May 9, 2018

Eastern Lebanon County School DistrictHybrid Guaranteed Energy Saving Act (GESA)

Procurement Method

Presented by:Alyssa Wingenfield, P.E.Shayne Homan, P.E.Brian Moore, CIPE

expertiseFounded in 1953

In-House Engineering Design, Contracting, Installation, & Maintenance

Non-proprietary, flexible solutions

Accredited National Energy Service Provider (NAESCO)

McClure Company

reputationOne of PA’s largest, multi-

faceted firms: construction management, engineering, contracting & maintenance

Implemented over 100 energy projects within a 75 mile radius of the District

100% success rate with local guaranteed energy savings projects

successEngineering News Record: Top

50 National Contractor

Governor’s Award for Environmental Excellence

Design Build Institute of America: Innovation Awards

Keystone Energy Award

Mid-Atlantic Craftsmanship and Safety Awards

localHeadquartered in Harrisburg

with full service offices in Horsham, Wilkes-Barre, State College, and Williamsport, totaling 300+ local employees

Neighboring success stories include Kutztown School District (in development), Northern Lehigh SD (in development), Eastern Lebanon County SD, and Annville-Cleona SD

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3. Open Book Contract• Direct costs are transparent; fixed fees are made known. Projects are prevailing wage.

4. McClure Self Performs work• McClure Company has internal capabilities to match District goals providing cost savings, shorter scheduling, better design efficiencies & higher quality. • With HVAC needs at the High School, McClure Company’s in-house mechanical engineering/contracting abilities prove immediate benefits.

5. Best Value Contracting• Major equipment, subcontractors & suppliers are competitively bid. McClure solicits and manages the bid process on behalf of the District who can be involved at

any level.

• District has full input and control of scope, design, manufacturers, subcontractors, etc.

Pennsylvania Act 163 – 2016Legislation that encourages school districts to leverage wasted utility dollars to fund building improvements

through energy saving opportunities

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Guaranteed Energy Savings Agreements

1. Projects Are Fixed Cost• Legislative turnkey procurement vehicle ensures a certain return on

investment based on performance.• Cost/Risk Liabilities shift from the District to McClure (No Change Orders)• Cost overruns, construction schedules, billings, subcontractor performance

and equipment performance all become the responsibility of McClure

2. Project Savings Are Guaranteed• McClure Company guarantees that the savings realized will partially or fully

offset the cost for improvements.• Design selections build on the most beneficial cost of ownership.

$300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

YearlyUtility Cost

GESAProjectedUtility Cost

Years

Utili

ty E

xpen

ditu

res

Unique Project Benefits

1. Energy Use Intensity: Energy Use (BTUs) divided by Building Area (Sq. Ft).

2. Energy Cost Index: Energy Cost ($) divided by Building Area (Sq. Ft).

4*Note: HS Energy Data is based on January 2017 – December 2017 electricity, fuel oil and propane utility bills.

Eastern Lebanon County School District - Utility Bill Analysis

BUILDING DATA ANNUAL ENERGY DATA

Name Size (SF) Last Major Renovation Cost Consumption

(MMBTU) Heating

FuelEnergy Use

Index (BTU/SF)

Energy Cost Index ($/SF)

ELCO High School 180,000 1992 $ 228,203 12,301 Fuel Oil 68,337 $1.27

Utility Bill Analysis

Typical K-12 School BuildingHeating Fuel Type Energy Use Index

(BTU/SF) Energy Cost Index

($/SF)

Geothermal 42,000 – 50,000 $0.75-$0.95

Natural Gas 60,000 – 75,000 $0.90 - $1.00

Fuel Oil 65,000 – 80,000 $1.00 - $1.50

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Building Survey Results (High School)Heating, Ventilating and Air Conditioning (HVAC) System Opportunities

• Existing 4-pipe system Unit Vent System• Evaluation required of existing HVAC piping• Goal to study multiple system replacement options - good

candidate for Tall Vertical Unit Ventilators (next slide)• Central Plant in Need of Upgrades • Additional Spaces to Add Air Conditioning

Plumbing System Opportunities • Evaluation required of existing piping and fixtures

Electrical System Opportunities • Switchgear Evaluation required• LED Lighting Candidate

Security and Safety Opportunities • Evaluation for a new secure building entrance• Opportunity to increase signage / improve aesthetics

Additional Interior and Exterior Opportunities• Tech Ed / Agriculture / Science Classroom Upgrades• Band and Chorus Space Upgrades• Repurpose Library / Media Center• Site Traffic and Parking Improvements• IT Room Relocation• Gymnasium + Café + Auditorium Improvements• Painting, Flooring, and Ceiling Replacement Upgrades

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Classroom HVAC: Tall Vertical Unit Ventilator Option

Before After

• Increased Classroom Storage• Improved Air Distribution• Dehumidification Capabilities

• Space Temperature Control• Efficient Ventilation Control • Improved Serviceability

Design Benefits

Building Survey Results (High School)

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Project Recommendations

• Natural Gas Extension Coordination• HVAC Upgrades• Additional Energy Saving Opportunities

• Electrical• Plumbing• Building Envelope

• Additional Non-Energy Opportunities• Security Vestibule• Painting, Flooring, Ceilings

Phase 1 (Summer 2019)Warm, Safe + Dry Initiatives

• Space Reprogramming / Relocation / Renovation• Aesthetic Interior Upgrades• Building Additions• Site Upgrades

Phase 2 (Summer 2020)Heavy General Construction

• Additional District Wish List Items

• Miscellaneous High School Projects Not Including in Phase 1 or Phase 2

• Incorporation of Other District Building Projects

Phase 3+ (Summer 2021+)Additional Wish List Items

Hybrid GESA Projects

definitionA Hybrid GESA Project dovetails

a traditional construction project with an GESA project

“Best of Both Worlds” project delivery method

Allows strategic scope items to be completed under GESA “Best Value” procurement method (instead of traditional low bid)

applicationsMost prone to change order trades

(Mechanical, Electrical and Plumbing) and energy related measures are executed under an GESA project to eliminate change orders

General Construction Trades / Architectural Services are completed through traditional construction methods

measuresRenovationsAdditionsAesthetic Interior UpgradesSite Upgrades

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McClure Company is the only PA based GESA Company with the ability to self perform mechanical and plumbing construction.

Why is this important? A typical renovation project, Mechanical, Electrical

and Plumbing (MEP) trades make up over 70% of the project cost. By completing the project through a Act 39 / 163 – 2016 District’s will benefit from a

MEP system performance guarantee, eliminate all change order risk, and reduce the overall markup costs and fees associated with traditional design

build methods.

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Hybrid GESA ProjectsBudget Established Pre-Contract

o District’s budget will directly influence design decisions o Reversal of typical construction process, where final costs are realized after the

design is complete

Reduced fees o GESA scope implemented as Design – Build o Total project managed by one team

Expedited construction schedule o Reduce or eliminate need for construction phasing o Avoided cost of construction delay, material increases, premium shift work

Targeted Renovation Upgrades o Adaptive re-use of existing infrastructure where appropriate o Cost reduction without impacting quality

Value Engineering o Pre-selection of GESA subcontractors and vendors - input available prior to final

bidding o Upfront fixed cost estimates

System Uniformity o Best Value selection of equipment and vendors to match District’s preference o Reduced maintenance expenses and improved District standardization

Benefits

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Case StudiesConewago Valley School DistrictTechnical Education / Flexible Manufacturing Space + Phased Approach – New Oxford, PA – In Development

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Case StudiesUpper Adams School DistrictMultiple Programming Options + Community/Student/Staff Engagement – Biglerville, PA – In Development

Cafeteria3033 SF

Storage367 SF

Stage1223 SF

Stage Storage214 SF

PE Storage193 SF

Gymnasium8569 SF

M.R.336 SF Kitchen

2069 SF

TLT216 SF

TLT216 SF

Admin1687 SF

Faculty Planning Center675 SF

Nurse506 SF

TLT262 SF

TLT223 SF

SGI374 SF

Classroom834 SF

Classroom831 SF

Classroom831 SF

Media Center2601 SF

Classroom808 SF

Classroom837 SF

Classroom833 SF

Classroom834 SF

Mechanical646 SF

Special Ed867 SF

SGI522 SF

SGI542 SF

Classroom856 SF

Classroom856 SF

SGI754 SF

Classroom856 SF

Storage300 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Storage345 SF

Mechanical878 SF

TLT211 SF

TLT202 SF

SGI346 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Special Ed744 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Storage280 SF

TLT211 SF

TLT211 SF Art

1072 SF

Music1053 SF

Collaborative Learning1105 SF

SGI488 SF

SGI474 SF

Collaborative Learning1221 SF

Classroom856 SF

Classroom856 SF

Storage300 SF

Storage300 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Classroom856 SF

Single Story Option Two Story Option

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Case StudiesWest Perry School DistrictAdministration / Art Suite Reconfiguration – Elliottsburg, PA – Summer 2018

Tag Project

1 District Wide Lighting Upgrade2 District Wide Building Envelope Upgrade3 ADA Upgrades4 HVAC Upgrades5 Administration/Art Suite Relocations6 Bathroom Renovations7 Window Upgrades8 Sidewalk Replacement9 Paving

10 Lower Level Security Entrance Upgrade11 Site Drainage Upgrades12 Garage Upgrades13 Gym Upgrades14 Signage15 Playground Upgrades16 Hallway Flooring Replacement17 Painting18 Well System Upgrades19 Brick Re-pointing and Caulking20 Paging, Intercom, Bell, & Clock System Upgrades21 Roof Upgrades22 Ceiling Replacements

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Case StudiesWest Perry School DistrictAdministration / Art Suite Reconfiguration – Elliottsburg, PA – Summer 2018

Art Classroom

Reception

Contract Type

Guaranteed Energy

Services Agreement

(GESA) under ACT 39

of 2010

20 Year Term

Project Highlights

6 Buildings

399,377 Square Feet

Addressing 10 year

strategic plan for

targeted upgrades.

Contract Amount

$7,208,024

Savings Summary

$128,914

guaranteed in firstyear utility and

operational savings

$7.7 million

guaranteed over the

term of the program

(20 Years)

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Case StudiesGreencastle School District Multiple Phase Targeted Upgrades – Greencastle, PA – Summer 2015 to 2018

MULTI-PRONGED APPROACH TO CAPITAL UPGRADES

Experiencing a steady growth in their population, the District acknowledged a need to address

multiple facility improvements. The District quickly learned the value of McClure’s construction

management experience and expanded the scope of work to include strategic objectives beyond

energy savings.

Safety systems such as the fire alarm, door locking systems, panic notification systems, and IP video

were implemented providing enhanced security measures to meet today's needs. The District began

a phased approach to meet facility readiness and fiscally achieve the greatest dollar for dollar value.

“We are currently engaged in a multi-year project with McClure Company and have been very pleased with all

aspects of the project. McClure was able to work within our constrained finances, yet accomplish our building goals.”

– Jolinda C. Wilson, Acting Superintendent (2016)

ENERGY CONSERVATION MEASURES

1 District Wide Lighting Upgrades 8 External Door Upgrades

2 District Wide Building Envelope Upgrades 9 Window Blind Upgrades

3 Fire Alarm Upgrades 10 Back-up PA and Bell System

4 Holistic HVAC System Upgrades 11 High School Painting

5 Auditorium Rigging System Upgrade 12 Gym Floor Replacement

6 Water Softener Upgrades 13 Sprinkler System Replacement

7 Panic Notification and Standardized Lock System 14 Bathroom Renovations

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Additional Project ConsiderationsHVAC Assistance

• McClure’s Skilled HVAC Technicians will assist the District in “band-aiding” the High School HVAC system until the 2019 HVAC Replacement

• Temporary Solutions will be proposed based on future HVAC system design

Future Project Planning and Phasing• McClure will design and coordinate each phase to avoid any unnecessary project redo• Example: HVAC Taps and Central Plant Sizing in Phase 1 to prepare for Phase 2

Targeted Menu of Options• McClure will provide an a la carte menu of options, allowing the District to customize each phase• Each facility improvement measure provided will show project hard costs, soft costs, and savings

High Efficiency Project Recommendations• Focus on high efficiency equipment and system options• Designs features to include enthalpy wheels, LED lighting technology, and building automation

Expedited Construction Schedule• Majority of construction activities to be completed during the summer months• Avoids displacing students and teachers during school year

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Preliminary Phase 1 Project FinancialsTag Description Program

A1 High School Lighting Upgrades

2 High School Building Envelope Upgrades

3 High School HVAC (Majority of Existing Piping to Remain)

4 High School HVAC and Piping Replacement

5 IS, MS, FZES, and JES Lighting Upgrades

6 IS, MS, FZES, and JES Building Envelope Upgrades

7 High School Electrical Upgrades

8 High School Plumbing Upgrades

9 High School Security Vestibule Upgrades

10 High School Painting, Flooring and Ceiling Upgrades

Total Project Cost $7,500,000 -$9,000,000

20 Year Energy and Operational Savings $3,000,000 -$4,000,000

Net Cost to District $3,500,000 -$6,000,000

Program

B

$9,500,000 -$11,000,000$3,000,000 -$4,000,000

$5,500,000 -$8,000,000

Program

C

$9,500,000 -$10,500,000$5,000,000 -$7,000,000

$2,500,000 -$5,500,000

Typical GESA Process

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STEP 1FEASIBILITY STUDY

o Identify Goals

oData Collection & Survey

oDetailed Analysis

oPreliminary Report and Results Presentation

STEP 2INVESTMENT GRADE AUDIT

oPartner with McClure after Request for Proposal Process

o Final Report & Presentation

o Final Selection of Projects

oReview & Approval

o Execute Contract

STEP 3FINAL DESIGN

o Final Engineering

oPermit Submission

oOwner Final Design Review

oProcure Major Equipment

STEP 4CONSTRUCTION

o Installation Coordination

oCommissioning

oOwner Training

oMeasurement and Verification

Summer 2018 Fall 2018 – Spring 2019 Spring 2019 Summer 2019

GESA Project ReferencesAnnville-Cleona School DistrictBald Eagle Area School DistrictBeaver County GovernmentBedford County GovernmentBellefonte Area School DistrictBenton Area School DistrictBethany TowersBishop Hafey High SchoolBloomsburg HospitalBryn Mawr CollegeCameron County School DistrictCamp Hill School DistrictCarbon County Area Vocational Technical SchoolCarlisle Water Pollution Control FacilityCentral PA Institute of Science and TechnologyCharles et AliceChichester School DistrictCity of AllentownCity of BethlehemCity of Bethlehem Ice RinkCity of HarrisburgCity of Lock HavenClearfield County Career & Technology CenterColumbia-Montour AVTSCommonwealth of PA, DPW, Selinsgrove CenterCommonwealth of PA, DPW, White Haven CenterDanville Area School DistrictDelaware Valley CollegeDerry Township School DistrictEastern Lebanon County School DistrictEast Lycoming School District

Forest City Regional School DistrictFox Chase Cancer CenterGeisinger Health SystemGood Shepherd Rehab CenterGnauden HuettenGreenwood School DistrictGreencastle-Antrim School DistrictHalifax Area School DistrictHamilton HealthHarrisburg City School DistrictHazleton Area School DistrictHershey Medical CenterJim Thorpe School DistrictJuniata County GovernmentJuniata County School DistrictKing’s CollegeLackawanna Trail School DistrictLackawanna County GovernmentLakeland School DistrictSchool District of LancasterLehighton Area School DistrictLinden Hall School For GirlsLycoming CollegeLycoming Career and Technology CenterMeadville Area Recreational FacilityMifflin County School DistrictMifflin-Juniata Career and Technology CenterMillville Area School DistrictMinersville Area School DistrictMount Carmel Area School DistrictMoon Area School DistrictNorthampton CountyNorthern Potter School DistrictNorthern York County School DistrictNorthumberland County AVTSNorthwest Area School District

Northwestern Lehigh School DistrictOld Forge School DistrictPanther Valley School DistrictPA State Education Association (PSEA)Pinnacle Health SystemsPine Grove Area School DistrictRinggold School DistrictSt. Joseph’s UniversitySacred Heart HospitalSalisbury Township School DistrictSchuylkill County GovernmentSouth Eastern School DistrictSouth Middleton School DistrictSouthern Columbia Area School DistrictSteelton Highspire School DistrictSunbury HospitalSusquehanna Township School DistrictTamaqua Area School DistrictTri-Valley School DistrictTunkhannock School DistrictTroy Area School DistrictUpper Dauphin Area School DistrictU.S. Naval Support StationWallenpaupack Area School DistrictWaynesboro Area School DistrictWest Branch Area School DistrictWest Perry School DistrictWilliamsport Area School DistrictWilliams Valley School DistrictYork County Government

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Questions?Alyssa Wingenfield, P.E.

Account Executive717-514-0576

alyssawingenfield@mcclureco.com

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Brian MooreEngineering Operations Manager

717-599-2655brianmoore@mcclureco.com

Shayne Homan, P.E.Director of Energy Services

717-648-9633shaynehoman@mcclureco.com