Utilities Presentation for Salford City Council

1. Utilities Presentation for Salford City Council

2. Agenda • Current Operational Activities in Terms of Utility Management • Future Innovation in Utilities Management • Cultural Change Management Program • HOCHTIEF FM’s Corporate Position on Sustainability

3. Current Operational Activities in Terms of Utility Management • We are currently undertaking considerable energy management activities in order to reduce consumption in all utilities. These activities are being managed by our local contract management teams as well as our Energy Management experts from our parent company in Germany. Some of these activities are outlined briefly below but have all been discussed and documented in reports and meetings with Councils and SPC’s. Some of the initiatives are as follows: • Developing Energy Plans for all schools • Produced 10,000 “SWITCH IT OFF” Stickers to distribute to all XJ4 Schools • Full Collection of Asset Data • Letter sent to all School Principles demonstrating our commitment to saving Energy • Meeting with School Principles • Installation of Data Logging Equipment for all Mains Meters on Contract • Monitoring and recording Hourly or Half Hourly Consumptions • Carrying out survey by School and agree with Councils any Sub Meter Strategy • Implementing Electrical Sub Meter Strategy to enhance monitoring • Monitoring actual consumption figures against targets using SMART METER system on an ongoing basis • Establishing reasonable future targets

4. Current Operational Activities in Terms of Utility Management • Building Management Systems (BMS) • Carrying out initial survey of all schools (100% Completed) • Identifying areas for improvement for example boiler timings (100% Complete) • Identifying and rectifying faulty Sensors and Cabling problems (85% Completed) • Carrying out survey of all Utility Meters and identify where remote monitoring is not possible and put right (Awaiting Kirklees Council Specification for SMART Meters) • Use Chatsworth Road, Salford as a template for all remote monitoring as detailed on the following slide (Completed) • Move to Remote Monitoring by end of first year anniversary (Ongoing)

5. Current Operational Activities in Terms of Utility Management • Building Management Systems (BMS) - Remote Monitoring Signals from equipment e.g. Boiler Temps, Zone Temps, Hot Water Temps Meter Readings School BMS Modem “Front End” Remote Computer Web Portal Remote Laptops

6. Future Innovation in Utilities Management • HOCHTIEF FM have also discussed with Councils and LST the future innovation and improvement plans that we intend to review in order to improve efficiencies. Many of these require funding. However we have detailed them to provide an indication of our thinking. • Technical Innovation Currently Being Reviewed • Survey Schools and draw up proposals for Lighting Control systems • Survey Schools and draw up proposal to install Sub Meters based on feasible paybacks • Once BMS is fully functional ensure it is used to optimum • Replace High Energy consuming items with low Energy consumption options • Draw up proposals to install Remote Thermostatic Sensors on Heating Equipment • Draw up proposals to install Inverter drives on larger motors such as Pumps and Fans • Consider Power Factor Correction on larger installations • Obtain Proposal from Enersol Corporation regarding installation of their Energy saving equipment on Gas Boilers • Target life cycle spend towards sustainable equipment • Draw up proposal to install IT Energy Management Software (see next slide)

7. Future Innovation in Utilities Management • Evaluation of IT Energy Management Software • There are currently approximately 4,700 PCs in use across the XJ4 Schools • These are quite often not switched off after school or even at nights and weekends • The schools control IT and HOCHTIEF has no control over this element of energy usage. • Install an IT Energy Management Software System which shuts down unused IT equipment and measures the energy consumption and savings on an ongoing basis • Current Status & Outlook: • One possible software solution has been identified and we have written to LST with formal • proposals • A test installation at the Salford XJ4 schools has been proposed by HOCHTIEF • Information passed to Wirral Council to consider • HOCHTIEF await engagement from other Councils on this simple but effective initiative

8. Cultural Change Management Program • A key component of our suggested solution is a Cultural Change Management Program that HOCHTIEF will proactively drive throughout each of the 47 Schools. Ultimately this Change Program will be aligned to each Council’s core business strategy on Sustainability and will drive consumption down through the engagement and motivation of all stakeholders including HOCHTIEF FM staff, school children, parents, teachers and the broader community. We will achieve this through the following methods: • Agree Consumption Targets with Schools and get “buy in” to reductions in Consumption • Agree a bonus scheme with HOCHTIEF Caretakers based on Consumption targets • Award bonuses to staff who come up with practical Energy Saving ideas • Publish the “Top 47” League Table of Schools by contract and award prizes to top schools • Put up consumption figures throughout schools (with agreement of schools) to ensure this gets ongoing high profile • Agree a share of savings with schools

9. HOCHTIEF FM’s Corporate Position on Sustainability • Sustainability is of the 4 Guiding Principles of HOCHTIEF globally • Utilities management is one of the core business unit of HOCHTIEF FM • Considerable experience in energy management • Recent acquisition of the energy performance contracting division of Vattenfall (one of Germany’s leading energy supplier) including transfer of 238 energy specialists • Energy contracting in Bremen, energy contracting in 7 schools guaranteed an energy reduction in energy costs by 34.7% and CO2 omissions by 32.1% • Our ultimate goals and objectives on the 47 Schools is to drive down utility consumption year on year through:- • Technical expertise of local operations management • Technical support from broader HOCHTIEF Energy group • Motivation of on site staff through target bonus schemes • Engagement of children, parents and teaching staff • Continuous education on sustainability issues