1g. Energy Audit Contract.1
I MEMORANDUM
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CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
TO: Mayor and City Council
FROM: Don Ashworth, City Manager
DATE: March 25, 1996
SUBJ: Approve Contract with Bissonett Engineering Services, Energy Audit
This item was briefly discussed with the city council `during our work session in February. My
notes indicate that the council wished to see if NSP could provide this service at a cheaper cost,
if we would be reimbursed Bissonett's fees, and'what potential cost savings could be achieved.
• K"1111-11
The state legislature passed a bill re(
existing buildings with more energy
through the energy audit (requireme
reimbursement. Attached please fin
the state law in more detail.
RESPONSES TO
irina NSP to
tticient equipment.
included in the leg
various pieces of a
governmental units that retrofitted
r retrofit that could be demonstrated
on itself) would be eligible for
pondence /attachments that outline
• Use NSP to Provide This Service: 'Although NSP has engineers capable of providing this
type of service, they have adopted a policy against such. Specifically, NSP sees that
decisions such as the extent 'of the retrofits is a decision that solely should be made by the
city. They do not want to be seen as not making a'-retrofitland therefore be accused of solely
trying to sell more electricity vs. doing extensive retrofits where they may be accused of
spending more money than was necessary. I believe that NSP also told me that the necessity
for the third party independent auditor was included in the legislation mandating this
program. NSP highly recommends Bissonett to carry out third party energy audits; and
• Is the City Guaranteed to be Fully Reimbursed ?: The only check that the city will be
issuing is the 50% of the engineering contract at the time the final report is submitted. That
J
Mayor and City Council
March 25, 1996
Page 2
cost will be reimbursed to the city by a third party bank when the retrofits have been
completed. The city would be out the approximate $1,500 if we made a decision not to move
forward with the retrofits. As Mr. Bissonett has made a detailed inspection of the site, it is
highly likely that his estimates of a $22,000 retrofit contract with payback over five years can
be seen as the minimum savings through this program. Accordingly, there should be no
surprises as a part of the final contract and, therefore, assuming that this item is approved
tonight, there would be virtually no chance that the city would not be reimbursed; and
• How Would This Program Interface with the New Construction ?: Initially I believed
that it was important to have somebody like a Bissonett Engineering on board to coordinate
the retrofitting with the new construction. In follow up conversations with Todd
Christopherson, we have come to the conclusion that retrofitting existing city hall should
logically occur towards the end or following construction of the new addition. We would ask
Mr. Bissonett to ensure that KKE did incorporate into their specifications items that would
qualify for rebate, but no other involvement with the new construction would be necessary.
In all likelihood, a smaller local contractor would probably better serve the city in terms of
accomplishing the retrofitting of the existing city hall.
I have checked with the references provided by Mr. Bissonett. Ironically, Eden Prairie had
originally anticipated using the civil engineering firm that they had employed to carry out water
plant modifications to also do the energy work for them. At virtually the same tirne that they
were looking at the engineering proposal, Mr. Bissonett visited with Eden Prairie and provided
them with a proposal. It was the consulting engineering firm's belief that the proposal by
Bissonett would be less money than they would charge to provide that service and that he was in
a better position to administer the project and to assure that all alternatives had been explored.
It is recommended that the city council approve entering into a contract with Bissonett
Engineering Services to perform an energy audit for the existing city hall.
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From: Thomas L. Bissonett Bissonett Engineering Services Fax 612- 996 -0595 Voice: 612- 996 -0595 To: Don Ashwod) at: City of Chanhassen Page 2 of 2 Thursday, March 21,199612:23:40 PM
Bissonett Engineering Services, T_nc•
Mr. Don Ashworth 1\/larch 20, 1996
' City of Chanhassen
690 Coulter Drive
Chanhassen, IvlN 55317
' Dear Don:
A preliminary financial analysis of the NSP Local Government Program for the City of Chanhassen indicates substantial
' savings on electric and natural gas bills, significant rebates from NSP, interest -free financing and full reimbursement of
engineering fees for the City Hall. It is recommended that a similar analysis be made for other city properties including
public works, fire station, wells and lift stations.
' The NSP Local Govermuent Program provides funding to purchase energy efficient equipment for existing buildings. NSP
will rebate S.10 per kilowatt - hour saved with the installation of new lighting, air conditioning, motors, drives and building
controls. In addition, NSP will reimburse the city 100° o of engineering fees to perform energy audits and write
' specifications.
An interest -free loan is available and payments are made on your electric bills. The payments are made equal to your
electric savings so that your monthly electric bills do not increase while the loan is being paid off. In effect, the savings on
your electric bills pay for the new equipment and your operating costs stay the same until the loan is paid, thereby making
fiscal budgeting unnecessary to purchase the equipment.
' During the initial walk- through tour of the City Hall, many energy savings measures were identified. These measures will
be thoroughly investigated during the energy audit phase of the program, It is recommended that the T12 fluorescent
lighting be converted to a TS system, incandescent lamps replaced with compact fluorescent lamps, exit signs retrofitted
with LED kits, occupancy sensors to control lighting, air conditioners to have setback control and a rooftop HVAC unit to
' be installed for the lobby. The financial benefits of the NSP Local Govemnent Program for the Chanhassen City Hall are
as follows:
Annual electric cost savings:
Retrofit equipment costs:
NSP rebates on equipment:
Net retrofit costs for city:
Engineering fees reimbursed by NSP:
Interest paid by NSP on a loan:
Total money given to city by NSP:
Payback (years):
Savings over 20 year life of equipment:
Monthly electric savings:
Monthly loan payments:
Cash flow net impact with loan:
$5,500
$3,500
522,000
516,500
53,160
$7,900
S16,560
4.S
$92,700
$300
$300
SO
The annual savings are based on today's electric rates. The 20 year savings are based on average life expectancy of new
equipment and assumes electric rates increase by 3% per year. The numbers above are preliminary estimates which are
approximate. The exact costs and savings figures will be determined in the energy audit report.
Sincerely,
' 7�ao ,z.b 4 . 66:2: awee
Thomas L. Bissonett, P.E.
Bissonett Engineering Senices, Inc. - 9125 Flynsay Circle - Eden Prairie, MN 55347 - (612) 996 -0595
Bissonett Engineering Services, Inc.
February 15, 1996
Mr. Don Ashworth
City of Chanhassen
690 Coulter Drive
P.O. Box 147
Chanhassen, MN 55317
Dear Don:
I appreciate your questions and concerns on the phone regarding the energy audit, funding
and program procedures. I can assure that you will be reimbursed for all of my engineering
fees if you decide to utilize the Local Government Program from Northern States Power
Company.
As I explained, you will receive a comprehensive written report which will explain all energy
savings recommendations and quantify all savings and payback periods. The report usually
is about 100 pages in length with a summary of recommendations in the front section. Since
the program is voluntary, you can decide which recommendations you want to implement.
Again, the savings on your electric bills is used to pay for any new energy saving equipment
in existing buildings through the Local Government Program funding. The State of
Minnesota and the Public Utilities Commission requires NSP to provide this program for city
governments.
If a loan is needed, it is financed on your electric bill at a 0% interest rate, that is, interest
free. The combined payback of all implemented measures must be less than 10 years.
Typically, most recommendations have a payback of less than 5 years and you can expect
about a 20 % reduction in your electric bills after the new equipment is paid off.
I have attached a few sample pages from a previously completed audit for your information.
I would be glad to show a full audit report if you would like to see one. Also, I have
included a list of references for you to call if you wish to do so.
Sincerely,
Thomas L. Bissonett, P. E.
RECEIVED
FEB 15 1996
CITY OF CHANHASSEN
Bissonett Engineering Senices, Inc. - 9125 Flyway Circle - Eden Prairie, MN 553.47 - (612) 996 -0595
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Hissonett En ine rin Services,
� � Inc.
Please feel free to call the following references for cities which have had energy audits
completed and/or participated in the NSP Local Government Program:
'
Ed Sorenson
Water Plant Supervisor
City of Eden Prairie
8080 Mitchell Road
'
Eden Prairie, MN 55344
phone: 949 -8530
Norbert Kerber
Building Superintendent
'
City of Hopkins
1010 First Street South
Hopkins, MN 55343
'
phone: 939 -1382
Other references are available upon request, including Hennepin County and the State of
' Minnesota.
C
1 Bissonett Engineering Sere ices, Inc. - 9125 Fky ap Circle - Eden Prairie, MN 55347 - (612 ) 996 -0595
-- SAMPLE AUDIT --
SUMMARY OF RECOMMENDATIONS
The following table summarizes the findings applicable to the operation of the customer.
The table lists the energy conservation measure (ECM) code, recommendation, electric demand
reduction, electric usage reduction, natural gas energy usage reduction, yearly cost savings, capital
cost requirement, the incentive amount and the simple payback resulting from the commitment
of capital to the recommendation.
SUMMARY OF RECOMMENDED ENERGY CONSERVATION ME ASURES
ECM Recommendation Demand Energy Fuel Estimated Estimated Payback
Savings Savings Savings Savings Capital Incen Years
KW KWH CCF Per Year Cost -tive
HVAC
01
Install a cooler
0
- 748
0
$17
$500
$15
29.6
economizer for
the walk -in cooler.
02
Install vent dampers
0
0
129
$53
$215
$0
4.1
for the unit heaters.
03
Install ceiling insulation
0
2,309
0
S66
$100
$0
1.5
for the walk -in cooler.
04
Install a drycooler for
6.9
1,383
0
$119
$1,926
$160
14.8
the computer room.
05
Inspect and Repair
0
0
3,990
$1,651
$3,030
$1,260
1.6
all steam traps.
06
Install a vent damper
0
0
54
$23
$60
$o
2.7
on the water heater.
07
Install synchronous belts
3.3
2,610
0
$255
$1,570
S52
6.0
on all fans for rooftop
HVAC units.
08
Utilize the energy manage-
10.3
0
0
$1,262
$800
$0
0.6
ment system to duty cycle
air conditioning units.
09
Install boiler cut -out and
0
263
1,680
$848
$500
$0
0.6
temperature controls.
MOTORS AND ASD's
10
Install energy efficient
5.1
16,071
0
$1,382
$4,837
$620
3.1
motors to replace existing
motors for fans on air
conditioning units.( *)
Custonier:v Name
2
-- SAMPLE PAGE --
-- SAMPLE AUDIT --
SUMMARY OF RECOMMENDED ENERGY CONSERVATION MEASURES
ECM Recommen4ation Demand Energy Fuel Estimated Estimated _ Payback
M Savings Savings Savings Savings Capital Incen Years
KW KWH CCF Per Year Cost _five
l l
Install adjustable speed
0.0
15,063
0
$1,295
$7,500
$1,250
4.8
drives on HVAC fans
for VAV systems.( *)
CONTROLS
12
Install a clock timer for the
0.0
1,361
0
$124
$100
S25
0.6
bkakZ�Dm air conditioner.
M
13
Install 4 additional
0.0
3,220
0
$310
$540
$100
1.4
programmable thermostats
for office air conditioners.( *)
14
Install programmable
0.0
201
2,160
$1,139
$480
so
0,7
thermostats for the unit
heaters in the shop.
LIGHTING
15
Install a time clock to
0
4,774
0
$341
$400
$20
1.1
operate outdoor lighting with
the photocells.( *)
16
Replace 175 watt mercury
1.0
4,450
0
$385
6745
$150
1.5
vapor light fixtures outside
with 100 watt high pressure
sodium fixtures.( *)
17
Replace 75 watt flood lamps
0.7
1,523
0
$156
$350
$80
1.7
in the CADD room with 18
watt compact fluorescent
reflector lights.( *)
18
Install occupancy sensors in
0.0
26,421
0
$2,247
$7,000
$1,400
2.5
rest rooms, store rooms,
break rooms, labs, offices
and the shop for lighting
control. ( *)
19
Replace 40 watt T12
21.3
48,492
0
$4,330
$18,350
$6,793
2.7
fluorescent lamps and
magnetic ballasts with T8
lamps and electronic
ballasts.( *)
Customer's Name
-- SAMPLE PAGE --
3
-- SAMPLE AUDIT --
STEAM TRAP MAINTENANCE
It is recommended that all existing steam traps be inspected and repair all those that are
malfunctioning.
In a steam system such as that in your building, steam traps are installed at all heating fixtures
and other steam consuming equipment. The purpose of a steam trap is to retain steam within a
fixture until it releases its heat and condenses to water. The trap then opens and allows this
condensate to return to the boiler to be reheated. When operating properly, a steam trap will
open only periodically to discharge condensate. A trap which fails in the open position will
allow steam to pass through before releasing all the heat it contains. This results in higher than
necessary losses from condensate piping and losses from the vent in vented condensate return
systems.
Steam traps contain moving parts and open and close frequently. Experience suggests that traps
fail at the rate of 10 percent per year after the first few years of operation. While costs to
completely replace traps are high, most traps can be returned to proper operation by replacing
the internal parts with new parts at substantially lower costs
The energy and cost savings associated with this recommendation are presented billow:
ANNUAL ENERGY SAVINGS:
-OA
KW
0
KWH
3,990
CCF
ANNUAL COST SAVINGS:
$1,651
IMPLEMENTATION COST:
$3,939
SIMPLE PAYBACK:
2.4
YEARS
INCENTIVE:
$1,260
PROPOSED PAYBACK:
1.6
YEARS
r_
Customer's Name
-- SAMPLE PAGE --
w
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t
21 ,
1
1
1
1
1
1
1
i
1
1
1
1
1
1
1
1
1
1
-- SAMPLE AUDIT --
DUTY CYCLE AIR CONDITIONERS
Your facility is currently billed on a demand billing rate for electrical usage. Demand billing for
your facility results in higher costs for you. However, there are methods of reducing your costs
by implementing a demand reduction program.
First, a brief description of what demand billing is may be helpful to you. Your electrical
demand meter could be compared to a thermometer which "marks" and records the highest
temperature for a given month. This highest mark would be recorded as the "peak" temperature
for the month. Just as a thermometer would record this "peak" in degrees, a demand meter
registers your "peak" electrical consumption in a unit called a KW.
If you have 16 air conditioning units operating simultaneously in your facility, the demand meter
would register a "peak" KW. Let's suppose that only 12 of these units were to operate at any
given time. Then the demand would be about 25% less. Demand control could be implemented
under these circumstances by reducing the number of air conditioners that were allowed to
operate simultaneously. This can be accomplished by rotating the operation of these units every
15 minutes.
The energy and cost savings associated with this recommendation are presented below:
ANNUAL ENERGY SAVINGS:
10.3
KW
KWH
0
CCF
p
ANNUAL COST SAVINGS:
$1,262
IMPLEMENTATION COST:
$800
SIMPLE PAYBACK:
0
YEARS
REBATE:
$0
PROPOSED PAYBACK:
0
YEARS
Customer's Name
- -S -AMPLE PAGE --
23
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-- SAMPLE AUDIT --
INSTALL BOILER CUT -OUT CONTROLS
It is recommended that boiler cut -out controls be installed on the boiler.
A boiler cut -out control does not allow the boiler or pump(s) to operate when the outdoor
temperature reaches a predetermined set point. This temperature set point typically falls in the
range of 60° F. to 70° F. (degrees Fahrenheit). This temperature range is dependent on the
internal heat gain of your building. Savings in natural gas result from preventing the
unnecessary operation of the boiler during warm periods.
In addition to cut -out controls, outside reset water temperature controls should be installed. With
these controls, as the weather becomes warmer, the water temperature of the boiler is reset
downwards to save energy. In cold weather, the boiler water temperature is reset to its maximum
temperature.
The energy and cost savings associated with this recommendation are presented below:
ANNUAL ENERGY SAVINGS:
0 0
KW
263
KWH
1,680
CCF
ANNUAL COST SAVINGS:
$848
`_IMPLEMENTATION COST:
$500
SIMPLE PAYBACK:
0.6
YEARS
INCENTIVE:
$0
PROPOSED PAYBACK:
0.6
YEARS
Customers Nance
-- SAMPLE PAGE --
30 '
F
L
-
--- - - ------------ - - - - - - - - - -mpari - - - -
- �^ ��('� ^ ------------------------
11/14/94 Motor Co�d Report
Working Motor Replacement
-------------------------------------------------------------------------- - - - - --
Existing Motor New Motor
-
------------------------------- ------ -------- - - - - --
-------------------
Manufacturer: -
Leeson
Model: Existing Motor WATTSAVER, CAST IRON
' Enclosure: Totally Enclosed Totally Enclosed
Voltage: 460 V 208 - 230/460
Horsepower: 25 25
,Speed: 1800 1800
Annual hours of use. 3120 3120
Percentage load: 80 0 80 z
'Old motor loss ( a) : 3.0
0
Efficiency ( o) : 86.7 0 94.0 0
Dealer discount (o): 20.0 0
'Purchase price ( $) :
Installation cost:
Motor rebate ($):
Energy price ($ /kWh) :
Demand charge ( $ /kW -Mo )
I
ENERGY SAVINGS
$ $ 1192
$ 95
$ 180
$ 0.086
$ 0.00
Existing Motor New Motor
---------------------------------------------------------
otor premium ($):
knergy (kWh
-----------------------
$ 1107
use /yr): 53691
49522
Energy cost ($ /yr): $ 4617
$ 4259
I Demand charge ($ /yr) : $ 0
$ 0
Annual energy savings:
4170 kWh $ 359
( emand savings:
16 kW $ 0
otal savings ($ /yr):
$ 359
,Simple payback (yrs):
3.09
' -- SAMPLE PAGE --
Bissonett Engineering Services, Inc.
February 8, 1996
.Mr. Don Ashworth
City of Chanhassen
690 (Coulter Drive
P.O. Box 147
Chaahssen, MN 55317
Dear Don:
RECEIVED
FEB 0 9 RECD
CITY OF CHANHASSEN I
Thank you for your interest in the energy management services provided by Bissonett
Engineering Services, Inc. The proposal includes taking advantage of programs and funding
offered by;4*ern States Power Company and Minnegasco.
Bissonett Engineering proposes the following services for the Chanhassen City Hall in order
to reduce your electric and natural gas bills:
Investigate available programs, determine requirements for qualifications and find
funding for energy conservation measures. Initiate discussions with the appropriate
Northern States Power Company and Minnegasco representatives.
2. Perform a comprehensive energy audit at City Hall which will investigate all potential
energy savings measures, both gas and electric. A written report will be provided
which will include documentation of existing equipment along with the electric and
natural gas energy conservation measures. Each recommendation will explain the
proposed project, calculate energy savings, calculate cost savings, determine
installation costs, determine rebates from Northern States Power Company (NSP) and
Minnegasco, and calculate the payback periods.
Coordinate all paperwork and compliance with the NSP Local Government Program,
Lighting Program, Motors Program and Air Conditioning Replacement Program.
Submit loan application papers to Northern States Power Company,
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4. Submit all paperwork to Minnegasco for rebates including Furnace and Water Heater
Programs. Coordinate with the Minnegasco representative. I
5. Provide written specifications for proposed equipment which then can be used for bid
solicitations. Typical specifications include new lighting, motors, heating, air
conditioning and controls. Also, a copy of these specifications will be provided to the
Bissonett Engineering Services, Inc. - 9125 Flyway Circle - Eden Prairie, MN 55347 - (612) 996 -0595
' The above engineering services will be provided at a total cost not to exceed $3,160.
Upon completion of the energy audit report, a partial payment of 50% will be billed to the
City of Chanhassen. The remaining 50% will be due after installation of equipment is
' complete. NSP will reimburse 100% of the engineering fees upon installation of the new
energy saving equipment.
The primary funding will be provided through the NSP Local Government Program. The
Local Government Program is for cities in NSP's service territory. It can provide you with
new lighting and air conditioning paid completely by the energy savings on your electric bills,
' if you qualify. Please read the attachment, "NSP Local Government Program ".
The loan is financed at 0% interest and payments are made on your electric bill. The
' payments are made equal to your electric savings so that your monthly electric bills do not
increase while the loan is being paid off. In effect, the savings on your electric bill pay for the
new equipment, thereby making your investment pay for itself After the loan is paid off, you
' will realize the full cost reduction of your electric bills.
Engineering services for the project should commence as soon as possible in order to take
' advantage of limited funding sources from NSP and Minnegasco. For this reason, it is
recommended that the project commence as soon as possible. If you have any questions or
' concerns, please call me at 996 -0595.
Sincerely,
' Thomas L. Bissonett, P. E.
architect Architects,
(KKE Inc.) in order to incorporate energy efficient lighting,
controls, heating and air conditioning for the new building addition.
6.
Assist the City Manager in soliciting bids from vendors and contractors. For this
bidding process, a list of reputable firms will be provided for supply of materials and
'
labor. All materials and workmanship shall be warranteed for one year.
7. Assist in the evaluation of the bids with the City Manager. Assist in the selection of
'
the equipment suppliers and the contractors to do the work.
8. Schedule and coordinate delivery of materials and work activities with the contractors
'
performing the installations.
9. Ensure that all installations are complete including any required warranty work.
'
It is estimated that the entire project can be implemented within six months.
'
10. Followup to confirm energy savings on utility bills and, if necessary, make
adjustments to balance payments with savings.
' The above engineering services will be provided at a total cost not to exceed $3,160.
Upon completion of the energy audit report, a partial payment of 50% will be billed to the
City of Chanhassen. The remaining 50% will be due after installation of equipment is
' complete. NSP will reimburse 100% of the engineering fees upon installation of the new
energy saving equipment.
The primary funding will be provided through the NSP Local Government Program. The
Local Government Program is for cities in NSP's service territory. It can provide you with
new lighting and air conditioning paid completely by the energy savings on your electric bills,
' if you qualify. Please read the attachment, "NSP Local Government Program ".
The loan is financed at 0% interest and payments are made on your electric bill. The
' payments are made equal to your electric savings so that your monthly electric bills do not
increase while the loan is being paid off. In effect, the savings on your electric bill pay for the
new equipment, thereby making your investment pay for itself After the loan is paid off, you
' will realize the full cost reduction of your electric bills.
Engineering services for the project should commence as soon as possible in order to take
' advantage of limited funding sources from NSP and Minnegasco. For this reason, it is
recommended that the project commence as soon as possible. If you have any questions or
' concerns, please call me at 996 -0595.
Sincerely,
' Thomas L. Bissonett, P. E.
CONTRACT AGREEMENT ■
Bissonett Engineering Services, Inc.
c% Thomas L. Bissonett, P.E. '
9925 Flyway Circle
Eden Prairie, MN 55347
Phone number 996 -0595
Fax Number 996 -0595
,
Service for: City of Chanhassen
City Hag
690 Coulter Drive
'
Chanhassen, MN 55397
Bissonett Engineering Services, Inc. shall provide the following services for the Chanhassen City Hall:
1 Investigate available programs, determine requirements for qualifications and find funding for energy conservation measures.
'
Initiate discussions with the appropriate Northern States Power Company and Minnegasco representatives.
2 Perform a comprehensive energy audit at City Hall which will investigate potential energy savings, both gas and electric.
A written report will be provided which will include documentation of existing equipment along with the electric and natural
,
gas energy conservation measures. Each recommendation will explain the proposed project, calculate energy savings,
calculate cost savings, determine installation costs, determine rebates from NSP and Minnegasco, and payback periods.
3 Coordinate all paperwork and compliance with the NSP Local Government Program, Lighting Program, Motors Program and
'
Air Conditioning Replacement Program. Submit 0% interest financing application papers to Northern States Power Company.
4 Submit all paperwork to Minnegasco for rebates including Furnace and Water Heater Programs.
Coordinate with the Minnegasco representative.
5 Provide written specifications for proposed equipment which then can be used for bid solicitations.
A copy of these specifications will be provided to the architect for the new building addition.
6 Assist the City in soliciting bids from vendors and contractors. For this bidding process, a list of reputable firms will be provided
for supply of materials and labor. All materials and workmanship shall be warranteed for one year.
'
7 Assist in the evaluation of the bids with the City Administration. Assist in the selection of the equipment suppliers and
the contractors to do the work.
8 Schedule and coordinate delivery of materials and work activities with the contractors performing the installations.
9 Ensure that all installations are complete within six months including any required warranty work.
'
10 Followup to confirm energy savings on utility bills and, if necessary, make adjustments to balance payments with savings.
The above engineering services will be provided at a total cost of $3,160.00, which will be payable by the City of Chanhassen.
,
Upon completion of the energy audit report, a partial payment of 50% will be billed to the City of Chanhassen.
The remaining 50% will be due after installation of equipment is complete. Thereupon, NSP will reimburse the City of
Chanhassen for engineering fees paid to Bissonett Engineering Services, Inc.
'
Thomas L. Bissonett, P. E. Date
Bissonett Engineering Services, Inc.
Don Ashworth, City Manager Date ,
City of Chanhassen
LOCAL GOVERNMENT PROGRAM
CONSERVATION PROGRAM
E N G IN E E R I N G S P E C IF I CAT I ON S
General I nformation
• The Local Government Energy Conservation Program is offered to NSP's municipal and county customers within its service territory,
and is only applicable to retrofit energy conservation measures. It does not apply to new construction.
• Energy audits and /or design studies are required to evaluate the facilities' energy use, recommend energy conservation measures
(ECMs) and calculate potential savings for NSP electricity, or NSP electricity and NSP gas.
• The energy audits may be contracted by the customer through engineering or contracting firms, or conducted by a professional on
staff. All recommendations and Savings Reports must be signed by a professional engineer (PE) and PE's registered number
provided.
• Energy audits must be no more than 24 months from completion of audit to final installation. All ECMs must be completed within 12
months from the date of the Loan Application approval.
• Owned and leased retrofitted facilities both must have an expected useful life for five years beyond the payback period, whether in
building life or lease length.
• Retrofitted equipment must meet the same NSP performance criteria or efficiency standards as included in NSP's commercial and
industrial conservation programs. (See attachment for lighting ballast criteria and motor efficiency standards.)
• The customer is responsible for selecting appropriate engineering and /or contracting services for audits, designs and competitively
bidding installation, and meeting all applicable building codes and regulations.
• NSP will reimburse the customer up to 15% of the actual retrofit costs within the loan cap for engineering audit, design and testing
service fees, whichever is less, upon completion of the retrofit. The loan cap per facility is equal to two times the annual electric
charges for electric conservation and two times the annual gas charges for gas conservation.
Customer
• The customer is responsible for providing accurate equipment operating hours for the audit, and the savings estimate based upon
those hours. Since this will directly affect the projected energy savings calculation and the retrofit payback period, the customer
should take care in developing the figures.
• The customer will establish, implement and document a Savings Maintenance Plan for each ECM installed throughout the length of the
loan. This will include but it not limited to suggested manufacturers' maintenance schedules and NSP recommended maintenance and
replacement practices. Documentation will be maintained for NSP to audit /review until the loan balance is paid in full.
• The customer is responsible for proper disposal of all existing and future equipment. Initial existing equipment disposal costs may
be included in the retrofit costs which is covered by the NSP loan.
Engineering /Contra c t i n g Services
• The engineering /contracting service will provide audits and /or design studies which contain recommendations of ECMs which can
be installed in a facility to reduce NSP electricity or NSP electricity and NSP gas.
• The audits and /or design studies will include such information as:
— Documentation of existing and proposed equipment
— Estimated annual savings in kilowatt (kw) and kilowatt hour (kwh)
— Estimated costs of ECMs to include equipment, labor and disposal.
— Annual NSP electric and NSP gas consumption (upon customer release)
— NSP bounties and simple payback for each recommended ECM
• Engineering /contracting services must provide a complete summary of the above data for each facility, either in the firm's report
format or on the attached Project Summary Report.
• The engineering /contracting service will utilize the NSP Input Wattage Guide for lighting calculations and NSP Motor Masters for
motors.. The Illuminating Engineering Society (IES) Lighting Standards may be referred to as a guide for appropriate light levels for
specific tasks. As an option, the engineering /contracting firm may base wattage upon actual measurement, document the method of
measurement and provide the name of the field personnel doing the measurement. In this case, a post- retrofit Savings Report is
required to document savings, and process the bounty and loan agreement.
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