1. Old Ideas, New Money or is it New Ideas, Old Money?
April 1, 2010
Prepared by
Bob Hasman

2. This information is proprietary and confidential
Agenda
Old Ideas
New Ideas
New Money
Old Money
This information is proprietary and confidential

3. Purpose of the Next Hour
To Educate
To investigate if there is a different (new and better way) to help school funding
Dispel an old myth
Determine if there is something that can be done RIGHT NOW!
This information is proprietary and confidential

4. This information is proprietary and confidential
Old Ideas
Schools will be funded at the right level
Building Renewal funds will be reinstated
Utility funds will be at the level of 2001 plus inflation
Buildings and equipment will last forever
Contracting will follow traditional methods
Energy Efficiency Contracting is too expensive
This information is proprietary and confidential

5. This information is proprietary and confidential
Old Ideas - Reality
Schools will be funded at the right level
Building Renewal funds will be reinstated
Utility funds will be at the level of 2001 plus inflation
Buildings and equipment will last forever
Contracting will follow traditional methods
Energy Efficiency Contracting is too expensive
This information is proprietary and confidential

6. This information is proprietary and confidential
OLD Money?
Existing budgets cutbacks
New year budgets reduced
No building renewal
Utilities are here to help?
Excess Utilities
Bond Money
This information is proprietary and confidential

7. This information is proprietary and confidential
New Ideas
Need new money from somewhere
Energy Efficiency savings stay with the district
No capital needed for facility upgrades
Contractors looking out for my best interests
Pre Qualified Business Partners
This information is proprietary and confidential

8. This information is proprietary and confidential
NEW Money
ARRA Stimulus funds help some schools
Bond Money
Loans
The only new money is what you do with the money you have.
This information is proprietary and confidential

9. This information is proprietary and confidential
ARRA FUNDS
SFB Managed
44 districts applied
$108M in projects
Awarded 29 projects to 25 districts
$43,600,825 in projects
$12,115,915 in grants
Where is the district money coming from?
This information is proprietary and confidential

10. Combining Funding Sources
Grants
Rebates
Other Incentives
Energy and Operational Savings
Bond Issue Funds
General or Capital Funds
This information is proprietary and confidential

11. Implementation Schedule
Stage 1: Development
Investment Grade Audit
3-4 Months
Stage 2: Implementation
Commitment To Program
Engineering Design
Construction
Commissioning
3-6 Months
Stage 3: Performance
We know you are interested in moving forward quickly with this project
This is a more typical timeline for our projects
To move things forward faster it may make sense to pull out certain trades like lighting, water efficiency etc and complete them this summer while putting together a different schedule for air conditioning
We sit down with our clients and work out the schedule that works best for their needs
Training
Measurement and
Verification
Performance
Management
Contract Term
This information is proprietary and confidential

12. Benchmark Utility Analysis
 #1 #2 #3 #4
Energy Use overall
EUI (kBTU/sq.ft./year) 75
120.92
142.38
67.85
Cost ($/sq.ft./year)
$1.12
$1.97
$2.04
$1.82
Electrical
kWh/sq.ft
7.719
16.83
18.31
19.31
Watts/sq.ft.
2.137
$/sq.ft.
$0.68
$1.51
$1.78
$1.54
$/kWh
$0.08
0.08
$/kW
$7.48
Natural Gas
MCF/sq.ft
0.05
0.06
Utility Cost Comparison
We look at why one school may be using more energy than another to identify areas to evaluate further
This information is proprietary and confidential

13. Detailed Operational Analysis
Data Logging
Work Order Reviews
Friday Saturday Sunday Monday Tuesday
We look at work orders for each school for patterns
And data log areas we feel we may be able to provide value
Knowing how it operates now provides great value in the solutions we may recommend and are extremely useful when calculating possible savings
Share the NKC story on their chiller
Occupancy Sensor Analysis
Note: These are examples from other school districts
This information is proprietary and confidential

14. Facility Improvements
Lighting upgrades from 32-watt T8 lamps To 28-watt T8 lamps
Gymnasium lighting upgrades
Occupancy sensors
New fixtures/lenses
Water efficiency upgrades including toilets, urinals, faucets and showers
Smart irrigation controllers
Swimming pool covers and chemical use improvements
Direct digital temperature controls and specific control sequencing strategies such as outside air boiler temperature reset
HVAC system replacement – addition of air conditioning
Electrical service upgrades
Kitchen upgrades
Vending machine controls
Window replacements
Solar photovoltaic and/or solar hot water
Here are some of the things we saw at the walkthroughs of buildings that we may be able to help with.
As we progress through the technical audit some of these things may stay on the list and there may be some others added
This information is proprietary and confidential

15. Traditional Construction Approach
School District
Creates opportunities for finger pointing that will usually point back to the Client holding the responsibility and the additional cost.
Architect
Designer
Consultants
Owner
Lines of
Communication
Roofing
Contractor
Mechanical
Electrical
Vendors
EMS
Lighting
Windows
Multiple Tier
Sub-Contractors
G.C.
Markup
On Top of CM
Client Project Responsibility
Cost Schedule Quality
Then we begin to put together a construction plan
We often see schools follow a traditional way of implementing construction projects
Some of the issues we see with this method are
No single source of accountability
Multiple tiers of markups on subcontractors
Lines of communication become difficult
Contractors don’t have the same buy in to the success of schedule or quality as the client
This information is proprietary and confidential

16. Energy Efficient Contracting Implementation
School Districts
Designer CM
Client
Rep.
Energy Efficiency Contracting
Total Project
Responsibility
Cost
Schedule
Quality
Flat-Tier Construction Team
Roofing
Contractor
Mechanical
Electrical
Vendors
Lighting
Vendor
EMS
Windows
Outside
Consultants
Owner
Consultants
Here is the way we will typically organize our projects
We take full responsibility for our projects
We watch and manage the clients interests
We do bid packages typically by trade in a flat tier form
This reduces our risk, increases our control and reduces project costs
We do what we call a select bid process instead of a low bid process
We have found this method to improve quality, speed schedule, reduce costs and reduce risk for our clients
1. Allows Custom Energy to carry direct people relationships with sub-contractors and equipment vendors.
2. Allows Custom Energy to carry direct financial relationships with sub-contractors and equipment vendors.
3. Reduced costs through the elimination of multiple tier markups
4. Allows direct communication of goals, schedules and coordination throughout the project
5. Allows direct management of product substitutions
6. Allows Custom Energy to take on risks that have
traditionally been the Client’s
Ultimately, this allows Custom Energy to use our “people” skills and relationships to enhance performance. We are not relying on subcontractors to carry those relationships. Knowing our expertise and having greater control of the process help us to mitigate the risks we carry for the Client.
This information is proprietary and confidential

17. This information is proprietary and confidential
Contracting Fees
Design
Project Management
Contingency
Commissioning
Training
Warranty
Overhead
Profit
This information is proprietary and confidential

18. This information is proprietary and confidential
What is the Difference?
It is all in the ACCOUNTING!
It is all about a cost is a cost is a cost!
This information is proprietary and confidential

19. This information is proprietary and confidential
Business Margins
This information is proprietary and confidential

20. Measuring and Verifying Savings
Partially Measured
Short Term
Continuous
Retrofit Isolation
Measures kWh
Whole Building Utility Bills
Computer Simulation
We will typically do the first two
Can do utility bill
Describe them and discuss some of the pros/cons
This information is proprietary and confidential

21. This information is proprietary and confidential
A/C Project Examples
High School
Previously Had A/C
Unit Ventilators
Boilers, Chillers
Implemented Ground Source Heat Pumps
Adding A/C is something you have talked about doing at these two schools and we have a lot of experience with that
One solution we have been very pleased with over the years is Ground Source Heat Pumps
After our first walk through of your facilities it looks like they could be good candidates
Tell about North Jackson and what we did
Construction stage
This information is proprietary and confidential

22. Life-Cycle Cost Analysis Example
Here is the life cycle cost analysis of all five of the elementary schools averaged together
Includes installation costs, energy costs, O&M costs, replacement costs, escalation and depreciation
This information is proprietary and confidential

23. A/C Project Examples School District Previously Had No A/C
5 Elementary Schools
Electric and Gas Utilities
Previously Had No A/C
Unit Ventilators and Radiators
NG Boilers
Implemented Ground Source Heat Pumps
Often more efficient systems mean more up front costs
Tell Columbia bid story
Discuss graph
This information is proprietary and confidential

24. Did we accomplish our purpose?
To Educate – did you learn something?
To investigate if there is a different (new and better way) to help school funding - Better Use of Existing Money
Dispel an old myth - Competitively Priced
Determine if there is something that can be done RIGHT NOW!
Everything Old Can be New Again
This information is proprietary and confidential

25. Thank you for the opportunity to share our ideas with you.
Questions?
I would like to open it up to the formal Q&A time
This information is proprietary and confidential