agenda city council work session monday, january 11, …...jan 11, 2016 · agenda city council...

AGENDA

City Council Work SessionMonday, January 11, 2016 Mankato Room at 6 p.m.

1. Ameresco Presentation

2. Adjournment

1/8/2016

1

Energy Savings Performance ContractPreliminary Findings

© Ameresco, Inc. 2015, All Rights Reserved

December 2, 2015

Preliminary Findings

City of Mankato Administration Project Review

n Ameresco Introduction

n Energy Savings Performance Contracting Your trusted

AgendaAgenda

© Ameresco, Inc. 2015, All Rights Reserved 2

Performance Contracting

n Preliminary Assessment Findings

n Next Steps

Your trusted sustainability partner

Broad Base of SolutionsBroad Base of Solutions

Ameresco offers a comprehensive array of energy solutions to address energy at every stage – before, at, and after the meter – and on an integrated basis supporting best practices and customer value.


ReRe--Purposing of Current Utility Budget DollarsPurposing of Current Utility Budget Dollars

Annual Cash Outlay from Operating Budget (Tangible)

$Ut

ility

Ex

pens

esESPC Example n Minnesota State Statute §471.345

- Energy Efficiency Projects

n Energy savings pay for infrastructure improvements

n Energy savings guaranteed

n Ameresco to pursue grants, utility


= Utility Costs

= Project Payment

2

$ Expe

nses

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

Utility Budget

Future Annual Energy Budgets After Energy Eff. Improvements

Re-Purposed Portion of Current Utility Budget to Finance Project Construction

20

Ameresco to pursue grants, utility rebates, local incentives, etc.

n Self-funded with little or no capital

n Project guaranteed up to 20 year term

n Finance Rates are still LOW

Key Differences Key Differences –– Benefits of Performance Contracting Benefits of Performance Contracting

Traditional Spec / Bid Performance-BasedLow bid awarded based on specifications (written by staff or consultant?)

Awarded based on performance & lifecycle costs

Project costs funded by capital budget Project Payments are offset by guaranteed cost savings freeing up capital for other non energy city project needs

Piecemeal approach based on available funding

Comprehensive approach(6 – 12 month project completion)


funding (6 – 12 month project completion)Up-front fee for evaluation/studies No up-front fee required

Performance & savings are not guaranteed

Long-term performance & savings are guaranteed

Contractors have no accountability to lifecycle costs Performance-based contractor is tied to

guaranteeing savings over term of contract

City assumes cost savings risk Ameresco shoulders cost savings guarantee and risk

Multiple contracts with multiple vendors One contract, single-point accountability

City of Mankato Use of EnergyCity of Mankato Use of Energy

Overall, the City spent approximately $ 2,535,256 in 2014 on gas and electric utilities for City Facilities and Infrastructure (Buildings, Water & Waste Water Treatment, Street Lighting, …etc). The chart below shows the breakdown between electric and gas costs. *


* Energy use costs are based on Data provided by the City of Mankato

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2014 Utility Consumption by Facilities 2014 Utility Consumption by Facilities Building or Facility Electric Gas

Public Works $ 2,317 $ 71,344 City Hall $ 88,178 $ -Parks $ 91,837 $ 30,233 Street Lights $ 367,728 $ 16,493 Water Treatment $ 409,873 $ 30,143 Waste Water Treatment $ 607,064 $ 124,724 Public Housing $ 114,729 $ 42,639 Convention Ctr $ 315,299 $ 114,712


NOTE: Preliminary Assessment Identified Facility Improvement Measures follow Minnesota Green Step Cities best practices for Buildings and Lighting

http://greenstep.pca.state.mn.us/recognition.cfm**

Ameresco Proud Sponsor of the• 2014 GreenSteps Cities Award• 2015 GreenSteps Cities Award

* Utilities based on data provided by City of Mankato

Convention Ctr $ 315,299 $ 114,712 Fire Halls $ 5,261 $ 12,692 Airport $ 59,026 $ 30,965

$ 2,061,311 $ 473,945

City of Mankato Opportunities for

Facility Improvement


Facility Improvement

LIGHTING Solutionsn Retrofit Interior/Exterior/Street Lighting

Fixtures w/ LED lighting technologyn Increase use of controls & sensors to

optimize operations.n Interconnect existing Energy Management

Control (EMS) system for unoccupied control

Lighting Improvements Lighting Improvements –– Interior, Exterior, Street LightsInterior, Exterior, Street Lights


controln Optimize light levels

Benefitsn Reduces energy and operating costsn Improves overall lighting qualityn Increases avoided future O&M and capital

cost needsn Improves work environmentn Reduces summer building cooling loads

9

LED Maintenance Cost Savings: 70LED Maintenance Cost Savings: 70--80%80%

0 4 8 12 16 20

HPS fixture

YEARS

RelampRelamp & reballast Relamp

Relamp & reballast


80% Less Maintenance (and Expense)

This schedule represents the average time to replace key components of both HID and LED cobra heads. The LED fixture requires far less maintenance.

HID ballast: every 8 years

HID lamp: every 4 years

Photocontrol: every 10 years

LED driver: every 13-17 years

Photocontrol every 20 years

0 4 8 12 16 20

LED fixture

YEARS

10

LED LED Light Technology Light Technology

n LEDs are rapidly becoming the light source of choice for application, beating other technologies in every category:– Color quality– Energy consumption– Service life (100,000+ hours for street lights)– Precise optical control (better uniformity)


– Precise optical control (better uniformity)– Dimming / Controllability– Lowest total cost of ownership

n No mercury in the product making it the ultimate green and environmental option

n LED directional control capabilities minimizes light pollution(ex: up-lighting)

11

Saves Mankato $$$ Saves Mankato $$$ –– Everyday!Everyday!

LED Street Lighting Benefitsn 60-75% average energy savings

over metal halide (HID) or high/low pressure sodium

n Low light level depreciation over time means your streets will always be bright


always be brightn Maintenance savings potential

300% plusOther Tangible Savings n Reduction work order

requests & maintenance paperwork

n Reduced procurement effort and materials inventory

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LED Street LightingLED Street Lighting

n Next Phase of Project Development will identify Implementation Costs and Guaranteed Energy Savings


n 100,000+ hours LED Node life (20+ years)

n Excess Annual Savings can be redirected to other unfunded city projects

Maintenance Savings ExampleMaintenance Savings Example


LED Parking Ramp Lighting UpgradeLED Parking Ramp Lighting UpgradeSouth West Transit Authority – Eden Prairie


LED Lighting High Pressure SodiumLumens = 4365 Lumens = 8550

Color Temp = 4000 K; CRI = 65 Color Temp = 2000 K; CRI = 22

Estimated Burn hrs. = 300,000 Estimated Burn hrs. = 24,000

Watts = 56 Watts = 115

Lighting Improvements / Restroom ImprovementsLighting Improvements / Restroom Improvements

RESTROOM Solutionsn Install water control devicesn Properly adjustment flow

for each individual porcelain fixtures

n Install water flow aerators

Benefits


Benefitsn Reduces water resource consumption n Lowers water/sewer and supplies costsn Improved fixture flow & operationn Future capital cost avoidance

Building EnvelopeBuilding Envelope

AIR INFILTRATION Solutionsn Seal Wall/Roof connectionsn Weather strip and caulk windows and doorsn Adjust exterior door closers for improved close

timing n Seal wall/roof penetrations

BenefitsReduces energy consumption while increasing


n Reduces energy consumption while increasing energy cost savings

n Eliminate air infiltrationn Improves moisture barrier

17

BUILDING CONTROL Solutionsn Upgrade remaining pneumatics controls to Direct Digital Controln Upgrade Energy Management program to optimize occupied

space set back operations and settingsn Standardize city wide control set pointsn Upgrade graphical display for easy operation, monitoring and

reportsn Install additional controls - CO2, CO, NO sensors for makeup and

Building Control Improvements Building Control Improvements


n Install additional controls - CO2, CO, NO sensors for makeup and outdoor air systems

Benefitsn Energy consumption/costs reductionn Enhanced operator controln 24/7 system wide troubleshooting and monitoringn Simple web access to all systems/buildings reportsn Improved comfort / work environmentn Historical trending for operational costs analysis

18

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Motor & Speed Control ImprovementsMotor & Speed Control Improvements

MOTOR AND SPEED CONTROL Solutionsn Upgrade remaining high

efficiency electric motorsn Implement variable speed

controls/drives to precisely match operational needs for Air Handling Units or Equipment


Handling Units or Equipment

Benefitsn Energy use/cost reductionn Increases equipment/motor life

cyclen Improved operational control of

building/equipmentn Capital cost avoidance for

equipment replacement (old motors)

Ventilation ImprovementsVentilation Improvements

Electrical Transformer Solutionsn Replace City owned Electrical

Transformers n Install New High Efficiency Transformer

units

Benefits


Benefitsn Energy Conservationn Reduced Summer building heat loadsn Extends life of Transformers (capital cost

avoidance)

AHU REPLACEMENT Solutionsn Replace Air Handling Units which are beyond life

expectancy as applicable (Office Spaces/Verizon Ctr.)n Install Energy Recovery systems where possiblen Modify existing units to maximize outdoor air

economizersn Covert Constant Volume to Variable Air Volume

(VAV) Systems

Ventilation ImprovementsVentilation Improvements


(VAV) Systemsn Recommissioning Existing Air Handlers for efficient

operations

Benefitsn Reduced fuel use and energy costsn Better comfort of occupied zonesn Extends life of productn Allows for improved space utilization and flexibility

21

Sanitary Lift Station ImprovementsSanitary Lift Station Improvements

Lift Station Solutionsn Investigate opportunities to make the

lift stations more energy efficient and monitor performance.

n Utilize soft starters or variable speed drives on the lift pumps where applicable


applicablen Utilize SCADA controls to remotely

monitor lift station operation

Benefitsn Reduced electrical demand chargesn Real time monitoring to manage costs

and maintain system integrity

17

Waste Water Treatment Plant ConsiderationsWaste Water Treatment Plant Considerations

WWTP Solutionsn Investigate positive displacement blower

unit(s) replacement water with alternative blower units.

n Investigate conversion air dispersion equipment in treatment process

Benefits


Benefitsn Reduced electrical energy consumption costs

and demand chargesn Reduce future operational maintenance costsn Reduce excessive equipment sound levelsn Improve BOD and COD control

18

Preliminary Savings Analysis


Savings Analysis

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Preliminary Utility Savings PotentialPreliminary Utility Savings PotentialElectricity Natural Gas Total Utility

Expense % Range Reduction

Savings Range Expense

% Range

Reduction

Savings Range Expense

% Range

Reduction

Savings Range

City of Mankato $2,061,311 5%-7% $103k-

$177k $ 473,945 10%-15% $47k-$75k $2,535,256 6%-8% $150k-

$215k

City of Mankato Proposed Energy Reduction


$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

2014 2016

$2,061,311 $1,917,019

$473,945 $402,854

Electricity Gas

n Operation & Maintenance (TBD) Lighting maintenance materials – lamps and ballasts

n Long-Term Operational Savings (TBD) Deferred Maintenance/Future Capital Costs Based on capital improvement projects selected

Additional Areas of Savings Potential To Be QuantifiedAdditional Areas of Savings Potential To Be Quantified


Potential Annual Savings Range - $75K - $104K+ / year

City of Mankato Cost Savings OpportunityCity of Mankato Cost Savings Opportunity

Annual Energy and Maintenance Costs Avoidance Savings

~ $220k-300kCost Savings each year *

20 year Performance Contract Project Size

Ameresco’s Preliminary Energy Assessment Findings


Contract Self Funded

Performance Contract

Project Size ~ $2.6M - $3.6M *

Self Funding Project Redirects a portion of Current Energy

Budget “No New Taxes”

Funded from Energy Savings, Future O&M and Capital Cost Avoidance, Est. Utility

Rebates - $75K+

* Based on 2014 annual energy consumption costs

Preliminary Project Scope and FundingPreliminary Project Scope and Funding

General List of Facility Improvements for Further Investigationn Lighting retrofits & controlsnWater conservation retrofitsn Lift Stationsn High efficiency transformersnWaste water treatment equip upgrades

n Building controls & automation

n Pneumatic to direct digital control

n Street light upgradenWater treatment Eqpt


Funding Sources to be fully evaluated in Detailed Analysisn Energy, operations and other short/long term budget savings

opportunitiesn Xcel Energy Rebates - $60K - $80K (based on final project scope)n Private or 3rd Party Financing n Other sources to be explored in detailed analysis

AMERESCO AMERESCO -- Asset SustainabilityAsset Sustainability


Development Process& Next Step


& Next Step

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Energy Performance Contract Energy Performance Contract -- Project Development StagesProject Development Stages

PreliminaryAnalysis(no cost)

Investment Grade Audit

Performance Agreement

n Introduce n Detailed Analysis n Project Planning

(6-9 Months)

ConceptApproval

Savings Monitoring

n Needs Assessment n Savings M&V

Long-Term Partnership Process from Concept through Savings Reconciliation


n Introduce Concept

n Build Consensus Administration City Council

n Letter to Proceed

Non-binding No Cost

n Detailed Analysis Utility Baseline

n Project Options Scope Funding Sources

n Energy Services Agreement

Development Costs carried Forward to Performance Agreement

n 3-4 Months

Project Planning

n Construction

n Commissioning

n Construction Measurement & Verification (M&V)

n 6 – 9 Months

Streamlined Implementation – Minimizes In-House Staff Time & Quicker Results

n Needs Assessment

n Project Goals

n Gather Information Budgets /Reports

n Site Surveys

n Feasibility Analysis

n 30 Days

n Savings M&V

n Annual Reports

n Annual Reconciliation

n Over Term of Agreement

Scope of Detailed AnalysisScope of Detailed Analysis

n Engineering design with project scope for each Facility Improvement Measures (FIM)

n Ameresco to establish energy cost savings for FIM

n Quantify utility rebates and other available incentives


n Prioritize facility improvement measures

n Recommended project & options

n Cash flow analyses

n Approximately 90-120 days to complete

32

Next StepNext Step

Council Resolutionn Present Preliminary Assessment Findings to Counciln Council approves Project Development Agreement to

develop a self-funding Energy Savings projectn Ameresco will complete a Detailed Analysis to identify a

self-funding project, or there is No Cost to City of


self-funding project, or there is No Cost to City of Mankato

n There are No Up-Front costs to proceed at this timen Should a viable self-funding project not be approved for

implementation, an “exit fee” of $65k to $85k* would be due to Ameresco to cover a portion of incurred engineering expenses

* Dependent on agreed upon Project Scope in the Project Development Agreement

Key Project Milestones & Preliminary TimelineKey Project Milestones & Preliminary Timeline

Milestones Preliminary TimelineCouncil Resolution – Project Development Agreement Dec 2015

Deliver Detailed Findings & Recommendations to Council March 2016


Recommendations to CouncilCouncil Facility Improvement Selection April 2016

Council Approves Project and Financing Option May 2016

Implementation Phase Begins June 2016

Construction Acceptance January 2017

AMERESCO Information and ResourcesAMERESCO Information and Resources


Thank You!

1/8/2016

1

Sustainable Asset Management Planning

with AssetPlanner

Asset Sustainability

Marc RetishBusiness Manager

Ameresco

The Need for Sustainable Portfolio Planning

Confidential & Proprietary Copyright 2012

Physical Asset Criteria• Building Condition Needs• Unfunded Liability• FCI

Utilization Criteria

Real Estate Criteria•Asset Valuation •Land Valuation

Financial Criteria

Tools Tools ProcessesProcesses

& &

Decision Development Framework

Utilization Criteria•Facility utilization•Accommodation planning•Space use•Own vs. lease

EnvironmentalCriteria

• Carbon Footprint•Energy Conservation•Renewable Solutions

Financial Criteria•Capital Costs•Operating Costs•Capital Creation Strategies•Incentives

& & PoliciesPolicies

• Increase current funding

• Short-term operational savings

Establish Targets

Identify

• Deferred maintenance (DM)

• Facility Condition Index (FCI)

• Unfunded Liability (UL)

• Energy Intensity (kWh/ft2)NEEDSNEEDS

STRATEGIES

Asset Optimization & Decision Development

• Short-term operational savings

• Long-term savings strategies

• Redevelopment strategies, …

Identify Solutions

Execute• Funding sources

• Annual budgets

• Projects (budget/schedule/quality)

• Accountability / Transparency

STRATEGIES & SOLUTIONS

IMPLEMENTATIONIMPLEMENTATION

Copyright 2012

Unique Data Development : Best Practicesü Quickly establish Life Cycle cost profiles for all assets utilizing data

modeling techniques

ü Consistency and Standardization

§ Incorporation of existing Data

Validation of Asset Templates:

Basic Asset Details:§ Age§ Size

Data Development Process

Fully Developed Life Cycle Needs (30 – 90 days)

DATA VALIDATION

existing Data Sources

§ Staff Interviews

§ Targeted On-site Validation

Life CycleProfile foreach Asset

MODEL

Life CycleCost

“Templates”

§ Size§ Number of

Floors§ Use / Type

of Asset


§ Facility Name§ Facility Age§ Facility Size§ Number of Floors§ Facility Type:

Basic Asset Details Required:

Basic Asset Details


§ Facility Type:§ Admin§ Public Safety (Police,

Fire, etc…)§ Wastewater§ Engineering§ Etc.

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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

Component Inventory


Property / Site§ Roadways / Driveways§ Paving & Walkways§ Retaining Walls§ Landscaping§ Fencing§ Underground Utilities

Architectural / Structural§ Roofing, Windows, Exterior Doors§ Foundation & Exterior Walls§ Flooring & Ceilings§ Interior Walls / Doors / Millwork§ Painting & Window Coverings§ Accessories & Equipment

Wireless Download from Asset Planner

iAuditorTM - Data Capture and Management


Wireless Upload to Asset Planner

for QC

Assess Facilities using iAuditor

ComponentComponent

Replacement Value

Component What & Where Component Commentary (Condition, etc.)

Component Data Source

Overall Condition

Action Brief Description Action Commentary Action Type Action Cost Photos

B2010 Exterior Walls $1,231,780

The principal exterior cladding at the building consists of brick veneer. Certain areas of the buildings structural concrete frame also acts as the exterior wall assembly.

The condition of the exterior wall assembly is good at this time. No areas of masonry cracking or spalling were identified. The concrete wall areas are in good condition with no areas of spalling identified. The exterior cladding system underwent rehabilitation in 2006 to repair problem

Validated Good Repair exterior walls

This item is a cyclical allowance towards major repairs of the exterior masonry walls and the concrete shear walls. It is our experience that, while these components typically last for the life of the building, however, fairly major repairs are required from time to time. It is difficult to establish exactly

Repair $225,400

B2020 Exterior Windows $558,000

These components are constructed of good quality thermal glazing with aluminum frames. These components are very durable and should provide a service life of at least 40 years. However, less durable components (e.g., hardware weatherstripping.)

The window frames are in good condition with no significant problems noted. No major work is anticipated with these components within the time frame of this study.

Validated Good Replace entire window system

No failed thermal panes were observed at the areas reviewed. Weatherstripping generally appeared intact and in sufficiently good condition to serve its intended function .

Replacement $558,000

B2030 Exterior Doors $9,800These doors are typically constructed of steel and are usually very durable.

All exterior doors are functional and in satisfactory condition. Validated Good

Replace or refurbish the exterior doors and their hardware. Replacement $9,800

B30 Roofing $204,000

The main flat roof consists of an inverted membrane. The membrane is concealed by the overlaying thermal insulation and gravel ballast. Terrace areas at the north end of the building exist at the 6th, 5th and 4th

No significant problem areas were noted other than weed growth beneath/between the pavers at some of the terrace areas that should be removed as a maintenance Item. No reports were given with respect to suspected water leakage. No

Validated Fair

Remove the existing ballast and thermal insulation, remove the existing waterproofing membrane, install new roofing and replace the existing insulation and ballast.

Replacement $204,000

Step 1: Validated Condition Report


floors. suspected water leakage. No significant work requirements are

C20 Stairs $616,616 Stairs Life Cycle Model Good

D1010 Elevators & Lifts $30,000

The existing elevator cabs had been completely refurbished with new tile flooring, mirrored panels, and stainless steel trims in approximately 1999. The building is provided with 2 Northern geared traction elevators.

The finishes are in acceptable condition and no remedial work is anticipated during the study period. As per the work program, the service provider for elevator maintenance was contacted to discuss the condition of the devices and the requirements for any expected remedial work within the

Validated GoodModernization of elevator motors and controls. Repair $30,000

D2020 Domestic Water Distribution $300,000

The units are aging and failing on a regular basis. The capital plan should allow for a replacement of at least 15 Units per year which allows for a 10% replacement factor. Domestic hot water is circulated continuously through the building.

The building is at the age where domestic water lines typically experience pinholing particularly at the hot water riser line and replacement needs to be planned. Various leaks and repairs of pin-holes has been reported to have commenced at the building. The pumps were not

Validated Fair

Replace domestic hot and cold water risers to the suites in a phased approach coordinated with suite bathroom work.

Replacement $60,000

D2030 Sanitary Waste $200,000

Drainage piping consists of cast iron stacks that convey waste-water from the suites and common areas to the municipal sewer system. Duplex sump pump systems are located in the sub-basement area below the commercial kitchen area.

Drainage piping is not under pressure and generally lasts for the life of the building except for isolated repair. No significant repair requirements are anticipated. The pumps are located in pits and cannot be directly reviewed. There was no alarm condition and the pumps operated satisfactorily in the

Validated GoodAllowances to replace or repair sections of the drainage piping as needed.

Includes both sanitary and rain water drainage piping Replacement $8,000

D2095 Domestic Water Heaters $25,000

Domestic hot water for the building is provided by 2 Teledyne Laars Model PW 1010 boilers with an input of 1000 MBH each. The domestic hot water is stored in a

vertical tank adjacent to the boilerinstallation in the mechanical penthouse of the building

The domestic water boilers are known to be a quality product and no problems were observed or reported to Enerplan during our reviews. Replacement of the boilers is not anticipated to be required within the time frame of this study. No problems with the tank were observed or

Validated Good Replace domestic water heaters Replacement $40,000

Life Cycle Report

ComponentComponent : Replacement

Value

Last Major Action Year

Component : Brief DescriptionOverall

ConditionYear 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

A10 Foundations $ 5,096 1902 The foundation walls appear to GoodA20 Basement Construction $ 48,256 1902 Poured concrete basement floor. GoodB2010 Exterior Walls $ 20,000 1986 Aluminum siding. GoodB2020 Exterior Windows $ 9,454 1996 Windows and caulking. Good $ 9,800B2030 Exterior Doors $ 20,467 1902 The majority of doors were GoodB30 Roofing $ 2,846 2002 Asphalt shingle roof. GoodC1020 Interior Doors $ 23,774 1902 Doors. Poor $ 23,774C1030 Fittings $ 15,844 2005 Kitchen. GoodC3010 Wall Finishes $ 19,500 2005 Wall finishes. Good $ 3,400 $ 3,400 $ 3,400C3020 Floor Finishes $ 9,815 2005 Hardwood flooring. GoodC3020 Floor Finishes $ 9,815 2005 Ceramic tile. GoodC3020 Floor Finishes $ 9,815 2005 Carpet. Good $ 245C3030 Ceiling Finishes $ 13,790 2005 Paint on plaster ceilings. Good $ 1,720 $ 1,720 $ 1,720D2010 Plumbing Fixtures $ 44,834 2005 Plumbing fixtures. GoodD2020 Domestic Water Distribution $ 24,461 1995 Water supply piping. GoodD2030 Sanitary Waste $ 22,968 1902 Sanitary Waste Piping Fair $ 22,968

D2040 Rain Water Drainage $ 2,220 1967Eaves troughs, downspouts, soffit, and fascia.

Poor $ 1,560

D2095 Domestic Water Heaters $ 2,941 2003 Gas fired water tank. FairD3023 Furnaces $ 2,434 1997 Forced air gas furnace. Good $ 12,400D3045 Exhaust Ventilation Systems $ 2,517 2005 Exhaust fans. Good $ 900


D3045 Exhaust Ventilation Systems $ 2,517 2005 Exhaust fans. Good $ 900D5010 Electrical Service And Distribution $ 11,830 1902 Electricity is distributed to all GoodD5021 Branch Wiring $ 44,845 1902 GoodD5022 Lighting Equipment $ 9,937 2005 Lighting fixtures. Good

D5037 Fire Alarm System $ 2,772 2003Smoke detectors and pull stations.

Good

D5091 Exit & Emergency Light Systems $ 1,200 2001 Emergency lighting. Poor $ 2,550D5098 Electric Baseboard Heat 1902 GoodE1041 Residential Appliances $ 8,580 2001 Refrigerators, freezers, and Poor $ 1,200E1042 Laundry Room Equipment $ 10,000 1902 Washers and dryers. Good $ 600G2010 Roadways $ 1,200 1902 Driveway. Poor $ 1,200G2020 Parking Lots $ 9,500 1902 Parking Lot. Poor $ 9,500G2030 Pedestrian Paving $ 1,217 2004 Concrete pad. GoodG2040 Site Development $ 1,529 1991 Fencing. GoodG2050 Landscaping $ 1,200 1902 Plantings and landscaping. The Good $ 1,200G3030 Storm Sewer $ 3,000 1902 Surface drainage. The property is GoodG4020 Site Lighting $ 1,000 1986 Site Lighting Good

$ 29,084 $ 10,700 $ 22,968 $ 0 $ 6,865 $ 5,120 $ 28,520

Cumulative Renewal Requirement = $ 29,384 $ 39,785 $ 62,753 $ 62,753 $ 69,618 $ 74,738 $ 103,258Funding : Cumulative = $ 3,025 $ 6,050 $ 9,074 $ 12,099 $ 15,124 $ 18,149 $ 21,174

Unfunded Liability = $ 26,359 $ 33,735 $ 53,679 $ 50,654 $ 54,494 $ 56,589 $ 82,085(Benchmark Cost based on Template) FCI = 7.91% 14.65% 20.74% 21.98% 23.82% 25.37% 30.24%

FCI without Funding 8.77% 16.38% 23.32% 25.43% 28.13% 30.54% 36.27%

• Develop Decision Mapping• Asset Planning Framework

• Quantify Capital Renewal Needs

Renewal Costs Per YearUnfunded Liability

NEEDS NEEDS REVIEWREVIEW

(Capital Renewal)(Capital Renewal)

Needs Review (Dashboards)

• Quantify Capital Renewal Needs • Data Development &

Management

• 5 & 30 Year Capital Plan • Life Cycle Profiles• On-site assessments

• Capital Creation Strategies• Benchmark High level

savings opportunitiesFCI Targets

& Capital NeedsLife Cycle Output

Projected Capital Needs


Anticipated Funding Level

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Projected Unfunded Liability


Unfunded Liability

Sustainability Target

§ Industry Standard Index Used to Track Condition Performance of Facilities / Portfolios

FCI =Renewal and Repair Costs

Replacement Cost

Facility Condition Index (FCI)

GOOD Range: FCI (0% - 5%)FAIR Range: FCI (5% - 10%)POOR Range: FCI (10%-30%)

CRITICAL Range: FCI (> 30%)

Sustainability TargetSustainability Target

FCI (Current Year)

FCI (Year 5)

FCI (Year 10)

FCI (Year 15)

FCI (Year 20)

FCI (Year 25)

0.0% 10.0% 9.7% 29.0% 49.3% 54.1%

0.3% 7.4% 13.5% 19.9% 48.0% 51.2%

17.5% 31.6% 42.0% 50.9% 53.5% 55.4%

4.5% 8.5% 22.0% 33.8% 45.8% 49.4%

5.3% 5.0% 15.4% 37.1% 42.9% 48.2%

0.0% 0.0% 3.4% 6.3% 9.5% 30.5%

Asset AAsset BAsset CAsset DAsset EAsset F

FCI Migration Analysis

0.0% 0.0% 3.4% 6.3% 9.5% 30.5%

2.9% 7.0% 25.2% 37.0% 42.1% 46.0%

20.6% 29.5% 34.2% 44.5% 64.1% 68.1%

6.6% 14.4% 24.7% 25.6% 44.1% 55.5%

7.0% 8.0% 24.4% 30.6% 38.5% 55.9%

26.1% 30.9% 37.4% 42.8% 47.9% 49.9%

0.0% 0.0% 1.4% 17.9% 33.6% 40.6%

Asset FAsset GAsset HAsset IAsset JAsset KAsset L

Projected Facility Condition Index

Critical FCI

Copyright 2011

Poor FCI


Projected Funding Target

Critical FCI

Poor FCI

Copyright 2011

Poor FCI


Asset Optimization

STRATEGIES

ü Quantify Needs (Ops/Cap)ü 5 & 30 Year Capital Planü Dynamic Data Management

ü Capital Leveragingü Energy & Renewable Solutionsü Redevelopment Strategies

ü Efficient Design

NEEDS


STRATEGIES & SOLUTIONS

IMPLEMENTATION

Efficient Designü Streamlined Tenderingü Construction Managementü Affordable Constructionü Green Technology

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Projected Unfunded Liability

Unfunded Liability


Capital Creation Strategy

Short Term Energy Savings

ReducedUnfundedLiability


Maintenance and Operating Savings


Reduced Unfunded LiabilitySustainability Target

Longer Term Savings – Deep Retrofits


Copyright 2011

ReducedUnfunded Liability


Real Estate & Community PartnershipStrategies


Copyright 2011

ReducedUnfunded Liability


FCI Reduction Strategy


Extended Life = 16 Years

5%

10%

30%

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Outcomes Enhancing “Quality of Municipal Space ”

• 1. Understanding and quantifying capital replacement needs

• 2. Data management methods and accountability reporting

• 3. Enhanced decision making framework utilizing best practices

Strategic Outcomes

• 4. Enhanced asset value

• 5. Asset sustainability

• 6. Optimal use of capital dollars

• 7. Provides leveraged and bundled solutions

agenda city council work session monday, january 11, …...jan 11, 2016 · agenda city council...

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