ESG Performance Contract Presentation to SAC 080211

City of West Palm BeachSustainability Action Committee

EECBG & Performance Contract Project Review

Tuesday, August 2, 2011

Meeting Objectives

Introductions

Review Project Objectives

Overview of Findings & Recommendations

Open Discussion on Project Scope

Energy Systems Group

ESG is an Nationally Accredited Energy Services CompanyFounded in 1994Licensed in 35 States & US Virgin IslandsOver 230 Energy Services ProfessionalsSubsidiary of Vectren Corporation Over $1.2 Billion in completed projectsOver 300 Customers

ESG Clearwater Office

Project Objectives

City Wide EECBG and Guaranteed Energy Savings Performance Contracts

Reduce Utility Consumption & Expense Across City

Support Achievement City’s Sustainability Plan Goals

Fund Needed Work to Alleviate Strained Capital Budgets

Implement Leading Technologies Such As LED Street Lighting

What is Performance Contracting?

Energy Efficiency and Capital Improvement Projects that are Funded Entirely Through Resulting Energy and Operational Savings Which is Guaranteed by the Energy Services Contractor

Enabled by F.S. 489.145

Bundled Package of Energy Conservation Measures (ECMs) that Provides an Overall Self-Funding Program

Savings Must be Guaranteed by the ESCO

Total Project Must Fully Fund in a Term of 20 Years or Less

Project Cash Flow Must be Positive Each Year of the Term

100% Self Funded Projects

Guaranteed savings allows for funds that

would have been spent on utilities to pay for

project costs and other operational needs

Performance Guarantee &Measurement & Verification

Annual Savings Verification Report Each Year of Term

M&V Procedures Follow the International Performance Measurement & Verification Protocol (IPMVP)

Exact Methodology Determined by Project Scope, Acceptable Accuracy, and Cost Effectiveness

WPB Project Relies on Retrofit Isolation Measures Where Pre & Post Measurements Will Be Taken For Each Individual ECM

Audit Process

Phase 1Preliminary Analysis

Phase 2 Detailed Analysis

Phase 3 Final Development

1. Client Interviews 1. Detailed Modeling 1. ECM Design

2. Site Surveys 2. Cost Estimates 2. Project Financials

3. Potential ECM’s 3. Finalize ECM’s 3. Implementation Plan

4. Client Review 4. Client Review 4. Client Review

Scope of Audit

City Center

City Center Garage

Fire Station #1

Fire Station #2

Fire Station #3

Fire Station #4

Fire Station #5

Fire Station #6

Fire Station #7

Fire Station #8

City of West Palm Beach Police Stations and Garages

Evernia Street Garage

Clematis Street Garage

Water Treatment Plant

South Olive Park

Gaines Park

Vedado Park

Pleasant City

Coleman Park

Howard Park

Youth Empowerment Center

Vickers House North

Grassy Waters Preserve

Wilderness Pavilion

Everglades Pavilion

City of West Palm Beach Compound Complex

ECM Recommendation Criteria

Total Energy & Environmental Impact

Simple Payback & Savings to Investment Ratio (SIR)

Overall Prioritization of the Measure

Ability to Be Supported in a 15 Year Term Cash Flow

Recurring Savings From Grant Selected Projects To Fund Future Sustainable Initiatives

Street & Park Lighting Measures

General ScopeReplace / Retrofit Existing Street & Exterior Park Lighting with LED & Induction Fixtures

BenefitsBetter Color RenditionImproved EfficiencyIncreased Product LifeCommonality of Stock

$ Savings kWh Savings lbs of CO2 $427,363 2,380,291 5,712,699

General Lighting Measures

General ScopeRetrofitting Existing Lighting Systems with High Efficiency Fluorescent & LED Systems

BenefitsImproved EfficiencyImproved Lighting QualityIncreased Product LifeCommonality of Stock

$ Saving kWh Savings lbs of CO2 $97,096 982,364 2,357,674

Garage Lighting Measures

General ScopeNew Fluorescent Lighting Layouts & Controls at Police Station & Evernia St. GaragesRetrofits Utilizing Fluorescent Lighting at City Center Garage

BenefitsImproved Lighting Levels & Color RenditionImproved EfficiencyOptimization of Lighting System Performance

$ Savings kWh Savings lbs of CO2 $87,907 636,661 1,527,987

Water Conservation Measures

General ScopeLow-Flow Toilets & Automated Flush ValvesNew faucets, Aerators, & Low-Flow Shower Heads

BenefitsImproved EfficiencyImproved Sanitation

$ Savings kWh Kgal Therms CO2$3,240 4,181 492 221 10,034

Small HVAC Measures

General ScopeProgrammable Thermostats & Commissioning of Existing DX Systems

BenefitsReplace End of Life EquipmentImprove EfficiencyOptimize Building Performance

$ Savings kWh Savings lbs of CO2 $8,180 111,826 270,784

Lift Station Measures

General ScopeInstallation of New Variable Frequency Drives & Controls & Solar Ventilation Fans

BenefitsImproved Efficiency

$ Savings kWh Savings lbs of CO2 $70,560 740,217 1,776,521

Police Department Chiller Measure

General ScopeReplacement of Existing Chiller & Modification of Controls Settings

BenefitsReplace End of Life EquipmentImproved EfficiencyOptimized Building Performance

$ Savings kWh Savings lbs of CO2 $14,047 210,494 505,186

PC Project Financials

PC ProjectProject Cost $ 7,855,965Simple Payback 12.19 yrsSIR 1.05Projected Term Savings $ 12,229,971Guaranteed Term Savings $ 11,749,591

Grant ProjectProject Cost $ 599,998Simple Payback 9.4 yrsAnnual Savings $ 63,931

Total Impact on Sustainability

Environmental Impactlbs. of CO2 Removed = 12,160,883

Grams of NOX Removed = 20,268,138 Grams of SO2 Removed = 50,670,345

Acres of Tree Planted = 1,469Cars Removed = 709

Annual Impact•5,067,035 kWh Saved

•492 Gal Saved

•8.8% Reduction in Electric

•$64k Grant Project Savings

Actual KWH/YrProposedKWH/Yr

49,562,425

44,276,834

Annual City Electric Consumption

KW

H/Y

r

Thank Youwww.energysystemsgroup.com

Clematis Street Fountain Measure

General ScopeReplace Exiting Pumps & DrivesFill in SumpsFlush Mounted Multi-colored LED lighting system w/ controls

BenefitsReduced maintenanceInternet Capable ControlsImproved AsceticsAddress Current Codes