08/27/2001 - Operations CommitteeAGENDA
OPERATIONS COMMITTEE
AUGUST 27, 2001
3:00 p.m.
XCEL ENERGY PROPOSAL
REVIEW PROPOSALS TO OPERATE COMMUNITY
CENTER FACILITIES
■ , Southwest Area YMCA
■ Wellbridge
d+ Lifetime Fitness
City of Eagan
III. LIQUOR POLICY FOR COMMUNITY CENTER
IV. &O -CATERING POLICY
V.
w. -VI -
CONSIDER METHOD FOR EXPENSING TEENS AND
SENIORS
SELECT THEME FOR "PLAY SPACE"
■ Northwoods
■ Baseball
■ Football
■ Cars
■ Etc.
VII. OTHER
VIII. ADJOURNMENT
I�
P-A'st't Y
1� &4A,
IMA
MEMO
—city of eagan
TO: Tom Hedges, City Administrator
FROM: Ken Vraa, Director of Parks and Recreation
Beth Wielde, Research and Special Projects, Parks & Recreation.40
DATE: July 16, 2001
SUBJECT: Xcel Energy/ Weidt Group Incentive Program
The City has been working with Xcel Energy and the Weidt Group to develop a strategy for the
most efficient and effective energy use plan for the Community Center facility. Discussion
between the Weidt Group, City staff, and architects TKDA has resulted in alternatives for an energy
savings plan that includes financial incentives.
The strategy is laid out threefold; first, meet the statutory energy code requirements; second, the
base energy elements already included in the design and development plans for the Community
Center, and third, `Bundles of alternatives" offered by Xcel Energy, which reduce energy
consumption, peak -loads- that qualify for incentives.
Bundle Strate!y
Bundles are comprised of energy saving fixtures and equipment. Each bundle becomes more
efficient and cost-effective as it moves up the hierarchy. To understand the way the bundles add to
the energy efficiency, it is important to examine the base elements, as described by the Weidt
Group:
• Low E glazing in windows
• R-16 Wall insulation
• Occupancy sensor control of private offices and storage/ small restroom areas
• Dual/multilevel switching of lighting in private offices, gymnasium, community rooms,
fitness/cardio, party/craft/ indoor play areas, performance/aerobic space, and senior lounge
• Manual dimming control of lighting in community room and teen center
• Gymnasium lighting at 0.80-1.00 W/s.f.
• Teen Center lighting at 0.90-1.10 W/s.f.
• Air-cooled chiller at 1.23 kW/Ton
• Gas boiler at 83% efficiency
• Variable speed drives on variable volume air handler(s)
Bundle 1 would add features to these base elements, which the design team has determined are
likely to be implemented:
0 Premium efficiency fan and pump motors
0
• CO2 control of outside air
Bundle 2 adds to the base elements and Bundle 1 elements:
• R-20 wall installation
• Air-cooled chiller at 1.16 kW/Ton
• Gas boiler w/ condensing technology (higher seasonal efficiency)
• Variable speed drives on heating and cooling water pumps
Bundle 3 adds to the base elements and Bundles 1 and 2:
• Stepped daylighting control in circulation spaces
• Sensible heat recovery.
Cost Effectiveness
The following charts (Figures 1 through 4) from the Weidt Group illustrate the energy savings with
each of the bundles. The energy savings are directly proportional to the monetary savings.
Figure 1 Annual Electrical Peak, KW
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Code Base
Cost Base
Bundle 1
Bundle 2
Bundle 3
Figure 2 Annual Electrical Energy Use, KWH
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Code Base
Cost Base
Bundle 1
Bundle 2
Bundle 3
C
Figure 3 Annual Natural Gas Energy Use, MMBTU
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Code Base
Cost Base
Bundle 1
Bundle 2
Bundle 3
3
' Annual Total Energy Use, MMBTU
Figure 4
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Code Base
Cost Base
Bundle 1
Bundle 2
Bundle 3
7,346
7,453
7,978
The Weidt group shows in Figure 5 that the bundles save "between 40% and 55%" when compared
to the Code Base. This represents savings of approximately $59,000 to $80,000 in energy costs per
annum. Note that equipment energy costs are not included in the models.
Figure 5: Annual Energy Costs for Bundles by End Use
Code Base;
Cost Base
Bundle 1
Bundle 2
Bundle 3
m Heating ❑ Cooling ■ Fan/pump ❑ Lights 0 Equip. Total
Funding; Options
The cost to include the items in each bundle increases, but so do financial incentives and
operational cost savings over time. The Weidt model anticipates payback from energy cost savings
for each of the bundles well within five years. Bundle 1 would pay back in 0.1 years, Bundle 2 in
1.7 years, and Bundle 3 in 3.2 years. However, with the incentives, payback would occur much
faster:
f Option ' Incremental
Construction Cost
-Code-
Base -
Bundle 1 $5,500
Bundle 2 $98,029
Bundle 3 1 , $203399
Paybac
I Incentive
Payback Rate
Anticipated Annual
k Rate
With Incentive
Energy Cost
-
-
-
$145,943
-
$19,150
-
$128,980
0.1
$43,000
Immediate
$86,992
1.7
$54,000
1.1 years
$69,925
3.2
$60,000
2:6.1years
$65?534
Because of the increased cost to pursue Bundles 1 and 2, it is important that it not compete with the
capital outlay for the building. Alternative funding methods need to be discussed. Retrofitting the
building for energy saving features in the future may prove more costly than putting them in during
the original construction.
Staff has calculated the anticipated energy costs associated with each bundle collectively over time,
illustrated in Figure 6. Note the significant difference between the collective cost of Bundle 3 over
10 years and the collective cost of Bundle 1 over 10 years, a difference of $214,588.
Figure 6: Projected Collective Energy Costs over 5 and 10 Years
Option
Anticipated Annual
Energy Cost
Over 5 Years
Over 10 Years
Code
$145,943
$729,715
$1,459,430
Base
$128,980
$644,900
$1,289,800
Bundle 1
$86,992
$434,960
$869,920
Bundle 2
$69,925
$349,625
$699,250
Bundle 3
$65,534
$327,670
$655,340
There are some options for the City to explore in order to implement Bundles 2 and 3 during
construction of the Community Center:
1. Include the bundle package in the building's capital outlay by compressing the plans further
or removing square footage. This option would significantly alter the configuration and
programmatic capabilities of the Community Center.
2. Xcel Energy offers a financing program for the energy saving bundles. It is important to
note, however, that Xcel does not give rebates on bundles they have financed.
3. The City could borrow from the General Fund or a similar fund and pay it back
incrementally from the Community Center operational budget, which would allow the City
to receive full financial incentives upon the opening of the facility. If this is the method the
City chooses, it would be crucial to include repayment as a line item in the Community
Center's budget each year.
Summation
The building design, as is currently approved, exceeds the state energy code. This base qualifies
for $19,150 in incentives offered by Xcel Energy. Bundle 1 adds $5,500 in cost, but the
incentive offered by Xcel increases to $43,000, while reducing energy expenses. Bundle 2
(which is all of Bundle 1 plus additional items) costs $98,029 with the incentive of $54,000, and
another increase of energy cost savings. Last is Bundle 3, which is all of Bundle 1 and 2 plus
additional items. Additional cost is $203,000, and the incentive is $60,000, with an estimated
energy cost saving of $ 63,446 per year. Several alternatives are offered to off -set the additional
costs associated with the bundles.