HomeMy WebLinkAbout2007/02/06 Item 9
CITY COUNCIL
AGENDA STATEMENT
~~ CITY OF
-~ CHULA VISTA
ITEM TITLE:
SUBMITTED BY:
REVIEWED BY:
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(./
2/06/07, Item ~
RESOLUTION AMENDING THE FY 2006-07 ENERGY
CONSERVATION FUND 1 SDG&E ENERGY PARTNERSHIP
PROGRAM BUDGET TO APPROPRIATE $708,750 FROM THE
SAN DIEGO GAS AND ELECTRIC PARTNERSHIP GRANT FOR
VARIOUS CITY ENERGY EFFICIENCY PROJECTS AND
AMENDING THE FY07 CAPITAL IMPROVEMENT PROGRAM,
ESTABLISHING A NEW CIP PROJECT, "CITY FACILITY
ENERGY EFFICIENCY (GG-I99)" AND APPROPRIATING
GRANT FUNDS AS NECESSARY
DIRECTOR OF GE~L SERVICES ~~_
CITY MANAGER 1/
4/5THS VOTE: YES 18I NO D
BACKGROUND
On September 19, 2006, the City Council approved a 3-year grant agreement with San Diego
Gas and Electric (SDG&E), which provides funding to the City for energy efficiency projects.
Staff is requesting appropriation of calendar year 2006 and 2007 funding in the amount of
$708,750. These funds will be used to retrofit and upgrade several City facilities with energy
efficiency equipment and pay for related General Services staff costs.
ENVIRONMENTAL REVIEW
Not applicable.
RECOMMENDATION
That Council adopt the Resolution and amend the FY 2006-07 Energy Conservation Fund 1
SDG&E Energy Partnership Program Budget and amend the FY 07 CIP Program to establish a
new CIP project (GG-199) and appropriating calendar year 2006 and 2007 funding in the amount
of $708,750 from the San Diego Gas and Electric Partnership Grant as follows:
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Year 1 Year 2 2-Year Total
(2006) (2007)
Enerzy Efficiency Projects (eIP):
CIP Expenditure $297,933 $228,138
Estimated CIP Staff Costs $56,442 $126,237
Total $354,375 $354,375 $708,750
BOARDS/COMMISSION RECOMMENDATION
Not applicable
DISCUSSION
The Department of General Services has been allocated $354,375 annually for three years from
the SDG&E Partnership Grant Program. These funds are to be used to implement energy
efficiency projects for City facilities that will help reduce City energy costs.
Chula Vista has over 100 City owned buildings or facilities that consume electricity and natural gas.
The City has approximately 550 electricity and natural gas meters and uses an estimated 18 million
kW-hrs of electricity and 800,000 therms of natural gas annually. The City's annual energy budget
is approximately $3.4 million. The City's energy use is projected to increase by at least 5% in 2007,
due to addition of new City buildings and infrastructure. The City's actual energy costs are also
projected to increase due to rising energy rates. Although the City has aggressively pursued energy
efficiency retrofits to reduce cost and meet its environmental goals, there are still many
opportunities to improve how the City uses energy.
This Grant component has the most flexibility in developing and implementing projects that
produce kilowatt and therm savings, however the component still establishes some aggressive
energy objectives. This component requires General Services to implement projects that reduce the
City's energy use by up to 5% per year for a cumulative reduction of up to 15% by 2008 as
compared to the 2005 energy use per square foot of building or facility. These objectives are made
all the more challenging by the City's historical commitment to energy efficiency that already
exceeds State efficiency standards by up to 20%. SDG&E and the CPUC have allowed the City to
fund full-time staff in recognition that throughout the State, the lack of dedicated, expert personnel
is the key barrier to developing and implementing projects with the greatest potential to demonstrate
maximum energy efficiency. This component of the Grant enables the City to develop institutional
expertise that will allow the City to manage projects and its energy use more effectively and
consistently in the short term so that it can demonstrate the value of investing a portion of the future
energy savings in staff and projects that build on that financial and environmental efficiency model.
Staff is recommending a new Capital Improvement Project, GG-199 be established for energy
efficiency projects. Several energy efficiency projects have been identified for implementation. A
detailed list of eligible projects including savings and cost is attached. Combined these projects
will generate an annual savings of $99,608 and 882,846 KWH and 393,041 Ibs per year in CO2
reductions.
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ENERGY EFFICIENCY PROJECTS SUMMARY
Staff has worked with SDG&E and the San Diego Regional Energy Office (SDREO) to identify
eligible energy efficiency projects, which will generate sustainable energy savings in a cost effective
manner. Retrofits are proposed at both Lorna Verde and Parkway Recreation Facilities and the
Police Building. The cost to upgrade these facilities is $407,880 less possible rebates and incentives
estimated at $140,660. The total available for energy efficiency projects from the 2006 and 2007
allocations is $566,071. The remaining funds of $158,191 will be used for energy upgrades to the
John Lippitt Public Works Center. The rebate and incentive savings of $140,660 will be used to
complete various smaller scale projects such as but not limited to T -8 lighting replacements, ball
field lighting, pools and pump lighting and replacement of recreational facility lighting fixtures.
Staff is currently working with SDREO to evaluate the cost effectiveness and energy savings
associated with these projects.
The final year of the grant (2008) makes another $354,375 available for projects and associated
staffing requirements. It is staffs intent to administer and complete the various projects described
above via the City's Capital Improvement Program, whereby a new Capital Improvement Project
(GG-199) is proposed to be established. The following is a summary of energy projects proposed to
be completed using the SDG&E Partnership funds:
NEW PROJECTS
Lorna Verde
The grant funding will be used to install a variable frequency drive (VFD) on the pool circulation
pump at Lorna Verde and retrofit/replace lighting. This project will result in an annual electrical
savings of 111,489 kilowatts per hour (KWH) and 89,750 lbs per year in CO2 reductions for a net
savings of $13,118 annually. The cost to implement this project is estimated at $24,764 after
rebates and incentives.
Parkway
The grant funding will be used to install a premium efficient motor and VFD on the pool
circulation pump and retrofit/replace lighting. This energy efficient project will result in an
annual electrical savings of 101,751 KWH and 81,911 Ibs per year in CO2 reductions for a net
savings of $11,490 annually. The cost to implement this project is estimated at $31,230 after
rebates and incentives.
Police Facility
The SDG&E Partnership funding will be used to make the HV AC system at the Police Facility
more efficient. The project will include retrofit of the turbocore, installation of a hatman loop and
airside balancing. The installation of this energy efficient equipment will result in an energy
savings of 669,606 KWH for a net savings of$89,594 annually.
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John Lippitt Public Works Center
Certain potions of this project have been completed and energy incentives have been reimbursed.
A total of 4 variable frequency drives (VFD) were added to the ventilation system and 2 were
retrofitted for the exhaust fans in the Administration building of the Public Works Center. The
remaining aspects of these projects are being reevaluated and submitted for additional incentives
under new SDG&E and San Diego Regional Energy Office programs. The scope includes
replacement of metal halide lighting with new T -8 lamps and ballast, installation of additional
skylights with lighting controls, installation of AlC units to reduce run time on main HV AC
chillers and possible redesign of shop heaters to reduce run time on heating units and pumps.
Numerous projects have recently been completed by General Services resulting in energy
savings. These projects include:
EXISTING/ONGOING PROJECTS
Vendinz Miser Installations
Vending machine misers have been were recently installed on 47 vending machines throughout
the City. The estimated annual energy savings is 46,105 (KWH) for an annual savings of
$6,166 and 37,115 lbs per year in CO2 reductions.
Civic Center Proiect
Recently completed is Phase II of the Public Service Building. Energy efficiency upgrades
include installation of a Self-Generation Photovoltaic system up to 30 KWH and Savings by
Design of 44,771 KWH.
The City saved 141,195 KHW and 3,239 therms from "Savings by Design" at the Civic Center
Project Phase I (City Hall)
Phase III of the Civic Center (Building 300) will produce additional "Savings by Design" energy
savings of86,727 KHW and 1015 therms annually.
Police Department
Additional energy audits and possible retrofits to chiller plant are being evaluated. Since the
opening of the Police Facility, General Services/HV AC staff has generated a savings of close to
$54,000 over the last two years in energy costs as a result of equipment adjustments and
monitoring.
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STAFF COSTS AND REIMBURSEMENTS
The California Public Utilities Commission (pUC) provides the funding for the SDG&E
Partnership program. The funds are designated for projects that reduce City energy consumption
and directly related staffing costs. It is the PUC's and SDG&E's desire that recipients of the
grant establish dedicated staff positions to manage, plan and implement energy efficiency
projects. It is staffs desire as well to establish such a dedicated position, however, in light of the
budget constraints facing the City, staff is recommending the issue of creating a new position be
deferred until the final year of the grant allocation in 2008.
In the interim, existing positions within General Services will be used to implement the projects
identified above. The Department of General Services is confident that staffing resources can be
stretched and maintenance schedules altered for a short duration of time to successfully complete
the projects. In the short term this will both meet program goals of the grant and have a positive
impact to the General Fund. This solution provides short-term results, and serves as a temporary
measure until such time as the City is able to add an Energy Projects Manager position to
administer energy efficiency proj ects, sustain energy savings and focus on curtailing future City
facility energy costs.
Chula Vista is one of a few cities chosen throughout the State by the PUC and SDG&E to model
and test if the investment in staff will result in sustain and expanded energy conservation beyond
the grant period. These agencies are providing the initial "seed" funds to put in place a program
and related staff, systems and practices that continue the initial energy savings and continuously
identify and expand energy conservation savings. They recognize that the lack of available
dedicated staff has been an impediment to the success of previous programs.
In recent years, the number of City-owned facilities has grown significantly. The recent growth
in new facilities coupled by aging City facilities has had a significant impact on available City
staff resources. The Operations Division of General Services (specifically, Construction and
Repair) now manages a portfolio of 118 facilities with no major facility maintenance program.
The SDG&E Energy Partnership Grant provides the City a unique opportunity to link resources
to improve energy efficiency of City facilities and equipment as well as address HV AC and
electrical facility maintenance issues. Existing General Services Operations staffing has
remained relatively the same despite the addition of new facilities and maintenance requirements
of aging City facilities.
2008 Grant Funding
In 2008, the grant allocation will be $354,375. Like the prior two years, this funding can be used
to complete additional energy projects and, if feasible, add a new position: Energy Projects
Manager. Staff believes that in order to continue this effort in the long-term, this position is
necessary. The SDG&E Partnership Grant will pay for the first year costs of the position. The
ongoing annual cost at Estep of the position is $103,237 (salaries & benefits). Assuming that
the grant is not extended beyond 2008, staff is confident that the savings generated heretofore, by
the planned projects discussed above and by future projects will more than off-set the on-going
costs of the position. For example the combined savings of the Lorna Verde, Parkway and the
Police Facility energy efficiency upgrades will generate an annual savings of $100,220. While it
is the desire of staff to see the City realize these savings within the overall City budget and not
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have them offset by new staff costs, it will not be the recommendation of General Services to
continue to divert existing maintenance and repair related staff to this effort at the expense of the
ongoing maintenance of City facilities. Staff anticipates the position will continue to generate
enough offsets from energy audits, monitoring and various other energy efficiency upgrades.
This will both minimize the cost of the position to the General Fund and have a positive impact
on the General Fund as well as the environment.
The proposed position would plan, organize and direct the Energy Services Program activities,
including the development and implementation of program goals and objectives. The position
would conduct and maintain an inventory of City facilities and equipment to improve energy
utilization. The Energy Project Manager will prepare energy calculations, schematics and coordinate
preliminary design and installation work for proposed energy proj ects as well as identifY energy
efficiency equipment on City capital projects. The position will conduct and coordinate on-site
energy audits and meet with department representatives to discuss energy management and
conservation issues and proj ects. It is also proposed that this position would investigate and resolve
energy efficiency issues associated with design interpretation and/or contract or equipment
warrantees and performance. This position would also analyze and prepare reports related to the
evaluation of energy utilization of City facilities and equipment as well as maintain energy records.
Currently, there is no centralized review or management of utility costs in the City. Staff anticipates
that sufficient savings will be generated for an ongoing offset of costs associated with the addition
of this position after the grant funding has been exhausted. The cost of the position will be paid for
from the grant allocation and offset by future savings resulting from utility savings. The cost
effectiveness of the position will be monitored annually via the budget process.
Staff has worked with Human Resources to establish the appropriate classification and salary for
this position. If approved by the City Council in 2008, this new position will be added to the
middle manager classification schedule.
DECISION MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site
specific and consequently the 500 foot rule found in California Code of Regulations section
18704.2(a)(I) is not applicable to this decision.
FISCAL IMPACT
The Department of General Services has been allocated $354,375 annually for three years from
the SDG&E Partnership grant program. Staff is recommending appropriation of 2006 and 2007
grant funding in the amount of $708,750. Acceptance of funds will have a positive impact on the
General Fund:
. It provides $526,071 for a new Capital Improvement Project, "City Facility Energy
Efficiency (GGI99)." This CIP will enable staff to implement the Lorna Verde;
Parkway, Police Facility and John Lippitt Center energy efficiency projects identified
above and fund other energy efficient retrofits and equipment for City facilities.
Currently, no funds are designated for this purpose and major facility maintenance is
prolonged and conducted on an emergency basis.
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. The grant reimburses staff costs (various General Services staff, electrician and HV AC
staff time) associated with implementation of the energy efficient proj ects. The total staff
time reimbursement is estimated at $182,679.
The Grant Agreement provides for full reimbursement to the City for implementation costs on a
quarterly basis. The grant is expected to produce energy savings for City facilities that will
phase in over the grant term, and continue beyond the Agreement.
ATTACHMENTS
Attachment I - Energy Projects Detail
Prepared by: Jracsema Quilantan, Deputy Director, Department afGeneral Services
M:\General Services\GS Administration\Council Agenda\SDG&E Grant\Rev SDGE Grant Energy Projects 2..Q6~07.doc
9-7
Install a VFO on the pool circulation pump
93,435
0.0
10,0
$9,388
$14,000
$7,510
$6,490 0,7 75,217
2 Retrofil/Replace lighting
18,054
0.0
11.0
$3,730
$20,440
$2,166
$18,274 4.9 14,534
3 Use Pool Cover
x
50%
x
$0
$0
none
$0 Immediate unknown
Totals
111,489
estimated
21.0
$13,118
$34,440
$9,676
$24,764 1.9 89,750
CD
I Install a premium efficient motor on the
CO 8,971 0.0 1.2 $955 $2,000 $1,076 $924 1.0 7,222
pool circulation pump
2 Install a VFO on the pool circulation pump 49,440 00 0.0 $2,243 $8,750 $5:933 $2,817 1.3 39,800
3 RetrofiVReplace UghUng 43,340 0.0 25.2 $8,292 $32,690 $5,201 $27,489 3.3 34,889
4 Use Pool Cover x 50% x $0 $0 none $0 immediate unknown
Totals 101,751 esUmated 26.4 $11,490 $,43,440 $12,210 $31,230 2.7 81,911
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CV _ GenServ _Energy Opportunities 2006-2007
r~ Est. Exisllng Hartman Energy Usage Demand Ga. Energy Est. Est. SDRED Final cost Simple
Tofal Tonnage Full/Dad Annual Costs Implementa BID after
Idea Eft. LOOP Eft. Savings Savings Savings Payback
(foils) hours Load Savings lion Cost Incentive Incentive
0 (ton-hrs) (kW/ton) (kW/ton) (kWhlyr) (kW) (therma) ($/yrl ($) ($) ($) (yr.)
Inslall VAV air-
434 handler oplimization n.a n.a. n.a. n.a. 220,968 25.2 14,463 $37,146 $60,000 $42,506 $37,494 1.01
(TRAV VS. current
24/7 operation)
2 434 1,209 524,343 1.31 0.46 448,637 54.0 0 $52,446 $250,000 $76,268 $173,732 3.31
Extended Totals
kWh Savings
882,846
Therms Demand
14,463 127
Annual $ SaY
$99,608
Incentive
$140,060
City $
$283,483
CO,
393,041
Total Cost
$407,880
PayBack
2.8
CD
I
CD
This report was prepared as a result of work sponsored by the California Public UtiJiUes CommIssion (Commission). It does not necessarily represent the
views of the Commission, its employees, or the Slat~ of California. The Commission, the State of California, ils employees, contractors, and
subcontractors make no warranty, express or Implied, and assume no legal liability for the Information in this report; nor does any party represenlthat the
use of this information will not infringe upon privately owned rights. This report has not been approved or disapproved by the Commission nor has the
Commission passed upon the accuracy or adequacy of the information in this report. Mention of trada names or commercial products does not constitute
endorsement or recommendation of use.
CV_GenServ_Energy Opportunities 2006-2007
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RESOLUTION NO. 2007-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FY 2006-07 ENERGY
CONSERVATION FUND I SDG&E ENERGY PARTNERSHIP
PROGRAM BUDGET TO APPROPRIATE $708,750 FROM
THE SAN DIEGO GAS AND ELECTRIC PARTNERSHIP
GRANT FOR VARIOUS CITY ENERGY EFFICIENCY
PROJECTS AND AMENDING THE FY07 CAPITAL
IMPROVEMENT PROGRAM, ESTABLISHING A NEW CIP
PROJECT, "CITY FACILITY ENERGY EFFICIENCY (GG-
199)" AND APPROPRIATING GRANT FUNDS AS
NECESSARY
WHEREAS, on September 19, 2006, the City Council approved a 3-year grant agreement
with San Diego Gas and Electric (SDG&E), which provides funding to the City for energy
efficiency projects; and
WHEREAS, the Department of General Services has been allocated $354,375 annually
for three years and staff is requesting appropriation of calendar year 2006 and 2007 funding in
the amount of $708,750; and
WHEREAS, these funds are to be used to implement energy efficiency projects for City
facilities that will help reduce City energy costs; and
WHEREAS, Chula Vista is one of a few cities chosen throughout the State by the PUC
and SDG&E to model and test if the investment in staff will result in sustain and expanded
energy conservation beyond the grant period; and
WHEREAS, $566,071 of the funds are for a new Capital Improvement ~roject, "City
Facility Energy Efficiency (GGI99)" which will enable staff to implement the Lorna Verde;
Parkway, Police Facility and John Lippitt Center energy efficiency projects and fund other
energy efficient retrofits and equipment for City facilities; and
NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista
does hereby amend the FY 2006-07 Energy Conservation Fund I SDG&E Energy Partnership
Program to appropriate $708,750 from the San Diego Gas and Electric Partnership Grant for
various City energy efficiency projects and amending the FY07 Capital Improvement Program,
establishing a new CIP Project, "City Facility Energy Efficiency (GG-199)" and appropriating
grant funds as necessary.
Presented by
. /)'~lj'J~)
\..n~M-oo
-to \(itY Attorney
Jack Griffin
Director of General Services
J:\General Services\GS Administration\Council Agenda\SDG&E Grant\SDGE Reso IOI-23-07.doc
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