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Agenda 06/26/2012 Item #16E 76/26/2012 Item 16.E.7. EXECUTIVE SUMMARY Recommendation to accept and recognize a rebate received from Florida Power and Light (FP &L) in the amount of $256,320 for the Chiller Replacement /Ice Storage Expansion project completed with grant funds from the United States Department of Energy (DOE) and authorize the necessary budget amendment. OBJECTIVE: To accept and recognize a rebate provided by FP &L in the amount of $256,320 to replace malfunctioning thermal storage tanks in the Main Chiller plant as allowed within the terms of the EECBG grant. CONSIDERATIONS: On February 17, 2009, Congress passed the American Recovery and Reinvestment Act (ARRA) and on March 26, 2009 the United States Department of Energy (DOE) designated $3,036,000 for the Energy Efficiency and Conservation Block Grant (EECBG) to Collier County. The EECBG was accepted by the Board of County Commissioners on September 29, 2009. The Facilities Department Energy Efficiency Retrofits Project was funded in the amount of $665,510 to carry out several activities to provide internal cost/energy savings benefits to Collier County. One of the activities replaced the oldest, least efficient chiller with a new high- efficiency model and added automated flow measuring and control equipment to the chilled water system to increase thermal ice storage capacity. This activity qualified for a FP &L incentive in the form of a rebate. On May 15, 2012, an FP &L rebate was received in the amount of $256,320. Pursuant DOE guidance, funds received from rebates must be added back to the recipient's EECBG grant and are subject to the same limitations as the original grant money. The Facilities Department will use these funds to replace malfunctioning thermal storage tanks in the Main Chiller plant which is within the boundaries of the EECBG grant terms and conditions. FICAL IMPACT: The chiller improvements have resulted in electric bill savings of $80,760 per year. A budget amendment is required to recognize revenue in the amount of $256,320 within ARRA Grant Match Fund (726), Project 33062. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney's Office, does not present a legal issue and only requires a majority vote for Board approval —SRT. RECOMMENDATION: That the Board of County Commissioners accept and recognize the FP &L rebate in the amount of $256,320 and authorize the necessary budget amendment. PREPARED BY: Joshua Thomas, MPA, Assistant Grant Coordinator, Grant Compliance Office, Office of Management and Budget. Attachments: Efficiency Retrofits Project Application Activity Sheet Check Copy Packet Page -1661- COLLIER COUNTY Board of County Commissioners Item Number: 16.E.7. 6/26/2012 Item 16.E.7. Item Summary: Recommendation to accept and recognize a rebate received from Florida Power and Light (FP &L) in the amount of $256,320 for the Chiller Replacement /Ice Storage Expansion project completed with grant funds from the United States Department of Energy (DOE) and authroize the necessary budget amendment. Meeting Date: 6/26/2012 Prepared By Name: LinguidiDennis Title: Manager - Facilities,Facilities Management 6/11/2012 4:18:34 PM Submitted by Title: Manager - Facilities,Facilities Management Name: LinguidiDennis 6/11/2012 4:18:36 PM Approved By Name: pochopinpat Title: Administrative Assistant,Facilities Management Date: 6/11/2012 4:42:04 PM Name: CampSkip Title: Director - Facilities Management,Facilities Manage Date: 6/11/2012 4:42:12 PM Name: TeachScott Title: Deputy County Attorney,County Attorney Date: 6/13/2012 9:19:29 AM Name: PriceLen Title: Administrator, Administrative Services Date: 6/14/2012 12:25:32 AM Packet Page -1662- Name: StanleyTherese Title: Management/Budget Analyst, Senior,Ofce of Management & Budget Date: 6/14/2012 11:02:00 AM Name: TeachScott Title: Deputy County Attorney,County Attorney Date: 6/14/2012 12:08:26 PM Name: KlatzkowJeff Title: County Attorney Date: 6/14/2012 3:31:23 PM Name: StanleyTherese Title: Management/Budget Analyst, Senior,Office of Management & Budget Date: 6/15/2012 4:46:01 PM Name: OchsLeo Title: County Manager Date: 6/17/2012 9:39:50 AM Packet Page -1663- 6/26/2012 Item 16.E.7. Grantee: Collier County DUNS #: 076997790 Program Contact First Name: Marlene EECBG Activity Worksheet 6/26/2012 Item 16.E.7. Date: 6/24/2009 Program Contact Email: marlenefoord @colliergov.net Last Name: Foord 'roject Title: Facilities Management Energy Efficiency Retrofits Activity: 5. Energy Efficiency Retrofits If Other: Sector: Public If Other: Proposed Number of Jobs Created: 4 Proposed Number of Jobs Retained: Proposed Energy Saved and /or Renewable Energy Generated: 1, 098, 784 kWh per year Proposed GHG Emissions Reduced (CO2 Equivalents): 657 Proposed Funds Leveraged: 70000 Proposed EECBG Budget: 689898 Projected Costs Within Budget: Administration: 24388 Revolving Loans: Subgrants: Project Contact First Name: Skip Last Name: Camp Email: skipcamp@colliergcv.net Metric Activity: Building Retrofits If Other: Project Summary: (limit summary to space provided) Collier County will utilize its EECBG formula funding to fund a mixture of lighting and electrical improvements, mechanical improvements, renewable energy and planning initiatives. Project Activity 1: Facilities Management Energy Efficiency Retrofits. This activity involves six electrical and mechanical projects on the main government campus, which is a 45 acre complex in the heart of Collier County. The campus includes the County courthouse, administration buildings, the health department, the jail and a host of constitutional offices, all of which draw significant power to operate. Improving the energy efficiency of the building systems will also reduce the operating funds needed to operate these facilities. Collier County uses the thermal energy of ice created at night during off -peak hours to cool the buildings during daytime peak usage periods. This shifts the electrical load to off -peak hours, while voiding higher price energy and demand charges imposed by utilities. An estimated $46,000 Florida ower and Light rebate is received as an incentive for this project. The project proposed for EECBG funding is to add 6 additional units to further enhance the already efficient system in place. The energy savings for this project is estimated at 132,298 kWh per year, the expected CO2 reduction is 79 metric tons and the annual dollar savings is expected to be $11,113. Related to this project is the replacement of a 22 year old chiller with a newer more efficient unit. This will decrease the energy usage and maintenance while increasing capacity to meet Collier County's growing demand. An estimated $12,000 Florida Power and Light rebate is received as an incentive for this project. The energy savings for this project is estimated at 280,000 kWh per year, the expected CO2 reduction is 167 metric tons and the annual dollar savings is expected to be $24,000. The three lighting and electrical projects include retrofitting 70 Code Blue Emergency Lamps from low efficiency to high efficiency units, installing 1,000 occupancy sensors around campus and installation of a central computer management software system to continuously monitor an office space to determine if it is occupied. A non - occupied station will automatically be placed into a hibernation state effectively reducing energy usage. The energy savings for these projects is estimated at 680,092 kWh per year, the expected CO2 reduction is 407 metric tons and the annual dollar savings is expected to be $57,127. The last of the Facilities Management retrofit projects involves installation of solar panels on 17 existing utility carts that are used regularly on campus to maintain campus facilities. This project will reduce electricity costs while extending the useful life of the batteries already installed on the carts by 300. The added benefit of this project is the visibility to the public who visit the government complex. The energy savings for this project is estimated at 6,404 kWh per year, the expected CO2 reduction is 4 metric tons, and the annual dollar savings is expected to be $538. The total estimated cost for these projects is $665,510 and Florida Power and Light rebates in the amount of $58,000 will be received as an incentive, demonstrating the commitment of the local utility provider to the reduction of energy use and greenhouse gas. This rebate will cover project administration costs associated with contractual services for these 6 projects only and is not included in the project estimates. Furthermore, county staff will provide the labor for installation the occupancy sensors at -a leverage value of approximately $12,000. Total energy savings are 1,098,784 kWh per year and 657 metric tons of CO2. The total project cost is $665,510. Approximately $24,388 of the "administrative costs" associated with grant administration are being allocated to this project for a total EECBG request for this project of $689,898. If you are proposing more than one activity, save this file as man - essive page numbers. For example: "OH- CITY- Columbus- Project Activity page 1.pdf," "OH -CITY- Columbus- Project Activity Packet Page -1664- as needed. 6/26/2012 Item 16.E.7. FPL. May 14, 2012 Mr. Skip Camp Collier County Department of Facilities Management 3301 Tamiami Trail East Naples, Florida 34112 Dear Skip, Congratulations on the successful completion of the Building 'W' Chiller Replacement /Ice Storage Expansion Project I am pleased to advise you that all customer eligibility and equipment requirements of FPL's Business Heating Ventilation and Air - Conditioning (Bus HVAC) Program have been satisfied. Based upon the equipment replaced /installed, this project qualified for the enclosed incentive of $256,320. As you know, one of the many challenges of managing a campus facility is keeping energy costs as low as possible while maintaining a comfortable temperature for employees, patrons and equipment This project further illustrates the commitment of Collier County Department of Facilities Management to do just that ... Thermal Energy Storage allows you to lower your electric bill by storing energy at night - moving heavier electric usage to off -peak hours when power rates are less expensive. In addition, the shifting of peak electric load to off peak hours reduces the current and future growth of coincident peak demand on FPL's system — helping us to avoid building additional power plants — and helping you to recognize additional savings. A 12 month comparison of billing data for this account shows; • Average on -peak demand reduction of 19% (304 kW) • Average total kwh consumption reduction of 3.72% (443,360 kwh) • Total electric bill savings of 9.71 % which equates to $80,760 savings per year The collaboration of your team led by Project Manager John Clements, along with the technical expertise of Hernantha Ranatunge, and support of Paul Martin, Leon Hinkle and Tom Lepore, working closely with FPL's HVAC Specialist, Richard Brooks, helped to maximize the energy savings and Business HVAC Program incentive. On behalf of FPL, thank you and the project team, not only for your participation, but also for your forward - thinking approach to energy efficiency. Projects such as this have long - lasting positive impacts on our region environmentally and on the County financially. Looking forward to working with you to address your energy needs and support you in your efforts to ensure the ongoing success of your operations. Sincerely, Kate Donofrio Governmental Account Manager Enclosure Cc Mr. Leo Ochs, Jr., Mr. John Clements, Mr. Hemantha Ranatunge, Mt. Kelly Campbell Florida Power 8 Light Company 700 Universe Boulevard, Juno Beach, FL 33408 Packet Page -1665- WARNING: Original document has a reflect ?••^ ••• °• °•^• °•` ^^ n �+ reverse side. Hold at an angle to view. 6/26/2012 Item 16.E.7. FLORIDA POWER & LIGHT COMPANY 700 Universe Boulevard Check Date: 05101/2012 Check No. 5000082044 Juno Beach, FL 33408 BANK OF AMERICA, NA TWO HUNDRED FIFTY -SIX THOUSAND THREE HUNDRED �r��;t.;.,.,, ;,,.•,,,_,.,,,;,,, TWENTY DOLLARS Void after 180 days PAY TO THE COLLIER COUNTY FLORIDA POWER & LIGHT CO ORDER OF BOARD OF COUNTY COMMISSIONERS 3301 TAMIAMI TRAIL EAST - NAPLES FL 34112 - _ FLORIDA POWER & LIGHT CO Check Date 05/01/2012 Vendor Name: COLLIER COUNTY Check Number: 5000082044 TES 32604 1 03/01/2012 I *TES- COLLIER CTY SOCC TES - COLLIER CTY BOCC- COURTHOUSE Check Total ............................. '7 2—J- Packet Page -1666- 256,320.00 I 0.00 I 256,320.00 8 -34064 $256,320.00