PASBO Building Considerations for Vo-Tech Education March 17, 2011 Pat Adams Dave Kramer Collin Sandifer

2 Today’s Agenda ●Challenges Faced by Vo-Techs ●Review Performance Contracting ●Value of Performance Contracting ●Advantages and Opportunities ●Your School

3 What unique challenges are you facing?

4 What is Performance Contracting? ●Performance Contracting ●Financial solution ●Help improve facilities ●Alternative to traditional construction ●Lighting, HVAC, controls, etc ●Focus on building life cycle (energy, maintenance, service, etc.) ●Proactive approach for Vo-Tech buildings ●Enabling legislation ●Up to 20 year payback (aligned with PlanCon) ●Since 2000 ●Qualified ESCO list

5 Leveraging Funds ●Leverage dollars already in current budget ●Reduce utility costs ●Energy efficiency gains ●Address critical facility needs ●Fund portion of project ●Partnership for performance = Savings

6 Types of Savings ●Operational and Maintenance ●Energy

7 Types of Savings ●Capital Avoidance Savings ●Energy savings discount costs ●Can be substantially more energy savings

8 Value of Performance Contracting ●Some ESCOs Offer: ●Comprehensive solutions (beyond low-hanging fruit) ●Complete building life cycle focus ●Full in-house mechanical, electrical and energy engineering ●Single responsible party for your entire project (design to commissioning) ●Accountable to long-term project success ●True financial guarantee

9 Alternate for slide above ●How performance contracting is different: ●Focus on ensuring the best first and long-term solution ●Single responsible party for your entire project (design to commissioning) ●Accountable to long-term project success Project Decisions (Development) Project Consequences (Performance)

10 When Does PC Make Sense? ●High utility costs or energy waste ●Antiquated equipment / technology ●Limited budget – leverage savings and capital ●Accountable to performance

11 Case Study – Venango Technology Center ●Concerns: ●Original equipment ● Antiquated technology ● End of its useful life ● Lack of control ● Maintenance drain ●Long-term solution ● Performance ● Maintenance ●Rising electric costs ●Limited budget for improvements ● Where would funds come from? ●Solution: ●Fuel conversion ●All-electric to natural gas ●17 new rooftop units ●Heating & cooling source ●Comprehensive lighting retrofit ●T12 to T8 conversion ●Replacement of pneumatic controls ● Full DDC control system ● Energy Management System

12 Case Study – Venango Technology Center ●Result: ●Comprehensive upgrade of major operating systems ●ROI - $70,922 annual savings ●Worked within budget constraints ●Savings and performance guarantee ●Avoided rising electric utility concerns ●“Quote from Pat” - Pat Adams Business Manager

13 Case Study – Huntingdon County CTC District Wide ●Concerns: ●Original equipment ● Antiquated technology ● Failure concerns ● Constant source maintenance ●Long-term solution ● Performance ● Maintenance ●Other Considerations ●Needed work complete before students came back to school ●Ensure infrastructure quality for the long-term

14 Case Study – Huntingdon County CTC ●Solution: ●HVAC System redesign ●Hot water boiler replacement ●Control valve installation ●Rooftop a/c unit replacement ●New Energy Management System ●Switch to natural gas ●Comprehensive lighting upgrades ●Indoor lighting ●Outdoor lighting ●Result: ●Designed with life cycle focus ● Performance ● Maintenance ●Comfort issues addressed ● Uniform learning environments ● Future reliability ensured ●Savings to help pay for work ● $139,464 annually ● $32,417 energy / maint. savings ●Successful project within schedule

15 Summary of Advantages to PC ●Partnership ●Match school’s needs and goals ●Work with school to deliver right project ●Guaranteed savings ●Funding source out of current budget ●Performance based improvements ●Address facility needs ●One company accountability ●Responsible from design to commissioning and beyond

16 Your School ● Handout ●Think about your school ●Performance contracting may benefit district if: ● Answer “Yes” to one or more questions ● Have current or future utility concerns ● Have aged equipment or upcoming facility needs ● Desire help with a long-term facility plan ● Interested in investigating further? ● Feel free to contact us at any time! ● Discuss your school’s situation specifically ● Determine if an opportunity exists ● Answer any questions you may have

17 Contact Information Collin Sandifer 4431 N. Front St Harrisburg, PA Dave Kramer 2501A Sidney St Pittsburgh, PA Thank you for your time What questions do you have?

18 Performance Contract Design-Build Approach: ●One company accountability ●Training is emphasized ●Subcontractor management – part of turn-key project Energy Management Bid-Spec Approach with Traditional Construction: ●Multiple source accountabililty ●Training is commonly cut-out ●Resources needed to effectively manage many moving parts A Partnership for Performance

19 Performance Contract Design-Build Approach: ●Guaranteed energy savings ●Maximize rebates, incentives, etc. ●Final fixed price contract ●No change orders (unless client requested) Energy Management Bid-Spec Approach with Traditional Construction: ●Savings not guaranteed ●Grants / rebates generally your responsibility ●Unknown final cost ●Change orders can increase overall costs by 30% Funding to Stretch Your Budget

20 Performance Contract Design-Build Approach: ●You have control of equipment and quality ●Holistic design that capitalizes on the interactions of the ECMs ●Emphasis on long-term building performance and cost factors Bid-Spec Approach with Traditional Construction: ●“Economic Value” drives types of systems and quality ●Focus on meeting specs, little concern with system interaction ●Emphasis on completing project and moving on Critical Building Updates

21 Performance Contract Design-Build Approach: ●Guarantee ensures a partner ●Vested interest in project performance ●Accountable for results Energy Management Bid-Spec Approach with Traditional Construction: ●Desire to move on to next project ●Projects may be “over designed” ●Not responsible for savings being achieved or guaranteed Utilize Energy Most Effectively