people. purpose. performance. Todd County Schools October 30th, 2013

Todd Co Notification dated 10/23/13 Notice of cancellation of effective November 1 st, Cancellation applies to the maintenance portion of the equipment covered under the previous Trane PACT agreement ending 12/31/2014. Option to reconsider needs for all equipment within the school district. Final decision targeted for November 4 th School Board Mtg.

Measurement & Verification (Note current annual cost is $12,165)

Credit Information List of Equipment communicated to HTS from Todd Co. BOE that is credit worthy. –Todd Co High School-- RTU #6 inoperable since 2009 –Adult Education Building-- 2 split systems that were replaced by Daiken systems during renovation –South Todd Elementary School– Owner decision not to repair due to oversize system since Chiller is currently operating at half capacity. –North Todd Elementary School-- Owner decision not to repair due to oversize system since Chiller is currently operating at half capacity. Total Labor credit = 87 hours X $80/hour = $6,960 Vehicle expense = 11 trips X 50 miles X.86 = $ 473 Total credit due = $7,433

Todd Co. bid request based on 280 hours of labor to perform 2 visits per year (Spring & Fall) ! Labor to be used for maintenance inspection or repairs of all HVAC equipment in all school buildings per the provided list of equipment updated in October, Proposed price for maintenance--$18,200/year. Proposed price for repairs-- $9,420/year. All equipment to be visually inspected 2 times per year. Balance of labor to be used where priorities for repair are required.

Alternative approach (Option two) ! TOTAL COST OF OWNERSHIP Maintenance Cost Energy Cost Repair Costs Asset Protection Life Capital Cost

The balanced approach of Total Cost of Ownership ! Service Agreement Cost $X Energy Cost $10X Reliability Repair Costs $1.2X Asset Protection Life Extension $3X Harshaw Trane’s balanced approach is designed to maximize the service investment to positively impact life cycle cost by reducing repair expense, extending the life of the equipment to defer capital investment and maximizing energy efficiency.

Service Agreement Cost $.5X Energy Cost $ X Reliability Repair Costs $2X Asset Protection Cost $5X The First Cost Approach to Service Service Organizations using solely a first cost model to servicing equipment frequently upset the balance in such a way owners ultimately pay more as a result of “saving money”. Service Agreement Cost $X Energy Cost $10X Reliability Repair Costs $1.2X Asset Protection Life Extension $3X THE TOTAL COST OF OWNERSHIP

FEMP Guideline and Best Practices for Controlling Energy Costs !

Customer Care that leaves you worry free Our Promise To You With Harshaw Trane Service, we are confident that we can restore the equipment to design conditions and maintain them, therefore producing the following savings that offset a considerable cost of our services. Capacity X run time X efficient X energy cost=total spend Current HVAC Equipment 1,250 tons x 2,500 APL hours x 1.00 kW/ton x 0.05 cents = $216,250 1,250 tons x 2,500 APL hours x 1.05 kW/ton x 0.05 cents = $227,063 1,250 tons x 2,500 APL hours x 1.10 kW/ton x 0.05 cents = $237,875 1,250 tons x 2,500 APL hours x 1.20 kW/ton x 0.05 cents = $259,500 Savings at 5% = $10,813 Savings at 10% = $21,625 Savings at 20% = $43,250 Total potential electrical savings per year range from $10,813 to $43,250 !

Proposed pricing for “Intelligent” service alternative Leverage Building Automation System via monitoring & trending of data in addition to visual inspections on key systems at each building. Program will be based on seasonal visits (4/year) to support the strategy of energy efficient operation of the system. The Tracer system will be utilized leveraging data as a diagnostic tool that will bring greatest value to school system. Trends, graphs, alarm logs etc. will set the basis of hands- on service actions. Fewer interruptions of individual classrooms will be required. System perimeters will be used to address problems before they occur. Proposed Price is --$19,270/year. Proposed Price to include100 man-hours for repair is $ 9,420/year.

What is Intelligent Services? Live Gas & Electric Metering Web Based Energy Dashboards Reduced M&V Costs HVAC Performance Monitoring Technical Support “Helpdesk” Critical HVAC System Alarming Training for Operations Staff Remote Troubleshooting Avoided Truck Rolls Quarterly Consultations Data Review Recommendations for Improvement (“ECM’s”) Problem Resolution Financial Performance Facility/Budget Planning

For Todd Co Middle School & Todd Co High School Intelligent Service Self-Funded Program

Final Pricing per 10/30/13 Meeting Option 2-Intelligent Service's Approach Base Quarterly visits- $19,270 Repair budget 100 hrs.- $9,420 Intelligent Services- $20,594 M&V cost avoidance- -$12,165 Energy Savings Guarantee- -$13,000 Final Cost Year 1= $24,119

Next Steps !