Loading...
HomeMy WebLinkAbout2006-07-11; City Council; 18645; Complete SDREO Recommended Energy Retrofits17 O Q. O ^< O CITY OF CARLSBAD - AGENDA BILL AB# 18,645 MTG. 7/11/06 DEPT. BLD TITLE: REQUEST FUNDING TO COMPLETE SDREO RECOMMENDED ENERGY RETROFITS DEPT. HD. VK yyF*~~ CITY ATTY Jfc/ CITYMGR ^S> 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. 22 23 24 25 26 27 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 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 (SEAL) §IDa: Q UJ Q LU OOUJa: oUJa:Q Ill111 15 o> £ ° 1 1^™ "— 2 "- ~ E aj i_._ «S -g "S5 — ' CK UJ 2 E= (0c £« ?0 SC 0. §£ • "o 1? °- m aE ">, CD CO £ it- ra 1 J2 c •J c ° > tf) ^ COUJ (_ I_ «-^m |«» 2 B ® 111 ** TJss I 33!i:£ E s3 « S 1 g°0 M- ° ^» ** <5 g 1 1in ~> o «U) O to Q. u °" ^ 2» c3 Oa 0) cucLU EFFICIENCYNERGYLU U.oLL (O1-PROJECl- u.Oa: HLU Q UJ UJ a.SO0 CENTERgim o CNCD <& O H COLUCD 00 00ao m o o • 00co com T— co oo" 1 CN 1OH c .cO)-I S & i3 iI CN N-" 0 1— COLU CO CO CNCD CO T- T— COco COco_ S i 1OH a> ^O) -i 1 O T—LO 0 1— COLU CO ai CO o ^ CN H coCO a" in o_ S o" 1OH TO -*-<.cTO -1 DCtu IMMUNITY CENTOO 1 §i M% a>co in e& 0 T— --i^ ^LLU ^fLU 1 1 1 O i CNCD CO T- o>inoo C/J m CD CM" mcoco_ o> I TO £ TO -1 FFICIENCYUJ OttUJzUJa Ou. (0 ROJECTa. 1— LL Oa^_ UJa:aUJ COo oKa. ii CM CNO CD"CDO5 0CN ~~. l"L ^LU ^LU 1 1 1 O _l co m••s- <M CM OO COa g oT CNCN0o"co $150,000COo •t ^^II 3 r x K MIINlTYCENfEi 5 O5co m" 0 T- -^ i^ ^LLU ^f UJ 1 1 1 O — i CNCO CO T- <3>in00 co m CM"<^ coco. O) T- 1 1 TO £ TO -1 N co" *" O om o CM OO Oon S cTco •>*m $215,052OTALSt- •,.•. '=* "%, eo in in0) o t) 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. u 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???