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HomeMy WebLinkAbout13.F.4. Energy Efficiency Contract for City Facilities /3. F r City of Shako pee MEMORANDUM TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrato~j~ SUBJECT: Energy Efficiency Contract DATE: June 12, 2009 Introduction The Council is asked to consider entering into the attached agreement with the energy and facility services company McKinstry for a detailed engineering study and technical energy audit of City facilities. Background Over the past few years the City has been making gradual improvements to the energy efficiency of City facilities - often as a component of a needed repair or replacement. In 2008 the City entertained a proposal from Harris Companies for a set of energy efficiency improvements to the Community Center and Vierling Dr. Fire Station, but ultimately decided not to proceed with the arrangement. Staffhas used some of the information gained from Harris Companies to complete improvements to the lighting at the Community Center and to install something called a "vending miser" on all of the City's vending machines. Efforts are currently .J. underway to improve the energy efficiency of the lighting at the Police Station. . In the meantime, staff has been approached by an energy and facility services company called McKinstry. While they are a large design-build firm in the Seattle area, their Minnesota office focuses on energy services and has been working with several other cities and public entities. in our area. We have met with McKinstry three times to gain an understanding of their services and they have toured all of our City buildings. To date they have developed the attached Preliminary Energy Audit Report for the City, at no cost. This preliminary report identifies potential energy efficiency improvements in each of the City's buildings. To proceed with a more quantitative analysis of each building and advance to the point of developing specific projects with the greatest return on investment, the City would need to enter into the attached agreement. Upon entering into this agreement, McKinstry would also prepare a grant application on the City's behalf for federal stimulus funds that are available specifically for energy efficiency improvements to local government buildings and investigate potential utility rebates for the projects under development. Should the City proceed with the detailed engineering study and technical energy audit, but then not continue on with the projects recommended by the study, we would be obligated to pay for the study at a cost of $22,400. If the City proceeds with the recommended projects, the costs of the detailed engineering study and technical energy audit would be wrapped into the project costs. McKinstry guarentees a return on the complete investment (actual project costs plus consulting and engineering costs) of no more than 15 years, and provides ongoing reporting to verify this savings, as well as assistance with ongoing reporting that would be required for any grant funding obtained. Staffhas been impressed with McKinstry's presentation and information to-date, including their transparent, open-book process and emphasis on a customer-driven project. Unlike Harris Companies, McKinstry's process is not centered around an expensive, on-going service agreement and decisions about the specific work to be done and the contractors to do it would remain in the City's hands. Alternatives 1. Authorize the appropriate officials to enter into the attached agreement for a Detailed Engineering Study and Technical Energy Audit, as presented. 2. Proceed with McKinstry, but on a smaller scale. The current proposal covers City Hall, the Library, Police Station, both Public Works buildings, both fire stations and the Community Center. McKinstry is willing to narrow this scope to a select group of buildings, which would reduce the $22,400 price tag. However, this would reduce the efficiencies and economies of scale that could be achieved by looking at all of the plumbing and water conservation issues or all of the lighting issues at once. It would also leave us guessing as to which buildings have the greatest opportunities for improvements and savings. 3. Direct staff to gather additional information. If the Council is interested in this proposal, but not ready to make a decision, Greg Ackerson from McKinstry would be happy to come out and make a presentation and answer questions at a future Council meeting. 4. Do not continue working with McKinstry and direct staff to continue working on individual energy efficiency improvements as workloads and in-house skill allows. Recommendation If the Council desires a comprehensive and quantitative process that examines the energy use of City facilities and develops projects with quantifiable, detailed information on energy savings and return on investment, then the assistance of a professional energy services firm is required and staff recommends that the Council proceed with the agreement offered by McKinstry. Even when the economy turns around, we expect the City to be facing tight budgets for years to come. Investing in a process such as this now, will help us minimize the cost of operating City facilities over the next five, ten or fifteen years. Budget Impact If the City proceeds with the detailed engineering study and technical audit but not the resulting projects, the $22,400 cost of the study would need to be paid for out of the General Fund fund balance. If the City proceeds with the projects resulting from this study, a financing plan will be developed that incorporates available rebates, grant funding and City funds or loans. Requested Action The Council is asked to offer a motion providing direction to staff based on the desired alternative from above or other consensus of the Council. -, City of Shakopee: Detailed Engineering Study I Technical Energy Audit City of Shakopee Shakopee, Minnesota Detailed Engineering Study This Project Development Agreement (the "Agreement") for a Detailed Engineering StudyfTechnical Energy Audit is made and entered into as of June, 2009, between Mckinstry, and The City of Shakopee, 129 Holmes Street South, Shakopee, Minnesota (Owner). WITNESSETH WHEREAS, Mckinstry is a company with experience and technical and management capabilities to provide for the discovery, engineering, packaging, procurement, installation, financing, maintenance and monitoring of energy and water saving measures at facilities similar in size, function and system type to Owner's facilities; and WHEREAS, the City of Shakopee has selected MCKINSTRY to provide the services described herein; and WHEREAS, the City of Shakopee desires to enter into an agreement to have Mckinstry perform a Detailed Engineering StudyfTechnical Energy Audit to assist in the completion of the Energy Conservation Block Grant application as required by the stimulus package and determine the feasibility of entering into an Energy Performance Contract as well as other professional services. THEREFORE, the parties agree as follows: 1. Detailed Engineering Study ITechnical Energy Audit Mckinstry Essention agrees to complete the Technical Energy Audit and present, to the Owner, a final report within 150 calendar days from the execution of this Agreement. However, Mckinstry and the Owner may mutally agree to extend the dates on all associated deadlines for this Agreement in the event the Owner wishes to expand the scope of work to a degree sufficient enough to warrant an extention, e.g., a major capital infrastructure project that is added to the scope of work/project. The Owner agrees to assist the Mckinstry in performing the Technical Energy Audit and completing the Energy Conservation Block Grant application. The Owner agrees to work diligently to provide full and accurate information. Mckinstry agrees to work diligently to assess validity of information provided and to confirm or correct the information as needed. Detailed Engineering Agreement Page 1 . ' " City of Shakopee: Detailed Engineering Study I Technical Energy Audit 2. Compensation to MCKINSTRY Except, as provided for below, within 60 days after Mckinstry's submission of the final Technical Audit report, The Owner shall compensate Mckinstry for their assistance in completing the Energy Conservation Block Grant and performance of the Audit by payment to Mckinstry of $22,400. a. The Owner shall have no payrnent obligations at the time of execution of this Agreement, but acknowledges that the fee indicated above shall be incorporated into Mckinstry's project costs, in the event Mckinstry and Owner execute an Energy Performance Contract within 60 days, or such longer period as the parties may mutually agree, after submission of the final Technical Energy Audit report Mckinstry to Owner. b. The Owner shall have no payment obligations should Mckinstry determine at any time during the Technical Energy Audit that the savings cannot be attained to meet the Minnesota State Statute 471.345 subd.13 Energy Efficiency Projects. c. The Owner, in collaboration with Mckinstry and documented in writing, may elect to procure Mckinstry's design and project development services, in addition to the scope of the technical energy audit, for pending capital infrastructure improvements that are slated to be incorporated into the overall Performance Contracting project. In this event, the cost of associated design and project development will be rendered by Mckinstry on a cost-plus basis, and will be included in the total project design cost. However, should the Owner elect notto implement the Performance Contract, Owner agrees to pay for said additional design and project development services costs as part of the Audit Agreement project termination compensation. Detailed Engineering Agreement Page 2 . . .. City of Shakopee: Detailed Engineering Study I Technical Energy Audit d. The negotiated audit fee does not represent the true cost of executing the audit analysis and is, in effect, a "walk-away" fee, should the Owner opt not to proceed with the Performance Contract, even after the Mckinstry has met the performance, financial and energy savings requirements mutually agreed to by both parties. The Investment-Grade Audit does not include the actual construction design cost portion of the project. The cost for construction design will be included in the final contract. Mckinstry may opt to perform,at their own risk, some of the construction design during the Audit phase as a way to expedite the development the project. This design cost is separate from the Energy Audit and will be included in the final Performance Contract's total implemented cost. MCKINSTRY Name: Tom Laufenberg Title: General Manaaer Signature Date: Owner (City of Shakopee) Name: Title: City of ShakoDee City Manaaer Signature: Date: Detailed Engineering Agreement Page 3 .- n _ ______ _ __ __,___ ~_.- -----~---- . - - ~-~ "- .1~lA). . I;r;;-'~ t "."OIt'''liIouftl.';: . > . I, ,iI' "j . .r .D ' I , " .. . . ' . "......... . .-- , - ~ :. I I I i '. I I i , I '. I '. i. I City of Shakopee I I. I. Shakopee,MN I. i. i. I ,. Preliminary Energy Audit Report i. i. ,. , :. I . . i. . . I. '. r. . . . Prepared by: . . e!'!!!l . . . . . I . I McKINSTRY FOR THE LIFE OF YOUR BUILDING . I , 8451 Xerxes Avenue North, Brooklyn Park, MN 55444 . 763.767.0304 . Fax 763.767.6147 . Washington' Oregon' Idaho' Colorado' Minnesota . Wisconsin . I '. I ----- -~ -~ . -. - - - .------- - -------- .~. -------,-_.--- . I I . e~ PROJECT Energy Conservation Project I DATE 05.26.09 CLIENT City of Shakopee PAGE lof8 i . TOPIC Preliminary Audit I . I . . . City Hall I I . i I . /. MechanicalIHV AC Upgrades , . Solution: i . Look at modifications to zoning to allow better I . I control of spaces . I Benefits: . . Reduce energy consumption ! Improve comfort levels i . I . I I . Improved safety and reliability . Reduce maintenance issues i . , . I . I i . I . i . Lighting Improvements ! . Solution: . Add lighting controls to include motion sensors, smart switch technology and daylighting controls . . Upgrade exterior lighting to achieve dark-skies compliance, LED or Induction Technology . Benefits: I . Reduce electrical use . . Improved light levels . . . I Energy Management System . Solution: . Upgrade existing DOC systems to all heating/cooling and lighting systems. Schedule and trend . Benefits: . . Reduce energy consumption . . Schedule heating & cooling in remote buildings . Reduce run-time/extend life of equipment . . Remote monitoring from central location . . Reduced response time . . Reduce maintenance issues . . Building Envelope Improvements . Solution: . . Evaluate building envelope for barrier effectiveness . Benefits: . Lower heating and cooling costs . . More comfortable environment . \ ~ i - . L . _.___~_u_____ _ --~-- --.--- ---.-.------ . ] . ~ PROJECT Energy Conservation Project DATE 05.26.09 CLIENT City of Shakopee PAGE 20fS . TOPIC Preliminary Audit . . . . I, Water Conservation I. Solution: . Perform a comprehensive plumbing survey to . determine which areas would benefit from a I. plumbing fixture upgrade . Benefits: . Reduce water and sewer costs . . . I. Library . . Mechanical/HV AC Upgrades . Solution: . Investigate issues with existing York condenser . Benefits: I Reduce energy consumption i . . . Improved safety and reliability I . . Reduce maintenance issues . I . Lighting Improvements I Solution: i . Redesign lighting control system i . . . Replace existing interior lighting with high . efficient . Evaluate exterior lighting for retrofit to LED . or Induction technology . Benefits: . Reduce electrical use . . Improved light levels . . Building Envelope Improvements . Solution: . . Evaluate building envelope for barrier effectiveness . Benefits: . Lower heating and cooling costs . . More comfortable environment . Water Conservation . Solution: . I . Perform a comprehensive plumbing survey to determine which areas I I would benefit from a plumbing fixture upgrade . I i Benefits: I . ! . Reduce water and sewer costs . i . . . "-,_' ~_ _ ~_ ~_ ______ ~___'_ ,__,_, ~n __ ___ _ __ ,e Ie e~ PROJECT Energy Conservation Project DATE 05.26.09 CLIENT City of Shakopee PAGE 301'8 e TOPIC Preliminary Audit e e ,e Ie Police De{lartment e , \ e MechanicalIHV AC Upgrades I Solution: ! e . Liebert cooling unit has been a maintenance issue - investigate e alternate cooling systems and sizing e Benefits: e . Reduce energy consumption . Improve comfort levels e . Improved safety and reliability . I . Reduce maintenance issues . ! e I . ! Retrocommissioning Solution: e . Retro-commission HV AC controls to verify operational parameters i Benefits: ie Ie . Reduce energy use , . Lower operating costs i ie . Reduced contractor callbacks Ie . Better building documentation I . Improved occupant productivity Ie . Verification that the systems perform in accordance with the owner's project requirements I. i ie I I I I. " I e I I Lighting Improvements e i I Solution: i I. i . Upgrade SOW bollard metal halide lighting systems to high efficient LED I i Install lighting control systems r- ie I . I . Explore replacement of 400W metal halide interior I. I , lighting system I i ie I . Upgrade exterior lighting to LED or Induction . i technology I I Benefits: Ie . Reduce electrical use . Ie I . Improved light levels I I ~. I I e I . I I . I e I I I ~ - -- e:::.... e e . -.- . -- I I . ~ PROJECT Energy Conservation Project I DATE 05.26.09 CLIENT City of Shakopee PAGE 401'8 . TOPIC Preliminary Audit . I I j. I. i i. Building Envelope Improvements ! I !. Solution: i . Evaluate building envelope for barrier effectiveness . Benefits: I. I . Lower heating and cooling costs :. I . More comfortable environment I I !. I . Water Conservation i. Solution: '. . Perform a comprehensive plumbing survey to determine which I areas would benefit from a plumbing fixture upgrade I :. Benefits: . , . Reduce water and sewer costs I . , . . i '. Old Public Works . i. Lighting Improvements . Solution: . . Upgrade T-12lighting to high efficient T-8 Fluorescent . Lighting control systems !. . Upgrade exterior lighting to LED or Induction technology I . Benefits: . . Reduce electrical use . Improved light levels . ,. . Building Envelope Improvements . I Solution: I . ! . Evaluate building envelope for barrier effectiveness , Benefits: I '. i Lower heating and cooling costs I . . I . More comfortable environment I . I I . I Water Conservation I . I Solution: I Perform a comprehensive plumbing survey to determine which areas i . . I I would benefit from a plumbing fixture upgrade . I Benefits: I I . . Reduce water and sewer costs j I . -= ~=- . . . . . e~ PROJECT Energy Conservation Project DATE 05.26.09 CLIENT City of Shakopee PAGE 50f8 . TOPIC Preliminary Audit . I . I , . , , . . New Public Works . . Lighting Improvements Solution: . . Lighting control systems . . Explore system for vehicle storage day lighting . Upgrade exterior lighting to LED or Induction . technology . Benefits: . . Reduce electrical use . Improved light level . I , . . ! . . Community Center . . Mechanical/Rink Upgrades Solution: . . Investigate Heat recovery on ice sheet compressors . for dehumidification . Install reflective ceiling in ice rink to reduce radiant . heat loss I . Benefits: I . . Reduce energy consumption I . Improve comfort levels I . . Improved safety and reliability I I . Reduce maintenance issues I . I . i . i . I i MechanicalIHV AC Upgrades I . t Solution: ! i . . Investigate high efficient chiller replacement I . Analyze variable flow for hot water and chilled water systems I . Benefits: . . Reduce energy consumption . . Improve comfort levels . . Improved safety and reliability . Reduce maintenance issues . . . l . . . . ____ _~___.__' - ___ ____._~____. ___u________ ______ __.. _ _____ . ! i I . i e~ PROJECT Energy Conservation Project ! ! DATE 05.26.09 CLIENT City of Shakopee PAGE 60f8 I I I I i. i TOPIC Preliminary Audit j I I . I i , . I , I . . \ Retrocommissioning . I Solution: / . Retro-commission HV AC controls to verify operational parameters i . Benefits: I . I Reduce energy use ! . , I i . 1 . Lower operating costs I I I . Reduced contractor callbacks . I . Better building documentation I . . Improved occupant productivity , I . . Verification that the systems perform in accordance with the owner's project requirements . I . I Lighting Improvements I Solution: . . Upgrade interior lighting to high efficient systems '. . Add lighting controls to include motion sensors, smart switch I technology and day lighting control I. I . Upgrade exterior lighting to achieve dark-sky compliance, ;. i LED or Induction technology :. Benefits: , . Reduce electrical use I. . Improved light levels :. :. , ! :. Energy Management System ! \ . Solution: i . Extend existing DOC systems to all heating/cooling and lighting systems. Schedule and trend I . . Pump and VFD control optimization i ,. Benefits: I I I . . Reduce energy consumption i . Schedule heating & cooling in remote buildings i . . Reduce run-time/extend life of equipment :. . Remote monitoring from central location I :. . Reduced response time I . Reduce maintenance issues I I. I I i. i I :. i I I I , I Building Envelope Improvements i i. ! Solution: I I Evaluate building envelope for barrier effectiveness . I . I Benefits: ,. . Lower heating and cooling costs i I I '. I . More comfortable environment I , I I '. I I . I l j . . /. -----.------------- - . i . I ~ PROJECT Energy Conservation Project I DATE 05.26.09 CLIENT City of Shakopee PAGE 70f8 :. TOPIC Preliminary Audit , ,. I I. I I: Water Conservation I. Solution: I. . Sludge water to sanitary sewer reduction Benefits: . . Reduce sewer costs . 1 I. I I Fire Stations I I i '. i I. I Lighting Improvements I I. i Solution: I. . Upgrade interior lighting to T-8 28 watt and CFLs I , Add lighting controls to include motion sensors, smart switch technology and day lighting control , . I. . Upgrade exterior lighting to achieve dark-skies compliance, LED or Induction technology I. Benefits: . Reduce electrical use I. . Improved light levels I. Water Conservation Ie Solution: I. I . Perform a comprehensive plumbing survey to determine which I :. areas would benefit from a plumbing fixture upgrade Benefits: I. . Reduce water and sewer costs '. I \ I. City Wide Initiatives i. , ,. Resource Conservation Management I . .. Solution: . Active Issue Management - provide real-time access from anywhere on status of issues ,. . Active Remote Monitoring - establish remote connection to building controls system and provides '. pro-active alerts and monitoring 24/7 from anywhere . . Active Energy Management - expert analysis on utility bills with back-up provided by real-time tracking of energy use . . Active Data Management - Establishes benchmarks and KPI's for custom real-time/online . I reporting through web platform i Benefits: I. I I . Improves operational efficiencies and occupant satisfaction . I . Leverage technology to keep equipment operating at peak efficiency . . Proactive energy issue identification and corrective action with consistent energy reporting and i improved energy cost and forecasting accuracy ,. I I . I I . i . . . . I". --~~ ~--~-'--'~' -'---'-' -'---'-- -~ - --'- . 1 ! . e PROJECT Energy Conservation Project i instry DATE 05.26.09 CLIENT City of Shako pee PAGE 8of8 I . . 11.."..".1111., TOPIC Preliminary Audit . . . \ ! . ' Kiosk/Web-Base Information I . i Solution: . . In conjunction with an energy efficiency project develop a website highlighting the efforts . undertaken by the City and allow for access to live data. Benefits: I . . Communicate to the public benefits of energy efficiency I . . Communicate the efforts undertaken by the City. i . ,:~ Ic..ir ....,JtCU4 "'-, - ,. """ . ~. .. .... ..- -- . . "'......'lfr..u~.........'...~;II.l'fl~J* ~-~~ ... ....... $.' ........".......~>'>lIIIl:Ul.....lI!':'"A"ti;..... -- I .', _ _......-.._... . I ..i -..0;.::'._____... ......~~J... . ........... ! ' .~J-t -:.., '-P,"II~ :::...~.- ~t...... "--.tMf .........- . .. .. nIl ;;:!tJ-' _......- . .'~w"- J . 'r". ~'.. 'HI,;;.. ,.... :: : . . ~~~ I ~ '!L... ~.-.-' _ _ . _ d' ! I"~'''-'--'~ . - I' n' - . .--- '-. - - ", : :;" - --.U' ~~.~=- : I .. - . . .. ...~ --- - . ': , , - - . "" - --: . ~ . I _ - t~. ---0. ..i . . :..... t t... _ ;:--_ ~.. ~~... ... - ,. - I . lID.... -.. --.;.. --.... --.., .-. · . - - -~- --. :=-- . . I' . . : - ..-. "il~--- ~--- . I I . I I . . I . . Energy Awareness & Education i · The McKinstry Active Energy Program is an energy awareness program geared toward educating I . community members and staff the benefits of saving energy. Management, implementation and training are . all a part of this important program. Our clients have seen a resulting savings of nearly 10% by . implementing the Active Energy Program. . , . Solution: I . Implement Active Energy Program throughout the Municipality ! . Benefits: I . · Promote energy activities I i . . Reduce plug load I I . I . I . I . I i . I I . I i ~ J . .