Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Lee ding the grounds finding economic and sustainable returns - murphy - usgbc duluth conf - oct 24 - 2012 final
1. LEEDing The Grounds:
Finding Economic & Sustainable Returns
USGBC Building Green Conference
Duluth, MN
October 24, 2012
Richard Murphy Jr.
President & CEO
Murphy Warehouse Company
www.murphywarehouse.com
&
Adjunct Professor of Landscape Architecture
College of Design, U of MN
and
Past Chair
Council of Supply Chain Management Professionals (CSCMP)
Center For Transportation Studies (CTS), U of MN
American Society of Landscape Architects – MN Chapter
E-mail: richard@murphywarehouse.com
Web: www.murphywarehouse.com
2. Perspective
From an Industrial / Logistics View -
Strong Market for LEED Assistance
Presentation Flow
• Why We Went LEED
5 Strategies
• Where Do I Come From
Intro to Murphy
Intro to Logistics World
• Site Level - Green / Sustainable
Practices with ROIs
Native Prairie Planting – why plant & maintain,
economic ROI (return-on-investment) results.
Trees + Prairies Carbon Sequestration
Stormwater Management – how to be green and
economic at the same time.
Solar Power Generation – using state of art
technology, designed and manufactured in Bloomington, MN.
Impact of Solar on Mortgage Finance
LED Lighting & ROI Analysis / Decision –
350,000 sq. ft. case study in Eagan by Murphy
Carbon Neutrality – Murphy’s practices getting very
close at 12.83%
3. Sustainability Certification
LEED Gold & Silver and Energy Star
GOLD Top 1%
2 LEED GOLD & 1 LEED Silver Certified
“Existing” Facilities (GOLD: July 2010 - built in 1994 and
1996; SILVER: Oct 2012 (pending) – built 1999)
Minneapolis Campus Spring 2013
Eagan Campus Spring 2013; Target level
Gold/Platinum
Energy Star Certification
Scored 99 & 98 on 100 point scale (Aug 2010).
Central Ave scored 87 (Jan 2012).
Minneapolis & Eagan review Winter 2012/3.
4. Sustainability Certification
ISO 14001 and SLI Certification
ISO 14001 Certification
Environmental Performance & Management
Certification; expected Oct. 2012.
Sustainable Logistics Initiative
International Warehouse Logistics Association
sustainability certification for the 3PL Logistics
Industry.
5. Why LEED
Why We Went LEED
Especially at the Height of a Recession
Put Another Way:
Why Does Murphy Voluntarily Do Green
Projects/Practices?
5 Part Strategy
1. Leader’s and Family’s Perspective on
Leadership
2. Doing most of the actions anyway so why not
get 3rd party recognition
3. Strategic Business Reasons
4. Green practices are showing positive
economic ROI results
5. Marketing and Branding
6. Why LEED
Why We Went LEED
Leadership Strategy
(Item 1)
• Leader a Landscape Architect
“what can we say…..”
• 4th generation family business
“in for the long haul”
• Family believes it is important to be a
leader - being sustainable is important
and will grow
7. Why LEED
Why We Went LEED Top 50 Green Supply
Business Strategies Chain Partners List
(Items 2 & 3) Murphy has been listed
since list inception 4
years ago
• Doing most of the actions anyway so
why not get 3rd party recognition
Client’s sustainability departments
don’t understand what we have been
up to for years.
They do not readily understand where
the rubber literally hits the pavement.
• We will discuss these under case studies
• Listening and responding to our
client’s “future” needs
Major corporations will have “Green”
initiatives and requirements – esp. once
the recession in finally over!
They need assistance from their
Carriers, 3PL’s, Suppliers, etc. to
contribute to their “greenness”
measures.
They cannot achieve their goals
without the suppliers involvement and
assistance.
8. Why LEED
Why We Went LEED
Economic and
Marketing / Branding Strategies
(Items 4 & 5)
• Green practices showing financial
paybacks & positive ROI
In many cases must be willing to take longer
view than Wall Street ROI period of 2 - 4 yrs.
• Leveraging “Green” brand via
marketing / PR
Murphy gets far more “press” time
than a typical business its size –
esp. at the national level.
Opens up a totally new avenue for marketing
and sales penetration.
9. Why We Went LEED
Branding Impact
World Trade 100
2012 Article Highlighting Murphy
“You can’t buy this kind of exposure”
10. Why LEED
Why We Went LEED
Branding Impact
KARE 11 TV
Richard Interviewed on Simply Science Feature
Discussing Murphy’s Prairies and Stormwater
MN Pollution Control Agency
Small Business Enterprise Newsletter Feature
11. Why We Went LEED
Branding Impact
Business School Case Study on the
Economics of Green
Exploring Stormwater ROI Issue at Murphy
12. Why We Went LEED
Branding Impact
Sierra Club Article
2,000+ word article for
publication late 2012
Writer for the club contacted Richard Murphy Warehouse Company Has Long History with Green Initiatives
based upon web research & networking
and heard we were the company to By Cassandra Hall
contact!
With over a century under its belt, the Murphy Warehouse Company has been a fixture of the Twin
Cities business scene for quite a while—and reinforces its commitment to stick around by investing time
and money into the latest green initiatives for their fleet of warehouses.
The Murphy Warehouse Company started in 1904 as a simple horse and buggy affair, hauling materials
off of paddle boats and barges; at one point they carried materials for building the St. Paul capitol.
Warehouses have always been part of, and grown with, the company. Now on their fourth and fifth
generations of family shareholders, and proud owners of five buildings out of their fleet of twelve
warehouses, the Murphy family continues to serve the Twin Cities area in third-party contract
logistics—that is, distributing people’s products when, how, and to whom they need them shipped. A
number of industries use Murphy Warehouse’s service, including the food, medical supply, paper,
industrial product, recycling, retail, beverage, and building material industries.
It is difficult to think of a thriving business taking the time to consider how their actions are impacting
the environment, especially when environmentally-conscious moves might cost money. On the
contrary, according to President and CEO Richard T. Murphy Jr., not only is Murphy Warehouse
dedicated to doing right by the community and the environment, doing so is not financially impractical
at all and actually makes a lot of business sense. To begin with, being environmentally-conscious is a big
part of listening and responding to clients’ needs for the future.
13. Where From
Where Do I Come From
Supply Chain Logistics / Transportation
Why care About This Industry
Touches everything we do….
% of Economy:
8.9% Logistics
$3.83 per person in U.S.
vs.
17.3% Healthcare
$7.89 per person in U.S.
14. Where From
Where Do I Come From
3PL (3rd Party Logistics) Industry
Warehousing in Logistics
5 Billion Sq. Ft of warehousing in U.S.
Floor area equals a 4 foot walkway from
here to the Moon…!!!
Industry has a massive impact
on the Nation’s landscape
15. Where From
Who is Murphy
Supply Chain Logistics Services / 3PL
We are a Service Company
Warehousing, distribution, transportation, value-added,
fulfillment, international, etc.
We handle products throughout their life-cycle
From raw materials to in-process goods to finished
products to returns for numerous industry segments.
Murphy Family, 4thGeneration (1904)
Square Feet Operated: 2,700,000
SKU’s Controlled: 31,000+
Truck Loads Handled / Year: 120,450
Companies Served:
Fortune 100 to Small Entrepreneurs
Rail Cars Handled / Year: 9,000 (equivalent to 31,500 TL’s) Domestic and Global
Industries Served:
Retail / Catalogue / Consumer
Medical / Health Care
Grocery / Food Processing
Beverage
Plastics
Recreational / Camping
Industrial
Forest Products (Paper/Packaging)
International
3PL – “3rd Party Logistics Services Provider”
16. Where From
Customer Returns Management
Reverse Logistics
What happens to your clothes once they reach
the final end of retail
Clothing – garments shipped overseas for fibers to
be separated and reused.
A local fashion designer has a clothing line made from
re-cycled threads.
Shoes – rubber soles are recycled; fabric used as
compost.
Leather Goods – reprocessed into other leather
items.
Mass Merchant Retail Support
Store Backroom Logistics
Supply of 1500+ Stores with items to run stores
Supplies, training manuals, uniforms. Sales/promo
materials, bags, etc.
Full “pick-pack” operation..
17. Where From
Medical Support Logistics
JIT Replenishment
Surgical Kits
Custom kits for various surgery operations
Customized for teams of Doctors at every hospital.
Kit contains all the items needed for a surgery.
JIT delivery to hospital.
Hospital Supplies
IV Solutions, Needles, Dressings, etc.
Manufacturing Support Logistics
Component Customization, Pick & Sequencing
For Direct Shipment to Manufacturing Line on JIT
18. Inbound Flow - Raw Materials
Global Sourcing –
Domestic Production
Multiple Concepts in Operation
Food Products – Raw, In-Process & Finished
Import From Middle East & elsewhere
Vendor Park (Global Consolidation Point)
Outbound Flow – Finished Goods
North America Distribution
U.S. Distribution
Recreation Industry
Canadian Company Covering
Entire U.S. from One Central DC
Operations Include:
Item Pick / “Pick-Pack”
Case Pick
Pallet pick
Small-to-Large Order
Custom Labeling
Carrier Selection and Management
19. Murphy Rigging & Erecting, Inc.
A Rigging / Millwright Contractor
From Very Precarious Handling….to Very Heavy
Lifts ….to Fragile Works of Art….to Delicate and
Expensive Medical Devices
Clients:
Manufacturers to Printers
Medical to High Tech.
Artists to Classified Military.
20. Sustainability / Green Practices
A Fresh Perspective
Traditional Focus is Inward Looking
Lighting, HVAC, forklift & truck fuel, packaging,
recycling, green purchasing, etc.
Added Focus is Outward Looking - Site Level
Green / Sustainable Practices
In many cases these represent “low-hanging fruit” with short ROIs.
Native Prairie Planting – why plant & maintain,
economic ROI (return-on-investment) results.
Trees + Prairies Carbon Sequestration
Facility Design: Stormwater Management –
how to be green and economic at the same time.
Solar Power Generation – using state of art
technology, designed and manufactured in Bloomington, MN.
Impact of Solar on Mortgage Finance
LED Lighting & ROI Analysis / Decision –
350,000 sq. ft. case study in Eagan by Murphy
Carbon Neutrality – Murphy’s practices getting very close
at 12.83%
–
–
21. Site Level Green
A Question We In Our
Industry Must Ask:
Have you ever given much
thought to your facilities?
Landscape?
Stormwater?
22. Site Level Green
A Question We In Our
Industry Must Ask:
Have you ever given much
thought to your facilities?
Landscape?
Stormwater?
….You Should…!!!
23. Site Level Green
Native Prairie vs. Lawn
Three Questions
1. Is there a cost difference?
2. Is there an environmental difference?
3. Do they look OK?
24. Site Level Green
Northtown Logistics Campus
4700 & 4850 Main St NE, Fridley, MN 55421
Location of cost figures
GOLD Top 1%
Campus Specs:
500,000 sq. ft Warehouse; 6 Acres of Native Prairie; 4.2 Acres of Cut Lawn
Brown areas are native prairie
Photo taken in early spring.
25. Site Level Green
Site: 4700 & 4850 Main St NE, Fridley, MN 55421
Actual data from Murphy expense records
Facility Design
Native Prairie vs. Lawn
Native Prairie vs. Lawn
Is there a cost difference – YES Total Cost Differences
Annual Maintenance Costs
$25,000
Why have manicured lawn entirely surround
large DC & manufacturing facilities? $21,650
Manicured lawn costs 7.3x move to $20,000
maintain than native prairie plants!
Much more environmentally friendly and
Total Costs
sustainable! $15,000
$10,000
$5,000 $4,240
$-
6 acres 4.2 acres
Praire Areas Lawn Areas
26. Site Level Green
Site: 4700 & 4850 Main St NE, Fridley, MN 55421
Actual data from Murphy expense records
Native Prairie vs. Lawn
Is there a cost difference – YES
Native Prairie vs. Lawn
Annual Maintenance Costs Total Cost Differences
If all 10.2 acres is cut lawn: $52,652
$60,000 $6,000
$5,167
$50,000 $5,000
$40,000 $4,000
Cost per Acre
Total Costs
$30,000 $3,000
$20,000 $2,000
$10,000 $1,000
$707
Manicured Lawn costs 7.3x more to
$- $-
maintain than native prairie plants! Praire Areas Lawn Areas If All Cut Lawn
6 acres 4.2 acres 10.2 acres
Total Costs Cost / Acre
27. Site Level Green
Site: 4700 & 4850 Main St NE, Fridley, MN 55421
Actual data from Murphy expense records
Native Prairie vs. Lawn
Is there a cost difference – YES
Annual Maintenance Costs Native Prairie vs. Lawn
Component Costs
Component Cost Differences
$12,500 $12,015
If all
Existing Set-up Cut Lawn
$10,000
Prairie Lawn Lawn $8,630
Areas Areas Areas
Annual Costs 6 acres 4.19 acres 10.19 acres $7,500
Maintenance $ 4,240 $ - $ -
Mowing - 12,015.00 29,220.25
$5,000 $ 4,240
Watering - 8,630.00 20,988.00
Fertilization - 1,005.00 2,444.14
$2,500
Total Cost: $ 4,240 $ 21,650 $ 52,652 $1,005
Cost / Acre.: $ 707 $ 5,167 $ 5,167 $-
Praire Areas 6 acres
Lawn Areas 4.2 acres
28. Prairie Maintenance
Key to success…!!!
Provided since day one by
Prairie Restorations of Princeton, MN
www.prairieresto.com
Services include site visits 4-6 times per
growing season and burning every 3 years.
Brown areas are
Native Prairies
29. Native Prairie vs. Lawn
Is cost difference significant - YES
Economic Impact
“Over the last 16 years we have saved over
$947,428 while being green by planting
native prairies on 2 logistics Campuses!!”
30. Site Level Green
Site: 4700 & 4850 Main St NE, Fridley, MN 55421
Actual data from Murphy expense records
Native Prairie vs. Lawn
Is there a cost difference – YES
ROI of Prairie vs. Lawn Installation
Install Cost Install Cost
6 Acres vs. Prairie
Prairie $ 34,320 -
Seeded Lawn* $ 48,000 1.4x
Sod* $ 111,000 3.3x
* Does not include $30,000+ cost of sprinkler system.
Maint. Cost
6 Acres
Lawn: $ 31,002
Prairie Install Cost $ 34,320 1.28 Years
Prairie: $ 4,240 Savings per Year $ 26,762
of Prairie vs. Lawn
Cost Difference: $ 26,762
31. Site Level Green
Native Prairie vs. Lawn
Is there an environmental difference - YES
Native plant materials selection.
No watering required, or significantly less in dryer climates.
No fertilization required.
Roots are deep and assist stormwater infiltration.
Large root systems sequester much more carbon.
Lawn Grass:
1-3 inches
Prairie Grass:
3-15 feet
32. Site Level Green
Native Prairies & Trees
Environmental Metrics
Carbon Sequestration Annual Benefits
14 Acres of Native Prairie
24.93 MtCO2e/Year
732 Trees
275 Oaks, 274 Maples, 183 Spruce/Pines
117.1 MtCO2e/Year
Carbon Sequestered by Murphy’s
Trees and Prairies over 14 years:
5,009,961 pounds
33. Site Level Green
Native Prairie vs. Lawn
Do they look OK?
Neighbors love it…!!!
We run 37,000 trucks through
the neighborhood yet the #1
thing I hear is…...“oh, you’re
the guys with all the pretty
flowers on Main St.”
Start-up Issue….
Prairie plants often do not meet city
lawn height ordinances!
Needed a variance in 1994 with 1st one.
Former Landscape Architecture student
of mine was Fridley’s Assistant City
Planner and understood what we
wanted to achieve and allowed us to
proceed - the rest is history!
Photos show native prairies at Murphy’s Campuses -
14 acres total at four facilities.
Prairies installed in 1994, 1996, 1999 and 2008.
34. Site Level Green
Edge
Key Design Element
Much like a picture frame gives order
to a busy painting, a cut lawn edge
does the same for a prairie.
35. Edge
Key Design Element
Without an edge prairies
are very, very rough looking.
Note flowing line (“edge”)
between prairie and lawn
Note straight line (“edge”)
Note flowing line / edge
between prairie & lawn
36. Site Level Green
Native Prairie vs. Lawn
Do they look OK?
Not only do neighbors love them
We’ve been robbed twice!
One 4th of July a van was seen pulling away
from the property with plants in back. Police
arrested the individual.
Contacted Ron Bowen of Prairie Restorations
for a value per police request he responded:
“they’re priceless!”
These were 7 year old plants with deep roots.
Summer 2009 an elderly couple were seen
digging up plants. Unfortunately not caught.
37. Site Level Green
Facility Design
Stormwater Regulation Impacts
Changing facility design & management
Traditional Focus:
get stormwater off-site fast
Today’s Focus:
handle stormwater onsite and reuse
Few outside profession realize
growing impact…!!!
EPA mandated cities to control their
stormwater – quantity & quality
Regulations required cities to comply with no
additional Federal Funds, thus local fees.
Stormwater fees growing
2000+ cities to date nationwide.
Minneapolis - $3,400 per acre (i.e. $0.12 per sq. ft.
of warehouse). Most DC/warehouses use 20+
acres; cost is $68,000+/yr.
38. Site Level Green
Minneapolis Logistics Campus
Stormwater Project
701 24th Ave SE, 55419
• 22 Acres, highly urban site
• Buildings dating from 1904 – 1980’s
• 24/7 busy logistics operation.
• 95% impervious before project
58% bldg., 37% pavement, 5% green
New suburban regulations often
require 25-40% green coverage
95% of Stormwater ran off site.
Kasota / Rollins Ave.
24th Ave SE
still combined storm
/ sanitary line.
Goal #1 – reduce or eliminate annual
stormwater fee of $68,000.
Goal #2 – we are here for the long haul,
therefore, be a good corporate citizen
and do the right thing.
Goal #3 – leverage environmental
leadership in our strategy.
39. Site Level Green
Minneapolis Logistics Campus
Stormwater Project
Two Solutions Explored
1. Underground Storage
Very expensive system – extra $300,000 for our
project & added 5 more years to ROI.
2. Permeable Pavements - Concrete, Asphalt
& Pavers
Great idea – per respective industry associations:
not capable today of withstanding the constant
grinding & shear stress from truck’s turning while
pulling back into docks.
40. Minneapolis Logistics Campus
Stormwater Project
Basic Water Flow Design
Key:
Main Retention Pond
Bio Retention Basins
Surface and underground
pipe flow
Underground only flow
Overflow release to area
storm system
Prairie grass infiltration area
Key Person: Rebecca Kluckhohn, P.E.
Email: rkluckhohn@wenck.com
41. Minneapolis Logistics Campus
Stormwater Project
Net Result
100% stormwater fee credit
$68,000 annual savings
50% federal depreciation deduction*
* NOTE: not known till after completion.
NOTE: Original design generated 78%
stormwater fee credit.
“As-built” drawings = 102% net credit.
Site: 22 acres
% impervious: 95%
Project Cost
(Design + Const.) $ 580,000
Annual Storm water Fee $ 68,000
Payback in Years: 8.53
+ Federal Stimulus Package
Immediate 50% Depreciation: $ 290,000
7.0 yrs after Fed Credit & Tax Impact
8.5 yrs simple pre-tax basis
44. Site Level Green
Major Retention Basin
NW Corner of Site
Photos Show 2nd Year Growth
Important to recognize that native
prairie plantings will take 3 years to
show maturity. One must be a bit
patient.
45. Site Level Green
Facility Design
Gray + Green Infrastructure
Cities starting to treat & regulate street trees
like sewers and roads.
To handle urban heat, stormwater, and improve real
estate values thus higher property tax values.
Only a matter of time before they look to private
property to help in this cause.
Gray Infrastructure Green Infrastructure
46. Site Level Green
Green Urban Infrastructure
Why Trees Will Be In Your Future
Trees and Stormwater Management
Mature trees hold nearly an acre-foot
of stormwater…!!!
Mature tree’s leaves & branches hold
80% of 1” rain in 24 hrs. In Minneapolis
this represents 90% of all storms!
Reducing stormwater prolongs life of
sewers and pipes. Cities today can’t
afford to replace current old and
wearing out systems!
47. Site Level Green
Urban “Heat Island”
Impacts From Trees
Urban Infrastructure
New planting technologies allow more:
Tree root growth - thus bigger trees
Stormwater - holding & recycling
Gray Infrastructure - reducing stormwater
prolongs life of sewers and pipes. Cities today
can’t afford to replace current old and wearing
out systems
Shade - more due to bigger tree growth reducing
urban heat island impact
Increased property values
Silva Cell example in Minneapolis (http://www.deeproot.com)
Technique readily useable on Logistics / DC Campuses
48. Site Level Green
Energy Creation - Solar Power
Roofs - Large available flat areas “just sit there”
LEED Credit Points….
Commercial solutions include:
“Solar Energy Service Provider” - 100% responsibility to design,
build, own and operate the asset - including all upfront purchase
and installation costs….challenge in Midwest – utility rates too
low for economic models!!!
….to solutions where building owner owns the solar assets and
provider merely design-builds the system.
Staples Store, CA
2 Solar
Providers:
49. Site Level Green
Energy Creation
Solar Power
Myth: Solar PV better in hotter climates.
Fact: Solar PVs are more efficient the colder they get.
Minnesota’s climate is perfect!
50. Site Level Green
Energy Creation By Murphy
4th Largest Solar Energy Producer in MN
Ikea is #1 & other in top 10 are government entities
Murphy installed 8 systems 2010 - 2012
320KW total power
5 buildings
Fridley Logistics Campus: produces 50%
of energy use on 2% of roof…!!! 2 LEED Gold site
5 Major Innovations (state of art in world today):
Run at low voltage – increases efficiency and
solves fire department issues with live systems; system
can be turned off when fire dept. shows up for fire!
Solved “shadow problem” – shading a portion
of panel now doesn’t shut system down!
Can Utilize 3M Solar Reflector Tech – only
solar manufacturer who can utilize this boasting power.
Smart Panel Technology – panels only produce
power when asked by control device.
No Roof Penetrations – held in place by weight
array (vs. attaching to roof with potential roof leaks!)
51. Site Level Green
Energy Creation
ROI of Solar Power
1st Three Systems in 2010
Project Cost for 120KW power: $1,000,000
• Normal, non grant supported solar ROI
period is 20-25 years.
• Murphy’s project ROI period is 4 years…!!!
4 Grants at work here:
1. Xcel Energy Grant (Utility Company)
2. Federal Stimulus
3. State Stimulus
4. State special grant for using MN
solar tech.
Murphy paid $90,000 (of $1M system cost)
3M Solar Reflector Film
tenKsolar Panel
52. Energy Creation 40 KW Solar PV
2012 Case Study in Eagan
350,000 sq. ft. Building
Built 1978-80
Empty for 8 years
2012 Murphy purchase
$3.8M in upgrades
• Lighting
• Fire System
• HVAC
• Dock equip.
• New access road
• Re-establish rail
• 90 trees
• 1.5 ac. Native prairie
LEED Platinum / Gold target
40 KW array - Nov. 2012 install
53. Site Level Green
Energy Creation Jon Kramer
NABCEP certified PV installer
2012 Case Study in Eagan Sundial Solar
office phone: 612-926-8506
40 KW Solar PV Array cell phone: 240-463-3688
Dakota Electric vs. Xcel ROI website: www.sundialsolarenergy.com
Dakota Electric Xcel
54. Site Level Green
Energy Creation
Eagan ROI of Solar Power
Why Install with 11 Year ROI?
SBA Mortgage Loan Impact
• Original finance goal was to secure an 80-20
loan structure (80% loan with 20% Murphy cash
investment).
Market is closer to 70:30 to 75:25 structures
• Explored 5 different banks, 1 REIT, and the
insurance market.
• Two of the banks suggested we explore SBA
track as part of total mortgage package.
• Because Murphy, plus others in our
industry, have large buildings with few
employees per sq. ft. we never meet SBA
criteria. This time it was no different.
• HOWEVER…..when the SBA saw on our
application that we are installing solar power
(i.e. renewable energy) we automatically
became eligible!
• Result: 95:5 structure….unheard of today!!!
95% is mortgage with only 5% Murphy cash
Murphy Minneapolis Logistics Campus
1 of 4 solar arrays onsite
55. Energy Creation
Eagan ROI of Solar Power
SBA Loan PR Benefits From
Murphy’s Education Effort
National + Local Coverage
DC Velocity Dec. 2012 Issue
Mitch Mac Donald Byline
Will highlight the SBA loan to Murphy and how
it represents the 1st time many have heard of
direct benefits for being green esp. for mid-
market sized companies.
The impetus for this article came from Richard’s
sending Mitch a note re this interesting
situation. Mitch also highlighted Murphy in
2010 as seen below – the 1st time he has ever
used a company name in his byline title!!!
56. Site Level Green
Lawn Irrigation Sustainability
Eagan Site
Smart Management Tool at Eagan
Plant Need + Soil Moisture Level + Rain
Forecasting & Adjustment
Soil moisture sensors
Weather adjusted irrigation
24/7 automatic site monitoring
Internet mgmt.
Est’ed ROI: 3 years
57. Site Level Green
Lighting
Since 1980’s Have Been
Changing Fixtures w New Tech
ROI of 1.8 Years Typical
Minneapolis Site: 3x so far since 80’s
Fridley Central: new bldg. in 1999
and changed fixtures after 5 years
All facilities now T-8
58. Existing
LED Lighting
Leading Edge in Mid-West For
Facilities 100,000 sq. ft. +
Murphy Eagan
350,000 sq. ft. in size
Built in late1970’s
Old high pressure sodium
Upgrade options: T-5 or LED
Proposed
Vs.
59. Site Level Green
LED Lighting
Why?
Multiple Benefits:
Long-term energy use reduction
Long-term maintenance cost reduction
Fluorescent lighting needs the bulbs
replaced every 2.5 - 3 years.
LED fixtures will not be touched for 40-
50,000 hrs. or 20+ years!
LEED / Energy Star impacts
PR Leverage value in corporate strategy ROI
Install Energy Cost Savings Period
Fixture KW Cost * per Year per Year Years
HP Sodium 223.16 $ - $ 64,937 $ - n.a.
Existing
T-5 118.56 $ 210,000 $ 23,576 $ 41,360 4.1
LED 89.38 $ 445,000 $ 17,773 $ 47,164 7.8 **
* Includes sensors on each fixture.
** Savings from no T-5 bulb replacement & disposal every
3 years not included. Dakota est'ed utility credit included.
60. GHG Emissions Measurement
Typ. Modern DC
vs. Murphy Northtown DC
Metric Tons of CO2e per Year
Toward Carbon Neutrality 4000 3873
Murphy Northtown Fridley Facilities 3500
Metric Tons of CO2e per Year
3000
500,000 sq. ft.
2500
12.83% carbon emission 2000
vs. standard warehouse ** 1500
1000 724
500
Murphy Warehouse - Moving Toward Carbon Nuetrality 0
Typ. Warehouse / Murphy
DC Warehouse Bldg.
Metric Tons of Only
GHG Emissions for Warehouses CO2e per Year
100% Typical GHG Emissions (460,000 sq.ft warehouse) 3873 GHG Emissions Measurement
Murphy Northtown Campus
Actual GHG Emissions (Murphy's actual same size bldg.) 724 Metric Tons of CO2e per Year
Emissions savings due to energy efficiency measures 3149 750 724
Additional Emissions Reduction Measures 650
On-site Carbon Sequestration in trees and prairie 142
550
Metric Tons of CO2e per Year
Altnerative energy generation (Solar PV power) 85 497
Total Additional GHG Emission Reduction 227 450
Toward Carbon Nuetrality 350
Actual Murphy Bldg. GHG Emissions 724
250
Total Murphy Additional GHG Emission Reduction 227
12.8% Net GHG Emissions (for a 406,000 sq. ft. warehouse) 497 150
** Source: US EPA / US DOE Energy Star Program; 3873 GHG reflects an 50
average warehouse with score of 50. Murphy bldg’s scored 99 & 98
-50 -85
respectively out-of-possible 100 points, thus placing them in top 1% category. -142
-150 Murphy Tress & Solar Power Net Murphy
Warehouse Prairies GHG GHG Campus GHG
Bldg Only Sequestration Reduction
61. Site Level Green
Raising The Roof In Eagan
To 32’ - The Modern Building Standard
Going to 32’ Would Increase Building Value
Geographic Location Lends Positive Support
Reviewed and put on hold for now due to budget Experts in field:
http://www.rooflifters.com/
Current Bldg. heights are 20 & 22’
Raising roof is approx’ly $8 / sq. ft. ($2.8M)
Cheaper than new construction
Designing new fire sprinkler system and lighting
to work with few modifications at 32’
Will re-review / consider over the next decade.
Photos: Albertson 600,000 sq. ft. DC Chicago – 18’ up
to 38’
62. Why does Murphy
voluntarily do green In the long run green practices are
projects and practices? showing financial paybacks.
But, in some cases you must be
Their leader is a Landscape Architect – willing to take the longer term
“what can we say” view.
As a 4th generation family business we Murphy’s stormwater project ROI period:
7.0 years (after Fed credit & taxes).
are in for the long haul. Murphy’s native prairies ROI period:
We believe its important to be a leader - less than 1.2 years
being green is important today and Murphy’s traditional lighting retrofit ROI
will grow more so soon. period: 0.8 - 1.5 years.
Murphy’s Solar Energy Projects ROI:
Major corporations (our customers) have
4 years. (w/out Subsidies: 20+ Years.)
/ will have within a few years “Green”
Feasibility and short ROI period
Initiatives that require our result of four major support programs:
participation. Federal, State (Regular + MN
They need assistance from their Carriers, Manufactured Equip.) and Xcel grant.
3PL’s, Suppliers, etc. to contribute to
their “greenness” measures.
Typ. Wall Street Firm ROI period:
2 - 3 years, maybe 4. – making some
green practices hard for Fortune 500
companies to approve during recession.
63. LEEDing The Grounds:
Finding Economic & Sustainable Returns
USGBC Building Green Conference
Duluth, MN
October 24, 2012
Richard Murphy Jr.
President & CEO
Murphy Warehouse Company
www.murphywarehouse.com
&
Adjunct Professor of Landscape Architecture
College of Design, U of MN
and
Past Chair
Council of Supply Chain Management Professionals (CSCMP)
Center For Transportation Studies (CTS), U of MN
American Society of Landscape Architects – MN Chapter
E-mail: richard@murphywarehouse.com
Web: www.murphywarehouse.com