Johnson Controls, Inc. — 1 1/6 2/6 4/6 5/6 1/4 3/4 1/2 WAHOO PUBLIC SCHOOL SENIOR/JUNIOR HIGH & ELEMENTARY ENERGY PERFORMANCE CONTRACT FEASIBILITY March.

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Presentation transcript:

Johnson Controls, Inc. — 1 1/6 2/6 4/6 5/6 1/4 3/4 1/2 WAHOO PUBLIC SCHOOL SENIOR/JUNIOR HIGH & ELEMENTARY ENERGY PERFORMANCE CONTRACT FEASIBILITY March 17, 2015

Johnson Controls, Inc. — 2 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Implementing Wahoo Public Schools’ Priorities and Goals Achieved Objectives Financial Reduce energy and operating costs Capital Improvements Replace aging infrastructure Budget Neutral All costs paid through savings More Than Dollars and Cents Enhance personnel development and learning environment Guaranteed Outcomes Johnson Controls accepts performance risk

Johnson Controls, Inc. — 3 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Making “Cents of It” Performance contracting provides the financial means to: Support mandated and core mission initiatives Decrease utility costs Reduce deferred maintenance Upgrade aging infrastructure Promote financial and environmental sustainability $ $$ $$$ Cost Savings Performance Contract Payments Utility/Operating Costs Before Performance Contract During Performance Contract After Performance Contract Performance Contracting Funding Model

Johnson Controls, Inc. — 4 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Potential Facility Improvement Measures An opportunity for substantial energy efficiency and meaningful operational improvement at the Wahoo Public Schools facilities can be implemented through energy performance contracting. Facility improvement measures that would benefit the Wahoo Public schools include but are not limited to the following: Air Handling Unit/Roof Top Unit Efficiency Upgrades Building Envelope Chiller Replacement Efficiency Upgrade Control Optimization Upgrade Demand Control Ventilation (Carpet De-Humidification) Economizer Optimization Electrical Demand Load Control Optimization Electric to Natural Gas Conversion Hydronic Variable Pumping Kitchen Optimization Lighting Retrofit Efficiency Water Conservation

Johnson Controls, Inc. — 5 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Energy efficiency & an improved environment helps Wahoo students, teachers and employees prosper and achieve Students in well-maintained facilities: Score up to 20% higher on standardized tests than in poor facilities Demonstrate reduced absenteeism by up to 45% People who work in green buildings: Increase labor productivity by up to 16% Reduce health care costs and work losses by up to 29%

Johnson Controls, Inc. — 6 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Potential Energy Performance Contract could result in a utility reduction of $48,327 per year. The development and implementation of an energy performance contract at Wahoo Public Schools could result in a utility reduction of $48,327 per year. an energy performance contract could reduce utility and operational expenditures a total of $2,316,192 with escalation. The existing and future utility spend is shown in the table on the following slide. Over a Nebraska legislation allowed term of 30 years, an energy performance contract could reduce utility and operational expenditures a total of $2,316,192 with escalation. That savings stream would over the term would allow an energy and facility improvement project of approximately $1,250,000 That savings stream would over the term would allow an energy and facility improvement project of approximately $1,250,000. As a result of the project, Wahoo Public Schools would receive the following benefits.

Johnson Controls, Inc. — 7 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Potential Energy Performance Contract Improved Facility Functionality 18% Reduction in Utility Costs Improved Student Achievement Reduced Emissions Equipment Renewal and extended life Demonstrates Facility Stewardship Overall, the opportunity to make meaningful upgrades, solve facility operational challenges, and enhance the educational environment is available to the Wahoo Public Schools through an Energy Savings Performance Contract with Johnson Controls.

Johnson Controls, Inc. — 8 1/6 2/6 4/6 5/6 1/4 3/4 1/2 Next Steps: Nebraska Revised Statute At least fourteen days prior to entering into an energy financing contract, a governmental unit shall furnish public notice of its intention to enter into such contract, the general nature of the proposed work being considered under the contract, and the name and telephone number of a person to be contacted by any energy service company interested in submitting a proposal to contract for such work. The governmental unit shall also directly solicit requests for qualifications (RFQ) from at least three energy service companies relating to the proposed contract. Upon receiving responses to its request for qualifications pursuant to subsection (2) of this section, the governmental unit may select the most qualified energy service company based on the company's experience, technical expertise, and financial arrangements, the overall benefits to the governmental unit, and other factors determined by the governmental unit to be relevant and appropriate. The governmental unit may thereafter negotiate and enter into an energy financing contract pursuant to section with the company selected based on the criteria established by the governmental unit. (At this point the selected company will work with school personnel to provide a more “in-depth” engineering study and provide improvement recommendations based on the specific needs of the district. Upon completion; the improvement measures, cost and savings will be presented for consideration.) Prior to entering into an energy financing contract, a governmental unit shall obtain a written opinion from a professional engineer licensed in the State of Nebraska whose interests are independent from the financial savings outcome of the contract. The opinion shall contain a review of recommendations proposed by an energy service company pertaining to energy conservation measures designed to reduce energy consumption to the governmental unit.