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

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

3. 3 What unique challenges are you facing?

4. 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. 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. 6 Types of Savings ●Operational and Maintenance ●Energy

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

8. 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. 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. 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. 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. 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. 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. 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. 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. 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. 17 Contact Information Collin Sandifer 4431 N. Front St Harrisburg, PA 17110 717-439-8349 Dave Kramer 2501A Sidney St Pittsburgh, PA 15203 412-680-5743 Thank you for your time What questions do you have?

18. 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. 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. 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. 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