www.usa.siemens.com/lasalle
La Salle University
Leveraging a Performance-Based Solution to address its deferred
maintenance backlog and create a better learning environment.
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Located in a 133-acre park-like setting six miles from
downtown Philadelphia, La Salle University is a private,
Roman Catholic institution rich in history and success.
The university was formed in 1863 by the Institute of the
Brothers of Christian Schools and named after its founder,
St. John Baptist de La Salle. Today, it offers degrees in over
50 different majors to 7,000 students, and its campus has
expanded to 67 buildings, including residence halls for
2,100. La Salles’s ability to place students in jobs or
graduate programs upon graduation has heightened its
profile and popularity and contributed to strong enrollment.
From a facilities standpoint, the challenges faced by
La Salle were similar to those encountered by many private
institutions struggling with deferred maintenance.
Infrastructure was significantly outdated, and heating and
cooling systems were not sufficiently automated. This older
equipment had to be operated manually and continually,
which led to excessive operation, uncomfortable
classrooms, frequent system failures, extra attention from
an overworked facilities team, and higher utility bills.
Recognizing the need to continually improve and upgrade
its learning environment, La Salle enlisted the aid of local
architectural and engineering firms to develop a near-term
campus master plan that incorporated the new amenities
and modernized facilities students look for when selecting
a university.
As part of this, La Salle also recognized that their growing
backlog of deferred maintenance posed a real threat to the
campus’ historic-built environment and to its reputation
among current and incoming students, as well as alumni.
To address this immediate threat, La Salle partnered with
the Building Technologies Division of Siemens Industry, Inc.,
on a Performance-Based Solution. Through this approach,
the University was able to make much-needed campus
improvements, upgrade its classrooms with 21st century
technology, and put in place energy saving measures that
will reduce its annual utility bills by close to 20% and
receive over $250,000 in utility incentives — all in a
budget-neutral manner.
A Performance-Based Approach
The Performance-Based Solution is a relatively new
approach that’s gaining in popularity among higher
education institutions and other entities dealing with
deferred maintenance (see sidebar “Performance-Based
Solutions Defined”). The major benefit is that it provides
positive cash flow. No upfront capital is required, which is
significant in that budget limitations have traditionally contributed to ongoing and unmet deferred maintenance
needs; with Performance-Based Solutions, energy savings
are guaranteed to exceed the cost of improvements.
Performance-Based Solutions Defined
A Performance-Based Solution is a means of financing
a multi-faceted capital improvement project. An energy
services company (ESCO) identifies facility improvement
measures (FIMs) that will reduce water, sewage,
electricity, steam, natural gas, etc., and guarantees
the predicted savings. The ESCO provides single-source
accountability, acting as project manager, executing
the work, and/or hiring local contractors.
The contractee acquires a loan to pay for the
improvements. The cost of the project is divided
by the guaranteed annual savings to determine the
length of the contract. Project payment is based on
the guaranteed annual savings. Once the project is
implemented, the savings resulting from increased
efficiencies are used to make loan payments to the
capital leasing company. If the actual savings are in
excess of the guaranteed savings, the contractee
retains the amount above the guarantee. If the
savings are lower, the ESCO must pay the contractee
the difference. Beyond the term of the contract,
the contractee receives the entire energy savings.
How Performance-Based Solutions Work
Savings
Project
Payment
Utility
Bill
Utility
Bill
Before
Performance-Based
Solution
During
Performance-Based
Solution
Utility
Savings
Savings
Utility
Bill
After
Performance-Based
Solution
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When done in a collaborative manner, a Performance-Based
Solution takes a holistic, forward-thinking approach to
infrastructure improvements. Universities can address
multiple needs, improve energy efficiency, and upgrade
the campus environment, all within a single contract or
through a phased approach. This was the situation at
La Salle. “The projects we completed through a
Performance-Based Solution dovetailed nicely with
what we were doing with our master planning and how
we were going to address the future of the university,”
recalls Robert Kroh, La Salle’s Assistant Vice President,
Facilities Management and Capital Development.
“It has helped us create a very successful environment
for our students.”
After reviewing multiple proposals, La Salle selected the
Building Technologies Division of Siemens Industry, Inc.,
as its partner for the project. Siemens was initially brought
in for their building automation controls expertise, but it
was their holistic approach to addressing a wide range of
challenges that won the La Salle team over. “Siemens really
listened to all of our concerns and took a very proactive
approach to addressing them,” notes Mr. Kroh.
Steve Neiman, Siemens lead energy engineer on the
project, explains his team’s approach: “There’s a whole
host of improvements that we can provide in a solution.
We look at everything across campus, soup to nuts, and
bring that information back to the customer. That way
they can identify what makes the most sense, not just
financially, but for all the parties on campus — students,
faculty, and staff.”
In addition to its collaborative, comprehensive approach,
the Siemens team’s expertise was another reason for
La Salle’s choice. “The level of engineering capabilities
combined with their knowledge of our systems and
facilities gave us a lot of confidence,” notes Mr. Kroh.
“Comprehensively, Siemens couldn’t be beat.”
Identifying Opportunities and Options
An investment-grade energy audit was the first step in the
project. This was a deep-dive analysis by Siemens energy
experts of all the potential areas for energy and operational
savings at La Salle. “We visually observe things, we record
system data, and we put loggers on mechanical equipment
to understand the operating status,” explains Mr. Neiman.
The audit was also a collaborative process between
Siemens and La Salle, with bi-weekly meetings to discuss
findings. “Those meetings were important,” recalls David
Maurer, the account manager for Siemens. “La Salle had
a lot of other decisions with regards to their long-term
planning that they needed to make while the audit was
going on. In the meetings, we could share with them our
findings while they provided us guidance on how certain
improvements may impact or be impacted by their
master plan.”
Through its comprehensive approach and wide-ranging
capabilities, Siemens brought multiple solutions to the
table. “The energy audit for La Salle was very important
because it was giving us options,” states Joe Birster,
La Salle’s Director of Facility Management. “We were
very excited.”
The investment-grade audit took 120 days to complete,
after which the final Performance-Based Solution was
defined. For La Salle, it was time well spent. “The audit
allowed us to prioritize our own planning,” says Mr. Kroh.
“We could restructure where some of our expense was
going with relation to renovations, redirecting it to other
capital projects.”
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Committed to Sustainability
in Higher Education
As an added element to the Siemens-La Salle relationship,
the two organizations have partnered to introduce
academic programs focused on sustainability and related
topics. The project is part of the Siemens Sustainability
Education initiative. Implemented at other colleges and
universities across the country, Sustainability Education
supports learning and careers in STEM subjects (science,
technology, engineering, and math) and develops
academic programs related to energy, the environment
and sustainability.
“More and more of our students are involved with
sustainability and support of the environment; it’s a real
high priority,” notes Robert Kroh, Assistant Vice President,
Facilities Management and Capital Development at
La Salle University. “Through this project, students are
seeing how La Salle cares and that Siemens cares about
making us a more efficient organization.”
Transforming La Salle’s Campus
The final Performance-Based Solution encompassed
$9.5 million in facility improvement measures, designed
to reduce La Salle’s energy use by 20%, in addition to other
significant utility and operational cost savings. The cost of
these improvements will be paid back through the energy
savings over the course of the 13-year contract term, with
excess savings going directly to La Salle’s budget.
The focus of the Performance-Based Solution was
improvements to the mechanical systems at three of
La Salle’s most energy-intensive buildings — Olney Hall,
the Union Building, and Connelly Library. “During the audit,
we benchmark the energy intensity of campus facilities,
looking for the best energy efficiency opportunities,”
explains Mr. Neiman. “Typically, this focuses on academic
and other highly-populated buildings.”
In each of these buildings, air conveyance systems were
converted from constant volume to variable air-volume
(VAV), and new variable frequency drives (VFDs) were
added. Controls were upgraded from pneumatic to DDC.
Siemens also expanded the use of its APOGEE® building
automation system, allowing for the implementation of
energy saving control applications, including start/stop
optimization, morning warm-up and cool-down, and
demand control ventilation. A fourth building, Hayman
Center, also underwent a controls upgrade from
pneumatic to DDC.
Siemens also completed a host of measures to facilities
campus-wide, to improve operational efficiency and lower
utility bills. Many were basic improvements that modernized
the campus to make it more efficient in terms of both
energy and water use. Improvements included:
‒‒ Lighting Retrofits – Old, inefficient T12 fluorescent
lights were replaced with new, 28-watt, energy-saving
T8 lamps. Metal halide fixtures were replaced with T5
lamps, and long-life LED lights were installed in exit
signs. The new lighting improved light levels, reduced
energy cost, and significantly reduced man-hours
required for maintenance.
‒‒ Water Fixture Upgrades – Bathrooms across campus
received major efficiency upgrades with the installation
of modern fixtures that reduce water consumption.
Upgrades included new showerheads, aerators on
faucets, low-flow flush valves on toilets, and more
efficient urinals. The new fixtures were part of
comprehensive improvements to campus bathrooms
that received very positive feedback from students.
‒‒ Other Improvements – Additional upgrades included
building envelope improvements at 11 facilities,
installation of vending misers in vending machines
across campus, kitchen equipment retrofits, steam trap
retrofits, athletic field irrigation control improvements,
and insulation for pipes and fittings throughout campus.
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Members of the La Salle University
and Siemens Industry, Inc., project
team (from left): David Maurer,
Siemens Industry, Inc.; Tom Pace,
Assistant Director of Facilities,
La Salle University; Joe Birster,
Director of Facility Management,
La Salle University; and Dave
Antenuci, Siemens Industry, Inc.
With the positive cash flow generated by the
Performance-Based Solution, La Salle was also able to
make much-needed improvements to its classrooms.
Converting older classrooms into “smart classrooms” with
the latest multimedia capabilities had been an ongoing
priority for La Salle, but one that could only be addressed
when capital funds were available. The Performance-Based
Solution changed the equation for modernizing classrooms.
“In the past we were able to do about two a year,” recalls
Mr. Birster. “Through this project we were able to accelerate
that and literally do 14 classrooms in one summer.”
Classroom upgrades were completed by Siemens
throughout Olney Hall and included:
Building Positive Momentum
The Siemens team completed most of the major
construction work during the summer months to avoid
interfering with classes. Many of the high-profile projects,
such as bathroom upgrades and build-out of smart
classrooms, were complete by the time students returned
for the fall semester. The overall construction schedule
was shortened from 18 months to 12.
The improvements made through the Performance-Based
Solution have significantly enhanced La Salle’s energy and
water conservation efforts:
‒‒ 12.3% annual reduction in electricity
‒‒ Enhancements to temperature controls as part of the
overall mechanical upgrades to Olney Hall
‒‒ 22.4% annual reduction in natural gas
‒‒ Improved space design, including drop ceilings, wall
coverings, new paint, carpeting and whiteboards
‒‒ 28.2% annual reduction in water usage
‒‒ New A/V equipment, including wall-blocking installation
screens
‒‒ Installation of a new electrical systems for lighting,
telephone, data, and to support the new A/V equipment
The smart classrooms, made possible through the
Performance-Based Solution, represented a major upgrade
to La Salle’s learning environment. It’s a change that has
been well received by students and faculty and has
positioned La Salle to maintain strong enrollment levels
well into the future.
‒‒ 52.7% annual reduction in fuel oil usage
The Performance-Based Solution has also made an impact
on La Salle’s budget. For just the first year alone, $760,000
in energy and utility savings has been projected. And,
Siemens helped La Salle apply for an additional $250,000
in energy efficiency rebates from the local utility.
Proactively addressing deferred maintenance challenges
has made a significant impact on La Salle’s operations.
“The benefits we’ve seen go way beyond financial,” states
Mr. Kroh. “We can more efficiently and effectively utilize
our staff that supports the university 24/7. The new
systems make our organization a lot more efficient in
delivering the services we are trying to provide for
students and faculty.”
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Environmental Impact of the Performance-Based Solution at La Salle University
Through improvements to its facilities, each year LaSalle saves:
27.6
MM ft3
of natural gas
3.6
MM kWh
of electricity
Enhancing La Salle’s Image
La Salle’s student body was very supportive of the new
changes. “In Olney Hall, the climate control improvements
alone generated a phenomenal response,” notes Mr. Kroh.
Students also praised how the Performance-Based Solution
has made La Salle a more sustainable campus — something
that students had been pushing. Editorials in the
La Salle Collegian student newspaper gave their support
to the improvements, highlighting the 6.6 million pounds
of greenhouse gas emissions that are being eliminated
annually through energy conservation measures.
18,000
kilogallons of water
The Siemens team has also taken notice of the reception
on campus. “This has been a fun project,” says Mr. Maurer.
“We’ve been able to see results on an immediate basis.
You see the students enjoying class more, the professors
enjoying teaching more. It’s been extremely satisfying.”
With a portion of its deferred maintenance addressed,
La Salle’s administration has begun looking forward to
making additional improvements on campus. “We have
67 facilities we’re responsible for, and with this project
we were not able to able to address all of them,” says
Mr. Kroh. “I think there will be a phase two, and Siemens
will be part of that. They have been so effective working
with us, and they are the kind of organization that builds
confidence with administrators.”
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Siemens Industry, Inc.
Building Technologies Division
1000 Deerfield Parkway
Buffalo Grove, IL 60089
Tel: (847) 215-1000
All rights reserved
© Siemens Industry, Inc.
3/15, Part #153-SBT-065
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