cacm - implementing sustainable strategies utilizing reserves

Implementing Sustainable Strategies Utilizing Reserves

CACM wishes to thank today’s sponsors for their generosity:

California Association of Community Managers, Inc.

Implementing Sustainable Strategies Utilizing Reserves

September 2009

Coachella Valley Educational Forum

California Association of Community Managers, Inc.

The panelThe panel

Damian Esparza, SmartProperty.comDamian Esparza, SmartProperty.com

Matt Davenport, Monarch EnvironmentalMatt Davenport, Monarch Environmental

Scott Weiss, Three Phase Electric, Inc.Scott Weiss, Three Phase Electric, Inc.

Inevitable TransitionInevitable Transition AB 1881AB 1881

Smart timers only by 2012.Smart timers only by 2012. AB 32AB 32

Emissions back to 1990 standards by 2020.Emissions back to 1990 standards by 2020.

McKinsey StudyMcKinsey Study Holistic implementation strategy Holistic implementation strategy

recommended to recommended to achieve $1.2 trillion in savings achieve $1.2 trillion in savings by 2020.by 2020.

Agenda

1. The Problem

2. Goals

3. Terminology

4. The Process

5. Case Studies

Look around, it is not business as usual.

The ProblemThe Problem

2005 2008Lake Oroville

The Problem

Lake MeadColorado River

San Luis Reservoir

The Problem

Goals

1. Measurability Tools

2. Pattern for Success

3. Demonstrate Ways to Pay

What budget items do community managers have control over?

Terminology

Smart Technology

The Process

Evaluate

Coordinate

Design

Analyze

Implement

Review

Step 1 – Evaluation1. Metrics

2. Usage

3. Benchmarks

4. Determine Savings

Ex: Water Usage Report“If you cannot measure it, you cannot improve it.”

-Lord Kelvin

Step 2 – Coordinate Team

1. Assemble the Team

2. Who’s the Quarterback?

3. Communicate

4. Vision

5. Goals

6. Timelines

Step 3 – Sustainable Design• Develop a Plan - “Baby Steps”

• List Priorities

• Do Easy Things First

• Develop Requirements

• Determine Budget

• Review Options

Step 4 – Perform Cost Benefit Analysis

• Determine ROI

• Perform savings impact on reserve funding

• Sell “Savings for Tomorrow”

Step 5 – Implementation1.Communication

2. Adjust reserve components for future replacement

3.Track Changes

4.Measure Results

Step 6 – Review

1. Annual Check-Ups

2. Verify Savings

3. Review Needs

4. Make Improvements

Landmines to Avoid

Case Studies

Landscape Sustainable Case Study

• Tierra Mesa HOA

• 138 Unit Condo

• 2.5 Acres

• San Diego

Step 1 - Evaluation

Step 2- Assemble the Green Team

Community Manager

Landscape ProBoard Member

Collaboration

Landscape Committee Member

Landscape Consultant

Additional Green Team Members

Plant ProviderWater Report Provider

Landscape Architect

Reserve Pro

Communication

BankerAttorney

Step 3 - Sustainable Design

• Determine water use

• Water usage report @ watersmartconservation.org

• Re-program the controllers

• Install MP Rotators

• Install smart controllers

• Develop a plan @ watertowaterproject.com

Recommendations

Step 4 - Perform ROI Analysis

• Current Cost of Water: $31,890

• Estimated Water Savings: 25%

• Annual Savings: $7,972

• Proposed Cost: $13,240

• ROI: 20 Months

Savings Impact on Reserve Funding

Water Savings Potential: $26,777

Before

After

Water Savings

+ Reserve Contributions

= Savings for Tomorrow!

Step 5 - Implementation

• ½ of Proposed Project Costs including:

• Review water bills and site

• Re-programming irrigation controllers

• Installing MP Rotators on large turf areas

Board Approved

Approved Project Costs$6,840

Step 6 – Review Results

• Compared to previous consumption period of May-Aug 2008

• Month 1 and 2 50% Savings = $3,778

• Month 3 Savings = $2,529

• Return on $6,840 investment: 3.5 months!

Board Member

“We did not expect a 3.5 month ROI. This really shows us that our investment was very much needed and worth the money”

What’s the Difference?

Before

After

The Difference is…..

In 4 months, the association has saved 315,000 gallons of water that would have cost them $1,310.  The area looks great and both the board and the plants are happier.

Case Study – Sustainable Energy

• Cabo Del Rio HOA

• 240 Unit Condo

• 10 Buildings

• Underground Parking

• Clubhouse

• Pool/Spa/Tennis/Rec

• Park Areas

Sustainable Energy Case Study

Step 1 - Evaluation

• Retain a Lighting or Energy Consultant

• Evaluate all Lighting Assets (Reserve Study)

• Benchmark = Lumens per Watt

• Potential Cost Savings

• Use Actual Numbers

• Utilize Sustainable Technologies

Step 2- Assemble the Green Team

Community Manager

Certified Energy/Lighting Consultant

Board Member

Collaboration

Energy Committee Members

Additional Green Team Members

Reserve ProBanker

Attorney Collaboration

Step 3 - Sustainable Design

• Retrofit all Incandescent Decorative Wall-mount Fixtures with Fluorescent

Recommendations – Level I

Step 3 - Sustainable Design

• Replace all Underground Parking Strips with High Efficiency Fixtures

Recommendations – Level I

Step 3 - Sustainable Design

• Replace all Pool and Spa Light Fixtures with LED Fixtures

Recommendations – Level I

Step 3 - Sustainable Design

• Rewire Underground Parking Lighting Circuits for Day/Night Transitional Control

• Timeclock Control of all Decorative Landscape Lighting

Recommendations – Level II

Step 3 - Sustainable Design

• Install a Photovoltaic Solar Energy System on each roof (11 buildings)

Recommendations – Level III

Step 4 - Perform ROI Analysis

Wall-mount Retrofit $4,275 $12,780 4 moUnderground Parking $29,000 $17,975 < 2 yrPool Lights $2,400 $544 ~4.5 yr

Level 1 Recommendations Project Cost Energy Savings ROI

_____________________________________Totals $35,675 $31,299 < 2 yr

Lighting Control $21,500 $3,942 < 5 yrLevel 2 Recommendations

PV Solar System(1) $144,000 $13,245 < 11 yrPV Solar System(2) $0 $1,480 NA

Level 3 Recommendations

(1) Cost after Rebate and Creative Tax Credit(2) Utilizing a Power Purchase Agreement

Savings Impact on Reserves

Before

After

Level 1 Recommendations

Energy Savings

+ Reserve Contributions

= Savings for Tomorrow!

Energy Savings: $31,299

Step 5 - Implementation

• All Level I Recommendations including:

• Retrofit Wall-mounts

• Parking Fixture Replacements

• LED Pool Lights

Board Approved

Approved Project Costs$35,675

Step 6 – Review Results

• Improved Lumen Maintenance and Visibility in Parking Garage

• Energy Savings of $15,190 in Six Months

• ROI in 16 Months

• Maintenance Savings of $975 each Year

= Hero

Can we utilize reserve Can we utilize reserve funds?funds?

YesYes Member voteMember vote Word ballot for approval of:Word ballot for approval of:

Expenditure from reservesExpenditure from reserves Capital improvementCapital improvement

Conclusion

In memoriumIn memorium

January 13, 1937 – August 25, 2009

Nora Jaeschke, CCAM, PCAMWe gratefully acknowledge the contributions Nora made to this program.

Her continuing influence reminds us to work passionately and accomplish what we care about.