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063-2001 LTC " a. CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139' h\tp:\"'i.miam~beach.fl.u. - L.T.C. No. &,3 - c5?C/Jrj) / LETTER TO COMMISSION March 29, 2001 TO: Mayor Neisen O. Kasdin and Members of the City Commission SUBJECT: Jorge M. Gonzalez ~ . /' City Manager 0 ~ (J "Year Two" Perfonnance Based Energy Management Contract Savings Report FROM: 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 contract also provided for the installation of approximately $2,000,000 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 that required both Johnson Controls staff and the City's Property Management staff to complete, 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 of the 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 2000, the second annual reconciliation report was prepared in order to detennine the overall performance of the contract. To date, the total energy savings, realized by the City for the first two years of the performance based contract, on the buildings included in the contract, is $684,352.00. This savings is well above the projected $585,125.00 of guaranteed energy savings that is outlined and required in the base contract. With the $99,227.00 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 $166,994.00. 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 $ 69,174.00 $ 63,277.00 $ 32,425.00 $ 10,688.00 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-time, for the energy comparisons of both facilities. The results of these comparisons revealed a past year's savings of$ 52,615.00 at the Convention Center and an additional savings of$ 5,942.00 for TOPA. 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. Applications for acceptance are currently being processed by Property Management. I have attached an energy savings breakdown of each facility and copies of electrical comparisons of four of our largest buildings that show a month to month comparison of electrical costs and realized savings for each individual facility, for your review and comments. If you have any questions concerning the report, please do not hesitate to call me or Brad A. Judd, Property Manageml"nt Director, at x7630. I1n~C JMGtMlJs/BAl cc: Matthew Schwartz Brad A. Judd Assistant City Manager Director, Property Management C:IA(yFilu1LTC\m~ar2.wpd 03/26/2001 Total Environmental Benefit to Date Pollution Prevention: Carbon Dioxide (Ibs): 9,473,056 Sulfur Dioxide (Ibs): 128,447 Nitrogen Oxides (Ibs): 56,198 Environmental Equivalents: Cars removed from the road: 946 Acres of Trees Planted: 1,298 City of Miami Beach/Johnson Controls Performance Contract City of Miami Beacb Savings Summary Year Two 1999/2000 Location City Hall Police Station Scott Rakow Center South shore Center Convention Center Tapa 21St COmm ctr Fire Station Flamingo Park Pllbllc worka Fleet Management Bass Schools N.5 ctr. Colony Theatre log Cabin HistoricC.H. Abel Holtz 125l.Gar CVA Total Savings for Year Two (Through Month 12) Measured Savings $69,174 $63,277 $32.425 $10,688 $55,615 $5,942 $3,285 $8,928 $2,125 $5,916 $3,553 $1,934 $358 $719 $647 $5,344 $6.731 $3,352 ~ $281,473 Stipulated Savings Total $82,904 $384,377 Measured Stipulated Total Total Excess TotalExc:eu Savings Savings Savings Guaranty Savings Savings Construction Period Savings $67,766.0 0 $87,766.0 $0 $67,766.0 $67,766.0 Year One Savings $241,020.4 $78,95S $319,976.4 $287,457 $32,519.4 $100,285.4 Year Two Savings $281,472.8 $82,904 $364,376.8 $297,66ll $66,708.8 $166,994.2 :to 6="IW0;: " f en en c: !!: ... en ~ -::;;. .. II - ::;;.Q2,!P.li ~VlfDij!":" ::I: 1t::J ~ CD <: en :I> !!:. !!:. ;e " .. ~ ~~j..a-~'~ l>> 00 m I 11l !l .. ~ ~ < !l.... ,... ~ 3: CD 0iilrf~ "iilrli\'::m &" ::l - r :B ::::- 0_" if 0 3 iii' !!.s=- !!. = 21 - .. i 0 tII ::! CD III 0 ':3 0 ~ ::J: III 00 0~"" ~UI~""""'.Jl.UtZ ... ,,~ . " '" ~gfD~81~ ~ ail': <D'" '" 0 ~~I~w 9':.....~Ut~ ~g:w~~ ... 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