facility focus fall 2014

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PUBLICATIONS MAIL AGREEMENT #40934510 FACILITY FOCUS AEFAA The Official Publication of the Alberta Educational Facilities Administrators’ Association To P3 or not to P3: Alberta Government opts for traditional funding Catching up to the needs of student enrollment: Government announces Phase 3 of capital projects Roofs over Red Deer: RDPSD’s roof replacement program 2014 FALL

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Facility Focus is the official publication of the Alberta Educational Facilities Administrators' Association (AEFAA). The fall 2014 issue features the Phase 3 of the Alberta Capital Plan, the reverse of P3s, and so much more.

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Page 1: Facility Focus Fall 2014

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FACILITYFOCUS

AEFAA

The Official Publication of the Alberta Educational Facilities Administrators’ Association

To P3 or not to P3: Alberta Government opts for traditional funding

Catching up to the needs of student enrollment: Government announces Phase 3 of capital projects

Roofs over Red Deer: RDPSD’s roof replacement program

2014FALL

Page 2: Facility Focus Fall 2014

FACILITY FOCUS • Fall 20142

AEFAA table ofcontentsPublished by:

DEL Communications Inc.Suite 300, 6 Roslyn RoadWinnipeg, MB R3L 0G5

www.delcommunications.com

President & CEODavid Langstaff

PublisherJason Stefanik

Managing EditorShayna Wiwierski

[email protected]

Sales ManagerDayna Oulion

[email protected]

Advertising SalesGary Barrington

Donna BurnerJennifer Hebert

Contributing WritersAshlee EspenellAmanda LefleyJillian MitchellBrad Poulsen

Production Services Provided ByS.G. Bennett Marketing Services

www.sgbennett.com

Art DirectorKathy Cable

Layout / DesignJoel Gunter

Advertising ArtSheri Kidd

Dana Jensen

Cover photo courtesy of Workun Garrick

©Copyright 2014. Alberta Educational Facilities Administrators’ Association.

All rights reserved.

The contents of this publication may not be reproduced by any means, in whole or in part,

without the prior written consent of the publisher.

While every effort has been made to ensure the accuracy of the information contained herein

and the reliability of the source, the publisher in no way guarantees nor warrants the information

and is not responsible for errors, omissions or statements made by advertisers. Opinions and recommendations made by contributors or advertisers are not necessarily those of the publisher, its directors, officers or employees.

Publications mail agreement #40934510Return undeliverable Canadian addresses to:

DEL Communications Inc.Suite 300, 6 Roslyn Road,Winnipeg, MB R3L 0G5

Email: [email protected]

DELCommunications Inc.

FACILITYFOCUS

PRIntED In CAnADA 11/2014

4 AEFAA president’s message – Janine tolhurst

5 teamwork making the dream work: AEFAA member profile on Mike Lundstrom

6 Recap of the AEFAA fall conference

8 Catching up to the needs of student enrollment

10 to P3 or not to P3

14 Roofs over Red Deer

16 The Workun Garrick partnership: Architecture for education

20 A ounce of prevention goes a long way

22 Building safety together: AEDARSA

24 High-efficiency DHW in schools

26 Reliable Controls leverages BACnet capabilities in three-in-one product

28 Focusing on the clients’ needs

29 Energy performance contracting – tangible value simplified and refreshed

34 Index to advertisers

Page 3: Facility Focus Fall 2014

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Page 4: Facility Focus Fall 2014

FACILITY FOCUS • Fall 20144

AEFAA President’s MessageJanine Tolhurst

“Sometimes the questions are complicated and the answers are simple.”

– Dr. Suess

Welcome to the 2014-2015 school year!

As the new president, it is my privi-lege to help make sure we all have the best AEFAA experience possible! And to make that a bit more fun, I’m going to share some favourite Dr. Seuss quotes that will help make this year a win-win for everyone.

“Only you can control your future.”

What type of experience do you want as a member? Are you looking to be a di-rector, to learn something new, to make a change or just to feel good about the time you spend at AEFAA events? Or is

there something else? too many times we sit back and wait for the leaders to make things fun and interesting. If we each take a hand in developing the di-rection of AEFAA, and if we know what we want, we’ll be more likely to get it.

“So, open your mouth, lad! For every voice counts!”

Say what you need to say, because your voice matters, but only if it is used and heard. Bring your gifts, talents, con-nections, and experiences to the table. Don’t worry about fitting in with the group. We want you to help guide the association, not to win a popularity con-test, so don’t be afraid to ask questions, voice your opinion, and challenge the status quo.

“The more that you read, the more things you will know. The more that you learn, the more places you’ll go.”

We want every member to get value from the association. Attend work-shops, sessions and events, and learn all you can. Bring your staff and colleagues. network with other members, make new friends and share your challenges and successes.

“Oh the things you can find, if you don’t stay behind!”

You’ve got to keep moving forward and progressing because there are plen-

ty of things in the world to discover. try new products, learn new ways of doing things, experiment with new technol-ogy. Instead of going about things “the way we’ve always done it”, get out in front. You’ll find that it’s much more fas-cinating, and there is plenty more to see.

“Unless someone like you cares a whole awful lot, nothing is going to get better. It’s not.”

Things get done by people who care enough to try. It’s not always easy to care about things, especially because a whole lot of things need changing and it can be overwhelming. But if you focus on one thing that you care about that needs improvement in your world, you can make a measurable difference just by the amount of care put towards it.

to our members, directors, and sponsorship partners: thank you for your continued support, we could not do what we do without you! As always, should you have any comments or con-cerns, don’t hesitate to talk to or email any of the members who comprise this year’s executive. For all up-to-the-min-ute information, keep checking the AE-FAA website and follow us on twitter.

Have a great year! F

@safetygrrl

Page 5: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 5

Teamwork making the dream work By Jillian Mitchell

Mike Lundstrom knows about team-work. As a maintenance supervisor of 46 and a father of five, he’s always on the job – and suffice it to say, he knows what it takes to get it done right.

“You have to work together,” says Lundstrom. “Everyone has a voice. You’ve got to listen to your family, your staff.”

Lundstrom began with Wild Rose School Division (WRSD) shortly after earning his journeyman plumbing status in 2001. In 2006, he was presented with an opportunity to take on an additional supervisory role, as lead hand. Fast-track three years and he was promoted to maintenance supervisor for the divi-sion.

Second to teamwork, Lundstrom at-tributes his successes to his unyielding passion for education. “Keep on learn-

ing. Don’t stop. take every professional development opportunity you can,” he offers. “I am a certified new fourth class power engineer in the province of Al-berta, and I have also completed three years of electrician technical training.”

Lundstrom’s daily tasks at Wild Rose include overseeing the division’s 18 buildings and grounds. Every once in a while, he gets an exciting new task. “I’ve been involved in the design and con-struction of a new school in our division, which has been fun,” he says.

The WRSD maintenance supervisor joined the Alberta Educational Facilities Administrators’ Association (AEFAA)

back in 2006, and through the encour-agement of colleagues, soon decided to take on a greater role with the asso-ciation. Last year, he held the position of Zone 2 chair, and recently, he was elected vice-president. Last fall, Lund-strom was also granted CEFM (Certified Educational Facility Manager) status by the association.

“If you can help out and do a bit, it makes a difference,” he says of his deci-

sion to join the AEFAA board. “It is a

neat organization. I have a lot of support

from the people in the organization. The

biggest benefit for me is the network-

ing – to have the support of the people

in my industry. They’re a great group of

people, and right from the beginning

they were really supportive. I had a lot to

learn when I first started this position.”

Lundstrom is a man who walks his

walk, and through it all, his commitment

to his family has remained steadfast.

“Family comes first – that’s a big thing

for me,” says the husband of 19 years

who also finds time to coach recreation-

al soccer and sits on the board of direc-

tors for the local soccer association. “We

like camping, water sports, mountain

biking, snowboarding – the outdoors.” F

Mike Lundstrom with his youngest son Brandt, Brylee (left), Kenzie (right).

Lundstrum and two daughters Kenzie and Brylee on a chair lift at Canada Olympic Park in Calgary.

“Keep on learning.

Don’t stop. take

every professional

development

opportunity you can.”

Page 6: Facility Focus Fall 2014

FACILITY FOCUS • Fall 20146

Recap of the AEFAA fall conferenceBy alan Kloepper

On October 22-24, 2014, AEFAA held its annual fall workshop in the Grande Rockies Resort in Canmore, Alberta. Forty-three delegates were in attendance from various school divisions from all over Alberta. The agenda for the fall workshop consisted of a small trade-show, an issues forum, LAPP session, and a facility tour.

The event kicked off with a small tradeshow on the evening of the 22nd. Food and beverages were supplied

complements of the nine exhibitors that were in attendance. The evening was a tremendous success that was enjoyed by both the delegates and exhibitors.

Day two of the workshop started off with an issues forum. The key items dis-cussed ranged from funding shortfalls, labour shortages, employee retention, and OH&S challenges. Roundtable dis-cussions on these topics were facilitated by AEFAA executive members. There was good discussion on these topics and

some very valuable networking took place between the delegates.

Donna Kowalchuk from Alberta Pension Services did a presentation on LAPP during the afternoon. Donna gave the group great insight as to how the pension worked and definitely had the group’s attention. This session was very well received.

The LAPP session was followed by a tour of Elevation Place in Canmore. This facility is considered Canmore’s indoor playground. The City of Canmore’s facil-ity manager gave a very nice tour of the state-of-the-art facility and all of its in-ner workings.

On the final day of the workshop, the issues forum component of the agenda was completed. The final questions were discussed and then the facilitators pro-vided a synopsis of those issues.

The fall workshop was seen as a suc-cess and the group looks forward to re-turning to beautiful Canmore again! F

AEFAA held its annual fall workshop at the Grande Rockies Resort in Canmore, Alberta.

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Page 7: Facility Focus Fall 2014
Page 8: Facility Focus Fall 2014

FACILITY FOCUS • Fall 20148

Catching up to the needs of student enrollmentBy aManDa lefley

Many governing bodies face it: the chal-lenge of keeping existing infrastructure up-to-date in order to meet today’s stan-dards and current demands. What the Government of Alberta is facing, and coincidently all school boards across the province, is a unique situation within it-self when it comes to this issue.

Current infrastructure does not meet the growth of student enrollment. The demand is created by the estimated 15,000 new spaces needed for students every year, the equivalent to approxi-mately 20 new schools. This sparked the initiative for a three-phase build-out plan for new schools and school expan-sions by the provincial government that

began in 2011. Within three phases, the build-out aims to construct 105 new schools alongside modernizing 90 exist-ing institutions.

Phases 1 and 2 are underway, with 128 completed schools and nine in the later stages of construction. Particulars for Phase 3 were announced October 8, comprised of 55 new builds and 20 mod-ernizations. The government allocated $43.2 million in funding. These dollars are divided among the school boards for the planning stages of the various proj-ects.

“In essence, it is a stage of building where they will be able to do their site selection, start to build on their plans for

the schools. So when we go to budget 2015-2016, we have a better picture of what the schools will cost and what the capital budget for those schools will be,” said Kathleen Range, press secretary to the Alberta Minister of Education.

“We’re really just catching up to the enrollment that we’ve seen in the prov-ince,” she noted about the build-out pro-gram.

Some of the schools within Phase 3 include the communities of Cleardale, Peace River, Fort McMurray, Grande Prairie, Spruce Grove, Red Deer, Strath-more, Medicine Hat, Red Deer, Ed-monton, and Calgary, to name a few. Progress of the projects within Phase 3, as well as other schools announced in Phases 1 and 2, can be viewed on the Government of Alberta’s website on a spreadsheet that is updated regularly. All schools announced within Phase 3 are being fast-tracked with the intent to have all projects across all three phases completed by 2017-2018.

“By giving them the planning dollars now… we’re getting them going, and it could save up to one year of building time by getting this planning done in ad-vance,” explained Range.

A four-member cabinet committee is also anticipated to help these projects come to fruition earlier. The committee is comprised of the Minister of Infra-structure Manmeet Bhullar, Education Minister Gordon Dirks, Minister Diana

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Page 9: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 9

McQueen, and Minister Jeff Johnson. together, they will expedite permitting and other approval processes.

“Their job is to make sure that if there are road blocks that come up, such as getting development permits, they are working with all of the stakeholders to make sure these projects are moving ahead quickly and on target,” said Range.

An example of modernizationGrasslands Public Schools received

one new building in the last round of announcements, Eastbrook Elementary School, which houses children kinder-garten to Grade 6. Alan Kloepper, ex-ecutive director of the Alberta Educa-tional Facilities Administrators’ Asso-ciation (AEFAA), as well as the facility manager for Grasslands Public Schools, explained after the modernization is complete, Eastbrook might house two schools under one roof. But, the project thus has been approved in principal and the particulars have not been confirmed. Kloepper also explained a value manage-ment session is scheduled to assess the possible needs and discuss the goals as-sociated with the project.

“From that point we should be able to take it straight to the design and start working with an architect and start working on the design,” said Kloepper.

After the design stage, the project will to go to tender before construction can begin on the institution that was origi-nally constructed in 1975.

“The mechanical and electrical sys-tems, as well as the rest of the infrastruc-ture within that facility is outdated com-pletely,” explained Kloepper. “We’ve got an old boiler system that is really ineffi-cient, and we haven’t near the amount of electrical receptacles needed to accom-modate today’s educational needs.”

Kloepper anticipates the moderniza-tion will nearly double the size of the institution, with an expansion estimated around 2,000 square metres. F

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“By giving them the planning dollars now…

we’re getting them going, and it could save

up to one year of building time by getting

this planning done in advance.”

Kathleen RangePress Secretary to the Alberta Minister of Education

Page 10: Facility Focus Fall 2014

FACILITY FOCUS • Fall 201410

Alberta Government opts for traditional funding in the construction of 19 schools

By Jillian Mitchell

To P3 or not to P3

A total of 120 school projects are an-ticipated in the province of Alberta for the 2016 year – 50 new schools and 70 modernizations – and according to the Alberta Government, the majority will be completed on time, including 19 pre-viously slated under the private-public partnerships (P3) funding model.

Government officials announced this June that opting for traditional funding over the P3 model in the 19-school con-

tract would result in significant savings of taxpayer dollars – an estimated $14 million, rendering the contract’s cost from $570.7 million to $556.6 million.

“The Alberta government has been clear that P3s must provide value to stu-dents, communities and Alberta taxpay-ers,” says tracy Larsen, spokesperson for the Government of Alberta’s Min-istry of Infrastructure. “We have had many successes with past P3 projects,

including 40 new schools throughout the province. However, our evaluation determined using a P3 was not the right choice in this case.”

new contracts are currently being tendered for the former P3 contract and may result in construction delays for se-lect schools, some as late as 2017. Gov-ernment officials report that they will work with school boards to build these projects sooner, if possible.

Edmonton Public Schools Ross Sheppard Composite High School.

Page 11: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 11

Alberta Federation of Labour (AFL) president Gil McGowan is encouraged by the government’s decision to revoke the contract’s funding model, citing that P3s are not in the best interest of Alber-tan taxpayers.

“Thirty years of international expe-rience shows that P3s should be ap-proached with caution, if at all, and Alberta’s experience with P3s just adds to that growing body of evidence,” says McGowan. “Based on these experiences,

we remain convinced that the best way to quickly build the schools that Alberta needs is to go back to a conventional model of financing and construction.”

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Page 12: Facility Focus Fall 2014

FACILITY FOCUS • Fall 201412

600-student kindergarten to Grade 6 in Heritage Valley and a 900-student kin-dergarten to Grade 9 in Mactaggart,

both scheduled to open in fall 2016. Since the government’s announcement, the school district has opted to bundle

the aforesaid schools with a current dis-trict contract utilizing traditional fund-ing.

This alternate contract includes two new 900-student schools – a Grade 7 to 9 in Lewis Farms and a kindergarten to Grade 9 in Ambleside/Windermere – as well as a school restoration project in Rundle. Revised contracts for the ex-tended bundle are currently underway.

Ken Erickson, managing director of facilities for Edmonton Public Schools, remains optimistic that their two new schools will open on time. “The previ-ous P3 model was always able to get us schools fairly quickly, and we’re certainly appreciative of that. But we need these schools one way or the other – that’s the bottom line for us,” he says. “We’re capa-ble of doing these schools; we’re going to take over the construction and we don’t believe there will be delays. Our goal is

A new 600 student space expansion to Edmonton Public Schools’ Lillian Osborne High School was announced in early 2014 as part of the Building Alberta Plan.

Page 13: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 13

Alberta Federation of Labourpresident Gil McGowan.

September 1, 2016, and we’ll work hard to achieve those timelines.”

Under a P3 model, the government partners with a private funder re-sponsible for designing, building, and maintaining the project over an agreed period of time. Accordingly, interest ac-cumulates on monies borrowed and is repaid over a set term.

Since 2003, the P3 model has been used successfully in the construc-tion of 40 new Albertan schools – 18 schools completed and opened in 2010, 10 schools by 2012, and 12 schools ex-pected to open 2014-15. The model has also been used in the construction of Edmonton and Calgary’s ring roads, and in a Kananaskis water and sewer treat-ment plan.

As for the fate of the P3 model in Al-berta’s educational sector, Larsen con-firms that the door remains open. “We have had many school infrastructure successes with P3s in the past and will continue to explore using them in the fu-ture when appropriate,” says Larsen, cit-ing an example of the P3 delivery model saving $245 million in the construction of 40 new schools. “The Alberta gov-ernment knows how important new and modernized schools are to families and communities, and will continue to work with school jurisdictions to get students into these schools as quickly as possible.” F

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Page 14: Facility Focus Fall 2014

FACILITY FOCUS • Fall 201414

Roofs over Red DeerBy aShlee eSpenell

The Red Deer Public School Division houses 10,000 students in 23 differ-ent schools. When you have 1.2 mil-lion square feet of facilities to maintain, keeping a roof over everything is an on-going effort. Every five years, schools in the Red Deer Public School District go through an inspection and evaluation process to make sure things are in tip-top shape.

“We hire an engineering company to assess our roofs every five years, and they determine which properties are priorities for replacement,” says Darren

Skrepnyk, director of facility services for the Red Deer Public School Division (RDPSD). “We use that assessment and the associated cost estimates to deter-mine our five-year facilities and roofing plans.”

Gord Rajewski is the regional direc-tor for Williams Engineering’s northern Alberta region. His team has been doing the roofing inspections and evaluations for the Red Deer Public School Division since 1995, and they also do inspections and evaluations for other school divi-sions in Central Alberta. Rajewski and

his team do physical inspections of the schools themselves, but they also talk to school maintenance and facilities main-tenance staff to get their first-hand ac-count of problems they’ve seen day-to-day. All of that information is entered into a database that they use to deter-mine if repairs are needed, and which should be priorities.

“There are a lot of things that play a role in making a roofing program suc-cessful, but when you get right down to it everything comes down to documen-tation, pre-planning, collaboration and

Page 15: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 15

teamwork,” says Rajewski. “The mainte-nance staff in the school have to be able to share what they’re seeing day-to-day, the facilities office staff needs to be able to log that data and map trends they’re seeing.”

Aspen Heights Elementary, G.W. Smith Elementary, Joseph Welsh El-ementary, Lindsay Thurber Compre-hensive High School, and West Park Elementary received roof replacements in the RDPSD’s 2013-2014 roofing pro-gram. While there is always competing demand for the dollars budgeted to fa-cilities maintenance, Skrepnyk says that roofing is one maintenance demand that is usually treated as a priority.

“It’s always high on our priority list,” says Skrepnyk. “We strongly believe the roof system is the most important part of a building. If we can keep the water out then we’re doing well.”

Skrepnyk and the RDPSD have learned a lot over the years about what

kind of roofing systems are the best fit for their needs. two-ply SBS-modified membrane roofing systems are used in the majority of the division’s roofs. Elas-tomeric compounds like SBS (styrene-butadiene-styrene) rubber age better and are more flexible than asphalt will on its own. When asphalt and SBS are paired together in a two-ply system, the roof is better able to withstand the low-temperatures that are common on the Prairies. They’re also easier to clean and maintain.

“It’s been tried and tested, and we know how it performs for us,” says Skrepnyk. Ensuring that their facilities are safe and sound for students is also a top priority when a school is undergoing renovations.

“In the last 10 years we’ve also learned through trial and error that we should always do a sloped insulation on our roofs. It allows us to control the drain-age and it’s definitely a must-have when

we do replacements,” says Skrepnyk. “We don’t like water draining outside the facility because it can cause a safety concern when ice forms, so we don’t like external drainage systems. Anytime we can eliminate them and use an internal drainage system we will.”

“In the last five years we’ve also gone away from the hot mop application and now we strictly use two-component ad-hesive systems,” says Skrepnyk. “We like it because when we use the adhesive sys-tems we don’t have issues with tar ket-tles in regards to safety or the associated odours for our facilities or surrounding neighbours.”

“The sooner a district puts a roofing program in place, and they build that solid database of information, the soon-er they can create some cost certainty to their budgets,” says Rajewski. “The ulti-mate purpose is to give the administra-tion some measure of cost certainty.” F

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FACILITY FOCUS • Fall 201416

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Page 17: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 17

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• The right price for the right job

• Large local inventory

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FACILITY FOCUS • Fall 201418

shape its spaces and aid its client’s edu-cational delivery challenges. technol-ogy, teaching methods, and classroom enrollment sizes all regularly stretch the abilities of the physical space. By seeking creative design alternatives for the en-richment of the learning experience, the firm has mastered the ability to develop designs for responsive learning spaces, ideas that look beyond the traditional classroom model, and ideas that foster interaction while producing multi-func-tional solutions.

Being long-standing members of the Canadian Green Building Council, the governing body in Canada for Leadership in Energy and Environmental Design (LEED®), Workun Garrick is no stranger to green design; the firm has earned a well-deserved reputation as pioneers of sustainable architecture through its un-wavering pursuit of innovative, versatile, and efficient design elements.

It is the passionate dedication to the enrichment of our province’s learning fa-

Above: Carstairs Elementary School,Carstairs, Alta.

Clairmont Community School, Clairmont, Alta.

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Page 19: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 19

cilities that has led Workun Garrick to receive numerous accolades, in-cluding 11 awards from the Council of Facility Education Planning (CE-FPI). These accomplishments, along with thousands of smiling children, teachers, and parents, emphasize the recognition of Workun Garrick’s commitment and success in creating innovative schools throughout the province of Alberta. F

1200, 10117 Jasper Avenue, Edmonton, Alberta T5J 1W8P: 780.428.1575 F: 780.428.0326 W: workungarrick.com

Communications Inc.DEL

DEL Communications Inc. has in excess of 100 years

combined experience working for you.

We offer outstanding personal service and

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Ta-Otha Community School, Bighorn, Alta.

Page 20: Facility Focus Fall 2014

FACILITY FOCUS • Fall 201420

Getting as many years as possible from your school’s flooring is important, and after all that is why you selected resilient floor-ing. Several often-overlooked or forgotten-about preventative maintenance areas are grit control and furniture rest (feet, glides, casters, etc.).

Grit is not a friend to flooring in schools, and with all the heavy traffic from students, education, and public, it can dam-age any school floor. Controlling grit and soil is crucial to pro-longing the attractive appearance of any floor. Grit or soil is any material – including dirt, stones, sand and clay – that is depos-ited onto the floor by normal commercial traffic. The best way

to control grit is by using appropriate walk-off mats. Recommended walk-off mats should:

• All edges shouldbe slightly rounded topreventdamage ifbriefly turned on edge.

• Haveahigh-frictionopen-surfacedesigntoknockgritpar-ticles from the bottoms of shoes and then trap the particles.

• Beusedateveryentrance,insideandoutside,andshouldbeat least as wide as the doorway and eight-feet to 12-feet long.

• Haveabackingthatwon’tstainthefloor.• Beregularlycleanedandvacuumed,shakenand/orhosedoff

frequently.

• Bleachers • Basketball Backstops • Game Posts and Nets • Scoreboards • Gym Divider Curtains • Benches & Bike Racks • Lecture Room Chairs • Theatre Chairs

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An ounce of preventiongoes a long way

Innovation for the Future

Phone: 1.888.337.2929 • Fax: 1.780.452.0676Email: [email protected] • Online: www.wesclean.com

Wesclean leads the way in offering janitorial solutions, environmentally responsible

cleaning alternatives, and unequalled quality service in Western Canada. We are

driven to provide our clients with quality products, equipment and Hands-on

professional training while maintaining the highest level of customer satisfaction.

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Alberta Educational Facilities Administrators’ Association 21

Yellow and blue make green

No matter what colors you choose, Armstrong genuine linoleum and BioBased Tile™ floors deliver plenty of green benefits along with durability for extra long life. These sheet and tile flooring collections are made with non-PVC, rapidly renewable materials, and recycled content. LEED® credits and FloorScore® certification reward your good taste in green floors. Durability and easy maintenance come naturally, with NATURCote™ coating.

Visit armstrong.com/commercialflooring to see the amazing variety of sustainable, durable choices you have with linoleum and BBT™ flooring.

Contact Tavia Tilson Territory Manager AB/NWT 403-589-4093 [email protected] for more information.

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While walk-off mats will retain a substantial amount of this grit and soil, some will still find its way into the building. Regu-lar vacuuming, sweeping and dust-mopping will help control this type of grit. When you are doing dialing cleaning is the time to be aware of the walk-off mats that have been moved, so they are not as effective in stopping grit, or notice when it is time to clean or replace worn mats that are not catching the grit like they used to.

Over time, chairs, desks and other movable items in a school lose their rest and this can be one case of indents and scratch-es on flooring. Proper selection and care of furniture rest are important in the maintenance and appearance retention of all types of floor coverings. The following are some guidelines to consider:• The contact area should be large enough to distribute the

load evenly, without damaging the floor.• Thecontactareashouldbesmooth,flattoprovidefullcon-

tact, and free of small protrusions, irregularities, roughness,

depressions, mould lines, embedded dirt, grit, etc.• All edges shouldbe slightly rounded topreventdamage if

briefly turned on edge.• Shouldbemanufacturedfromnon-stainingmaterials.• Restsshouldbeproperlymaintained.Worn,damaged,and

missing furniture rests should be replaced.• Furniture, appliances, equipment, etc. should be properly

leveled so that all rests are fully and firmly on the floor at all times.It is important to routinely inspect furniture for rent-

ers and caster and replace them. Schools are always moving cabinets and other large heavy pieces of furniture around, so making sure that glides are working is important, as well as having extra stock of rest, casters and glides in the mainte-nance room.

If you make sure your walk-off mats are always in the right place and in good working order, and if your furniture rests are in good working order, you will give your floor added life. F

over time, chairs, desks and other movable items in a school lose their rest and this can be one case of indents and scratches on flooring.

proper selection and care of furniture rest are important in the maintenance and appearance retention of all types of floor coverings.

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FACILITY FOCUS • Fall 201422

Building safety togetherSafety is our focus. Operating as an in-dependent provincial body, Alberta El-evating Devices and Amusement Rides Safety Association (AEDARSA), is re-sponsible for making sure all elevating devices, amusement rides, and passen-ger ropeways in Alberta comply with provincial safety codes and regulations.

We work closely with Alberta Munici-pal Affairs and the Safety Codes Coun-cil of Alberta to administer and enforce public safety laws in these areas. Accord-ing to our mandate, we are tasked with:• Providinginformationandresources

to those responsible for installing and maintaining elevating devices, pas-senger ropeways, and amusement rides.

• Reviewing all plans to ensure theymeet safety requirements and code.

• Conducting inspections/granting ac-

ceptance of all newly installed or ren-ovated elevating devices, passenger ropeways, and amusement rides in Alberta.

• Investigating all accidents andmak-ing recommendations for change where required.

• Managing and maintaining perma-nent records related to all delegated functions and devices.

• Providing technical advice and edu-cation on applicable codes and stan-dards.

• Conductingallin-serviceinspectionsfor passenger ropeways and amuse-ment rides in Alberta.In addition, with offices in Edmonton

and Calgary, AEDARSA is the preferred supplier of in-service inspections of ex-isting elevating devices in the province of Alberta.

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AEDARSA is a non-profit organiza-tion established in 1996 under the Gov-ernment Organization Act of Alberta. We do not provide consulting, construc-tion, or maintenance services.

AEDARSA is involved with the Safe-T-Rider program through the Elevator Escalator Safety Foundation of Canada (EESFC). The Safe-T-Rider program is an educational initiative introduced to teach young children safety rules for rid-ing on escalators, elevators, and moving walks. The information provided in this program will help to reduce and hope-fully eliminate the risk of injury. The vast majority of incidents involving injury are due to human, not mechanical error. AEDARSA believes information and ed-ucation are essential in achieving safety and reducing the number of accidents and incidents currently recorded.

Working in conjunction with the ele-va tor industry, the provincial govern-ment, administrators and educators, AEDARSA ’s objectives to maintain the highest of safety standards can be accom-plished. In doing so, we can all proudly say we are building safety together. F

Our missionto exceed the safety expectations

of Albertans by providing high-quality, cost-effective, relevant and safety-focused service.

Our visionto provide quality, cost-effective

administration with safety standards uniformly applied.

Page 23: Facility Focus Fall 2014
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FACILITY FOCUS • Fall 201424

High-efficiency DHW in schoolsBy BraD poulSen

Boiler network with domestic opt-out piping.

When schools upgrade their heating systems, an update of the domestic hot water supply deserves to be considered as well, even when the larger load is where the big savings are.

There are two major strategies for improving DHW efficien-cy. One is to have the DHW served by the same high-efficiency heat source that provides the space heating, while the other is to install a stand-alone high-efficiency appliance. Further alterna-tives are available using heat pump and solar thermal systems; we’ll be using boilers as the basis of the following discussion.

Adding a DHW load to a network of boilers – that is oth-erwise dedicated to space heating – uses existing equipment effectively. The space-heating boiler network is typically sized for the coldest day of the year and often for a certain degree of redundancy. If it is acceptable to the engineer that the space-heating redundancy be shared with the water-heating redun-dancy, then the DHW load can usually be ‘inserted’ into the off-time of one or more of the networked boilers without the

system having to be significantly upsized.It is interesting to compare this scenario with a residential ap-

plication, where typically a single boiler is handling both space-heating and DHW. The residential control strategy of priority switching puts the space-heating on pause for the duration of the DHW call, allowing the boiler to dedicate its full energy to the quickest possible restoration of the tank temperature. The more mass there is in the space-heating emitters, the less likely it would be that anyone would even notice this pause. Under priority control, the boiler is properly sized not by combining the space-heating the DHW loads, but simply by the larger of the two. As houses tend to get smaller and building insulation methods improve, it has become more and more common that it is the DHW load that ultimately decides the boiler size.

Of course in a typical school, the space-heating loads dwarf the DHW consumption, but the main difference between the two setups is that a larger scale means longer recoveries, so in

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Alberta Educational Facilities Administrators’ Association 25

Better Boilers

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schools it is less acceptable to rely on priority switching. Fortu-nately with a multiple-boiler system, a select boiler or boilers can be piped to ‘opt out’ of the space-heating network to satisfy the DHW without interrupting the space heating at all. This can be easily achieved when the boiler software has the ability to turn off the pump contributing to the common heating load and turn on a pump for the heat exchanger that serves a DHW storage tank.

The second major strategy for high-efficiency DHW supply in schools is to use appliances dedicated to the purpose. On-demand water heaters achieve high efficiencies through their wide temperature rises. Whereas a boiler supplying 165° to an indirect tank in order to achieve 140°F domestic water is not the best way to achieve condensing operation, on-demand water heaters have entering water temperatures at for instance 45°F, and this does bring us reliably into fully condensing territory.

On-demand water heaters have the primary advantages of high efficiencies, a modest installation cost, and smaller boil-er-room footprints than storage tanks. Their disadvantages lie primarily that their output is limited to a particular flow rate: sizing the water heaters to matching peak demand might result in units that are needed only infrequently, as well as create a more a costly installation.

One solution to meeting peak demands with on-demand wa-ter heaters is to employ a storage tank or tanks. While this does

require a larger boiler room footprint, it dramatically extends the working range of DHW consumption without oversizing.

Whether using a boiler or an on-demand water heater, re-circulation lines will be installed where the wait time for hot water delivery must be kept at a minimum. It is critical that the associated recirculation pumps not be oversized. Oversized pumps are not only wasteful, but also risk premature wear on pipes from excessive water velocity; often all is necessary for effective recirculation of hot water to the furthest fixture is a well-insulated three-quarter-inch line with very low gpm. tim-ers on these pumps are essential for those majority of schools without DHW use during long stretches of the day. A written record of the desired schedule is a good detail to have posted near the pump, and maintenance includes confirming that the current time setting remains correct.

In weighing the advantages of a boiler network versus an on-demand water heater, one of the most significant consider-ations is meeting the stricter safety standards of the school set-ting. In the case of DHW, protection against the possibility of backflow of the heating fluid into potable drinking water must be reduced to an impossibility. to this end, double-walled heat exchangers with leak detection will be required with the DHW storage tanks. The safety insurance of double-wall heat ex-changers carries a price not only literally, but also in efficiency. These have to be weighed against the advantages of employing a single heat source for both loads. FAn efficient, modern combi boiler.

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FACILITY FOCUS • Fall 201426

Reliable Controls leverages BACnet® capabilities in three-in-one product

Reducing inter-departmental inefficien-cies while increasing functionality, the BACnet® B-OWS-listed MACH-ProWeb controller provides the capability to quickly and easily publish building au-tomation system information to the web with minimal demands on IT.

As Internet technology and building management systems rapidly advance, facility managers are often caught in

the middle between satisfying facil-ity management needs and adhering to It security requirements; bridging the gap between two inter-departmental worlds with very different priorities. Reliable Controls provides a practical and professional device to resolve this cross-functional concern: the Reliable Controls® MACH-ProWebtM (MPW) controller.

The device features a unique com-bination of elements, amalgamating a BtL-listed BACnet® Building Con-troller, a BtL-listed BACnet Operator Workstation (B-OWS), and a powerful web server into a single package with the installed footprint of a typical building controller. The first three-in-one device of its kind, the MPW provides the capa-bility to quickly and easily publish build-

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Alberta Educational Facilities Administrators’ Association 27

ing system information to the web, with minimal demands on It. This product combines the field controller, configu-rable web server, and browser-driven workstation all into a single device that’s simple to use, flexible to engineer, and economical to acquire.

The MACH-ProWeb allows the facil-ity management team to program and implement building controls processes just as it normally would, but instead of having to purchase server equipment and potentially infringe on sensitive It procedures, the controller features its own built-in server that resides right in-side the controller, and does not require a separate rack-mounted server in the It department’s domain. This efficient set-up allows each department to inde-pendently manage their own equipment

and procedures. The only requirement from It is a local IP address on a sub-net unique to the building management department. The controller ships with default port settings typical for the in-dustry and often doesn’t need additional configuration; the configuration of the controller makes set-up a very intuitive process.

Providing the basis from which to grow the smart building industry while continuing to use proprietary hardware, BACnet allows for interoperability be-tween different manufacturers’ products as it enables networks from multiple vendors to be bound together. BACnet defines a basic set of rules for how and what building controllers can communi-cate, which promotes the protection of investments in building controls. In the past, building owners were forced to re-place entire systems when only a simple expansion was required, and were often unable to obtain competitive quotes for new projects because they were locked into a manufacturer’s proprietary sys-tem.

By leveraging the BACnet protocol and by allowing It and facilities man-agement to keep equipment and pro-cedures separate, the Reliable Controls MACH-ProWeb provides the ideal, flexible and synergistic solution, per-fect for streamlining web access to the building automation system. Your build-ing automation system will begin paying dividends immediately through energy

savings, and improved comfort. Future-proof your facility by insisting on native BACnet Controller products.

About Reliable ControlsSince 1986 Reliable Controls has been

designing and manufacturing building controls and specializes in Internet-connected green-building solutions. The company’s design philosophy delivers building control that is simple, flexible, and competitively priced. All designs utilize the ASHRAE-standard BACnet protocol and ship with a five-year warranty.

Would you like to know more?To learn more about Reliable

Controls and the nationwide network of Reliable Controls authorized dealers ready to serve you, please visit www.reliablecontrols.com. F

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Page 28: Facility Focus Fall 2014

FACILITY FOCUS • Fall 201428

Focusing on clients’ needsLongbow Sales Inc. was established in 2005. The company has over 40 years experience in spectator seating and fold-ing partitions. Longbow represents ar-chitectural specialty companies such as Skyfold, Porter Athletic, Hussey Seating, Kwik-Wall, E&D Specialty Stands, and more. Operating in the province of Al-berta, as well as the northwest territo-ries, Longbow provides a wide range of products to accommodate their custom-ers’ needs. With an extensive knowledge of the products that they represent, it is their mission to provide customers with competitive pricing and the highest level of quality product, installation and ser-vices.

Athletic equipment, from concept to

completion, Longbow can provide design consulting, superior products, installa-tion and services for all products in any size of athletic facility. If you are looking to modernize, maintain, or add to an ex-isting facility, they can assist you. Their manufacturers, Porter and Gill Athletic offer a complete range of athletic equip-ment for both indoor and outdoor use.

Whether your needs are for indoor or outdoor, for sporting events to per-forming arts, they have the seating solu-tion for you. Longbow Sales represents a vast line of high-quality seating products with solutions such as fixed seating and bleachers from Hussey Seating and alu-minum grandstand and bleachers from E&D Specialty Stands. Utilizing these

products, they can achieve their goal to satisfy your seating needs.

Do you need to divide or expand a room with the ability to increase space functionality? Longbow can offer you a variety of folding partition solutions tailored to your individual needs. Or are you looking to offer security without compromising visual appeal? Their line of grilles and shutters offer many aes-thetically pleasing solutions to protect your business.

Longbow carries a variety of fur-nishings that can help put the finishing touches on your facility. If you are in the market for flagpoles, bike racks and benches, Longbow has many options to meet your needs. F

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Alberta Educational Facilities Administrators’ Association 29

Tangible value simplified and refreshed

Energy performance contracting

By Wayne c. cole

Energy Performance Contract-ing (EPC) is a well-established and proven approach which helps to minimize traditional

barriers that can prevent organizations from pursuing deep energy savings op-portunities.1 The EPC approach now ac-counts for billions of dollars in building renewal projects across North America.

The core business value of EPC is built on a specialized form of building system engineering which integrates all the relevant factors needed to under-stand – and manage – building systems’ energy consumption: how a building and its occupants consume electricity, gas, oil, diesel, steam, and water. EPC is built on a foundation of energy end-

use knowledge, which allows EPC firms to provide a range of services, includ-ing (a) optimizing energy consumption designs, (b) selecting and installing the most suitable equipment and operat-ing systems needed to minimize energy waste, (c) commissioning and retrocom-missioning building systems for optimal operation, (d) monitoring and managing energy consumption, and (e) educating building occupants about sustainability best practices.

This distinctive energy engineering analysis takes into consideration all the unique characteristics of each facility. This information, combined with years of proven experience, is then combined to develop energy engineering out-

comes. These provide a reliable basis for predicting how and where a facility con-sumes or wastes valuable energy dollars.

How does energy performance contracting work?

The data developed from the energy engineering analysis provides a reliable baseline (units of energy consumed) against which future building system en-ergy consumption can be formally mon-itored and tracked. This baseline pro-vides the starting point for determining the financial feasibility of upgrading the existing building systems, in an effort to eliminate energy waste. By determining the various building renewal upgrades that meet the owner’s financial feasibility requirements (typically a payback term), an energy service company (ESCO) then typically guarantees the energy savings so that the building owner can use this savings stream to finance and secure an EPC project. When provided by an experienced ESCO, this guarantee is intended to transfer all project perfor-mance liability to the ESCO, and away from the owner. If the savings aren’t guaranteed, it’s not an EPC project!

As this process has evolved to meet

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FACILITY FOCUS • Fall 201430

the expanding needs of the market, lead-ing ESCOs now provide a robust set of energy management tools which offer owners the chance to track energy per-formance, conduct continuous diagnos-tic analysis on equipment performance, manage predictive and preventive main-tenance, and produce monthly reports to support energy management deci-sions and expand awareness.

But, does it really pay for itself?

The Conference Board of Canada re-cently completed a study2 showing that $350 billion needs to be invested in the electricity sector alone over the next 17 years – that’s over $20 billion per year, all of which will need to be repaid by rate payers. However, a kWh of electricity preserved from waste is indistinguish-able from a new kWh generated, in that both are equally capable of meeting new demand. In fact, SaskPower reports that 38.2 per cent of all its power outages are related to its aging infrastructure.

Over the typical 50-year design-life of an average building, every dollar in annual energy waste that exists in the initial building system costs the owner $98. In more practical terms, this means that a typical 65,000-square-foot of-fice, or school building, in Canada will cost the owner $3.4 million in energy waste alone over the first 50 years! This troubling level of unnecessary financial waste is caused primarily by the lowest-first-cost mentality that has dominated the construction industry since the post-war era, along with a puzzling and indefensible resistance to investing in long-term paybacks.

In fact, Canada has one of the poor-est environmental records of all indus-trialized countries. When scored on 25 of the top environmental indicators, Canada is ranked a dismal 28th among 29 OECD nations. Weak energy efficiency undermines a country’s international competitiveness, because using more

energy generally means goods and ser-vices are produced at a higher cost.3

But beyond the obvious economic and environmental penalties associated with energy waste, there is also a significant loss in financial value to building own-ers, and to the Canadian economy. For example, a 65,000-square-foot building that currently spends $1.55 per square foot on annual energy costs will most likely have to pay at least $2.8 million to its utility providers over the next 20 years. A 33 per cent improvement in the energy efficiency of this same building today would support a capital invest-ment of $510,000 paid off entirely from energy savings over the next 20 years. It all boils down to one of two simple choices:1. Continue to pay this money to the

utility providers for energy waste, or;2. Invest the capital needed to redirect

this money into building improve-ments, which eliminate energy waste, and thereby extend the useful life of the building components.

So why don’t I see more EPC projects happening?

In the ‘70s and ‘80s, which saw the birth of the ESCO industry, projects were primarily defined by the ESCO’s mandate of reducing energy costs (typi-cally the low-hanging fruit), and there-fore take pressure off escalating operat-ing budgets. In the late ‘90s, the ESCO business model moved more toward us-ing longer payback energy savings as a means of creating capital, to help reduce the growing backlog in building mainte-nance and repair. today, it is about deal-ing with the combination of constantly

escalating energy costs,4 enormous backlogs,5 and lack of capital. However, most organizations are facing large bar-riers in their effort to take appropriate action to deal with these issues through EPC, including:1. The mistaken belief that EPC is too

expensive, too complicated, or too hard to manage

2. A lack of capital, or access to bor-rowed capital, as a result of govern-ments’ fiscal restraints

3. Limited access to the qualified techni-cal skills needed to design and execute projects at low risk; this means lim-ited staff time to plan, tender, select vendors, and manage projects

4. The deteriorating condition of facili-ties, and the significant backlogs that reflect the seriousness of this prob-lem have grown so large that political solutions to the issue are becoming more complex and discouraging

5. Public sector borrowing now all rolls-up to the top, and the debt-to-GDP6

ratio is managed carefully by govern-ments, which in some cases, avoid debt even as public infrastructure rapidly crumbles without disclosure7

6. Federal and Provincial stewards at the ministry level are imposing more cen-tralized control over access to capi-tal and the ability to borrow – even against guaranteed savings – while offering no robust alternative

7. In some cases, stewards of public sec-tor assets lack the decisiveness, or political will, to champion the EPC solutionHowever, leading organizations have

found practical ways to plough through

Either Pay Now, or Pay Later

Aging infrastructure places a clear burden on energy consumers: either eliminate energy waste now, or pay a much higher cost for energy later.

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Alberta Educational Facilities Administrators’ Association 31

these barriers, they now realize the sig-nificant financial benefits of EPC, and are actively embracing it. Overcoming barriers takes planning and determi-nation, especially in the public sector, where the value opportunity is often the highest.

I already work with some very qualified people who can help me cut energy costs; so what added value can I get from an ESCO?

typically, facility departments devel-op good working relationships over time with local engineering and construction vendors they have come to trust. In many cases, these firms have a comprehensive knowledge of the mechanical-electrical systems, they understand how building owners prefer to have their buildings op-erate, and are able to provide reliable lo-cal support. Many facility departments are blessed with highly qualified and experienced staff as well. The engineer-ing and project management processes required to select, install, and commis-sion building system components are therefore an existing function, and these firms can develop basic energy savings projections, while internal staff manage the project.

The compelling dividing-line at which energy engineering analysis needs to shift to EPC firms occurs when the own-er requires a guarantee on the project’s performance. That is, when the owner wishes or needs to shift project perfor-mance risk to a qualified third party. This is not an area where local firms are com-

fortable accepting liability. In part, this is because the type of comprehensive en-ergy engineering which results in a guar-anteed savings is a specialized field, and the accountability for risk goes beyond the scope and financial capacity of most local firms.

While most firms are prepared to speak confidently about the projected outcomes of their work, unlike expe-rienced ESCOs, they are not prepared to accept the financial liability for their projections. The simple fact is, the ca-pability and confidence for accepting savings performance risk is a reflection of energy engineering skills and project implementation experience. Seasoned ESCO firms generally have both, and they rely on this interactive combination to manage project implementation risk, including meeting savings projection obligations. It is a question of how to se-cure the best financial value.

It is also worth mentioning that ex-perienced ESCOs will likely have an in-terest in sub-contracting work to local engineering firms and contractors who are already familiar with the owner’s facilities, because this adds more confi-dence to the analysis and smoothes out the design and installation processes; all

the while realizing good value from local relationships.

How much should an energy savings guarantee cost?

The manner in which an ESCO man-ages the financial risk associated with being accountable for energy savings guarantee says a lot about its engineer-ing culture and business philosophy. An experienced and confident ESCO should be able to incorporate this risk into a carefully planned and rigorous engineering analysis, design process, sub-contracting framework, quality as-surance process, commissioning disci-pline, and comprehensive project man-agement strategy.

Other ESCOs prefer to charge the owner a ‘risk premium’ to help compen-sate for any errors that might be made in these activities. The typical premium for this risk is between three to five per cent of the project costs, and must be paid as an extra cost to the project8, even when the savings targets are met.

There are two common business models used by ESCOs. In the first model, the ESCO will minimize the depth of engineering in favour of being able to charge a risk premium; typically between one to five per cent of the total project value.

In the second model, the ESCOs will increase the depth of engineering ap-plied to the design, project implementa-tion, and quality assurance to the level required to eliminate the need to charge a risk premium. These ESCOs also have a well- disciplined corporate governance process that engages senior executives in a careful review of the facility improve-

Do I really need an ESCO?

So why not just use the engineering and contracting resources I already know and trust,

and rely their savings projections?

It’s all about risk and value.

Pay for Risk, or Pay for Engineering?

The dynamic connection between these two factors means that as engineering and governance

goes up, risk goes down.

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FACILITY FOCUS • Fall 201432

ment measures selected, savings guaran-tee calculations, implementation plans, and quality assurance.

Therefore the owner can either (a) se-lect an ESCO that provides a more rigor-ous engineering and project implemen-tation path, or (b) pay a risk premium to protect the ESCO from any errors made in meeting the energy savings guarantee.

In both cases, the ESCO will imple-ment a monitoring and verification pro-cess (M&V) that will set a calculated baseline for the pre-project consump-tion, in terms or units of energy being used. This M&V process (IPMVP of ASHRAE)9 will then track post-project consumption to monitor the change in units of energy used, and track this new consumption pattern for a specified pe-riod to verify that the projected savings, in units of energy, were actually realized.

It is not uncommon for an ESCO with deeper energy management experi-ence to evolve this M&V process into a comprehensive building energy manage-ment process to help owners to secure ongoing savings. This process includes fundamental tools such as continuous diagnostics, carbon and energy report-ing, energy performance monitoring, and custom analyzer. Such tools help ob-tain, manage and use data to make bet-ter, faster decisions, and they improve operational efficiency and sustainability. This approach helps to ensure that en-

ergy savings don’t slip away over time.

What is the optimum payback/financing term for an EPC?

Utility expenses are already a ‘fixed cost’ that must be included in the annual operating budget, so investing capital that has been reclaimed from guaran-teed savings simply transfers that ‘fixed cost’ to a ‘loan payment’. This has a net-zero cost to the owner’s operating bud-get, even if the capital is borrowed. It is a practical way of diverting utility dollars into badly- needed facility renewal capi-tal.

Of course, if you are borrowing capi-tal, the actual savings payback term will be shorter than the financing term to al-low for the cost of the borrowed capital. Based on the current borrowing costs, a simple rule-of-thumb for calculating the payback period is take 80 per cent of the financing term. This means that the typi-cal financing terms and payback terms would be (a) 10-year financing and eight-year payback, (b) 15-year financ-ing and 12-year payback, and (c) 20-year financing and 16-year payback. The key financial determinant for real value is all about how much of the diverted energy savings can be converted into facility re-newal capital – the savings dollar reten-tion rate.

The choice of financing/payback term is naturally driven by several variables:

(1) energy savings payback period, (2) borrowing term, (3) projected annual energy cost escalation rate, (4) interest rate, (5) discount rate on future cash flow, and (6) the return on investment (ROI). But, if you wish to determine the term that will produce the highest net financial value to your organization, you will need to look beyond ROI and dig deeper into a full cost-value analysis.

The table10 below shows the results of a cost-value analysis done for a school division with a million square feet of fa-cility space, and compares the financial cost-values for each payback option at the end of a comparable 20 year period.

Securing tangible financial value from an EPC is not about getting the lowest cost on engineering and project man-agement services or equipment and sub-contracts; it is about realizing the high-est level of energy savings in the shortest period of time. This has proven true in project after project, where the lowest first cost has been consistently ‘trumped’ by higher financial value.

The importance of these two key fac-tors makes it difficult, if not impossible, for most facility departments to under-take significant energy savings projects at a lower risk, and at a higher net finan-cial value than the EPC option.

Given that EPC value is about lower-ing energy costs and converting these operating dollars into badly needed fa-

Page 33: Facility Focus Fall 2014

Alberta Educational Facilities Administrators’ Association 33

cility renewal capital, highest financial value must always be the most impor-tant measure of success.

In the Canadian K-12 market for ex-ample, the first reality is that 80 per cent of all schools that students will occupy 20 years from now already exist. The second reality is that interest rates are now at their lowest rate in over 50 years, energy costs are now increasing at the non-stop average rate of 2.5 per cent per year, and facility renewal backlogs are growing at alarming rates. It follows then, that undertaking facility renewal projects driven by energy efficiency savings should be based on a compre-hensive 20-year payback – no matter how they are financed. This holds true throughout the public sector.

How do I develop the best EPC project, and pick the best vendor?

EPC projects typically use some form of public tendering to meet purchasing requirements in the public sector. Until recently, this process has required the owner to determine what buildings in-clude, what scope of work will be con-sidered, what form of scoring protocol to use, and then to organize an internal committee to help select the winning ESCO. Given the level of work involved in this process, the limited flexibility it offers, and the high cost of making ad-justments to the scope during construc-tion, a more flexible EPC model11 has re-cently been introduced into the market.

This new EPC model is based on a clear set of objectives the owner wishes

to meet; it requests bidders to demon-strate the qualifications of their orga-nization in areas such as history, finan-cial stability, engineering skills, project management skills, approach to perfor-mance guarantees, and a basic pricing structure. to make the pricing structure reliable and predictive in the absence of well-defined scope, parametric estimat-ing12 is used, along with a firm quote on per diem rates, published price list dis-count rates, external labour and material mark-up rates, and – most importantly – unit costs. Bidders are also asked to apply this costing framework to a sample

set of projects to demonstrate a practical application.

After selection, the actual scope of work is then defined by the owner in col-laboration with the selected ESCO.

This new approach provides better business value for the owner because it offers the flexibility needed to adjust the project focus and scope, as required, to meet changes in standards, energy costs, access to funding, borrowing rates, and building utilization forecasts. It also stimulates a collaborative relationship with the selected ESCO, allowing both players to respond better to changing circumstances and needs. This approach substantially reduces the risk, tendering, and speculative costs for both the owner and the ESCO, speeds up the implemen-tation process, avoids wasted engineer-ing assessment, and allows project im-plementation to be paced at a digestible rate for all participants.

When the Calgary Board of Education

Optimizing Collaborative EPC Value

With this new model, picking the ‘right’ ESCO becomes easier, less costly, and connects better

to providing a continuous stream of tangible business values for the owner.

Inspiring Students Helping School Districts Prosper.Students in well-maintained schools score up to 10% higher on standardized tests.

Johnson Controls helps school districts create and maintain quality learning environments, and lower energy and operating costs - so money and focus can be put back into the things that matter: A quality environment. A strong curriculum. And student achievement.

Building equipment, controls, security, integration, automation, management, and financing for better building efficiency.

www.johnsoncontrols.com/k12

Page 34: Facility Focus Fall 2014

FACILITY FOCUS • Fall 201434

Index to Advertisersacoustic solutions ltd. . . . . . . . . . . . . . . 8

aedarsa. . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

allmar international . . . . . . . . . . . . . . . . 12

armstrong World industries inc. . . . . 21

associated communications . . . . . obc

b.g.e. service & supply ltd. . . . . . . . . . 27

breathe easy Duct cleaning . . . . . . . . 18

buckwold Western . . . . . . . . . . . . . . . . . 28

caster town. . . . . . . . . . . . . . . . . . . . . . . . 17

centaur Products inc. . . . . . . . . . . . . . . 11

crown sports Floors . . . . . . . . . . . . . . . . 15

erv Parent . . . . . . . . . . . . . . . . . . . . . . . . . . 6

ibc technologies . . . . . . . . . . . . . . . . . 3, 25

Johnson controls l.P. . . . . . . . . . . . . . . . 33

longbow sales. . . . . . . . . . . . . . . . . . . . . 20

Quality stage Drapery . . . . . . . . . . . . . . 13

reliable controls corporation . . . . . ibc

royal stewart ltd. . . . . . . . . . . . . . . . . . . 22

schoolhouse Products . . . . . . . . . . . . . . 9

shanahan’s . . . . . . . . . . . . . . . . . . . . . . . . 14

the Workun garrick Partnership . . . . 19

We greer ltd. . . . . . . . . . . . . . . . . . . . . . . 14

Wesclean . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Western gym &

recreational supplies . . . . . . . . . . . . . . 11

Winmar . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

applied this new model to a 102-school project in 2014, they included a 10-year service requirement on all project-installed components for each school, along with a 10-year monthly energy management reporting protocol for each school. They also applied a rolling-forward energy savings guarantee to en-sure that all project- related energy sav-ings were captured, and contributed to-ward paying down their 20-year capital borrowing. This large project is intended to be paid for entirely from energy sav-ings over a 20-year financing period.

What is the best way to manage an EPC project?

Projects conceived and managed around the notion of a ‘partnership of purpose’ have a history of producing the best long- term value, the highest cus-tomer satisfaction rates, and the type of flexible scope definition that is need-ed to meet the process of continuous change common in every organization. Well-defined accountability is essential for success in any venture, and is an im-portant element in an EPC project. As the industry and the market move away from the old model where the ESCO

was perceived to be “taking the keys and driving the project to completion”, the emerging model where active collabora-tion is the order of the day works better because it leaves control with the owner.

Using this new concept to design, se-lect, and implement an energy efficiency program is the best way to manage an EPC project because it focuses on as-signing clear accountability and secur-ing the highest values from the most im-portant key performance indicators – all while allowing for a constantly changing environment.

Wayne C. Cole is the senior business development executive, public sector for Johnson Controls Canada. He can be reached at [email protected].

Resources:1 See SaskPower description, 2014.2 Canadian Electricity Association,

Generation West Conference, Decem-ber, 2013.

3 Canada vs. the OECD: An environ-mental Comparison, 2001.

4 Energy costs are expected to escalate at an year-over-year rate of 2.5 per cent, Energy Shop, 2011.

5 In the 2005 article, “Infrastructure

Renewal & Financing”, published by The Canadian Institute, it estimated that the capital investment needed in public infrastructure was $125 billion and growing.

6 Generally, government debt as a per cent of GDP is used by investors to measure a country ability to make fu-ture payments on its debt, thus affect-ing the country borrowing costs and government bond yields.

7 In 2013, the Public Sector Account-ing Board published SORP-3, which recommends that governments and government organizations prepare and present a report on the physical

condition of their tangible capital as-sets, including leased tangible capital assets.

8 EPC toolkit for higher education, 2009.

9 International Performance Measure-ment and Verification Protocol (IPM-VP) or the American Society of Heat-ing, Refrigerating, & Air-Conditioning Engineers (ASHRAE).

10 Johnson Controls Canada, Solutions Group, financial modelling process.

11 See the Calgary Board of Education RFP 2014PRO0474, issued June, 2014.

12 www.galorath.com/images/uploads/ISPA_PEH_4th_ed_Final.pdf

Page 35: Facility Focus Fall 2014

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Page 36: Facility Focus Fall 2014

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