t� 38%N 14% ....21 Electricity Natural Gas i i i I eQUEST 3.65.7154 Annual Energy Consumption by Enduse Page 1 Page 43 Projecy'Ren; Riverbend2-Baseline Design Run Date/Time: 09/10/14 @ 09;58 Monthly Utility Bills (XOOO) 4 3 ZA K; X X Ai 2.xX i X -M, X 0 ]an Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PSE Elec 31 Corn/Ind Primary(annual bill $ 22,468) PSE Gas 31 NlRes After 10-9-1993 (annual bill; 11,525) Total Annual Bill Across All Rates: �=33,993 eQUEST 3.65.7154 Monthly Utility Bills-All Rates Page I Page 44 II Project/Run: Rivemend2-Baseline Design Run Date/Ttme: 09/10/14 @ 09:58 Electric De Demand=(Btu/h) (X000) 100 400 80 - 300 60 200 40 20 100 0 1 0 ]an Feb MarAprMayJun Jul Aug Sep OctNov Dec Jan Feb Mar Apr May Jun Jul Aug Sep OctNov Dec 0 Area Lighting 0 Exterior Usage l Water Heating 0 Refrigeration 10 Task Lighting IN Pumps&Aux. Ht Pump Supp. Heat Rejection IM Misc. Equipment E9 Ventilation Fans Space Heating Space Cooling Electric Demand(kW) Mar Apr May lurfff- �:' .; , V, ou I, � .-,- --I Space Cool 12.58 12.54 14.65 18.58 26.96 29.44 26.28 27.58 13.86 182,47 Heat Reject. Refug.rad.. - Space Heat 19.25 I535 12.55 47,35 HIP Supp. - - Hot Water Vent.Fans 5.77 5.77 5.77 5.77 5.77 5.77 5.77 5.77 5.77 S.77 5.77 5.77 69.29 Pumps&Aux. r0.15 1.37 127 L21 1.21 1.21 1,21 1.21Ln 1.21 )J5 OJ5 11,68 Ext.Usage 1.55 - 0.43 OA3 - - - 0.17 0.86 0.86 L55 L55 7,42 Misc.Equip. 33,09 32.84 33.09 33.09 33A5 33.15 32.15 33,15 33.09 33.09 33.27 33.09 396.25 Task Ughe, - - Area lights 13,40 13.71 13.40 1140 13.63 13.63 13.32 13.63 13.40 13.40 13.54 13.40 L61.82 'Total' �3,q2� 66,27 t _66;80, ;:58,56 72-34 80.21- 69,64 ' "'52 876,013 Gas Demand(Btu/h xOOO) Jan Feb Mar Apr",,, 'May, 3tua Jul Aug Sep Oct Nova .DecTobal Space Coo Heat Reject.: R.fingeraflon - - - Space Heat 213.5 125.6 137,7 108.3 653 4T2 36.0 30.3 83.6 110.1 186.8 184.9 1,329.3 Hot Water 21.7 45.8 45,9 45.4 43.1 41.3 39.8 36.9 17.3 33.2 18.3 20.9 409.7 Vent.Fans - - - - - - Pumps&A.. Ext.Usage MISC.EqUIP, 142.4 162.9 162.9 162.9 164.9 1649 141.6 167,2 15119 1624 151.4 142.4 1,878,Z Task Lights - - - - - - - - - - Are.Lights - - - - Total 377.6 11c 34A, 346, 3 1 16,1 1 5 27 3.5 2173 234A 252.8 3069 35b,5 �:7- 348,-3 "31617:2 eQUEST 3.65.7154 Monthly Peak Demand by Enduse Page I Page 45 i Project/Run: Riverbend2-Baseline Design Run Date/lime: 09/10/14 @ 09:58 Annual Peak Demand by Enduse I Etectriclty ''-Natural Gas Steam Chilled Water .`_ ..kW '„Stu/h(.000) Btu/h : Btu/h Space cool 27.58 - - - Heat Reject, - Refrigeration - Space Heat 213.53 HP supP. Hot Water :` 21.67 - Vent.Fans 5.77 - - - Pumps&Aux. 1.21 Ext.Usage 0.86 - - - Misc.Equip• 33.09 142.44 - Task Lights - Area.Lights 13,40 ". BS,B2 :. '. 377,64. . .. .;�. Area Lighting El Exterior Usage Water Heating 0 Refrigeration Task Lighting IM Pumps &Aux. ® Ht Pump Supp. Heat Rejection Misc. Equipment 0 Ventilation Fans Space Heating ® Space Cooling 16% 38% 0c 6% 34% yL r+F; 457% 7% Electricity Natural Gas i i i i it i eQUEST 3.65.7154 Annual Peak Demand by Enduse Page 1 Page 46 Project/Run: Riverlbend2 Fancoll FIM-Baseline Design Ron Date/Time: 09/15/14 @ 14:24 1 urni (kWh)7;Z� onsGas Consumption (Btu) Electric (XOOO) (X0O0,000) 40 - 80 30 60 - 20 40 10 20 f 0 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarApr MayJun Jul Aug Sep Oct Nov Dec Area Lighting Exterior Usages Water Heating Refrigeration Task Lighting Pumps&Aux. Ht Pump Supp. Heat Rejection Misc. Equipment Ventilation Fans Space Heating Space Cooling Electric Consumption(kWh xOOO) Jan M -A '14 ',Un X--�-%�Jul- -Sao Oct z 'Nov, Dec TofeC D� May ''Aug.Aw Space Cool 0.01 0.09 0.13 0.75 1.31 2.52 2.51 L28 0.21 0.02 8.84 Heat Reject. - - - - - - - - - Reffigeration - - - - J. space Hem 11,62 7.40 6.95 3.79 Iles 0.40 Oa7 0.04 0.38 2A6 7.28 11.15 5193 HP Supp. - - - - - - - - Hot Water - - r - - - - - - - - - Vent.Fans 4.18 3.90 4,50 4.32 5.23 5.19 5.20 5.41 4,16 4.32 4.10 4.29 54.79 Punnica-SAm. - 0= 0.04 0.05 0.17 0.28 0.41 0.43 0,23 0.07 0.01 - 1.68 Ext.Usage 0.61 0.43 0.48 0.47 0.29 0.28 0.29 0.52 0150 0.52 o59 0.61 5,60 Misc.Equip. 7.47 7X0 SA2 7.69 8,97 8.99 8.92 9.34 7.46 7.71 7,42 7.69 9&78 Task Ughts - - - - - - Area Lights: 6.38 5.98 6.94 6,56 6.66 6.59 6.63 6.90 6.48 6.57 6.26 '6.68 r78.63 sqtmll 20 2 j 25.15 -25,68' 10�42-- -2E9,24 4 11 ;04r 41;", Gas Consumption(Stu x000,000) Jan Feb .;Mar',', Apt- I" 'Jun Jul Aug Sep Oct Nov',- Dec Total.e�-� space Cool Heat Relect. Refrigeration Space Host HP Supp. Hat Water 16.50 55.58 17.87 16.97 20,85 19.87 19d04 19.60 14.32 15.18 14.97 16.38 207A4 Vent.Fans - - - - - - - Pum,ps&Aux. Ext.Usage Mac.Equip. < 33.52 31.45 36.47 34,52 43.84 143.90 43.44 45.74 33AS 34.58 33.38 3C49 448,82 Task Ughts - - - - - - - - Area Hunts - - - - - Total 50.02 :47,03 --`,54;35 5f.49 �64,69'1.,-, `63.77 r 62.0 65.35 47.80 49;76 -48.35 7�50nt?--,-655,9z eQUEST 3.65.7154 Monthly Energy Consumption by Enduse Page 1 Page47 i I I Project/Run: Riverbend2_lanced FIM-Baseline Design Run Date/Time: 09/15/14 @ 14:24 Annual Energy Consumption by Enduse Eleckrrcity' '':"Natural Gas" Stearn ri Chilled Water (x0oq)., ; 'MBtu Btu _ Btu Spacs Cool &04 - - - Heat Reject Wrigetaton - - - space Heat 52.93 HP supp .Hot Water '207.14 Vent.Fans 54.79 - Punfps&Aux, 1.60 E# Usage 5.60 -,.. Misc,Equlp. 96.73 448.82 Task Lights Area Lights 73,63 - Tetsl '299.2' 6S5.97 Area Lighting EJ Exterior Usage Water Heating Refrigeration Task Lighting M Pumps &Aux. ® Ht Pump Supp. Heat Rejection Misc. Equipment IM Ventilation Fans Space Heating ® Space Cooling 26% 3% - 68% 18%— 32% 18°!° 2% Electricity Natural Gas i I eQUEST 3.65.7154 Annual Energy Consumption by EndtlSe Page 1 Page 48 ProjecURun: Rlverbend2_Fancoil FIN-Baseline Design Run Date/Time: 09/15/14 @ 14:24 I Monthly Utility Bills ($) (X000) 3.0-� � --- _. _ , .. __ __ .. __ �-...--___ _ ,. f 2.0 x r. ! x r. tF>` t 1,0 f r M p r as t t't k r f �- 1.•: 1, 4 •. } � y0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec PSE Elec 24 Small Com/Ind 1Ph (annual bill: $ 21,722) PSE Gas 31 NRes After 10-9-1993 (annual bill: $ 7,206) Total Annual Bill Across All Rates: $ 28,928 Ii eQUEST 3.65.7154 Monthly Utility Bills-All Rates Page 1 Page 49 Project/Run: Riverbend2 Fancoll FIM-Baseline Design Run Date/Time: 09/15/14 @ 14:24 Electric Demand (kW) Gas Demand (Btu/h) ........................... (XOOO) 100 250 80 - - - - - - - - - - 200 60 150 40 100 20 50 0 0 Jan Feb Mar AprMay3un Jul Aug Sep OctNov Dec Jan Feb MarAprMay Jun Jul Aug Sep OctNov Dec EJ Area Lighting El Exterior Usage Water Heating El Refrigeration 11 Task Lighting IM Pumps&Aux, Ht Pump Supp. Heat Rejection IM Misc. Equipment RJ Ventilation Fans Space Heating Space Cooling Electric Demand(kW) A-- -j6 Jim Feb X99ec,, Tare pr er on Octq Space Coot 9118 14.47 1633 14.23 15.21 69.41 refrigeration - space Rest 44A4 28,76 '30,28 20.16 19.07 6L74 30.96 235,41 HE supp. - - - - - Hot Water - - - - - - - Vent.Face 8.57 8.57 6.57 8.57 8.57 8.57 8.57 8.57 8.57 8.57 8.57 8.57 102.87 Purrips&Aux. - - - - - 1.12 1.12 J. 1.12 1.12 1.12 - - - E.5.60 EA.Usage 1.55 1.21 L42 L21 - - 0A7 0.86 1.55 1.16 1.55 10.69 Misc.Equip. 3038 30.36 32.98 30.38 33.15 33,15 32,15 33.15 33.0s 33.18 12,23 =3a 364.58 Task Ughlue - - - - - - - Area Lights 13.71 1171 9.67 13.71 13.63 13,63 13.32 13.63 13.40 9.60 10,95 13,71 152.63 Otal -98;65- 8263 82,92,- '74;03 65,65 3 8 0�1 -7f 4 {,70 86 ",n 25 7298 -94.65 0 Gas Demand(Btu/h xOOO) Jan Feb Mar Apr Jul Aug $-p Oct Nov Space C0.1 Heat Reled. Refrigeration Space Heat Hip supe. - HotWater 45.0 4519 45.9 45.5 40.8 39.2 37.7 36.9 3913 40.3 41.8 43,5 -5mg Vent.Fans - - - - - - - Punnps&Aux. Ext.usage fuse.Equip, 162.9 162.9 162.9 162.9 C167.2 167.2 167.2 167.2 162.9 162.9 1629 1629 1,972e Task nights - - - - - - - Area lights - - - - Total 207.9 2Q8.8 '208'9 Z W'4 206,0 x ,206,4 204.9 204.1 20212 2031 ',204,7 i 206.4, , Z,473.� eQUEST 3.65,7154 Monthly Peak Demand by Enduse Page Page 50 i Project/Run; Riverbend2_Fancoll FIM-Baseline Design Run DateJTime: 09/15/14 @ 14:24 Annual Peak Demand by Enduse - .Elettr{City ryatural Gas- steam Chilled Water '' ..BW '-:: Bto/h(Xiown Btu(h ' Btu/h . .e - _..-_ _.. Space Cooi - - - - Heat.Reject. Refrigeration Space Heat 44.44 HP Supp. - Hot water - 45.95 Vent.Fans &57 Pumps&Au, Ext.usage 1.55 Misc..Equip. Je.38'. 162.90 Task nghts - Area tights 13,71 { - Area Lighting El Exterior Usage Water Heating El Refrigeration Task lighting M Pumps &Aux. ® Ht Pump Supp. Heat Rejection Misc. Equipment i Ventilation Fans Space Heating ® Space Cooling 14°l0 O 1°!° i rM� 22% Q 45 Electricity Natural Gas i i I I I i i III eQUEST 3.65.7154 Annual Peak Demand by Enduse Page 1 III Page 51 i i I O is 2 is 2 ii is i= N ti b4 Rj UZ UZ UW UZ US � 1 oc� sm 015 sm Oc- zm 00% (Jm (Jm Gm ()m N Um j i oo O 6 02 (J O o OU O OG o Oh a O� o O r r O N N Z 4 m 2 NoK 0 0 Z No a? Z tn� m e Oa tt0!!` O O O > 5 a > > fd U W W U hPiU o � ¢� M T o Vj aq v w �-� a0 v c aQ v a a0 rc a SA 41 O 0� O U a G m N N rn '� 2 z z N `� m N IVLLi rn ti W E Z 3 (? vl �' ry 'S to N z y z z z z m m z 3 z rn y p N N 2 O N _ H a 14 N N d o N N E o N N Ul W b b S `d c c W 2 N E a N E E E N E = E 0 N E E E m N E E N E _ a a I i a dd ry m m m 2 c c 2 i Um NN � Um Um Um Um III ov o9 0 0 N (J c O U U U U o Ua'S o U� o OV ov UL O O UU cq • Q'F � 2`vi 4 tr c q.. � 2 �c �c Z 4 i?'i v D pU O 7i 00 H c o n m o 2 0� 2 c 2 2 0¢N pL aS3 pE « > ny y Q N O c C N C C O �E• r � �LL � � �� .- � Fw �W m Gi o o a - a€ E a - ESE - a€ o° p, va S P N N m mxcli tYt O � a. Kt a ttN O D U a �N U a KS U 7 a KN U U U 7 � KN N 6 W N d d d y N d U y O N o f o ~ s w z m z E N 2 3 E N ? E 'ovi N tLS y E z z w N y E `o E E E E E E E E +a E N � '� E � �j v p w = v E W N N 2 W N W y W W W W G W % N N ? 5 Z U dw w w w a W I I i f � } \ \ , \ 2 : \ . \ ; . / ! ! ? / t - � / \ [ _ \ ) / ) 7 . ® � ) k � � \ ` i a xz m xm pS x� n� x= m »P sm h 'i ON m p� o`Y S orc m p'¢ um � um � c7� m um um c € OE `€ 8 LL UA U� U� m UH Un U U O U U Mj Old .Q h h m m c c a p j➢U 41a VIa N Nu .Q �C llQ m� N� as O �J ° 1 C m KN p U J a RN p U W •n KN p U W a llN O (J p Q KN p U p N T F-' a c 2 c s d a'II c a _ r C { EN c 5 mN a EN c EN 5 EN c N � I C/] • Q N � ac N O a N O a in � d VI Y v35 p `4G E W VI m N N w E Z ro E E `o Nro S N a `n E N c E a N c c E N E E E E N E E N E E to o o m i a' ct' I�i W m� o mh Ae O1 c � mE c c 2 c i O i O is` zY` st' sx N ZF xF 2F SF- � n U� v Um N Um n c am c c c c U� —c o� o o{ �� UH og UN Uy Uu N a'3 N� o NN o� .10 c o � a U Q 1 T O i [U] II O 5 9 a v o 2E W � N � W W wU4' N � 3 � Z y W N y � Z 'N'N W c9 Z N •. Z H Vi [/j o rci c c f( E E N E E N E E E_ E E > E E E V) w Zw W ) � . [ \ j I . \ \. rq § . \ % ; \ � ! ! & / t : � }\ \ ® � _ \ ° ( I / 2 G _Directed Engineering Study cent. 5.4 FIMS CONSIDERED BUT NOT INCLUDED IN THIS PHASE The following FIMs were considered and are recommended for further study in a later phase. • 03.01-GC Upgrade HVAC to VRF o This measure was not selected per owner criteria. i i i i I �itstryr PROPRIETARY ANP905GENTIAL )M1%%u NMly I Directed Engineering Study cent. 5.5 UTILITY DATA i I I ill InStCl� PROPRIETARYANp ggENTIAL X�INrtnli.k m ! i 0 N V N H i i ( i Y Q v m Q a W X O N Ol � V yl% I W P N m I Przotect i Building; Address' r •"r Square Footage AnaiysSBate Baseline"Pertgrman $¢mmary for BJ1J2p7,3 to ce 6J1J2g14'i Vafue y(, Units elf a Y 3y O tl2i3 ` y2F�Hi12l5tlrR; nlArit114- )>east=i5`errlaad;{nia2S',`g.N.�Yi tv,�31Ve '�:��,;;s= A. Baseline'Performance Metrics 6f1�2g13 tg :Sf1/2014. EgAPgY.Gost f/tif{ty:Co`st'[t}tgifslty ,':;"ri; NO t E�jeKgy USA intensity EFett"ric Oemand:Inten`sity �; �-�' CO2E Ejyissfodf.TittensiLjt, ',-x`�', f1�Bd}�jS[ARSwre ,•,mi,�"= IIIIIIIIIIIIIIIIIIII lII ve ICIRI eIl Colt II hIII III i r e@ill � Riverbend�18 HoleII Golf ICIoIIuIII r�se�ENERGY STAR SenchriSkB Hole Golf Course II 20T6 National Median(ES Some SO) kBtuisf/yr 103.9 Best in Class(ES Score u 3 r r Insights , . 7 An ENERGY STAR score of 75 indicates thata es. fadlity performs better ' ; a •than 75%of similar facilities;In this case Rmer)l¢nd lB Hole GplfCaurse : .:.: • ..: M .� .� ��... is a Poor performer,likely achieving an ENERGY STAR score�bglow 75 (Score 75) jllvullil6lpuli"iild 8 Hole GolfouIIIgIIlilil I IB II,!s i d ? 4 rse RiJerbegd LS'HoYe Golf Courae CeECs Benchmark Benchmark Benchmark 11 Building Type 231 CBECS Restaurant Benchmark gllllllgilllMefdi 9; IIIII 193 u CBECS Ia the U,5 bepartment`of Energy's Energy infglmdtkm:AgemY xommercial bwli ing energy ronsumptipn survey that Provtdesa high r �kr level Wok at average lon kHng performance by bmldm9 tYPe IIt this case r yk 'RWerbeed 18 Hole GoIFCourse Is a 400tl performer wRh an Energy t)se '" f J ?tgtegslky belgv;'tho rtatroPai�avgraggfiS'the begchrrie[k¢uUdtng eype i Riverbend 18 Hole Golf Course Annual Cost by Utility Type Electnthy, $30,699 $jyr ` Natnral Gas $11,041 $jyr 26% ? Purchased Steam Energy water/Seweru $0 $}yr Other Non-Energy $0 $Iyr �^ Total $41,740 iny, I i i I Y Electricity Natural Gas M Purchased Steam ■Other Energy awater/Sewer of Other Naa-Eaergy Riverbend 18 Hale Golf Course Annual Energy Use by Utility Type udItyType Vale eut —�_ __., _- — ------____-- Electricity 95.2 ketigia yr Natural Gas 97.8 kBtu/sfjyr ._____.._._..... .f �' ' Purchased Steam 0.0 ketojsf)yr (g Other Energy _,__, Total 193.0 kBanaljyr r { Y e 4 t WI l� f s ■Electrclty n Notmal Gas N Purchased Steam M Other Energy Riverbend 18 Hole Golf Course Annual GHG Emissions by Utility Type Utility Type Value Greenhouse Gas Units ElecCricity 121.1 MTCO2e $d. . Natural Gas 58.6 MT CO2e I Purchased Steam 0.0 MT Cote Other Energy 0.0 MT CO2e 331 Total 179.8 MT CO2e k 4 ®Electricity ::;Natural Gas IMPurchased Steam ®Other Energy I I I Page 62 i I I Riverbend 18 Hole Golf Course CBEC5 End Use Breakdown E .u n Building Type Restaurant 1% Ilr�u yu'IiPhluly I III IIII�I I "fl(It�ECo End Use / value On kBtu) '.. LL'r'"'Y° Heabn9 248! 539582 AeB7getd8oR''�N" Cooling �� fr Sfi 148 338 ` 12°!u + a; '� FansB Pumps 73/ 1 167120 - p'sh 'L;u .s}rrrgr.+i, DHW 491q � 215391T Lights - 128(o i 279172 Cooking ,. 21AJ j� 466992 s £ t+s 7a 4 fit'�l Refrlgerat,on 11 8/ I 257,709 Plug Loads 39f 85903 Ext Lights,._....� 09k _ 14883 •.^ .+ .r .. .... Total 100% 2,180,088 �5 r "Herding ai Il Fansj Umps W DHW a ligltts al Caleklog e Ref4g O iclug toads miMilsc Electricity Use by End Use Nat.Gas Use by End Use 700,000 600 — 600,000Soo 500,000 � G 400 — j 400,000 .tNft{" i,;..r P:'s t. OER m 200 �+ 200,000 2 200,000 __ 100 Electricity 14oturrl Gas I I I I i , Page 63 Riverbend 18 Hole Golf Course Electricity Cost Chronological $3,500 $2,500 - y `a '°- $500 �14130�'i1�1�0 ylsiti°��Y'1�0�ePi�oi�i ltio M1lsiti0�31h\r h�4�yx'r v \Y 0 11�9�"A��9��'� 9��'�� i�i��N N p b1ti�� :1�NP, NIP N kWh vs HDD Annual Comparison 450,000 11000 { '� 400,000 -- ------ 1,400 11 350,000 11200 3 300,00 1,000 a 250,000 Oa 0 800 E 200000 -- a G00 d 'n 150,000 0 100,000 400 c 50,000 200 T 2011 2012 2023 2014 kWh -:3-NDD I I i i Page 65 i 1 B r Y )an 1,112 1,069 1,173 Feb -- 987 972 986 Mar 1078 1,023 932 Apr 328 912 901 _836_ 1— May _ _ 945�� 893 821 836 Jun � 824 816 754 JW _. 780 779 732 Aug 757 777 726 Sep 748 793 780 � Oct 919 955 974 Nov 1,099 1,005 1,086 Dec 1,209 1,060 1,230 � — Riverbend 18 Hole Golf Course Natural Gas Profile by Month ------------ 1,400 --.--_ ____. _._..._.__ ...._...._.. .._.. ... ._..--_....... 1,200 -- Boo 600 400200 0 Jan rep Mar Apt May Nn Ad Aog Sep Ott Nov Oec a 2011 W 2012 a 2013 ■2014 Riverbend 18 Hole Golf Course Natural Gas Profile Chronological - . E _ 'I]T - ) k , 9 g _ '- S ' .� I� 600 3 � 400 Y- 3 2000 El 31, ti011 ti0�y 0°"h ry61y �O>1 tilt ti�1ry ry�,� ry0bry 06,E 'V v ry0y3 ryo13 ti6s3 ti�� ya ryOM1� ry0�6 ry6,P �O�d ry6�a h646 31��ye 9�N\ 11� ��ti) 9�1� 5�ti� 91ti� 9�� 5� b�6'� I to Gas Therms(V) l 11 Page 66 Riverbend 18 Hole Golf Course kWh vs OAT 90,000 E 30,000 10,000 395.19X.8535.2 R'=0,154 0 0 10 20 30 40 50 60 70 so Average Monthly Ortstde Atr Temperetare(Degrees F) Riverbend 18 Hole Golf Course Natural Gas vs OAT ------------ -------------------------------- ------------------ ------- ----- -------------- y--1 2.7 46x+1 576.9 400 200 0 10 20 30 40 so 60 70 go Average Man day OntsideAlr Temperature(Degrees F) Riverbend 18 Hole Golf Course kWh vs HIDE) Riverbend 18 Hole Golf Course kWh vs CDF) 90,000 y=33.852x+26120 50,000 501000 W=0.2246 y -14,711x+30276 2 40,000 W 0.0367 40,000 30,000 10,000 0 0 50 100 150 200 250 300 350 400 0 100 200 300 400 so flaraing Degree Days c0,dagV,gveyS Page 67 i r v 3 > N N E 3 y, •��5�i.Ft I 9 LL O m m T E o ° � tz. ♦ � ,. i F o z � } � :Yy+jj �N 1 �[� •� I W � ❑ m � � W r .P .k`�t N u Z ry O { Z,•+ c N w h s WIr N N i 50 . k a m ' W � N O U S U U S U 41T! N N L V W N a w H F F H f H 01 N N N N W }y N w d © G M1) j N N w a O V N a 0 a m N j W ' m o" o" o" o a 0 > LL O a N H C N C •� c .... �000u j v U u3 II 11 II II II 11 '^-� m O Uw � � m oO >,Q NUpe aa' S E E1" am c o F- 9 C LL W y N q w F' � y O• �' ti C C N O � m O N L S E"' )_ �O •`� C V V' O Q. O G O W t9 '4 a) N d E E o_: K N 0 U` Z ] +D tY E O a m E V m v > O C1' LW E >r , Umo > cczl2 a m � wwwar Q W 2 Uf - LL 6 02N1i V W V F > nf- US i ® June 24, 2014 llaMYom6nUding City of Kent— Riverbend Golf Course HVAC Investment Grade Audit Proposal To: Alex Ackley— Facilities Superintendent; David Gilmore—Building Systems Supervisor From: Andrew Williamson—Account Executive; William Pokorny— Program Manager Project: City of Kent— Riverbend Golf Course HVAC Subject: Investment Grade Audit Proposal Alex: The City of Kent has expressed interest in analyzing and improving the infrastructure of their existing facilities through a performance-based contract with McKinstry Essention, Inc. (McKinstry). This letter of intent will provide the guidelines for which McKinstry will provide the following tasks: 1. Conduct a Directed Engineering Study at the target facility. 2. Develop a comprehensive Energy Services Proposal for selected initiatives. Proiect Descriotion McKinstry Essention (McKinstry) is pleased to propose an Investment grade audit proposal for the City of Kent's Riverbend Golf Course. The City is interested in improving its HVAC infrastructure, electrical connections, and architecture through a performance based contract with McKinstry. This proposal will provide the guidelines for which McKinstry will provide the following tasks: 1. Complete the Investment Grade Audit of the Riverbend Golf Course to analyze and provide a 4-pipe mechanical systems replacement solution for the City of Kent. 2. Develop a comprehensive Energy Services Proposal for the identified systems and initiatives. Additional measures will be considered to improve the Department of Commerce energy grant opportunity. 3. Identify a scope, project schedule and financial package for project implementation. 4. Prepare a grant application for the Department of Commerce grant funding's September 18"' deadline. The investment grade effort is intended to lead to the implementation of facility improvement measures. The study 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 the City chooses to ask for them) and construction schedules. This study will take advantage of, but not be limited to, the engineering effort from the previous audit at the facility(ESP dated June 10, 2010), This will be a collaborative effort with the City of Kent. The study will be a product of the direction McKinstry receives from the City and It is anticipated that the information contained in the study will form the basis of a proposal and contracting documents. i The specific deliverables associated with the investment grade audit can be found in Attachment A. j i McKinstry PO BOX 24567 Seattle,WA 98124 Ph: (206)762-3311 i li Page 2 of 3 Timeline and Milestones i McKinstry will Initiate this scope of work immediately upon acceptance of this proposal. 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 Kent 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 possess a high probability for implementation based on client needs and the Department of Commerce grant opportunity. During this time, McKinstry will provide a detailed measurement and verification plan for the energy savings. i The following are proposed milestones: 07/03/2014—Investment Grade Audit kick-off 08/28/2014— Pre-Final meeting to present agreed upon scenario details 09/04/2014—City review and comments/direction given back to McKinstry 09/11/2014— Final scenario details delivered to City 09/17/2014—Grant application and materials given to the City to submit. 09/18/2014—City submits grant application to the Department of Commerce Criteria for Implementation: It is the City of Kent's intent that McKinstry will implement all approved projects that meet the project criteria: ➢ The City of Kent has agreed to infuse capital into the project from facility reserve funding. The City anticipates this funding is on the order of magnitude of$500,000. ➢ It is anticipated the City will pursue energy grant funding from the Department of Commerce. This funding is intended to cover 1/4 of the project costs. ➢ McKinstry will pursue utility grant funding from Puget Sound Energy. ➢ For implementation, life cycle cost analysis will prove the project to pay for itself within the intended life of the equipment. All fees assessed under this letter of intent will be included in the final implementation costs. In the event that McKinstry is unable to recommend projects that meet the criteria above, the City of Kent has no further financial obligation to McKinstry. However, if the recommendations meet or exceed the 'Criteria for Implementation"(list above), and the City of Kent chooses not to enter into an agreement with McKinstry to install the projects, the City will reimburse McKinstry for its time and expenses not to exceed $14,602. All associated information, including deliverables, will become the property of the City of Kent upon final receipt of payment. Please signify acceptance of this Letter of Intent by signing below. i Letter of Intent Authorized by: Alex Ackley Andrew Williamson City of Kent McKinstry- Energy Services ', Signature Signature Date: Date: I McKinstry Co. PO BOX 24567 Seattle, WA 98124 Ph: (206)762-3311 i Page 3 of 3 Attachment A Directed Engineering Study Deliverables i The Directed Engineering Study for the City of Kent will include the following elements: 1. A description of the facility and a description of the mechanical and electrical systems which shall receive ESCO Equipment and ESCO Services; 2. The cost effective Facility Improvement Measures (FIMs) to be installed or caused to be installed by the ESCO and a description of the FIMs analyzed but disqualified under the cost effectiveness criteria; 3. A description of the services that the ESCO will perform or cause to be performed on or in the facility, including but not limited to engineering,construction management,the operations and maintenance procedures for use on ESCO Equipment,training for facility personnel, warranty service provided, and equipment maintenance provided; 4. The Maximum Allowable Project Cost, itemized in detail, which may be amended to represent actual costs; 5. Recommendations for replacement of existing equipment, along with recommendations for improvements to existing equipment and operating conditions; 6. The standards of comfort and service appropriate for the facility; 7. The baseline energy 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; 8. The estimated energy savings and energy cost savings that are expected to result from the installation of the ESCO Equipment and from the ESCO Service, and an explanation of the method used to make the estimate; 9. The method by which Energy Savings and Energy Cost Savings will be calculated during the term of the Energy Services Agreement; 10. A description of how project financing (if required) will be completed; 11. A description of how the Energy Cost Savings will be guaranteed by the ESCO; 12. A description of how the ESCO proposes to be compensated; 13. The term of the Energy Services Agreement; 14. The Termination Value for each year during the term of the Energy Services Agreement; 15. The schedule for project completion; 16. The nature and extent of the work and equipment that the ESCO anticipates it will receive from other firms under subcontract I i i McKinstry Co. PO BOX 24567 Seattle, WA 98124 Ph: (206)762-3311 Qo try •fW SstNlmr i ® • e 8 e i ( � r ® • ® r i 0 i u i itn� mi m+ i®`iV�l,l�l�il�l�III i9i' a• i n u ��i i i• s .I Standard Rate(*, t} $ 136 $ 205 $ . " 27.3 Contract Rate(*, t} 119 . 179 239 0 • - • e . Trade Project Ma $ . 118 $ '$ : Plumbing/Pipefitter (*} 238 _ 208 :277 ,.-Sprinkler Fitter {*} . 130 195 260 Sheet MetaC( j 116 174 .. 232, Electrician " 122 183-° 245rvi Lighting Mal Worker(*}. ; 46 : . 69: 93 Carpenter(*)': 88 : 132 Laborer 64 " 95 = 1271 i Warehouse/Drtver(*) " ' 77 •. 115 " 1541 Cx Project Manager(*) $ 142 Sr. Cx Engineer (*} 128 192 -- 256i CX Engineer (*) 118 177 t 236 TAB Techniciah (*, t,-#1 J. 1215 187 2501; Start-up Technician (*,t; #} 136 205 - 273TI- '_I Site`Superintendent (*} t "` . . $ "" - 98 $ 148 $ ; 197 # Site Coordinator 69 104 138 ' Site Safety (*> 98 Project Engineer 101 152 20-2 Purchasing J CSR J Dispatch 73 110 - 46.' Administrative Assisfiant T69 104 138 I • All-Inclusive Rates per L&I Prevailing Wage Tables and Authorized Allowances per General Conditions for Washington State Facilities Construction,July 2013 edition. • Regular Time-Monday thru Friday,from 6:30 AM to 3:00 PM #-Shift Premiums(2nd and graveyard)percentage based on respective trade agreements _ * Truck&Rental costs per W$DOT/AGC(Premedia)Blue Book at the Stand-By Rate(No Fuel Cost). 3RD Party Rental Cost per Actual Invoice. t -Safety,Consumables&Small Tools Expense per GCs for WA ST Facilities Construction Proprietary&Confidential Effective Date: 201 POG Raleighli@H@NCKinstry.com 2014 Energy Services BIIIIn9 Rate Update-W Washington-2nd Edition Expiration Date OJA:2/28/J28(2015 1 s REQUEST FOR MAYOROS SIGNATURE � T ". Please Fill in All Applicable Boxes w Reviewed by Director Originator's Name: A x Ackl, De t/Div. Parks Facilities Extension: 5081 Date Sent: T1 Date Required: 01/20/15 Return to: Nanc CI `;. x50 4 CONTRACT TERMINATION DATE: 07/31/2015 VENDOR: McKinstr t1 sseni:ton, LLC DATE OF COUNCIL APPROVAL: 12/09/14 ATTACH T E'COUNCIL MOTION SHEET FOR THE MAYOR if applicable Brief Explanation of [5bcumerit McKinstry Essention,:LLC w"Ill provide labor and materials to replace aging Heating, Ventilation, and Air Conditioning (HVAC) equipment with a new and more energy effective system. The current system is 25 years old and has out-lived its useful life, this is a lifecycle replacement. This project is funded by Facilities Capital and a Department of Commercelnergy Efficiency Grant.` DV lol t All Contracts Must Be Routed Through The Law Department his area to be completed by the Law Department) ti, r §x # n '�� t Received: k Approval of Law dept.: 1 `" Law Dept. comments a. � �*°,*, k u� g L# m.s`.�•�.5 i �.r= ,. " "a. _ Date Forwarded to Mayor: Shaded Ares To Be Completed By Administration Staff 5p . Received: NEDRecommendations and Comments: < Disposition: F' 1 L Date Returned: ' the 1,"_IyO