Mark Strickland. Date: December 14, Energy Conservation RFQ

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1 Andrew G. Houlihan, Ed.D. Superintendent 400 North Church Street Monroe, NC Phone Fax Board of Education Melissa Merrell - Chairman Gary Sides - Vice Chairman Leslie Boyd Kathy Heintel Christina Helms Matt Helms Joseph Morreale Dennis Rape Candice Sturdivant To: From: Board of Education Mark Strickland Date: December 14, 2017 RE: Energy Conservation RFQ RFQs for consultants to help with an energy management and conservation program were received. Two firms responded to the RFQ: EduCon and Cenergistics. At this time, staff is recommending EduCon due to their fixed fee structure, contract duration, proximity of their office to our location, number of NC school districts they have worked with, proposed software and provided in-house training. EduCon provided a fee along with their RFQ. It is $194,400 per year, for a three-year contract, totaling $583,200. Per their proposal, we will not be invoiced until actual savings have been identified. We have reviewed the fee proposal and believe it to be reasonable. We believe we are being conservative in our expectations to achieve a cost avoidance of $1 million per year, once fully up and running. The fee would be paid from utility savings. Also from those savings, UCPS would need to hire two energy managers (to be paid from savings) and to use the software at a cost of $3,600 per year. The Facilities Committee recommends Board of Education approve EduCon as our energy conservation consultant and to their fee proposal of $194,400 per year for a three-year contract. Growing Possibilities. In compliance with federal law, UCPS administers all educational programs, employment activities and admissions without discrimination against any person on the basis of gender, race, color, religion, national origin, age or disability.

2 Energy Management and Conservation Program Union County Public Schools STATEMENT OF QUALIFICATIONS Respectfully submitted by: Andrew LaRowe EduCon Energy, President

3 Mike Ritz Environmental Services Manager Union County Public Schools 201 Venus Street Monroe, NC RE: Statement of Qualifications Dear Mr. Ritz, We are excited about the prospect of working with Union County Public Schools and commend your interest in reducing energy costs and consumption. Our attached Statement of Qualifications includes information about our energy savings program and our success with many other North Carolina school districts over the past 19 years. A partnership with EduCon provides several key advantages that distinguish us from other energy management organizations. Our company is based in North Carolina guaranteeing easy access to and responsiveness from energy managers and company executives. Our leadership and team members share decades of experience working in practically every aspect of planning, designing, constructing and operating school facilities. Having partners that offer experience in education in addition to business acumen will provide distinct benefits to Union County Public Schools. We have a keen appreciation for school employees. We can tailor our efforts with a strong knowledge base and deliver a results-driven experience. We are confident that we can help you reduce energy expenditures while assuring that the safety and comfort of building occupants is not sacrificed. Thank you for considering EduCon Energy. We will look forward to hearing from you soon. Sincerely, Andrew LaRowe, President 2421 Limner Lane, Winston-Salem, NC Phone

4 Section 1 Program Criteria Overview of the Behavior Modification-Based Process EduCon services are focused on establishing energy guidelines, auditing and evaluating existing systems and controls, implementing proven strategies to reduce consumption while improving comfort and building health, monitoring usage and cost, communicating program goals and results, and training your energy managers. EduCon believes strongly that your energy program should continue long after our services are completed at the end of three years. Training your energy managers will assure that critical knowledge of systems, controls and strategies will continue without missing a beat. Our strategies for savings focus on getting existing systems to run efficiently, effectively, in accordance with the design sequence of operation and in setback mode when the building is not in use. We use reports from our energy tracking software to focus on buildings that are performing poorly in energy use per square foot. We understand the importance of communicating with individual staff, central office administrators and the Board of Education. We will be available to make presentations and coordinate press releases and other media with your PR Department. It takes involvement at every level, from the behavior of the classroom teacher to the support of HVAC technicians in Maintenance, senior staff and your Superintendent. We believe a successful program must include support from all employees, and we have the experience and track record to accomplish this. Firm and Staff Experience EduCon Energy provides professional consulting services to school systems with the development and implementation of energy management and conservation programs. The primary focus is to reduce energy costs for electricity, natural gas, heating oil, propane, water and other utilities and services. We have served over 25 clients in the Carolinas and Georgia since the firm opened in We are headquartered in Winston-Salem, North Carolina. EduCon has developed its own registered trademarked energy program to reduce energy consumption and costs in any organization, without sacrificing comfort or safety. We utilize our own energy tracking software system, Energy Master Pro Limner Lane, Winston-Salem, NC Phone

5 Nelson Jessup, CEO/Founder served as a teacher and administrator and then as an associate superintendent for operations and twice as interim superintendent in the Winston-Salem/Forsyth County Schools. He also served twice as interim superintendent for Stokes County Schools. His knowledge and experience include implementing and managing an energy saving program for WS/FCS (saving $2,741,692 or an average over 15% a year from 1992 to 1996) and, since forming EduCon, numerous successful projects for other districts. He has also planned and supervised major school construction projects at both the elementary and secondary levels, and managed an overall operations staff of over 70 people. Andrew LaRowe, President has significant experience in the development and implementation of energy programs for school districts. Over the past 28 years, he has worked in practically every aspect of planning, designing, constructing, and operating school facilities. He also spent several years with Progress Energy as a facilities administrator. Since joining EduCon, Andrew has led development of a "Student-Centered Energy Conservation Program" for Charlotte-Mecklenburg Schools and Horry County Schools. This innovative approach is based on his previous experience with Guilford County Schools as Chief Operations Officer where he implemented a similar program called EnergyWise. Andrew is often a presenter on school facilities topics at conferences across the country and also coauthors feature articles for School Planning and Management magazine. Thomas J. (Pete) Morgan Jr., retired from RJ Reynolds Tobacco with over 30 years of financial experience. He served as manager of systems development and financial controls for the customer financial services area, manager of the accounts receivable department and was responsible for capital budgeting preparation. Pete manages the Energy Master Pro utility tracking system and works closely with energy managers with bill entry and reporting. David Barnes is a Certified Energy Manager with over 20 years in facility and energy management, primarily with educational facilities. David specializes in data migration and works on special projects related to Energy Master Pro. Consultants: EduCon utilizes consultants across the state that range in experience from eight to twenty years in energy management. Six of our consultants have completed the Energy Management Diploma Program at NC State University. They offer a wide range of experience including: o DDC controls strategies (Johnson Controls, Trend Novar, Allerton, ALS, Schneider), o HVAC systems operation (boiler, chiller, air handler, heat pump, cooling tower, variable refrigerant flow, ice and geo-thermal systems) o Communication training, lighting controls, electrical billing rate evaluation 2421 Limner Lane, Winston-Salem, NC Phone

6 Number and Type of Organizations As of 2017, EduCon Energy has helped 22 different school districts in North Carolina and Georgia develop and implement energy management and conservation programs. In addition, EduCon has worked with Charlotte-Mecklenburg County and Horry County, SC schools with implementation of the student-based EnergyWise energy conservation program. Overview of Proposed Services Our style is aggressive without being overbearing or demanding. We want you to pay the utility companies only what is necessary to have comfortable staff and students and healthy buildings. Policy and Guidelines: The first critical component of a successful energy program begins with establishing energy guidelines that are supported by your administration and Board of Education. EduCon can help you review, (and revise if necessary) these guidelines based on our experience in school districts throughout North Carolina. Once established, these guidelines must be embraced and supported from the top down. This commitment shows all employees that you are serious about supporting strategies to reduce energy consumption, maintain comfort and save money. Energy Managers: We believe the Union County energy program will be most successful with two full time energy managers. EduCon will begin your energy savings program once the contract is signed and two full time energy mangers are hired, (or current employees are assigned to this responsibility.) Savings in the 2421 Limner Lane, Winston-Salem, NC Phone

7 energy budget will cover the energy manager s salary. EduCon will assist with the job description and interview questions and we would prefer to be included in the interview process. Training and Audits: Qualified EduCon consultants will train your energy managers in all aspects of energy management. We will conduct after hours and weekend audits with them to record the conditions that we observe and will educate them about HVAC systems, controls and behavior patterns we find in the buildings. Consultants will provide a report after each visit. This report is used to help communicate concerns to the Maintenance Department so that issues might be assessed and resolved. We often find HVAC sequence of operation issues highlighting a problem in buildings that have been occupied for many years. Just because the DDC computer screen indicates that a system is running correctly, does not make it so. A boots on the ground approach is the only proven strategy to discover opportunities for savings due to systems running out of sequence or needing attention in some other way. Our experience has shown that when districts respond to audit findings in a timely manner to address deficiencies, a visible connection is made to energy savings. Tools: Tracking energy usage and costs helps us to identify opportunities for savings and to quantify our success. We use Energy Master Pro software for reporting results. Utility bill data is keyed into the system and reports are generated including summary reports, energy use per square foot reports, cost per square foot reports and usage and cost reports. Data entry is quick and user friendly. This is a necessary tool for the energy managers, one that will guide his/her efforts in obtaining the most immediate and significant results. In addition to the specific approach outlined above, our approach is grounded in teamwork. EduCon cannot reduce energy consumption in your school district alone. We guide the process but you and your staff do the work. We have found that when we help you stay focused and encourage creative thinking, the results happen. We know the reason this program will be successful is because of your efforts. As results are realized, we will recognize and promote your staff as they take ownership of the progress and results of this program. Doing so provides a sense of camaraderie among employees as we encourage and celebrate well-earned accomplishments by your team. Financial Aspects Monthly fees are determined based on the number of schools and buildings in your district. We gather information from you that includes square footage, yearly utility costs for each energy type, number/square footage of buildings that have direct digital controls and those that are controlled manually. We use this information to determine the appropriate fee. You will not be invoiced for our agreed upon monthly fee until we can show that your accumulated energy savings exceed our fees. Our contract duration is three years. This monthly fee will be paid to EduCon over this time (36 months x monthly fee = total fee) Limner Lane, Winston-Salem, NC Phone

8 Section 2 Services Criteria Approach to Integrating Operational and Behavioral Practices Facilities and maintenance department staff members must be involved in the energy program to insure success. We depend on routine communications between the Energy Managers and the Director of Maintenance, Department Supervisors and other areas such as Technology and Food Services. Our experience suggests that a dedicated controls person is a necessary part of the energy management team. Managing DDC systems for school day comfort, after school activities schedules and weekend events is critical to the success of the program. This effort must be consistent and reliable. In this way staff knows that they can depend on being comfortable in their buildings when in use while you save money by reducing energy consumption when buildings are unoccupied. Another important aspect of our program is increasing awareness and implementing behavioral changes at the staff and student level. A successful energy savings program must include an effort to get everyone in every classroom and office on board with our efforts. They need to know they play an important role in the program s success. EduCon consultants train the energy managers in conducting behavioral audits and in reporting these results to the Principal or other administrator at the individual school or administrative building level. Results are reported in such a way as to motivate participation. We strive to promote a team effort. In a similar way, we report results to encourage participation by custodial staff in each building. It is critical to the success of the program that solid relationships are built with these important members of the school staff who are responsible for a proper evening shutdown of their facilities. We find that communications and collaboration makes a difference.

9 Timeline and Key Deliverables (Assuming Board of Education approval of EduCon Energy in January 2018) February 2018 Develop job description and post positions for two full time energy managers Upload all utility billing from January 2017 through December 2017 March 2018 Develop Board energy policy and energy guidelines Planning for energy managers requirements (building access, work space, equipment, transportation, etc..) Conduct interviews, make recommendations for selection of energy managers April 2018 Energy managers hired Commencement of 3-year consulting agreement with EduCon Energy Establish baseline year start date for energy data Board review of energy policy Notification of Energy Management and Conservation Program from superintendent to principals Data entry training for energy managers Begin weekly visits from EduCon consultants for building audits Planning for energy savings during summer break May 2018 Energy managers continue entering utility bills and conducting building audits from this point forward Board approval of energy policy Notification from superintendent to district of energy policy and energy guidelines Notification to principals regarding plan for energy savings during summer break In October 2018, EduCon will issue first semiannual energy report detailing status of Energy Management and Conservation Program implementation. Throughout the duration of the contract period ending January 2021, EduCon will continue to assist with building audits, provide on-going training to staff, monitor energy savings and provide program status reports. We will always be available to make presentations to district staff and the Board of Education.

10 Program Review EduCon Energy has worked with the EPA s ENERGY STAR program and is registered as an Energy Consultant/ Energy Management Services Company in the ENERGY STAR Partner program. A majority of our energy consultants have participated in an energy management training program offered by NC State University, qualified to take a comprehensive course examination developed by the Institute of Energy Professionals, and earned the Professional Energy Manager (PEM) certification. Optimization of Existing Buildings, Equipment and Controls Systems Our experience tells us that if you are not in your buildings after hours (weekdays and weekends) you may not be aware of what is happening in relation to the operation of your mechanical systems during unoccupied times. Systems that you think are in a setback mode are still running Contactors are stuck on and open outside air dampers allow humid air into the building Water pumps are running while boilers and chillers are off Cooling tower pumps are circulating water and no air handlers are running A technician may have placed a piece of equipment in Hand mode to test and never reset it to Auto The list goes on. It is amazing what you learn and how much money you can save by being in your buildings after hours. We also monitor buildings during school hours to look at the sequence of operation for a particular system to provide a full picture of what is happening with regards to operation of mechanical systems during occupied times. Automated control systems can tell us a lot, as do calls from the schools about uncomfortable condition (too hot or too cold). What tells us the most is taking a walk around the building and looking at the automated control programming to see if the systems are operating according to the system sequence of operation. Our consultants are experienced at investigating, assessing and recommending ways to address controls strategies and mechanical systems deficiencies that will result in energy savings. We have found without exception that there is money to be saved by getting the systems you currently have in place to work more efficiently and effectively during the school day and after hours.

11 Experience with ENERGY STAR and in helping organizations achieve ENERGY STAR recognition EduCon Energy has worked with the EPA s ENERGY STAR program and is registered as an Energy Consultant/ Energy Management Services Company in the ENERGY STAR Partner program. Several EduCon clients routinely utilize a data upload function in Energy Master Pro that automatically populates EPA s ENERGY STAR Portfolio Manager which is the basis for qualifying individual schools to achieve ENERGY STAR recognition. In 2012 Nash-Rocky Mount Schools was one of only five NC school districts to receive national recognition as an EPA ENERGY STAR Lead Organization. In 2013 all Rowan-Salisbury Schools were ENERGY STAR certified placing the district in the top 75% of schools throughout the nation in energy efficiency. Internal and External Communications and Public Relations Support The success of EduCon s clients is an important message we want to relay to other organizations, groups, or individuals outside its formal structure. Therefore, EduCon utilizes a dedicated public relations/marketing expert, with over 25 years experience, whose responsibility is to present to the public a favorable image of our clients and their successes. Effective public relations tactics, including press releases, media contact and newsletters, are used to garner news coverage for our clients during the duration of the contract. We will coordinate press releases and other media opportunities with facilities staff and your public relations department to ensure messaging is consistent across all mediums. (Examples of EduCon Energy news articles are included on following pages.)

12 Sample Press Release Contact Info: September 16, 2013 Karen Jarvis Four Mitchell County Public Schools Earn Prestigious Energy Star Certification Mitchell County, N.C. Mitchell County Public Schools effort to save energy is being rewarded with the honor of four schools being named Energy Star award recipients. Schools receiving recognition at the monthly school board meeting on Monday, September 16 include Bowman Middle School, Harris Middle School, Gouge Elementary School and Deyton Elementary School. Energy Star is an international symbol of energy efficiency. It is a partnership between government and industry that allows businesses and consumers to save money and protect the environment. To be certified as Energy Star, a building must meet strict energy performance standards set by the Environmental Protection Agency and earn a score of 75 or higher, indicating it performs on par or better than 75 percent of similar buildings based on a nationwide comparison. For almost three years, Mitchell County Public Schools has partnered with EduCon Energy, a Winston-Salem based energy management and consulting company, to help reduce energy consumption and costs. Since the partnership began, results show the Mitchell School system has a cumulative adjusted cost savings of approximately $773,000. Adjusted cost savings is based on usage reductions using current utility rates. This represents a decrease in expenditures of 32%. What s really impressive is the electricity savings, said Nelson Jessup, CEO, EduCon Engery. Despite the fact that electricity costs have increased each year, the staff and students at the public schools were able to reduce their consumption by almost 20 percent. That enabled the school system to save over $262,000 in electricity costs.

13 New Hanover Co. Schools cuts power bill by $1M Submitted by WWAY on Wed, 10/03/ :56am. WILMINGTON, NC (WWAY) -- A program aimed at lowering the costs of energy and water for New Hanover County Schools appears to be paying off. EduCon, the company the school district partnered with last year to help reduce energy consumption and costs, says the school district save almost $1 million the first year of the program. The school board learned about the results at its meeting last night. According to EduCon, the numbers show the school system's commitment achieved an actual cost savings of $990,000 (15.4 percent) and adjusted cost savings of $1,479,000 (21.4 percent). The company says adjusted cost savings takes rate increases into account and is a better gauge of the program's success. "The first year adjusted cost savings exceeded the school system s goal of $800,000. That is an excellent result," EduCon CEO Nelson Jessup said in a news release. "Our focus in year one has been directed at the energy services - electricity, natural gas and propane - which account for 86 percent of utility expenditures. We have made great progress in year one and see many opportunities for an even better year two." EduCon says decreases in consumption include a 10.4 million (20 percent) kilowatt hour reduction in electricity and more than 27 million cubic feet reduction in natural gas (37 percent). As a result, the carbon dioxide emissions (CO2) have been reduced by 16.4 million pounds. "That's the equivalent of eliminating 1,091 cars from the highway or planting 2,233 acres of trees," Jessup said.

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15 Section 3 Measurement and Verification Approach to Measuring and Verifying (M&V) Savings EduCon has developed a simple but powerful web based software that tracks usage and costs. Energy Master Pro provides a variety of reports that allow your energy managers to analyze and evaluate trends and obtain results of his/her efforts. We can input or transfer historical data that you have collected to date into our program and can export data directly to ENERGY STAR Portfolio Manager. Use of this software is included in the monthly fee for the first year of the contract The process is simple. All utility bill usage and cost information is input by the energy managers and reports are generated directly from this data. Adjusted cost is calculated to take into account the ongoing changes in billing rates. We have designed Energy Master Pro so that a school system can easily understand and duplicate this calculation. Adjusted cost is simply the difference in usage multiplied by the current billing rate. Manual changes to system generated adjusted cost reports are occasionally required in response to gross inconsistencies. All manual adjustments are discussed with the energy managers and administrator prior to finalizing the adjustment. Notes will be added in Energy Master Pro to document the change and the rationale. EduCon provides complete training to your energy managers on this software. Technical support and all software enhancements are included at no additional cost. Cost and usage results are pro-rated for each actual month period, not the billing period. This allows an accurate comparison as it relates to weather data and trends. Built in protections assure that results cannot be obtained for any one period until all related billing data is complete. Management of Energy Accounting Software Your energy managers will have complete access to add data and new bills, run reports, terminate old accounts, import data into Energy Star and add view only users at his/her discretion. EduCon and our consultants will have remote access to read the reports generated by Energy Master Pro. In this way, we are able to best serve you. Our software engineers will answer questions and assure that the software is working to its highest potential for your program. Union County Public Schools will always retain ownership of all utilities data. At any time, the full database can easily be exported Limner Lane, Winston-Salem, NC Phone

16 Industry Standards Energy Master Pro software is based on Microsoft.Net and SQL server technology. The EduCon software engineering team follows industry best practices for software development. The software is hosted in a secure cloud environment built on a windows server. Energy Master Pro complies with International Performance Measurement and Verification Protocol (IPMVP) o Energy Master Pro follows Option C Whole Building Approach which defines Energy Savings = Base year Energy Use (normalized to current year weather) Post Conservation Measure Energy Use +/- Adjustments. Development and Ownership EduCon owns Energy Master Pro Software and all development is led by EduCon. Updates or Upgrades to the Software Our development partner, Small Footprint, routinely performs the development and maintenance of the software including updates and upgrades utilizing Microsoft certified engineers. Adjustments for Non-Program Related Savings or other Changes in UCPS Environment If HVAC equipment at a particular school is completely replaced, we are able with our software to exclude it from our savings calculation, or run it separate from the rest. Energy Master Pro allows you to look at adjusted cost reports with or without weather normalization adjustments. We developed our weather normalization methodology with assistance of Professor Sat Gupta, Associate Department Head, Mathematics and Statistics, UNC-Greensboro. Professor Gupta has been a faculty member at UNC-Greensboro since 2004 and is the founding editor of the Journal of Statistical Theory and Practice Limner Lane, Winston-Salem, NC Phone

17 Section 4 Program Cost and Savings Program Costs Monthly fees are determined based on the number of schools and buildings in your district. We gather information from you that includes square footage, yearly utility costs for each energy type, number/square footage of buildings that have direct digital controls and those that are controlled manually. We use this information to determine the appropriate fee. The monthly cost includes all consultant visits, EduCon presentations, software training, and annual workshops hosted by EduCon in Winston-Salem. Use of Energy Master Pro software is included during the first year of the contract and billed on July 1st each year thereafter. Savings Guarantee There is a provision in our contract that if at any time during the contract period the accrued energy savings/cost avoidance falls below the sum of payments due EduCon, then EduCon will suspend invoicing the district until such time as energy savings/cost avoidance equals or exceeds the sum of monthly payments. It is our intention that no monies will be owed to EduCon until energy savings/cost avoidance exceeds the amount of the monthly payments Approach for Achieving Savings Prior to Incurring Costs You will not be invoiced for our agreed upon monthly fee until we can show that your accumulated energy savings exceed our fees. Savings to Compensate Cost for Energy Managers It is our experience that costs associated with the energy managers along with our consulting fees are generally covered by energy savings within the first six months from the start date. A recent example is Gaston County Schools where actual savings exceeded year to date salaries and fees within the first three months of the program. Methodology to Arrive at Savings Projections Savings projections are determined based on several factors including the number of schools and buildings in your district. We gather information from you (see Attachment 4a Info Sheet) that includes square footage, yearly utility costs for each energy type, number/square footage of buildings that have direct digital controls and those that are controlled manually. Over a course of five years we apply an annual inflation rate to utility costs. An annual inflation rate is also applied to costs for energy managers. EduCon fees for the contract term along with cost associated with the energy accounting software are applied to determine net savings projections. (see Attachment 4b Projected Costs and Savings) 2421 Limner Lane, Winston-Salem, NC Phone

18 10-year Savings Projection Summary Savings based on projected annual utility expenditures of $10 Million in Assumes 3% annual increase in utility rates and 3% annual salary increase for two Energy Managers. EduCon Fees Applied to first three years only. Fee for Energy Accounting Software is at no charge for first year. Fixed Fee vs. Percentage of Savings EduCon Energy has provided consulting services to school districts based on a fixed fee structure since the company was founded. It has been our experience that energy savings resulting from a successful program over a period of several years often results in significant dollars. Even though a percentage of savings agreement funnels some of the money back to the district during the contract period, it is the consultant who comes out the big winner. We believe these are funds that should be returned to the district. These are funds that result from the efforts of district staff and could be put to better use, particularly when resources are limited. EduCon was founded and led by public school administrators. We charge what we believe to be a reasonable fee for our services. Some percentage of savings agreements require contract periods that last as much as five years. We believe that within three years, the district should be able to sustain an energy management and conservation program without continued oversight and expense. In some percentage of savings relationships, the energy managers are employed by the consultant. We firmly believe the energy managers should be employed directly with the district, ready to continue a successful program without missing a beat when our contract term has ended. Duration of Payment Term Our contract duration is three years beginning when energy managers are hired. The monthly fee will be paid to EduCon over this time (36 months x monthly fee = total fee) Limner Lane, Winston-Salem, NC Phone

19 Attachment 4a Energy Information Sheet School System/District: Union County Schools Street Address: 400 N. Church Street City/Town: Monroe State: NC Zip: Contact: Mark Strickland, Assistant Superintendent, Administration & Operations Phone: X Mark.Strickland@ucps.k12.nc.us System/District Enrollment: 42,000 ( ) Total No. Schools in System/District: 53 No. of: Elementary: 30 Middle/Jr. High: 9 High: 11 Other: 3 (Alternative) No. Mobile Classrooms: 283 No. Schools Air Conditioned: 98% of bldg. area No. Schools Controlled by Energy Management Systems (DDC): 98% of bldg. area. Total Square Footage (Including Administrative/Auxiliary Buildings): 5,742,438 SF Energy Expenditures Electricity $7,723,436 Natural & Propane Gas $1,170,033 Propane Gas $ Fuel Oil $40,569 Water/Sewer $965,359 TOTAL $9,899, Limner Lane, Winston-Salem, NC Phone

20 Attachment 4b Projected Costs and Savings Union County Schools 8/28/17 COSTS Year 1 Year 2 Year 3 Year 4 Year 5 Total Energy Managers $120,000 $123,600 $127,308 $131,127 $135,061 $637,096 Energy Accounting Software $0 $3,600 $3,600 $3,600 $3,600 $14, Limner Lane, Winston-Salem, NC Phone EduCon Fees $194,400 $194,400 $194,400 $0 $583,200 TOTAL COSTS $314,400 $321,600 $325,308 $134,727 $138,661 $1,234,696 SAVINGS $1,500,000 $1,854,000 $2,121,800 $2,294,727 $2,363,569 $10,134,095 NET SAVINGS $1,185,600 $1,532,400 $1,796,492 $2,159,999 $2,224,907 $8,899,399 Savings based on projected annual utility expenditures of $10,000,000 in Assumes 3% annual increase in utility rates and 3% annual salary increase for two Energy Managers. Monthly fees are determined based on the number of schools and buildings in your district. We gather information including annual utility costs for each energy type along with the number/square footage of all buildings. We use this information to determine the appropriate fee. Contract duration is three years. Fee for Energy Accounting Software is at no charge for first year. Union County Public Schools will not be invoiced for our agreed upon monthly fee until we can show that your accumulated energy savings exceed our fees.

21 Section 5 References and Case Studies Public School References Dr. Morgen Houchard Executive Director Operations Services Gaston County Schools P.O. Box 1397 Gastonia, NC 2805 (704) Mr. John Birath Executive Director for Operations Moore County Schools PO Box 1180 Carthage, NC (910) Mr. Eddie Anderson Chief Operations Officer New Hanover County Schools 2814 Carolina Beach Road Wilmington, NC (910) Mr. Travis Smith Executive Director of Operations Chief Financial Officer (Interim) Davidson County Schools 250 County School Rd. Lexington, NC Dr. Janet Mason Superintendent Rutherford County Schools 382 W. Main Street Forest City, NC (828) Limner Lane, Winston-Salem, NC Phone

22 Case Studies New Hanover County Schools EduCon Energy Contract - July 2011 thru June 2014 Year 1 - Hard dollar savings of $952,709 with adjusted cost savings of $1,442,900 Year 2 - Hard dollar savings of $1,230,424 with adjusted cost savings of $1,973,624 Year 3 - Hard dollar savings of $1,005,413 and adjusted cost savings of $1,783,318 Total actual savings for the three years of the program were $3,188,546 Adjusted cost savings totaled $5,199,842 The EduCon program did not include up-front fees, out-of-pocket startup costs, or requirements for new purchases or replacements of new or existing equipment. Nash-Rocky Mount Public Schools EduCon Energy Contract - September 2004 thru August 2007 Year 1 Electricity usage dropped from Base Year total of 31.4 million KWH to 26.4 million KWH. A decrease of 5.0 million (16%). Overall MBtu usage dropped from 167,400 MBtu to 137,600 MBtu. A reduction of 18%. Adjusted cost savings totaled $667,000 or 17.4% Year 2 Electricity usage further decreased to 24.6 million KWH. This represents a reduction from the Base Year of 6.8 million KWH or 22%. Total MBtu decreased an additional 13,100 MBtu to 124,500 MBtu. A 26% reduction from the Base Year. Year 2 Adjusted Cost savings were $1,132,000 or 25%. Year 3 There were further reductions in both electricity and related MBtu. Electricity fell slightly to 24.4 million KWH. The Year 3 decrease in KWH usage totaled 7.0 million KWH. The Year 3 decrease in MBtu s compared to the Base Year totaled 44,700 MBtu s. Year 3 Adjusted Cost savings was $1,178,000. Program Total For the 3-year period electricity dropped by 20% or 18.9 million KWH. This electricity reduction represented $2.1 million adjusted cost savings. The total adjusted cost savings for all controllable services (exception storm water) for the three-year period totaled $3.0 million Limner Lane, Winston-Salem, NC Phone

23 Rutherford County Schools EduCon Energy Contract June 2009 to May 2012 Year 1 o Hard Dollar Savings - $400,620 (18.4%) o Adjusted Cost Savings - $696,872 (28.2%) o Electricity KWH Savings million (25.5%) o Total Energy MBtu Savings - 15,600 (17.1%) Year 2 o Hard Dollar Savings - $322,200 (14.8%) o Adjusted Cost Savings - $540,886 (22.6%) o Electricity KWH Savings million (26.4%) o Total Energy MBtu Savings - 18,500 (20.2%) Year 3 o Hard Dollar Savings - $433,400 (19.9%) o Adjusted Cost Savings - $831,600 (32.3%) o Electricity KWH Savings million (30.9%) o Total Energy MBtu Savings - 30,600 (33.5%) Three Year Cumulative o Hard Dollar Savings - $1,156,000 (17.7%) o Adjusted Cost Savings - $2,069,400 (27.8%) o Electricity Hard Dollar Savings - $758, % o Electricity Usage Savings million KWH % o Water-Irrigation Usage Savings million gallons 2421 Limner Lane, Winston-Salem, NC Phone

24 2421 Limner Lane, Winston-Salem, NC Phone Reference Letter Gaston County Schools

25 Reference Letter New Hanover County Schools 2421 Limner Lane, Winston-Salem, NC Phone

26 Reference Letter Mitchell County Schools [Type here]

27 Final Thoughts For most organizations, energy is one of the largest budget line items. As costs continue to rise along with our energy demand, EduCon will help you find energy savings to avoid cutting elsewhere within your budget. So, why consider a program with EduCon? There are NO upfront implementation costs. Our consulting fees are significantly lower than any other company offering a similar program and we can get you to the desired level in three years as opposed to four or five. By contract, there is no financial risk to your organization. EduCon does not invoice for services until after the savings exceeds our fees. EduCon has a strong record of saving organizations 20-25% on their energy costs. Many organizations only reach less than 10% savings trying to do it on their own. We develop a plan specific to your needs to maximize energy savings. During EduCon's 20 years plus of service, all together we have helped our clients save over $50 million. EduCon does help organizations utilize the right equipment and technology, but our major focus is on people. We emphasize awareness and change of current behavior without requiring additional staff time, effort and costs. Our program does not require capital improvements in order to generate energy savings. We may assist facilities with support for replacement of HVAC equipment, lighting etc., however; our focus is on operating existing systems properly and human behavior.

28 NORTH CAROLINA UNION COUNTY Energy Savings Consulting Contract WHEREAS, Educational Consulting, Inc., hereinafter referred to as "EDUCON", is a Corporation incorporated under laws of the State of North Carolina which employs personnel who have experience in the design and implementation of energy conservation measures; and WHEREAS, the Union County Public Schools Board of Education, hereinafter referred to as the "BOARD", is a local board of education created under Chapter 115C, Section 40 of the General Statutes of North Carolina; and WHEREAS, EDUCON and the Board agree that EDUCON will provide the Board with consultation, training, and services for the purpose of reducing the cost and consumption of energy incurred by the Union County Public School System (the School System ) and that EDUCON and the Board intend to enter into this Energy Savings Consultation Contract for the evaluation, design, recommendation, and implementation of energy conservation measures in the School System's facilities. This contract explicitly does not include the evaluation, recommendation, or implementation of the design and installation of new or additional equipment or the repair or replacement of existing equipment. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 1.0 Responsibilities of EduCon 1.1 Provide ongoing energy audits of all School System facilities to determine how energy is being used within the School System and, using proven energy conservation strategies, recommend strategies and assist in the implementation of these strategies to reduce energy consumption. 1.2 Increase employee awareness of energy conservation measures and recommend behavioral change strategies designed to conserve energy. 1.3 Provide on-site training of energy manager employed by the Board in all phases of energy management including the monitoring of all facilities. 1.4 Implement an energy accounting system to be purchased by the Board, which will: 1.41 accurately track, analyze, and report energy consumption and costs; 1.42 store historic and current data on energy usage by the school district; 1.43 analyze trends in energy usage and identify potential problems; 1.44 provide monthly and annual reports on energy cost and consumption that provide the basis for important energy management decisions Limner Lane, Winston Salem, NC Phone alarowe@educonenergy.com

29 1.5 Provide local leadership, coordination, and assistance as follows: 1.51 assist in recruitment and selection of an energy manager by the School System; 1.52 work with the administration in providing local leadership and coordination of the energy conservation program; 1.53 assist in the development of School System-wide energy conservation guidelines; 1.54 involve the staff of each school in controlling the use of energy in their building(s); 1.55 assist the Board and its administration in focusing awareness and a change of current behavior regarding the use and conservation of energy; and 1.56 analyze schedules and building operation procedures to maximize energy efficiency while maintaining the comfort of staff and students. 1.6 Assist the Board and its administrative staff in developing and providing information to the public showing that they are spending public energy dollars wisely and are conserving valuable energy resources. 1.7 Recommend to the Board an energy policy for its approval. 1.8 Provide four (4) follow-up visits to the School System in the year immediately following the term hereof. 1.9 Deliver accrued energy savings/cost avoidance which exceeds the amount of monthly payments contemplated under Section 4.3 herein. Provided, however, EDUCON shall have twelve (12) months during which to achieve consistent accrued energy savings/cost avoidance before this would be deemed a term of default under this contract. 2.0 OBLIGATIONS OF THE BOARD. In order for the reimbursement obligation of EDUCON (as discussed in 6.0 hereof) to be effective and enforceable, the Board must do all of the following: 2.1 Employ two full-time Energy Managers who will be employees of the School System and who will be trained by and work cooperatively with EDUCON. The salary and benefits of the energy manager will be agreed upon by the parties. 2.2 Implement the energy conservation program recommended by EDUCON. 2.3 Adopt a Board energy policy and/or guidelines as recommended by EDUCON. 2.4 Encourage support of EDUCON'S energy conservation program by school district administrators and staff. 2.5 Purchase or lease, at the Board's expense, an energy accounting software recommended by EDUCON at a cost of $3,600 annually and provide the computer hardware necessary to operate the recommended software. Use of the software for the first year of the contract will be at no charge Limner Lane, Winston Salem, NC Phone alarowe@educonenergy.com

30 2.6 Agree that all materials which are provided by EDUCON and are copyrighted, confidential or proprietary to, and trade secrets of EDUCON, will be held confidential by the Board and its agents and employees to the extent allowed by applicable law, and will not be reproduced or used by the Board, its agents or employees, without the prior written consent of EDUCON. All materials provided by EDUCON shall be deemed confidential and private, and shall not be public records as provided by N.C. Gen. Stat and (2) unless and until such time as G.S and/or G.S may be amended, at which time the Board will handle such information as provided under said statues, as amended. A list of the categories of such copyrighted, confidential, or proprietary ideas or items and any trade secrets will be provided to the Board by EDUCON. 2.7 If the Board reviews EDUCON's recommendations and initially decides not to employ some or all of such recommendations and this contract is subsequently prematurely terminated, and the Board subsequently employs one or all of EDUCON's suggestions, then the Board will pay to EDUCON as liquidated damages the amount saved by utilizing the EDUCON suggestion instead of the previously existing Board procedure, said payment to be for the remainder of the (3) three year contract while using EDUCON suggestion. The payment shall be determined by EDUCON and the Board and if not agreed upon, then by mediation as in Section Provide EDUCON with accurate information concerning energy expenditures and square footage of the facilities in the School System. 3.0 Term 3.1 The initial term of this Agreement shall commence on the first day of the month immediately following the execution of this Agreement by both parties and the Board s employment of two energy managers (the Commencement Date ) and continue for a period of three (3) years. 3.2 The term may be renewed and extended for up to two successive one (1) year terms by the Board by notifying EDUCON not less than sixty (60) days prior to the end if the initial three year term and each year thereafter 4.0 Fees 4.1 Beginning on the Commencement Date, the annual fee for this contract shall be $194,400 and will be payable to EDUCON in the manner described in Section If the event the Board elects to renew and extend the agreement for one or more additional years, EDUCON agrees to reduce its annual fee by 50% from the annual fee stated in paragraph 4.1 above Limner Lane, Winston Salem, NC Phone alarowe@educonenergy.com

31 4.3 The annual fee shall be payable by the Board to EDUCON in equal monthly installments of $16,200 during the initial 3-year term; however, the BOARD shall not be required to make a monthly payment until the first month in which accrued energy savings/cost avoidance exceeds the amount of the monthly payments set out herein, at which time the Board will pay EDUCON all the accrued monthly payments to the extent that the savings/cost avoidance which have accrued through that month equal to or exceed the amount of accrued monthly payments. The amount in which the Board pays to EDUCON in any year of this contract shall not exceed the amount described in Section 4.1 above. 4.4 The annual fee during any additional and successive one year term shall be paid monthly by the Board to EDUCON in equal monthly installments that are 1/12 th of the annual fee as set forth in paragraph 4.3 above. 4.5 Accrued energy savings/cost avoidance is defined as the total of energy savings/cost avoidance as shown on the monthly energy accounting reports from the beginning of the contract with each month's savings/cost avoidance being added to the totals of the previous month's report. Energy savings/cost avoidance for a month, calculated by the energy tracking and accounting software, is determined by multiplying the change in usage for that month compared to the same month of the base year by the current unit cost of that particular energy with adjustments being made for variations in, billing periods, energy costs, floor area, etc. 5.0 Termination 5.1 Either party may terminate this Energy Savings Consulting Contract in the event the other party fails or refuses to perform its obligations as set forth in the contract. Before terminating the Contract, the party desiring to terminate the Contract must give thirty (30) days written notice in advance of their intent to terminate the Contract to the other party setting forth with specificity the reasons for such termination. The party receiving the notice of intention to terminate the Contract shall have twenty one (21) days from the receipt of the notice of intention to terminate the Contract to correct any defects or deficiencies in its performance to the satisfaction of the other party so that all obligations under this Contract are fulfilled. If the party receiving the notice of the intention of the other party to terminate does not come into compliance with the obligations under this Contract, then the Contract is terminated. Additionally, both parties agree to review the status and progress of the energy savings program at the completion of twelve months service hereunder. 5.2 The parties may terminate this contract at any time by mutual agreement. 5.3 Any dispute resulting from this Contract may be submitted to mediation at the request of either party. Cost of mediation shall be shared equally by EDUCON and the Board. 5.4 If this contract is terminated for any reason, other than its natural expiration, the Board agrees to promptly return to EDUCON any and all materials and the confidential items previously supplied by EDUCON and to immediately cease and desist from using any of the activities or programs implemented at the behest of EDUCON provided Board may continue to use recommendations subject to damages as in Limner Lane, Winston Salem, NC Phone alarowe@educonenergy.com

32 6.0 Reimbursement If at any time during the contract period the accrued energy savings/cost avoidance falls below the sum of payments due EDUCON then EDUCON will suspend invoicing the Board until such time as energy savings/cost avoidance equals or exceeds the sum of monthly payments. It is the intent of the parties that no monies will be owed to EDUCON under this contract until energy savings/cost avoidance exceeds the amount of the monthly payments set forth under 4.3 herein. 7.0 Continuation of Procedures During and at the expiration or termination of this contract, Board may initiate or continue any energy savings procedures of its choice with no further obligation to EDUCON. [SIGNATURE PAGE FOLLOWS] 2421 Limner Lane, Winston Salem, NC Phone

33 IN WITNESS WHEREOF, the parties have executed this Energy Savings Consulting Contract on the day and year written below. THIS DAY OF 2017 Educational Consulting, Inc. By: Board of Education By: Nelson Jessup CEO Chairperson Attest: Secretary (Affix seal) 2421 Limner Lane, Winston Salem, NC Phone

34 Energy Management and Conservation Program Submission Deadline: Cenergistic 5950 Sherry Lane, Suite 900 Dallas, TX

35 Cover Letter 1 Cover Letter November 17, 2017 Mr. Mike Ritz, Environmental Services Manager Union County Public Schools 201 Venus Street Monroe, North Carolina Re: RFQ for Energy Management and Conservation Program Dear Mr. Ritz: Cenergistic is pleased to provide the enclosed response to the Union County Public Schools Energy Management and Conservation Program. We applaud Union County Public Schools recognition that systematic energy conservation can both reduce energy resource consumption and save money. Cenergistic has more than three decades of success partnering with districts like Union County Public Schools to achieve an average of 26% savings in utility costs. Our comprehensive energy management and conservation program helps schools keep critical budget funds in the classroom without sacrificing student comfort or committing to new equipment installations. Under the Cenergistic program, savings materialize within weeks or months, not years, providing funds that help preserve critical academic programs and staff positions. Our award-winning, results-driven approach is driven by Cenergistic s in-house engineering, energy, building system, and technology expertise, and coupled with advanced technology and data tools. With over 120 industry licenses, certifications, and advanced degrees and an average of eight years of industry experience per employee, our 254 employees make up one of most qualified teams in the industry. In addition, Cenergistic s program includes on-site, full-time Energy Specialists, employed, trained, and mentored by Cenergistic for the term of the energy savings contract. Cenergistic confirms that our company meets the minimum qualifications included in the RFQ. Cenergistic welcomes any questions regarding this proposal, as well as the opportunity to discuss our proposal, comprehensive program, and methodology in more detail. We sincerely appreciate this opportunity and look forward to partnering with Union County Public Schools to conserve both energy and critical budget funds. Sincerely, John Bernard, CPA President, Cenergistic 2017 Cenergistic LLC

36 Table of Contents Table of Contents Cover Letter... 1 SECTION 1: Program Criteria Background and Experience Program Overview Savings Guarantee Areas of Expertise... 4 SECTION 2: Services Program Approach Timeline and Deliverables ENERGY STAR Recognition Communications & Reporting SECTION 3: Measurement & Verification SECTION 4: Savings Projection & Program Fees Savings Guarantee Program Fee Savings Projection SECTION 5: References and Case Studies References Case Studies Reference Letters SECTION 6: Supplemental Information Proprietary Technology & Tools Industry Recognition & Awards Program Risks Litigation Terminated Contracts Bankruptcy SECTION 7: Service Agreement Cenergistic LLC

37 Table of Contents List of Tables Table 1: Cenergistic Staff Licenses & Certifications... 6 Table 2: Projected Savings Analysis Table 3: Sample of Cenergistic K-12 Client Savings Table 4: Cenergistic Client References List of Figures Figure 1: Cenergistic Energy Savings Program Overview... 3 Figure 2: Cenergistic Staff Areas of Expertise... 5 Figure 3: Cenergistic Organizational Chart Figure 4: The Cenergistic Behavioral Energy Conservation Approach Figure 5: Cenergistic's Timeline to Savings Figure 6: EnergyCAP building Power View sample screenshot Figure 7: Sample of Cenergistic's Proprietary Tools for Behavior-Based Energy Conservation Cenergistic LLC

38 Program Criteria 2 SECTION 1: Program Criteria 1.1 Background and Experience Cenergistic is a technology-powered, data-driven national energy conservation consulting firm. Since 1986, our in-house engineering and conservation experts have helped more than 1,400 public education, higher education, government and health industry clients save over $4.8 billion across 22,000 buildings by optimizing systems and schedules, conserving energy, and improving classroom and working environments. Our behavioral-focused energy conservation approach is unique in the industry changing behaviors to realize significant savings. It comes with no risk, no debt, and no equipment to buy. This awardwinning approach is built on a proprietary methodology which optimizes clients infrastructure, improves internal processes and changes behavior to ensure that savings endure. Coupled with patented technology tools to identify and analyze savings opportunities, Cenergistic s behavior-based energy conservation program enables our clients to achieve an average of 26% in energy cost reductions. Legal Name: Company Legal Structure: Cenergistic LLC Federal Tax ID: Year Formed: 1986 State of Formation: Limited Liability Company Texas # Employees: 250+ Markets: Primary Contact for the Proposal: The Cenergistic Story K-12 school districts, higher education, health care, large churches John Bernard, CPA President, Cenergistic 5950 Sherry Lane, Suite 900; Dallas, TX / jbernard@cenergistic.com Cenergistic is the product of a school board member s resolve to direct more money to the classroom by reducing operational costs. As a school board member in Wichita Falls, Texas in the early 1980s, Dr. William S. Spears designed a behavioral utility savings program to mitigate the expected electricity increase from adding air conditioning to 22 of the district s 33 schools. The program was so successful that the schools electricity costs decreased, even with the new air conditioners, the year following the installation. With the support of the school board, the program 2017 Cenergistic LLC

39 Program Criteria 3 continued, and in 1986, both the school and Dr. Spears were presented with an Energy Innovation Award by both the U.S. Department of Energy (DOE) and the State of Texas for energy conservation success accomplished through organizational and behavioral change. 1.2 Program Overview For 31 years, Cenergistic has partnered with clients like Union County Public Schools to reduce energy consumption for our clients through a highly effective behavioral energy conservation program. Achieving this goal requires a combination of practical experience in organizational behavior, technical expertise, the ability to effectively execute a complex program and the ability to teach an organization to own and sustain its tailored program for the long haul. Using Cenergistic s technology, data, methodology and expertise, these clients have achieved energy savings averaging 26% and often significantly more. Figure 1: Cenergistic Energy Savings Program Overview 2017 Cenergistic LLC

40 Program Criteria Savings Guarantee Cenergistic s program and services are completely funded from your existing utility budget. Our program does not require up-front capital investment or financing. Such requirements only delay the point in time to realize net savings. With our program, your return on investment is measured in months, not years. Our savings guarantee eliminates financial risks, beginning with the very first year of the program and continuing through the full contract period. Our clients also avoid all risks commonly associated with large scale performance contracts, such as equipment installation failures, poor contractor performance, etc. A. Long-Term Financial and Environmental Benefits Cenergistic has a 31-year track record implementing our behavior-based energy conservation program. Cenergistic has many clients who maintain the energy program and understand that maximizing energy savings and positive environmental impact is a worthwhile investment and neverending effort. B. Measurement and Verification (M&V) Critical to the success of any business initiative is having a measurement and verification process that evaluates the true performance of the initiative. Reports must represent as accurately as possible actual outcomes so senior administrators can determine whether the investment they are making in an initiative is providing a worthwhile return. Cenergistic will work with the district to establish benchmarks that will be used to determine the success of the Program and will be measured on a monthly basis. 1.4 Areas of Expertise Unlike other providers, Cenergistic does not rely on subcontractors to execute and manage our energy savings program. Instead, we use our internal team of highly educated and experienced energy conservation experts. Cenergistic s engineers and experts hold over 130 advanced degrees, licenses, and industry certifications. Collectively, the Cenergistic staff has more than 1,800 total years in energy conservation, more than any energy conservation technology firm. Our engineers inspect and ensure that every piece of equipment, and every system, is optimized for effectiveness and efficiency. We work directly with the Energy Specialists and other members of Union County Public Schools staff to ensure all stakeholders are committed to the energy conservation program. Cenergistic s employees average at least eight (8) years of experience in the energy conservation industry Cenergistic LLC

41 Program Criteria 5 Figure 2: Cenergistic Staff Areas of Expertise Key Energy Conservation Areas of Expertise Behavior Modification Boiler and Steam Systems Building Commissioning Building Envelope Cogeneration Data and Utility Rate Structure Analysis Electrical Systems EMS, Building Automation and Control Systems Energy Audits and Instrumentation Energy Management Green Buildings, LEED and ENERGY STAR HVAC Systems Indoor Air Quality Interval Data Analysis Lighting Maintenance Management Codes and Standards, ASHRAE requirements Mechanical Engineering Moisture and Humidity Management Pneumatic Systems Smart Grid Thermal Energy Storage Systems Turf and Irrigation Demand Management Ancillary Capacities Accounting Biology Business Communications Computing System Design Construction Management Education Human Resources Information Systems Management Nonprofit Management and Leadership Organizational Management Public Relations Public School Administration School District Finance A. Licenses & Certifications Cenergistic maintains an in-house team of industry experts with the education, licenses, and certifications critical to understanding and generating energy conservation savings for K-12 and higher education clients. Collectively, our staff holds the following: 7 doctorates; 24 master s degrees; 10 Professional Engineer (P.E.) licenses, and 29 Association of Energy Engineers (AEE) Certified Energy Manager (CEM) certifications. The table below lists additional certifications and licenses currently held by our staff Cenergistic LLC

42 Program Criteria 6 Table 1: Cenergistic Staff Licenses & Certifications Energy Engineering Building Energy Simulation Analyst (BESA) Certified Building Commissioning Professional (CBCP) Certified Demand Side Manager (CDSM) Certified Energy Manager (CEM) Certified Indoor Air Quality Professional (CIAQP) Certified Lighting Efficiency Professional (CLEP) Certified Measurement and Verification Professional (CMVP) Certified Sustainable Development Professional (CSDP) Certified Water Efficiency Professional (CWEP) Information Systems Microsoft Certified Network Engineer (MCNE) Microsoft Certified Systems Engineer (MCSE) Microsoft Certified Systems Administrator (MCSA) Professional Engineers Mechanical Industrial Civil/Environmental LEED Accreditation LEED Accredited Professional (LEED AP) LEED Building Design & Construction (LEED BD+C) Quality Control Certified Quality Engineer Certified Quality Auditor Building Systems Building Operator Certification (BOC) Heating, Ventilation, Air Conditioning (HVAC) Certified Landscape/Irrigation Professional (CLIA) Key Personnel Led by the Program Director, Cenergistic s team of in-house engineering and energy management implements our proven behavioral energy conservation methodology. Cenergistic assigns in-house engineering and conservation experts to address client needs and maintain maximum savings. Scheduled by the Program Director, these Consultants work on a consistent on-site rotation with the Energy Specialists for Union County Public Schools. In addition to this on-site expertise, Cenergistic s Center of Excellence provides remote support and analysis by Engineers, Energy Management Services (EMS) specialists, and Measurement and Verification Professionals. The Center of Excellence can remotely review many energy management systems and provide remote diagnostics and assistance, as well as schedule regular remote sessions to ensure the program is achieving maximum savings. Finally, Cenergistic s key personnel include human resources professionals to hire and manage the Energy Specialists as well as marketing personnel to coordinate public recognition and/or awards for Union County Public Schools success during the contract term Cenergistic LLC

43 Program Criteria 7 Leadership & Management Team CENERGISTIC CHAIRMAN & FOUNDER Dr. William S. Spears Hire Date: 1986 (Founder) Education: Doctorate of Business Administration, Wayne Huizenga Graduate School of Business and Entrepreneurship at Nova Southeastern University; MBA from Wharton School at the University of Pennsylvania and a Bachelor s of Science Degree from Oklahoma State University Industry Experience: 33 years of experience in public school energy management Past Roles: Dr. Spears served the Wichita Falls Independent School District as Trustee, Board Secretary, Board Vice President and Chairman of the Facilities Committee for six years. Organizations: Dr. Spears is a member of the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc. (ASHRAE) and the Association of Energy Engineers. In addition, Dr. Spears serves on the boards of numerous civic organizations and financial institutions. including the following: American Cancer Society, Board Member, Co- Chairman of Cattle Baron s Ball Fund Raiser Christian Businessmen s Committee of Wichita Falls, Inc., Founder, Chairman of the Board City National Bank, Director (1969, 1988), Chairman of Directors Loan Committee Commission, Board Member Ford s Theatre, Founding Member, National Advisory Board Insight for Living, Chuck Swindoll Ministries, Board Member, Executive Committee Member Interfaith Ministries, Board Member, Chairman of Finance Committee City of Wichita Falls Planning and Zoning Lincoln Forum, Gettysburg, PA, Board Member Member AEE, Association of Energy Engineers Member ASHRAE, American Society of Heating, Refrigerating and Air-Conditioning Engineers North Texas Council Boy Scouts of America, Board Member North Texas Easter Seal Rehabilitation Center, President Oklahoma State University, Benefactor, William S. Spears School of Business Red River Civil War Roundtable, Founder and President University of Texas Medical School, Board Member Times Publishing Company Charities, Founder and President Wichita Falls Board of Commerce and Industry, Board Member Wichita Falls Museum and Art Center, Board Member Wichita Falls Symphony, Board Member Young Life, Founder and Board Member, Wichita Falls Chapter

44 Program Criteria 8 Leadership & Management Team Vice Chairman Dr. Randy Hoff, PE, CEM, CMVP CHIEF EXECUTIVE OFFICER Ray Hood PRESIDENT John E. Bernard, CPA Hire Date: June 2004 Education: Doctor of Engineering, Engineering Management, Southern Methodist University; MBA, Marquette University; Bachelor s Degree, Industrial Engineering, Texas A&M Licenses/Certifications: Registered Professional Engineer (Texas); Certified Energy Manager; Certified Measurement and Verification Professional; Certificate in Sustainability from the Environmental & Civil Engineering Department at Southern Methodist University Industry Experience: 13 years of experience in operational energy conservation; experience in corporate auditing and supplychain logistics Past Roles: Dr. Hoff joined Cenergistic after broad and varied experience with General Electric Corporation, during which he earned his Six Sigma Certified Master Black Belt through GE s renowned continuous improvement process. Member of the Advisory Council for the Industrial & Systems Engineering Department at Texas A&M University. Hire Date: October 2017 Education: Bachelor of Science, Economics, University of Pennsylvania the Wharton School Industry Experience: More than 25 years of experience as chief executive of technology companies including CEO of an international, publicly-traded software firm. Past Roles: Mr. Hood started his career with PriceWaterhouse where he earned a CPA. He later founded technology companies MicroTrek (financial risk management), Neptune Systems (logistics solutions) which he merged with Dallas Systems to form EXE Technologies taking it public in He also served as CEO of SensorLogic (M2M/IoT software), Qumu Inc. (secure enterprise video software), and Allegro Development (energy trading and risk management software). Mr. Hood is on the Board of Directors of OneNetwork, a cloud-based demand driven supply chain solution provider and spent 10 years on the Executive Board of Advisors at the SMU School of Engineering. He is a graduate of the Wharton School at the University of Pennsylvania and a published author of the book Using Technology to Transform the Value Chain. Hire Date: March 1995 Education: MBA, magna cum laude, Oklahoma City University; Bachelor s Degree, Accounting, summa cum laude; University of Central Oklahoma; Bachelor of Music Degree, cum laude, Oklahoma Baptist University Licenses/Certifications: Certified Public Accountant (CPA) Industry Experience: 21 years of operational energy conservation experience Past Roles: Mr. Bernard has been a CPA since 1986; member of the Oklahoma Society of Certified Public Accountants. Eight years of experience with Kerr-McGee Corporation in a variety of financial and accounting capacities, including development and administration of budgeting and income projections for the Exploration and Production Division. Work with Ernst & Young and Southwestern Bell Telephone.

45 Program Criteria 9 Leadership & Management Team CHIEF FINANCIAL OFFICER Paula L. Johnson, CPA CHIEF OPERATIONS OFFICER Bryan D. Sons, CEM, CMVP, CSDP EXECUTIVE VICE PRESIDENT, ENGINEERING Jack Bullock, PE, CEM, BESA Hire Date: January 2010 Education: MBA from Webster University and a Bachelor s Degree from Maryville University Licenses/Certifications: Certified Public Accountant (CPA) Past Roles: Ms. Johnson has 25 years of accounting experience including nine years with McCormack Baron Companies and six years with Baldor Electric. Hire Date: January 1996 Education: MBA, Houston Baptist University with dual emphasis in Computing System Design and Finance; Bachelor s Degree, Management Information Systems and Quantitative Studies, Texas Tech University Licenses/Certifications: Certified Energy Manager, Certified Measurement and Verification Professional, Certified Sustainable Development Professional Industry Experience: 26 years of experience in energy management services, 21 years of experience in operational energy conservation Past Roles: Mr. Sons is the former Senior Project Coordinator for Database/ Telecommunications for Exxon Computing Services Company Worldwide, and Technical Support & Computing Security Manager for Exxon Credit Card Systems, Exxon USA. Hire Date: July 2008 Education: Bachelor of Science Degree, Mechanical Engineering, Kennedy Western University; AS, Electrical Engineering, Hutchinson College Licenses/Certifications: Professional Engineer, Microsoft Certified Network Engineer, Certified Energy Manager, Certified Building Energy Simulation Analyst Industry Experience: 33 years of experience with energy management systems Past Roles: Mr. Bullock has numerous years of experience with the home and building control division for one of the leading control systems companies in the nation, earning many national awards and company certifications. He was nationally recognized as an engineering leader for being able to develop complex technical solutions to meet customer requirements.

46 Program Criteria 10 SENIOR VICE PRESIDENT, GENERAL COUNSEL Judge Roy T. Sparkman Operations Team EXECUTIVE VICE PRESIDENT, OPERATIONS Matthew Bower, PE, CEM, CIAQP, CMVP SENIOR VICE PRESIDENT, CLIENT OPERATIONS David Buroker, PE, CEM, CMVP, CQM Hire Date: July 2009 Education: Juris Doctor, Baylor University School of Law; Bachelor s Degree, Business Administration, Midwestern State University Licenses/Certifications: Board Certified by Texas Board of Legal Specialization, Civil Trial Law, ; Certificate of Special Competence from the Texas College for Judicial Studies; AV rated by Martindale-Hubbell Industry Experience: Judge Sparkman has provided legal services to Cenergistic for seven years Past Roles: Judge Sparkman served as 78 th District Judge for over eight years. He served on Wichita Falls Independent School District (WFISD) Board of Trustees for 12 years, including two terms as President, WFISD Idea Grant Steering Committee; First Chairman for Wichita County Education District. He served as committee chairman for First Baptist Church of Wichita Falls through a $23+ million-dollar building project as well as fulfilling other committee responsibilities. Hire Date: June 2009 Education: MBA, Indiana University; Bachelor of Science Degree, Civil/Environmental Engineering, Michigan State University Licenses/Certifications: Professional Engineer, Certified Energy Manager, Certified Indoor Air Quality Professional, Certified Measurement and Verification Professional Industry Experience: Seven years of experience in energy conservation Past Roles: Mr. Bower served two years with the Peace Corps as an Environmental Engineer in the small south African country of Lesotho. Returning to the United States, Mr. Bower taught high school math and coached tennis, and served as sales and project manager for a large general contractor. Organizations: Avid triathlon competitor, and with his wife supports the Leukemia Lymphoma society through Team in Training events. Hire Date: June 2009 Education: Master s and Bachelor s Degrees, Industrial Engineering, Texas A&M University; MBA, Le Tourneau University. Licensed Professional Engineer, Texas Licenses/Certifications: Licensed Professional Engineer (TX), Certified Energy Manager, Certified Measurement and Verification Professional, Certified Quality Manager Industry Experience: Seven years of experience in operational energy conservation services Past Roles: Mr. Buroker s experience in operations, process management, and quality was gained through a variety of leadership roles with Eastman Chemical Company and EXEL Inc. ack Bullock, PE, CEM, BESA Executive Vice President, Engineering

47 Program Criteria 11 Operations Team SENIOR VICE PRESIDENT, QUALITY ASSURANCE Eileen Byrd, CPA, CEM, CMVP, CIA, CIAQP, CQE Hire Date: August 2010 Education: Master s Degree, Accountancy, Wayne Huizenga School of Business, Nova Southeastern University; Bachelor s Degree, Business Management, University of South Carolina-Aiken Licenses/Certifications: Certified Public Accountant, Certified Energy Manager, Certified Internal Auditor, Certified Quality Engineer, Certified Quality Auditor, Certified Quality Technician, Certified Indoor Air Quality Professional and Certified Measurement and Verification Professional Industry Experience: Six years of experience in operational energy conservation. Leads Cenergistic s Data Quality division Past Roles: Ms. Byrd s professional experience includes leading the internal auditing team for Alcon Laboratories. SENIOR VICE PRESIDENT, CLIENT OPERATIONS Christina Piper Ezzell, CMVP Hire Date: November 2009 Education: Earning Bachelor s Degree, Business Management, Liberty University Licenses/Certifications: Certified Measurement and Verification Professional Industry Experience: Seven years of experience in operational energy conservation Past Roles: Ms. Ezzell has more than 10 years of commercial property experience handling property acquisition, zoning issues, renovation and construction for a number of properties. SENIOR VICE PRESIDENT, CLIENT OPERATIONS Mike Gullatt Hire Date: December 2008 Education: Bachelor s Degree, Public Relations, Gaylord College of Journalism and Mass Communications, University of Oklahoma Industry Experience: Seven years in operational energy conservation Past Roles: Mr. Gullat s 20-plus year communications career began with ABC Sports and included newspapers and magazines. He received recognition for his work from the United Press International. He also worked for the New York Citybased public relations firm Sumner Rider & Associates, managing national and regional media accounts. He operated his own public relations and marketing consulting agency.

48 Program Criteria 12 Operations Team SENIOR VICE PRESIDENT, CLIENT OPERATIONS James Newkirk, CEM, CMVP Sales Team SENIOR VICE PRESIDENT, NATIONAL SALES Lynn Pace, CEM, CIAQP SENIOR VICE PRESIDENT Mervin Reed Hire Date: October 2012 Education: Master s Degree, National-Louis University, Chicago; Bachelor s Degree, English, Shepherd University, West Virginia Licenses/Certifications: Certified Energy Manager, Certified Measurement and Verification Professional Industry Experience: 10 years of experience in operational energy conservation Past Roles: After a career in education, Energy Specialist for Marian County Schools, Ocala, Florida. In seven years, saved more than $16 million. Earned $600 thousand in non-match energy grants for the district. Hire Date: August 2004 Education: Master of Business Administration, Southern Methodist University; Bachelor s Degree, Southeastern Oklahoma State University Licenses/Certifications: Certified Energy Manager, Certified Indoor Air Quality Professional Industry Experience: 13 years of experience in operational energy conservation. Mr. Pace has led Cenergistic teams in operations and marketing Past Roles: More than 25 years of broad experience in the transportation and newspaper industries, distinguishing himself as a strong leader by integrating varied functions to support the core business. He served as Nationwide Business Manager for a large moving firm, managing nationwide forwarding and brokerage operations for commercial and Department of Defense markets. He worked his way up in the newspaper business from a young paper route carrier to Director of Operations for a regional newspaper, handling a wide array of responsibilities for newspaper operations. Hire Date: May 2001 Education: Bachelor s Degree, Mississippi Valley State University; earning Master of Arts in Christian Leadership at Beulah Heights University Industry Experience: 20 years of experience in operational energy conservation. Mr. Reed primarily serves Cenergistic in Energy Specialist Placement and Account Management Past Roles: Mr. Reed is former business manager for Greenville Public Schools in Mississippi, more than 12 years of experience in school and government accounting with an emphasis on technology, construction and grants. Served as a Military Policeman for the U.S. Army with special training in stress management and behavioral counseling. He was also Energy Specialist for Greenville Public Schools, saving that district more than $800,000 an overall 31 percent savings.

49 Program Criteria 13 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Anthony Adams Hire Date: September 2013 Education: Bachelor s Degree, Business Administration, Strayer University; Associates of Science, Avionics Technology; technical degree in business Industry Experience: 16 years of experience in operational energy conservation. Mr. Adams has expertise on a variety of building automation and controls systems Past Roles: Following a career in the United States Air Force as an F-15/F-111 Automatic Flight Controls and Avionics Specialist, turned to energy management systems, working for industry leaders. Diverse automation background, with pharmaceutical, clinical and clean room environment experience as well as broad building automation and controls technician expertise. VICE PRESIDENT, ENERGY ENGINEER Dean Amsden, PE, CEM,CIAQP, CLIA CMVP Hire Date: November 2009 Education: Master s Degree, Environmental Engineering, Oregon State University; Bachelor s Degree, Civil Engineering, Montana State University Licenses/Certifications: Professional Engineer, Certified Landscape/Irrigation Professional, Certified Energy Manager, Certified Indoor Air Quality Professional, Certified Measurement and Verification Professional Industry Experience: Seven years of experience in operational energy conservation. Engineering, irrigation and technical consultant Past Roles: U.S. Navy, 24 years, Civil Engineer Corps Officer, combat tours around the world. VICE PRESIDENT, ENERGY CONSULTANT Colin Barrett, CEM Hire Date: March 2011 Education: Bachelor s Degree, Speech Pathology, University of Florida Licenses/Certifications: Certified Energy Manager Industry Experience: 10 years of experience in operational energy conservation. Past Roles: Mr. Barrett taught in the Marion County School System, Ocala, Florida seven years. Took on the job of Energy Specialist when that system hired Energy Education (now Cenergistic). In the program s first five years, led the district s program to save more than $10 million. Vice President, Energy Consultant

50 Program Criteria 14 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Gary Bressman VICE PRESIDENT, ENERGY CONSULTANT Alisha Burris VICE PRESIDENT, ENERGY CONSULTANT Melissa Chabek, CLIA Hire Date: January 2013 Education: Master of Science in Education/Administration, University of Central Missouri; Bachelor of Science in Education, William Jewell College Licenses/Certifications: Certified Masters in Athletic Administration, William Jewell College Industry Experience: Four years of experience in operational energy conservation Past Roles: Retired Educator, School Administrator, Independence, Missouri School District; Numerous educational, athletic and professional organizations and committees. Owner/operator, Heart of America Sports Surfacing LLC. National Director of Partnership Development for Astroturf Hire Date: April 2007 Education: Master s Degree,. Leadership Administration, Austin Peay State University, Tennessee; Bachelor s Degree, Secondary Education, English major, computer science endorsement, Indiana University Licenses/Certifications: English, English as a Second Language, Elementary Education, Media Specialist, School Principal Industry Experience: 10 years of experience in operational energy conservation Past Roles: Taught middle school language arts and computer science: Henderson County, KY; Christian County, KY; Sarasota, Florida. Served on numerous leadership committees, completed Sarasota County Schools Leadership Academy. Nominated for Disney s Teacher of the Year and nominated Who s Who of American Teachers. Served Sarasota County Schools as Energy Specialist eight years before transitioning to Cenergistic. Hire Date: February 2012 Education: Bachelor of Applied Studies, McMurry University, Texas Licenses/Certifications: Certified Landscape and Irrigation Professional, English as a Second Language, S.S. Industry Experience: Five years of experience in operational energy conservation Past Roles: Teacher, Abilene ISD, 22 years. Selected to participate in national Teaching American History Grant three consecutive years. Served AISD as Energy Specialist three years before transitioning to Cenergistic.

51 Program Criteria 15 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Butch Collier VICE PRESIDENT, ENERGY CONSULTANT David Goff VICE PRESIDENT, ENERGY CONSULTANT Dale Grantham, CEM, CMVP, CIAQP Hire Date: July 2015 Education: Master s Degree, Education, Georgia State University; Bachelor s Degree, Education, University of Georgia; Specialist s Degree, Educational Leadership, Lincoln Memorial University Industry Experience: Five years of experience in operational energy conservation Past Roles: Taught Business Education, coached multiple sports in different Georgia school systems. After 19 years of teaching/coaching moved into administration, serving as a school administrator and in the central office for Camden County School System, Georgia. Served as Energy Specialist, led the district's energy program to savings of 38% before retiring from the educational system and transitioning to Cenergistic. Hire Date: August 2011 Education: Master s Degree, Education; Bachelor s Degree, Secondary Education; Southern Arkansas University Industry Experience: 11 years of experience in operational energy conservation Past Roles: More than 31 years of experience as a teacher, coach. Athletic Director and Executive Director of Operations in Texas public schools. As Energy Specialist, led district s program to 37 percent savings, gained ENERGY STAR Certification for every school in the district. Oversaw all district construction projects, including a large bond program. Responsible for new construction, additions and remodeling projects, including a new football stadium, track, field house and press box; new softball field; tennis courts; and parking lot. Responsible for decision-making regarding all mechanical units during construction projects. Key member of the team that presented the bond program to the community, with all propositions passing at 73% approval. Hire Date: June 2008 Education: Master of Business Administration, University of Central Oklahoma; Bachelor s Degree, Oklahoma State University Licenses/Certifications: Certified Energy Manager, Certified Measurement and Verification Professional and Certified Indoor Air Quality Professional Industry Experience: Nine years of experience in operational energy conservation Past Roles: More than 26 years of experience in computer hardware and software systems. Extensive training experience, including technical and team building. Implemented distance learning systems and world-wide training classes. Volunteer, Boy Scouts of America; District Vice Chairman for Program, North Trail District of Circle Ten Council. Board Chair, Dallas Emmaus Community; President, Dallas North Soccer Association.

52 Program Criteria 16 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Paul Hamman, CEM VICE PRESIDENT, ENERGY CONSULTANT Jon Hampton VICE PRESIDENT, ENERGY CONSULTANT Bob Herron Hire Date: May 2003 Education: Master of Public Administration, Auburn University; Bachelor s Degree, West Chester University, Pennsylvania Licenses/Certifications: Certified Energy Manager Industry Experience: 14 years of experience in operational energy conservation Past Roles: Retired Lieutenant Colonel, U.S. Marine Corps. More than 25 years of training experience. Served as Manager of Transportation, Child Accounting and Administrative Technology as well as Network Administrator for West Chester Area School District. Served as Installation and Training Specialist, Solutions Engineer, Manager for Customer Training and Account Manager for a proprietary software corporation. Hire Date: April 2007 Education: Bachelor s Degree, Nursing Home Administration (Gerontology), University of South Florida Licenses/Certifications: Facilitator s Training, Energy Management Certification Industry Experience: 10 years of experience in operational energy conservation Past Roles: Four years, Electrical Apprenticeship program, International Brotherhood of Electrical Workers; Certificate in Facilitator s Training, Frisk Business Center at Belmont University, Nashville, Tennessee; Energy Management Certification, Northwest Energy Education Institute, Eugene, Oregon. 18 years with the Sarasota County Schools, seven as Energy Specialist. Taught in Career Technical Education Department; Athletic Director of Booker High School. During his seven years as Energy Specialist, Sarasota County Schools realized over $21 million in Cenergistic energy program savings. Hire Date: March 2013 Industry Experience: 40+ years of experience in school maintenance and operations, and operational energy conservation Past Roles: Manager of Transportation, Grounds, and Maintenance for a large urban district oversight of annual budgets exceeding $8 million, more than 100 employees. After retiring from the district, took on role of Energy Specialist, helping save more than $2 million in two years before joining Cenergistic

53 Program Criteria 17 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Kent Hess, CEM, CMVP, CIAQP VICE PRESIDENT, ENERGY CONSULTANT Michael Hillenbrand VICE PRESIDENT, ENERGY CONSULTANT Mark Hixon, PE, CEM Hire Date: June 2011 Education: Master and Bachelor Degrees, Purdue University Licenses/Certifications: Certified Energy Manager, Certified Indoor Air Quality Professional and Certified Measurement and Verification Professional Industry Experience: 11 years of experience in operational energy conservation Past Roles: He was a high school math teacher for 27 years and varsity baseball coach for 18 years. Energy Specialist for Tri- Creek School Corporation in Lowell, Indiana for five years, leading a 30% program that realized $1.6 million savings in that time Hire Date: August 2014 Education: Attended Williamsport Area Community College (now Pennsylvania College of Technology) Heating, Ventilation, Air Conditioning and Refrigeration Associate Degree Program; multiple HVAC, boiler, EMS, Continued Education credit courses Industry Experience: 10 years of experience in operational energy conservation Past Roles: 26 years of field experience, troubleshooting, repairing and installing commercial HVAC equipment. Seven years as the lead HVAC technician Central Dauphin School District, Harrisburg, PA s 19 schools before taking Energy Specialist position. Led the energy program to 25 percent savings Hire Date: October 2013 Education: Bachelor s Degree, Mechanical Engineering from the University of Kansas; completed post graduate work at Oklahoma State University Licenses/Certifications: Registered Professional Engineer, Certified Energy Manager Industry Experience: 33 years of experience in operational energy conservation Past Roles: Managed commercial operations, healthcare institutions and data centers more than 31 years. Work included energy audits and energy conservation. In Conoco s engineering department, filled various duties for project development and technical services groups, supporting design, installation and operation of petrochemical plants and energy systems

54 Program Criteria 18 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Patrick Jake Jacobs VICE PRESIDENT, ENERGY CONSULTANT Derek Johnston VICE PRESIDENT, ENERGY CONSULTANT Joshua Kempsell Hire Date: April 2017 Education: MSA, Fayette Ville State University; Bachelor of Arts Degree, University of North Carolina at Wilmington Industry Experience: Chief Operations Officer, Johnston County Schools, North Carolina Past Roles: As Chief Operations Officer for a large school district successfully implementing the Cenergistic program, understands how K12 systems work, and knows the process to positively integrate Cenergistic into the educational environment. Hire Date: November 2015 Licenses/Certifications: State of Alabama Home Builder's License Industry Experience: 25 years of experience in construction and building maintenance. Past Roles: Construction for the City of Montgomery, AL for 25 years last 15 years oversaw construction and maintenance on all city-owned properties. Real Property Manager, 5 years, City of Montgomery, worked out of Mayor's Office. Hands-on experience in building and maintaining structures Hire Date: September 2016 Education: Associate Degree, Tarrant County College Licenses/Certifications: Alerton Certified Engineer; other HVAC and Programming Certifications Industry Experience: 12 years of experience in HVAC and EMS controls Past Roles: Department Leader for Technical Service Agreements for Climatec; K12, residential and commercial building markets.

55 Program Criteria 19 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Jay Kim VICE PRESIDENT, ENERGY CONSULTANT Merlin Koehn, CBCP, CEM, CIAQP, HVAC VICE PRESIDENT, ENERGY CONSULTANT Dan Kropp, CEM, CIAQP Hire Date: November 2016 Education: Master of Divinity, Biola University; Bachelor s Degree, Business Economics, UCLA Industry Experience: Five years of experience in operational energy conservation Past Roles: Following more than 10 years of teaching experience in adult schools, led two successful energy programs. Hire Date: February 2003 Licenses/Certifications: Certified Building Commissioning Professional, Certified Energy Manager, Certified Indoor Air Quality Professional, Licensed Master HVAC Mechanic Industry Experience: 23 years of experience in operational energy conservation Past Roles: Full-time Energy Specialist seven years with Wichita Public Schools, Kansas led region to more than $7 million, 28 percent savings. Additional 16 years of HVAC experience installing and servicing commercial equipment, 11 years of experience with EMS/Pneumatic control systems, more than a year as Project Manager on energy management systems with a building automation company. Hire Date: June 2006 Education: MSE, Elementary School Supervision and Administration, Central Missouri State University; Bachelor's Degree, Elementary Education, Missouri Valley College. Additional graduate work, University of Kansas, University of Missouri, Avila University Licenses/Certifications: Certified Energy Manager, Certified Indoor Air Quality Professional Industry Experience: 23 years of experience in operational energy conservation Past Roles: 31 years as educator, assistant principal, and principal. Special education consultant, Kansas City Regional Professional Development Center. Eleven years, Energy Specialist and Indoor Air Quality coordinator, Grandview Missouri School District savings exceeded $3.3 million dollars, 35%+ average.

56 Program Criteria 20 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Craig Kurth VICE PRESIDENT, ENERGY CONSULTANT John Lampas, CEM, CMVP, CIAQP VICE PRESIDENT, ENERGY CONSULTANT Sean Monroe Hire Date: November 2013 Industry Experience: 33 years of experience in facility management and operational energy conservation Past Roles: Owned HVAC/EMS contracting firm, 28 years. Managed numerous Cogeneration and Thermal Storage Design Build installations, hundreds of routine HVAC and EMS projects. Cenergistic Energy Specialist at San Bernardino City Unified School District led the district s program to save more than $14 million in less than four years. Hire Date: May 2005 Education: Bachelor of Science, Meteorology/Atmospheric Science, Purdue University, Indiana Licenses/Certifications: Certified Energy Manager, Certified Indoor Air Quality Professional, Certified Measurement and Verification Professional Industry Experience: 25 years of experience in operational energy conservation Past Roles: Retired, U.S. Navy, became Naval Aviator after enlisted ranks. After military, advanced through automotive product management roles from Production Supervisor to Manufacturing Manager. Battle Creek Public Schools in Battle Creek Michigan, as Energy Specialist. Under his leadership, the first Cenergistic program in the state saved more than two million dollars, averaging 26% savings. Also led a successful energy program in neighboring Lakeview School District. President of Berner Foodservice, the largest independent food distributor on the West Coast. Hire Date: October 2014 Education: Master of Arts, Education, Azusa Pacific University; Master of Science, Mathematics, California State University, Long Beach; Bachelor of Arts Degree, Spanish, Mathematics Minor, Brigham Young University Industry Experience: Taught Mathematics and Spanish more than 15 years in public and private education. Elementary School Principal. Author, But Why? Unraveling the Mysteries of Mathematics. Volunteer, Boy Scouts of America, more than 20 years. Energy Specialist, two school districts before joining Cenergistic Consultant Team.

57 Program Criteria 21 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Brian Nolff VICE PRESIDENT, ENERGY CONSULTANT David Plascencia VICE PRESIDENT, ENERGY CONSULTANT Charles Drew Rhodes, CEM, CIAQP, CMVP Hire Date: November 2015 Licenses/Certifications: Niagara/Tridium AX, R2 certified Industry Experience: 31 years of experience in facility management and operational energy conservation Past Roles: United States Navy Veteran, serviced mechanical and electrical systems for F-14 Tomcat, F-4 Phantom, A-6 Intruder craft. Heating, ventilation and air conditioning field since BAS/EMS automation/integration controls programmer more than 20 years. Experience with a wide variety of HVAC and energy management controls systems, including Trane Tracer and Tracker; Carrier Comfort Network; Honeywell Lonspec, Rapidzone, Lonworks; Invensys T.A.C.; Niagara Tridium Workplace Tech, Workplace Pro, Niagara Ax; Signal front end graphics; Treetech, Robert Shaw DMS 35, 350, 2500, Microsmart, Micronet; and Barber Coleman Network 8000 GCM/LCM, Microzone, Microflo, PEMS. Hire Date: May 2015 Education: Certificates, horticulture, Mount San Antonio College, California Licenses/Certifications: Horticulture Industry Experience: Water conservation and irrigation system expertise Past Roles: Water conservation work in the field, managing water conservation programs on behalf of many water utility providers throughout California. Included improving irrigation systems for a variety of school districts, many of which were Cenergistic clients. Most notable, managed $1 million Department of Energy Grant funding retrofit of irrigation systems and sanitary fixtures for several school districts. Hire Date: July 2004 Education: Bachelor s Degree, Vocational Education Studies, Southern Illinois University Carbondale; Bachelor s Degree, Sociology, State University in New York Licenses/Certifications: Certified Measurement and Verification Professional, Certified Indoor Air Quality Professional, Certified Energy Manager, Microsoft Certified Systems Engineer, Microsoft Certified Systems Administrator Industry Experience: 13 years of experience in operational energy conservation Past Roles: Intelligence specialist, United States Navy; Instructor/ Master Training Specialist Navy- Marine Corps Intelligence Training School. Wide experience in information services and education, including Manager of Business Engineering and Implementation for Nexstar Financial Corporation, Technology Instructor for Sanford-Brown College.

58 Program Criteria 22 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Brian Richard, CEM, CDSM VICE PRESIDENT, ENERGY CONSULTANT Gary Rogers VICE PRESIDENT, ENERGY CONSULTANT Matt Stellar, CEM, CMVP Hire Date: June 2015 Education: Bachelor s Degree, Computer Engineering, University of Central Florida Licenses/Certifications: Certified Energy Manager and Certified Demand Side Manager Industry Experience: Seven years of experience in operational energy conservation Past Roles: Network Specialist, School District of Osceola County, Florida, five years, taking on the position of Energy Specialist when that system hired Cenergistic. Led program to save more than $17 million in five years. Hire Date: January 2006 Licenses/Certifications: Chief Boilers License for Low Pressure Boilers since 1995 Industry Experience: 15 years of experience in operational energy conservation Past Roles: Wealth of experience in public school facility operations. Particular specialties include Automated Logic Systems, optimal boiler operation, Automatic Logic Controls, particularly for cold climates. More than 16 years of building maintenance experience, more than 12 years of system operation installation and troubleshooting experience. Energy Specialist, Wayzata School District, Minnesota, implemented one of the state s best programs, saving more than $1.1 million in less than four years. Hire Date: June 2012 Education: Bachelor s Degree, Business Administration, Boston University with concentrations in Organizational Behavior and Marketing Licenses/Certifications: Certified Energy Manager, Certified Measurement and Verification Professional Industry Experience: 11 years of experience in operational energy conservation Past Roles: Energy Specialist for a Massachusetts school system for four years, achieving more than $1.7 million in savings while coaching wrestling and lacrosse at the youth and high school levels. Energy Director for a Massachusetts city.

59 Program Criteria 23 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Tim Sturgeon VICE PRESIDENT, ENERGY ENGINEER Shannon Swan, PE, CEM, LEED AP BD+C VICE PRESIDENT, ENERGY CONSULTANT Brendan Sweeney Hire Date: August 2012 Education: Master's Degree, Educational Administration, Indiana Wesleyan University; Bachelor s Degree, Industrial Technology Education, Ball State University Industry Experience: 9 years of experience in operational energy conservation Past Roles: Classroom teacher, girls basketball coach 20 years before taking role of Energy Specialist for Noblesville School System, central Indiana. In the program s first four years led district to 42% reduction in expected utility costs, more than $4.7 million savings. Hire Date: April 2013 Education: Bachelor s Degree, Architectural Engineering, Kansas State University Licenses/Certifications: Licensed Mechanical Engineer, Licensed Professional Engineer, LEED BD+C Certification, Certified Energy Manager Industry Experience: 12 years of experience designing heating, ventilation and air conditioning systems for commercial construction projects, including hotel, high-rise residential, religious worship and higher education projects Past Roles: Performed energy models for LEED building certification, system cost calculations to help clients determine optimal mechanical systems. Hire Date: January 2016 Education: Bachelor s Degree, focus in Engineering and Law, University of Texas at Dallas Industry Experience: 21 years of experience in operational energy conservation Past Roles: Energy management with Texas Instruments, developing building controller product line and applications in Clean Rooms and production plants. Trane, Project Manager involved in national accounts and international locations with customers in education, telecommunications, retail and food processing. Owned EMS installation/integration company eight years, with locations throughout U.S. Joined JCPenney to develop EMS portfolio to a nationally-recognized platform with stores. Delivered annual energy cost reduction approaching 20% with a starting benchmark energy budget of $240M/FY.

60 Program Criteria 24 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Jim Vogler VICE PRESIDENT, ENERGY CONSULTANT Cole Whittington VICE PRESIDENT, ENERGY CONSULTANT Matthew Wilson Hire Date: August 2007 Industry Experience: 10 years of experience in operational energy conservation Past Roles: Extensive management expertise in telecommunications, earning steady promotions from Frameman to Director over employees in five states during 35-year career with Southwestern Bell Telephone Corporation. Additional telecommunications experience with an engineering firm, serving as senior engineer and project manager. Projects included contract engineering, planning, auditing and site decommissioning Hire Date: June 2016 Education: Bachelor s Degree, Mechanical Engineering, Oklahoma State University Industry Experience: 1 year of experience in operational energy conservation Past Roles: Cenergistic s first Engineering Intern, persuaded to return to Cenergistic after graduation. Today, he manages and completes AST processes; serves as technical consultant; and provides backup for other Cenergistic Energy Consultants with VIT EMS training, optimizing HVAC systems, and troubleshooting Hire Date: February 2016 Education: Attended Eastfield and Richland College Licenses/Certifications: Refrigerant Certified License Industry Experience: Extensive experience in the installation and programming of energy management systems Past Roles: 20 years, Alcatel- Lucent North American facilities operations and construction group

61 Program Criteria 25 Engineers and Energy Consultants VICE PRESIDENT, ENERGY CONSULTANT Paul Wilson, CEM, CIAQP ENGINEERING ADJUSTMENT Engineer Cristian Popa VICE PRESIDENT, ENERGY CONSULTANT Cynthia Walker Hire Date: May 2001 Education: Two Master of Education Degrees, Northeastern Oklahoma State University; Bachelor s Degree, Oklahoma State University Licenses/Certifications: Certified Energy Manager, Certified Indoor Air Quality Professional Industry Experience: 26 years of experience in operational energy conservation Past Roles: Science and Ecology Instructor, two colleges, three public school districts in OK. Oklahoma Conservationist of the Year, Tandy Technology Scholar of the Year, National Biology Teacher of the Year and many conservation and environmental awards. Published over 140 articles on science and research. Scientific emphasis on ornithology, particularly owls. Retired from U.S. Naval Reserve as Commander, 25 years of service. Former volunteer emergency medical technician, scout master, volunteer fire fighter, youth group director advisor to an elementary school gifted program. Joined Cenergistic after retirement from Owasso Public Schools, where, as Science Teacher and Energy Specialist, saved more than $697,000 for the district Hire Date: April 10, 2017 Education: Dual-major Bachelor of Science degree in Electrical and Mechanical Engineering from the University of Craiova, Romania. Industry Experience: More than 20 years experience in HVAC electrical and mechanical systems design and project management, Honeywell online contest Faster Programmer winner, Wrightsoft design contest winner of the Best Design and HVAC Practice Licenses/Certifications: Registered Professional Engineer (Texas), Certified Energy Manager, LEED AP and Green Building Engineer Kelli Syrus, PMP Operations Support Hire Date: January 2014 Education: Master s Degree in Materials Engineering from the University of Texas at Arlington Industry Experience: Two years of experience in operational energy conservation Past Roles: Field engineer work in oil and gas production, specializing in corrosion engineering, corrosion control, water quality issues, failure analysis, materials selection and training. Published several technical articles, Speaker for National Association of Corrosion Engineers functions at local, regional and national levels

62 Program Criteria 26 Center of Excellence COE SUPPORT ADMINI- STRATOR JoManda Arechiga OPERATIONS SUPPORT MANAGER Kim Aseltine OPERATIONS SUPPORT MANAGER Karen Baker Hire Date: April 2014 Industry Experience: Three years of experience in operational energy conservation with emphasis on Measurement & Verification Hire Date: March 2000 Industry Experience: Seventeen years of experience providing a variety of administrative, project management, Measurement & Verification and scheduling services for Cenergistic s Operations Division. Hire Date: February 2010 Education: Bachelor s Degree in Business Administration, University of Texas Industry Experience: Seven years of experience providing a wide variety of administrative and project support services for Cenergistic s Operations Division. Past Roles: Director, Manager, and Ghost Writer for industry leaders in the Business Consulting and Beauty Pageants/Modeling fields.

63 Program Criteria 27 Center of Excellence COE SUPPORT ANALYST Garrett Davis TRAINING AND COMMU- NICATIONS COORDINATOR Kristen Erwin MANAGER, ENERGY SPECIALIST PLACEMENT Regina Kuehler, SPHR Hire Date: November 2015 Education: Bachelor s Degree, Business Finance, Business Management, Texas Tech University Industry Experience: 16 months of experience in operational energy conservation, Center Of Excellence invoicing lead and client database analyst Past Roles: Over six years experience in a Corporate Investment Bank supporting Mutual Fund and Exchange Traded Fund (ETF) clients. In addition, managed system and procedural enhancements, as well as the on-boarding of clients to electronic instruction methods. Hire Date: March 2014 Education: University of Houston, BFA Licenses/Certifications: Articulate Storyline 360 Certification (2017) Industry Experience: Three years of experience in e-learning content development, instructional design, & managing Cenergistic s virtual training initiatives. Past Roles: Operations Manager, American Heart Association; Freelance Studio Artist & Graphic Designer. Hire Date: March 2009 Education: Midwestern State University Licenses/Certifications: Professional in Human Resources Certification (2000), Senior Professional in Human Resources Certification (2013) Industry Experience: Eight years of experience in staffing for operational energy conservation Past Roles: Human Resources Risk Analyst for one of the largest drilling companies in the nation; General Manager for large staffing agency.

64 Program Criteria 28 Center of Excellence INFRA- STRUCTURE ANALYST James Magonwattana DIRECTOR OF EVENTS Donna Pettis OPERATIONS SUPPORT ADMINISTRATOR Kelli Syrus, PMP Hire Date: May 2016 Education: Bachelor of Arts degree, University of Texas at Arlington Industry Experience: 10 months of experience in operational energy conservation. Center Of Excellence co-lead of Infrastructure database builds. Lead for EnergyCAP testing and third-party optical character recognition (OCR) data capture Past Roles: Over eight years experience in a Corporate Investment Bank supporting Mutual Fund and Exchange Traded Fund (ETF) clients. In addition, managed system and procedural enhancements, as well as the on-boarding of clients to electronic instruction methods Hire Date: April 13, 2015 Education: Bachelor of Science, Marketing, Xavier University of Louisiana Industry Experience: 16 years of experience in planning and management of meetings, conferences and corporate events. Past Roles: Senior Analyst, Strategic Event Management, for one of the largest Pharmacy Benefit Management firms in healthcare; Manager of Events & Tradeshows in biotechnology Hire Date: March 2011 Education: Bachelor of Business Administration, Marketing, The University of Texas at Austin Licenses/Certifications: Project Management Professional Industry Experience: Six years of experience in operational energy conservation. Past Roles: Account Manager, eight years, full-service advertising agency specializing in recruitment advertising, employer branding and marketing.

65 Program Criteria 29 A. Organizational Chart Figure 3: Cenergistic Organizational Chart 2017 Cenergistic LLC

66 Services 30 SECTION 2: Services 2.1 Program Approach Cenergistic s behavior-based energy conservation approach is much more than simply turning off lights and computers. It s about changing organizational behavior: how each person in the organization understands, uses and saves energy for years to come. Our energy conservation management approach provides our clients with more control over energy use with no upfront costs, no new equipment, and no equipment retrofits. Figure 4: The Cenergistic Behavioral Energy Conservation Approach 2017 Cenergistic LLC

67 Services Timeline and Deliverables Cenergistic s Program Director will be the primary contact for Union County Public Schools for the energy savings contract. Supported by Cenergistic s internal team of energy conservation energy experts, the Program Director will lead and coordinate all program implementation tasks, as well as respond to any concerns by Union County Public Schools. Figure 5: Cenergistic's Timeline to Savings 2017 Cenergistic LLC

68 Services 32 Program Kickoff Cenergistic will work closely with Union County Public Schools to complete the following actions within the first days following the contract start date. Select the On-Site Energy Specialists; Identify the Program Liaison; Define the Reporting Structure for the Contract Term; Gain Board and Superintendent Adoption of the Energy Policy & Guidelines; and Launch the Early Implementation Period for Union County Public Schools. Energy Specialist Selection (Months 1-3) Cenergistic focuses on selecting the Energy Specialists who will be trained in carrying out the work of conservation awareness and measurement and verification of results. Because the Energy Specialists is employed by Cenergistic, there is no budget impact. Primary focal points during the first three months include the following: Provide posting materials and direction for securing applicants for the Energy Specialists positions; Collaboratively interview candidates with Union County Public Schools representatives and select the Energy Specialists; Identify program champion and define program reporting structure; and Gain adoption of an Energy Policy & Guidelines from the Board and Superintendent. Early Implementation Period (Months 1-6) The goal of this period is to implement the energy program as quickly as possible within the organization to start saving money. It includes establishing strong leadership support, educating all groups within Union County Public Schools on the value of the program, the role of the Energy Specialists, how the program works, the importance of staff participation and adoption, and to begin changing habits in campus facilities. Some focal points include: Make initial presentations to key stakeholder groups: administration, maintenance, custodial, faculty, students, and staff; Training on online measurement and verification software, EnergyCAP Professional; Gather billing information for the baseline period for campus facilities; Enter each campus facility s utility consumption, rates, and cost information into software by meter by month for baseline period; Enter adjustments to performance data to account for all non-program variances; Create operational/strategic plans and operating/use schedules for campus facilities; 2017 Cenergistic LLC

69 Services 33 Estimate building savings potential for all campus facilities; Begin audit of campus facilities to ensure compliance to conservation plan and schedules; Utilize Cenergistic s exclusive reporting and performance tracking tools; Review/finalize operational/strategic plans with facility building owners; Provide audit feedback to facility building owners on savings opportunities; Provide monthly savings reports to facility building owners; and Provide early program updates to the Board. Program Expansion (Years 1-3) The goal during the Program Expansion period is to continue the assessment and recommendations for the facilities and for facilities constructed during the first year of program. Cenergistic automatically accepts all new facilities into the energy conservation program as part of the overall contract. Leadership support is established for every building during this phase, and ongoing facility audits are conducted around the clock and throughout the year. Regular online reports and dashboards are generated for every facility and utility type, allowing comparative data analysis and benchmarking. Reports are also produced for senior leadership and the Board, ensuring accountability and program follow-through. The primary focal points during the Program Expansion period include: Expand the focus of the Specialists to provide additional program and educational coverage for campus facilities; Ensure Energy Specialists attend Cenergistic National Conferences. Other support staff are encouraged to attend Cenergistic training as well; Continue to create or refine operational/strategic plans and operating/use schedules for facilities; Monitor continuous auditing to ensure compliance to conservation plan and schedules Review operational/strategic plans with all facility building owners; Provide audit feedback to all facility building owners on savings opportunities; Provide monthly savings reports and dashboards to all facility building owners; Provide quarterly reports on program performance to the Board; Provide proactive media coverage tools as deemed appropriate; and Utilize diagnostic tools to monitor operating conditions in response to program changes Cenergistic LLC

70 Services 34 Program Refinement (Years 4-5) The goal during the Program Refinement period is to continue to expand the energy conservation effort to every facility, focusing on smaller changes and savings. The initial three years of the program focus on large changes and significant areas of cost, while the fourth and fifth years of the program dig more deeply into the habits and systems to capture any remaining savings. In addition, organizations are constantly expanding and changing conditions in the environment. Cenergistic s program accounts for those changes, ensuring the program adapts to new facilities and different use patterns over time. The primary focal points during the Program Refinement period include: All educational, facility auditing, and program reporting services referenced in the Program Expansion phase; Ongoing feedback on the performance of the Energy Specialists; Ongoing training in more specialized areas of conservation and service; Pursuit of ENERGY STAR and other national conservation awards and public relations opportunities; and Revisions to operational/strategic plans and operating/use schedules for all campus facilities, per changes to facility use patterns. Long-Term Sustainment (Beyond Year 5) Cenergistic aspires for Union County Public Schools to continue implementing its conservation program and realizing significant savings on an ongoing basis. In support of that goal, during the final year of the program s initial phase, Cenergistic and the client will meet to discuss the client s energy needs going forward building on the established program. Based on a collaborative needs assessment, Cenergistic may elect to provide a customized proposal for added services beyond Year 5. Those services may include, but are not limited to: Continued provision of on-site Energy Specialists; Investment grade audit and engineering support for infrastructure upgrades; Engineering simulation work; Independent Measurement and Verification Services for performance contracts; and Utility bill auditing and payment services. Of course, proposal and pricing will reflect the projects and services the client chooses to implement. Pricing may be a fixed monthly retainer, a share of added savings, or some combination thereof Cenergistic LLC

71 Services ENERGY STAR Recognition As part of Cenergistic s energy savings contract, in Years 4-5 of the program, Cenergistic personnel will coordinate with Union County Public Schools to seek recognition for the savings achieved. Specifically, Cenergistic will pursue ENERGY STAR and other national conservation awards for Union County Public Schools as well as public relations opportunities. Since the start of the ENERGY STAR building certification program, Cenergistic clients have chosen this national recognition and third-party validation of their energy conservation success. Cenergistic s partnership with ENERGY STAR provides us with the opportunity to assist clients across the nation in receiving their own recognition for extraordinary work in people-oriented energy conservation. Cenergistic s clients have earned more than 17,000 ENERGY STAR awards and recognitions. 2.4 Communications & Reporting Throughout the program, Cenergistic will provide implementation implementation updates to Union County Public Schools. During contract years 1-5, Union County Public Schools will have access to online reports and dashboards through EnergyCAP Professional. In addition, Cenergistic will provide the following standard reports: Monthly savings reports and dashboards; Quarterly reports on program performance; Ongoing feedback on the performance of the Energy Specialists; Ongoing training in more specialized areas of conservation and service; and Communications regarding the pursuit of ENERGY STAR and other national conservation awards and public relations opportunities Cenergistic LLC

72 SECTION 3: Measurement & Verification EnergyCAP Best-in-Class M&V Software Union County Public Schools Measurement & Verification 36 Cenergistic s clients independently track, validate and report results using energy savings measurement and verification using EnergyCAP Professional Online, an industry-leading utility accounting software program that adheres to IPMVP standards. All Cenergistic Energy Specialists are trained to support clients using EnergyCAP. EnergyCAP solves measurement and verification (M&V) challenges in the following areas: Sustainability & Compliance Utility Bill Management Reporting & Presentation Savings & Analysis As part of the energy services contract with Cenergistic, Union County Public Schools will maintain an annual license with EnergyCAP for access and use of the software. The annual cost for Union County Public Schools is delineated in Cenergistic s detailed savings projection. Figure 6: EnergyCAP building Power View sample screenshot Cenergistic LLC

73 Savings Projection & Program Fees 37 SECTION 4: Savings Projection & Program Fees Cenergistic has completed a thorough review of the information provided by Union County Public Schools. Based on this information, Cenergistic project $5,819,500 net savings for Union County Public Schools over the term of the five-year contract using our 31-year-old award winning, results-driven approach to maximize energy savings while improving classroom comfort with no impact on academic routines. Unlike standard energy management contracts where the provider bills a fixed monthly program fee based on projected savings, Cenergistic s shared savings fee is based on actual savings as they are achieved and verified. Specifically, Cenergistic bills each client monthly based on the actual savings for that month, not a fixed fee based on projected savings. Therefore, Cenergistic is incentivized to maximize savings for Union County Public Schools, not simply meet the minimum guaranteed savings projection. 4.1 Savings Guarantee Cenergistic s approach provides savings with zero up-front capital investment or financing. With no equipment to purchase, install, or finance, Cenergistic clients achieve savings in months, not years. Based on our success with more than 1,400 clients across the nation, Cenergistic is confident that significant net savings result when the elements of our proven behavioral-focused energy management and conservation methodology are implemented by our clients. We extend this confidence to Union County Public Schools in the form of our industry-leading savings guarantee. Cenergistic s savings guarantee eliminates investment risk for our clients. Specifically, the guarantee provides that if, over the course of each program year, Union County Public Schools total investment in our energy conservation program exceeds the amount saved, Cenergistic will write a check for the difference. This savings guarantee represents our commitment to maximize savings while maintaining or improved classroom comfort for Union County Public Schools. 4.2 Program Fee Cenergistic s energy conservation program is based on a true shared savings model. In this model, Cenergistic is only paid a percentage of actual savings during Years 1-5 of the program, as verified through EnergyCAP Professional Online third-party M&V software licensed by Union County Public Schools. Cenergistic does not charge a separate Program Fee, or a fixed fee based on anticipated savings. Instead, 100% of Cenergistic s compensation is paid from actual program savings. Finally, we do not recommend any capital investment as part of the program. No additional funds must be budgeted or borrowed to execute our program Cenergistic LLC

74 Savings Projection & Program Fees 38 Table 2: Projected Savings Analysis YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 TOTAL Gross Savings $1,593,000 $2,270,000 $2,497,000 $2,696,000 $2,858,000 $11,914,000 3 Energy Specialist Salary 1 Employed by Cenergistic Employed by Cenergistic Employed by Cenergistic Employed by Cenergistic Employed by Cenergistic Energy Accounting $27,500 $27,500 $27,500 $27,500 $27,500 $137,500 Software 2 $0 Cenergistic Energy Management Program 3 50% of Gross Savings 50% of Gross Savings 50% of Gross Savings 50% of Gross Savings 50% of Gross Savings Net Savings to $769,000 $1,107,500 $1,221,000 $1,320,500 $1,401,500 $5,819,500 Client 4 1 Energy Specialists (ES) employed and provided by Cenergistic during the term of the contract. 2 Energy Accounting Softw are is licensed by your organization from EnergyCAP, Inc., a third-party company. No annual CPI increases during first tw o years. 3 Cenergistic receives no minimum fee and shares in actual gross savings for Years 1 through 5. First invoice w ill be sent 6 months in arrears, and monthly thereafter. 4 Net savings to client assumes gross savings projections for Years 1 through 5 are realized; actual net savings w ill vary based on the level of gross savings achieved Cenergistic LLC

75 Savings Projection & Program Fees Savings Projection Cenergistic s energy projection for Union County Public Schools is based on two major data sources: 1. Data specific to Union County Public Schools; and 2. Actual savings achieved for similar clients. To calculate predicted savings, Cenergistic collects both historical and budgeted utility expenditures by energy type, growth trends in student enrollment, anticipated changes in square footage, number and types of buildings, the extent to which buildings are controlled by EMS and the extent to which buildings are air-conditioned. For those organizations that have previously provided similar information, the longer-term trend in enrollment and square footage growth and the resulting impact on utility expenditures is also analyzed. Cenergistic then compares this data to industry and internal databases containing 31 years of statistical information on thousands of school districts, college campuses and universities. Our process looks for similarities between the organization being analyzed and a subset of Cenergistic clients using key metrics that are significant predictors of future energy savings potential. Geography, typical weather patterns and regional energy pricing information are included in this comparison, as well. These metrics reflect the size and complexity of the organization and provide a meaningful basis for assessing the savings opportunity that exists. Actual savings results for similar clients are a significant driver in calculating projected savings. Cenergistic s projected savings methodology generates a conservative estimate, as actual savings ultimately depend on the commitment and pace of each client s implementation of our program. Actual savings typically exceed initial estimates. A. Actual Energy Savings Calculation Under Cenergistic s shared savings contract, actual energy savings are determined by comparing measured use at the building level before and after the start of program implementation, with appropriate adjustments for changes in conditions that are independent of the Program. The simple formulaic expression is: Avoided Energy Use (or Savings) = Adjusted-Baseline Energy Reporting-Period Energy ± Non-Routine Adjustments of baseline energy to reporting-period conditions Please see the M&V plan included in Cenergistic s standard contract in Attachment A for more details Cenergistic LLC

76 SECTION 5: References and Case Studies In the past three decades, Cenergistic has provided behavioralbased energy savings programs to over 1,400 clients in 48 states, including 20 million students in K-12 and higher education. Our inhouse personnel include more than 50 conservation specialists that provide on-site and remote training, mentoring, and auditing. Similar Projects Union County Public Schools References and Case Studies 40 Each year, Cenergistic assists clients in managing more than $1 billion in utility expenses. Cenergistic has partnered with more than 1,400 clients across the U.S. to achieve an average of 26% savings through behavioralbased energy management services. Our recent client partnerships include the University of Kentucky, which announced in July 2016 its partnership with Cenergistic to launch an energy conservation program. The full announcement can be accessed at the following link: Table 3: Sample of Cenergistic K-12 Client Savings Please see the table below for a sampling of Cenergistic behavioral energy conservation clients Sample of Cenergistic K-12 Client Savings District State Enrollment Performance Months Savings $ Start Date Loudoun County Public Schools VA 73, $79,028,575 6/1/1993 Sarasota County Schools FL 41, $30,096,186 1/1/2008 Charlotte County Public Schools FL 17, $17,351,159 1/1/2007 Weber School District UT 30, $26,097,897 11/1/2003 Kalamazoo Public Schools MI 11, $11,693,294 12/1/2001 Pitt County Schools NC 23, $2,875,083 2/1/ Cenergistic LLC

77 References and Case Studies References Table 4: Cenergistic Client References # Cenergistic Client Name Savings to Date Enrollment Client Reference Name & Title Client Reference Contact Information Program Start Date 1 Burke County Public Schools $16,999,680 Mr. Larry Putnam, East Parker Rd. 45% 13,911 10/1/2009 Superintendent lputnam@burke.k12.nc.us Morganton, NC Hoke County Schools $4,440,687 Dr. Freddie Williamson, Wooley St. 31% 7,355 10/1/2008 Superintendent fwilliamson@hcs.k12.nc.us Raeford, NC Hampton City Schools $3,231,704 Mr. Tom Sawyer, Director Franklin St. 21% 21,601 of Operations & 10/1/2013 sawyer@hampton.k12.va.us Hampton, VA Maintenance 4 Fort Worth Independent School District $2,423,101 Dr. Kent Scribner, North University Drive 18% 87,090 4/1/2017 Superintendent kent.scribner@fwisd.org Fort Worth, TX Mobile County Public Schools $24,668,036 Mr. Thomas Sheffield, Magnum Pass 33% 57,910 Executive Director of 1/1/2015 sheffiel@mcpss.com MOBILE, AL Operations 6 Dyersburg City School District $2,580,138 Mr. Neel Durbin, College 43% 3,400 11/1/2008 Superintendent ndurbin@k12tn.net Dyersburg, TN Troup County School System $7,548,340 Dr. Cole Pugh, North Davis Rd., Building C 33% 12,500 10/1/2010 Superintendent pughrc@troup.org LaGrange, GA Fairfax County Public Schools $16,248,507 Mr. Jeff Platenberg, Gatehouse Road 13% 185,541 8/1/2014 Superintendent jeffrey.platenberg.fcps.edu Falls Church, VA Additional references available on request Cenergistic LLC

78 References and Case Studies 42 Client Success Stories NUMBER OF STUDENTS 185,541 Saving Energy, Setting Records, Gaining National Recognition Fairfax County Public Schools Falls Church, Virginia As the 10 th largest school system in the United States, Fairfax County Public Schools has an enormous budget and has faced enormous budget shortfalls. District administration chose to partner with Cenergistic to get the most out of their energy dollars. More than $14 million in savings later, the district has not only cut energy, but set new records and gained national recognition. For two years in a row, Fairfax County Public Schools has earned the most ENERGY STAR Certifications for K12 in a single year in more than a decade. The district was named ENERGY STAR Partner of the Year for 2017 as well. Community members recognize Fairfax County Public Schools efforts as good stewardship of financial and natural resources. PROGRAM START 2014 SQUARE FOOTAGE 27,007,260 TOTAL REPORTED SAVINGS $16,248,507 NUMBER OF DATA MONTHS 36 KBTU USE PER SQUARE FOOT (EUI): BASELINE YEAR KBTU USE PER SQUARE FOOT (EUI): LAST PERFORMANCE YEAR Cenergistic LLC

79 References and Case Studies 43 Client Success Stories NUMBER OF STUDENTS 14,000 A Lasting Legacy of Success Burke County Public Schools Morganton, North Carolina When a new superintendent came to Burke County PS, one of his first actions was to partner with Cenergistic he d had the program in previous districts and he knew it would provide a lasting legacy. Some community members were skeptical at first, but their skepticism quickly turned into support when they say how much the district was saving. A few short years later, the decision is one saved Burke County Public Schools millions of dollars to use for education, not energy. The district is also proud to point at further proof of its efficiency: 26 buildings earned 37 ENERGY STAR Certifications. PROGRAM START 2009 SQUARE FOOTAGE 2,590,043 TOTAL REPORTED SAVINGS $16,557,828 AVG REPORTED SAVINGS 45% NUMBER OF PERFORMANCE MONTHS 96 KBTU USE PER SQUARE FOOT (EUI): BASELINE YEAR KBTU USE PER SQUARE FOOT (EUI): LAST PERFORMANCE YEAR Cenergistic LLC

80 References and Case Studies 44 Client Success Stories NUMBER OF STUDENTS 7,400 PROGRAM START 2008 Using the Energy Pyramid Hoke County Schools Raeford, North Carolina Engineers stress use of the Energy Pyramid for the greatest savings and best return on investment. They recommend first building a solid foundation with energy conservation, then adding more efficient equipment, based on a well-managed, comprehensive energy management program. Hoke County Schools did just that first establishing a conservation program and then adding equipment. Added bonuses to first establishing a Cenergistic program are needing smaller, less-expensive systems and being able to measure and verify savings claimed by equipment companies SQUARE FOOTAGE 1,014,527 TOTAL REPORTED SAVINGS $4,440,687 AVG REPORTED SAVINGS 31% NUMBER OF PERFORMANCE MONTHS 109 KBTU USE PER SQUARE FOOT (EUI): BASELINE YEAR KBTU USE PER SQUARE FOOT (EUI): LAST PERFORMANCE YEAR Cenergistic LLC

81 References and Case Studies 45 Client Success Stories NUMBER OF STUDENTS 22,000 PROGRAM START 2013 Savings Surpass Annual Energy Costs Hampton City Schools Hampton, Virginia Hampton City Schools has cut a lot of energy waste while cutting expected energy costs 20%, they ve also cut raw dollars spent on energy. Before partnering with Cenergistic the district was spending more than $3.5 million on energy each year, Now in the program s third year, they spend just over $2.8 million. That s dollars that can be spent on education, rather than paid to utility companies. And their total savings to date is more than a single year s energy costs. That s success any way you add it up. SQUARE FOOTAGE 3,334,664 TOTAL REPORTED SAVINGS $3,231,704 AVG REPORTED SAVINGS 21% NUMBER OF PERFORMANCE MONTHS 46 KBTU USE PER SQUARE FOOT (EUI): BASELINE YEAR KBTU USE PER SQUARE FOOT (EUI): LAST PERFORMANCE YEAR Cenergistic LLC

82 References and Case Studies Reference Letters 2017 Cenergistic LLC

83 References and Case Studies Cenergistic LLC

84 References and Case Studies Cenergistic LLC

85 SECTION 6: Supplemental Information Union County Public Schools Supplemental Information Cenergistic LLC

86 Supplemental Information Proprietary Technology & Tools Cenergistic uses cutting-edge, proprietary tools to optimize systems and drive savings. The chart below includes a sample of our proprietary tools. Figure 7: Sample of Cenergistic's Proprietary Tools for Behavior-Based Energy Conservation 2017 Cenergistic LLC

87 Supplemental Information Industry Recognition & Awards Cenergistic is the nation s number one Service and Product Provider for Certification and Leader recognition. The Department of Energy named Cenergistic the #1 "Service & Product Provider" for ENERGY STAR Certifications, with clients earning more than 9,000 awards and recognitions. For nine straight years, Cenergistic has earned national recognition from the United States Environmental Protection Agency, including the ENERGY STAR Partner of the Year Sustained Excellence Award in 2011, 2012, 2013, 2014, 2015, 2016 and 2017, following Partner of the Year in 2009 and Cenergistic s program aligns closely with the ENERGY STAR goal to help clients conserve energy while ensuring a safe, comfortable environment. Accordingly, Cenergistic clients are among the most energy-efficient organizations in the nation: More than 1,000 Cenergistic client buildings received ENERGY STAR Certification in 2016 alone. 65% of all K-12 ENERGY STAR Top Performers are Cenergistic clients. More than 650 Cenergistic clients are ENERGY STAR Partners, representing higher education, school districts, congregations, and healthcare organizations. Numerous Cenergistic clients have received significant ENERGY STAR recognition, including the following: Loudoun County Public Schools in Ashburn, Virginia, received the 2017 ENERGY STAR Partner of the Year - Sustained Excellence Award, the 2012, 2013, 2014, 2015 and 2016 Sustained Excellence Awards as well as 2010 and 2011 ENERGY STAR Partner of the Year Awards. Decatur County Community Schools in Indiana became the nation s first and only ENERGY STAR 70 Percent Leader in recognition of the district s extraordinary achievement of reducing energy consumption district-wide by more than 70%. The district is the only organization to earn ENERGY STAR 60 Percent Leader recognition. Mansfield Independent School District in Mansfield, Texas, received the 2017 ENERGY STAR Partner of the Year- Sustained Excellence Award, and 2014, 2015 and 2016 Partner of the Year Awards. Fairfax Public Schools in Falls Church, Virginia earned the 2017 ENERGY STAR Partner of the Year Award, and the most ENERGY STAR Certifications for K12 buildings in 2016 and Cherokee County Schools in Murphy, North Carolina, received the 2015 ENERGY STAR Partner of the Year Award Cenergistic LLC

88 Supplemental Information Program Risks Unlike other contract models, Cenergistic bears the savings risk. Cenergistic does not charge a program or other fees. Our fee is simply a percentage of savings, as verified by EnergyCAP Professional Online third-party measurement and verification software. A. Program Adoption & Training No risk. Cenergistic provides full program adoption support and training for both the Energy Specialists and Union County Public Schools designated Program Liaison. B. On-Site Staff Management No risk. On-site Energy Specialists are Cenergistic employees, and report directly to Cenergistic s Program Director, who provides routine performance evaluations and feedback. C. Subcontractor Management & Performance No risk. Cenergistic does not use subcontractors for any services under our energy services contract. Instead, we rely on our highly educated, qualified, and experienced in-house team of 254 engineers and professionals with a combined 1,400+ years of industry experience. D. Timeline Return on Investment (ROI) No risk. Because Union County Public Schools pays no upfront fees to Cenergistic, we bear the burden of investment risk. Cenergistic s shared savings fee is based on actual savings, as verified by EnergyCAP Professional Online, an independent, third party M&V solution that adheres to IPMVP standards. E. Additional Program Benefits Local Full-time Energy Specialist Our three decades of success is rooted in the execution of Cenergistic s in-house expertise and patented technologies through an on-site, full-time Energy Specialist employed by Cenergistic. We work closely with each client to collaboratively identify, interview, and select a local candidate for this role. Beyond creating this local full-time job, Cenergistic provides comprehensive initial and ongoing training to ensure the Energy Specialist maintains the knowledge and skills required to achieve maximum savings. 6.4 Litigation Cenergistic has never had a lawsuit initiated against the company by a client. 6.5 Terminated Contracts Under the provisions of Cenergistic s standard energy savings contract, clients have the option to terminate for convenience. No contract has ultimately been terminated by a client for cause. Currently, 2017 Cenergistic LLC

89 Supplemental Information 53 one client has expressed a concern they believe could be cause for termination, but Cenergistic has denied any such cause and believes any concerns will ultimately be resolved without a termination for cause. Cenergistic has never defaulted on a contract. 6.6 Bankruptcy Cenergistic has never filed for bankruptcy Cenergistic LLC

90 SECTION 7: Service Agreement The Benefits & Value of Cenergistic s Energy Savings Contract Union County Public Schools Service Agreement 54 For more than 31 years, Cenergistic has been helping public schools fund textbooks, teachers, tablets, and even new buildings through substantial utility bill savings achieved through our proven behavioral energy conservation program. Our proven program doesn t need new or retrofitted equipment to generate 20 30% savings, and maintains superior classroom comfort to provide students and teachers with the optimal learning environment. A cornerstone of our program s client benefits is Cenergistic s Energy Savings Contract, which has been developed and fine-tuned over three decades to address the unique issues associated with behavior-based energy programs (as opposed to performance or equipment based programs) in public school districts. This concise document includes key provisions designed to maximize savings for our clients while minimizing risk. Each contract is coupled with a straightforward Measurement & Verification (M&V) Plan that clearly delineates the methodology and reporting for energy savings. A critical differentiator in our contract is that Cenergistic s savings guarantee is based on actual, not stipulated or projected savings, and savings are determined using an independent, third-party M&V software that adheres to IPMVP (International Performance Measurement and Verification Protocol) standards. On the following pages, we explain the client benefits for each major contract provision and commitments made by Cenergistic to the success of your energy program. A. How Cenergistic s Terms & Provisions Benefit Our 1,400+ Clients Program Implementation Cenergistic heavily supports your district s leadership with program implementation, including assisting the development of a Board policy to communicate Board support for the energy program as encouragement to your employees to support the energy program. We work with your district to develop administrative guidelines for the program that will be customized to your educational and operational environment. We provide training and support for your employees in use of the third-party software (EnergyCAP ) that will be used for calculating savings from the program. We collaborate with your district s senior-level business official (Program Liaison) for all aspects of program implementation. We provide additional education and training to the Program Liaison concerning EnergyCAP. We support your district s staff in implementing changes in the energy management systems to assure operations are conducted within the approved energy conservation guidelines Cenergistic LLC

91 Service Agreement 55 Savings Determination Cenergistic provides an accurate savings determination by building a baseline using your district s past 12 months of utility bills, and then adjusts current utility data to ensure the following: a true apples-to-apples comparison; a correct calculation of savings from the program; and the exclusion of energy savings from other sources such as milder weather, installation of more efficient lighting or HVAC equipment, etc. Our team of industry experts reviews the savings for accuracy and IPMVP compliance, then presents formal savings reports to your district s Program Liaison for approval. Term Based on our 31+ years of experience, we offer a standard five (5) year term to provide sufficient time for the change in the entire district s culture to become fully realized, leading to long-term energy sustainability. Delayed Billing for Enhanced Cash Flow Cenergistic bills in arrears, so that savings can accumulate before costs begin. During this initial period, Cenergistic implements the program s framework, including hiring the energy specialists, building the baseline, beginning building audits, support approval of the Board Policy and Guidelines, and other implementation steps to get the program off to a very positive start. Fees Your district s fee is simply 50% of the actual savings from the program, paid monthly. If there are no savings, your district pays no fee. Cenergistic s savings guarantee ensures that your district s costs over the course of each Performance Year are paid through savings or Cenergistic will reimburse the difference. Our savings guarantee protects your district from financial risk. Contract Termination Our contract allows your district to terminate the contract for convenience with a 60-day notice. There are no fees, only reimbursement to Cenergistic for our costs and expenses that have not been recouped prior to termination. Proprietary Program Cenergistic shares Proprietary Information with your district that is critical to your program success, including technology (patented software programs to assist with finding savings), specific recommendations, recommended procedures and proprietary documents Cenergistic LLC

92 Service Agreement 56 Program Continuation Upon completion of the contract term, your district has the option to extend the contract and continue to receive all the benefits of Cenergistic s energy savings program. Your district can then opt to terminate at any time, with a simple 60-day notice with no fees or obligation. Measurement and Verification Plan In addition to our standard contract, we provide a separate Measurement and Verification Plan (M&V Plan) that clearly sets out how the savings will be determined and the various steps included in determining savings. Unlike some energy management services providers, our M&V Plan adheres to the requirements of the International Performance Measurement and Verification Protocol (IPMVP) Our M&V Plan has been reviewed and approved by Cenergistic s Vice President of Data Quality, an industry professional with notable accounting, energy management, and quality auditing certifications: Eileen Byrd, CPA, CEM, CMVP, CIA, CIAQP, CQE Senior Vice President, Data Quality Education: Master s Degree, Accountancy, Wayne Huizenga School of Business, Nova Southeastern University; Bachelor s Degree, Business Management, University of South Carolina-Aiken Licenses/Certifications: Certified Public Accountant, Certified Energy Manager, Certified Internal Auditor, Certified Quality Engineer, Certified Quality Auditor, Certified Quality Technician, Certified Indoor Air Quality Professional and Certified Measurement and Verification Professional 2017 Cenergistic LLC

93 Service Agreement 57 Attachment 1: Cenergistic Contract 2017 Cenergistic LLC

94 THIS INSTRUMENT HAS BEEN PREAUDITED IN THE MANNER REQUIRED BY THE SCHOOL BUDGET AND FISCAL CONTROL ACT. Date Finance Officer, Union County Public Schools, North Carolina Energy Savings Contract This energy savings contract is between the Union County Public Schools (the District ) and Cenergistic LLC ( Cenergistic ). This contract is subject to all applicable state and federal laws. Cenergistic delivers customized, comprehensive people-driven energy conservation programs that focus on changing human behavior to help school districts, churches and higher education clients reduce their consumption of energy and water without any equipment upgrades. Implementation of these programs is guided by Cenergistic s team of energy consultants - together representing several hundred years of public school energy conservation experience. Cenergistic s clients can invest the financial savings that result in the lives of the people they serve, rather than in utility companies. Cenergistic guarantees the success of these programs as set out in paragraph 7 below. To date Cenergistic has served more than 1,400 clients in 48 states. The District is committed to its mission: "Preparing All Students to Succeed." The District uses electricity, gas, heating oil, water and sewer (collectively energy ) to fulfill its mission. The District serves more than 41,675 children at its 53 campuses. Cenergistic has offered to build and provide a customized energy conservation program that is focused on organizational and behavioral change and is designed with the following goals: Save dollars that the District can reinvest in the people it serves; Preserve a quality learning environment for the District s children; Conserve energy for a positive impact on the environment; and, Increase awareness to empower energy users to be energy savers. Cenergistic will help the District pursue these goals through implementation of its energy conservation program. Central to the success of this program is the recognition of shared responsibility between Cenergistic and the District as the program is initiated and implemented. Cenergistic provides extensive resources, education and onsite training, action planning, and other conservation-related services, while the District works cooperatively to implement Cenergistic s program. Shared responsibility also extends into the way Cenergistic is compensated for its services. With this in mind, Cenergistic is providing three energy specialists who will serve on-site to lead and manage implementation of the energy conservation program and is offering a performance fee billing 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

95 arrangement. This approach means the District will not have to spend any amounts for on-site management of the program and 100% of Cenergistic s compensation is paid from the savings realized by the District. Cenergistic s fee is contingent on the successful implementation of Cenergistic s conservation program. As a part of this shared responsibility, Cenergistic offers a QuickStart during the early months. During the QuickStart the District Performance Fees are paid in arrears to allow time to receive, process and record all utility bills into the software, and to finalize savings calculations and reports; at the same time Cenergistic delivers focus on priority elements of its Cenergistic energy management program for a quick start. The QuickStart also allows for acceleration of savings for the District before Performance Fee payments begin. The parties therefore agree as follows: 1. Program. On ( Start Date ) Cenergistic shall begin its work on this contract to provide the District with a people-driven energy management program that is customized to enable the District to reduce consumption of energy ( Program ). 2. Energy Consultants. A Cenergistic team of energy consultants shall deliver the Program to the District as follows: Through Cenergistic s on-site and ongoing assessments of the District s facilities and based on Cenergistic s experience in having assessed thousands of client facilities, Cenergistic s energy consultants shall deliver hundreds of recommendations that are specific to the District s environment. Cenergistic s energy consultants shall guide and assist the District s Program implementation following Cenergistic s proven methodology, the Cenergistic energy management program. 3. Energy Specialists. (a) Onsite Assignment. Program implementation requires a daily focused effort in the District s facilities and areas. This effort will initially be led by three energy specialists who can make conservation a priority while positively engaging people to conserve energy. Cenergistic may adjust the number of energy specialists depending upon the needs of the Program. Cenergistic shall take immediate actions to identify three persons to serve as energy specialists for the District. The salary or contract expense for the energy specialist will be paid by Cenergistic. The District Human Resources Department will participate in the Welcome Call to be conducted at a mutually agreeable time following the signing of this contract and will assist and cooperate with Cenergistic in making information concerning employment information and options as an energy specialist available to District employees. The District Human Resources Department will also assist with internally publicizing, posting, distributing information and coordinating Job Information Sessions and interviews by Cenergistic for prospective energy specialists. In the event the Program is suspended for reasons set out in paragraphs 7(b) or 8(c) below, the District shall reimburse Cenergistic for the compensation of the energy specialist during the period of Program suspension. Cenergistic will not assign an energy specialist to the District that is unacceptable to the District (which acceptance shall not be unreasonably withheld). (b) Duties. The energy specialists primary duties will be to spend time in the District s facilities to identify savings opportunities and to work closely with the District s people to execute proven implementation strategies to change behavior linked to energy consumption. The effective management of energy information is also important for achieving positive results through accountability. For this the 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

96 energy specialists will work to maintain energy consumption and other information related to energy use in the District s facilities and areas. The energy specialists will use the EnergyCAP energy accounting software program from EnergyCAP, Inc. ( Software ). (c) Local Resources. Within 30 days after the selection of the energy specialists, the District will provide the energy specialists with office space, an office phone, internet access, address, on-campus parking, building keys and alarm codes. Use of these resources is subject at all times to District policies and procedures. If requested due to safety or security concerns, the District will provide a commissioned security officer to accompany the energy specialists while performing facilities assessments outside of normal business hours. 4. Program Implementation. (a) Prompt Start. Once Cenergistic has assigned energy specialists to work on-site, the District will promptly begin and then continue to implement the Program. (b) Commitment and Communication. In Cenergistic s experience, the success of the District s Program implementation will be a function of the demonstrated commitment of the school board, superintendent and other administrators, e.g. through timely communication of high level support for the Program. More specifically, no later than 60 days after the Start Date, the school board must adopt an appropriate policy and the administration must adopt appropriate administrative guidelines reflecting the District s commitment to the Program. The District shall communicate these guidelines to its people, construction contractors and on-site management service providers, if any. Cenergistic will facilitate semiannual progress reports for the school board. The District will make its utility records available for review and copying on request of the energy specialist, Program Liaison or Cenergistic. (c) Software Tool. The effective management of energy information is a first step to achieving positive results through accountability. Energy consumption will be accounted for by using a third party software program, EnergyCAP, with which Cenergistic s energy consultants are knowledgeable and trained to provide support to the District. No later than 90 days after the Start Date, the District must license the EnergyCAP energy accounting software program from EnergyCAP, Inc, or, if later recommended by Cenergistic to its clients (e.g. because EnergyCAP ceased to be available), an alternative software program ( Software ). The District s cost for the Software will initially be $27,500 per year and will not increase during the first two years. Cost increases in year 3 and following, if any, will be determined by EnergyCAP. Data input and maintenance will be managed and controlled, at Cenergistic s option, either by the Energy Specialist or at Cenergistic s corporate office, with District access to review all data entry. (d) Program Liaison. Within thirty (30) days after the Start Date, Cenergistic and the District will discuss and collaborate on identifying one of the District s senior-level business officials to serve as the liaison and primary point of contact for the District on the Program ( Program Liaison ). The Program Liaison should be accessible and responsive to Cenergistic for communication and meetings and may not be someone who is unacceptable to Cenergistic. Cenergistic will offer education and training for the Program Liaison (and any replacement Program Liaison) to effectively serve in the role, with an emphasis that will promote the Program Liaison s role in reviewing all savings determinations. To assist in the education and training, at the next scheduled session after the Start Date, the Program Liaison shall attend, at Cenergistic s expense, the EnergyCAP workshop provided by EnergyCAP Inc. in Dallas, TX. The Program Liaison may bring other District representatives to the EnergyCAP workshop, at District expense. In the event there is a replacement Program Liaison, after designation for that position, that person shall attend the next offered EnergyCAP workshop, at Cenergistic s expense, in Dallas, TX. The 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

97 Program Liaison position shall not be vacant for more than thirty (30) consecutive days during the Term of the contract. (e) Access, Authority and Control. The energy specialists need to have access to the District s systems controls, including the energy management systems ( EMS ), and the authority (in communication and coordination with other District personnel) to make changes so that facilities are not operated outside of the established policy and guidelines. The energy specialists need the authority to: (1) program the EMS including changes in the temperature settings and run times of EMS controlled equipment (e.g. HVAC, water, heating and lighting systems), and (2) change settings and run times for each facility s equipment and systems (e.g. lighting, sewer and water systems, time clocks and thermostats) that are not controlled by the EMS. The energy specialists will not have authority to make any changes that violate District established policy and guidelines and the District retains the right to suspend the energy specialists access at any time. In the event of such a suspension the District will immediately inform Cenergistic of the suspension and the basis. The District shall provide such access and authority to the energy specialists within 30 days of the energy specialists first day of on-site work. In order to evaluate and track occupant comfort, within 30 days after the energy specialists first day, the District will set up or expand its internal procedure to ensure that all comfort feedback is immediately routed to the energy specialists. This contract does not alter the District's exclusive right of control over its people and facilities and its pre-existing responsibility, if any, to provide reasonable premises safety. (f) No Third Party Interference. The District shall not allow any third party to interfere with the District s Program implementation. 5. Savings Determination. (a) General. Energy savings are determined in accordance with the Measurement and Verification Plan ( M & V Plan ) attached hereto by comparing measured use before and after the start of Program implementation, with appropriate adjustments for changes in conditions that are independent of the Program. The simple formulaic expression is: Avoided Energy Use (or Savings) = Adjusted-Baseline Energy Reporting-Period Energy ± Non-Routine Adjustments of baseline energy to reporting-period conditions The energy specialists shall use the Software to calculate the District s savings by subtracting the energy actually used (i.e. consumption: kwh, BTUs, gallons, etc.) in each Performance Year (as defined below) from the use in the Base Year (as defined below), plus or minus any Adjustment Variables (as defined below), and applying the price (based on the blended rate to the District for each type of energy purchased by the District for all sources of energy except for solar which shall be valued as set out in paragraph 5(d)(iii) below) ( Savings ). The Total Savings means the Savings and any additional verifiable cost containment or avoidances resulting from the Program (e.g. utility refunds received as a result of a Program billing audit), in accordance with current industry-accepted valuation methodology. Savings reports shall be delivered to the Program Liaison for review and verification. The Program Liaison will work diligently to review reported Savings and will present any questions about the savings reports within five business days of receipt. Cenergistic s projections of Total Savings when using the Program are based upon energy consumption and other data furnished by the District. (b) Baseline Period. A baseline period will be established as set out in the attached M & V Plan by Cenergistic and the energy specialists, in consultation with the Program Liaison. Unless modified as set out below, the Software will be used to establish a baseline period consisting of 12 consecutive months that precede the Start Date ( Base Year ). The District represents that the historical 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

98 utility usage data provided to Cenergistic for the purpose of savings projections is accurate. If it is later determined that either: 1) there is a variation between the data provided and the accurate utility usage of ± 5% or more or, 2) changes in the 12 months preceding the Start Date would cause those 12 months to not accurately reflect actual pre-program usage by the District ( variation ), Cenergistic may select as the Base Year an alternate 12-month period from the 36 months preceding the Start Date. For new construction, the energy specialists and Cenergistic, in consultation with the Program Liaison, will use detailed, calibrated simulation analysis to compile the Base Year. (c) Reporting Period. Each reporting period will be a 12 month period ( Performance Year ). The first Performance Year will begin on Start Date and end after 12 months ( First Year ) and each Performance Year is consecutively named. The Second Year means the 12 month reporting period following the end of the First Year, the Third Year follows the Second Year, and so on. Using the Software, Savings shall be calculated for each Performance Year in comparison to the Base Year. (d) Appropriate Adjustments. (i) Adjustments to the baseline shall be made in accordance with the M & V Plan to recognize that the operating environment changes in ways that impact energy use but are independent of the Program (e.g. the weather) and function simply to bring energy use in the two time periods to an equivalent set of conditions. (ii) The Software allows appropriate adjustments to the Base Year, using available data to account for the following factors occurring during the Performance Year that affect the energy used in facilities ( Adjustment Variables ): outside temperature; floor space; occupancy type or schedule; amount, type or use of equipment; number of days in the billing period; energy rates; and reasonably estimated energy loads added or reduced after Program implementation. (iii) The Software also allows other appropriate adjustments for a more accurate Savings calculation. If the District has experienced abnormal temperatures during the Base Year, a total of 36 months of billing information will be used to create a more accurate statistical model for the District. The District shall communicate the District s energy conservation guidelines to its construction contractors and on-site management service providers, if any. Savings will be determined using either calibrated simulation or by making appropriate adjustments, as mutually agreed by the parties, in the event of any of the following: (a) the guidelines are not substantially followed by third party construction contractors or on-site management service providers; (b) the District chooses not to substantially implement Cenergistic s water conservation recommendations; or, (c) there are equipment malfunctions that negatively impact program savings. Agreement concerning the calibrated simulation or appropriate adjustments will not be unreasonably withheld by either party. In the event solar electricity is implemented by the District, the parties agree to a process that recognizes net metered electric generation to exclude any solar production from the reported EnergyCAP use and cost avoidance. Solar energy produced (that was consumed by the building) is tracked in EnergyCAP to allow for the total energy consumption comparisons. All savings reported in the cost avoidance reports shall be from energy purchased from the grid (metered electricity) so it will be valued at the grid average unit cost (as average unit cost is defined in this contract and Measurement and Verification Plan). (iv) The data will continue to be reviewed for accuracy during the term of the Contract. In the event there are inaccuracies in the data or there are data entry errors (i.e. information not known at the time, incorrect meter reading or data entered into the Software incorrectly), the data may be updated to correct such errors that occurred during the twelve (12) months immediately preceding 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

99 the latest monthly billing statement. Data prior to the twelve (12) months immediately preceding the latest monthly billing statement will be deemed to be accurate by the parties. 6. Term. This contract shall be for a term beginning on the Start Date and ending on the due date for the Performance Fee payment for the last month of the Fifth Year ( Term ). 7. QuickStart and Fees. (a) QuickStart. The QuickStart period shall begin on the Start Date and end six months after the Start Date, or on such later date as determined by Cenergistic ( QuickStart ). The Performance Fees for the QuickStart shall be paid in arrears as set out in 7b below. (b) Performance Fee. Cenergistic s Performance Fees are based on the Total Savings the Program achieves during the first five Performance Years (for a total of sixty Performance Fee payments, hereinafter, Fee Period ). For each month during the Fee Period, the District shall pay Cenergistic a fee in an amount equal to 50% multiplied by the Total Savings for that month ( Performance Fees ). As indicated in paragraph 7(a) above, the Performance Fees will be invoiced in arrears beginning the 1 st day of the seventh month following the Start Date, and shall continue being invoiced on the 1 st day of each succeeding month until all sixty (60) Performance Fees have been paid. The Performance Fees are being billed in arrears to allow time to review, process and record all utility bills and adjustment data into the ECAP software and to finalize the savings calculations and reports. The necessity of billing in arrears will not alter the District s obligation to pay sixty (60) Performance Fees. Cenergistic shall submit a Performance Fees billing statement to the District for each month during the Fee Period. Payment is due no later than 30 days after the District receives the billing statement. Failure to pay the billing statement within 60 days after it is due, at Cenergistic s option, shall result in the Program being suspended (including, without limitation, the suspension of consultant and energy specialist participation in the Program). Savings shall continue to accrue during any suspension for failure to pay the billing statement. A valid request or need for an adjustment to a billing statement shall not be good cause for failure to pay a given billing statement; any appropriate adjustments shall be made to subsequent billing statements. (c) Billing Audit Contingent Fees. In addition to any Performance Fees, the District shall pay Cenergistic a fee in an amount equal to 50% multiplied by the amount of any refund or credit that the District receives from a third party provider of energy as a result of a Program billing audit ( Billing Audit Contingent Fees ). Any such credit or refund received during the Fee Period shall be payable according to paragraph 7(b). (d) Additional Facilities. In the event the District builds, acquires, contracts with, or otherwise becomes responsible for additional facilities ( additional facilities ), such additional facilities will be included and become part of the Program pursuant to this Contract for all purposes (specifically including the payment of fees as set out in this Contract). If the District is requested by another district ( requesting district ) to allow one of the energy specialists to provide energy management support, the District agrees to not share, utilize, or include the Program (including the use or services of the energy specialists trained by Cenergistic) to any extent, in any facilities in the requesting district without Cenergistic s express written consent and payment of additional fees as mutually agreed. (e) Savings Guarantee. Cenergistic s commitment to the quality of the Program is evidenced by Cenergistic s Savings Guarantee (as defined below). Cenergistic shall reimburse the District for the difference if the District s Costs (as defined below) exceed its Total Savings, computed from the Start Date to the end of any Performance Year during the Term ( Savings Guarantee ). Due to 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

100 the cumulative nature of the Savings Guarantee it is necessary to specify that Cenergistic shall not make reimbursement for amounts that Cenergistic has already paid or reimbursed for a prior Performance Year. To be eligible for the Savings Guarantee the District must have substantially implemented the Program. The District s Costs means the total amounts paid for initial and renewal costs of the Software, and the Performance Fees. Cenergistic shall pay the District a required reimbursement no later than 90 days after the results for the prior Performance Year have been finalized by Cenergistic and the energy specialist. If Cenergistic fails to make a required reimbursement, the District may terminate this contract without payment of a Work Fee and recover the amount of the required reimbursement from Cenergistic. 8. Termination for Convenience or Lack of Substantial Implementation. (a) Termination for Convenience by District. As provided in this contract Cenergistic anticipates a long-term relationship and remains committed to the District through the Term and beyond. However, the District may terminate this contract for any reason and without cause as provided in this paragraph. Also, Cenergistic may terminate this contract in the event that even after notice and an opportunity to remedy the District is not substantially implementing the Program (as defined below). In either instance, the District must pay a Work Fee to compensate Cenergistic for its Intellectual Property, the work performed by Cenergistic and for the benefits received by the District (and not as a penalty) ( Work Fee ), with the calculation based upon the date of termination, as follows: Contract Start Date through the end of Performance Year One a. Payment for the value of Cenergistic s Intellectual Property and the continuing benefits of the program after termination: in the amount of $238,950 which represents 15% of Projected Performance Year One Total Gross Savings per the Cenergistic matrix; plus b. $700 per day, for each Cenergistic employee on-site from Start Date through the termination date to cover costs including overhead Performance Years Two through Four Performance Year Five An amount equal to the preceding twelve months Performance Fees The lesser of: (a). the remaining projected fees for Performance Year 5 per the Cenergistic matrix; or, (b). an amount equal to the preceding four months Performance Fees (b) To validly exercise its right to terminate during the Term for any reason and without cause (including if there is no appropriation of funding or for any other termination that is not based on Cenergistic s failure to perform its material obligations under this contract) (a Termination for Convenience ), the District shall provide Cenergistic with at least 60 days prior written notice and shall promptly pay Cenergistic (1) a Work Fee, plus (2) an amount equal to the unpaid Monthly Performance Fees and Billing Audit Contingent Fees, if any, but only through the termination effective date. The District s right to terminate for convenience does not limit the rights and remedies of the District. More 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

101 specifically, if Cenergistic fails to perform its material obligations under this contract, the District s legal rights and remedies are not limited by the terms of this paragraph. If the District contends Cenergistic has committed a material breach of the contract, the District will provide written notice to Cenergistic specifically describing the breach and giving Cenergistic a reasonable opportunity and time (not less than 30 days) to cure the claimed breach before taking other action. If the material breach is not remedied by Cenergistic following the notice as set out above, the District may terminate this contract without any obligation to pay a Work Fee. (c) Substantial Implementation. If Cenergistic reasonably determines that the District is not substantially implementing the Program, Cenergistic shall give the District written notice of its determination (including specific details supporting Cenergistic s determination and specific recommendations for appropriate District action) and, at Cenergistic s discretion, the Performance Year and payment of the Performance Fees shall be suspended until the District is substantially implementing the Program. The District shall act within a reasonable time to cure such failure, with curative steps being taken within sixty (60) days after receipt of the written notice referenced above. If the parties are unable to agree on whether the District is substantially implementing the Program, the parties agree to meet to resolve the differences as set out in paragraph 12(c) below. Substantial implementation of the Program does not require the District to have implemented the Program in every detail. To substantially implement the Program means that the process of implementation is material to the extent that the program functions as intended. It requires that the Program has been implemented in its material elements, or almost fully implemented. Without limiting the foregoing, the following shall be a lack of substantial implementation for purposes of this paragraph: (i) failure to pay a billing statement within 90 days from the due date; or, (ii) if the District directs Cenergistic to stop work for reasons other than a material breach of this contract and such notice is not withdrawn within sixty (60) days after initial delivery to Cenergistic. For purposes of determining savings, savings shall continue to accrue through any suspension period. If Cenergistic reasonably determines the District continues to fail or refuse to substantially implement the Program following such notice and opportunity to remedy, (including the opportunity to follow the dispute resolution process set forth in Paragraph 12(c) below), then Cenergistic may exercise this right to terminate during the Term on written notice and the District shall promptly pay Cenergistic: (1) a Work Fee as calculated according to this paragraph 8 above, plus (2) an amount equal to the unpaid Performance Fees and Billing Audit Contingent Fees, if any, but only through the termination effective date. (d) Termination for Convenience by Cenergistic. In the event Cenergistic determines there are unanticipated factors or changes that occur during the Term that make continuation of the Program unsustainable, upon giving the District sixty (60) days prior written notice, Cenergistic shall have the right to terminate this contract without any payment or other obligation. In such event, the District will be entitled to retain all residual savings after the date of termination from the Program without payment of Performance Fees for such period and shall not be required to pay a Work Fee. Unanticipated factors or changes shall include, without limitation, the following: unusual building or operational conditions, equipment defects, inability to hire and/or retain qualified energy specialists, or other factors not in Cenergistic s control that would negatively impact savings or savings potential. 9. Termination Event. Upon termination of this contract or discontinuation of the Program at the end of the Fee Period the District shall promptly: (a) return to Cenergistic all materials and Proprietary Information previously furnished by Cenergistic or accumulated by the District in connection with the Program, including all copies thereof; and (b) cease using the Proprietary Information and 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

102 implementing the Program. Notwithstanding the foregoing, the District is not prohibited from: (i) using energy conservation information that is in the public domain or is obtained from sources other than Cenergistic, or (ii) hiring a person (other than an energy specialist trained by Cenergistic) to assist with monitoring energy use or consumption. 10. Proprietary Program and Information. (a) The District will have access to and use of Cenergistic s energy management program as well as materials that are copyrighted, trade secrets and other information that is proprietary to Cenergistic (collectively Proprietary Information ). Furthermore, the Proprietary Information also includes all database files created using the Software. (b) The District agrees that the Proprietary Information (including all copies) continues to be Cenergistic s property and should be kept confidential to the full extent permitted by law. The District shall give Cenergistic written notice and an opportunity to respond if the District receives a third party request for Proprietary Information. The District shall not disclose the Proprietary Information to any unauthorized person or use it outside of the District or this contract. The District shall assist Cenergistic in the protection of the Proprietary Information. The District s obligations under this paragraph survive termination of this contract. (c) While under contract with Cenergistic and for a period of two years following the termination of this contract, the District will not solicit, hire or retain any Cenergistic employees or contractors for employment or other work at or for the District. 11. Program Continuation Phase. After the Term, the District will have the option to continue partnering with Cenergistic upon the same terms as set out in this Contract to sustain and grow energy program savings. No action will be required by either party to continue the Program beyond the Term, but if the District chooses not to continue the Program beyond the Term or to terminate at any time after the Program has been continued beyond the Term, it will provide sixty (60) days written notice to Cenergistic. There shall be no Work Fee in the event of cancellation after the end of the Term. 12. Miscellaneous. (a) The District confirms that this contract has been duly authorized by all required action of the District, including any approval required from the Union County Public Schools and any preaudit certification required under N.C.G.S. Sec. 115C-441, and that this contract constitutes a valid, legal and binding obligation of the District, enforceable in accordance with its terms. This contract constitutes the entire agreement of the parties with respect to the subject matter of this contract. This contract supersedes the parties prior communications, requests, responses, proposals, offers and agreements, if any. This contract may be modified only by a writing signed by the parties. Invalidity or unenforceability of one or more provisions of this contract shall not affect any other provision of this contract. (b) In an action to enforce or construe this contract in a court with competent jurisdiction, the prevailing party shall be entitled to recover its reasonable and necessary attorneys fees and costs of court. (c) Dispute Resolution. Open communication and cooperation of the parties is vital to the success of the Program and to the settlement of disputes if they arise. If a dispute persists, either party may suggest an executive meeting for review and resolution. The party suggesting the meeting should identify the issues in dispute and coordinate a face-to-face meeting at the District to review the issues and solution options. The executive officer for each party who has full authority to discuss the issues and commit to effective solutions shall attend and participate in the meeting. Also, those persons 5950 Sherry Lane, Suite 900, Dallas Texas P: F:

103 with firsthand knowledge of the issues must be available for the meeting. No dispute under this contract shall be subject to litigation proceedings prior to completing the meeting, except for an action to seek injunctive relief. (d) Counterparts. A signed copy of this Contract delivered by facsimile, or other means of Electronic Transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Contract. Each party is signing this contract on the date stated under that party s signature. Union County Public Schools CENERGISTIC LLC By: By: Name Name: John Bernard Title: Title: President Date: Date: November 13, 2017 Union County PS, NC North Carolina K12 TK MES v Sherry Lane, Suite 900, Dallas Texas P: F: