IT Governance Business Case Utility Bill and Energy Management Software General Services Department
Background City Council adopted a Carbon Neutrality and Renewable Energy Action Plan that commits the City to: • Achieve carbon neutrality in City operations by 2040 • Power our organization with 100% renewable energy by 2050 A critical element of this plan is to maximize energy efficiency in City buildings and operations.
Current Business Problem We lack a software solution that would allow us to: • Identify
cost-saving opportunities that eliminate waste and reduce carbon emissions in City buildings
• Understand • Quickly
energy consumption trends over time
identify unusual increases in energy consumption
• Measure
ROI on energy-saving capital projects and operations optimizations
• Create
reports and graphs visualizing energy savings, carbon emission savings, and cost savings
Current Pain Points •
Difficult to see cost-saving opportunities and correct energy maintenance issues quickly
•
Difficult to track and compare historical usage and measure progress towards goal
•
Difficult to input utility bill information
•
Difficult to create reports to aid data-driven energy management decision-making and measure ROI
Desired Business Value City of Durham’s Strategic Plan Goal: Sustainable, Natural, and Built Environment Initiative: City Council adopted Carbon Neutrality and Renewable Energy Action Plan The City of Durham will benchmark energy usage for City facilities and procure a comprehensive data management platform (software or consultancy) consistent with City performance measure/data tracking methodology.
Future State Benefits •
The solution will provide General Services with the ability to track and analyze monthly energy use in the City’s buildings.
•
The solution will be able to identify unusual energy spikes and allow General Services to take corrective action to address them quickly.
•
The solution will be able to identify opportunities to maximize energy efficiency and cost savings in in all City buildings
•
The solution will be able will be able to input and analyze the City’s current and past utility data.
Recommended Solution and Analysis
Recommended Solution: Issue an RFP to select a solution
Description
Pros
Cons
Issue an RFP to select a software solution to effectively capture and analyze the city’s utility data to achieve City Council adopted Carbon Neutrality and Renewable Energy goals.
•
Provides the future benefits as stated on slide six.
•
N/A
Recommended Solution Issue an RFP: Project Financial Estimate COST ESTIMATES Description
FUNDING Annual Run Costs (Hours)/ KTLO
Year 1 Costs (Hours)
Departmental Funding Amount:
$0
Labor $ (Hours) Internal TS:
45 hours
5 hours
20 hours
0 hours
5 hours
5 hours
Project One Time Costs
$47,201
290 hours
0 hours
Project Run Costs (External)
$40,000
Internal Department: General Services
296 hours
24 hours
$87,201
External: Professional Services
$47,201
$0
*Total Project Funding Requested for Year 1 *Recurring Costs
$0
$0
$40,000
$40,000
$0
$0
Business Analysis TS Services TS PMO
Funding Requested (Y/N):
Non-Labor $ Hardware: Software: Other:
*Total Project Funding Requested (External), includes External Year 1 Run Costs and Non-Labor
Y
$40,000
Risk Identification Description of Risk
Risk Impact
Mitigated (Y/N)
Contingency(Y/N)
Poor execution
Low
Yes
No
Project team turnover
High
No
Yes
Vendor performance
Low
No
Yes
Cyber Security
Low
Yes
No
Mitigation Risk (Costs) •
No cost
Contingency Risk (Costs) •
No cost
Our Ask We are asking the IT Governance Steering Committee to approve the business case for the General Services to obtain a solution for the Utility Bill and Energy management software utilizing the RFP process to be submitted to the City Manager for approval and funding utilizing the BMS department budgeting process.