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ASSET MANAGEMENTThe Guide to Weathering the 

Facility and Energy Management Storm?Perspectives of 3 Local MN Governments

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MONEY

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POLITICS

ENERGY

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REPORTS

AGINGBUILDINGS

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AFLOAT?

Asset Management 

for All

CapitalPlanning 

+ Outcomes

ProcessCapital + Energy

Erik Birkeland

City of Duluth, MN

Tony Mancuso

St. Louis County, MN

Deb Williams

City of Bloomington, MN

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Laura MalwitzCR‐Building Performance Specialistslmalwitz@cr‐bps.comFind us on LinkedIn

Nancy SchultzCR‐Building Performance Specialists

nschultz@cr‐bps.comFind us on LinkedIn

LOTS TO MANAGE

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DATA COLLECTION

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SYSTEMS APPROACH

DOCUMENTATION

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DOCUMENTATION

DOCUMENTATION

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UTILITIES – VITAL SIGNS

ASSET & ENERGY MANAGEMENT TOOL

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METRICSBASELINE

Current Replacement Value CRV

CONDITION

Facility Condition Index FCIRequirement Index RI

Energy 

Energy Use Intensity EUI

ESTABLISH METRICS

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AVOID DEFERRED MAINTENANCE

CurrentReplacement 

Value (Millions $)ON 

BORROWED TIME

FAIR

GOOD

POOR

MULTI‐BLDG  PORTFOLIO  

FCIRI

FCI & RIBENCHMARK

.64 .63 .60 .60 .56

.38.28 .25 .22 .22 .20

.14.14 .12 .09

.08 .08 .05 .031.15 1.15 .62 .60 .96 .38 .29 .31 .25 .33 .32 .20 .14 .12 .15 .13 .14 .06 .03

0

10

20

30

40

50

60

0

0.2

0.4

0.6

0.8

1

1.2

1.4

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137.30 142.60 146.20

0

50

100

150

200

250

2013

2014

2015

9,500

10,000

10,500

11,000

11,500

12,000

EUIkBTU/sf/yr

HeatingDegree Days

Higher Energy Use/ SF

Lower Energy Use/ SF

EUI TRENDING

MUNICIPAL  SERVICES  BUILDING 5 YR FUNDING NEEDS(includes  inflation)

$3,947,039 

$98,955  $26,685 $111,185 

$1,776,947 

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2017

2018

2019

2020

2021

$5,960,811

$ TO FIX

(millions)

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MUNICIPAL  SERVICES  BUILDING June 28, 2017DEFICIENCIES IN FCI

Improvement Year 2017Total: $3,947,039

(includes  inflation)

$286,958

$194,942

$40,028

$40,028

$2,125,240

$1,115,775

$144,068

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Exhaust System ‐ Garage ‐ 1975 Renewal

Fire Alarm and Security: No Systems

Gas  MAU #1 ‐ Parts ‐ 1975 Renewal

Gas  MAU #2 ‐ Vehicle Storage ‐ 1975 Renewal

Superstructure: Roof and Bulk Water Repair

Superstructure: Structural Damage and OverhangReplacement

~Public Works Equipment ‐ In Floor Lift ‐ 1990Renewal

2017

MUNICIPAL  SERVICES  BUILDING UTILITY USAGE2013

Electricity, 2,183,307

Natural Gas, 4,539,700

Electricity, $51,029 

Natural Gas, $31,438 

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Total kBTU’s – Energy Consumption = 6,723,007 Total Cost = $82,467

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CITY OF DULUTH, MNErik Birkeland• 150 BLDGS• 405,000 SF

City of Duluth Initiatives

• Implement asset management system for all City facilities 

• Develop a method to benchmark, track and integrate energy data with our asset management data

• Create a project management system

• Develop the groundwork with administration and council to use the asset management approach to inform and justify capital expenditures, the development of a strategic facility plan, and flexible GO bond funding to meet emerging facility needs with CIP funding

• Develop a path forward that can be followed by subsequent City leaders

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Asset Management Telling the story with data – giving the decision‐makers the information they need to understand the short and long term impacts of their decisions while building consensus around the efficacy of the asset management system and approach.

2016 Capital Facility Improvements

Total Number of CIP Buildings 27 of 148 buildings

Total Square Feet CIP Buildings 404,955

Investment by Square Foot $3.09 (23% decrease from 2015)

Buildings City‐Wide $580,000

Maintenance Buildings $525,000

Fire/Police $145,000

TOTAL CAPITAL IMPROVEMENT BONDS FOR ELIGIBLE CIP FACILITIES

$1,250,000

36

CIP Book pg. 7

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2013‐2016 CIP Funding Levels & Facility Capital Needs

37

CIP Book pg. 7

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016

Total Requirements

CIP Investment

2013‐2016 CIP Funding Levels

38

CIP Book pg. 7

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

CIP Funding

2013

2014

2015

2016

$

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2015 Project Detail – Capital Improvement Bond

Priority Facility CIP Project Project Rationale 2016 CIP

Critical City WideVFA Requirements – ADA, Security, Mechanical, 

Electrical, Envelope, Energy, Project Contingencies, etc.

End of Life Cycle, Function, Code, Asset Integrity, Life Safety, Accessibility, Energy

$430,000

Critical Facilities Bldg. Tuck‐Pointing – Severe Asset Deterioration Asset Integrity $75,000 

Critical Fleet Ventilation Life Safety $200,000 

Recommended Tree Farm Vehicle Storage Garage Operations $250,000

NecessaryDTA Multi‐Modal

New Police Sub‐Station Function $75,000

Necessary Fire Hall #8 Interior Flooring/Kitchen UpgradesEnd of Life 

Cycle/Function/Operations

$75,000

Necessary Main Library Front Desk Reconfiguration Operations/Function $25,000 

NecessaryMt. Royal Branch

New Carpet/Exterior Signage Operations/Function $125,000

TOTAL $1,250,000 

39CIP Book pg. 8-10

Energy EfficiencyIntegrating energy conservation into all of our capital plans and making it happen in each project.

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Project Name

Type of ECO(Energy 

Conservation Opportunity) Description

Cost Saved Annually

kWh Saved Annually

kW Saved

Therms Saved

Estimated Total Project 

Cost  Simple Payback

IncrementalPayback

Medical District Ramp ECO & LED Lighting Conversion Project

Lighting New LED lighting in ramp $17,547  58,050  NA $112,875  6.43  6.43 

Tech Center Ramp ECO & LED Lighting Conversion Project Lighting New LED lighting in ramp $22,431  95,625  NA $109,375  4.88  0.04 

Lake Walk LED Lighting Conversion Project LightingReplace exisitng light fixtures with new LED 

fixtures on Lakewalk$17,399  18,450  NA $35,000  2.01  0.03 

Lake Walk LED Lighting Conversion Project LightingReplace exisitng light fixtures with new LED 

fixtures in Lake Place Plaza Park$6,141  8,775  NA $17,550  2.86  0.11 

Lief Erickson LED Lighting Conversion Project LightingReplace exisitng light fixtures with new LED 

fixtures + Poles in Lief Erickson Park$6,112  8,550  NA $35,192  5.76  (0.30)

Rose Garden LED Lighting Conversion Project LightingReplace exisitng light fixtures with new LED 

fixtures in Rose Garden Park$6,144  8,798  NA $14,400  2.34  0.09 

Channel Walk LED Lighting Conversion Project LightingReplace exisitng light fixtures with new LED fixtures on both sides of the Channel at Aerial 

Bridge$5,303  2,330  NA $14,000  2.64  0.03 

Corner of the Lake/Carriage Walk/Sister Cities Garden LED Lighting Conversion Project

LightingReplace exisitng light fixtures with new LED fixtures in Corner of the Lake Park/Sister 

Cities/Carriage Walk$7,165  16,650  NA $33,300  4.65  0.18 

Bayfront LED light Conversion LightingReplace existing light fixtures with new LED 

fixturesNA $88,000  8.03  8.03 

Demand Control System Demand CostInstall Peak Demand Controllers on  4‐5 high 

Demand Charge Bldgs$8,000  NA $25,000 

Fire Station #4 Air Curtain at Overhead Doors InnovationInstalling air curtain door system at (4) overhead 

doors (12 x 14) (PoweredAire.com)$6,000  6,000 $32,000  5.33  5.3 

Totals $102K  217K  $517K  5.05  2.54 

Strategies and Results• Mayor awarded $500,000 to invest in outdoor LED lighting conversions 

• 100% of energy savings achieved ‐> energy efficiency upgrades for 5 years

• Created administrative buy‐in

• Continuously perfecting energy tracking 

• Align energy use and meters with buildings 

• Align work order system and maintenance strategy with our long‐term 

capital program

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ST. LOUIS COUNTY, MNTony Mancuso

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CITY OF BLOOMINGTON, MNDeb Williams• 65 BLDGS• 835,000 SF

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0.000.040.060.070.080.09

0.110.16

0.180.190.190.21

0.290.31

0.510.510.52

0.550.550.560.570.570.580.600.61

0.720.77

0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90

W e s t e r n   M a i n t e n a n c e   ‐ P i s t o l   R a n g e

S a l t   B u i l d i n g

P u b l i c   W o r k s   I I   N o r t h

D w a n   G o l f   C o u r s e ‐ M a i n t e n a n c e

O l d   T o w n   H a l l

W e s t e r n   M a i n t e n a n c e   ‐ E a s t

W a t e r   T r e a t m e n t   P l a n t

C i v i c   P l a z a

H y l a n d   G o l f   C o u r s e ‐ M a i n t e n a n c e

P u b l i c   W o r k s

C e m e t e r y   ‐ N o r t h

B l o o m i n g t o n   I c e   G a r d e n

C e m e t e r y   ‐ S o u t h

F i r e   S t a t i o n   # 1

C e n t r a l   M a i n t e n a n c e   ‐ S o u t h

F i r e   S t a t i o n   # 2

W e s t e r n   M a i n t e n a n c e   ‐ W e s t

R o b i n s o n   B u i l d i n g

H e a l t h   B u i l d i n g

F i r e   S t a t i o n   # 5

F i r e   S t a t i o n   # 6

D w a n   G o l f   C o u r s e ‐ C l u b   H o u s e

C e n t r a l   M a i n t e n a n c e   ‐ N o r t h

C r e e k s i d e   C o m m u n i t y   C e n t e r

H y l a n d   G o l f   C o u r s e ‐ C l u b   H o u s e

F i r e   S t a t i o n   # 3

F i r e   S t a t i o n   # 4

FCI ‐ ALL  BUILDINGS  MAIN,  FIRE  STATIONS,  REC,  WATER  TREATMENT   (NO  PARKS)

FCI

GOOD FAIR POOR UNSATISFACTORY

CURRENT REALITY  //   Bloomington City‐Wide Level

54

FUND ING  NEEDS  BY  YEAR‐A L L   BU I L D I NG S ‐

MA IN ,   F I R E   S TAT I ON S ,  R EC ,  WAT E R   T R EATMEN T,   PA R K S

$61,524,608

CURRENT REALITY  //   Bloomington City‐Wide Level

$4.0m$5.0m

$7.0m

$2.6m$3.9m

$8.2m

$5.5m

$18.3m

$1.3m

$5.6m

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

20,000,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

COST USD

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$1.2m

$149k

$862k

$385k

$137k$167k

$1.5m

$45k

$505k

$147k

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

2016 2017 2018 2019 2020 2021 2023 2024 2025 2026

COST USD

F I R E   STAT IONSFUND ING  NEEDS  BY  YEAR

10  YEAR  OVERV I EW

CURRENT REALITY  //   Fire Stations

Cheers!  To Surviving the Storm

Laura MalwitzBusiness Director

CR‐Building Performance Specialistslmalwitz@cr‐bps.com

Find us on LinkedIn

Nancy SchultzPrincipal and OwnerCR‐Building Performance Specialistsnschultz@cr‐bps.comFind us on LinkedIn