HomeMy WebLinkAbout13.F.2.a. Lighting Upgrade for Community Center
J 3. F. ~ · cU.
City of Shakopee
MEMORANDUM
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Kris Wilson, Assistant City Administrato~~0
SUBJECT: Lighting Upgrade for Community Center
DATE: November 14,2008
Introduction
The City Council is asked to authorize a lighting upgrade project at the Community Center in
order to reduce the facility's energy consumption and improve the amount and quality of light.
Background
The existing lighting inside the Community Center gym, fitness room and ice arena is extremely
inefficient from an energy standpoint. This has been identified for us in an energy audit
provided by SPUC, as well as in the work recently completed for us by Harris Companies.
Harris Companies proposed replacing the lighting and installing motion sensors on the gym
lighting as part of their bundled energy solutions package, at a cost of $81 ,911. Recreation
Supervisor Josh Barrick has also collected quotes from two other vendors - North American
Energy Group and Premier Lighting. Staff is recommending that Council authorize proceeding
with the proposal from North American Energy Group as it has all of the desired elements at the
most favorable price.
The proposed upgrade would provide one to one replacement ofthe current metal halide light
fixtures in each space. The new fixtures would use a mixture of fluorescent T -5 and T -8 bulbs,
depending on the air temperature and the ceiling height of the space where they are being
installed. In the gym and fitness area the new lighting will reduce energy usage by 28%,
resulting in an estimated annual energy savings of$2,357.27. In the ice arena, the proposed
lighting would reduce energy usage by 30%, resulting in an estimated annual energy savings of
$2,825.26.
The lights come with a 5 year ballast warranty and a 3 year (or 13,000 hour) lamp warranty. The
new lamps also have a longer anticipated lifespan and a lower purchase price, which should
further reduce our maintenance and operation costs. We would expect to have very little
maintenance costs in the first 3 to 5 years. However, our maintenance staffhas reviewed
diagrams of the proposed light fixtures and believes they can be maintained internally once the
warranty expires.
The price quote received from North American Energy Group includes the following:
.
Gym & Fitness Area $11,424.17
Ice Arena $19,830.74
Subtotal $31,254.91
Estimated Rebates - $ 7.742.00
Total $23,512.91
This price includes installation, sales tax and recycling or disposal of the removed items.
Additional detail regarding their proposal can be found in the attached documents.
After rebates, the project would have a payback time oftwo and a half years, using a simply
payback from just energy and maintenance savings. The quality of the lighting in the
Community Center would also be improved, which is a benefit to our employees and visitors,
and by reducing its energy usage the City would also be having a positive environmental impact.
Budget Impact
Thetotal cost of the work to be completed by North American Energy would total $31,254.91.
Estimated rebates from SPUC are expected to total $7,742.00, reducing the project cost to
$23,512.91.
Funding for this project is not in the operating budget, but could be taken from the Building
Fund.
Relationship to Goals
This item contributes to Goal E - Financial Strong and Goal D - Vibrant, Resilient and Stable.
Recommendation
Staff recommends that Council authorize contracting with North American Energy Group for the
replacement of lighting fixtures at the Community Center gym, fitness area and ice arena at a
cost not to exceed $32,000.
Requested Action
If the Council concurs, it should offer a motion to authorize the appropriate staff to enter into a
contract with North American Energy Group for the replacement of lighting fixtures at the
Community Center gym, fitness area and ice arena at an initial cost not to exceed $32,000 and to
apply for all relevant rebates from Shakopee Public Utilities.
,
AMERICAN
ENERGY GROUP
results"
LIGHTING AUDIT
ENERGY Be COSTS SAVINGS
PROPERTY ADDRESS: Shakopee Gym & Fitness
1255 Fuller St.
Shakopee,MN.55379
PRESENTED TO: Joshua Barrick
952.233.9522
REPORT DATE: August 12, 2007
ENERGY COMPANY: Shakopee Utility
Presented by Auditor: For Questions contact:
NORTH AMERICAN ENERGY GROUP
SARA GEORGE Doug Jorgenson
President
1806 Industrial Park Drive
Pepin, WI. 54759
Tel: (715) 442-3232
Fax: (715) 442-3236
d.iorQenson@naeq.com
Confidential 11/14/2008
AMERICAN
ENERGY GROUP
n~stdts~
Shakopee Gym & Fitness
Lighting Retrofit Proposal
Proposed By North American Energy Group
Proiect Proposal 11/14/2008
Replace: 8 400W MH with 8 S Lamp TS w/wireguards
. 9 Exit Signs with 9 LED EXIT
30 400W MH with 30 6 Lamp TS w/wireguards
47 47
Proiect Obiectives - 1. Reduce energy usage by: 28% This will result in a reduction in energy
use and demand of: 27.73 kW
2 Increase light levels from: 49.0 flc to: 60 flc
The current light levels are below those recommended by the IESNA for
Arena Plant employees will be able to see much better as a esult of increased
light levels.
3 Increase light quality by: increasing the color temperature and color
rendering index of the light source. The change from metal halide lamps with a
color rendering index of 65 and a color temperature of 4000K to fluorescent lamps
with a color rendering index of 86 and a color temperature of 5000K will increase
employee visual acuity and reduce eye strain by reducing pupil size.
4 Reduce maintenance costs: The existing system has no lamp or
ballast warranty. The new system includes a 5 year ballast warranty and 3 year
(or 13,000 hour) lamp warranty. The new lamps have a rated life of 30,000 hours
vs the old lamps which are rated for 20,000 hours (based on a 10 hour burn cycle).
The new lamps cost $3.00 each while the existing lamps cost an estimated $17 each.
Fluorescent replacement ballasts are $20.00 each while metal halide ballasts are
$75 each.
Maintenance Savin2:s: The annual maintenance savings in years 1-3 are:
$471
Ener2:V Savin2:s: The annual energy savings from this project are:
$2,357.27
Bi-Level Sensor Savin2:s: The annual energy savings from sensoring are:
$0.00
CONFIDENTIAL 11/14/2008
,
AMERICAN
ENERGY GROUP
results.
HV AC Saving:s: Metal halide lamps burn at 2100 degrees
Fahrenheit while fluorescent lamps burn at less than 100 degrees Fahrenheit.
As a result, the existing system is causing the air conditioning system to run
additional hours to keep the facility at a comfortable temperature.
The average high temperature is above 75 degrees Fahrenheit
during seven months of the year and above 70 degrees Fahrenheit during
June, July, and August. The proposed system will result in significant savings
on energy used by the HV AC system. It is estimated that these savings will
be: $0 annually.
Project Cost-The project cost including installation is: $8,520.17
after utility rebates.
Project Pavback- The simple payback from energy and maintenance
savings is: 2.57 years This is without trying to quantify the
ancillary benefits listed below.
These ancillary benefits are likely to far exceed the energy and maintenance savings
from the project.
Effect of Project on ROI and Cash Flow Statement:
The project will have a positive impact on Shakopee Gym & Fitness
annual income statement as follows:
Years: 1 ~ ~
ROI 35% 69% 100%
Ancillarv Project Benefits-The project will have the following additional
benefits:
1. The improved light quality and quantity will allow the employees to see better.
This typically results in increased productivity, reduced eye strain, fewer accidents
and mistakes, and improved employee morale.
2. Improved quality control. Defects in products are more easily seen under adequate
light levels. Defective or damaged product that is shipped to a customer can change the
customer's opinion of the manufacturer. The quicker a defect is discovered in the
manufacturing process, the less wasted material and labor results.
3. Enhanced Company Image-Visitors will judge a company by the way its facilities
appear. A well lit facility will make a favorable impression both on customers and
prospective employees.
4. Environmental Impact-Reducing energy waste has a positive impact on the environment.
environment. One kilowatt of electricity saved reduces emission of C02 by
1.6lbs, S02 by 5.2 grams and NOx by 2.8 grams.
5. Additional Energy savings-Fluorescent fixtures can be turned on and off
CONFIDENTIAL 11/14/2008
AMERICAN
ENERGY GROUP
results,
instantaneously while metal halide fixtures have a warm up time of 5-10 minutes to obtain
full brightness and can not be restarted in case of a power interruption until they cool down
(approximately 10 minutes). This causes production delays and also acts as a disincentive
to turn off fixtures when they are not needed thus resulting in further energy waste.
6. Rising Energy Costs-Nothing in this proposal accounts for increasing energy costs w
hich will undoubtedly improve the return on this project in years to come.
7. Light Level and Color Uniformity-Metal halide fixtures lose up to 75% of their
lumen output before burning out. After 10,000 hours (approximately two years at
Shako pee they have lost on average, 40% of their lumen output
This results in inconsistent light levels throughout the plant as some fixtures have newer
lamps than others. Metal halide fixtures also exhibit color shift as they age resulting in a
variety oflight colors in the plant.
Fluorescent fixtures only exhibit 7% lumen depreciation by end of lamp life and do not
color shift.
Warranties-North American Enen!v Groul) fixtures come with the followinl! warranties:
Lamps T8: 2 years GE/Phillips (or 20,000 hours)
Lamps T5: 2 years GE/Phillips (or 20,000 hours)
Lamps T5: 5 years Sequoia (or 100,000 hours)
Ballasts: 5 years
Sockets: 5 years
Reflectors: 25 years
Financing options are available. It is estimated that Shakopee Gym & Fitness
could qualify 100% fmancing of this project at approximately 6.50%
interest a 3 year amortization of 100% of this project would call for monthly payments
of:
Disposal Cost and Salval!e Value-For purposes of this proposal, disposal costs
and salvage value are considered a wash.
SALES PERSON SIGNATURE CUSTOMER SIGNATURE
SALES PERSON NAME CUSTOMER NAME
DATE CUSTOMER TITLE
CONFIDENTIAL 11/14/2008
,
AMERICAN
Slid pie Energy Estimator ENERGY GROUP
CURRENT FIXTURE: 400W MH
~
REPLACEMENT FIXTURE: 8 Lamp T8 w/wireguards
I.F~24HC3EA832WG
'" Required PROJECT COST
* Number of current fixtures: I 81
* Number of Replacement fixtures: I 81
* Average number of hours on per year: I 5,4731 I I
* Your electric cOst per kilowatt hour: I $0.085 I
* Watts per fixture used in current system: I 4601
* Watts per fixture used in proposed system I 300
* Cost to upgrade each fixture: I $175.00 I $1,400.00 jTotal Cost Fixtures
* Applicable Sales Tax: 0.00%1 $0.00 I $1,400.00 ITotal Cost Fixtures w/tax
* Applicable rebates per fixture: $751 $600.00 I $800.00 ILess Rebates
Results
Cost of Electricity Energy Saving.
Current system: I $1, 711.951per year Total Savings: I $595.46j per year
Proposed system: I $1,116.49 Iper year
% Savings: I 34.78%1 Each fixture: I $74.43l per year
Using only your energy savings, you will get your full investment back in: I 2.35l years
w/Rebates: I 1.34l years
(does not include labOr)
Confidential 11/14/2008
AMERICAN
Simple Energy Estimator ENERGY GROUP
CURRENT FIXTURE: 400W MH
REPLACEMENT FIXTURE: 6 Lamp T5 w/wireguards
I~:~~~~~~~~~WG
* Required PROJECT COST
. Number of current fixtures: I 301
. Number of Replacement fixtures: I 301
. Average number of hours on per year: I 5,4731
. Your electric cost per kilowatt hour: I $0.085 I
. Watts per fixture used in current system: 1 4601
. Watts per fixture used in proposed system I 3511
. Cost to upgrade each fixture: I $185.00 I I $5,550.00 ITotal Cost Fixtures
. Applicable Sales Tax: 0.00%1 $0.00 1 I $5,550.00 ITotal Cost Fixtures w/tax
. Applicable rebates per fixture: $75.00 I $2,250.00 I I $3,300.00 ILess Rebates
Results
Cost of Electricity Energy Savings
Current system: I $6,419.83Iper year Total Savings: I $1,521.221 per year
Proposed system: I $4,898.61 Iperyear
% Savings: I 23.70%1 Each fixture: I $50.711 per year
Using onlyyour energy savings, you will get your full investment back in: I 3.651 years
w/Rebates: 1 2.171 years
(does not include labor)
Confidential 11/14/2008
AMERICAN
Simple Energy Estimator ENERGY GROUP
CURRENT FIXTURE: Exit Signs
REPLACEMENT FIXTURE: LED EXIT
ILEDRED
..........................................................
* Required PROJECT COST
. Number of current fixtures: I 91
. Number of Replacement fixtures: I 91
. Average number of hours On per year: I 8,7361
· Your electric cost per kilowatt hour: I $0.085 I
'WattS per fixture used in current system: 1 401
. WattS per fixture used in proposed system 1 41
. Cost to upgrade each fixture: I $39.95 I 1 $359.55 ITotal Cost Fixtures
. Applicable Sales Tax: 0.00%1 $0.00 I 1 $359.55 ITotal Cost Fixtures w/tax
. Applicable rebates per fixture: $6.00 I $54.00 I 1 $305.55 ILess Rebates
Results
Cost of Electricity Energy savings
Current system: 1 $267.32Iper year Total Savings: 1 $240.591 peryear
Proposed system: 1 $26.73 Iper year
% Savings: 1 90.00%1 Each fixture: 1 $26.731 per year
Using only your energy savings, you will get your full investment back in: 1 1.491 years
w/Rebates: 1 1.271 years
(does not include labor)
Confidential 11/14/2008
.
AMERICAN
GROUP
UbmilwtinfJ results.
SUMMARY OF SUGGESTED LIGHTING UPGRADES
Shakopee Gym & Fitness AUDIT BY: SARA GEORGE
1255 Fuller St. NORTH AMERICAN ENERGY GROUP
Shakopee, MH. 55379
Joshua Barrick DATE: 8/12/07
ENERGY ACCOUNT #:
LIGHTING UPGRADES EST. COSTS EST. SAVINGS PAYBACK YEARS
MATERIAL COSTS Before Rebates $8,209.55
INSTALLATION $2,350
EST. REBATES $2,904
ANNUAL MAINTENANCE SAVINGS $ 471.45
RECYCLING $331
TAX $533.62
COOLING SAVINGS $192
ANNUAL ENERGY SAVINGS $2,357
ANNUAL SAVINGS W/100,OOO HR LAMPS $293
TOTAL COST BEFORE SAVINGS $8,520.17 2.57
EST. TAX DEDUCTIONS
EST.
TOTAL ANNUAL SAVINGS $ 3,314.07
FINAL COST AFTER SAVINGS & REBATES $5,206
TOTAL COST AFTER TAx DEDUCTION $5,206
ESTIMATED MONTHLY ENERGY SAVINGS: $196.44
. Savings are based on standard engineering calculations are NOT Guaranteed. Your savings may be higher or lower depending on various factors,
including how you operate your lighting and other electrical equipment in your facility. Electric Utility Rates are est. at: $0.085 IkWh
Confidential 11/14/2008
AMERICAN
ENERGY GROUP
results.
SAVING YOU ENERGY & MONEY
1806 Industrial Park Drive, Pepin, Wiscdnsin 54759 '. Toll Free: (866) 633-0808' Tel: (715) 442-3232' Fax: (715) 442-3236
PROPOSED TO: Shakopee Gym & Fitness 1255 Fuller St.
Shakopee, MN. 55379
TO FURNISH, DELIVER AND INSTALL (Where Proposal Covers Installation)
THE BUILDING AT: SAME AS ABOVE
According to the following Schedule and Specifications and Subject to the Conditions Listed on the 2nd Page of this Document and at the Prices Shown Below.
F-24HGEA832WG 8 Lamp T8 w/wireguards 8 $175.00 $1,400.00 Sub Total $8,209.55
Includes 5000K lamps Sales Tax 6.50% $533.62
LEDRED LED EXIT 9 $3~.95 $359.55 Installation $2,350.00
Recycling (Below) $331.00
FC24HGEA654WG 6 Lamp T5 w/wireguards 30 $185.00 $5,550.00 Total Contract Price $11,424.17
IncludeS GE 5000K T5 HO lamps
ADDER FOR 100,000 HOUR T5 LAMPS 180 $5.00 $900.00 Purchase Order #
Down Payment $5,712.09
Balance Due $5,712.09
Utility Rebate $ Amount
Estimated $2,904.00
Utility Provider Shakopee Utility
NET COST AFTER REBATES $8,520.17
TOTALS 227 $8,209.55 Additional Disposal and Recyling Charges
# $ Amount
# lamps 38 $76.00
# Ballasts 38 $114.00
# Fixtures 47 $141.00
SALES PERSON SIGNATUR"E PROPOSAL DATE TOTAL $331.00
PROPOSAL ACCEPTED AND INSTALLATION AUTHORIZED BY:
SALES PERSON NAME
CUSTOMER SIGNATURE DATE
CUSTOMER NAME TITLE
North American Energy Group products are warranted against defects in materials and or worknanship under normal use for 25 years on the
25 years on the Miro-4 reflector and 3 years on the ballast, lamps and labor from date of purchase of the product from NAL.
Payment in full is due and payable upon completion of the work unless otherwise stated above. Finance charges at the rate of 1.5% per mont
(A.PR. of 18%) will be charged on past due balances. Such Finance Charges, if any begin accruing and become due and payable ten (10) d,
after the payment is due unless otherwise specified. Customer agrees that it shall be solely responsible for payment of services rendered und
this agreement and for obtaining any financing related thereto.
Confidential 11/14/2008
,
, , AMERICAN
ENERGY GROUP
1806 Industrial Park Drive, Pepin,Wisconsin54759 . Toll Free: (866) 633-0808' Tel: (715) 442-3232' Fax: (715) 442-3236
SALES CONTRACT TERMS
1 North American Energy Group, LLC (NAEG) shall furnish only the materials and/or labor specified in this contract. Any
changes made from the specifications necessitating materials or labOr shall not be included or covered by this
proposal, but shall be provided for under a written job change authorization signed by the customer. Any surplus
materials remaining upon the completion of the installation shall remain the property of and be returned to (NAEG).
2 The customer, by accepting NAEG's offer, warrants that there are no violations of zoning, building codes or
regulations, laws or ordinances of any duly constituted public authorities. Any permits required by any public
authority are responsible of the customer, unless otherwise indicated in this proposal.
3 The amount of NAEG's offer does not include the furnishing of any materials or labor necessitated by the occurrence
of unforeseen circumstances subsequent to the date of this proposal or to any condition not readily discernable
at the date of this proposal, and NAEG shall have the right, in addition to any other rights it may have, to cease any
installation which has begun and/or cancel this Agreement and recover the reasonable value of the materials
used or installed; such value shall be based on NAEG's current MSRP prices and labor charges of NAEG and its
subcontractors who perform any part of the installation. Unforeseeable circumstances or not readily discernable
conditions referred to above shall include, but not limited to (i) subsequent destruction, damage or loss of the
premises Or materials furnished by NAEG by fire, explosion, actions of God, theft or vandalism unless caused by
NAEG's negligence, (ii) governmental regulation or intervention, or (Hi) any act of omission by customer.
4 NAEG shall not be liable for any delays in the completion of an installation resulting from or due to labor difficulties,
strikes, acts of God, fire, flood, explosion, natural disaster, government regulations or causes beyond the control
of NAEG.
5 NAEG will repair or replace any materials or installation according to the terms of the applicable product Warranty,
supplied in writing to the customer. Said Warranty is in lieu of all warranties expressed, implied or statutory.
In no event shall NAEG's liability for damages, whether under warranty or otherwise, exceed the cost of repair or
replacement of defective materials or workmanship. NAEG expressly disclaims any warranty of merchantability or
fitness for particular purpose.
6 No agent or employee of NAEG is authorized to modify this Warranty or enlarge upon this liability in any way.
7 This proposal, any attached specifications, sketches and blueprints, and the credit agreement, if any, shall
constitute the entire agreement between the parties, which may not be altered or modified except by written
agreement duly executed by the parties.
Oral understandings and aoreements with representatives shall not be binding set forth herein.
8 ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO YOUR PROPERTY
MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON IS NOT PAID FOR THE MATERIALS OR WORK
PROVIDED. THIS INCLUDES NAEG. UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO
SUPPLIED THE LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM
OUR CONTRACT PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER THE
COMPLETION OF THE IMPROVEMENT, UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED
ANY LABOR OR MATERIALS FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE.
9 Buyer agrees to pay all reasonable attorney fees and legal & other expenses incurred by seller while enforcing
its rights hereunder.
This Agreement shall not be binding upon either party if not accepted within thirty (30) days from the date of this
Agreement.
1 Confidential 11/14/2008
'"
. l
AMERICAN
ENERGY GROUP
results.
LIGHTING AUDIT
ENERGY Be COSTS SAVINGS
PROPERTY ADDRESS: Shakopee Ice Arena
1255 Fuller St.
Shakopee, MN. 55379
PRESENTED TO: Joshua Barrick
952-233-9522
REPORT DATE: November 13, 2007
ENERGY COMPANY: Shakopee Utility
Presented by Auditor: For Questions contact:
NORTH AMERICAN ENERGY GROUP
SARA GEORGE Doug .Jorgenson
President
1806 Industrial Park Drive
Pepin, WI. 54759
Tel: (715) 442-3232
Fax: (715) 442-3236
d. iorqenson@naeq,com
Confidential 11/14/2008
,
,
AMERICAN
GROUP
rcsults.
Shakopee Ice Arena
Lighting Retrofit Proposal
Proposed By North American Energy Group
Proiect Proposal 11/14/2008
Replace: 60 400W MH with 60 6 Lamp T5 w/wireguards
11 Exit Signs with 11 LED EXIT
17 250W HID with 17 4 Lamp T8 w/Reflectors
88 88
Proiect Obiectives - 1. Reduce energy usage by: 30% This will result in a reduction in energy
use and demand of: 33.24 kW
2 Increase light levels from: 49.0 flc to: 60 flc
The current light levels are below those recommended by the IESNA for
Arena Plant employees will be able to see much better as a esult of increased
light levels.
3 Increase light quality by: increasing the color temperature and color
rendering index of the light source. The change from metal halide lamps with a
color rendering index of 65 and a color temperature of 4000K to fluorescent lamps
with a color rendering index of 86 and a color temperature of 5000K will increase
employee visual acuity and reduce eye strain by reducing pupil size.
4 Reduce maintenance costs: The existing system has no lamp or
ballast warranty. The new system includes a 5 year ballast warranty and 3 year
(or 13,000 hour) lamp warranty. The new lamps have a rated life of30,000 hours
vs the old lamps which are rated for 20,000 hours (based on a 10 hour burn cycle).
The new lamps cost $3.00 each while the existing lamps cost an estimated $17 each.
Fluorescent replacement ballasts are $20.00 each while metal halide ballasts are
$75 each.
Maintenance Savin{!s: The annual maintenance savings in years 1-3 are:
$565
Ener{!v Savin{!s: The annual energy savings from this project are:
$2,825.26
Bi-Level Sensor Savin2s: The annual energy savings from sensoring are:
$0.00
CONFIDENTIAL 11/14/2008
,
,
AMERICAN
ENERGY GROUP
reflu its,
HV AC Savinl!s: Metal halide lamps burn at 2100 degrees
Fahrenheit while fluorescent lamps burn at less than 100 degrees Fahrenheit.
As a result, the existing system is causing the air conditioning system to run
additional hours to keep the facility at a comfortable temperature.
The average high temperature is above 75 degrees Fahrenheit
during seven months ofthe year and above 70 degrees Fahrenheit during
June, July, and August. The proposed system will result in significant savings
on energy used by the HV AC system. It is estimated that these savings will
be: $0 annually.
Project Cost-The project cost including installation is: $14,992.74
after utility rebates.
Project Pavback- The simple payback from energy and maintenance
savings is: 2.44 years This is without trying to quantify the
ancillary benefits . listed below.
These ancillary benefits are likely to far exceed the energy and maintenance savings
from the project.
Effect of Project on ROI and Cash Flow Statement:
The project will have a positive impact on Shakopee Ice Arena
annual income statement as follows:
Years: 1 ~ ~
ROI 37% 72% 105%
Ancillarv Project Benefits-The project will have the following additional
benefits:
1. The improved light quality and quantity will allow the employees to see better.
This typically results in increased productivity, reduced eye strain, fewer accidents
and mistakes, and improved employee morale.
2. Improved quality control. Defects in products are more easily seen under adequate
light levels. Defective or damaged product that is shipped to a customer can change the
customer's opinion of the manufacturer. The quicker a defect is discovered in the
manufacturing process, the less wasted material and labor results.
3. Enhanced Company Image-Visitors will judge a company by the way its facilities
appear. A well lit facility will make a favorable impression both on customers and
prospective employees.
4. Environmental Impact-Reducing energy waste has a positive impact on the environment.
environment. One kilowatt of electricity saved reduces emission of C02 by
1.61bs, 802 by 5.2 grams and NOx by 2.8 grams.
5. Additional Energy savings-Fluorescent fixtures can be turned on and off
CONFIDENTIAL 11/14/2008
.
AMERICAN
ENERGY GROUP
results.
instantaneously while metal halide fixtures have a warm up time of 5-10 minutes to obtain
full brightness and can not be restarted in case of a power interruption until they cool down
(approximately 10 minutes). This causes production delays and also acts as a disincentive
to turn off fixtures when they are not needed thus resulting in further energy waste.
6. Rising Energy Costs-Nothing in this proposal accounts for increasing energy costs w
hich will undoubtedly improve the return on this project in years to come.
7. Light Level and Color Uniformity-Metal halide fixtures lose up to 75% of their
lumen output before burning out. After 10,000 hours (approximately two years at
Shakopee they have lost on average, 40% of their lumen output
This results in inconsistent light levels throughout the plant as some fixtures have newer
lamps than others. Metal halide fixtures also exhibit color shift as they age resulting in a
variety of light colors in the plant.
Fluorescent fixtures only exhibit 7% lumen depreciation by end of lamp life and do not
color shift.
Warranties-North American Ener2V Group fixtures come with the followinl! warranties:
Lamps T8: 2 years GElPhillips (or 20,000 hours)
Lamps T5: 2 years GE/Phillips (or 20,000 hours)
Lamps T5: 5 years Sequoia (or 100,000 hours)
Ballasts: 5 years
Sockets: 5 years
Reflectors: 25 years
Financing options are available. It is estimated that Shakopee Ice Arena
could qualify 100% financing of this project at approximately 6.50%
interest a 3 year amortization of 100% of this project would call for monthly payments
of:
Disposal Cost and Salva2:e Value-For purposes of this proposal, disposal costs
and salvage value are considered a wash.
SALES PERSON SIGNATURE CUSTOMER SIGNATURE
SALES PERSON NAME CUSTOMER NAME
DATE CUSTOMER TITLE
CONFIDENTIAL 11/14/2008
AMERICAN
Simple Energy Estimator ENERGY GROUP
CURREI'iIT FIXTURE: 400W MH
Arena
REPLACEMENT FIXTURE: 6 Lamp T5 w/wireguards
IF-?4HC3E:!>.65-'lWG
* Required PROJECT COST
* Number of current fixtures: I 601
* Number of Replacement fixtures: I 601
* Average number of hours on per year: I 3,2761 I I
* Your electric cost per kilowatt hour: I $0.085 I
* Watts per fixture used in current system: I 4601
* Watts per fixture used in proposed system I 3511
* Cost to upgrade each fixture: I $185.00 I 1$11,1 OO.OOITotal Cost Fixtures
* Applicable Sales Tax: 0.00%1 $0.00 I 1$11,100.00 ITotal Cost Fixtures w/tax
* Applicable rebates per fixture: $75 I $4,500.00 I I $6,600.00 ILess Rebates
Results
Cost of Electricity Energy Savings
Current system: I $7,685.50lperyear Total Savings: I $1,821.131 per year
Proposed system: I $5,864.37 lper year
% Savings: I 23.70%l Each fixture: I $30.351 per year
Using only your energy savings, you will get your full investment back in: I 6.101 years
w/Rebates: I 3.621 years
(does not include labor)
Confidential 11/14/2008
.
AMERICAN
Simple Energy Estimator ENERGY GROUP
CURRENT FIXTURE: 250W HID
REPLACEMENTFIXTUR~ 4 Lamp T8 w/Reflectors
1~~1~'-:8
* Required PROJECT COST
. Number of current fixtures: I 171
. Number of Replacement fixtures: 1 171
. Average number of hours on per year: I 3,2761
. Your electric cost per kilowatt hour: I $0.085 I
. Watts per fixture used in current system: 3001
. Watts per fixture used in proposed system 1501
. Cost to upgrade each fixture: $120.00 I 1 $2,040.00 ITotal Cost Fixtures
· Applicable Sales Tax: 0.00%1 $0.00 I 1 $2,040.00 ITotal Cost Fixtures wltax
· Applicable rebates per fixture: $16.00 I $272.00 I 1 $1,768.00 ILess Rebates
Results
Cost of Electricity Energy Savings
Current system: 1 $1,420.15Iper year Total Savings: 1 $710.071 per year
Proposed system: 1 $710.07 Iper year
% Savings: 1 50.00%\ Each fixture: 1 $41.771 per year
Using only your energy savings, you will get your full investment back in: 1 2.871 years
w/Rebates: 1 2.491 years
(does not include labor)
Confidential 11/14/2008
AMERICAN
Simple Energy Estimator ENERGY GROUP
CURRENT FIXTURE: Exit Signs
ItEPLACEMENT FIXTURE: LED EXIT
IL~~~~~...
* Required PROJECT COST
. Number of current fixtures: 111
. Number of Replacement fixtures: 111
. Average number of hours on per year: 8,7361
· Your electric cost per kilowatt hour: $0.085 I
. Watts per fixture used in current system: 401
. Watts per fixture used in proposed system 4
. Cost to upgrade each fixture: $39.95 1 $439.45 ITotal Cost Fixtures
. Applicable Sales Tax: 0.00%1 $0.00 1 $439.45 ITotal Cost Fixtures wltax
. Applicable rebates per fixture: $6.00 I $66.00 1 $373.45 ILess Rebates
Results
Cost of Electricity Energy SaVings
Current system: 1 $326.73lperyear Total Savings: 1 $294.051 per year
Proposed system: 1 $32.67 Iperyear
% Savings: 1 90.00%1 Each fixture: 1 $26.731 per year
Using only your energy savings, you will get your full investment back in: 1 1.491 years
w/Rebates: 1 1.271 years
(does not include labor)
Confidential 11/14/2008
AMERiCAN
ENERGY GROUP
iHuminatin/J results,
SUMMARY OF SUGGESTED LIGHTING UPGRADES
Shakopee Ice Arena AUDIT BY: SARA GEORGE
1255 Fuller St. NORTH AMERICAN ENERGY GROUP
Shakopee, MN. 55379
Joshua Barrick DATE: 11/13/07
ENERGY ACCOUNT #:
LIGHTING UPGRADES EST. COST'S eST. SAVINGS PAYBACK YEARS
MATERIAL COSTS Before Rebates $15,804.45
INSTAllATION $2,350
EST. REBATES $4,838
ANNUAL MAINTENANCE SAVINGS $ 565.05
RECYCLING $649
TAX $1,027.29
COOLING SAVINGS $2,167
ANNUAL ENERGY SAVINGS $2,825
ANNUAL SAVINGS W/100,000 HR lAMPS $586
TOTAL COST BEFORE SAVINGS $14,992.74 2.44
EST. TAX DEDUCTIONS
EST.
TOTAL ANNUAL SAVINGS $ 6,142.94
FINAL COST AFTER SAVINGS & REBATES $8,850
TOTAL COST AFTER TAX DEDUCTION $8,850
ESTIMATED MONTHLY ENERGY SAVINGS: $235.44
* Savings are based on standard engineering calculations are NOT Guaranteed. Your savings may be higher or lower depending on various factors,
including how you operate your lighting and other electrical equipment in your facility. Electric Utility Rates are est. at: $0.085 /kWh
Confidential 11/14/2008
. ,
AMERICAN
ENERGY GROUP
reSl1lts.
SAVING YOU ENERGY & MONEY
1806 Industrial Park Drive, Pepin, Wisconsin 54759 . Toll Free: (866) 633-0808' Tel: (715) 442-3232 . . Fax: (715) 442-3236
PROPOSED TO: Shakopee Ice Arena 1255 Fuller SI.
Shakopee, MN. 55379
TO FURNISH, DELIVER AND INSTALL (Where Proposal Covers Installation)
THE BUILDING AT: SAME AS ABOVE
According to the following Schedule and Specifications and Subject to the Conditions listed on the 2nd Page of this Document and at the Prices Shown Below.
F-24HGEA654WG 6 Lamp T5 wlwireguards 60 $185.00 $11,100.00 Sub Total $15,804.45
Includes 500bK lamps Sales Tax 6.50% $1,027.29
LEDRED LED EXIT 11 $39.95 $439.45 Installation $2,350.00
Recycling (Below) $649.00
NA4L T8 4 Lamp T8 wlReflectors 17 $120.00 $2,04b.00 Total Contract Price $19,830.74
Includes GE SOOOK T5 HO lamps
ADDER FOR 100,000 HOUR T5 LAMPS 360 $5.00 $1,800.00 Purchase Order #
Adder for Wireguard 17 $25.00 $425.00 Down Payment $9,915.37
Balance Due $9,915.37
Utility Rebate $ Amount
Estimated $4,838.00
Utility Provider Shakopee Utility
NET COST AFTER REBATES $14,992.74
TOTALS 465 $15,804.45 Additional Disposal and Recyling Charges
# $ Amount
# lamps 77 $154.00
# Ballasts 77 $231.00
# Fixtures 88 $264.00
SALES PERSON SIGNATURE PROPOSAL DATE TOTAL $649.00
PROPOSAL ACCEPTED AND INSTALLATION AUTHORIZED BY:
SALES PERSON NAME
CUSTOMER SIGNATURE DATE
CUSTOMER NAME TITLE
North American Energy Group products are warranted against defects in materials and or worknanship under normal use for 25 years on the
25 years on the Miro-4 reflector and 3 years on the ballast, lamps and labor from date of purchase of the product from NAL.
Payment in full is due and payable upon completion of the work unless otherwise stated above. Finance charges at the rate of 1.5% per mont
(A.PR. of 18%) will be charged on past due balances. Such Finance Charges, if any begin accruing and become due and payable ten (10) de
after the payment is due unless otherwise specified. Customer agrees that it shall be solely responsible for payment of services rendered und
this agreement and for obtaining any financing related thereto.
Confidential 11/14/2008
.
. '
AMERICAN
ENERGY GROUP
1806 Industrial Park Drive, Pepin, Wisconsin54759 . Toll Free: (866) 633-0808. Tel: (715) 442-3232' Fax: (715) 442-3236
SALES CONTRACT TERMS
1 North American Energy Group, LLC (NAEG) shall furnish only the materials and/or labor specified in this contract. Any
changes made from the specifications necessitating materials or labor shall not be included or covered by this
proposal, but shall be provided for under a written job change authorization signed by the customer. Any surplus
materials remaining upon the completion of the installation shall remain the property of and be returned to (NAEG).
2 The customer, by accepting NAEG's offer, warrants that there are no violations of zoning, building codes or
regulations, laws or ordinances of any duly constituted public authorities. Any permits required by any public
authority are responsible of the customer, unless otherwise indicated in this proposal.
3 The amount of NAEG's offer does not include the furnishing of any materials or labor necessitated by the occurrence
of unforeseen circumstances subsequent to the date of this proposal or to any condition not readily discernable
at the date of this proposal, and NAEG shall have the right, in addition to any other rights it may have, to cease any
installation Which has begun and/or cancel this Agreement and reCover the reasonable value of the materials
used or installed; such value shall be based on NAEG's current MSRP prices and labor charges of NAEG and its
subcontractors who perform any part of the installation. Unforeseeable circumstances or not readily discernable
conditions referred to above shall include, but not limited to (i) subsequent destruction, damage or loss of the
premises or materials furnished by NAEG by fire, explosion, actions of God, theft or vandalism unless caused by
NAEG's negligence, (ii) governmental regulation or intervention, or (iii) any act of omission by customer.
4 NAEG shall not be liable for any delays in the completion of an installation resulting from or due to labor difficulties,
strikes, acts of God, fire, flood, explosion, natural disaster, government regulations or causes beyond the control
of NAEG.
5 NAEG will repair or replace any materials or installation according to the terms of the applicable product Warranty,
supplied in writing to the customer. Said Warranty is in lieu of all warranties expressed, implied or statutory.
In no event shall NAEG's liability for damages, whether under warranty or otherwise, exceed the cost of repair or
replacement of defective materials or workmanship. NAEG expressly disclaims any warranty of merchantability or
fitness for particular purpose.
6 No agent or employee of NAEG is authorized to modify this Warranty or enlarge upon this liability in any way.
7 This proposal, any attached specifications, sketches and blueprints, and the credit agreement, if any, shall
constitute the entire agreement between the parties, which may not be altered or modified except by written
agreement duly executed by the parties.
Oral understandings and agreements with representatives shall not be binding set forth herein.
8 ANY PERSON OR COMPANY SUPPLYING LABOR OR MATERIALS FOR THIS IMPROVEMENT TO YOUR PROPERTY
MAY FILE A LIEN AGAINST YOUR PROPERTY IF THAT PERSON IS NOT PAID FOR THE MATERIALS OR WORK
PROVIDED. THIS INCLUDES NAEG. UNDER MINNESOTA LAW, YOU HAVE THE RIGHT TO PAY PERSONS WHO
SUPPLIED THE LABOR OR MATERIALS FOR THIS IMPROVEMENT DIRECTLY AND DEDUCT THIS AMOUNT FROM
OUR CONTRACT PRICE, OR WITHHOLD THE AMOUNTS DUE THEM FROM US UNTIL 120 DAYS AFTER THE
COMPLETION OF THE IMPROVEMENT, UNLESS WE GIVE YOU A LIEN WAIVER SIGNED BY PERSONS WHO SUPPLIED
ANY LABOR OR MATERIALS FOR THE IMPROVEMENT AND WHO GAVE YOU TIMELY NOTICE.
9 Buyer agrees to pay all reasonable attorney fees and legal & other expenses incurred by seller while enforcing
its rights hereunder.
This Agreement shall not be binding upon either party if not accepted within thirty (30) days from the date of this
Agreement.
1 Confidential 11/14/2008