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HomeMy WebLinkAbout101-Staff Report.pdfPage 1 of 2 SARATOGA CITY COUNCIL MEETING DATE: November 18, 2009 AGENDA ITEM: DEPARTMENT: Public Works CITY MANAGER: Dave Anderson PREPARED BY: John Cherbone DIRECTOR: John Cherbone Public Works Director Public Works Director SUBJECT: Energy Efficiency Projects – Funding Resolution RECOMMENDED ACTIONS: 1. Accept Report and provide direction to staff. 2. Approve Budget Resolution. REPORT SUMMARY: The City’s Capital Improvement Plan (CIP) includes various energy efficiency projects, most unfunded, such as replacing the City’s old HVAC units with energy efficient models and installing solar panels at City Hall Campus. The Mayor and Vice Mayor are proposing to move existing funds in the amount $250,000 from the Multi- Purpose Room Improvement Fund Project to fund the replacement of HVAC units at City Hall and Community Center and to fund solar energy improvements in the Corporation Yard. High Efficiency HVAC Units This project would replace the worse performing of the 29 Heating, Ventilation, and Air Conditioning (HVAC) systems at City Hall and the Community Center with high efficiency, Energy Star rated systems. There are seven (7) HVAC units at City Hall and Community Center that are reaching the end of there lifecycle. HVAC systems account for 30 to 50 percent of the annual electric bill and high efficiency systems can reduce energy consumption by 20% to 30% per unit per year. New models are also much friendly to the environment as they utilize non ozone depleting refrigerant. The cost to replace the seven (7) HVAC units is estimated at $125,000. Solar Improvements Two years ago the City Council approved and funded a CIP project to build a shelter structure for equipment and vehicles at the Corporation Yard which could also support solar panels. If constructed, the structure will have the capacity to house 80 kW of energy production. Approximately 15 kW can be purchased for $125,000 including connections, etc. If you add this to the 10 kW of solar power the City has through Akeena Solar, the amount of energy the project will generate will be approximately 25 kW. Page 2 of 2 The Corporation Yard has approximately 16 kW of demand, which will leave 9 kW of additional energy production from the system. This additional energy can be directed to the Community Center. The annual energy savings will be 100% for the Corporation Yard ($4,500) and approximately 15% for the Community Center ($2,700). FISCAL IMPACTS: Annual savings in electrical costs will be realized from this project and long term benefits to the City’s rolling stock will occur from the construction of the shelter structure. A Budget Resolution is attached which transfers $250,000 from the Multi-Purpose Room Improvement Fund Project to the High Efficiency HVAC System Project ($125,000) and the City Hall Solar Project ($125,000). CONSEQUENCES OF NOT FOLLOWING RECOMMENDED ACTION: The two projects would not be funded and the energy efficiency projects would not move forward. ALTERNATIVE ACTION: None in addition to the above. FOLLOW UP ACTION: Improvements will begin as soon as possible. ADVERTISING, NOTICING AND PUBLIC CONTACT: Nothing additional. ATTACHMENTS: Budget Resolution.