HomeMy WebLinkAboutIR 8818INFORMAL REPORT TO CITY COUNCIL MEMBERS
�pRTtA�
r
a
To the Mayor and Members of the City Council
me
January 23, 2007
Page 1 of 2
SUBJECT: ENERGY CONSERVATION PROJECT EFFECTIVENESS
The purpose of this Informal Report is to inform Council of progress with the City's Energy
Conservation initiatives developed in response to the State's goals (issued via Senate Bill 5) toward
improved air quality. To this end, Johnson Controls, Inc. was selected as the City's energy services
company to assist in the development and implementation of energy savings performance contracts
(ESPCs) for City facilities.
We expect that the first four ESPC phases and the Traffic Signal Lamp Conversion project will generate
nearly $2 million in annual utility cost avoidance. "Cost avoidance" is the savings that we accrue in
future utility bills. In other words, our annual utility bills will be almost $2 million less after we
complete these projects. With increasing utility costs, savings will likely be even more. The projects will
pay for themselves in about seven years.
The energy savings performance contracts continue to be developed as "cash - neutral" to the City.
Construction costs are financed such that accumulated utility savings are available to pay principal and
interest payments. Cost savings accrue to the City's General Fund utility accounts. Johnson Controls
guarantees ESPC project savings that are tracked and reported through measurement & verification
plans.
Following is a brief description of the current, major project efforts:
ESPC Phase 1
In September 2003, Council authorized the execution of the City's first energy savings performance
contract. The project included lighting, air- conditioning and plumbing improvements to City Hall, the
Public Safety Building, the West Annex, and to the Meacham Airport Terminal buildings. The project
was completed in September 2004. Since that time, we have realized a cost avoidance of $295,846 and
$304,546 for City FY's 2004/2005 and 2005/2006 respectively.
ESPC Phase 2
In February 2006, Council authorized the execution of "ESPC Phase 2" that includes air - conditioning
improvements to the Will Rogers Memorial Center, the Fort Worth Convention Center, and the Central
Library buildings. Currently under construction, Johnson Controls has guaranteed that ESPC Phase 2
will produce an annual cost avoidance of $342,855. Construction should be complete by February
2007.
ESPC Phase 3
In September 2006, Council authorized the execution of "ESPC Phase 3" that includes follow -on air -
conditioning and lighting improvements to Public Events and Library buildings. Currently in
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS
vo st
�!r
7473
To the Mayor and Members of the City Council
No.
January 23, 2007
Page 2 of 2
SUBJECT: ENERGY CONSERVATION PROJECT EFFECTIVENESS
mobilization, Johnson Controls has guaranteed that "ESPC Phase 3" will produce an annual cost
avoidance of $711,324. Construction should be complete by October 2007.
Traffic Signal Lama Conversion Project
In January 2007, we will present Council with an M &C seeking authority to execute a contract to replace
the City's incandescent traffic signal lamps with more efficient light - emitting diode (LED) units. We
expect that this project will be completed by October 2007 and will produce an annual cost avoidance
of $536,000.
ESPC Phase 4
Johnson Controls is conducting a preliminary assessment of the Public Safety and Neighborhood
Services facilities. We will present Council with an M &C seeking authority to execute a contract to
conduct a detailed energy audit in development of `ESPC Phase 4" in February 2007. We expect that
this project will begin in June of 2007, be completed during FY 2007/2008, and will produce an annual
cost avoidance of $100,000.
Summary
The table below depicts each project's construction cost, originally projected annual savings, and the
resulting simple payback period.
Project Name
ESPC Phase 1
Construction
$
Cost
3,127,955
Annual
1
Savings
88,612*
Simple Payback
11 -years
ESPC Phase 2
$
2,395,659
$
342,855
7.0 -years
ESPC Phase 3
$
5,198,937
$
711,324
7.3 -years
LED Traffic
$
2,060,000
$
536,624
3.8 -years
ESPC Phase 4
$
750,000
$
100,000
7.5 -years
All Above
$ 13,532,551
$1,979,415
6.8 -years
* Actual savings have exceeded original projections
Other Conservation Projects are under development. Council briefs will be provided as these plans
progress. If you have any questions, please contact Glenn Balog, Facilities Manager in the
Transportation and Public Works Department, at (817) 392 -2028.
Charles R. Boswell
City Manager
ISSUED BY THE CITY MANAGER
FORT WORTH, TEXAS