newark united methodist church renewing our foundation...

March 15, 2015

NEWARK UNITED METHODIST CHURCH Renewing Our Foundation (ROF)

CHURCH CONFERENCE- Phase A ( 2016)-Preliminary Project Approval

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Renewing Our Foundation

By the grace God has given me, I laid a foundation as an expert builder, and someone else is building on it. But each one should be careful how he builds. For no one can lay any foundation other than the one already laid, which is Jesus Christ.

1 Corinthians 3: 10-11 NIV 3/15/15 2

Today’s Topics •  Recap of ROF Project Accomplishments

•  Status of ROF Finances/Pledge Campaign

•  Plans for ROF Phase A (2015)

•  ROF Building Committee’s Phase A (2016) Project recommendation:

•  Scope & cost •  Financing plan

•  Congregational preliminary approval for Phase A (2016)

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ROF PURPOSE

•  Maintain and extend the life of our historic building and its component systems

•  Reconfigure and renovate the building facility to better serve and support the church's ministries and programs

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ROF Phase A Project BUILDING COMMITTEE

•  CHAIR Pete Schmalz •  FINANCE/CO-CHAIR Butch Read

•  PLEDGE CAMPAIGN Deede Cataldi •  STAFF/EDUCATION Rob Cappiello

•  ENGR/DESIGN Jim Mylin

•  ENGR/CONSTRUCTION Jerry Swalley •  SONSPIRIT/IT Sam Chamberlain

•  COMMUNICATIONS Donna Hitchner •  AT-LARGE Eric Hottenstein

•  PRESCHOOL Cathy Drew •  EX-OFFICIO David Palmer

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ROF Phase A Project ARCHITECTS

•  DALEY + JALBOOT Architects LLP Philadelphia, PA

•  Tom Daley •  Chris Greene

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ROF GOALS

•  Improve Building Systems (e.g. Heating, A/C, Electrical,

Roof)

•  Improve Security & Entries Into Building

•  Improve Navigation/ Building Wayfinding

•  Maximize Utilization Of Spaces

•  Improve Lavatories – Make Handicap Accessible

•  Integrate Sustainable Design / Systems

•  Reconfigure & Expand Administrative Offices

•  Respect Historic Character Of Building

•  Improve Utilization Of Exterior Space

•  Address Parking Deficiencies/Limited Handicap Spaces 3/15/15 7

ROF Accomplishments

• 2013 •  Gas-fired steam boiler & piping/radiator replacement (Building front section) & controls •  Handicap-accessible (HC) Cokesbury Lobby lavatory renovations •  Serving kitchen near Heritage Hall •  Main Street/Chapel/Wesley Lobby HC door replacement •  Upgrades to Christian Education office •  Existing elevator controls upgrade •  Fire alarm replacement

•  2014 •  Gas-fired hot water boiler replacement (Ed. Wing) •  Educational Wing flat roof replacement

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ROF Funding Status •  Costs to Date

•  Pre-project $ 171,000 (D&J Master Plan, Walsh Capital Campaign)

•  2013 Project (incl. design) $ 982,000 •  2014 Project (incl. design) $ 153,000

Total $1,306,000 •  Funding

•  Pre-Campaign Contributions $ 46,000 •  Campaign Contrib. (through Feb ‘15) $ 1,035,000

•  Pledged- $1,004,000 •  Non-pledged- $ 31,000

•  2015 Campaign Contrib. (projected) $ 195,000 •  DE Energy Grant $ 29,000

Total $1,305,000

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ROF Cash Status (2013 & 2014 Projects)

•  Assets

•  Cash on Hand $ 229,000 •  Projected Pledge Contributions* $ 195,000 •  DE Energy Grant $ 29,000

•  Total $ 453,000

•  Liabilities •  Remaining Project Expenses $ 5,000 •  M&T Bridge Loan $ 25,000 •  Congregational Notes $ 425,000

•  Total $ 455,000

* When received, Contributions as % of Pledges = 97%

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ROF GOALS ADDRESSED TO DATE

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Roof)









•  Address Parking Deficiencies/Limited Handicap Spaces 3/15/15 11

ROF Phase A (2015) Project

Scope: Photovoltaic (PV) Solar Installation

on Education Wing Flat Roof

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4/17/2014 CHURCH CONFERENCE

RESOLUTION DISCUSSION: •  Discussion ensued on the motion as presented and questions of whether the economic analysis of the solar installation had fully considered:

•  the full cost of ownership, including maintenance and replacement costs, and •  a “lease vs. buy” option

•  An amendment to the resolution was offered and passed by the church conference attendees.

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Renewing Our Foundation- Resolution #5 (Amended)

Newark United Methodist Church

Newark, DE 19711 Church Conference 4/27/14

To better support the mission and ministries of Newark United Methodist Church, the Renewing Our Foundation (ROF) Building Committee moves that the Church

•  approve the Phase A-2 (Summer 2014) design and construction bid estimate as described in the Report to the Church Conference on 4/27/14, and •  authorize the awarding of the construction contracts for the Phase A-2 (Summer 2014) continued renovation of the church building at 69 E. Main Street, and

•  request the ROF Building Committee to evaluate “lease vs. buy” options for the PV solar installation and select the option which has the greatest economic benefit, and •  if a “buy” option is selected, authorize borrowing up to $132,000 of NUMC Endowment Fund principal to finance the installation of the PV solar installation. Each year, for the next 20 years, a payment is to be made to the NUMC Endowment Fund to replace the borrowed principal and provide an investment return. The yearly payment will be funded by the energy rebate, utility savings, and SERC’s monies recovered through the operation of the solar installation in the prior year.

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Phase A (2015) Project

•  Revisited Question: Is “Lease” vs. “PPA” vs. “Purchase” Preferred?

•  Analysis (w/ Schiller & Hersh & PV installers):

•  Purchase Power Agreement (PPA): •  NUMC system size too small to qualify

•  Lease •  NUMC, as non-profit, does not qualify for incentives to make it economically attractive to bank (leasing costs vs. savings: a “wash”)

•  Purchase •  Yearly maintenance requirements & costs minimal •  PV panels (25 yr warranty) & inverters (10-15 yr warranty) very durable; replacement costs minimal •  Attractive “green” energy reductions and economics

•  “Purchase” continues as preferred option

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Renewing Our Foundation- Resolution #5 (Amended)

Newark United Methodist Church

Newark, DE 19711 Church Conference 4/27/14

To better support the mission and ministries of Newark United Methodist Church, the Renewing Our Foundation (ROF) Building Committee moves that the Church

•  approve the Phase A-2 (Summer 2014) design and construction bid estimate as described in the Report to the Church Conference on 4/27/14, and •  authorize the awarding of the construction contracts for the Phase A-2 (Summer 2014) continued renovation of the church building at 69 E. Main Street, and

•  request the ROF Building Committee to evaluate “lease vs. buy” options for the PV solar installation and select the option which has the greatest economic benefit, and •  if a “buy” option is selected, authorize borrowing up to $132,000 of NUMC Endowment Fund principal to finance the installation of the PV solar installation. Each year, for the next 20 years, a payment is to be made to the NUMC Endowment Fund to replace the borrowed principal and provide an investment return. The yearly payment will be funded by the energy rebate, utility savings, and SERC’s monies recovered through the operation of the solar installation in the prior year.

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PV Solar Purchase Economics •  Minimum System Description

•  Array Size: (Qty: 100) 250 Watt (W) modules •  Array Rating: 25 kW (Direct Current) •  Initial System Output: 30,760 kWh/yr

•  System Economics •  Fund with NUMC Endowment Principal •  Cost Estimate $ 120,000 •  20 yr Return Estimate

•  Energy Rebate (Yr 6) $ 30,000 •  Utility Savings $ 108,000 •  Solar Renewable Energy Credits (SREC’s) $ 16,000

$ 154,000

•  Simple Net Return on Solar $ 34,000

•  Return w/ Reinvested Yrly Savings (@ 5%) $ 140,000

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PV Solar Installation Schedule •  System Performance Specification 3/30/15 •  Request for Bids 4/15/15 •  Receive Bids 5/15/15 •  Evaluate Bids/Award Contract 6/01/15 •  System Design/Permit/Procure 7/15/15 •  System Installation 8/15/15 •  System Commission/Start-up 9/15/15

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ROF Phase A (2016) Project

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Phase A (2016) Project Objectives

•  Complete next step in Master Plan (including continuing infrastructure improvements)

•  Extend a more visible and welcoming “open door” to the community from DE Ave.

•  Facilitate easier access to encourage participation to ultimately grow and strengthen the many facets of NUMC’s ministries

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Phase A (2016) Project Scope

• Recommended Major Elements: •  New Delaware Ave. entry lobby

•  Chair lift-handicap accessibility •  Parking upgrades-Delaware Ave. lot & east side handicapped

•  Surface renovation and reconfiguration for additional spaces

•  Heritage Hall upgrades •  Increase flexibility and usability for enhanced SonSpirit and fellowship experiences

•  Sanctuary Lighting improvements •  Improved illumination, “scene” settings, and easier maintenance

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•  Sanctuary lighting improvements •  Improved illumination, “scene” settings, and easier maintenance

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Phase A (2016) Project Funding Plan

•  Cost estimate

•  Lobby Entry $ 479,000 •  Parking Lots $ 168,000 •  Heritage Hall $ 56,000 •  Sanctuary Lighting $ 66,000 •  FF&E & Technology $ 18,000 •  Misc.-Allowance & Escalation $ 50,000 •  Architect & Engineering Fees $ 88,000 •  7% Contingency $ 65,000 Total $ 990,000

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Phase A (2016) Project Funding Plan (cont.)

•  Project Cost Estimate $ 990,000 •  Funding Plan Recommendation Estimate

•  ROF Capital Campaign Extension (2/3 yr) $ 420,000 •  Walsh Associates Support (-$25,000)

•  Loan Financing $ 570,000 •  Considering Options

•  M&T Bank @ ~3 to 4% for 25 yr* •  Member Notes @ > CD rates for 10 yr

•  Total $ 990,000

* ~ $35,000/yr P&I payments from Operating Budget and/or Building/Debt Reduction Fund (Note: last two FY ave. contributions to Bldg Fund Acctà$17K)

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Phase A (2016) Project Schedule

•  Contractor Mobilization

•  May 2016 •  Construction Start

•  June 2016 •  Parking Lot Construction Completion

•  September 2016 •  Building Construction Completion

•  March 2017

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Phase A (2016) Project Approval Steps

DATE 1.  Congregational- Preliminary Approval Today 2.  Dist. Bd. Of Church Loc. & Bldg.- Prelim. Approval Apr. 2015 3.  Building Committee –Detail design/est./financing Dec. 2015 4.  Dist. Bd. Of Church Loc. & Bldg.- Final Approval Jan. 2016 5.  Congregational- Final Approval Jan. 2016

Detailed Design/Const. Bids/Cap. Campaign Results/Loan Plan and Costs

6.  Award Bids/Execute Project Mar. 2016

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ROF GOALS ADDRESSED IN PHASE A (2015 & 2016)


Roof)









•  Address Parking Deficiencies/Limited Handicap Spaces

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ROF PROGRAM- DISCUSSION &

QUESTIONS

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ROF CHURCH CONFERENCE

3/15/15 RESOLUTION

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ROF Phase A (2016) Project Today’s Project Approvals Requested

•  Affirm: ROF Phase A (2016) Project Building Committee Membership

•  Preliminarily Approve: Phase A (2016) Scope/Cost Estimate/Funding Plan

•  Approve: ROF Capital Campaign Extension in Fall 2015 supported by Walsh & Associates (Cost est. ~ $25K)

•  Approve: Detailed design & construction bid requests by Daley & Jalboot (Cost est. ~ $68K)

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Renewing Our Foundation- Resolution #6

Newark United Methodist Church Newark, DE 19711

Church Conference 3/15/15 To better support the mission and ministries of Newark United Methodist Church, the Renewing Our Foundation (ROF) Building Committee moves that the Church

•  affirm the ROF Phase A (2016) Building Committee membership as specified in the Report to the Church Conference on 3/15/15, •  preliminarily approve the Phase A (2016) project scope, estimate, and funding plan as described in the Report to the Church Conference on 3/15/15, •  approve an ROF Capital Campaign Extension (supported by Walsh & Associates) to be conducted in Fall 2015, and •  approve Daley and Jalboot to complete detailed design and solicit construction bids for the ROF Phase A (2016) project.

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