PASBO Building Considerations for Vo-Tech EducationMarch 17, 2011

Pat AdamsDave Kramer Collin Sandifer

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Today’s Agenda

●Challenges Faced by Vo-Techs

●Review Performance Contracting

●Value of Performance Contracting

●Advantages and Opportunities

●Your School

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What unique challenges are you facing?

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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

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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

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Types of Savings

● Operational and Maintenance● Energy

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Types of Savings

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

savings

44%56%

Funding from Savings

Funding from Capital

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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

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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)

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When Does PC Make Sense?

●High utility costs or energy waste

●Antiquated equipment / technology

●Limited budget – leverage savings and capital

●Accountable to performance

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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

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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

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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

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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

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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

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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

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Contact Information

Collin Sandifer4431 N. Front StHarrisburg, PA 17110

717-439-8349

Dave Kramer2501A Sidney StPittsburgh, PA 15203

412-680-5743

Thank you for your time

What questions do you have?

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Performance Contract Design-Build Approach:

●One company accountability

●Training is emphasized

●Subcontractor management – part of turn-key project

EnergyManagement

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

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Performance Contract Design-Build Approach:

●Guaranteed energy savings

●Maximize rebates, incentives, etc.

●Final fixed price contract

●No change orders

(unless client requested)

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% 

Funding to Stretch Your Budget

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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

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Performance Contract Design-Build Approach:

●Guarantee ensures a partner

●Vested interest in project performance

●Accountable for results

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 

Utilize Energy Most Effectively