LTC 061-2006 "Year Seven" Energy Conservation Performance Based Contract ResultsMIAMI BEACH
OFFICE OF THE CITY MANAGER
NO. LTC # 061-2006 LETTER TO COMMISSION
TO: Mayor David Dermer and Members of the City Commission
FROM: Oorge M. Gonzalez, City Manager ~~
DATE: March 8, 2006
SUBJECT: "YEAR SEVEN" ENERGY CONSERVATION PERFORMANCE BASED CONTRACT
RESULTS.
In 1997, the City's Property Management Department developed the first citywide energy
conservation performance based contract in the State of Florida. The City Commission approved the
partnership contract with Johnson Controls Inc., on January 21, 1998. The contract provided for the
retrofitting or replacement of existing building equipment such as lighting systems, HVAC systems,
and energy management systems in 26 separate City facilities, to provide for energy savings. The
performance-based contracts has provided for the installation of approximately $2,500,000 in new
and upgraded energy efficient equipment that was 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. The performance contract also
won the 2001, "Energy Project of the Year" from the Association of Energy Engineers.
At the end of October 2005, the seventh annual reconciliation report was prepared in order to
determine the overall performance of the contract. The total energy savings realized in the seventh
year alone of the performance-based contract is $492,197.72. To date, the total energy savings,
realized by the City for the first seven years of the contract,.in all of the buildings included in the
contract, is $3,148,332.92. These savings are well above the projections of guaranteed energy
savings that is outlined and required in the base contract. This has provided the City with a positive
variance to date, of $498,447.92 above the guaranty of the contract.
Some of the specific buildings that were precisely measured by direct energy consumption
comparisons over previous years included the following savings in the past 12 months:
City Hall $ 73,770.00
Police Department Building $ 82,876.00
Scott Rakow Youth Center $ 50,175.00
South Shore Community Center $ 24,851.00
Although buildings such as the Convention Center and TOPA 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-times, for the energy comparisons of both facilities. The results
of these comparisons revealed a past year's savings of $65,231.00 at the Convention Center and an
additional savings of $6,755.00 for TOPA.
The environmental benefits realized by these energy savings has the equivalent in pollution
reductions of removing 38,177,209 pounds of Carbon Dioxide, 517,653 pounds of Sulfur Dioxide, and
226,482 pounds of Nitrogen Oxides from our air. These energy savings also has the environmental
equivalents of removing 3,813 cars from our roads and the planting of 5,233 acres of trees.
If you have any questions concerning the report, please do not hesitate to call me or Bra
Property rv~agement Director, at x7630.
JM baj
cc: / Robed C. Middaugh, Assistant City Manager '~':
Fred Beckmann, Public Works Director
Brad A. Judd, Property Management Director ~-~
~T':
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