Pennsylvania Real Estate Contract

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					  ON THE RIGHT TRACK WITH ENERGY
          CONVSERVATION

OLD TECHNOLOGY        NEW TECHNOLOGY




                                   0
    DISCUSSION TOPICS

         • OVERVIEW

   • PROJECT REVIEW PROCESS

       • PROJECT FACTS

     • CONTRACT SPECIFICS

        • CHALLENGES

      • BENEFITS/REWARDS

• HOW COULD WE GET SUCH A DEAL

    • SUMMARY/ QUESTIONS
                                 1
NEW YORK PENN STATION LIGHTING PROJECT
                          OVERVIEW

 • Amtrak is America’s Passenger Railroad. Last year,
 more than 24 million passengers traveled on Amtrak trains,
 representing the 4th straight year of record ridership.

 • Amtrak has over 1,400 utility accounts and spends over $130
 million annually on utility expenses.

 •Approximately $40 million of this expense pays for electricity,
 water, gas and steam to facilities and stations around the
 country.




                                                                    2
NEW YORK PENN STATION LIGHTING PROJECT

  • Pennsylvania Station in New York City is Amtrak’s busiest
    train station and serves over 500,000 Amtrak, New Jersey
    Transit, Long Island Rail Road and New York City subway
    passengers per day.

  • Amtrak’s electrical utility provider in New York City,
    Consolidated Edison (Con Edison), began a program to
    encourage business to lower energy usage. One of Con
    Edison’s contractors, Quality Conservation Services Inc.
    (QCS) approached Amtrak about participating in their
    Lighting Express Program.

  • QCS offered Amtrak free installation and labor of Compact
    Fluorescent light bulbs. QCS also provided Amtrak with a
    supply of replacement light bulbs equal to 5% of the light
    bulbs installed.

                                                                 3
NEW YORK PENN STATION CFL PROJECT


 • Replacing the incandescent and HID bulbs in Penn Station at no cost
   seemed too good to be true!

 • QCS wanted to discuss the change out of all the bulbs in Penn
   Station. They explained that some of the bulbs were free, while
   others may require a sharing of the costs.

 • We decided to go with free work only and look at the other work as
   Plan “B”.

 • QCS was asked to provide a proposal for the free portion of the
   project which would be a little more manageable to coordinate.




                                                                        4
PROJECT REVIEW PROCESS



• A multi-departmental team was organized to
  discuss and manage the project:
         -UTILITIES MANAGEMENT
         -PROCUREMENT
         -LAW
         -REAL ESTATE
         -ENGINEERING
         -PASSENGER SERVICES




                                               5
PROJECT FACTS

 • Building Size - 1,000,000 Square Feet (not counting platforms)

                    • Bulbs Changed – 4,752

             • KWH Reduced Annually – 3,200,000

            • CO2 Gases Eliminated - 4,997,000 lbs

      • First Conversation About Project - January 2006

                    • Start Date – June 2006

                 • Finish Date - November 2006




                                                                    7
PROJECT FACTS


                  • Original Bulb - Types/Wattage
               75 Watt – 900 Watt – HID/Incandescent

                  • Replacement Bulbs/Wattage
                      2 Watt - 120 Watt CFL

                      • Eleven Year Contract

  • Device Installed in Fixtures to Eliminate Possibility of Using
            Incandescent or HID Bulbs Instead of CFL




                                                                     8
CONTRACT SPECIFICS

   • Handling and Disposal of Old Bulbs and Other Waste

   • Spare Bulbs

   • Hours to Perform Work

   • Bulb Specification: Size, Shape, Color, and Lumen Output

   • Bulb Guarantee

   • Project Duration




                                                                9
CONTRACTS SPECIFICS

   • Cost Savings and Greenhouse Gas Reduction - Statistics

   • Maintenance Requirements for New Lights

   • Getting Approval of Scope of Work and Contract Terms

   • Bulb Manufacturer Track Record

   • Contractor Training Guidelines




                                                              10
CHALLENGES
 • Some of the lights were near active railroad tracks.

 • Contractors had to be trained to work around an active railroad.

 • There were 26 retail vendors that were asked to buy into the
   project.

 • The Amtrak Electricians (IBEW) Union Contract had to be
   adhered to which required a formal labor clearance be drafted and
   approved.

 • Getting all the parties together to agree on the scope of work and
   contract terms.

 • Review and approvals of the bulb specifications and design.


                                                                        11
BENEFIT/REWARDS
 • Reduction of 3,244,000 Kilowatts annually in electricity usage.

 • 4,997,000 pounds of CO2 eliminated.

 • Estimated annual savings of $370,000 in electricity costs.

 • CFL’s last ten times longer and produce 75% less heat.

 • Reduced maintenance time to replace lights that are very hard
   to reach.

 • Color consistency.

 • Lights stay on 24/7 in most cases so benefits are better than
   usual.

 • Free lights and installation.
                                                                     12
KEY FACTORS IN SUCCESS OF PROJECT

• Having an understanding of our internal organization.

• Relationships with the individuals who were responsible for each
  phase of the project.

• Communication with the affected parties about how this project will
  benefit them and the corporation.

• Have a single point of contact to organize the administration of the
  project.

• Having a partnership with the contractor - not a one way
  relationship.

• Organized with meetings and action items.

• Team work between Amtrak field forces and the contractor to
  navigate through problems.
                                                                         13
HOW DID WE GET SUCH A DEAL?



• Load reduction during
  peak times in the summer
  would eliminate the need
  to build additional costly
  power plants.




                               14
    POLLUTION REDUCTION ANNUALLY

          KWH REDUCED ANNUALLY 3,244,148

CARBON DIOXIDE              SULFUR DIOXIDE
                                             NITROGEN DIOXIDE
Global Warming                 Acid Rain     Acid Rain & Smog


   POUNDS                       POUNDS           POUNDS
NOT PRODUCED                NOT PRODUCED      NOT PRODUCED
   4,997,000                     24,167           9,240


          FUEL NOT BURNED

               5,803        BARRELS OF OIL
               1,515        TONS OF COAL




                                                                15
NEW YORK PENN STATION CFL PROJECT




              QUESTIONS ?



                                       Bob Jones
                    Senior Director - Utilities Management - Amtrak
                                                 jonesb@amtrak.com




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