Guaranteed cash flow contracts in public schools: the Washington County Maryland experience
Rob Griffin
Abstract
Rob Griffin
Abstract
The Washington County Maryland experience in contracting for energy savings in the school system began with a self-education program to establish records and procedures on energy use, then proceeded to a study of available technology and ways to avoid energy costs. At the contract negotiation stage, the school board was pleased with its multi-disciplined approach that led to a contract that was understandable and acceptable to the school staff. The agreement calls for a shared-savings relationship that guarantees minimum energy cost avoidance that is higher than the guaranteed maximum annual energy services fee to Johnson Controls, which installed the control systems. The buildings will save energy, yet be more comfortable without a cost for the taxpayers. A lighting management program will provide further savings.
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The Washington County Maryland experience in contracting for energy savings in the school system began with a self-education program to establish records and procedures on energy use, then proceeded to a study of available technology and ways to avoid energy costs. At the contract negotiation stage, the school board was pleased with its multi-disciplined approach that led to a contract that was understandable and acceptable to the school staff. The agreement calls for a shared-savings relationship that guarantees minimum energy cost avoidance that is higher than the guaranteed maximum annual energy services fee to Johnson Controls, which installed the control systems. The buildings will save energy, yet be more comfortable without a cost for the taxpayers. A lighting management program will provide further savings.
Key concepts: Negotiation, Business, Control (management), Cash flow, Energy (signal processing), Finance, Cash, Operations management