A FRAMEWORK AND CREATIVE STRATEGIES FOR CAPITAL … · 2019-11-06 · • Energy & Sustainability...

A FRAMEWORK AND

CREATIVE STRATEGIES FOR

CAPITAL PLANNING

•STRATEGIC PLANNING

• Capital Creation Strategies

•Alternative Funding

Solutions

• Funding Leverage /

Requests

•Business Solutions –

Financial

•Stakeholder Communication

•NEEDS ANALYSIS

•Life Cycle / Forecasting

•Condition Validation/

Assessment

•Utilization

•Risk Measurement / Metrics

•Funding Appropriation

Specializing in Portfolio Wide

Business Planning

- Holistic Portfolio Planning

- Decision Development

- Funding Appropriation

- Capital Creation Strategies

- Alternative Funding

- Business Case Development

•Capital & Ops Management

•Design/Build/Maintain

•Budget Measurement

•Benchmarking

•Monitoring of Business Plans

•Energy Optimization

•Carbon Management

•IMPLEMENTATION

•METRICS / TRACKING

ADVISORY SERVICES

INFRASTRUCTURE MODERNIZATION PLAN

HOLISTIC SOLUTIONS & STRATEGIES

Capital Planning Suite: • Asset Planning– Capital and Life Cycle planning / Decision making and benchmarking

• Project Planning – Funding approvals and Management

Maintenance Management Suite: • Preventative Maintenance - Work Order Management / Demand response management

• Service Request - Day to Day field management & ad-hoc requisition management and tracking

Energy Management Suite: • Energy & Sustainability – utility tracking, benchmarking, management, QSUM, Weather trending/normalization

• Analytics Planner– Live metering, interactive reporting, BAS connectivity, analytic optimization & management

• M3 – Measurement Management Module (integrating energy optimization with life cycle management

Software Solutions – Innovative Decision Support

SOFTWARE SERVICES

TOTAL COST OF OWNERSHIP (TCO)

DATA ACQUISITION &

DEVELOPMENT

©2018 Ameresco, Inc. All rights reserved.

DECISION DEVELOPMENT FRAMEWORKTM

5

TECHNOLOGY TYPE:

ENERGY EFFICIENCY

ENERGY MANAGEMENT

PHOTOVOLTAIC SYSEM

RENEWABLE ENERGY

FACILITY SIZE:

2,864,730 SQ FT (47 BUILDINGS)

ESPC ENERGY PROJECT SIZE:

$21.1 MILLION

PV CAPACITY: 1.8 MEGAWATTS

$1,522,629

ESPC ANNUAL ENERGY SAVINGS

Physical Asset Criteria

• Building Condition Needs

• Unfunded Liability

• FCI

Utilization Criteria •Facility utilization

•Accommodation planning

•Functional Index

•Own vs. lease

Real Estate Criteria •Asset Valuation

•Land Valuation

Environmental

Criteria •Carbon Footprint

•Energy Conservation

•Renewable Solutions

Financial Criteria •Capital Costs

•Operating Costs

•Capital Creation Strategies

•Incentives

Tools

Processes

&

Policies

Enhancing the Quality of Community & Living

©2018 Ameresco, Inc. All rights reserved. 6

Unique Data Development: Best Practices

Quickly establish Life Cycle cost profiles for all

assets utilizing data modeling techniques

Consistency and Standardization

MODEL

Life Cycle

Cost

“Templates”

Basic Asset

Details:

Age

Size

Number of

Floors

Use / Type

of Asset

DATA VALIDATION

Incorporation

of existing

Data Sources

Staff

Interviews

Targeted On-

site Validation

Life Cycle

Forecast for

each Asset

Validation of

Asset Templates:

UNIQUE DATA DEVELOPMENT: BEST PRACTICES


Mechanical

• Heating Systems

• Ventilation Systems

• Air Conditioning

• Plumbing / Drainage

• Building Controls

• Fire Prevention

Electrical

• Power & Distribution

• Interior Lighting

• Exterior Lighting

• Emergency Power

• Fire Alarm System

• Comm / IT Systems

• Security Systems

• Clock Systems

Architectural / Structural

• Roofing, Windows, Exterior Doors

• Foundation & Exterior Walls

• Flooring & Ceilings

• Interior Walls / Doors / Millwork

• Painting & Window Coverings

• Accessories & Equipment

Property / Site

• Roadways / Driveways

• Paving & Walkways

• Retaining Walls

• Landscaping

• Fencing

• Underground Utilities

COMPONENT INVENTORY


AUDITPLANNER™

DATA CAPTURE AND MANAGEMENT

8

Wireless Upload

to AssetPlanner

for QC

Wireless Download

from AssetPlanner

Assess Facilities

using AuditPlanner™


ASSESSMENT REPORTING

9

Discipline Category DM Discipline Name Replacement CostLast Major

ActionLocation/Name Brief Description Commentary Overall Condition Action: Description Action Type Cost Year Priority Priority Score 2019 2020 2021 2022 2023 Picture

B-Shell B2010 - Exterior Walls Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors268,441$ 1969 Gymnasium, cafeteria, kitchen Brick veneer, concrete frame columns Concrete and fascia need painting Fair Repair and tuck point masonry. Paint paintable elementsRepair 268,441$ 2021 Medium 34.25 268,441$

B-Shell B2010 - Exterior Walls Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors2,630,188$ 1965 Classroom wing Brick veneer, concrete frame. Concrete frame and fascia need painting.Fair Repair and tuck point masonry. Paint paintable elementsRepair 2,630,188$ 2021 Medium 34.25 2,630,188$

B-Shell B2030 - Exterior Doors Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors15,205$ 1969 Kitchen, cafeteria, gymnasium Painted hollow metal, some aluminum storefront.Hollow metal doors need painting, adjustment.Fair Replace doors and hardware Replacement 15,205$ 2021 Medium 27.25 15,205$

B-Shell B2030 - Exterior Doors Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors14,206$ 1993 Addition and entry Vestibule Aluminum storefront with painted finishHardware needs adjustment, millions need paintingFair Replace doors and hardware Replacement 14,206$ 2021 Medium 27.25 14,206$

B-Shell B2030 - Exterior Doors Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors17,820$ 1965 Classroom wing Painted hollow metal Needs painting, doors do not seal well, daylight at threshold.Poor Paint and repair doors and hardware Replacement 17,820$ 2019 High 43.25 17,820$

B-Shell B2040 - Industrial Doors Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors24,000$ 1969 Mechanical Room Coiling doors Requires painting. Fair Paint and repair doors Replacement 24,000$ 2021 Medium 32.50 24,000$

B-Shell B30 - Roofing Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors491,399$ 1969 Gymnasium, Kitchen, Cafeteria Built-up Several leaks reported. Continual maintenance necessary.Poor Replace roofing Replacement 491,399$ 2019 High 53.75 491,399$

B-Shell B30 - Roofing Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors459,100$ 1993 Entry vestibule and addition Coated membrane and metal roofing Several leaks reported, continual maintenance necessary. No snow guards on metal roof.Fair Replace roofing including metal systemReplacement 459,100$ 2021 Medium 37.75 459,100$

B-Shell B30 - Roofing Structural Components, Exterior Walls, Walls, Windows, Roofing, Doors4,814,728$ 1965 Roof Built-up Several leaks reported, missing drain hub, several blisters located. Comings and other metal work rusting.Poor Replace roofing Replacement 4,814,728$ 2019 High 53.75 4,814,728$

C-Interiors C1020 - Fittings Interior Finishes, Walls, Doors 1,090,006$ 1965 Classroom wing Casework, marker boards , lockers Casework finish in poor condition, many marker boards at end of life. TVs not FCPS current standard.Poor Replace casework and classroom equipment such as markerboardsReplacement 1,090,006$ 2019 High 43.25 1,090,006$

C-Interiors C1030 - Interior Doors Interior Finishes, Walls, Doors 54,825$ 1969 Cafeteria, kitchen, gymnasium Wood veneer Well worn finish, consider refinishing or replacement.Fair Replace doors and hardware Replacement 54,825$ 2021 Medium 28.00 54,825$

C-Interiors C1030 - Interior Doors Interior Finishes, Walls, Doors 51,222$ 1965 Classroom wing Wood veneer Well worn finish, consider refinishing or replacement.Poor Replace doors and hardware Replacement 51,222$ 2019 High 44.00 51,222$

C-Interiors C3010 - Wall Finishes Interior Finishes, Walls, Doors 193,870$ 1969 Gymnasium, cafeteria, kitchen Paint Fair Paint all walls Replacement 193,870$ 2021 Medium 22.75 193,870$

C-Interiors C3010 - Wall Finishes Interior Finishes, Walls, Doors 181,128$ 1993 Entryway, offices, connector, media centerPainted CMU and gypsum board Good Paint all walls Replacement 181,128$ 2023 Low 12.75 181,128$

C-Interiors C3010 - Wall Finishes Interior Finishes, Walls, Doors 1,899,542$ 1965 Classroom wing Painted CMU and structural glazed tile Fair Paint all walls Replacement 1,899,542$ 2021 Medium 22.75 1,899,542$

C-Interiors C3020 - Floor Finishes Interior Finishes, Walls, Doors 336,010$ 1969 Gymnasium, kitchen, cafeteria Wood gym floor, concrete, ACT floor. Quarry tile in kitchen.Gym floor recently refinished. ACT in cafeteria.Fair Replace cafeteria flooring and all other flooring except for gymnasium Replacement 336,010$ 2021 Medium 23.50 336,010$

C-Interiors C3020 - Floor Finishes Interior Finishes, Walls, Doors 313,925$ 1993 Entry vestibule, media center, offices Carpet, VCT Fair Replace carpet and VCT flooring Replacement 313,925$ 2021 Medium 23.50 313,925$

C-Interiors C3020 - Floor Finishes Interior Finishes, Walls, Doors 3,292,229$ 1965 Classroom wing Terrazzo in corridors, VCT in the classroomsTerrazzo is in poor condition, as is the glazed tile base. VCT in classroom at the end of life.Poor Replace terrazzo with epoxy terrazzo system. Replace other VCT flooringReplacement 3,292,229$ 2019 High 45.50 3,292,229$

C-Interiors C3030 - Ceiling Finishes Interior Finishes, Walls, Doors 306,452$ 1969 Gymnasium, kitchen, cafeteria Painted structure, acoustical panel ceilings Fair Replace acoustical panel ceilings Replacement 306,452$ 2021 Medium 28.00 306,452$

C-Interiors C3030 - Ceiling Finishes Interior Finishes, Walls, Doors 286,309$ 1993 Entry vestibule, media center Painted structure and acoustic panel ceilings Good Replace acoustical panel ceilings Replacement 286,309$ 2023 Low 12.00 286,309$

C-Interiors C3030 - Ceiling Finishes Interior Finishes, Walls, Doors 3,002,615$ 1965 Classroom wing Acoustic panel ceilings Poor Replace ceilings and ceiling grid Replacement 3,002,615$ 2019 Medium 38.00 3,002,615$

D-Services - Mechanical D2010 - Plumbing Fixtures Plumbing, Mechanical (HVAC), Fixed Equipment2,641,879$ 1965 Boys Restroom Water closets, lavatories, & urinals Poor Replace plumbing fixtures. Replacement 2,641,879$ 2019 Medium 34.25 2,641,879$

D-Services - Mechanical D2030 - Sanitary Waste Plumbing, Mechanical (HVAC), Fixed Equipment536,716$ 1993 Mechanical rooms (two locations) Back flow preventers, floor drains, and vent thru roof.Waste piping and vents are in walls or underground.Fair Replace sanitary waste piping. Replacement 536,966$ 2020 Medium 28.00 536,966$

D-Services - Mechanical D2040 - Rain Water Drainage Plumbing, Mechanical (HVAC), Fixed Equipment364,088$ 1993 Roof drains, roof drain insulation Fair Replace piping. Replacement 364,088$ 2020 Medium 21.25 364,088$

D-Services - Mechanical D2095 - Domestic Water HeatersPlumbing, Mechanical (HVAC), Fixed Equipment193,814$ 2012 Mechanical Room 2012, 100 gallon gas fired water heaterWater heater is 5- yrs old Good Replace water heaters. Replacement 193,814$ 2027 Low 18.00

D-Services - Mechanical D2095 - Domestic Water HeatersPlumbing, Mechanical (HVAC), Fixed Equipment193,814$ 2012 Mechanical Room 80 gallon electric water heater Fair Replace water heaters. Replacement 193,814$ 2021 Medium 28.00 193,814$

D-Services - Mechanical D3012 - Gas Supply System Plumbing, Mechanical (HVAC), Fixed Equipment384,713$ 1993 Outside building 2" natural gas main into mechanical room Good Replace gas supply piping. Replacement 386,491$ 2038 Low 18.75

D-Services - Mechanical D3022 - Hot Water Boilers Plumbing, Mechanical (HVAC), Fixed Equipment384,713$ 1965 Mechanical room Two , gas fired Lochinvar boilers Fair Replace boilers. Replacement 384,713$ 2020 Medium 28.00 384,713$

D-Services - Mechanical D3024 - Boiler Room Piping And SpecialtiesPlumbing, Mechanical (HVAC), Fixed Equipment43,717$ 1965 Mechanical room Hot water expansion tank Good Replace boilers room piping. Replacement 43,717$ 2025 Low 18.00

D-Services - Mechanical D3025 - Primary HVAC Pumps Plumbing, Mechanical (HVAC), Fixed Equipment81,382$ 1965 Mechanical room Chilled water supply, hot water supply, hot water return pumpsSee pictures for type and HP Fair Replace HVAC pumps. Replacement 81,382$ 2020 Medium 28.00 81,382$

D-Services - Mechanical D3031 - Chillers Plumbing, Mechanical (HVAC), Fixed Equipment1,853,619$ 1997 Outside near mechanical room McQuay, air cooled water chiller Age of chillers is unknown Fair Replace chillers. Replacement 1,853,619$ 2020 Medium 28.00 1,853,619$

D-Services - Mechanical D3041 - Air Distribution SystemsPlumbing, Mechanical (HVAC), Fixed Equipment1,737,040$ 1969 Gym Double wall duct serving gym Ductwork condition... Original - poor Addition - fair Gym - GoodFair Replace air distribution systems. Replacement 1,739,283$ 2020 Medium 28.00 1,739,283$

D-Services - Mechanical D3043 - Hydronic Distribution SystemsPlumbing, Mechanical (HVAC), Fixed Equipment303,108$ 1993 Mechanical rooms And building CWS/CWR/HWS/HWR Insulation in varying degrees of age from good to poorPoor Replace hydronic piping. Replacement 303,108$ 2018 Medium 38.00

D-Services - Mechanical D3045 - Exhaust Ventilation SystemsPlumbing, Mechanical (HVAC), Fixed Equipment251,543$ 1993 Roof and kitchen Exhaust fans upblast Kitchen hoods Fair Replace exhaust systems. Replacement 251,543$ 2020 Medium 28.00 251,543$

D-Services - Electrical D5010 - Electrical Service And DistributionElectrical, Technology 1,238,661$ 1993 Circuit breaker switchboards and panelboards. Multiple manufacturers but predominantly Square D.With the exception of one distribution board which was installed in 2006, the switchboard and distribution boards were installed in 1992. Several panelboards remain from the original construction.Fair Replace and upgrade switchboards and panelboards. Replacement 1,238,661$ 2020 Medium 29.50 1,238,661$

D-Services - Electrical D5021 - Branch Wiring Electrical, Technology 4,513,433$ 1993 Copper wiring some of which predates 1994.Wiring in the original portions of the building has exceeded its useful life and does not support modern equipment loads in some portions of the building.Fair Replace branch wiring. Replacement 4,515,254$ 2020 Medium 28.75 4,515,254$

D-Services - Electrical D5022 - Lighting Equipment Electrical, Technology 2,241,920$ 1993 T12 fluorescent and metal halide. Various manufacturers.Interior lighting utilizes T12 fluorescent lamps. Exterior lighting utilizes metal halide lamps. T12 fluorescent lamps have been phased out of production. All lighting should be considered for upgrade. LED fixtures will provide significant energy savings. Theater lighting is in need of replacement. Lighting controls should be provided to meet current code requirements. Gym lighting should be replaced with instant on LED fixtures. Emergency egress lighting should be added to meet building code requirements.Poor Replace and upgrade lighting system. Replacement 2,241,920$ 2019 High 49.25 2,241,920$

D-Services - Electrical D5032 - Intercommunications And PagingElectrical, Technology 217,915$ 1993 Rauland Telecenter V Main intercom equipment rack is a Rauland Telecenter V switchboard type system. Equipment has not been upgraded since 1993 and should be considered for replacement.Fair Replace and upgrade intercom system. Replacement 217,915$ 2020 Medium 28.75 217,915$

D-Services - Electrical D5033 - Telephone Systems Electrical, Technology 896,768$ 1993 The telephone system is an analog system installed in 1993. Ethernet cabling is Cat 5e.Equipment should be considered for upgrade in next renovation.Fair Replace and upgrade telecommunications wiring system. Replacement 896,768$ 2020 Medium 24.25 896,768$

D-Services - Electrical D5036 - Clock & Program SystemElectrical, Technology 138,900$ 1993 Rauland Telecenter V Time system is integral to the intercom system. Equipment should be considered for replacement in the next renovation.Fair Replace and upgrade scheduling and notification system. Replacement 138,900$ 2021 Medium 22.00 138,900$

D-Services - Electrical D5091 - Exit & Emergency Light SystemsElectrical, Technology 224,192$ 1993 Fluorescent or incandescent exit signs. Generator powered emergency lighting except battery powered in kitchen/cafeteria.Exit signs use fluorescent or incandescent technology. Emergency lighting is provided by lights on the generator system and by battery lights in the kitchen and cafeteria. Emergency egress lighting is not present at most doors. The emergency lighting system should be upgraded to meet current egress code requirements.Poor Replace and upgrade emergency lighting and exit system. Replacement 224,192$ 2019 High 47.25 224,192$

D-Services - Electrical D5092 - Emergency Power & Generation SystemsElectrical, Technology 263,650$ 1993 The Kohler 200kW generator was installed in 1993 renovation. A second transfer switch will be required to meet current code requirements. The generator capacity should be reviewed in relation to equipment to be connected. Consideration should be given to connecting the walk-in coolers/freezers to the generator system. The emergency system should be upgraded to meet building code requirements in the next renovation.Emergency lighting is powered by the generator except in the kitchen/cafeteria area, where some battery powered emergency lighting remains. Emergency egress lighting does not meet current code requirements.Fair Repair and replace emergency generator and transfer switch(es).Replacement 263,650$ 2020 Medium 37.25 263,650$

17,868,010$ 12,943,331$ 6,848,478$ 260,618$ 1,108,551$

CAPITAL PLANNING

OVERVIEW


DECISION SUPPORT DASHBOARD

11


CAPITAL NEEDS BY DISCIPLINE

12

Life cycle renewal costs for the major building elements have been established for each building to

determine the Capital Renewal budget requirements over the next 30 years.

$6.1M average annual funding

2020 Deferred Backlog: $81.8M


RISK REVIEW: PRIORITY RANKING

13

2020 Deferred Backlog includes

$71.2M in Urgent and High Priority

Total Deferred Backlog of $81.8M includes $71.2M deemed Urgent and High Priority.


PROJECTED TOTAL LIABILITY

14

Total

Liability

The total liability represents the cumulative renewal needs of the portfolio based on the findings

and results obtained from the life cycle renewal cost analysis.

2020 Liability: $81.8M

(Deferred Backlog)

2049 Liability: $497M


Cumulative lifecycle renewal costs (top line) and the average annual capital funding allocation

(purple area) of $6.1M per year

PROJECTED UNFUNDED LIABILITY

15

Unfunded

Liability


Asset Sustainability Target: 10% FCI

Average annual

funding: $6.1M


FACILITY CONDITION INDEX (FCI)

Industry standard index used to track condition performance of facilities and portfolios

16

FCI = Renewal and Repair Costs

Replacement Cost

GOOD Range: FCI (0% - 5%)

FAIR Range: FCI (5% - 10%)

POOR Range: FCI (10%-30%)

CRITICAL Range: FCI (> 30%)

Sustainability

Target


FACILITY CONDITION INDEX - UNFUNDED

17

The portfolio has a 2020 FCI of 10.3%, placing the facilities in the Poor range.

Without funding, the FCI would migrate to “Critical” by 2030.

FCI migrates to

“Critical” (30%): 2029

FCI without funding

2020 FCI:

10.3% (Poor)


FACILITY CONDITION INDEX - FUNDED

18

Overlaying the District’s average annual capital funding of $6.1M delays the migration of

the portfolio to the “Critical” range to 2044. Additional funding will be required to sustain the

portfolio at an acceptable level of risk.

Average Annual Funding:

$6.1M per year

With funding, FCI migrates

to Critical by 2044

Additional

Funding

Required


ASSET SUSTAINABILITY TARGET

19

Establishing an Asset Sustainability Target of 10% (Fair) will “sustain” the assets at an

acceptable level of risk. This will require $13.9M annual funding over the next 30 years,

or a total of $417M.


Additional funding

requirement of

$7.8M per year

$13.9 M Per Year


FCI MIGRATION – UNFUNDED

20

CAPITAL CREATION

STRATEGIESTM


CAPITAL CREATION STRATEGIES (CCS)

22

Capital Creation

Strategies

O&M Optimization

Energy Solutions

Capital Program

Management

Real Estate Strategies

O&M Optimization

Maintenance Optimization

O&M Services

CapEx / OpEx Optimization

Energy Solutions

Data Analytics

Energy Efficiency

Demand Response

Energy Procurement

Distributed Generation

Capital Program

Management

Bundling

Sequencing

Sourcing


Fixed Asset Review

Energy Tax Credits/Rebates

Property Tax Assessment Challenge

Property Insurance Validation

Program Development

Comprehensive Program

Management

Build Winning Business Cases

Overcome Funding

Challenges

Reduce Liability ($ and FCI)

Improve Quality of Teaching,

Learning


CCS: O&M OPTIMIZATION

23

• Maintenance Optimization

• O&M Solutions

• CapEX / OpEx Optimization

O&M Optimization

• Data Analytics

• Energy Efficiency

• Demand Response

• Energy Procurement

• Distributed Generation

Energy Solutions

• Bundling, Sequencing and Sourcing

Capital Program Management

• Fixed Asset Review

• Energy Tax Credits/rebates

• Property Tax assessment challenge

• Property Insurance Validation


Indirect Expense Mitigation

Maintenance Optimization

Lifecycle Analysis

Estimated Savings: ~ $390K per Year


Life Cycle Analysis – CapEx / OpEx Optimization

$ COST

TIME

$M

M2

Life Cycle Gain

C1

$C

C2

M1

CCS: O&M OPTIMIZATION


CCS: ENERGY SOLUTIONS

25


• O&M Solutions


O&M Optimization

• Data Analytics


• Demand Response



Energy Solutions








Data Driven Solutions

EE / Deep Retrofit

Distributed Generation

Estimated Savings: ~ $430K per Year + ESPC Option


$6.1M average annual funding

2020 Deferred Backlog: $81.8M

DEEP DIVE ANALYSIS INTO ENERGY LEVERAGING

26

• The data highlights that 40+% of the total needs are related to the mechanical, electrical, and plumbing

backlog.

Hard Costs ($) % of Total

First (1) Year Needs Total 80,482,115$

MEP Only 33,845,552$ 42.1%

Five (5) Year Needs Total 192,175,713$

MEP Only 73,579,079$ 38.3%

Ten (10) Year Needs Total 235,574,877$

MEP Only 94,908,702$ 40.3%

Fifteen (15) Year Needs Total 279,348,522$

MEP Only 121,698,474$ 43.6%

Capital Needs (Backlog)


ROOF REPLACEMENT & SOLAR

27

The roofs have reached the end of expected useful life Roof mounted

Solar PV - Greening - Power

generation - Extending roof

life


CCS: CAPITAL PROGRAM MANAGEMENT

28


• O&M Solutions


O&M Optimization

• Data Analytics


• Demand Response



Energy Solutions








Program Management

Deep Retrofits

Project Coordination

Estimated Savings: ~ $360 K per Year


CCS: REAL ESTATE STRATEGIES

29


• O&M Solutions


O&M Optimization

• Data Analytics


• Demand Response



Energy Solutions




• Energy Tax Credits/Rebates




Fixed Asset/Epact 179D

Tax Assessment

Insurance Validation

One-Time Savings: ~ $250 K (Year 1)


CCS RESULTS SUMMARY

Summary Capital Creation

Strategy Est.

Saving Recommended Next Step Interest

One Time: $720K

(1st Year)

- Fixed Asset Review N/A Not applicable for Public or Not-for-Profit Entities Y/N/TBD

- Energy Tax Credits $250K Request list of energy projects completed since 2016 for analysis and proposal from Partner

Y/N/TBD

- Utility Rebates $470K One time rebates from Utilities Y/N/TBD

Annual: $1.442 M per Year

- Maintenance Optimization

$140K Schedule meeting for deeper dive into options and select areas to focus engagement Y/N/TBD

- O&M Services $105K Consider bundling solution into MEP project / program services / outsourcing Y/N/TBD

- OpX/CapX Optimization $140K Schedule workshops with District team to review and consider actions Y/N/TBD

- Data Analytics & Management

TBD Notes: Active building management, linking BAS to Schedule / Occ, Dashboards Y/N/TBD

- Energy Efficiency $850K Develop Energy masterplan; identify & evaluate specific ECMs, savings and costs Y/N/TBD

- Energy Procurement $80K Request copies of any existing gas supply contracts for analysis & recommendation Y/N/TBD

- Demand Response TBD Develop Energy masterplan; monetize distributed generation assets (Ameresco) Y/N/TBD

- Distributed Generation TBD Develop Energy masterplan; Post energy efficiency phase, focus on distributed generation assets (Ameresco)

Y/N/TBD

- Capital Program Management

$60K Request copy of current 10-year capital plan for analysis and NPV payback of implementing new life-cycles by Ameresco

Y/N/TBD

- Property Insurance Review

$60K Request copy of current insurance policy & annual premium for analysis and proposal from consultant

Y/N/TBD


$720K

One-Time,

1st Year Savings

- Fixed Asset Review -

- Energy Tax Credits $250K

- Utility Rebates $470K

$1,442K

Savings Annually

- Maintenance Optimization $140K

- O&M Services $105K

- OpX/CapX Optimization $140K

- Energy Efficiency $850K

- Energy Procurement $80K

- Demand Response TBD

- Distributed Generation TBD

- Capital Program

Management $60K

- Property Insurance Review $60K

Up to $47M leveraged dollars

O&M Optimization

Energy Solutions



Capital Creation Strategies (CCS)

Results

CAPITAL CREATION STRATEGY RESULTS

©2018 Ameresco, Inc. All rights reserved Confidential and Proprietary

.

32

CAPITAL CREATION STRATEGIES – FINANCIAL LEVERAGE

Leveraging OpEx Savings

Project Value $47,000,000

Annual Energy and O&M Savings $1,442,000

Utility Rebates Estimate (one-time) $469,705

Project Annual Contribution $2,093,333

67 cent dollars

Accumulated Cash Flow @ YEAR 15 $56,037

Accumulated Cash Flow @ YEAR 20 $12,886,267

Accumulated Cash Flow @ YEAR 25 $28,015,276


FACILITY CONDITION INDEX - FUNDED

33

Overlaying the 4-year funding plan reduces the 30-year required capital

appropriation from $417M to $346M, or from $13.9M per year to $11.5M

per year.

Impacts of 4-year funding

plan (Phase 1, Phase 2,

and Fund Request)

30-Year capital appropriation

requirement reduced to

$11.5M per year

$13.9 M Per Year


FCI MIGRATION – BEFORE

34

FCI MIGRATION – AFTER

BEFORE & AFTER COMPARISON


FINANCIAL SOLUTION (4-YEAR PLAN)

4 Year Capital (Deferred Maintenance) Needs: $150 M

Max Value of Deferral (to maintain 10% FCI) : $ 79 M

Required Funding over 4 years $ 71 M

35

Phasing Timeframe Deferred Maintenance

Addressed

Phase 1 Years 1-2 $15 M

Phase 2 Years 3-4 $27 M

Fund Request Years 3-4 $29 M

$71 M


TOTAL LIABILITY – UNFUNDED

36

Over a 4-year outlook of portfolio needs, a capital infusion of $71M will be

required to sustain the assets at an acceptable level of risk (FCI of 10%).

Unfunded

Liability

($71M)

2020 Liability: $81.8M

(Deferred Backlog)




PHASE 1 IMPACT ($20M PROGRAM)

37

In the same time period, the impact of the Phase 1 program will reduce the

required capital infusion by $15M, to a total of $56M.

Impact of

Phase 1 Program ($15M)



Unfunded

Liability

($56M)


PHASE 1 + 2 IMPACT ($27M PROGRAM)

38

Additionally, the impact of the Phase 2 program will further reduce the required

capital infusion by $27M, to a total of $29M.

Impact of

Phase 2 Program ($27M)


Unfunded

Liability

($29M)



PHASE 1 + 2 + FUNDING REQUEST

39

Further, a funding request of $29M will meet the required capital needs in order to sustain

the portfolio at an acceptable level of risk over this time period.

Impact of

Funding Request ($29M)




EPA GREENHOUSE GAS SAVINGS BY PROJECT *

Combined: Totals: Metric Tons of CO2 = 3,534 plus Phase 2 (TBD)

Phase 2: Metric Tons CO2 = The added Energy Saving Upgrades (TBD)

* The sum of the greenhouse gas emissions is equivalent to the above based on the US Environmental Protection Agency (EPA) Greenhouse Gas Equivalencies Calculator found at www.epa.gov/energy/greenhouse-gas-equivalencies-calculator .

Phase 1: Metric Tons CO2 = 3,534 Total (4,558,090 KWH and 58,579 therms of NG)

http://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator







THANK YOU

ameresco.com

Tim Dettlaff

Senior Vice President & General Manager

[email protected]

(763) 516-3905

mailto:[email protected]

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A FRAMEWORK AND CREATIVE STRATEGIES FOR CAPITAL … · 2019-11-06 · • Energy & Sustainability...

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