The URL can be used to link to this page

Home My WebLink About5.F.5. Authorization to Apply for Energy Efficiency Grant ~ S:F~S ! ...! City of Shako pee MEMORANDUM UPDATED TO: Mayor and City Council Mark McNeill, City Administrator FROM: Kris Wilson, Assistant City Administrator SUBJECT: Authorization to Apply for Energy Efficiency Grant DATE: January 15, 2010 January 19,2010 Introduction The Council is asked to authorize staff to apply for a grant under the Energy Efficiency and Conservation Block Grant (EECBG) program, through the Minnesota Department of Commerce's Office of Energy Security. Background Last year's federal economic stimulus bill provided funding for a variety of energy efficiency related projects. One specific grant program that the state of Minnesota has developed to utilize these federal funds is a competitive grant program to which local governments can apply to make energy efficiency improvements to existing, publicly-owned buildings. Over the past few months, facilities maintenance supervisor Duane Toenyan has been working with an energy efficiency expert provided to us by SPUC to identify energy efficiency opportunities in the City's various buildings. An audit was completed on the library, which found a significant opportunity to program and/or re-program our existing automated controls system for the BV AC system in order to reduce the building's energy usage - especially during hours when it is closed to the public. This work was completed in late December with the remaining 2009 professional services budget for the library building. In late December we also received the consultant's audit findings for the Police Station, which include a partial lighting retrofit, significant programming changes to the existing Johnson Controls automation system for the building HV AC system, the installation of a high efficiency hot water boiler to be used for summer reheat and domestic water needs, and the installation of a 3 ton split air conditioning system, without humidification capabilities, for the IT equipment room. OV/cns Companies me. is preparing a qHote for all bat the lighting retrofit. The quote was not a'/ailable as of the writing of this memo but will be available on the table Tuesday evening. ;\.s a rough estimate, staff estimates the project to eost something in the neighborhood of$10,000. So far we have received one quote for implementing the project and it totals approximately $83,500 -- $44,882 for reprogramming the automated controls, $23,600 for purchase and installation of a high efficiency hot water boiler and $14,992 for the air conditioning system. While this quote is notably higher than we had expected, the return on investment for the three projects combined is estimated to be f ~ 4.73 years. Staff will be seeking additional quotes prior to asking Council for authorization to proceed with the actual project. Staff is proposing that the City apply to the state for an EECBG grant to help funds this project. It should be noted that staff also plans to pursue the recommended lighting retrofit, but this has such a quick payback (less than 2 years) that is not eligible for grant funding. Budget Impact The EECBG grants do not require a local match, but the presence or absence of a local match will significantly impact the rating of our grant application and the likelihood of the City receiving funding. Therefore, after consulting with the Finance Director, I am recommending that the grant application request funding for 75% of the project cost and that the City provide a 25% local match, with approximately $10,000 $21,000 coming from the Building Fund. Relationship to Vision Conserving energy in the operation of City buildings contributes to Goal D: a vibrant, resilient and stable City. Requested Action If the Council concurs, it should offer a motion to direct staff to prepare and submit a grant application to the Minnesota Department of Commerce for funding to implement recommended energy efficiency improvements at the Police Station, with a 25% local match. t 1:' owens \e.brating 50 Yea Ce rs ~Take tomforfM~ Owens Companies, Inc. 930 East 80th Street Bloomington, MN 55420-1499 952.854.3800 FAX: 952.854.3769 www.owensco.com January 1~, 4010 Mr. D\.I~n~Toenyan City gf ~hakop'ee.. 129$Ol,!th Holmes Street Srakopee, MN9537~ SUBJECT; Police. ~tation Gae.rnst & Associates Report Propdsal P-8247 Pear Duane: Per your request, Owens Companies is offering the following proposal to provide services outlined in the <3aernst & AssoCiates report for the Shakopee Police Station located at 475 Gorman Street. .Ene.rSJY Manage.ment Commissioning OV\l~n~ will provide pr09ramming changes of the existing Johnson Controls automation system as outlined. 0 in the QverviewsectiQn of the report on Page 4. Specifically, we will provide an outlin~ and sequen~e of operation for energy recovery ventilation/demand control ventilation, VAV fresh air ventilation, discharge air, mixed air and supply fan schedule and garage makeup air units. Labor (QwEipns),.,. 44 Hours (project management) ........................................................ $2,8~2.00 Subcontractor.... (budget) ............................................................................................ $42,000.00 . L.abor - 220 Hours $27,000.00 (approximately) . Materials $15,000.00 (approximately) Ouel teChnology occupancy sensors, C02 sensors TWQ variable frequency drives (VFD's) New fresh air damPers Controls for high efficiency boiler Boiler water temperature sensors & control moaifications Total...,................................................................................................. $44,8820.00 ($45,000.00) Boiler System and VAV Box Minimum Owens to prqvide and install a hi~h effici~ncy hot water boiler, rated at 245,000 MBTlJ to be us~d for summer reheat and domestic water needs. Included is an 80 gallon domestic rrot water system. Also included are labor, piping mOaterials, rigging, electrical, plumbing, delivery, peni1its, and start",up. Programming changeos through the automation system for the summer reheat and 00 ' VAV supply fan schedule as well as boiler pump control would be .included. Building Services. Engineering. Water Treatment Mechanical Contracting · Automation · Home Comfort OWENS TECHNOLOGY COMPANIES Locally Owned. Nationally Recognized. Since 1957 An Equal Opportunity Employer ( , ) Mr. Duane Toenyan January 15, 2010 Page Two Labor.... 56. Hours..................... ........... ...... ....... ...........;...................... ............................... $6,608.00 .Equipment ............... ........................................................ ................................'............ $11,094.00 . Triangle Tl)be 245,000 MBTU boil~r . aoilermate domestic hot water system M~teria.I~/$ubc;ontr8~tors ............................. ..::...................................... ....................... $4,040.00 . Boiler piping, valves, venting . Plumber, electrician Miscellaneous........ ............... ,....................... ........................... ........................... ...... .:. .... $1,858.00 . Delivery, freight, rigging, permits, trip and tool charges Total...................... ..................................... n.. ...... ........ ................... .................,......... $23,600.00 Communic:ation Room Air Conditioning We will provide and install a 3-ton split system air conditioning unit without humidification capabiliti~~ 8$ requested. A stand alone humidification system could be addressed'if needed at a 'ater date. We will include equipment, labor, piping materials, rigging, electrical, rOOfing, delivery, permits and start up. l.abOF.... 24 hours.......................... .......................... ........................... ........................ .... $2;832.00 Equipment... ....... ....,..........................:..... ..................................................................... ..$6,300.00 . MultiAqua split system air conditioning unit Material$/Subcontractors ......... .................................... ....... n.. ......... .... ......................... $4,020.00 . Refrigeration piping, valves . Crane, roofing, electrician MiScellaneous ................. ............,....................,... ......................................;.................... $1 ,840.00 . Delivery, freight, permits, trip and tool charges Total............................................................................ .....................;..... ................. ...... $.14,992..00 Terms & Conditions This proposal is firm until June 1, 2010. Any additional repairs found durin@ the course of our installation would be an extra charge and you will be notified before proCE!eding. Our terms are net 15 days from invoice and progressingbillil'1gs' are acceptable as the project progresses. Please refer to our complete Terms & Conditions on the reverse side of this proposal. If YOLl would like to proceed, please authorize and return a signed c6py of thi~ proposal to my attention. If you have any questions, please call me directly at 952-703-5727. Thank you'. Sincerely, Accepted by: iSCO~P~C. PURCHASER: CITY OF SHAKOPEE Ma~Drogh ~ ~. . . Signature Techn. al Services Representative cc: Ms. Kris Wil$ol'l . ..... -" Assistant City Administrator Title Date