Facilities Manager Peer Exchange Meeting

January 18, 2013

Participating Hospitals

• Mt. Sinai Hospital & Schwab Rehabilitation Institute
• Northwestern Memorial Hospital
• Presence Health
• Rush University Medical Center
• Saint Bernard Hospital
• Shriners Hospital for Children - Chicago
• University of Chicago Medical Center

NOTE: If you would like to learn more about any of the following peer exchange discussion topics, please contact the CGHI team and we will connect you with the appropriate hospital(s).

Follow-Ups From Prior Meetings

• Potential topics for future meetings include The Joint Commission, Water Efficiency, and having ComEd speak about utility rebates for other measures
• Hospitals are interested in highlighting CGHI as a hospital sector leader
• Hospitals are interested in water benchmarking as a funding opportunity
• Hospitals are interested in hospital sub-sector groups
• Hospitals are interested in pursuing energy purchase aggregation
• Hospitals are interested in setting energy reduction goals
• Hospitals to decide whether to provide CGHI team with access to or copy of utility rebate information
• Water bill exemption contact information (you will need your water account number and/or the amount of your last payment): Brian, Water Billing and Collections, 333 S. State Street, Ste. 330, Chicago, IL 60604, Hours: M-F 8:30am-4:30pm, Phone: 312.744.4420, Fax: 312.742.9153, Email: waterbill@cityofchicago.org
• Notes from the last CGHI Peer Exchange Meeting.
• The next CGHI Peer Exchange Meeting will be February 15th.

Discussion

The discussion reviewed the following points, which are detailed in this presentation.

• 2012 Hospital Success
• 2013 Objectives
• Calculating Return on Investment

2012 Hospital Success

• 7 hospitals signed CGHI Pledge (total is now at 22)
• 6 Facility Manager Peer Exchange meetings attended
• Collaboration among hospitals taking place
• 15 Portfolio Manager accounts managed/configured; 4 in progress
• 9 ComEd Facility/System Assessments conducted and/or underway
• 1 district energy system metered
• 1 retro-commissioning project underway
• 1 waste audit conducted
• 10 steam trap audits conducted
• 1 energy reduction goal set (total is now at 2)
• 100s of T12 to T8 Lighting and Exit Sign retrofits
• Induction lighting retrofit in parking garage
• LED retrofit of hospital marquee sign
• 10 chillers being replaced
• 10 burners in boilers being replaced
• 2 Inteli-Hood kitchen demand ventilation control retrofits
• Installation of condensate capture and reuse system
• Numerous steam traps replaced
• Installation of system to discharge capture roof rain into Lake Michigan
• Numerous Peoples Gas double rebates leveraged
• CGHI hospitals have achieved a 4% energy reduction across the Chicago hospital sector, with specifics located here.

2013 Objectives

• Recognize achievements: Highlight Chicago Healthcare sector as national leader and have a more complete picture of sector's progress
• Shriners has internal recognition of commitment and goals
• Rush used to view energy efficiency only as budget savings, but is becoming more focused on sustainability within its structure
• Peer exchanges/collaboration: Topics for the year? Guest speakers?
• There is interest in The Joint Commission as a future meeting topic
• There is interest in Water as a future meeting topic (California used luminaries that reduce water flow, but mitigate concern over Legionnaire Disease)
• EEPS contributions/utility rebates: Promote changes and support applications to fully recoup contributions
• Identifying funding/financing opportunities: National and Local Community Foundation Support
• Portfolio Manager aggregation: Contributes to recognizing achievements and set target date for complete configuration
• Engage additional hospitals: Hospital outreach
• Is MCHC engaged in sustainability?
• Executive level steering committee: Raise the awareness and buy-in withing hospitals
• Sub groups
• Energy disclosure ordinance: Support and get out in front of?
• The Mayor's energy disclosure ordinance only requires the disclosure of energy consumption information, similar to what New York has
• Set energy reduction goal: Contributing to recognizing achievements
• Utility rebates for other measures: Ultra low temperature freezers, demand ventilation that senses air quality, and IT equipment
• Energy purchasing aggregation: Increase renewable energy percentage
• Potential funding support: Meter requirement study, strategic energy management plans, benchmarking water use

Calculating Return on Investment

Click here for a Return on Investment Calculator and you can click here to view Chicago Hospital Return on Investment Calculations.

• Simple payback
• New present value
• Internal rate of return
• Return on investment
• Cost of delay
• Net patient revenue equivalent
• Sustainable return on investment

Dan Doyle, Life Cycle Cost Analysis

Dan Doyle, the President of Grumman/Butkis Associates, gave a detailed presentation on life cycle cost analysis.

LCC Analysis Should Include the Following Metrics

• Construction cost
• Design fees
• Project/Construction management fees
• Maintence and operating costs
• Reinvestment costs
• Utility/Energy costs
• Expected service life of various types of equipment
• Timeframe for analysis
• Escalation factors
• Financial perspective

Overview of Process

• Create a baseline understanding of system operations
• Evaluate existing building operations and energy efficiency opportunities/applications
• Develop concepts of options for improved energy efficiency and sustainability
• Develop construction cost estimates, energy and operating costs
• Run life cycle cost comparison

Peoples Gas Double Rebates

We recapped Jim Hauser's presentation at last month's peer exchange meeting. Jim is with Peoples Gas/Franklin Energy shared with us the double rebates Peoples Gas has available for a limited time.

Below are a few highlights of the double rebates. For more details view Jim's presentation.

• Prescriptive rebates are doubled through April 30 2013.
• $120 per steam trap or $300-$400 per high pressure steam trap.
• With $0.80 / MBH saved, boiler tune-ups in some cases can be fully paid for with rebates.
• Demand Control Ventilation upgrades receives an extra $0.50/therm.
• $8 / ft for pipe insulation.
• $80 for programmable thermostats.

Rebate examples:

• Shriners Hospital to receive ~$17K in Peoples Gas rebates for a Linkage-less burner controls on 4 boilers. Rebate is 44% of project cost. Payback is 1.3 years.
• Mt. Sinai Intelli-hood demand control ventilation retrofit has an estimated $14,816 rebate, a 1.6 year payback, and energy savings of 7,507 therms/year.
• Resurrection retirement facility had Peoples Gas install low flow showerheads, CFLs, and faucet aerators in 670 units. Savings are $29,851 in natural gas and water saving and 18,090 therms/year. Because of the rebates, the net result was no cost for Resurrection.
• Advocate is pursuing a $1.9 million burner project which will result in a $900,000 rebate with a ROI of less than one year.

For immediate assistance taking advantage of the rebates contact Jim Hauser or Paige Knutsen with Peoples Gas/Franklin Energy. Jim and team will not only help identify and assess the energy saving opportunities but they can also complete the Peoples Gas rebate application. Contact Jim at jhauser@franklinenergy.com; O: 312.878.0038; C: 815.614.0555 or Paige Knutsen at pknutsen@franklinenergy.com; O: 312.878.0038; C: 847.942.0016

Announcements

• IFF - Energy loans at 3.5%, with project management at no additional cost. Click here for more information.
• Building Operator Certification training - $500 rebate available.
• Portfolio Manager: June 2013 is the launch of an upgrade. Key improvements include: Expedited Energy Star certification; Increased charts, graphs, data spreadsheets, and reports; Expanded water meter tracking; Sustainability checklist; and Easier account sharing.
• Water bill exemption contact information (you will need your water account number and/or the amount of your last payment): Brian, Water Billing and Collections, 333 S. State Street, Ste. 330, Chicago, IL 60604, Hours: M-F 8:30am-4:30pm, Phone: 312.744.4420, Fax: 312.742.9153, Email: waterbill@cityofchicago.org
• Energy Efficiency and Clean Energy highlighted in Mayor Emanuel's Sustainable Chicago 2015 Action Agenda.
• Notes from the last CGHI Peer Exchange Meeting.
• The next CGHI Peer Exchange Meeting will be February 15th.