Aras na Cluaine

Electrical Savings Case Study

Est. €20k savings per annum

Caveat

By no stretch of the imagination have we done everything right, nor do we necessarily get the best price for

everything, so happy to hear from people who have better deals

- Rules to work by- Electrical Project - €20k/annum- Waste Management - €12k/annum- Insurance - € its manageable - Lifts - €10k/annum- Other projects

Agenda

Rule 1: If your not in charge of the finances, your not in charge of the

management companyGet a copy of the articles of association, find out how you appoint a director, call an AGM or force an EGM - Appoint directors – immediately take

control of finances

Rule 2: If you choose to appoint a management

company. Be specific in what you require of them.

Rule 3: Remain in direct control of finances and

appoint and vet the various contractors and suppliers

Rule 4: Don’t penny pinch, in the longrun its better to work with experts, than

people that can do a cheap job.

Rule 5: Find yourself a very good caretaker. Especially if

you are managing the complex directly.

March 14, 2016

Choose your partners wisely . . .

For any significant electrical infrastructure project choose your partners wisely, we were

very lucky to be working with people we trusted.

March 14, 2016

2011 Payments

(Nov 10 - Oct 11)

2012 Payments

(Nov 10 - Oct 11)

2013 Budget Est.

ESB €48,231 €42,544 ~€42,000

Greenstar - Waste €27,484 €19,897 ~€22,000

Gates & additional metal work €29,075 €3,953 ~€4000

Caretakers €31,000 €33,300 ~€38,000

General Maintenance & Incidentals €16,648 €20,200 ~€25,000

Lift - €12,000 ~€5000

Electrical & Fire System €8,718 €7,269 ~€9,000

Legal & Experts €3,000 €3,000 ~€5000

Accounts & Bank Fees €6,811 €2,674 ~€4000

Plumbing & Fire Hoses €5,395 €3000 ~€2000

Insurance €12997.15 €26,194.3 €26,194.3

Total ~€191,000 ~€172,000 ~€184,000

Actual spend 2011 & 2012 Budget Est for 2013

March 14, 2016

Step 1: Understand where spend is before action

Estimate of where our spend was goingCommon Areas – €24k

Basement - €20kCourtyard Areas - €6k

Emergency Exit Lighting - €6k Pump Rooms - €500 est

Lifts - €800 estAlarms - negligible

Tools available online

March 14, 2016

So reduce costs immediately where you can find them – 2011 cost €48k

- 1 fluorescent tube in each fitting 55W/fitting –negligible decrease in lighting

- Installed motion sensors where appropriate 24hrs/day down to perhaps 4hrs/day

- Installed light sensors where appropriate24hrs/day down to 12hrs/day

Savings ~€6k

March 14, 2016

Our largest infrastructural project ever attempted

Our Goal: Replace 28W 2D fittings (No.~450) across 3 blocks.

The Problem: Est Cost €75k, No access to finance, no funds available.

The Why: Current fittings were expiring and were extremely costly to run, our

emergency lighting was shot and dim lighting led to antisocial behaviour.

March 14, 2016

The why financially speaking

1x28W 2D fitting uses 28W x 24hrs x 365days /1000W = 245 KW

hrs/year245x22c/unit= €54/year/light fitting

Costing the management Company €24k/year

March 14, 2016

The why financially speaking

1x3W 2D fitting uses 3W x 24hrs x 365days /1000W = 26 KW hrs/year

26x22c/unit= €5.8/year/light fitting

Costing the management Company €2.6k*/year

* Note: Emergency lighting also needed to be replaced around 1 in every 2.5 lights required an emergency light which use about 2W/hr

March 14, 2016

Business Cases

Financial business case was relatively strong 3.5-5 year breakeven

Humanitarian business case was even stronger- Tenants living with very little light in common areas

- Anti Social Issues due to lack of light- Safety Concerns in case of fire or electrical cut,

emergency lighting was ineffective

March 14, 2016

Making it happen

A nice business case is all well and good but if you cant get the finance, its not going to happen.

March 14, 2016

The Problem

If I was a normal business, I would simply go to my bank with my business case and if I was credit worthy I

would receive the finance to get the project done.

Management companies by their articles of association are not allowed to get into debt and even

if they were banks wont lend to them

March 14, 2016

Points to remember if planning on applying for SEAI Grant

35% funding level

You need to have full funds available for project before they provide an offer letter

You need to fully pay all contractors with proof of funds in contractors bank account before funds will be

released

March 14, 2016

How did we finance it

With a great deal of difficulty1. We offered a 10% discount to owners who paid in full in advance

before the 1st January each year2. We cut back on everything non essential – We fired our

managing agent 3. We postponed paying certain bills No. 1 Electricity

4. We split the project into 2, which meant we could deliver 70% of the project to draw down our funding and then proceed with stage

2.5. By the skin of our teeth and with a lot of luck and understanding

from our suppliers we managed to pull it off.

~€30,000

March 14, 2016

Points to remember if planning on applying for SEAI Grant

Assessment of Projects by SEAI for 2016

1. Value for Money

2. Partnership

3. Innovation and technical application

4. Quality and Delivery

March 14, 2016

Points to remember if planning on applying for SEAI Grant

b) Partnership The project’s ability to inform longer term initiatives for activating energy retrofit investment is a chief

concern. In view of this, each project will be assessed in terms of its collaborative delivery models, including the associated

contractual mechanisms based on the principles of partnership and devolved delivery (involving community groups, existing

networks, clubs, etc.). The number of partners and the innovation of the collaboration will also be considered.

http://www.seai.ie/Grants/Better_Energy_Communities/BEC-Application-Guide-2016.pdf

March 14, 2016

Waste Management

GreenBins - €7.26Black Bins - €19.28

+ VAT 13.5%

We were down at €5 & €16.50 so we need to renegotiate again

We installed a bin crusher last year which has kept our cost stable even though they have increased significantly.

2nd hand bin crushers was €1,500, we built a secure room for it.

March 14, 2016

Lifts

We use Liffey Lifts, whom we cant say enough good things about, they have stuck with us and have been

helpful in managing us through tuff times. We pay per callout and we have basic annual agreement with

them, for 6 lifts agreement is ~€4000, we find that we spend probably about €1500+/lift per year

March 14, 2016

Insurance

We use Travellers via a broker, we have found them helpful, as in they were willing to insure us when

nobody else was.

We have had issues with our roof recently and there is some contention over this. So I will need to update

you when we come out the far side.