PASBO Building Considerations for Vo-Tech Education

1. 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. Energy Types of Savings • Operational and Maintenance

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. 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 Case Study – Venango Technology Center

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. 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 Case Study – Huntingdon County CTC

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

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

19. Funding to Stretch Your Budget EnergyManagement • 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% Performance Contract Design-Build Approach: • Guaranteed energy savings • Maximize rebates, incentives, etc. • Final fixed price contract • No change orders (unless client requested)

20. Critical Building Updates 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 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

21. Utilize Energy Most Effectively EnergyManagement 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 Performance Contract Design-Build Approach: • Guarantee ensures a partner • Vested interest in project performance • Accountable for results