irc sustainability partners customer presentation 1/18
TRANSCRIPT
Sustainability as a Service®January
2018 Company Confidential, not to be reproduced or transmitted without prior express permission
Table of Contents
Company Confidential, not to be reproduced or transmitted without prior express permission2
The Problem 3-7
The SAAS® Solution 8-9
The SAAS® Service Model 10-12
The Next Steps 13-18
Appendices/Support Slides 19-28
Contact 29
Mark Goldstein, Business Partner
Sustainability Partners LLC
602.470.0389, [email protected]
http://www.sustainability.partners/
Problem & Goal
Company Confidential, not to be reproduced or transmitted without prior express permission3
Old and decaying infrastructure is unreliable, inefficient and draining funds as a result of deferred maintenance costs.
Organizations have critical priorities they must accomplish to stay competitive which leaves insufficient funds to address costly buy needed infrastructure improvements.
Replace old equipment with new systems that will remain forever young.
Problem
Solution
Obstacle
Replacing Old with New
4
Heating Systems
Turbines, Motors/Compressors
Air Conditioning Systems
Replacing Old with New
5
Water Pumps, Boilers
Roofing Sytems
Replacing Old with New
6
Escalators, Elevators
Lighting & More
What’s in the Way?
The problem is not because of IRR, cost of money, payback or reliable innovation. Other priorities detour funds and
even if capital is available for infrastructure needs, the traditional process is both time consuming and costly.
Needs analysis RFI issued AuditApproval to issue RFP
Budget allocated
RFP issued/response
Vendor selectionContract awarded
Legal reviewPerformance guarantees
secured
Performance bond issued
Project plan for installation
Order materials Installation Commission
Performance verification
Pay vendorsObtain lien releases
Annual performance
audits
Ongoing maintenance
Company Confidential, not to be reproduced or transmitted without prior express permission7
The SAAS Solution
Sustainability As A ServiceYour old becomes forever new!
SP is an “inside utility” delivering swift, safe and significant impact.
1
You don’t purchase any
product or installation
We pay for everything:
materials, installation,
maintenance & upgrades
You only pay a small
fee for usage
32
Company Confidential, not to be reproduced or transmitted without prior express permission8
Our Solution - SAAS Service Model
Replace old with
new for zero CostChoose projects where
benefits are greatest:
lighting, HVAC, water,
motors and drives, building
envelope, etc.
Once replaced, SP keeps
these Items performing
reliably and efficiently
Infrastructure Upgrades
are paid through usage
fees or savings
SP pays to keep
new infrastructure
forever young
through maintenance,
upgrades and eventual
replacement
No required
guarantees, minimums
or multi-year contracts
Company Confidential, not to be reproduced or transmitted without prior express permission9
SP - SAAS Service Model Process
Dramatically Collapse Project/Procurement Cycle Times
Our approach allows for aligned incentives to maximize savings, product reliability and overall satisfaction.
Company Confidential, not to be reproduced or transmitted without prior express permission10
SP Approach
No taxpayer money or public assets are used.
Customer can purchase at SP’s cost at any time based on simple depreciated usage.
No debt or leverage is involved, so all products are free and clear.
If SP fails, customer may acquire all installed products at $1.00
In the 1st year, the customer has the right to return any product with no further obligation or termination fees.
Instead of using “lowest cost” products, we deliver products with highest performance, reliability, life cycle and lowest maintenance.
We replace old with new in months instead of years.
SP - SAAS Service Model Process
Potential
infrastructure
installation and
economics
identified
Utility agreement,
installation specific
addendum,
integrated time-line
Install cloud based
meters to validate
economics
Product,
installation
and service
provider
selection
Notice to
proceed,
SP issues
P.O.’s
Installation,
commissioning &
certificate of
acceptance
M&V of
efficiency &
performance
gains
Dramatically Collapse Project/Procurement Cycle Times
From 20 steps to 7!
Company Confidential, not to be reproduced or transmitted without prior express permission11
Regain Your Mission Critical Focus
Company Confidential, not to be reproduced or transmitted without prior express permission12
• Dedicate your financial capacities to critical priorities. Your core competencies are measured by serving your customers. Rarely do customers care about installing internal infrastructures for maintenance of energy and water - although essential to overall operations.
• Using limited capital and budget for items other than mission critical priorities just makes accomplishing those priorities more difficult and expensive. The allocation of capital outweighs the cost of capital and IRR discussions. Without customer satisfaction, the future is at risk.
• SP is committed to delivering utility type services inside your facilities through the creation of the first “cloud utility” and the SaaS™ model. We pay for the design, procurement, installation, metering, monitoring, maintenance, warranty and continual upgrade of equipment.
• Just like the traditional utilities, we bring our own capital and are financially self-sufficient. We provide what you need, when you need it, and where you need it. We then maintain it as long as you are a customer, creating a win-win for everyone.
How to Procure SAAS?
Our per meter billing will
be below your legislated
requirement to issue an
RFP.
• Issue an easily
authored, quickly
granted, service RFP
• Eliminate need for
product specifications,
performance bonds
etc.
We can provide copies
of RFPs that are in the
public domain.
• Use our fully-
competed cooperative
purchasing
agreement, available
to public entities in all
50 States through
PCA
• Use SP as you would
any other utility based
on monthly metered
usage bill under most
procurement or RFP
requirements
• In sole source
opportunities or where
competition is
impractical, NO RFP
is needed
Company Confidential, not to be reproduced or transmitted without prior express permission13
How Do We Pay for It?
We have our own capital
(just like any other utility
company).
We meter all of the upgrades by
installing our own usage meters
on each major device.
We are repaid by invoicing
you directly from the new
product meters.
Cost/KwH KwH Usage Billing Total
Old Lighting $0.09 71,964 $6,476.76 $6,476.76
New Lighting Utility $0.09 30,000 $2,700.00 58% Energy Savings
SP SaaS $0.03 30,000 $900.00 $3,600.00
Total Savings $2,876.76 44% Utility Cost
You keep the benefits from reductions in utility bills, maintenance costs, disruption to
operations and improved systems!
Financially Self-Sufficient Monitor & Verify Our Upgrades Direct Meter Billing
Company Confidential, not to be reproduced or transmitted without prior express permission14
View Your Benefits Monthly
Sustainability Partners LLC
1305 W Auto Dr
Tempe, AZ 85284
Invoice #
Invoice Date
Amount Due
Contract #
PO #
Invoice Period Start: 3/1/16
Invoice Period End: 3/31/16
"SaaS Payment Sharing "Savings Rate" "kWh Cost" for
Percentage" for Year 1 (A) (B) Year 1 (C)
Galveston County Jail 75% 1.062 $0.068 Terms
Galveston County Courthouse Interior 70% 0.927 $0.082
Galveston County Courthouse Parking Garage 65% 4.981 $0.068
Description Unit Usage (D) Baseline Usage Usage Savings (E) kWh Cost (C) Monthly SaaS
Payment (F)
Invoice Pd. Electricity Savings 69,208 kWh 142,707 kWh 73,499 kWh $0.068 $ 4,997.92 $ 3,748.44
Invoice Pd. Electricity Savings 18,368 kWh 35,395 kWh 17,027 kWh $0.082 $ 1,396.23 $ 977.36
Invoice Pd. Electricity Savings 2,873 kWh 17,186 kWh 14,312 kWh $0.068 $ 973.24 $ 632.61
$5358.41
5358.41
Sales Tax (0.00%): $0.00
$5358.41
$0.00
$5358.41
To pay online, go to https://app.bill.com/p/gsvsustainabilitypartners
"Location Name"
INVOICE
Bill To: 8003
County of Galveston - Accounts Payable 04/06/16
722 Moody Ave, 4th Floor $5358.41
Galveston, TX 77550 CM15154
ThismonthGalvestonCounty'sutilitybillwasreducedby$7,367.39
Texas Prompt Payment
Act
Item Utility Bill
Reduction
SaaS Pmt Sharing
Percentage (A)
Galveston County Jail 75%
Galveston County Courthouse Interior 70%
Galveston County Courthouse Parking Garage 65%
Totals
Total:
Payments:
Amount Due
NOTES:
All terms in quotes are defined in Contract CM15154, Exhibit 1, SaaS Addendum 1, May 12, 2015.
(A) Percentage follows schedule as defined. Sharing percentage changes annually in February.
(B) "Savings Rate" = abs(kWh1-kWh2)/kWh2, as defined in Contract CM15154, with baseline values agreed upon on 04/ 06/2016.
(C) "kWh cost" as defined in Contract CM15154, and assessed annually from utility bills. This will be re-assessed each year from average of 12 months utility bills on the 15th of December--or as soon as complete set
of utility bills are made available. Initial year defined from "Current kWh Cost". Customer may request this rate be updated in the event of a material change in their blended rate.
(D) "Unit Usage" is metered kWh usage, logged in realtime from lighting circuits and visible to the Customer through Aquicore.com
(E) "Usage Savings" = "Unit Usage" x "Savings Rate".
(F) "Monthly Saas Payment" = "Usage Savings" x "kWh Cost" x "SaaS Payment Sharing Percentage"
Company Confidential, not to be reproduced or transmitted without prior express permission15
Top Ten List of Benefits for You
Company Confidential, not to be reproduced or transmitted without prior express permission16
1. 100% of the project as well as maintenance and warranties paid by SP
2. No CAPEX or OPEX
3. No risk customer-friendly service agreement which is cancelable at anytime.
Customer buy out option upon 30-day notice
4. Off-balance sheet transaction; no effect on debt capacity, bond ratings
5. Unique, innovative and tailored to your project and financial needs
NOT a loan, lease, financing, bond, ESCO, nor ordinary sharing-agreement, or financial statements
6. Your infrastructure stays Forever Young.
SP upgrades equipment at no cost when new technology increases efficiency
7. Service agreement approach simplifies procurement
Cooperative purchasing agreement option avoids costly and time-consuming RFP process
8. Benefits include reducing carbon footprint and increasing environmental stewardship.
9. Avoids costs as a result of SP customized installation and stewardship of infrastructure systems
10. As a result of SP investment and maintenance of your infrastructure, there will be reduced energy-
related operating expenses. Furthermore, an updated clean and efficient look enhances overall value
of facilities while enabling you to refocus capital on allocating funds to critical needs and innovation.
Types of Projects We Can Handle
Boilers, chillers and refrigeration
HVAC retrofits; building envelope
energy efficiency
Waste systems
High-efficiency motors/starters
Smart motor controls (VFD)
Refueling stations (CNG/LPG)LED lighting
Smart/precision irrigation systems
Building envelope upgrades
Smart plumbing controls; Low flow
water-efficiency solutions
Company Confidential, not to be reproduced or transmitted without prior express permission17
How Can We Move Forward?
Meet with our team
With all details defined,
execute notice to proceed
Installation,
commissioning
and ongoing
maintenance by
SP
Sit back and let us do
the work
Enjoy the
benefits!
Show us an important problem
you need solved
Define integrated time-
line & execute
agreements
Install sub-meters and
establish baseline usage
Why implement only some of your infrastructure projects, when together, we can implement them ALL!
Company Confidential, not to be reproduced or transmitted without prior express permission18
Appendices/Support Slides
Company Confidential, not to be reproduced or transmitted without prior express permission19
SP Value 20
Additional SAAS Benefits 21
Program Comparisons 22
SAAS Service Agreements 23
Monitoring & Verification Sample 24
Project Profiles 25-27
ESCO vs. SAAS Cost Comparison 28
SP Provides Extraordinary Value
▪ We DO NOT put any mark-up on the products, installation costs, maintenance or cost of capital.
➢ We only purchase highest reliability and performance materials, not lowest cost.
➢ We are agnostic to vendor, installer, maintainer or source of capital.
➢ Due to our lean procurement process, the vendor life-cycle cost to us is far less than you would pay.
➢ Installers deal directly with us and not a general contractor. Maintenance providers deal directly with you even though we pay.
▪ We receive no incentives or fees for the signing or completion of a customer project.
▪ Unlike ESCOs that are fully paid upon installation completion and add on 30-40% margin on top of the product, installation, engineering, etc., our payment is only 5.75% of your monthly usage charges.
▪ What this means is that no matter the device, the location, or the application, it is always priced the same. Your project could be $100K or $100M - pricing is the same.
▪ This gives you, the guardian of stakeholders
or taxpayers needs, complete confidence and
peace of mind with the utility agreement you
sign.
▪ Have we proved that we can permanently solve your problem?
Company Confidential, not to be reproduced or transmitted without prior express permission20
Additional SAAS Benefits
21
1. Costs to maintain decades old
equipment far exceeds that of brand
new equipment
2. SP pays for it all
3. Eliminate management time cost to
arbitrate amongst CAPEX and OPEX
priorities
4. Reduce cost of damage due to old
equipment affecting other
infrastructure
5. People taking pride in their facility
6. Staff feels that management cares
7. Improved safety for personnel and
reduced environmental footprint
Program Comparisons
This is NOT a loan, lease, financing agreement, bond, ESCO, installment purchase, rental, or ordinary sharing-
agreement; we pay 100% of materials, installation, maintenance and upgrades. You are protected from
economic risk and lower your infrastructure costs at the same time.
A lot of companies offer to help you implement energy savings solutions,
but how many also offer to pay for them?
Company Confidential, not to be reproduced or transmitted without prior express permission22
SAAS™ Service Agreements -
Two Inter-related Documents
Utility Agreement Terms & Conditions5 pages long, no obligation, contracts month-to-
month, defines relationship of what you want for
your customized needs
Utility Agreement AddendumProject specific, defines potential
savings and benefits sharing schedule
Company Confidential, not to be reproduced or transmitted without prior express permission23
Monitoring & Verification -Sample Project: Selman Elementary School
Peak due to
weekend
installation
Post-
installation
usage
Pre-installation
baseline usage
66%
Reduction
in kW use
Company Confidential, not to be reproduced or transmitted without prior express permission24
Customer Profile - Galveston County, TX
LED Retrofit
Company Confidential, not to be reproduced or transmitted without prior express permission25
Project FactsLED lighting retrofit of nearly 7,000 lights
Scope of work involved replacing T8 fluorescent
tubes/ballasts with clear lens LED tubes
w/external drivers; replacement of CFLs with LED
“corn cobs”
Project involved full lighting retrofit of three
facilities including county courthouse, justice
center and parking garage
Existing fixture were retained to speed installation
and minimize tenant disruption
Project expected completion: October 2015
SP SaaS BenefitsStreamlined process for energy upgrade projects;
reduced project cycle time by up to 18 months
Reduced energy costs without impact on County
operating budgets
SaaS Service Agreement structure enabled use of
PCA Interlocal contract
Improves County’s environmental footprint by
consuming less energy and saving natural
resources
Eliminate maintenance & repair costs
College Prospective Profile -Point Loma Nazarene University (San Diego, CA)
The Customer
• Private Christian liberal arts university, est. 1902
• FTE ~2,700 Students
• Top 20 ranking among western regional colleges
About The Opportunity
• Project champions included Pres., VP Finance &
AVP Ops
• Identified need for campus energy efficiency
projects
• University had just finished $25M capital
campaign for new 32Ksf science building so little
new spending
• Sustainability angle was important driver for
PLNU
Project Scope• Phase I SOW involves 2,700+ fixtures, over 6,500
lamps across 6 structures (library, commons, gym,
parking, etc.)
• Phase II LED retrofit of Mission Valley campus
(~1,000 fixtures) and remainder of main
campus(~3,000 fixtures)
• Smart irrigation for PLNU sports fields (~$50K)
• Aging HVAC infrastructure has room for
incremental modifications
Company Confidential, not to be reproduced or transmitted without prior express permission26
College Prospective Profile -Maricopa Community College District (AZ)
Prospective Customer• One of the largest Community College Districts in US
• 10 Campuses plus 2 Skills Centers
• Serves 265,000 students annually
About The Opportunity• Project champion: Associate Vice Chancellor for
Capital Planning
• Budget challenges; District defunded by $60M since
2009
• Aging infrastructure…half of all campuses
established in 1960’s
• Strategically address/prioritize colleges where needs
are greatest
Potential Project Scopes• Phoenix Community College - Proposed LED retrofit
of exterior bldg., parking facility, walkway lighting
• Mesa Community College - Level I audit in process of
46 structures for proposed LED lighting, smart
irrigation
• Glendale Community College (North campus) -
Proposed parking facility lighting retrofit to improve
safety and reduce energy OpEx
Company Confidential, not to be reproduced or transmitted without prior express permission27
ESCO vs. SAAS Cost Comparison
Company Confidential, not to be reproduced or transmitted without prior express permission28
Contact
29
Mark Goldstein, Business Partner
Sustainability Partners LLC
602.470.0389, [email protected]
http://www.sustainability.partners/
30
Mark Goldstein, Business Partner
Sustainability Partners LLC
602.470.0389, [email protected]
http://www.sustainability.partners/