HomeMy WebLinkAbout10-26-2009 Supplemental Council AgendaS I GMEN S
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Saratoga, CA 95070. Note that copies of materials distributed to the City Council concurrently
with the posting of the agenda are also available on the City Website at www.saratoga.ca.us. Any
materials distributed by staff after the posting of the agenda are made available for public review
at the office of the City Clerk at the time they are distributed to the City Council.
In Compliance with the Americans with Disabilities Act, if you need assistance to
participate in this meeting, please contact the City Clerk at 408/868 -1269. Notification
24 hours prior to the meeting will enable the City to make reasonable arrangements to
ensure accessibility to this meeting. [28 CFR 35.102- 35.104 ADA title II]
Certificate of Posting of Agenda:
I, Ann Sullivan, City Clerk for the City of Saratoga, declare that the foregoing agenda for
the meeting of the City Council for the City of Saratoga was posted on October 26, 2009,
at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070 and was available for
public review at that location. The agenda is also available on the City's website at
www. Saratoga. ca. us
Signed this 26 day of October 2009 at Saratoga, California.
Ann Sullivan, CMC
City Clerk
2
tt
MEETING DATE:
DEPARTMENT:
PREPARED BY:
RECOMMENDED ACTION:
SARATOGA CITY COUNCIL
October 26, 2009 AGENDA ITEM:
City Manager's Office CITY MANAGER: Dave Anderson
Crystal Morrow DIRECTOR: Barbara Powell
Administrative Analyst II Assistant City Manager
SUBJECT: Presentation of Siemens Clean Energy Project Preliminary Study Results
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
1 10 years $1 million
2 20 years
3 30 years
$1.4 million
$4.2 million
Description
Low hanging fruit lighting upgrades, PC power
management, irrigation controls, streetlight upgrades
Low hanging fruit and HVAC upgrades
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
Project
Current Status
Results
Future Work
Smart Irrigation
Controls
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.
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.
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
Well Water
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.
Use of well water at the Civic Center
and Heritage Orchard has reduced
water expenses at both sites by more
than 30%.
Within the current fiscal year, Hakone Gardens
will be transitioned to well water.
Micro Spray
Sprinklers
Micro spray sprinklers have been
installed in the Heritage Orchard in 2004
to reduce runoff water.
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.
No further work is necessary.
Turf Reduction
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.
Removing turf helps reduce water
use, emissions created by mowers
and other landscape equipment,
pesticide use, and maintenance costs.
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.
Completed and Anticipated Clean Energy Projects
Public Works staff
Nozzle Replacement
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).
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.
Staff expects all sprinkler nozzles replacements to
be completed by summer 2010.
Low Flow Fixtures
Recreation and Facilities staff installed
low flow fixtures in all of the restrooms in
City facilities. This includes 15 faucets and
25 toilets.
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.
Installation of low flow fixtures is complete, not
future work is necessary.
Fleet Vehicles
The City currently has 2 hybrid and 4
alternative fuel vehicles in its fleet.
The use of alternative fuel and hybrid
vehicles has helped the City reduce
fuel consumption and production of
greenhouse gas emissions.
The City expects to purchase two more hybrid
vehicles in fiscal year 2009/10.
HVAC
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.
New energy efficiency HVAC units use
approximately 20% less energy than
older units.
All of the 6 of the HVAC units operating below
peak performance will be replaced in the next 5
years.
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
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.
No further work is necessary.
replaced with LEDs since 2001.
LED Street Lights
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 street lights have a longer
Iifespan, use less energy, and require
Tess maintenance than traditional
street lights.
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.
LED Exit Signs
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.
LED exit signs use approximately 30%
Tess energy than traditional exit signs.
No further work is necessary; all exit signs have
been replaced with LEDs.
Motion Sensor Light
Controls
Staff is exploring opportunities to install
motion sensor light controls in
bathrooms and common areas.
Motion sensors turn off lights in
common areas when the space is
vacated. As a result, the City expects
to reduce energy use.
Work areas and restrooms will be surveyed to
determine the most cost effective locations to
install motion sensors.
T8 Lights Ballasts
Staff has upgraded all the lights in City
facilities to more efficient T8 lights.
T8 lights use approximately 25% less
energy than older T12 lights.
No further work is necessary.
Energy Star
Appliances
Staff has started purchasing energy star
equipment when it is necessary to buy
new appliances or electronic equipment.
Energy Star is a labeling program that
identifies energy- efficient products. It
helps consumers purchase products
that are energy efficient.
Transitioning to energy star equipment will be
carried out on an ongoing basis and new
equipment needs to be purchased.
Cool Roofs
Cool roofs have been installed on the City
Hall /Administration building overhang,
Theater, and Library.
Cool roofs provide 2 -5% savings in
energy use.
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 ARNOLD SCHWARZENEGGER, Governor
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?
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 /l
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?
Contact the Energy Commission's Special Projects Office at (916) 654 -4104 or by
E -mail at pubprog(c�enegy.state.ca.us.
News media should direct inquiries to the Media and Communications office at
(916) 654 -4989.
Notice Date: September 16, 2009
California Energy Commission
Special Projects Office
1516 Ninth Street, MS #42
Sacramento, CA 95814 -5512
E -mail: [pubproq(a.energv.state.ca.us]
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 Srnwarze,' egger, Governor
California Enorgy Commission
t 515 Ninth Street
Sacramento. CA 95814
W'eusite. wwx.energy.ca
Con6umer Wetreite' www.CatwmerEnergyCenter.org
_tiuldren 6'ebs tr www energyquestcagw
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?
NEW LOWER INTEREST LOAN RATE
3 Percent Loans For Energy Efficiency And Energy
Generation Projects
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.
1 of 2 10/21/2009 2:33 PM
Notice of 3 Percent Loans For Energy Efficiency and Energy Generation P...
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.enerqy.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?
Date online: July 9, 2009
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.us]
News media should direct inquiries to the Media and Communications office at (916) 654 -4989.
Accessibility
Copyright 1994 -2009 California Energy Commission, All Rights Reserved
State of California, Arnold Schwarzenegger, Governor
Last Modified:
http://www.energy.ca.gov/contracts/efficiency_pon.html
2 of2 10/21/2009 2:33 PM
Clean Energy
Project
Preliminary
Study
September 23rd, 2009
Siemens Building
Technologies, Inc.
CITY OF
SARATOGA
Submitted To:
The City of Saratoga
SIEMENS
Confidential and Proprietary
SIEMENS
TABLE OF CONTENTS
1.0 EXECUTIVE SUMMARY 3
PROJECT SUMMARY 3
ENVIRONMENTAL IMPACT 5
SIEMENS PERFORMANCE CONTRACT SERVICES 6
2.0 ASPECTS OF SURVEY 8
2.1 GENERAL FACILITY DESCRIPTION 8
2.2 STAFF INTERVIEWS 8
2.3 FACILITY AND SYSTEMS OBSERVATIONS 9
2.4 UTILITY DATA ANALYSIS 9
2.5 ENERGY USE BENCHMARKS 14
3.0 ENERGY PROJECT OPPORTUNITIES 17
3.01 Energy Management System 17
3.02 PC Power Management 17
3.03 Interior Lighting Upgrade 17
3.04 Exterior Lighting Upgrade Street Lighting Upgrade 17
3.05 Exit Sign Upgrade 17
3.06 Premium Efficiency Motors 18
3.07 Window Film 18
3.08 Plug Load Controller 18
3.09 Thermal Storage 18
3.10 HVAC Unit Upgrades 18
3.11 Vending Miser Controllers 19
3.12 Water Conservation 19
3.13 Photovoltaic System 19
3.14 Solar Water Heating 19
3.15 Refrigerator and Freezer Optimization 20
3.16 Cool Roof 20
4.0 FACILITIES 21
4.1 City Hall Admin. 21
4.2 Theatre Engineering Community Development Building 23
4.3 Community Senior Center 25
4.4 Corp. Yard 27
4.5 North Campus Fellowship Hall Administration Building 28
4.6 Community Library 29
4.7 Saratoga Parks Hakone Gardens and Landscape Districts 30
5.0 REBATES OTHER INCENTIVE PROGRAMS 31
6.0 CONCLUSIONS AND NEXT STEPS 32
7.0 PROJECT DEVELOPMENT FLOW CHART 34
8.0 APPENDICES 35
8.1 Appendix A: Utility Data Analysis Library Energy Use 35
8.2 Appendix B: PG &E Electrical Rate Structure 48
Confidential and Proprietary
1
SIEMENS
Confidential and Proprietary
2
SI EM ENS
Option
Approx. Payback
Cost Range
Description
Option 1
10 years
$1 million
Low hanging fruit:
Lighting, PC pwr mgmt,
EMS, irrigation. streetlights
(assumes LLD capital cost
contribution)
Option 2
20 years
$1.4 million
Low Hanging fruit HVAC
Option 3
30 years
$4.2 million
Low Hanging fruit
HVAC
+Library Parking Canopy
Solar PV
1.0 EXECUTIVE SUMMARY
SIEMENS Building Technologies, Inc. (SIEMENS) is pleased to present the City of Saratoga with
the following Preliminary Study that identifies a set of turnkey improvements that will reduce energy,
water consumption and operating costs for the city. The minimum potential project represents an
average annual savings of $80,000 or $1.2 million over a 15 year period.
After a preliminary evaluation of nine of the City's facilities and existing utility bills, SIEMENS found
that the City has made a significant number of energy efficiency improvement measures previous to
this Preliminary Study, and has demonstrated itself to be forward- looking with respect to cost and
energy savings.
SIEMENS found numerous opportunities to improve energy and water efficiency. Energy, water
and operational savings would be realized by implementing projects involving heating and cooling
improvements, upgraded lighting systems, irrigation improvements, and other facility improvement
measures (FIMs). These findings are a result of site visits and technical analyses and reflect
SIEMENS' interest in delivering the most cost effective, state -of- the -art, and reliable energy, water
and operational savings solutions possible.
PROJECT SUMMARY
Total Project cost ranges from $1 $4.2 million (Table 1).
Much needed facility upgrades would be accomplished.
Options 1 and 2 are mostly self- funding
Table 1: Overview of Project Potential
Confidential and Proprietary
3
There are potentially significant additional energy, water and operational savings and environmental
benefits associated with the project which will be studied in more depth at the Detailed Study phase
of the project.
SIEMENS
SIEMENS will utilize its significant resources and expertise to implement facility improvements,
providing the following benefits to the City of Saratoga:
Significantly reduce energy and water consumption, as well as associated greenhouse
gas emissions.
Significantly reduce operational expenditures with respect to heating, ventilation, and air
conditioning maintenance and replacement costs
Increase comfort levels and environmental control, benefiting building occupants
Increase lighting quality and improve the working environment
Improve exterior lighting in the parking lots, common areas and city street lighting
Extend existing facilities management capabilities with SIEMENS Service Staff providing
service and technology support 24 hours a day, 7 days a week.
Provide a financing solution so that much of the energy services program is self funding
Guarantee the energy, water and operational savings so there is no risk to the city in
accomplishing the facility improvement measures
Note: These energy opportunities are preliminary in nature and typically have a confidence band of
20 contingent upon modifications to the scope of work as directed by the city. A detailed
study must be made to verify the projected savings and project implementation costs. This is
considered to be a very conservative estimate. SIEMENS' energy estimates are based upon our
previous experience.
Confidential and Proprietary
4
SIEMENS
ENVIRONMENTAL IMPACT
In addition to reducing energy consumption, these turnkey improvements give the City of Saratoga
the opportunity to improve environmental performance of its buildings, both in terms of increasing
building occupant comfort levels while reducing harmful environmental impacts. Now more than
ever, State and Federal agencies are promoting the need to reduce energy consumption, and are
offering money in the form of incentives, rebates, and low interest loans to encourage energy
efficiency and renewable energy generation. These programs increase the economic feasibility of
the project, and SIEMENS can guide the city in taking advantage of these programs.
The positive impact this project will have on the environment is quantifiable. While PG &E has a
higher percentage of renewable energy in its portfolio than most utilities, much energy generated
still comes from burning fossil fuels. By reducing your energy consumption, fewer fossil fuels are
consumed which means less harmful emissions. Commercial buildings generate 18% of U.S.
carbon dioxide emissions. (Source: www.energystar.gov). By implementing the proposed Option 2
energy project, the city will save significant kWh of electricity, therms of gas and ccf of water.
Saving this electricity and gas will result in significant savings in CO emissions.
Confidential and Proprietary
5
SIEMENS
SIEMENS PERFORMANCE CONTRACT SERVICES
SIEMENS strives to build long -term business relationships with our customers. Under the
performance- contract business model, SIEMENS defines a true strategic alliance by sharing in the
investment and risks with our customers. From this arrangement our customers achieve the
maximum return on their facility project investments with minimized risk. This performance -based
strategy lends itself to adaptability, flexibility, and a full range of possibilities under a strategic
alliance arrangement.
SIEMENS' staff members are LEEDTM Accredited Professionals and can provide advice for new or
existing buildings. For over 100 years, SIEMENS has provided exceptional products and services to
its customers. SIEMENS also has a history of proven success in performance based contracting,
delivering over $1.7 billion in performance contracts in over 600 projects nationwide. SIEMENS has
implemented over 70 successful projects in the State of California.
SIEMENS stands alone among its peers in performance contracting with a record of 99.75%
against $450 million in financial guarantees, which are audited annually by KPMG. SIEMENS'
commitment to excellence has led to a Standard and Poor's rating of AA- and a Moody's rating of
AA3, the highest financial ratings in the industry. This has given SIEMENS the lowest bonding
costs industry wide.
Phase I: Strategic Planning Preliminary Study
Strategic Planning is SIEMENS' first phase of a four phase approach to implementing a
performance -based energy project, and this Preliminary Study is the final product of this current
phase. As the chosen energy service provider, SIEMENS invests its resources to deliver services
through Phase I Strategic Planning. City of Saratoga is not responsible for any costs incurred by
SIEMENS for services performed through Phase I Strategic Planning.
This evaluation includes (1) assessing the city facilities environmental, social, and economic
impacts associated with project development in the city facilities; (2) the assessment of a number of
alternatives to enable optimized energy performance, while enabling green or LEED Certification
initiatives; (3) best management practices (BMPs) for mitigating the potential impacts of project
development in occupied public buildings; (4) understanding the specific payback criteria; and (5)
developing a strategy to control project cost and maintaining a NO CHANGE ORDER policy in the
event of adverse conditions.
Phase II: Development Detailed Study
The next step, a Detailed Study, would verify savings, assess project feasibility, and develop a
comprehensive energy services program. In Phase 11 Development, SIEMENS shares the risk of
the development costs with the City of Saratoga. SIEMENS focuses only on solutions chosen by
the customer that were discovered in the Preliminary Study during Phase I Strategic Planning.
The detailed study would include measurements of existing conditions, a thorough analysis of
efficiency measures, engineered specifications, performance measurement and verification criteria,
a project cash flow analysis, and a comprehensive financing package. At this stage applications for
utility and other rebates and incentive programs would be completed on behalf of the city.
Phase III Implementation
SIEMENS provides a firm -fixed price for work delivered in Phase III Implementation. This
investment by the city is guaranteed by SIEMENS to meet the ratio of cost to savings, and /or future
performance criteria or requirements documented in Phase 11 Development. Under a SIEMENS
guarantee, the City of Saratoga has no risk in the future financial or technical performance of the
project developed by SIEMENS.
Confidential and Proprietary
6
SI EM ENS
Phase IV Performance Assurance
On all performance solutions projects, Phase IV, Performance Assurance, is performed and a
formal turnover process is executed. Turnover should occur within two weeks of sign -off by the
customer on the letter of substantial completion. The letter of substantial completion should be
executed by the customer at the time construction is significantly finished. Upon this sign -off, the
customer will be assigned a Performance Assurance Engineer (PAE). The PAE will perform
measurement and verification to guarantee savings, if guaranteed savings are desired by the
customer.
SIEMENS would like to thank the City of Saratoga for allowing us the opportunity to conduct this
preliminary study. Special thanks to the city staff for their input and support during the study.
Should you have any questions or need additional information, please do not hesitate to contact us.
On behalf of all of us at SIEMENS, we look forward to a continued partnership.
SIEMENS
Global Network of Innovation
The information contained in this report is proprietary and confidential property of Siemens Building Technologies,
Inc. Unauthorized reproduction in part or in whole is strictly prohibited without prior written consent.
Confidential and Proprietary
7
SIEMENS
Building Name
Address
Area
(gross
square feet)
Building Occupancy Schedule
(primary staff schedule)
Hours /day Days /year Hours /year
City Hall
13777 Fruitvale Ave.
4,714
9.4
264
2,482
Planning /Eng
13777 Fruitvale Ave.
6,837
9.4
264
2,482
Theatre
13777 Fruitvale Ave.
9,833
(varies)
(varies)
(varies)
Community /Senior
Ctr.
19655 Allendale Ave.
19,303
9.0
247
2,223
Community Library
13650 Saratoga Ave.
50,000
8.3
351
2,908
North Campus
19848 Prospect Rd.
10,400
(varies)
(varies)
(varies)
Corp. Yard
19700 Allendale Ave.
5,340
9.4
264
2,482
Warner Hutton House
13777 Fruitvale Ave.
1,838
(varies)
(varies)
(varies)
Hakone Gardens
21000 Big Basin Way
6.7
363
2,437
2.0 ASPECTS OF SURVEY
2.1 GENERAL FACILITY DESCRIPTION
To perform this study, a site investigation was conducted by a team of engineers from the
SIEMENS energy team. Nine facilities were surveyed in the City of Saratoga, California. The
following table outlines the size and usage of each facility.
Table 2: City of Saratoga Building Name, Square Feet and Occupancy Schedule
*EneraV consumption for each site is shown in Figures 7 and 8.
2.2 STAFF INTERVIEWS
Information for this report was gathered with the assistance of the following city staff:
Ms. Barbara Powell Assistant City Manager
Ms. Crystal Morrow Administrative Analyst II
Mr. Thomas Scott Facilities Maintenance Supervisor
Mr. Kevin Meek Public Works Manager
Mr. Jacob Kellner Japanese Garden Specialist
Ms. Linda Manpin Bookkeeper
Ms. Barbara Williams Community Librarian
Mr. John Cherbone Public Works Director
Confidential and Proprietary
8
SIEMENS
2.3 FACILITY AND SYSTEMS OBSERVATIONS
Facilities and equipment were visually inspected to assess the general operation and condition of
the following:
Heating and domestic hot water boilers
Air handling units, packaged A/C units, Chillers, Split Systems, Heat Pumps, and Fan Coils
Lamps, ballasts, reflectors, lenses, fixture types
Energy management system controllers
Roof orientations for solar resource potential
2.4 UTILITY DATA ANALYSIS
SIEMENS' approach to developing energy projects begins with understanding where the customer
currently stands with their energy and water consumption.
Saratoga spends over $400,000 per year on water, electricity, and gas.
Electricity
40%
Saratoga Utility Spending*
Total
Expenditure:
>$400,000
Gas
5%
Water
55%
Water
Gas
Electricity
Figure 1: Saratoga Annual Utility Expenditure
*Based on 2008 Calendar Year
ELECTRICITY
Pacific Gas Electric (PG &E) provides electric service to a majority of the facilities in the City of
Saratoga. Each facility has at least one electric meter on site. These accounts will be discussed
briefly at the end of this section. The most recent twelve (12) month data available to SIEMENS
was the electricity billing data for the period of January 2008 through December 2008.
Confidential and Proprietary
9
SIEMENS
PG &E provides electrical service to the city on the Al P, A6, A10S, E19SW, LS -1 and LS -2 rate
schedules. During summer, the on -peak period is from noon to 6:00 PM, part-peak from 8:30 AM to
noon and from 6:00 PM to 9:30 PM and off -peak is from 9:30 PM to 8:30 AM. During winter the
part-peak is from 8:30 AM to 9:30 PM and off -peak is from 9:30 PM to 8:30 AM. Weekends and
holidays are treated as off -peak periods. LS -1 and 2 rates are a stipulated amount when there is no
meter attached to the City's street lights (typical). PG &E assumes that there are 11 burn hours per
day, 365 days per year totaling 4,015 burn hours per year.
During the period of January 2008 through December 2008, the City of Saratoga spent a total of
$88,487 on electricity at: City Hall, Planning /Engineering/Theatre, Community /Senior Center, Corp.
Yard, North Campus, Warner Hutton House, Hakone Gardens. The total electric spend at the
Library for that same period was $165,761. The average electricity cost, or blended rate for the
period of January 2008 through December 2008 was $0.16 /kWh. The rate structures and charges
are listed in Appendix B.
Lighting and Landscape Districts have the potential for significant electrical and operational savings
by replacement of existing fixtures with either LED or Induction technology.
This rate information can be found on the PG &E website at
http: /www.pge.com /nots /rates /tariffs /electric.shtml under rate information and Electric Rates:
Commercial /General Service.
L
Y
A
S0.200
50.180
S0.160
50.140
50.120
50.100
50.080
50.060
50.040
S0.020
Confidential and Proprietary
Trend of Primary Blended Rates
S0.000
1Ni?" 0 h h h so e e c o o 1 1 1e e e a
do re,, Qb.rco o ff 'ti°°ti�'cP ti o`�°°dd c o�o� ti� a cA cP cP a 0
4 t 6 1 0j` �'`��,�`ti,���� 4‘ c o 4 1 a 4 4.1 ,,�ti 5P N O 4 15 P 0 5
N
Figure 2: Trend of Primary PG &E Commercial Blended Rates
10
A'
A?�
A•C
A•C CJ'
E19
E20
SIEMENS
City of Saratoga Street Lights Matrix
Rate
City (LS -2)
PG &E (LS -1)
Total
City
#Fixtures
74
18
$0.1646
Planning /Eng/Theatre
Bldg
Cost
$11,764.19
$2,997.52
$0.1675
LLD 4
#Fixtures
6
99
$0.1702
Library*
Cost
$1,037.69
$11,875.77
$0.1266
LLD 5
#Fixtures
4
20
$0.1724
Corp. Yard CNG Station
Cost
$246.00
$2,433.61
$0.1852
LLD 6
#Fixtures
0
25
$0.2149
Cost
$0.00
$2,975.87
LLD 7
#Fixtures
98
111
Cost
$12,626.68
$13,324.98
Total
#Fixtures
182
273
455
Cost
25,674.56
$33,607.75
59,282.31
Facility
Rate
Electric
Usage
(kWh)
Electric
Cost
Cost per
kWh
/kWh)
City Hall Admin.
A6
72,840
$11,988
$0.1646
Planning /Eng/Theatre
Bldg
A6
230,760
$38,642
$0.1675
Community /Senior Ctr.
A6
104,320
$17,754
$0.1702
Library*
E19SX
1,309,760
$165,761
$0.1266
Corp. Yard
A6
26,097
$4,500
$0.1724
Corp. Yard CNG Station
A1P
5,210
$965
$0.1852
Warner Hutton House
A6
6,352
$1,365
$0.2149
The most recent twelve (12) month electric utility data made available to SIEMENS was for the
period from January 2008 through December 2008. The following table shows the summarized
electric consumption and average electric cost on the account serving the main electric meter.
Table 3: Saratoga Facilities Electrical Expenditures
*County Budget
PG &E provides electrical service to accounts on the LS -2 rate structure. The following table shows
the summarized number of street lights and electrical cost on the account serving the following
districts.
Table 4: Saratoga Street Lights Electrical Expenditures
NATURAL GAS
Natural gas is provided by ABAG and transported by PG &E to facilities operated and maintained by
the City of Saratoga. The most recent twelve (12) month gas utility data made available to
SIEMENS was for the period from January 2008 through December 2008. The following table
shows the summarized gas consumption and average gas cost on the account serving the main
gas meter.
Confidential and Proprietary
11
SIEMENS
Facility
Account
Number
Gas Usage
(therms)
Gas Cost
Cost per
therm
/therm)
City
Hall /Planning /Eng/Theatre
Community /Senior Ctr.
40583356
12,389
14,320
1.16
Library
54589260
28,207
29,477
1.04
Corp. Yard
29906151
1,235
1,537
1.37
Warner Hutton House
42211202
295
429
1.63
Table 5: Saratoga Facilities Gas Expenditures
The information above includes an assumed cost of energy of $1.21 /therm. The data SIEMENS
received from PG &E is believed to only include the transportation fee due to the City of Saratoga
being on the ABAG Program.
The following graph shows the gas rates from January 2007 to the present, and forecasts the gas
rates from now through November 2010. This information can be found on the PG &E website
under Gas Rate Forecast: Small Commercial (G -NR1). Rate forecast is based on PG &E
Management's estimates and are subject to change. Forecasts for electric rates are not available
through PG &E.
$200
51 80
S1 60
$1 40
S1 20
E
t S1 00
SO 80
Trend of Small Commercial Gas Rate
Forecast
50 60
SO 40
$0 20
SO 00
,,ZP 4;z p 1 vi` coe"Z 1 0, A1 c A 4,0 4a ygQ p a AA ,J\ cOQ o pA O O 4.0 s o 1
�O� O ho, �0
Figure 3: Trend and Forecast of PG &E Small Commercial Gas Rates
Confidential and Proprietary
12
SIEMENS
WATER
Water use accounts for approximately 55% of the City of Saratoga's annual utility expenditure.
Much of this is allocated to watering parks, medians and other City landscaping. Another
component of expenditure occurs in Lighting Landscape Districts. Significant potential exists for
reducing this expenditure and consumption.
Confidential and Proprietary
City LS, Medians, Parks
City Facilities
LLD 26
LLD 16
LLD 22
LLD 28
All others
Totals:
Meter count Water cost
5o $170K
5 $16K
2 16K
2 10K
6 4K
1 3K
19 11K
85 $230 K
Red meter count
Blue water cost (2008 calendar)
Figure 4: City of Saratoga Water Consumption
13
Bellgrove
Beauchamps
Prides Xing
Kerwin Ranch
SIEMENS
2.5 ENERGY USE BENCHMARKS
SIEMENS performed a benchmarking analysis of the city's facilities. Benchmarking offers a high
level overview when comparing buildings of similar type, size and function. Buildings are
normalized by comparing energy use on a "per square foot" basis, known as energy usage intensity
(EUI). EUI information enables the development of a square foot index, which is then compared to
similar buildings in the region and identifies which buildings have the potential for greater energy,
water and operational savings. Based on staff interviews, utility and operational data provided,
SIEMENS calculated a benchmark analysis seen in the figures below:
SQUARE FOOT ANALYSIS CHARTS
kWh per Square Foot Index
u
u
Confidential and Proprietary
North Campus 1.6
Warner House
Corp. Yard
Community Senior Center
m
All Commercial
LL Theatre Engr. Community
Development
City Hall Admin.
Health Care (Typ.)
Library
North Campus
Warner House
Corp. Yard
Community Senior Center
10,000 to 50,000 ft"2 (Typ.)
Health Care (Typ.)
City Hall Admin.
Theatre Engr. Community
Development
Library
0.0
60.00
3.
5.0
5.4
5
15.3
18.6
8.6
27.3
5.0 10.0
61.00 62.00
15.0 20.0
kWh per Square Foot
Figure 5: kWh per Square Foot Indices of Facilities operated by the City of Saratoga'
Electric per Square Foot Index
25.0 30.0
60.
4
.87
0.88
$2.04
62.64
62.67
63.45
63 00 64.00
Electric Cost per Square Foot
Figure 6: Dollar per Square Foot Indices of Facilities operated by the City of Saratoga'
1
The blended rate of $0.14 /kWh multiplied by the reported kWh /sq.ft. to equal the value in the graph above. Industry Standards came from the California
Commercial End -Use Survey (CEUS, 2006) and the EIA's Commercial Buildings Energy Consumption Survey (CBECS, 2003).
14
SIEMENS
u_
i7
10,000 to 50,000 f A2 (Typ.)
A
Confidential and Proprietary
Corp. Yard
All Commercial
City Hall Complex
Library
Health Care (Typ.)
City Hall Complex
Health Care (Typ.)
Library
Btu per Square Foot Index
North Campus 6.4
Warner House
0.0 26.0 50.0
76.0
Btu per Square Foot
Figure 7: Btu per Square Foot Indices of Facilities operated by the City of Saratoga'
Gas per Square Foot Index
North Campus S0.03
Corp. Yard 61 solo
Warner House
100.0
S0.23
50.29
$0.35
:0.00
50.00 S0.20 S0.40 50.60 $0.80
Gas Cost per Square Foot
Figure 8: Gas Cost per Square Foot Indices of Facilities operated by the City of Saratoga'
1
The blended rate of $0.14 /kWh multiplied by the reported kWh /sq.ft. to equal the value in the graph above. Industry Standards came from the California
Commercial End -Use Survey (CEUS, 2006) and the EIA's Commercial Buildings Energy Consumption Survey (CBECS, 2003).
15
SIEMENS
L
0.
Confidential and Proprietary
Electrical Consumption Per Facility
Warner House $1,365.00
6,352
North Campus $1 5.440 2
Corp. Yard
City Hall Admin.
Community Senior Center
Theatre/ Enrg. Community
Development
Library
=5,465.00
31.307
911.988.00
72.840
517.754.00
104.320
538.642.00
230,760
9166 761.00
400,000 800,000 1,200.000 1,600,000
Electrical Consumption
Figure 9. Electrical Consumption Per Facility for the City of Saratoga
9429.00
Warner House
295
North Campus
Corp. Yard
City Hall Complex
Library
Gas Consumption Per Facility
Figure 10. Gas Consumption Per Facility for the City of Saratoga
16
8
8736.06
559
h
91 ,537.00
I I 1,235
S14,320.00
12,389
42
28,207
5,000 10,000 15,000 20,000 25,000 30,000 35.000
Gas Consumption
El ear
ic$
kWh
Gas 5
Term
SIEMENS
3.0 ENERGY PROJECT OPPORTUNITIES
3.01 Energy Management System
An energy management system (EMS) manages energy consumption and delivery of
optimal lighting and thermal conditions by providing integrated control and monitoring of
fans, pumps, HVAC equipment, dampers, mixers, and thermostats. An energy management
system achieves optimal levels of occupant comfort while maximizing the energy efficiency
of the building(s). Control strategies such as this would be considered when upgrading the
HVAC equipment as well as Street Lighting, and Exterior /Interior Lighting upgrades at the
selected Saratoga facilities and locations.
3.02 PC Power Management
Most (if not all) of the facilities operated by the City of
Saratoga have computers on its network. Currently, the
network does not have power management capabilities,
therefore, we are considering a potential energy saving
strategy to upgrade the existing system to that of a PC Power
Management system. Realized savings can include an
annual savings of 200 kWh per each personal computer.
3.03 Interior Lighting Upgrade
The intent of this modernization measure is to reduce energy costs by
increasing lighting efficiency and to increase occupant performance by
maintaining proper lighting levels. Occupancy sensors can curtail
energy consumption by ensuring lights are turned off during unoccupied
hours. A detailed lighting audit is recommended to better understand the
savings potential of this measure.
3.04 Exterior Lighting Upgrade Street Lighting Upgrade
Induction and LED lamps save energy. The intent of this modernization
measure is to reduce energy costs by increasing lighting efficiency
while maintaining proper lighting levels. A detailed exterior street
lighting audit is recommended to better understand the savings
potential of this measure.
3.05 Exit Sign Upgrade
There are several benefits associated with this upgrade, including
reduced energy consumption, longer fixture life, and reduced
maintenance costs. Upgrading exit signs from incandescent to LED
can save an estimated 300 kWh per exit sign fixture. A detailed exit
sign audit is recommended to better understand the savings
potential of this measure.
Confidential and Proprietary
17
SIEMENS
3.06 Premium Efficiency Motors
Presumably, the pump and fan motors surveyed at the theatre are older, standard efficiency
models. It is recommended to replace these motors with premium efficiency models.
Newer, premium efficiency motors will be in the 90- percentile efficiency range. The intent of
the measure is to reduce both energy consumption as well as demand through the use of
higher efficiency equipment. A detailed motor audit is recommended to better understand
the savings potential of this measure.
3.07 Window Film
Window film helps conserve energy and decreases a building's green house gas emission
levels. Window film lowers energy consumption, thus lowering building operating costs.
Window film helps keep the inside of a building cooler and at a comfortable temperature
during the hot summer months. It acts as an insulator during the cold winter months helping
keep a building at a comfortable desirable temperature. The energy efficiency of a building
will increase by reducing the heating and cooling loads.
3.08 Plug Load Controller
A plug load controller is an energy saving control system that provides maximum surge and
noise suppression while keeping plug load equipment off when there is no occupancy.
Often times plug loads remain on while an office or cubicle is unoccupied during work hours,
or even in the evening. The plug load controller saves energy by keeping plug load
equipment off while employees are at meetings or off to lunch, etc. Typical construction is
invasive and looks similar to that of a eight outlet power strip.
3.09 Thermal Storage
A thermal storage module can be paired with a standard air conditioning unit to reduce the
air conditioning demand for small to mid -sized commercial buildings. The system is
designed for easy deployment and requires no modification to existing ductwork or structure.
The system utilizes off-peak power to freeze water within an insulated storage tank to store
cooling capacity at night for use during the next day. This eliminates the need to run the
energy intensive compressor during peak daytime hours. Air conditioning energy demand is
typically 40 -50% of a buildings electricity use during expensive peak hours. This will
significantly reduce the electrical consumption of a building during the day. Additional
analysis is necessary to determine the viability of specific applications.
3.10 HVAC Unit Upgrades
There are currently five air conditioning units
at the City Hall Complex facilities (City Hall
Admin. /Engr /Community Development) that
should be replaced. Three of the units are
Trane units, and the other two units are BDP
Co. The Senior /Community Center has six air
conditioning units that should also be
replaced. The units at the Senior /Community
Center are all BDP Co. units. All eleven units
Confidential and Proprietary
mentioned are over 15 years old and have exceeded the efficient life expectancy of an air
conditioning unit. The intent of the measure is to reduce energy costs through the use of
higher efficiency equipment.
3.11 Vending Miser Controllers
By installing energy governing controls on the four vending machines,
runtimes can be curtailed up to 50% saving energy and operational
costs to maintain the compressor. The Vending Miser controller
detects occupancy and provides efficiency controls for each vending
machine according to occupancy.
3.12 Water Conservation
3.13 Photovoltaic System
3.14 Solar Water Heating
Solar Water Heating (SWH) can offset your annual gas
utility bill by heating up your domestic hot water with energy
supplied by the sun. The addition of this system can impact
tasks ranging from hand washing to dish washing. Upon
further investigation, we will find the correct locations and
Confidential and Proprietary
19
Water conservation measures can be implemented on
a strategic basis to reduce operating costs at both the
LLD's and at Hakone Gardens' landscape irrigation
system. Weather smart automated irrigation controls
use weather factors such as soil infiltration and rainfall
intensity which are compared to determine the exact
effect weather has on irrigation needs. Ordinary
irrigation systems cannot adjust to changing weather
conditions. Ordinary irrigation systems generally
overwater the landscape causing expensive property
damage (figure), and high water bills. Additional
analysis is necessary to determine the viability of specific applications, however, locations
such as the Bellgrove District, The Orchard and Hakone Gardens are the three locations
that offer the most potential.
30frdellspii*
ismanTeportre
Siemens can install solar power panels to provide an efficient and
easy -to- install source of solar electricity. A preliminary calculation
yielded a system capable of offsetting 100% of Saratoga's annual
electric consumption. The system can help reduce power
consumption from the utility grid during peak demand rates.
Systems can be installed on rooftops, in designated ground areas,
and in parking lot structures. These systems further demonstrate
the city's commitment to environmental initiatives. Installation of
these systems helps to reduce greenhouse gases, positively
impacts global warming, reduces acid rain types of emissions, reduces your susceptibility for
utility -based energy price increases and reduces the consumption of fossil fuels.
system sizes where the SWH will have the greatest impact and lowest pay back rate.
Possible sites for a viable SWH system include Planning and Engineering, the Theater, City
Hall, the Library and the Community /Senior Center.
3.15 Refrigerator and Freezer Optimization
Cooling starts when the compressor of the refrigerator or freezer turns on. Run time on the
energy- consuming compressors for the typical refrigerator and freezer comes from a sensor
in the unit that senses change in air temperature. However, items in these units are food and
liquid items. Fluctuating air temperature due to doors opening and closing sends a signal to
the compressor to turn on and cycle the system to assist in cooling. Air temperature rises
faster than food temperature and an optimization device can be implemented to more closely
mimic actual food temperature rather than air temperature. Considerable operational savings
from not having to cycle the compressors in these units can be quantified as well as lower
money spent in your annual electrical bills can also be achieved.
3.16 Cool Roof
Siemens surveyed two sites that are candidates for a cool roof. These
two sites are the Senior /Community Center, and the City Hall Complex
(Engr /Planning /Admin). A cool roof also known as a white roof is a
highly reflective and emissive roof coatings that stays 50 to 60 degrees
F cooler in the summer sun. A cool roof reduces energy costs,
improves occupant comfort, and increases the life cycle of the roof.
Confidential and Proprietary
20
SIEMENS
4.0 Facilities
4.1 City Hall Admin.
Mbtu /Sf Index
Confidential and Proprietary
City Hall Admin.
13777 Fruitvale Ave.
Saratoga, Ca 95070
Annual Electric Consumption:
Annual Electric Cost:
Annual Gas Consumption:
Annual Gas Cost:
72,840 kWh
$11,988
12,389 Therms
$14,320
Square Feet 4,714
Total Annual Energy 2,274,783 MBtu
Proposed Modifications Benefits
56.0 Total Annual Energy Cost
21
$64,950
Interior Lighting Upgrade: City Hall has T -8 lamp technology in most (if not all) of their
lamp fixtures. Although City Hall has undergone substantial energy savings in this building
by de- lamping light fixtures and manually turning off lights when not in use, the addition
occupancy sensors can curtail energy consumption by ensuring lights are turned off during
unoccupied hours. A detailed lighting audit is recommended to better understand the
savings potential of this measure. It is also recommended that the detailed lighting audit
look into upgrading the lamps to the most current T -8 technology.
Window Film: Replace the existing window (clear glass) with a thin -film coating called
"Window Film." This facility improvement measure can either be used with existing windows
or added to newer double -pane window
SIEMENS
fixtures.
Cool Roof: Change out the existing roof material to that of the new cool roof. This will also
give the city an opportunity to survey and repair any roof problems that have been
addressed, but not implemented as of yet.
Solar Thermal: Roof top mounted solar thermal heating system
PC Power Management: Install PC power management software to all campus -wide
computers.
Benefits
Interior Lighting Upgrade: The intent of this measure is to reduce energy costs by
increasing lighting efficiency and to increase occupant performance by maintaining proper
lighting levels.
Window Film: Window film lowers energy consumption, thus lowering building operating
costs. Window film helps keep the inside of a building cooler and at a comfortable
temperature during the hot summer months.
Cool Roof: A cool roof also known as a white roof is a highly reflective and emissive roof
coatings that stays 50 to 60 degrees F cooler in the summer sun. A cool roof reduces
energy costs, improves occupant comfort, and increases the life cycle of the roof.
Solar Thermal: Solar Thermal heating systems can offset the annual spend on heating
water with conventional natural gas systems. The orientation of the roof and available roof
space make the City Hall building a potential candidate.
Confidential and Proprietary
22
SIEMENS
4.2 Theatre Engineering Community Development Building
Engineering Theatre
Community Development
13777 Fruitvale Ave
Saratoga, Ca 95070
Square Feet
Mbtu /Sf Index
Proposed Modifications
Interior Lighting Upgrade: The Theatre /Engineering /Community Development Building has
T -8 lamp technology in most (if not all) of their lamp fixtures. Although substantial energy
savings have been achieved in this building by de- tamping light fixtures and manually
turning off lights when not in use, the addition of occupancy sensors can curtail energy
consumption by ensuring lights are turned off during unoccupied hours. A detailed lighting
audit is recommended to better understand the savings potential of this measure. It is also
recommended that the detailed lighting audit look into upgrading the lamps to the most
current T -8 technology.
Photovoltaic System: A photovoltaic (PV) system can help reduce power consumption
from the utility grid during peak demand rates, presuming an aggregate net metering
scenario is feasible. Systems can be installed on rooftops, in designated ground areas, and
on parking lot structures. These systems are a visible demonstration of the city's
commitment to environmental initiatives. Installation of these systems helps to reduce
greenhouse gases, positively impacts global warming, reduces acid rain types of emissions,
and reduces the consumption of fossil fuels. A detailed audit is recommended to better
understand the savings potential of this measure, however, the main location for this system
on this premises is located in the Theater parking lot.
Cool Roof: Change out the existing roof material to that of the new cool roof. This will also
give the city an opportunity to survey and repair any roof problems that have been
addressed, but not implemented as of yet.
Solar Thermal: The intent of this measure is to reduce fossil fuel consumption by
incorporating a highly visible and efficient solar water heating system. The new array could
go onto the Community Development roof and can be visible to the public via the courtyard
entrance.
Confidential and Proprietary
Annual Electric Consumption: 230,760 kWh
Annual Electric Cost:
Annual Gas Consumption:
Annual Gas Cost:
56.0 Total Annual Energy Cost $64,950
23
$38,642
12,389 Therms
$14,320
15,060 Total Annual Energy 2,274,783 MBtu
SIEMENS
Benefits
Interior Lighting Upgrade: The intent of this upgrade is to reduce energy costs by
increasing lighting efficiency and to increase occupant performance by maintaining proper
lighting levels.
Energy Management System: The intent of this measure is to optimize energy
management for all the facilities operated by the City of Saratoga, as well as maximizing
comfort levels.
Premium Efficiency Motors: The intent of the measure is to reduce both energy
consumption as well as demand through the use of higher efficiency equipment.
Photovoltaic System: The intent of this measure is to offset power consumption from the
grid during peak demand rates, and to reduce greenhouse gas emissions. The location is
highly visible to the public.
Cool Roof: A cool roof also known as a white roof is a highly reflective and emissive roof
coatings that stays 50 to 60 degrees F cooler in the summer sun. A cool roof reduces
energy costs, improves occupant comfort, and increases the life cycle of the roof.
Solar Thermal: The solar thermal system will offset a percentage of the annual gas usage
by Saratoga. This system is highly efficient at heating water and will minimize the usage for
a fossil fuel heating system. The added benefit of public appeal will also be realized with a
system that is visible to the public.
Confidential and Proprietary
24
SIEMENS
4.3 Community Senior Center
Community Senior Center
19655 Allendale Ave
Saratoga, Ca 95070
Annual Electric Consumption:
Annual Electric Cost:
Annual Gas Consumption:
Annual Gas Cost:
104,320 kWh
$17,754
12,389 Therms
$14,320
Square Feet 15,900
Total Annual Energy 573,140 MBtu
MBtu /Sf Index
36.0 Total Annual Energy Cost
$32, 074
Proposed Modifications
Interior Lighting Upgrade: Saratoga Senior Center has not undergone modernization from
older T -8 lamps and ballasts to newer T -8 technology lamps and ballasts. Siemens
recommends modernizing these fixtures. Occupancy sensors can curtail energy
consumption by ensuring lights are turned off during unoccupied hours. A detailed lighting
audit is recommended to better understand the savings potential of this measure. Interior
lighting saving potential for the Senior Center is around 22,000 kWh per year.
Exterior Lighting Upgrade: A detailed exterior lighting audit is recommended to better
understand the savings potential of this measure.
Energy Management System: The Senior Center does not have an energy management
system (EMS) installed. The building has thermostats. Most of these thermostats can only
be adjusted by the city staff, however, there are a few rooms that have the potential to
adjust the heating and cooling levels by the building occupant. The addition of a centralized
EMS system enables the City of Saratoga to manage energy consumption and delivery of
optimal lighting and thermal conditions by providing integrated control and monitoring of
HVAC equipment and thermostats. An energy management system achieves optimal levels
of occupant comfort while maximizing the energy efficiency of the building(s).
Benefits
Interior Lighting Upgrade: The intent of this measure is to reduce energy costs by
increasing lighting efficiency and to increase occupant productivity and comfort by
maintaining proper lighting levels.
Exterior Lighting Upgrade: The intent of this measure is to reduce energy costs by
increasing lighting efficiency by maintaining proper lighting levels.
Confidential and Proprietary
25
SIEMENS
a Energy Management System: The intent of this measure is to optimize energy
management for all the facilities operated by the City of Saratoga, as well as maximizing
comfort levels.
Confidential and Proprietary
26
SI EM ENS
4.4 Corp. Yard
i r i i 11111111I1111111 i.
1iw'i''rl 4
Corp. Yard
19700 Allendale Ave
Saratoga, Ca 95070
Annual Electric Consumption:
Annual Electric Cost:
Annual Gas Consumption:
Annual Gas Cost:
26,097 kWh
$4,500
1,235 Therms
$1,537
Square Feet
5,340 Total Annual Energy 212,543 MBtu
Mbtu /Sf Index
Confidential and Proprietary
39.8 Total Annual Energy Cost
27
$6,037
Proposed Modifications
Lighting Upgrade: The Corp. Yard has not undergone modernization from older T -8 lamps
and ballasts to newer T -8 technology lamps and ballasts. SIEMENS recommends
modernizing these fixtures. Occupancy sensors can curtail energy consumption by ensuring
lights are turned off during unoccupied hours. A detailed lighting audit is recommended to
better understand the savings potential of this measure.
Photovoltaic Parking Structure: This measure will improved the shading for workers at
the Corp. Yard while generating renewable electricity for the City of Saratoga.
Benefits
Lighting Upgrade: The intent of this measure is to reduce energy costs by increasing
lighting efficiency and to increase occupant performance by maintaining proper lighting
levels.
SIEMENS
4.5 North Campus Fellowship Hall Administration Building
North Campus
19848 Prospect Rd
Saratoga, CA 95070
Annual Electric Consumption:
Annual Electric Cost:
Annual Gas Consumption:
Annual Gas Cost:
15,440 kWh
$2,534
559 Therms
$736
Square Feet
10,400 Total Annual Energy 108,581 MBtu
Mbtu /Sf Index
Proposed Modifications
Photovoltaic System: The system can help reduce power consumption from the utility grid
during peak demand rates, presuming an aggregate net metering scenario is feasible.
Systems can be installed on rooftops, in designated ground areas, and in parking lot
structures. These systems further demonstrate the city's commitment to environmental
initiatives. Installation of these systems helps to reduce greenhouse gases, positively
impacts global warming, reduces acid rain types of emissions, and reduces the consumption
of fossil fuels. A detailed audit is recommended to better understand the savings potential of
this measure.
Benefits
10.4 Total Annual Energy Cost
$3,270
Photovoltaic System: The intent of this measure is to reduce power consumption from the
grid during peak demand rates, and to reduce greenhouse gases.
Confidential and Proprietary
28
SIEMENS
4.6 Community Library
Community Library
19655 Allendale Ave
Saratoga, Ca 95070
Annual Electric Consumption:
Annual Electric Cost:
Annual Gas Consumption:
Annual Gas Cost:
1,309,760 kWh
$165,761
28,207 Therms
$29,478
Square Feet
48,000 Total Annual Energy 7,289,601 MBtu
MBtu /Sf Index
Proposed Modifications
Interior Lighting Upgrade: The Community Library has older generation T -8 lamps and
ballasts. Newer technology exists on the market that enable the replacement of existing
lamps and ballasts to a more energy efficient T -8 fixture. Siemens recommends a detailed
lighting audit (DEA) to determine the existing lighting levels existing at the Library.
Photovoltaic System: The push for cities to "go- green" is now mainstream and the City of
Saratoga has aggressively already accomplished initial Facility Improvement Measures
(FIMs) at their existing facility. This helps reduce the initial expense for purchasing a larger
photovoltaic (PV) system by already lowering the annual utility bill. Under the Aggregate
Net Meting (AB 2466) scenario, the City has the opportunity to install PV at multiple city
owned locations and utilize the energy generated to the rest of the existing facility electrical
meters. Siemens recommends a DEA to determine the size of system and AB 2466
scenarios.
Benefits
Interior Lighting Upgrade: The intent of this measure is to reduce energy costs by
increasing lighting efficiency and to increase occupant performance by maintaining proper
lighting levels.
Photovoltaic System: The intent of this measure is to incorporate a PV system that installs
not only on the library roof but integrated into parking -lot structures. The benefits are public
awareness, reduced utility bills, reduced rate volatility, and a reduction in the heat island
effect at the Library parking lots.
Library Baseline
The most recent twelve (12) month electric utility data made available to SIEMENS was analyzed
and a baseline was created (Appendix A) for the Library baseline energy use. An Equest model
was used for breaking down each individual type of load at the Library (Appendix A).
Confidential and Proprietary
151.9 Total Annual Energy Cost
29
$195,239
SIEMENS
4.7 Saratoga Parks Hakone Gardens and Landscape Districts
Proposed Modifications
Water Conservation: Weather smart automated irrigation controls use weather factors such
as soil infiltration and rainfall intensity which are compared to determine the exact effect
weather has on irrigation needs. This type of system allows the right amount of water used
to irrigate the parks and the fields. Which eliminates the risk of property damage caused by
water. A detailed irrigation audit is recommended to better understand the savings potential
of this measure.
Benefits
Water Conservation: The intent of this measure is to conserve water, reduce energy costs,
and reduce operating cost.
Confidential and Proprietary
30
SIEMENS
5.0 REBATES OTHER INCENTIVE PROGRAMS
SIEMENS Building Technologies tracks all local, state, and federal incentive programs. SIEMENS
also has a proven track record of obtaining these funds for our customers. Funds typically come in
the form of grants, rebates, and low interest loans. These programs can help in buying down
project costs and shortening payback times while allowing for more facility infrastructure
improvements for the City of Saratoga.
Saratoga has the ability to compete for Federal stimulus funds for energy efficiency and
conservation projects and may be available for use towards the energy project outlined in this
Preliminary Study in the form of Energy Efficiency and Conservation Block Grants (EECBG). It
should be noted that solar photovoltaics installations are eligible. In addition, application
requirements for the EECBG specifically call out Energy Performance Contracting as an eligible
method of project implementation.
Regarding local utility rebates, here is a list of some of the areas that qualify for PG &E rebates:
Lighting Retrofits
Mechanical Retrofits
Water Conservation
Variable Frequency Drives
Energy Management Systems
Motors
PC Power Management Software
Alternative Renewable Energy
Confidential and Proprietary
31
SIEMENS
6.0 CONCLUSIONS AND NEXT STEPS
This Preliminary Proposal has identified areas where the city can reduce energy, water, and
operating costs resulting in numerous other benefits. The next step in the project development
process is to perform a detailed energy audit of the facilities. A comprehensive analysis will provide
proposed equipment descriptions, specifications, detailed construction information, cost and
savings projections, financing terms, a life -cycle cost analysis, and implementation schedule.
SIEMENS will address all aspects of the project including operation and maintenance, training, and
measurement and verification to ensure that projected savings are fully realized. SIEMENS will
also thoroughly consider the following factors:
Available financial resources, including federal, state and utility incentives
Financing options for customer consideration
Project development and project management requirements
Training of facility operators
Long range operation and maintenance
SIEMENS' experience has shown that the preliminary analysis in this proposal is an important first
step in helping customers better understand their facility's energy efficiency profile. However, the
most significant benefit results from helping customers implement the energy, water and operational
savings solutions that are determined during a detailed energy audit. SIEMENS has dedicated staff
experienced in developing the most cost effective energy program for each customer. SIEMENS'
licensed and skilled professionals will ensure that projects are implemented in a timely manner with
minimal disruption to daily activities.
We now propose that the city and SIEMENS jointly develop a customized Scope of Work on which
to base the detailed analysis. A sample Letter of Intent will be provided as a starting point for this
discussion.
The final outcome of the entire process will be a co- authored energy program that is in the best
interests of the city. Here are some key characteristics of SIEMENS' unique and rigorous
approach:
No Up -Front Capital. All costs related to the implementation of the recommended solution,
such as feasibility study costs, design and engineering fees, project management, construction
costs, operations and maintenance training, monitoring of results, and verification of savings
are included in SIEMENS' integrated solution. Therefore, there are no capital requirements
from the city at any time in the development or installation of the project.
Long -Term Comprehensive Perspective. SIEMENS evaluates and considers all cost
effective measures and is not limited to short-term payback projects or constrained by any
product preferences. We will work with the preferences of the city as it relates to contractors
and /or equipment.
Hassle -Free Implementation. Since the SIEMENS solution is an integrated arrangement, the
city does not have to allocate existing personnel to manage the various steps involved in
performing energy efficiency improvements such as feasibility studies, designing and installing
equipment, training personnel, and monitoring the systems' performance.
Partners in Process. SIEMENS will always include the city management in key milestone
decisions throughout the project and will ensure a co- authored solution.
Confidential and Proprietary
32
SIEMENS
Performance Standards. SIEMENS will oversee the quality of service provided and will
ensure that vendors and subcontractors follow specific and strict performance standards.
Comprehensive Warranty. SIEMENS will provide overall warranty coverage for a period of
twelve months from the date of substantial completion for each end -use measure.
Follow -Up Reports to the City. SIEMENS will provide the city with a summary of the
project's performance on a periodic basis.
u Capturing Energy Savings from Capital Improvement Projects and Avoided Capital
Costs. SIEMENS can capture energy savings from current city projects pending that are not
implemented before a contract is signed, and roll those savings into the performance program
to allow for paying of projects where shortage of funds exists.
Confidential and Proprietary
33
SIEMENS
7.0 PROJECT DEVELOPMENT FLOW CHART
Sign
Memorandum of
Understanding
Mar /09
Utility Data Analysis,
Benchmarking,
Feasibility Study
Completed
Feasibility Study
Presentation
May /09, Sept/09
Confidential and Proprietary
City of Saratoga
Project Development Flowchart
Pursue Letter of
Intent
Take no further
action
Detailed Energy
Audit Technical
and Financial
Proposal
Presentation,
Approve Financials
IF
Pursue other
options
Dec /09
34
,Yes
Program
Implementation
Savings Begin
Your Payments to
Financing Institution
Begin
Savings
Measurement
Verification,
Performance
Guarantee
Process
Stop
Pay for
Audit
SIEMENS
8.0 APPENDICES
8.1 Appendix A: Utility Data Analysis
Confidential and Proprietary
35
SIEMENS
City of Saratoga
Project Summary
Project Utility Analysis Charts
City Hall Admin.
13777 Fruitvale Ave
Saratoga /California /95070
4,714 Square Feet
San Jose Weather Zone
$2.54 Energy /Sq Ft
52.7 MBtu /Sq Ft
15.45 kWh /Sq Ft
Year Month
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
Totals
Electricity
R92152
kWh /kWh Dem LF Elec Cost
7,120 0 $863
4,760 0 $587
9,680 0 $1,169
2,040 0 $282
5,880 0 $1,053
6,280 0 $1,240
6,800 0 $1,360
6,360 0 $1,276
6,720 0 $1,339
6,200 0 $1,219
5,440 0 $884
5,560 0 $715
72,840
0 $11,988
Natural Gas
Therms $/Therm Gas Cost
0
0
0
0
0
0
0
0
0
0
0
0
$0
$0
$o
$0
$0
$0
$0
$0
$0
$0
$0
$0
0
$0
Energy Totals
Cost MBtu
$863 24,293
$587 16,241
$1,169 33,028
$282 6,960
$1,053 20,063
$1,240 21,427
$1,360 23,202
$1,276 21,700
$1,339 22,929
$1,219 21,154
$884 18,561
$715 18,971
$11,988 248,530
Monthly Energy Cost($ /kWh)
025
020
alts
0,10
Energy CosttVkWh)
0.00
x
30,000
25,000
e 20,000
6 5,000
10,000
5,000
350
300
R
250 m
m
200 r
150
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct
kWh Base Load HDD CDD1
0
Nov Dec
450
400
100
50
Siemens Building Technologies, Inc.
Performance Solutions
$0 Sewer $/Yr
0 Units /Yr
$0 Water $/Yr
0 CCF/Yr
E
l
L- 0
0
0 t
i
0
0 1 1 I 1 1 I I t 1
Jan Feb Mar Apr May Jun Jul Auq Sep Oct Nov Dec
Therms Base Load HDD CDD
450
400
350
300 a
250
200 W
150
100
50
0
Page 1 of 10 10/1/2009
City of Saratoga
Project Summary
Project Utility Analysis Charts
Planning /Eng/Theatre Bldg.
13777 Fruitvale Ave
Saratoga/Califomia/95070
Siemens Building Technologies, Inc.
Performance Solutions
15,060 Square Feet
San Jose Weather Zone
$2.57 Energy /Sq Ft
52.3 MBtu /Sq Ft
15.32 kWh /Sq Ft
30,000
25,000
e 20,000
1 5,000
10,000
5,000
0-
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
kWh
Base Load HDD
CDD
Oct Nov
Dec
450
400
350
300
250
200 d
150
100
50
0
Page 2 of 10
$0 Sewer $/Yr
0 Units/Yr
$0 Water $/Yr
0 CCF/Yr
Year Month
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
Totals
Electricity
831R8 A6
kWh S /kWh Dem LF Elec Cost
Natural Gas
GNR1
Energy Totals
Therms $/Therm Gas Cost Cost MBtu
1 ,vgv
16,080
19,560
11,400
19,320
22,800
25,800
17,760
23,040
17,880
24,360
15720
0
0
0
0
0
,c,ua i
$1,942
$2,377
$1,430
$3,307
$4,410
$4,910
$3,616
$4,829
$3,510
$4,229
S2 -032
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$0
$o
$0
$o
$o
$o
$0
$0
$0
$0
$0
$0
$2,051 58,140
$1,942 54,865
$2,377 66,739
$1,430 38,897
$3,307 65,920
$4,410 77,794
$4,910 88,030
$3,616 60,597
$4,829 78,612
$3,510 61,007
$4,229 83,116
$2,032 53,637
230,760
0
$38,642
0
$0
$38,642
787,353
Monthly Energy Cost($ /kWh)
0.25
Energy Cest($IkWb)
0.20
1.15
0.10
0.05
2,500
2,000
,500
E
11,000
500
N
A 1' s
i
0 r
i i 1 1
450
400
350
300 w
250
200 Gi
150
100
50
0
Jan Feb Mar Aor Mav Jun Jul Aua Sao C)rt Nbv Dec
Therms HDD CDD Base Load
10/1/2009
City of Saratoga
Project Summary
Project Utility Analysis Charts
City Hall Complex
13777 Fruitvale Ave
Saratoga/Califomia/95070
Year Month
Totals
$0
Natural Gas
0583356 GNR1
Therms $/Therm Gas Cost
12,389
1.16
$14,320
Energy Totals
Cost MBtu
Monthly Energy Cost($ /kWh)
Energy Costa/kWh)
too
0.90
0.80
i0.70
i 0.60
'0 0.50
0.40
0.30
020
0.10
0.00
1 �i MarM Z�
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
40,647 Square Feet
San Jose Weather Zone
Electricity
kWh t14Wh I1nm I F F ier r`nat
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
$0
$o
$o
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1.60 Energy /Sq Ft
56.0 MBtu /Sq Ft
0.00 kWh /Sq Ft
30,000
25,000
20,000
Y 5,000
10,000
m
200 w
150
5,000
0 '""'1 1 1 1 I 1
Jan Feb Mar Apr May Jun Jul
Aug
kWh HDD CDD
450
400
350
300 g, 250
m
D
100
50
0
Sep Oct Nov Dec
Siemens Building Technologies, Inc.
Performance Solutions
2 ,172 1 16 $2,518
2,120 $2,
$1,412
$1,191
$816
$693
$650
$462
$600
$769
$967
51.808
1,213
1,052
723
605
557
386
513
670
826
1.552
1.15
1.16
1.13
1.13
1.15
1.17
1.20
1.17
1.15
1.17
1.17
Page 3 of 10
$0 Sewer $/Yr
0 Units/Yr
$5,433 299,634
$4,962 283,106
$4,957 221,067
$2,903 151,057
$5,176 158,282
$6,343 159,721
$6,920 166,931
$5,354 120,897
$6,767 152,841
$5,499 149,161
$6,080 184,278
$4,556 227,807
$64,950 2,274,783
$0 Water $/Yr
0 CCF/Yr
2,500
2,000
w 1 ,500
1-1,000
500
0-
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Therms
HDD
CDD
Oct Nov
Dec
450
400
350
300
250
200
150
100
50
0
10/1/2009
Year
Month
Electricity
kWh /kWh
Dem
LF Elec Cost
Natural Gas
42211202 C,N,
Therms $/Therm
Gas Cost
Energy Totals
Cost
MBtu
Monthly Energy Cost($ /kWh)
2008
Jan
285
0
$51
63
1.27
$80
$131
7,272
2008
Feb
328
0
$56
71
1.24
$88
$144
8,219
Energy CosgSIkWh)
2008
Mar
313
0
$53
31
1.38
$43
$96
4,168
030
2008
Apr
413
0
$66
30
1.37
$41
$107
4,409
0
2008
May
638
0
$141
9
1.93
$17
$158
3,077
0zo
2008
Jun
650
0
$158
0
$8
$166
2,218
2008
Jul
994
0
$242
0
$9
$250
3,392
8 0.1s
X
2008
Aug
798
0
$178
0
$8
$186
2,723
0
2008
Sep
671
0
$151
0
$8
$159
2,289
0
2008
Oct
570
0
$136
4
3.17
$13
$148
2,345
0.00
2008
Nov
414
0
$84
24
1.45
$35
$119
3,813
1 o
2008
Dec
278
0
$51
63
1.26
$79
$131
7,249
Mobs
Totals
6,352
0
$1,365
295
1.63
$429
$1,794
51,173
City of Saratoga
Project Summary
Project Utility Analysis Charts
Warner Hutton House
13777 Fruitvale Ave
Saratoga /California /95070
1,838 Square Feet
San Jose Weather Zone
$0.98 Energy /Sq Ft
27.8 MBtu /Sq Ft
3.46 kWh /Sq Ft
$0 Sewer $/Yr
0 Units/Yr
$0 Water $/Yr
0 CCF/Yr
30,000
25,000
20,000
f,000
-tc
10,000
5,000
kWh HDD
CDD
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
450
400
350
3008,
2512
200
m
1513
100
50
2,500
2,000
m 1,500
iv
11,000
500
0
Jan Feb
Mar Apr May Jun Jul Aug Sep Oct
Therms HDD CDD
450
400
350
300 a
250 C
200 a
150 C
100
50
0
Nov Dec
Siemens Building Technologies, Inc.
Performance Solutions Page 4 of 10 10/1/2009
City of Saratoga
Project Summary
Project Utility Analysis Charts
Comm. Ctr. /Senior Ctr.
19655 Allendale Ave
Saratoga /California /95070
19,303 Square Feet
San Jose Weather Zone
$0.92 Energy /Sq Ft
18.4 MBtu /Sq Ft
5.40 kWh /Sq Ft
$0 Sewer $/Yr
0 Units/Yr
$0 Water $/Yr
0 CCF/Yr
Year Month
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
Totals
Electricity
kWh /kWh Dem LF Elec Cost
7,040
7,800
6,520
7,120
8,040
8,840
12,720
10,920
10,680
9,320
7,640
7,680
0 $866
0 $980
0 $817
0 $887
0 $1,497
0 $1,854
0 $2,667
O $2,382
O $2,323
0 $1,416
0 $1,060
0 $1,006
104,320
0 $17,754
Natural Gas
Therms /Therm Gas Cost
0
0
0
0
0
0
0
0
0
0
0
0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
0
$o
Energy Totals
Cost MBtu
$866 24,020
$980 26,614
$817 22,246
$887 24,293
$1,497 27,432
$1,854 30,162
$2,667 43,401
$2,382 37,259
$2,323 36,440
$1,416 31,800
$1,060 26,068
$1,006 26,204
$17,754 355,940
Monthly Energy Cost($ /kWh)
0.25
0.20
Enemy Cost(S /kWh)
S0.15
0.10
0.00
as
30,000
25,000
20,000
1 15, 000
10,000
5,000
0-
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
kWh HDD CDD
450
400
350
3008,
250
2006
150
100
50
0
2,500
2,000
0,500
E
m
11,000
500
i
i
0 II 1 f I 1 I
Jan Feb Mar Apr May Jun Jul
I I f
Aug Sep Oct Nov Dec
Therms
HDD CDD
450
400
350
300
250
200
150
100
50
0
N
0
0
i
0
Siemens Building Technologies, Inc.
Performance Solutions Page 5 of 10 10/1/2009
Year
Month
Electricity
kWh /kWh
Dem LF
Elec Cost
Natural Gas
29906151 GNR1
Therms /Therm
Gas Cost
Energy Totals
Cost
MBtu
Monthly Energy Cost($ /kWh)
2008
Jan
1,799
0
$227
224
1.27
$285
$512
28,538
2008
Feb
1,915
0
$245
246
1.19
$292
$537
31,134
Energy CosgS /kWh)
2008
Mar
1,822
0
$234
139
0.95
$132
$367
20,117
0.25
2008
Apr
2,448
0
$311
142
1.20
$170
$481
22,553
2008
May
2,468
0
$445
82
1.25
$102
$547
16,621
0.20
2008
Jun
2,222
0
$458
37
1.48
$55
$513
11,281
1,5
2008
Jul
2,849
0
$581
27
1.69
$46
$627
12,421
2008
Aug
2,162
0
$455
24
1.70
$41
$496
9,777
0.10
2008
Sep
2,574
0
$536
27
1.65
$45
$581
11,482
0.05
2008
Oct
2,149
0
$451
36
1.52
$55
$505
10,932
0 00
2008
Nov
1,801
0
$306
60
1.37
$82
$388
12,145
2008
Dec
1,888
0
$252
191
1.21
$232
$484
25,542
5�
Totals
26,097
0
$4,500
1,235
1.37
$1,537
$6,037
212,543
City of Saratoga
Project Summary
Project Utility Analysis Charts
Corp. Yard Bldg.
19700 Allendale Ave
Saratoga /California /95070
30,000
25,000
20,000
15,000
10,000
5,000
0
Jan
Feb
Mar
Apr
Siemens Building Technologies, Inc.
Performance Solutions
5,340 Square Feet
San Jose Weather Zone
May
Jun
Jul
Aug
Sep
kWh HDD CDD
450
400
350
3008,
25(1
200`0
m
1508
100
50
0
Oct Nov Dec
$1.13 Energy /Sq Ft
39.8 MBtu /Sq Ft
4.89 kWh /Sq Ft
$0 Sewer $/Yr
0 Units/Yr
$0 Water $/Yr
0 CCF/Yr
2,500
2,000
0 1,500
E
1 1,000
500
O
Jan
i
N
1• •J
Feb
Mar
Apr May
Jun
Jul
Aug Sep Oct Nov Dec
Therms
HDD CDD
450
400
350
300
250
200
150
100
50
0
0
0)
m
Page 6 of 10 10/1/2009
City of Saratoga
Project Summary
Project Utility Analysis Charts
Corp. Yard CNG Station
19700 Allendale Ave
Saratoga/Califomia/95070
Siemens Building Technologies, Inc.
Performance Solutions
960 Square Feet
San Jose Weather Zone
$1.01 Energy /Sq Ft
18.5 MBtu /Sq Ft
5.43 kWh /Sq Ft
30,000
25,000
20,000
1 15,000
i
10,000
5,000
0 J■fr+
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
kWh HDD CDD
450
400
350
300
as
250 m
200 m
150
100
50
0
Page 7 of 10
$0 Sewer $/Yr
0 Units/Yr
$0 Water $/Yr
0 CCF/Yr
Year Month
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
Totals
Electricity
4050R0 A1P
kWh /kWh Dem LF Elec Cost
571
647
539
466
463
417
494
314
278
366
325
330
0
0
0
0
0
0
0
0
0
0
0
0
$88
$97
$83
$75
s90
$89
$104
$70
$64
$83
$64
$58
5,210
0
$965
Natural Gas
Therms $/Therm Gas Cost
0
0
0
0
0
0
0
0
0
0
0
0
$o
$o
$0
$o
$o
$0
$0
so
$o
$0
so
$o
0
$0
Energy Totals
Cost MBtu
$88 1,948
$97 2,208
$83 1,839
$75 1,590
$90 1,580
$89 1,423
$104 1,686
$70 1,071
$64 949
$83 1,249
$64 1,109
$58 1,126
$965
17,777
Monthly Energy Cost($ /kWh)
0.25
Energy CosGVkWh)
0.20
1).15
0.10
0.00
2,500
450
400
2,000 350
300w
,1,500 2500
E
200
1- -1,000 1 m
j
150 fl
500 'N 7- 100
50
0 r.....' i' 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Therms
HDD CDD
10/1/2009
City of Saratoga
Project Summary
Project Utility Analysis Charts
North Campus
19848 Prospect Rd.
Saratoga /California /95070
Siemens Building Technologies, Inc.
Performance Solutions
10,400 Square Feet
San Jose Weather Zone
$0.31 Energy /Sq Ft
10.4 MBtu /Sq Ft
1.48 kWh /Sq Ft
30,000
25,000
20,000
65,000
10,000
5,000
0
450
400
350
300,
250 m
200 o`i
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
kWh HDD CDD
$0 Sewer $/Yr
0 Units/Yr
Therms
HDD CDD
$0 Water $/Yr
0 CCF/Yr
Year Month
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
Totals
Electricity
3
83899
kWh S /kWh Dem LF Elec Cost
1,760
1,360
1,520
1,520
1,600
1,360
1,680
1,280
960
800
720
880
0
0
0
0
0
0
0
0
0
0
0
0
$238
$185
$207
$207
$297
$256
$315
$241
$183
$161
$116
$129
15,440
0
$2,534
Natural Gas
40661973 GNR1
Therms /Therm Gas Cost
140 1.26 $176
101 1.29 $131
164 1.09 $178
0 $0
0 $0
0 $0
0 $0
6 3.68 $22
7 3.23 $23
14 2.15 $30
24 1.79 $43
103 1.29 $133
559 1.97 $736
Energy Totals
Cost MBtu
$414 20,005
$315 14,740
$385 21,586
$207 5,186
$297 5,459
$256 4,640
$315 5,732
$263 4,967
$206 3,976
$191 4,130
$159 4,857
$262 13,303
$3,270 108,581
Monthly Energy Cost($ /kWh)
0.25
020
,?.15
0.10
0.05
0.00
4
Energy Cost($/kWh)
Morrtn 5�
2,500
2,000
1 1,500
m
1-1,000
500
0
450
400
350
300u)
250
200m
m
15d3
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Page 8 of 10 10/1/2009
Year
Month
Electricity
kWh
/kWh
Dem
LF Elec Cost
Natural Gas
Therms $/Therm
Gas Cost
Energy Totals
Cost
MBtu
Monthly Energy Cost($ /kWh)
2008
Jan
6,000
0.15
0
$923
0
$0
$923
20,472
2008
Feb
7,440
0.10
0
$754
0
$0
$754
25,385
2008
Mar
6,000
0.12
0
$750
0
$0
$750
20,472
025
Energy cuarysnnvnl
2008
Apr
6,000
0.16
0
$987
0
$0
$987
20,472
2008
May
5,360
0.18
0
$965
0
$0
$965
18,288
020
2008
Jun
5,360
0.19
0
$1,005
0
$0
$1,005
18,288
415
2008
Jul
5,280
0.20
0
$1,052
0
$0
$1,052
18,015
2008
Aug
5,480
0.20
0
$1,094
0
$0
$1,094
18,698
oio
2008
Sep
6,000
0.16
0
$940
0
$0
$940
20,472
oos
2008
Oct
4,880
0.15
0
$743
0
$0
$743
16,651
000
st,
40 5P
4
2008
Nov
4,760
0.16
0
$753
0
$0
$753
16,241
>4'
2008
Dec
5,800
0.13
0
$774
0
$0
$774
19,790
Totals
68,360
0.16
0
$10,739
0
$0
$10,739
233,244
City of Saratoga
Project Summary
Project Utility Analysis Charts
Hakone Gardens
21000 Big Basin Way
Saratoga /California /95070
Square Feet
San Jose Weather Zone
8,000
7,000
6,000
5,000
3 4,000
3,000
2,000
1,000
0-
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
kWh HDD CDD
450
400
350
300x,
25d2
m
2006
150
100
50
0
Oct Nov Dec
Siemens Building Technologies, Inc.
Performance Solutions
Energy /Sq Ft
MBtu /Sq Ft
kWh /Sq Ft
$0 Sewer $/Yr
0 Units /Yr
$16,418 Water $/Yr
4,172 CCF/Yr
E
m
1-
0 I 1 1 I 1
350
3000
250
2006
-150
7- -100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Therms
HDD CDD
450
400
Page 9 of 10 10/1/2009
City of Saratoga
Project Summary
Project Utility Analysis Charts
Saratoga Public Library
Year Month
2008 Jan
2008 Feb
2008 Mar
2008 Apr
2008 May
2008 Jun
2008 Jul
2008 Aug
2008 Sep
2008 Oct
2008 Nov
2008 Dec
Totals
Electricity
kWh /kWh Dem LF Elec Cost
87,680 0.10 0
96,480 0.10 0
100,320 0.10 0
95,200 0.11 0
107,200 0.12 0
117,920 0.14 0
112,960 0.15 0
124,000 0.14 0
134,080 0.14 0
115,680 0.15 0
106,240 0.15 0
119 nnn n in n
$8,936
$9,640
$10,037
$10,430
$12,803
$16,506
$16,437
$17,713
$18,843
$16,869
$16,146
R11 ant
1,309,760 0.12
0
$165,761
Natural Gas
54589260
Therms /Therm Gas Cost
3,717
3,705 1.10 $4,061
3,829 1.04 $3,964
3,250 0.71 $2,297
2,895 0.79 $2,296
162 1.67 $271
2 25.65 $51
0 $52
2,726 1.53 $4,179
1,840 1.22 $2,241
1,625 1.10 $1,786
4,456
0.96 $3,572
1.06 $4,707
28,207
3.35 $29,477
Energy Totals
Cost MBtu
$12,508
$13,701
$14,001
$12,728
$15,099
$16,777
$16,488
$17,765
$23,021
$19,110
$17,932
$16,108
670,864
699,690
725,192
649,822
655,266
418,543
385,620
423,088
730,081
578,700
524,991
827,744
$195,238 7,289,601
Monthly Energy Cost($ /kWh)
Energy Cost)f /kWh)
0.16
0.14
,0 12
m 10 f
X 08
0.06
0.02
0.00
6 y d
160,000
140,000
120,000
100,000
1 30,000
60,000
40,000
20,000
0.
Jan
Feb
Mar
Apr
May
Siemens Building Technologies, Inc.
Performance Solutions
48,000 Square Feet
San Jose Weather Zone
Jun
Jul
Aug
Sep
kWh HDD
CDD
Oct Nov
$4.07 Energy /Sq Ft
151.9 MBtu /Sq Ft
27.29 kWh /Sq Ft
Dec
450
400
350
300,
25(12
200`0
15(P
100
50
0
$0 Sewer $/Yr
0 Units/Yr
$3,219 Water $/Yr
591 CCF/Yr
5,000
4,500
4,000
3,500
w 3,000
2,500
1
1,500
1,000
500
0
450
400
350
3000
250
cs
2006
150
100
50
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Therms
HDD CDD
Page 10 of 10 10/1/2009
8.2 Appendix B: PG&E Electrical Rate Structure
The rate structures' charges are as follows:
PG &E provides electrical service to accounts on the A -1 and A -6 rate structure without demand charges.
The A -6 structure does, however, incur time -of -use charges. The rate structures' kWh charges are as
follows:
Electricity /kWh (A -1 rate without tax) Summer Winter
Flat Rate
Electricity /kWh
Peak
Part-Peak
Off -Peak
The A -10 (Non -FTA Rates) rate structure provided by PG &E does not incur time of use charges but
does charge for demand usage. The rate structure's consumption kWh and demand kW usage is as
follows:
Electricity /kWh (A -10 rate without tax)
Flat Rate
Demand /kW
Flat Rate
PG &E provides electrical service to the other accounts on the A -10 TOU- Medium General Demand
Metered Service, time -of -use. The rate structure's time -of -use kWh charges are as follows:
Electricity /kWh (A -10 TOU rate without tax) Summer Winter
Peak $0.16507 $0
Part -Peak $0.14066 $0.11104
Off -Peak $0.12613 $0.09938
The demand charges are not time -of -use and the A10 TOU rate structure for demand is as follows:
Demand /kW (A -10 TOU rate without tax) Summer Winter
Maximum Peak $10.27 $5.76
The E -19SW (Non -FTA Rates) rate structure provided by PG &E charges for time -of -use consumption
kWh as well as demand kW. This benefits facilities most likely to use a significant percentage of their
electricity during the off-peak period.
Electricity /kWh (E19SX rate without tax) Summer Winter
Peak $0.15553 $0
Part -Peak $0.10556 $0.09348
Off -Peak $0.08506 $0.08189
Demand is measured and averaged over 15- minute intervals. "Maximum" demand is the highest of all
the 15- minute averages for the billing month. "Maximum Peak" is the highest of all the 15- minute
averages during the peak period. The E19SX rate structure for demand is as follows:
Demand /kW (E19SX rate without tax)Summer Winter
Maximum Peak $13.51 $0
Part Peak $3.07 $1.04
Maximum $7.70 $7.70
Confidential and Proprietary
(A -6 rate without tax)
(A -10 rate without tax)
$0.19980 $0.13768
Summer Winter
$0.41487 $0
$0.18872 $0.14196
$0.11732 $0.11603
Summer Winter
$0.14034 $0.10517
Summer Winter
$10.27 $5.76
36
SIEMENS
SIEMENS
-ns Energy Environmental Solutions
City of Saratoga
Clean Energy Project
City Council Study Session
October 26, 2009
SIEMENS
Siemens Building Technologies j
Project Motivation
Preliminary Study Analysis
Potential Project Options
PC Project Development Process
Questions, Discussion
SIEMENS
Climate Change
Saratoga as "Green Leader"
Sophisticated population
Demand for high level of service
Shrinking resources
SIEMENS
r
Pr o'ect Motivation
lity Data Analysis Total Annual Expenditur
Saratoga Utility Spending*
Total
Expenditure:
>$400,000
Electricity
40%
Gas
5%
Water
55%
SIEMENS
Water
Gas
O Electricity
SIEMENS
Utility Data Analysis Facilities
is
North Campus SO 24
Warner House
Corp. Yard
Community I Senior Center
10,000 to 50.000 11"2(Typ.)
v.
Health Care (Typ.)
City Hall Admin.
Theatre/ Engr. Community
Development
Electric S per Square Foot Index
Library
SO
00.57
10 99
131 12
32.04
02.54
00.45 01m 0400 0300 5100
SWIM Coat par liquan'oot
SIEMENS
Utility Data Analysis Facilities
Warner House 30,7•1
North Campus
Corp. Yard
City Hall Complex
(Admin/Theatre /Engr /Comm.
Devel.)
Total Energy Cost Per Building
Library
1 53.270
1 07.002
070,710
0- 850.000 8100.000 8150.000 8200.000 0280,000
Total
ple of Utility Data Analysis (City Hall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 14M Base Load -HDD COD!
Electrical
(City Hall)
City
Districts
LLD 4
LLD 5
LLD 6
LLD 7
Totals:
City (LS -2)
Red fixture count
Blue electricity cost
SIEMENS
r Apr May Jun Jul Aug Sap Oct i
therms -HDD ODD
Gas
(City hall complex)
PG E (LS -1)
SIEMENS
Streetlight Expenditures*
Quito
Azule
Sarahills
Village Res
$59K
Note: Does
not include
O&M costs
$121(
1 d
$3K
6
1K
99
$12K
4
1K
20
2K
0
0
25
3K
98
$12K
111
$13K
182
$25K
273
$33K
ple of Utility Data Analysis (City Hall
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 14M Base Load -HDD COD!
Electrical
(City Hall)
City
Districts
LLD 4
LLD 5
LLD 6
LLD 7
Totals:
City (LS -2)
Red fixture count
Blue electricity cost
SIEMENS
r Apr May Jun Jul Aug Sap Oct i
therms -HDD ODD
Gas
(City hall complex)
PG E (LS -1)
SIEMENS
Streetlight Expenditures*
Quito
Azule
Sarahills
Village Res
$59K
Note: Does
not include
O&M costs
Water Consumption
City LS, Medians, Parks
City Facilities
LLD 26
LLD 16
LLD 22
LLD 28
All others
Totals:
Meter count Water cost
$170K
$16K
2 16K
2 10K
6 4K
1 3K
19 11K
85 $230 K
Red meter count
SIEMENS
Bellgrove
Beauchamps
Prides Xing
Kerwin Ranch
Blue water cost (2008 calendar year)
Theatre/
ngineering/ CD
SIEMENS
HVAC upgrade
Building envelopes
Solar thermal
Facility Improvement Measures
Building Technologies
Building Technologies
Additional Facility Improvement Measures
PC Power Management
Window Film
Plug Load Controller
Thermal Storage
Solar Water Heating
Cool Roofs (long payback)
SIEMENS
Streetlights and Park Lightin
Potential irrigation savings
a
►.e "1!1
Long payback
Parking lot reconfiguration is driver for cost
SIEMENS
Library
B
e
i l l
*AL
FA J
Solar photovoltaic potential with capital contribution
offsets 30% of consumption
Facility Improvement Measure
Building Technologies
Option
Approx. Payback
Cost Range
(+1- 20
Description
Option 1
10 years
$1 million
Low hanging fruit:
Lighting, PC pwr mgmt.
EMS. irrigation. streetlights
(assumes LLD capital cost
contribution)
Option 2
20 years
$1.4 million
Low Hanging fruit HVAC
Option 3
30 years
$4.2 million
Low Hanging fruit
HVAC
Library Parking Canopy
Solar PV
Eforrettimill4
4tIsttt1 Lift
SIEMENS
a
Solar PV challenge: long payback
Modest solar PV configuration showing
environmental leadership without excessive cost?
Solar PV rebates can help cash flow
Eye to local companies
SIEMENS
Overview of Initial Project Options
Building Technologies
Option
Approx. Payback
Cost Range
Description
Option 1
"Base"
10 years
$1 million
Low hanging fruit:
PC power mgmt, EMS,
irrigation. streetlights
(assumes LLD capital cost
contribution)
Option 2
"Base
Plus"
15 years
$1.4 million
Low Hanging fruit HVAC
Option 3
"Stretch"
+/_15 years
$1.4 million
.2 -.3 million
(solar pvi
Low Hanging fruit HVAC
modest solar pv
Total
Project
Size
Overview of Refined Options
bldg envelope FIMs (cool roofs)
park lighting
iv EECBG (Formula competitive)
Library bond funds, LLD funds
4, Rebates
Capital lease
CEC 1% or 3% competitive
Internal lending
Market rate (bank)
SIEMENS
SIEMENS
Conceptual Cash Flow
11111!1111!1!11
c Annual lease payments tr
co" L L ca
SIMMONS
Benefits of Energy Performance, Contract
Bundle FIMs to finance project as whole
Preserve capital for non energy priorities
Leverage savings from fast payback FIMs
Flexibility of procurement methodology
Performance Contract
Sign
Memorandum of
Understanding
Ma dog
Utility Data Analysis,
Benchmarking,
Feasibility Study
Completed
Feasibility Study
Presentation
Juno, Sept/09
COS
Evaluates i
Options
Oct OB
Pursue Letter of
Intent
Detailed Energy
Audit Technical
and Financial
Proposal
Presentation,
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MEETING DATE: October 26, 2009 AGENDA ITEM:
DEPARTMENT: Finance Administrative Services CITY MANAGER: Dave Anderson
PREPARED BY: Mary Furey DIRECTOR: Mary Furey
SUBJECT: Budget Policy Review
SARATOGA CITY COUNCIL
RECOMMENDED ACTION:
Review current and proposed budget policies and practices, and provide direction to staff
REPORT SUMMARY:
In alignment with Governmental Financial Officer's Association (GFOA) best practices, the City's
Operating and Capital Budgets serve as a financial plan, as well as a policy document, a communications
tool, and an operations guide. The annual budgets are developed with an emphasis on long -range
planning, service delivery, and program management with the fundamental purpose of these documents
to provide a linkage between the services and projects the City intends to accomplish, and the resources
committed to get the work done.
The City adopts an annual Operating and Capital Budget effective from July 1s through June 30 of the
following calendar year. The Operating Budget allocates funding for ongoing costs and services which
support and benefit the community including: street and park maintenance; development and building
oversight; public safety and emergency preparedness; recreation and teen services; facility and equipment
maintenance; financial management; and city administration. The Capital Budget provides for
individually approved infrastructure improvements and is adopted on a project basis, meaning project
funding and expenditure appropriations carryforward (as adjusted) to the subsequent fiscal year.
Adopted high level budget policy concepts that the City currently operates under are incorporated within
the Financial Policy Statements which were adopted by Council on October 1, 2008, and are included in
the budget document for general reference. (Attachment A)
As a result of the October 13 2009 Cost Recovery study session, Council direction affirmed the
Recreation Department's stated cost recovery goal of approximately 65 in alignment with cost
recovery obtained by other surveyed Recreation Departments. The Council did not establish a cost
recovery rate for the Community Development Department as it was determined there was not enough
consistent financial information to make a valid, fact -based decision. However, Council did establish a
fund balance policy for the Development Reserve which allows for the utilization of (up to) one -third of
the fund balance reserve to offset revenue shortfalls. This new policy is to include direction that
Community Development Department excess revenues over expenditures would be allocated into the
Development fund balance reserve in order to build the reserve up in more profitable years, for use in
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less profitable years. This mechanism was implemented to mitigate the economic impacts of revenue
peaks and valley that occurs with development activities over multiple year cycles.
In addition to the budget policies Council adopted as part of the overall Financial Policies Statements and
Cost Recovery Study Session, the following standard budget policies and practices are regularly
incorporated into the City's budget process, and could be added as amendments to the financial policies:
(Please note that the following budget policies and practices are a work-in-progress.)
[GENERAL BUDGET -POLICIES
The City adopts an Operating and Capital Budget each year to identify and communicate the City's
stated policies, goals, and priorities in the format of an operations plan with staffing and funding
allocations.
The Operating Budget represents funding allocations for ongoing City services, support, and
administration. The Capital Budget represents funding allocations for City infrastructure, facilities,
and efficiency improvements.
The City adopts balanced Operating and Capital Budgets each year, which is defined as funding
sources equal or exceed funding uses. Funding sources includes revenues, transfers -in from other
funds, and Council- approved use of fund balance. Funding uses include expenditures and transfers -out
to other funds.
The City will seek to maintain financial stability through a diversified and stable revenue base, and
will account for both revenues and expenditures within a program, if a relationship exists.
The City's general operations and user fee supported on -going costs and services are accounted for
within the General Fund as primary functions of the City. The City has also established special
revenue, capital project, debt service, and trust funds to account for revenues that are restricted for
certain activities, in accordance with GFOA guidelines.
Funds exist and are budgeted as separate financing entities from other funds in accordance with
Generally Accepted Accounting Principles (GAAP), with their own self balancing set of accounts
recording revenue sources, expenditures, and fund equity.
BUDGET DE t itLOPM PRACTICES
As the City develops its Operating and Capital Budgets each year, processes are established to ensure
logical financial relationships and on -going consistency in the budgetary information. The following
standard budget development practices are currently in place, or in the process of being established:
Timeline
A budget calendar is established to set the overall timetable for budget requests, assignments,
meetings, deadlines, and Council meetings for the public hearings and scheduled budget adoption for
the upcoming budget development process.
Forecast
Council will review the status of the City's current year budget and five -year forecast at the Council's
mid -year retreat as a first step in budget development for the following year.
The primary objectives of the financial forecast is to assist Council and staff in identifying financial
trends, recognize long -term implications of fiscal decisions, and provide management with a tool to
assess the General Fund's ability to continue current services and preserve the City's fiscal health.
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To facilitate long -range financial planning, the financial forecast represents a five year history of the
City's revenues, expenditures, and fund balance, current year estimates, and a five year projection of
the City's long term fiscal condition under currently adopted service levels.
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The forecast projections are based on a compilation of financial data history, information, and
reasonable economic, operational, political, and administrative assumptions used to project likely
revenues and transfers -in, and subtract expected operating costs, debt service, transfers -out, capital
investments, and maintenance expenses for equipment, facilities, and infrastructure at currently
adopted and projected service levels.
A forecast projection is not a statement of what will occur over the next five years, but a warning
system for potential future problems, and a tool to be used for decision making.
Budget Policy Review
As part of the mid -year Council retreat, the currently adopted budget policies will be reviewed by the
City Council after the forecast. This will provide information necessary to begin budget development
in alignment with Council's goals, policies, -and best financial practices.
Operating Budget Development
The development of the Operating Budget is the synchronization of many pieces of information into
numerous schedules to develop a citywide workplan. At a summary level, the following processes /steps
are included in the preparation of the Operating Budget:
Budget development guidelines are developed direction on forecast analysis, new initiatives,
staffing levels, changes in program service levels, revenues and expenditures, etc.
Community grant process
User Fee Schedule process
Labor and Benefit costs developed
Internal Service Fund detail budget worksheets prepared
Program Budget detail worksheets provided to program managers with salary and internal service
information
Program managers to determine and submit current year revenue and expenditure estimates
Program managers to develop and submit revenue and expenditure budget projections
1st draft budget run prepared
Review, analysis, and budget changes
Council study session
2nd draft budget run prepared
Department/program narratives prepared
Review, analysis, and budget changes
Financial Summaries and narratives finalized
Proposed Budget prepared and presented to Council at public hearing
Capital Budget Development
The Capital Budget is the update of the five -year Capital Improvement Plan, and is an assessment and
update of project status, funding allocations, scope of work, timelines, and project priorities. At a
summary level, the following processes /steps are to be included in the preparation of the Capital Budget:
Current Projects
Public Works to reassess currently approved/adopted CIP projects and categorize by:
Projects to be completed by fiscal year -end
Inactive funded projects to be delayed into future years (no fiscal activity in budget year)
Active projects to carryforward to the next year
Unfunded, adopted projects
For inactive projects, Public Works to determine and submit new timeline if applicable
For active projects with carryforward funding, project managers to estimate year end balance /amount
of carryforward funds
Project Funding
Determine availability of current funding status, new funding, designated revenues, and General Fund
and other fund transfers.
Align designated funding and grant funding with designated projects
Prioritize remaining funding allocations for current and proposed projects
Proposed Project Review
Proposed CIP projects submitted for budget review to include a workplan that identifies:
Scope of work, timeline, project justification, cost/benefit analysis, coordination issues, and project
alternatives
Every CIP Project is to have an assigned project manager who is assigned to prepare the project
proposal, oversee the project in process, authorize all project expenditures, and ensure that the
project is completed on schedule and within budget.
Projects to be rated based on health and safety, infrastructure failure, cost efficiencies, availability
of external funding sources, community impacts, or other justification criteria
Funding sources utilized in the proposed project.
Prepare project budget worksheets and summaries
Council study session
Review, analysis, and budget changes
Prepare CIP project recommendations for Council budget hearing
Project Adoption
When adopted, CIP Projects are authorized for five years. If the project is not progressing within that
time period, the project is to be brought back for re- evaluation.
OPERATING B[JDGET�P�RAC`TXCES
Structure
The Operating Budget is organized by "Departments and subsequently by subcategories or budgetary
units called "Programs" which combine similar functions, purposes, and services into definable
workload areas.
The City depai tments are structured by functional area. The department's budgetary information
including purpose /objectives, funding, and staffing are collectively reflected in the depaitmental
overview, and then is subsequently broken out into individual programs which provide more
specificity and detailed workload duties.
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Each program budget section will include narratives and schedules which describe the services
provided in the program budget overview, appropriate resources (funding and staffing), and establish
workload priorities, goals, and activities which define the nature and level of program services
delivered to provide program intent and resource information.
The City's depaitinents include: Council Commissions, City Manager's Department, Finance
Administrative Services, Community Development, Public Works, Recreation Facilities, Public
Safety, and Non Departmental.
Council and Commissions Depaitment reflects the elected City officials and commission functions, the
staffing resources (the elected and appointed volunteers), descriptions of the Council and Commission
functions, and the funding allocations to support these legislative and advisory functions.
City Manager's Department includes the City Manager's support functions to effectively oversee City
management processes. This includes the City Manager's Office, the City Clerk, and the Human
Resources Office.
Finance Administrative Services Department is comprised of the Financial Services to manage
citywide financial activities, and the Information Technology Services programs, the Office Stores,
and IT Equipment Replacement programs for administrative support functions.
Community Development Department consists of Development Review and Arborist Services,
Advanced Planning, Code Compliance, Building Inspection, and community service program for
CDBG grants and housing rehabilitation loans.
Public Works Department is comprised of: General Engineering for infrastructure oversight;
Development Engineering for private development services, Environmental Services to oversee several
environment programs and ensure compliance with State regulations; Streets Storm Drains; Parks
Landscaping; Landscape Lighting District Funds; Equipment Maintenance; and Equipment
Replacement Funds.
Recreation Facilities Depai liiient provides recreation services and activities through its Recreation
Services and Teen Services programs, and provides Facilities to the community through its Facility
Rentals program. The Building Maintenance program provides citywide maintenance support for all
facilities.
Public Safety is comprised of the Public Safety Services program for day -to -day law enforcement
services, and the Emergency Preparedness program which prepares the City for infrequent large -scale
disaster and emergency occurrences.
Non Departmental is comprised of a collection of programs that are independent of the City's service
area functions, including the General Administration program, Legal Services, Community Grant and
Event programs, Risk Management/Liability and Workers Comp insurance programs, the Library
Bond Debt Service, Library Capital Maintenance Trust Fund, and the KSAR Trust Fund. These are
all considered non -depai tnental as the programs represent functions outside of the established City
service operations.
The Financial Summaries section of the budget is the summarization of all budgeted financial and
staffing information into concise schedules for a comprehensive view of the depaitiiental /program
budgets from several different perspectives.
Revenues
Council Commissions
These programs have legislative and advisory functions, and are not revenue focused. However, as
Council and Planning Commission appeals are filed on occasion, the appeal fees are accounted for in
these programs as the hearing are part of the program function.
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City Manager's Department
The City Manager Department programs are focused on city management oversight support and are
therefore not revenue generating programs. An exception is a very small amount of revenue accounted
for in the City Clerk's program for dedication trees, benches, or plaques, which represents a
reimbursement for the costs of the dedication item, and fees for copies of documents.
Finance Administrative Services
While the Finance Administrative Service Department manages the City's finances, only Business
License application fee revenue that is specifically linked to a service the program provides is included
in the Financial Services program. The majority of City revenue is considered tax revenue that is
received on behalf of the City in the Non Departmental section's General Administration program.
Community Development
The Development Department is a fee for service focused department with numerous types of
development fees collected for project application reviews and permits provided to customers.
Additionally, the Development Services program collects arborist fees, historical preservation, traffic,
and an assortment of miscellaneous service fees as part of the program's overall development focus.
A General Plan Update fee is collected in the Advanced Planning program to underwrite the cost of
City standards, regulations, specific plans, and the General Plan to guide the physical development of
the City. This fee is based on the building permit issued as a new building permit represents a physical
change in the City's landscape and has impacts to the community and the future General Plan.
The Code Compliance program revenues consist of regulatory activity and services, including
solicitor /peddler permits, special event and noise permits, and city code which may result in fines.
Building Inspection Fees represents building plan check fees, building inspection permit fees,
grading permits, and state regulatory fees.
Public Works
Public Works operating budget revenues primarily come from engineering permits and services and
City park fees. The General Engineering program issues encroachment permits for access rights on
city infrastructure, and the Development Engineering program collects fees for engineering related
reviews. The Environmental Services program is an oversight program, and revenues are limited to the
County collected and distributed refuse surcharge fee.
The function of the Streets and Storm Drain Maintenance program is city street maintenance and as a
result does not generate revenues except for an occasional reimbursement for work done by street staff.
The Parks and Landscape program function supports park usage by sport groups, therefore fees are
collected as reimbursement for these services and contract services. The Parks program also oversees
the Landscape Lighting District (L &L's) activities and provides some services, and therefore
receives an administrative fee to reimburse the City for associated expenses.
L &L's receive tax and assessment fees from property owners from the County assessor to pay the City
for District services and oversight.
The Public Works' vehicle and equipment internal service support functions support their own and
other departments, and therefore collect charge -back service revenue.
Recreation Facilities
The Recreation and Facility Department revenues consist of class, camp, and recreation program fees.
As established under the Cost Recovery Policy, overall program revenues are offset by community
based functions, in conjunction with class fees being tempered by competition in the recreation
marketplace.
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Facility Rental revenues are also elastic due to market competition and do not represent a full cost
recovery of the program. Rental fees are established as part of the Fee Schedule update process each
fiscal year.
Public Safety
Vehicle Abatement, Vehicle Code Bail Fines, Parking, and False Alarm Fines are allocated to the
Public Safety program as the revenue is derived from the Sheriff's activities.
SLESF /COPS Subvention Funding and Public Safety Sales Tax are allocated to the Public Safety
program as these revenues are directly linked to the City providing public safety services to the
community.
Non Departmental
The General Administration program accounts for the majority of the City's operating budget
revenues. This includes Property Tax revenues, Sales Tax, Hotel Tax, Business License Tax,
Construction Tax, Franchise Fees, VLF revenue, Interest, and Cell Tower Lease revenue.
Legal Services, as well as the Community Grants and Events programs are not revenue generating
functions and do not typically account for any revenue.
Risk Management/Liability and Workers Comp insurance programs reflect the charge -back revenues
received for internal support services to other programs, and some claim reimbursements.
The Library GO Bond Debt Service Fund program reflects property tax assessment levied on the city's
property owners, as well as interest earned on the debt service funds. The City's Library Capital
Project trust funds only reflects interest earnings, whereas the KSAR Trust Fund reflects Public,
Education, and Government Access revenues received as part of a cable pass through fee to support
public television.
Expenditures
Council Commissions
City Council is supported with funding for supplies, association membership dues, meeting expenses,
and training costs. An additional amount of $50,000 is set aside for Council Discretionary Funds each
year, to be allocated as directed by Council vote
City Commissions receive funding to carry out workload and to attend training as required by
commission position.
City Manager's Department
As the City Manager's Office, City Clerk and Human Resources programs are primarily city
management functions supported by staff. Operating costs include supplies, training, document
imaging, agenda management, website management, and video streaming and archiving of council
meetings.
Finance &Administrative Services
The majority of costs in the Financial Service Program are staff, however audit services and supplies
contribute significantly to the bottom line.
The Office Stores program does not have staffing costs, expenses consists of paper and postage
supplies, and equipment lease fees.
The IT Services program reflects staffing, annual license and support fees, and consultant costs to
support the program's functions.
The IT Replacement program is limited to equipment costs only.
Page 7 of 14
Community Development
As a fee for service orientated depaitment, expenditures primarily represent staffing costs to provide
development services, with some additional contract and consultant services for assistance.
Development expenses include supplies and printing, legal notices, credit card fees, system license
fees, records management services, and pass through applicant fees. The Building Inspection
program also has regulatory fees for the State's seismic monitoring program (SMIP).
Public Works
Engineering functions are supported by staff and consultant services for both city engineering purposes
and development engineering. Engineering program costs also include county wide congestion
management services, GIS services, and miscellaneous operational costs.
The Environmental Services program expenditures represent some staff oversight costs, several large
association fees for regional environmental and solid waste programs, and for storm drain testing and
cleaning.
Streets and Storm Drain Maintenance program functions provide staffing and material costs for street
and storm drain maintenance, streetlights, traffic signals, signs, street markings, and debris removal, as
well as coordinating work with engineering for traffic and roadway projects, and with Parks for weed
control and storm drain work. Expenditures consist of mainly of staffing and contract services costs,
with a small amount for materials and supplies.
The Parks Landscape program expenditures also rely heavily on staff for program functions, but
utilize contract services for various park and median landscaping maintenance functions, street tree
pruning, orchard maintenance, and sport field services. Water, field rental, port -a -potty rentals, and
refuse bins make up some of other the fees and charges for this program
Landscape Lighting Districts use city staff for administrative oversight, however most landscaping
and lighting maintenance is provided through contract services
Vehicle Equipment Maintenance reflects staffing costs for ongoing maintenance servicing and small
repairs, fuel, supplies, professional repairs, and miscellaneous permit fees. The Equipment
Replacement expenditures reflect vehicle and equipment purchases.
Recreation Facilities
Recreation and Teen Services functions include recreation, instructional, and health and safety classes,
camps, and excursions. City staff oversees and support these services, however contract instructors
and temporary staff provide the hands -on recreation services, and contribute to a significant part of the
program's costs. Excursion costs, supplies, credit card fees, and printing costs are notable
expenditures also.
The Facility Rental program is managed by staff with very little expenses other than internal service
costs for building maintenance charges.
The Building Maintenance program reflects staff time and contract services for facility maintenance,
repairs, and upkeep. Supplies, materials and utility costs are significant costs for this program as city-
wide facility fees are accounted for in this program and then charged back to departments through
internal service charges.
Public Safety
The Public Safety program reflects the City's contract law enforcement services, animal control
services, and affiliated administrative fees.
The Emergency Preparedness program reflects a minor amount of expense for supplies, emergency
communication fees, and the regional interoperability program dues.
Page 8 of 14
Non Departmental
General Administration program expenses include a collection of expenses, that do not relate to a
specific depai tiuent's function, such as unemployment charges, retiree insurance administration fee,
and budgeted funds for leave payouts, miscellaneous supplies, and printing costs.
Legal Services reflects the anticipated expense for city attorney services including routine attorney
services, council and departmental support, non development ordinances, property development and
code enforcement matters, litigation, and a small amount for supplies.
Community Grants program is the centralized distribution point for City and CDBG grant funds.
There are several categories of grant expenditures: Community Services, Community Special Interest
Groups, Saratoga Community Support Groups, and CDBG Public Service Grants.
Community Event program reflects budgeted funding for community support and city events to build
community in the City
The Risk Management/Liability and Workers Comp Insurance program expenses primarily reflect
insurance premium costs; however there is a minor amount of staff time allocated to these programs
for administration.
The GO Bond Debt Service Fund reflect the principal and interest payments, and the contract service
fee for arbitrage monitoring.
The Library Capital Project Fund reflects funding for small improvement projects. Large projects are
administered through the City's CIP Budget.
KSAR Trust Fund expenditures would reflect only the distribution of trust fund money back to the
KSAR non profit organization.
S FAFFING POLICIES'
INTERNAL °SERVICE E NU O PRACTICES i
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City staff positions (FTEs) authorized in the prior year's adopted budget continues on as the staffing
base in the following year. Proposed staffing additions or deletions are specifically identified and
brought to Council for approval in the budget process.
Part-time staff positions receive benefits in accordance with their budgeted FTE percentage.
Temporary staff positions are presented in the budget as funded hours. Temporary worker positions
differ from city staff positions as temporary staff are paid based on the number of hours worked in a
pay period, do not receive benefits, and are utilized according to changing and variable needs.
The City operates under adopted labor contracts known as Memorandum of Understandings (MOUs)
for the three labor bargaining groups and the City Manager contract. Labor and benefit expenses are
budgeted in accordance with the MOUs.
Council Members (elected positions) and Planning Commissioners (Council appointed positions)
receive monthly stipends. Stipend amounts are not adjusted from year to year unless directed by
Council. The remaining City Commissioners do not receive stipends.
FTEs and temporary staff hours are allocated to programs based on an estimated percentage of time
spent on program assignments within the depaitnient's program functions.
The City maintains Internal Service Fund programs to allocate centralized program costs which exist
to provide services and support to other City programs. Each of these programs is accounted for as a
separate' fund to track replacement funding, accumulate funds for infrastructure projects, and service
level flexibility. The City's Internal Service Fund programs include:
Risk Management/Liability
Workers Compensation
Office Stores
Information Technology Services
Vehicle Equipment Maintenance
Building Maintenance
Equipment Replacement
IT Equipment Replacement
Risk Management /Liability Fund is the City's insurance program which provides general liability,
auto, property insurance, and risk management services as part of the ABAG JPA insurance pool.
Funding for this program comes from charge -backs to departments based on staffing and function risk
factors which recognize operational costs.
Workers Compensation is the City's insurance for employee benefit coverage for work related
illness and injuries. Charge -backs to depaitments are based on the number of staff, volunteers, and
commissioners, injury history, and service function risk factors which recognize operational costs.
Office Stores is a centralized cost center for the City's photocopy equipment, postage machine,
postage permits, and the costs, supplies, equipment repairs, and servicing that comes with maintaining
the equipment. Direct costs for copies and mailing are charged back to programs, with the overall
leasing costs charged -back to programs on a pro -rated basis, based on program usage.
Information Technology Services this program supports the delivery of technology based services
throughout the City operations. Core services include the maintenance and support for information
systems, voicemail and wireless communications, desktop computer and network maintenance and
support, as well as new technology initiatives and enhancements to improve IT services. Program
operating costs include staffing, consultant costs, and annual license and support fees. Program
charge -backs are based on depaitments information systems, support and maintenance requirements,
number of staff and assigned desktops, and user specific fees.
Vehicle Equipment Maintenance this program provides for preventative maintenance, cleaning,
and repair of all City vehicles and equipment in accordance with manufacturers requirements, and to
ensure all vehicles and equipment are safe and well functioning. Program charge -backs are based on
the amount and type of equipment assigned, maintenance requirements, and fuel usage.
Building Maintenance is a centralized cost center for building maintenance and utility costs, as well
as custodial supplies and services and miscellaneous repairs. Program charge -backs are based on
building space allocation and community use versus departmental use, as well as staffing and contract
repair services and supplies utilized for maintenance.
Equipment Replacement this program provides for a consistent level of funding for the
replacement of vehicles and equipment over an asset's lifespan. This funding structure smoothes a
depai tment's operating expenses by charging back an annual fee for assigned vehicles and equipment
to a program, while the Internal Service Fund program reflects the actual fluctuating costs of
acquisition and disposal of equipment, and the accumulation of funds for replacement. Program
charge -backs are based on the assigned vehicle and equipment's replacement cost and lifespan.
IT Equipment Replacement provides for the systematic charge -back of IT related equipment based
on the amount and cost of equipment provided to each program over the lifespan of the equipment.
This allows for an accurate cost of operations on an ongoing basis, and a consistent level of funding
ensuring services are supported. IT Equipment includes desktops, monitors, servers, printers, laptops,
telecommunication, and any technology related equipment. Charge -backs to the programs are based
on the equipment assigned, the cost and lifespan of the equipment, and maintenance costs.
Page 10 of 14
INTERFUND.TRANSRERS=A,'ND BORROWING PORKIES
Interfund Transfers typically reflect the transfer of funds from the General Fund for capital
improvements, or from a Special Revenue or Internal Service Fund for an infrastructure improvement
that is specific to that fund's purpose, such as a capital improvement in a Landscape Lighting
District. Transfers to the General Fund are reimbursements for specific expenses, such as from the
CDBG Special Revenue Fund for human service grants distributed from the General Fund.
Transfers between funds are made in accordance with the adopted budget, or by Council approved
budget adjustments.
Any transfers between funds where reimbursement is not expected within one fiscal year shall be
recorded as an interfund borrowing. Interfund borrowing is typically undertaken for cash flow
purposes, and requires Council approval.
USER FEE COST`RECO '_IERY POLIO S
Fees collected for services provided will be reviewed and updated on an ongoing annual basis to
ensure that fees reflect actual costs, in coordination with the Council's direction on cost recovery
policies.
The Recreation and Facility Department's General Fund programs consist of Recreation Services,
Teen Services, and Facility Rentals. These programs are under a Council directive to achieve 65%
Cost Recovery in light of the understanding there is a significant amount of community benefit derived
from these programs which do not provide full cost recovery, such as CPR and CERT classes, facility
usage for community meetings, and the sense of community that a recreation program builds in a city.
The Community Development Department General Fund programs consist of Development Review,
Advanced Planning, Code Compliance, and Building Inspection Services. These programs have an
undefined Cost Recovery Policy at this time due to substantive changes in the department's fee
structure, the unsettled economy, and the community benefit services provided outside of the
individual fee based services. This policy to be updated at a later date.
UNALANCE BUDGET POLICIES addahons t' current, olzccesf
F
1. P. I
The City will maintain a minimum fund balance reserve of at least 20% of operating expenditures in
the General Fund for working capital cash balance. This minimum level is necessary to adequately
provide for cash flow requirements and maintain the City's credit worthiness.
Actual revenue excess over expenditures in the Community Development Depat tment's General Fund
programs are to be allocated into the Development Reserve. For years of budgeted shortfall, up to one
third of the Development Reserve may be utilized to offset revenue shortfalls
,,CAPITA I3MPROYEMENT FLAN`/BUDGET PO ICIES'
Page 11 of 14
General Policies
The Capital Improvement Plan (CIP) is an ongoing process through which the City identifies,
prioritizes, and develops a multi -year plan for major capital expenditures and their associated funding
sources, to improve and maintain the City's roadways, parks, facilities, and other infrastructure.
The Capital Budget represents the current year's funding approval of the City's five -year Capital
Improvement Plan.
CIP Projects are the individually Council approved body of work within the CIP /Capital Budget.
CIP Projects are defined as having a multi -year life, typically exceeding $25,000 in cost, and resulting
in assets or infrastructure improvements or efficiencies.
CIP Structure
As the City is comprised of diverse infrastructure, the CIP is structured under four separate program
areas: Streets Program, Parks Trail Program, Facility Improvement Program, and Administrative
Improvement Program. Each program area has further sub classifications of projects to allow for the
tracking of resources expended for specific types of work or by specific location.
The Streets Program includes projects which develop and maintain the City's roadway infrastructure.
Sub categories include:
Street Repair Resurfacing Projects
Roadway Safety Improvements
Landscape Beautification Improvements
Sidewalks, Curbs Storm Drains
Bridge Hillside Support Projects
The Parks Trail CIP Program includes projects which develop or improve neighborhood and city
parks and sport fields, bike and pedestrian trails, and open space areas throughout the city. Projects are
grouped into types of park or trails, and then sub classified by location to allow for the tracking of all
projects over time by specific site. Primary categories are:
General Citywide Park Improvements
City Parks
Neighborhood Parks
Sport Parks Facilities
Trails Open Space
The Facility Improvement Program provides for capital maintenance and improvements of the city's
buildings and structures. Projects in the Facility Program are classified by site to capture resource and
improvement information. There are further sub classifications within the site category by building.
The program categories are:
City -wide Facility Projects
Civic Center
North Campus
Village Historical Park
Library Building
The Administrative Improvement Program provides for major capital projects which improve or create
efficiencies for administrative systems, processes, or functions. At this point, the Administrative
Improvement Program is limited to three categories:
IT System Projects
Communication System Projects
IT Infrastructure Projects
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CIP Funds
Capital Improvement Funds are set up for each of the four CIP Programs to account for projects within
the program area.
The CIP Funds receive funding directly from designated sources, from General Fund transfers, and
transfers from other Funds
The CIP Street fund receives funding directly from DOT Prop 42 (TCR) subventions, Road Impact
Fees, CIP Project reimbursements, and from Transfers In.
The CIP Park Trail Fund receives funding directly from Park in Lieu fees, and from Transfers In.
The CIP Facilities Fund receives funding directly from Theater Ticket Surcharge (for theater
projects only), and from Transfers In.
The CIP Administrative Improvements Fund receives funding from Transfers In.
Grant Fund
Grants for capital projects are to be pursued to maximize the use of capital funding dollars.
Grant funded projects are approved in concept in the Capital Budget; however the project must be
approved by the grantee with an award letter prior to beginning the project to ensure cost recovery.
Grant funding comes from various sources, including federal, state, local, and private grants
Grant requirements are to be followed accurately to ensure reimbursement submittals are accepted.
Grant funded projects are to submit reimbursement requests on a quarterly or other regular basis to
ensure the City is receiving grant funds on a timely basis.
Transportation Development Act (TDA) Grant Revenues are to be allocated to alternative
transportation programs designed to reduce automobile usage.
Gas Tax Fund
Gas Tax subventions are restricted by the State for street related purposes and are subject to
compliance audits. CIP projects utilizing Gas Tax revenues will be restricted to street resurfacing and
street maintenance projects in compliance with the State's regulations.
Gas Tax Funds are to be accounted for in its own fund as required by the State.
Tree Fine Fund
Tree fines resulting from code violation assessments are paid into this fund for utilization in the City's
forestry enhancement or replacement projects.
Project expenditures include tree and shrubbery materials and installation costs, including the cost of
irrigation for project area.
CIP Funding and Appropriations
CIP allocations are approved on a project by project basis by Council, for use only for the authorized
project (even within funds), in accordance with project parameters approved by Council.
CIP allocations carryover to the following budget year, unless modifications are made to the project
budget.
Project funds remaining at the close of the project will be reallocated to another project by Council.
CIP project budget adjustments must be approved by Council.
Page 13 of 14
CIP Document (future)
The Capital Budget is to be presented as an annual update to the five -year Capital Improvement Plan in
a budget document each year, to include project parameters, financial and funding information,
timeline, fund summaries, and any other relevant information.
FISCAL IMPACTS:
To be determined
CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION:
N/A
ALTERNATIVE ACTION:
N/A
FOLLOW UP ACTION:
To be determined
ADVERTISING, NOTICING AND PUBLIC CONTACT:
N/A
ATTACHMENTS:
Attachment A Financial Policy Statements
Page 14 of 14
FINANCIAL POLICY STATEMENTS
The City of Saratoga manages its financial, operational, and budgetary affairs in accordance with the
following general policy statements. These policies represent long- standing accounting, budgeting, debt,
investment, and reserve principles and practices, and are the foundation which guides the City in
maintaining its financial stability.
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GENERA 7FINANCIAL POLICIES:
The: Council's financial based goals, objectives, and policies will be incorporated into and
implerriented with the City's Operating and Capital Budgets.
Efforts will be coordinated with other governmental agencies and joint power associations to achieve
common policy objectives, share the cost of providing governmental services, and support legislation
favorable to cities at the state and federal level.
The City will seek out, apply for, and effectively administer federal, state, local, and foundation
grants which address the City's current priorities and policy objectives.
AUDITING AND FINANCIAL REPORTING:
California State statute requires an annual financial audit of the City's financial records and
transactions by independent Certified Public Accountants. The city will comply with Generally
Accepted Accounting Principles (GAAP) and produce annual financial reports pursuant to
Governmental Accounting, Auditing, and Financial Reporting (GAAFR) guidelines.
Weekly check registers and monthly Investment Reports will be submitted for review and approval
at City Council meetings. A mid -year budget status report will be presented at the City Council
retreat.
APPROPRIATIONS AND BUDGETARY CONTROL:
The City Council will adopt an annual balanced operating budget and the first year of an integrated
five -year capital improvement plan budget, to be effective for the fiscal year running from July 1
through June 30` Operating and capital budgets are to align with the City's long -term financial
goals..
Each year the Finance Depai tment will provide an updated five year (or longer) financial forecast to
the City Council prior to Council's review of the proposed annual budgets to provide a long -range
fiscal perspective to the City's economic status.
Budgets are prepared on the same basis used for financial accounting and reporting: governmental
fund types (General, Special Revenue, and Debt Service) are budgeted according to the modified
accrual basis of accounting; proprietary funds (Internal Service Funds) and fiduciary funds are
budgeted under the accrual basis of accounting.
The City Council maintains budgetary control at the fund level; any changes in total fund
appropriations during the fiscal year must be submitted to the City Council for review and Council
majority approval. Operating Budget appropriations lapse at the end of each fiscal year unless
specifically re- appropriated by the City Council in the following fiscal year. Capital Budget
appropriations are structured as a multi -year workplan; therefore project expenditure balances are
carried forward to the following fiscal year as part of the annual budget adoption until funding is
exhausted or the project is completed.
The City Manager is authorized to implement the City's workplan as approved in the adopted
budget. Within a specific fund, the City Manager may transfer appropriations between categories,
depaitments, programs, and projects as needed to implement the adopted budget, provided no change
is made to the total appropriation amount provided for any one fund.
Recurring expenditures are to be funded with recurring revenues, or funds specifically designated for
operational use. One time expenditures may be funded with one -time revenues or fund balances.
Fund balance reserves will be used only for non recurring one -time and capital projects.
The CIP Streets/Pavement Management program has an established minimum annual funding goal
of $1,000,000, with Gas Tax Revenues and Road Impact Fees as designated funding sources. The
$300,000 of designated TEA proceeds previously transferred to the CIP Streets/Pavement
Management program was reverted back to the General Fund effective with the FY 2008/09 budget.
$100,000 of TEA General Fund property tax revenues are designated for CIP Facility Improvements.
The Recreation Depa' tment cost recovery rate is established at 65 in alignment with the average
cost recovery rate for other surveyed recreation depailnients.
REVENUE POLICIES:
The City will encourage a diversified and stable revenue system to offset short -run fluctuations in
any one revenue source.
Designated and legally restricted tax and revenue funding sources will be accounted for in the
appropriate funds. General taxes and revenues not allocated by law or some other contractual
agreement to other funds are accounted for in the General Fund. Capital project revenues are to be
directly accounted for in the appropriate capital project fund.
The City establishes user charges and fees at a level that recovers the direct and indirect activity
cost of providing a service or product. The City will consider market rates and charges levied by
other municipalities of similar size for like services in establishing rates, fees, and charges. For
services having partial cost recovery objectives, cost recovery ratios may vary according to policy
objectives. A master schedule of User Fees is reviewed and updated each year to adjust fees to the
established level.
The City will follow an aggressive policy of collecting local taxes and revenues due to the City
through persistent follow -up procedures, and external resources as necessary.
Unrestricted donations, gifts, and bequests to the City in excess of $5,000 must be brought to
Council for approval and acceptance. All restricted donations, gifts and bequests must be
submitted to the Council for approval prior to acceptance.
EXPENDITURE POLICIES:
All expenditures shall be in accordance with the City's purchasing policy, travel policy, credit card
policy, or any other applicable guidelines.
Expenditures are managed at the program level. Program managers are to ensure expenditures do
not exceed the budgeted workplan and must take immediate action if at any time during the fiscal
year an operating deficit is projected at year -end. Corrective actions may include expenditure
reductions, or with Council approval, budget adjustments, service reductions, or service fee
increases.
PURCHASING POLICY:
The City's current purchasing policy, with an effective date of 4/23/2007, establishes purchasing
authority levels, purchasing procedures, and requirements, for the procurement of supplies,
equipment, and services, in conformance with Federal and State codes and regulations, and City
Ordinance No. 2 -45.
Public Work projects which are governed by the State's Public Contract Code are excluded from
provisions of the City's purchasing policy.
Guidelines established by the City's Purchasing Policy directs the City's departments to purchase
the best value obtainable, securing the maximum benefit for funds expended, while giving all
qualified vendors an equal opportunity to do business with the City.
All purchases exceeding $5,000, up to $25,000 require written quotes and must be approved by the
Purchasing Officer or designee. All purchases exceeding $25,000 must be authorized by the City
Council.
FIXED ASSETS AND INFRASTRUCTURE:
All assets with a cost equal to or greater than $10,000 and a useful life of more than one year will be
capitalized. Repairs and maintenance of infrastructure assets will generally not be subject to
capitalization unless the repair extends the useful life of the asset.
The City will sustain a long -range fiscal perspective through the use of a five -year Capital
Improvement Plan designed to maintain the quality of City infrastructure, including streets,
sidewalks, curbs and storm drains, lighting, building, parks, and trees.
Asset information is to provide information for preparation of financial statements in accordance
with GAAP, with emphasis placed on completion of GASB 34 requirements.
INTERNAL SERVICE FUNDS:
Asset replacement and maintenance Internal Service Funds are to provide a consistent level of
funding for asset replacement and building maintenance projects, and ensure sufficient funding is
available for the regular maintenance and repair of the City's vehicles, equipment, and buildings.
Internal Services Funds are established to both allocate operating costs to departments for support
and maintenance services in the effort to distribute costs appropriately, and to stabilize the City's
replacement and operational costs for the purpose of providing an accurate and balanced long -range
fiscal perspective of the use of services and assets.
Technology and Office Equipment replacement and maintenance Internal Service Funds are to
provide a consistent level of funding for the replacement of technology assets and projects, and
appropriately distribute support and maintenance costs to depai tments.
The Liability and Workers Compensation Insurance Internal Service Funds are to maintain adequate
reserves to pay all valid self insured claims and insurance deductibles, including those incurred but
not reported, in order to keep the insurance funds actuarially sound.
Each Internal Service Fund will set recovery charges at rates sufficient to meet all operating
expenses, depreciation, and cash reserve policy objectives.
FUND BALANCE RESERVES:
Fund balance reserves in a governmental fund are classified as either Reserved or Unreserved Fund
Balances, depending on purpose. Reserved Fund Balances represent funding set aside for
established legal obligations and liabilities, and are not available for appropriation. Unreserved Fund
Balances are comprised of both designated and undesignated fund balances, and are not legally
obligated for a specific use.
Unreserved Designated Fund Balance Reserves represents funds identified by Council for an
intended use; however as there is no legal obligation, the funds may be re- designated and utilized for
another purpose if Council chooses. Unreserved Undesignated Fund Balance represents funds not
yet identified for a specific use by Council, and is available for designation or appropriation.
Adequate reserves are to be maintained for all known liabilities and established City Council and
community directed initiatives.
At year -end, after the City's financial records are finalized and audited, revenues in excess of
expenditures and funding obligations close out to Unreserved Undesignated Fund Balance. Council
established $500,000 as the base amount for Undesignated Fund Balance. Any accumulated
available funding in excess of $500,000 is to be held for appropriation to Capital Improvement and
Cost Efficiency projects in the following budget process.
Year —end undesignated fund balance distribution is to be prioritized as follows:
1. Funding of legal obligation and liability reserves
2. Repayment of borrowing from Fund Balance Reserve to established levels
3. Replenishment of Unreserved Undesignated Fund Balance to $500,000
4. Designation of remaining funds for Capital Improvement and Cost Efficiency Projects
Reserved Fund Balance reserves are to be maintained on an on -going basis for the following legal
obligations and liabilities:
1. Petty cash
Unreserved Designated Fund Balance reserves are to be maintained on an on -going basis for the
following Council established purposes:
1. Operations Reserve (Established on July 1, 1999 at $2,000,000 to provide working capital cash
flow for the General Fund. Interest earnings are applied at fiscal year -end at LAIF interest rate.)
2. Economic Uncertainty Reserve established and maintained at $1,500,000
3. Designated for Liability Claims
4. Development Services Fund Balance
5. Environmental Services Fund Balance
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TREASURY MANAGEMENT:
California Government Code Section 53600; City of Saratoga Municipal Code Section 2- 20.035;
and Section 16.0 of the City of Saratoga Investment Policy require the City Council to annually
review and approve the City's Investment Policy.
It is the policy of the City of Saratoga to invest public funds in a manner which will provide the
maximum security with the highest investment return, while meeting the daily cash flow demands
of the City and conforming to all state and local statutes governing the investment of funds.
The Finance Administrative Services Department shall prepare and present to the City Council in
sufficient detail to show the financial condition of the City at month end, the cash and investments
balance by fund, and fund balances by fund type.
LONG -TERM DEBT:
Long -term Financing Debt will be confined to capital improvements or special projects that cannot
be financed from current revenues, and is to be used only if the debt service requirements do not
negatively impact the City's ability to meet future operating, capital, and cash reserve policy
requirements.
The term for repayment of long -term financing will not exceed the expected useful life of the project.
RISK MANAGEMENT POLICY:
The City is self insured against each general liability, auto, and property insurance claim for the first
$25,000, and for each workers compensation claim for the first $250,000. The City carries insurance
for claims in excess of these amounts.
The City's role in managing its risk management program is to be preventative in nature which will
be accomplished through careful monitoring of losses, working closely with the third party
administrator, and designing and implementing programs to minimize risk and reduce losses.
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TEA FUNDING ALLOCATIONS
FY 2007/08 approx $786,000
$146,000 for an additional 1046 hours of Sheriff's General Law Enforcement Hours
$300,000 for Street maintenance
$100,000 for Facility Maintenance
30,000 for The Saratogan newsletter
25,000 for additional Street Sweeping services in the village
5,000 for spot color for medians
34,200 to convert Temporary PW Maintenance Worker to benefited position
98,000 for Admin Analyst
34,200 to convert Temporary IT Intern to benefited position
Total of 773,000
FY 2008/09 approx $815,000
$155,000 for an additional 1046 hours of Sheriff's General Law Enforcement Hours
40,000 for additional Sheriff's Office investigative and analyst hours
$100,000 for Facility Maintenance
30,000 for The Saratogan newsletter
25,000 for additional Street Sweeping services in the village
10,000 for spot color for medians
36,000 for Public Works Maintenance Worker
104,000 for Admin 'Analyst
(36,000) for IT Technician position frozenlbackfilled with Temporary IT Intern
Total of 464,000 plus $350,000 revenue over expenditures at year -end
*The Road Impact Fee replaced the $300, 000 General Fund allocation for Street Maintenance
FY 2009/10 approx $840,000
$162,000 for an additional 1046 hours General Law Enforcement Hours
15,000 for additional Sheriff's Office investigate hours
$100,000 for Facility Maintenance
30,000 for The Saratogan newsletter
25,000 for additional Street Sweeping services in the village
13,000 for spot color for medians
38,000 for Public Works Maintenance Worker
110,000 for Admin Analyst
(38,000) for IT Technician position frozen/backfilled with Temporary IT Intern
Total of 455,000, remainder of TEA funds allocated to General Fund
*The Road Impact Fee replaced the $300, 000 General Fund allocation for Street Maintenance
TOTAL
Public Safety Costs 2006/07 2007/08 2008/09 2009/10 COLA Increases
Law Enforcement Contract 3,330,042 3,693,515 3,902,766 4,134,884
Increase from Prior Year 90,504 363,473 209,251 232,118
Increase 2.8% 10.9% 5.7% 5.9%
Less Increased Services
Genl Law Hour Increase 146,000 9,000 16,000
Investigative Hours 40,000 15,000
Service Cost Increases 90,504 217,473 160,251 201,118 578,842
Salaries Benefits
FY 2007/08 FY 2008/09 FY 2009/10
Actuals Estimated Adopted
6,788,872 7,125,280 7,303,336
Net Increase from PY 336,408 178,056