HomeMy WebLinkAbout2006-07-11; City Council; 18645; Complete SDREO Recommended Energy Retrofits17
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CITY OF CARLSBAD - AGENDA BILL
AB# 18,645
MTG. 7/11/06
DEPT. BLD
TITLE:
REQUEST FUNDING TO COMPLETE
SDREO RECOMMENDED ENERGY RETROFITS
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RECOMMENDED ACTION:
Authorize Resolution No. 2006-194. which appropriates $215,052 from City Council
Contingency Fund and authorizes staff to complete energy retrofits proposed by the San
Diego Regional Energy Office and the City Facilities Department.
ITEM EXPLANATION:
The City Council of the City of Carlsbad has a Strategic Goal directed towards
environmental management. In an effort to help achieve this goal, the City applied for and
was selected to participate in an energy efficiency pilot program, which is being jointly
administered by the San Diego Association of Governments (SANDAG), SDG&E, and the
San Diego Regional Energy Office (SDREO). As part of the project, SDREO, a non-
governmental agency that advises local governments on energy conservation topics, has
completed an energy audit of Carlsbad's municipal facilities which has resulted in a list of
recommended retrofits (see Exhibit 1). The City projects completed to date have resulted
in annual energy savings of $28,000 as well as improving lighting quality and improving air
quality, (see SDREO letter - Exhibit 2) If all projects are adopted, the City is projected to
see energy savings total over $80,000 annually through reduced energy costs.
The projected implementation cost of these retrofits is $215,052 (including contingency
costs). Based on the estimated energy savings, the capital costs will be recovered by the
City in approximately 2 years. This represents an annual return on investment of roughly
50%. To date, the City has already secured more than $97,000 in energy rebates and
incentives through this program for work either completed or underway. These rebates are
being deposited into the General Fund as they are received.
OPTIONS FOR FUNDING
Partial funding for these projects will be provided by existing energy incentive program
rebates. These programs are designed to reduce the initial capital cost of the retrofits in
order to provide a more attractive rate of return on energy efficiency investments. The
program's targeted conservation areas are: Heating Ventilating, & Air Conditioning controls,
custom electric measures, compact fluorescent lamps, programmable thermostats, and
lighting controls. The outstanding funding required for capital implementation can be
secured either through local agency funding or through low-interest loans from the California
Energy Commission (CEC). Once loans are secured from the CEC, they are then paid off
by the local agency from the savings generated from the reduced energy consumption. In
Carlsbad's case, staff is recommending the use of available City funds, not loans, to pay for
the retrofits. Currently, eight city facilities have had projects completed or are scheduled for
energy conservation retrofits this next year: Calavera Community Center, City Hall,
Georgina Cole Library, Carlsbad City Library, Faraday Center, Safety Center, Stagecoach
Community Center, and the Carlsbad Municipal Water District building. On average, the
expected payback cycle for the different retrofits is 4.3 years. These project costs were paid
from Public Works contingency accounts, and staff is recommending this contingency fund
PAGE 2
be replenish from City Council contingency,
Considering the financial impacts of the retrofits, the savings potentially available to the City,
and the prospect that the current rebate programs are going to be adjusted by the California
Public Utilities Commission beginning next year, staff recommends that the energy retrofit
projects continue and that City Council appropriate $215,052 from Council Contingency to
assist in this effort.
FISCAL IMPACT:
The initial cost to the City will be $215,052. This investment is projected to be recaptured
over a period of 2 years through the energy savings from reduced consumption. With the
adoption of the 2005-2006 budget, Council appropriated $2.4 million into a contingency
account to use for unanticipated emergencies or unforeseen program needs. Currently,
there is $2.25 million available in this account. Staff is recommending that City Council
authorize and appropriate up to $215,052 from the City Council Contingency Fund to help
implement this project.
EXHIBITS:
1. Resolution No. 2006-194 adopting energy retrofits and appropriating
$215,052 to complete citywide energy retrofits.
2. Itemized Summary of Energy Retrofit Projects
3. Letter Dated April 12, 2006 from SDREO
DEPARTMENT CONTACT: Pat Kelley, (760) 602-2716, pkell@ci.carlsbad.ca.us
1 RESOLUTION NO. 2006-194
2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CARLSBAD, CALIFORNIA, APPROPRIATING FUNDS TO
3 COMPLETE ENERGY RETROFITS.
4
5 WHEREAS, the City of Carlsbad is participating in a energy efficiency pilot program
6 which will be used as a blueprint for City conservation programs in the future; and
7 WHEREAS, the recommended energy retrofits will have an estimated annual savings of
$50,000 and will significantly reduce the amount of energy consumed by City facilities; and
9 WHEREAS, the City is thereby setting a positive example and is further committing
10 itself to be an environmentally sensitive city.
11
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad,
12
California, as follows:13
14 1. That the above recitations are true and correct.
15 2. That the Carlsbad City Council hereby approves the appropriation in the amount of
16 $215,052 to complete the energy retrofits.
17 3. That the Finance Director is authorized to appropriate $215,052 from the City Council's
18 contingency account and place that amount into the appropriate Public Works
19
contingency account.
20
4. That any unused funds shall be returned to the City Council's contingency account.
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PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council
of the City of Carlsbad on the 11th day of July, 2006, by the following vote:
AYES: Council Members Lewis, Hall, Kulchin, Packard, Sigafoose
NOES: None
ABSENT: None
ATTEST:
il \LORRALNE M. WOOD, Ci
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San Diego
(E
8520 Tech Way, Suite 110 • San Diego, CA 92123-1450
Tel: (858) 244-1177-Fax: (858) 244-1178
www.sdenergy.org • info@sdenergy.org
April 12, 2006
Thomas Moore
Superintendent
City of Carlsbad Public Works
405 Oak Avenue
Carlsbad, CA 92008
Dear Tom:
The San Diego Regional Energy Office (SDREO) would like to thank the City of Carlsbad for their active
participation in the Local Government Energy Efficiency Program (LGEEP). Energy efficiency upgrades at
the Stagecoach Community Center, Cole Library, Civic Center, Water District and the Senior Center are
saving a combined 230,000 kWh/yr, reducing peak demand by 35 kW and saving 2,800 therms of gas per
year for a total cost savings of $28,000/yr. Efficiency upgrades not only save precious energy, but also
enhance the quality of the space by improving lighting, reducing noise, and increasing air quality. Energy
savings realized by City of Carlsbad energy projects also helped reduce the amount of the greenhouse gas
carbon dioxide produced by power plants by 212,000 Ibs/yr.
SDREO hopes this is just the start of a productive and efficient relationship. LGEEP is officially closed, but
a new incentive program, the Tax-Exempt Customer Incentive Program (TEC), continues to offer
aggressive incentives for energy-saving projects. TEC includes a technical assistance component that
allows customers to use SDREO energy engineers to identify energy-efficiency projects and to help them
make informed decisions for their facilities. If you have any further questions regarding past projects or are
interested in pursuing more energy-saving opportunities, please don't hesitate to give me a call.
Sincerely,
Jason Knight, CEM
LGEEP Program Manager
(858)244-1179
jason.knight@sdenergy.org
Working for a sustainable energy future.
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1
ENERGY
MANAGEMENT
Energy Management
•Energy Cost Benefit Analysis of
current and future projects
•Council Policy 71-
Energy Management
2
Energy Goal Team
•Pilot Program
•Collaborative Partnerships
•Feasibility Studies
•Goal: Increase energy efficiency
throughout all municipal facilities
Facilities Audit Process
•Partnerships
•Criteria:
1) projected life span
2) energy consumption
3) cost benefit analysis
4) enhance comfort for patrons
•Upfront Costs < Lifetime Savings
3
Audit Results
•Evaluated 14 structures citywide, facilities
ranging from pump stations to community
centers:
- Lighting Retrofits
- Heating Ventilating and Air
Conditioning Systems (HVAC)
- Programmable Thermostats
Received Rebates: $122,102
Projected Savings Over Life: $1,129,431
Retrofit Projects
4
Senior Center, Municipal Water District Office, City Hall, and Stagecoach Community Center
Energy Opportunity
Gross Cost of
Project ($)
Facilities
Department
Estimated
Annual
Dollar
Savings
Simple
Payback
(Years)
ROI
(%)
Estimated
Life of
Retrofits
Total Savings
over life (less
implementation)
4 Lighting Retrofit Totals $45,063 $17,989 4.6 38.5 10.0 $134,827
PROPOSED RETROFIT PROJECTS FOR ENERGY EFFICIENCY
Energy Opportunity
Gross Cost of
Project ($)
Facilities
Department
Estimated
Annual
Dollar
Savings
Simple
Payback
(Years)
ROI
(%)
Estimated
Life of
Retrofit
Projected
Total Savings
Over Life (less
implementation)
HVAC/VFD controls and Duct
work $150,000 $54,300 2.8 36.2 20 $936,000
Lighting Retrofit $19,989 $7,859 2.5 39.3 10 $58,604
TOTALS $169,989 $62,159 2.7 37.8 $994,604
Requested $ $215,052 $80,148 $1,129,431
SAFETY CENTER
CALAVERA COMMUNITY CENTER
RETROFIT PROJECTS
Council Policy No. 71
•Council Goal of Environmental Management,
furthering the commitment towards energy
conservation.
•Internal:
ÆEncourage 25% energy savings on
all municipal projects.
•External:
ÆPromote energy efficiency to the
building community.
5
Fiscal Benefits
•Reduced
operating costs
Building a Sustainable Future!
•Extended
equipment lives
•Enhanced
environmental quality
•Lower
maintenance costs
Future Projects
•Scheduled Equipment Replacements
•New Construction
6
Recommended Council Action…
•Appropriation of additional funding to
complete SDREO retrofits and authorize
Staff to finish citywide retrofits.
•Adopt Council Policy No. 71, which
demonstrates the Council’s commitment to
Energy Management and Conservation.
Questions???