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LTC 45-2002 , J ~ CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach.f1.us L.T.C. No. 15. 2tJEJ 2 ~ LETTER TO COMMISSION February 20, 2002 TO: Mayor David Dermer and Members of the City Commission FROM: Jorge M. Gonza1ezJ _ ~ City Manager ~ M..~ W SUBJECT: "Year Three" Performance Based Energy Management Contract Savings Report In 1997, Property Management developed the first Citywide energy conservation performance based contract in the State of Florida. This contract with Johnson Controls Inc. was approved by Commission on January 21, 1998. The contract provided for the retrofitting or replacement of existing building equipment such as lighting systems, HV AC systems, and energy management systems, in 26 separate City facilities to provide for energy savings. The performance-based contract has provided for the installation of approximately $2,500,000 in new and upgraded energy efficient equipment that is guaranteed to be 100% funded by the energy savings realized by the contract. This contract also allowed the project to be completed without the need or requirement of any capital expenditure outlays by the City. During the eight-month construction process completed both by Johnson Controls staff and the City's Property Management staff, the City received over $91,000.00 in energy efficient rebates from Florida Power and Light. The City also realized an additional $67,766.00 in direct energy savings during the construction period alone. In October 1998, with the installation of over 150 energy efficient measures, including the retrofitting of over 8000 light fixtures Citywide, the installations were completed. Specific energy performance tracking of all ofthe facilities included in the contract was commenced in November 1998, to provide for a check and balance review of the energy consumption comparisons with pre-contract histories of each building's energy use. At the end of October 2001, the third annual reconciliation report was prepared in order to determine the overall performance ofthe contract. To date, the total energy savings, realized by the City for the first three years of the performance based contract, on the buildings included in the contract, is $1,174,652.00. This savings is well above the projected $942,849.00 of guaranteed energy savings that is outlined and required in the base contract. With the $231,803.00 difference from the guaranteed savings and the $67,766.00 savings during the construction process, the total savings "ABOVE" the required guaranteed savings amount in the contract to date is $299,569.00. Some of the specific buildings that were precisely measured by direct energy bill comparisons over previous years included the following savings in the past 12 months: ~ City Hall Police Department Scott Rakow Youth Center South Shore Community Center $ 70,374.00 $ 83,570.00 $ 53,229.00 $ 17,283.00 Although buildings such as the Convention Center and TOP A cannot be measured by direct utility bill comparisons due to the changing schedules and bookings, an energy analysis was performed using the operation time and equipment run-time, for the energy comparisons of both facilities. The results of these comparisons revealed a past year's savings of$ 59,133.00 at the Convention Center and an additional savings of$ 6,123.00 for TaPA. In addition to these savings, the buildings included in the energy efficient upgrades are now eligible for full recognition and acceptance into the "Energy Star" program under the United States Government's Environmental Protection Agency for noteworthy energy conservation practices. With the completion of the roof work at the City Hall Building, Property Management has processed an application for the acceptance of an Energy Star rating for the facility. The environmental benefits realized by these energy savings has the equivalent in pollution reductions of removing 14,857,241 pounds of Carbon Dioxide, 201,453 pounds of Sulfur Dioxide, and 88,139 pounds of Nitrogen Oxides from our air. These energy savings also has the environmental equivalents of removing 1,484 cars from our roads and planting 2,037 acres of trees. I have attached an energy savings breakdown of each facility and copies of electrical comparisons of four of our largest buildings that show the electrical costs and realized savings for each individual facility, for your review. If you have any questions concerning the report, please do not hesitate to call me or Robert Middaugh, Assistant City Manager. JMGIRCJa~A1 C:\My FlleslLTC\energyyear3.wpd J . City of Miami Beach Savings Summary Year Three 2000/2001 Measured Stipulated Location SaviDRS SaviDRS Total City Hall $70.374 Police Station $83.570 Scott Rakow Center $53.229 South Shore Center $17.283 Convention Center $59.133 [Topa $6.123 21 St Comm Ctr $3,193 Fire Station $9,281 Aamingo Park $2,305 Public works $6.064 Aeet Management $3.660 Bass Schools $2.025 N.S Ctr. $373 Colony Theatre $742 Log Cabin $683 Historic C. H. $5.526 Abel Holtz $6.933 12 SI. Gar $3,452 CVA $1,535 Total Savings lor Year Three (Throullh Month 12) 1335,485 $87,049 $422.534 Measured Stipulated Total Total Exeess Savina Savina Savina GUlll'llnty Savina Construction Period Savina $67.766.00 $0.00 $67,766.00 $49.460.00 $18,306.00 Year One Savina $241.020.39 $78,956.00 $319.976.39 $287,457.00 $32,519.39 Year Two Savlnas $281,472.77 $82.904.00 $364.376.77 $297.668.00 $66.708.77 Year Three Savings $335,484.62 $87.049.00 $422.533.62 $308.264.00 $114.269.62 Totals $925,743.77 $248,909.00 $1,174,652.77 $942,849.00 $231,803.77 City of Miami Beach I Johnson Controls Performance Contract ~ -t ~ r I f ! ~ f f I c I I (I) i . 2. ff Ul t no no I .. III J i Ul f I :'! < ~ III C'I m . ~ fD < i ::r ,.. ..., .. i ~ i J fD ~ I m 8 .- - .. - I i ... a I!!. I!!. r n :7 9 :J: == .- .. ~ ... N . .- ... it i2 , w CD t , UI al 'CD ... en - (II g N 0 0 CD en to) .... I ... ... ... ... .- .. ! .... ~ (II .- 2 it 01 r .. 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(", -- -- ., - ~ ~ ~ -:.. g . i ... 81 Clll 0 en i N ~ ~ N ... 0 ~ it 5~ .. g ... ... i N - t . lD c.> .... . ~ ::;! - ~ . ::;! 0 - .. = ~i .. .... 01 if -- CD ..... m 81 ..... S 3l CD N - 01 .... ~ N 0 .. .. 51 tit tj Clll ~t - ... N N tl N "0 ~ ~ w .... 0 ... ~ . c.> 0 0 .. .. tit - en .... CD N N ~ .Sl CIl ~ - ~R 0 N 01 ... N ... N 01.. co 0 Clll 0 Clll !: .. .. ~ ell . ... i ...... ... CoO ~i ..... ~ tj ;:1 en ~ .... N W ~ Clll (0) 0 CoO _ c.> .... ... - c.> II> .... .... f .. ... :r i en ~ - ~ fa . . .' 0211312002 Total Environmental Benefit to Date Pollution Prevention: Carbon Dioxide (Ibs): 14,857,241 Sulfer Dioxide (Ibs): 201,453 Nitrogen Oxides (Ibs): 88,139 Environmental Equivalents: Cars nmovecl from the mad: 1,484 Aaes of Trees Planted: 2,037 City of Miami BeachlJohnson Controls Performance Contract .Jll