HomeMy WebLinkAbout10-26-2009 City council agendaSPECIAL MEETING —6:00 P.M. ADMINISTRATIVE CONFERENCE ROOM,
13777 FRUITVALE AVENUE.
CALL MEETING TO ORDER 6:00 P.M.
COMMUNICATIONS FROM PUBLIC
AGENDA
SPECIAL MEETING
SARATOGA CITY COUNCIL
OCTOBER 26, 2009
REPORT OF CITY CLERK ON POSTING OF AGENDA
(Pursuant to Gov't. Code 54954.2, the agenda for this meeting was properly posted on
October 23, 2009)
Oral Communications on Non Agendized Items
Any member of the public will be allowed to address the City Council for up to three (3)
minutes on matters not on this agenda. The law generally prohibits the council from
discussing or taking action on such items. However, the Council may instruct staff
accordingly regarding Oral Communications under Council Direction to Staff.
Oral Communications Council Direction to Staff
Instruction to Staff regarding actions on current Oral Communications.
1. Siemens Energy /Water Efficiency Study Presentation from 6:00 p.m. to 6:45 p.m.
Recommended Action:
Informational only.
2. Budget Policies Review
Recommended Action:
Accept report and direct staff accordingly.
ADJOURNMENT
In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials
provided to the City Council by City staff in connection with this agenda are available at the
office of the Community Development Department Director at 13777 Fruitvale Avenue,
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MEETING DATE: October 26, 2009 AGENDA ITEM:
DEPARTMENT: City Manager's Office CITY MANAGER: Dave Anderson
PREPARED BY:. Crystal Morrow DIRECTOR: Barbara Powell
Administrative Analyst II Assistant City Manager
SUBJECT: Presentation of Siemens Clean Energy Project Preliminary Study Results
RECOMMENDED ACTION:
SARATOGA CITY COUNCIL
Accept Siemens Clean Energy Project Preliminary Study results, which will be presented by
Kelly Fergusson, Business Development Manager for Siemens, Self funding Clean Energy
Projects Local Government
BACKGROUND:
At the March 4, 2009 City Council Meeting, Ms. Fergusson provided a presentation on the
Siemens Energy Management Program. Following the meeting, the City signed a memorandum
of understanding to allow Siemens to conduct a free preliminary study of the City's energy and
water use.
Energy Performance Contracting
The Siemens Energy Management Program uses energy performance contacting, which is a
financing mechanism that allows client organizations to carry out "clean" energy projects
without an upfront investment. Energy performance contracting can be used for energy
efficiency, water saving, renewable energy projects, and more. Initial project costs are paid for
by a company like Siemens who is then repaid through savings that result from the project.
Preliminary Study Results
During the preliminary study, engineers from Siemens reviewed the City's use of energy and
water at all of its facilities, parks, medians, landscaped areas, and lighting and landscaping
districts. Results of the preliminary study have revealed that while the City has already carried
out a number of energy saving projects, there is still potential to implement cost effective energy
efficiency improvements. Siemens has provided three different project options.
Option Payback Cost Range Description
1 10 years $1 million Low hanging fruit lighting upgrades, PC power
management, irrigation controls, streetlight upgrades
2 20 years $1.4 million Low hanging fruit and HVAC upgrades
3 30 years $4.2 million Low hanging fruit, HVAC upgrades, and library
photovoltaic system
Page 1 of 3
All of the potential projects are expected to provide an annual average savings of $80,000 in
water and energy expenses. Initially, these savings will be used to pay for the cost of the project.
Further details on these options will be presented during the study session on October 26, 2009.
Detailed Study
Presentation of the results of the preliminary study marks the end of the first phase of Siemens'
performance contract process. The next stage in the process is a detailed study. At the end of
this phase, it is expected that Siemens and the City should have the information needed to either
move forward with project implementation or end the performance contracting process. More
specifically, this information will include:
In depth analysis of existing energy and water consumption
Cash flow analysis of the project
Performance measures and criteria for the project
Financing packing that will include any incentives or grants that may be available
Letter of Intent
If the City Council wants to move forward with the detailed study, a letter of intent will need to
be approved by the City Council at a future meeting. The letter of intent would authorize
Siemens to conduct the detailed study and commit the City to pay for the cost of the study if the
Council decides to terminate the performance contracting process end after the study is
complete. The estimated cost of the detailed study is $50,000.
Additionally, the letter of intent helps to provide guidance during the detailed study and project
development. Consequently, the Council may want to address any priorities or project
requirements in the letter of intent to provide direction for the detailed study and project
recommendations. Additions to the sample letter of intent provided by Siemens (Attachment A)
may include:
Projects or improvements that the Council has an interest in
Energy efficiency performance measures
Preferred payback period length and maximum project cost
Financing opportunities or techniques that the Council has an interest in
Request that Siemens provide a timeline, including milestones, for the detailed study
FISCAL IMPACTS:
N/A
CONSEQUENCES OF NOT FOLLOWING THE RECOMMENDED ACTIONS:
N/A
ALTERNATIVE ACTION(S):
The City has already executed a number of efficiency improvements and plans to implement
many energy and water conservation projects in the next five years. Both completed and
anticipated projects are listed in Attachment B.
Page 2 of 3
Most of the projects are on the existing five year facility maintenance schedule and will be
financed with existing CIP, lighting and landscaping assessment districts (for district specific
projects), and maintenance budgets.
The California Energy Commission (CEC) is offering 1% and 3% loans for energy efficiency
and energy generation projects. Similar to the performance contracting model, the CEC requires
that these loans be repaid through energy cost savings. If the City applies and receives a CEC
loan then it will have the upfront capital needed to complete anticipated clean projects sooner
than is currently expected.
FOLLOW UP ACTION(S):
Implement Council direction.
ADVERTISING, NOTICING AND PUBLIC CONTACT:
Nothing additional.
ATTACHMENTS:
Attachment A: Sample letter of intent to authorize Siemens to conduct a detailed study
Attachment B: Completed and anticipated clean energy projects
Attachment C: California Energy Commission 1% and 3% energy efficiency and energy generation loans
Page 3 of 3
September xx, 2009
Kelly Fergusson
Siemens Building Technologies, Inc.
25821 Industrial Boulevard, Suite 300
Hayward, CA 94545
Subject: Letter of Intent
Re: Energy and Cost Savings Project for the City of Saratoga
Dear Ms. Fergusson:
[City of Saratoga Letterhead]
This document is to serve as a Letter of Intent between Siemens Building Technologies, Inc.
(Siemens) and City of Saratoga (CS).
This letter is our authorization for Siemens to conduct a detailed energy study necessary to
provide CS with a final proposal for capital improvements resulting in energy and resource
savings for the City's facilities and systems.
As a parameter of the study, project financing will be proposed for 10, 20 and 30 -year payback
projects. The proposal for each option will be based on the presumption that the energy and
resource conservation measures will be financed with a capital lease program based in whole or
in part on energy and resource savings realized from the proposed improvements.
Solar photovoltaic generation, if included in the final proposal, will also be based on capital lease
to -own purchase, although a Power Purchase Agreement (PPA) arrangement will also be
investigated. The city has approximately $300,000 in Library Bond proceeds that may be used to
"buy down" a portion of the project cost.
Upgrades in Lighting and Landscape Districts will be assumed to be paid for from the districts'
captial funds.
Siemens will assist CS with obtaining federal stimulus EECBG funding, state funding, utility
incentives, and rebate programs by completing the appropriate applications, where applicable.
[Capital contribution to the project from federal stimulus EECBG for small cities funds is
anticipated to be approximately $150,000 not included in current options].
The City will assist Siemens in its effort to prepare this proposal by providing information deemed
necessary and appropriate to conduct a thorough survey. This information should include, but is
not limited to:
Energy records.
Service records.
Service contract data.
Engineering drawings.
Building operating schedules.
Equipment inventory.
Equipment operating and maintenance data.
Access to the site.
Based upon this proposal meeting the above stated financial criteria, it is the intent of CS to enter
into a contract with Siemens for the completion of the proposal recommendations. The cost of the
detailed energy study, indicated below, would be rolled into the implementation cost, once the
project is approved for implementation.
Turnkey implementation would be provided for engineering, costing, procurement, construction,
and commissioning, as well as prospectively for operation /service.
Should CS choose not to enter into the implementation phase of the agreement with Siemens;
CS shall reimburse the cost of the detailed energy study in the amount of $XXX. Upon payment,
the report would become the property of the CS.
We look forward to this partnership and to the successful completion of the project.
Sincerely,
David Anderson
City Manager
City of Saratoga
Acknowledged and accepted:
Balachandar Jayaraman
General Manager, Western Zone
Energy Environmental Solutions
Siemens Building Technologies
Completed and Anticipated Clean Energy Projects
Project
Smart Irrigation
Controls
Well Water
Micro Spray
Sprinklers
Turf Reduction
Current Status
Public Works started installing Calesnse
irrigation controllers in City parks,
medians, and lighting and landscaping
assessment districts (LLAD) in 2001.
Calsense controllers have been installed
in all City parks, except Beauchamps, and
on most City medians. Most of the larger
LLADs has also have controllers.
Calsense controllers can be managed
remotely through a computer and detect
weather conditions and transfer rate of
evaporating water to determine
appropriate watering levels.
Water used at the Civic Center and
Heritage Orchard is provided by a well
beneath the Orchard. The City has been
using the well since 2004.
Micro spray sprinklers have been
installed in the Heritage Orchard in 2004
to reduce runoff water.
The Santa Clara Valley Water District
offers a landscape replacement rebate
for organizations that replace turf with
drought resistant plants or permeable
hardscapes. The City is eligible to receive
$.75 /square foot of turf that is removed.
Results
The City sampled water use in 1 park,
El Quito, to get an estimate of the
water savings realized as a result of
the Calsense equipment. At El Quito
Park, controllers at reduced water
consumption at the park by more
than 53 Staff believes similar
savings have been achieved at other
locations.
Use of well water at the Civic Center
and Heritage Orchard has reduced
water expenses at both sites by more
than 30
Previously, the Orchard was watered
using higher volume sprinklers. Water
was distributed so quickly that the
soil could not absorb all of it,
resulting in runoff water. Micro spray
sprinklers distribute water in a
smaller volume over a longer period
of time to allow soil to absorb water.
Consequently, the micro spray
sprinklers have virtually eliminated
runoff and reduce water
consumption.
Removing turf helps reduce water
use, emissions created by mowers
and other landscape equipment,
pesticide use, and maintenance costs.
Future Work
Controllers to be installed FY 2009/10:
Bellgrove LLAD (Phase 1)
Big Basin Way
Prides Crossing Lighting LLAD (Phase 1)
Historical Park
Controllers to be installed FY 2010/11:
Bellgrove LLAD (Phase 2)
Prides Crossing LLAD (Phase 2)
Arroyo Saratoga LLAD
Beauchamps Park
Within the current fiscal year, Hakone Gardens
will be transitioned to well water.
No further work is necessary.
Staff has identified 38,584 square feet of turf that
can be removed from City parks. The rebate for
the removal of this turf will be close to $29,000.
Turf reductions are expected to be completed by
the end of the 2010/2011 fiscal year.
Nozzle Replacement
Low Flow Fixtures
Fleet Vehicles
HVAC
Public Works staff
Most sprinkler nozzles spray within a 180
degree range. Such a wide spray is not
necessary for all medians or narrow
spaces. Public Works staff has been
installing new sprinkler nozzles with a
narrower spray area. At this time, 25% of
the City's medians have had sprinkler
nozzles replaced (if necessary).
Recreation and Facilities staff installed
low flow fixtures in all of the restrooms in
City facilities. This includes 15 faucets and
25 toilets.
The City currently has 2 hybrid and 4
alternative fuel vehicles in its fleet.
When the City's HVAC units reach the
end of their lifetime, City staff has been
replacing them with new high efficiency
units. In the past few years, 7 of the City's
38 HVAC units have been replaced with
more efficient equipment.
A recent study of the City's HVAC units
has revealed that there are 6 units that
are operating below peak performance
and will need to be replaced soon.
LED Traffic Signals All City traffic signals were converted to
LEDs in 2001. This includes the 13 traffic
signals controlled by the City. The 15
other signalized intersection within City
limits that are controlled by Caltrans, San
Jose, and Cupertino have also been
To better understand the benefits of
nozzle replacements, staff conducted
a study of water consumption at
Sunland LLAD. The study showed that
replacing nozzles reduced total water
use by 50 gallons of water per
minute. Similar reductions are
expected in other locations.
Low flow faucets use just 1 gallon of
water per minute. Previously, the
faucets used 3 gallons of water per
minute.
Low flow toilets use 2.5 gallons of
water per flush, which is 1 gallon less
than before.
The use of alternative fuel and hybrid
vehicles has helped the City reduce
fuel consumption and production of
greenhouse gas emissions.
New energy efficiency HVAC units use
approximately 20% less energy than
older units.
LEDs use far less energy than
traditional signal lights and have a
longer lifespan. At the time the LED
traffic signals were installed, it was
estimated the LEDs would save the
City $15,000 annually.
Staff expects all sprinkler nozzles replacements to
be completed by summer 2010.
No further work is necessary.
Installation of low flow fixtures is complete, not
future work is necessary.
The City expects to purchase two more hybrid
vehicles in fiscal year 2009/10.
All of the 6 of the HVAC units operating below
peak performance will be replaced in the next 5
years.
LED Street Lights
LED Exit Signs
Motion Sensor Light
Controls
T8 Lights Ballasts
Energy Star
Appliances
Cool Roofs
replaced with LEDs since 2001.
Staff has identified several areas that
would benefit from LED street lights.
Some of these include LLADs that either
have or will soon have funding available
to cover the cost of installing LED lights.
LED exit signs have been installed in all of
the City's facilities. The signs were
provided at no cost to the City by PG &E.
Staff is exploring opportunities to install
motion sensor Tight controls in
bathrooms and common areas.
Staff has upgraded all the lights in City
facilities to more efficient T8 lights.
Staff has started purchasing energy star
equipment when it is necessary to buy
new appliances or electronic equipment.
Cool roofs have been installed on the City
Hall /Administration building overhang,
Theater, and Library.
LED street lights have a longer
Iifespan, use Tess energy, and require
Tess maintenance than traditional
street lights.
LED exit signs use approximately 30%
less energy than traditional exit signs.
Motion sensors turn off lights in
common areas when the space is
vacated. As a result, the City expects
to reduce energy use.
T8 lights use approximately 25% Tess
energy than older T12 lights.
Energy Star is a labeling program that
identifies energy- efficient products. It
helps consumers purchase products
that are energy efficient.
Cool roofs provide 2 -5% savings in
energy use.
It is expected that LED street lights will be installed
in Bellgrove LLAD, Azule LLAD, Sarahills LLAD, and
the Village within the next four to five years. While
the cost of installing the LEDs in the LLADs will be
covered by district funds, the City may be able to
use stimulus funds to cover the cost of installing
LED lights in the Village.
No further work is necessary; all exit signs have
been replaced with LEDs.
Work areas and restrooms will be surveyed to
determine the most cost effective locations to
install motion sensors.
No further work is necessary.
Transitioning to energy star equipment will be
carried out on an ongoing basis and new
equipment needs to be purchased.
Staff plans to install cool roofs on the City
Hall /Administration building, City Hall /Community
Development building, and community center
within the next 5 years.
STATE OF CALIFORNIA NATURAL RESOURCES AGENCY
CALIFORNIA ENERGY COMMISSION
1516 NINTH STREET
SACRAMENTO, CA 95814 -5512
www.energy ca.gov
American Recovery and Reinvestment Act (ARRA)
NEW LOWER INTEREST LOAN RATE
1 Percent Loans
For Energy Efficiency and
Energy Generation Projects
One percent loans? Yes! Adding American Reinvestment and Recovery Act (ARRA)
funding to California's existing Energy Conservation Assistance Account (ECAA)
program, the Energy Commission is providing loans with a low interest rate of
1 percent that can help your local jurisdiction invest in energy efficiency, save money
reduce greenhouse gas emissions, and build new jobs and industries for your
community.
The Energy Commission accepts loan applications on a first -come, first- served basis
for cost effective energy projects. Loan financing may be used in conjunction with
other funding. The 1 percent rate applies to loans made on or after September 9,
2009, and ends when a new notice is issued. The Energy Commission's 1 percent
interest rates will not be applied retroactively to existing loans.
The terms and conditions of the ARRA 1 percent interest rate loan require
accountability requirements for tracking and monthly reporting of the funds. Loan
recipients must account for these funds separately to meet ARRA federal reporting
requirements.
Projects that are not eligible for an ARRA funded loan may qualify for an ECAA
funded loan at an interest rate of 3 percent per year.
Who is eligible?
ARNOLD SCHWARZENEGGER, Governor
Cities, counties, special districts, public schools, colleges and universities, public
care institutions, and public hospitals are eligible to apply.
Projects on facilities owned or operated by California state agencies are not eligible
for these funds.
How much is available and what is the maximum amount per application?
The maximum loan amount is $3 million per application and $25 million are currently
available. Organizations with existing loans from the Energy Commission must
demonstrate that their current loan- funded projects have achieved substantial
progress before another loan will be awarded. There is no minimum loan amount.
What types of projects are eligible?
Projects with proven energy and /or capacity savings are eligible, provided they meet
the ECAA eligibility requirements. Common projects include energy efficiency
upgrades to:
Lighting systems
Heating, ventilating and air conditioning systems
Light emitting diode (LED) traffic signals
Energy management systems and equipment controls
Pumps and motors
Cogeneration systems
Renewable energy projects
What projects are prohibited?
Projects that are not consistent with the ARRA project funding criteria, including:
Swimming Pools
Gambling Establishments
Aquariums
Zoos
Golf Courses
What are the project/loan requirements?
There are stringent ARRA reporting and monthly monitoring requirements detailed in
the 1 percent loan agreement.
Projects funded by ARRA loans must be completed and loans fully disbursed
(i.e., all invoices must be submitted and paid) on or before March 31, 2012.
ARRA loan funds may only be used to supplement and may not be used to
supplant funds already committed or expected to be received in support of the
loan funded project.
Loans for energy projects must be repaid from energy cost savings within 15
years, including principal and interest (approximately 13 years simple
payback for the 1 percent interest rate funding). Simple payback is calculated
by dividing the dollar amount of the loan by the anticipated annual energy
cost savings.
ARRA funded loans will be amortized on the estimated annual energy cost
savings achieved by the loan- funded project.
The loan term cannot exceed the useful life of loan- funded equipment.
Only approved project related costs with invoices dated after loans are
officially awarded by the Energy Commission at a Business Meeting are
eligible to be reimbursed from loan funds. If the application is not approved for
any reason, the Energy Commission is not responsible for reimbursement of
any costs.
How can I get an application?
The application is available online at: [http: /www.energy.ca.gov /efficiency /financing
A print copy may be requested by contacting the Energy Commission's Public
Programs Office at (916) 654 -4104 or by submitting a written request to:
Any Questions?
Notice Date: September 16, 2009
California Energy Commission
Special Projects Office
1516 Ninth Street, MS #42
Sacramento, CA 95814 -5512
E -mail: [pubproci eneray.state.ca.us]
Contact the Energy Commission's Special Projects Office at (916) 654 -4104 or by
E -mail at pubproc aenegy.state.ca.us.
News media should direct inquiries to the Media and Communications office at
(916) 654 -4989.
Notice of 3 Percent Loans For Energy Efficiency and Energy Generation P... http://www.energy.ca.gov/contracts/efficiency_pon.html
Home contracts efficiency pon
STATE OF CALIFORNIA —THE NATURAL RESOURCES AGENCY Arnold Schwerzenegger, Gamma-
1 of 2
California Energy Commission
1516 Ninth Street
Sacramento, CA 96814
Website: wwx.energy.cagov
Consumer We*site: www.ConsumerEnergyCenter.org
Children's Weberte: www energyqueet gov
NEW LOWER INTEREST LOAN RATE
3 Percent Loans For Energy Efficiency And Energy
Generation Projects
Budgets are shrinking, energy costs are increasing. Now is the best time to invest in energy
efficiency with a new lower interest rate of 3 percent. Up to $24 million in loan funds from the
California Energy Commission (Energy Commission) are available for energy cost saving projects.
Loan applications are accepted on a first -come, first served basis. The new rate applies to loans
made on or after July 9, 2009, and ends when a new notice is issued. The 3 percent interest rate will
not be applied retroactively to existing loans.
Who is eligible?
Cities, counties, special districts, public schools, colleges and universities, public care institutions,
and public hospitals are eligible to apply. Nonprofit entities such as schools, hospitals and public
care facilities are not eligible for these funds.
How much is available and what is the maximum amount per application?
Up to $24 million in funds are currently available with a maximum loan amount of $3 million per
application. If organizations already have existing loans from the Energy Commission, they must
demonstrate that their existing loan- funded projects are progressing before another loan will be
awarded. There is no minimum loan amount.
What projects are eligible?
Projects with proven energy and /or capacity savings are eligible. Common projects include
energy efficiency upgrades to lighting systems; heating, ventilating and air conditioning
systems; light emitting diode traffic signals; energy management systems and equipment
controls; cogeneration systems; pumps and motors; and renewable energy projects.
Energy audits and feasibility studies may be eligible for loans.
What are the project/loan requirements?
Projects must demonstrate technical and economic feasibility.
Loans for energy projects must be repaid from energy cost savings within 15 years,
including principal and interest (approximate 11 years simple payback). Simple payback is
calculated by dividing the dollar amount of the loan by the anticipated annual energy cost
savings.
Loans awarded for energy audits /studies only must be repaid within two years.
10/21/2009 2:33 PM
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Notice of 3 Percent Loans For Energy Efficiency and Energy Generation P...
h ttp://www.energy.ca.gov/contracts/efficiency_pon.ht m l
The loan term cannot exceed the useful life of loan- funded equipment.
Only approved project related costs with invoices dated after loans are officially awarded by
the Energy Commission at a Business Meeting are eligible to be reimbursed from loan
funds. If the application is rejected for any reason, the Energy Commission is not
responsible for reimbursement of any costs.
How can I get an application?
The application is available online at www.energy.ca.gov /efficiency /financing
Or receive a print copy by contacting the Energy Commission's Special Projects Office at (916)
654 -4104 or by submitting a written request to:
Any Questions?
California Energy Commission
Special Projects Office
1516 Ninth Street, MS #42
Sacramento, CA 95814 -5512
E -mail: [pubprog @energy.state.ca.us]
Contact the Energy Commission's Special Projects Office at (916) 654 -4104 or by e-mail at
[pubprog @energy.state.ca.usj
News media should direct inquiries to the Media and Communications office at (916) 654 -4989.
Date online: July 9, 2009
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Copyright 1994 -2009 California Energy Commission, All Rights Reserved
State of California, Arnold Schwarzenegger, Governor
Last Modified:
10/21/2009 2:33 PM