Workshop O Hylant Corporate Office Comprehensive Facility & - PDF document

Workshop O Hylant Corporate Office Comprehensive Facility & Energy Management in a Large Commer- cial Office to Improve Tenant Satisfaction, Drive Down Operating Costs & Mitigate Future Risks 3 p.m. to 4 p.m.

Biographical Information Glenn Powers, Operations Manager GEM Energy 6842 Commodore Drive, Walbridge, OH 43465 419-720-2651 Glenn.Powers@rlgbuilds.com Glenn Powers is a graduate of Ferris State University’s B.A.S. in HVAC/R Engineering Technology, as well as a Certified Energy Manager (CEM) and Certified Measurement & Verification Professional (CMVP) through the Association of Energy Engineers. He has almost ten years of experience in Energy Management and in his role as Operations Manager for GEM Energy, Glenn is responsible for overseeing the engineering team that performs such functions as energy auditing, application engineering, economic analysis, commissioning, and measurement and verification.

September 25, 2018 Northern OH/Western PA Energy Management Conference Hylant Corporate Office – Best Practices for Comprehensive Facility and Energy Management

Speaker Introductions Glenn Powers Operations Manager, GEM Energy

About Hylant About Hylant Hylant is one of the country’s largest privately held insurance brokerages in the United States. Founded in 1935 and headquartered in Toledo, Ohio, we offer complete risk management services, employee benefits brokerage and consultation, loss control, healthcare management and insurance solutions for businesses and individuals locally, nationally and internationally.

About Hylant About Hylant Our Brand Values: Through HARD WORK, HONESTY, RESPECT, EMPATHY, and a focus on FAMILY, we have built a culture that allows people to not only work, but thrive. And an environment where ideas can bloom and success can flourish.

About The Building About Hylant Built in 1959 for Libbey Owens Ford (LOF) world  headquarters 235,080 gross ft 2  Includes basement, garage, loading dock & boiler house  15 floors with 12 leasable  Each floor is 14,400 ft 2 gross, approx. 13,637 ft 2 leasable  163,644 ft 2 Net leasable  Other 3 floors are ground floor/lobby/café, mechanical  floor (14th floor) and mezzanine used as walking track (15th floor) Hylant purchased building in 2003  Hylant occupies 6 of the 12 floors  Lease the other 6 floors to 5 other tenants  The largest of the 5 remaining tenants is LOF, now  Pilkington or Nippon Sheet Glass 3 of the 5 are new tenants in last 12 months  Currently 89% leased 

About The Building About Hylant  State of the art building – then and now:  All glass exterior, made by LOF  Thermopane glass, 1,184 sheets of glass, 6’ x 12’  Redundant systems for heating, cooling, electric supply (2 power feeds)  Walker floor duct system  Terrazzo tile on main floor  Moveable/demountable wall systems – Hauserman that started in 1913 in Solon, OH, now part of Steelcase

Making a Change About Hylant  Building ownership from 2003 until 2017  Downtown Toledo resurgence  Need for change and re-investment  First step was professional management and attention to building  Selection process  Results and response to date

About GEM Energy Member of Rudolph Libbe Group  Construction Services  Facility Management  HVAC Service  Full-service Energy Management

The Approach  Survey the building  Establish baseline & benchmarking  Build a team  Set goals  Prioritize  Tactics employed

Building Survey Findings  Unskilled maintenance  Sub-optimal indoor environmental quality  Complex and/or obsolete systems  Aging equipment  Deferred maintenance

Building Systems  Natural gas steam boiler plant  Lighting mostly fluorescent  Centrifugal chiller plant Data Centers with water-cooled CRAC  units  Perimeter heating & cooling  Back-up generator for select loads  Two pipe induction units  Core heating and cooling  Dual-duct, constant volume  Hybrid BAS  30,000 gallon domestic water tank  Domestic hot water  Steam-based  Electric unit for summer operation

Baseline and Benchmarking  Total operating expense baseline  Average FY ’15, ‘16, ’17  Energy Star 1  Cost 1  Electricity  Natural Gas  Water & Sewer  Usage 1  Electricity  Natural Gas  Water & Sewer 1. Baseline period Mar. 1, 2016 – Feb. 28, 2017, or closest utility bill date after Feb. 28, 2017.

Baseline – Operating Expenses

Baseline and Benchmark – Energy Star

Baseline – Utility Summary Annual Usage Average Utility Annual Cost Unit Cost Qty Units Electric $ 412,267 4,626,608 kWh $ 0.089 Gas $ 91,953 155,716 Therms $ 0.591 Water $ 19,111 6,861 Kgal $ 2.785 Sewer $ 28,786 4,526 Kgal $ 6.360 Total $ 552,116 Note: Values from baseline period of Mar 1, 2016 - Feb 28, 2017

Baseline – Electricity  Electricity Baseline  Sub-transmission  4,626,608 kWh  61% Average Load Factor  Fixed price contract, including Capacity  $.067/kWh + local distribution costs

Baseline - Natural Gas  155,716 Therms  Almost all heating, some DHW  Fixed price contract (basis & commodity)  $.4756/Therm + local distribution costs

Baseline – Water & Sewer  6,861 kgal water  $2.785/kgal  4,526 kgal sewer  $6.360/kgal

Goals and Prioritization  Smooth transition  Safety & building security  Tenant satisfaction  Building comfort  Attract building partner and tenants  Modernize building  Improved reliability/resiliency  Reduce operating expenses  Improve ENERGY STAR score

Building the Team Hylant Operations Team Rudolph Libbe Group  Facility management – 3 full time, more as needed  Energy management  Property management  Building security  HVAC technicians as needed  Construction services as needed  Other specialists as needed

Tactics Employed  Weekly stakeholder meetings  Project Coordination  Review existing contracts & supply arrangements  Correct errors  Negotiate new contracts as beneficial  Natural Gas  Fixed basis, variable commodity  Electricity  Capacity pass-through  Paper products  Landscaping  Cleaning services  Elevator service

Tactics Employed (continued) Utilize utility bill pay and information management system  Invest in electrical interval data  Energy audit - Data logging  Eliminate “phantom” loads  Retro-commissioning  Address deferred maintenance  Water efficiency  Better utilization of BAS: Scheduling of air handlers, exhaust fans & pumps  Prioritize and implement energy projects  Secure First Energy incentives  Outcome Assurance  Monthly ENERGY STAR updates   Weather adjusted savings  Interactions between projects and  supply/demand-side energy management

Outcomes – Energy Star

Outcomes – Electricity Usage

Outcomes – Electricity Demand

Outcomes – Gas Usage Note: Evaluating possible billing/metering error in March & April

Outcomes – Water Usage

Outcomes – Sewer Usage

Outcomes – Tenant Satisfaction  Retain current tenants  Attract new tenants

Outcomes – Risk Mitigation  Safety  Reduced equipment failure  Reduced downtime  Greater budget certainty  Protection against rising rates

Outcomes – Risk Mitigation

Outcomes – Financial, Utilities Supply-side Energy Management  $39,000 electricity savings 1, 2  $25,000 gas savings 2  Demand-side Energy Management  $91,000 electricity savings   1,147,820 kWh $16,000 water & sewer savings   2,042 kgal water  1,218 kgal sewer $2,300 gas savings 3   3,927 Therms Total Annual Net Energy Savings  $173,300  31% utility cost reduction  11% resulting op. ex. reduction  Notes: Reduced site kWh’s due to Demand-side Energy Management have been considered, thereby reducing supply-side savings. 1. Forecasted 12 mo. savings. 2. Through Feb. 2018; evaluating possible bad meter/billing data beyond that point. 3.

Challenges and Lessons Learned Old/obsolete equipment  Longer lead times  Expensive  Inherently inefficient  Undocumented building modifications  Abandoned in-place equipment/systems  Natural gas and electricity system/project  interactions Code updates  Hazardous material abatement & disposal  Chiller preventative maint. influence on  peak electric demand Data center once-through city water  cooling influence on water & sewer usage

Future Plans/What’s Next?  Building upgrades  Wrapping up Lobby renovation  More efficiency projects  Wrapping up basement re-lamping  Combined Heat & Power (CHP)  Power back-up and life safety systems