Implementing Effective Energy O&M Strategies on a Limited Budget $500M & 46% Saved: Implementing Effective Energy O&M Strategies on a Limited Budget John Mikullitz National Director, Energy Aramark John Tillotson Senior Manager, O&M Aramark

Energy Program Roadmap Overview Executional Framework Energy Focused O&M Best Practices Program Evolution Reactive to Preventive Maintenance Transformation Service Contract Management Program Achievements-To-Date

Overview: New York State Office of Mental Health (OMH) 1843: Opening of First hospital (Utica) Third largest New York State Agency 26 Campuses; 545 Buildings Serves > 700,000 individuals / year Large central heating and chiller plants $80 million utility budget Utica Psychiatric Center: Old Main

Overview: Program Goals and Achievements Year & Executive Order Required Energy Reduction Actual Performance Results 1990: EO #132 20% by 2000 57% Reduction (7 years ahead of schedule) 2000: EO #111 35% by 2010 37% EUI Reduction 2010: EO #188 20% by 2020 9% Reduction to Date

Executional Framework Six Energy Sub-System Framework

Energy Focused O&M Best Practices Procurement Least Cost Fuel Lighting (T-8) Generation Off Is Best! Central Heating Plant Optimization Distribution Match Supply and Demand End Use Eliminate Simultaneous Heating / Cooling Excess Air BAS Optimization

Program Evolution: Reactive to Preventive Maintenance Transformation Objectives: 2005: Develop structured PM Program to sustain savings Extend equipment life / reduce capital replacement Reduce Repair Costs Improve building conditions (comfort & indoor air quality) Ensure individual system’s operate efficiently Document and validate in-house or contractor activities Transition maintenance activities from reactive to preventive

Program Evolution: Service Contract Management Program - Overview Program Developed: 2007 153 service contracts serving 28 facilities Contract Types Building Management Systems Heating, Ventilation and Air Conditioning Systems Boilers Chiller and Refrigeration Systems Generators Elevators Total Contract Value: $72.7 Million

Total Cost Reduction of $21,110,094 Program Evolution: Service Contract Management Program Overview: Summary of Achievements in 10 Years Total Cost Reduction of $21,110,094 Time and Materials Improvement Conversion of Warranty Contracts to PM Type Negotiation and Strategy Support

Service Contract Management: 5 Step Process Program Preparation PM Task & Frequency Development Service Contract: Bid Preparation Service Contract: Bid Review Service Contract: Ongoing Management

Step 1 of 5: Program Preparation Asset Inventory Skills and time available Define Contract Type

Step 2 of 5: PM Task & Frequency Development Review manufacturer’s operations & maintenance manuals Research available standards and requirements ASHRAE, NFPA, Joint Commission Determine tasks capable of being performed in-house Perform a tiered analysis of facility equipment Write preventive maintenance program (to be entered into CMMS) Validate that tasks are site specific

Step 3 of 5: Service Contract: Bid Preparation Collaborate with procurement and legal for inclusive terms and conditions Develop unit cost bid form for equipment and tasks Develop budget for equipment repairs Develop a qualified bidders list Conduct bid walk-through for contractor understanding of requirements Include terms to define responsibilities

Step 4 of 5: Service Contract: Bid Review Review contractor’s bids for compliance with procurement rules Review unit costs for reasonableness of cost Negotiate unit costs Develop a budget for equipment repairs Conduct contractor qualification reviews and reference checks

Step 5 of 5: Service Contract: Ongoing Management Conduct a contract kickoff meeting Create a service ticket to be completed and verified prior to payment Conduct monthly contractor meetings to verify compliance to quality and schedule Review invoices for accuracy Worst Case: Document deficiencies to support contract rebid

Program Has Generated More than $500 Million Dollars in Savings! Overall Program Achievements to Date Increase Equipment Life & Minimize Failure Reduce capital replacement budget Fewer client comfort complaints Receive quality service at the right price Reduce Energy Usage by 46% Program Has Generated More than $500 Million Dollars in Savings!

QUESTIONS John Mikullitz; National Director, Energy Aramark Engineering and Asset Solutions P: 518.433.0771 Ext 224 E: mikullitz-john@aramark.com John Tillotson; Senior Manager, O&M Aramark Engineering and Asset Solutions P: 845.653.6318 E: tillotson-john@aramark.com