energy efficiency

The Power of Collaborative Project Delivery

February 5, 2024

Enhancing Energy Efficiency

In the realm of sustainable development, energy efficiency stands as a paramount goal. As the world grapples with environmental challenges, companies dedicated to reducing their carbon footprint are at the forefront of change. One key approach that has gained significant traction is collaborative project delivery. This innovative approach not only ensures streamlined processes but also plays a pivotal role in the success all project partners including us, an energy savings company (ESCO).

Collaborative project delivery is a method that involves close cooperation between various stakeholders, including architects, engineers, contractors, clients, and energy savings company, throughout all phases of a project. A collaborative approach proves to be invaluable. Navitas is committed to helping clients minimizing their energy consumption and environmental impact while maintaining operational efficiency. Let’s delve into how collaborative project delivery amplifies these efforts:

Holistic Perspective:

Collaborative project delivery encourages a holistic approach to project planning and execution. In the context of energy efficiency, this means that stakeholders from different fields work together from the outset, ensuring that each aspect of the project aligns with the overarching goal of reducing energy consumption. Architects, for instance, can design spaces that maximize natural light and ventilation, while engineers can integrate innovative energy-efficient technologies. The team works in tandem with the owner’s goals.

Expertise Integration:

Navitas thrives on the unification of expertise from all project partners. Collaborative project delivery facilitates the seamless integration of the entire teams’ skills. Engineers can devise intricate energy management systems that can be integrated into the building’s design by architects, while contractors can ensure that sustainable materials are used. This synergy creates a harmonious blend of solutions that result in both energy savings and operational excellence.

Real-time Problem Solving:

Complex projects often encounter unforeseen challenges. Collaborative project delivery enables real-time problem-solving as the entire team collaborates to address issues. In the energy-efficient sector, this agility is crucial. For instance, if a planned renewable energy system faces technical hurdles, engineers and contractors can brainstorm together to find alternative solutions that maintain or enhance the building’s energy efficiency.

Continuous Communication:

Clear communication lies at the heart of collaborative project delivery. Regular discussions and updates ensure that all project partners remain aligned with the energy-efficient goals and objectives. This constant dialogue extends to post-project evaluation, allowing Navitas to assess whether the energy-saving targets have been met and identify areas for improvement.

Risk Mitigation:

Energy-efficient projects often involve cutting-edge technologies and unconventional approaches. Collaborative project delivery helps in mitigating risks associated with such endeavors. The collective wisdom of the team minimizes the chances of errors and missteps, safeguarding the project’s success and the company’s reputation.

Innovation Cultivation:

Energy-efficient companies thrive on innovation. Collaborative project delivery nurtures an environment where new ideas are welcomed and explored. Architects, engineers, and other project partners collaborate to brainstorm innovative ways to harness renewable energy, optimize HVAC systems, or employ smart building technologies, thereby pushing the boundaries of energy efficiency.

Long-term Sustainability:

The collaborative approach doesn’t conclude with project completion. For Navitas and our clients, long-term sustainability is a critical goal. Collaborative project delivery ensures that all partners remain invested even after the project is finalized. Maintenance teams, for instance, can work alongside designers to ensure that the building’s energy-efficient systems continue to perform optimally.

The value of collaborative project delivery in the context of an energy-efficient project cannot be overstated. This approach brings together expertise from various fields, fosters innovation, and drives long-term sustainability. In a world that is increasingly conscious of the environmental impact, companies dedicated to energy efficiency are setting a powerful example by embracing collaborative project delivery. As the synergy between diverse talents and perspectives leads to the creation of truly sustainable spaces, it becomes evident that collaboration is the cornerstone upon which the future of energy efficiency is built.

What Questions Should I Ask an Energy Savings Company (ESCO)?

January 3, 2024

When engaging with an energy savings company to enhance energy efficiency within a school district, a school superintendent should ask pertinent questions to ensure a successful partnership. Here are five crucial questions to ask the ESCO you are proposing to work with:

1. Scope of Services:

What specific energy-saving solutions does your company offer?
Can you provide a detailed breakdown of how each solution will contribute to energy savings within our schools?
How customizable are your services to accommodate the unique needs and infrastructure of our district?

2. Cost-Benefit Analysis:

How will the proposed energy-efficient upgrades impact our operational costs and budget over the short and long term?
Can you present case studies or examples from other schools that demonstrate the financial benefits achieved through your services?
Are there any potential rebates, incentives, or financing options available to offset the upfront costs of implementing these solutions?

3. Performance Measurement and Reporting:

How do you track and measure the energy savings resulting from the implemented solutions?
What tools or technologies do you use to provide real-time monitoring and reporting on energy consumption?
Can you outline the frequency and depth of the reports we will receive to assess the progress of the energy-saving initiatives?

4. Environmental Impact:

How does your company prioritize environmentally friendly and sustainable practices in your energy-saving solutions?
What metrics or certifications do you use to quantify the reduction in our carbon footprint as a result of these initiatives?
Can you share examples of successful projects that not only achieved energy savings but also contributed positively to the environment?

5. Long-Term Partnership and Support:

What level of ongoing maintenance and support do you provide once the energy-efficient solutions are implemented?
How do you ensure that the implemented systems continue to perform optimally and deliver the projected savings over time?
Are there opportunities for training our staff to maximize the benefits of these energy-saving technologies?

These questions will help the school superintendent evaluate the energy savings an ESOC’s expertise, offerings, and alignment with the school district’s goals. A transparent and comprehensive discussion will ultimately lead to informed decisions that benefit the schools, students, and the environment.

Navitas helps schools with their deferred maintenance and energy efficiency projects. Our approach is to work collaboratively with our clients to ensure we have an agreed upon understanding of the challenges. With this, we create a development approach that includes all your staff, at every level of your organization, necessary to solve the challenges.

Illuminating Efficiency

December 5, 2023

Steps for a City to Hire an Energy Savings Company

In the pursuit of sustainable development, cities around the world are increasingly prioritizing energy efficiency as a key component of their growth strategy. Recognizing the significance of reducing energy consumption and carbon emissions, many cities are turning to energy savings companies (ESCOs) to harness expertise and drive transformative change. Hiring an ESCO is a strategic move that requires careful consideration and planning. Here, we outline the essential steps for a city to engage an ESCO effectively and pave the way for a more energy-efficient future for its citizens.

Step 1: Define Objectives

Before embarking on the journey of hiring an ESCO, a city must first identify its energy efficiency goals. This involves evaluating existing energy consumption patterns, identifying potential areas for improvement, and setting realistic targets. Whether the focus is on upgrading municipal buildings, street lighting, transportation systems, or public facilities, clear objectives will serve as the foundation for the entire process. This could be inclusive of all city owned properties or just one building.

Step 2: Market Research and Pre-qualification

Cities must undertake comprehensive market research to identify potential ESCOs with proven track records in similar projects. Pre-qualification ensures that only experienced and financially stable ESCOs move forward in the selection process, minimizing risks and ensuring the city’s interests are protected.

Step 3: Request for Proposals (RFP)

The RFP stage is critical, as it provides ESCOs with a detailed understanding of the city’s needs, expectations, and project requirements. The RFP should include technical specifications, performance benchmarks, evaluation criteria, and contractual terms. A well-structured RFP allows ESCOs to submit comprehensive proposals that address the city’s unique challenges and propose innovative solutions.

Step 4: Evaluation and Selection

City officials, sustainability experts, and other stakeholders evaluate the submitted proposals based on predefined criteria. Evaluations may consider technical expertise, financial viability, proposed energy-saving measures, project timeline, and potential for community engagement. The selection process aims to identify the ESCO that offers the most compelling and well-aligned approach to achieving the city’s energy efficiency goals.

Step 5: Negotiation and Contracting

Once the preferred ESCO is selected, negotiations begin to finalize the project scope, terms, and contractual agreements. Key aspects to address include performance guarantees, measurement and verification protocols, project costs, and project duration. The contract should clearly outline responsibilities, risk allocation, and dispute resolution mechanisms to ensure a smooth collaboration.

Step 6: Implementation and Monitoring

With the contract in place, the city and the chosen ESCO begin the implementation phase. This involves executing the proposed energy-saving measures, which could encompass a range of activities such as retrofitting buildings, upgrading lighting systems, installing renewable energy sources, and optimizing infrastructure. Throughout this phase, regular monitoring and reporting mechanisms are established to track progress against predefined benchmarks and ensure that the projected energy savings are being realized.

Step 7: Measurement and Verification

Following the implementation phase, an independent third-party measurement and verification process is crucial to confirm the achieved energy savings. This step ensures transparency, accountability, and trust between the city and the ESCO. If the energy savings fall short of the agreed-upon targets, the contract may include remedies or adjustments to address the discrepancy.

Step 8: Continuous Improvement and Collaboration

Energy efficiency initiatives should not end with the completion of the initial project. Cities and ESCOs should engage in ongoing collaboration to explore additional opportunities for energy savings and sustainability improvements. By continuously monitoring and optimizing systems, cities can maximize the long-term benefits of their partnership with the ESCO.

Navitas can help you from start to finish. We’ve helped cities with the proposal process and guiding them through a continuous improvement plan well past the installation of the energy efficient projects. We are here to be your partner. Contact us today for more information on how we can help your city starting saving taxpayer dollars.

Teaching Kids About Engineering

April 24, 2023

Our own Bob Wimmer, Project Director of Infrastructure Solutions, joined the 4th grade students at Ebb Valley Elementary School in Manchester, Maryland, as part of the STEM program to see what an engineer does every day. Bob showed how spoiled food and other food waste can be converted into renewable natural gas through anaerobic digestion. The students learned how renewable fuels and converting waste into energy can provide additional options for producing energy. The students asked great questions about what an engineer does every day and Bob showed how engineering applies math, science, social skills and many other disciplines in order to construct new facilities and structures.

What is COP Financing and Who Can Use It?

January 14, 2022

Originally posted January 25, 2018

A COPS is a Certificate of Participation with a bank or other financial institution. When a school district is looking for options on how to finance facility improvements, many have found significant savings in utility bills by installing more energy efficient operating systems. The cash needed to pay for the installation of these new systems can be generated through a COPS. Under an energy savings performance contract, the school district pays back the principal and interest due semi-annually on the COP from the savings realized through reduced utility bills. Below is some basic information on a COP.

This information was pulled from “Certificates of Participation” by Kori Donaldson, and “An Introduction to Municipal Lease Financing: Answers to Frequently Asked Questions” by the Association for Governmental Leasing & Finance.

Characteristics of a Certificate of Participation

A certificate of participation is a certificate executed by a trustee under a trust agreement acknowledging that the owner of the certificate is entitled to receive a proportionate distribution of the moneys received by the trustee from the rental payments to be made by or on behalf of a Government Body under a specified lease or leases. The certificate represents the fractionalized interest of its owner in the lease payments, and the trustee that executes the certificate is obligated only to make distributions with respect to the certificate to the extent that it receives rental payments from the Government Body under the lease.

Appropriate Use of Certificates of Participation Financing

Certificates of Participation financing is typically used in larger equipment or real estate financings where the Government Body must access the capital markets to obtain the financing necessary for its project. A certificate of participation financing is typically done in situations where the principal amount involved is relatively substantial so that the distribution of certificates may be made more broadly than would otherwise be the case in a simple equipment acquisition lease, which is generally placed with one or a limited number of investors.

As a practical matter, certificates of participation financing will resemble in many respects a negotiated underwritten bond issue, including $5,000 denominations, stated serial and term payment dates and prepayment options as well as the related primary and secondary market disclosure responsibilities under the federal securities laws. Consequently, while certificates of participation financing contain the elements that are also present when a Government Body uses a simple equipment acquisition lease, an advance funded equipment acquisition lease or a master lease to finance equipment and/or real property, the certificates of participation introduce additional complications to the transaction that are like those associated with any public offering of municipal securities.

Structure of a Certificates of Participation Financing

In addition to the standard elements of a municipal lease, in typical Certificates of Participation financing the lessor (simultaneously with the execution of the lease) assigns all its right, title and interest in the lease, including the right to receive the rental payments, to a trustee under a trust agreement. The trust agreement provides elaborate detail on the security for the certificates, the funds, and accounts to be administered, the terms for the certificates (such as distribution dates, interest rates and prepayment features) and the provisions applicable to the trustee and the discharge of its responsibilities. The trustee under the trust agreement executes the certificates of participation that are purchased by an underwriter or institutional investor.

Disbursement of Proceeds Received from the Sale of Certificates of Participation

A construction account is created under the trust agreement and is funded with the proceeds of sale of the certificates of participation. Moneys are disbursed from the construction account by the trustee as acquisition and construction of the project progresses, upon receipt of written requisitions from the Government Body. Investment Earnings on Amounts Held in the Construction Account Unless one of the exceptions to the arbitrage rebate requirement is available, the Government Body will typically be entitled to the investment earnings on amounts held in the construction account only up to the amount of such earnings that would be generated if the investments were made at a yield equal to the yield on the lease and any earnings in excess of that yield would have to be rebated to the United States as required by the Internal Revenue Code.

About the author – Paul Harrell is a business development manager with Navitas. His background as a Certified Public Accountant and 33 years of experience in the education sector help him bring a practical approach to developing strategies for school districts wanting guidance in how to manage their overall budget and utility costs. He can be reached at pharrell@navitas.us.com or 913-344-0049