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NEWS
THE MESA TRIBUNE | DECEMBER 5, 2021
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That is the �irst of a three-phase plan Falconer outlined that, with interest, runs $250 million. Thompson encouraged the board to accept the massive plan with Midstate. “This offers us the opportunity to move quickly on a very large scale,” Thompson said, adding the district needs upgrades in almost all of its facilities. “Big projects mean a lot of savings to be able to put away from the utility company and into your buildings,” Falconer told the board. “We’re redirecting money you guys pay in utilities to buy new equipment.” Telling the MPS board Midstate has done similar work with “50 some schools,” Falconer stressed it was a norisk, guaranteed-savings opportunity: “There’s a statute in Arizona for this. I have to guarantee this takes place. If the savings do not materialize, I’m responsible for writing a check to the district for the difference.” Falconer used the “guaranteed-or-wepay” pitch on several occasions in emails to Thompson over a year. Similarly, Thompson advised the board to use $75 million of federal stimulus funds “to bring cash to the deal” and reduce the debt. Midstate had suggested that as part of a sales push earlier this year. Falconer’s pitched a “total gross savings over $99 million.” That savings, he noted, assumed a contribution of pandemic relief funds to drive down the amount of �inancing. At an earlier meeting in September, Thompson told the board MPS talked to three companies about “the concept ... that allows for a district to enter into a lease-purchase of equipment with the idea that the expenses would be offset by the savings.” But his presentation did not identify the other companies; board members did not ask him for details on Midstate’s competitors. Over the course of two meetings, board members repeatedly said they were eager to upgrade the district’s HVAC – citing complaints from students, staff and parents that aging systems are not properly cooling classrooms. The corporate courting of Thompson began last year. By January, Midstate was performing
Randy Falconer of Midstate’s year-long email courtship culminated in MPS Associate Superintendent Scott Thompson urging the governing board to approve the first phase of a $250 “energy-saving agreement” with Midstate. (MPS)
an audit of “the 30 highest energy usage sites across the district” to create a “rough order of magnitude” concerning project needs and costs. Thompson did not respond to a question posed by the Tribune about the appropriateness of Midstate doing an audit to tell MPS what is needed. Midstate is a division of Veregy, whose website claims to be “an industry leader in energy ef�iciency solutions, solar and smart building technology” and has “delivered billions in energy performance contracts for clients in: K-12 education; local government; healthcare; transportation; higher education; federal government; commercial.” On Jan. 28, Falconer emailed Thompson links to Midstate marketing material that apparently planted the idea of using stimulus funds for HVAC systems. Also included was a photo of two masked students elbow bumping, with the headline “Create a healthier, safer environment for students and staff!” On March 13, Ben Madsen of Midstate apparently followed up on a conversation by sending a �lattering email to Thompson, asking for a lunch meeting: “Hey.... Dude! LOL. I had no idea you had that kind of knowledge of IT systems, integrations, infrastructure, etc.. To have someone in our industry and in your position with that kind of skill set
is awesome! I’m assuming you worked in the IT space??” “I’m a bit of a unicorn,” Thompson replied, asking for a virtual meeting instead. On May 13, Thompson sent a stern email to Falconer: “Again, I do not want a conversation about Orchestrate. Nothing you present should include this at this point.” Falconer’s answer: “Yes this was the original company information that was intended for you a month ago. Not board.” On Oct. 1, three days after the board approval of the Midstate plan, under the subject line “Potential issue,” Thompson emailed Falconer: “This could be a problem.” “Where did you get this?” Falconer responded. MPS did not provide any attachments that may have been sent. Again, Thompson did not respond to a Tribune query about what the “potential issue” was. After reviewing the emails obtained via a public records request, the Tribune asked Thompson what “Orchestrate” means, as well as other questions from his emails with Falconer. On Nov. 24, Thompson told the Tribune, “I appreciate you have many ques-
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