HomeMy WebLinkAboutItem 4City of Lakeville
Public Works
Memorandum
To: Mayor and City Council
Justin Miller, City Administrator
From: Neil Normandin, Public Works and Facilities Coordinator
Copy: Paul Oehme, Public Works Director
Jerilyn Erickson, Finance Director
John Hennen, Parks & Recreation Director
Date: May 28, 2019
Subject: Capital Improvement Plan and Energy Improvement Proposal
PURPOSE
Update City Council on the completion and results of a detailed engineering study and
energy audit of City facilities completed by Apex Engineering Solutions, SBC and propose
changes to the Capital Improvement Plan (CIP) to implement the study recommendations.
BACKGROUND
The City entered into an agreement with Apex Energy Solutions on September 4, 2018 to
conduct a detailed engineering study and technical energy audit of City facilities. The
study and energy audit were completed concurrently with a similar study being
completed for Lakeville Arenas.
Meetings between City staff and representatives of Apex Energy Solutions have produced
a series of upgrades at each facility (see attached summary of work) that, if implemented,
would provide guaranteed energy and operations and maintenance savings to the City
into the future. Gray rows are those projects currently scheduled (in part or in full) over
the next 10 years.
These upgrades represent projects that would be included as part of the City’s capital
building improvements over the next 10 years. Completion of these projects under the
Apex agreement would advance $290,000 of projects from the CIP and allow the City to
reduce its energy consumption. The projects would be completed in two years rather
than the ten years outlined in the CIP.
Total cost of these projects is $1.54 million. Staff recommends using 2019 budgeted funds
and fund balance to fund the project rather than issuing debt. Approximately $70,000 in
rebates/incentives is also anticipated which would reduce the project cost to
approximately $1.47 million. Funding for these projects would be as follows:
General Fund* $1,044,078
Water Operating Fund 331,818
Liquor Fund 88,734
Building Fund 79,160
Total $1,543,790
*Includes $100k contingency
The General Fund ratio is estimated to be 51.11% as of yearend 2018, which is slightly higher
(.79%) than the estimate provided to the Council in February 2019.
Based on the updated yearend 2018 fund balance and a $705,500 planned use of fund
balance in 2019, the projected ratio for yearend 2019 is 47.16%. If fund balance reserves are
used to fund the APEX project, the projected ratio for yearend 2019 is 43.64%. The yearend
2019 projections are based on revenues and expenditures at budgeted levels. Historically,
those numbers have been conservative and actual revenues and expenditures have resulted
in favorable yearend fund balance adjustments.
There are two projects included in the project summary that do not generate any utility or
operations and maintenance savings. They include the conference room heating at CMF
($10,448) and radiant panels for offices at the police station ($60,885). Staff recommends
removing them from this project and considering them separately as part of the CIP
development. This would reduce the funding needed by General Fund by $71,333.
RECOMMENDATION
Bring the agreement and resolution authorizing funding forward to a future City Council
meeting for approval.
Facility Solutions Efficiency Solutions Arena Solutions
Work Description Location Cost Guaranteed
Utility Savings
One Time
Operational
Savings
Annual O&M
Savings
Potential
Incentives Net Cost Simple
Payback
Building & City Improvements
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Arts Center
$26,642
$1,630
$0
$344
$1,941
$24,702
12.5
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Arts Center
$2,368
$200
$0
$0
$0
$2,368
11.8
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Heritage Center
$34,006
$1,700
$0
$358
$1,987
$32,019
15.6
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Heritage Center
$1,616
$100
$0
$0
$0
$1,616
16.2
Lighting Upgrade - Replace
existing lighting with LED
Fixtures technology.
Park Buildings and Trails
$86,312
$6,070
$0
$1,278
$3,000
$83,312
11.3
IT Solutions - Computer Power
Management Software All Buildings
$8,759
$3,610
$0
$0
$0
$8,759
2.4
City - Sub Total $159,704 $13,310 $0 $1,980 $6,928 $152,777 10.0
City Hall - Improvements
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES)
City Hall - No
Council
Chambers
$164,104
$7,900
$0
$1,664
$8,925
$155,179
16.2
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
City Hall
$2,556
$160
$0
$0
$0
$2,556
16.0
Window Film - Install new
window film on the exterior
windows
City Hall
$17,051
$1,420
$0
$0
$0
$17,051
12.0
Lighting Upgrade - Council
Chambers Lighting Upgrade City Hall -
Council
Chambers
Only
$82,055
$220
$0
$47
$1,000
$81,055
Capita
l
Project
s
City Hall - Sub Total $265,766 $9,700 $0 $1,711 $9,925 $255,841 22.4
Fire Stations - Improvements
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Fire Station 1
$24,857
$1,890
$0
$377
$1,494
$23,363
10.3
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Fire Station 1
$11,014
$600
$0
$0
$0
$11,014
18.4
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Fire Station 2
$11,076
$1,140
$0
$228
$1,054
$10,022
7.3
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Fire Station 2
$9,210
$470
$0
$0
$0
$9,210
19.6
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Fire Station 3
$15,374
$1,490
$0
$300
$1,108
$14,266
8.0
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Fire Station 3
$6,315
$310
$0
$0
$0
$6,315
20.4
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Fire Station 4
$21,115
$2,390
$0
$492
$2,022
$19,093
6.6
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Fire Station 4
$2,970
$250
$0
$0
$0
$2,970
11.9
FS - Sub Total $101,931 $8,540 $0 $1,397 $5,678 $96,253 9.7
Liquor Stores - Improvements
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES)
Kenrick Liquor Stores
$18,930
$1,340
$0
$281
$1,278
$17,652
10.9
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Kenrick Liquor Stores
$3,029
$230
$0
$0
$0
$3,029
13.2
Water Savings - Provide new
water savings flushing and sinks
for low flow systems
Kenrick Liquor Stores
$1,339
$110
$0
$9
$0
$1,339
11.2
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology.
Galaxie Liquor Stores
$59,780
$4,050
$0
$854
$3,267
$56,513
11.5
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Galaxie Liquor Stores
$5,657
$290
$0
$0
$0
$5,657
19.5
Liquor - Sub Total $88,734 $6,020 $0 $1,144 $4,545 $84,189 11.8
Police Department - Improvements
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES) Police
$128,542
$8,000
$0
$1,684
$9,876
$118,666
12.3
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Police
$7,299
$580
$0
$0
$0
$7,299
12.6
Chilled Water Plant Tanks -
Expand the system for a larger
chilled water ability
Police
$123,866
$5,200
$0
$0
$0
$123,866
23.8
Radiant Panels for Offices -
Add radiant Panels for the
offices - Individual Controls
Office Area - Police
$60,885
$0
$0
$0
$0
$60,885
N/A
PD - Sub Total $320,591 $13,780 $0 $1,684 $9,876 $310,715 20.1
Water Treatment Plant - Improvements
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES)
Water Treatment Plant
$73,420
$2,730
$0
$575
$6,492
$66,928
20.3
Building Envelope Improvements
- seal envelope wall/ceiling, doors
and windows.
Water Treatment Plant
$6,496 $350 $0 $0 $0 $6,496 18.6
Boiler Plant Replacement -
Replace one boiler with one
new 3MMBTU condensing
boiler - & Control Valves
Water Treatment Plant
$198,118
$9,090
$0
$0
$10,500
$187,618
20.6
Air Compressor Replacement
and Leak Detection - Install new
air compressors and fix leaks in the system
Water Treatment Plant
$53,782 $3,590 $0 $0 $0 $53,782 15.0
WTP Improvements - Sub Total $331,818 $15,760 $0 $575 $16,992 $314,826 19.3
Central Maintenance
Lighting Upgrade - Replace
existing lighting with LED retrofit
technology. (TUBES)
Central Maintenance
$117,095
$10,220
$0
$2,151
$16,310
$100,785
8.1
Building Envelope
Improvements - seal envelope
wall/ceiling, doors and
windows.
Central Maintenance
$47,704
$3,040
$0
$0
$0
$47,704
15.7
Conference Room Heating -
Add Finned Tube Radiation Central Maintenance
$10,448
$0
$0
$0
$0
$10,448
N/A
CMF Improvements - Sub Total $175,247 $13,260 $0 $2,151 $16,310 $158,936 10.3
Other
Contingency - Funds for
additional scope to be
determined later by the owner
City Projects
$100,000
$0
$0
$0
$0
$100,000
N/A
Totals - City Buildings Only $1,543,791 $80,370 $0 $10,642 $70,254 $1,473,536 16.2