No preview available
 /
     
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.